© Outotec - All rights reserved Sustainable use of Earths natural resources CEO Pertti Korhonen SEB Enskilda Nordic Seminar January 10, 2012

© Outotec - All rights reserved

Sustainable use of Earth’s natural resources

CEO Pertti Korhonen

SEB Enskilda Nordic Seminar

January 10, 2012


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)

Outotec – expert in sustainable technology

20122

• 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)


Sales and operating profit development

0

2

4

6

8

10

12

0

200

400

600

800

1000

1200

1400

1600

2003 *) 2004 *) 2005 *) 2006 *) 2007 2008 2009 2010 2011eSales Operating profit Operating profit margin

EUR million Operating profit, %

*) Combined basis **) from operations, excl. one-time costs and PPAs

Guidance 2011Sales:

EUR 1.35-1.45bnEbit%:

approx. 8-9

**)


3

Over a century as a technology leader

2012

2012

2011

2010

2006

2001

1990

1970

1950

1900

Listing on the NASDAQ OMX Helsinki

LAROX

AUSMELT

VPF, ASH DEC, EPI, KILN SERVICES

MILLTEAM, EDMESTON

AUBURN (2008)

BOLIDEN CONTECH

OUTOKUMPU TECHNOLOGY

LURGI

METALLURGIE

OUTOKUMPU

GRINDING MILLS

KHD ALUMINIUM

AISCO, SUPAFLO

WENMEC


Year


Life cycle offerings delivered globally through four business areas

2012 SEB Enskilda Nordic Seminar4

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

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

providinglife cycle services

Non-ferrous Solutions Ferrous SolutionsEnergy, Light

Metals & Environmental Solutions

Services


5

Portfolio of the world’s best technologies covers the whole value chain from ore to metal

2012

Na

tura

l re

sou

rce

s (

ore

s, m

iner

als

, en

erg

y, w

ate

r)

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

ServicesExpert services, spare parts and maintenance, operation, modernization and expansion, life cycle service contracts

ChemicalsSulfuric acid production

EnergyCombustion and gasification, heat recovery, gas handling, bio energy, oil sand and oil shale processing

Water treatmentNeutralization, effluent treatment, drinking water



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.).



Long-term customer relationships with all the industry’s top companies

Large global mining companies (seniors)

Selected reference customers of Outotec

Small and medium sized companies (juniors)

Local mining and metallurgical companies in emerging

regions

The life-cycle customer approach aims at servicing its customers over the full life of a mining site / metallurgical plant

Repeat business

Outotec has a strong track record for delivering multiple technologies to single companies

Multiple technologies for single companies


Industry drivers


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.

2010 2011 2012 2013 2014 2015100

110

120

130

140

150

160

170

GDP (PPP) growth in BRIC and Emerging vs Advanced economies

China

India

Russia

Brazil

Emerging and develop-ing economies

Advanced economies

Source: IMF, Sept 2011

95

100

105

110

115

120

125

130

135

140

145

2010 2011 2012 2013 2014 2015

Demand growth for selected commodities 2010-15(2010=100)

Alumina Aluminium Copper Zinc

Nickel Gold Iron Ore S-Acid

DEMAND CAGR% 2010-15 Increase, Kt/a 2010 Production, MtAlumina, SGA 6.6 % 6 309 83.1Aluminium 7.0 % 3 289 41.2Copper 4.2 % 880 19.3Zinc 5.6 % 735 11.7Nickel 5.5 % 93 1.52Gold (10-14)* 2.0 % 66 2586Iron ore 4.9 % 112 800 2018Sulpuric acid 4.8 % 10 558 199*gold in tons

High GDP growth drives continuing growth of commodities demand in the range of 4 to 7% p.a.


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


Demand for sustainable technology increases


Em

issi

ons

Pea

k oi

lW

ater

Ene

rgy

Ore

gra

de 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.

Making metals requires a lot of energy and energy costs are constantly climbing. More energy-efficient processes are needed.

Water availability and pollution are critical issues. Advanced solutions for water cleaning, conservation and recycling are needed.

Peak oil is approaching. Oil is expected to run out by 2050 with current production rates, thus alternative sources are needed.

Mining and metallurgical industries are major emitters of CO2 and eco-toxic substances. Cleaner solutions must be developed.

The need for recycling is growing, thus requiring new technologies for turning scrap and waste into products.

Rec

yclin

g


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


Positive development of metal prices and demand have been the catalyst for new mine developments


Source: Raw Materials Data. Copyright: Raw Materials Group, 2011

Phase status Number of projects Examples of Outotec’s11/2011 2010 2009 offerings

Construction 230 190 84 Plant, process and solution deliveriesFeasibility 389 259 246 Piloting, bench scale testing, process designPrefeasibility 470 243 225 bench scale testing, process designConceptual 206 190 183 Laboratory services, process consept designs

Raw Materials Group mine map


Sustainable use of Earth’s natural resources

Applying core technologies in new

attractive growth areas

Increasing value through

life cycle solutionsImproving

productivity and scalability

Global integrated operations and local presence

Leadership in technology and innovation

The best return on a customer’s investment

Outotec’s strategy in a nutshell

Q1-Q3/2011 Company presentation14


Increasing value through life cycle solutions

Q1-Q3/201115 Company presentation

We strengthen our earnings logic by offering ore-to-metal total solutions and life

cycle services.

Outotec CAPEX solutions

Technology, equipment,

systems integration,

project delivery

Services

Proprietary

equipments

Project

delivery

System

integration

Technology

Spare parts Operation and

maintenanceUpgrades Maintenance

shutdown

Research and

analysis

Outotec service solutions

Outotec solution elements

Growing solution scope

Value

Maximizing life cycle profitability for Customer and Outotec

Va

lue

-ba

se

d p

ric

ing


Applying core technologies in attractive new growth areas

Q1-Q3/201116 Company presentation

• 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

Outotec uses proven technologies and core capabilities to create innovative

solutions to adjacent industries.


Q3 results in brief and delivering long-term financial targets



Strong order momentum in Q3

Outotec offices

Concentrator technology (gold) for the Petropavlovsk Group, Russia

€ 25 million

Aluminum smelter technology for Emirates Aluminium PJSC (EMAL), Abu Dhabi

over € 100 million

Copper concentrator for ZAO Miheevsky GOK, Russia

€ 60 million

Concentrator technology for Codelco, Chile

approx. € 24 million (half in Q2 and the rest in Q3)

Gas cleaning and sulfuric acid plant for OJSC Almalyk Mining & Metallurgical Company, Uzbekistan

approx. € 30 million

2 Calciners for Ma'aden Bauxite Aluminium Company, Saudi Arabia

€ 62 million (roughly € 50 million in Q3 order intake)

Iron ore pelletizing plant for Novolipetsk Metallurgisk Kombinat, Russia

€ 150 million

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 802.7 million (Q3/2010: EUR 269.1 million), +198% Orders from EMEA (including CIS) represented 52%, Americas 34% and Asia Pacific 14%

High Gradient Magnetic Separators (iron) for London Mining Plc, Sierra Leone

over € 10 million

Ferrochrome plant for Mintal Group Co. Ltd, China

value not disclosed



Record-high order intake in Q3 resulting in order backlog over EUR 2bn

Order backlog at the end of Q3/2011 was EUR 2,052.5 (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 millionQ

1/20

06

Q2/

2006

Q3/

2006

Q4/

2006

Q1/

2007

Q2/

2007

Q3/

2007

Q4/

2007

Q1/

2008

Q2/

2008

Q3/

2008

Q4/

2008

Q1/

2009

Q2/

2009

Q3/

2009

Q4/

2009

Q1/

2010

Q2/

2010

Q3/

2010

Q4/

2010

Q1/

2011

Q2/

2011

Q3/

2011

0

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2000

2200

186240

371

235168

493418 384

299

475

260

120 139 106202

111

419350

269357 344

532

803

Order backlog at the end of the period Order intake by quarterShare of unannounced orders

EUR million



Solid organic sales growth and improved profitability

EUR million Q1-Q3 2011

Q1-Q3 2010

Change%

Last 12 months 2010 Q3

2011Q3

2010Change

%

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 - +2.2 - -

+ Other - - +0.6 +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, % 7.5 6.4 8.2 7.7 9.7 11.5



Services – very strong organic growth

EUR million

2006

2007

2008

2009

2010

Q1-Q3/

2011

0

250

500

750

1000

1250

55.3 80.6141.2 148.6

282.5234.4

Service sales Outotec sales

Sales of the Service business in Q1-Q3 were EUR 234.4 million (Q1-Q3/2010: 182.0 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: 69.5 million, 30% of sales)

Long-term Services sales target: EUR 500 million by the end of 2015



Strong cash flow and further strengthened financial position

*) At the end of the period

EUR millionQ1-Q3

2011Q1-Q3

2010Last 12 months 2010

Q32011

Q32010

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 -356.7 -200.9 -356.7 -206.0

Equity*) 351.2 328.0 351.2 357.7 351.2 328.0

Equity-to assets ratio, %*) 39.3 41.9 39.3 41.2 39.3 41.9

Gearing, %*) -101.6 -62.8 -101.6 -56.2 -101.6 -62.8

Working capital*) -269.6 -141.3 -269.6 -113.5 -269.6 -141.3

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


2003 *) 2004 *) 2005 *) 2006 *) 2007 2008 2009 2010 2011E0

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1400

1600

0

2

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12

Sales Operating profit Operating profit margin

Improving EBIT margin towards long-term target of average 10%


Guidance 2011Sales: EUR 1.35-1.45bn

EBIT%: approx. 8-9

L-T targets:

Sales: 10-20% CAGR

EBIT%: avg 10%

Maintain strong balance sheet

Div policy: at least 40%

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.

EUR million Operating profit margin, %

*) Combined basis **) from operations, excl. one time costs and PPAs

**)

Financial Statements Review 2011 will be published on Thursday, February 9, 2012.


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-TTarget:

average 10%

Pricing pressures

Competition

Cost inflation

R&D investments

Selling and marketing

Administration

Services sales

Life cycle solutions

Pricing excellence

Supply savings

Engineering productivity

License fee incomes

Global resourcing

Scaling effect

_ +


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 2011. 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.


201226

Our mission:

Sustainable use of Earth's natural resources.


Documents

© Outotec - All rights reserved Sustainable use of Earths natural resources CEO Pertti Korhonen SEB Enskilda Nordic Seminar January 10, 2012