Slide 1: Q1 2015 Interim Review
Matti Kähkönen, President and CEO Harri Nikunen, CFO April 23, 2015 1 © 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: Safety is our top priority
Safety is our top priority Continuous focus on our LTIF target of less than 1 leads to results 14 400 Lost time incident frequency (LTIF) Actions leading to 12 Total number of lost time incidents 350 improvement 10 • Active and visible 300 management support 8 LTIF 250 • HSE part of every decision 3
Slide 4: Highlights
Highlights First quarter 2015 Order intake: • Services orders flat, services net sales increased EUR 799 million, -9% • Mining equipment market very weak; oil & gas-related Net sales: project pipeline softened EUR 787 million, -4% • Gross margins remained healthy; lower net sales had an EBITA margin
Slide 5: Group order intake
Group order intake Quarterly Pro forma (excl.PAS) EUR million 1,000 1 600 1,466 834 1 400 791 800 730 737 1,168 723 1 200 1,117 1,100 1,055 1,031 965 982 968 947 1 000 885 875 600 828 825 786 801 799 800 400 600 400 200 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2014 2
Slide 6: Orders by country
Orders by country EUR million Q1/2015 Q1/2014 Change % USA 143 135 6 Brazil 56 70 -20 Chile 53 37 43 China 51 75 -32 Australia 44 48 -9 Finland 43 38 12 Canada 36 54 -34 Mexico 28 22 27 Sweden 26 27 -2 India 24 35 -32 Others 295 333 -11 Metso total 799 875 -9 10 % 27 % Europe 20 % North America Sout
Slide 7: Group net sales
Group net sales Quarterly Pro forma (excl.PAS) EUR million 1 400 1 000 884 915 1,156 1,132 1 200 1 ,116 1,075 804 988 1,018 1,018 800 756 732 959 937 962 1 000 901 915 871 861 817 787 800 744 600 600 400 400 200 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 2011 2012 2013
Slide 8: EBITA* and EBITA margin*
EBITA* and EBITA margin* EUR million % Pro forma (excl. PAS) % 200 16 200 16 14.4 13.7 13.6 13.5 12.9 14 13.7 13.0 14 11.9 12.2 12.0 12.2 12.4 11.9 12.1 11.3 150 11.2 10.7 12 150 12 10.6 9.1 8.7 8.9 10 10 8.7 100 8 100 8 149 147 6 6 136 138 131 137 129 129 118 121 120 50 107 103 103 4 50 99 4 83 88
Slide 9: Financial performance
Financial performance Harri Nikunen CFO
Slide 10: Group key figures
Group key figures EUR million Q1/2015 Q1/2014 Change% Orders received 799 875 -9 without currency impact -15 Services orders received 542 545 -1 without currency impact -6 Net sales 787 817 -4 without currency impact -10 Services net sales 470 438 7 % of net sales 60 54 EBITA * 70 88 -20 % of net sa
Slide 11: EBITA declined due to volume
EBITA declined due to volume Note: Volume, margin, and SG&A changes calculated with constant currencies. Currency impact is included in ’FX rates & Others’. 11 © Metso * Before non-recurring items
Slide 12: Our balance sheet remains strong
Our balance sheet remains strong Mar 31, 2015 Dec 31, 2014 Return on equity (ROE), % * 12.6 15.7 Return on capital employed (ROCE) before taxes, % * 12.9 16.4 Gearing at the end of the period, % 41.4 45.6 Cash conversion, % 235 108 Debt to capital, % 43.0 41.2 Net debt / EBITDA * 1.4 1.3 Interest co
Slide 13: Minerals key figures
Minerals key figures EUR million Q1/2015 Q1/2014 Change% Orders received 558 597 -7 without currency impact -13 Services orders received 406 386 5 Net sales 563 608 -7 without currency impact -13 Services net sales 351 323 9 % of net sales 62 53 EBITA * 55 69 -19 % of net sales 9.9 11.3 Return on op
Slide 14: Minerals rolling net sales and EBITA%
Minerals rolling net sales and EBITA% % EUR million 4 000 14% 13.0% 13.2% 12.6% 12.5% 3 500 11.9% 11.9% 12.7% 12.7% 12.8% 12.3% 12% 11.3% 12.3% 10.9% 10.9% 11.6% 3 000 10.7% 10.4% 10% 2 500 8% 2 000 6% 1 500 4% 1 000 2% 500 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 2012 2013 2014
Slide 15: Flow Control key figures
Flow Control key figures Excluding PAS EUR million Q1/2015 Q1/2014 Change% Orders received 179 194 -8 Services orders received 101 114 -11 Net sales 170 149 14 Services net sales 89 87 3 % of net sales 52 58 EBITA * 28 21 33 % of net sales 16.7 14.2 Q1/2015: • New equipment deliveries in the valves
Slide 16: Flow Control rolling net sales and EBITA%
Flow Control rolling net sales and EBITA% Excluding PAS % EUR Million 800 18% 17.0% 17.1% 16.6% 16.8% 16.6% 16% 700 15.6% 14.8% 14% 600 13.3% 12% 500 12.1% 12.3% 11.7% 11.7% 11.6% 11.2% 10.5% 10.7% 10.8% 10% 400 8% 300 6% 200 4% 100 2% 0 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2011 201
Slide 17: Outlook and guidance
Outlook and guidance Matti Kähkönen President and CEO
Slide 18: Challenging outlook for new equipment demand
Challenging outlook for new equipment demand Mining Aggregates Flow Control 48% of net sales* 23% of net sales* 18% of net sales* of which 75% services of which 40% services of which 50% services Current demand: Current demand: Current demand: • Weak for the equipment and • Satisfactory for equipmen
Slide 19: Order backlog
Order backlog EUR Million EUR million 3 000 2 500 2 506 2 324 2 000 2 010 Deliveries after 2 000 1 927 2014 1 730 1 631 1 500 Deliveries after 1 575 2015 1 364 1 000 Deliveries in 2014 Deliveries in 1 000 2015 500 0 0 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q1 Order backlog Mar 31, 2014 Order backlog Mar 31, 2015 2008
Slide 20: Guidance for 2015
Guidance for 2015 Excluding the Process Automation Systems business The guidance for 2015 is based on the current market activity in our customer industries, our current backlog for 2015, and the current exchange rates. We estimate that • our net sales in 2015 will be between EUR 3,000 and 3,300 mil
Slide 21: The Metso Way – how we solve our customers' challenges
The Metso Way – how we solve our customers’ challenges Knowledge People Solutions We have deep Our committed and We create the knowledge about our highly competent technology and customers' business people make the big services required environment, drivers difference to our to meet our and challeng
Slide 22: Save the date
Save the date Metso Capital Markets Day) September 29, 2015 London; UnitedKingdom 22 © Metso D metso
Slide 23: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup