Valmet Corp · OMXHEX:VALMT
Valmet — Metso — Q3 2013 Earnings Presentation
28 slides from Valmet's earnings presentation, Oct 24, 2013
Slide 1: Q3 2013 Interim Review
Matti Kähkönen, President and CEO Harri Nikunen, CFO October 24, 2013 © 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: Presentation contents
Presentation contents 1. Quarterly highlights 2. Strategic priorities 3. Financial performance 4. Outlook and guidance 3 © Metso
Slide 4: Q3/2013 highlights
Q3/2013 highlights Matti Kähkönen President and CEO © Metso
Slide 5: Q3 highlights
Q3 highlights • Challenging market environment and strong currency impact on orders and sales, neutral on profitability • Order intake totaled EUR 1,249 million (EUR 1,511 million); demand for big equipment and projects is soft • EBITA before non-recurring items was EUR 143 million, 9.1% of net sale
Slide 6: Order intake
Order intake EUR million 7,961 3,500 8,000 6,865 2,884 7,000 3,000 5,944 6,000 2,500 5,000 4,716 1,847 1,918 1,920 1,882 4,358 2,000 1,735 1,671 1,699 1,511 1,584 4,000 1,3651,366 1,410 1,498 1,500 1,313 1,249 3,000 942 1,020 1,031 1,000 2,000 500 1,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Slide 7: Net sales
Net sales EUR million 2,500 8,000 7,504 2,074 2,098 7,000 6,646 2,000 1,896 1,755 1,754 1,756 6,000 5,552 1,686 1,5661,561 1,590 1,579 5,016 4,925 1,444 5,000 1,500 1,353 1,3701,326 1,220 1,247 1,196 1,170 4,000 1,000 3,000 2,000 500 1,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 8: EBITA development
EBITA* development EUR million % % 250 14 700 14 11.2 12 600 12 200 10.4 9.7 9.7 9.8 9.5 9.1 9.4 9.4 9.2 9.1 8.9 8.9 9.1 10 500 8.8 10 8.6 8.3 8.0 8.1 8.0 150 7.5 7.5 6.8 8 400 8 6.5 688 6 300 628 6 100 202 197 178 171 491 163 150 4 200 417 4 134 125 128 124 140 141 131 142 143 399 50 92 85 88 88 2
Slide 9: Services business development
Services business development Strategic priority #1 Orders by type Q3/2013 Services orders by segment EUR million 2,800 2,523 2,388 2,400 Services business 2,000 41% 1,600 Product and project business 1,200 59% 830 709 800 400 0 Q3 2012 Q3 2013 Q1-Q3/2012 Q1-Q3/2013 Mining and Construction Automatio
Slide 10: Emerging markets
Emerging markets Strategic priority #2 Order intake in emerging markets Order intake in top 10 growth EUR million countries (EUR million) 5,000 Country Q1-Q3/2013 Q1-Q3/2012 Change % 4,000 Brazil 644 373 73 3,000 China 430 438 -2 2,000 Russia 173 237 - 27 Chile 168 165 2 1,000 Mexico 126 88 44 0 Q1
Slide 11: Mining business
Mining business Strategic priority #3 Mining order intake Q3/2013 mining orders EUR million by market area 1,200 1,000 22% 800 39% 600 400 200 23% 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 16% 2009 2009 2010 2010 2011 2011 2012 2012 2013 2013 Mining, services Mining, capital Exceptionally large orders EMEA No
Slide 12: Financial performance
Financial performance Harri Nikunen, CFO
Slide 13: Group key figures
Group key figures Q1-Q3/ Q1-Q3/ EUR million Q3/2013 Q3/2012 Change % 2013 2012 Change % 2012 Orders received 1,249 1,511 - 17 4,716 5,166 -9 6,865 Services orders received 709 830 - 15 2,388 2,523 -5 3,264 Net sales 1,579 1,754 - 10 4,925 5,406 -9 7,504 Services net sales 762 788 -3 2,268 2,304 -2 3
Slide 14: Group key figures: balance sheet
Group key figures Balance sheet Q1-Q3/ Q1-Q3/ EUR million 2013 2012 Change % 2012 Return on equity 11.0 19.0 17.3 (ROE), % * Return on capital employed 12.8 20.2 19.7 (ROCE) before taxes, % * Free cash flow 149 188 - 21 257 Cash conversion, % 70 Gearing at the end of the 24.0 16.7 14.2 period, % • I
Slide 15: Net debt and net working capital
Net debt and net working capital Net debt and gearing Net working capital EUR million % EUR million % 1,200 80 800 12 75.7 10.5 70 700 1,000 10 60 600 800 8 50 500 6.0 6.0 6.0 33.4 32.5 5.6 600 40 400 6 1,099 4.8 672 4.5 4.2 30 300 400 24.0 4 15.0 447 452 16.7 583 12.2 14.2 20 200 395 540 375 495 20
Slide 16: Mining and Construction key figures
Mining and Construction key figures Q1-Q3 Q1-Q3 EUR million Q3/2013 Q3/2012 Change % /2013 /2012 Change % 2012 Orders received 635 787 - 19 2,164 2,642 - 18 3,436 w/o currency impact -12 -15 Services orders received 372 456 - 18 1,255 1,362 -8 1,771 Net sales 742 882 - 16 2,286 2,568 - 11 3,492 w/o
Slide 17: Mining and Construction
Mining and Construction Rolling 12-month net sales EUR million % 4,000 16 3,500 14 3,000 12 2,500 10 2,000 8 1,500 6 1,000 4 500 2 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012
Slide 18: Automation key figures
Automation key figures Q1-Q3/ Q1-Q3/ EUR million Q3/2013 Q3/2012 Change % 2013 2012 Change % 2012 Orders received 200 190 5 693 639 8 845 w/o currency impact 10 11 Services orders received 98 96 2 326 297 10 382 Net sales 214 212 1 605 626 -3 859 w/o currency impact 6 -1 Services net sales 102 96 7
Slide 19: Automation
Automation Rolling 12-month net sales EUR million % 1,000 18 900 16 800 14 700 12 600 10 500 8 400 6 300 4 200 100 2 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Ser
Slide 20: Pulp, Paper and Power key figures
Pulp, Paper and Power key figures Q1-Q3 Q1-Q3 EUR million Q3/2013 Q3/2012 Change % /2013 /2012 Change % 2012 Orders received 382 504 - 24 1,754 1,767 -1 2,444 w/o currency impact - 19 1 Services orders received 239 278 - 14 807 864 -7 1,111 Net sales 601 635 -5 1,946 2,089 -7 3,014 w/o currency impa
Slide 21: Pulp, Paper and Power
Pulp, Paper and Power Rolling 12-month net sales EUR million % 3,500 9 8 3,000 7 2,500 6 2,000 5 1,500 4 3 1,000 2 500 1 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013
Slide 22: Outlook and guidance
Outlook and guidance Matti Kähkönen President and CEO
Slide 23: Market outlook
Market outlook Uncertainties continue to impact our customer industries Mining Construction Automation 32% of net sales 11% of net sales 12% of net sales 55% service intensity 40% service intensity 45% service intensity Positive for capital and services Positive in emerging markets; flat Posit
Slide 24: Order backlog
Order backlog * EUR million EUR million 6,000 6,000 5,310 5,000 5,000 4,515 4,023 4,000 3,736 4,000 Deliveries after 2012 3,000 3,000 Deliveries after 2013 2,000 2,000 Deliveries in Deliveries in 1,000 1,000 2012 2013 0 0 2010 2011 2012 Q3 Order backlog Sept 30, Order backlog Sept 30, Mining and Con
Slide 25: Guidance for 2013
Guidance for 2013 • Our net sales and EBITA before non-recurring items in 2013 will be significantly lower compared to 2012 Additional information: Mining and Construction segment: Net sales are expected to be somewhat lower and EBITA before non-recurring items at around the same level compared to 2
Slide 26: Global efficiency program under way
Global efficiency program under way Targeting annual cost savings of around EUR 100 million by end of 2015 • The program is designed to improve cost structure and operational efficiency of Metso’s continuing operations following the demerger • Part of continuous efforts to maintain competitiveness a
Slide 27: Demerger update
Demerger update • EGM approved the demerger on October 1 • Strategies, financial targets and management teams of both Metso and Valmet were published in September • Capital Markets Day for both companies scheduled for November 26 and 27 in London • Demerger to be completed by the end of 2013 and lis
Slide 28: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup