© Metso

Forward looking statements

It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding

expectations for general economic development and the market situation, expectations for customer industry profitability and

investment willingness, expectations for company growth, development and profitability and the realization of synergy

benefits and cost savings, and statements preceded by ”expects”, ”estimates”, ”forecasts” or similar expressions, are

forward looking statements. These statements are based on current decisions and plans and currently known factors. They

involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by

the company.

Such factors include, but are not limited to:

1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating

environment and profitability of customers and thereby the orders received by the company and their margins

2) the competitive situation, especially significant technological solutions developed by competitors

3) the company’s own operating conditions, such as the success of production, product development and project

management and their continuous development and improvement

4) the success of pending and future acquisitions and restructuring.

2

© Metso

50

100

150

200

250

300

350

400

0

2

4

6

8

10

12

14

Lost time incident frequency (LTIF)

Total number of lost time incidents

* LTIF December 2016

Safety is an important driver for successImproved safety performance supports productivity

2016 achievements

• Safety conversations by managers rolled

out corporate wide

• Stronger focus on corrective actions on risk

observations, audit findings, and accidents

• Improved work methods for critical tasks

2017 focus areas

• Extending safety leadership training

• Increasing effectiveness of corrective

actions through improved root cause

analysis

• Monthly inspection program for newly

identified hazards

LTIF

2.4 *

Demand from customers: license to operate

Safety is included in employees’ target setting

3

© Metso

2016 in brief

• Challenging mining and oil & gas markets

• Internally good progress in organic growth and development actions

• Restructuring continued to adapt to the market situation

• Orders exceeded sales

• Profitability declined due to lower sales

• Strong cash flow generation

• Balance sheet strengthened

• Board proposes a dividend of EUR 1.05 (1.05)

Figures in brackets refer to the corresponding period in 2015, unless otherwise stated.

Orders received:

EUR 672 million, -11%

Sales:

EUR 676 million, -10%

Adjusted EBITA margin:

9.4% (12.0%)

Orders received:

EUR 2,724 million, -8%

Sales:

EUR 2,586 million, -12%

Adjusted EBITA margin:

10.6% (12.2%)

Net gearing:

-1.8% (10.6%)

Fourth quarter 2016

Full year 2016

4

© Metso

Strategic achievements in 2016

New Minerals business model was implemented

Standardization and process harmonization was executed

Procurement efficiency was improved and planned actions were achieved

Distribution channels were developed and market was expanded

New products were launched (MHC™ Hydrocyclones, UltraFine™ Screens, Life Cycle Services (LCS) package for the

aggregates industry, N Series recycling equipment product range, Metso Metrics, NelesValvGuard, MD Series mill discharge pump)

Successor planning and competence mapping progressed

5

Digitalization: As part of our offering and in our business models

© Metso

• Mining (orders -11%):- Services +1%, thanks to wears and spares- No large equipment orders- Underlying demand for smaller equipment orders

picked up slightly

• Aggregates (orders +20%):- Overall demand clearly improved - Equipment +37%- Services flat

• Flow Control (orders -21%):- Sequentially flat orders - Valve orders declined in oil & gas y-o-y- Pump orders flat y-o-y

Markets in Q4/16Orders received totaled EUR 672 million, -11%

343

241

9875

346

190

95

42

0

50

100

150

200

250

300

350

400

450

500

MineralsServices

Minerals Capital Flow ControlServices

Flow ControlCapital

Q4/2015 Q4/2016

+1%

-21%

-3%

-44%

EUR million

6

© Metso

Financial highlights in Q4/16

• Sales development- Minerals declined 9% due to mining- Flow Control declined 14% due to oil & gas

• Healthy services margins

• The lower adjusted EBITA resulted from- lower volumes, - project cost overruns and warranty costs in Minerals

and- non-operative items in the Group head office

• Operating profit was negatively impacted by restructuring costs

Adjusted EBITA margin 2016: 10.6%

7

721758

672

921754

676

13.0

12.0

9.4

0

2

4

6

8

10

12

14

0

200

400

600

800

1,000

1,200

1,400

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

Orders received Sales Adjusted EBITA %

EUR million %

© Metso * Board’s proposal for the AGM

** EUR 0.40 additional dividend was paid in August 2015

Board’s dividend proposal EUR 1.05

• The proposed dividend totals EUR 157 million

• 121% of earnings per share for 2017

8

1.00 1.05 1.05 1.05

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2013 2014 2015 ** 2016 *

EUR

EPS (Earnings per share) DPS (Dividend per share)

Eeva Sipilä

CFO

Financial performance

© Metso

Minerals quarterly performance

• Aggregates and recycling sales stabilized

• Mining sales declined still

• Profitability weakened due to- lower volumes and- project cost overruns and warranty costs of

EUR 6 million.

• Operating profit negatively impacted by EUR 13 million restructuring costs

Adjusted EBITA margin 2016: 9.7%

544585

536

743

574522

13.5

12.1

9.1

0

2

4

6

8

10

12

14

16

0

100

200

300

400

500

600

700

800

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

EUR million

Minerals orders received Minerals sales

Minerals adjusted EBITA %

%

10

© Metso

Flow Control quarterly performance

• Sales declined due to lower deliveries to oil & gas and pulp & paper customers

• Adjusted EBITA and adjusted EBITA margin increased

• No notable restructuring costs booked for the quarter

Adjusted EBITA margin 2016: 15.1%

178

173

136

173 180155

14.213.1

16.6

0

5

10

15

20

25

0

50

100

150

200

250

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

EUR million

Flow Control orders received Flow Control salesFlow Control adjusted EBITA %

%

11

© Metso

Volume decline biggest driver in profitability

Note: Graph is illustrative: Volume, margin and SG&A changes have been calculated with constant currencies.

Currency impact is included in ’FX rates & Others’.

356274

0

50

100

150

200

250

300

350

400

FY 2015 adjusted EBITA Volume Margin SG&A FX rates & Others FY 2016 adjusted EBITA

EUR million

12

© Metso

211

252 240261

222 235 224 220

176196

181 184

27.9 28.430.0

28.330.3 31.2

32.9

29.2 29.2 29.2 28.4 27.2

0

5

10

15

20

25

30

35

0

50

100

150

200

250

300

350

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

Gross profit Gross margin

EUR million %

139151 142

167147 147

126150

126 130 125135

18.417.0 17.7 18.1

20.1 19.4 18.619.8

20.919.4 19.6 20.0

0

5

10

15

20

25

0

50

100

150

200

250

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

EUR million

SGA SGA %

%

Q4 gross margin affected by adjustments and Minerals’ overruns and warranties

• Achieved procurement savings the key positive contributor but

- high restructuring spend and cost overruns and warranty

costs in Minerals had negative impact in the gross margin

• COGS headcount reduced by 700 persons in 2016

• Efficiency measures reduced SG&A headcount

by 380 persons in 2016

• No significant credit losses

13

© Metso

Healthy cash flow and solid financial position

EUR million Q4/2016 Q4/2015 Change % 2016 2015 Change %

Operating profit 44 67 -34 227 555* -59

Earnings per share, EUR 0.17 0.35 -53 0.87 2.95* -71

Free cash flow 97 59 64 339 341 -1

* Including capital gain from divestment of PAS

Dec 31, 2016 Dec 31, 2015

Return on equity (ROE), % 9.0 33.1*

Return on capital employed (ROCE) before taxes, % 10.4 25.7*

Gearing at the end of the period, % -1.8 10.6

Cash conversion, % 261 180

Equity to assets ratio at the end of the period, % 48.0 48.3

14

© Metso

784 752 715 726 728 709 709

577486 482 450 476 459 464

-313 -279 -249 -234 -255 -241 -274

-157 -155 -128 -133 -152 -173 -174

-246-212 -222 -200 -209 -204 -238

645592 598 609 588 550

487

-1,000

-500

0

500

1,000

1,500

Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

EUR million

Net working capital and capital employed

Net working capital

Cash

Intangible assets

Tangible assets

Other

Net working capital

Inventories

Trade payables

Advances + POC

Other

Trade receivables

• Net working capital declined • Tangible assets 10% lower y-o-y

645 592 598 609 588 550 487

542537 590 626

511 620 698

557552

550 542

541537 538

373345

343 330

331310 315

206160

186 185193 180 195

2,3232,186

2,267 2,2922,164 2,197 2,233

0

500

1,000

1,500

2,000

2,500

Q2 Q3 Q4 Q1 Q2 Q3 Q4

2015 2016

EUR Million

15

Matti Kähkönen

President and CEO

Outlook and backlog

© Metso

1,780 1,735 1,672

1,402 1,445 1,4111,290 1,268 1,300

1,3991,305 1,320

0

500

1,000

1,500

2,000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2014 2015 2016

EUR Million

Order backlog

Flow ControlMinerals, services

• Our backlog for 2017 totaled approximately EUR 1.2 billion

• Market uncertainties causing some delays in deliveries

Minerals, capital

Deliveries in 2017

Deliveries after 2017

Deliveries in 2016

Deliveries after 2016

0

200

400

600

800

1,000

1,200

1,400

Order backlog Dec 31, 2015 Order backlog Dec 31, 2016

EUR million

17

© Metso

25% of net sales of which 60% services*

• Some positive signs seen in the oil & gas market in the beginning of 2017

*Based on sales in 2016

Short-term market outlook for 2017

45% of net sales of which 80% services*

• Activity in engineered services is soft and miners’ cost actions continue

• Order pipeline consists of small and midsize orders

25% of net sales of which 45% services*

• The Nordics, US and India remain positive

Mining Aggregates Flow Control

weak satisfactory good good satisfactory satisfactory

Equipment Equipment Equipment ServicesServicesServices

Previously:

satisfactory

Previously:

satisfactory

18

© Metso

Outlook for 2017

Metso’s overall trading conditions are expected to be slightly better compared to 2016. Demand for our products and

services is expected to develop as follows:

• Remain weak for mining equipment and satisfactory for mining services,

• Improve to good for aggregates equipment and services (previously: satisfactory both for equipment and services)

• Remain satisfactory for Flow Control products related to customers’ new investments and satisfactory for Flow Control

services, with some positive signs seen in the oil & gas markets in the beginning of the year.

At the end of December 2016, our backlog for 2017 totaled approximately EUR 1.2 billion. In the current market conditions,

we continue to expect some postponements to planned delivery timetables.

Negative adjustment items from restructuring programs initiated in 2016 are expected to be EUR 10-15 million.

Capital expenditure excluding acquisitions is expected to increase compared to 2016 but remain below depreciation and

amortization.

19

© Metso

Save the date

Metso Capital Markets DayThursday, June 1, 2017 at Hilton Helsinki Airport

Programme to includePresentations from CEO and CFO

Business updates by business heads

Breakout sessions with topical teams including extensive Q&A

We will start with lunch and finish by 18:00 to allow fly in and out during the day

Mark the date in your calendars. Formal invitation will follow.

20

company/metso metsogroup metsoworldmetsoworld metsogroup

www.metso.com

Appendix

© Metso

Sales by market area

Sales in 2015

Sales in 2016

644569

0

200

400

600

800

NorthAmerica

EUR mill ion673 643

0

200

400

600

800

Europe

EUR mill ion

667608

0

200

400

600

800

Asia-Pasific

EUR mill ion

339246

0

200

400

600

800

Africa andMiddle East

EUR mill ion

598521

0

200

400

600

800

South andCentralAmerica

EUR mill ion

23

© Metso

Orders by market area

670 701

0

200

400

600

800

Europe

EUR mill ion

641556

0

200

400

600

800

NorthAmerica

EUR mill ion

607 580

0

200

400

600

800

South andCentralAmerica

EUR mill ion

278 264

0

200

400

600

800

Africa andMiddle East

EUR mill ion

767

622

0

200

400

600

800

Asia-Pasific

EUR mill ion

24

Orders in 2015

Orders in 2016

© Metso

Key figures

* Including capital gain on disposal of PAS-business

EUR million Q4/2016 Q4/2015 Change % 2016 2015 Change %

Orders received 672 758 -11 2,724 2,965 -8

Without currency effect -12 -6

Orders received, services business 442 441 0 1,741 1,879 -7

Without currency effect -1 -5

Sales 676 754 -10 2,586 2,923 -12

Without currency effect -11 -10

Sales, services business 442 481 -8 1,703 1,840 -7

Without currency effect -9 -5

Adjusted EBITA 64 91 -30 274 356 -23

% of net sales 9.4 12.0 10.6 12.2

Operating profit, EBIT 44 67 -34 227 555* -59

Earnings per share, EPS, EUR 0.17 0.35 -53 0.87 2.95* -71

Return on capital employed (ROCE), before

taxes, % 10.4 25.7*

Free cash flow 97 59 64 339 341 -1

25