Metso Outotec Oyj

Quarterly Report • May 3, 2023

Interim Report

January – March 2023

Metso Outotec's Interim Report January 1 – March 31, 2023

Figures in brackets refer to the corresponding period in 2022, unless otherwise stated.

First-quarter 2023 in brief

• • Strong activity in the mining industry globally and the aggregates market in North America
• • Orders received increased 8% and totaled EUR 1,533 million (EUR 1,424 million)
• • Sales grew 22% to EUR 1,418 million (EUR 1,164 million)
• • Adjusted EBITA increased 37% to EUR 215 million, or 15.2% of sales (EUR 157 million, or 13.5%)
• • Operating profit increased to EUR 197 million, or 13.9% of sales (EUR 139 million, or 12.0%)
• • Cash flow from operations was EUR 110 million (EUR 74 million)
• • Strategic review of the Metals businesses was completed.

President and CEO Pekka Vauramo:

"Adjusted EBITA margin of 15.2% was at our targeted level for the first time and shows continuous sequential improvement, which is driven by our successful measures in managing inflation and cost control.""

I am pleased to report that we have had a strong start to the year with our overall performance continuing to improve. The Group's total orders increased 8%, driven primarily by 29% order growth in the Minerals services business. This reflects strong market activity in our customer industries, particularly in the mining services and equipment. Demand was also strong in the North American aggregates market, while the demand in Europe was sequentially stable but lower year-on-year.

All segments contributed to the sales growth of 22%, and Planet Positive sales grew 45% year-on-year to EUR 1,367 million (EUR 943 million) on a rolling 12-month basis. In addition to the growth in sales and orders, our profitability strengthened significantly compared to the first quarter of 2022. Adjusted EBITA amounted to EUR 215 million, which is 37% higher than in the first quarter of 2022. The adjusted EBITA margin of 15.2% was at our targeted level for the first time and shows continuous improvement, driven by our successful measures in managing inflation and cost control. Both the Aggregates and Minerals segments reported record-high margins, while the profitability of the Metals segment continued at a good level. This improvement in performance is an indication that our business strategy is delivering results and that we are well positioned to achieve our financial goals.

In March, we concluded the strategic review of our Metals businesses and the fit of the businesses within Metso Outotec's portfolio. The conclusion of the review was that the Smelting business complements our sustainable copper and non-ferrous metals market offering and therefore will continue to be developed as part of Metso Outotec. However, we have initiated preparations to divest the Metals & Chemical Processing and Ferrous & Heat Transfer businesses to an owner or owners that can offer both focus and scale to the businesses, and hence capitalize on their full potential.

During the quarter we signed a full and final settlement related to the ilmenite furnace project in Saudi Arabia dating back to 2012. We are satisfied with having reached an agreement that mitigates the risks related to this project. The earlier booked provision is expected to be sufficient to cover the remaining work that we will carry out at the site.

Our success in the first quarter has given us a solid foundation to build on for the rest of the year. I am confident that our performance will continue to be strong, allowing us to meet the challenges and capitalize on the opportunities that lie ahead.

Market outlook

According to the company's disclosure policy, Metso Outotec's market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

Metso Outotec expects the overall market activity to remain at the current level, including the normal seasonality in the aggregates market.

In its previously published outlook Metso Outotec expected the overall market activity to remain at the current level in both the mining and aggregates markets.

Group review

Key figures

EUR million	Q1/2023	Q1/2022	Change %	2022
Orders received	1,533	1,424	8	6,024
Orders received by services business	858	712	21	2,860
% of orders received	56	50	–	47
Order backlog	3,906	3,823	2	3,825
Sales	1,418	1,164	22	5,295
Sales by services business	693	551	26	2,574
% of sales	49	47	–	49
Adjusted EBITA	215	157	37	731
% of sales	15.2	13.5	–	13.8
Operating profit	197	139	41	504
% of sales	13.9	12.0	–	9.5
Earnings per share, continuing operations, EUR	0.17	0.11	55	0.40
Cash flow from operations	110	74	50	322
Gearing, %	27.2	18.6	–	29.1
Personnel at end of period	17,015	15,746	8	16,705

The Group's financial performance

Strong market activity continued across Metso Outotec's customer industries. The Group's orders received increased 8% to EUR 1,533 million compared to EUR 1,424 million in the same quarter of 2022. Comparable order intake, adjusted for the wind-down of the business in Russia, increased 10% year-on year. Services orders increased 21%, while equipment orders were -5% lower year-on-year, due primarily to a decline in Aggregates' orders.

The Group's sales increased 22% to EUR 1,418 million (EUR 1,164 million), driven by efficient deliveries from the backlog. Growth was double-digit in all segments. Services sales grew 26%, thanks to both pricing and volume, while equipment sales grew 18%.

Adjusted EBITA increased to EUR 215 million and the adjusted EBITA margin was 15.2% (EUR 157 million and 13.5%). The result and profitability increased significantly in the Aggregates and Minerals segments, supported by volume growth and successful price and cost management, which had a positive impact on gross margins. Profitability of the Metals segment remained healthy. Adjusted EBITA of Group items was EUR 24 million negative (EUR 6 million negative), of which approximately half related to timing of system development and bonus costs.

The Group's operating profit (EBIT) was EUR 197 million and the EBIT margin 13.9% (EUR 139 million and 12.0%). Adjustments in the quarter were EUR -2 million (EUR -1 million). PPA amortization was EUR -13 million. Net financing expenses amounted to EUR -12 million (EUR -20 million).

Profit before taxes was EUR 185 million (EUR 119 million). The effective tax rate was 25% (27%). Earnings per share for continuing operations were EUR 0.17 (EUR 0.11).

Cash flow from operations improved to EUR 110 million (EUR 74 million), as the improved performance compensated for the increase in working capital.

Impacts of currencies and structural changes

	Orders received	Sales
EUR million, %	Q1	Q1
2022	1,424	1,164
Organic growth in constant currencies, %	8	21
Impact of changes in exchange rates, %	-1	-1
Structural changes, %	1	1
Total change, %	8	22
2023	1,533	1,418

The Group's financial position

At the end of March, the Group's net interest-bearing liabilities were EUR 673 million (Dec 31, 2022: EUR 684 million), resulting in gearing of 27.2% (Dec 31, 2022: 29.1%) and a debt-to-capital ratio of 30.5% (Dec 31, 2022: 33.3%). The equity-to-assets ratio was 40.6% (Dec 31, 2022: 39.2%).

The Group's liquidity position remained strong. Liquid funds, consisting of cash and cash equivalents, amounted to EUR 531 million (Dec 31, 2022: EUR 601 million), and there were no deposits or securities with a maturity of more than three months (Dec 31, 2022: EUR 0 million).

Metso Outotec has a committed syndicated revolving credit facility of EUR 600 million with a maturity in 2026. The facility includes sustainability performance targets impacting the cost of borrowing. At the end of the quarter, the facility was undrawn. The company also has a EUR 600 million Finnish commercial paper program, which had not been utilized at the end of March. In addition, the company has a Euro Medium Term Note Program (EMTN) of EUR 2 billion, under which EUR 762 million at carrying value was outstanding at the end of March (Dec 31, 2022: EUR 758 million).

The average interest rate of total loans and derivatives was 3.29% on March 31, 2023. The duration of medium- and long-term interest-bearing debt was 1.8 years and the average maturity 3.7 years.

At the end of March, Metso Outotec had a 'BBB-' long-term issuer credit rating with positive outlook from S&P Global Ratings and a 'Baa2' long-term issuer rating with stable outlook from Moody's Investor Service. S&P Global upgraded its credit rating to 'BBB' with stable outlook on April 24, 2023.

Aggregates

• • Soft demand in Europe affected order intake
• • Healthy sales growth
• • Record-high adj. EBITA margin of 18.1%

	Orders
	received	Sales
EUR million, %	Q1	Q1
2022	402	329
Organic growth in constant currencies, %	-8	7
Impact of changes in exchange rates, %	-1	-1
Structural changes, %	3	4
Total change, %	-6	10
2023	379	363

First quarter

• Strong market activity continued in North America, while the European market was softer than during the comparison period, especially in Northern Europe. Activity in the rest of the world started to pick up during the quarter.
• Equipment orders were -6% and services orders -5% year-on-year, due to the lower demand in Europe.
• Sales growth of 10% year-on-year was supported by a strong order backlog. Equipment sales grew 16% and services sales 1%.
• Adjusted EBITA increased to EUR 66 million (EUR 45 million), resulting in an adjusted EBITA margin of 18.1% (13.8%). The improved margin was driven by the strength of the US market and improved gross margins.

Q1/2023	Q1/2022	Change %	2022
379	402	-6	1,481
119	125	-5	469
31	31	–	32
553	606	-9	561
363	329	10	1,446
114	114	1	477
31	34	–	33
66	45	45	213
18.1	13.8	–	14.8
62	44	39	195
17.0	13.5	–	13.5

Key figures

Segment review Minerals

			Orders received	Sales
•	Strong market activity in	EUR million, %	Q1	Q1
	both equipment and services	2022	880	731
•	High deliveries resulted in	Organic growth in constant currencies, %	24	29
	28% sales growth	Impact of changes in exchange rates, %	-1	-1
•	Adj. EBITA margin 17.4%	Structural changes, %	–	–
		Total change, %	22	28
		2023	1,078	934

First quarter

• Strong market activity in both the new equipment and services businesses resulted in 22% order growth.
• Equipment orders grew 11%, consisting of small and mid-sized orders. Services orders grew 29%, supported by customers' high utilization rates and an increased need for productivity improvements and other on-site services.
• Sales increased 28% and totaled EUR 934 million (EUR 731 million). Services sales grew 33% and equipment sales increased 21%.
• Adjusted EBITA was EUR 163 million (EUR 108 million) and the adjusted EBITA margin improved to 17.4% (14.7%). The stronger profitability was driven by increased deliveries and the improved gross margin supported by better execution.

Key figures
EUR million	Q1/2023	Q1/2022	Change %	2022
Orders received	1,078	880	22	3,993
Orders received by services business	725	561	29	2,303
% of orders received	67	64	–	58
Order backlog	2,703	2,514	8	2,589
Sales	934	731	28	3,359
Sales by services business	565	425	33	2,030
% of sales	61	58	–	60
Adjusted EBITA	163	108	51	502
% of sales	17.4	14.7	–	15.0
Operating profit	149	94	58	372
% of sales	16.0	12.9	–	11.1

Segment review

increased

level

Metals

• Healthy market activity • Deliveries from backlog • Profitability at a good Orders received Sales EUR million, % Q1 Q1 2022 141 104 Organic growth in constant currencies, % -45 16 Impact of changes in exchange rates, % 0 0 Structural changes, % – – Total change, % -46 16 2023 77 120

First quarter

• Customer activity was healthy but timing of large orders in the quarter resulted in orders received of EUR 77 million (EUR 141 million).
• Sales increased 16% to EUR 120 million (EUR 104 million), driven by increased deliveries from the backlog.
• Volume growth resulted in an adjusted EBITA of EUR 11 million (EUR 10 million) and a healthy adjusted EBITA margin of 9.1% (9.2%).

Key figures

EUR million	Q1/2023	Q1/2022	Change %	2022
Orders received	77	141	-46	551
Orders received by services business	15	25	-41	88
% of orders received	19	18	–	16
Order backlog	650	703	-8	674
Sales	120	104	16	489
Sales by services business	14	12	15	67
% of sales	12	12	–	14
Adjusted EBITA	11	10	14	52
% of sales	9.1	9.2	–	10.7
Operating profit	10	8	20	49
% of sales	8.1	7.8	–	10.0

Sustainability

		Sustainability KPI (%)	Target	Q1/2023	2022
• Planet Positive sales grew 45% year-on-year	Lost time injury frequency rate (LTIFR)	Zero harm	1.2	1.1
	Total recordable injury frequency rate (TRIFR)	Zero harm	2.9	2.8
	Employee Net Promoter Score (eNPS)	In top 10% industry benchmark	N/A	top 10%
•	Sustainability-linked financing program for suppliers launched	Inclusion score	In top 10% industry benchmark	N/A	top 25%
		Planet Positive sales (EUR million) *	To grow faster than overall Group sales	1,367	1,338
•	Engagement score continued to improve	Reduction of CO2 emissions: own operations**	Net zero by 2030	-61 %	-60%
		Reduction of CO2 emissions: logistics***	-20% by 2025	-10 %	-12%
		Spend with suppliers having set Science Based Targets	30% by 2025	20 %	20%
		Planet Positive sales and logistics emissions are rolling 12 months as of end of February 2023. CO2 emissions for own operations are rolling 12 months as of end of March 2023 with approx. 10% estimated based on previous months' actual data. eNPS and Inclusion for all employees are measured in June and in December. *Scope 1 and 2, baseline

Health and safety. The implementation of our fatality prevention program continued according to plan with the launch of Life-Saving Rules. Several campaigns around these rules including, sites with safety challenges have been identified and they have plans in place to improve performance in the short and long term. The health and safety of our employees remains our key focus.

1. ***Baseline 2019.

Our people and culture. Engagement is measured four times a year, with two full surveys for all employees and two pulse surveys for white-collar workers only. The first quarter white-collar survey indicates a positive trend for eNPS and a stable inclusion score. Diversity and inclusion initiatives continued as planned, including the Inclusive Talent Acquisition initiative, Conscious Inclusion eLearning and tools for Digital Inclusion and accessibility.

Planet Positive. Planet Positive sales grew 45% year-on-year to EUR 1,367 million (EUR 943 million). One mediumsized order to deliver Planet Positive concentrate dewatering filters to China was booked during the quarter. Thickening Plant Units to improve circuit performance and reliability were incorporated in the Planet Positive portfolio. A Green Steel DRI Smelting pilot project progressed to the testing phase at the Metso Outotec Research Center in Pori, Finland. This innovative technology has the potential to decrease CO2 emissions in steelmaking by up to 90%.

Footprint. Solar panel projects were completed in several locations during the quarter and renewable energy generation from solar panels grew by close to 30% year-on-year. In Tampere, Finland, CO2 emissions reductions were achieved from low-carbon district heating. A waste oil recycling project was completed in China. Supplier engagement continued with over 10 internal supplier audits in higher-risk areas and with around 70 new suppliers committing to SBTs.

Investments. During the first quarter, Metso Outotec announced an expansion of its filter assembly plant in Suzhou, China, which will double local filter production capacity. Over 80% of the Metso Outotec filters are part of the company's Planet Positive portfolio, due to their energy and water efficiency.

Research, development and partnerships. Metso Outotec and Thyssenkrupp Uhde signed a Memorandum of Understanding with Ma'aden in Saudi Arabia for developing a novel circularity concept. The aim is to improve the sustainability of Ma'aden's phosphate operations by reducing the amount of solid waste and allowing better capture of CO2 emissions.

Sustainable financing. A sustainability-linked financing program for suppliers was launched in Turkey in partnership with EBRD and Citibank. Suppliers will receive sustainability-linked incentives and advisory support, providing them with access to more affordable working capital financing.

Capital expenditure and investments

Gross capital expenditure, excluding right-of-use assets, was EUR 32 million in January–March 2023 (EUR 26 million). This consisted of various small investments in the company's foundries and other manufacturing sites as well as expansion of the service center network.

Research and development

Research and development (R&D) expenses and investments were EUR 19 million, or 1.3% of sales, in January–March 2023 (EUR 17 million, or 1.4% of sales).

Personnel

Metso Outotec had 17,015 (15,746) employees at the end of March 2023.

Personnel by area on March 31, 2023

	Share, %
Europe	32
North and Central America	14
South America	30
Asia Pacific and Greater China	12
Africa, Middle East and India	12
Total	100

Shares and share trading

Metso Outotec has a total of 828,972,440 shares and its share capital is EUR 107,186,442.52. On March 15, a total of 692,256 treasury shares were conveyed to the participants of the company's long-term incentive plans. After the conveyance, treasury shares totaled 2,644,249 at the end of March.

Share performance on Nasdaq Helsinki

EUR	January 1–March 31, 2023
Closing price	10.04
Highest share price	10.84
Lowest share price	8.99
Volume-weighted average trading price	10.08

Other main events between January 1 and March 31, 2023

Litigation related to three waste-to-energy plants in the UK

On February 9, 2023, Metso Outotec announced that it is in legal proceedings with MW High Tech Projects UK Limited in connection with three waste-to-energy plants in the United Kingdom.

Full and final settlement agreement on ilmenite furnace project

On March 8, 2023, Metso Outotec and Advanced Metal Industries Cluster Company Limited (AMIC), a subsidiary of Tasnee, signed a full and final settlement agreement in relation to the original engineering, procurement and construction (EPC) contract, signed in May 2012, on the ilmenite furnace project in Saudi Arabia.

Conveyance of own shares based on the long-term incentive plans

On March 15, 2023, a total of 692,256 of Metso Outotec Corporation's treasury shares were conveyed without consideration to 131 key persons and executives from the Performance Share Plan 2020–2022 and Deferred Share Plan 2020–2022. The Board of Directors had decided on the conveyance on February 17, and the directed share issue was based on an authorization given by the Annual General Meeting 2022.

Annual Report for 2022

On March 22, 2023, Metso Outotec published its Annual Report for 2022. The report consists of five sections: Business Overview, Financial Review, Corporate Governance Statement, Remuneration Report and GRI Supplement.

Strategic review of the Metals businesses

On March 29, 2023, Metso Outotec completed the strategic review of its Metals businesses. As a conclusion, the company decided to initiate the divestment of two of its three Metals businesses: Metals & Chemical Processing and Ferrous & Heat Transfer. The Smelting business will remain part of Metso Outotec's portfolio.

Events after the reporting period

On April 24, 2023, S&P Global Ratings upgraded Metso Outotec's credit rating to BBB with stable outlook.

Russia business update

Metso Outotec condemns Russia's military offensive against Ukraine and is deeply saddened by the humanitarian crisis it has caused. Since the start of the offensive, Metso Outotec has not taken any new orders for deliveries to Russia and has fully complied with all applicable sanctions against Russia. The company concluded its wind-down of the orders taken before the start of the war during the first quarter of 2023. To cover the costs of the wind-down process, the company booked a non-recurring charge of EUR 150 million in the second quarter of 2022, of which EUR 67 million was unused at the end of March.

Short-term business risks and market uncertainties

The uncertainty in the global markets may affect Metso Outotec's market environment. Inflation continues at a relatively high level. The tightening of monetary policy by central banks to tackle the inflation risks is having a negative impact on global economic growth. Whilst higher prices for minerals and metals typically have a positive impact on demand for Metso Outotec's products and services, uncertainty in the global economic outlook is challenging both for customers and suppliers. Higher financing costs risk having a negative impact on customers' capex decision-making. There are also other market and customer-related risks that could cause on-going projects to be postponed, delayed, discontinued or terminated.

Global supply chains continue to face uncertainty, challenged by inflation and the availability of materials, components and logistics. These challenges may be further exacerbated and affect the company's ability to deliver on time and/or onbudget. The financial position of suppliers may be at risk and could also lead to challenges with on-time deliveries. If suppliers are unable to deliver and the company is unable to find alternative sources in the time required, it may lead to contractual penalties and/or obligations.

Uncertain market conditions could adversely affect our customers' payment behavior and increase the risk of lawsuits, claims and disputes taken against Metso Outotec in various countries related to, among other things, Metso Outotec's products, projects and other operations.

Even though currency exposure of firm delivery and purchase agreements is hedged, exchange rate fluctuations may impact the company's financial position.

Information security and cyber threats could disturb or disrupt Metso Outotec's businesses and operations.

Whilst Metso Outotec has concluded the wind-down of its customer contracts in Russia and provided for the risk of claims, disputes or lawsuits, the possibility of additional liabilities cannot be excluded.

In discontinued operations, the company has a risk related to the UK waste-to-energy projects from 2015, where, in addition to delayed delivery and non-performance claims, the customer is claiming fraudulent misrepresentation and deliberate breach in its claims and lawsuits. Metso Outotec has assessed it can protect itself against these claims and lawsuits. Even though provisions have been made against these risks, the possibility of additional liabilities materializing cannot be excluded.

Disputes related to delivery execution and resulting in extra costs and/or penalties are a risk for Metso Outotec. In contracts related to the delivery of major projects, the liquidated damages attributable to, for instance, delayed delivery or non-performance may be significant. Even though provisions are provided for, in accordance with accounting principles, the possibility of additional liabilities materializing cannot be excluded.

Metso Outotec is involved in a few disputes that may lead to arbitration and court proceedings. Differing interpretations of international contracts and laws may cause uncertainties in estimating the outcome of these disputes. The enforceability of contracts in certain market areas may be challenging or difficult to foresee.

Market outlook

According to the company's disclosure policy, Metso Outotec's market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

Metso Outotec expects the overall market activity to remain at the current level, including normal seasonality in the aggregates market.

In its previously published outlook Metso Outotec expected the overall market activity to remain at the current level in both the mining and aggregates markets. ___________________________________________________________________________________________

Helsinki, May 3, 2023 Metso Outotec Corporation's Board of Directors

Metso Outotec Interim Report January 1–March 31, 2023: Tables

Contents

Consolidated statement of income, IFRS Consolidated statement of comprehensive income, IFRS Consolidated balance sheet, IFRS Consolidated statement of changes in shareholders' equity, IFRS Condensed consolidated statement of cash flow, IFRS Key figures, IFRS Formulas for key figures, IFRS Notes to the Interim Report

Consolidated statement of income, IFRS

EUR million	1–3/2023	1–3/2022	1–12/2022
Sales	1,418	1,164	5,295
Cost of sales	-990	-843	-3,909
Gross profit	428	320	1,386
Selling and marketing expenses	-112	-95	-445
Administrative expenses	-94	-74	-331
Research and development expenses	-18	-15	-64
Other operating income and expenses, net	-9	3	-41
Share of results of associated companies	0	0	-1
Operating profit	197	139	504
Finance income	4	1	14
Foreign exchange gains/losses	9	-11	-14
Finance expenses	-24	-10	-63
Finance income and expenses, net	-12	-20	-63
Profit before taxes	185	119	441
Income taxes	-45	-32	-112
Profit for the period from continuing operations	140	88	329
Profit from discontinued operations	-5	1	-28
Profit for the period	134	88	301
Profit attributable to
Shareholders of the Parent Company	135	88	301
Non-controlling interests	-1	0	0
Earnings per share, EUR	0.16	0.11	0.36
Earnings per share, diluted, EUR	0.16	0.11	0.36
Earnings per share from continuing operations, EUR	0.17	0.11	0.40

More information under "Key figures, IFRS".

Consolidated statement of comprehensive income, IFRS

EUR million	1–3/2023	1–3/2022	1–12/2022
Profit for the period	134	88	301
Other comprehensive income
Cash flow hedges, net of tax	1	-1	3
Currency translation on subsidiary net investment	-12	43	13
Items that may be reclassified to profit or loss in subsequent periods	-11	42	17
Defined benefit plan actuarial gains and losses, net of tax	0	-1	2
Items that will not be reclassified to profit or loss	0	-1	2
Other comprehensive income	-10	40	18
Total comprehensive income	124	129	319
Attributable to
Shareholders of the Parent Company	125	128	319
Non-controlling interests	-1	0	0

Consolidated balance sheet – Assets, IFRS

EUR million	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
Non-current assets
Goodwill and intangible assets
Goodwill	1,126	1,131	1,128
Other intangible assets	831	862	844
Total goodwill and intangible assets	1,957	1,993	1,972
Property, plant and equipment
Land and water areas	40	35	40
Buildings and structures	115	123	117
Machinery and equipment	192	182	193
Assets under construction	72	48	57
Total property, plant and equipment	419	388	407
Right-of-use assets	117	123	115
Other non-current assets
Investments in associated companies	6	7	6
Non-current financial assets	2	4	2
Loan receivables	–	6	5
Derivative financial instruments	2	–	3
Deferred tax assets	232	212	225
Other non-current receivables	20	38	20
Total other non-current assets	263	267	262
Total non-current assets	2,757	2,771	2,756
Current assets
Inventories	1,960	1,430	1,846
Trade receivables	751	707	799
Customer contract assets	399	289	354
Loan receivables	4	3	3
Derivative financial instruments	72	49	86
Income tax receivables	66	31	48
Other current receivables	295	251	263
Liquid funds	531	501	601
Total current assets	4,077	3,261	3,998
Assets held for sale	–	92	–
TOTAL ASSETS	6,834	6,124	6,754

Consolidated balance sheet – Equity and liabilities, IFRS

EUR million	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
Equity
Share capital	107	107	107
Share premium fund	20	20	20
Cumulative translation adjustments	-162	-121	-150
Fair value and other reserves	1,126	1,135	1,122
Retained earnings	1,377	1,227	1,243
Equity attributable to shareholders	2,469	2,369	2,342
Non-controlling interests	6	10	7
Total equity	2,475	2,378	2,350
Liabilities
Non-current liabilities
Borrowings	1,002	618	998
Lease liabilities	89	103	87
Post-employment benefit obligations	95	124	96
Provisions	63	49	59
Derivative financial instruments	30	13	33
Deferred tax liability	199	225	193
Other non-current liabilities	2	7	2
Total non-current liabilities	1,481	1,139	1,470
Current liabilities
Borrowings	85	204	176
Lease liabilities	31	29	31
Trade payables	765	718	787
Provisions	258	188	248
Advances received	304	278	281
Customer contract liabilities	427	360	474
Derivative financial instruments	42	80	47
Income tax liabilities	148	95	138
Other current liabilities	817	611	752
Total current liabilities	2,878	2,563	2,934
Liabilities held for sale	–	43	–
TOTAL EQUITY AND LIABILITIES	6,834	6,124	6,754

Consolidated statement of changes in shareholders' equity, IFRS

EUR million	Share capital	Share premium fund	Cumulative translation adjustments	Fair value and other reserves	Retained earnings	Equity attributable to shareholders	Non controlling	interests Total equity
Jan 1, 2023	107	20	-150	1,122	1,243	2,342	7	2,350
Profit for the period	–	–	–	–	135	135	-1	134
Other comprehensive income
Cash flow hedges, net of tax	–	–	–	1	–	1	–	1
Currency translation on subsidiary net investments	–	–	-12	–	–	-12	–	-12
Defined benefit plan actuarial gains (+) / losses (-), net of tax	–	–	–	–	0	0	–	0
Total comprehensive income	–	–	-12	1	135	125	-1	124
Share-based payments, net of tax	–	–	–	3	–	3	–	3
Other items	–	–	–	–	-1	-1	0	-1
Mar 31, 2023	107	20	-162	1,126	1,377	2,469	6	2,475

EUR million	Share capital	Share premium fund	Cumulative translation adjustments	Fair value and other reserves	Retained earnings	Equity attributable to shareholders	Non controlling interests	Total equity
Jan 1, 2022	107	20	-164	1,130	1,156	2,250	1	2,251
Profit for the period	–	–	–	–	88	88	0	88
Other comprehensive income
Cash flow hedges, net of tax	–	–	–	-1	–	-1	–	-1
Currency translation on subsidiary net investments	–	–	43	–	–	43	–	43
Defined benefit plan actuarial gains (+) / losses (-), net of tax	–	–	–	–	-1	-1	–	-1
Total comprehensive income	–	–	43	-1	87	128	0	129
Share-based payments, net of tax	–	–	–	6	-3	3	–	3
Other items	–	–	–	0	-5	-5	0	-5
Changes in non-controlling interests	–	–	–	–	-8	-8	8	0
Mar 31, 2022	107	20	-121	1,135	1,227	2,369	10	2,378

Condensed consolidated statement of cash flow, IFRS

EUR million	1–3/2023	1–3/2022	1–12/2022
Operating activities
Profit for the period	134	88	301
Adjustments:
Depreciation and amortization	39	38	156
Financial expenses, net	12	20	63
Income taxes	45	31	113
Other items	7	3	65
Change in net working capital	-127	-107	-377
Net cash flow from operating activities before financial items and taxes	110	74	322
Financial income and expenses paid, net	8	-26	-73
Income taxes paid	-59	-14	-121
Net cash flow from operating activities	60	33	127
Investing activities
Capital expenditures on non-current assets	-32	-25	-114
Proceeds from sale of non-current assets	6	3	10
Business acquisitions, net of cash acquired	–	–	-21
Proceeds from sale of businesses, net of cash sold	–	-2	-9
Proceeds from sale of non-current financial assets	–	–	2
Change in loan receivables, net	-1	0	1
Net cash flow from investing activities	-27	-23	-132
Financing activities
Dividends paid	–	–	-198
Proceeds from and repayments of non-current debt, net	0	-50	246
Proceeds from and repayment of current debt, net	-90	62	140
Repayment of lease liabilities	-9	-9	-35
Purchase of treasury shares	–	–	-25
Net cash flow from financing activities	-99	3	127
Net change in liquid funds	-66	13	122
Effect from changes in exchange rates	-4	14	5
Cash classified as assets held for sale	–	0	–
Liquid funds at beginning of period	601	473	473
Liquid funds at end of period	531	501	601

Key figures, IFRS

EUR million	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
Profit for the period from continuing operations	140	88	329
Earnings per share from continuing operations, EUR	0.17	0.11	0.40
Profit for the period	134	88	301
Earnings per share, EUR	0.16	0.11	0.36
Equity/share at end of period, EUR	2.99	2.86	2.84
Total number of shares at end of period (thousands)	828,972	828,972	828,972
Own shares held by Parent Company (thousands)	2,644	318	3,337
Number of outstanding shares at end of period (thousands)	826,328	828,654	825,636
Average number of outstanding shares (thousands)	825,874	828,283	827,414

EUR million	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
Net debt	673	443	684
Gearing, %	27.2 %	18.6 %	29.1 %
Equity-to-asset ratio, %	40.6 %	43.3 %	39.2 %
Debt to capital, %	30.5 %	25.7 %	33.3 %
Debt to equity, %	43.9 %	34.5 %	50.0 %
Net working capital (NWC)	709	348	596
Net debt and gearing
Borrowings	1,087	822	1,174
Lease liabilities	121	131	118
Gross debt	1,208	953	1,293
Loan receivables	4	9	8
Liquid funds	531	501	601
Net debt	673	443	684
Gearing	27.2 %	18.6 %	29.1 %

Formulas for key figures

Earnings before financial expenses, net, taxes, and amortization, adjusted (adjusted EBITA)	=	Operating profit + adjustment items + amortization
Earnings per share, basic	=	Profit attributable to shareholders Average number of outstanding shares during the period
Earnings per share, diluted	=	Profit attributable to shareholders Average number of diluted shares during the period
Equity/share	=	Equity attributable to shareholders Number of outstanding shares at the end of the period
Gearing, %	=	Net interest-bearing liabilities x 100 Total equity
Equity-to-asset ratio, %	=	Total equity x 100 Balance sheet total - advances received
Debt to capital, %	=	Interest-bearing liabilities – lease liabilities x 100 Total equity + interest-bearing liabilities – lease liabilities
Debt to equity, %	=	Interest-bearing liabilities – lease liabilities x 100 Total equity
Interest-bearing liabilities (Gross debt)	=	Interest-bearing liabilities, non-current and current + lease liabilities, non-current and current
Net interest-bearing liabilities (Net debt)	=	Interest-bearing liabilities - non-current financial assets - loan and other interest-bearing receivables (current and non-current) - liquid funds
Net working capital (NWC)	=	Inventories + trade receivables + other non-interest-bearing receivables + customer contract assets and liabilities, net - trade payables - advances received - other non-interest-bearing liabilities

Alternative Performance Measures

Metso Outotec presents certain key figures (alternative performance measures) as additional information to the financial measures presented in the consolidated statements of comprehensive income and the consolidated balance sheet and cash flows prepared in accordance with IFRS. In Metso Outotec's view, alternative performance measures provide meaningful supplemental information on its operational results, financial position and cash flows and are widely used by analysts, investors and other parties.

To improve the comparability between periods, Metso Outotec presents adjusted EBITA, being earnings before interest, tax, and amortization adjusted by capacity adjustment costs, acquisition costs, gains, and losses on business disposals as well as Metso Outotec transaction and integration costs. Their nature and net effect on cost of goods sold, selling, general and administrative expenses, as well as other income and expenses are presented in the segment information. Net debt, gearing, equity-to-asset ratio, debt-to-capital ratio, and debt-to-equity ratio are presented as complementing measures because, in Metso Outotec's view, they are useful measures of Metso Outotec's ability to obtain financing and to service its debts. Net working capital provides additional information concerning the cash flow needs of Metso Outotec's operations.

Alternative performance measures should not be viewed in isolation or as a substitute to the IFRS financial measures. All companies do not calculate alternative performance measures in a uniform manner, and therefore Metso Outotec's alternative performance measures may not be comparable with similarly named measures presented by other companies.

Notes to the Interim Report

Contents

• 1. Basis of preparation
• 1. New accounting standards
• 1. Disaggregation of sales
• 1. Financial risk management
• 1. Fair value estimation
• 1. Notional amounts of derivative instruments
• 1. Contingent liabilities and commitments
• 1. Acquisitions
• 1. Business disposals
• 1. Segment information, IFRS
• 1. Exchange rates

1. Basis of preparation

This Interim Report has been prepared in accordance with IAS 34 'Interim Financial Reporting', applying the accounting policies of Metso Outotec, which are consistent with the accounting policies of Metso Outotec Financial Statements 2022. New accounting standards have been adopted, as described in note 2. This Interim Report is unaudited.

All figures presented have been rounded; consequently, the sum of individual figures might differ from the presented total figures.

The balance sheet classification of the Waste-to-energy business was changed in 2022, and the assets and liabilities directly attributable to it have been classified as part of continuing operations. Due to the change in classification, depreciation of fixed assets and right-of-use assets continues, and the cumulative effect of depreciation has been recorded in the balance sheet of continuing operations through the income statement. All the income statement items related to the Waste-to-energy business continue to be adjusted to show the discontinued operations separately from continuing operations.

On October 28, 2020, Metso Outotec announced its decision to divest the Recycling business, and it was classified as discontinued operations. Completion of Metal Recycling business divestment was announced on June 2, 2022.

Reporting segments

Metso Outotec Group is a global supplier of sustainable technologies, end-to-end solutions, and services for the minerals processing, aggregates and metals refining industries. Metso Outotec has a broad offering in terms of equipment, solutions and various types of aftermarket services. Reportable segments of Metso Outotec are based on end-customer groups, which are differentiated both by offering and business model: Aggregates, Minerals, and Metals.

The segments are reported in a manner consistent with the internal reporting provided to the Board of Directors, Metso Outotec's chief operating decision-maker with responsibility for allocating resources and assessing the performance of the segments, deciding on strategy, selecting key employees, as well as deciding on major development projects, business acquisitions, investments, organizational structure, and financing. The accounting principles applied to the segment reporting are the same as those used in preparing the consolidated financial statements.

Aggregates offers a wide range of equipment, aftermarket parts, and services for quarries, aggregates contractors and construction companies. Minerals supplies a wide portfolio of process solutions, equipment, and aftermarket services, as well as plant delivery capability for mining operations. Metals provides sustainable solutions for processing virtually all types of ores and concentrates to refined metals. The Group Head Office and other is comprised of the Parent Company with centralized Group functions, such as treasury, tax, legal and compliance, as well as global business service centers and holding companies.

Segment performance is measured with operating profit/loss (EBIT). In addition, Metso Outotec uses alternative performance measures to reflect the underlying business performance and to improve comparability between financial periods: earnings before interest, tax, and amortization (EBITA), and adjusted net working capital. Alternative performance measures, however, should not be considered as a substitute for measures of performance in accordance with the IFRS.

2. New accounting standards

Metso Outotec has applied the revised IFRS Standards that have been effective since January 1, 2023. These amendments have not had a material impact on the reported figures.

3. Disaggregation of sales

SALES BY SEGMENT

EUR million	1–3/2023	1–3/2022	1–12/2022
Aggregates	363	329	1,446
Minerals	934	731	3,359
Metals	120	104	489
Sales	1,418	1,164	5,295

SALES BY SEGMENT

Sales	1,418	1,164	5,295
Metals	106	92	422
Minerals	369	305	1,329
Aggregates	249	216	970
Sales of projects, equipment and goods	725	613	2,721
Metals	14	12	67
Minerals	565	425	2,030
Aggregates	114	114	477
Sales of services	693	551	2,574
EUR million	1–3/2023	1–3/2022	1–12/2022

EXTERNAL SALES BY TIMING OF REVENUE RECOGNITION

EUR million	1–3/2023	1–3/2022	1–12/2022
At a point in time	1,048	802	3,740
Over time	370	361	1,554
Sales	1,418	1,164	5,295

EXTERNAL SALES BY DESTINATION

EUR million	1–3/2023	1–3/2022	1–12/2022
Europe	310	319	1,194
North and Central America	353	237	1,211
South America	271	185	915
APAC	289	240	1,185
Africa, Middle East and India	194	182	790
Sales	1,418	1,164	5,295

4. Financial risk management

As a global company, Metso Outotec is exposed to a variety of business and financial risks. Financial risks are managed centrally by Group Treasury under annually reviewed written policies approved by the Board of Directors. Treasury operations are monitored by the Treasury Management Team chaired by the CFO. Group Treasury identifies, evaluates and hedges financial risks in close cooperation with the operating units. Group Treasury functions as counterparty to the operating units, centrally manages external funding, and is responsible for the management of financial assets and appropriate hedging measures. The objective of financial risk management is to minimize potential adverse effects on Metso Outotec's financial performance.

Liquidity and refinancing risk, capital structure management

Liquidity or refinancing risk arises when a company is not able to arrange funding on terms and conditions corresponding to its creditworthiness. Sufficient cash, short-term investments, and committed and uncommitted credit facilities are maintained to protect short-term liquidity. Diversification of funding among different markets and an adequate number of financial institutions is used to safeguard liquidity. Group Treasury monitors bank account structures, cash balances and forecasts of the operating units, and manages the utilization of the consolidated cash resources.

The liquidity position of Metso Outotec remained strong. As of March 31, 2023, liquid funds, consisting of cash and cash equivalents, amounted to EUR 531 million (EUR 601 million on December 31, 2022), and there were no deposits or securities with a maturity of more than three months (EUR 0 million on December 31, 2022).

In addition, Metso Outotec has a committed syndicated revolving credit facility of EUR 600 million with a maturity in 2026. The facility includes sustainability performance targets impacting the cost of borrowing. At the end of March, the facility was undrawn. The company also has a EUR 600 million Finnish commercial paper program, which was not utilized at the end of March.

Metso Outotec has a Euro Medium Term Note Program (EMTN) of EUR 2 billion, under which EUR 762 million at carrying value was outstanding at the end of March (EUR 758 million on December 31, 2022). On March 31, 2023, the average interest rate of total loans and derivatives was 3.29%. The duration of medium- and long-term interest-bearing debt was 1.8 years and the average maturity 3.7 years.

Capital structure management in Metso Outotec comprises both equity and interest-bearing debt. As of March 31, 2023, the equity attributable to shareholders was EUR 2,469 million (EUR 2,342 million on December 31, 2022), and the amount of interest-bearing debt, excluding lease liabilities, was EUR 1,087 million (EUR 1,174 million on December 31, 2022).

Metso Outotec has as one of its key financial targets to maintain an investment-grade credit rating. Metso Outotec has 'BBB-' long-term issuer credit rating with positive outlook from S&P Global Ratings and 'Baa2' long-term issuer rating with stable outlook from Moody's Investor Service.

There are no prepayment covenants in Metso Outotec's financial contracts that would be triggered by changes in the credit rating. Covenants included in some financing agreements would only become valid if Metso Outotec's credit rating was below Investment Grade, and the covenants would be related to Metso Outotec's capital structure. Metso Outotec is in compliance with all covenants and other terms of its debt instruments.

5. Fair value estimation

For those financial assets and liabilities that have been recognized at fair value in the balance sheet, the following measurement hierarchy and valuation methods have been applied:

• Level 1 Unadjusted quoted prices in active markets at the balance sheet date. The market prices are readily and regularly available from an exchange, dealer, broker, market information service system, pricing service or regulatory agency. The quoted market price used for financial assets is the current bid price. Level 1 financial instruments include fund investments classified as fair value through profit and loss.
• Level 2 The fair value of financial instruments in Level 2 is determined using valuation techniques. These techniques utilize observable market data readily and regularly available from an exchange, dealer, broker, market information service system, pricing service or regulatory agency. Level 2 financial instruments include:
  • • Over-the-counter derivatives classified as financial assets/liabilities at fair value through profit and loss or qualified for hedge accounting
  • • Debt securities classified as financial instruments at fair value through profit and loss
  • • Fixed-rate debt under fair value hedge accounting
• Level 3 A financial instrument is categorized into Level 3 if the calculation of the fair value cannot be based on observable market data. There were no such instruments on March 31, 2023, or on December 31, 2022.

The table below presents financial assets and liabilities that are measured at fair value. There have been no transfers between fair value levels during the presented period.

	Mar 31, 2023
EUR million	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit and loss
Derivatives not under hedge accounting	–	49	–
Financial assets at fair value through other comprehensive income
Derivatives under hedge accounting	–	25	–
Total	–	74	–
Liabilities
Financial liabilities at fair value through profit and loss
Derivatives not under hedge accounting	–	24	–
Financial liabilities at fair value through other comprehensive income
Derivatives under hedge accounting	–	49	–
Total	–	72	–

		Dec 31, 2022
EUR million	Level 1	Level 2	Level 3
Assets
Financial assets at fair value through profit and loss
Derivatives not under hedge accounting	–	68	–
Financial assets at fair value through other comprehensive income
Derivatives under hedge accounting	–	21	–
Total	–	88	–
Liabilities
Financial liabilities at fair value through profit and loss
Derivatives not under hedge accounting	–	29	–
Financial liabilities at fair value through other comprehensive income
Derivatives under hedge accounting	–	51	–
Total	–	80	–

The carrying value of financial assets and liabilities other than those presented in this fair value level hierarchy table approximates their fair value. Fair values of other debt are calculated as net present values.

6. Notional amounts of derivative instruments

EUR million	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
Forward exchange rate contracts	3,831	2,720	3,540
Interest-rate swaps	425	275	425

7. Contingent liabilities and commitments

EUR million	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
Guarantees
External guarantees given by Parent and Group companies	1,643	1,680	1,546
Other commitments
Repurchase commitments	–	0	–
Other contingencies	1	1	1
Total	1,644	1,682	1,547

8. Acquisitions

There have been no acquisitions in 2023.

Metso Outotec completed the acquisition of Tesab Engineering Ltd on May 3, 2022. Tesab is a Northern Ireland-based company specializing mostly in mobile crushing equipment for aggregates applications, including quarrying, recycling, asphalt and concrete. The acquired business was consolidated into the Aggregates segment. Tesab's turnover in 2021 was approximately EUR 30 million and it employed approximately 60 people.

On September 1, 2022, Metso Outotec completed the acquisition of Global Physical Asset Management, a technology provider based in North America. The acquisition will further strengthen Metso Outotec's capabilities in digital field service inspections for grinding. The acquired business was consolidated into the Minerals segment. Global Physical Asset Management's sales in 2021 were approximately EUR 5 million and it employed approximately 20 people.

9. Business disposals

There have been no business disposals in 2023.

On June 2, 2022, Metso Outotec announced the completion of the divestment of its Metal Recycling business line to Mimir, a Swedish investment company. The sold Metal Recycling business includes the brands Lindemann and Texas Shredder. Approximately 160 employees were transferred to the new company.

10. Segment information, IFRS

ORDERS RECEIVED

EUR million	1–3/2023	1–3/2022	1–12/2022
Aggregates	379	402	1,481
Minerals	1,078	880	3,993
Metals	77	141	551
Metso Outotec total	1,533	1,424	6,024

ORDERS RECEIVED BY SERVICES BUSINESS

EUR million	1–3/2023	1–3/2022	1–12/2022
Aggregates	119	125	469
% of orders received	31.3	31.1	31.7
Minerals	725	561	2,303
% of orders received	67.2	63.8	57.7
Metals	15	25	88
% of orders received	19.5	18.0	15.9
Metso Outotec total	858	712	2,860
% of orders received	56.0	50.0	47.5

SALES

EUR million	1–3/2023	1–3/2022	1–12/2022
Aggregates	363	329	1,446
Minerals	934	731	3,359
Metals	120	104	489
Metso Outotec total	1,418	1,164	5,295

SALES BY SERVICES BUSINESS

EUR million	1–3/2023	1–3/2022	1–12/2022
Aggregates	114	114	477
% of sales	31.4	34.5	33.0
Minerals	565	425	2,030
% of sales	60.5	58.2	60.4
Metals	14	12	67
% of sales	11.5	11.6	13.7
Metso Outotec total	693	551	2,574
% of sales	48.9	47.3	48.6

ADJUSTED EBITA AND OPERATING PROFIT

EUR million, %	1–3/2023	1–3/2022	1–12/2022
Aggregates
Adjusted EBITA	66	45	213
% of sales	18.1	13.8	14.8
Amortization of intangible assets	-4	-4	-16
Adjustment items	0	2	-2
Operating profit	62	44	195
% of sales	17.0	13.5	13.5
Minerals
Adjusted EBITA	163	108	502
% of sales	17.4	14.7	15.0
Amortization of intangible assets	-11	-11	-43
Adjustment items	-3	-2	-88
Operating profit	149	94	372
% of sales	16.0	12.9	11.1
Metals
Adjusted EBITA	11	10	52
% of sales	9.1	9.2	10.7
Amortization of intangible assets	-1	-1	-5
Adjustment items	–	0	1
Operating profit	10	8	49
% of sales	8.1	7.8	10.0
Group Head Office and other
Adjusted EBITA	-24	-6	-37
Amortization of intangible assets	0	-1	-2
Adjustment items	1	-1	-73
Operating profit	-24	-8	-112
Metso Outotec total
Adjusted EBITA	215	157	731
% of sales	15.2	13.5	13.8
Amortization of intangible assets	-16	-17	-66
Adjustment items	-2	-1	-162
Operating profit	197	139	504
% of sales	13.9	12.0	9.5

ADJUSTMENT ITEMS BY CATEGORY

EUR million, %	1–3/2023	1–3/2022	1–12/2022
Capacity adjustment costs	-2	-2	-12
Acquisition costs	–	3	–
Profit and loss on disposal	–	-2	–
Wind-down of Russian business	–	–	-150
Adjustment items, total	-2	-1	-162

Quarterly segment information, IFRS

ORDERS RECEIVED

EUR million	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	379	364	351	363	402
Minerals	1,078	1,030	907	1,176	880
Metals	77	196	143	71	141
Metso Outotec total	1,533	1,590	1,401	1,610	1,424

SALES

EUR million	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	363	387	362	368	329
Minerals	934	921	896	810	731
Metals	120	125	144	117	104
Metso Outotec total	1,418	1,434	1,402	1,295	1,164

Adjusted EBITA

EUR million	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	66	63	57	48	45
Minerals	163	146	146	103	108
Metals	11	15	17	11	10
Group Head Office and other	-24	-12	-13	-6	-6
Metso Outotec total	215	212	207	155	157

Adjusted EBITA, % OF SALES

%	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	18.1	16.2	15.7	13.1	13.8
Minerals	17.4	15.8	16.3	12.7	14.7
Metals	9.1	12.1	11.7	9.3	9.2
Group Head Office and other	n/a	n/a	n/a	n/a	n/a
Metso Outotec total	15.2	14.8	14.8	12.0	13.5

AMORTIZATION OF INTANGIBLE ASSETS

EUR million	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	-4	-4	-4	-4	-4
Minerals	-11	-11	-11	-11	-11
Metals	-1	-1	-1	-1	-1
Group Head Office and other	0	-1	-1	-1	-1
Metso Outotec total	-16	-17	-16	-16	-17

ADJUSTMENT ITEMS

EUR million	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	0	-5	0	0	2
Minerals	-3	-81	-5	1	-2
Metals	–	0	1	0	0
Group Head Office and other	1	76	6	-154	-1
Metso Outotec total	-2	-10	2	-152	-1

OPERATING PROFIT

EUR million	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	62	53	53	45	44
Minerals	149	54	131	93	94
Metals	10	14	17	10	8
Group Head Office and other	-24	65	-8	-160	-8
Metso Outotec total	197	185	192	-13	139

OPERATING PROFIT, % OF SALES

%	1–3/2023	10–12/2022	7–9/2022	4–6/2022	1–3/2022
Aggregates	17.0	13.7	14.8	12.1	13.5
Minerals	16.0	5.8	14.6	11.5	12.9
Metals	8.1	11.1	11.6	8.5	7.8
Group Head Office and other	n/a	n/a	n/a	n/a	n/a
Metso Outotec total	13.9	12.9	13.7	-1.0	12.0

ORDER BACKLOG

EUR million	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022
Aggregates	553	561	610	613	606
Minerals	2,703	2,589	2,580	2,518	2,514
Metals	650	675	567	624	703
Metso Outotec total	3,906	3,825	3,757	3,756	3,823

11. Exchange rates

Currency		1–3/2023	1–3/2022	1–12/2022	Mar 31, 2023	Mar 31, 2022	Dec 31, 2022
USD	(US dollar)	1.0748	1.1196	1.0563	1.0875	1.1101	1.0666
SEK	(Swedish krona)	11.2071	10.4205	10.6258	11.2805	10.3370	11.1218
GBP	(Pound sterling)	0.8810	0.8383	0.8537	0.8792	0.8460	0.8869
CAD	(Canadian dollar)	1.4540	1.4197	1.3757	1.4737	1.3896	1.4440
BRL	(Brazilian real)	5.5549	5.8492	5.4748	5.5158	5.3009	5.6386
CNY	(Chinese yuan)	7.3802	7.0996	7.0836	7.4763	7.0403	7.3582
AUD	(Australian dollar)	1.5799	1.5443	1.5189	1.6268	1.4829	1.5693

It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties that may cause the actual results to differ materially from the results currently expected by the company.

Such factors include, but are not limited to:

(1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins,

(2) the competitive situation, especially significant technological solutions developed by competitors,

(3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement,

(4) the success of pending and future acquisitions and restructuring.

Metso Outotec's financial information in 2023

Half-Year Review for 2023 on July 20

Interim Review for January–September 2023 on October 27

Metso Outotec Corporation, Group Head Office, Töölönlahdenkatu 2, PO Box 1220, FIN-00101 Helsinki, Finland Tel. +358 20 484 100 Fax +358 20 484 101 www.mogroup.com

Metso:Outotec
. Partner for positive change .