9/3/2008 Outotec in brief2
Outotec in brief
Sales and operating profit development
426
556
740
1000
366
9652
24
1180
200
400
600
800
1000
1200
2003 2004 2005 2006 20070102030405060708090100Sales
Operating profit
€ million € million
Develops and supplies technologies for mining, metals and related processing industriesMarket leadership in several markets and segmentsExpertise covers the whole process chain from mine to metalMore than 2000 employees in 20 countriesComprehensive R&D resourcesFlexible and cost-efficient use of resources and subcontractors Global operations and presence in all the key markets
Three business divisions:• Minerals Processing• Base Metals• Metals Processing
9/3/2008 Outotec in brief3
HistoryIndependent
public company
2006 > Development of the organization and own corporate functions
Listing on the Helsinki Stock Exchange in October 2006
Continuous profitable growth as strategy
Renaming to Outotecon April 24, 2007
TechnologyDevelopment
1950s – 1960s Development of the flash smelting technology for copper
Diversification and development of new technologies to assist expansion of Outokumpu’s own base metals and mining operations
Development of own R&D centre and metallurgical design office
Development of external customer base
Expansion and Internationalisation
1970s – 2001Strong expansion and internationalisation on the back of technological break troughs (flash smelting, flotation, automation, Cu, Zn, Ni, Co refining)
Development of international sites network, offices in North and South America
Acquisition driven consolidation
AISCO (Aluminium technology)Supaflo (thickeners)Carpco/Inprosys(Physical Separation)KHD AluminiumLurgi Metallurgie(Ferrous, Alumina, Sulfuric Acid / Off-gas / Roasting / Non-ferrous technologies)
Integration and Restructuring
2002 – 2004Challenging market conditions
Integration and restructuring of the businesses
Focus on turnaround and fixed cost reduction programmes
Sale of filters to Larox
Global Growth
2005 Focus on products with increasing proprietary technology content
Improved cost and pricing discipline
Improved coordination and leveraging of know how
Increased focus on services
Independent status within Outokumpu Group
9/3/2008 Outotec in brief4
Tapani JärvinenPresident & CEO
Vesa-Pekka TakalaCFO
Seppo RantakariDeputy CEO
Jari RosendalPresident
Markku JortikkaPresident
Metals Processing
Peter WeberPresident
Base MetalsMinerals Processing
Executive Committee
Management
Marketing developmentMartti Haario
Senior Vice President
Research & Technology developmentKari Knuutila
Chief Technology Officer
Human resourcesAri Jokilaakso
Senior Vice President
Corporate controlOuti Lampela
Senior Vice President
9/3/2008 Outotec in brief5
Strategy
Sustained profitable growth
Seek sustainable growth Maintain and improve profitability
New technology•Flash Converting•HydroCopper®Circoheat™,Circored®, Circofer®•Lurec™•OKTOP™•Outotec™ Zinc
Cross-selling
•Oil sands(Flotation technology)•Fertilizers (Sulfuric acid technology)
Geographical expansion
•BRICS (Brazil, Russia, India, China, Southern Africa)•Other emerging markets
Procurement and
outsourcingIncreasing sourcing e.g. from China and India as well as optimizing local supply (e.g. Brazil)
Optimise cost efficiency
•Efficient use of state of the art engineering tools•Local task force approach with OT supervision (e.g. Brazil)
Increase value-added component
•R&D efforts, testing facilities to guarantee customer ROI•Zinc and nickel leaching technologies; Circoheat™
Increase services and after-sales services
•Automation, upgrades and debottlenecking•Spare parts•Operator training
Selected acquisitionsContinuously screening the
market for potential
candidates
Personnel
Owners
Customers
9/3/2008 Outotec in brief6
Divisions and value chain
OR
E
The entire process chain from mine to metal
Technology deliveries from single equipment to turnkey plants
PU
RE
ME
TA
L
Metals Processing• Ferrous metals• Ilmenite• Alumina and aluminum• Sulfuric acid & off-gas• Roasting (sulfidic ores)
Base Metals• Copper• Nickel• Zinc• Precious metals• Ferroalloys
MineralsProcessing• Grinding• Flotation• Thickening• Physical separation• Analyzers & automation
Concentrate
9/3/2008 Outotec in brief7
Minerals Processing division
Minerals Processing offers a complete portfolio of technologies for metals concentrators
Grinding technology
Flotation technology
Thickener technology
Physical separation
Analyzers & automation
Process solutions
The technologies and capabilities of Minerals Processing can also be used in areas outside the mining and metals industries
Water technology
9/3/2008 Outotec in brief8
Base Metals division
Base Metals offers industry-leading technologies for the processing of non-ferrous metals and ferroalloys
Copper technologies
Nickel technologies
Precious metals technologies
Ferroalloy technologies
Zinc technologies
Process solutions
9/3/2008 Outotec in brief9
Metals Processing offers industry-leading technologies for the processing of aluminum and ferrous metals as well as for the production of sulfuric acid
Metals Processing division
Aluminum technologies Ferrous metals technologies Sulfuric acid / off-gas / roasting
technologies
Alumina calciner
Iron orepelletizing plant
Synthetic rutile plant
Sulfuric acid plant
Roasting plant
9/3/2008 Outotec in brief10
Extensive R&D and testing resources• Two in-house research centers in Pori,
Finland, and in Frankfurt, Germany, with some 200 employees
• Research facilities:• 8 laboratories, 2 bench scale pilots• Pyro and hydrometallurgical pilot plants• Hydrometallurgical demonstration plant• Fluidized bed pilot plants (Circo-
technologies)• Agglomeration facilities• Fluid dynamic testing facilities
• Core competencies in minerals technology, pyro and hydrometallurgy and ferrous technologies
• Awards in 2007: • Cleantech Finland® (ferrochrome process)• Quality Innovation of the Year (copper
process)
Highly educated staff
University
29 %
Operators14 %
Technicians41 % Post-
16 %graduates
9/3/2008 Outotec in brief11
Personnel Over 2,000 employees
Increase due to business growth and active recruitment
Temporary employees accounted for 14% of the total
Additionally some 490 full-time equivalent contracted people for engineering, construction and project management
Number of employees
1831 1802 1797
2144
2008
1000
1200
1400
1600
1800
2000
2200
2003*) 2004 2005 2006 2007
Personnel by country
Finland38 %
Germany15 %
Rest of Europe10 %
Americas22 %
Australia9 %
Other countries
6 %
*) includes the personnel (175) of the filter business sold to Larox
9/3/2008 Outotec in brief12
Wide range of technologies
Related project implementation, after-sales and other services
All business divisions cover a wide range of industry-leading technologies
Base Metals Metals Processing
Flash smelting & flash convertingAnode castingLeaching, bioleachingPrecipitationHydrometallurgical process equipmentSolvent extractionElectrorefiningElectrowinningFerroalloy sintering and smelting Process plant solutions
Direct reduction and direct smelting of iron ore finesAlumina refining and aluminum smelter equipmentSulfuric acid plants and off-gas treatmentRoasting of sulfidic oresIlmenite processing
Minerals Processing
ComminutionFlotationPhysical separationThickeningAnalyzersAutomationWater projects Process plant solutions
9/3/2008 Outotec in brief13
Technology leader
Nearly half of the world's copper produced with Flash SmeltingMajority of the world's iron ore pellets produced by Outotec's processesMarket leader in flotation technology, thickeners, on-line analyzersMarket leader in alumina calcination and roasting (sulfidic ores)Market leader in solvent extraction technologyForerunner in sulfuric acid plants over decades
Portfolio of industry benchmark technologies
Two own research centres with comprehensive R&D and testing facilitiesTechnology development and piloting with industry leading customers
Extensive R&D and testing resources
Extensive IPR portfolio of 480 patent families and 2322 patents
Patented technologies
9/3/2008 Outotec in brief14
Base Metals Metals ProcessingMinerals Processing
Strong market position
Market Leader
Top-3
NichePlayer
Grinding technologyThickener technology*Physical separation
Flotation technologyAnalyzers*
Automation*Process solutionsWater technology
Copper smeltingCopper anode castingCopper solvent extractionFerrochrome technologiesPrecious metalsZinc refining
Copper permanent cathodesStripping machines and anode preparation machines for copper tankhouses
Pelletizing and sintering technologies for iron oreAlumina calcinationtechnologiesSynthetic rutile productionZinc and pyrite roasting technologies
Sulfuric acid technologiesCarbon anode paste plants and rodding shops for aluminum smelters
Hydrometallurgical process solutions
* Minerals processing applications
9/3/2008 Outotec in brief15
Sales by destination
December 31, 2007
Aluminum10 %
Iron and steel 25 %
Copper 28 %
Precious metals7 %
Sulfuric acid9 %
Nickel5 %
Ferroalloys2 %
Zinc6 %
Other sales8 %
diversified technology portfolio, processes and products for severalmetals
Technology sales by metal
Europe and CIS
27 %
North America
4 %
South America
32 %
Africa11 %
Asia15 %
Australia 11 %
9/3/2008 Outotec in brief16
Offering for our customers
Complete coverage
Our technologies respond to the need for energy efficient and environmentally friendly operations
Technologies for today’s needs
As a market leader, we can offer our customers with a unique project execution track record and reputationExperienced partner
We have several proprietary technologies and extensive R&D and testing resources to support our customers
Proprietary technologies
We offer industry benchmark technologies covering the entire process chain of multiple metals
9/3/2008 Outotec in brief17
Long-term customer relationships
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
9/3/2008 Outotec in brief18
Main project types
Basic and detail engineeringFull supply and erectionTraining of customers’ personnelCommissioning of the plantPerformance guaranteesMany subcontractors and suppliersPRIMA risk assessments
Basic and detail engineeringProprietary key hardware Erection supervisionTraining of customers’ personnel Commissioning of the plantPerformance guaranteesPRIMA risk assessment
Design and engineeringProcurementInstallation Training of customers’ personnelCommissioningPerformance guarantees
Spare partsAuditingProcess upgradesTraining of customers’ personnelDebottleneckingPlant automation improvements
Technology package€3-100 million, 10-36 months
EPC / Turnkey€15-300 million, 15-36 months
Services and after sales services
Proprietary technology included in all projects
Equipment deliveries
up to €15 million
9/3/2008 Outotec in brief19
Largest orders in 2007
Outotecoffices
Kazchrome Chromite pellet plant
€ 40 millionKazakhstan
The Saudi Arabian Mining Company Three sulfuric acid plants€ 270 millionSaudi Arabia
Grinding technologyto Canada, Brazil, Ireland and Kazakhstan
€ 75 million
Hunan ZhuyeTorch Metals Zinc plant expansion
€ 30 millionChina
Emirates Aluminium Two green anode plants
€ 100 millionAbu Dhabi
Government of Sri Lanka Drinking water treatment facility
US$ 100 million*)Sri Lanka
Talvivaara Mining CompanyMetals recovery technology
€ 40 millionFinland
Tata Steel Ltd. Iron ore sintering technology
€ 35 millionIndia
Companhia Brasileira de Aluminio S.A.Alumina calcination plant € 40 millionBrazil
*) Not yet in the order backlog