Valmet Corp · OMXHEX:VALMT
Valmet — Metso — Q3 2019 Earnings Presentation
19 slides from Valmet's earnings presentation, Oct 25, 2019
Slide 1: Q3/2019 results
Q3/2019 results Pekka Vauramo, President and CEO Eeva Sipilä, CFO October 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: Q3 highlights
Q3 highlights Healthy market activity; strong services and Valves orders Decision-making slow related to new mining projects High sales growth and further improved profitability McCloskey acquisition closed in October Metso Outotec and Neles transaction proceeding according to plan 4 © Metso
Slide 5: Third-quarter group financials
Third-quarter group financials Orders, sales and profitability % Orders received up 1% to EUR 894 million (883 million) EUR million 1,000 20 900 18 Sales up 19% to EUR 933 million (786 million) 800 16 Adjusted EBITA* was EUR 131 million, margin of 14.0% 700 14 (96 million and 12.1%) 600 12 500 10 Fo
Slide 6: Minerals quarterly highlights
Minerals quarterly highlights Orders, sales and profitability EUR million % 1,000 20 Orders received -2% to EUR 722 million (734 million) - Services orders grew 14% 900 18 - Aggregates equipment orders up slightly during 800 16 seasonally low quarter 700 14 - Slow decision-making related to new mini
Slide 7: Flow Control quarterly highlights
Flow Control quarterly highlights Orders, sales and profitability EUR million % 200 24 Orders received up 15% to EUR 171 million (149 million) - Strong 20% growth in services 180 - 20 Increased orders from oil & gas and pulp & paper 160 140 Sales up 16% to EUR 170 million (146 million) 16 - 120 Doub
Slide 8: Financials in detail
Financials in detail Eeva Sipilä CFO 8 © Metso
Slide 9: Income statement
Income statement Last 12 EUR million Q3/2019 Q3/2018 Change % Q1-Q3/2019 Q1-Q3/2018 Change % 2018 months Orders received 894 883 1 2,776 2,597 7 3,499 3,680 Sales 933 786 19 2,672 2,276 17 3,173 3,569 Adjusted EBITA*) 131 96 36 356 272 31 369 454 % of sales 14.0 12.1 13.3 11.9 11.6 12.7 Operating pr
Slide 10: Impacts of structural changes and currencies
Impacts of structural changes and currencies Orders received Sales EUR million EUR million 950 950 933 900 900 894 883 850 850 800 800 786 750 750 700 700 650 650 600 600 Q3/2018 Orders Organic growth in Structural changes Impact of exchange Q3/2019 Orders Q3/2018 Sales Organic growth in Structural
Slide 11: Balance sheet
Balance sheet EUR million Sept 30, 2019 % of total Dec 31, 2018 % of total Intangible assets 632 16% 608 19% Tangible assets 334 8% 305 9% Right-of-use assets 131 3% 0 0% Other non-current assets 173 4% 157 5% Inventories 1,046 27% 950 29% Receivables (trade and other) 1,014 26% 834 25% Liquid funds
Slide 12: Net working capital and capital employed
Net working capital and capital employed Net working capital Capital employed EUR million EUR million 3,000 1,500 678 Trade receivables 2,545 585 2,500 2,267 2,232 2,204 1,000 497 Intangible assets 464 2,015 632 755 Net working capital 2,000 549 538 633 545 500 502 1,046 Inventory 334 Tangible asset
Slide 13: Cash flow
Cash flow EUR million Q3/2019 Q1-Q3/2019 2018 Profit for the period 74 227 229 Adjustments 63 168 181 Change in net working capital -83 -243 -129 Financial income and expenses paid, net -2 -18 -17 Taxes paid -31 -83 -87 Net cash flows from operating activities 21 52 177 Capital expenditure on fixed
Slide 14: Financial position
Financial position Sept 30, 2019 Dec 31, 2018 Return on capital employed before taxes (ROCE), %, 19.2 16.9 annualized Return on equity (ROE), %, annualized 21.0 16.5 Net gearing, % 28.4 11.7 Cash conversion, % 10 64 Equity-to-assets ratio, % 40.2 47.7 Debt to capital, % 42.0 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 Strategic acquisitions - Acquisition of McCloskey International, a Canadian mobile crushing and screening equipment provider, was closed on October 1. Supply footprint development - Foundry operations in South Africa discontinued - Negotiations ongoing at consumables sites in Swed
Slide 17: Transaction to create Metso Outotec and Neles
Transaction to create Metso Outotec and Neles Financial preparations of the transaction proceeding according to plan - Prospectus (Offering Circular) and carve-out financials were published - Revolving credit facilities for future Metso Outotec and future Neles were signed - Credit ratings for futur
Slide 18: Market outlook
Market outlook Market activity in both segments, Minerals and Flow Control, is expected to remain at the current 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 period using thre
Slide 19: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup