1. Sustainable use of Earth’s natural resources
3/31/2017
Sustainable use of Earth’s natural resources
CEO Pertti Korhonen
SEB Enskilda Nordic Seminar
January 10, 2012

2. Outotec – expert in sustainable technology
Outotec develops and delivers leading technologies enabling sustainable use of Earth’s natural resources
Outotec guarantees the best ROI to customers’ life cycle solutions in
Minerals and Metallurgical processing
Energy production
Industrial Water Treatment
Chemical industry
Technology development and deliveries since 1890s to over 80 countries in all key markets
Strong R&D and IP portfolio
Approx. 5,000 patents or applications
Some EUR 35 million in R&D (2010)
72% of order intake in 2010 is classified as Environmental Goods and Services (OECD definition)
Sales and operating profit development
EUR million
Guidance Sales: EUR bn Ebit%: approx. 8-9
Operating profit, %
**)
*) Combined basis
**) from operations, excl. one-time costs and PPAs
Some 3,700 professionals in 25 locations
Operating through flexible, scalable and asset light business model
Roughly 2/3 of sales (2010) from emerging markets (Dow Jones emerging market list)
2012
SEB Enskilda Nordic Seminar
© Outotec Oyj

3. Over a century as a technology leader
3/31/2017
Over a century as a technology leader
Year
2012
2011
2010
2006
2001
1990
1970
1950
1900
VPF, ASH DEC, EPI, KILN SERVICES
MILLTEAM, EDMESTON
AUBURN (2008)
Listing on the NASDAQ OMX Helsinki
OUTOKUMPU TECHNOLOGY
AUSMELT
BOLIDEN CONTECH
OUTOKUMPU
LURGI
METALLURGIE
GRINDING MILLS
KHD ALUMINIUM
AISCO, SUPAFLO
WENMEC
LAROX
2012
SEB Enskilda Nordic Seminar

4. Life cycle offerings delivered globally through four business areas
Market Operations
Supply
Business Infrastructure
Strategy
Technology Management
Finance & Control
Legal Affairs
Human Capital
for the processing of copper, nickel, zinc, lead, gold, silver, platinum group metals, industrial minerals as well as valuable minor metals
for the production of concentrates, industrial minerals, pellets, sinter, pig iron, direct reduced iron, ferroalloys, and titanium feedstock
for oil shale, oil sands and biomass processing, light metals and sulfuric acid production, off-gas handling, and industrial water treatment
providing life cycle services
Non-ferrous Solutions
Ferrous Solutions
Energy, Light
Metals & Environmental Solutions
Services
Jacobs (Aker), Andritz, Bateman Engineering/Litwin, BGRIMM, CITIC, Delcor, EPCM, FLS, Krupp Polysius, Mesco, Metso, PERI, Siemens, SMS Meer, Thermo Fisher, WesTech, Xstrata
Jacobs (Aker), Bateman Engineering, BSIET, Danieli, Downer, FLS, Kobelco, Metso, Midrex, Siemens, SMS Siemag, Tenova Pyromet
Jacobs (Aker), Alcan, Alstom, Brochot, FLS, Foster Wheeler, GEA, MECS, Siemens, Solios, Stultz, Veolia
FLS, Metso, local competitors, internal maintenance departments
Engineering: AMEC, Ausenco, Bechtel, Chalieco, Enfi, Fluor, Hatch, MCC, NERIN, NFC, SNC-Lavalin, SRK, Worley Parsons
Competitive landscape is fragmented, no face-to-face competitor
Peers /competitors
2012
SEB Enskilda Nordic Seminar

5. Natural resources (ores, minerals, energy, water)
3/31/2017
Portfolio of the world’s best technologies covers the whole value chain from ore to metal
Natural resources (ores, minerals, energy, water)
Minerals processing
Grinding
Flotation
Filtration
Physical separation
Thickening and clarification
Analyzers and process automation
Metallurgical processing
Sintering and pelletizing
Smelting and refining
Direct and smelting reduction
Calcination
Roasting and off-gas handling
Leaching and solution purification
Solvent extraction
Electrorefining and electrowinning
Process control
Industrial minerals/concentrates
Copper
Nickel
Zinc
Cobalt
Precious metals
Aluminum
Ferroalloys
Pellets/sinter
DRI/HBI/ Pig Iron
Sulfuric acid
Water
Shale oil
Char
Energy
Services Expert services, spare parts and maintenance, operation, modernization and expansion, life cycle service contracts
Chemicals Sulfuric acid production
Energy Combustion and gasification, heat recovery, gas handling, bio energy, oil sand and oil shale processing
Water treatment Neutralization, effluent treatment, drinking water
2012
SEB Enskilda Nordic Seminar

6. Examples of Outotec’s Best Available Technologies (BAT)
Flash smelting and flash converting for copper and nickel
Zinc direct leaching
Electrolytic refining of copper, nickel, zinc
Circored® Direct reduction of iron ore fines
Traveling grate process for iron ore pelletizing
Emission optimized sintering for iron ores
Ferrochrome process
Alumina calcination
Aluminum smelting (rodding plant, green paste plant)
Partial roasting of copper concentrate
Zinc roasting in fluidized bed
Pyrite roasting
Sulfuric acid production (single/double absorption)
Spent acid regeneration
Wet electrostatic precipitator
Outotec delivers a new manganese sinter plant in Hotazel, for Kalagadi Manganese. The new plant will be one of the largest manganese sinter plants (capacity 2.4 million tonnes of manganese sinter p.a.).
2012
SEB Enskilda Nordic Seminar

7. Long-term customer relationships with all the industry’s top companies
Selected reference customers of Outotec
Large global mining companies (seniors)
Small and medium sized companies (juniors)
Local mining and metallurgical companies in emerging regions
Repeat business
Multiple technologies for single companies
The life-cycle customer approach aims at servicing its customers over the full life of a mining site / metallurgical plant
Outotec has a strong track record for delivering multiple technologies to single companies
2012
SEB Enskilda Nordic Seminar

8. Industry drivers

9. Emerging market GDP growth is driving metals demand
Long-term metals demand is expected to continue healthy as GDP growth is driving the metals consumption per capita in emerging markets due to urbanization and investments into infrastructure.
High GDP growth drives continuing growth of commodities demand in the range of 4 to 7% p.a.
Source: IMF, Sept 2011
2012
SEB Enskilda Nordic Seminar

10. Middle class is growing globally
The share of consumers from emerging markets in the global population is expected to double in the next 20 years which will push demand for commodities
The rise of the middle class will drive strong growth of consumer spending in emerging markets
2012
SEB Enskilda Nordic Seminar

11. Demand for sustainable technology increases
Ore grades are declining and the demand for metals is increasing. In order to meet the demand, more ore needs to be processed with more advanced technology.
Ore grade
Making metals requires a lot of energy and energy costs are constantly climbing. More energy-efficient processes are needed.
Energy
Mining and metallurgical industries are major emitters of CO2 and eco-toxic substances. Cleaner solutions must be developed.
Emissions
Water availability and pollution are critical issues. Advanced solutions for water cleaning, conservation and recycling are needed.
Water
Peak oil is approaching. Oil is expected to run out by 2050 with current production rates, thus alternative sources are needed.
Peak oil
The need for recycling is growing, thus requiring new technologies for turning scrap and waste into products.
Recycling
2012
SEB Enskilda Nordic Seminar

12. Industry’s current and future technology trends are favorable for Outotec
Current trends
Larger capacities
Continuous processes (vs Batch process)
Safer processes and cleaner working environment
Higher reliability, availability and maintainability
Water, energy and material efficiency
Zero impact extraction technologies
Intelligent automation with remote process control and monitoring
Future trends
Overall eco-efficiency from mine to metal
Shorter process chains
Bioprocessing
Enhanced leaching technologies with efficient lixiviants
Recycling of novel materials
Renewable energy technologies
Quantum leap technologies
2012
SEB Enskilda Nordic Seminar

13. Positive development of metal prices and demand have been the catalyst for new mine developments
Raw Materials Group mine map
Phase status
Number of projects
Examples of Outotec’s
11/2011
2010
2009
offerings
Construction
230
190 84
Plant, process and solution deliveries
Feasibility
389
259
246
Piloting, bench scale testing, process design
Prefeasibility
470
243
225
bench scale testing, process design
Conceptual
206
183
Laboratory services, process consept designs
Source: Raw Materials Data. Copyright: Raw Materials Group, 2011
2012
SEB Enskilda Nordic Seminar

14. Outotec’s strategy in a nutshell
The best return on a customer’s investment
Global integrated operations and local presence
Applying core technologies in new attractive growth areas
Increasing value through
life cycle solutions
Improving
productivity and scalability
Leadership in technology and innovation
Sustainable use of Earth’s natural resources
Q1-Q3/2011
Company presentation

15. Increasing value through life cycle solutions
We strengthen our earnings logic by offering ore-to-metal total solutions and life cycle services.
Outotec solution elements
Value
Growing solution scope
Services
Project
delivery
System
integration
Value-based pricing
Proprietary
equipments
We minimize the lifecycle costs of our customers’ sustainable operations through best available technology and service solutions.
Pertti:- teksti pitäisi katsoa vielä läpi - ei ole nyt sujuva. Miettikää Antti Laulaisen kanssa pohjautuen Antin OT mgmt forumissa läpikäymään solutions business määrittelyyn. Pitää saada artikulaatio napakammaksi.
- lisäksi tästä jää puuttumaan se tärkeä asia, että minerals&metals procesing liiketoiminnassa nimenomaan tämä on se ydinstrategia vahvistaa ansaintalogiikkaamme ja kasvaa nopeammin kuin markkina ja pärjätä niitä kilpailijoita vastaan jotka kilpailevat pelkällä hinnalla.
Technology, equipment,
systems integration,
project delivery
Spare parts
Operation and
maintenance
Technology
Upgrades
Maintenance
shutdown
Research and
analysis
Outotec CAPEX solutions
Outotec service solutions
Maximizing life cycle profitability for Customer and Outotec
Q1-Q3/2011
Company presentation

16. Applying core technologies in attractive new growth areas
Outotec uses proven technologies and core capabilities to create innovative solutions to adjacent industries.
Entering adjacent industries with high technological synergies and manageable risks
Opportunities to provide expert services and innovative technological solutions in energy industry and industrial water treatment sector
Current metals
and minerals
IWT
Energy
Project
delivery
System
integration
Services
Proprietary
equipments
Technology
Q1-Q3/2011
Company presentation

17. Q3 results in brief and delivering long-term financial targets

18. Strong order momentum in Q3
Order intake in Q1-Q3/2011 EUR 1,678.4 million (Q1-Q3/2010: EUR 1,038.2 million), +62%
Order intake in Q3/2011 EUR million (Q3/2010: EUR million), +198%
Orders from EMEA (including CIS) represented 52%, Americas 34% and Asia Pacific 14%
Concentrator technology (gold) for the Petropavlovsk Group, Russia
€ 25 million
Gas cleaning and sulfuric acid plant for OJSC Almalyk Mining & Metallurgical Company, Uzbekistan
approx. € 30 million
Copper concentrator for ZAO Miheevsky GOK, Russia
€ 60 million
High Gradient Magnetic Separators (iron) for London Mining Plc, Sierra Leone
over € 10 million
Iron ore pelletizing plant for Novolipetsk Metallurgisk Kombinat, Russia
€ 150 million
Aluminum smelter technology for Emirates Aluminium PJSC (EMAL), Abu Dhabi
over € 100 million
Ferrochrome plant for Mintal Group Co. Ltd, China
value not disclosed
2 Calciners for Ma'aden Bauxite Aluminium Company, Saudi Arabia
€ 62 million (roughly € 50 million in Q3 order intake)
Concentrator technology for Codelco, Chile
approx. € 24 million (half in Q2 and the rest in Q3)
Outotec offices
2012
SEB Enskilda Nordic Seminar

19. Record-high order intake in Q3 resulting in order backlog over EUR 2bn
EUR million
Order backlog at the end of Q3/2011 was EUR 2, (1,332.2) million, 54% higher than at the end of Q3/2010
35 projects with value in excess of EUR 10 million, accounting for 68% of the backlog
Roughly 25% (or approx. EUR 510 million) of the backlog is estimated to be delivered in 2011 and the rest in 2012 and beyond
Strong quarterly fluctuations in order intake
Announced orders in Q4/2011: approx EUR 100 million
Share of unannounced orders
2012
SEB Enskilda Nordic Seminar

20. Solid organic sales growth and improved profitability
Solid organic sales growth and improved profitability
EUR million
Q1-Q3 2011
Q1-Q3 2010
Change %
Last 12 months
2010 Q3
2011
Change %
Sales
888.8
639.4
+39.0
1,219.1
969.6
352.8
228.5
+54.4
Gross margin, %
24.0
25.8
24.8
26.2
24.9
27.3
Operating profit from business operations
66.6
41.2
+61.6
100.1
74.7
34.3
26.4
+30.0
- one-time restructuring cost
-22.3
-4.2
-26.5
-6.2
- PPA amortization
-3.6
-7.6
-5.4
-9.4
-1.2
-2.0
+ revaluation of Ausmelt shares -
+2.2
+ Other
+0.6
Reported operating profit
63.0
13.5
+367.4
91.1
41.6
33.2
18.1
+83.0
FX impact (unrealized, realized)
+2.3
+3.3
+0.9
+1.9
-2.5
+4.7
Operating profit margin, %
7.1
2.1
7.5
4.3
9.4
7.9
- from business operations, %
6.4
8.2
7.7
9.7
11.5
2012
SEB Enskilda Nordic Seminar

21. Services – very strong organic growth
Sales of the Service business in Q1- Q3 were EUR million (Q1- Q3/2010: million), up 29%
In the reporting period, Service business represents 26% of sales (Q1-Q3/2010: 28%)
Sales of the Service business in Q3/2011 were EUR 87.7 million, representing 25% of sales (Q3/2010: million, 30% of sales)
Long-term Services sales target: EUR 500 million by the end of 2015
EUR million
2012
SEB Enskilda Nordic Seminar

22. Strong cash flow and further strengthened financial position
EUR million
Q1-Q3 2011
Q1-Q3 2010
Last 12 months
2010 Q3
2011
Net cash from operating activities
225.8
92.3
221.0
87.5
120.1
50.3
Net interest-bearing debt*)
-356.7
-206.0
-200.9
Equity*)
351.2
328.0
357.7
Equity-to assets ratio, %*)
39.3
41.9
41.2
Gearing, %*)
-101.6
-62.8
-56.2
Working capital*)
-269.6
-141.3
-113.5
ROI, %
21.8
3.9
24.2
9.2
34.6
18.5
ROE, %
15.9
3.3
17.9
7.6
25.5
14.2
Earnings per share, EUR
0.93
0.18
1.34
0.59
0.48
0.25
*) At the end of the period
2012
SEB Enskilda Nordic Seminar

23. Improving EBIT margin towards long-term target of average 10%
Guidance Sales: EUR bn EBIT%: approx. 8-9
L-T targets:
Sales: 10-20% CAGR
EBIT%: avg 10%
Maintain strong balance sheet
Div policy: at least 40%
EUR million
Operating profit margin, %
2010 EUR 26 million annualized savings have been reinvested into future growth and profitability improvement
Investment areas in 2011:
Services business
Sales and marketing
Supply and partnering network development
R&D
Shared business processes
IT platforms
M&A
Investments today enable
future growth and better sales-
to-fixed-cost ratio.
**)
Financial Statements Review 2011 will be published on Thursday, February 9, 2012.
*) Combined basis **) from operations, excl. one time costs and PPAs
2012
SEB Enskilda Nordic Seminar

24. Key factors of operating profit margin development
Quartely and annual fluctuations
Project scope & mix (CAPEX vs Service)
Timing of license fee payments
Timing and success of project completions
Percentage of Completion schedules
Foreign Exchange rates
L-T
Target:
average
10%
Services sales
Life cycle solutions
Pricing excellence
Supply savings
Engineering productivity
License fee incomes
Global resourcing
Scaling effect _
Pricing pressures
Competition
Cost inflation
R&D investments
Selling and marketing
Administration +
2012
SEB Enskilda Nordic Seminar

25. Events after Q3/2011
Outotec has agreed with Luossavaara-Kiirunavaara AB (LKAB) on a delivery of technology package for thickening the tailings in the Svappavaara iron ore mine in Sweden. The contract value is some millions of Euros.
Outotec acquired a furnace refractory demolition business of Kiln Services Australia Pty Ltd. The parties have agreed not to disclose the purchase price.
Outotec acquired all interests in Energy Products of Idaho Limited Partnership (EPI) in the United States. The acquisition price consists of two components: a fixed cash element of approx. EUR 43 million and an earn-out payment of max EUR 25 million based on EPI's financial performance in 2012 and 2013.
Outotec and one of the world's leading sustainability consulting companies, PE International (Germany), announced a joint development of a new software interface for metals production sustainability and lifecycle evaluations.
Greenfield copper production plant for Guangxi Jinchuan Non-Ferrous Metals Compay in Fangchenggang, China. Over EUR 30 million.
Outotec received jury's honorary mention in the competition evaluating the corporate responsibility reporting of the Finnish companies. Outotec published its first corporate responsibility report, Outotec Sustainability report 2010, this year.
New copper-molybdenum concentrator for Quadra FNX Mining Ltd in Sierra Gorda, Chile. EUR 26 million (the majority is booked in Q3 order intake with a small part being booked in Q4).
Gold pressure oxidation (POX) technology for Russian Petropavlovsk Group. The contracts complement contracts disclosed in May and July EUR 34 million (the majority is booked in Q4 order intake with a small part being booked in Q3).
New ferrochrome plant based on Outotec's proprietary technology for TISCO, on the to Jinzhong, China. Value not disclosed.
On October Outotec was featured in CDP’s Nordic Carbon Disclosure Leadership Index. Outotec received 81 out of 100 points and was ranked among the top 10 percent of the 260 companies.
2012
SEB Enskilda Nordic Seminar

26. Sustainable use of Earth's natural resources.
3/31/2017
Our mission:
Sustainable use of Earth's natural resources.
2012
SEB Enskilda Nordic Seminar