2009-07-24 07:00:00 CEST

2009-07-24 08:34:30 CEST


REGULATED INFORMATION

English
Outotec Oyj - Interim report (Q1 and Q3)

Interim Report January-June 2009


Interim Report January-June 2009   
                                             
OUTOTEC OYJ              INTERIM REPORT         JULY 24, 2009  AT 9:00 AM       
                                                                                
INTERIM REPORT JANUARY-JUNE 2009                                                
                                                                                
Challenging market continued - profitability remained at a good level           
                                                                                
Reporting period Q1-Q2/2009 in brief (Q1-Q2/2008):                              
           Sales: EUR 469.2 million (EUR 501.0 million)                        
           Operating profit: EUR 30.2 million (EUR 43.8 million)               
Profit before taxes: EUR 31.6 million (EUR 50.0 million)                        
           Earnings per share: EUR 0.53 (EUR 0.83)                             
           Order intake: EUR 245.1 million (EUR 774.2 million)                 
           Order backlog: EUR 966.6 million (EUR 1,548.4 million)              
           Net cash flow from operating activities: EUR 12.6 million (EUR 124.2
million)                                                                        
                                                                                
Q2/2009 in brief (Q2/2008):                                                     
           Sales: EUR 237.6 million (EUR 275.5 million)                        
           Operating profit: EUR 13.9 million (EUR 22.9 million)               
Profit before taxes: EUR 13.6 million (EUR 26.8 million)                        
           Order intake: EUR 105.8 million (EUR 475.4 million)                 
           Net cash flow from operating activities: EUR 23.4 million (EUR 83.6 
million)                                                                        
                                                                                
Outotec reiterates its outlook for 2009.                                        
                                                                                
                                                                                
CEO Tapani Järvinen:                                                            
                                                                                
"Difficult market conditions continued in our core market, the mining and metals
industry. Our customers' decision-making has slowed down and companies are      
experiencing difficulties in obtaining funding with reasonable terms for their  
projects. Our order intake was low in the first half of the year. Sales have    
declined only slightly but are still at a good level as we continue to execute  
our large order backlog. Profitability suffered from lower business volume and  
lack of major project completions. We have been adjusting our operations to the 
changing market by reducing the number of temporary employees and subcontractors
in the first half of the year and we are prepared to increase our cost-saving   
measures.                                                                       
                                                                                
However, it is equally important for us to maintain our delivery capabilities   
and technological competitive advantages as well as to be prepared to capitalize
on growth opportunities. We have been strengthening our presence in India, China
and CIS, and we have also developed our offerings for the energy and industrial 
water treatment sectors and our efforts have already reaped benefits. On July   
10, Outotec and Eesti Energia signed a EUR 110 million contract for a new oil   
shale processing plant and agreed on a joint venture to sell the new technology 
globally. I am also pleased that our services business continues to grow. Our   
customers always have a need for various services, spare parts and equipment."  
                                                                                
                                                                                
--------------------------------------------------------------------------------
| Summary of key figures          |  Q2 |   Q2 | Q1-Q2 | Q1-Q2 |  Last | Q1-Q4 |
|                                 |     |      |       |       |    12 |       |
--------------------------------------------------------------------------------
|                                 | 200 | 2008 |  2009 |  2008 | month |  2008 |
|                                 |   9 |      |       |       |     s |       |
--------------------------------------------------------------------------------
| Sales, EUR million              | 237 | 275. | 469.2 | 501.0 | 1,186 | 1,217 |
|                                 |  .6 |    5 |       |       |    .1 |    .9 |
--------------------------------------------------------------------------------
| Gross margin, %                 | 18. | 20.3 |  19.3 |  20.3 |  21.1 |  21.5 |
|                                 |   3 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Operating profit, EUR million   | 13. | 22.9 |  30.2 |  43.8 | 106.6 | 120.2 |
|                                 |   9 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Operating profit margin, %      | 5.9 |  8.3 |   6.4 |   8.7 |   9.0 |   9.9 |
--------------------------------------------------------------------------------
| Profit before taxes, EUR        | 13. | 26.8 |  31.6 |  50.0 | 117.9 | 136.3 |
| million                         |   6 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Net cash from operating         | 23. | 83.6 |  12.6 | 124.2 |  -5.0 | 106.6 |
| activities, EUR million         |   4 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Net interest-bearing debt at    |     |      |       |       |       |       |
| the end of period, EUR million  | -27 | -358 | -278. | -358. | -278. | -314. |
|                                 | 8.3 |   .5 |     3 |     5 |     3 |     6 |
--------------------------------------------------------------------------------
| Gearing at the end of period, % | -12 | -180 | -127. | -180. | -127. | -139. |
|                                 | 7.1 |   .4 |     1 |     4 |     1 |     0 |
--------------------------------------------------------------------------------
| Working capital at the end of   |     |      |       |       |       |       |
| period, EUR million             | -15 | -240 | -150. | -240. | -150. | -171. |
|                                 | 0.7 |   .3 |     7 |     3 |     7 |     2 |
--------------------------------------------------------------------------------
| Return on investment, %         | 30. | 60.0 |  30.9 |  50.1 |  56.8 |  61.6 |
|                                 |   8 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Return on equity, %             | 17. | 39.6 |  19.6 |  33.8 |  38.7 |  42.6 |
|                                 |   9 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Order backlog at the end of     | 966 | 1,54 | 966.6 | 1,548 | 966.6 | 1,176 |
| period, EUR million             |  .6 |  8.4 |       |    .4 |       |    .7 |
--------------------------------------------------------------------------------
| Order intake, EUR million       | 105 | 475. | 245.1 | 774.2 | 624.7 | 1,153 |
|                                 |  .8 |    4 |       |       |       |    .8 |
--------------------------------------------------------------------------------
| Personnel, average for the      | 2,5 | 2,54 | 2,569 | 2,365 | 2,585 | 2,483 |
| period                          |  40 |    5 |       |       |       |       |
--------------------------------------------------------------------------------
| Earnings per share, EUR         | 0.2 | 0.44 |  0.53 |  0.83 |  1.94 |  2.25 |
|                                 |   2 |      |       |       |       |       |
--------------------------------------------------------------------------------
                                                                                
                                                                                
                                                                                
INTERIM REPORT JANUARY-JUNE 2009                                                
                                                                                
                                                                                
MARKETS                                                                         
                                                                                
The investment activity within the mining and metals industry continues to be   
low. Customers are still experiencing difficulties in arranging funding for     
projects. Yet, prices for most metals have further climbed in the second quarter
and are at a good level by historical standards, which has improved the         
financial position of many mining companies. In addition, some companies have   
been forced to sell their assets in order to strengthen their balance sheets or 
to secure refinancing. Although metal prices are on a good level at the moment, 
many production plants have idle capacity, which is slowing down new            
investments.                                                                    
                                                                                
The developing economies continue to have a high demand for metals. According to
market research, China is consuming roughly 35-50% of all metals produced       
globally. India continues to develop its infrastructure utilizing its large     
natural resource base for instance for coal, steel raw materials, aluminum,     
copper and zinc production. Chile and Peru also continue to invest in their     
copper and gold projects.                                                       
                                                                                
Many of Outotec's customers are evaluating their project scopes and prices but  
the decision-making process is slow. Although many planned greenfield projects  
are on hold at the moment, there is a continuous demand for modernization and   
debottlenecking at mine sites and metals processing plants as well as a demand  
for energy-efficient and environmentally-friendly technologies, equipment and   
services. As ore grades decline, more processing capacity will be needed. Also, 
complex ore bodies require new or modernized solutions which enable economically
viable production and better metals recovery.                                   
                                                                                
There are also new opportunities for Outotec in the development of alternative  
energy resources and in the treatment of water at mining and metallurgical      
plants. The world's recoverable oil shale resources are many times greater than 
those of conventional oil reserves, with large oil shale deposits to be found in
the US, Brazil, China, Jordan, Russia and Estonia. Outotec offers applications  
and services for oil shale processing and bio-energy production through recent  
joint ventures. The new and sustainable Enefit technology, developed jointly by 
Outotec and Eesti Energia, is expected to result in many business opportunities 
within the energy sector. In Estonia alone, there is a potential to use the new 
technology to build several plants. Furthermore, various industrial water       
treatment solutions can be offered to existing and new customers. Outotec's     
technologies can also be applied beyond the mining and metals industry to waste 
burning plants, electronics manufacturers and other industries which need water 
treatment.                                                                      
                                                                                
                                                                                
                                                                                
ORDER INTAKE                                                                    
                                                                                
Order intake in the reporting period amounted to EUR 245.1 million (Q1-Q2/2008: 
EUR 774.2 million) including plant deliveries, several smaller equipment        
deliveries and services to existing customers. The orders received in the second
quarter came to EUR 105.8 million (Q2/2008: EUR 475.4 million) and included     
smaller equipment, spare parts and services.                                    
There were no major orders in the second quarter.                               
                                                                                
Major new orders in the first quarter included:                                 
delivery of a sulfuric acid plant for Noracid S.A. in Mejillones, Chile (EUR 51 
million);                                                                       
several service contracts for industrial and maintenance services in Chile and  
Canada (EUR 15 million); and                                                    
delivery of flotation cells and thickeners for Polymetal's Albazino gold mine   
project in Russia.                                                              
                                                                                
                                                                                
                                                                                
ORDER BACKLOG                                                                   
                                                                                
The order backlog at the end of the reporting period totaled EUR 966.6 million  
(June 30, 2008: EUR 1,548.4 million), representing a 38% decline from the       
comparison period.                                                              
                                                                                
At the end of the reporting period, Outotec's order backlog included 21 projects
with an order backlog value in excess of EUR 10 million, accounting for 69% of  
the total backlog. According to a management estimate, roughly 40% of the       
current backlog will be delivered in 2009 and the rest in 2010 and beyond.  At  
the end of the reporting period, Outotec's order backlog included roughly EUR   
100 million in suspended projects, which have been taken into account in the    
progress estimate. Roughly 3% of the projects in Outotec's current backlog are  
for mining companies that are developing their first processing plants.         
                                                                                
                                                                                
SALES AND FINANCIAL RESULT                                                      
                                                                                
Outotec's sales in the reporting period totaled EUR 469.2 million (Q1-Q2/2008:  
EUR 501.0 million), which was 6% lower than in the comparison period. Sales for 
the second quarter were EUR 237.6 million (Q2/2008: EUR 275.5 million). The     
decline in sales resulted from the smaller order backlog, especially in the Base
Metals division, and rescheduling of some major projects.                       
                                                                                
The Services business, which is included in the divisions' and other businesses'
sales figures, totaled EUR 73.4 million in the reporting period (Q1-Q2/2008: EUR
51.6 million), up 42% from the comparison period. The sales volume of the       
Services business in the second quarter totaled EUR 42.5 million (Q2/2008: EUR  
30.8 million). Part of the increase came from Outotec Auburn, which was acquired
in October 2008.                                                                
                                                                                
The operating profit for the reporting period was EUR 30.2 million (Q1-Q2/2008: 
EUR 43.8 million), representing 6.4% of sales (Q1-Q2/2008: 8.7%). The operating 
profit includes EUR 2.5 million one-time positive effect from the amicable      
settlement of all disputes related to the Pattison Sand project. The gains      
related to currency forward contracts, which are not included in the hedge      
accounting, increased profitability by EUR 0.9 million (Q1-Q2/2008: gains of EUR
2.3 million). The operating profit in the second quarter was EUR 13.9 million   
(Q2/2008: EUR 22.9 million). The decrease resulted from the lower sales volume, 
decreased license fee income, fewer project completions and higher fixed costs. 
                                                                                
In the reporting period, Outotec's fixed costs were EUR 4.5 million higher than 
in the comparison period. The increase was mainly caused by fixed costs of      
Outotec Auburn, increased sales work, developing business operations in India,  
and development of the Services business worldwide.                             
Outotec's profit before taxes for the reporting period was EUR 31.6 million     
(Q1-Q2/2008: EUR 50.0 million). Profit before taxes was impacted favorably by   
the net financial income of EUR 1.4 million (Q1-Q2/2008: EUR 6.1 million) from  
the high net cash position. The decline in net financial income is mainly caused
by lower interest rates. Net profit for the period was EUR 21.8 million         
(Q1-Q2/2008: EUR 34.9 million). Taxes totaled EUR 9.8 million (Q1-Q2/2008: EUR  
15.0 million). This represents an effective tax rate of 30.9%. Earnings per     
share were EUR 0.53 (Q1-Q2/2008: EUR 0.83).                                     
                                                                                
Outotec's return on equity for the reporting period was 19.6% (Q1-Q2/2008:      
33.8%), and return on investment was 30.9% (Q1-Q2/2008 50.1%).                  
                                                                                
--------------------------------------------------------------------------------
| Sales and operating profit by    |    Q2 |    Q2 |  Q1-Q2 |  Q1-Q2 |   Q1-Q4 |
| segment                          |       |       |        |        |         |
--------------------------------------------------------------------------------
| EUR million                      |  2009 |  2008 |   2009 |   2008 |    2008 |
--------------------------------------------------------------------------------
| Sales                            |       |       |        |        |         |
--------------------------------------------------------------------------------
| Minerals Processing              |  91.1 |  92.7 |  175.6 |  152.8 |   419.6 |
--------------------------------------------------------------------------------
| Base Metals                      |  29.6 |  72.0 |   74.4 |  132.0 |   295.3 |
--------------------------------------------------------------------------------
| Metals Processing                | 103.4 | 109.2 |  200.6 |  213.9 |   494.7 |
--------------------------------------------------------------------------------
| Other Businesses                 |  20.0 |  16.7 |   38.3 |   25.8 |    56.0 |
--------------------------------------------------------------------------------
| Unallocated items*) and          |  -6.5 | -15.0 |  -19.7 |  -23.4 |   -47.7 |
| intra-group sales                |       |       |        |        |         |
--------------------------------------------------------------------------------
| Total                            | 237.6 | 275.5 |  469.2 |  501.0 | 1,217.9 |
--------------------------------------------------------------------------------
|                                  |       |       |        |        |         |
--------------------------------------------------------------------------------
| Operating profit                 |       |       |        |        |         |
--------------------------------------------------------------------------------
| Minerals Processing              |   7.9 |   3.2 |   14.0 |    7.3 |    22.5 |
--------------------------------------------------------------------------------
| Base Metals                      |  -0.4 |  11.9 |    3.9 |   18.2 |    48.7 |
--------------------------------------------------------------------------------
| Metals Processing                |   9.3 |  11.8 |   18.2 |   24.1 |    61.1 |
--------------------------------------------------------------------------------
| Other Businesses                 |  -0.1 |   1.2 |   -0.5 |    1.6 |     3.9 |
--------------------------------------------------------------------------------
| Unallocated**) and intra-group   |  -2.7 |  -5.1 |   -5.5 |   -7.3 |   -16.0 |
| items                            |       |       |        |        |         |
--------------------------------------------------------------------------------
| Total                            |  13.9 |  22.9 |   30.2 |   43.8 |   120.2 |
--------------------------------------------------------------------------------
                                                                                
*) Unallocated items primarily include invoicing of internal management and     
administrative services.                                                        
**) Unallocated items primarily include internal management and administrative  
services and share of the result of associated companies.                       
                                                                                
                                                                                
Minerals Processing                                                             
                                                                                
The Minerals Processing division's sales in the reporting period grew 15% from  
the comparison period and totaled EUR 175.6 million (Q1-Q2/2008: EUR 152.8      
million). Operating profit was EUR 14.0 million (Q1-Q2/2008: EUR 7.3 million).  
The growth in sales resulted from a high starting order backlog, good project   
execution and reduced bottlenecks in the delivery pipeline. Operating profit for
the reporting period includes EUR 2.5 million one-time positive effect from the 
amicable settlement of all disputes related to the Pattison Sand project.       
Operating profit for the reporting period also includes a realized and          
unrealized gain of EUR 0.1 million related to currency forward contracts        
(Q1-Q2/2008: realized and unrealized gains of EUR 3.7 million).                 
                                                                                
Base Metals                                                                     
                                                                                
The Base Metals division's sales in the reporting period decreased by 44% from  
the comparison period and totaled EUR 74.4 million (Q1-Q2/2008: EUR 132.0       
million). The decrease in sales was mainly due to lower order intake since      
September 2008, lower order backlog, and rescheduling of some projects. The     
operating profit was EUR 3.9 million (Q1-Q2/2008: EUR 18.2 million). The        
significantly lower sales figure relative to the division's fixed costs and     
decreased license fee income were the main reasons for the division's low       
operating profit. Operating profit for the reporting period also included a     
realized and unrealized loss of EUR 1.1 million related to currency forward     
contracts (Q1-Q2/2008: realized and unrealized loss of EUR 1.0 million).        
                                                                                
                                                                                
Metals Processing                                                               
                                                                                
The Metals Processing division's sales in the reporting period decreased 6% from
the comparison period to EUR 200.6 million (Q1-Q2/2008: EUR 213.9 million).     
Operating profit came to EUR 18.2 million (Q1-Q2/2008: EUR 24.1 million).       
Operating profit declined because of lower sales volume and decreased license   
fee income. Operating profit for the reporting period also included realized and
unrealized gains of EUR 2.0 million related to currency forward contracts.      
(Q1-Q2/2008: realized and unrealized loss of EUR 1.5 million).                  
                                                                                
                                                                                
BALANCE SHEET, FINANCING, AND CASH FLOW                                         
                                                                                
Net cash flow from operating activities in the reporting period was positive at 
EUR 12.6 million (Q1-Q2/2008: EUR 124.2 million). The change was mainly caused  
by increase in working capital in 2009 as compared to the significant decrease  
in working capital in 2008. The net change in cash and cash equivalents was also
affected by the dividend payment of EUR 42.0 million in March 2009 (April 2008: 
EUR 39.9 million).                                                              
At the end of reporting period, Outotec's cash and cash equivalents totaled EUR 
281.6 million (June 30, 2008: EUR 358.0 million). The company invests its excess
cash in short-term money market instruments such as bank deposits and corporate 
commercial papers. Investments are made within pre-approved                     
counterparty-specific limits and tenors, which Outotec reviews regularly. On    
June 30, 2009, no money market investment had remaining maturity exceeding three
months.                                                                         
                                                                                
Outotec's working capital amounted to EUR -150.7 million on June 30, 2009 (June 
30, 2008: EUR -240.3 million). The change in working capital was caused by low  
order intake and subsequently lower advance payments received in the reporting  
period.                                                                         
                                                                                
The balance sheet structure remained strong, and the financing structure was    
healthy. Net interest-bearing debt on June 30, 2009 came to EUR -278.3 million  
(June 30, 2008: EUR -358.5 million). The advances received at the end of the    
reporting period totaled EUR 248.3 million (June 30, 2008: EUR 298.1 million),  
representing a decrease of 17% from the comparison period. Outotec's gearing at 
the end of the reporting period was -127.1% (June 30, 2008:                     
-180.4%), and the equity-to-assets ratio was 40.2% (June 30, 2008: 40.0%).      
                                                                                
The company's capital expenditure in the reporting period was EUR 9.2 million   
(Q1-Q2/2008: EUR 6.3 million), which consisted mainly of the establishment of a 
joint venture company for bio-energy technology business, investments in        
information technology, intellectual property rights, and machinery for the     
Outotec Turula workshop.                                                        
                                                                                
Guarantees for commercial commitments, including advance payment guarantees     
issued by the parent and other Group companies decreased from the comparison    
period because of lower order intake and were EUR 328.2 million (June 30, 2008: 
EUR 415.6 million) at the end of the reporting period.                          
                                                                                
Outotec has an agreement with a third-party service provider concerning         
administration and hedging of the share-based incentive program for key         
personnel. As part of this agreement, for hedging the underlying cash flow risk,
the service provider has purchased a total of 550,000 Outotec shares (in 2008:  
265,000) that have been funded by Outotec and accounted as treasury shares in   
Outotec's consolidated balance sheet. At the end of the reporting period, the   
amount of these treasury shares was 332,534.                                    
                                                                                
                                                                                
EXPANSION OF BUSINESS NETWORK                                                   
                                                                                
In May, Outotec announced the agreement with a Finnish company Real Time Systems
Oy to cooperate in the development of a new-generation measuring and regulating 
system for electric arc furnaces. Outotec is funding the development work and is
a minor shareholder of Real Time Systems Oy as well as having a call option on  
the company.                                                                    
                                                                                
In February, Outotec and a Swedish company Skellefteå Kraft AB agreed to        
establish a joint company GreenExergy AB. The company focuses on the            
development, marketing and delivery of bio-energy technologies to power plants  
for the production of bio-energy from forestry and sawmill residues. Outotec's  
stake is 45%, Skellefteå Kraft's 33%, and three Swedish companies each have a   
minor stake in the joint venture.                                               
                                                                                
                                                                                
RESEARCH AND TECHNOLOGY DEVELOPMENT                                             
                                                                                
Outotec's research and technology development expenses in the reporting period  
totaled EUR 10.9 million (Q1-Q2/2008: EUR 9.9 million), representing 2.3% of    
sales (Q1-Q2/2008: 2.0%). Outotec filed 31 new priority patent applications     
(Q1-Q2/2008: 20), and 95 new national patents (Q1-Q2/2008: 119) were granted.   
                                                                                
In May, Outotec and Real Time Systems Oy agreed to cooperate in the development 
of a new-generation measuring and regulating system for electric arc furnaces,  
which are used in steel mills in the production of steel from scarp. The overall
savings gained with the new product will be significant for the furnace         
operators.                                                                      
                                                                                
In May, Outotec committed to the Baltic Sea Action Summit project, which is     
supported by the Finnish government. As part of its commitment to a healthier   
Baltic Sea, Outotec will focus on minimizing metal-containing dusts and sulfur  
dioxide emissions within the metals industry as well as on reducing             
metal-containing effluents.                                                     
                                                                                
In March, Outotec announced the expansion of its technology offerings to two new
sectors: energy and industrial water treatment. Outotec's competencies and      
offerings in the energy sector include coal charring, gasification and          
combustion technologies for various plants, also comprising oil shale pyrolysis.
In the reporting period, oil shale combustion test work was conducted at        
Outotec's Frankfurt Research Center. The test work relates to basic engineering 
for the oil-shale-based oil production plant to be built in Narva, Estonia. As  
part of the expansion, the Swedish joint venture GreenExergy AB offers          
bio-energy technologies for power plants. Offerings for the industrial water    
treatment sector include solutions for concentrators, hydrometallurgical plants,
non-ferrous and ferrous smelters and refineries, sulfuric acid plants, alumina  
plants, closed mines and old tailings ponds.                                    
                                                                                
Outotec and Codelco finished testing the TankCell® 300 flotation cells at       
Chuquicamata, Chile. The results showed a better recovery and lower energy      
consumption than the previous solution. Outotec commissioned a new automated    
Courier® 6i SL slurry analyzer and sampling system at Australia's largest       
underground mine. It is one of the world's most advanced systems in the field of
minerals processing. In January, Outotec launched a new OKTOP® reactor family.  
While all reactors were previously designed individually, the new OKTOP®        
reactors are built from modules which are tailored to give optimum results.     
                                                                                
                                                                                
PERSONNEL                                                                       
                                                                                
At the end of the reporting period, Outotec had a total of 2,549 employees (June
30, 2008: 2,667). The greatest decline in personnel numbers was in South America
due to fewer temporary employees with the greatest increase in personnel in     
North America stemming from the acquisition of Outotec Auburn. For the reporting
period, Outotec had on average 2,569 employees (Q1-Q2/2008: 2,365). The average 
number of personnel increased by 204 individuals from the comparison period     
through acquisition, business growth, and active recruitment in 2008. Temporary 
personnel accounted for about 8% of the total number of employees.              
                                                                                
--------------------------------------------------------------------------------
|                                       |   June 30, |  June 30, |             |
--------------------------------------------------------------------------------
| Distribution of personnel by country  |       2009 |      2008 |    change % |
--------------------------------------------------------------------------------
| Finland                               |        909 |       934 |        -2.7 |
--------------------------------------------------------------------------------
| Germany                               |        400 |       350 |        14.3 |
--------------------------------------------------------------------------------
| Rest of Europe                        |        240 |       241 |        -0.4 |
--------------------------------------------------------------------------------
| Americas                              |        643 |       809 |       -20.5 |
--------------------------------------------------------------------------------
| Australia                             |        199 |       205 |        -2.9 |
--------------------------------------------------------------------------------
| Rest of the world                     |        158 |       128 |        23.4 |
--------------------------------------------------------------------------------
| Total                                 |      2,549 |     2,667 |        -4.4 |
--------------------------------------------------------------------------------
                                                                                
                                                                                
The number of employees has declined by 125, or 5%, since year-end 2008. The    
reductions were mainly related to the temporary employee contracts in the       
Americas, Australia, and some parts of Europe. In contrast, Outotec has         
continued to increase its personnel in Asia. At the end of June 2009, the       
company had, in addition to the personnel on Outotec's payroll, approximately   
350 (March 31, 2009: 520) full-time-equivalent, contracted people working in    
project execution. The number of contracted workers at any given time changes   
with the active project mix and project commissioning, local legislation and    
regulations, and seasonal fluctuations.                                         
In the reporting period, salaries and other employee benefits totaled EUR 80.4  
million (Q1-Q2/2008: EUR 76.7 million).                                         
                                                                                
                                                                                
APPOINTMENT OF NEW CEO                                                          
                                                                                
On June 4, 2009, Outotec's Board of Directors appointed Mr. Pertti Korhonen, 47,
M. Sc. (Electronics Eng.), as the new president and Chief Executive Officer of  
Outotec Oyj. Mr. Korhonen will join Outotec on September 1, 2009, and will begin
serving as Chief Operating Officer on October 1, 2009 and then finally assume   
the CEO duties on January 1, 2010. Current CEO Tapani Järvinen will retire at   
the end of 2009.                                                                
                                                                                
                                                                                
SHARE-BASED INCENTIVE PROGRAMS                                                  
                                                                                
Outotec has two share-based incentive programs for the company's key personnel: 
the first, Incentive Program 2007-2008, was announced on March 23, 2007, and the
second, Incentive Program 2008-2010, was announced on March 3, 2008.            
                                                                                
Share-based incentive program 2007-2008                                         
                                                                                
The program began on January 1, 2007, and ended December 31, 2008. The reward   
compensated to the key personnel was determined by based on whether the targets 
set for the development of the company's net profit and order backlog had been  
reached. The total reward for the two earning periods was EUR 6.5 million, which
was paid to 22 individuals in the second quarter, with 202,779 shares allocated 
and EUR 3.4 million paid in cash to cover taxes.                                
                                                                                
Share-based incentive program 2008-2010                                         
                                                                                
The incentive program for 2008-2010 comprises three earning periods: calendar   
years 2008, 2009, and 2010. The Board of Directors determine the amount of the  
maximum reward for each individual, the earning criteria and the targets        
established for them separately on an annual basis. The reaching of the targets 
established for the earning criteria will determine how great a portion of the  
maximum reward will be paid. For the 2009 and 2010 earning periods, the         
incentive program involves approximately 60 individuals. The reward is paid in  
shares and as a cash payment. The reward will not be paid if the individual's   
employment ends before the close of the earning period. The individual must also
hold the earned shares and remain employed with the company for at least two    
years after the close of the earning period.                                    
                                                                                
For the earning period 2008, 14,687 shares were allocated to 33 individuals and 
EUR 0.2 million paid in cash to cover taxes. Those individuals, who were        
included in the initial share-based incentive program 2007-2008, were not       
included in the 2008 earning period.                                            
                                                                                
                                                                                
RESOLUTIONS OF THE 2009 ANNUAL GENERAL MEETING                                  
                                                                                
Outotec Oyj's Annual General Meeting (AGM) was held on March 18, 2009, in       
Helsinki, Finland. The Annual General Meeting approved the parent company and   
the consolidated financial statements, and discharged the members of the Board  
of Directors and the CEO from liability for the 2008 financial year.            
                                                                                
                                                                                
Dividend                                                                        
                                                                                
The Annual General Meeting decided that a dividend of EUR 1.00 per share be paid
for the financial that year ended on December 31, 2008. The dividends, totaling 
EUR 42.0 million, were paid on March 30, 2009.                                  
                                                                                
The Board of Directors                                                          
                                                                                
The Annual General Meeting decided on the number of the Board members, including
chairman and vice chairman, to be five (5). Mr. Carl-Gustaf Bergström, Mr. Karri
Kaitue, Mr. Hannu Linnoinen, Mr. Anssi Soila and Mr. Risto Virrankoski were     
re-elected as members of the Board of Directors for the term expiring at the end
of the next Annual General Meeting.                                             
                                                                                
The Annual General Meeting re-elected Mr. Risto Virrankoski as the chairman of  
the Board of Directors. In its assembly meeting, the Board re-elected Mr. Karri 
Kaitue as the vice chairman of the Board of Directors. In addition, the Board   
re-elected Mr. Carl-Gustaf Bergström and Mr. Hannu Linnoinen as members of the  
Audit Committee, Mr. Linnoinen acting as the chairman of the Audit Committee.   
                                                                                
The Annual General Meeting also confirmed the remunerations to the Board members
as follows: chairman EUR 5,000 per month and other Board members EUR 3,000 per  
month each, vice chairman and chairman of the Audit Committee an additional EUR 
1,000 per month each. Each Board member also EUR 500 for attendance at each     
Board and Committee meeting as well as reimbursement for direct costs related to
Board work.                                                                     
                                                                                
                                                                                
Board's authorizations                                                          
                                                                                
The Annual General Meeting authorized the Board of Directors to resolve the     
repurchasing of the company's own shares as follows:                            
                                                                                
The company may repurchase a maximum number of 4,200,000 shares using free      
equity and deviating from the shareholders' pre-emptive rights to the shares,   
provided that the number of own shares held by the company will not exceed ten  
(10) percent of all shares in the company.                                      
The shares are to be repurchased in public trading on the NASDAQ OMX Helsinki at
the price established in the trading at the time of acquisition.                
                                                                                
The authorization shall be valid until the next Annual General Meeting.         
                                                                                
The Annual General Meeting authorized the Board of Directors to resolve the     
issuance of shares as follows:                                                  
                                                                                
The authorization includes the right to issue new shares, distribute own shares 
held by the company, and the right to issue special rights referred to in       
Chapter 10, Section 1 of the Companies Act. This authorization to the Board of  
Directors does not, however, entitle the Board of Directors to issue share      
option rights as an incentive to personnel.                                     
The total number of new shares to be issued and own shares held by the company  
to be distributed under the authorization may not exceed 4,200,000 shares.      
The Board of Directors is entitled to decide on the terms of the share issue,   
such as the grounds for determining the subscription price of the shares and the
final subscription price as well as the approval of the subscriptions, the      
allocation of the issued new shares and the final amount of issued shares.      
                                                                                
The authorization shall be valid until the next Annual General Meeting. These   
authorizations have not been exercised as of July 24, 2009.                     
                                                                                
Auditors                                                                        
                                                                                
KPMG Oy Ab, authorized public accountants, has been re-elected as the company's 
auditor, with Mauri Palvi as auditor in charge. The fees for the auditor are    
paid according to invoice.                                                      
                                                                                
The Annual General Meeting decided to amend Section 9 of the Articles of        
Association so that notice to convene the General Meeting shall be issued no    
later than 21 days prior to the General Meeting.                                
                                                                                
                                                                                
SHARES AND SHARE CAPITAL                                                        
                                                                                
Outotec's shares are listed on the NASDAQ OMX Helsinki (OTE1V). Outotec's share 
capital is EUR 16.8 million, consisting of 42.0 million shares. Each share      
entitles its holder to one vote at the company's general shareholder meetings.  
                                                                                
                                                                                
TRADING, MARKET CAPITALIZATION AND SHAREHOLDERS                                 
                                                                                
In the reporting period, the volume-weighted average price for a share in the   
company was EUR 14.16, the highest quotation for a share was EUR 19.48 and the  
lowest EUR 9.30. The trading of Outotec shares in the reporting period exceeded 
57.1 million shares, with a total value of over EUR 810.5 million. On June 30,  
2009, Outotec's market capitalization was EUR 709.8 million and the last        
quotation for the share was EUR 16.90. On June 30, 2009, the company did not    
hold any treasury shares for trading purposes. Outotec has an agreement with a  
third-party service provider concerning administration and hedging of           
share-based incentive program for key personnel. As part of this agreement, for 
hedging the underlying cash flow risk, the service provider has purchased a     
total of 550,000 Outotec shares (in 2008: 265,000) that have been funded by     
Outotec and accounted as treasury shares in Outotec's consolidated balance      
sheet. At the end of the reporting period, the amount of these treasury shares  
was 332,534.                                                                    
                                                                                
On May 6, 2009, Barclays Global Investors UK Holdings Ltd's holding in shares of
Outotec Oyj fell below 5%. Its holding in shares of Outotec was 2,068,377       
shares, which represents 4.92% of the share capital and votes in the company. On
April 7, 2009, Barclays Global Investors UK Holdings Ltd's holding in shares of 
Outotec Oyj exceeded 5%. Barclays Global Investors UK Holdings Ltd's holding in 
shares of Outotec was 2,111,054 shares, which represented 5.02% of the share    
capital and votes in the company. On June 30, 2009, Outotec had 15,027          
shareholders and shares held in 14 nominee registers accounted for some 60% of  
all Outotec shares.                                                             
                                                                                
                                                                                
EVENTS AFTER THE REPORTING PERIOD                                               
                                                                                
In July, Outotec reached an agreement with Eesti Energia for the design,        
delivery and construction of a new oil shale processing plant to be built in    
Narva, Estonia. The contract is valued at approximately EUR 110 million. Outotec
has already done basic engineering for the same plant, which is scheduled for   
commissioning in early 2012.                                                    
                                                                                
Outotec and Eesti Energia entered into a joint venture for the commercialization
of new sustainable oil shale processing technology. Eesti Energia has a 60%     
stake in the new company with Outotec owning the remaining 40%. Under the new   
partnership, the goal is to become a significant supplier of oil shale          
technology solutions, benefiting from Eesti Energia's experience in oil shale   
mining and processing and Outotec's expertise in fluidized bed technologies,    
engineering and project implementation.                                         
                                                                                
                                                                                
SHORT-TERM RISKS AND UNCERTAINTIES                                              
                                                                                
Outotec's customers operate primarily in the mining and metals industry and in  
geographical areas which are at different stages of the economic cycle. The     
current economic down-turn may further reduce the demand for Outotec's products 
and services impacting order intake in 2009. The demand for export credits has  
increased in the reporting period. Possible limitations on the availability of  
export credits and financing as well as changes to project scopes and prices in 
the offer stages may further lengthen sales negotiations and postpone the       
effectiveness of orders. Outotec's gross margin is impacted by product mix and  
license fee income related to certain technologies. Lack of these type of orders
reduce the amount of license fee and subsequently gross margin.                 
                                                                                
Outotec has systematic risk management procedures - Project Risk Identification 
and Management (PRIMA) - in place to monitor projects. In conjunction with      
Outotec's risk assessment for the second quarter in 2009, all unfinished work   
and projects which use the percentage of completion and completed contract      
method were monitored and evaluated and contingencies were updated. Projects    
whose stage of completion was close to 100% were evaluated and provisions for   
performance guarantees and warranty period guarantees, along with possible      
provisions for project losses, were updated. There were no material increases in
the total project risk provisions. At the end of the reporting period, Outotec's
order backlog included roughly EUR 100 million in suspended projects. Based on  
the latest assessment, further postponements, suspensions and cancellations may 
still occur.                                                                    
                                                                                
In the second quarter of 2009, there were no material credit losses related to  
the payments by Outotec's counter-parties. If the economic downturn continues,  
these counterparties may be faced with having to renegotiate some payment terms.
In addition, there is a risk that customers and suppliers will experience       
financial difficulties and that the lack of financing will result in            
bankruptcies, which can also result in some losses for Outotec.                 
                                                                                
More than half of Outotec's total cash flow is denominated in euros. The rest is
divided among various currencies, including the US dollar, Australian dollar,   
Brazilian real, Canadian dollar, and South African rand. The weight of any given
currency in new projects can fluctuate substantially, but most cash-flow-related
risks are hedged in the short and long term. In the short-term, currency        
fluctuations may create volatility in the operating profit. The forecasted and  
probable cash flows are hedged selectively and always on the basis of separate  
decisions and risk analysis. The cost of hedging is taken into account in       
project pricing.                                                                
                                                                                
Outotec's business model is based primarily on customer advance payments and    
on-demand guarantees issued by Outotec's relationship banks. Changes in advance 
payments received have an impact on the liquidity of Outotec. High exposure to  
on-demand guarantees may also increase the risk of claims. Cash held by Outotec 
is invested mainly in short-term bank deposits and, to a lesser extent, in      
Finnish corporate short-term commercial papers. The lower interest rate levels  
reduce the interest income generated from these investments.                    
                                                                                
Outotec is involved in a few legal and arbitration proceedings. During the      
second quarter,Turkey's the Appellate Court of Istanbul has ruled in the favor  
of Bagfas in the pending dispute between Nordea and Bagfas. Nordea was obliged  
to pay Bagfas the value of the bank guarantee and legal fees up to EUR 4.8      
million. According to the provisions of the facility arrangement between Nordea 
and Outotec, the latter has paid all costs and expenses incurred by Nordea. The 
settlement between Nordea and Outotec had no significant impact on the          
second-quarter results because of provisions previously accrued. The arbitration
proceedings between Outotec and Bagfas continue and Outotec has lodged an       
additional claim to cover the losses incurred in Turkey. Management believes    
that the outcome of the other pending proceedings will not have a material      
effect on Outotec's financial result.                                           
                                                                                
                                                                                
OUTLOOK FOR 2009 REITERATED                                                     
                                                                                
The investments in the mining and metals industry will fall from the previous   
year because of the uncertainty in the worldwide economic conditions. There are 
feasibility studies in progress, which may turn into new orders, but the        
decision-making process takes time. Many customers are evaluating project scopes
and prices, but they still face difficulties in arranging financing packages.   
                                                                                
The prevailing uncertainty continues to obscure the outlook for the mining and  
metals industry. On the basis of the first half year result, existing order     
backlog, and new order prospects, the management expects that in 2009:          
             Sales will contract by approximately one quarter from 2008 figure,
             Gross margin will continue on a healthy level, and                
             Operating profit margin will be lower than in 2008 because of     
lower sales volume.                                                             
Operating profit is dependent on exchange rates, product mix, timing of new     
orders, and project completions. Operating profit tends to accrue more toward   
the year-end.                                                                   
                                                                                
                                                                                
Espoo, on July 24, 2009                                                         
                                                                                
                                                                                
Outotec Oyj                                                                     
                                                                                
Board of Directors                                                              
                                                                                
                                                                                
For further information, please contact:                                        
                                                                                
Outotec Oyj                                                                     
                                                                                
Tapani Järvinen, President and CEO                                              
tel. +358 20 529211                                                             
                                                                                
Vesa-Pekka Takala, CFO                                                          
tel. +358 20 529211, mobile +358 40 5700074                                     
                                                                                
Eila Paatela, Vice President - Corporate Communications                         
tel. +358 20 5292004, mobile +358 400 817198                                    
                                                                                
Rita Uotila, Vice President - Investor Relations                                
tel. +358 20 5292003, mobile +358 400 954141                                    
                                                                                
Format for e-mail addresses: firstname.lastname@outotec.com                     
                                                                                
                                                                                
                                                                                
INTERIM FINANCIAL STATEMENTS (unaudited)                                        
                                                                                
--------------------------------------------------------------------------------
| Statement of Comprehensive Income      |   Q2 |   Q2 | Q1-Q | Q1-Q2 |  Q1-Q4 |
|                                        |      |      |    2 |       |        |
--------------------------------------------------------------------------------
| EUR million                            | 2009 | 2008 | 2009 |  2008 |   2008 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Sales                                  | 237. | 275. | 469. | 501.0 | 1,217. |
|                                        |    6 |    5 |    2 |       |      9 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Cost of sales                          | -194 | -219 | -378 | -399. | -956.2 |
|                                        |   .1 |   .6 |   .5 |     1 |        |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Gross profit                           | 43.5 | 55.9 | 90.7 | 101.9 |  261.7 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Other income                           |  3.6 |  0.0 |  4.2 |   3.4 |    0.9 |
--------------------------------------------------------------------------------
| Selling and marketing expenses         | -13. | -11. | -26. | -21.9 |  -48.0 |
|                                        |    1 |    0 |    3 |       |        |
--------------------------------------------------------------------------------
| Administrative expenses                | -13. | -14. | -26. | -27.6 |  -55.1 |
|                                        |    5 |    7 |    7 |       |        |
--------------------------------------------------------------------------------
| Research and development expenses      | -5.8 | -5.3 | -10. |  -9.9 |  -20.2 |
|                                        |      |      |    9 |       |        |
--------------------------------------------------------------------------------
| Other expenses                         | -0.8 | -2.0 | -0.8 |  -2.1 |  -19.1 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Operating profit                       | 13.9 | 22.9 | 30.2 |  43.8 |  120.2 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Finance income and expenses            |      |      |      |       |        |
--------------------------------------------------------------------------------
|   Interest income and expenses         |  1.4 |  3.9 |  3.2 |   7.6 |   16.4 |
--------------------------------------------------------------------------------
|   Market price gains and losses        | -0.7 |  0.9 |  0.3 |   0.4 |    3.2 |
--------------------------------------------------------------------------------
|   Other finance income and expenses    | -1.1 | -0.8 | -2.2 |  -1.9 |   -3.4 |
--------------------------------------------------------------------------------
| Net finance income                     | -0.3 |  4.0 |  1.4 |   6.1 |   16.1 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Profit before income taxes             | 13.6 | 26.8 | 31.6 |  50.0 |  136.3 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Income tax expenses                    | -4.3 | -8.2 | -9.8 | -15.0 |  -42.4 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Profit for the period                  |  9.3 | 18.7 | 21.8 |  34.9 |   93.9 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Other comprehensive income             |      |      |      |       |        |
--------------------------------------------------------------------------------
|   Exchange differences on translating  |      |      |      |       |        |
| foreign                                |  7.5 |  3.9 | 11.1 |  -1.8 |  -21.7 |
|   operations                           |      |      |      |       |        |
--------------------------------------------------------------------------------
|   Cash flow hedges                     |  2.5 | -1.4 |  1.4 |   2.2 |  -12.6 |
--------------------------------------------------------------------------------
|     Income tax relating to cash flow   | -0.6 |  0.4 | -0.1 |  -0.6 |    3.1 |
| hedges                                 |      |      |      |       |        |
--------------------------------------------------------------------------------
|   Available for sale financial assets  | -0.0 | -0.7 | -0.2 |  -1.9 |   -2.1 |
--------------------------------------------------------------------------------
| Other comprehensive income for the     |  9.4 |  2.1 | 12.3 |  -2.2 |  -33.3 |
| period                                 |      |      |      |       |        |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Total comprehensive income for the     | 18.7 | 20.8 | 34.1 |  32.8 |   60.6 |
| period                                 |      |      |      |       |        |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Profit for the period attributable to: |      |      |      |       |        |
--------------------------------------------------------------------------------
| Equity holders of the parent company   |  9.3 | 18.7 | 21.8 |  35.0 |   94.0 |
--------------------------------------------------------------------------------
| Minority interest                      |    - |    - |    - |  -0.0 |   -0.0 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Total comprehensive income for the     |      |      |      |       |        |
| period attributable to:                |      |      |      |       |        |
--------------------------------------------------------------------------------
| Equity holders of the parent company   | 18.7 | 20.8 | 34.1 |  32.8 |   60.6 |
--------------------------------------------------------------------------------
| Minority interest                      |    - |    - |    - |  -0.0 |   -0.0 |
--------------------------------------------------------------------------------
|                                        |      |      |      |       |        |
--------------------------------------------------------------------------------
| Earnings per share for profit attributable to the equity                     |
--------------------------------------------------------------------------------
| holders of the parent company:         |      |      |      |       |        |
--------------------------------------------------------------------------------
| Basic earnings per share, EUR          | 0.22 | 0.44 | 0.53 |  0.83 |   2.25 |
--------------------------------------------------------------------------------
| Diluted earnings per share, EUR        | 0.22 | 0.44 | 0.53 |  0.83 |   2.25 |
--------------------------------------------------------------------------------
                                                                                
All figures in the tables have been rounded and consequently the sum of         
individual figures may deviate from the sum presented. Key figures have been    
calculated using exact figures.                                                 
                                                                                
--------------------------------------------------------------------------------
| Condensed Statement of Financial Position   |   June |    June |    December |
|                                             |    30, |     30, |         31, |
--------------------------------------------------------------------------------
| EUR million                                 |   2009 |    2008 |        2008 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| ASSETS                                      |        |         |             |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| Non-current assets                          |        |         |             |
--------------------------------------------------------------------------------
| Intangible assets                           |   82.9 |    74.3 |        81.4 |
--------------------------------------------------------------------------------
| Property, plant and equipment               |   32.1 |    25.1 |        29.5 |
--------------------------------------------------------------------------------
| Non-current financial assets                |        |         |             |
--------------------------------------------------------------------------------
| Interest-bearing                            |    0.4 |     1.7 |         0.5 |
--------------------------------------------------------------------------------
| Non interest-bearing                        |   23.3 |    15.2 |        21.3 |
--------------------------------------------------------------------------------
| Total non-current assets                    |  138.7 |   116.3 |       132.7 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| Current assets                              |        |         |             |
--------------------------------------------------------------------------------
| Inventories *)                              |  102.2 |    93.9 |        87.7 |
--------------------------------------------------------------------------------
| Current financial assets                    |        |         |             |
--------------------------------------------------------------------------------
|   Interest-bearing                          |    0.5 |     0.7 |         0.4 |
--------------------------------------------------------------------------------
|   Non interest-bearing                      |  269.8 |   225.9 |       323.2 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                   |  281.6 |   358.0 |       317.8 |
--------------------------------------------------------------------------------
| Total current assets                        |  654.2 |   678.4 |       729.1 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| TOTAL ASSETS                                |  792.9 |   794.7 |       861.8 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| EQUITY AND LIABILITIES                      |        |         |             |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| Equity                                      |        |         |             |
--------------------------------------------------------------------------------
| Equity attributable to the equity holders   |  219.0 |   198.7 |       226.4 |
| of the parent company                       |        |         |             |
--------------------------------------------------------------------------------
| Total equity                                |  219.0 |   198.7 |       226.4 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| Non-current liabilities                     |        |         |             |
--------------------------------------------------------------------------------
| Interest-bearing                            |    2.3 |     1.2 |         2.6 |
--------------------------------------------------------------------------------
| Non interest-bearing                        |   72.3 |    67.6 |        74.3 |
--------------------------------------------------------------------------------
| Total non-current liabilities               |   74.6 |    68.7 |        76.9 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| Current liabilities                         |        |         |             |
--------------------------------------------------------------------------------
| Interest-bearing                            |    1.9 |     0.7 |         1.5 |
--------------------------------------------------------------------------------
| Non interest-bearing                        |        |         |             |
--------------------------------------------------------------------------------
|   Advances received **)                     |  248.3 |   298.1 |       214.0 |
--------------------------------------------------------------------------------
|   Other non interest-bearing liabilites     |  248.9 |   228.5 |       343.0 |
--------------------------------------------------------------------------------
| Total current liabilities                   |  499.2 |   527.3 |       558.4 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| Total liabilities                           |  573.8 |   596.0 |       635.4 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND LIABILITIES                |  792.9 |   794.7 |       861.8 |
--------------------------------------------------------------------------------
|                                             |        |         |             |
--------------------------------------------------------------------------------
                                                                                
*) Of which advances paid for inventories amounted to EUR 25.3 million at June  
30, 2009 (June 30, 2008: EUR 16.7 million and at December 31, 2008: EUR 16.4    
million).                                                                       
                                                                                
**) Gross advances received before percentage of completion revenue recognition 
amounted to EUR 1,070.0 million at June 30, 2009 (June 30, 2008: EUR 907.8      
million and at December 31, 2008: EUR 909.3 million).                           
                                                                                
--------------------------------------------------------------------------------
| Condensed Statement of cash flows                 | Q1-Q2 |  Q1-Q2 |   Q1-Q4 |
--------------------------------------------------------------------------------
| EUR million                                       |  2009 |   2008 |    2008 |
--------------------------------------------------------------------------------
| Cash flows from operating activities              |       |        |         |
--------------------------------------------------------------------------------
| Profit for the period                             |  21.8 |   34.9 |    93.9 |
--------------------------------------------------------------------------------
| Adjustments for                                   |       |        |         |
--------------------------------------------------------------------------------
|   Depreciation and amortization                   |   5.8 |    5.9 |    11.0 |
--------------------------------------------------------------------------------
|   Other adjustments                               |  10.9 |    9.6 |    13.5 |
--------------------------------------------------------------------------------
| Increase (-) / decrease (+) in working capital    | -16.3 |   86.7 |     7.9 |
--------------------------------------------------------------------------------
| Interest received                                 |   3.7 |    7.7 |    17.2 |
--------------------------------------------------------------------------------
| Interest paid                                     |  -0.4 |   -0.1 |    -0.4 |
--------------------------------------------------------------------------------
| Income tax paid                                   | -13.0 |  -20.4 |   -36.6 |
--------------------------------------------------------------------------------
| Net cash from operating activities                |  12.6 |  124.2 |   106.6 |
--------------------------------------------------------------------------------
|                                                   |       |        |         |
--------------------------------------------------------------------------------
| Purchases of assets                               |  -9.0 |   -6.4 |   -15.2 |
--------------------------------------------------------------------------------
| Acquisition of subsidiaries, net of cash          |  -2.8 |      - |    -7.6 |
--------------------------------------------------------------------------------
| Proceeds from sale of assets                      |   0.4 |    0.1 |     0.7 |
--------------------------------------------------------------------------------
| Change in other investing activities              |  -0.0 |      - |       - |
--------------------------------------------------------------------------------
| Net cash used in investing activities             | -11.5 |   -6.4 |   -22.1 |
--------------------------------------------------------------------------------
| Cash flow before financing activities             |   1.1 |  117.9 |    84.5 |
--------------------------------------------------------------------------------
|                                                   |       |        |         |
--------------------------------------------------------------------------------
| Borrowings (+) / repayments (-) of non-current    |  -0.1 |   -0.2 |     0.2 |
| debt                                              |       |        |         |
--------------------------------------------------------------------------------
| Increase in current debt                          |   0.7 |      - |     1.1 |
--------------------------------------------------------------------------------
| Purchase of treasury shares                       |  -3.3 |   -9.3 |    -9.4 |
--------------------------------------------------------------------------------
| Dividends paid                                    | -42.0 |  -39.9 |   -39.9 |
--------------------------------------------------------------------------------
| Change in other financing activities              |   0.1 |    0.1 |     0.8 |
--------------------------------------------------------------------------------
| Net cash used in financing activities             | -44.6 |  -49.3 |   -47.3 |
--------------------------------------------------------------------------------
|                                                   |       |        |         |
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents           | -43.5 |   68.6 |    37.3 |
--------------------------------------------------------------------------------
|                                                   |       |        |         |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the beginning of the | 317.8 |  291.0 |   291.0 |
| period                                            |       |        |         |
--------------------------------------------------------------------------------
| Foreign exchange rate effect on cash and cash     |   7.4 |   -1.6 |   -10.5 |
| equivalents                                       |       |        |         |
--------------------------------------------------------------------------------
| Net change in cash and cash equivalents           | -43.5 |   68.6 |    37.3 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at the end of the       | 281.6 |  358.0 |   317.8 |
| period                                            |       |        |         |
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
| Statement of changes in equity                                               |
--------------------------------------------------------------------------------
                                                                                
A = Share capital                                                               
B = Share premium fund                                                          
C = Other reserves                                                              
D = Fair value reserves                                                         
E = Treasury shares                                                             
F = Cumulative translation differences                                          
G = Retained earnings                                                           
H = Minority interest                                                           
I = Total equity                                                                
                                                                                
--------------------------------------------------------------------------------
|                   | Attributable to the equity holders of the      |         |
|                   | parent company                                 |         |
--------------------------------------------------------------------------------
| EUR million       |   A |   B |   C |   D |   E |    F |     G |     H |   I |
--------------------------------------------------------------------------------
| Equity at January | 16. | 20. | 0.2 | 7.9 |   - |  5.7 | 164.0 |   0.1 | 214 |
| 1, 2008           |   8 |   2 |     |     |     |      |       |       |  .8 |
--------------------------------------------------------------------------------
| Dividends paid    |   - |   - |   - |   - |   - |    - | -39.9 |     - | -39 |
|                   |     |     |     |     |     |      |       |       |  .9 |
--------------------------------------------------------------------------------
| Purchase of       |   - |   - |   - |   - | -9. |    - |     - |     - | -9. |
| treasury shares   |     |     |     |     |   3 |      |       |       |   3 |
| *)                |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Share-based       |     |     |     |     |     |      |       |       |     |
| payments:         |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
|    value of       |   - |   - |   - |   - |   - |    - |   0.1 |     - | 0.1 |
| received services |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Acquisition of    |   - |   - |   - |   - |   - |    - |     - |  -0.0 | -0. |
| minority interest |     |     |     |     |     |      |       |       |   0 |
--------------------------------------------------------------------------------
| Total             |     |     |     |     |     |      |       |       |     |
| comprehensive     |   - |   - |   - | -0. |   - | -1.8 |  35,0 |  -0.0 | 32. |
| income for the    |     |     |     |   4 |     |      |       |       |   8 |
| period            |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Other changes     |   - |   - |   - |   - |   - |    - |   0.2 |     - | 0.2 |
--------------------------------------------------------------------------------
| Equity at June    | 16. | 20. | 0.2 | 7.5 | -9. |  3.9 | 159.4 |     - | 198 |
| 30, 2008          |   8 |   2 |     |     |   3 |      |       |       |  .7 |
--------------------------------------------------------------------------------
|                   |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Equity at January | 16. | 20. | 0.1 | -3. | -9. | -16. | 218.5 |     - | 226 |
| 1, 2009           |   8 |   2 |     |   7 |   4 |    0 |       |       |  .4 |
--------------------------------------------------------------------------------
| Dividends paid    |   - |   - |   - |   - |   - |    - | -42.0 |     - | -42 |
|                   |     |     |     |     |     |      |       |       |  .0 |
--------------------------------------------------------------------------------
| Purchase of       |   - |   - |   - |   - | -3. |    - |     - |     - | -3. |
| treasury shares   |     |     |     |     |   3 |      |       |       |   3 |
| *)                |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Treasury shares   |     |     |     |     |     |      |       |       |     |
| issued to key     |   - |   - |   - |   - | 8.1 |    - |  -4.8 |     - | 3.3 |
| employees         |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Share-based       |     |     |     |     |     |      |       |       |     |
| payments:         |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
|    value of       |   - |   - |   - |   - |   - |    - |  -0.1 |     - | -0. |
| received services |     |     |     |     |     |      |       |       |   1 |
--------------------------------------------------------------------------------
| Total             |     |     |     |     |     |      |       |       |     |
| comprehensive     |   - |   - |   - | 1.1 |   - | 11.1 |  21.8 |     - | 34. |
| income for the    |     |     |     |     |     |      |       |       |   1 |
| period            |     |     |     |     |     |      |       |       |     |
--------------------------------------------------------------------------------
| Other changes     |   - |   - |   - |   - |   - |    - |   0.6 |     - | 0.6 |
--------------------------------------------------------------------------------
| Equity at June    | 16. | 20. | 0.1 | -2. | -4. | -4.9 | 193.9 |     - | 219 |
| 30, 2009          |   8 |   2 |     |   6 |   6 |      |       |       |  .0 |
--------------------------------------------------------------------------------
                                                                                
                                                                                
*)  Outotec has an agreement with a third-party service provider concerning     
administration and hedging of share-based incentive program for key personnel.  
As part of this agreement, for hedging the underlying cash flow risk, the       
service provider has purchased 285,000 Outotec shares during year 2009 (2008:   
265,000) that have been funded by Outotec and accounted as treasury shares in   
Outotec's consolidated balance sheet.                                           
                                                                                
--------------------------------------------------------------------------------
| Key figures                     |  Q2 |   Q2 | Q1-Q2 | Q1-Q2 |  Last | Q1-Q4 |
|                                 |     |      |       |       |    12 |       |
--------------------------------------------------------------------------------
|                                 | 200 | 2008 |  2009 |  2008 | month |  2008 |
|                                 |   9 |      |       |       |     s |       |
--------------------------------------------------------------------------------
| Sales, EUR million              | 237 | 275. | 469.2 | 501.0 |     1 |     1 |
|                                 |  .6 |    5 |       |       | 186.1 | 217.9 |
--------------------------------------------------------------------------------
| Gross margin, %                 | 18. | 20.3 |  19.3 |  20.3 |  21.1 |  21.5 |
|                                 |   3 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Operating profit, EUR million   | 13. | 22.9 |  30.2 |  43.8 | 106.6 | 120.2 |
|                                 |   9 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Operating profit margin, %      | 5.9 |  8.3 |   6.4 |   8.7 |   9.0 |   9.9 |
--------------------------------------------------------------------------------
| Profit before taxes, EUR        | 13. | 26.8 |  31.6 |  50.0 | 117.9 | 136.3 |
| million                         |   6 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Profit before taxes in relation | 5.7 |  9.7 |   6.7 |  10.0 |   9.9 |  11.2 |
| to sales, %                     |     |      |       |       |       |       |
--------------------------------------------------------------------------------
| Net cash from operating         | 23. | 83.6 |  12.6 | 124.2 |  -5.0 | 106.6 |
| activities, EUR million         |   4 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Net interest-bearing debt at    |     |      |       |       |       |       |
| the end of period, EUR million  | -27 | -358 | -278. | -358. | -278. | -314. |
|                                 | 8.3 |   .5 |     3 |     5 |     3 |     6 |
--------------------------------------------------------------------------------
| Gearing at the end of period, % | -12 | -180 | -127. | -180. | -127. | -139. |
|                                 | 7.1 |   .4 |     1 |     4 |     1 |     0 |
--------------------------------------------------------------------------------
| Equity-to-assets ratio at the   | 40. | 40.0 |  40.2 |  40.0 |  40.2 |  35.0 |
| end of period, %                |   2 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Working capital at the end of   | -15 | -240 | -150. | -240. | -150. | -171. |
| period, EUR million             | 0.7 |   .3 |     7 |     3 |     7 |     2 |
--------------------------------------------------------------------------------
| Capital expenditure, EUR        | 4.5 |  3.0 |   9.2 |   6.3 |  26.8 |  23.9 |
| million                         |     |      |       |       |       |       |
--------------------------------------------------------------------------------
| Capital expenditure in relation | 1.9 |  1.1 |   2.0 |   1.3 |   2.3 |   2.0 |
| to sales, %                     |     |      |       |       |       |       |
--------------------------------------------------------------------------------
| Return on investment, %         | 30. | 60.0 |  30.9 |  50.1 |  56.8 |  61.6 |
|                                 |   8 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Return on equity, %             | 17. | 39.6 |  19.6 |  33.8 |  38.7 |  42.6 |
|                                 |   9 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Order backlog at the end of     | 966 |    1 | 966.6 | 1,548 | 966.6 | 1,176 |
| period, EUR million             |  .6 | 548. |       |    .4 |       |    .7 |
|                                 |     |    4 |       |       |       |       |
--------------------------------------------------------------------------------
| Order intake, EUR million       | 105 | 475. | 245.1 | 774.2 | 624.7 | 1,153 |
|                                 |  .8 |    4 |       |       |       |    .8 |
--------------------------------------------------------------------------------
| Personnel, average for the      | 2,5 | 2,54 | 2,569 | 2,365 | 2,585 | 2,483 |
| period                          |  40 |    5 |       |       |       |       |
--------------------------------------------------------------------------------
| Profit for the period in        | 3.9 |  6.8 |   4.7 |   7.0 |   6.8 |   7.7 |
| relation to sales, %            |     |      |       |       |       |       |
--------------------------------------------------------------------------------
| Research and development        | 5.8 |  5.3 |  10.9 |   9.9 |  21.2 |  20.2 |
| expenses, EUR million           |     |      |       |       |       |       |
--------------------------------------------------------------------------------
| Research and development        |     |      |       |       |       |       |
| expenses in relation to sales,  | 2.4 |  1.9 |   2.3 |   2.0 |   1.8 |   1.7 |
| %                               |     |      |       |       |       |       |
--------------------------------------------------------------------------------
| Earnings per share, EUR         | 0.2 | 0.44 |  0.53 |  0.83 |  1.94 |  2.25 |
|                                 |   2 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Equity per share, EUR           | 5.2 | 4.73 |  5.26 |  4.73 |  5.26 |  5.43 |
|                                 |   6 |      |       |       |       |       |
--------------------------------------------------------------------------------
| Dividend per share, EUR         |   - |    - |     - |     - |  1.00 |  1.00 |
--------------------------------------------------------------------------------
                                                                                
NOTES TO THE INCOME STATEMENT AND BALANCE SHEET                                 
                                                                                
These interim financial statements are prepared in accordance with IAS 34       
Interim Financial Reporting. The same accounting policies and methods have been 
applied to these interim financial statements as in the recent annual financial 
statements. These interim financial statements are unaudited.                   
                                                                                
Adoption of new interpretations                                                 
                                                                                
Outotec has applied the following revised standards from beginning of 2009:     
           IAS 1 Presentation of financial statements. The revised standard    
aims to separate the transactions in equity to transactions with owners and     
other changes in equity. The changes have impact on presentation of interim and 
financial statements.                                                           
           IFRS 8 Operating segments. The aim of the new standard is for the   
entity to adopt a management approach in reporting the financial performance of 
each segment. The application of the new standard has not changed Outotec's     
operating segments since the company had been reporting the same segments as in 
management reporting. The new standard's main impact will be on the disclosure  
information.                                                                    
                                                                                
Outotec has also applied the following revised standards and interpretation from
beginning 2009, which do not impact on the Group's interim financial statements 
or financial statements.                                                        
            IFRS 2 Share-based Payment - Vesting Conditions and Cancellations  
(effective date January 1, 2009).                                               
            IAS 23 Borrowing costs (effective date January 1, 2009).           
            IAS 32 Financial Instruments: Presentation and IAS 1 Presentation  
of Financial Statements - Puttable  Financial Instruments and Obligations       
Arising on Liquidation (effective date January 1, 2009).                        
           IFRIC 16 Hedges of a Net Investment in a Foreign Operation          
(effective date October 1, 2008).                                               
                                                                                
Outotec will estimate the impact of the following standards and will apply the  
new standards from the financial period beginning January 1, 2010 onwards:      
           IFRS 3 Business combinations (effective date for annual periods     
beginning on or after July 1, 2009).                                            
           IAS 27 Consolidated and separate financial statements (effective    
date for annual periods beginning on or after July, 1 2009).                    
           IAS 39 Financial instruments: Recognition and Measurement (effective
date for annual periods beginning on or after July, 1 2009). The amended        
standard has not yet been approved to be applied in the EU.                     
                                                                                
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 during 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, impairment of goodwill. These estimates are based on 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 interim financial      
statements.                                                                     
                                                                                
                                                                                
--------------------------------------------------------------------------------
| Major non-recurring items in operating profit |  Q1-Q2 |  Q1-Q2 |      Q1-Q4 |
--------------------------------------------------------------------------------
| EUR million                                   |   2009 |   2008 |       2008 |
--------------------------------------------------------------------------------
| Loss on sale of Intune Circuits Ltd.          |      - |   -1.0 |       -1.1 |
--------------------------------------------------------------------------------
| Arbitration settlement                        |    2.5 |      - |       -8.5 |
--------------------------------------------------------------------------------
|                                               |        |        |            |
--------------------------------------------------------------------------------
| Income tax expenses                           |  Q1-Q2 |  Q1-Q2 |      Q1-Q4 |
--------------------------------------------------------------------------------
| EUR million                                   |   2009 |   2008 |       2008 |
--------------------------------------------------------------------------------
| Current taxes                                 |   -9.0 |   -8.5 |      -37.4 |
--------------------------------------------------------------------------------
| Deferred taxes                                |   -0.8 |   -6.6 |       -5.0 |
--------------------------------------------------------------------------------
| Total income tax expenses                     |   -9.8 |  -15.0 |      -42.4 |
--------------------------------------------------------------------------------
|                                               |        |        |            |
--------------------------------------------------------------------------------
| Property, plant and equipment                 |   June |   June |   December |
|                                               |    30, |    30, |        31, |
--------------------------------------------------------------------------------
| EUR million                                   |   2009 |   2008 |       2008 |
--------------------------------------------------------------------------------
| Historical cost at the beginning of the       |   87.6 |   81.3 |       81.3 |
| period                                        |        |        |            |
--------------------------------------------------------------------------------
| Translation differences                       |    1.9 |   -1.0 |       -3.3 |
--------------------------------------------------------------------------------
| Additions                                     |    5.3 |    4.7 |       10.7 |
--------------------------------------------------------------------------------
| Disposals                                     |   -0.6 |   -0.8 |       -3.3 |
--------------------------------------------------------------------------------
| Acquired subsidiaries                         |      - |      - |        2.1 |
--------------------------------------------------------------------------------
| Reclassifications                             |    0.0 |   -0.1 |        0.0 |
--------------------------------------------------------------------------------
| Historical cost at the end of the period      |   94.3 |   84.1 |       87.6 |
--------------------------------------------------------------------------------
|                                               |        |        |            |
--------------------------------------------------------------------------------
| Accumulated depreciation and impairment at    |        |        |            |
| the beginning of the period                   |  -58.1 |  -56.7 |      -56.7 |
--------------------------------------------------------------------------------
| Translation differences                       |   -1.0 |    0.6 |        2.0 |
--------------------------------------------------------------------------------
| Disposals                                     |    0.2 |    0.7 |        3.1 |
--------------------------------------------------------------------------------
| Reclassifications                             |    0.0 |   -0.0 |        0.0 |
--------------------------------------------------------------------------------
| Depreciation during the period                |   -3.3 |   -3.6 |       -6.4 |
--------------------------------------------------------------------------------
| Accumulated depreciation and impairment at    |        |        |            |
| the end of the period                         |  -62.2 |  -59.0 |      -58.1 |
--------------------------------------------------------------------------------
|                                               |        |        |            |
--------------------------------------------------------------------------------
| Carrying value at the end of the period       |   32.1 |   25.1 |       29.5 |
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
| Commitments and contingent liabilities   |    June | June 30, | December 31, |
|                                          |     30, |          |              |
--------------------------------------------------------------------------------
| EUR million                              |    2009 |     2008 |         2008 |
--------------------------------------------------------------------------------
| Pledges                                  |     1.8 |      1.6 |          3.0 |
--------------------------------------------------------------------------------
| Guarantees for commercial commitments    |   192.7 |    178.1 |        166.5 |
--------------------------------------------------------------------------------
| Minimum future lease payments on         |    66.1 |     43.2 |         68.7 |
| operating leases                         |         |          |              |
--------------------------------------------------------------------------------
                                                                                
The pledges are used to secure local credit facilities of the Group's Canadian  
subsidiaries.                                                                   
                                                                                
The above value of commercial guarantees does not include advance payment       
guarantees issued by the parent or other group companies. The total amount of   
guarantees for financing issued by group companies amounted to EUR 4.9 million  
at June 30, 2009 (June 30, 2008: EUR 4.3 million and at December 31, 2008: EUR  
8.5 million) and for commercial guarantees including advance payment quarantees 
EUR 328.2 million at June 30, 2009 (June 30, 2008: EUR  415.6 million and at    
December 31, 2008: EUR 353.8 million).                                          
                                                                                
--------------------------------------------------------------------------------
| Derivative instruments      |             |             |                    |
--------------------------------------------------------------------------------
| Currency forwards           |    June 30, |    June 30, |       December 31, |
--------------------------------------------------------------------------------
| EUR million                 |        2009 |        2008 |               2008 |
--------------------------------------------------------------------------------
| Fair values, net            |      -6.0*) |     17.5**) |          -12.7***) |
--------------------------------------------------------------------------------
| Nominal values              |       345.5 |       382.1 |              378.3 |
--------------------------------------------------------------------------------
                                                                                
*) of which EUR -2.8 million designated as cash flow hedges.                    
**) of which EUR 13.6 million designated as cash flow hedges.                   
***) of which EUR -5.1 million designated as cash flow hedges.                  
                                                                                
--------------------------------------------------------------------------------
| Related party transactions                                                   |
--------------------------------------------------------------------------------
|                                                                              |
--------------------------------------------------------------------------------
| Balances with key management                                                 |
--------------------------------------------------------------------------------
                                                                                
At June 30, 2009, there was no outstanding loan payble to the President of      
Auburn Group (December 31, 2008: EUR 2.2 million). The payable was related to   
payment terms of Auburn Group acquisition. The final loan payable was paid to   
the President of Auburn Group according to acquisition contract during the      
second quarter of 2009.                                                         
                                                                                
--------------------------------------------------------------------------------
| Transactions and balances with associated       |  Q1-Q2 |   Q1-Q2 |   Q1-Q4 |
| companies                                       |        |         |         |
--------------------------------------------------------------------------------
| EUR million                                     |   2009 |    2008 |    2008 |
--------------------------------------------------------------------------------
| Trade and other receivables                     |      - |     0.1 |       - |
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
| Business Combinations                                                        |
--------------------------------------------------------------------------------
| Acquisition of Auburn Group                                                  |
--------------------------------------------------------------------------------
                                                                                
Outotec acquired Auburn Group, on October 10, 2008. The company provides        
maintenance and technical services for the mining and metals industries mainly  
in Canada and Chile.                                                            
                                                                                
In 2008, the sales of Auburn Group was approximately EUR 20.0 million (CAD 31.2 
million) and the operating profit approximately EUR 0.1 million. The sales of   
the acquired Auburn Group for October 10, 2008 - December 31, 2008 totaled EUR  
3.0 million and the operating profit EUR -0.2 million. Outotec Auburn is        
reported in Other Businesses segment.                                           
                                                                                
The acquisition price was EUR 10.3 million (CAD 15.8 million). The total        
acquision cost EUR 10.8 million includes also acquisition related costs of EUR  
0.5 million.                                                                    
                                                                                
--------------------------------------------------------------------------------
|                                  |                    |                      |
|                                  |        Fair values |     Carrying amounts |
| EUR million                      |        recorded on | prior to acquisition |
|                                  |        acquisition |                      |
--------------------------------------------------------------------------------
|                                  |                    |                      |
--------------------------------------------------------------------------------
| Trademarks and patents (included |                0.7 |                    - |
| in intangible assets)            |                    |                      |
--------------------------------------------------------------------------------
| Customer contract and customer   |                0.6 |                    - |
| relationships (included in       |                    |                      |
| intangible assets)               |                    |                      |
--------------------------------------------------------------------------------
| Property, plant and equipment    |                2.3 |                  2.3 |
--------------------------------------------------------------------------------
| Inventories                      |                0.6 |                  0.6 |
--------------------------------------------------------------------------------
| Trade and other receivables      |                3.9 |                  3.9 |
--------------------------------------------------------------------------------
| Cash and cash equivalents        |                0.4 |                  0.4 |
--------------------------------------------------------------------------------
| Total assets                     |                8.5 |                  7.2 |
--------------------------------------------------------------------------------
|                                  |                    |                      |
--------------------------------------------------------------------------------
| Interest-bearing liabilities     |                0.9 |                  0.9 |
--------------------------------------------------------------------------------
| Deferred tax liabilities         |                0.4 |                    - |
--------------------------------------------------------------------------------
| Trade and other payables         |                3.4 |                  3.4 |
--------------------------------------------------------------------------------
| Total liabilities                |                4.7 |                  4.2 |
--------------------------------------------------------------------------------
|                                  |                    |                      |
--------------------------------------------------------------------------------
| Net assets                       |                3.8 |                  3.0 |
--------------------------------------------------------------------------------
|                                  |                    |                      |
--------------------------------------------------------------------------------
| Acquisition cost                 |               10.8 |                      |
--------------------------------------------------------------------------------
| Goodwill                         |                7.0 |                      |
--------------------------------------------------------------------------------
|                                  |                    |                      |
--------------------------------------------------------------------------------
| Acquisition cost, paid           |               10.8 |                      |
--------------------------------------------------------------------------------
| Cash and cash equivalents in     |                0.4 |                      |
| subsidiaries acquired            |                    |                      |
--------------------------------------------------------------------------------
| Cash outflow on acquisition      |               10.4 |                      |
--------------------------------------------------------------------------------
                                                                                
Effect of Auburn Group acquisition on Outotec Group's sales and operating profit
in 2008                                                                         
                                                                                
Outotec's sales for January 1, 2008 - December 31, 2008 would have been EUR     
1,234.9 million and operating profit EUR 120.5 million if the acquisition       
carried out during the period had been completed on January 1, 2008.            
                                                                                
                                                                                
                                                                                
--------------------------------------------------------------------------------
| Segments' sales and operating profit by quarters                             |
--------------------------------------------------------------------------------
|                     |     |     |     |     |     |     |      |      |      |
--------------------------------------------------------------------------------
| EUR million         | Q2/ | Q3/ | Q4/ | Q1/ | Q2/ | Q3/ | Q4/0 | Q1/0 | Q2/0 |
|                     |  07 |  07 |  07 |  08 |  08 |  08 |    8 |    9 |    9 |
--------------------------------------------------------------------------------
| Sales               |     |     |     |     |     |     |      |      |      |
--------------------------------------------------------------------------------
| Minerals Processing | 64. | 72. | 110 | 60. | 92. | 122 | 144. | 84.5 | 91.1 |
|                     |   6 |   7 |  .5 |   1 |   7 |  .0 |    8 |      |      |
--------------------------------------------------------------------------------
| Base Metals         | 64. | 64. | 85. | 60. | 72. | 76. | 86.4 | 44.8 | 29.6 |
|                     |   5 |   1 |   6 |   1 |   0 |   9 |      |      |      |
--------------------------------------------------------------------------------
| Metals Processing   | 100 | 113 | 120 | 104 | 109 | 116 | 163. | 97.2 | 103. |
|                     |  .9 |  .0 |  .8 |  .6 |  .2 |  .9 |    9 |      |    4 |
--------------------------------------------------------------------------------
| Other Businesses    | 8.9 | 11. | 11. | 9.1 | 16. | 11. | 18.8 | 18.3 | 20.0 |
|                     |     |   1 |   1 |     |   7 |   4 |      |      |      |
--------------------------------------------------------------------------------
| Unallocated items   |     |     |     |     |     |     |      |      |      |
| *) and intra-group  | -11 | -15 | -12 | -8. | -15 | -9. | -15. | -13. | -6.5 |
| sales               |  .7 |  .0 |  .5 |   3 |  .0 |   2 |    1 |    2 |      |
--------------------------------------------------------------------------------
| Total               | 227 | 245 | 315 | 225 | 275 | 318 | 398. | 231. | 237. |
|                     |  .1 |  .9 |  .5 |  .6 |  .5 |  .1 |    8 |    6 |    6 |
--------------------------------------------------------------------------------
|                     |     |     |     |     |     |     |      |      |      |
--------------------------------------------------------------------------------
| Operating profit    |     |     |     |     |     |     |      |      |      |
--------------------------------------------------------------------------------
| Minerals Processing | 3.3 | 3.6 | 16. | 4.1 | 3.2 | 3.1 | 12.1 |  6.1 |  7.9 |
|                     |     |     |   3 |     |     |     |      |      |      |
--------------------------------------------------------------------------------
| Base Metals         | 13. | 12. | 9.3 | 6.3 | 11. | 13. | 17.2 |  4.3 | -0.4 |
|                     |   2 |   1 |     |     |   9 |   3 |      |      |      |
--------------------------------------------------------------------------------
| Metals Processing   | 10. | 11. | 11. | 12. | 11. | 14. | 22.1 |  8.9 |  9.3 |
|                     |   5 |   5 |   5 |   3 |   8 |   9 |      |      |      |
--------------------------------------------------------------------------------
| Other Businesses    | 0.6 | 1.3 | 0.3 | 0.4 | 1.2 | 1.7 |  0.7 | -0.4 | -0.1 |
--------------------------------------------------------------------------------
| Unallocated and     |     |     |     |     |     |     |      |      |      |
| intra-group items   | -4. | -2. | -4. | -2. | -5. | -4. | -4.6 | -2.7 | -2.7 |
| **)                 |   1 |   5 |   4 |   2 |   1 |   1 |      |      |      |
--------------------------------------------------------------------------------
| Total               | 23. | 26. | 33. | 21. | 22. | 28. | 47.5 | 16.3 | 13.9 |
|                     |   4 |   0 |   0 |   0 |   9 |   9 |      |      |      |
--------------------------------------------------------------------------------
                                                                                
*) Unallocated items primarily include invoicing of internal management and     
administrative services.                                                        
**) Unallocated items primarily include internal management and administrative  
services and share of the result of associated companies.                       
                                                                                
                                                                                
--------------------------------------------------------------------------------
| Definitions for key financial figures                                 |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Net interest-bearing  | = | Interest-bearing debt - interest-bearing  |      |
| debt                  |   | assets                                    |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Gearing               | = | Net interest-bearing debt                 | ×    |
|                       |   |                                           | 100  |
--------------------------------------------------------------------------------
|                       |   | Total equity                              |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Equity-to-assets      | = | Total equity                              | ×    |
| ratio                 |   |                                           | 100  |
--------------------------------------------------------------------------------
|                       |   | Total assets - advances received          |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Return on investment  | = | Operating profit + finance income         | ×    |
|                       |   |                                           | 100  |
--------------------------------------------------------------------------------
|                       |   | Total assets - non interest-bearing debt  |      |
|                       |   | (average for the period)                  |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Return on equity      | = | Profit for the period                     | ×    |
|                       |   |                                           | 100  |
--------------------------------------------------------------------------------
|                       |   | Total equity (average for the period)     |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Research and          | = | Research and development expenses in the  |      |
| development expenses  |   | income statement                          |      |
--------------------------------------------------------------------------------
|                       |   | (including expenses covered by grants     |      |
|                       |   | received)                                 |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Earnings per share    | = | Profit for the period attributable to the |      |
|                       |   | equity holders of the parent company      |      |
--------------------------------------------------------------------------------
|                       |   | Average number of shares during the       |      |
|                       |   | period, as adjusted for stock split       |      |
--------------------------------------------------------------------------------
|                       |   |                                           |      |
--------------------------------------------------------------------------------
| Dividend per share    | = | Dividend for the financial year           |      |
--------------------------------------------------------------------------------
|                       |   | Number of shares at the end of the        |      |
|                       |   | period, as adjusted for stock split       |      |
--------------------------------------------------------------------------------
                                                                                
                                                                                
INTERIM REPORT JANUARY-JUNE 2009 BRIEFING                                       
                                                                                
A briefing, at which CEO Tapani Järvinen and CFO Vesa-Pekka Takala will present 
the interim report January-June 2009, will be held in Helsinki, Finland.        
                                                                                
BRIEFING                                                                        
Date: Friday, July 24, 2009                                                     
Time: 2:00-3:00pm (EEST)                                                        
Venue: Hotel Kämp, Akseli Gallen-Kallela meeting room, Pohjoisesplanadi 29,     
Helsinki                                                                        
                                                                                
JOINING VIA WEBCAST                                                             
You may follow the briefing via a live webcast at www.outotec.com. Please, click
in and register approximately 5 to 10 minutes before the briefing. The webcast  
will also be recorded and published on Outotec's website for on demand viewing. 
                                                                                
JOINING VIA TELECONFERENCE                                                      
You may also join the briefing by telephone. To register as a participant for   
the teleconference and Q&A session, please dial in 5 to 10 minutes before the   
beginning of the event:                                                         
                                                                                
FI/UK: +44 20 7162 0025                                                         
US/CANADA: +1 877 491 0064                                                      
Password: Outotec                                                               
                                                                                
In addition, an instant replay service of the conference call will be available 
until July 29, 2009 midnight on the following numbers:                          
                                                                                
UK: +44 20 7031 4064                                                            
US: 1 954 334 0342                                                              
Access code: 840286                                                             
                                                                                
The contact information is gathered for registration purposes only and it is not
used for commercial purposes.                                                   
                                                                                
                                                                                
FINANCIAL REPORTING SCHEDULE FOR 2009                                           
                                                                                
Outotec will publish the following financial reports in 2009:                   
                                                                                
Interim Report for January-September 2009 on October 23                         
                                                                                
                                                                                
                                                                                
                                                                                
DISTRIBUTION                                                                    
NASDAQ OMX Helsinki Ltd                                                         
Main media                                                                      
www.outotec.com