Slide 1: Q1 Interim Review January 1 – March 31, 2017
January 1 – March 31, 2017 Q1 Interim Review
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: Quarterly highlights
Quarterly highlights Matti Kähkönen President and CEO 3 © Metso
Slide 4: Safety is an important driver for success
Safety is an important driver for success Demand from customers: License to operate 14 Lost time incident frequency (LTIF) 750 The importance of HSE work for Metso 12 - Encourages employee commitment and motivation Risk observation frequency 650 - Smoothens processes 10 LTIF 550 - Improves productiv
Slide 5: Q1/2017 in brief
Q1/2017 in brief Market activity improved Orders exceeded sales Profitability improving Outlook statements upgraded 5 © Metso
Slide 6: Q1/2017 Financial highlights
Q1/2017 Financial highlights Orders increased 11%; positive book-to-bill development Services orders grew 15%; biggest increase in Flow Control EUR million EUR million 761 496 800 733 1.6 1.6 663 672 433 444 423 441 628 1.13 1.13 1.17 600 1.10 0.99 1.2 400 1.06 0.98 1.01 1.02 1.00 1.2 400 0.8 0.8 20
Slide 7: Short-term market outlook for 2017
Short-term market outlook for 2017 Mining Aggregates Flow Control 45% of sales 80% services * 25% of sales 45% services * 25% of sales 60% services * Equipment Services Equipment Services Equipment Services weak good good good good good Previously: Previously: Previously: satisfactory satisfactory s
Slide 8: Outlook for 2017
Outlook for 2017 Metso’s overall trading conditions are expected to be better than in 2016 (previously: slightly better). Demand for our products and services in 2017 is expected to develop as follows: • Remain weak for mining equipment while improving to good for mining services (previously: weak f
Slide 9: Growth and other topics in the quarter
Growth Currentand other topics topics in the in Q1 quarter Metso Digital Program proceeded to strengthen our digital capabilities New products launched at the Conexpo Industry-changing Metso MX crusher Metso Metrics Services, a new digital solution to help optimize mobile crushing and screening equi
Slide 10: Financial performance
Financial performance Eeva Sipilä CFO 10 © Metso
Slide 11: Positive book-to-bill development
Positive book-to-bill development Orders increased 11%, growth in both Minerals and Flow Control - Activity level in customer industries healthy even without no major project orders in the quarter Services orders grew 15%; strong growth especially in valves and mining services - Delivery mix expecte
Slide 12: Minerals: healthy growth with mix affecting result
Minerals: healthy growth with mix affecting result Orders increased in both new equipment and services Sales grew in both mining and aggregates equipment - Flat services sales were not yet reflecting the higher order intake level Profitability was satisfactory - Negative impact from sales mix (less
Slide 13: Flow Control: strong operational performance
Flow Control: strong operational performance Order growth in pumps, day-to-day valves and valve services - Higher quotation activity in oil and gas projects was not yet visible in orders Services sales up 7%, while equipment sales flat Good operational performance and sales mix supported profitabili
Slide 14: Gross margins stable despite mix
Gross margins stable despite mix Operational performance improved - Gross margin was affected by mix SG&A headcount was 114 lower in Q1/17 Y-o-Y adjusted EBITA comparison affected by increased raw material costs, mainly rubber - Other elements contributed positively EUR million % EUR million % 29.2
Slide 15: Balance sheet continues to be strong
Balance sheet continues to be strong Cash flow from operations healthy at EUR 58 million - Operations improved Net working capital increased slightly Net debt of EUR -63 million before dividend payment in April EUR million EUR million 150 500 500 480 1.5 129 127 124 120 103 103 400 1.2 100 83 300 24
Slide 16: Order backlog increased
Order backlog increased Our backlog for 2017 deliveries totaled approximately EUR 1.2 billion The total backlog is 7% higher than a year ago Order backlog Delivery timetable EUR Million EUR million 2,000 1,500 Deliveries Deliveries after 2017 1,445 1,411 1,399 1,396 after 2016 1,500 1,290 1,268 1,30
Slide 17: Invitation Metso Capital Markets Day
Invitation Metso Capital Markets Day Thursday, June 1, 2017 at Hilton Helsinki Airport Program outline 12:00 noon Registration and lunch 1:00 p.m. - 3:00 p.m. Business updates 3:00 p.m. - 5:30 p.m. Breakout sessions 5:30 p.m. Informal get-together Program will include updates on the strategy and fut
Slide 18: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup
Slide 19: Appendix
Appendix a, at . ~~ ©. D metso 19 © Metso:
Slide 20: Key figures
Key figures EUR million Q1/2017 Q1/2016 Change % 2016 Orders received 733 663 11 2,724 without currency effect 6 Orders received, services business 496 433 15 1,741 without currency effect 10 Sales 648 601 8 2,586 without currency effect 4 Sales, services business 423 409 3 1,703 without currency ef
Slide 21: Strong cash flow and solid financial position
Strong cash flow and solid financial position EUR million Q1/2017 Q1/2016 Change % 2016 Operating profit 59.4 50.4 18 227.1 Earnings per share, EUR 0.23 0.18 28 0.87 Free cash flow 39 62 -37 339 March 31, 2017 Dec 31, 2016 Return on equity (ROE), % 9.9 9.0 Return on capital employed (ROCE) before ta
Slide 22: Markets in Q1/2017
Markets in Q1/2017 Mining Aggregates Flow Control Orders were EUR 334 million and +14% Orders were EUR 197 million and +11% Orders were EUR 173 million and +2% + Services orders +15% + Good activity continued in many markets + Strong quarter in valves, day-to-day and North America + Orders increased