Slide 1: Q2 and half-year 2019 results
Q2 and half-year 2019 results Pekka Vauramo, President and CEO Eeva Sipilä, CFO July 25, 2019 © Metso
Slide 2: Forward looking statements
Forward looking statements 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 willingn
Slide 3: Results in brief
Results in brief Pekka Vauramo President and CEO 3 © Metso
Slide 4: Q2 highlights
Q2 highlights Healthy market activity continued Good order intake for both segments - Growth in aggregates and services; strong flow of small orders in mining equipment - Services, distribution and day-to-day strong in Flow Control Strong sales growth and margin expansion - Equipment sales continued
Slide 5: Second-quarter group financials
Second-quarter group financials Orders, sales and profitability Orders received up 2% to EUR 869 million (855 million) 1,200 20 18 Sales up 16% to EUR 903 million (776 million) 1,000 16 EBITA was EUR 119 million, margin of 13.1% 800 14 (91 million and 11.7%) 12 600 10 Operating profit was EUR 114 mi
Slide 6: Minerals quarterly highlights
Minerals quarterly highlights Orders, sales and profitability 1,000 18 Orders received flat at EUR 704 million (704 million) 16 - Services and aggregates equipment grew well 800 - Good intake of small orders in mining equipment 14 - Healthy proposal pipeline in mining 12 600 10 Sales up 17% to EUR 7
Slide 7: Flow Control quarterly highlights
Flow Control quarterly highlights Orders, sales and profitability 200 20 Orders received up 9% to EUR 165 million (151 million) 18 - Solid growth in services, distribution and day-to-day 160 16 - Project orders from oil & gas market in Asia - Healthy proposal pipeline for pulp and paper projects 14
Slide 8: Financials in detail
Financials in detail Eeva Sipilä CFO 8 © Metso
Slide 9: Income statement
Income statement Last 12 EUR million Q2/2019 Q2/2018 Change % H1/2019 H1/2018 Change % 2018 months Orders received 869 855 2 1,883 1,714 10 3,499 3,670 Sales 903 776 16 1,739 1,490 17 3,173 3,422 EBITA 119 91 31 222 176 26 369 416 % of sales 13.1 11.7 12.8 11.8 11.6 12.1 Operating profit 114 86 33 2
Slide 10: Impacts of structural changes and currencies
Impacts of structural changes and currencies Orders received Sales EUR million EUR million 950 950 900 900 903 850 869 850 855 800 800 750 750 776 700 700 650 650 600 600 550 550 500 500 Q2/2018 Orders Organic growth in Structural Impact of Q2/2019 Orders Q2/2018 Sales Organic growth in Structural I
Slide 11: Balance sheet
Balance sheet EUR million June 30, 2019 % of total Dec 31, 2018 % of total Intangible assets 629 18% 608 19% Tangible assets 322 9% 305 9% Other non-current assets 167 4% 157 5% Inventories 1,028 28% 950 29% Receivables (trade and other) 949 27% 834 25% Liquid funds 330 14% 426 13% TOTAL ASSETS 3,54
Slide 12: Net working capital and capital employed
Net working capital and capital employed Net working capital Capital employed 2,500 2267 2232 2204 1,500 2130 633 Trade receivables 118 84 44 2015 585 Other non-interest bearing 47 Other 2,000 343 315 287 42 liabilities, net 1,000 497 437 Tangible assets 483 464 Advances received 305 688 Net working
Slide 13: Cash flow
Cash flow EUR million H1/2019 2018 Profit for the period 154 229 Adjustments 106 181 Change in net working capital -160 -129 Financial items, paid -16 -17 Taxes paid -52 -87 Net cash flows from operating activities 31 177 Capital expenditure on fixed assets -41 -67 Business acquisitions, net of cash
Slide 14: Financial position
Financial position June 30, 2019 Dec 31, 2018 Return on capital employed before taxes (ROCE), %, 20.9 16.9 annualized Return on equity (ROE), %, annualized 21.8 16.5 Net gearing, % 28.7 11.7 Cash conversion, % 6 64 Equity-to-assets ratio, % 43.4 47.7 Debt to capital, % 34.5 29.7 Net debt/EBITDA 0.8
Slide 15: Strategy and outlook
Strategy and outlook Pekka Vauramo President and CEO 15 © Metso
Slide 16: Strategy execution
Strategy execution Research and development at 1.8% of sales in Q2 - EUR 12 million growth in H1/19 compared to H1/18 Strategic acquisitions - Agreement to acquire McCloskey International, a Canadian mobile crushing and screening equipment provider, was signed to expand Metso’s offering in the aggre
Slide 17: Transaction to create Metso Outotec and Neles announced
Transaction to create Metso Outotec and Neles announced The transaction will create two leading companies - ‘Metso Outotec’ in process technology, equipment and services for minerals, metals and aggregates industries - ‘Neles’ in flow control Metso Outotec - Combined pro forma sales of EUR 4.2 billi
Slide 18: Transaction to create Metso Outotec and Neles announced
Transaction to create Metso Outotec and Neles announced Neles - Leading position and market leadership in pulp & paper valves and downstream oil & gas control valves - Continued outperformance of market growth with best-in-class profitability and proven resilience through the cycle - Diversified reg
Slide 19: Market outlook (unchanged)
Market outlook (unchanged) Market activity in both segments, Minerals and Flow Control, is expected to remain at the current high level in both the equipment and services business. Metso’s market outlook describes the expected sequential development in market activity during the following six-month
Slide 20: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup