Stock exchange release February 8, 2010 04:13 PM EEST

Metso Corporation's Financial Statements Review

Metso Corporation's Financial Statements Review, January 1 - December 31, 2009

Metso's Company Release on February 8, 2010 at 3.00 p.m. local time

Strong cash flow and satisfactory profitability in a demanding market
environment

Highlights of 2009

· New orders worth EUR 4,358 million were received in 2009, i.e. 32 percent less
than in the previous year (EUR 6,384 million in 2008).
· At the end of 2009, the order backlog was 16 percent lower than at the end of
December 2008, amounting to EUR 3,415 million (EUR 4,088 million on December
31, 2008).
· Net sales decreased by 22 percent from the previous year, and were at EUR
5,016 million (EUR 6,400 million in 2008).
· Earnings before interest, tax and amortization (EBITA) were EUR 334.3 million,
i.e. 6.7 percent of net sales (EUR 680.9 million and 10.6% in 2008).
· Operating profit (EBIT) was EUR 293.6 million, i.e. 5.9 percent of net sales
(EUR 637.2 million and 10.0% in 2008).
· EBITA and EBIT include approximately EUR 75 million in non-recurring expenses
relating to capacity adjustment measures, before which the EBITA margin was 8.2
percent.
· Earnings per share were EUR 1.06 (EUR 2.75 in 2008).
· Free cash flow was EUR 717 million (EUR 29 million in 2008).
· Return on capital employed (ROCE) before taxes was 10.0 percent (23.2% in
2008).
· The Board proposes a dividend of EUR 0.70 per share (EUR 0.70 in 2008).
Highlights of the last quarter of 2009

· New orders worth EUR 1,365 million were received in October-December, i.e. 54
percent more than in the comparison period (EUR 889 million in Q4/2008).
· Net sales decreased by 26 percent on the comparison period, and were at EUR
1,353 million (EUR 1,839 million in Q4/2008).
· Earnings before interest, tax and amortization (EBITA) were EUR 66.2 million,
i.e. 4.9 percent of net sales (EUR 200.0 million and 10.9% in Q4/2008).
· Operating profit (EBIT) was EUR 55.0 million, i.e. 4.1 percent of net sales
(EUR 190.1 million and 10.3% in Q4/2008).
· EBITA and EBIT for October-December include approximately EUR 31 million in
non-recurring expenses relating to capacity adjustment measures. The EBITA
margin before the non-recurring expenses was 7.2 percent.
· Earnings per share were EUR 0.18 (EUR 0.79 in Q4/2008).
Metso's President and CEO Jorma Eloranta is satisfied with the financial
performance and achievements in 2009. "Our most significant achievement was the
strong cash flow. Also our profitability was at a satisfactory level despite the
demanding market situation. We strengthened our product and services portfolio
through acquisitions, continued with our key investments and enhanced our
operating model. We also estimate that we have maintained our market position in
all our core customer segments. Metso is now more competitive as the markets
gradually begin to recover. I appreciate the efforts of our employees in
achieving these good results in a difficult year."

The Board of Directors' dividend proposal of EUR 0.70 per share reflects not
only our confidence in the gradual recovery in our operating environment, but
also our solid financial position.

"In the last quarter of the year our profitability was hampered, as expected, by
high non-recurring expenses related to the capacity adjustment measures and to
the development of our operating model. It was encouraging that we saw a nice
increase in our order intake. This indicates that our customers are regaining
their confidence in the recovery of their operating environment and in the
availability of financing. For 2010 we estimate our net sales to remain at about
the same EUR 5 billion level as in 2009 and profitability to remain
satisfactory," Eloranta notes.

"Winning new orders continues to be a key priority. Price competition in the
markets has escalated, so we will continue developing our operating model to
maintain competitiveness and profitability. Key priorities are also continuing
to further develop our services business and our solutions based on bioenergy
and other renewable energy sources."


Metso's key figures


 EUR million                              Q4/09 Q4/08 Change  2009  2008 Change
                                                           %                  %
--------------------------------------------------------------------------------
 Net sales                                1,353 1,839    -26 5,016 6,400    -22
--------------------------------------------------------------------------------
 Net sales of services business             524   651    -20 2,052 2,343    -12
--------------------------------------------------------------------------------
    % of net sales                           39    36           41    37
--------------------------------------------------------------------------------
 EBITA before non-recurring capacity
 adjustment expenses                       97.3 200.0    -51 409.0 680.9    -40
--------------------------------------------------------------------------------
    % of net sales                          7.2  10.9          8.2  10.6
--------------------------------------------------------------------------------
 Earnings before interest, tax and
 amortization (EBITA)                      66.2 200.0    -67 334.3 680.9    -51
--------------------------------------------------------------------------------
    % of net sales                          4.9  10.9          6.7  10.6
--------------------------------------------------------------------------------
 Operating profit                          55.0 190.1    -71 293.6 637.2    -54
--------------------------------------------------------------------------------
    % of net sales                          4.1  10.3          5.9  10.0
--------------------------------------------------------------------------------
 Earnings per share, EUR                   0.18  0.79    -77  1.06  2.75    -61
--------------------------------------------------------------------------------
 Orders received                          1,365   889     54 4,358 6,384    -32
--------------------------------------------------------------------------------
 Order backlog at end of period                              3,415 4,088    -16
--------------------------------------------------------------------------------
 Free cash flow                             268   -22    n/a   717    29    n/a
--------------------------------------------------------------------------------
 Return on capital employed (ROCE)
 before taxes, %                                              10.0  23.2
--------------------------------------------------------------------------------
 Equity to assets ratio at end of period,                     35.7  30.9
 %
--------------------------------------------------------------------------------
 Gearing at end of period, %                                  32.5  75.7
--------------------------------------------------------------------------------


Metso's last quarter 2009 review


Operating environment and demand for products in October-December

Our operating environment continued to be demanding in the last quarter of
2009. Our customers remained cautious in their investment decisions although
towards the end of the year there were the first signs of a recovery in the
global economy. We saw gradual improvement in our customers' capacity
utilization rates while orders for our services business and requests for
quotations increased slightly. Uncertainties in the order backlog also
diminished as customers restarted projects earlier put on hold.

Low demand and the reduction of suppliers' order backlogs led to harder price
competition in the latter half of the year in all customer segments. We were
able to partly offset this in our procurement costs as competition among raw
materials and components suppliers and subcontractors also became harder.

As a result of the strengthened demand for and price levels of minerals, in the
latter part of the year several mining companies announced increases in their
investment plans for 2010. Quotation activity clearly improved, although by the
end of the year, only a few new equipment orders were finalized. Demand for
construction industry equipment continued to be weak in the final quarter of
2009. Many countries have introduced stimulus measures relating to
infrastructure development which are expected to have a positive effect on the
demand for construction industry products in the long-term, but which, for the
present, have had little effect. Demand for services business in the mining and
construction industry was satisfactory.

Demand for power plants utilizing renewable energy sources remained satisfactory
in Europe and North America. The availability of financing improved towards the
year-end leading to a strengthening of the operating environment and
contributing to the closing of several new orders in the fourth quarter.
Requests for quotations by oil and gas customers for our automation solutions
increased, but demand continued to be lower than it was in the previous year.
Demand for metals recycling equipment continued to be weak, owing to the low
price of scrap metal and the low utilization rates of European and North
American steelworks. Demand for our services business for power generation and
automation solutions was satisfactory. Services demand for metal recycling
remained weak.

Demand for new fiber lines continued to be weak, but towards the end of the year
there was an upturn in the demand for rebuild projects. Demand for paper and
board production lines remained satisfactory in the fourth quarter after
improved market activity in China during the previous two quarters thanks to
local stimulus packages. The low capacity utilization rates in the pulp and
paper industry kept the demand for our services business weak, particularly in
North America and Europe, although new orders were slightly up in the fourth
quarter.



Orders received in October-December

Orders received in the final quarter of the year increased by more than 50
percent on the comparison period and totaled EUR 1,365 million. In making the
comparison it is important to note that new orders in the final quarter of 2008
were exceptionally low, as our customers reacted strongly to the financial
crisis that escalated since September 2008. More important was that compared to
the first three quarters of 2009, orders were clearly at a higher level.
Previously received smaller mining and recycling equipment orders amounting to
some EUR 37 million were cancelled from the order backlog in the fourth quarter.
The amount of uncertain orders in the order backlog decreased and was below EUR
500 million, as customers restarted projects which had earlier put on hold.

Orders received in Mining and Construction Technology totaled EUR 457 million in
October-December, an increase of more than one third on the comparison period.
Orders received from mining customers increased more than 70 percent on the
comparison quarter, and new orders in the fourth quarter were 20 percent higher
than during the previous three quarters. Orders received from construction
customers were down about 10 percent on the comparison period and on par with
the previous quarters of the year. Orders received in the fourth quarter were
mostly for unit equipment and services business.

Orders received in Energy and Environmental Technology totaled EUR 504 million
in the fourth quarter, which is 48 percent more than in the comparison period,
and the final quarter was clearly the strongest quarter of the year in terms of
new orders. The Power business line received several new orders for power
boilers and the last quarter was clearly stronger in new orders than the
previous quarters and the comparison period. The fourth quarter was also the
strongest of the year for the Automation business line and new orders were at
the same satisfactory level as during the comparison period. Demand for the
recycling products remained weak and orders decreased even further from the low
level of the comparison period. The segment's orders received in the fourth
quarter include a biomass boiler and automation system for the Nacogdoches
Generating Facility in the United States, a waste gasification plant and
automation system for Lahti Energy Oy in Finland, biomass power plant for
combined heat and power production including  the plant automation system for
4HamCogen S.A. in Belgium and a power boiler for CMPC Celulosa S.A. in Chile.

Paper and Fiber Technology's new orders increased 94 percent on the very weak
comparison period and were EUR 401 million in October-December. New orders in
the Paper business line increased clearly from the comparison period and were on
par with the previous two quarters. Orders received in the Tissue business line
fell 34 percent from the strong levels of the comparison period. The Fiber
business line received orders for several small and medium-sized rebuild
projects in the fourth quarter, which turned out to be clearly stronger in new
orders than the previous quarters in 2009 and the comparison quarter. Orders for
October-December include a coated fine paper production line to Shouguang MeiLun
Paper Co. Ltd. in China, a complete tissue line to Hayat Kimya A.S. in Turkey
and the delivery of pulping technology to CMPC Celulosa S.A. in Chile. The
segment's orders received in the services business increased towards the end of
the year, but remained still lower than in the previous year, as customers
continued strict control of their operating costs.



Financial performance in October-December

In October-December, our net sales were EUR 1,353 million, which was 26 percent
less than a year earlier (EUR 1,839 million in Q4/2008). Net sales of the
services business decreased by 20 percent on the comparison period, and
accounted for 39 percent (36% in Q4/2008) of fourth quarter net sales in 2009.

Our fourth-quarter earnings before interest, tax and amortization (EBITA) were
66.2 million, i.e. 4.9 percent of net sales (EUR 200.0 million and 10.9% in
Q4/2008). EBITA includes approximately EUR 31 million in non-recurring expenses
resulting from capacity adjustment measures. Most of these costs were related to
capacity adjustment measures in the Finnish and Swedish units of the Fiber
business line. The EBITA-margin before these non-recurring expenses was 7.2
percent. The financial result also includes over EUR 9 million in non-recurring
capital gains from the sale of Talvivaara Mining Company Plc's shares. Metso's
operating profit was EUR 55.0 million, i.e. 4.1 percent of net sales (EUR 190.1
million and 10.3% in Q4/2008). The weakening of profitability on the comparison
period resulted from the 26 percent decrease in net sales, low capacity
utilization rates, tougher price competition and the high level of non-recurring
capacity adjustment expenses.

The profit attributable to shareholders was EUR 25 million in the fourth quarter
(EUR 112 million in Q4/2008), corresponding to earnings per share (EPS) of EUR
0.18 (EUR 0.79 in Q4/2008).

Our free cash flow remained strong during the fourth quarter and was EUR 268
million. The strong cash flow was supported by a EUR 224 million reduction in
net working capital. Key elements in releasing net working capital in the fourth
quarter were EUR 189 million decrease of inventories across the businesses and
EUR 90 million decrease in trade receivables in the Paper and Fiber Technology
segment after successfully closing several delivery projects.



Metso's Financial Statements Review 2009


Operating environment and demand for products in 2009

Our operating environment continued to be demanding throughout the year. As a
result of the decline in the global economy and uncertainty in the financial
markets, our custo-mers were cautious in their investment decisions. However,
the first signs of a recovery in demand in some of our customer industries were
visible during the fourth quarter. The demand situation was particularly tough
for our new equipment and project business. As a consequence of our customers'
low capacity utilization rates, demand for our services business also declined,
but remained satisfactory thanks to our large installed equipment base. Economic
stimulus measures launched in many countries, mostly aimed at developing
infrastructure, have so far, with the exception of China, had little effect on
the demand for our products.

Low demand for new equipment and the decline in suppliers' order backlogs led to
increased price competition in the latter half of the year in all customer
segments. This was partly offset by the reduction in procurement costs caused by
the intensified competition among raw materials and components suppliers and
subcontractors.

In the first half of 2009, most mining companies cut their investment plans
significantly and curtailed their production. The positive development in demand
for and prices of minerals and metals during the year, however, improved the
situation towards the end of the year and led to an increase in requests for
quotations on mining equipment during the fourth quarter. In the construction
industry, demand for equipment used in aggregates production was weak throughout
the year.

The demand for power plants fuelled by biomass and waste has been boosted as
several countries have announced plans to increase the use of renewable energy
sources. However, the limited availability of financing has delayed the
implementation of these projects. Towards the end of the year, however, the
availability of financing improved, which led to several new orders during the
fourth quarter. The oil and gas industry, which is important for Metso's
automation solutions, made considerable cuts to their investment plans early in
the year. Those cuts, coupled with the very low level of pulp and paper industry
investments, clearly decreased demand for our automation solutions from the
previous year. Signs of gradual improvement in the demand in the oil and gas
industry were visible by the end of the year. Demand for metals recycling
equipment continued to be weak due to low scrap metal prices and the clear
decrease in steel production, particularly in Europe and North America. Demand
in our services business for power generation and automation solutions was
satisfactory and for metal recycling weak.

Economic stimulus measures in China and the subsequent new orders contributed to
a mini-boom in demand for paper and board production lines during the second and
third quarter. Elsewhere in the world, demand for paper and board lines remained
weak throughout the year. Demand for complete fiber lines remained low all year,
but by the end of the year demand for fiber line rebuild projects improved,
leading to several small and mid-sized orders in the fourth quarter. Demand for
tissue machines was satisfactory. Capacity utilization rates in the pulp and
paper industry remained low for all of 2009. As a consequence, the demand for
services business was low but showed some improvement towards the end of the
year.



Orders received and order backlog

In 2009, we received new orders worth EUR 4,358 million, i.e. 32 percent less
than in the comparison period. Orders increased towards the end of the year and
the final quarter was clearly the strongest in terms of new orders. During the
year, previously received orders worth some EUR 335 million were cancelled.
These cancellations were booked off directly from our order backlog and
therefore had no impact on reported new orders in 2009 or on the comparison
period. Almost EUR 200 million of the cancellations related to the Zhanjiang
Chenming pulp project, around EUR 65 million to our Construction business line,
some EUR 48 million to our Mining business line and some EUR 28 million to our
Recycling business line.

Regarding the value of new orders, the most important countries were China, the
United States and Finland. When combined, these countries accounted for 39
percent of all orders received. As a result of the global economic downturn, the
value of new orders was down on the comparison period in all reporting segments
and in all geographical areas. The share of emerging markets in orders received
was 48 percent (48% in 2008).

At the end of December, our order backlog was EUR 3,415 million, which is 16
percent less than at the end of 2008. Uncertainties in the order backlog
decreased by approximately EUR 100 million during the fourth quarter as
customers restarted previously suspended projects. Around EUR 2.7 billion of the
deliveries in our end-of-December order backlog are expected to be completed in
2010, and around EUR 700 million of these are services business orders. The
order backlog includes some EUR 500 million in projects with somewhat uncertain
delivery schedules and which will, according to present estimates, be delivered
after 2010. The pulp mill project for Fibria, Brazil, is included in these
projects.


Orders received by reporting segments


                                    2009                2008

                                 EUR % of orders     EUR % of orders
                             million    received million    received
---------------------------------------------------------------------
 Mining and Construction
 Technology                    1,660          38   2,709          42
---------------------------------------------------------------------
 Energy and Environmental
 Technology                    1,297          30   1,658          26
---------------------------------------------------------------------
 Paper and Fiber Technology    1,384          31   2,021          31
---------------------------------------------------------------------
 Valmet Automotive                56           1      65           1
---------------------------------------------------------------------
 Intra-Metso orders received     -39                 -69
---------------------------------------------------------------------
 Total                         4,358         100   6,384         100
---------------------------------------------------------------------


Orders received by market area
                          |                   |
                          |       2009        |       2008
--------------------------+-------+-----------+-------+------------
                          |    EUR|% of orders|    EUR|% of orders
                          |million|   received|million|   received
--------------------------+-------+-----------+-------+------------
 Europe                   |  1,580|         36|  2,375|         38
--------------------------+-------+-----------+-------+------------
 North America            |    796|         18|  1,070|         17
--------------------------+-------+-----------+-------+------------
 South and Central America|    510|         12|  1,056|         16
--------------------------+-------+-----------+-------+------------
 Asia-Pacific             |  1,220|         28|  1,476|         23
--------------------------+-------+-----------+-------+------------
 Rest of the world        |    252|          6|    407|          6
--------------------------+-------+-----------+-------+------------
 Total                    |  4,358|        100|  6,384|        100
--------------------------+-------+-----------+-------+------------

Net sales

Our net sales for 2009 declined by 22 percent on the comparison period and stood
at EUR 5,016 million (EUR 6,400 million in 2008). Net sales decreased in all
reporting segments: in Mining and Construction Technology by 20 percent, in
Energy and Environmental Technology by 14 percent and in Paper and Fiber
Technology by 31 percent. The net sales of our services business declined by 12
percent and its share of total net sales was 41 percent (37% in 2008).

Measured by net sales, the largest countries were the United States, China and
Germany, which together accounted for about 29 percent of our total net sales.



Net sales by reporting segments

                                  2009                2008

                                EUR      % of EUR million      % of
                            million net sales             net sales
--------------------------------------------------------------------
 Mining and Construction
 Technology                   2,075        41       2,586        40
--------------------------------------------------------------------
 Energy and Environmental
  Technology                  1,523        30       1,775        27
--------------------------------------------------------------------
 Paper and Fiber Technology   1,408        28       2,044        32
--------------------------------------------------------------------
 Valmet Automotive               56         1          65         1
--------------------------------------------------------------------
 Intra-Metso net sales          -46                   -70
--------------------------------------------------------------------
 Total                        5,016       100       6,400       100
--------------------------------------------------------------------

Net sales by market area

                                 2009              2008

                               EUR      % of     EUR      % of
                           million net sales million net sales
---------------------------------------------------------------
 Europe                      2,167        44   2,680        41
---------------------------------------------------------------
 North America                 774        15   1,015        16
---------------------------------------------------------------
 South and Central America     609        12     770        12
---------------------------------------------------------------
 Asia-Pacific                1,080        21   1,516        24
---------------------------------------------------------------
 Rest of the world             386         8     419         7
---------------------------------------------------------------
 Total                       5,016       100   6,400       100
---------------------------------------------------------------



Financial result

Our earnings before interest, tax and amortization (EBITA) for 2009 weakened
from the comparison period and were EUR 334.3 million, or 6.7 percent of net
sales (EUR 680.9 million and 10.6% in 2008). Our financial result includes
non-recurring expenses of some EUR 75 million resulting from capacity adjustment
measures, of which around EUR 42 million are related to Paper and Fiber
Technology, some EUR 22 million to Mining and Construction Technology and some
EUR 11 million to Energy and Environmental Technology. EBITA before these
non-recurring capacity adjustment expenses was EUR 409.0 million, i.e. 8.2
percent of net sales. Other significant non-recurring items included in our
result were some EUR 23 million in capital gains from the sale of Talvivaara
Mining Company Plc's shares, EUR 9 million in non-recurring expenses from
dissolving hedging arrangements related to the cancellation of our Chinese
customer Zhanjiang Chenming's pulp mill project and EUR 4 million credit loss
reserve related to the initiation of the debt restructuring proceedings of two
of our paper industry customers.

The EBITA of Mining and Construction Technology before non-recurring capacity
adjustment expenses was EUR 224.7 million in 2009, i.e. 10.8 percent of net
sales, down 38 percent from the year before. The reduced profitability is mainly
attributed to the 20 percent decrease in delivery volumes, low capacity
utilization rates of production units and tougher price competition towards the
end of the year.

The EBITA of Energy and Environmental Technology before non-recurring capacity
adjustment expenses was EUR 147.5 million, i.e. 9.7 percent of net sales,
representing a decrease of 26 percent on the previous year. The weakened
profitability was due to the decrease in delivery volumes and the low capacity
utilization rate of some production units and tougher pricing environment
towards the end of the year.

The EBITA of Paper and Fiber Technology before non-recurring capacity adjustment
expenses was EUR 58.2 million, i.e. 4.1 percent of net sales, representing a
decrease of 60 percent on the previous year. The lower profitability was due to
a 31 percent decline in net sales and low capacity utilization rates.

Our operating profit in 2009 was EUR 293.6 million, or 5.9 percent of net sales
(EUR 637.2 million and 10.0% in 2008). Operating profit before non-recurring
expenses related to capacity adjustment measures was EUR 368.3 million or 7.3
percent of net sales.

Our net financing expenses in 2009 were EUR 72 million (EUR 89 million in
2008). Although our cash situation was strong throughout the year, our gross
debt level was higher than in 2008 and this increased our interest expenses to
EUR 75 million (EUR 71 million in 2008).

Our profit before tax was EUR 222 million (EUR 548 million) and our tax rate for
2009 was 32 percent (29% in 2008). Our taxes include a EUR 6 million tax charge
related to the taxation of our Brazilian operations in 1995-96, which increased
our tax rate by approximately 3 percentage points.

The profit attributable to shareholders in 2009 was EUR 150 million (EUR 389
million), corresponding to earnings per share (EPS) of EUR 1.06 (EUR 2.75 per
share).

The return on capital employed (ROCE) before taxes was 10.0 percent (23.2%) and
the return on equity (ROE) was 9.8 percent (26.0%).



Cash flow and financing

Net cash provided by operating activities in 2009 was EUR 770 million (EUR 137
million in 2008).

One of our main goals has been to release at least EUR 500 million from our net
working capital during 2009-2010. Our efforts paid off and we managed to release
EUR 518 million already in 2009. EUR 530 million of this release came from
inventories and EUR 272 million from trade receivables. Simultaneously, trade
payables decreased by EUR 173 million and advances received by EUR 160 million.
As a result of the special inventory control initiative in Mining and
Construction Technology, its inventories had decreased by EUR 360 million during
2009 by the end of the year.

As a result of the strong decrease of net working capital and the low level of
capital expenditure, our free cash flow in 2009 was a strong EUR 717 million
(EUR 29 million in 2008).

Net interest-bearing liabilities decreased considerably and were EUR 583 million
at the end of the year (December 31, 2008: EUR 1,099 million). The decrease was
mainly due to the strong release of net working capital.

The total amount of short-term debt maturing over the next 12 months was EUR
242 million at the end of December. EUR 17 million of the short-term debt
consisted of commercial papers issued in the Finnish markets, EUR 173 million
were current portions of long-term debt and the remainder was local working
capital financing of subsidiaries, mainly in Brazil.

We obtained EUR 365 million of new long-term debt with maturity of 4-5 years.
The largest single transaction was a EUR 200 million five-year funding
arrangement under the Euro Medium Term Note (EMTN) program. New loans were
primarily meant for the refinancing of our existing debt and for the extension
of the debt maturity structure. The amount of this new long-term debt exceeds
the repayments of our earlier long-term loans from 2009 until mid 2011. At the
end of the year, our total cash assets amounted to EUR 976 million. Out of this
EUR 249 million has been invested in instruments with initial maturity exceeding
three months and the remaining EUR 727 million is being accounted for as cash
and cash equivalents. The syndicated EUR 500 million revolving loan facility is
available until late 2011, and it is currently undrawn. Metso's liquidity
position is good.

In April, following the Annual General Meeting, we paid EUR 99 million in
dividends for 2008.

As a result of strong operating cash flow and low level of capital expenditure,
our gearing clearly improved in 2009 and was at the end of December 32.5 percent
(75.7%). The equity-to-assets ratio was at the year-end 35.7 percent (30.9%).
The Tamfelt acquisition, which was carried out as a share exchange, strengthened
our equity to assets ratio by 2 percentage points and lowered our gearing by 3
percentage points.



Capital expenditure

Our gross capital expenditure in 2009, excluding business acquisitions,
decreased by 54 percent on the comparison period, to EUR 117 million (EUR 255
million in 2008). The share of maintenance investments was 52 percent, i.e. EUR
61 million. We maintained strict criteria for new capital expenditure and
postponed spending in some projects approved in 2007-2008. We will continue
strict criteria for new capital expenditure in 2010 and estimate them to be
about on par with the 2009 level.

We are constructing new plant and office premises for the Automation business
line in Shanghai, China. The Metso Park industrial facility, designed especially
to serve the mining and construction industry, is under construction in
Rajasthan, India. In Finland, we are upgrading a pilot machine at the Paper
Technology Center in Jyväskylä. In Zibo we are establishing our third service
center in China for the pulp and paper industry. We have extended the
implementation schedules of our Metso Park and Zibo Service Center investments
due to slowdown in global economic growth. Investment projects in global
enterprise resource planning systems are underway in Mining and Construction
Technology and in the Automation business line.



Acquisitions, divestments and joint ventures

In November, we purchased the American Pacific/Hoe Saw&Knife Company's coater
and doctor blade business, consumables for pulp and paper industry. The annual
net sales of the purchased business are about USD 5 million.

In October we purchased the Danish M&J Industries A/S, a manufacturing company
of mobile and stationary products for solid-waste crushing. The debt-free
acquisition price was approximately EUR 15 million. M&J Industries employs some
100 people and the company's annual net sales are approximately EUR 30 million.

In May, we sold Metso Paper Turku Works Oy, a manufacturer of air systems for
the pulp and paper industry, to Stairon Oy. The air system technology and the
related business will remain in Metso's ownership. Metso Paper Turku Works Oy
employed 91 people.

In January, we sold our composites manufacturing business, part of our Paper
business line, and related assets in Oulu, Finland, to xperion Oy. The annual
net sales of the divested business were less than EUR 5 million and the number
of personnel was 21.

The joint venture MW Power Oy, the result of a combination of Wärtsilä's
Biopower business and Metso's Heat & Power business, began operations on January
1, 2009. We own 60 percent of the company, and as of January 1, 2009, it has
been entirely consolidated into our Power business line. An order backlog of
approximately EUR 116 million was transferred with Wärtsilä Biopower Oy to the
joint venture. The net sales of the company in 2009 were approximately EUR 100
million and the number of employees about 100.



Tamfelt acquisition

In November, we concluded a combination agreement with Tamfelt, one of the
world's leading suppliers of technical textiles, and subsequently made a public
exchange offer for all of Tamfelt's shares. The acquisition strengthened our
services business, particularly in the pulp and paper industry. The acquisition
creates new growth opportunities for Tamfelt products, especially outside of
Europe, where Metso has an extensive installed base and a wide sales and
services network.

The exchange offer, in which Metso offered three new shares in Metso for every
ten Tamfelt shares, was carried out in November-December of 2009 and
successfully completed on December 23, 2009. The shares tendered in the share
exchange offer represent 95.2 percent of all shares and votes in Tamfelt. Metso
held 2.8 percent of Tamfelt's shares worth EUR 4 million already before the
offer. The remainder of Tamfelt's shares, 2.0 percent, will be redeemed with
cash in the spring of 2010 as per the Finnish Companies Act. A total of
8,593,642 new Metso shares were subscribed for in the share issue relating to
the share exchange offer and were registered with the Trade Register on December
28, 2009. The share issue totaling EUR 206 million, corresponding to EUR 23.98
per share, was recorded into the invested non-restricted equity fund.

The value of the Tamfelt transaction was EUR 215 million, and when assuming net
interest bearing debt of EUR 17 million transferred in the transaction, the debt
free transaction value was EUR 232 million. The transaction value exceeded the
net assets of Tamfelt by EUR 117 million, of which EUR 53 million was allocated
to acquired customer base, order backlog and technology, and EUR 10 million to
acquired buildings. We recorded deferred tax liability of EUR 16 million
resulting from these allocations. The goodwill from the acquisition is EUR 70
million. The allocated values to intangible assets and buildings are amortized
during their economically useful lives. The amortization is about EUR 15 million
in 2010, EUR 7 million in 2011 and 2012, and EUR 4 million thereafter. Tamfelt's
balance sheet and personnel were consolidated into Metso as of December
31, 2009, and as of January 1, 2010, Tamfelt is functionally and
administratively a part of our Paper and Fiber Technology segment.



Research and development

Our research and development activities focus on environmental technology, such
as energy and raw material efficiency, utilization of recycled raw materials,
process control technology and, increasingly, on new services business
solutions, which also play a role in supporting sustainable development. As a
result of the global economic downturn, we have concentrated our R&D work on
projects that offer the best potential for capitalizing on our future growth
opportunities.

Our R&D expenses were EUR 115 million in 2009, i.e. 2.3 percent of Metso's net
sales (EUR 134 million and 2.1% in 2008). In addition to this, expenses for
intellectual property rights amounted to EUR 15 million (EUR 14 million). R&D
employed 763 people (905) in 2009. Our R&D resources are spread throughout 40
networked units in Europe, North America, South America and Asia. Our personnel
made approximately 620 invention disclosures (900), which led to more than 200
priority patent applications (230). At the end of the year, approximately 3,000
Metso inventions were protected by patents (3,000).

During 2009, we launched about 80 new products. One example, DNAmachineAssessor,
a product that complements our automation solutions, helps to predict equipment
maintenance needs and prevent disruptions in production. We have also developed
new crushing and screening solutions that provide higher capacity utilization
and eco-efficiency through improved process optimization. We strengthened our
offering for the pulp and paper industry by introducing several new solutions
and services that improve the energy and process efficiency of production lines.



Environment and environmental technology

The environmental impact of our own production is minor and relates mainly to
the consumption of raw materials and energy, emissions to air, water consumption
and waste. We are continuously improving our environmental management practices
and the eco-efficiency of our production facilities, as well as developing our
co-operation, aiming at environmental efficiency with our subcontractors and the
entire supply chain.

In 2009, we set global energy savings and carbon dioxide emissions targets for
our production operations in an effort to reduce our energy consumption and
emissions by 15 percent by 2015 and 20 percent by 2020, in line with the EU
goals.

Many of Metso's environmental technology solutions have been developed in close
co-operation with our customers. The solutions are related to renewable energy
solutions, energy efficiency of our customers' production processes, waste
management, recycling, efficient utilization of raw materials and water,
reducing dust, noise, carbon dioxide and particle emissions, and process
optimization, to name a few. About 60 percent of Metso's net sales can be
classified as environmental business, according to the OECD definition.

During the year, we launched several co-operation projects with our partners
like UPM, Fortum and VTT (Technical Research Center of Finland). These projects
cover, for example, the manufacture of bio-oil from biomass and the utilization
of bio-oil as an alternative to fossil fuels and exploring oxyfuel combustion
technology. Oxyfuel combustion enables carbon capture in power and heat
generation.

We also provide training, maintenance and other services related to our
technology. We take care of the entire life-cycle of production processes and
promote the optimal and environmentally sustainable way to use our solutions.



Risks and business uncertainties

Our operations are affected by various strategic, financial, operational and
hazard risks. We take measures to manage and limit the potential adverse effects
of these risks. If such risks materialized, they could have material adverse
effects on our business, financial situation, and operating result or on the
value of Metso shares and other securities.

Our risk assessments take into consideration the probability of the risks and
the estimated impact of them on our net sales and financial results. The
management estimates that the overall risk level of the company is currently
manageable in proportion to the scope of our operations and the practical
measures available to manage these risks.

Due to the uncertainty in the financial markets and the slow-down of global
economic growth, our operating environment was demanding in 2009, and in
particular the risks related to cyclical fluctuations and financing were in
focus. We estimate that the operating environment will continue to be demanding,
even though financial markets have stabilized and there are first signs of
gradual recovery in the global economy and in demand.

Uncertainty surrounding projects in our order backlog has decreased, and about
14 percent of our order backlog had uncertain delivery schedules at the end of
the year. We apply the percentage-of-completion method to long-term delivery
agreements, meaning that we recognize revenue on long-term delivery agreements
according to the progress of the delivery. The customer advance payment is
typically 10-30 percent of the value of the project, in addition to which the
customer makes progress payments based on the milestones during the project
execution, which significantly decreases risk related to projects as well as our
need for financing. We continually assess our customers' creditworthiness and
ability to meet their obligations. If a customer faces liquidity problems, we
will discuss the possibility of changing project delivery schedules and terms of
payment and any other measures needed. As a rule, we do not finance customer
projects.

We have adjusted our capacity and cost structure to correspond with the current
demand, in order to maintain our competitiveness. The slowdown in global
economic growth has led to tougher price competition, which we are partly able
to compensate in lower procurement costs. Although there have been no major
changes in our competitive field in 2009, the situation might change due to
bankruptcies, acquisitions and the arrival of new players.

The levels of net working capital and capital expenditure have a fundamental
effect on the adequacy of financing. We have successfully released cash from net
working capital in 2009. Although we have developed our net working capital
management practices, there is a risk that working capital will start to grow
again when economic activity picks up. We do not have any large-scale investment
projects underway, and we estimate that we are well positioned to keep our
capital expenditure at a moderate level in the coming years.

Securing the continuity of our operations requires that sufficient funding is
available under all circumstances. The financial crisis, which is still
affecting the financial markets, could make the availability of debt financing
more difficult and/or raise the cost thereof. We estimate that our cash assets,
totaling EUR 976 million in December 31, 2009, and available credit facilities
are sufficient to secure short-term liquidity. Our committed credit facilities
available for withdrawal amounted at the year-end to EUR 500 million. The
average repayment period for our long-term loan capital is 3.4 years and more
than half of our long-term debt will mature after 2011. There are no prepayment
covenants in our debt facilities that would be triggered by changes in credit
ratings. Some of our debt facilities include financial covenants related to
capital structure. Currently we fully meet the covenants and other terms related
to our financing agreements and we consider our flexibility in relation to these
to be adequate.

Changes in the prices of raw materials and components could affect our
profitability. However, the risk of increased direct procurement costs typically
diminishes during an economic downturn. On the other hand, some of our customers
are raw material producers, whose ability to operate and invest may be hampered
by declining raw material prices.

We had EUR 863 million of goodwill on our balance sheet at the end of 2009,
which was related to business acquisitions made over the last 10 years.
Following the significant changes in our business environment, we have conducted
impairment testing reviews at the end of every quarter since September 2008, and
have not found any impairment necessary. The quarterly testing reviews have been
conducted with the same principles as the annual tests and the discount rates
have been adjusted when appropriate. The principles of the impairment testing
are presented in our annual report.

Around EUR 350 million of the goodwill on our balance sheet arises from the
acquisition of Svedala in 2001, and is thereby related to the Mining and
Construction Technology segment and the Recycling business line. EUR 260 million
of our goodwill stems from the Aker Kvaerner Pulping and Power business
operations, which were acquired at the end of 2006. This is allocated to our
Power and Fiber business lines. EUR 50 million of our goodwill arises from the
Beloit paper machine maintenance operations acquired in 2000, which is allocated
to our Paper and Fiber Technology segment. EUR 70 million of the goodwill is the
result of our acquisition of Tamfelt's technical textile business at the end of
2009. The remainder of our goodwill stems from several smaller acquisitions. In
proportion to net sales and profitability, the largest share of goodwill is held
by our Power business line. Its outlook is good due to the favorable growth
outlook for power generation based on renewable energy sources. Goodwill related
to the Tamfelt business is relatively high, as a consequence of the increase in
Metso's share price between the launch of the share exchange offer in November
2009 and the completion of it towards the end of December 2009.

Currency exchange rate risks are among the most substantial financial risks.
Exchange rate changes can affect our business, although the wide geographical
scope of our operations decreases the impact of any individual currency. The
general uncertainty in the economy is likely to increase exchange rate
fluctuations. We hedge the currency exposures that arise from firm delivery and
purchase agreements. In addition, our units can hedge anticipated foreign
currency denominated cash flows by taking into account the significance of such
cash flows, the competitive situation and other opportunities to adapt.



Subpoena from the United States Department of Justice requiring Metso to produce
documents

In November 2006, Metso Minerals Industries, Inc., our U.S. subsidiary, received
a subpoena from the Antitrust Division of the United States Department of
Justice calling for Metso Minerals Industries, Inc. to produce certain
documents. The subpoena relates to an investigation of potential antitrust
violations in the rock crushing and screening equipment industry. We are
co-operating fully with the Department of Justice. We recognized about EUR 1.5
million in expenses resulting from the inquiry in 2009. No separate provision
relating to the investigation has been recognized in the 2009 financial
statements.



Adjusting capacity to demand

We began adjusting our capacity and cost structure to the lower demand already
in early 2008 and continued the measures during 2009. Our aim has been to secure
the competitiveness, flexibility and profitability of our operations. This has
meant reducing the use of external work force, reducing permanent personnel,
temporary lay-offs, and shorter work time, closing down smaller units and tight
cost discipline throughout the organization.

We estimated originally that if our net sales would come down 25-30 percent
during this down cycle from the 2008 level and we would target satisfactory
profitability we would need to reduce our annual capacity cost (all fixed costs
related to our operations, including personnel costs) by about EUR 500-600
million. As the actual decline in our net sales has been about 20 percent, and
we do not foresee currently further deterioration of net sales, the capacity
cost adjustment need is reduced to EUR 400-450 million. We estimate that the
measures we have initiated by the end of 2009 almost entirely cover the EUR
400-450 million adjustment need, and that more than half of the savings impacts
of these measures materialized already in 2009. Over half of the savings stem
from personnel reductions and the rest from other measures. The cost savings
yielded by personnel reductions are more permanent by nature, while the majority
of other costs are expected to come back gradually, as market activity recovers.

From the end of June 2008 to the end of 2009 we have reduced the number of our
permanent personnel by 3,848. Additionally, decisions have already been made or
negotiations are ongoing to further reduce the number of personnel by 760 during
the first half of 2010. Altogether, we estimate that our personnel will be
reduced by approximately 4,600 people between June 2008 to mid-2010. About
3,000 of them are from Finland and Sweden.

During 2009, we recorded about EUR 75 million in non-recurring expenses
resulting from these personnel reductions and unit closures.

In 2009, selling, general and administrative expenses decreased by about EUR
140 million on a comparable basis from 2008 and our personnel related costs
recognized in cost of goods sold decreased by about EUR 100 million. In addition
to personnel-related costs there has also been a reduction in other fixed costs
of goods sold items.

The number of personnel decreased in Mining and Construction Technology by 15
percent, the most in Finland, Brazil and the United States. The number of
personnel in Energy and Environmental Technology declined primarily in Finland
and the United States. The number of personnel in Paper and Fiber Technology
decreased especially in Finland and Sweden.

The table below details the personnel reductions related to the capacity
adjustment measures.

+-------------------------------------+------------+----------+---------+------+
|                                     |  Mining and|Energy and|Paper and| Metso|
|                                     |Construction|  Environ-|    Fiber|      |
|                                     |  Technology|    mental|    Tech-|      |
|                                     |            |Technology|   nology|      |
+-------------------------------------+------------+----------+---------+------+
|Personnel as of June 30, 2008        |      10,503|     6,311|   10,089|28,069|
+-------------------------------------+------------+----------+---------+------+
|Acquisitions, July 2008 - December   |         590|       223|    2,421| 3,234|
|2009                                 |            |          |         |      |
+-------------------------------------+------------+----------+---------+------+
|Divestitures, July 2008 - December   |           -|         -|     -289|  -289|
|2009                                 |            |          |         |      |
+-------------------------------------+------------+----------+---------+------+
|Comparable personnel amount          |      11,093|     6,534|   12,221|31,014|
+-------------------------------------+------------+----------+---------+------+
|Personnel as of December 31, 2009    |       9,541|     6,060|   10,459|27,166|
+-------------------------------------+------------+----------+---------+------+
|Actual reduction July 2008-          |       1,552|       474|    1,762| 3,848|
|December 2009                        |            |          |         |      |
+-------------------------------------+------------+----------+---------+------+
|Estimated additional reductions      |            |          |         |      |
|decided                              |         200|       170|      390|   760|
|and underway                         |            |          |         |      |
+-------------------------------------+------------+----------+---------+------+
|Total personnel reductions decided   |      1 ,752|       644|    2,152| 4,608|
+-------------------------------------+------------+----------+---------+------+
|Temporary lay-offs in man years      |            |          |         |   600|
+-------------------------------------+------------+----------+---------+------+

Personnel

At the end of the year, Metso had 27,166 employees, which was 2,156 less than at
the end of 2008 (29,322 employees on December 31, 2008). The number of employees
declined in all reporting segments and especially in Finland and Sweden, as a
result of capacity adjustment measures. The acquisitions concluded during the
year brought about 1,600 new employees to Metso and when excluding this,
personnel reduction was about 3,750. The share of our personnel working in the
emerging markets stayed on par with the previous year and was 31 percent. During
January-December, we had an average of 27,813 employees.

Mining and Construction Technology employed 35 percent of our personnel, the
Energy and Environmental Technology 22 percent, and the Paper and Fiber
Technology 39 percent, while Valmet Automotive, service centers and Group Head
Office employed 4 percent of the personnel. The countries with the largest
numbers of personnel were Finland, the United States, Sweden, China and Brazil.
These countries employed 69 percent of Metso's total personnel.

Despite the demanding environment, we continued renewing our global HR
management practices and the supporting processes, systems and organization. We
also carried out our key training programs and continued developing work safety.

During 2009, we decided to set new Metso-wide targets for occupational health
and safety. We set a common, global target to decline the amount of lost time
incidents in our units. Our goal for every Metso unit is less than 10 lost time
incidents per million working hours from 2012 onwards.

The salaries and wages of Metso employees are determined on the basis of local
collective and individual agreements, employee performance and job evaluations.
Basic salaries and wages are complemented by performance-based compensation
systems. In 2009, altogether EUR 991 million were paid in salaries and wages
(EUR 1,066 million in 2008).



Personnel by area

                           Dec 31, % of total Dec 31, % of total Change
                              2009  personnel    2008  personnel      %
------------------------------------------------------------------------
 Finland                     8,746         32   9,252         32     -5
------------------------------------------------------------------------
 Other Nordic countries      2,995         11   3,332         11    -10
------------------------------------------------------------------------
 Rest of Europe              3,678         13   3,842         13     -4
------------------------------------------------------------------------
 North America               3,428         13   3,964         14    -14
------------------------------------------------------------------------
 South and Central America
                             2,618         10   2,991         10    -12
------------------------------------------------------------------------
 Asia-Pacific                4,316         16   4,469         15     -3
------------------------------------------------------------------------
 Rest of the world           1,385          5   1,472          5     -6
------------------------------------------------------------------------
 Total                      27,166        100  29,322        100     -7
------------------------------------------------------------------------



Corporate Governance Statement

We have prepared a separate Corporate Governance Statement which follows the
recommendations of the Finnish Corporate Governance Code for listed companies.
It also covers other central areas of corporate governance. The statement is
included in our Annual Report, and it is published separately from the Board of
Directors' Report. The statement is also available on our website at
www.metso.com <http://www.metso.com/>.



Changes in top management

Perttu Louhiluoto was appointed Senior Vice President, EMEA market area, Mining
and Construction Technology in July. In his new position he renounced his
membership of the Metso Executive Team and Metso Executive Forum.

In July, the Group's Senior Vice President, HR Merja Kamppari was appointed as a
member of the Metso Executive Forum. Heinz Gerdes, former President of our
Recycling business line, retired at the end of 2009 and renounced his membership
in the Metso Executive Forum.

Mr. Celso Tacla, the President of Paper and Fiber Technology in South America,
was appointed as a new member to our Metso Excecutive Forum from January
22, 2010 onwards.



Financial targets and dividend policy

In connection with our annual strategy round in August, our long-term financial
targets were evaluated and kept unchanged. For further information on financial
targets, please see our website: www.metso.com/investors
<http://www.metso.com/investors>.



Decisions of our Annual General Meeting

Our Annual General Meeting on March 31, 2009 approved the accounts for 2008 and
decided to discharge the members of the Board of Directors and the President and
CEO from liability for the financial year 2008. In addition, the Annual General
Meeting approved the proposals of the Board of Directors to authorize the Board
of Directors to resolve of a repurchase of Metso's own shares, to issue new
shares and to grant special rights.

The Annual General Meeting decided that a dividend of EUR 0.70 per share will be
paid for the financial year which ended on December 31, 2008. The dividend was
paid on April 15, 2009. In addition, the Annual General Meeting authorized the
Board of Directors to decide, at its discretion and when the economic situation
of Metso favors it, on the payment of a dividend of no more than EUR 0.68 per
share in addition to the above-mentioned dividend. In July 2009, the Board of
Directors decided not to pay any additional dividends. At the time, Metso's
financial result and position were stable and had developed according to the
expectations of Metso's management, but the market outlook for 2010 continued to
be uncertain.

The Annual General Meeting elected Jukka Viinanen Chairman of the Board and
Jaakko Rauramo Vice Chairman of the Board. Pia Rudengren was elected as a new
member of the Board. The Board members re-elected were Maija-Liisa Friman,
Christer Gardell, Arto Honkaniemi and Yrjö Neuvo. Our long-term Chairman of the
Board, Matti Kavetvuo, had announced that he is not available for re-election.
The term of office of Board members lasts until the end of the next Annual
General Meeting.

The Annual General Meeting decided that the annual remunerations for Board
members would be EUR 92,000 for the Chairman, EUR 56,000 for the Vice Chairman
and EUR 45,000 for the members and that the meeting fee including committee
meetings be EUR 600 for each meeting they attend.

The auditing company, Authorized Public Accountants PricewaterhouseCoopers Oy,
was re-elected as our Auditor until the end of the next Annual General Meeting.

The Annual General Meeting decided to establish a Nomination Committee of the
Annual General Meeting to prepare proposals for the following Annual General
Meeting regarding the composition of the Board of Directors and director
remuneration.



Members of Metso Board Committees and personnel representatives

Our Board of Directors elected members from among the Board for the Audit
Committee and Remuneration and HR Committee at its assembly meeting on March
31, 2009. The Board's Audit Committee consists of Maija-Liisa Friman (Chairman),
Arto Honkaniemi and Pia Rudengren. The Board's Remuneration and HR Committee
consists of Jukka Viinanen (Chairman), Christer Gardell, Yrjö Neuvo and Jaakko
Rauramo.

Metso's personnel groups in Finland have elected Jukka Leppänen as the personnel
representative. He participates in the meetings of our Board of Directors as an
invited external expert, and his term of office is the same as the Board
members' term.



Shares and share capital

At the end of 2009, our share capital was EUR 240,982,843.80 and the number of
shares was 150,348,256. The number of shares includes 409,617 Metso shares held
by the parent company, which represent 0.27 percent of all the shares and votes.
The average number of shares outstanding in 2009, excluding Metso shares held by
the Parent Company, was 141,477,476.

In December 2009, 8,593,642 new Metso shares were issued and entered in the
Trade Register. The new shares were related to the execution of Metso's share
exchange offer for Tamfelt Corporation. The new shares carry the right to
dividend and other distribution of assets as well as other shareholder rights in
Metso as of the registration date.

In December 2009, MEO1V Incentive Ky, a limited partnership established to
manage Metso's share ownership plans, was dissolved and the remaining 48,776
Metso shares it had were transferred to Metso Corporation's direct ownership.

In February 2009, we executed a repurchase of 300,000 of our own shares relating
to our share-based management incentive program decided on in October 2008
(Metso Share Ownership Plan 2009-2011). The average purchase price of the shares
was EUR 8.28 and the total amount EUR 2,483,495.48.

Our market capitalization, excluding Metso shares held by the Parent Company,
was EUR 3,693 million on December 31, 2009.

Metso Board members and their interest parties held altogether 15,600 shares on
December 31, 2009, which is 0.01 percent of the paid up share capital and votes
in Metso. The Metso Executive Team and their interest parties held altogether
75,251 Metso Corporation shares at the end of December, which is 0.05 percent of
the paid up share capital and votes. The holdings of the Board of Directors and
Metso Executive Team equaled 0.06 percent of the paid up share capital and votes
in Metso. Up-to-date information concerning the holdings of Metso's statutory
insiders is available on our website: www.metso.com/investors.

Metso is not aware of any valid shareholders' agreements regarding the ownership
of Metso shares or voting rights.



Share-based incentive plans

Metso's share ownership plans are part of the remuneration and commitment
program for the management of the Group and the businesses. For further
information, please see our website: www.metso.com/investors.

Share ownership plan 2006-2008

In March 2009, we distributed the rewards from the 2008 share ownership plan
according to the earnings criteria determined by the Board of Directors. Shares
amounting to 34,265 were distributed as rewards, corresponding to approximately
0.02 percent of all Metso shares. Members of the Executive Team received 6,996
shares, i.e. 25 percent of the maximum amount.

Share ownership plan for 2009-2011

In October 2008, the Board of Directors approved a new share ownership plan for
the years 2009-2011. The plan includes one three-year earnings period and
requires participants' personal investment in Metso shares at the beginning of
the program. Any possible reward from the plan requires continued employment
with Metso and reaching the financial targets set for the plan. Around 89 key
persons are participating in the program and the rewards paid may correspond
with a maximum of 373,175 Metso shares. The shares for the plan are acquired in
public trading and therefore the plan will not have diluting effect on the share
value. Members of the Executive Team may receive a maximum of 77,400 shares as
share rewards in the 2009-2011 plan.

Share ownership plan for 2010-2012

In October 2009, the Board of Directors approved a similar share ownership plan
for the years 2010-2012. The plan includes one three-year earnings period and
requires participants' personal investment in Metso shares. Any possible reward
from the plan requires continued employment with Metso and reaching the
financial targets set for the plan. Around 92 key persons are participating in
the program and the rewards paid may correspond with a maximum of around
343,000 Metso shares. The shares for the plan are acquired in public trading and
therefore the plan will not have diluting effect on the share value. Members of
the Executive Team may receive a maximum of 77,400 shares as share rewards in
the 2010-2012 plan.


REPORTING SEGMENTS

Mining and Construction Technology

                                  |     |     |      |     |      |
 EUR million                      |Q4/09|Q4/08|Change| 2009|  2008|Change
                                  |     |     |     %|     |      |     %
----------------------------------+-----+-----+------+-----+------+-------
 Net sales                        |  524|  717|   -27|2,075| 2,586|   -20
----------------------------------+-----+-----+------+-----+------+-------
 Net sales of services business   |  228|  296|   -23|  967| 1,078|   -10
----------------------------------+-----+-----+------+-----+------+-------
    % of net sales                |   44|   42|      |   47|    42|
----------------------------------+-----+-----+------+-----+------+-------
 Earnings before interest, tax and|     |     |      |     |      |
 amortization (EBITA)             | 45.6| 91.9|   -50|202.8|361.2 |   -44
----------------------------------+-----+-----+------+-----+------+-------
    % of net sales                |  8.7| 12.8|      |  9.8| 14.0 |
----------------------------------+-----+-----+------+-----+------+-------
 Operating profit                 | 44.2| 91.3|   -52|198.8|358.4 |   -45
----------------------------------+-----+-----+------+-----+------+-------
    % of net sales                |  8.4| 12.7|      |  9.6| 13.9 |
----------------------------------+-----+-----+------+-----+------+-------
 Orders received                  |  457|  339|    35|1,660| 2,709|   -39
----------------------------------+-----+-----+------+-----+------+-------
 Order backlog at end of period   |     |     |      |1,041| 1,492|   -30
----------------------------------+-----+-----+------+-----+------+-------
 Personnel at end of period       |     |     |      |9,541|11,259|   -15
----------------------------------+-----+-----+------+-----+------+-------



Net sales of Mining and Construction Technology decreased by 20 percent on the
comparison period and were EUR 2,075 million in 2009. The Mining business line's
net sales declined by about 12 percent, while the net sales of the Construction
business line were down by about 31 percent. While the services business net
sales decreased by 10 percent on the comparison period, they accounted for 47
percent of the segment's net sales (42% in 2008).

Mining and Construction Technology's operating profit for 2009 was EUR 198.8
million, i.e. 9.6 percent of net sales (EUR 358.4 million and 13.9%). Operating
profit was burdened by about EUR 22 million in non-recurring expenses relating
to capacity adjustment measures that were carried out in several units. The
operating profit included also about EUR 23 million in capital gains relating to
the sale of shares in Talvivaara Mining Company Plc. The profitability of the
Mining business line weakened, but remained good. The profitability of the
Construction business line, on the other hand, weakened clearly from 2008 due to
the low delivery volumes and capacity utilization rates in the manufacturing
units and non-recurring expenses relating to the capacity adjustment measures.
Towards the end of the year, the profitability was also negatively affected by
tougher price competition and the use of promotional pricing to de-stock
equipment and parts from inventories.

The value of orders received decreased by 39 percent on the comparison period
and was at the end of the year at EUR 1,660 million (EUR 2,709 million in
2008). The value of new orders received declined in both business lines, and in
all geographical areas. The relative share of orders received from emerging
markets remained on par with the previous year, amounting to 51 percent (50% in
2008). About EUR 112 million worth of previously received orders were cancelled
during the year. Among the biggest new orders of the year was a fine crushing
and screening system for Norsk Stein in Norway. We also signed a multi-year
service agreement with AngloGold Ashanti Iduapriem Mine in Ghana including the
maintenance management services and technical support as well as hands-on
training.

At the end of December, the order backlog was 30 percent lower than at the end
of December 2008, amounting to EUR 1,041 million (EUR 1,492 million at December
31, 2008). When eliminating the impact of cancelled orders, the order backlog
was 23 percent lower than the year before. Around EUR 150 million of the mining
equipment orders in the order backlog have open delivery schedules.



Energy and Environmental Technology

                                  |     |     |      |     |     |
 EUR million                      |Q4/09|Q4/08|Change| 2009| 2008|Change
                                  |     |     |     %|     |     |     %
----------------------------------+-----+-----+------+-----+-----+-------
 Net sales                        |  419|  503|   -17|1,523|1,775|   -14
----------------------------------+-----+-----+------+-----+-----+-------
 Net sales of services business   |  137|  151|    -9|  516|  548|    -6
----------------------------------+-----+-----+------+-----+-----+-------
    % of net sales                |   33|   30|      |   35|   32|
----------------------------------+-----+-----+------+-----+-----+-------
 Earnings before interest, tax and|     |     |      |     |     |
 amortization (EBITA)             | 32.8| 60.5|   -46|136.3|198.3|   -31
----------------------------------+-----+-----+------+-----+-----+-------
    % of net sales                |  7.8| 12.0|      |  8.9| 11.2|
----------------------------------+-----+-----+------+-----+-----+-------
 Operating profit                 | 27.8| 56.0|   -50|118.1|176.0|   -33
----------------------------------+-----+-----+------+-----+-----+-------
    % of net sales                |  6.6| 11.1|      |  7.8|  9.9|
----------------------------------+-----+-----+------+-----+-----+-------
 Orders received                  |  504|  341|    48|1,297|1,658|   -22
----------------------------------+-----+-----+------+-----+-----+-------
 Order backlog at end of period   |     |     |      |1,032|1,204|   -14
----------------------------------+-----+-----+------+-----+-----+-------
 Personnel at end of period       |     |     |      |6,060|6,357|    -5
----------------------------------+-----+-----+------+-----+-----+-------

The net sales of Energy and Environmental Technology declined by 14 percent on
the comparison period and were EUR 1,523 million. Net sales decreased the most
in the Recycling business line, by 34 percent. Net sales of the Power business
line fell by 6 percent and the Automation business line 14 percent. The net
sales of services business decreased by 6 percent on the comparison period and
accounted for 35 percent of the segment's net sales (32% in 2008).

Energy and Environmental Technology's earnings before interest, tax and
amortization (EBITA) weakened from the comparison year and were EUR 136.3
million, or 8.9 percent of net sales (EUR 198.3 million and 11.2% in 2008).
EBITA includes about EUR 11 million in non-recurring expenses relating to
capacity adjustment measures before which the EBITA margin was 9.7 percent.

The Power business line's EBITA-margin improved slightly over the previous year
and in the Automation business line it weakened but remained good. The
profitability of the Recycling business line fell to a weak level, due to low
delivery volumes, tight price competition and low capacity utilization rates.

The value of orders received fell by 22 percent from the comparison period and
totaled EUR 1,297 million. Orders received by the Power business line stayed at
about the same level as the year before. In the Automation business line, new
orders declined by about one fourth from 2008. In the Recycling business line
new orders dropped to a clearly lower level than in the previous year. EUR 96
million worth of orders previously received by the Energy and Environmental
Technology segment were cancelled. The biggest single cancelled order was
Zhanjiang Chenming recovery boiler, worth about EUR 60 million. The remaining
cancellations were related to the Recycling business line. Energy customers in
particular accounted for the largest new orders such as a new waste-to-energy
power boiler for Industrias Celulosa Aragonesa (SAICA) in Spain, a power boiler
and automation system for PGE Zespól Elektrowni Dolna Odra S.A. in Poland, a
biomass boiler with automation system to Nacogdoches in the United States and a
waste gasification plant and automation system for Lahti Energy Oy in Finland.
We also received a large automation package order for Shandong Huatai Paper's
new paper machine line in China.

The order backlog at the end of the year, EUR 1,032 million, was 14 percent
lower (or 6 percent lower when eliminating the impact of cancelled orders) than
at the end of 2008. The order backlog includes projects worth approximately EUR
100 million with uncertain delivery schedules. These include, among others, the
deliveries of power boiler and automation technology for Fibria's pulp mill
project in Brazil.



Paper and Fiber Technology

                                  |     |     |      |      |      |
 EUR million                      |Q4/09|Q4/08|Change|  2009|  2008|Change
                                  |     |     |     %|      |      |     %
----------------------------------+-----+-----+------+------+------+-------
 Net sales                        |  406|  627|   -35| 1,408| 2,044|   -31
----------------------------------+-----+-----+------+------+------+-------
 Net sales of services business   |  159|  204|   -22|   569|   718|   -21
----------------------------------+-----+-----+------+------+------+-------
    % of net sales                |   39|   33|      |    41|    35|
----------------------------------+-----+-----+------+------+------+-------
 Earnings before interest, tax and|     |     |      |      |      |
 amortization (EBITA)             | -3.3| 51.2|   n/a|  16.5|146.1 |   -89
----------------------------------+-----+-----+------+------+------+-------
    % of net sales                | -0.8|  8.2|      |   1.2|  7.1 |
----------------------------------+-----+-----+------+------+------+-------
 Operating profit                 | -7.0| 46.9|   n/a|   0.8|130.1 |   -99
----------------------------------+-----+-----+------+------+------+-------
    % of net sales                | -1.7|  7.5|      |   0.1|  6.4 |
----------------------------------+-----+-----+------+------+------+-------
 Orders received                  |  401|  207|    94| 1,384| 2,021|   -32
----------------------------------+-----+-----+------+------+------+-------
 Order backlog at end of period   |     |     |      | 1,380| 1,434|    -4
----------------------------------+-----+-----+------+------+------+-------
 Personnel at end of period       |     |     |      |10,459|10,544|    -1
----------------------------------+-----+-----+------+------+------+-------

The net sales of Paper and Fiber Technology decreased by 31 percent in 2009 and
were EUR 1,408 million. Net sales of the services business declined by 21
percent in 2009 due to the overall slowdown in the markets and low capacity
utilization rates in our customer industries. However, services business
accounted for 41 percent of net sales (35% in 2008), and the increase was mainly
due to low equipment sales.

Paper and Fiber Technology's EBITA was EUR 16.5 million, i.e. 1.2 percent of net
sales (EUR 146.1 million and 7.1% in 2008). EBITA includes about EUR 42 million
in non-recurring expenses resulting from capacity adjustment measures. EBITA
before the above-mentioned capacity adjustment expenses was EUR 58.2 million,
i.e. 4.1 percent of net sales. Other non-recurring items affecting the financial
result were EUR 9 million in hedging arrangement dissolution costs related to
the cancellation of the Zhanjiang Chenming pulp mill project, and a credit loss
provision of around EUR 4 million due to the initiation of the debt
restructuring proceedings of two of our U.S. customers. The Paper business
line's EBITA before capacity adjustment expenses remained satisfactory, while
the Fiber business line's EBITA before capacity adjustment expenses was
negative, mainly due to the dramatic decrease in volumes. The segment's
profitability was also weakened by the lower capacity utilization rates of our
production and engineering units.

Demand for new production lines and machinery for the paper and board and the
tissue industries remained satisfactory. Demand for machinery and equipment for
the pulp industry was weak, although it improved in the fourth quarter. Overall,
the value of orders received by Paper and Fiber Technology decreased by 32
percent on the comparison period and was EUR 1,384 million. Among the largest
orders received were a fine paper production line for Zhanjiang Chenming, a
coated fine paper line for Shandong Huatai Paper and a coated fine paper
production line for Shouguang MeiLun Paper Co. Ltd. The order backlog at the end
of December was EUR 1,380 million and around EUR 240 million of this relates to
the pulp mill project for Fibria, where the delivery schedule is open. When
eliminating the impact of cancelled orders, the order backlog was 5 percent
higher than year before.



Valmet Automotive

Valmet Automotive's net sales in 2009 totaled EUR 56 million (EUR 65 million in
2008). The operating loss was EUR 8.2 million (EUR 3.5 million loss in 2008).
During the year, Valmet Automotive's production volumes decreased dramatically
and it produced an average of 63 vehicles a day (87 vehicles a day in 2008). At
the end of December, Valmet Automotive employed 679 people (783 employees on
December 31, 2008).

In August, Valmet Automotive signed an agreement with the Norwegian company
Think Global AS for manufacturing and engineering the Think City electric car.
Planned production volumes amount to several thousand cars annually. The series
production began at the end of 2009.

In January, Valmet Automotive signed an agreement with the Danish company Garia
A/S for the engineering and manufacturing of an electric golf car. The agreement
spans several years and involves the production of a few thousand Garia golf
cars annually. The series production started at the end of 2009.

At the end of 2008, Valmet Automotive and the U.S. company Fisker Automotive
Inc. signed a long-term co-operation agreement on the engineering and
manufacturing of Fisker Karma plug-in hybrid cars in Finland. The first Fisker
Karma hybrid vehicles will be delivered in 2010. The annual production is
projected to reach 15,000 cars in full production.

Valmet Automotive's current assembly contract with Porsche will continue until
2012.



Events after the review period

Metso's Nomination Committee proposes seven members to the Board

The Nomination Committee established by Metso's Annual General Meeting proposes
to the next Annual General Meeting, which is planned to be held on March
30, 2010, that the number of Board members is seven.

The Nomination Committee proposes that from the current Board members
Maija-Liisa Friman, Christer Gardell, Yrjö Neuvo, Pia Rudengren and Jukka
Viinanen be re-elected. Jukka Viinanen is proposed to be elected as Chairman of
the Board and Maija-Liisa Friman as Vice Chairman. The Nomination Committee also
proposes that Mr. Erkki Pehu-Lehtonen and Mr. Mikael von Frenckell shall be
elected as the new members of Metso Board.

The Nomination Committee proposes that the annual remuneration payable to the
members of the Board to be elected at the Annual General Meeting for the term
until the close of the Annual General Meeting in 2011 be equal to the
remuneration payable to for the term until the close of the Annual General
Meeting in 2010: EUR 92,000 for the Chairman, EUR 56,000 for the Vice Chairman,
and EUR 45,000 for each member. Additional compensation of EUR 600 shall be paid
for the meetings attended including the meetings of the committees of the Board
of Directors. The Nomination Committee proposes that 40% of the fixed annual
remuneration be paid in Metso shares purchased from the market. The shares will
be purchased directly on behalf of the members of the Board within two weeks
from the release of the Interim Review January 1 March 31, 2010 of Metso
Corporation.

The Nomination Committee notes that a personnel representative will participate
as an external expert in the Metso Board meetings also in the next Board term
within the limitations imposed by the Finnish law. The new Board will invite the
personnel representative as its external expert in its organizing meeting after
the Annual General Meeting.

The members of the Nomination Committee were Kari Järvinen (Chairman), Lars
Förberg, Matti Vuoria and Harri Sailas. Jukka Viinanen and Jaakko Rauramo were
the Committee's expert members.



Short-term outlook

 In the fourth quarter of 2009 we began to see the first signs of gradual
recovery in the global economy and in the demand of some of our customer
industries. Nevertheless, we estimate that our operating environment will
continue to be demanding at least in the first half of 2010.

Our customers are still cautious in their investment decisions, which will
affect our equipment and project businesses in particular. We estimate that our
customers' capacity utilization rates will slowly improve, assuming that the
general positive development of the global economy continues. We expect this to
have a gradual positive effect on our services business.

There have been signs of improvement in mining companies' demand for equipment
and projects. We expect that this will gradually have a positive impact on
orders in 2010. Due to our strong product and services offering, as well as our
large installed equipment base, we expect the demand for our mining equipment
spare and wear parts as well as related services to gradually improve from the
current level.

We anticipate that demand for equipment used in aggregates production by the
construction industry will continue to be weak, with the exception of the
Asia-Pacific and Brazilian markets, where infrastructure construction projects
are maintaining demand. Many countries have introduced stimulus measures
relating to infrastructure development. Though these measures have not yet had
any significant effect, we expect them to positively affect the demand in the
long-term. We estimate that demand for our services business for the
construction industry will remain satisfactory.

Demand for power plants that utilize renewable energy sources is expected to
strengthen in Europe and North America and to be good as the availability of
financing improves. Several countries have published targets to increase the use
of renewable energy. This is expected to support demand for our power plant
solutions fuelled by biomass and waste. Demand for services business is expected
to be satisfactory.

We estimate that demand for our automation products will gradually increase in
2010, as the oil, gas and petrochemical industries increase their investments
due to the improvement in energy prices and demand. Demand for our services
business for automation solutions is expected to be satisfactory.

We expect the demand for metal recycling equipment to be weak due to the low
production volumes of steel, and demand for solid-waste recycling equipment to
be satisfactory. Demand for services in metal recycling is expected to remain
weak in 2010.

We estimate that demand for new fiber lines will continue to be weak, but demand
for rebuilds and services will strengthen during the year. Demand for paper,
board and tissue lines is expected to be satisfactory. We expect the capacity
utilization rates of the paper and board industry to improve during the year,
which should gradually increase the demand for our services business.

We estimate our net sales in 2010 to remain at about the same EUR 5 billion
level as in 2009, and profitability to remain satisfactory. Our estimate is
based on our order backlog, which contains about EUR 2.7 billion worth of
deliveries for 2010, and on the expectation of continued gradual recovery of
global economy.

The net sales and profitability estimates are based on Metso's current market
outlook and business scope.



Board of Director's proposal for the distribution of profit

The Parent Company's distributable funds totaled EUR 1,373,256,006.77 on
December 31, 2009, of which the net profit for the year was EUR 252,714,943.24.

The Board proposes to the Annual General Meeting that the dividend of EUR 0.70
per share be distributed for the year ended on December 31, 2009 and that the
rest be retained and carried further. It is proposed that the record date for
the payment of the dividend will be April 6, 2010 and that the dividend will be
paid on April 13, 2010.

All the shares outstanding on the dividend record date will be entitled to a
dividend, except for the own shares held by the Parent Company.



Annual General Meeting 2010

The Annual General Meeting of Metso Corporation will be held at 3:00 p.m. on
Tuesday, March 30, 2010 at the Helsinki Fair Centre (Messuaukio 1, FI-00520
Helsinki).

Helsinki, February 8, 2010

Metso Corporation's Board of Directors


It should be noted that certain statements herein which are not historical
facts, including, without limitation, those regarding expectations for general
economic development and the market situation, expectations for customer
industry profitability and investment willingness, expectations for company
growth, development and profitability and the realization of synergy benefits
and cost savings, and statements preceded by "expects", "estimates", "forecasts"
or similar expressions, are forward-looking statements. These statements are
based on current decisions and plans and currently known factors. They involve
risks and uncertainties which may cause the actual results to materially differ
from the results currently expected by the company.

Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and
interest levels which influence the operating environment and profitability of
customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions
developed by competitors
(3) the company's own operating conditions, such as the success of production,
product development and project management and their continuous development and
improvement
(4) the success of pending and future acquisitions and restructuring.



     The Financial Statements Review is unaudited




 CONSOLIDATED STATEMENT OF INCOME





                                              10-12/ 10-12/  1-12/  1-12/
 EUR million                                    2009   2008   2009   2008
--------------------------------------------------------------------------
 Net sales                                     1,353  1,839  5,016  6,400

 Cost of goods sold                           -1,056 -1,371 -3,808 -4,733
--------------------------------------------------------------------------
 Gross profit                                    297    468  1,208  1,667

 Selling, general and administrative expenses   -250   -282   -938 -1,043

 Other operating income and expenses, net          9      3     24     11

 Share in profits of associated companies         -1      1      0      2
--------------------------------------------------------------------------
 Operating profit                                 55    190    294    637

 % of net sales                                 4.1%  10.3%   5.9%  10.0%

 Financial income and expenses, net              -13    -35    -72    -89
--------------------------------------------------------------------------
 Profit before taxes                              42    155    222    548

 Income taxes                                    -17    -43    -71   -158
--------------------------------------------------------------------------
 Profit                                           25    112    151    390
--------------------------------------------------------------------------

 Attributable to:

 Shareholders of the company                      25    112    150    389

 Minority interests                                0      0      1      1
--------------------------------------------------------------------------
 Profit                                           25    112    151    390
--------------------------------------------------------------------------


 Earnings per share, EUR                        0.18   0.79   1.06   2.75

 Diluted earnings per share, EUR                0.18   0.79   1.06   2.75






 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME





                                                   10-12/ 10-12/ 1-12/ 1-12/
 EUR million                                         2009   2008  2009  2008
-----------------------------------------------------------------------------
 Profit                                                25    112   151   390


 Cash flow hedges, net of tax                          -3    -24    14   -33

 Available-for-sale equity investments, net of tax     -6     -9    -1   -19

 Currency translation on subsidiary net
 investments                                           13    -37    74   -49

 Net investment hedge gains (losses), net of tax        0     -8     0   -11

 Defined benefit plan actuarial gains (losses),
 net of tax                                            -2    -22    -2   -22
-----------------------------------------------------------------------------
 Other comprehensive income (expense)                   2   -100    85  -134


-----------------------------------------------------------------------------
 Total comprehensive income (expense)                  27     12   236   256
-----------------------------------------------------------------------------

 Attributable to:

 Shareholders of the company                           27     12   235   255

 Minority interests                                     0      0     1     1
-----------------------------------------------------------------------------
 Total comprehensive income (expense)                  27     12   236   256
-----------------------------------------------------------------------------



 CONSOLIDATED BALANCE SHEET






 ASSETS



 EUR million                                 Dec 31, 2009 Dec 31, 2008
-----------------------------------------------------------------------
 Non-current assets

 Intangible assets

 Goodwill                                             863          778

 Other intangible assets                              312          254
-----------------------------------------------------------------------
                                                    1,175        1,032

 Property, plant and equipment

 Land and water areas                                  62           58

 Buildings and structures                             261          239

 Machinery and equipment                              449          366

 Assets under construction                             47           63
-----------------------------------------------------------------------
                                                      819          726

 Financial and other assets

 Investments in associated companies                   13           14

 Available-for-sale equity investments                 15           18

 Loan and other interest bearing receivables            9            8

 Available-for-sale financial investments             130            5

 Financial instruments held for trading                40            0

 Derivative financial instruments                       0            0

 Deferred tax asset                                   171          174

 Other non-current assets                              44           26
-----------------------------------------------------------------------
                                                      422          245

-----------------------------------------------------------------------
 Total non-current assets                           2,416        2,003
-----------------------------------------------------------------------

 Current assets

 Inventories                                        1,172        1,606


 Receivables

 Trade and other receivables                          938        1,146

 Cost and earnings of projects under
 construction in excess of advance billings           312          362

 Loan and other interest bearing receivables            8            9

 Available-for-sale financial assets                   79            -

 Derivative financial instruments                      21           48

 Income tax receivables                                42           23
-----------------------------------------------------------------------
                                                    1,400        1,588


 Cash and cash equivalents                            727          314

-----------------------------------------------------------------------
 Total current assets                               3,299        3,508
-----------------------------------------------------------------------
-----------------------------------------------------------------------
 TOTAL ASSETS                                       5,715        5,511
-----------------------------------------------------------------------




 SHAREHOLDERS' EQUITY AND LIABILITIES





 EUR million                                         Dec 31, 2009 Dec 31, 2008
-------------------------------------------------------------------------------
 Equity

 Share capital                                                241          241

 Share premium reserve                                          -            -

 Cumulative translation adjustments                           -62         -136

 Fair value and other reserves                                710          490

 Retained earnings                                            894          849
-------------------------------------------------------------------------------
 Equity attributable to shareholders                        1,783        1,444


 Minority interests                                             9            9

-------------------------------------------------------------------------------
 Total equity                                               1,792        1,453
-------------------------------------------------------------------------------

 Liabilities

 Non-current liabilities

 Long-term debt                                             1,334        1,089

 Post employment benefit obligations                          190          191

 Provisions                                                    52           36

 Derivative financial instruments                               5            8

 Deferred tax liability                                        56           45

 Other long-term liabilities                                    4            4
-------------------------------------------------------------------------------
 Total non-current liabilities                              1,641        1,373


 Current liabilities

 Current portion of long-term debt                            173          101

 Short-term debt                                               69          245

 Trade and other payables                                   1,065        1,189

 Provisions                                                   235          218

 Advances received                                            363          479

 Billings in excess of cost and earnings of projects
  under construction                                          330          323

 Derivative financial instruments                              21           82

 Income tax liabilities                                        26           48
-------------------------------------------------------------------------------
 Total current liabilities                                  2,282        2,685


-------------------------------------------------------------------------------
 Total liabilities                                          3,923        4,058
-------------------------------------------------------------------------------

-------------------------------------------------------------------------------
 TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES                 5,715        5,511
-------------------------------------------------------------------------------


 NET INTEREST BEARING LIABILITIES

 EUR million                                         Dec 31, 2009 Dec 31, 2008
-------------------------------------------------------------------------------
 Long-term interest bearing debt                            1,334        1,089

 Short-term interest bearing debt                             242          346

 Cash and cash equivalents                                   -727         -314

 Other interest bearing assets                               -266          -22
-------------------------------------------------------------------------------
 Total                                                        583        1,099
-------------------------------------------------------------------------------



 CONDENSED CONSOLIDATED CASH FLOW STATEMENT





                                                      10-12/ 10-12/ 1-12/ 1-12/
 EUR million                                            2009   2008  2009  2008
--------------------------------------------------------------------------------
 Cash flows from operating activities:

 Profit                                                   25    112   151   390

 Adjustments to reconcile profit to net cash provided
 by operating activities

 Depreciation and amortization                            38     36   143   138

 Interests and dividend income                            12     15    58    57

 Income taxes                                             17     43    71   158

 Other                                                    14     16    18    34

 Change in net working capital                           224   -140   518  -437
--------------------------------------------------------------------------------
 Cash flows from operations                              330     82   959   340

 Interest paid and dividends received                    -16    -25   -51   -49

 Income taxes paid                                       -31    -49  -138  -154
--------------------------------------------------------------------------------
 Net cash provided by (used in) operating activities     283      8   770   137
--------------------------------------------------------------------------------
 Cash flows from investing activities:

 Capital expenditures on fixed assets                    -38    -55  -116  -255

 Proceeds from sale of fixed assets                        5      2     8    10

 Business acquisitions, net of cash acquired               2    -13    -1   -44

 Proceeds from sale of businesses,
 net of cash sold                                          -      -     2    12

 (Investments in) proceeds from sale of
 financial assets                                        -78      1  -221     7

 Other                                                     -      -     1    -7
--------------------------------------------------------------------------------
 Net cash provided by (used in) investing activities    -109    -65  -327  -277
--------------------------------------------------------------------------------
 Cash flows from financing activities:

 Redemption of own shares                                  -      -    -2     -

 Dividends paid                                            -      -   -99  -425

 Net funding                                             -61    132    59   621

 Other                                                    -2      -    -6    15
--------------------------------------------------------------------------------
 Net cash provided by (used in) financing
 activities                                              -63    132   -48   211
--------------------------------------------------------------------------------
 Net increase (decrease) in cash
 and cash equivalents                                    111     75   395    71

 Effect from changes in exchange rates                     4    -17    18   -24

 Cash and cash equivalents at beginning of period        612    256   314   267
--------------------------------------------------------------------------------
 Cash and cash equivalents at end of period              727    314   727   314
--------------------------------------------------------------------------------



 FREE CASH FLOW







                                                 10-12/ 10-12/ 1-12/ 1-12/
 EUR million                                       2009   2008  2009  2008
---------------------------------------------------------------------------
 Net cash provided by operating activities          283      8   770   137

 Capital expenditures on maintenance investments    -20    -32   -61  -118

 Proceeds from sale of fixed assets                   5      2     8    10
---------------------------------------------------------------------------
 Free cash flow                                     268    -22   717    29
---------------------------------------------------------------------------



 CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY






                                              Cu-                Eq-
                                              mu-               uity
                                              la-  Fair          at-
                                      Sha-   tive   va-         tri-
                                        re trans-   lue         but-  Mi-
                                      pre-    la-   and   Re-   able nor-
                                Sha-   mi-   tion other tain-     to  ity   To-
                                  re    um    ad-   re-    ed share-  in-   tal
                               capi-   re-  just-  ser- earn-  hold- ter-   eq-
 EUR million                     tal serve  ments   ves  ings    ers ests  uity
--------------------------------------------------------------------------------
 Balance at Jan 1, 2008          241    77    -76   456   910  1,608    7 1,615
--------------------------------------------------------------------------------

 Other comprehensive income
 (expense)                         -     -    -60   -52   -22   -134    -  -134

 Profit                            -     -      -     -   389    389    1   390
--------------------------------------------------------------------------------
 Total comprehensive income
 (expense)                         -     -    -60   -52   367    255    1   256


 Dividends                         -     -      -     -  -425   -425   -2  -427

 Share issue                       -     -      -     -     -      -    -     -

 Redemption of own shares          -     -      -     -     -      -    -     -

 Share-based payments, net of
 tax                               -     -      -     4     -      4    -     4

 Decrease and transfer of
 share
 premium and legal reserve         -   -77      -    77     -      -    -     -

 Other                             -     -      -     5    -3      2    3     5
--------------------------------------------------------------------------------
 Balance at Dec 31, 2008         241     -   -136   490   849  1,444    9 1,453
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 Balance at Jan 1, 2009          241     -   -136   490   849  1,444    9 1,453
--------------------------------------------------------------------------------

 Other comprehensive income
  (expense)                        -     -     74    13    -2     85    -    85

 Profit                            -     -      -     -   150    150    1   151
--------------------------------------------------------------------------------
 Total comprehensive income
 (expense)                         -     -     74    13   148    235    1   236


 Dividends                         -     -      -     -   -99    -99   -1  -100

 Share issue                       -     -      -   206    -2    204    -   204

 Redemption of own shares          -     -      -    -2     -     -2    -    -2

 Share-based payments, net of
 tax                               -     -      -     1     -      1    -     1

 Other                             -     -      -     2    -2      0    -     0
--------------------------------------------------------------------------------
 Balance at Dec 31, 2009         241     -    -62   710   894  1,783    9 1,792
--------------------------------------------------------------------------------





 ACQUISITIONS


 Acquisition of Tamfelt in 2009


 Metso acquired Tamfelt Oyj Abp, a Finnish corporation listed in the NASDAQ OMX
 Helsinki exchange, through a public share exchange offer that was completed at
 the end of December, 2009. The total transaction value was EUR 215 million
 whereof EUR 206 million was compensated by offering 8,593,642 new Metso shares
 representing 95.2% of Tamfelt's shares and votes. The remaining 2.0% of
 Tamfelt's shares, estimated to amount to about EUR 4 million, will be redeemed
 with cash in 2010 as per the Finnish Companies Act. Prior to the transaction,
 Metso held Tamfelt shares worth EUR 4 million i.e. 2.8% of Tamfelt's shares
 and votes. The transaction value includes EUR 5 million in expenses and
 transfer taxes related to the acquisition.


 The transaction value, together with the shares already held, exceeded the net
 assets of Tamfelt by EUR 117 million, whereof EUR 53 million was allocated to
 intangible assets, representing the fair values of acquired customer base,
 order backlog and technology. Furthermore, EUR 10 million was allocated to the
 property, plant and equipment, to reflect their appraisal to fair values. The
 deferred tax liability resulting from these allocations was EUR 16 million.
 The remaining EUR 70 million represents goodwill, which reflects the value of
 assembled workforce, significant synergy benefits and widened business
 portfolio offering Metso potential to expand its operations into new markets
 and customer segments.



Had the acquisition occurred on January 1, 2009, Metso´s net sales would have
increased by EUR 130 million. The calculation of pro forma net income of the
acquired business would be impracticable considering the effects of the
acquisition cost.



 Preliminary details of the acquired net assets and goodwill are as follows:



                                           Carrying Fair value          Fair
 EUR million                                 amount allocations        value
-----------------------------------------------------------------------------
 Intangible assets                                4          53           57

 Property, plant and equipment                   87          10           97

 Inventories                                     30           -           30

 Trade and other receivables                     30           -           30

 Deferred tax liabilities, net                   -9         -16          -25

 Other liabilities assumed                      -22           -          -22
-----------------------------------------------------------------------------
 Non-interest bearing net assets                120          47          167


 Cash and cash equivalents acquired                                       19

 Debt assumed                                                            -36

 Transaction value                                                      -215

 Pre-acquisition holding of Tamfelt shares                                -4

 Costs related to acquisition                                             -1
-----------------------------------------------------------------------------
 Goodwill                                                                 70
-----------------------------------------------------------------------------

 Transaction value settled in cash                                        -4

 Costs related to acquisition                                             -1

 Cash and cash equivalents acquired                                       19
-----------------------------------------------------------------------------
 Total cash inflow on acquisition                                         14
-----------------------------------------------------------------------------







 Other acquisitions in 2009


 In November Metso acquired Kromatek (Shanghai) Co. Ltd., a Chinese company in
 the chromium plating business. The purchase price was less than EUR 1 million
 and the company was combined into Metso's Paper and Fiber Technology segment.


 In November Metso also acquired the coater, creping and doctor blade business
 of Pacific International, a division of Pacific/Hoe Saw&Knife Company, located
 in Portland, Oregon, USA. The acquisition amounted to EUR 1 million. The unit
 was combined into the Paper and Fiber Technology segment.


 In October Metso acquired M&J Industries A/S, a Danish manufacturer of mobile
 and stationary products for solid-waste crushing. The company was integrated
 into the Recycling business line of Metso's Energy and Environmental
 Technology segment. The net debt free acquisition price was EUR 15 million, of
 which EUR 6 million was allocated to intangible assets, representing the fair
 values of the acquired customer base, technology, and order backlog. EUR 3
 million was allocated to property, plant and equipment representing their
 appraisal to fair values. The excess purchase price of EUR 4 million
 represents goodwill associated to Metso's improved market position in new and
 rapidly growing industrial markets.


 In January Metso and Wärtsilä finalized the combination of Metso's Heat &
 Power business with Wärtsilä's Biopower business into a new company MW Power
 Oy, of which Metso owns 60% and Wärtsilä 40%. In this non-cash transaction
 Wärtsilä contributed its business into MW Power Oy in exchange of the shares
 in the company. The company is fully consolidated into the Energy and
 Environmental Technology segment's Power business line. Goodwill of EUR 7
 million arose from this transaction, representing Metso's increased potential
 to offer competitive solutions for the markets utilizing renewable energy
 sources through complementing technologies of the two businesses.

 In January Metso also acquired Oktokon Oy, a Finnish engineering company, into
 its Power business line.


 The acquired businesses contributed net sales of EUR 115 million and net
 profit of EUR 6 million for the period from their acquisition to December
 31, 2009. Had these acquisitions taken place on January 1, 2009, Metso's net
 sales for 2009 would have increased by EUR 20 million and net profit would
 have decreased by EUR 1 million.


 Summary information on acquisitions made in January-December 2009 is as
 follows:







                                               Carrying  Fair value  Fair
 EUR million                                     amount allocations value
--------------------------------------------------------------------------
 Intangible assets                                    1           8     9

 Property, plant and equipment                        5           3     8

 Inventories                                         28           -    28

 Trade and other receivables                         21           -    21

 Deferred tax liabilities                            -1          -3    -4

 Other liabilities assumed                          -44           -   -44
--------------------------------------------------------------------------
 Non-interest bearing net assets                     10           8    18


 Cash and cash equivalents acquired                                     9

 Debt assumed                                                         -20

 Purchase price                                                       -19
--------------------------------------------------------------------------
 Goodwill                                                              12
--------------------------------------------------------------------------


 Purchase price settled in cash                                       -19

 Deferred payments on prior year acquisitions                          -5

 Cash and cash equivalents acquired                                     9
--------------------------------------------------------------------------
 Net cash outflow on acquisitions                                     -15
--------------------------------------------------------------------------



 ASSETS PLEDGED AND CONTINGENT LIABILITIES






 EUR million                                          Dec 31, 2009 Dec 31, 2008
--------------------------------------------------------------------------------
 Mortgages on corporate debt                                    20            4

 Other pledges and contingencies

 Mortgages                                                       1            1

 Pledged assets                                                  -            -

 Guarantees on behalf of associated company
 obligations                                                     -            -

 Other guarantees                                                7            9


 Repurchase and other commitments                                6            6

 Lease commitments                                             226          152
--------------------------------------------------------------------------------



 NOTIONAL AMOUNTS OF DERIVATIVE FINANCIAL INSTRUMENTS







 EUR million                              Dec 31, 2009             Dec 31, 2008
--------------------------------------------------------------------------------
 Forward exchange rate
 contracts                                       1,390                    1,460

 Interest rate swaps                               128                      168

 Option agreements

 Bought                                             13                       12

 Sold                                                6                       12
--------------------------------------------------------------------------------

 The notional amount of electricity forwards was 640 GWh as of Dec 31, 2009 and
 635 GWh as of Dec 31, 2008.

 The notional amount of nickel forwards to hedge stainless steel prices was
 252 tons as of Dec 31, 2009 and 258  tons as of Dec 31, 2008.

 The notional amounts indicate the volumes in the use of derivatives, but do
 not indicate the exposure to risk.

 KEY RATIOS


 EUR million                                   1-12/2009              1-12/2008
--------------------------------------------------------------------------------
 Earnings per share, EUR                            1.06                   2.75

 Diluted earnings per share, EUR                    1.06                   2.75


 Equity/share at end of period, EUR                11.89                  10.19

 Return on equity (ROE), %                           9.8                   26.0

 Return on capital employed (ROCE)
 before tax, %                                      10.0                   23.2

 Return on capital employed (ROCE) after
 tax, %                                              7.7                   17.3

 Equity to assets ratio at end of
 period, %                                          35.7                   30.9

 Gearing at end of period, %                        32.5                   75.7


 Free cash flow                                      717                     29

 Free cash flow/share, EUR                          5.07                   0.20

 Cash conversion, %                                  475                      7


 Gross capital expenditure (excl.
 business acquisitions)                              117                    255

 Business acquisitions, net of cash
 acquired                                              1                     44

 Depreciation and amortization                       143                    138


 Number of outstanding shares at end of
 period (thousands)                              149,939                141,624

 Average number of shares (thousands)            141,477                141,595

 Average number of diluted shares
 (thousands)                                     141,526                141,595
--------------------------------------------------------------------------------




 Formulas for calculation of indicators







  Earnings/share:


  Profit
 ------------------------------------------
  Average number of shares during period



  Equity/share:


  Equity attributable to shareholders
 -------------------------------------
  Number of shares at end of period






  Return on equity (ROE), %:


  Profit
 ----------------------------------- x 100
  Total equity (average for period)






  Return on capital employed (ROCE) before tax, %:


  Profit before tax + interest and other financial expenses
 ------------------------------------------------------------------------ x 100
  Balance sheet total - non-interest bearing liabilities (average for
  period)



  Return on capital employed (ROCE) after tax, %:


  Profit + interest and other financial expenses
 ------------------------------------------------------------------------ x 100
  Balance sheet total - non-interest bearing liabilities (average for
  period)



  Gearing, %:


  Net interest bearing liabilities
 ---------------------------------- x 100
  Total equity



  Equity to assets ratio, %:


  Total equity
 ----------------------------------------- x 100
  Balance sheet total - advances received



  Free cash flow:


  Net cash provided by (used in) operating activities

  - capital expenditures on maintenance investments

  + proceeds from sale of fixed assets
 -----------------------------------------------------
  = Free cash flow


  Cash conversion, %:


  Free cash flow
 ------------------ x 100
  Profit




 EXCHANGE RATES USED






                         1-12/  1-12/ Dec 31, Dec 31,
                          2009   2008    2009    2008
------------------------------------------------------
 USD (US dollar)        1.3960 1.4726  1.4406  1.3917

 SEK (Swedish krona)   10.6092 9.6833 10.2520 10.8700

 GBP (Pound sterling)   0.8948 0.8026  0.8881  0.9525

 CAD (Canadian dollar)  1.5910 1.5656  1.5128  1.6998

 BRL (Brazilian real)   2.7994 2.6711  2.5113  3.2441
------------------------------------------------------



 SEGMENT INFORMATION







 NET SALES

                                           10-12/ 10-12/ 1-12/ 1-12/ Change,
 EUR million                                 2009   2008  2009  2008       %
-----------------------------------------------------------------------------
 Mining and Construction Technology           524    717 2,075 2,586     -20

 Energy and Environmental Technology          419    503 1,523 1,775     -14

 Paper and Fiber Technology                   406    627 1,408 2,044     -31

 Valmet Automotive                             14     13    56    65     -14

 Group Head Office and other                    -      -     -     -       -

 Group Head Office and others total            14     13    56    65     -14

 Intra Metso net sales                        -10    -21   -46   -70
-----------------------------------------------------------------------------
 Metso total                                1,353  1,839 5,016 6,400     -22
-----------------------------------------------------------------------------

 OTHER OPERATING INCOME (+) AND EXPENSES (-), NET




                                     10-12/ 10-12/ 1-12/ 1-12/
 EUR million                           2009   2008  2009  2008
---------------------------------------------------------------
 Mining and Construction Technology     9.3   -0.6  17.8   3.9

 Energy and Environmental Technology   -0.8   -0.6   0.5  -1.2

 Paper and Fiber Technology            -3.4   -0.6  -9.6   2.7

 Valmet Automotive                      2.8    0.0   2.8   0.0

 Group Head Office and other            1.0    4.8  11.9   5.2

 Group Head Office and others total     3.8    4.8  14.7   5.2
---------------------------------------------------------------
 Metso total                            8.9    3.0  23.4  10.6
---------------------------------------------------------------




 SHARE IN PROFITS OF ASSOCIATED COMPANIES




                                     10-12/ 10-12/ 1-12/ 1-12/
 EUR million                           2009   2008  2009  2008
---------------------------------------------------------------
 Mining and Construction Technology     0.3    0.0   0.3   0.1

 Energy and Environmental Technology    0.4    0.3   1.4   1.2

 Paper and Fiber Technology            -1.8    0.5  -1.2   1.2

 Valmet Automotive                        -      -     -     -

 Group Head Office and other              -      -     -     -

 Group Head Office and others total       -      -     -     -
---------------------------------------------------------------
 Metso total                           -1.1    0.8   0.5   2.5
---------------------------------------------------------------




 OPERATING PROFIT (LOSS)

                                     10-12/ 10-12/ 1-12/ 1-12/ Change,
 EUR million                           2009   2008  2009  2008       %
-----------------------------------------------------------------------
 Mining and Construction Technology    44.2   91.3 198.8 358.4     -45

 Energy and Environmental Technology   27.8   56.0 118.1 176.0     -33

 Paper and Fiber Technology            -7.0   46.9   0.8 130.1     -99

 Valmet Automotive                      0.2   -2.5  -8.2  -3.5    -134

 Group Head Office and other          -10.2   -1.6 -15.9 -23.8      33

 Group Head Office and others total   -10.0   -4.1 -24.1 -27.3      12
-----------------------------------------------------------------------
 Metso total                           55.0  190.1 293.6 637.2     -54
-----------------------------------------------------------------------




 OPERATING PROFIT (LOSS), % OF NET SALES




                                     10-12/ 10-12/ 1-12/ 1-12/
 %                                     2009   2008  2009  2008
---------------------------------------------------------------
 Mining and Construction Technology     8.4   12.7   9.6  13.9

 Energy and Environmental Technology    6.6   11.1   7.8   9.9

 Paper and Fiber Technology            -1.7    7.5   0.1   6.4

 Valmet Automotive                      1.4  -19.2 -14.6  -5.4

 Group Head Office and other            n/a    n/a   n/a   n/a

 Group Head Office and others total     n/a    n/a   n/a   n/a
---------------------------------------------------------------
 Metso total                           4.1   10.3   5.9  10.0
---------------------------------------------------------------

 EBITA

                                     10-12/ 10-12/ 1-12/ 1-12/ Change,
 EUR million                           2009   2008  2009  2008       %
-----------------------------------------------------------------------
 Mining and Construction Technology    45.6   91.9 202.8 361.2     -44

 Energy and Environmental Technology   32.8   60.5 136.3 198.3     -31

 Paper and Fiber Technology            -3.3   51.2  16.5 146.1     -89

 Valmet Automotive                      0.3   -2.6  -8.1  -3.5    -131

 Group Head Office and other           -9.2   -1.0 -13.2 -21.2      38

 Group Head Office and others total    -8.9   -3.6 -21.3 -24.7      14
-----------------------------------------------------------------------
 Metso total                           66.2  200.0 334.3 680.9     -51
-----------------------------------------------------------------------




 EBITA, % OF NET SALES

                                     10-12/ 10-12/ 1-12/ 1-12/
 %                                     2009   2008  2009  2008
---------------------------------------------------------------
 Mining and Construction Technology     8.7   12.8   9.8  14.0

 Energy and Environmental Technology    7.8   12.0   8.9  11.2

 Paper and Fiber Technology            -0.8    8.2   1.2   7.1

 Valmet Automotive                      2.1  -20.0 -14.5  -5.4

 Group Head Office and other            n/a    n/a   n/a   n/a

 Group Head Office and others total     n/a    n/a   n/a   n/a
---------------------------------------------------------------
 Metso total                            4.9   10.9   6.7  10.6
---------------------------------------------------------------




 ORDERS RECEIVED

                                     10-12/ 10-12/ 1-12/ 1-12/ Change,
 EUR million                           2009   2008  2009  2008       %
-----------------------------------------------------------------------
 Mining and Construction Technology     457    339 1,660 2,709     -39

 Energy and Environmental Technology    504    341 1,297 1,658     -22

 Paper and Fiber Technology             401    207 1,384 2,021     -32

 Valmet Automotive                       14     13    56    65     -14

 Group Head Office and other              -      -     -     -       -

 Group Head Office and others total      14     13    56    65     -14

 Intra Metso orders received            -11    -11   -39   -69
-----------------------------------------------------------------------
 Metso total                          1,365    889 4,358 6,384     -32
-----------------------------------------------------------------------



 QUARTERLY INFORMATION




 NET SALES

                                     10-12/  1-3/  4-6/  7-9/ 10-12/
 EUR million                           2008  2009  2009  2009   2009
---------------------------------------------------------------------
 Mining and Construction Technology     717   528   531   492    524

 Energy and Environmental Technology    503   397   357   350    419

 Paper and Fiber Technology             627   287   359   356    406

   Valmet Automotive                     13    21    14     7     14

   Group Head Office and other            -     -     -     -      -

 Group Head Office and others total      13    21    14     7     14

 Intra Metso net sales                  -21   -13   -14    -9    -10
---------------------------------------------------------------------
 Metso total                          1,839 1,220 1,247 1,196  1,353
---------------------------------------------------------------------




 OTHER OPERATING INCOME (+) AND EXPENSES (-), NET




                                          10-12/ 1-3/ 4-6/ 7-9/ 10-12/
 EUR million                                2008 2009 2009 2009   2009
-----------------------------------------------------------------------
 Mining and Construction Technology         -0.6  2.1  1.1  5.3    9.3

 Energy and Environmental Technology        -0.6 -0.4  1.6  0.1   -0.8

 Paper and Fiber Technology                 -0.6  0.9 -6.2 -0.9   -3.4

   Valmet Automotive                         0.0  0.0  0.1 -0.1    2.8

   Group Head Office and other               4.8  0.1  2.4  8.4    1.0

 Group Head Office and others total          4.8  0.1  2.5  8.3    3.8
-----------------------------------------------------------------------
 Metso total                                 3.0  2.7 -1.0 12.8    8.9
-----------------------------------------------------------------------

 SHARE IN PROFITS OF ASSOCIATED COMPANIES




                                     10-12/ 1-3/ 4-6/ 7-9/ 10-12/
 EUR million                           2008 2009 2009 2009   2009
------------------------------------------------------------------
 Mining and Construction Technology     0.0  0.0  0.0  0.0    0.3

 Energy and Environmental Technology    0.3  0.3  0.3  0.4    0.4

 Paper and Fiber Technology             0.5  0.0  0.5  0.1   -1.8

   Valmet Automotive                      -    -    -    -      -

   Group Head Office and other            -    -    -    -      -

 Group Head Office and others total       -    -    -    -      -
------------------------------------------------------------------
 Metso total                            0.8  0.3  0.8  0.5   -1.1
------------------------------------------------------------------

 OPERATING PROFIT (LOSS)




                                     10-12/  1-3/ 4-6/  7-9/ 10-12/
 EUR million                           2008  2009 2009  2009   2009
--------------------------------------------------------------------
 Mining and Construction Technology    91.3  54.9 46.0  53.7   44.2

 Energy and Environmental Technology   56.0  27.7 29.7  32.9   27.8

 Paper and Fiber Technology            46.9 -18.2 -1.6  27.6   -7.0

   Valmet Automotive                   -2.5  -0.3 -2.6  -5.5    0.2

   Group Head Office and other         -1.6  -5.5 -5.6   5.4  -10.2

 Group Head Office and others total    -4.1  -5.8 -8.2  -0.1  -10.0
--------------------------------------------------------------------
 Metso total                          190.1  58.6 65.9 114.1   55.0
--------------------------------------------------------------------

 EBITA




                                     10-12/  1-3/ 4-6/  7-9/ 10-12/
 EUR million                           2008  2009 2009  2009   2009
--------------------------------------------------------------------
 Mining and Construction Technology    91.9  55.6 46.9  54.7   45.6

 Energy and Environmental Technology   60.5  32.3 34.1  37.1   32.8

 Paper and Fiber Technology            51.2 -14.0  1.4  32.4   -3.3

   Valmet Automotive                   -2.6  -0.3 -2.6  -5.5    0.3

   Group Head Office and other         -1.0  -4.8 -5.1   5.9   -9.2

 Group Head Office and others total    -3.6  -5.1 -7.7   0.4   -8.9
--------------------------------------------------------------------
 Metso total                          200.0  68.8 74.7 124.6   66.2
--------------------------------------------------------------------

 CAPITAL EMPLOYED




                                     Dec 31, Mar 31, June 30, Sep 30, Dec 31,
 EUR million                            2008    2009     2009    2009    2009
------------------------------------------------------------------------------
 Mining and Construction Technology    1,230   1,221    1,191   1,111   1,072

 Energy and Environmental Technology     647     686      659     626     524

 Paper and Fiber Technology              532     468      475     427     636

   Valmet Automotive                      21      19       20      27      28

   Group Head Office and other           458     493      816     956   1,108

 Group Head Office and others total      479     512      836     983   1,136
------------------------------------------------------------------------------
 Metso total                           2,888   2,887    3,161   3,147   3,368
------------------------------------------------------------------------------

 ORDERS RECEIVED




                                     10-12/ 1-3/  4-6/  7-9/ 10-12/
 EUR million                           2008 2009  2009  2009   2009
--------------------------------------------------------------------
 Mining and Construction Technology     339  385   398   420    457

 Energy and Environmental Technology    341  265   278   250    504

 Paper and Fiber Technology             207  279   335   369    401

   Valmet Automotive                     13   21    14     7     14

   Group Head Office and other            -    -     -     -      -

 Group Head Office and others total      13   21    14     7     14

 Intra Metso orders received            -11   -8    -5   -15    -11
--------------------------------------------------------------------
 Metso total                            889  942 1,020 1,031  1,365
--------------------------------------------------------------------




 ORDER BACKLOG

                                     Dec 31, Mar 31, June 30, Sep 30, Dec 31,
 EUR million                            2008    2009     2009    2009    2009
------------------------------------------------------------------------------
 Mining and Construction Technology    1,492   1,347    1,196   1,103   1,041

 Energy and Environmental Technology   1,204   1,182    1,035     939   1,032

 Paper and Fiber Technology            1,434   1,438    1,304   1,330   1,380

   Valmet Automotive                       -       -        -       -       -

   Group Head Office and other             -       -        -       -       -

 Group Head Office and others total        -       -        -       -       -

 Intra Metso order backlog               -42     -33      -23     -32     -38
------------------------------------------------------------------------------
 Metso total                           4,088   3,934    3,512   3,340   3,415
------------------------------------------------------------------------------




                                     Dec 31, Mar 31, June 30, Sep 30, Dec 31,
 PERSONNEL                              2008    2009     2009    2009    2009
------------------------------------------------------------------------------
 Mining and Construction Technology   11,259  10,826   10,344  10,014   9,541

 Energy and Environmental Technology   6,357   6,387    6,349   6,119   6,060

 Paper and Fiber Technology           10,544  10,090    9,858   9,475  10,459

   Valmet Automotive                     783     618      636     636     679

   Group Head Office and other           379     391      421     419     427

 Group Head Office and others total    1,162   1,009    1,057   1,055   1,106
------------------------------------------------------------------------------
 Metso total                          29,322  28,312   27,608  26,663  27,166
------------------------------------------------------------------------------


Notes to the Financial Statements Review


We have prepared this Financial Statements Review in accordance with IAS 34
'Interim Financial Reporting'.  The same accounting policies have been applied
as in the annual financial statements. This Financial Statements review is
unaudited.



New accounting standards

IFRS 3 (Revised)

IASB has published IFRS 3 (Revised), 'Business combinations', which maintains
the requirement to apply the acquisition method to business combinations, but
with some significant changes such as expensing of transaction costs. In
addition, all payments to purchase a business are to be recorded at fair value
on the acquisition date, with some contingent payments subsequently remeasured
at fair value through income. Goodwill may be calculated based on the parent's
share of net assets or it may include goodwill related to the minority interest.
The revised standard will affect our future business combinations.

IFRS 3 (Revised) was endorsed by the European Union in June 2009 and it becomes
effective for annual financial statements for periods beginning on or after July
1, 2009. We will apply the standard for the financial year beginning on January
1, 2010.



IAS 27 (Revised)

IASB has published IAS 27 (Revised), 'Consolidated and separate financial
statements'. The revised standard requires the effects of all transactions with
non-controlling interests to be recorded in equity if there is no change in
control. They will no longer result in goodwill or gains and losses. The
standard also specifies the accounting when control is lost. Any remaining
interest in the entity is remeasured to fair value and a gain or loss is
expensed. We do not expect the standard to affect our financial statements.

IAS 27 (Revised) was endorsed by the European Union in June 2009 and it is
effective for annual financial statements for periods beginning on or after July
1, 2009. We will apply the revision for the financial year beginning on January
1, 2010.



IFRS 2 (Amendment)

IASB has published an amendment to IFRS 2 'Share-based payments'. The amendment
confirms that in addition to business combinations as defined by IFRS 3
(revised) 'Business combinations', contributions of a business on formation of a
joint venture and common control transactions are excluded from the scope of
IFRS 2, 'Share-based payments'. The revised standard may have an effect on our
future business combinations.

Provided that the amendment receives endorsement by the European Union, we will
apply the standard for the financial year beginning on January 1, 2010.



IAS 38 (Amendment)

IASB has published an amendment to IAS 38 'Intangible assets'. The amendment
clarifies the requirements under IFRS 3 'Business combinations' regarding the
accounting for intangible assets acquired in a business combination and allows
for the combination of intangible assets with equal economic useful life to one
asset group. The revised standard may have an effect on our future business
combinations.

Provided that the amendment receives endorsement by the European Union, we will
apply the standard for the financial year beginning on January 1, 2010.



IFRS 9

IASB has published a new standard IFRS 9 'Financial instruments: Recognition and
measurement'. The standard represents the first milestone in the IASB's planned
replacement of IAS 39. It addresses classification and measurement of financial
assets. The next steps involve reconsideration and re-exposure of the
classification and measurement requirements for financial liabilities,
impairment testing methods for financial assets, and development of enhanced
guidance on hedge accounting. We are currently evaluating the effects on our
financial statements, and expect the standard to have major impacts on the
accounting of financial instruments.

IFRS 9 becomes effective for the financial statements or periods beginning after
January 1, 2013. It is still subject to endorsement by the European Union, and
the endorsement process has been postponed.

Provided that the standard received endorsement by the European Union, we will
apply the standard for the financial year beginning on January 1, 2013.



Trading of Metso shares

The number of Metso Corporation shares traded on the NASDAQ OMX Helsinki
Exchange during 2009 was 321,093,368 shares, equivalent to a turnover of EUR
4,258 million. The share price on December 31, 2009 was EUR 24.63 and the
average trading price for the period was EUR 13.26. The highest quotation during
the review period was EUR 24.78 and the lowest EUR 7.03.

Metso's ADSs (American Depositary Shares) are traded in the United States on the
OTC market. On December 31, 2009, the closing price of an ADS was USD 35.14.
Each ADS represents one share.



Disclosures of changes in holdings

On March 24, 2009, UBS AG's group holding in Metso's shares exceeded the 5
percent threshold. The holding amounted to 7,541,753 shares, which corresponds
to 5.32 percent of the paid up share capital and votes in Metso.

On March 27, 2009, UBS AG's group holding in Metso's shares fell below the 5
percent threshold. The holding amounted to 561,306 shares, which corresponds to
0.40 percent of the paid up share capital and votes in Metso Corporation.



Credit ratings

In November, Moody's Investor's Service confirmed Metso's Baa2 long-term credit
rating, concluding its review for a possible downgrade of the rating begun on
August 21, 2009. The outlook remained negative.

In February 2009, Standard and Poor's confirmed our BBB long-term credit rating
and changed the outlook from stable to negative. At the same time our short-term
credit rating was lowered from A-2 to A-3.



Metso's financial reporting in 2010
Metso's Annual Report will be published in the week beginning on March 8, 2010
(week 10). The Interim Review for January-March 2010 will be published on April
29, 2010, the Interim Review for January-June 2010 on July 29, 2010 and the
Interim Review for January-September 2010 on October 28, 2010 respectively.




Metso is a global supplier of sustainable technology and services for mining,
construction, power generation, automation, recycling and the pulp and paper
industries. We have about 27,000 employees in more than 50 countries.
www.metso.com <http://www.metso.com/>



Further information, please contact:
Jorma Eloranta, President and CEO, Metso Corporation, tel. +358 (0)204 84 3000

Olli Vaartimo, Executive Vice President and CFO, Metso Corporation, tel. +358
(0)204 84 3010

Johanna Henttonen, Vice President, Investor Relations, Metso Corporation, tel.
+358 (0)204 84 3253



Metso Corporation

Olli Vaartimo
Executive Vice President and CFO

Kati Renvall
Vice President, Group Communications

Distribution:
NASDAQ OMX Helsinki Ltd
Media
www.metso.com