Metso Outotec Oyj

Interim / Quarterly Report • Jul 27, 2017

OUTOTEC OYJ

HALF YEAR FINANCIAL REPORT 2017

Good development in Minerals Processing, recovery of Metals, Energy & Water pending

"Our half year order intake improved significantly from last year, reflecting a more positive market sentiment in the mining industry. Our Minerals Processing segment, whose market activity started to improve in the second quarter last year, continued to develop well and its profitability improved.

During the reporting period, our order intake increased by 34% from last year. Service order intake was up by 15% mainly due to an increase in spare parts and shutdown services. Our sales increased by 6%; the growth came from process equipment

orders in Minerals Processing. Increased sales improved our adjusted EBIT to EUR 3.5 million, but the result was weakened by lower gross margin. This was a result of sales mix, cost overruns in some project deliveries, as well as decreased sales in Metals, Energy & Water.

In the second quarter, our order intake and sales improved significantly in Minerals Processing, which together with earlier achieved cost savings more than doubled the segment's adjusted EBIT margin year-on-year from 4.1% to 8.8%. In Metals, Energy & Water, order intake, sales and adjusted EBIT declined in the second quarter. We continue actions to make this segment profitable again. The development in our new service organization was encouraging, with a 17% increase in order intake during the second quarter mainly coming from growth in spare parts and shutdown services. We will continue to further strengthen our capabilities in serving our customers and our large installed base.

During the second half of the year, market continues to offer attractive opportunities. The timing of large plant orders, however, is difficult to foresee", summarizes President & CEO Markku Teräsvasara.

Summary of key figures	Q2	Q2			Q1-Q2	Q1-Q2			Q1-Q4
EUR million	2017	2016	%1	%2	2017	2016	%1	%2	2016
Order intake	286.3	280.7	2	-1	604.6	450.9	34	30	1,007.7
Service order intake	130.8	112.2	17	11	245.9	214.1	15	9	443.3
Order backlog at end of period	1,035.6	1,017.3	2	-	1,035.6	1,017.3	2	-	1,002.1
Sales	272.2	267.6	2	-1	540.0	507.4	6	3	1,057.9
Service sales	111.0	100.2	11	7	209.7	214.3	-2	-7	447.0
Gross margin, %	22.4	26.1			22.9	25.2			22.1
Adjusted EBIT3	2.3	4.9			3.5	0.1			-23.0
Adjusted EBIT3, %	0.9	1.8			0.6	0.0			-2.2
EBIT	0.8	-0.8			-0.0	-13.0			-67.7
EBIT, %	0.3	-0.3			-0.0	-2.6			-6.4
Net cash from operating activities	-0.4	-16.1			-34.5	-49.7			-84.6
Earnings per share, EUR	-0.02	-0.03			-0.05	-0.09			-0.42

1 Change, %

2 Change in comparable currencies, %

3 Excluding restructuring and acquisition-related costs and PPA amortizations.

Financial guidance for 2017: revised on July 25

The guidance for 2017 is based on the current order backlog and market outlook as well as further cost savings.

• Sales are expected to be approximately EUR 1,100 -1,200 million, and
• Adjusted EBIT* is expected to be approximately 3 4 %

Previous guidance: The guidance for 2017 is based on the current order backlog and market outlook, as well as achieved cost savings.

• Sales are expected to be approximately EUR 1,050 -1,150 million, and
• Adjusted EBIT* is expected to be approximately 3 5%

* Excluding restructuring and acquisition-related costs, as well as purchase price allocation amortizations.

MARKET DEVELOPMENT

Metal prices, demand outlook and production levels remained positive during the first half of the year. Customers continued to focus on improving cash flow and profitability, and investments focused on optimizing existing operations. Minerals processing market continued to be active. Customer activity in Metals, Energy & Water improved from 2016 but timing of decisions regarding large investments is still difficult to foresee.

Gold, aluminum, copper, lithium and zinc projects were most active. The Middle East, and Central and South America as well as Russia were more active than other market areas. In addition, markets in South East Asia and Australia as well as Europe became more active in the second quarter. Competition remains intense.

ORDER INTAKE AND BACKLOG

The order intake during the reporting period was EUR 605 (451) million, up 34% from the comparison period. The growth was attributable to services, equipment orders in the Minerals Processing segment, and one large plant order in the Metals, Energy & Water segment during the first quarter. Service order intake was EUR 246 (214) million, up 15% from the comparison period due to growth mainly in spare parts and shutdown services.

The order intake during the second quarter was EUR 286 (281) million, up 2% from the comparison period including services as well as process equipment and small plants orders. Service order intake increased to EUR 131 (112) million, up 17% from the comparison period due to the increase mainly in spare parts and shutdown service orders.

Order intake by region, %	Q1-Q2 2017	Q1-Q2 2016	Q1-Q4 2016
EMEA	50	53	49
Americas	32	31	33
APAC	17	16	18
Total	100	100	100

Announced orders

Project/location (published)	Booked into order backlog	Value, EUR million	Segment
Copper smelter shutdown service in South America (July 17)	Q2	12	MEW
Technology and services for a greenfield gold project in West Africa (July 12)	Q2	13	MP
Technology for a lithium carbonate plant in South America (July 11)	Q2	20	MEW
Grinding technology for a greenfield gold project in Western Australia (May 11)	Q2	14	MP
Grinding and flotation technology for a copper concentrator expansion in Russia (April 19)	Q2	17	MP
Filtration plant to a copper concentrator expansion in Peru (January 19)	Q1	>15	MP
Zinc plant technology to Mexico (March 22)	Q1	24	MEW
Aluminium technology to Bahrain (April 13)	Q1	N/D	MEW

The order backlog at the end of the reporting period was EUR 1,036 (1,017) million, up 2% from the comparison period. The share of services in the order backlog totaled EUR 236 (212) million. At the end of the reporting period, Outotec had 23 (25) projects with an order backlog value in excess of EUR 10 million, accounting for 56 (62) % of the total backlog. It is estimated that roughly 48 (48) % or EUR 500 (490) million of the June-end order backlog value will be delivered in 2017.

SALES AND FINANCIAL RESULT

Sales and financial result EUR million	Q2 2017	Q2 2016	%1	%2	Q1-Q2 2017	Q1-Q2 2016	%1	%2	Q1-Q4 2016
Sales	272.2	267.6	2	-1	540.0	507.4	6	3	1,057.9
Service sales3	111.0	100.2	11	7	209.7	214.3	-2	-7	447.0
Share of service sales, %	40.8	37.5			38.8	42.2			42.3
Gross margin, %	22.4	26.1			22.9	25.2			22.1
Adjusted EBIT4	2.3	4.9			3.5	0.1			-23.0
Adjusted EBIT4, %	0.9	1.8			0.6	0.0			-2.2
- Restructuring and acquisition-related costs5	0.3	-3.9			0.2	-9.4			-37.2
- PPA amortization	-1.8	-1.8			-3.8	-3.7			-7.4
EBIT	0.8	-0.8			-0.0	-13.0			-67.7
EBIT, %	0.3	-0.3			-0.0	-2.6			-6.4
Result before taxes	-1.5	-3.1			-4.6	-17.6			-78.1
Result for the period	-1.5	-2.5			-4.1	-14.0			-69.3
Unrealized and realized exchange gains and losses6	2.7	-2.5			5.0	-1.6			-8.1

1 Change, %

2 Change in comparable currencies, %

3 Included in the sales figures of the two reporting segments.

4 Excluding restructuring and acquisition-related costs and PPA amortizations.

5 Including restructuring-related costs of EUR -0.7 (-5.3) million, acquisition-related costs of EUR -0.0 (-0.3) million, and no arbitration costs related to past acquisition (EUR -3.9 million). The reporting period also includes the positive impact of a EUR 0.9 million reduction from an earn-out payment liability related to acquisition.

6 Related to foreign exchange forward agreements and bank accounts.

Sales in the reporting period totaled EUR 540 (507) million, up 6% from the comparison period. Growth came from project deliveries in the Minerals Processing segment. Service sales decreased by 2% representing 39 (42) % of sales. The decline was due to a low order intake in shutdown and upgrade services in the second half of 2016.

Sales in the second quarter increased 2% from the comparison period. Growth was attributable mainly to increased process equipment orders in the Minerals Processing segment received in 2016 and services. Service sales increased by 11% from the comparison period, representing 41 (37) % of sales. This growth came mainly from spare parts.

Fixed costs in the reporting period – including selling and marketing, administrative, R&D and fixed delivery expenses – declined 4% (in comparable currencies -6%) from the comparison period, totaling EUR 137 (143) million, or 25 (28)% of sales.

Adjusted EBIT in the reporting period and in the second quarter was positively impacted by increased sales. Negative impacts came from sales mix, cost overruns in some project deliveries, as well as decreased sales in Metals, Energy & Water.

The result before taxes for the reporting period was EUR -5 (-18) million, including net finance expenses of EUR 5 (5) million due to interest costs and the valuation of foreign exchange forward agreements. The net result was EUR -4 (-14) million. The net impact from taxes totaled EUR 1 (4) million positive. Earnings per share totaled EUR -0.05 (-0.09).

Minerals Processing	Q2	Q2			Q1-Q2	Q1-Q2			Q1-Q4
EUR million	2017	2016	%1	%2	2017	2016	%1	%2	2016
Order intake	176.3	156.2	13	9	322.7	260.6	24	18	626.7
Sales	169.4	119.3	42	37	322.8	231.8	39	33	539.5
Service sales	73.3	60.3	22	17	141.6	124.7	14	7	283.1
Adjusted EBIT3	14.9	4.8			26.2	9.8			37.1
Adjusted EBIT3, %	8.8	4.1			8.1	4.2			6.9
PPAs	-0.8	-0.8			-1.6	-1.6			-3.3
Restructuring and acquisition-related
costs	0.3	-0.7			-0.0	-5.2			-12.2
EBIT	14.4	3.3			24.6	3.0			21.6
EBIT, %	8.5	2.8			7.6	1.3			4.0
Unrealized and realized exchange
gains and losses4	1.7	-1.9			1.4	-0.1			-3.8

MINERALS PROCESSING

1 Change, %

2 Change in comparable currencies, % 3 Excluding restructuring and acquisition-related costs and PPA amortizations

4 Related to foreign exchange forward agreements and bank accounts

In the reporting period, the order intake in the Minerals Processing segment grew 24% from the comparison period, mainly due to increased plant and equipment orders as well as spare parts. The segment's sales increased by 39% due to increased plant and process equipment orders in 2016. Higher sales improved the segment's profitability.

METALS, ENERGY & WATER

Metals, Energy & Water	Q2	Q2			Q1-Q2	Q1-Q2			Q1-Q4
EUR million	2017	2016	%1	%2	2017	2016	%1	%2	2016
Order intake	110.0	124.5	-12	-14	281.8	190.3	48	46	381.0
Sales	102.8	148.3	-31	-31	217.1	275.5	-21	-22	518.4
Service sales	37.7	39.9	-6	-8	68.1	89.6	-24	-26	163.9
Adjusted EBIT3	-10.5	1.5			-19.3	-7.1			-55.0
Adjusted EBIT3, %	-10.3	1.0			-8.9	-2.6			-10.6
PPAs	-1.1	-1.0			-2.2	-2.1			-4.2
Restructuring and acquisition-related
costs	-0.0	-1.6			0.3	-2.1			-22.9
EBIT	-11.6	-1.1			-21.3	-11.3			-82.1
EBIT, %	-11.3	-0.7			-9.8	-4.1			-15.8
Unrealized and realized exchange
gains and losses4	1.0	-0.6			3.6	-1.5			-4.0

1 Change, %

2 Change in comparable currencies, %

3 Excluding restructuring and acquisition-related costs and PPA amortizations

4 Related to foreign exchange forward agreements and bank accounts

In the reporting period, the order intake in the Metals, Energy & Water segment increased by 48% from the comparison period, mainly due to increased plant orders. Service orders remained approximately at the previous year's level. The segment's sales declined by 21%, due to low order intake in plant as well as shutdown and upgrade services in the second half of 2016. Lower sales and utilization rates weakened the segment's profitability.

BALANCE SHEET, FINANCING AND CASH FLOW

Balance sheet, financing and cash flow EUR million	Q2 2017	Q2 2016	Q1-Q2 2017	Q1-Q2 2016	Q1-Q4 2016
Net cash from operating activities	-0.4	-16.1	-34.5	-49.7	-84.6
Net interest-bearing debt at end of period 1	56.8	-49.8	56.8	-49.8	-4.5
Equity at end of period	474.9	539.7	474.9	539.7	498.1
Gearing at end of period, % 1	12.0	-9.2	12.0	-9.2	-0.9
Equity-to-assets ratio at end of period, % 1	39.9	41.7	39.9	41.7	40.0
Working capital at end of period	35.3	-36.5	35.3	-36.5	-23.5

1 If the hybrid bond were treated as a liability, the net interest-bearing debt would be EUR 206.8 million, gearing 63.7%, and the equityto-assets ratio 27.3% on June 30, 2017 (June 30, 2016: EUR 100.2 million, 25.7% and 30.1% respectively).

The consolidated balance sheet total on June 30, 2017 was EUR 1,361 (1,500) million. Equity attributable to shareholders of the parent company totaled EUR 472 (537) million, representing EUR 2.60 (2.96) per share. During the comparison period, Outotec issued a EUR 150 million hybrid bond. During the reporting period, equity was impacted by translation differences of EUR - 16 (4) million, hybrid bond interest net of tax of EUR -9 (no interest) million and net result of EUR - 4 (-14) million.

Outotec's cash and cash equivalents at the end of the reporting period totaled EUR 193 (299) million. Net cash flow from operating activities was EUR -35 (-50) million, mainly due to the mature order backlog and low level of advance payments. Advance and milestone payments received at the end of the reporting period came to EUR 171 (207) million. Advance and milestone payments to subcontractors totaled EUR 43 (46) million. During the reporting period, Outotec paid EUR 11

million in hybrid bond annual interest. The drawdown of the hybrid bond (EUR 150 million) during the comparison period had a positive impact on cash and cash equivalents.

Net interest-bearing debt on June 30, 2017 was EUR 57 (-50) million and gearing was 12 (-9) %. Outotec's equity-to-assets ratio was 40 (42) %. The company's capital expenditure, related mainly to IT programs and IPRs, totaled EUR 9 (12) million during the reporting period.

Including advance payment guarantees issued by the parent and other Group companies at the end of the reporting period, guarantees for commercial commitments totaled EUR 596 (462) million.

RESEARCH & DEVELOPMENT

During the reporting period, Outotec's research and development expenses represented 5 (6) % of sales.

R&D	Q1-Q2 2017	Q1-Q2 2016	Q1-Q4 2016
R&D expenses, EUR million	27	31	55
New priority applications filed	18	27	57
New national patents granted	356	218	630
Number of patent families	780	772	786
Number of national patents or patent applications	6,821	6,485	6,772

Product launches

Outotec's new 7-Axis Beam Mill Reline Machines set a new benchmark for safety and are the only mill reline machines on the market that fully comply with the European Machinery Directive.

Outotec launched a new mobile application in April which provides immediate feedback from equipment inspections. The app allows technicians to capture all relevant technical data and images. After inspection, a preliminary report can be sent immediately to the customer.

PERSONNEL

At the end of the reporting period, Outotec had a total of 4,170 (4,298) employees. During the reporting period, it had an average of 4,153 (4,478) employees. Temporary personnel accounted for 7 (6) % of the total.

Personnel by region	June 30,	June 30,	Change	December 31,
	2017	2016		2016
EMEA	2,787	2,858	-71	2,824
Americas	825	861	-36	801
APAC	558	579	-21	567
Total	4,170	4,298	-128	4,192

At the end of the reporting period, the company had, in addition to its own personnel, 354 (319) full-time equivalent, contracted professionals working in project execution.

Salaries and other employee benefits during the reporting period totaled EUR 173 (171) million.

OTHER MAIN ANNOUNCEMENTS AND EVENTS IN H1/2017

April 7: Changes to Outotec's own shares related to the payment of the free shares under the Employee Share Savings Plan for the 2014 savings period.

March 29: Outotec's sustainability report 2016 'Resource efficiency to the forefront' published.

January 20: Announcement of the appointment of Mr. Adel Hattab as Executive Vice President, Strategic Customers and Business Development as of April 1, 2017.

Outotec Executive Board as of April 1, 2017:

• Markku Teräsvasara, President and CEO
• Kalle Härkki, Executive Vice President, President of Metals, Energy & Water
• Kimmo Kontola, Executive Vice President, President of Minerals Processing
• Markku Teräsvasara (acting), Executive Vice President, President of Services
• Adel Hattab, Executive Vice President, Strategic Customers and Business Development
• Jari Ålgars, Chief Financial Officer
• Kaisa Aalto-Luoto, Senior Vice President, Human Resources & Communications
• Nina Kiviranta, Senior Vice President, General Counsel
• Olli Nastamo, Senior Vice President, Operational Excellence

January 18: Announcement that for the fifth consecutive year Outotec was included in the Global 100 Index of most sustainable companies in the world (rank 90th).

January 9: Announcement that Outotec had settled a patent dispute with Outokumpu regarding ferroalloys technology inventions.

SHORT-TERM RISKS AND UNCERTAINTIES

Major investments continue to develop slowly and new investments may be delayed or existing projects may be put on hold or cancelled. There is also a continued risk of credit losses, especially in receivables from emerging markets. Any uncertainty in China's economical outlook may impact metals demand and prices.

Outotec has identified a risk of disputes related to project execution, which may result in extra costs and/or penalties. In the contracts related to the delivery of major projects, the liquidated damages attributable to, for instance, delayed delivery or non-performance may be significant. In particular, Outotec has identified a significant risk of claims and credit losses related to a few large projects in the Metals, Energy & Water segment. If the project risks materialized in full, they could have a material impact on Outotec's financial results and could lead to decreasing headroom under financial covenants related to the capital structure and liquidity.

Risks related to Outotec's business operations are high in certain markets such as the Middle East, Russia, and Turkey. The geopolitical situation, sanctions, uncertainties around Brexit, security situation or economic conditions may change rapidly and cause ongoing projects to be delayed, suspended or cancelled, or completely prevent Outotec from operating in these areas. This may result in a material impact on Outotec's assets.

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

More information about Outotec's business risks and risk management is available in the Notes to the Financial Statements, as well as on the company's website at www.outotec.com/investors.

MARKET OUTLOOK

Investments in minerals processing are expected to follow the industry's production levels, with continued emphasis on optimizing existing operations. This will provide opportunities for process optimization, smaller equipment deliveries, and services. Copper, zinc and gold projects are likely to continue most active, but also other base metals projects are becoming more active.

The Metals, Energy & Water segment's wide technology portfolio provides opportunities in a number of end markets. In terms of commodities, copper, zinc, lithium and gold as well as sulfuric acid projects are most active. Small plant upgrades are also expected to materialize. There are opportunities in energy; however, investments are often linked to regional and geopolitical needs. The timing of large plant investments continue to be difficult to foresee.

Financial guidance for 2017: revised on July 25

The guidance for 2017 is based on the current order backlog and market outlook as well as further cost savings.

• Sales are expected to be approximately EUR 1,100–1,200 million, and
• Adjusted EBIT* is expected to be approximately 3–4%

Previous guidance: The guidance for 2017 is based on the current order backlog and market outlook, as well as achieved cost savings.

• Sales are expected to be approximately EUR 1,050–1,150 million, and
• Adjusted EBIT* is expected to be approximately 3–5%

* Excluding restructuring and acquisition-related costs, as well as purchase price allocation amortizations.

Espoo, July 27, 2017

Outotec Oyj Board of Directors

Consolidated statement of comprehensive income EUR million	Q2 2017	Q2 2016	Q1-Q2 2017	Q1-Q2 2016	Q1-Q4 2016
Sales	272.2	267.6	540.0	507.4	1,057.9
Cost of sales	-211.3	-197.9	-416.2	-379.4	-824.6
Gross profit	61.0	69.7	123.7	128.0	233.3
Other income	3.2	0.4	6.6	0.6	1.2
Selling and marketing expenses	-28.9	-31.4	-61.4	-58.6	-114.8
Administrative expenses	-20.6	-19.4	-40.1	-41.2	-85.5
Research and development expenses	-13.8	-13.5	-27.4	-30.6	-55.2
Other expenses	-0.2	-6.5	-1.4	-11.0	-46.4
Share of results of associated companies	0.1	0.0	0.0	-0.2	-0.4
EBIT	0.8	-0.8	-0.0	-13.0	-67.7
Finance income and expenses
Interest income and expenses	-0.7	-0.9	-1.7	-2.2	-4.2
Market price gains and losses	-0.8	-0.6	-1.4	-1.0	-3.6
Other finance income and expenses	-0.8	-0.8	-1.4	-1.4	-2.6
Net finance income or expense	-2.3	-2.3	-4.6	-4.6	-10.4
Result before income taxes	-1.5	-3.1	-4.6	-17.6	-78.1
Income taxes	0.1	0.6	0.6	3.6	8.8
Result for the period	-1.5	-2.5	-4.1	-14.0	-69.3
Other comprehensive income
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit obligations	1.8	-4.0	-1.1	-7.6	-0.6
Income tax relating to items that will not be reclassified to profit or loss	-0.6	1.2	0.3	2.2	0.2
Items that may be subsequently reclassified to profit or loss
Exchange differences on translating foreign operations	-18.3	6.8	-15.6	4.0	14.4
Cash flow hedges	3.4	-0.7	7.0	0.7	-1.6
Available for sale financial assets	0.0	0.0	0.0	0.1	0.1
Income tax relating to items that may be reclassified to profit or loss	-0.6	0.2	-1.6	-0.2	0.4
Other comprehensive income for the period	-14.2	3.4	-11.0	-0.8	12.8
Total comprehensive income for the period	-15.7	0.9	-15.1	-14.8	-56.5
Result for the period attributable to:
Equity holders of the parent company	-1.4	-2.6	-4.0	-14.2	-69.6
Non-controlling interest	-0.1	0.0	-0.0	0.2	0.3
Total comprehensive income for the period attributable to:
Equity holders of the parent company	-15.6	0.9	-15.0	-15.0	-56.9
Non-controlling interest	-0.1	0.0	-0.0	0.2	0.4
Earnings per share for result attributable to the equity
holders of the parent company:
Basic earnings per share, EUR	-0.02	-0.03	-0.05	-0.09	-0.42
Diluted earnings per share, EUR	-0.02	-0.03	-0.05	-0.09	-0.42

CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

All figures in the tables have been rounded to the nearest whole number and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.

Condensed consolidated statement of financial position	June 30,	June 30,	December 31,
EUR million	2017	2016	2016
ASSETS
Non-current assets
Intangible assets	372.4	400.4	386.3
Property, plant and equipment	58.8	69.0	65.9
Deferred tax asset	102.7	95.9	92.7
Non-current financial assets
Interest-bearing	3.8	3.6	3.6
Non-interest-bearing	7.3	9.2	8.0
Total non-current assets	545.1	578.2	556.4
Current assets
Inventories1	219.1	208.3	210.0
Current financial assets
Interest-bearing	0.1	0.0	0.1
Non-interest-bearing	403.4	414.4	427.5
Cash and cash equivalents	193.0	299.1	233.0
Total current assets	815.6	921.8	870.6
TOTAL ASSETS	1,360.7	1,500.0	1,427.0
EQUITY AND LIABILITIES
Equity
Share capital	17.2	17.2	17.2
Retained earnings	223.2	292.3	237.1
Hybrid bond	150.0	150.0	150.0
Other components of equity	81.3	77.0	90.5
Equity attributable to the equity holders of the parent	471.7	536.6	494.8
company
Non-controlling interest	3.2	3.1	3.3
Total equity	474.9	539.7	498.1
Non-current liabilities
Interest-bearing	183.7	228.3	183.7
Deferred tax liabilities	40.9	46.7	34.9
Non-interest-bearing	67.7	75.8	68.6
Total non-current liabilities	292.3	350.8	287.3
Current liabilities
Interest-bearing	65.6	18.1	43.1
Non-interest-bearing
Advances received2	170.8	206.9	180.7
Other non interest-bearing liabilities	357.2	384.5	417.8
Total current liabilities	593.5	609.5	641.6
Total liabilities	885.8	960.3	928.9
TOTAL EQUITY AND LIABILITIES	1,360.7	1,500.0	1,427.0

1 Of which advances paid for inventories amounted to EUR 43.1 million at June 30, 2017 (June 30, 2016: EUR 46.0 million, December 31, 2016: EUR 52.5 million).

2 Gross advances received before percentage of completion revenue recognition amounted to EUR 1,442.6 million at June 30, 2017 (June 30, 2016: EUR 1,544.9 million, December 31, 2016: EUR 1,446.2 million).

Condensed consolidated statement of cash flows	Q1-Q2	Q1-Q2	Q1-Q4
EUR million	2017	2016	2016
Cash flows from operating activities
Result for the period	-4.1	-14.0	-69.3
Adjustments for
Depreciation and amortization	21.0	20.8	42.6
Other adjustments	9.1	15.2	20.5
Decrease (+)/Increase (-) in working capital	-57.9	-65.6	-66.8
Interest received	1.6	1.7	4.8
Interest paid	-2.4	-1.4	-9.9
Income tax paid	-2.0	-6.4	-6.4
Net cash from operating activities	-34.5	-49.7	-84.6
Purchases of assets	-9.3	-11.2	-21.7
Acquisition of subsidiaries and business operations, net of cash	-0.2	-2.9	-3.0
Acquisition of shares in associate companies	-	-0.0	-0.0
Proceeds from sale of assets	1.4	1.5	1.8
Cash flows from other investing activities	-0.2	-0.0	0.0
Net cash used in investing activities	-8.3	-12.6	-22.9
Cash flow before financing activities	-42.8	-62.3	-107.5
Repayments of non-current debt	-3.7	-63.8	-111.5
Decrease in current debt	-4.2	-27.7	-35.6
Increase in current debt	29.0	0.6	30.1
Hybrid bond	-	150.0	150.0
Interest paid on hybrid bond	-11.1	-	-
Cash flows from other financing activities	-0.4	-1.1	-0.9
Net cash used in financing activities	9.7	58.1	32.1
Net change in cash and cash equivalents	-33.1	-4.2	-75.5
Cash and cash equivalents at beginning of period	233.0	300.7	300.7
Foreign exchange rate effect on cash and cash equivalents	-6.8	2.5	7.8
Net change in cash and cash equivalents	-33.1	-4.2	-75.5
Cash and cash equivalents at end of period	193.0	299.1	233.0

Consolidated statement of changes in equity

	Attributable to the equity holders of the parent company
EUR million	Share capital	Share premium fund	Fair value and other reser ves	Trea sury shares	Reserve for invested non restricted equity	Hybrid bond	Cumula -tive trans lation differ rences	Retained earnings	Total equity attribu table to equity holders of parent company	Non cont rolling interest	Total equity
Equity at January 1, 2016	17.2	20.2	-14.2	-17.4	93.8	-	-8.1	310.3	401.8	2.9	404.7
Proceeds from hybrid bond	-	-	-	-	-	150.0	-	-	150.0	-	150.0
Hybrid bond expenses	-	-	-	-	-	-	-	-0.7	-0.7	-	-0.7
Share-based compensation	-	-	-	1.6	1.9	-	-	-2.8	0.7	-	0.7
Total comprehen sive income for the period	-	-	-4.8	-	-	-	4.0	-14.2	-15.0	0.2	-14.8
Other changes	-	-	-	-	-	-	-	-0.2	-0.2	-	-0.2
Equity at June 30, 2016	17.2	20.2	-19.0	-15.8	95.7	150.0	-4.1	292.3	536.6	3.1	539.7
Equity at January 1, 2017	17.2	20.2	-15.7	-15.9	95.7	150.0	6.2	237.1	494.8	3.3	498.1
Hybrid bond interest (net of tax)	-	-	-	-	-	-	-	-8.9	-8.9	-	-8.9
Share-based compensation	-	-	-	0.8	0.9	-	-	-1.1	0.6	-	0.6
Total comprehen sive income for the period	-	-	4.6	-	-	-	-15.6	-4.0	-15.0	-0.1	-15.0
Equity at June 30, 2017	17.2	20.2	-11.1	-15.0	96.6	150.0	-9.4	223.2	471.7	3.2	474.9

Key figures	Q2	Q2	Q1-Q2	Q1-Q2	Last 12	Q1-Q4
	2017	2016	2017	2016	months	2016
Order intake, EUR million	286.3	280.7	604.6	450.9	1,161.4	1,007.7
Service order intake, EUR million	130.8	112.2	245.9	214.1	475.1	443.3
Share of service in order intake, %	45.7	40.0	40.7	47.5	40.9	44.0
Order backlog at end of period, EUR million	1,035.6	1,017.3	1,035.6	1,017.3	1,035.6	1,002.1
Sales, EUR million	272.2	267.6	540.0	507.4	1,090.5	1,057.9
Service sales, EUR million	111.0	100.2	209.7	214.3	442.4	447.0
Share of service in sales, %	40.8	37.5	38.8	42.2	40.6	42.3
Gross margin, %	22.4	26.1	22.9	25.2	21.0	22.1
Adjusted EBIT1, EUR million	2.3	4.9	3.5	0.1	-19.6	-23.0
Adjusted EBIT1, %	0.9	1.8	0.6	0.0	-1.8	-2.2
EBIT, EUR million	0.8	-0.8	-0.0	-13.0	-54.7	-67.7
EBIT, %	0.3	-0.3	-0.0	-2.6	-5.0	-6.4
Result before taxes, EUR million	-1.5	-3.1	-4.6	-17.6	-65.1	-78.1
Result before taxes in relation to sales, %	-0.6	-1.2	-0.9	-3.5	-6.0	-7.4
Result for the period in relation to sales, %	-0.5	-0.9	-0.8	-2.8	-5.4	-6.6
Earnings per share, EUR	-0.02	-0.03	-0.05	-0.09	-0.38	-0.42
Net cash from operating activities, EUR million	-0.4	-16.1	-34.5	-49.7	-69.4	-84.6
Net interest-bearing debt at end of period, EUR million 2	56.8	-49.8	56.8	-49.8	56.8	-4.5
Gearing at end of period2, %	12.0	-9.2	12.0	-9.2	12.0	-0.9
Equity-to-assets ratio at end of period2, %	39.9	41.7	39.9	41.7	39.9	40.0
Equity at the of the period	474.9	539.7	474.9	539.7	474.9	498.1
Equity per share, EUR	2.60	2.96	2.60	2.96	2.60	2.73
Working capital at the of period, EUR million	35.3	-36.5	35.3	-36.5	35.3	-23.5
Capital expenditure, EUR million	4.9	5.0	9.4	12.2	18.8	21.6
Capital expenditure in relation to sales, %	1.8	1.9	1.7	2.4	1.7	2.0
Research and development expenses, EUR million	13.8	13.5	27.4	30.6	52.1	55.2
Research and development expenses in relation to sales, %	5.1	5.0	5.1	6.0	4.8	5.2
Return on investment, %, LTM	-7.9	-3.9	-7.9	-3.9	-7.9	-9.4
Return on equity, %, LTM	-11.7	-7.3	-11.7	-7.3	-11.7	-15.4
Personnel at end of period	4,170	4,298	4,170	4,298	4,170	4,192

1 Excluding restructuring and acquisition-related costs and PPA amortizations.

2 If the hybrid bond were treated as a liability, the net interest-bearing debt would be EUR 206.8 million, gearing 63.7%, and the equityto-assets ratio 27.3% on June 30, 2017 (June 30, 2016: EUR 100.2 million, 25.7% and 30.1% respectively).

Definitions for key financial figures

Net interest-bearing debt	=	Interest-bearing debt - interest-bearing assets
Gearing	=	Net interest-bearing debt Total equity	× 100
Equity-to-assets ratio	=	Total equity Total assets - advances received	× 100
Return on investment	=	EBIT + finance income Total assets – non-interest-bearing debt (average for the period)	× 100
Return on equity	=	Result for the period Total equity (average for the period)	× 100
Research and development expenses	=	Research and development expenses in the statement of comprehensive income (including expenses covered by grants received)
Earnings per share	=	Result for the period attributable to the equity holders of the parent company – hybrid bond interest Average number of shares during the period
Diluted earnings per share	=	Result for the period attributable to the equity holders of the parent company – hybrid bond interest Diluted average number of shares during the period
Dividend per share	=	Dividend for the financial year Number of shares at end of period
Adjusted EBIT (aEBIT)	=	EBIT excluding (but not limited to) restructuring related transactions, costs related to mergers and acquisitions, purchase price allocation amortizations, and goodwill impairments
Comparable currencies, some key figures	=	Reporting period's figures converted using foreign exchange rates from the comparison period
Working capital	=	Other non-current assets + Inventories + Trade and other receivables + Project related receivables + Derivatives (assets) - Provisions - Trade and other payables - Net advances received - Other project liabilities - Derivatives (liabilities)

NOTES TO THE STATEMENT OF COMPREHENSIVE INCOME AND FINANCIAL POSITION

These Interim Financial Statements are prepared in accordance with IAS 34 Interim Financial Reporting. In these Interim Financial Statements, the same accounting policies and methods have been applied as in the latest Annual Financial Statements. These Interim Financial Statements are unaudited.

The following new standards and interpretations have been published, but they are not effective in 2017, nor has Outotec early-adopted them:

IFRS 9 – Financial Instruments:

• The new standard replaces the current standard IAS 39 Financial Instruments: Recognition and measurement. It addresses the classification, measurement and recognition of financial assets and financial liabilities. Based on IFRS 9, financial assets are required to be classified into three measurement categories: amortized cost, fair value through other comprehensive income, or fair value through profit or loss. The determination is made at initial recognition. The classification depends on the entity's business model for managing its financial instruments and the contractual cash flow characteristics of the instrument. The standard also changes the recognition of impairment losses and the application of hedge accounting.
• Outotec is assessing the impact of IFRS 9 and intends to fully adopt it in 2018.
• The Group is not expecting categorization of financial assets to significantly affect the income statement or balance sheet. The Group has paid attention especially to the amendments in applying hedge accounting. The changes are expected to at least moderately improve the applicability of foreign exchange cash flow hedge accounting in Outotec's business operations and therefore to some extent decrease volatility in the income statement. The changes to hedge accounting are not expected to significantly affect the balance sheet.
• The Group has established a model for evaluating credit losses under IFRS 9. This model is not expected to have a significant impact on the income statement or balance sheet.

IFRS 15 – Revenue from Contracts with Customers:

• The new standard aims to establish principles for reporting useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity's contracts with its customers. It replaces the IAS 18 and IAS 11 standards and related interpretations. The new standard includes a five-step procedure for recognizing revenue from contracts with customers.
• Outotec is assessing the impact of IFRS 15 and intends to adopt it in 2018. Outotec expects to transition to the new standard with the full retrospective method. The Group has especially paid attention to the identification of performance obligations and the criteria for the recognition of revenue over time.
• Based on the impact analysis, management's current understanding is that there will be no significant impact on the Group's income statement and balance sheet. Management has assessed certain scenarios during the evaluation project. These scenarios mainly relate to combining contracts, identifying performance obligations, evaluating variable considerations, and defining the method for revenue recognition. The new standard will, to

some extent, even out margin recognition over time, because of combining contracts. Certain customer contracts that are currently recognized as revenue over time, would be recognized at a point in time, according to IFRS 15. However, the current understanding is that these changes will not have significant impact on the income statement or balance sheet.

IFRS 16 – Leases

The new standard requires lessees to recognize assets and liabilities for most leases. Leases will no longer be classified as operating leases or finance leases, and all leases will have a single accounting model with certain exemptions. There are no major changes for lessors. The new standard replaces the IAS 17 standard and related interpretations. Outotec is planning to assess the impacts of the standard and intends to adopt it in 2019.

Use of estimates

IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of income and expenses in the reporting period. Accounting estimates are employed in the financial statements to determine reported amounts, including the realizability of certain assets, the useful lives of tangible and intangible assets, income taxes, provisions, pension obligations, and the impairment of goodwill. These estimates are based on the management's best knowledge of current events and actions; however, it is possible that the actual results may differ from the estimates used in the financial statements.

Restructuring and acquisition costs	Q1-Q2	Q1-Q2	Q1-Q4
EUR million	2017	2016	2016
Personnel-related restructuring costs	-1.0	-3.8	-18.8
Impairments on non-current assets	0.0	-0.9	-10.7
Other restructuring related costs	0.3	-0.6	-1.9
Total costs related to restructuring	-0.7	-5.3	-31.3
Costs related to acquisitions	-0.0	-0.3	-1.5
Reversal of earn-out liability from acquisitions	0.9	-	-
Arbitration cost related to past acquisitions	-	-3.9	-4.4
Total restructuring and acquisition costs 1	0.2	-9.4	-37.2
Restructuring and acquisition costs are allocated to:
Minerals Processing	-0.0	-5.2	-12.2
Metals, Energy & Water	0.3	-2.1	-22.9
Unallocated items	-0.0	-2.0	-2.1

1 Excluded from adjusted EBIT.

Income taxes	Q1-Q2	Q1-Q2	Q1-Q4
EUR million	2017	2016	2016
Current taxes	-4.4	-6.2	-10.4
Deferred taxes	5.0	9.8	19.2
Total income taxes	0.6	3.6	8.8

Property, plant and equipment	June 30,	June 30,	December 31,
EUR million	2017	2016	2016
Historical cost at beginning of period	155.5	170.5	170.5
Translation differences	-2.7	0.7	2.6
Additions	4.0	2.1	6.2
Disposals	-2.5	-4.4	-5.3
Reclassifications	-0.0	-0.0	-0.1
Impairment during the period	-3.4	-14.7	-18.3
Historical cost at end of period	150.9	154.3	155.5
Accumulated depreciation and impairment at beginning of period	-89.7	-87.5	-87.5
Translation differences	1.1	-0.3	-0.9
Disposals	1.7	3.1	3.6
Reclassifications	0.0	-0.1	0.2
Depreciation during the period	-6.7	-7.3	-14.6
Impairment during the period	1.5	6.8	9.5
Accumulated depreciation and impairment at end of period	-92.1	-85.2	-89.7
Carrying value at the end of the period	58.8	69.0	65.9

Commitments and contingent liabilities	June 30,	June 30,	December 31,
EUR million	2017	2016	2016
Guarantees for commercial commitments	494.6	355.9	434.3
Minimum future lease payments on operating leases	99.9	114.3	105.6

No securities or collateral have been pledged. Commercial guarantees are related to performance obligations of project and equipment deliveries. These are issued by financial institutions or Outotec Oyj on behalf of Group companies. The total value of commercial guarantees above does not include advance payment guarantees issued by the parent or other Group companies, nor guarantees for financial obligations. The total amount of guarantees for financing issued by Group companies amounted to EUR 7.4 million at June 30, 2017 (June 30, 2016: EUR 11.0 million, December 31, 2016: EUR 13.6 million) and for commercial commitments including advance payment guarantees EUR 595.9 million at June 30, 2017 (June 30, 2016: EUR 461.5 million, December 31, 2016: EUR 551.2 million). High exposure of on-demand guarantees may increase the risk of claims that may have an impact on the liquidity of Outotec.

Derivative instruments

Currency and interest derivatives	June 30,	June 30,	December 31,
EUR million	2017	2016	2016
Fair values, net	9.3	0.0	-0.5
of which designated as cash flow hedges from currency derivatives	2.0	-2.5	-3.2
of which designated as cash flow hedges from interest derivatives	-	-0.1	-
of which designated as fair value hedge from interest derivatives	4.5	6.4	5.3
Nominal values	587.4	518.0	646.2

Carrying amounts of financial assets and liabilities by category

June 30, 2017

				Financial
	Financial			liabilities	Deriv	Financial	Carrying
	assets at			at fair	atives	liabilities	amounts
	fair value	Loans	Available	value	under	measured	by
	through	and	for-sale	through	hedge	at	balance
EUR million	profit or loss	receiv ables	financial assets	profit or loss	account ing	amortized cost	sheet item	Fair value
Non-current financial assets
Derivative assets
- foreign exchange forward
contracts	0.1	-	-	-	0.0	-	0.1	0.1
- interest rate swaps	-	-	-	-	4.5	-	4.5	4.5
Other shares and securities	-	-	2.3	-	-	-	2.3	2.3
Trade and other receivables
- interest-bearing	-	1.5	-	-	-	-	1.5	1.5
- non-interest-bearing	-	0.0	-	-	-	-	0.0	0.0
Current financial assets
Derivative assets
- foreign exchange forward contracts	6.6	-	-	-	2.3	-	8.9	8.9
Trade and other receivables
- interest-bearing	-	0.1	-	-	-	-	0.1	0.1
- non-interest-bearing	-	393.3	-	-	-	-	393.3	393.3
Cash and cash equivalents	-	193.0	-	-	-	-	193.0	193.0
Carrying amount by category	6.7	588.0	2.3	-	6.8	-	603.8	603.8
Non-current financial liabilities
Bonds	-	-	-	-	-	149.1	149.1	152.2
Loans from financial institutions	-	-	-	-	-	32.7	32.7	34.0
Finance lease liabilities	-	-	-	-	-	0.0	0.0	0.0
Derivative liabilities - foreign exchange forward	-	-	-	0.0	0.0	-	0.0	0.0
contracts
Other non-current loans	-	-	-	-	-	1.8	1.8	1.8
Other non-current liabilities	-	-	-	-	-	1.8	1.8	1.8
Current financial liabilities
Loans from financial	-	-	-	-	-	7.4	7.4	8.2
institutions Financial lease liabilities	-	-	-	-	-	0.0	0.0	0.0
Derivative liabilities
- foreign exchange forward
contracts	-	-	-	3.9	0.4	-	4.3	4.3
Other current loans	-	-	-	-	-	58.1	58.1	58.1
Trade payables	-	-	-	-	-	87.2	87.2	87.2
Carrying amount by	-	-	-	3.9	0.4	338.2	342.5	347.6

Carrying amounts of financial assets and liabilities by category

December 31, 2016

	Financial
	assets at			Financial		Financial
	fair value		Available	liabilities at	Derivatives	liabilities	Carrying
	through profit or	Loans and	for-sale financial	fair value through	under hedge	measured at amortized	amounts by balance
EUR million	loss	receivables	assets	profit or loss	accounting	cost	sheet item	Fair value
Non-current financial assets
Derivative assets
- foreign exchange forward
contracts	0.0	-	-	-	-	-	0.0	0.0
- interest rate swaps	-	-	-	-	5.3	-	5.3	5.3
Other shares and securities	-	-	2.3	-	-	-	2.3	2.3
Trade and other receivables
- interest-bearing	-	1.3	-	-	-	-	1.3	1.3
- non-interest-bearing	-	0.0	-	-	-	-	0.0	0.0
Current financial assets
Derivative assets
- foreign exchange forward
contracts	3.7	-	-	-	0.1	-	3.8	3.8
Trade and other receivables
- interest-bearing	-	0.1	-	-	-	-	0.1	0.1
- non-interest-bearing	-	423.7	-	-	-	-	423.7	423.7
Cash and cash equivalents	-	233.0	-	-	-	-	233.0	233.0
Carrying amount by category	3.7	658.2	2.3	-	5.4	-	669.6	669.6
Non-current financial liabilities
Bonds	-	-	-	-	-	149.0	149.0	151.2
Loans from financial institutions	-	-	-	-	-	32.7	32.7	34.4
Finance lease liabilities	-	-	-	-	-	0.0	0.0	0.0
Derivative liabilities
- foreign exchange forward contracts	-	-	-	0.1	1.1	-	1.2	1.2
Other non-current loans	-	-	-	-	-	2.0	2.0	2.0
Other non-current liabilities	-	-	-	-	-	1.6	1.6	1.6
Current financial liabilities
Loans from financial
institutions	-	-	-	-	-	12.9	12.9	13.7
Finance lease liabilities	-	-	-	-	-	0.0	0.0	0.0
Derivative liabilities
- foreign exchange forward
contracts	-	-	-	6.2	2.2	-	8.4	8.4
Other current loans	-	-	-	-	-	30.2	30.2	30.2
Trade payables	-	-	-	-	-	88.4	88.4	88.4
Carrying amount by category	-	-	-	6.3	3.3	316.9	326.5	331.1

Fair value hierarchy

June 30, 2017
EUR million	Level 1	Level 2	Level 3	Total
Available-for-sale financial assets	0.1	-	2.2	2.3
Derivative financial assets	-	13.5	-	13.5
	0.1	13.5	2.2	15.8
Bonds	-	152.2	-	152.2
Loans from financial institutions	-	42.2	-	42.2
Derivative financial liabilities	-	4.3	-	4.3
	-	198.7	-	198.7
December 31, 2016
Available-for-sale financial assets	0.1	-	2.2	2.3
Derivative financial assets	-	9.1	-	9.1
	0.1	9.1	2.2	11.4
Bonds	-	151.2	-	151.2
Loans from financial institutions	-	48.1	-	48.1
Derivative financial liabilities	-	9.6	-	9.6
	-	208.9	-	208.9

Available-for-sale financial assets (level 3 of fair value hierarchy)	Q1-Q2	Q1-Q2	Q1-Q4
EUR million	2017	2016	2016
Carrying value at beginning of period	2.2	2.2	2.2
Translation differences	-0.0	0.0	0.0
Disposals	-	-	-
Carrying value at end of period	2.2	2.2	2.2

Related party transactions

Transactions and balances with associated companies EUR million	Q1-Q2	Q1-Q2	Q1-Q4 2016
	2017	2016
Sales	-	0.0	0.0
Other income	0.0	-	-
Purchases	0.5	0.3	1.0
Loan receivables	1.5	1.3	1.3
Trade and other receivables	0.2	0.4	0.5
Current liabilities	0.1	0.1	0.1

Outotec has a 40% investment in Enefit Outotec Technology Oü from which the company had EUR 1.5 million loan receivable at June 30, 2017 (June 30, 2016 and December 31, 2016: EUR 1.3 million).

Transactions and balances with management and prior management

There were no loan receivables from current key management at June 30, 2017 (June 30, 2016 and December 31, 2016: EUR 0,0 million). Loan receivables from former key management were EUR 0.1 million at June 30, 2017.

EUR million	Q2/15	Q3/15	Q4/15	Q1/16	Q2/16	Q3/16	Q4/16	Q1/17	Q2/17
Sales
Minerals Processing	136.4	129.0	147.0	112.5	119.3	128.9	178.8	153.4	169.4
Metals, Energy & Water	174.5	178.2	158.8	127.2	148.3	116.5	126.4	114.3	102.8
Unallocated items1 and intra-group sales	0.0	0.0	0.0	0.1	-0.0	-0.2	0.1	0.0	0.0
Total	310.8	307.2	305.7	239.8	267.6	245.2	305.4	267.7	272.2
EBIT
Minerals Processing	5.5	5.4	-27.3	-0.3	3.3	10.8	7.8	10.3	14.4
Metals, Energy & Water	4.8	3.7	-0.6	-10.2	-1.1	-11.2	-59.7	-9.6	-11.6
Unallocated2 and intra-group items	-2.4	-2.4	-2.6	-1.8	-3.0	-0.9	-1.6	-1.4	-2.0
Total	8.0	6.7	-30.6	-12.3	-0.8	-1.2	-53.5	-0.8	0.8

Segments' sales and operating result by quarters

¹ Unallocated items primarily include invoicing of group management and administrative services

² Unallocated items primarily include group management and administrative services

RESOLUTIONS OF OUTOTEC'S AGM 2017

Outotec Oyj's Annual General Meeting (AGM) was held on March 30, 2017, in Helsinki, Finland. The AGM approved the parent company's financial statements and the consolidated financial statements and discharged the members of the Board of Directors and the President and CEO from liability for the 2016 financial year. The AGM decided that no dividend would be distributed for the financial year ending on December 31, 2016.

The AGM decided that the total number of Board members will be seven (7). Dr. Matti Alahuhta, Ms. Eija Ailasmaa, Mr. Klaus Cawén, Ms. Anja Korhonen, Mr. Patrik Nolåker, Mr. Ian W. Pearce, and Dr. Timo Ritakallio were re-elected as members of the Board of Directors for the term expiring at the end of the next AGM. The AGM elected Mr. Alahuhta as the Chairman, and Mr. Ritakallio as Vice Chairman of the Board of Directors.

The AGM confirmed the Board's remunerations for 2017 of which 60% will be paid in cash and 40% in shares:

• Chairman of the Board of Directors: EUR 72,000
• Members of the Board of Directors: EUR 36,000
• Vice Chairman of the Board and the Chairman of the Audit and Risk Committee: additional EUR 12,000
• Attendance fee EUR 600/meeting
• Reimbursement for the direct costs arising from Board-related work

PricewaterhouseCoopers Oy, a firm of Authorized Public Accountants, was re-elected as the company's auditor.

The AGM authorized the Board of Directors to decide on the repurchase of, as well as issuance of shares and special rights entitling holders to shares. Both authorizations relate to an aggregate

maximum of 18,312,149 (approximately 10%) of the company's own shares. The authorizations shall be in force until the closing of the next AGM. The authorizations have not been exercised as of July 27, 2017.

The Board of Directors elected Ms. Korhonen (Chairman of the Committee), Mr. Cawén, Mr. Pearce, and Dr. Ritakallio as members of the Audit and Risk Committee.

Ms. Ailasmaa, Dr. Alahuhta (Chairman of the Committee), and Mr. Nolåker were elected as members of the Human Capital Committee.

SHARES AND SHARE CAPITAL

Outotec's shares are listed on the Nasdaq Helsinki exchange (OTE1V). At the end of the reporting period, Outotec's share capital was EUR 17,186,442.52, consisting of 183,121,492 shares. Each share entitles its holder to one vote at the company's general meetings.

OUTOTEC OYJ OWN SHAREHOLDING

At the end of the reporting period, the company directly held a total of 1,677,929 Outotec shares, representing 0.92% of Outotec Oyj's shares and votes.

TRADING, MARKET CAPITALIZATION, AND SHAREHOLDERS

Shares on NASDAQ Helsinki

January-June 2017	Number of shares traded	Total value EUR	High EUR	Low EUR	Average EUR1	Last paid EUR
OTE1V 1 Volume weighted average	142 300 382	823 800 791	7.00	4.88	5.79	6.02
				June 30, 2017		June 30, 2016
Market capitalization, EUR million				1,102		741
Number of shareholders			27,705			32,954
Nominee registered shareholders (number of registers 10), %				32.9		28.3
Finnish private investors, %				16.3		28.8

SHARE-BASED INCENTIVES

Outotec has a Share-based Incentive Program for the company's key personnel and Employee Share Savings Program for all employees globally. All shares related to the programs are acquired through public trading. More detailed information about present and past programs is available at www.outotec.com/cg.

FINANCIAL REPORTING SCHEDULE AND EVENTS IN 2017

• Outotec CMD: September 21
• Interim Report Q1-Q3: November 2

Outotec provides leading technologies and services for the sustainable use of Earth's natural resources. As the global leader in minerals and metals processing technology, we have developed many breakthrough technologies over the decades for our customers in the metals and mining industry. We also provide innovative solutions for industrial water treatment, the utilization of alternative energy sources and the chemical industry. Outotec shares are listed on Nasdaq Helsinki. www.outotec.com.