Mining and Construction
General presentation 2012
© Metso
• We are committed to taking personal
responsibility for our own safety and
for the safety of others, and we
believe that all injuries and incidents
can be prevented
• We always emphasize our high HSE
standards of conduct when dealing
with customers, suppliers and other
stakeholders
• Compliance with applicable laws and
regulations is a minimum
requirement
• We aspire to minimize our
environmental footprint throughout
the whole value chain
Metso Mining and Construction 2012 2
HSE (Health, Safety and Environment) is an
essential element in all Metso’s activities
© Metso 3
Metso is a global supplier of sustainable
technology and services
• Our customers operate in
the following industries:
- Mining
- Construction
- Power generation
- Oil and gas
- Recycling
- Pulp and paper
• About 28,500 employees in more
than 50 countries.
• 2010 net sales EUR 5.6 billion.
• Our shares are listed on NASDAQ
OMX Helsinki Ltd.
Metso Mining and Construction 2012
© Metso 4
Metso’s personnel by area
About 28,500 employees
Strong global presence
Finland
Other Nordic countries
Other European countries
North America
South and Central America
Asia-Pacific
Africa and Middle
East
Metso Mining and Construction 2012
31%
10%
15%
12%
11%
16%
5%
© Metso
0
20
40
60
80
100
2009 2010
5
Net sales by segment
Net sales 2010 EUR 5.6 billion
Metso has three segments
36%
21%
36%
7%
Mining and Construction Technology
Energy and Environmental Technology
Paper and Fiber Technology
Group Head Office and others
Mining and Construction Technology
Energy and Environmental Technology
Paper and Fiber Technology
Metso Mining and Construction 2012
Personnel by segment
About 28,500 employees
© Metso
Extensive offering to process industry
Metso Mining and Construction 2012 6
Oil and gas industry
• Automation and flow control
solutions
Pulp and paper industry
• Process solutions, machinery
and services for production of
pulp, paper, tissue and board,
including energy, and chemical
recovery solutions
• Process automation and flow
control solutions
Mining industry
• Mining and minerals processing
equipment and systems; wear
and spare parts and service
solutions
Construction industry
• Aggregates processing
equipment and systems; wear
and spare parts and service
solutions
Power generation
• Process solutions, machinery and
services for energy production
from solid and liquid fuels
• Process automation and flow
control solutions
Mining and
Construction
© Metso
This is METSO MAC
8
Valmet
Rauma
1750 Shipyard in Viapori Fortress
1942 Rauma-Raahe
1951 Repola-Viipuri
1895 Ateliers Bergeaud
1886 Nordberg Manufacturing
1865 Karlstad foundry
1868 Sunds Bruk
1951 Valtion Metallitehtaat › Valmet
1946 Valtion Metallitehtaat
1987 Bergeaud
1982 Neles
1970 Lokomo
1989 Timberjack
1995 Rauma Oy listed on the Helsinki and New York Stock Exchanges
1991 Repola
1988 Jamesbury, Sunds Defibrator
1988 Valmet listed on the Helsinki Stock Exchange
1987 Valmet Paper Machinery Inc.
1968 Uusikaupunki car manufacturing
1.7.1999 The Merger of Rauma and Valmet
1996 Valmet listed on the New York Stock Exchanges
1992 Tampella Papertech
1999 W.S.Tyler, Helser Division, Santasalo - JOT Gears, Kvarner panel systems GmbH
1999 Timberjack,
Scan-Auto, Sako
2000 Beloit’s roll cover division, Stonel Corporation, Max Control Systems, Santasalo Powdermet
2000 Saab-Auto
Valmet-Fisher-Rosemount
2001 Svedala, Valvcon Corporation, Pulpexpert Oy, Valmet-Raisio
2001 Svedala Crushing and Screening Operations, Svedala Grinding Mill Operations, Svedala Hodge Foundry
2002 Interconsult Ab, Metso Works
2002 Scandinavian Mill Services
2003 CPS Elektroniikka, Metso Hydraulics, Network Mgm Systems
2004 Reedrill, Converting Equipment Group Dynapac
2005 Metso Drives
2005 Texas Shredder
2006 Aker Kvaerner Pulping and Power
© Metso
Mining and Construction Technology Historical dates
9
Major events
• Nordberg renamed Metso Minerals
• Metso acquires Svedala
• Nordberg and Svedala form a new Metso Minerals
• Structure renewed and Metso Minerals renamed Mining and Construction Technology
• Acquisitions in 2008: Lachine Main Plant, G&F Beltline, Banzo
Founding of
• Lokomo (Finland)
• Faco (Brazil)
• Skega (Sweden)
• Barmac (New Zealand)
Major acquisitions
• Rauma acquires
- Lokomo, Bergeaud and Nordberg
• Svedala acquires
- Allis Chalmers, Skega, Faco and Trellex among others.
• Rauma and Valmet form Metso Corporation
Founding of
• Allis Chalmers (USA)
• Nordberg Manufacturing Co. (USA)
• Bergeaud (France)
19th century 20th century 21st century
1900 2000
Metso’s Mining and Construction Technology 2011
© Metso
70%
30%
Net sales in 1-9/2011
EUR 1,902 million
Mining and Construction
• Long and deep exposure to the fast growing industry
• Strong position in the crushing and screening niche of
the construction industry
• Extensive global footprint with local service support,
and supply of equipment and systems
• Long history of building manufacturing capability and
service business in emerging markets
• Long and deep commitment to supporting our
installed equipment base in North America and
Europe
Mining
Construction
Services as a %
of net sales 53%
Overview
Appr. 11,000
employees
10 Metso Mining and Construction 2012
© Metso
Our people and locations
Mining and Construction location
Research and Technology Centers
Distribution Centers
Mining and Construction manufacturing plants
South and Central America
2,773 (25%)
North America
1,642 (15% )
Europe
3,643 (33%)
Asia-Pacific
1,815 (17%)
Africa and Middle East
1,089 (10%)
Brazil Pacific
Rim
Mexico
North
America
South
Africa
India
China
Australia
Northern
Europe
Southern
Europe
Russia
& CIS
Turkey
Mining and Construction
services HUB
11 Metso Mining and Construction 2012
© Metso
Strong position in the global markets
12 Metso Mining and Construction 2012
• Market size
- Total global market: EUR 83 billion
- Market for current offering:
EUR 8 billion
• Market share 10%
• Market position
- Crushing and screening # 1-2
- A strong position in selected niches
Construction
• Market size
- Total global market: EUR 106 billion
- Market for current offering:
EUR 11 billion
• Market share 15%
• Market position
- Grinding mills # 1
- Mining crushers # 1
Mining
© Metso
Strong local presence in the emerging markets Expand and strengthen our position
• Leader in high-end crushing market, success in grinding and bulk material
handling
• Develop organization, supply chain and distribution, increase construction
market share
• Leader in crushing and screening and in iron ore beneficiation
• Proven results of mid-market solutions, Metso Park
• Strengthen services organization
• The leading Western equipment provider
• Improve project capabilities, sales and services coverage
• Strong and stable position
• Opportunities in new infrastructure projects
Brazil
Russia
India
China
13 Metso Mining and Construction 2012
Mining
© Metso
We concentrate on integrated
solutions which help our customers
to fulfill their environmental
responsibilities
15
Our solutions:
• Engineering, process design,
optimization and automation
• Optimized spare and wear parts
throughout plant life cycle
• Services
The right equipment for the job:
• Grinding mills, crushers, screens
and conveyors
• Separation equipment
• Slurry-handling equipment
• Pyro processing solutions
• Bulk materials handling equipment
• Wear products and mill linings
Metso’s scope in mining We support our customers all the way from mine to port
Metso Mining and Construction 2012
© Metso
Some of our key customers and delivery types
Customer groups
• Mines and mineral processing plants
• Engineering houses
• Energy and metal industry
Typical deliveries
• Complete grinding circuits with installation and
commissioning services. Leading provider of
semiautogenous and autogenous grinding mills and
Vertimills
• Crushers as a system delivery (cone, jaw, primary
crushers)
• Pyro processing solutions such as rotary or grate kilns
and iron ore pelletizing plants
• Rotary railcar dumpers and overland conveying systems
• Process optimization services
• Complete service contracts over several years including
site staff and parts supply
Mining
16 Metso Mining and Construction 2012
Major references
© Metso
Examples of mining products
Metso Mining and Construction 2012 17
Proven mining crushers and screens for long life in challenging applications.
World's most comprehensive range of grinding techniques.
Reliable pumps for demanding minerals processing.
Tailored pyro processing solutions.
Services to achieve the optimum performance on a sustainable basis.
Construction
© Metso
High quality processes which help our
customers to fulfill their environmental
responsibilities
Our solutions:
• Plant engineering
• Process optimization
• Maintenance
• Repairs and inspections
• Customer training
• Services
The right equipment:
• Jaw, cone and impact crushers
• Feeders, screens and scalpers
• Conveyors
• Mobile screens
• Complete plants
• Wear products and spare parts
Metso’s scope in construction Our solutions cover the entire aggregates production process
19 Metso Mining and Construction 2012
© Metso
Some of our key customers and delivery types
Customer groups
• Quarries
• Contract crushing operations
Typical deliveries
• Mobile crushing and screening plants for a multi-stage
rock processing system
• Complete quarry systems
• Unit crushers, screens and conveyors
• Performance-based services agreements including
process simulation and optimization services
• Customer training packages
• Preventive and predictive maintenance services
Customer groups
Major
20 Metso Mining and Construction 2012
Major references
© Metso
Examples of construction products
Metso Mining and Construction 2012 21
Primary, secondary, tertiary and fine crushers for every application.
Screens, feeders and scalpers for accurate end product classification.
Reliable conveyors for materials transportation.
Mobile equipment for efficient and environment-friendly operation.
Complete, stationary installations for aggregates production in big volumes.
Services
© Metso
Our services portfolio
• Better process performance
• Improved productivity
• Maximum plant availability and
reduced downtime
• Reliable equipment performance
• Effective preventive maintenance
• Improved safety
23
Training Spare and
wear
contracts
Technical
expertise
support
Equipmen
t rebuild/
replace-
ments
Field
services
Plant
diagnos-
tics and
upgrades
Process
techno-
logy
Auto-
mation
solutions
Preventive
mainte-
nance
agreement
s
Perfor-
mance
contracts
Metso Mining and Construction 2012
© Metso
Improving your business by keeping your equipment and process running
Metso Mining and Construction 2012
In addition to contract-based services,
we offer five different service levels within
Metso Performance Solutions
• Standard Identifying critical spare and wear parts
• Advanced Process analysis for operational excellence
• Superior Integrated services and technological
solutions
• Prime Maximizing process plant’s potential and
efficiency
• Equipment Protection Plan Repairing or replacing components
included in service agreement over 5
years or 10,000 operating hours
24
© Metso
Engaging our customers
25
Selected life-cycle services
Boliden – Sweden - Mills maintenance
- 5-50 employees
- 2.5 years
LKAB – Sweden - Mill lining replacement & general
maintenance
- 3-5 employees
- 3 years
Alrosa – Russia - Pumps Maintenance
- 6 employees
- 1 year (since 2006)
Lafarge – France - Crushing and screening
inspection services
- 3 years
Anglo – Ghana - Maintenance supervision
- 6 employees
- 3 years: 5.4 M EUR
Aquarius – South Africa - Crusher liners replacement
- 1-4 employees
- 1 year
Freeport – Indonesia - Screens maintenance
- 16 employees
- Since 2004
Barrick – Australia - Maintenance of primary
crushing equipment
- Since 2006
BHP – Australia - Primary crushing
maintenance
- 3 years
South West Mining – India - Mobile plant maintenance
- 3 years
Consolidated Thompson – Canada - Primary crusher liners replacement
- 1-12 employees
- 3 years
Peñoles – Mexico - Mills inspection
- 12 employees
- 5 years
Northland – Sweden - Mill lining replacement
- 3 employees
- 20 M EUR
MDC – Mexico - Crusher liners replacement
- 3-12 employees
- 1 year (since 2006)
BHP – Chile - Crushing & screening
equipment full maintenance
- 156 employees
- 5 years
Buenavista – Mexico - Maintenance of crushing &
grinding equipment
- 80 employees
- 1 year (since 2009)
Chile - Maintenance of crushing, screening,
grinding & flotation equipment
- 112-131 employees
- 5 years
Lafarge – Brazil - Maintenance of crushing &
screening equipment
- 12-16 employees
- 2 years. Cost/ton
Southern Europe - 350 Crusher
Inspection contracts
Vale – Brazil - Mobile plant maintenance
& operation
- 14 employees
- 4 years
RCC – Russia - Plant maintenance &
operation
- 150 employees
- 6 years: 130 M EUR
Vale – Brazil - Screens repair
- 26 employees
- 3 years
Metso Mining and Construction 2012
Strategy review
© Metso
Our vision, mission and values
Our values What values guide our daily
operations?
• Driving customer success
• Seeking innovations
• Performing together
• Respecting each other
Our mission Why do we exist?
We contribute to a more
sustainable world by helping
our customers to process
natural resources and recycle
materials into valuable
products.
Our vision What is our goal?
Working as One to be
Number One
Our customer promise is Expect results
27
© Metso
Metso capitalizes on megatrends
We have identified the megatrends relevant for our business years
ago, and have subsequently invested in platforms to support
capitalizing on these trends
Metso Mining and Construction 2012 28
© Metso
Mining and Construction strategy themes Expand and strengthen current position
29
Mining
• Utilize the market boom to full extent
• Resource expansion and competency
centers in the growth markets
• Explore acquisition opportunities
• Continue to expand services offering and
develop global service hubs
Becoming a leading global mining
technology and services provider
Expanding our scope of offering to gain market share particularly in the growth countries
Mining and Construction
• Grow process technology capacity
• Recruit and retain personnel
• Win against emerging market competitors
Becoming a leading global mining technology and services provider
Focus on being a full solution provider
Construction
• Expand and strengthen our current
position in crushing and screening niche
• Explore possibilities to enter into
complementary product areas
Metso Mining and Construction 2012
© Metso
Reaching our ambition with must-wins
30
Five group level must-wins and selected business focused must-wins to enable best
possible value creation
Attain growth in services market share and
profitability locally by leveraging installed base
Reinforce local presence and growth mainly in the BRICs
or other identified business relevant growth countries
Maintain technology leadership with cost efficient and
sustainable solutions and develop fit-for-purpose products
Speed up business development and strengthen area
organizations to support growth in services and capital
Services
Growth
countries
Technology
Operating
model
1
2
3
4
5
CU
ST
OM
ER
& M
AR
KE
T
FA
CIN
G
EN
AB
LIN
G
Develop a working environment that enables our people to
succeed
People
Metso Mining and Construction 2012
Financial
performance
© Metso
EBITA target of 10-15%
Net sales and EBITA %*
Mining and Construction
32
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
0
500
1.000
1.500
2.000
2.500
3.000 1
2/0
7
03
/08
06/0
8
09
/08
12
/08
03
/09
06
/09
09
/09
12
/09
03
/10
06
/10
09
/10
12
/10
03
/11
06
/11
09
/11
% EUR million
Services Capital equipment EBITA-% bef. NRE
* before NRE, rolling 12 months
Metso Mining and Construction 2012
© Metso
Orders received Mining and Construction
33 Metso Mining and Construction 2012
26 %
13 %
28 %
24 %
9 %
Orders received by area1-12/10
Europe
North America
South and Central America
Asia-Pacific
Africa and Middle East
© Metso
Net sales Mining and Construction Technology
34 Metso Mining and Construction 2012
24 %
16 %
25 %
25 %
10 %
Net sales by area 1-12/10
Europe
North America
South and Central America
Asia-Pacific
Africa and Middle East
© Metso
Personnel Mining and Construction
35 Metso Mining and Construction 2012
33 %
15 %26 %
15 %
11 %
Personnel by area 31.12.10
Europe
North America
South and Central America
Asia-Pacific
Africa and Middle East
© Metso 36 Metso Mining and Construction 2012
About Ozdogu
Ozdogu-Havran Project
Ozdogu bought the Copper-Molybdenum
mining site located at the Balıkesir Province
Tepeoba village region. At 1439 Hectare Mining
Area with %1 equal value Cu (Copper) as 17,5
million m3 Molybdenum-Copper ore is present.
During 1 year preparation and 12 years of
production capacity and as a total of 13 years of
Project lifetime 17,5 million m3 ore will be
produced and processed in concentration
processes and finally it will be sold as Mo-Cu
concentrate to the market.
© Metso 37 Metso Mining and Construction 2012
General Information
The full crushing and screening plant has
350tph capacity and consists of;
AF504
VG645-3V
C145
CVB2060-3P
GP550
HP5
MF3073-2
Ozdogu-Havran Project (MAC00084-MAC00257)
© Metso 38 Metso Mining and Construction 2012
Ozdogu-Havran Project
General Information
The full flotation plant has 300tph capacity and
consists of;
RCS50 (6pcs) Mechanisms
RCS6 (6pcs) Mechanisms
RCS0.8 (22pcs) Mechanisms
Flotation Cells (Locally manufactured)
Metso Cisa Columns (3pcs)
VisioFroth (6cams)
Slurry Pumps (62pcs)
© Metso 39 Metso Mining and Construction 2012
ERDEMIR PROJECT
Erdemir is located in Divrigi, Sivas. Divrigi is
located 180 km far away from Sivas and railway
line is passing through. Company ownes the 80%
of the proven iron ore reserves of Turkey and
performing 50% of the iron ore production.
Erdemir Maden is also the sole pellet producer in
Turkey for raw material demand in sector.
Concentrated ore, limonite, hematite, lump ore,
enriched hematite, fine ore, pellet cake,
manganese are produced at the facilities.
About Erdemir
© Metso 40 Metso Mining and Construction 2012
ERDEMIR PROJECT
General Information
0-1000mm, 700tph Iron Ore Crushing Plant
VF661
C145
EME77
Rock Breaker MTB550
Steel Structures
Electricity&Automation
Engineering, Project Management,
Supervision
© Metso 41 Metso Mining and Construction 2012
YILDIZLAR-MIDI PROJECT
General Information
750tph Pb-Zn Crushing Plant:
HRBM6015
VG645-3V
C145
FS353
GP500S
RF3000x7300 DD
RF3000x7300 DD
HP500
HP500
© Metso 42 Metso Mining and Construction 2012
YILDIZLAR-MIDI PROJECT
General Information
Pb-Zn Crushing Flotation Plant
2 sets of;
RCS20 (16pcs) Mechanisms
RCS5 (6pcs) Mechanisms
RCS10 (6pcs) Mechanisms
2 sets of;
Slurry Pumps (28pcs)