© Outotec – All rights reserved
Contents
AGM 2018 | CEO's review2
1. Safety2. Outotec today3. Highlights of 20174. Market situation5. Outotec’s opportunities and focus areas6. Outlook for 2018
© Outotec – All rights reserved
Safety performance
AGM 2018 | CEO's review3
0
1.7(2016: 1.8)
Fatal accidents
Lost-Time Injury Rateper million work hours incl. employees and subcontractors
Near misses
23(23)
Lost-time injuries
1,512(1,532)
0
13.4million work hours
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Contents
AGM 2018 | CEO's review4
1. Safety2. Outotec today3. Highlights of 20174. Market situation5. Outotec’s opportunities and focus areas6. Outlook for 2018
© Outotec – All rights reserved
Our business on the value chain from ore to metal
Superior technologies and customer service
Minerals processing for all ore types• Comminution• Flotation• Dewatering• Concentrator plants
Metals refining
• Pyro- and hydrometallurgy• Ferrous metals, ferroalloys• Light metals• Acid and off-gas treatment• Effluent treatment
Optimized lifecycle services and digital solutions
From ore body
To metal
AGM 2018 | CEO's review5
Exploration Development ExtractionMaterials handling Comminution Separation Refining
MetallurgyProcessing
OutotecOutotec
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Minerals Processing segment’s offeringA complete portfolio of leading process solutions and services with full plant delivery capability
Water Technology
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, SGS Minerals
DCS: Major DCS suppliers
FLSmidth, Golder, GR Engineering, AMC
Customers own maintenance, Major tech. suppliers, Local companies
Thickening AnalyzersGrinding Flotation AutomationFiltering ServicesTailings management
1,100 grinding mills delivered, strong in S/M size mills and process technology
10,000 flotation units delivered since 1960s,big cell technology references, automation
1,800 thickeners delivered, global project execution capability, feedwell design
Full analyser portfolio, lowest min detection limits
Unique combination of automation & analysers, important for risk management
Full process and equipment portfolio, effluent treatment and backfill plants
Prop equipment and total process knowhow, global service network
3,500 filters delivered, most efficient concentrate filtering, proven performance
Competition fragmented, a number of players competing in part of the portfolio
Outotec globally #1-3
AGM 2018 | CEO's review6
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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 CFB Aluminium Calcination and HOT Tube Digestion
Strong in traveling grate technology, some100 iron ore pelletizing and over 300 sintering plants
650 acid plants and 270 non-ferrous roasting plants. Strong in midsize
Strong in Cu smelting, anode casting, SX and Zn leaching, strong in Ni smelting and EW
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, Oil shale processing
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 Ferro Chrome, 20 pelletizing and sinter plants and 9 smelters for ferroalloys
Versatile waste-to-energy solution, over 250 materials used
Effluent treatment plants, backfill plants, water recycling
Shutdownservices, bestsuited to provideservices for owntechnologies
Outotec globally #1-3 Selected niches Opportunisticapproach
AGM 2018 | CEO's review7
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Outotec in numbers
AGM 2018 | CEO's review8
Services
42%of sales
Experts of
> 60nationalities
4,100employees
Widesupplier network
Deliveries to
> 80 countries
R&D, sales and service centers in
36countries
Sales
1.139 bn EUR
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Contents
AGM 2018 | CEO's review9
1. Safety2. Outotec today3. Highlights of 20174. Market situation5. Outotec’s opportunities and focus areas6. Outlook for 2018
© Outotec – All rights reserved
Highlights of 2017: Strong development in many areas
• New strategy and vision• New Services organization • Order intake• Sales• Profitability• Cashflow• People
AGM 2018 | CEO's review10
• Customers generated 6.2 million tonnesless of CO2e when using Outotec’s metals related technologies compared to annual baselines. From Outotec Ferrochrome Process alone, the CO2e emissions avoided are 2.9 million tonnes.
• 88% of order intake represent Environmental Goods and Services.
5th mostsustainablecompany in Global 100
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Order intake increased 20% from 2016
AGM 2018 | CEO's review11
Americas 30 (33) %
564 710
443495
0
200
400
600
800
1 000
1 200
1 400
2016 2017
Serviceorders
Capexorders
Metals, Energy & Water
Minerals Processing
EMEA 51 (49) % APAC 19 (18) %
Order intake Services/CAPEX
GOLD Q2: Grinding technology to Western Australia, 14 M€
COPPER
Q4: Minerals processing equipment, Australia ~17 M€
COPPER Q1: Filtration plant to copper concentrator in Peru >15 M€
ZINC Q1:Zinc plant technology to Mexico ~ 24 M€
COPPER Q2: Shutdown services to a smelter in South America, 12 M€
LITHIUM Q2: Technology for lithium carbonate plant in South America, 20 M€
GOLD Q3:Gold processing technology, Lundin Gold, Ecuador >10 M€
COPPER
Q4: Concentrator expansion, Chile ~14 M€
ALUMINUM Q1: Aluminum technology to Bahrain
COPPER Q2: Technology to a concentrator expansion in Russia, 17 M€
GOLD Q2: Technology for a greenfield project in West Africa, 13 M€
NICKEL Q3: Minerals processing technology, Norilsk Nickel, Russia >13 M€
COPPERCOBALT
Q4: Hydrometallurgical and minerals processing technology, DR Congo ~65 M€
Q4: Electrowinning technology,Poland ~10 M€ZINC
Q4: Minerals processing technology, Turkey ~13 M€
COPPER
COPPER
Q4: Grinding technology,Southern Africa >10 M€
M€
© Outotec – All rights reserved
020406080
100120140160180
Q1/
12
Q2/
12
Q3/
12
Q4/
12
Q1/
13
Q2/
13
Q3/
13
Q4/
13
Q1/
14
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Q1/
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16
Q1/
17
Q2/
17
Q3/
17
Q4/
17
Split in service order intake
Recurring services Shut-downs and modernizations
M€M€
Orders increased toward the year end
AGM 2018 | CEO's review12
M€
400
500
600
700
800
900
1000
1100
Q1/
12Q
2/12
Q3/
12Q
4/12
Q1/
13Q
2/13
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4/13
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14Q
2/14
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4/14
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15Q
2/15
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4/15
Q1/
16Q
2/16
Q3/
16Q
4/16
Q1/
17Q
2/17
Q3/
17Q
4/17
Minerals Processing
Order intake 6 months rolling, annualized Sales 6 months rolling, annualized
350400450500550600650
Q1/12
Q2/12
Q3/12
Q4/12
Q1/13
Q2/13
Q3/13
Q4/13
Q1/14
Q2/14
Q3/14
Q4/14
Q1/15
Q2/15
Q3/15
Q4/15
Q1/16
Q2/16
Q3/16
Q4/16
Q1/17
Q2/17
Q3/17
Q4/17
Services
Order intake 6 months rolling, annualized Sales 6 months rolling, annualized
200
400
600
800
1000
1200
1400
Q1/
12Q
2/12
Q3/
12Q
4/12
Q1/
13Q
2/13
Q3/
13Q
4/13
Q1/
14Q
2/14
Q3/
14Q
4/14
Q1/
15Q
2/15
Q3/
15Q
4/15
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16Q
2/16
Q3/
16Q
4/16
Q1/
17Q
2/17
Q3/
17Q
4/17
Metals, Energy & Water
Order intake 6 months rolling, annualized Sales 6 months rolling, annualized
M€
Split in service order intake
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Our profitability improved
AGM 2018 | CEO's review13
EUR million 2017 2016 Change, %
Sales 1,139 1,058 8Service sales 475 447 6Share of services in sales, % 42 42Gross margin, % 24 22Adjusted EBIT 32 -23Adjusted EBIT*, % 3 -2- Restructuring and acquisition-related costs - -37- PPA amortization -7 -7EBIT 25 -68EBIT, % 2 -6Result for the period 2 -69
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Minerals Processing
AGM 2018 | CEO's review14
Sales and adjusted EBIT development
• Order intake and sales improved• Profitability improved• Service sales increased
Minerals ProcessingEUR million 2017 2016
Change, %
In comp currency,
%
Order intake 727 627 16 14Sales 661 540 22 21Service sales 304 283 7 6Adjusted EBIT*) 61 37Adjusted EBIT*), % 9 7
Unrealized and realized gains/losses related to valuation of FX forward agreements 6 -4* Excl. restructuring and acquisition-related costs as well as PPA amortizations
0%
5%
10%
15%
20%
050
100150200250300350
Q1/
2012
Q2/
2012
Q3/
2012
Q4/
2012
Q1/
2013
Q2/
2013
Q3/
2013
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2013
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2014
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2015
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2015
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2016
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2016
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2016
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2017
Q2/
2017
Q3/
2017
Q4/
2017
Sales aEBIT*, %
© Outotec – All rights reserved
Metals, Energy & Water
• Order intake increased 25%• Sales declined• Profitability improved but remained
negative
AGM 2018 | CEO's review15
Metals, Energy & WaterEUR million 2017 2016
Change, %
In comp currency, %
Order intake 478 381 25 25Sales 478 518 -8 -8Service sales 171 164 4 4Adjusted EBIT*) -22 -55Adjusted EBIT*), % -5 -11
Unrealized and realized gains/losses related to valuation of FX forward agreements 2 -4
* Excl. restructuring and acquisition-related costs as well as PPA amortizations
Sales and adjusted EBIT development
-40%
-30%
-20%
-10%
0%
10%
20%
050
100150200250300350400
Q1/
2012
Q2/
2012
Q3/
2012
Q4/
2012
Q1/
2013
Q2/
2013
Q3/
2013
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2013
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2014
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2014
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2014
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2015
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2015
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2015
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2015
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2016
Q2/
2016
Q3/
2016
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2016
Q1/
2017
Q2/
2017
Q3/
2017
Q4/
2017
Sales aEBIT*, %
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Contents
AGM 2018 | CEO's review16
1. Safety2. Outotec today3. Highlights of 20174. Market situation5. Outotec’s opportunities and focus areas6. Outlook for 2018
© Outotec – All rights reserved
Capex investments regarding most metals have grown, copper and gold leading
17
0
10
20
30
40
50
60
70
80
90
100
110
120
130
20112009 20122010 2013 2014 2015 2016 2017 2018 2019 2020
+8%
Sustaining
Expansion
Source: Woodmac, February 2018
bn USD
0
10 000
20 000
30 000
40 000
50 000
60 000
70 000
80 000
90 000
100 000
202020192018201720162015201420132012201120102009
Iron Ore
Copper
Gold
Lead
Nickel
Zinc
Expansion capex investments by commodity: Copper and Gold expected to lead the growth
bn USD
AGM 2018 | CEO's review
Total capex investments for Copper, Gold, Iron ore, Lead, Nickel and Zinc (mine only)
© Outotec – All rights reserved
Expansion investments by region
18
0
5 000
10 000
15 000
20 000
25 000
30 000
20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020
North AmericaOceania
Africa
EuropeAsia
Russia and the Caspian
Middle EastLatin America
Copper
Source: February 2018, Woodmac
0
5 000
10 000
15 000
20 000
20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020
0
1 000
2 000
3 000
4 000
5 000
6 000
20132009 20122010 2011 2014 2015 2016 2017 2018 2019 20200
2 0004 0006 0008 000
10 00012 00014 00016 00018 000
20132009 20122010 2011 2014 2015 2016 2017 2018 2019 2020
Gold
Zinc Nickel
‘000 USD ‘000 USD
‘000 USD ‘000 USD
AGM 2018 | CEO's review
© Outotec – All rights reserved
Our business is well placed to meet the fastest growing metal markets
AGM 2018 | CEO's review19
81% of Outotec’s sales coming from
metals relatedtechnologies and
services
Copper 30%
Batterymetals Cu, Ni, Co, Li 36%
Preciousmetals 21%
Energy and environmentalsolutions 7%
Aluminum9%
Iron and ferroalloys9%
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Contents
AGM 2018 | CEO's review20
1. Safety2. Outotec today3. Highlights of 20174. Market situation5. Outotec’s opportunities and focus areas6. Outlook for 2018
© Outotec – All rights reserved
Emission trading schemes, increasing regulation and social license to operate.
Mining companies’ key challenges: energy, water, and productivity improvement
AGM 2018 | CEO's review
Deep knowledge of processing all types of ores to achieve high yields and optimize plant performance; Lifecycle services to further improve productivity
Clean technologies to avoid emissions
Technologies for producing metals from secondary raw materials and tailings
Energy-efficient process technologies, gas handling and heat recovery systems
Water management solutions for significant reduction in freshwater consumption through recycling and purification of wastewater
Water scarcity is a concern and cost factor, concerns with tailings ponds at mine sites.
21
Energy
Water
Productivity improvement
Making metals is energy intensive, energy contributes largely to CO2 emissions.
More recycling is needed.
Outotec’s solutions
Ores are more complex and grades are declining.
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Our industry needs digitalization to solve its challenges
AGM 2018 | CEO's review22
"When purchasing Outotec solution I expect to get an access to metallurgical know-how, not just piece of equipment" - A. Bariliuk, Polyus Managing Director
"All technology suppliers should furnish their equipment with advanced diagnostics to increase our productivity." - Dragan Janicievic Global Supply Manager, Anglo American
"We are very good at running our plants and expect Outotec to bring their global experience for our use." - L Evrell, Boliden CEO Actionable information
Co-creation with customersEfficient internal processes
Digital workplaceNew business models
SafetyAsset performance and reliability
Improved productivityProcess optimization
Service effectiveness and efficiency
Outotec’s solutions
Smart connected equipmentSmart processes
Smart sitesSmart services
Smart ways of working
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Must-win battles help us to achieve our targets
Customer focus Service business Product competitiveness Project excellence Our people
Health and safety is our first priority
Delivering the best customer experience
Steady cash flow, long-term customer
relationships and sustained margins
Improving cost competitiveness to improve margins
Improving the quality of our project
deliveries and bringing flexibility to the cost
base
Creating an environment for our people to develop,
succeed and find joy in their work
AGM 2018 | CEO's review24
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Our targets
By 2020, we aim to achieve the following targets:
AGM 2018 | CEO's review25
Sales growth faster than the market
Annual average service sales growth over 10%
Profitability (aEBIT) 10% of sales by 2020
Gearing at maximum 50%
We aim to grow volumes while containing fixed cost and improve margins through product competitiveness and project excellence.
2
1
3
4
2017: 3% aEBIT
2020: 10%
Margins
Volumes/fixed cost
Service
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Outotec’s Executive Board
AGM 2018 | CEO's review26
Gustav KildénStrategic Customers & Business Development
Kalle Härkki Metals, Energy & Water
Kimmo KontolaMinerals Processing
Markku Teräsvasara CEO
Jari ÅlgarsCFO
Kaisa Aalto-Luoto Human Resources & Communications
Olli NastamoOperational Excellence
Nina KivirantaLegal, Contract Management & Corporate Responsibility
Tomas HakalaServices
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Contents
AGM 2018 | CEO's review27
1. Safety2. Outotec today3. Highlights of 20174. Market situation5. Outotec’s opportunities and focus areas6. Outlook for 2018
© Outotec – All rights reserved
Market sentiment improving
AGM 2018 | CEO's review28
Service opportunities in all categories
Several base metals, lithium, aluminum, gold,
cobalt and energy prospects
Market and complex ores
offer many attractive
opportunities
New uses suchas EVs supportlong-term view
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Financial guidance for 2018
AGM 2018 | CEO's review29
The guidance for 2018 is based on the current order backlog as well as expected order intake:
• Sales are expected to be approximately EUR 1.2 – 1.3 billion, and
• Adjusted EBIT* is expected to be approximately 5 – 7%
*) Excluding restructuring and acquisition-related costs, as well as purchase price allocation amortizations.