Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — FY2021 Earnings Presentation
25 slides from Metso's earnings presentation, Feb 10, 2022
Slide 1: Q4/2021 and full-year 2021 results
Q4/2021 and full-year 2021 results President and CEO Pekka Vauramo and CFO Eeva Sipilä February 10, 2022
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: About this financial information
About this financial information • Under IFRS, the merger of Metso’s Minerals business and Outotec is treated as a reverse acquisition, where Metso Minerals is the accounting acquirer and Outotec the accounting acquiree. • Metso Outotec has prepared both illustrative and IFRS-based historical quarte
Slide 4: Agenda
Agenda 01 Results in brief 02 Financials Integration, 03 sustainability and outlook 04 Q&A February 10, 2022 Source:
Slide 5: Results in brief
01 Results in brief Pekka Vauramo President and CEO
Slide 6: Q4 in short
Q4 in short • Strong market activity in all segments • Services orders continued to increase • Strong sales growth and profitability improvement • Adverse impact from supply chain and logistics • Integration completed successfully and targets achieved February 10, 2022
Slide 7: Group Q4 key figures
Group Q4 key figures EUR million Q4/2021 Q4/2020 Change % Orders received 1,310 1,304 0 Sales 1,278 977 31 Adjusted EBITA 164 103 58 % of sales 12.8 10.6 — Operating profit 130 44 195 % of sales 10.2 4.5 — EPS, continuing operations, EUR (IFRS) 0.11 0.03 267 Cash flow from operations (IFRS) 164 177
Slide 8: Group full-year key figures
Group full-year key figures IFRS, except for 1-6/2020 illustrative combined EUR million 2021 2020 Change % Orders received 5,421 4,150 31 Sales 4,236 3,897 9 Adjusted EBITA 547 448 22 % of sales 12.9 11.5 — Operating profit 425 253 68 % of sales 10.0 6.5 — EPS, continuing operations EUR (IFRS) 0.35
Slide 9: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights • Orders received EUR 331 million (EUR 363 EUR million % million) ◦ Strong market activity 400 20 ◦ Tight component availability limiting order confirmations 300 15 ◦ Services orders +18% y-o-y • Sales EUR 324 million (EUR 251 million) 200 10 ◦ Equipment grew
Slide 10: Minerals segment quarterly highlights
Minerals segment quarterly highlights • Orders EUR 760 million (EUR 730 million) EUR million % ◦ Strong market activity 1,250 20 ◦ Planet Positive offering and productivity solutions in high demand 1,000 ◦ Services orders +22% 15 • Sales EUR 779 million (EUR 640 million) 750 ◦ Increased equipment sa
Slide 11: Metals segment quarterly highlights
Metals segment quarterly highlights % • Orders received EUR 219 million (EUR 212 EUR million million) 400 16 ◦ Strong market activity ◦ One large order of more than EUR 100 million • Sales EUR 174 million (EUR 86 million) 300 8 ◦ Deliveries from the backlog increased ◦ Services share 15% (19%) 200 0
Slide 12: Financials in details
02 Financials in details Eeva Sipilä CFO
Slide 13: IFRS Income Statement
IFRS Income Statement EUR million Q4/2021 Q4/2020 2021 2020* Sales 1,278 977 4,236 3,897 Adj. EBITA 164 103 547 448 Solid development in EPS 0.50 Adj. EBITA, % 12.8 10.6 12.9 11.5 0.41 0.40 Operating profit 130 44 425 253 0.35 0.30 Operating profit, % 10.2 4.5 10.0 6.5 0.20 Net financial expenses -1
Slide 14: IFRS Balance Sheet
IFRS Balance Sheet Restated EUR million December 31, 2021 December 31, 2020 Net debt halved since merger EUR million Intangible assets 2,002 2,060 1,000 80% 944 Total property, plant and equipment 373 356 70% Right-of-use assets 127 132 799 800 Other non-current assets 234 215 60% 675 686 Inventorie
Slide 15: Cash Flow
Cash Flow Cash flow from operations EUR million Q4/2021 Q1-Q4/2021 Q1-Q4/2020 EUR million 700 Profit for the period, continuing operations 94 294 149 608 600 587 Profit for the period, discontinued operations 26 48 -11 500 444 Adjustments: 77 297 256 400 Depreciation and amortization 42 167 160 300
Slide 16: Net working capital on December 31, 2021
Net working capital on December 31, 2021 EUR million 2000 1800 1600 668 -692 1400 1200 -235 1000 -223 800 600 1269 -533 400 200 254 0 ns l ed t y es s ita ne or le bl io iv ab p nt b, ce ya is ca ve iv lia ov re pa ce ng In Pr I-B s re e ki e ad nc or n e no Tr ad w a dv Tr et er A N th O February 1
Slide 17: Solid financial position
Solid financial position • Early repayments totaling EUR 350 million to bank loans during 2021 EUR million December 31, 2021 December 31, 2020 • We cancelled two bilateral credit facilities Liquid funds 473 537 totaling EUR 90 million in 2021 Net debt 470 799 • Sustainability targets included in the
Slide 18: Integration, strategy and outlook
03 Integration, strategy and outlook Pekka Vauramo President and CEO
Slide 19: Integration synergy targets achieved ahead of plan
Integration synergy targets achieved ahead of plan • Annual run-rate of EUR 142 million reached in cost synergies (target EUR 120 million) • The majority of realized synergies comes from the restructuring of the organization and the rest from facilities, IT, and procurement • Realized revenue synerg
Slide 20: Structural developments
Structural developments • Waste Recycling divestment completed in December • Metal Recycling agreed to be divested, closing in H1/22 • Hydrometallurgy moved from Metals to Minerals ◦ Opportunities and synergies in minerals processing ◦ Integrated Planet Positive offering • Remaining Metals businesse
Slide 21: Sustainability highlights 2021
Sustainability highlights 2021 Corporate Knights 2022 • Several Planet Positive launches and orders with Global100 index of the world’s significant Planet Positive content most sustainable companies • Planet Positive portfolio currently covering capital equipment and consumables offering CDP ranking
Slide 22: COVID-19 impacts in Q4
COVID-19 impacts in Q4 • Local and regional restrictions and lockdowns continue limiting access to customer sites and in certain countries also own premises • Slowing down decision-making and overall cooperation with customers • Omicron has been a challenge especially to the manufacturing and wareho
Slide 23: Market Outlook
Market Outlook Metso Outotec expects the market activity to remain at the current strong level, subject to the development of the Covid-19 pandemic. According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the followin
Slide 24: Q&A
Q&A Metso:Outotec
Slide 25: Partner for positive change
Partner for positive change mogroup.com