FCCJ Luncheon Meeting 21 February 2007
Theme:
"Metso: Turn-Around to Profitable Growth
The Story of a Global Market Leader"


Guest Speaker: Mr. Jorma Eloranta, CEO & President, Metso Corporation

Mr. Eloranta's Presentation (pdf 1.9 MB)
RECAP
Jorma Eloranta, who took up his post as CEO and President of Metso Corporation in March of 2004, was in Tokyo for several reasons. The timing was because of the SEB Conference on Japan held 18-20 February. The conference had given him a good opportunity to get an update on the Japanese market, but, as he noted, he is "still confused, but on a higher level". Mr Eloranta has also meetings with Metso's important customers.

In his presentation, Jorma Eloranta gave a brief overview of Metso's current operations, noting that the net sales in 2006 was 5.5 billion euros and it employs about 26,000 people, 36% of them in Finland.

Metso was created in 1999 through a merger between Valmet and Rauma. Since then, the company has grown through a number of acquisitions, but also sold or closed a number of non-core businesses, during a strong restructuring in 2003-2004 when it disposed of over 20 factories.

Since 2005, which was their best year until then with a growth of 17% in sales, Metso has been on a strong growth path, sales growing again by 17% in 2006 and their forecast for 2007 on a similar level of growth, again being Metso's best year ever.

Although Metso is still strong and growing in its traditional, installed base driven markets of Europe and North America, the strong growth are in the new installation driven markets. As an example, Mr. Eloranta said that the order intake in the so called BRIC (Brazil, Russia, India and China) markets grew by 50% in 2006.

In Japan, Metso has today four subsidiaries. Metso Paper Japan Co. Ltd. and Metso Fiber KK (through the acquisition of Aker Kvaerner Pulping and Power) which customers are in pulp, paper and board industry, Metso Minerals (Japan) Co. Ltd. serving metal recycling plants, quarries and construction companies and Metso Automation KK dealing with pulp and paper industry, energy and hydrocarbon industry. These companies employ 105 people and their sales in 2006 was about 21billion yen. The sales growth from 2005 was three-fold and another example of the strong growth they enjoy at present is that the order intake in 2006 was about 43 billion yen, up from about 13 billion in 2005.

So for Metso, Japan is hot!
IMAGES FROM THE MEETING
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The A-Team, from right; Hiroshi Miura, President, Metso Paper Japan, Ambassador Jorma Julin, Jorma Eloranta, Tetsuro Azuma, President, Metso Minerals Japan and Michio Imai, President, Metso Fiber K.K.
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Timo Varhama, President of UPM-Kymmene Japan KK and former FCCJ President and current Board of Trustees member, opens the meeting.
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Jorma Eloranta starts his presentation with the press shooting pictures.
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At the top table, from left; Ambassador Julin, Erik Ullner, Kanji Ohashi, Tuomo Kuuppo, Isao Nishimura, Isamu Maeda, Yukio Sakurai, Kimio Hashida and Timo Varhama (back to camera)
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The top table from another angle.
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Jonathan Perry seems to be surprised of the figures...
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From right: Kalevi Lehikoinen, TeliaSonera, Veli-Matti Lahti, SDL Japan, Janne Kauppinen, Itella Oy and Harry Linnarinne, Finpro.
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A question from the press.
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Yoshiharu Kayoh of Metso Paper Japan performs as a competent interpreter.
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The luncheon was attended by 63 persons, including 22 from the press.
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Timo Varhama hands a small gift of appreciation to the speaker.
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