Metso Corp, Finland

COMPANY PROFILE

Metso Corp, Finland Profile

Metso Corp is a global supplier of technology and services to the mining, construction, pulp and paper, power, and oil and gas industries. The company reports in three business segments: Mining and Construction; Automation; and Pulp, Paper and Power. Mining and Construction includes minerals processing solutions, crushing and screening equipment and services; Automation covers process automation systems, flow control and services; while Pulp, Paper and Power consists of paper, fibre, power and services. Its filtration and separation operations are concentrated in the Mining and Construction and Pulp, Paper and Power segments. Metso’s shares are listed on the NASDAQ OMX Helsinki Ltd. The Metso board has recently approved a demerger plan to transfer all the assets, debts and liabilities of Metso’s Pulp, Paper and Power businesses to a new listed company called Valmet Corp. Following the demerger, Metso’s Mining and Construction and Automation businesses would remain in the current company, which would continue to operate under the Metso name. The demerger will require the approval of an Extraordinary General Meeting which is planned to be held on or about 1 October 2013. If approved, the planned registration date of the demerger will be 31 December 2013. Analysis

Metso’s 2012 net sales increased 13% on 2011 to reach E7504 million. The growth was organic and in all segments. Mining and Construction saw net sales increase 18% to E3492 million in 2012. The segment’s net sales were up 27% to mining customers and up 2% to construction customers. Pulp, Paper and Power’s net sales in 2012 increased 12%, to E3014 million. Net sales were higher in all of Pulp, Paper and Power’s businesses, particularly in power. Key Figures (E million) Metso Corp 2012

COMMENT Metso believes that spinning off its Pulp, Paper and Power businesses through a demerger offers the best potential for Valmet and Metso and their separate growth strategies. After the demerger, the new Metso and the new Valmet will be two sizeable, global businesses with 2012 net sales of E4499 million and E3005 million respectively. ■

Year ended 31.12 2011

2010

2009

2008

Net Sales Of Which: Mining and Construction Pulp, Paper and Power

7504

6646

5552

5016

6400

3492 3014

2967 2703

– –

– –

– –

Cost of Goods Sold

5703

4978

–

–

–

Gross Profit

1801

1668

–

–

–

Operating Profit Of Which: Mining and Construction Pulp, Paper and Power

599

572

445

294

637

400 148

313 189

– –

– –

– –

Profit

372

358

258

151

390

Research & Development Of Which: Mining and Construction Pulp, Paper and Power

124

124

111

115

134

27 65

25 68

– –

– –

– –

Orders Received Of Which: Mining and Construction Pulp, Paper and Power

6865

7961

5944

4358

6384

3436 2444

3714 3225

– –

– –

– –

Order Backlog Of Which: Mining and Construction Pulp, Paper and Power

4515

5310

4023

3415

4088

1983 2249

2144 2863

– –

– –

– –

Personnel (31.12) Of Which: Mining and Construction Pulp, Paper and Power

30 212

30 324

28 593

27 166

29 322

11 721 12 439

11 433 12 528

– –

– –

– –

Contact Details

Chairman: President and CEO: Address: 88

Filtration Industry Analyst

Jukka Viinanen Matti Kähkönen Fabianinkatu 9 A, FI-00101 Helsinki, Finland

Tel: +358 20 484 Web: www.metso.com

July 2013