Slide 1: Half-Year results 2018
Half-Year results 2018 Eeva Sipilä Interim President & CEO and CFO • January 1 – July 26, 2018 June 30 © 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: Second quarter in brief
Second quarter in brief Healthy market activity Strong double-digit order and sales growth Significant profitability improvement Operational efficiency improvement and strategy implementation continues New President and CEO Pekka Vauramo appointed 3 © Metso
Slide 4: Group second-quarter financials
Group second-quarter financials Orders, sales and profitability Orders received up 14% (+22% in constant 900 18 currencies) to EUR 853 million 800 16 Sales grew 15% (+23% in constant currencies) 700 14 to EUR 776 million 600 12 Adjusted EBITA was EUR 91 million or 11.7% of 500 10 sales (70 million o
Slide 5: Minerals highlights and key financials
Minerals highlights and key financials Orders received up 17% (+25% in constant Orders, sales and profitability 700 14 currencies) to EUR 671 million - Mining equipment orders grew fastest 600 12 Sales grew 14% (+22% in constant currencies) to EUR 596 million 500 10 - Sales growth driven by the equi
Slide 6: Flow Control highlights and key financials
Flow Control highlights and key financials Orders received up 6% (+12% in constant Orders, sales and profitability 200 20 currencies) to EUR 184 million - Activity healthy in the pulp and paper projects and good in day-to-day 160 16 Sales grew 18% (+26% in constant currencies) to EUR 180 million - H
Slide 7: Income statement
Income statement EUR million Q2/2018 Q2/2017 Change % H1/2018 H1/2017 Change % 2017 Orders received 853 749 14 1,712 1,482 16 2,982 Services orders received 463 431 7 954 882 8 1,717 Sales 776 675 15 1,490 1,322 13 2,699 Services sales 442 403 10 864 786 10 1,595 Adjusted EBITA 91 70 30 176 137 29 2
Slide 8: Balance sheet
Balance sheet EUR million June 30, 2018 % of total Dec 31, 2017 % of total Tangible assets 284 9% 287 9% Intangible assets 538 18% 545 17% Other non-current assets 127 4% 130 4% Inventories 857 28% 750 23% Receivables (trade and other) 702 23% 644 20% Current financial assets 207 7% 258 8% Cash and
Slide 9: Cash flow
Cash flow EUR million H1/2018 H1/2017 2017 Profit for the period 107 70 102 Adjustments 89 90 192 Change in net working capital -95 -56 -23 Financial items, paid -9 -13 -21 Taxes paid -57 -37 -64 Net cash flows from operating activities 34 54 185 Capital expenditure on fixed assets -26 -15 -38 Busin
Slide 10: Financial position
Financial position June 30, 2018 December 31, 2017 Return on capital employed before taxes, %, 16.8 10.3 annualized Return on equity (ROE), %, annualized 16.2 7.3 Net gearing at the end of the period, % 13.7 1.8 Cash conversion, % 21 155 Equity-to-assets ratio at the end of the period, % 47.0 44.5 D
Slide 11: Execution of profitable growth strategy continued
Execution of profitable growth strategy continued Capital expenditure - Growth investments relate mainly to aggregates equipment, foundry capacity and rubber consumables Research and development - Activity building up Digital Strategy - Piloting comminution analytics at customer sites Acquisitions -
Slide 12: Market outlook
Market outlook Our market conditions are expected to develop as follows: • Growth in demand to increase for Minerals equipment • Growth in demand to remain stable for Minerals services • Growth in demand to level off for Flow Control Previous market outlook (updated April 25, 2018) • Growth in deman
Slide 13: www.metso.com
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