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Outokumpu Technology

September – October 2006
Investor Presentation More out of ore!

Disclaimer

This presentation is not a prospectus and investors should not subscribe for or purchase any shares referred to in this presentation except on the basis of information in the prospectus. Copies of the prospectus and any amendments or supplements thereto (if any) (the "Prospectus") will, following publication, be available from Outokumpu Technology Oyj (the "Company"). This presentation has been prepared by the management of the Company solely for use at the presentation in investor "roadshows" in connection with the proposed offering of the Company's shares and admission thereof to the Helsinki Stock Exchange. The presentation is confidential and does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Any person considering the purchase of any securities of the Company must inform himself or herself independently based solely on the information contained in the Prospectus before taking any investment decision. The Prospectus may contain information different from the information contained in the presentation. No representation or warranty, express or implied, is made as to the fairness, accuracy, reasonableness or completeness of the information contained herein and no reliance should be placed on it. This presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Any securities mentioned herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”) or under the applicable securities laws of Canada, Australia or Japan. Any such securities may not be offered or sold in the United States absent registration under the Securities Act or exemption from the registration requirement thereof and subject to certain exceptions, may not be offered or sold within Canada, Australia or Japan or to any national, resident or citizen of Canada, Australia or Japan. This presentation may only be presented in the United States to "qualified institutional buyers" as defined in Rule 144A under the Securities Act. Neither this presentation nor any copy of it may be taken or transmitted into Australia, Canada or Japan or to Canadian persons or other person in any of those jurisdictions. Any failure to comply with this restriction may constitute a violation of United States, Australian, Canadian or Japanese securities law. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions. This presentation is only directed to (i) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, (the "Order") or (ii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons").

Outokumpu Technology | September – October 2006 | 2

001 shares) 10.0% (3.000 shares) of the initial sale All secondary shares Rule 144A Private Placement € 12.600. market cap € 578 million at midpoint 26 September – 9 October 27 September – 6 October Nordea Nordea and Lehman Brothers Joint Bookrunners in the institutional offering.360.50 per share. Nordea Sole Bookrunner in the retail offering 10 October (Pre list) / 13 October (Main list) Outokumpu Technology | September – October 2006 | 3 .Offering Summary Transaction Transaction Structure Over-allotment Option Primary / Secondary Split US Offering Pricing Institutional Offering / Bookbuilding Retail Offering / Bookbuilding Global Coordinator Syndicate Expected Start of Trading Sale of majority stake in Outokumpu Technology through an IPO on the main list of Helsinki Stock Exchange Initial sale of 80.0% (33.00 – 15.

Experienced Management Executive Committee Tapani Järvinen President & CEO Seppo Rantakari Deputy CEO Vesa-Pekka Takala CFO Minerals Processing Base Metals Metals Processing Jari Rosendal President Markku Jortikka President Peter Weber President Marketing Development Hans Jochen König* Senior Vice President Business Development Ilkka Virtanen Senior Vice President Research & Technology Development Kari Knuutila Chief Technology Officer Human Resources Ari Jokilaakso Senior Vice President *) Hans Jochen König will be replaced by Martti Haario as from October 1. 2006 Outokumpu Technology | September – October 2006 | 4 .

Outokumpu Technology | September – October 2006 | 5 .889 Sales by Region (2005) Australia 14% Europe 22% North America 4% South America 18% Asia 31% Africa 11% Sales and EBIT Development Sales. metals and related processing industries Market leadership in several markets and segments Expertise covers the whole process chain from mine to metal Key Facts • LTM Sales: • LTM EBIT: • Order backlog (Q2/06): • LTM Order intake: • No. EURm 700 Sales 600 500 400 300 200 100 0 2003 2004 2005 LTM* 8 11 10 0 366 24 426 30 20 EBIT EBIT.Outokumpu Technology in Brief • • • Develops and supplies technologies for mining. of employees: € 660 million € 42 million € 694 million € 831 million 1. EURm 660 50 556 42 40 • Operates globally in 18 countries *Latest Twelve Months. calculated as the sum of the latest four fiscal quarters as at June 2006.

g.Minerals Processing Division % Sales ‘05 Technology Deliveries Ranging from Single Equipment to Turn-key Plants • Leading global provider of minerals processing technologies for the mining and related industries PURE METAL 32% Base Metals Minerals Processing Metals Processing • Unique portfolio of unit technologies and fully integrated total process solutions • The technologies and capabilities of Minerals Processing are also used in areas outside the mining and metals industries (e. Water Technology) % EBIT ‘05 Outokumpu Technology | September – October 2006 | 6 ORE The Entire Process Chain from Mine to Metal 31% Process Solutions Grinding Technology Flotation Technology Thickener Technology Physical Separation Analyzers & Automation Water Technology .

Base Metals Division % Sales ‘05 Technology Deliveries Ranging from Single Equipment to Turn-key Plants Base Metals • Leading global provider of metallurgical processing technology for non-ferrous metals • Exceptionally strong market position in copper technologies and in ferrochrome technologies • Acts typically as a key technology provider in larger investment projects 27% PURE METAL Outokumpu Technology | September – October 2006 | 7 ORE Minerals Processing Metals Processing % EBIT ‘05 The Entire Process Chain from Mine to Metal 43% Copper Technologies Nickel Technologies Zinc Technologies Precious Metals Technologies Ferroalloy Technologies .

Metals Processing Division % Sales ‘05 Technology Deliveries Ranging from Single Equipment to Turn-key Plants Base Metals • Leading global provider of technologies for the processing of iron ore. roasting of non-ferrous metals and in metallurgical acid plants • Delivers typically lump-sum turnkey or technology transfer package projects 35% PURE METAL Outokumpu Technology | September – October 2006 | 8 ORE Minerals Processing Metals Processing % EBIT ‘05 26% The Entire Process Chain from Mine to Metal Aluminium Technologies Ferrous Metals Technologies Sulphuric Acid / Off-Gas / Roasting Technologies Alumina calciner Iron ore pelletizing plant Synthetic rutile plant Sulphuric acid plant Roasting plant . alumina & aluminium and for the production of sulphuric acid • Strong market positions in pelletizing and sintering technologies. alumina calcination technologies.

Main Project Types EPC / Turnkey (€ 15-200 million. 15-36 months) • • • • Basic and detail engineering Full supply and erection Training of customers’ personnel Commissioning of the plant • • • Performance and other guarantees for OT’s supply scope Typically many subcontractors and third party suppliers PRIMA risk assessments Technology Package (€ 3-70 million. 10-36 months) • • • • Basic and detail engineering Typically proprietary and/or key hardware components Erection supervision Training of customers personnel • • • Commissioning of the plant Performance guarantee for OT’s supply scope PRIMA risk assessment Equipment Deliveries (up to € 10 million) Delivery of proprietary technology is an essential part in all project types Outokumpu Technology | September – October 2006 | 9 .

China. Russia. Circoheat™ • Flash converting. Circofer® • Lurec™ • Oil sands (Flotation technology) • Fertilizers (Sulphuric acid technology) • BRICS (Brazil. Southern Africa) • Other emerging markets • Continuously screening the market for potential candidates • Increasing sourcing e. Brazil) Outokumpu Technology | September – October 2006 | 10 . testing facilities to guarantee customer ROI • Zinc and Nickel leaching technologies. India.g. Circored®. Brazil) • Efficient use of state of the art engineering tools • Local task force approach with OT supervision (e.g.g. upgrades and debottlenecking • Spare parts • Operator training Selected Acquisitions Maintain and Improve Profitability Procurement and Outsourcing Optimise Cost Efficiency Increase Value-Added Component • R&D efforts. from China and India as well as optimizing local supply (e. HydroCopper™ • Circoheat™.Strategy and Objectives Sustained Profitable Growth Seek Sustainable Growth New Technologies Cross Selling Geographical Expansion Increase After-Sales Services • Automation.

Key Investment Highlights Strong Market and Continued Growth Strong Market Position and Long-Term Customer Relationships Proven Track Record in Project Execution Proprietary Technology Base and Extensive R&D Resources Global Presence in All Key Markets Record High Order Backlog Providing Visibility and Strong Basis for Sales and Earnings Growth Outokumpu Technology | September – October 2006 | 11 .

per capita consumption of most commodities still low in China Other market trends and characteristics also supportive of Outokumpu Technology’s business 0% Iron Ore Aluminium Consumption Growth Copper Zinc Net Production Growth Sources: CRU (for aluminium. 1980 .000 United States 20. IISI (for iron ore data) Aluminium consumption.2004 Outokumpu Technology | September – October 2006 | 12 .Strong Market and Continued Growth • Unprecedented demand for metals from emerging economies 40 % 30 % 22 % Expected Growth (2005-2010) 30 % 25 % 22 % 15 % 24 % 22 % 31 % • China accounting for more than half of global metals demand growth 20 % 10 % • Despite strong demand growth.Korea • • Lower grade ore bodies requiring more minerals processing capacity Increased environmental and technological requirements Real GDP per capita. US$.000 50.000 Japan S. copper and zinc data).000 40. kg/capita • Development of Aluminium Consumption 25 20 15 10 5 0 0 10.000 China 30.

000 10. we expect (capital expenditure) to be between US$7 billion and US$7.Increased Mining and Metals Capital Expenditure Capex (US$ million) LME Price Index 180 150 120 90 60 30 0 1978 1983 1988 1993 LME index 1998 2003 Source: CRU • Capital expenditure in metals and mining sector driven by demand and pricing for underlying metals Capital expenditure levels tend to peak 2-3 years after prices After several years of underinvestment.000 35. 23 August 2006 “Continuing investment in the growth of the business was reflected in record capital expenditure of $1.4 billion and exploration in the order of US$800 million:" CEO Chip Goodyear.000 5.000 20.000 25.000 30.758 million in the first half.3 billion.” H1/2006 Investor Presentation Outokumpu Technology | September – October 2006 | 13 .000 0 Mining & Metals Capex • "For 2007. in sustaining about US$1.5 billion.000 • • 15. In terms of growth US$5. capital expenditure levels are rising rapidly Recent record profits and strong cash flows for mining companies are also increasing capital expenditure 40.

low = 100% (nominal money) The current cycle is one of the longest and strongest on record Price environment supported by • Strong commodity demand from China in particular • Strong economic recovery in major Western economies • Historic underinvestment in mining and metals production capacity • Very low inventory levels Mining investment programs based on low long-term price estimates 400 % 350 % 300 % 250 % 200 % 150 % 100 % 0 4 8 Metals Price Environment Apr 03 current Nov 72 Apr 74 Nov 86 Jun 88 Nov 93 Jan 95 Jan 99 Jan 00 Apr 78 Feb 80 12 16 20 24 28 32 36 40 44 Months from Trough to Peak LME Indexed Inventory Levels (April 2003 – to date) Index 175 % 150 % 125 % 100 % 75 % 50 % 25 % 0% 04/03 10/03 05/04 11/04 06/05 Nickel 12/05 07/06 Zinc • • Mining technology companies offer sector exposure without spot price volatility Aluminium Copper Source: Bloomberg Outokumpu Technology | September – October 2006 | 14 .Robust Metals Price Environment • • Indexed.

Strong Market Position Minerals Processing Base Metals Metals Processing • Flotation technology • Analyzers* • Copper smelting • Copper anode casting • Copper solvent extraction • Ferrochrome technologies • Precious metals • Pelletizing & Sintering technologies for iron ore • Alumina calcination technologies • Synthetic rutile production • Zinc & Pyrite roasting technologies Market Leader • Grinding technology • Thickener technology* • Copper permanent cathodes • Stripping machines and Anode preparation machines for copper tankhouses • Sulphuric Acid technologies • Carbon anode paste plants and rodding shops for aluminium smelters Top-3 • Physical separation Niche Player • Automation* • Process Solutions • Water Technology * Minerals processing applications Outokumpu Technology | September – October 2006 | 15 .

Long-Term Customer Relationships Selected Reference Customers of Outokumpu Technology Large Global Mining Companies (Seniors) Small and Medium Sized Companies (Juniors) Local Mining and Metallurgical Companies in Emerging Regions Repeat Business Multiple Technologies for Single Companies • The life-cycle customer approach aims at servicing its customers over the full life of a mining site / metallurgical plant • Outokumpu Technology has a strong track record for delivering multiple technologies to single companies Outokumpu Technology | September – October 2006 | 16 .

is a leading global diversified mining company.Proven Track Record Selected Example of Long Term Customer Relationship with Repeat Orders Typical Requirements and Project Characteristics High Reliability in Project Execution Companhia Vale do Rio Doce (CVRD). and the world’s largest producer of iron ore and pellets. Large and Complex Projects Order year Delivered OT technology / solution 1 1970s • • Seven pelletizing lines (six separate orders) Sulphuric acid plant Capability to Operate Locally also in Remote Locations 1990s • • Two pelletizing lines (two separate orders) Two alumina calciners (one order) Proven Technology with High Process Performance and Reliability 2000- • • • Three pelletizing lines (two separate orders) Five alumina calciners (three separate orders) Minerals processing line and equipment Ability to Respond to Customer Needs 1 Deliveries to CVRD or its part owned companies by OT or its licensees Outokumpu Technology | September – October 2006 | 17 .

thickeners. Finland. pyro. on-line analyzers in minerals processing applications Market leader in alumina calcination and roasting of sulphidic ores Forerunner in sulphuric acid plants over decades Patented Technologies • Two own research centres in Pori.800 patents Outokumpu Technology | September – October 2006 | 18 .and hydrometallurgy and ferrous technologies • IPR portfolio of over 400 patent families and close to 1.Proprietary Technology Base and Extensive R&D Resources Portfolio of Industry Benchmark Technologies Extensive R&D and Testing Resources • • • • • Nearly half of the world's copper produced with Outokumpu Flash Smelting Majority of the world's iron ore pellets produced by Outokumpu Technology's processes Market leader in flotation technology. and in Frankfurt. Germany with a total of 187 employees • Research facilities: • 8 laboratories • 2 bench scale pilots • Pyro.and hydrometallurgical pilot plants • HydroCopper™ demonstration plant • Fluidized bed pilot plants (Circo-technologies) • Agglomeration facilities • Core competencies in minerals technology.

Global Presence in All Key Markets LKAB Iron pelletizing plant and grinding mills Russian Copper Company Copper concentrator Yanggu Copper smelter. refinery and sulfuric acid plant € 80 million Sweden € 22 million Kazakhstan Espoo Outokumpu Harjavalta Kokkola Pori St. Petersburg Moscow Almaty Beijing € 50 million China Skellefteå Smedjebacken Kil Oslo Utrecht Cologne Oberursel Frankfurt Norilsk Warsaw Alcan Gove Alumina refinery expansion Denver Mexico City Burlington Jacksonville Shanghai € 26 million Australia Outokumpu Technology offices Colombo Lima Antofagasta Calama Santiago Belo Horizonte Johannesburg Sydney Perth Melbourne Escondida Copper solvent extraction plant Samarco Pellet indurating furnace Xstrata Ferrochrome plant € 40 million Chile € 160 million Brazil € 28 million South Africa Outokumpu Technology | September – October 2006 | 19 .

Order Backlog at Record High Level Order Intake € million 300 260 250 244 600 200 172 520 186 500 490 525 596 Order Backlog € million 800 694 634 700 150 141 400 106 100 300 200 50 100 0 Q1/2005 Q2/2005 Q3/2005 Q4/2005 Q1/2006 Q2/2006 0 Q1/2005 Q2/2005 Q3/2005 Q4/2005 Q1/2006 Q2/2006 Outokumpu Technology | September – October 2006 | 20 .

Strong Improvement in Sales and Profitability € million 700 Sales 660 € million 45 Operating Profit (EBIT) 42 40 600 556 35 500 426 400 366 30 24 25 300 20 15 200 10 100 5 8 11 0 2003 2004 2005 LTM* 0 2003 2004 2005 LTM* *Latest Twelve Months. calculated as the sum of the latest four fiscal quarters as at June 2006 NOTE: The figures based on combined financial information (IFRS) Outokumpu Technology | September – October 2006 | 21 .

2 16.5 104.1 2005 216.5 -1.6 Total financial income and expenses Profit before taxes Income taxes Net profit from continued operations EPS (from continued operations) Depreciation Capital expenditure Outokumpu Technology | September – October 2006 | 22 .7 0.6% 1.4 9.1 -3.0 8.1 3.4 0.1 11.1 14.1 4.1% -3.5% 1.4 -1.5 0.4 -0.4 4.6 39.9 62.5 15.3 85.9 -280.10 6.Key Financials Based on Combined Financial Information (IFRS) Combined Income Statement € million Year ended December 31 (audited) Six months ended June 30 (unaudited) 2003 2004 425.4% 1.8 26.8 97.08 4.8 • • • Significant increase in sales and profits High portion of variable costs Positive net financial income Sales Cost of sales Gross margin Operating profit % of net sales 365.4 12.9 -1.0 0.7 -177.5 -3.6 7.4 0.4% 1.7 24.6 -9.8 2.39 9.6 -7.3 25.6 -327.7 2005 556.2 -451.7 2006 320.8 5.3 4.9 -2.23 9.9 2.8 10.9 4.9 -258.7 11.21 5.

2 50.9 304.7 409.0 38.1 0.4 -19% • • Outokumpu Technology | September – October 2006 | 23 .7 110.1 169.8 0.3 251.5 -55.5 -93% • • Low level of capital employed Negative working capital due to favourable payment terms Net cash position Strong balance sheet providing flexibility Non-current assets Inventories Current financial assets Cash and cash equivalents Total assets Shareholders’ equity Minority interest Non-current liabilities Current liabilities Total shareholders equity and liabilities Net interest-bearing debt Gearing (%) 127.3 409.4 -13.1 39.4 67.8 408.6 408.6 85.0 -108.0 116.3 196.6 0.5 38.2 325.7 -41.0 40.2 126.7 -62% 2006 119.4 30.6 132.8 0.2 304.6 52.1 0.1 -105% 2005 120.1 325.1 117.1 31.0 40.2 -116.5 90.6 69.7 298.7 90.2 110.7 258.0 41.9 298.5 35.2 194.1 126.7 34.4 -46% 2005 121.8 98.Balance Sheet Based on Combined Financial Information (IFRS) Combined Balance Sheet € million As of December 31 (audited) As of June 30 (unaudited) 2003 2004 116.

Financial Targets and Dividend Policy Outokumpu Technology has defined sustainable profitable growth as its objective and adopted the following financial targets: EPS Growth Average annual increase in earnings per share in excess of ten percent Minimum EBIT Margin Annual EBIT margin always above five percent Balance Sheet Strong balance sheet providing operational flexibility and enabling Outokumpu Technology to finance potential acquisitions Dividends representing approximately 40% of the annual net income Outokumpu Technology | September – October 2006 | 24 .

Current Outlook Market Activity and Outlook • • • • Demand for metals has continued to be strong The mining and metals industry continues to invest actively in both ferrous and non-ferrous metals capacity No signs of a slow-down in the activity in the short-term High activity in marketing and negotiating new contracts offers potential for a continuing strong order intake Sales and EBIT 2006 • Sales and profitability in 2006 expected to improve clearly from 2005 • H2/2006 sales expected to be better than in H2/2005 • EBIT (excluding IPO related one-time expenses) in H2/2006 to be somewhat higher than in H2/2005 Outlook for 2007 • Positive outlook for the mining and metals industries and continued high market activity together with strong recent order intake and record high order backlog will provide a strong basis for the year 2007 Outokumpu Technology | September – October 2006 | 25 .

Conclusions Strong market and continued growth Strong market position and long-term customer relationships Proven track record in project execution Proprietary technology base and extensive R&D resources Outokumpu Technology attractively positioned to capitalise on favourable market conditions and achieve substantial sales and earnings growth Global presence in all key markets Record high order backlog providing visibility and strong basis for net sales and earnings growth Outokumpu Technology | September – October 2006 | 26 .

outokumputechnology.com Outokumpu Technology | September – October 2006 | 27 .More out of ore! www.

Additional Materials Outokumpu Technology | September – October 2006 | 28 .

6 -10 Q1/2005 Q2/2005 Q3/2005 Q4/2005 Q1/2006 Q2/2006 0% 1 3 5 7 9 11 13 15 17 19 21 Month 23 25 27 29 Outokumpu Technology | September – October 2006 | 29 .5 5 4.Profit Seasonality and Profit Recognition Quarterly EBIT – Profit Seasonality 25 22.2 4.1 Project Profit 10.2 20 Profit Recognition – EPC/Turnkey Example 100 % Releasing of provisions 80 % 15 Quarterly EBIT (EUR million) 10 5.0 60 % 40 % 0 20 % -5 -7.