Metso Corporation · OMXHEX:METSO
Metso — H1 2023 Earnings Presentation
20 slides from Metso's earnings presentation, Jul 20, 2023
Slide 1: Q2 and Half-Year Review 2023
Q2 and Half-Year Review 2023 President and CEO Pekka Vauramo and CFO Eeva Sipilä July 20, 2023
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: Agenda
Agenda 01 Results in brief 02 Financials 03 Sustainability and outlook 04 Q&A July 20, 2023
Slide 4: Results in brief
01 Results in brief Pekka Vauramo President and CEO
Slide 5: Q2/23 highlights
Q2/23 highlights Healthy market High sales growth activity New solutions and Record-high partnerships in profitability energy transition July 20, 2023
Slide 6: Group key figures in Q2/23
Group key figures in Q2/23 Orders, sales and adj. EBITA EUR million % EUR million Q2/2023 Q2/2022 Change % 2,000 18 Orders received 1,398 1,610 -13 16 Sales 1,483 1,295 15 14 1,500 12 Adjusted EBITA 246 155 59 10 % of sales 16.6 12.0 – 1,000 8 Operating profit* 230 -13 – 6 500 % of sales 15.5 -1.0 –
Slide 7: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights EUR million % • Orders received EUR 330 million (EUR 363 million) 500 20 ◦ Demand soft in Europe ◦ North America stable 400 ◦ Equipment -8%, services -11% 15 300 • Sales EUR 386 million (EUR 368 million) 10 ◦ Healthy sales growth thanks to backlog 200 ◦ Servic
Slide 8: Minerals segment quarterly highlights
Minerals segment quarterly highlights EUR million % • Orders EUR 983 million (EUR 1,176 million) 1,250 20 ◦ Healthy market activity ◦ Equipment orders -35% against a high comparison 1,000 ◦ Services orders flat with growth in spare parts and 15 consumables and lower orders for upgrades 750 10 • Sale
Slide 9: Metals segment quarterly highlights
Metals segment quarterly highlights EUR million % • Orders received EUR 85 million (EUR 71 million) 250 20 ◦ Healthy customer activity; no large orders 200 15 • Sales EUR 118 million (EUR 117 million) ◦ Increased deliveries from backlog 150 ◦ Services share 12% (12%) 10 100 • Adjusted EBITA EUR 14 m
Slide 10: Financials in details
02 Financials in details Eeva Sipilä CFO
Slide 11: Group Income Statement
Group Income Statement EUR million Q2/2023 Q2/2022 Q1-Q2/2023 Q1-Q2/2022 2022 EUR EPS on a strong level 0.20 0.18 0.18 Sales 1,483 1,295 2,901 2,459 5,295 0.17 0.16 0.16 0.16 0.16 Adj. EBITA 246 155 461 312 731 0.15 0.13 Adj. EBITA, % 16.6 12.0 15.9 12.7 13.8 0.10 Operating profit* 230 -13 426 127 5
Slide 12: Group Balance Sheet
Group Balance Sheet EUR million Jun 30, 2023 Dec 31, 2022 EUR million Indebtedness Intangible assets 1,947 1,972 1,000 80% Total property, plant and 435 407 equipment 840 70% Right-of-use assets 114 115 750 60% 686 690 684 673 Other non-current assets 288 262 617 563 50% Inventories 2,008 1,846 500
Slide 13: Working capital
Working capital EUR million EUR million 4,000 11 874 596 3,000 1,000 10 1,216 1,170 874 2,000 8 750 1,000 1,846 2,008 596 0 500 5 -1,000 -2,420 -2,351 250 -2,000 0 0 -3,000 Dec 31, 2022 Jun 30, 2023 Dec 31, 2022 Jun 30, 2023 Net working capital, period end Inventories Receivables Payables NWC, % of
Slide 14: Cash flow
Cash flow EUR million Q2/2023 Q2/2022 Q1-Q2/2023 Q1-Q2/2022 2022 EUR million Cash flow from operations 250 Profit for the period 152 -24 286 64 301 212 Adjustments: 200 Depreciation and amortization 39 39 78 77 156 150 Financial expenses, net 20 11 32 31 63 110 100 Income taxes 53 -5 99 26 113 62 50
Slide 15: Financial position
Financial position EUR million Jun 30, 2023 Jun 30, 2022 Dec 31, 2022 • Ratings: ◦ S&P Global upgraded its credit rating to 'BBB' with Liquid funds 365 451 601 stable outlook on April 24, 2023 ◦ Moody’s (April 2021; confirmed on May 2, 2023): Net debt 840 617 684 ‘Baa2’ long-term rating with stable
Slide 16: Sustainability and outlook
03 Sustainability and outlook Pekka Vauramo President and CEO
Slide 17: ESG highlights in Q2/2023
ESG highlights in Q2/2023 Planet Positive sales grew 43% y-o-y EUR million • Good order pipeline of generally small and medium-sized orders Supplier engagement program progressed well • 23% of supplier spend is with suppliers that have committed to SBT's or similar climate targets Positive trend con
Slide 18: Market Outlook
Market Outlook Metso expects the market activity to remain at the current level in Minerals and to slightly decline in Aggregates. In its previously published outlook Metso expected the overall market activity to remain at the current level, including the normal seasonality in the aggregates market.
Slide 19: Q&A
04 Q&A
Slide 20: Partner for positive change
Partner for positive change metso.com