Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — Q2 2021 Earnings Presentation
26 slides from Metso's earnings presentation, Aug 4, 2021
Slide 1: Q2 and Half-year review 2021
Q2 and Half- year review 2021 CEO Pekka Vauramo and CFO Eeva Sipilä August 4, 2021
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: About this financial information
About this financial information • Under IFRS, the merger of Metso’s Minerals business and Outotec is treated as a reverse acquisition, where Metso Minerals is the accounting acquirer and Outotec the accounting acquiree. • Metso Outotec has prepared both illustrative and IFRS-based historical quarte
Slide 4: Agenda
Agenda Results in brief Financials Integration, strategy and outlook Q&A Source: August 4, 2021
Slide 5: Results in brief
Results in brief Pekka Vauramo President and CEO
Slide 6: Q2 in short
Q2 in short • Strong market activity and order intake in all segments • Strong sales and profitability in Aggregates • Low sales affected Minerals • Metals turnaround progressing • Integration ahead of plan • Good development in sustainability August 4, 2021
Slide 7: Group Q2 key figures, IFRS
Group Q2 key figures, IFRS (comparison period illustrative combined) • Orders received grew by 43 percent to EUR 1,360 million (EUR 953 million) • Sales EUR 1,010 million (EUR 1,016 million) • Adjusted EBITA EUR 131 million, or 12.9% of sales (EUR 139 million, or 13.7%) • Operating profit EUR 97 mil
Slide 8: Covid-19 impacts in Q2
Covid-19 impacts in Q2 • Workforce mobility and access to sites still limited in several countries • In North America and Australia, the domestic travel has recovered, and increased customer activity related to on-site work • Our own operations have been running with additional health and safety mea
Slide 9: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights • Orders received EUR 363 million (EUR 222 EUR million % million) 400 16 • Organic growth +68% 350 14 • Strong recovery in infrastructure spending 300 12 • Robust H1 season 250 10 • Sales EUR 320 million (EUR 253 million) • Organic growth +29% 200 8 • Driven b
Slide 10: Minerals segment quarterly highlights
Minerals segment quarterly highlights % • Orders EUR 755 million (EUR 645 million) EUR million 900 18 • Focus on sustainability and productivity 800 16 • On-site services still affected by Covid-19 700 14 • Currency impact -6% • Sales EUR 578 million (EUR 653 million) 600 12 • Organic growth -7% 500
Slide 11: Metals segment quarterly highlights
Metals segment quarterly highlights % • Orders received EUR 243 million (EUR 87 EUR million million) 300 25 • Improved market activity 20 250 • Strongest growth in pelletizing 15 • Sales EUR 112 million (EUR 110 million) 200 10 • Low due to timing of deliveries from backlog 150 5 • Adjusted EBITA EU
Slide 12: Financials in details
Financials in details Eeva Sipilä CFO
Slide 13: Income Statement (illustrative combined)
Income Statement (illustrative combined) EUR million Q2/2021 Q2/2020 Q1-Q2/2021 Q1-Q2/2020 1-12/2020 Sales 1,010 1,016 1,935 1,963 3,897 Gross profit 291 294 554 564 1,035 % of sales 28.9 29.0 28.7 28.8 26.6 SG&A expenses -194 -182 -363 -368 -748 Adjusted EBITA 131 139 245 234 448 % of sales 12.9 13
Slide 14: IFRS Income Statement
IFRS Income Statement EUR million Q2/2021 Q1-Q2/2021 1-12/2020 Sales 1,010 1,935 3,319 Adj. EBITA 131 245 397 Adj. EBITA, % 12.9 12.7 11.9 Operating profit 97 188 239 Operating profit, % 9.6 9.7 7.2 Net financial expenses -11 -18 -38 Profit before taxes 86 170 201 Income taxes -22 -43 -52 Profit for
Slide 15: IFRS Balance Sheet
IFRS Balance Sheet EUR million June 30, 2021 December 31, 2020 Intangible assets 2,041 2,060 Total property, plant and equipment 372 356 Right-of-use assets 132 132 Other non-current assets 250 215 Inventories 1,154 1,038 Receivables (trade and other) 1,112 1,083 Liquid funds 469 537 Assets held for
Slide 16: Analysis of Cash Flow
Analysis of Cash Flow EUR million Q2/2021 Q1-Q2/2021 1-12/2020 Profit for the period, continuing 64 127 149 operations Profit for the period, discontinued 22 19 -11 operations Adjustments: 55 131 256 Depreciation and amortization 44 83 160 Financial expenses, net 11 18 38 Income taxes 23 43 58 Other
Slide 17: Net working capital on June 30, 2021
Net working capital on June 30, 2021 EUR million August 4, 2021
Slide 18: Financial position
Financial position • Committed and undrawn revolving credit EUR million June 30, 2021 Dec 31, 2020 facilities totaled EUR 600 million on June 30 • Two bilateral revolving credit facilities Liquid funds 469 537 cancelled, totaling EUR 90 million (maturity in Net debt 686 799 2022) Gearing, % 33.5 39.
Slide 19: Integration, strategy and outlook
Integration, strategy and outlook Pekka Vauramo President and CEO
Slide 20: Integration proceeding ahead of plan
Integration proceeding ahead of plan • Run-rate of EUR 105 million reached in cost synergies • 65% of realized synergies come from the restructuring of the organization and the rest from facilities, IT, and procurement • Realized revenue synergies as sales totaled EUR 40 million and additional EUR 9
Slide 21: Planet Positive – our 1.5°C journey
Planet Positive – our 1.5°C journey • We are committed to limiting global warming to 1.5°C with Science Based Targets (SBT): - Cut CO2 emissions by 50% in own production by 2030 - 20% lower CO2 emissions in logistics by 2025 - 20% lower CO2 emissions in product use by 2025 - 30% of the supplier spen
Slide 22: Planet Positive well presented in Q2 orders
Planet Positive well presented in Q2 orders Top picks • Four pellet plant orders from • First Metso Outotec Truck • Process technology to a China within 10 months Body to Americas precious metals recycling plant • The first integrated • Lithium hydroxide process for beneficiation and pelletizing pro
Slide 23: Highlights after the reporting period
Highlights after the reporting period • EUR 360 million order for the design and engineering of a copper smelter to Freeport Indonesia Manyar Project • Waste Recycling agreed to be divested to Ahlström Capital – Metals Recycling divestment process on-going August 4, 2021
Slide 24: Market outlook
Market outlook Metso Outotec expects the market activity to remain at the current strong level, subject to the development of the Covid-19 pandemic. According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the followin
Slide 25: Metso:Outotec
Metso:Outotec
Slide 26: Partner for positive change
Partner for positive change mogroup.com