Metso Corporation’s stock exchange release on September 23, 2013 at 3:10 p.m. local time

On August 15, 2013, the Board unanimously decided to propose the approval of the demerger and the demerger plan to the Extraordinary General Meeting of Metso shareholders scheduled for October 1, 2013. The completion of the partial demerger is expected to be registered in the Finnish Trade Register on or about December 31, 2013. The prospectus relating to Valmet was published today and is available on Metso’s website (www.metso.com).

Basis of preparation of unaudited illustrative financial information

The following unaudited illustrative financial information is presented to illustrate the results of operations and financial position for Metso’s continuing operations had the partial demerger taken place on January 1, 2012. The information is based on financial data derived from Metso’s audited consolidated financial statements as of and for the year ended December 31, 2012, restated for the impact of the adoption of the revised IAS 19 “Employee Benefits” standard and from Metso’s unaudited consolidated interim report as of and for the six month period ended June 30, 2013.

This information is presented for illustrative purposes only. Because of its nature, it addresses a hypothetical situation and does not represent the actual results of operations or the financial position of Metso had the demerger been completed on January 1, 2012; nor is it intended to project the results of operations or the financial position of Metso as of any future date.

Management believes that the illustrative information presented in this release provides a relevant basis to present the result of operations and financial position of the continuing Metso Group. The adjustments made in preparing the illustrative information are based on available information and assumptions. There is no certainty that these assumptions will prove correct.

The following significant assumptions and adjustments to historical information have been made in the preparation of the illustrative financial information for Metso’s continuing operations:

• All the revenues and expenses, as well as assets and liabilities relating to the Valmet business, have been excluded from Metso’s reported consolidated financial information.

• Due account has been taken of the effects of certain intra-group arrangements that have been or will be undertaken by Metso prior to the demerger in order to achieve the planned legal group structures of both Metso and Valmet and the effects of certain refinancing measures, including a settlement of intra-group items between Metso and Valmet. The net settlement of intra-group balances has been treated as an adjustment to the cash and cash equivalents for illustrative balance sheet purposes (a reduction of EUR 102 million as of December 31, 2012 and an increase of EUR 40 million as of June 30, 2013), reflecting the cash amount to be paid by Metso to Valmet or vice versa to settle the balances.
• The total amount of equity adjusted from the historical Metso’s equity balance in the illustrative consolidated balance sheets represents the amount of net assets attributable to the Valmet business. The adjustments made to equity reflect Valmet Croup’s contemplated equity structure.

Accounting treatment of the demerger

The demerger will be accounted for as a disposal in accordance with IFRIC 17, Distributions of non-cash assets to owners. Once the demerger has taken place, the difference between the fair value of the Valmet business and its book value in Metso’s consolidated balance sheet will be recorded as a gain on distribution. The Valmet business to be spun off through the demerger will be presented as discontinued operations in Metso’s financial reporting after shareholders have approved the demerger.