Metso Corporation · OMXHEX:METSO

Metso — Investor Day (2015)

19 slides from Metso's investor day presentation, 2015

  1. Slide 1: In a strong position to grow and improve profitability

    In a strong position to grow and improve profitability Matti Kähkönen President and CEO

  2. Slide 2: A firm foundation to build on

    A firm foundation to build on • Strong foundation for further development • Sound strategy offering growth and higher profitability • Culture and leadership are driving our success 2 © Metso President and CEO Matti Kähkönen Capital Markets Day 2015

  3. Slide 3: Our achievements since CMD 2014

    Our achievements since CMD 2014 CMD 2014 topics Strategic direction Achievements • New operating models • Value creation Services A leading flow The leading • PAS divestment • Transformation control provider technology and • Cost efficiency actions • New strategy with offerings for services provider

  4. Slide 4: Metso today – a focused and integrated company

    Metso today – a focused and integrated company Metso Group • Orders received • Net sales EUR 3,012 million* EUR 3,210 million* • EBITA** 12.2% • ROCE*** 17.1% Minerals Segment Flow Control Segment • 23% of net sales • 77% of net sales • EBITA** 17.5 % • EBITA** 11.6% Valves Pumps Minerals Business A

  5. Slide 5: Portfolio supporting higher margins and lower volatility

    Portfolio supporting higher margins and lower volatility Net sales by customer industries* Net sales by type Net sales by geographic area 7% 11% 3% 16% 25% 13% 41% 15% 59% 7% 23% 38% 20% 21% Mining capital 16% (23%) Europe 25% Mining services 38% (31%) Services 59% North America 20% Aggregates 23% (

  6. Slide 6: Moving personnel closer to customers

    Moving personnel closer to customers December 31, 2013 June 30, 2015 ~ 16,000 employees ~ 13,000 employees 7% 8% 11% 12% 34% 38% 9% 9% 18% 21% 16% 17% Europe 38% North America 17% Europe 34% North America 16% South America 18% China 9% South America 21% China 9% Other Asia-Pacific 11% Africa and Mid

  7. Slide 7: Strong performance despite market headwinds

    Strong performance despite market headwinds EUR million % 4 500 18 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 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2011 2012 2013 2014 2015 Capital net sales, rolling 12 mths Services net sales, rolling 12 mths EBITA before

  8. Slide 8: Our strategy implementation is well on track

    Our strategy implementation is well on track Flow Control Minerals A leading flow The leading Services control provider technology and with offerings for services provider Targeting higher oil & gas, mining for end-to-end and process minerals profitability and industries processing lower volatility

  9. Slide 9: Markets have turned more challenging since the launch of strategy in 2014

    Markets have turned more challenging since the launch of strategy in 2014 Mining Aggregates Flow Control 54% of net sales* 23% of net sales* 23% of net sales* Equipment Services Equipment Services Equipment Services 30% 70% 60% 40% 40% 60% • Weakness has continued in equipment and systems • Demand f

  10. Slide 10: Confirming the guidance for 2015

    Confirming the guidance for 2015 • Our net sales in 2015 will be between EUR 3,000 and 3,200 million • Our EBITA margin before non-recurring items for 2015 will be around 12.5% (12.0-13.0%) Guidance is excluding the Process Automation Systems business and is based on: • net sales of EUR 1,488 millio

  11. Slide 11: Our financial targets remain valid

    Our financial targets remain valid Profitability target to be reached in 2017 Target Q3/2014 - Q2/2015 Net sales growth exceeding market growth On par with the market Delivering greater EBITA margin before non-recurring items >15% 12.2% shareholder value Return on capital employed (ROCE), before tax

  12. Slide 12: Targeting 15% EBITA margin

    Targeting 15% EBITA margin Delivering the target on time is under pressure due to challenging market conditions 14-15% 13-14% 2014: 12-13% Own actions and growth in Services Own actions and growth across the 12.6% Own actions, no growth and Flow Control portfolio (incl. Minerals) • Wears and spares

  13. Slide 13: Targeting ROCE of more than 30%

    Targeting ROCE of more than 30% Focusing on capital efficiency across the Group Requires EBITA margin of 15% Requires capital employed turnover of at least 2 Net working capital efficiency (inventories, receivables) Implementing asset-light business models (divestment of assets, outsourcing) • Fully

  14. Slide 14: Capital allocation focuses on growth

    Capital allocation focuses on growth 1. We will maintain a capital structure and liquidity position that secure: • Ability to execute our dividend policy (>50% of EPS) • Investment-grade credit rating Use of available capital to grow 2. Organic growth based on the 3. Mergers & acquisitions to 4. Ret

  15. Slide 15: Driving a performance culture – sustainable success

    Driving a performance culture – sustainable success Develop a working environment that enables business and customer success Leadership Capabilities Strong global Competent and leaders sharing motivated the same values employees Performance Resourcing Right people in Result-driven right positions or

  16. Slide 16: Safety is an important driver for success

    Safety is an important driver for success Continuous focus on our LTIF target of less than 1 leads to results 14 • Demand from customers: license to play 400 Lost time incident frequency (LTIF) 12 350 • Safe working environment for the whole Total number of lost time incidents personnel 300 10 • Imp

  17. Slide 17: Global, performance-driven leadership team

    Global, performance-driven leadership team Metso Executive Team as of July 2015 Matti Kähkönen Harri Nikunen Perttu Louhiluoto João Ney Colagrossi President & CEO CFO, EVP President, Services President, Minerals • With Metso since 1980 • With Metso since 1986 • With Metso since 2008 • With Metso sin

  18. Slide 18: We are fully committed to create more shareholder value

    We are fully committed to create more shareholder value Investor proposition Total shareholder return 2005 - 2015 Strong market positions in core businesses • Market leader in mining and aggregates 6.5 billion • Strong niche positions in Flow Control • Low investment needs TSR Demerger 1 billion Str

  19. Slide 19: © Metso Capital Markets Day 2015

    © Metso Capital Markets Day 2015

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