Slide 1: Q1/2013 Interim Review
Matti Kähkönen, President and CEO Harri Nikunen, CFO April 23, 2013 © Metso www.metso.com
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 April 23, 2013
Slide 4: Q1/2013 Highlights
Q1/2013 Highlights Matti Kähkönen President and CEO
Slide 5: Margin improved in an uncertain market environment
Margin improved in an uncertain market environment • Market activity in line with Q4/12 levels • Capital orders lower year-on-year, services remained at a good level • EBITA margin improved to 8.3% (8.0%) despite a decline in capital equipment sales • Performance was driven by a higher share of the
Slide 6: Order intake
Order intake EUR million 7,961 8,000 6,865 7,000 5,944 6,000 5,000 4,358 4,000 2,883 3,000 1,847 1,918 1,920 1,735 2,000 1,365 1,366 1,671 1,409 1,498 1,313 1,511 1,699 1,584 942 1,020 1,031 1,000 0 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2009 2009 2009 2009 2009 2010 2010 201
Slide 7: Net sales
Net sales EUR million 8,000 7,504 7,000 6,646 6,000 5,552 5,016 5,000 4,000 3,000 2,074 2,098 1,687 1,755 1,897 1,754 1,590 2,000 1,444 1,567 1,561 1,220 1,247 1,196 1,353 1,170 1,370 1,325 1,000 0 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 2009 2009 2009 2009 2009 2010 2010 2010
Slide 8: EBITA margin improved thanks to gross margins
EBITA* margin improved thanks to gross margins EUR million % 700 14 600 11,2 12 10,4 9,7 9,7 9,5 9,8 9,1 9,4 9,4 9,2 500 8,9 8,8 8,9 10 8,6 8,3 8,0 8,0 7,5 7,5 400 6,8 8 6,5 688 300 629 6 491 200 399 4 100 202 178 171 197 2 134 129 150 140 163 141 132 92 125 124 85 88 88 0 0 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3
Slide 9: Services business development
Strategic Services business development priority #1 Orders by type Q1/2013 Services orders by segment Q1/2013 EUR million 1,000 881 873 800 Services business 43% 600 Product and project 57% business 400 200 0 Q1 2012 Q1 2013 Mining and Construction Automation Pulp, Paper and Power Rolling 12-month n
Slide 10: Emerging markets
Strategic Emerging markets priority #2 Net sales in emerging markets Net sales in top 10 growth countries EUR million (EUR million) 4,000 3,500 Country Q1/2013 Q1/2012 Change % 3,000 Brazil 180 201 -10 2,500 China 146 174 -16 2,000 Russia 59 66 -11 1,500 1,000 Chile 54 58 -7 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
Slide 11: Mining business developed well
Strategic Mining business developed well priority #3 Mining order intake Q1/2013 mining orders by market area EUR million 1,200 1,000 22% 800 38% 600 400 20% 200 0 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 20% 2009 2009 2010 2010 2011 2011 2012 2012 2013 Mining, services Mining, capital Exceptionally large orders
Slide 12: Financial performance
Financial performance Harri Nikunen, CFO
Slide 13: Group key figures
Group key figures EUR million Q1/2013 Q1/2012 Change % 2012 Orders received 1,584 1,920 -18 6,865 Services orders received 873 881 -1 3,264 Net sales 1,590 1,755 -9 7,504 Services net sales 727 721 1 3,174 % of net sales 47 43 44 EBITA * 131.5 141.2 -7 687.5 % of net sales 8.3 8.0 9.2 EBIT ** 119.2
Slide 14: Mining and Construction
Mining and Construction EUR million Q1/2013 Q1/2012 Change % 2012 Orders received 786 964 -18 3,436 Services orders received 471 477 -1 1,771 Net sales 744 787 -5 3,492 Services net sales 383 388 -1 1,692 % of net sales 51 49 48 EBITA * 91.2 82.1 11 419.9 % of net sales 12.3 10.4 12.0 Return on capi
Slide 15: Mining and Construction
Mining and Construction 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 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Services net sales, ro
Slide 16: Automation
Automation EUR million Q1/2013 Q1/2012 Change % 2012 Orders received 254 224 13 845 Services orders received 118 104 13 382 Net sales 184 182 1 859 Services net sales 83 83 0 380 % of net sales 45 46 44 EBITA * 16.1 11.1 45 101.2 % of net sales 8.8 6.2 11.8 Return on capital employed ** 19.9 15.0 31
Slide 17: Automation
Automation 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 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Services net sales, rolling 12 month
Slide 18: Pulp, Paper and Power
Pulp, Paper and Power EUR million Q1/2013 Q1/2012 Change % 2012 Orders received 511 677 -25 2,444 Services orders received 284 300 -5 1,111 Net sales 631 721 -12 3,014 Services net sales 260 250 4 1,102 % of net sales 41 35 37 EBITA * 28.3 55.8 -49 203.8 % of net sales 4.5 7.7 6.8 Return on capital
Slide 19: Pulp, Paper and Power
Pulp, Paper and Power 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 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Services net sales, rolling 12 m
Slide 20: Improving our competitiveness in Pulp, Paper and Power
Improving our competitiveness in Pulp, Paper and Power • Permanent structural changes continue in Pulp, Paper and Power’s markets • We have announced a new program to improve competitiveness in these businesses • Targeted savings are up to EUR 100 million by 2016 20 © Metso April 23, 2013
Slide 21: 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 6.3 33.4 32.5 400 6 600 40 1,099 4.8 672 4.5 4.2 4.1 30 300 400 4 15.0 14.2 452 461 583 12.2 13.5 20 200 540 375 200 7.6 281 286
Slide 22: Outlook and guidance
Outlook and guidance Matti Kähkönen President and CEO
Slide 23: Market outlook
Market outlook Uncertainties might impact the timing of large project orders Mining Construction Automation 32% of net sales 11% of net sales 11% of net sales 50% service intensity 40% service intensity 45% service intensity Positive for capital and services Positive in emerging markets; flat
Slide 24: Order backlog of EUR 4.5 billion
Order backlog* of EUR 4.5 billion EUR million EUR million 6,000 6,000 5,310 5,000 5,000 4,515 4,558 4,023 4,000 4,000 Deliveries Deliveries after 2012 after 2013 3,000 3,000 2,000 2,000 Deliveries in Deliveries in 2012 2013 1,000 1,000 Services orders: 33% Services orders: 30% 0 0 2010 2011 2012 Q1
Slide 25: Guidance for 2013
Guidance for 2013 We estimate that • Our EBITA before non-recurring items will be at around 2012 levels and our net sales will be at 2012 level or slightly below. The estimates for our financial performance in 2013 are based on Metso’s current market outlook, order backlog for 2013 and foreign excha
Slide 26: Demerger study proceeding according to plan
Demerger study proceeding according to plan • On March 25, the Board decided to start a process to study the potential demerger of Metso • The plan is to form a new company out of the Pulp, Paper and Power businesses and list it on the NASDAQ OMX Helsinki stock exchange • The Mining and Construction
Slide 27: Key attributes of the planned new entities
Key attributes of the planned new entities ‘PPP’ ‘MAC&AUT’ • Stable underlying market growth driven • Strong underlying market growth in all by increasing board and tissue served markets: mining, construction and consumption in emerging markets, related automation service expansion and biorefining •
Slide 28: Metso - Expect results
Dmetso Expect results