Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — H1 2022 Earnings Presentation
22 slides from Metso's earnings presentation, Jul 22, 2022
Slide 1: Q2 and Half-Year review 2022
Q2 and Half-Year review 2022 President and CEO Pekka Vauramo and CFO Eeva Sipilä July 22, 2022
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: Agenda
Agenda 01 Results in brief 02 Financials 03 Strategy, sustainability and outlook 04 Q&A July 22, 2022 Source:
Slide 4: Results in brief
01 Results in brief Pekka Vauramo President and CEO
Slide 5: Q2/22 in short
Q2/22 in short Strong activity in the mining market Solid sales growth Profitability improved; Good progress affected by in sustainability currencies Wind-down of the business in Russia resulted in a EUR 150 million non-recurring charge July 22, 2022
Slide 6: Group key figures
Group key figures EUR million % EUR million Q2/2022 Q2/2021 Change % 2,000 15 Orders received 1,610 1,360 18 Sales 1,295 1,010 28 1,600 12 Adjusted EBITA 155 131 19 1,200 9 % of sales 12.0 12.9 – 800 6 Operating profit* -13 97 -113 % of sales -1.0 9.6 – 400 3 Earnings per share, continuing -0.02 0.0
Slide 7: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights • Orders received EUR 363 million (EUR 363 EUR million % million) 500 20 ◦ North America strongest market ◦ Equipment -6%, services +17% 400 15 • Sales EUR 368 million (EUR 320 million) 300 ◦ Growth supported by backlog 10 ◦ Services share 35% (31%) 200 5 • Ad
Slide 8: Minerals segment quarterly highlights
Minerals segment quarterly highlights • Orders EUR 1,176 million (EUR 789 million) EUR million % ◦ Strong market activity and order growth ◦ Equipment orders +80% 1,250 20 ◦ Services orders +29% 1,000 15 • Sales EUR 810 million (EUR 622 million) ◦ Equipment +63% 750 ◦ Services +14% 10 500 ◦ Services
Slide 9: Metals segment quarterly highlights
Metals segment quarterly highlights • Orders received EUR 71 million (EUR 208 EUR million % million) 250 24 ◦ No large orders booked during the quarter due to timing 200 16 • Sales EUR 117 million (EUR 68 million) 150 ◦ Supported by increased deliveries from backlog 100 8 ◦ Services share 12% (16%)
Slide 10: Russia business update
Russia business update • Wind-down continued in the second quarter • Deliveries totaled EUR 67 million in the second quarter • Provision of EUR 150 million expected to cover the remaining exposure • Group’s order backlog reduced by EUR 380 million at the end of June July 22, 2022
Slide 11: Financials in details
02 Financials in details Eeva Sipilä CFO
Slide 12: Income Statement
Income Statement EUR million Q2/2022 Q2/2021 Q1-Q2/2022 Q1-Q2/2021 2021 Sales 1,295 1,010 2,459 1,935 4,236 EUR EPS impacted by provision Adj. EBITA 155 131 312 245 547 0.20 Adj. EBITA, % 12.0 12.9 12.7 12.7 12.9 0.15 0.15 Operating profit* -13 97 127 188 425 0.11 0.11 0.11 0.10 0.10 0.09 0.09 Opera
Slide 13: Balance Sheet
Balance Sheet EUR million Jun 30, 2022 Jun 30, 2021 Dec 31, 2021 EUR million Indebtedness Intangible assets 2,007 2,041 2,002 1,000 80% 944 Total property, plant and equipment 394 372 373 70% Right-of-use assets 125 132 127 799 800 Other non-current assets 313 250 234 60% 675 686 Inventories 1,665 1
Slide 14: Cash Flow
Cash Flow EUR million Q2/2022 Q2/2021 Q1-Q2/2022 Q1-Q2/2021 2021 EUR million Cash flow from operations Profit for the period -24 86 64 145 342 200 172 Adjustments: 164 150 Depreciation and amortization 39 44 77 83 167 107 Financial expenses, net 11 11 31 18 39 100 74 Income taxes -5 23 26 43 92 50 O
Slide 15: Financial position
Financial position • Repayment of matured EUR 100 million EUR million Jun 30, 2022 Jun 30, 2021 Dec 31, 2021 private placements Liquid funds 451 469 473 • EUR 100 million loan drawn from the Nordic Investment Bank Net debt 617 686 470 • EUR 99 million dividend paid in May Gearing, % 28.5 33.5 20.9 •
Slide 16: Strategy, sustainability and outlook
03 Strategy, sustainability and outlook Pekka Vauramo President and CEO
Slide 17: Portfolio development
Portfolio development Review of the Metals businesses under way Market active for small M&A ◦ Tesab Engineering acquired in April Divestment of Metal Recycling completed July 22, 2022
Slide 18: Sustainability highlights in Q2/22
Sustainability highlights in Q2/22 Strong order flow of Planet Actions completed to Sustainability-Linked Positive technologies reduce footprint CO2 Finance Framework emissions published
Slide 19: New products
Planet Positive highlights First fully Planet Positive comminution circuit order (incl. HPGRs and Vertimills) Metrics for real-time 24/7 monitoring of screens and Lokotrack mobile crushers Tailings Management Solutions for tailings thickening and dewatering and tailings handling New products through
Slide 20: Market Outlook
Market Outlook Market activity is expected to remain at the current level with the minerals market remaining strong and aggregates market declining slightly. According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the
Slide 21: Q&A
Q&A Metso:Outotec
Slide 22: Partner for positive change
Partner for positive change mogroup.com