sustainable use of earth’s natural resources - outotec.fi · • outotec is a global leader in...

Sustainable use ofEarth’s natural resources

IR presentationQ1-Q4 2017

© Outotec – All rights reserved

Safety performance

Outotec IR Presentation2 FY 2017

• 1.7 Lost Time Incidents per million working hours (LTIR), includes Outotec employees and contractors workingunder Outotec’s supervision.

• Since 2015, Outotec has had less working hours than in 2013-14 when there where large projects withextraordinary safety performance compared to global peers.


Outotec at a glance

FY 2017 Outotec IR Presentation3

Key figures

Financial performance

Geographic coverage

Business overview

740

1,0001,218

878 970

1,386

2,0871,912

1,4031,201

1,058 1,139

-4

-2

0

2

4

6

8

10

12

0

400

800

1200

1600

2000

2400

2006 *) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Sales Operating profit margin

*) Combined basis 2010 onwards aEBIT, excl. restructuring and acquisition-relatedcosts as well as purchase price allocation amortizations.

EUR million %

FY 2017 FY 2016

Net Sales, EUR million 1,139 1,058

Share of services in sales, % 42 42

Gross Margin, % 24 22

Adjusted EBIT, % (excl. one-time items) 32 -2Gearing, % -1 -1

Equity ratio, % 41 40Balance sheet total, EUR million 1,346 1,427

• Outotec is a global leader in minerals and metals processingtechnology, deliveries to more than 80 countries

• Outotec designs and delivers optimized solutions for minerals andmetals processing, water treatment, and waste-to-energy

• Delivers solutions which minimize the plant’s lifetime cost bymaximising recovery and utilizing less energy and water.

• HQ in Finland, some 4,150 employees (2017) in 36 countries

Outotec R&D, sales and service centersOutotec manufacturing/assembly


A century of accumulated expertise 1/2

FY 2017 Outotec IR Presentation4 OUTOTEC IR presentation


A century of accumulated expertise 2/2



Our business on the value chain from ore to metal

Superior technologies and customer service

Minerals processingfor 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 orebody

To metal

Outotec IR Presentation6

Exploration Development ExtractionMaterials handling Comminution Separation Refining

MetallurgyProcessing

OutotecOutotec

FY 2017


7

Minerals Processing segment’s offering

A complete portfolio of leading process solutions and services with full plant delivery capability

WaterTechnology

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, SGSMinerals

DCS: Major DCSsuppliers

FLSmidth, Golder,GR Engineering,AMC

Customers ownmaintenance,Major tech.suppliers, Localcompanies

Thickening AnalyzersGrinding Flotation AutomationFiltering ServicesTailings management

1,100 grindingmills delivered,strong in S/Msize mills andprocesstechnology

10,000 flotationunits deliveredsince 1960s,bigcell technologyreferences,automation

1,800 thickenersdelivered, globalprojectexecutioncapability,feedwell design

Full analyserportfolio, lowestmin detectionlimits, only Xrayused

Uniquecombination ofautomation &analysers,important for riskmanagement

Full processand equipmentportfolio,effluenttreatment andbackfill plants

Prop equipmentand totalprocessknowhow,global servicenetwork

3,500 filtersdelivered, mostefficientconcentratefiltering, provenperformance

Competition fragmented, a number of players competing in part of the portfolio

FY 2017 Outotec IR Presentation



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 CFBAluminiumCalcination andHOT TubeDigestion

Over 60% of theworld’s pellets aremade withOutotec’stravelling gratetechnology

650 acid plantsand 270 non-ferrous roastingplants

Strong in Cusmelting, anodecasting, SX and Znleaching, strong inNi smelting andEW

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 FerroChrome, 20pelletizing andsinter plants and9 smelters forferroalloys

Versatile waste-to-energysolution, over250 materialsused

Effluenttreatment plants,backfill plants,water recycling

Shutdownservices, bestsuited to provideservices for owntechnologies


Long-term customer relationships with the industry’s topcompanies


In history, top ten customers have accounted for some 35% of sales.

Major global mining companies Local mining and metallurgicalcompanies in emerging regionsIntermediate sized companies

Selected reference customers of Outotec


Offering industry’s most sustainable processingtechnologies


EnvironmentalGoods and

Services equals

to 88% oforders (2017)

5th mostsustainablecompany inGlobal 100

• In 2017, customers generated 6.2 milliontonnes less of CO2-e when using Outotec’stechnologies compared to annual baselines.

• From Outotec Ferrochrome Process alone theCO2-e emissions avoided are 2.9 milliontonnes.

• 88% of order intake represent EnvironmentalGoods and Services (OECD criteria).


Share of sales by end product



Demand remains supportive for the mining industry

More investments expected inshort term. Long term themarket will be oversuppliedby China

-1 500

-1 000

-500

0

500

1 000

1 500

2021202020192018201720162015201420132012

Aluminium

-800

-600

-400

-200

0

200

400

2021202020192018201720162015201420132012

Zinc

-200

0

200

400

600

2018201720162015201420132012 202120202019-100-50

050

100150200250

2015201420132012 202120202019201820172016

Copper Nickel

-200

2040

6080

100120

2021202020192018201720162015201420132012

Iron ore

Metals Balance

Deficit

Surplus Surplus

Deficit

Surplus

Deficit

Surplus

Deficit

Surplus

Need for some new andreplacement investment

The price still needs to bemore supportive beforenew investment

High oversupply

Outside China, the marketremains in deficit

Deficit

0% 4% 5% 6% 7% 8% 9%-1% 1% 2% 3%

Potash

Stainless steel

Gold

Cobalt

Lithium

Steam coal

Phosphates

Steel

Copper

Aluminium

Ferrochrome

Capital goodsOtherAgriculture

Consumer goodsEnergyTransport

InfrastructureConstruction

% change in demand 2017-18

Expected demand change and commoditydriver 2017-2018

12

Source: Thomson Reuters, HSBC, CRU



Production outlook for battery metals


0

50 000

100 000

150 000

200 000

250 000

300 000

350 000

400 000

450 000

500 000

2016 2017 2018 2022

+17%

20202019 2021

Tonnes LCE

Source: Macquarie Research

Lithium supply growth

010 000

20 00030 000

40 00050 000

60 00070 000

80 00090 000

100 000110 000

120 000130 000

140 000

2016 2017 2018 2022

+6%

20202019 2021

Cobalt supply growth

0

500

1 000

1 500

2 000

2 500

2016 2017 2018 2022

+4%

20202019 2021

Nickel supply growthTonnes ‘000 tonnes


Capex investments growth seen in most metals, copperand gold leading

FY 201714

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%

Total capex investments for Copper, Gold, Iron ore,Lead, Nickel and Zinc (mine only), bn USD)

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: Copperand Gold expected to lead the growth

bn USD

Outotec IR Presentation


Expansion investments by region

15

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



Copper and gold investments by company

16

Cumulative investments over 3 years 2018-2020

4544934975855916256446817067198158198328691 0501 6101 935

2 342

3 336

8 477

SandspringResources

EuromaxResources

MidasGold

StAugustine

Gold &Copper

Governmentof

Venezuela

Agnico-EagleMines

IamgoldVista GoldCorp.

MunduroMining

AlliedNevada

Gold

New GoldKinrossGold

GoldcorpSeabridgeGold

BarrickGold

Corporation

ArgonautGold

EldoradoGold Corp

LundinGold

FalcoResources

PallavicinoHoldings

7988369109651 0251 0481 0731 2691 2851 3301 4691 4971 7441 853

2 658

3 205

4 1104 548

4 891

6 058

AngloAmerican

Rio TintoBHPBilliton

HudbayMinerals

AntofagastaCodelco NevadaCopper

TurquoiseHill

Resources

PacificBooker

Minerals

MinsurNovaGoldResources

RussianCopper

Company

FirstQuantumMinerals

Freeport-McMoRan

ErdenesOyu Tolgoi

KGHMPolskaMiedz

WesternCopper

and Gold

CRCCTongguan

SouthernCopper

(ex SPCC)

Teck

Copper: Top 20 producers account for aprox. 70% of total investments

Gold: Top 20 producers account for 70% of total investments

Source: February 2018, WoodmacFY 2017 Outotec IR Presentation


Zinc and nickel investments for 2018-2020

17

60607895100102131149260266281339375400402

508677765

1 629

2 493

NorontResources

IMX GMEResources

BrazilianNickel

SLN - LaSociete

Le Nickel

CassiniResources

PengxinGroup

WesternAreas Ltd

GlencoreAnekaTambang

PolymetTsingshanGroup

ErametHorizonteMinerals

OremineMadencilik

WellgreenPlatinum

Clean TeQBHPBilliton

NornickelVale

Nickel: Top 20 producers account for 95% of total investments

267271274288291292295306309338349366374532552

656787

1 037

1 281

1 989

AnsanWikfs

Hadramaut

KarounDez Dasht

NexaResources

Silver BullResources

Tau KenSamruk

VedantaResources

IronbarkZinc

GecaminesSSRMining

Teck Minorbis- GrupoMexico

GlencoreChesapeakeGold

MBCResources

MMGLimited

OrmondeMining

BMCMinerals

YunnanMetallurgical

Group

ChihongZinc &

Germanium

Terramin

Zinc: Top 20 producers account for 75% of total investments

Refers toprojectMetates: Zincnot primarycommodity,but Gold

Source: February 2018, WoodmacFY 2017 Outotec IR Presentation


We will grow our service business profitably


Increased customer share

Improve efficiency and profitability

Build service organization

Services thatimprove customers’

productivity andreduce their totalcost of ownership

Annualaverage

service salesgrowth over

10%

FY 2017



Highservice

potential

1,100 grinding mills

10,000 flotation units

3,500 filters 650 sulfuric acid plants

130 non-ferrous smelters

80 full depositstripping machines

Most of the service growth will come from own installed base

FY 2017


Digitalization is increasingly embedded into everything we do

Our elements: Value:

Asset performance and reliability

Process productivity

Process optimization

Service effectiveness and efficiency

Efficient internal processes

Smart connected equipment

Smart processes

Smart sites

Smart services

Smart ways of working

Outotec IR Presentation20 FY 2017


How will we achieve 10% adjusted EBIT by 2020


2017: 2.8% aEBIT

2020: 10%• Annual average service sales

growth over 10%

• Grow volumes while containingfixed cost

• Improve margins throughproduct competitiveness andproject excellence

Margins

Volumes/fixed cost

Service


Key financials

Q1-Q4 2017



Producerscontinue tightcost control,brownfield

investmentsactive

Copper, zinc,lead, gold,

lithium, silver,cobalt projects

active

Metal prices,production levels

and demandoutlook positive

Market activitywide-spread in all

regions

Solid activity,large

investmentsdelayed

Markets improving



Highlights of 2017: Strong development in many areas

• New strategy and vision• New Services organization• Order intake• Sales• Profitability• Cashflow• People


5th mostsustainablecompany inGlobal 100

• Customers generated 6.2 million tonnesless of CO2-e when using Outotec’stechnologies compared to annualbaselines. From Outotec FerrochromeProcess alone the CO2-e emissionsavoided are 2.9 million tonnes.

• 88% of order intake representEnvironmental Goods and Services(OECD criteria).


Order intake up 20% YoY, up 29% QoQ


Americas 30 (33) %

175240

108

126

0,0

100,0

200,0

300,0

400,0

Q4/2016 Q4/2017

ServiceordersCapexorders

MEWorder

MPorder

M€

COPPERCOBALT

Q4: Hydrometallurgical andminerals processing technology,DR Congo ~65 M€

EMEA 51 (49) % APAC 19 (18) %

COPPER

Q4: Concentrator expansion,Chile ~14 M€

Order intake QoQ

Q4: Electrowinning technology,Poland ~10 M€ COPPER

Q4: Minerals processingequipment, Australia ~17 M€

ZINC

Q4: Minerals processingtechnology,Turkey ~13 M€

COPPER

COPPER

Q4: Grinding technology,Southern Africa >10 M€


Good Q4 order intake in MP, large orders volatile in MEW


MEUR MEUR

400

500

600

700

800

900

1000

1100

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

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

350

400

450

500

550

600

650

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


020406080

100120140160180

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

Split in service order intake

Recurring services Shut-downs and modernizations

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

Q1/

16Q

2/16

Q3/

16Q

4/16

Q1/

17Q

2/17

Q3/

17Q

4/17

Metals, Energy & Water



Solid order backlog


EUR million

RoughlyEUR 750 millionto be delivered in

2018

371

235168

493418 384

299

475

260

120 139106202

111

419350

269357344

532

803

327425

736

452471 491

366230

426

210

380

266322

260

395268267

170281

274283 318 286234

366

0

200

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

2 200

2 400

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

Q4/

2011

Q1/

2012

Q2/

2012

Q3/

2012

Q4/

2012

Q1/

2013

Q2/

2013

Q3/

2013

Q4/

2013

Q1/

2014

Q2/

2014

Q3/

2014

Q4/

2014

Q1/

2015

Q2/

2015

Q3/

2015

Q4/

2015

Q1/

2016

Q2/

2016

Q3/

2016

Q4/

2016

Q1/

2017

Q2/

2017

Q3/

2017

Q4/

2017

Order backlog at the end of the period Share of unannounced orders Order intake by quarter

EUR 988

million, some

20% services


Sales grew and profitability improved


EUR million Q42017

Q42016

Q1-Q42017

Q1-Q42016

Change,%

In compa-rable

currency,%

Sales 329 305 1139 1058 8 7Service sales 146 127 475 447 6 5Share of services in sales, % 44 42 42 42Gross margin, % 24 16 24 22Adjusted EBIT* 16 -25 32 -23Adjusted EBIT*, % 5 -8 3 -2- Restructuring and acquisition-related costs -0 -27 -0 -37- PPA amortization -2 -2 -7 -7EBIT 14 -53 25 -68EBIT, % 4 -18 2 -6Result for the period -0 -52 2 -69Unrealized and realized gains related tovaluation of FX forward agreements -1 -5 8 -8* Excl. restructuring and acquisition-related costs as well as PPA amortizations.


YoY aEBIT analysis


32

-23

VolumeAdditional risk provisionin MEW Q4/2016

aEBIT Q1-Q4/2016 aEBIT Q1-Q4/2017Fixed CostsMargin and FX gains &losses on derivatives

Negative margin impacts in2017:• Low workload in MEW• Sales mix• Cost overruns in some

projects


Minerals Processing


Sales and adjusted EBIT developmentby quarter

• Order intake and sales improved• Profitability improved• Service sales increasedQ4:• Order intake up 45%• Sales up 6%• Service sales up 7%Minerals ProcessingEUR million

Q1-Q42017

Q1-Q42016

Change,%

In compcurrency, %

Order intake 727 627 16 14Sales 661 540 22 21Service sales 304 283 7 6Adjusted EBIT*) 61 37Adjusted EBIT*), % 9 7

Unrealized and realizedgains/losses related to valuationof 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

Q4/

2013

Q1/

2014

Q2/

2014

Q3/

2014

Q4/

2014

Q1/

2015

Q2/

2015

Q3/

2015

Q4/

2015

Q1/

2016

Q2/

2016

Q3/

2016

Q4/

2016

Q1/

2017

Q2/

2017

Q3/

2017

Q4/

2017

Sales aEBIT*, %


Metals, Energy & Water• Order intake increased 25%• Sales declined• Profitability improved but remained negativeQ4:• Order intake up 7%• Sales up 11%• Service sales up 31%


Metals, Energy & WaterEUR million

Q1-Q42017

Q1-Q42016

Change,%

In compcurrency, %

Order intake 478 381 25 25Sales 478 518 -8 -8Service sales 171 164 4 4Adjusted EBIT*) -22 -55Adjusted EBIT*), % -5 -11

Unrealized and realizedgains/losses related to valuation ofFX forward agreements 2 -4

* Excl. restructuring and acquisition-related costs as well as PPA amortizations

Sales and adjusted EBIT developmentby quarter

-40%

-30%

-20%

-10%

0%

10%

20%

050

100150200250300350400

Q1/

2012

Q2/

2012

Q3/

2012

Q4/

2012

Q1/

2013

Q2/

2013

Q3/

2013

Q4/

2013

Q1/

2014

Q2/

2014

Q3/

2014

Q4/

2014

Q1/

2015

Q2/

2015

Q3/

2015

Q4/

2015

Q1/

2016

Q2/

2016

Q3/

2016

Q4/

2016

Q1/

2017

Q2/

2017

Q3/

2017

Q4/

2017

Sales aEBIT*, %



Improved cashflow as orders returnedEUR MILLION Q1-Q4 2017 Q1-Q4 2016OPERATING PROFIT 25 -68Total depreciation and amortization 41 43EBITDA 65 -25Total change in net working capital -20 -67Other 2 20Capital Expenditure & other investing activities -19 -23FREE CASH FLOW 28 -95Interest received 5 5Interest paid -9 -10Income tax paid -3 -6INTEREST AND TAXES -7 -12FREE CASH FLOW AFTER INTEREST AND TAXES 21 -107Repayments of long-term debt -8 -112Change in current debt 7 -5Hybrid bond & interest -11 150Other financing cash flow -1 -2NET CASH FROM FINANCING ACTIVITIES -13 32NET CHANGE IN CASH AND CASH EQUIVALENTS 8 -75Foreign exchange rate effect on cash and cash equivalents -11 8Cash and cash equivalents at December 31 230 233


Solid balance sheet


Q42017

Q42016

Net interest-bearing debt*, EUR million -6 -4

Gearing*, % -1 -1

Equity-to-assets ratio*, % 41 40

Return on investment, %, LTM 3 -9

Return on equity, %, LTM 0 -15

Net working capital at the end of the period, EUR million -5 -24

Advances received 203 181

Equity, EUR million 470 498

Balance sheet total, EUR million 1,346 1,427* If the hybrid bond were treated as a liability, the net interest-bearing debt EUR 144.5 million, gearing 45.1% and equity-to-assets ratio would be 28.0% on December 31, 2017 (December 31, 2016: EUR 145.5 million, 41.8% and 27.9% respectively).


Market sentiment improving


Serviceopportunities inall categories

Several basemetals, lithium,aluminum, gold,

cobalt andenergy prospects

Market andcomplex ores

offer manyattractive

opportunities

New uses suchas EVs supportlong-term view


Financial guidance for 2018


The guidance for 2018 is based on the current order backlog as well asexpected 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.


Our focus areas 2018 - towards profitable growth!


Customer focus Service business Productcompetitiveness Project excellence Our people


POC and cash flow profile example


0

20

40

60

80

100

120

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27POC Cumulative cashflow

MEUR

Month

Order backlog YE 2017: Cumulativeproject POC vs total contract value

0% 100%

Percentage of Completion, %Timing of large projectcompletions, andpossible provisionreleases, affectsquarterly earnings.

Advancepayment~10-30%

NOTE: The figures are illustrative and vary project by project

Timing of large project completions affects quarterly earnings


Gaining efficiency going into this cycle

39

57

14

New level

348

277

Actual costsin 2015

Saved inQ4/15

Actual costsin 2016

Net savingsin 2016

12

Net savingsH1/2017

(annualized)

Next

Cost savingsgoing forwardStarting point

Q3/2015

334

Year on year comparison 2015-2017, M€


Next

• MEW savingsdone in H1 willtake full effect

• Build flexibilityinto cost base

• Managepockets ofinefficencieswhile investingin growth

FY 2017


-200,00

0,00

200,00

400,00

600,00

800,00

1000,00

0,00

100,00

200,00

300,00

400,00

500,00

600,00

700,00

800,00

900,00

1000,00

2015 2016 2017 2018 2019 2020 2021 2022

Interest bearing debt Other equity Equity (hybrid) Cash

Improving profitability and liquidity


Better profitabilityincreasing equity2017-2022

Hybrid bondrepayment fromliquidity reserves

Improving liquidityin the upcycle

• Investments in fixedassets to stay belowdepreciation level

• Net working capitalaffected by:- Growing servicebusiness- Advances received

• Effect of net workingcapital to liquidity not asprominent as in previouscycle due to higher shareof service business

Balance sheet development (conceptual)


Our long-term financing is secured for thenext three years


Long-term debt repayment profile (conceptual)

0

20

40

60

80

100

120

140

160

180

200MEUR

EIB R&D loan

Senior unsecured bond

Other L/T interest bearing debt


Reducing project risk increases overall margin


Only takerisks you

canmanage

Improvedsales

governance

Use provensolutions

Smoothhandovers

Cash isking

Continuousimprove-

ment

FY 2017


Customer solutions



Service offering

Using our strong metallurgical and technology expertiseto improve customers’ productivity


OperationsServices

AdvisoryServices

MaintenanceServices

RemoteServices

TrainingServices

Spare andWear Parts Upgrades

ProductivityAvailabilityAvailability Total cost ofoperations

Environmental& safetyperformance

Metallurgicalcapability

Technologycapability

+

FY 2017


We enabled significant improvement in silver recoveryfor Met Mex Peñoles in Mexico

45

Met Mex Peñoles zinc plantwith silver production• Peñoles is one of the biggest silver

producer in the world• A newly commercialized Pure

Jarosite process will improvemetals (Ag, Pb) recovery typicallyby 20%, silver being economicallymost important

• This project will be combined withthe expansion project anddelivered in 2017-2018


Direct Leaching expansion project• Pure Jarosite process including

• Process equipment (reactors, thickeners, filters, etc.)• Erection, commissioning and start-up support & site services• Comprehensive e-catalogue of spare parts

• Roaster feed pre-treatment systemFY 2017


46 Outotec IR Presentation

Our solution provides huge savings to the customer withbetter zinc and lead recoveryChallenges• In conventional

jarosite processroughly 20% of silverlost to iron residue

• In addition, losses oflead and zinc

• Problem especially forzinc producers withhigh silver contentconcentrates

Solution• Outotec’s Pure

Jarosite processavoids almost alllosses of silver,lead and zinc

Benefits• Increased overall

silver zinc and leadrecovery

• Value to customer:tens of millions USDannually with shortpayment time

• Relatively simple andcost-effectivemodifications at theplant

FY 2017


Monetizing substantial lithium mineral depositsat AMG Mineração, Brazil

47

AMGAdvanced Metallurgical Group N.V.• Produces aluminum master alloys and

powders, titanium alloys and coatings,ferrovanadium, natural graphite,chromium metal, antimony, tantalum,niobium and silicon metal

AMG Mineracão S.A. (Brazil):• Produces tantalum and tin concentrates• In 2018 production for lithium carrying

spodumene concentrate


Turnkey delivery of spodumene concentrator plant• Engineering, procurement and construction (EPC) of

the plant• Proprietary equipment; grinding mill, high intensity

magnetic separators, slurry conditioners, flotationcells, thickeners, PF filter, sophisticated processcontrol with on-line automatic slurry analyzers

FY 2017


Substantial lithium mineral depositsresiding in tailings ponds and stockpiles

48

What are tailings?• Tailings are the materials left over after

the process of separating the valuableminerals from the uneconomic fractionof an ore.

• The amount of tailings can be large,ranging from 90–98% in valuableminerals to 20–50% with less valuableminerals.

What are the applications forlithium?• Lithium mineral concentrate is used in

applications such as glass and ceramics.• A high growth market for lithium

chemicals is in re-chargeable batteries,and the growth is accelerating with thedemand for electric vehicles, grid batterystorages and personal electronicdevices.

Outotec IR PresentationFY 2017


Background to the project at the Mibra mine

49

• Tailings from AMG’s tantalum plantare collected to a tailings pond

• New tailings are continuouslygenerated from the operations

• The tailings contain valuable lithium• For close to 10 years AMG has

studied the utilization of lithiumcarrying tailings, and Outotec hasbeen involved since 2010

Lithium resource map at the Mibra mine



Finding the right solution at the Mibra mine

50

• In 2014-2016 Outotec completedconceptual, pre-feasibility and definitivefeasibility studies for lithium carryingspodumene production

• October, 2016: AMG and Outotec agreedto build a 90 kilo-tonnes per annumspodumene plant on EPC turnkey basis

• Guarantees for process performance,project budget and schedule

• Order value exceeds EUR 35 million,commissioning starting in May 2018



Our local team supports plant commissioning andoperation with sophisticated process control

51 Outotec IR Presentation

Operational support and servicesby Outotec’s local team in Brazil

The plant has sophisticated processcontrol with high-end analyzers.

AGM has the possibility to remote advisorsupport for operation and maintenance by

Outotec global technology centers.

FY 2017


Benefits of our solution for the customer

52

Monetizing the substantial lithium mineraldeposits currently residing in tailings

with low production cost

Fast-track access with our EPC deliveryto the growing lithium market

Tailings area reduced for future operation,reclaimed water back to the process

reducing fresh water need



Shareholder information, Jan 31


No. Shareholders Shares % of shares Change +/- Change % Market value (EUR)1 Solidium Oy 27 265 232 14,89 0 0,00 183 495 011,362 Varma Mutual Pension Insurance Company 12 778 363 6,98 0 0,00 85 998 382,993 Ilmarinen Mutual Pension Insurance Company 12 151 530 6,64 917 000 8,16 81 779 796,904 Tamares Nordic Investments B.V. 10 192 356 5,57 0 0,00 68 594 555,885 The State Pension Fund 4 200 000 2,29 0 0,00 28 266 000,006 Keva 2 425 120 1,32 0 0,00 16 321 057,607 Holding Manutas Oy 1 700 000 0,93 0 0,00 11 441 000,008 Outotec Oyj 1 677 929 0,92 0 0,00 11 292 462,179 QRT-invest Oy 1 347 290 0,74 0 0,00 9 067 261,70

10 Mandatum Life Insurance Company Limited 1 269 247 0,69 0 0,00 8 542 032,3111 Sijoitusrahasto Aktia Capital 1 250 751 0,68 0 0,00 8 417 554,2312 Fondita Nordic Small Cap Investment Fund 855 000 0,47 165 000 23,91 5 754 150,0013 Security Trading Oy 700 000 0,38 0 0,00 4 711 000,0014 Etola Erkki 600 000 0,33 0 0,00 4 038 000,0015 Kaleva Mutual Insurance Company 550 000 0,30 0 0,00 3 701 500,0016 SEB Finlandia Investment Fund 520 654 0,28 0 0,00 3 504 001,4217 Nordea Nordic Small Cap Fund 439 500 0,24 -819 540 -65,09 2 957 835,0018 Sijoitusrahasto Aktia Nordic Small Cap 314 000 0,17 0 0,00 2 113 220,0019 Tiiviste-Group Oy 300 000 0,16 0 0,00 2 019 000,0020 The Finnish Cultural Foundation 300 000 0,16 0 0,00 2 019 000,00

50 largest shareholders total 86 122 988 47,03 -688 629 -0,79 579 607 709,24Nominee registered shares 65 947 280 36,01 1 598 487 2,48 443 825 194,40Others 31 051 224 16,96 -909 858 -2,85 208 974 737,52Total 183 121 492 100,00 0 0,00 1 232 407 641,16

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