Metso Annual Report 2016

Watch our President and CEO Matti Kähkönen's greeting

This is Metso

Metso is a world leading industrial company serving the mining, aggregates, recycling, oil, gas, pulp, paper and process industries. In 2016, Metso’s sales totaled EUR 2,586 million. Services business accounted for 66% of our sales.

Welcome to our Annual Report website

Metso has published four reports that together form the Annual Report for 2016. This website has all the different PDF files available for downloading: Annual Review, Financial Statements, Corporate Governance Statement and the Sustainability Supplement for 2016. This website also presents Metso's year 2016 in brief and includes a greeting from our President and CEO Matti Kähkönen. All of our reports are available in English and Finnish, except our Sustainability Supplement, which is available only in English. The Sustainability Supplement has been externally assured.

Earnings per share

EUR 0.87

Operating profit

EUR 227 million



*Lost time incident frequency




Our vision

Metso, the best choice for sustainable processing and flow of natural resources.

Our ambition is – and we work hard for it – to be the best choice for our customers, employees, shareholders and other stakeholders in all that we do.

Sustainable – sustainability for us means reducing energy consumption and emissions, using less raw ingredients and water and producing less and less waste while delivering the same or increased production output. Sustainability also means that we follow the highest health, safety and environmental standards and practices.

Processing and flow of natural resources – Metso’s solutions to the customers are converting raw natural resources into materials that are used to build the modern world.

Our strategy

Our strategy drives customer success.

Targeting growth and higher profitability

Our business model relies heavily on services where we have the strongest position and product portfolio in the market.

We build our leading technically advanced product portfolio.

In addition we provide systems in minerals processing. Systems deliveries often consist of Metso and other equipment and involve a significant degree of work related to process design, engineering, project management and commissioning.

Our strong emphasis is on services and product businesses. We aim to balance the share of system deliveries to optimize the profitability and risk level of our complete business portfolio.

Metso's businesses

We deliver results to our customers through three business areas: Minerals Capital, Minerals Services and Flow Control.

We have strong market positions in all of our businesses.

#1 Services for minerals processing

#1 Mining crushers and grinding mills

#1 Aggregates crushing and screening

#1 Metal recycling equipment

#1 Pulp and paper valves

#3 Intelligent valve controllers

+ Strong position in control valves

+ Strong niche position in automated on / off valves

+ A global leader in slurry pumps

Customer industries

We are well-positioned in all of our customer industries, either globally or in a selected niche market. Our offering covers services, products and systems for our customer industries.

Financial performance

Our financial performance was satisfactory despite lower sales in 2016. Our profitability remained healthy and our balance sheet strengthened. Metso continues to target high profitability and low volatility.

Net gearing


at the end of period

Dividend proposal

EUR 1.05


EUR 2,586 million

Group key figures

EUR million20162015 Change 
Sales  2,586 2,923 -12%
Services sales 1,703 1,840 -7%
Services, % of sales 66 63  
Adjusted EBITA (Earnings before interest, tax and amortization) 274 356 -23%
   % of sales 10.6 12.2  
Profit 130 442** -71%
Earnings per share, EUR 0.87 2.95** -71%
Dividend per share, EUR 1.05* 1.05  
Return on capital employed (ROCE) before taxes, % 10.4 25.7**  
Gearing at the end of year, % -1.8  10.6  
Free cash flow 339  341 -1%
Orders received 2,724  2,965 -8%
Orders received of services business 1,741  1,879 -7%
Order backlog, December 31 1,320  1,268 4%
Personnel, December 31 11,542 12,619 -9%

* 2016 Board's proposal
** Gain from Process Automation Systems included.


Sustainability strategy

We work hard to be the best choice for the sustainable processing and flow of natural resources. For us at Metso, this means that our efforts and focus are set on reducing energy consumption and emissions, using less water and raw ingredients, and producing less waste while delivering the same or increased production output. We also follow the highest health, safety and environmental standards and practices.

Metso’s sustainability strategy was revised in 2016 to meet the ambition level. We have set targets for our approach to sustainability for the 2016–2018 period and longterm environmental and LTIF (Lost Time Incident Frequency) targets to 2020. Our revised sustainability strategy consists of four focus areas, and each of them has measurable subcategories concerning our own operations.

Health and safety

Safety is an integral part of everyday management and is not to be compromised under any circumstances. We expect everybody to carefully plan their work and to act according to the rules and procedures set both globally and locally.

We continued to improve safety performance and were able to decline the total recordable incident frequency by 9% compared to 2015. Additionally, it was the third year in a row with zero (0) work-related fatalities. Our LTIF (Lost-time incident frequency) in 2016 was 2.4 (2.7). We strive for continuous improvement and our occupational safety target is to achieve an LTIF of less than one.