CEO's review - Outotec

Industries servedWe innovate, develop and deliversustainable technology solutionsand life cycle services to:• Minerals and metals industries(84% of sales)• Energy industry• Industrial watertreatment• Chemical industry• 87 % of the order intakeEnvironmental Goods andServices, OECD2March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

We have been a technology leader for over acenturyYear20122010Listing on the Helsinki Stock ExchangeNUMCOREKILN SERVICESVPF, ASH DECMILLTEAMEDMESTONAUBURN2006OUTOKUMPU TECHNOLOGY2001BOLIDEN CONTECHNORDBERG GRINDING MILLS1990KHD ALUMINIUMAISCO, SUPAFLOWENMECAUSMELTENERGYPRODUCTSOF IDAHO1970OUTOKUMPULURGIMETALLURGIELAROX195019003 March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Examples of benchmark technologies• Half of the world's pyrometallurgical primarycopper is produced with Outotec ® FlashSmelting• One-third of the world’s hydrometallurgicalcopper is produced with Outotec ® SX-EW• Over a third of the world’s sulfuric acidcapacity runs on Outotec technology• Most of the world's iron ore pellets areproduced using Outotec's traveling grateprocess• Extensive IPR portfolio• Over 5,300 national patents or applications,over 70 trademarks• EUR 34 million investment in R&D (2011)4March 23, 2012Outotec AGM 2012© Outotec - All rights reserved

Flexible operational model• Presence in 24 countries, some 3,900 professionals deliveries to over 80 countries• Global subcontractor/partner network• Thousands of suppliers for engineering and construction, manufacturing, components, rawmaterials and services• 90% of manufacturing sourced from external suppliers5March 23, 2012Outotec AGM 2012© Outotec - All rights reserved

Long-term customer relationships with all the industry’s topcompaniesSelected reference customers of OutotecLarge global mining companies(seniors)Small and medium sizescompanies (juniors)Local mining and metallurgicalcompanies in emerging regionPeers and competitorsNon-ferrous Solutions:Jacobs (Aker), Andritz,Bateman Engineering/Litwin,BGRIMM, CITIC, Delcor,EPCM, FLS, Krupp Polysius,Mesco, Metso, PERI,Siemens, SMS Meer, ThermoFisher, WesTech, XstrataFerrous Solutions:Jacobs (Aker), BatemanEngineering, BSIET, Danieli,Downer, FLS, Kobelco, Metso,Midrex, Siemens, SMSSiemag, Tenova PyrometELE Solutions:Jacobs (Aker), Alcan, Alstom,Brochot, FLS, Foster Wheeler,GEA, MECS, Siemens, Solios,Stultz, VeoliaServices:FLS, Metso, local competitors,internal maintenancedepartmentsEngineering: AMEC, Ausenco, Bechtel, Chalieco, Enfi, Fluor, Hatch, MCC, NERIN, NFC, SNC-Lavalin, SRK, Worley Parsons7March 23, 2012Outotec AGM 2012© Outotec - All rights reserved

2011 - a record breaking yearEUR million 2011 2010 ChangeOrder intake 2,005.4 1,394.7 +44%Order backlog 1,985.1 1,393.1 +42%Sales 1,385.6 969.6 +43%Operating profit from business operations*) 121.5 74.7 +63%Operating profit from business operations, % 8.8 7.7Net cash flow from operating activities 247.0 87.5 +182%Earnings per share, EUR 1.75 0.59 +197%*) excluding one-time items and purchase price allocation (PPA) amortizations8March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Demand for Outotec's technologies was highin all market areas and end products• Order intake in 2011 EUR 2,005.4 million (2010: EUR 1,394.7 million), +44%• Order intake in Q4/2011 EUR 327.0 million (Q4/2010: EUR 356.6 million), -8%Americas 33%Iron ore pelletizing plant for SamarcoMineracao, Brazil€ 200 millionEffluent treatment plant for Codelco,Chile€ 18 millionConcentrator technology forCodelco, Chileapprox. € 24 millionCopper-molybdenum concentratorfor Quadra FNX Mining, Chile€ 26 millionEMEA (including CIS) 49%Copper flash smelting furnace andservices for RTB Bor, Serbia€ 60 millionCopper concentrator for ZAOMiheevsky, Russia€ 60 millionPelletizing plant for NovolipetskMetallurgisk Kombinat, Russia€ 150 millionGold concentrator and pressureoxidation technology forPetropavlovsk , Russia€ 25 million + € 34 millionGas cleaning and sulfuric acid plantfor Almalyk Min. & Met., Uzbekistan€ 30 million2 Calciners for Ma'aden BauxiteAluminium Company, Saudi Arabia€ 62 millionCopper flash smelter for NICICO, Iran€ 61 millionAluminum smelter technology forEMAL, Abu Dhabiover € 100 millionAsia Pacific 18%Outotec officesFerrochrome plant for Mintal Group,Chinavalue not disclosedFerrochrome plant for TISCO jointventure, Chinavalue not disclosedCopper/gold concentratortechnology and services for SandfireResources, Australia € 15 million9March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Strong cash flow, balance sheet, ROI, ROE andEPSEUR million 2011 2010Net cash from operating activities 247.0 87.5Net interest-bearing debt *) -339.1 -200.9Equity *) 399.5 357.7Equity-to assets ratio, % *) 39.1 41.2Gearing, % *) -84.9 -56.2Working capital *) -270.3 -113.5ROI, % 26.4 9.2ROE, % 20.9 7.6Earnings per share, EUR 1.75 0.59*) At the end of the period10March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

World megatrends impacting our industrySUSTAINABILITYAwareness increasing in environmental, socialand economic sustainability.ENVIRONMENTAL PROBLEMSGlobal warming, pollution of environment, lackof clean waterFOCUSINGOutsourcing of non-core activities increasingand Asia is established as the world’smanufacturing powerhouse.NEW ENERGY PARADIGMOil will run out by 2050 and nuclear power isbeing abandoned by many countries.POLARIZATION OF THE WORLDIncreasing gap between stagnating developedeconomies and fast growing emerging markets,dominance of China.GLOBALIZATIONIncreasing competition, consolidation andintensifying global talent warNATURAL RESOURCESNatural resources are being exhausted andwith current exploitation rate many resourceswill run out during the next decades.GLOBAL ECONOMYWorld economy has become highlyinterconnected and financial crises follow eachothers every few years.DEMOGRAPHIC CHANGESWorld population will grow rapidly and demandfor commodities will increase.11March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Demand for sustainable technology increasesPeak oil Water Emissions Energy Ore gradeOre grades are declining and the demand for metals is increasing. Inorder to meet the demand, more ore needs to be processed with moreadvanced technology.Making metals requires a lot of energy and energy costs are constantlyclimbing. More energy-efficient processes are needed.Mining and metallurgical industries are major emitters of CO 2 and ecotoxicsubstances. Cleaner solutions must be developed.Water availability and pollution are critical issues. Advanced solutionsfor water cleaning, conservation and recycling are needed.Peak oil is approaching. Oil is expected to run out by 2050 with currentproduction rates, thus alternative sources are needed.RecyclingThe need for recycling is growing, thus requiring new technologies forturning scrap and waste into products.12March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Economical growth and its impact on environment can bedecoupled by ecoefficiency enabled by advanced technologieswelfareenvironmental impacteco-efficiencyAdvanced technologiesenvironmental impactSource: www.wbcsd.org13March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Sustainability at Outotec• Sustainability is a core element in our mission andprinciples• Outotec has signed the United Nations GlobalCompact initiative and has committed to its principlesof human rights, environment, labor and anticorruption.• Outotec is member of Cleantech Finland.• 87% of order intake (2011) classified as EnvironmentalGoods and Services (OECD definition).• Reporting based on GRI guidelines level B+ since2010.• Outotec is included in Carbon Disclosure LeadershipIndex for third year in a row.• Outotec received jury's honorary mention in thecompetition evaluating the corporate responsibilityreporting of the Finnish listed companies in 201114March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Outotec’s mission and strategyOur strategic intent:The leading provider of sustainableminerals and metalsprocessingsolutions,Sustainable solutions providing lifecycle solutions create the besteveryday value for the customers.andan innovative providerof sustainable energy and waterprocessing solutions.The best returnon a customer’s investmentGlobal integrated operations and local presenceOur mission:Sustainable useof Earth’snatural resources.Increasing valuethrough life cyclesolutionsApplying coretechnologies in newattractive growthareasLeadership in technology and innovationStrategyImprovingproductivity andscalability15March 23, 2012Outotec AGM 2012© Outotec - All rights reserved

Outotec strategy in actionThe best returnon a customer’s investment2010-2012:Integrated globaloperations,bounce back togrowth track2012-2014:True organicgrowth2014-2015:Lifecyclesolutions in placeStrategic intent:The leading providerof sustainableminerals andmetals processingsolutions,and an innovativeprovider ofsustainable energyand waterprocessing solutions.Global integrated operations and local presenceBrand, values , principlesIncreasing valuethroughlife cyclesolutionsApplying coretechnologies innew attractivegrowth areasImprovingproductivityandscalabilityLeadership in technology and innovationSustainable use of Earth’s natural resourcesOutotec strategy in nutshell• All BAs and MAs on growth track• Focus on life cycle solution offeringsand delivery capabilities• New operational model enablingscalability - global processes and ITsystems in place• Key acquisitions done andpartnerships established• Grow the Services business to EUR500 million by 2015Implementation pathFinancial targets:• 10-20% sales growthannually on average• Operating profit 10%of sales on average• Strong balance sheet• 500 M€ annualservice sales16March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Outotec’s long-term financial targetsTargeting continuous profitable growthSalesCAGR10-20%Outotec targets to grow faster than the market resultingin compound average annual sales growth target in therange of 10-20%.OperatingprofitmarginOnaverage10%Annual operating profit margin from businessoperations is targeted to be on average 10%, excludingone time costs and purchase price allocations ofacquired business.Balance sheetMaintain strong balance sheet to provide operationalflexibility and enable acquisitions.Dividend policy: Outotec aims to pay at least 40% of the annual net income.17March 23, 2012Outotec AGM 2012© Outotec - All rights reserved

Services business continues on a growth trackSales target for ServicesEUR 500 millionby the end of 2015The growth will be achieved through:• Organic means• Bolt-on acquisitions• New life cycle service offerings18March 23, 2012Outotec AGM 2012© Outotec - All rights reserved

Long term financial targets performanceEUR million Operating profit margin, %200012180016001400120010008006004002000**)**)2003 *) 2004 *) 2005 *) 2006 *) 2007 2008 2009 2010 2011 2012ESales Operating profit Operating profit margin*) Combined basis **) from operations, excl. one time costs and PPAs108642019March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Outotec share price development20March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Outotec one of the top performers on TotalShareholder Return in OMX HelsinkiAverage annual TSRJan 2009- Feb 2012 (3 years)Average annual TSRJan 2007- Feb 2012 (5 years)Rank (n=28)282624222018161412108Uponor64Stora Enso2Nokia0-40% -20% 0%HuhtamäkiRamirentM-RealFiskarsKonecranesVaconStockmannTietoElisaOrionKeskoFortumUpm-KymmeneSanomaRautaruukkiOutokumpu20%CargotecKemiraKoneYitWärtsiläMetsoAmer Sports40%60%Nokian Renkaat80%Average annual TSRRank (n=28)KoneNokian Renkaat2826Outotec2422Elisa2018MetsoYitFortum16Amer Sports14CargotecHuhtamäki12KeskoRamirent10TietoUpm-Kymmene8Stockmann Sanoma6Stora EnsoM-Real4RautaruukkiUponor20Outokumpu Nokia-40% -30% -20% -10% 0% 10%FiskarsWärtsiläVaconOrionKonecranesKemira20%Average Annual TSRNote: Total Shareholder Return (TSR)= capital gain + dividends and dividend-like itemsSource: Thomson Reuters Datastream; BCG analysis21 March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Dividend historyDividend pershare, EURPay out ratio,%Yield, %2007 (financial year 2006) 0.35 40 1.52008 (financial year 2007) 0.95 51 2.52009 (financial year 2008) 1.00 45 9.32010 (financial year 2009) 0.70 76 2.82011 (financial year 2010) 0.75 129 1.62012 (financial year 2011) 0.85*) 49 2.3*) Board proposal22March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved

Financial guidance for 2012Based on strong order backlog at the end of 2011, market outlook andcustomer tendering activity, management expects that in 2012:• sales will grow to approximately EUR 1.7-1.9 billion, and• operating profit margin from business operations will beapproximately 9 - 10% (excluding one-time items and PPAamortizations).The achievement of the guidance is subject to overall development of worldeconomy and financial markets, progress in projects in the order backlog,exchange rates, product mix, timing of new orders, license fee income andproject completions.23March 23, 2012 Outotec AGM 2012© Outotec - All rights reserved