lennart ohlsson: "creating value with sustainability" (ratkaisun paikka...

Creating value with sustainability

- but what is value? Helsinki May 13, 2014

Lennart Ohlsson

© Metso © Metso

Metso in Short A global perspective

13.5.2014 Ratkaisun Paikka 2014

• A leading process performance provider, with customers in the mining, construction, and oil & gas industries. Metso is also known for its advanced automation solutions for pulp, paper and power generation.

• Focus is on the continuous development of intelligent solutions that improve sustainability and profitability.

• Employs around 16,000 professionals in 50 countries.

• Shares are listed on the NASDAQ OMX Helsinki Ltd.

© Metso © Metso 13.5.2014 Ratkaisun Paikka 2014

From Purpose to Profit • PURPOSE

- The reason for which something exists or is done, made, used, etc.

- Practical result, effect, or advantage: to act to good purpose

• VALUE - Value in use vs. value in exchange - Customer value – Stock value – Brand value

• VALUE CREATION - Added value in production vs. added market value

• CAUSALITY - Relation between one event to another, where the second

event is understood as a consequence of the first

• PROFIT = Total Revenue – Total Expenses - Accounting profit vs. Economic profit

© Metso © Metso

Metso and Sustainability

13.5.2014 Ratkaisun Paikka 2014

Our mission is to contribute to a more

sustainable world by helping our customers to process natural resources and recycle materials into

valuable products.

Metso People

Society

Metso Environment

Marketplace


Metso and Sustainability Metso People

• We prioritize the wellbeing, health and safety of the individuals in all our operations.

• We actively promote equal opportunities and diversity.

• We train our leaders to promote sustainability thinking and to link individual objectives to sustainability.


Case: Minimum safety standards Metso People

• Metso minimum safety standards’ goal is to create a safer working environment for Metso’s employees and they create a strong foundation for Metso’s locations’ safety programs.

• The target is to remove risk factors in the most common work tasks in all Metso’s plants - the risk factors were chosen on the basis of an analysis of serious incidents that had occurred in Metso

• Our common task in increasing our safety is to adopt the Minimum safety standards into everyday work routines


Metso and Sustainability Metso Environment

• We constantly strive for improvements in our energy and materials efficiency and in reducing water consumption, emissions to water, soil and air, and the amount of waste in our operation.

• We have also identified environmental risks related to our operations and practice precautionary procedures to avoid any environmental accidents.


• Alone in 2013, Metso saved 1.8% of the energy of its own production, a total of 7,800 MWh • Since the beginning of the program (2010), 10.7% of energy, a total of 45,700 MWh of energy has been saved through a wide range of actions around the world • Since 2010, 80% of our production sites have sofar participated in the program

Metso Energy Efficiency Program Targets in water consumption and in CO2 emissions

2010 2011 2012 2013 2014 2015

Annual investments and savings

New annual savings €/a

Total annual energy savings, €/a

Cumulative cost savings, €

Cumulative investments, €


Metso and Sustainability Society

• We strive support sustainable development in the communities we operate in by forming partnerships with customers and other stakeholders.

• By sponsoring and donating to local projects we contribute towards a more sustainable world.


• Targeted for youngsters between 16-18 years aims to reduce displacement and crime in the poor neighborhoods of Sorocaba, Brazil, where Metso has its operations.

• Complements regular school with customized vocational schooling

• So far 21 Fishing Project groups, totaling to 400 students have finished their vocational training and become a full member of the society where 95% of the students are currently working.

Case: Metso Brazil - The Fishing Project Society


• Metso and Plan Finland to improve the quality of life of children in developing countries

• Supports children’s rights to water, health and development in Indian schools

• Aim is to improve the quality of drinking water, sanitation and the overall environment in targeted schools

• The project will have positive impacts, particularly on the girls, as they will have better opportunities to maintain their personal hygiene and health

• In the Wash Project, Metso supports 15 schools and 8,000 students

Case: Metso India - The Wash Project Society


• Since 2010 Metso South Africa has run a systematically expanding program for the prevention of HIV/AIDS

• From internal education and voluntary testing to reaching also spouses, families and suppliers

• Today 92% of all our employees know their “HIV status” and 90.5% of our employees living with HIV are registered in a support program

• Metso South Africa received the SWHAP Achievement Award (Swedish Workplace HIV and AIDS Programme) in both 2012 and 2013 for the Most Comprehensive Programme

Case: Metso South Africa - HIV/AIDS prevention program Society


Metso and Sustainability Marketplace

• We help our customers to improve the sustainability of their operations by using our technology and solutions

• We develop a transparent and responsible supply chain management to support our own sustainability efforts.


25% Specific energy

savings

70% Increased throughput

• Increasing throughput of difficult ores through the implementation of a Process Integration and Optimization (PIO) project

• Involves integrated mine-to-plant operating and control strategies, that maximize throughput, minimize overall cost-per-ton, minimize energy consumption and maximize profitability

• Key benefits: The throughput increased from 2600 tph with a specific energy consumption of 14 kWh/t to a throughput of 4500 tph with a specific energy of 10.5 kWh/t

Case: Antamina mine in Peru Increased production and energy efficiency


• ...add value for our people • ...add value for the environment • ...add value to society • ...add value to our customers • ...and realize the value in profit

(even though causality is not always self evident and timing is sometimes delayed).

Conclusion Yes, we can...

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lennart ohlsson: "creating value with sustainability" (ratkaisun paikka...

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