Sustainable use of Earth’s natural resources...cell technology references, automation 1,800 thickeners delivered, global project execution capability, feedwell design Full analyser

Sustainable use ofEarth’s natural resources

CFO Jari Ålgars

Navigating the Nordics Seminar 2017, Stockholm, Danske Bank

© Outotec – All rights reserved

Safety performance

Navigating the Nordics Seminar2017

• Lost Time Incidents per millionworking hours (LTIR) includesOutotec employees andcontractors working underOutotec supervision.

• Since 2015, Outotec has hadless working hours than in2013-14 when there wherelarge projects withextraordinary safetyperformance compared toglobal peers.


Outotec at a glance

2017 Navigating the Nordics Seminar

Key figures

Financial performance

Geographic coverage

Business overview

*) Combined basis2010 onwards aEBIT, excl. restructuring and acquisition-relatedcosts as well as purchase price allocation amortizations.

MEUR %

FY 2016 FY 2015

Net Sales, MEUR 1,058 1,201

Share of services in sales, % 42 43

Gross Margin, % 22 28

Adjusted EBIT, % -2 5Gearing, % -1 10

Equity ratio, % 40 31Balance sheet total, MEUR 1,427 1,531

• Outotec is a global leader in minerals and metals processingtechnology, deliveries to more than 80 countries

• Outotec designs and delivers tailored solutions for minerals andmetals processing, water treatment, and waste-to-energy

• Delivers solutions which minimize the plant’s lifetime cost bymaximising recovery and utilizing less energy and water.

• HQ in Finland, some 4,200 employees (2016) in 34 countries

Outotec R&D, sales and service centersOutotec manufacturing/assembly


Portfolio of world-class technologies and services


RESOURCE EXTRACTION PRIMARY PRODUCTION RECYCLING

Green color shows Outotec`s expertise

MANUFACTURING USERS

FERTILIZERPRODUCTION

AGRICULTURE ENERGYPRODUCTION

PHOSPHORUS

SULFURIC ACIDPHOSPHORUSLandfill

BackfillEnergyrecovery

INDUSTRIALMINERALS

METALSSALTS

CHEMICALSSLAG

RECYCLE REMANUFACTURE

EffluentTreatment

AirborneemissionWater

management

Airborneemission

CO2CO2 CO2 CO2

MINING

Equipmentreuse

Reuse

Urbanmine

POWER PRODUCTION

NATURALRESOURCES

ORESMINERALS

WATER

BIOMASS

SERVICES ANDSOLUTIONS

COMBUSTIBLEWASTE

MUNICIPAL SLUDGE

MINERALPROCESSING

METALPROCESSING

Constructionmaterials

CONCENTRATES


Increasing demand for sustainable technologies


We have a deep knowledge of minerals andmetals processing technologies for low-gradeand complex ores.

We provide the most energy-efficient processtechnologies in the industry.

Adoption of our best practice technologiesworldwide could save 40-70 million tonnes ofCO2 in non-ferrous metals production alone.

Our solutions provide significant reduction infresh water consumption and water loss byrecycling process water.

We enable environmentally sustainable use ofwaste-to-energy as well as sludge incinerationand waste as alternative energy sources.

We provide technologies for metals recyclingand waste to energy solutions.

Ore grades are declining and ores arebecoming more complex.

Cleaner solutions must be developed toreduce CO2 and other emissions.

Water availability and pollution arecritical issues.

Alternative energy sources are needed.

More recycling is needed.

Ore grades

Emissions

Water

Energy

Recycling

EnergyMaking metals is energy intensive.


Minerals Processing segment’s offering

A complete portfolio of leading process solutions and services with full plant delivery capability

WaterTechnology

FLSmidth, CITIC,Metso,ThyssenKrupp

FLSmidth, Metso,BGRIMM, Tenova,Woodgrove

FLSmidth, Tenova-Delcor, WesTech

Aqseptence-Diemme, Metso,Andritz, FLSmidth

Thermo Fisher,BGRIMM, Blue Cube

APC: Metso,Woodgrove, SGSMinerals

DCS: Major DCSsuppliers

FLSmidth, Golder,GR Engineering,AMC

Customers ownmaintenance,Major tech.suppliers, Localcompanies

Thickening AnalyzersGrinding Flotation AutomationFiltering ServicesTailings management

1,100 grindingmills delivered,strong in S/Msize mills andprocesstechnology

10,000 flotationunits deliveredsince 1960s,bigcell technologyreferences,automation

1,800 thickenersdelivered, globalprojectexecutioncapability,feedwell design

Full analyserportfolio, lowestmin detectionlimits, only Xrayused

Uniquecombination ofautomation &analysers,important for riskmanagement

Full processand equipmentportfolio,effluenttreatment andbackfill plants

Prop equipmentand totalprocessknowhow,global servicenetwork

3,500 filtersdelivered, mostefficientconcentratefiltering, provenperformance

Competition fragmented, a number of players competing in part of the portfolio




Industry-leading technologies, process solutions and services

Metals, Energy & Water segment’s offering

Ferrous metals Sulfuric acid/Off-gas/Roasting

Fives, FLSmidth,Metso,Aqseptence-Diemme

Kobelco, Metso,Primetals, Jemeco

SMS Siemag,Tenova, Jemeco

GEA Bischoff,MECS

Alumina,Aluminum Base metals (Cu, Ni,

Zn, Au, Ag, PGM)Ferroalloys

GlencoreTechnology, Tenova

Strong in CFBAluminiumCalcination andHOT TubeDigestion

Over 60% of theworld’s pellets aremade withOutotec’stravelling gratetechnology

650 acid plantsand 270 non-ferrous roastingplants

Strong in Cusmelting, anodecasting, SX and Znleaching, strong inNi smelting andEW

Energy Water

Alumina calciner,Green anode plants,

Rod Shop

Sintering, Pelletizing,Direct Smelting

Sulfuric acid plant,Roasting

Smelting, Converting,Leaching, SX/EW,

electrorefining

Smelting,Preheating, Steel

Belt Sintering

Waste-to-energy,Sludge incineration

Industrial watertreatment, municipal

water systems

Competition fragmented, a number of players competing in part of the portfolio

Services

Advisory, maintenance,operations & remoteservices, upgrades

Valmet, Andritz,Babcock&Wilcox

Veolia, GE Water,Suez

FLSmidth, Metso,major tech suppliers,locals and customers

Strong in FerroChrome, 20pelletizing andsinter plants and9 smelters forferroalloys

Versatile waste-to-energysolution, over250 materialsused

Effluenttreatment plants,backfill plants,water recycling

Shutdownservices, bestsuited to provideservices for owntechnologies


The best ROI with least ecological impact

With Outotec’s tailored solutions andservices our customers will get:• Performance guarantees• Optimized processes• Fast and reliable ramp-up• High material recovery• Efficient use of raw materials,

energy and water• Low lifetime operating cost



Long-term customer relationships


In history, top ten customers have accounted for some 35% of sales.

Major global mining companies Local mining and metallurgicalcompanies in emerging regionsIntermediate sized companies

Selected reference customers of Outotec


26343545

Offering industry’s most sustainable processing technologies


5,870

2015

5,469

2014

5,067

2013

5,400

2016

Our handprint is bigger than our footprintThousands of tons of CO2-equivalent

Footprint: Outotec’s greenhouse gas emissions

Handprint: Greenhouse gas emissions avoidedthrough use of Outotec’s technologies

The 90thmost

sustainablecompany in the

world (2017)

EnvironmentalGoods and

Services equals

to 90% oforders (2014-16)


Q1 2017 financial information



MEW’sprofitability weak,

cost savingscontinue

Goodperformance in

MP

Improved orderintake:

equipment,plant and serviceorders increased

Fixed costsavings andhigher sales

improvedprofitability

Low level ofadvance

payments andmature order

backlog impactedcash flow

Q1 in a nutshell



Seasonality in MP orders, MEW showing signs of recovery


MEUR MEUR


Improved order intake YoY, book to bill rate above one


MEUR

RoughlyMEUR 680 to bedelivered in 2017

MEUR 1,051,

some 21%

services

Iranian projectsnot in backlog:

MEUR 192 (220)


Sales reflecting increased equipment orders in 2016


MEUR Q12017

Q12016

Change,%

Incomparable

currenciesSales 268 240 12% 7%Service sales 99 114 -13% -18%Share of services in sales, % 37 48Gross margin, % 23 24Adjusted EBIT* 1 -5Adjusted EBIT*, % 0 -2- Restructuring and acquisition-related costs -0 -6- PPA amortization -2 -2EBIT -1 -12EBIT, % -0 -5Result for the period -3 -12Unrealized and realized gains related to valuationof FX forward agreements 2 1* Excl. restructuring and acquisition-related costs and PPA amortizations.


Minerals Processing - further improved performance


Sales and adjusted EBIT development, quarter

• Equipment orders increased, orderintake up 40%

• Sales increased 36%• Profitability improved

Minerals ProcessingMEUR

Q12017

Q12016

Change,%

In compcurrency, %

Order intake 146 104 40 35

Sales 153 113 36 31

Service sales 68 64 6 -0

Adjusted EBIT*) 11 5

Adjusted EBIT*), % 7 4

Unrealized and realizedgains/losses related to valuationof FX forward agreements -0 2

* Excl. restructuring and acquisition-related costs and PPA amortizations

MEUR


Metals, Energy & Water – order intake improved but resultstill negative• 161% increase in order intake• Sales declined 10% due to low opening order

backlog• Profitability weak, savings actions continue


Metals, Energy & WaterMEUR

Q12017

Q12016

Change,%

In compcurrency, %

Order intake 172 66 161 160

Sales 114 127 -10 -12

Service sales 30 50 -39 -40

Adjusted EBIT*) -9 -9

Adjusted EBIT*), % -8 -7

Unrealized and realizedgains/losses related to valuationof FX forward agreements 3 -1* Excl. restructuring and acquisition-related costs and PPA amortizations

Sales and adjusted EBIT development, quarter

MEUR


Mature order backlog, timing, and low level of advancepayments impacted cash flow


MEUR Q12017

Q12016

Result for the period -3 -12Adjustments- Depreciation & amortization 10 10- Other adjustments 3 7Change in working capital -42 -37Interest -1 0Taxes -2 -2NET CASH FROM OPERATING ACTIVITIES -34 -34NET CASH USED IN INVESTING ACTIVITIES (incl. Capex and acquisitions) -4 -3Repayments & borrowings of non-current debt -0 -60Hybrid bond - 150Interest paid on hybrid bond -11 -Other financing activities 11 -0

NET CASH FROM FINANCING ACTIVITIES -1 90NET CHANGE IN CASH AND CASH EQUIVALENTS -39 53Foreign exchange rate effect on cash and cash equivalents 2 -2Cash and cash equivalents at March 31 195 352


Liquidity and equity remained solid


Q12017

Q12016

Net interest-bearing debt*, MEUR 44 -69

Gearing*, % 9 -13

Equity-to-assets ratio*, % 39 41

Return on investment, %, LTM -8 -2

Return on equity, %, LTM -12 -6

Working capital at the end of the period, MEUR 18 -58

Advances received, MEUR 178 229

Equity, MEUR 490 538

Balance sheet total, MEUR 1,422 1,556* If the hybrid bond were treated as a liability the net interest-bearing debt MEUR 194.1, gearing 57.1% and equity-to-assetsratio would be 27.4% (March 31, 2016: MEUR 80.5, 20.7% and 29.3% respectively).


Market outlook


MEW technologyportfolio providesopportunities in a

number of endmarkets

Gold and copperprojects most

active, improvedactivity also in

other base metalsprojects

MP opportunities inprocess

improvements,smaller equipment

deliveries andservices

Timing of largeorders remains

difficult to foresee


Reiterated guidance: The guidance for 2017 is based onthe current order backlog and market outlook, as well asachieved cost savings


From backlog~MEUR 680, or 65%

From new orders~MEUR 100 – 200+=2017 expected sales

~ MEUR 1,050 – 1,150

Adjusted EBIT*

is expected to be approximately 3-5%* Excluding restructuring and acquisition-related costs as well as purchase price allocation amortizations.

Q1 salesMEUR 268 +


Our focus areas for 2017 - towards profitable growth!


• Continue to win orders in a competitivemarket

• Continue cost savings to reach stability inthe Metals, Energy & Water

• Strong focus on service business, newServices business unit since April 1

• Improve competitiveness of products

• Strengthen customer centricity

• Strategy workStability

Profitability

Growth

Documents

Sustainable use of Earth’s natural resources...cell technology references, automation 1,800 thickeners delivered, global project execution capability, feedwell design Full analyser