Outotec Oyj - Company Announcement

Outotec initiates efficiency improving measures targeting up to EUR 50 million annual savings

OUTOTEC OYJ  STOCK EXCHANGE RELEASE  OCTOBER 17, 2013  at 9.40 AM

Outotec initiates efficiency improving measures targeting up to EUR 50 million
annual savings

Outotec introduces a program to improve its cost structure and operational
efficiency to secure the future profitability in an uncertain market
environment. The efficiency improvement program is targeting up to EUR 50
million annualized savings in operational costs by the end of 2014 compared to
the Q3/2013 situation. The level of cost reduction activities and final savings
will be subject to the development of the market environment and Outotec's order
intake. The majority of the savings will materialize in 2014. The estimated one-
time costs from the program for 2013 and 2014 will be at maximum EUR 30 million.

Outotec is analyzing the resourcing needs and restructuring opportunities in its
locations worldwide. The company will start employee cooperation negotiations
about possible reduction of workforce with the entire personnel. The effects of
the considered restructuring on different personnel groups and locations will be
determined on country basis by early 2014. The planned measures are estimated to
lead to the reduction of maximum 500 employees globally through redundancies,
retirements and discontinuing fixed-term agreements. The estimated need for
redundancies in Finland is approximately 60 employees. The reduction measures
will be realized gradually starting in late 2013 and ending by mid 2014. In
addition, temporary lay-offs may be used to achieve the targeted savings.
Outotec currently employs approximately 5,000 persons."As part of our continuous strive for operational efficiency and utilizing the
investments done in developing our operating model, we are analyzing the
opportunities to use our resources more efficiently across our global
organization. While improving our internal efficiency and cost structure, we
also continue to develop our operating model as a platform for growth. Our
strategic priorities, such as service business growth and expansion to energy
and water businesses, require new skills and resources", says Outotec's CEO
Pertti Korhonen.

Further information will be provided during the course of the efficiency
improvement program and the savings will be reported quarterly.

For further information please contact:

OUTOTEC

Mikko Puolakka, CFO
Tel. +358 20 529 2002

Eila Paatela, Director - Corporate Communications
Tel. +358 20 529 2004, mobile +358 400 817198

Emails: firstname.lastname@outotec.com

DISTRIBUTION:
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www.outotec.com

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