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Metso Oyj

Jukka Seppälä

© Metso

Finland 30%

Other Nordic countries 10%

Other European countries 15%

North America 13%

South and Central America 10%

Asia-Pacific 17%

Africa and Middle East 5%

Metso in a nutshell

Metso is a global supplier of technology and services to

customers in the process industries, including mining,

construction, pulp and paper, power, and oil and gas. Our

30,000 professionals based in over 50 countries deliver

sustainability and profitability to customers worldwide.

• 2011 net sales EUR 6.6 billion

• Shares listed on NASDAQ OMX Helsinki Ltd.

2

Personnel by area Net sales and profitability

0

2

4

6

8

10

12

14

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

2007 2008 2009 2010 2011

Net sales EBITA %*

EUR million %

* before non-recurring items.

30%

10%

15% 13%

10%

17%

5%

© Metso

Metso businesses

3

Pulp, Paper and Power

Products: automation systems

including analyzers, measure-

ment and laboratory systems ,

Control valves, automated

on-off valves, safety

valves and positioners

Customers: Energy, oil & gas,

chemical & petrochemical,

power generation, pulp and

paper industry

Products: Rock crushers,

screens, conveyors, grinding

mills, separation equipment,

slurry-handling equipment,

pyro processing solutions, bulk

materials handling equipment,

wear products and mill linings

Customers: Quarries, mining

and construction industry

Mining and Construction Automation

Products: pulp, paper and

power industry processes,

machinery, equipment,

services as well as paper

machine clothing and filter

fabrics.

Customers: Pulp, paper

and board industry, power

producers

© Metso

Globalizing economy • Capex investment - growth countries • Services - developed world • New industry dynamics

There are four megatrends shaping the world over the long term

4

Rise of emerging economies • Winning in growth markets essential for Metso’s competitiveness • Demand for localized low-cost offerings

Demographic changes • Aging workforce in developed countries • Growth country talent

Sustainability and climate change • Alternative energy & recycling • Environmental solutions • Stricter environmental regulations

© Metso

Implementing our strategy through the must-wins to make Metso grow and become more competitive We continue to drive our key business initiatives under each must-win

5

Services

Growth

countries

Technology

Operating

model

CU

ST

OM

ER

& M

AR

KE

T

FA

CIN

G

EN

AB

LIN

G

People

1 Achieve growth in services market share and profitability

locally by leveraging installed base

Strengthen our local presence and growth, particularly in

the BRIC countries and other growth countries 2

Maintain our technology leadership with cost efficient and

environmentally sustainable product and process solutions,

and develop our mid-market offering

3

Secure the quality of operations and deliveries (Supply

Chain Excellence) globally by improving cost efficiency 4

Develop a working environment that enables our business

success 5

© Metso

Metso´s Top 10 countries in 2011

Orders received, EUR million

• Brazil 1,292

• USA 1,167

• China 642

• Sweden 493

• Finland 417

• Australia 399

• Germany 341

• Russia 329

• Canada 280

• Chile 244

Personnel

• Finland 9,222

• China 3,199

• USA 3,049

• Sweden 2,758

• Brazil 2,233

• South Africa 1,303

• Germany 1,271

• India 1,060

• Canada 796

• France 732

Date Author Title 6

© Metso

Our global presence

Share of Metso’s net sales, %

Number of employees and % of total personnel, 2001

Number of employees and % of total personnel, 2011

7

Developed markets

Emerging markets

Metso’s operating countries

Net sales, EUR million (2001)

Net sales, EUR million (2011)

© Metso

Arguments for expanding business operations to emerging markets

• Improved capability to response to customers´needs - lead time and

substance

• Grow where the growth is

• Credibility through local commitment

• Credibility through international presence and references

• Cost - labor, materials, components and services

• Developing a global supplier network by being a part of it

• Sharing risks in your business portfolio – products/services,

customers, markets – decreasing volatility

• Gaining experience and knowledge

• Improving attractiveness as an employer – having best talent to work

for you

Date Author Title 8

© Metso

The new global reality Preparing for a two-speed world - emerging vs. developed world

Source: BCG “Competing for advantage” 9

12

10

8

6

4

0 10 20 30 40 50

China

India

United

States

Projected annual GDP growth, 2010-2014 (%)*

Vietnam

Indonesia

Thailand Malaysia

Mexico

Philippines

Brazil

Czech Republic

Poland

Russia

United Kingdom

Australia

Canada

Japan

Spain

Sweden The Netherlands

France

Germany Swizerland

Belgium

Italy

Manufacturing labor cost per hour ($)**

Size of estimated 2009 GDP

* Five year compound annual growth in gross

domestic product on the basis of purchasing

power parity (PPP) valuations at current rates.

** Average cost of manufacturing labor per hour

(pay and non-pay costs).

Low growth High growth 51% of new orders

in 2011

Services 49% of

net sales 2011

CONFIDENTIAL

© Metso © Metso 10

We must manage volatility to long-term sustainable value creation

Time

Market

Development Market

Fluctuation

Our Challenge –

Sustainable Value Creation

Expected Overall

Development Trend –

Basis for planning

CONFIDENTIAL

© Metso 11

Our net sales in 2011 by type of business and markets

Net sales by type*

Services business 45%

Project business 35%

Product business 20%

* Management estimate

Net sales by market area

Finland 6% (5%)

Other Nordic countries 6% (7%)

Other European countries 23% (24%)

North America 18% (17%)

South and Central America 17% (14%)

Asia-Pacific 25% (28%)

Africa and Middle East 5% (5%)

6%

23%

18% 17%

6%

25%

5%

45%

35%

20%

(previous year in brackets)

© Metso

Boards and Tissue consumption continue to grow – P&W flattening alarmingly, while newsprint continues to decline

World consumption of newsprint, tissue, p&w & boards 1980-2015F

12 Source: Pöyry 2011 data

© Metso

Global mining capital expenditure to increase at ~7 % CAGR to 243 Bn$ in 2020

23 20

25 35

15

27 12

19

2010 2020

Iron ore Gold Copper Base metals

Iron ore, Gold, Copper and Base

metals Capex (Bn$)

+26 Bn$

© Metso

Prices of key metals near 2008 highs INTERNAL

14

LME metals composite index Iron ore and copper prices

Gold prices and stocks Nickel prices and stocks

© Metso

Market specific opportunities – example Brazil Forecasted industrial output

Unit 2010 2015 Long-term growth rate 2010-2015

Nickel Thousand tons 52.5 129.9

Bauxite Thousand tons 23.2 37.3

Iron ore Million metric tons 370.0 591.9

Zinc Thousand tons 175.0 221.1

Tin Thousand tons 8.4 8.9

Cement Thousand tons 59,200 86,700

Aggregates Thousand tons 451,000 583,000

Pulp Thousand tons 10,509 17,025

Paper Thousand tons 10,093 11,307

Power generation Gigawatts 106 122

Oil Million barrels/ day 2.2 2.9

Biofuels Million barrels/ day 0.6 0.9

15 Sources: BMI, IBRAM, Bracelpa, EIA

147,4 %

60,7 %

59,9 %

26,3 %

6,0 %

46,4 %

29,2 %

62,0 %

12,0 %

15,1 %

31,8 %

50,0 %

© Metso

Strong commitment to China for almost 80 years

• First deliveries to China by Metso

Paper’s predecessors in the 1930’s.

• Over 50 paper and board and tissue

machines delivered in past 10 years

with a total capacity yearly more than

15 million tons

• Close to 40% of paper and board

production in China are made from

Metso’s deliveries.

• Hundreds of machines and processes

for the pulping industry.

16

• Witness to long friendship -Metso’s second paper machine delivery to China took place in 1956 to Guangzhou Paper

- Ceremonial signing of Guangzhou Paper PM 9 in September 2006