Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — Investor Day (September 2022)
13 slides from Metso's investor day presentation, Sep 15, 2022
Slide 1: Financial base geared to support strategy execution
Financial base geared to support strategy execution Eeva Sipilä CFO and Deputy CEO Capital Markets Day September 15, 2022
Slide 2: Growth and improving profitability during our journey
Growth and improving profitability during our journey Rolling 12 month development • Our journey started €bn in the middle of the 6,0 14,0 % pandemic 5,0 13,0 % • Pro forma adjusted 4,0 EBITA was 11.2% in 3,0 12,0 % 2019 2,0 • All segments have 11,0 % 1,0 grown and improved profitability 0,0 10,0 %
Slide 3: Demonstrating strong commitment to sustainability by integrating it into our financing
Demonstrating strong commitment to sustainability by integrating it into our financing • Metso Outotec Sustainability Linked Finance Framework includes: • KPI 1: Scope 1 & 2 CO2 emissions (tCO2) • KPI 2: Suppliers signed up for the Science-Based Targets initiative • KPI 3: Annual increase in revenue
Slide 4: Strong balance sheet and liquidity
Strong balance sheet and liquidity Balance sheet key figures on June 30, 2022, IFRS Liquid funds Net debt Gearing Equity-to-assets ratio Debt-to-capital ratio EUR 451m EUR 617m 29% 38% 30% Debt Composition Liquidity Arrangements Balanced maturity structure 62% 64 600 300 300 1200 17% 160 21% 600 58
Slide 5: Credit rating at our targeted level
Credit rating at our targeted level • Increased profitability and good cash flow have reduced leverage and improved credit rating metrics. Standard & Poor’s • Moody’s rating and outlook have been stable. BBB- (positive) Standard & Poor’s changed the outlook first from negative to stable, then to pos
Slide 6: Effective tax rate between 2018 and 2021
Effective tax rate between 2018 and 2021 Natural tax rate (excluding one-offs and / or prior year taxes) is driven by our centralized tax model and profit distribution / transfer pricing model • Parent company & IP owning principal company • Statutory tax rate 20% ETR 2018-2021 • Effective tax rate
Slide 7: Tax transparency and sustainability
Tax transparency and sustainability 2021 income taxes paid Main voluntary tax transparency elements mEUR • Tax strategy • High-level income tax footprint as part of the the annual GRI supplement Tax Strategy • Approach to tax management and tax planning • Governance • Committed to full tax complianc
Slide 8: Russia business wind-down
Russia business wind-down • No orders taken since start of war • Operations being reduced to small accounting team in St Petersburg • Remaining order backlog of EUR 380 million written off at the end of June • Provision of EUR 150 million made at end of Q2 is expected to cover the remaining exposure
Slide 9: Cash flow from operations – comparing FY 2021 vs H1/2022
Cash flow from operations – comparing FY 2021 vs H1/2022 FY 2021 H1 2022 9 September 15, 2022
Slide 10: Ongoing portfolio development
Ongoing portfolio development Discontinued operations • Recycling business sold (Waste recycling in 2021, Metal recycling in Q2/2022) • Divestment of Waste-to-energy has taken longer than expected, currently ongoing discussions regarding the business (closing of UK projects dating to 2015 not in sco
Slide 11: Business improvement actions continue to reach >15% adjusted EBITA margin
Business improvement actions continue to reach >15% adjusted EBITA margin Financial targets Ongoing business improvement actions Adjusted EBITA >15% over the cycle 1. Aftermarket growth 2. Specific focus on more captive services offering Maintaining an ‘investment-grade’ credit 3. Consumables has tu
Slide 12: Metso Outotec investment highlights
Metso Outotec investment highlights Leading offering in Committed to aggregates and Industry leader in Strong aftermarket further mining with full sustainability and presence & improvement of flowsheet technology capability profitability 12 September 15, 2022
Slide 13: Partner for positive change
Partner for positive change mogroup.com