Valmet Corp · OMXHEX:VALMT
Valmet — Metso — Q1 2020 Earnings Presentation
23 slides from Valmet's earnings presentation, May 7, 2020
Slide 1: Q1/2020 results
Q1/2020 results Pekka Vauramo, President and CEO Eeva Sipilä, CFO May 7, 2020 © 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: Important note about this financial information
Important note about this financial information Metso has classified its Minerals segment as discontinued operations from October 29, 2019, in accordance with IFRS. This was based on the decision taken by Metso’s Extraordinary General Meeting on October 29, 2019, to approve the proposed partial deme
Slide 4: Results in brief
Results in brief Pekka Vauramo President and CEO 4 © Metso
Slide 5: Q1/2020 highlights
Q1/2020 highlights - Good start to the year before the Covid-19 situation started to escalate - Cost and cash measures implemented at the end of March - Metso Outotec and Neles transaction proceeded according to plan 5 © Metso
Slide 6: Covid-19 impacts
Covid-19 impacts China • Operations affected in February; Q1 orders were higher year-on-year, while the sales drop takes a while to catch up. Customer industries • From mid-March, the biggest impact seen in aggregates equipment. Mining equipment has continued in line with expectations. In mining ser
Slide 7: First-quarter group financials
First-quarter group financials Orders, sales and profitability Orders received up 5% to EUR 1,065 million (1,013 million) EUR million % 1 100 20 Sales flat at EUR 832 million (836 million) 1 000 18 900 16 Adjusted EBITA* was EUR 91 million, margin of 10.9% 800 (104 million and 12.4%) 14 700 12 Adjus
Slide 8: Neles quarterly highlights
Neles quarterly highlights Orders, sales and profitability EUR million % 200 Orders received unchanged at EUR 191 million (191 million) 180 - Good project activity in O&G and pulp and paper 160 20 - Services orders declined due to Covid-19 restrictions 140 15 Sales declined 12% to EUR 137 million (1
Slide 9: Minerals quarterly highlights
Minerals quarterly highlights Orders, sales and profitability EUR million % 1 000 20 Orders received +6% to EUR 874 million (823 million) - Mining equipment orders healthy 900 18 - Aggregates equipment grew, incl. McCloskey 800 16 - Services up 5% 700 14 600 12 Sales up 2% to EUR 696 million (681 mi
Slide 10: Financials in detail
Financials in detail Eeva Sipilä CFO 10 © Metso
Slide 11: IFRS Income Statement
IFRS Income Statement EUR million Q1/2020 Q1/2019 Change % 2019 Sales 137 155 -12 660 Operating profit 15 22 -32 93 Profit before taxes 14 21 -33 91 Profit for the period, 10 16 -38 69 continuing operations Profit for the period, 59 48 23 230 discontinued operations Profit for the period, total 69 6
Slide 12: Analysis of Income Statement
Analysis of Income Statement Q1/2020 Q1/2020 Q1/2020 Q1/2020 Q1/2019 Q1/2019 Q1/2019 EUR million continuing discontinued Metso Metso Metso continuing discontinued operations operations total comparable total operations operations Sales 137 696 832 832 836 155 681 Adjusted EBITA 17 89 106 91 104 24 8
Slide 13: Impacts of structural changes and currencies
Impacts of structural changes and currencies Orders received Sales EUR million EUR million 1 150 860 1 100 840 1 050 836 1 065 832 820 1 000 1 013 800 950 780 900 760 850 800 740 750 720 700 700 Q1/2019 Orders Organic growth in Structural Impact of Q1/2020 Orders Q1/2019 Sales Organic growth in Stru
Slide 14: IFRS Balance Sheet
IFRS Balance Sheet EUR million March 31, 2020 March 31, 2019 Intangible assets 79 602 Tangible assets 65 314 Right-of-use assets 43 119 Other non-current assets 18 163 Inventories 195 984 Receivables (trade and other) 124 855 Liquid funds 121 488 Assets, discontinued operations 3,359 - TOTAL ASSETS
Slide 15: Analysis of Balance Sheet
Analysis of Balance Sheet March 31, March 31, 2020 March 31, 2020 March 31, 2020 Dec 31, 2019 EUR million Continuing operations Discontinued operations 2020 Metso comparable Metso total Metso total Intangible assets 79 714 793 784 807 Tangible assets 65 328 393 379 388 Right-of-use assets 43 92 135
Slide 16: IFRS Cash Flow
IFRS Cash Flow EUR million Q1/2020 Q1/2019 2019 Profit for the period, 10 16 69 continuing operations Profit for the period, 59 48 230 discontinued operations Adjustments 31 58 213 Change in net working capital 17 -55 -254 Financial income and expenses paid, net -4 -5 -30 Income taxes paid -25 -18 -
Slide 17: Analysis of Cash Flow
Analysis of Cash Flow Q1/2020 Q1/2020 Q1/2020 Q1/2020 Q1/2019 Q1/2019 Q1/2019 EUR million Continuing Discontinued Metso Metso Metso Continuing Discontinue operations operations total comparable total operations d operations Profit for the year 10 59 69 53 65 15 49 Adjustments 10 22 31 47 58 14 44 Ch
Slide 18: Net working capital and capital employed
Net working capital and capital employed Net working capital Capital employed EUR million EUR million 3000 1500 672 2677 630 Trade receivables 2517 585 2500 2232 2204 1000 497 2015 784 Intangible assets 464 939 914 Net working capital 804 2000 538 545 633 1156 1160 Inventory 500 487 502 608 379 Tang
Slide 19: Financial position
Financial position March 31, 2020 Dec 31, 2019 Return on capital employed before taxes (ROCE), %, 12.6 18.7 annualized Return on equity (ROE), %, annualized 13.9 19.8 Net gearing, % 48.6 52.7 Cash conversion, % 148 14 Equity-to-assets ratio, % 41.2 42.1 Debt to capital, % 43.3 40.2 Net debt/EBITDA 1
Slide 20: Strategy and outlook
Strategy and outlook Pekka Vauramo President and CEO 20 © Metso
Slide 21: Strategy execution
Strategy execution Metso Outotec and Neles transaction proceeding according to plan - Anti-trust clearances anticipated in time - Integration planning, including organization, well advanced - Closing expected on June 30, 2020 Supply footprint development - Proceeding with some impact on schedule due
Slide 22: Market outlook
Market outlook Due to the unpredictability of the Covid-19 situation, Metso will not estimate, for the time being, the development of its market activity for six months ahead. Metso expects that market activity will continue to be affected by Covid-19 throughout the second quarter. According to its
Slide 23: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup