strengthening our investment proposition

Strengthening our investment proposition Matti Kähkönen

President and CEO

November 27, 2013 London, UK

Overview 1

Investment highlights 2

Market outlook and guidance 3

Concluding remarks 4

Overview

© Metso © Metso 4

• We are committed to taking personal responsibility for our own safety and for the safety of others • We believe that all incidents can be

prevented • Our safety performance has

improved steadily • We always emphasize our high HSE

standards of conduct when dealing with customers, suppliers, and other stakeholders • We aim to minimize our

environmental footprint throughout the entire value chain

HSE (Health, Safety & Environment)

0 2 4 6 8

10 12 14 16

Q4/09 01/11 06/11 11/11 04/12 09/12 02/13 07/13

Lost time incident frequency

Capital Markets Day 2013

An essential element in all our activities

© Metso © Metso

30%

19% 22%

22%

7%

5 Source: Management estimates 1) Figures are unaudited and illustrative. Accounting principles are presented in a stock exchange release published on September 23, 2013 2) EBITA before non-recurring items

Becoming a more focused and integrated group

Key figures 2012 (1)(2)

Net sales: EUR 4,499 million • 48% of sales from services • 52% of sales from emerging markets

EBITA before NRI: EUR 495 million EBITA-% before NRI: 11.0% Personnel: 17,665

Market positions Services #1 Mining crushing and grinding #1 Construction crushing and screening #1-2 Pulp & Paper automation #1 Oil & Gas control valves #5

55% 18%

12%

7% 8%

2012 sales by end-market(1) 2012 sales by geographic area(1)

€4.50 bn

52% Emerging markets

Construction Mining

Oil & Gas

Other Pulp & Paper €4.50 bn

North America Europe

South and Central America

Africa and Middle East

Asia-Pacific

© Metso © Metso

Our businesses have a strong services component

6 Capital Markets Day 2013

1,530 1,823

2,072

2010 2011 2012 1-9/13

1-9/12 1,522

650 770

859

626 605

11.1%

13.5%

11.8%

11.2%

13.0%

2010 2011 2012 1-9/12 1-9/13

2,419

2,967

3,492

2,568 2,286

11.2% 10.9%

12.0% 11.7% 12.6%

2010 2011 2012 1-9/2012 1-9/2013

Mining and Construction (80% of sales(1)(2)) Net sales and EBITA margin(3)

Automation (20% of sales(1)(2)) Net sales and EBITA margin(3)

Of which services (~50% of sales)


1,470

Average EBITA margin: 17-19% Services business net sales

Maintenance Performance services

Spare and wear parts

Life-cycle services

Flow control Process automation

Crushing and screening

Grinding solutions

Minerals processing solutions

Source: Company information 1) 2012. Includes services and intra-Metso net sales 2) 2012. Excludes Valmet Automotive, Group Head Office, and others 3) EBITA before non-recurring items

Investment highlights

© Metso © Metso

Our strong assets and strategic must-wins

1) Return on capital employed (ROCE) before taxes

Services

Technology offering

Growth countries

Operational excellence

Continued growth through an excellent offering

Develop competitive cost-efficient, market-driven technology

Embed intelligence in machines, services, and processes

Increase presence in growth countries

Improve cost-competitiveness and increase productivity

Develop common global platforms, processes, and operating models

Develop a working environment that will drive our business success

People and leadership

Well-positioned to benefit from long-term growth trends

Global footprint, with leading positions in all the markets we serve

Services-driven business model

Competitive advantage through unique combined offering

Strong financial track record to support superior performance

Our assets Our strategic must-wins Our targets

≥30%

ROCE %(1)

11-16%

EBITA margin

>10% p.a.

Services sales

>Market growth

Sales growth

Capital Markets Day 2013 8

An attractive investment proposition

© Metso © Metso

Our assets offer a strong investment case

Well-positioned to benefit from solid long-term growth trends

Leading positions in all the markets we serve and a global footprint

Services-driven business model

Competitive advantage through a unique combined offering of equipment, services, and intelligence

Strong financial track record to reach the next level of performance

1

2

3

4

5


© Metso © Metso

General input efficiency and scarcity Reduced people intensity at work sites

Yield improvement Waste handling

Environmental impact Health and safety

We are well-positioned for growth Helping customers deal with increasingly scarce resources and improve their operational efficiency


1 2 Growth trends


Globalization Urbanization Emerging markets growth

Sustainability and climate

change

Geological inflation

Intelligence Product life-cycle solutions

Performance improvements

Maintenance, wears and spares

Equipment and systems

3 4 5

Metso’s differentia-ted solutions

Customer challenges

Megatrends

© Metso © Metso

Capitalizing on long-term growth prospects in all our end-markets

11 Source: Management estimates, industry experts 1) Refers to energy and hydrocarbons

~45% 12% • Growth in energy consumption • Environmental concerns and

compliance • Safety demands

6-8%

~55% 55%

• Demand for metals and minerals • Growth of emerging markets • Urbanization, infrastructure

investments • Need for higher utilization and

process efficiency at mines

5-8%

~40% 18% • Infrastructure expansion in

growth countries • Urbanization 4-6%

Mining

Construction

Oil & Gas1

Market drivers Share of services

% of net sales, 2012

Long-term market growth, p.a.


1 2 Growth trends 3 4 5

© Metso © Metso

Leading market position in all our businesses

Mining services

Construction services

Services in automation

Grinding mills

Mining crushers

Crushing and screening

A strong position in selected niches

O&G control valves

P&P control valves

P&P automation sy

Services >2.1 bn

Mining equipment >1.2 bn

Construction equipment ~500 m

Automation equipment ~500 m

Total addressable services market >20 bn

Mining equipment 11 bn Construction equipment 8 bn Flow control 10 bn Systems 5 bn

#1

#1

niche

#1

#1

#1 #5

#1

#1

Services Mining Construction Automation

Addressable market (EUR)

Global market positions

Contribution (EUR)


1 2 Leading market positions & global presence 3 4 5

© Metso © Metso

We leverage our global presence to capture growth everywhere

Capital Markets Day 2013 13 At the end of 2012.

2,997 of which 62% in Services €m

South and

Central America


North America


Europe


Africa and

Middle East

2,737 of which 39% Services €m

Asia Pacific

968

830

997

333

1,371

Metso location

1 2 Leading market positions & global presence 3 4 5

Net sales

Net sales

Net sales

Net sales

Net sales

© Metso © Metso

-40%

-30%

-20%

-10%

0%

10%

20%

30%

2007 2008 2009 2010 2011 2012 2013 Services sales growth Equipment sales growth

50

75

100

125

150

175

200

2007 2008 2009 2010 2011 2012 2013

Mining capex Metso services

Services business offers growth and stability

~50% of Group revenues

Our services provision to customers requires: • Deep domain/application expertise • Network infrastructure • Exceptional logistics capabilities • The ability to scope and price new

services • Highly localized organization

Our services organization provides: • Proximity to customers • Enhanced visibility on earnings

Our services offering is becoming increasingly intelligent to meet our customers’ challenges

Source: Company information and McKinsey Basic Materials Institutes – March 2013 1) Includes services sales relative to the Mining and Construction business 2) Based on LTM as of September 30, 2013

1

Services provide stability Indexed

2

Services also provide profitable growth

CAGR ’06-’13: 3.8% CAGR ’06-’13: 7.6%

2


1 2 Services driven business model 3 4 5

© Metso © Metso

We operate a unique global services network

15

The most extensive services hub network in the industry: More than 70 hubs close to our customers

Global distribution and logistics network for wears and spares

Structured knowledge sharing across our network

Service centers



© Metso © Metso

Increasingly intelligent services offering Differentiating ourselves by embedding intelligence in our portfolio

16

Capital equipment

Spare parts

Wear parts

Standard services

Multi-year contracts

Process technology

Engineered services solutions

Performance services solutions

Embed intelligent in our machines, services, and processes Intelligent solutions

Spare and wear parts solutions


Transition from being an equipment and transactional services supplier to a intelligent solutions provider is ongoing across the Group


© Metso © Metso

We have a unique combination of equipment, services, and intelligence

Traditional

Equipment Services Intelligence + +

Strategic direction

Intelligence Capability to embed intelligence in machines, services, and processes

Equipment Cost-competitive and market-driven technology offering

Services Excellent services, know-how, network, and services culture

Intelligence

Services

Equipment Growing

end markets

Oil & Gas

Mining

Construction


1 2 Unique combination of equipment, services and intelligence 3 4 5

© Metso © Metso

Examples of intelligent solutions

Products that help customers control or design their processes more intelligently

Features or subsystems that help customers run their equipment more intelligently

Combination of Metso equipment, intelligent products, and services that provide business benefits in terms of greater effiency, higher output etc.

Services that enable customers to gain from Metso’s expertise in technologies and processes

Products

Embedded

Solutions

Category Examples

Metso Intelligence enables customers to improve their processes and achieve higher efficiency, greater output, improved sustainability and safety, and reduce operational cost


Services

Valve controls Analyzers DCS ExperTune

Machine automation Remote monitoring and

control Asset management

Automated crushing plants Paper Quality Management

Advanced process control

consulting services Life-Cycle Services Crushing and grinding

process optimization consulting service

1 2 Unique combination of equipment, services and intelligence 3 4 5

© Metso © Metso

2.8

3.3 3.7

2.9 3.1

3.7

4.4 1.2 1.2

1.0

0.8

1.1

1.2

1.0

-06 -07 -08 -09 -10 -11 -12

Equipment Book-to-bill ratio

390 463

517

305 344

428

521

13.9%

14.0%

14.1%

10.3% 11.2% 11.5% 12.0%

-06 -07 -08 -09 -10 -11 -12

EBITA EBITA-%

35.1% 34.9% 31.3%

20.2%

24.0% 25.0%

30.2%

-06 -07 -08 -09 -10 -11 -12

ROCE-%

Capital Markets Day 2013 1) Combined Mining and Construction and Automation figures unless otherwise noted

Net sales1

EUR billion EBITA before NRI1

EUR million Operational ROCE1

%

We have a strong financial foundation

CAGR (2006-12) 7.5%

Services CAGR 9.0%

Average margin (2006-12) 12.4% Average (2006-12) 28.7%

Improving profitability

Strong return on capital

Services

19

1 2 Strong financial foundation 3 4 5

© Metso © Metso 20

Targeting the next level of financial excellence

>10% annual growth on average Services net sales +14%

To grow faster than net sales Earnings per share n/a

11-16% before NRI Profitability (EBITA %) 11.0%

At least 30% (before taxes) Return on capital employed (ROCE) 19.2%

Supporting a solid investment-grade credit rating Capital structure BBB,

Baa2

At least 50% of annual earnings per share Dividend payout n/a

Growth to exceed market growth Net sales +14%


2012


© Metso © Metso

• The program is designed to improve our cost structure and operational efficiency

• Maintain competitiveness and increase productivity

• A combination of both on-going and new initiatives

• Target to achieve a high run rate of savings by late 2014

Global efficiency program under way Targeting annual cost-savings of around EUR 100 million by the end of 2015



© Metso © Metso

Our capital allocation policy

Services in all businesses

Intelligent offering

Flow Control Mining

Services

According to Metso’s strategic growth priorities

1. Organic growth 2. M&A 3. Return excess cash to shareholders

Use of available capital

As a top priority, we will maintain a capital structure and liquidity position that secures: • Investment-grade credit rating • ability to execute our dividend policy (>50% of EPS)


1 2 3 4 5 Strong financial foundation

Market outlook and guidance

© Metso © Metso

Market outlook

55% of net sales 55% service intensity Current demand:

Satisfactory in capital business. Services good.

Mining


Satisfactory for equipment and services.


Good in oil & gas; satisfactory in pulp & paper. Services good.

Construction Automation

3-6 months market outlook ( )

Equipment Services

Equipment Services


Equipment Services

© Metso © Metso Capital Markets Day 2013 25

Our net sales and EBITA before non-recurring items in 2013 will be significantly lower compared to 2012.

Additional information:

• Mining and Construction segment: Net sales are expected to be somewhat lower and EBITA before non-recurring items at around the same level compared to 2012

• Automation segment: Net sales are expected to be at around the same level and EBITA before non-recurring items is expected to improve significantly compared to 2012

• Valmet Automotive is expected to book a substantial loss for 2013

The estimates for our financial performance in 2013 are based on the current market outlook, order backlog for 2013, and foreign exchange rates in September 2013.

Guidance for 2013

Conclusions

© Metso © Metso

years at Metso

Strong and experienced management team


1) Mr. Colagrossi, currently President, Services Business Line, Mining and Construction, will be responsible for the development of the Metso Group’s overall services business until he takes over as the head of Mining and Construction. His successor in Services position will be nominated later.

Merja Kamppari Senior Vice President HR Prev.: Nokia HR for 15 years Born: 1958 Share ownership: 5,284

Matti Kähkönen President and CEO Born: 1956 Share ownership: 20,507

Harri Nikunen Executive Vice President and CFO Born: 1955 Share ownership: 8,115

Andrew Benko President Mining and Construction (until Dec 31, 2013) Born: 1949 Share ownership: 15,003

João Ney Colagrossi President Mining and Construction (Jan 1, 2014 onwards)1

Born: 1955 Share ownership: 14,029

Perttu Louhiluoto President Automation Prev.: McKinsey for 17 years Born: 1964 Share ownership: 2,753

Simo Sääskilahti Senior Vice President Strategy and Business Development Prev.: Comptel and McKinsey Born: 1971 Share ownership: 0

33 years at Metso

27 years at Metso

41 years at Metso

34

years at Metso

5 years at Metso

4 years at Metso

2

27

© Metso © Metso

We are uniquely positioned to create value for shareholders across the economic cycle


Margin expansion

+ Productivity

Resilience

Stability +

Faster than market >10% for services

Growth = Increased value

Track record Strong competitive positions Strategic focus High proportion of services with defensive characteristics Geographical diversity

Group integration Productivity enhancing plan Economies of scope Economies of scale

Megatrends Growth markets Services Intelligent solutions Group integration External growth opportunities

Value-enhancing returns on capital

EPS growth greater than sales growth

Strong cash generation

Solid financial position

Competitive shareholder returns

strengthening our investment proposition

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