Metso Corporation · OMXHEX:METSO
Metso — Investor Day (September 2022)
20 slides from Metso's investor day presentation, Sep 15, 2022
Slide 1: Building an industry leader
Building an industry leader Pekka Vauramo President and CEO Capital Markets Day September 15, 2022
Slide 2: Enabling sustainable modern life
Enabling sustainable modern life MEGATRENDS VISION TOP PRIORITIES Urbanization To be customers’ number one choice for sustainable use of Financial performance Electrification Earth’s natural resources. Together we deliver service, Customer success Sustainability reliability, innovation and results –
Slide 3: Merger has been successfully executed
Merger has been successfully executed Synergies achieved faster than planned Combined offering delivering growth and value Strengthening performance culture Total shareholder return 72%* 3 September 15, 2022 *July 1, 2020 – September 13, 2022
Slide 4: Strong platform for growth and higher profitability
Strong platform for growth and higher profitability Product and aftermarket focus Sustainability as a strategic priority Inflation management and cost control Continuous portfolio development Strong financial position 4 September 15, 2022
Slide 5: Decentralized structure with clear accountabilities
Decentralized structure with clear accountabilities President and CEO Corporate functions Business areas Aggregates Minerals Services Consumables Metals Market Areas North & Central South Europe Middle East Central Asia Africa Greater Asia-Pacific Distributor America America & India China Management
Slide 6: Aggregates market driven by the US
Aggregates market driven by the US Crushed stone price and production Aggregates capex expectations US production - 12m rolling (Mt) Japan price (index 2020=100) US price (index 2020=100) India price (index 2020=100) Index Mt 120 1 650 MEUR 115 1 500 12 000 +4% 110 1 350 10 000 +28% 8 000 105 1 200
Slide 7: Market outlook for key commodities remains healthy
Market outlook for key commodities remains healthy COMMODITY SUPPLY AND DEMAND PRICE DEVELOPMENT Mined Copper Supply LTM US$/t 12 000 Mined Copper Demand Mt Latest 4% Forecast 10 000 07/2022 24 8 000 4% Previous COPPER 22 Forecast 6 000 20 05/2022 4 000 18 2 000 16 0 2021 2022 2023 2024 2025 2026 20
Slide 8: Demand forecast for battery metals remains robust
Demand forecast for battery metals remains robust COMMODITY SUPPLY AND DEMAND EV BY UNIT SALES (M) Refined supply including secondary Penetration rate fct 05/22 (%) 350 kt Penetration rate fct 07/22 (%) Refined consumption +11% 300 +10% 250 EV share in total car sales, % (lhs) mn EV vehicles sold (r
Slide 9: Strategy implementation via TOP Priorities
Performance culture Financial performance Progress: 70 % Progress: 60 % Strategy implementation via TOP Priorities Tier-1 company Sustainability Customer success Progress: 80 % Progress: 50 % 9 September 15, 2022
Slide 10: Meeting our financial targets
Meeting our financial targets H1/22: Baa2/ 12.7% BBB- Adjusted EBITA Maintaining margin of investment- >15% grade credit over the cycle rating 2021: On 68% track Dividend payout of Progress in sustainability at least in alignment with the 50% 1.5°C of earnings per share commitment 10 September 15, 2
Slide 11: Committed to driving customers success
Committed to driving customers success Responsiveness Long-term partnerships On-time delivery Digital channels Quality Optimized solutions Meeting expectations Helping to succeed 11 September 15, 2022
Slide 12: Targeting a net-zero footprint
Targeting a net-zero footprint CO2 emissions in own Logistics CO2 Spend from suppliers with operations emissions Science-Based emissions targets Net-zero -20% 30% by 2030* by 2025 * by 2025 -58% in 2021 -18% in 2021 10.1% in 2021 * Baseline 2019. 2021 figures as published in the Half-year 2022 repor
Slide 13: Helping our customers to solve their sustainability challenges
Helping our customers to solve their sustainability challenges Climate change Planet Positive offering Water Footprint Net zero by 2030 Circular economy Integrated Policies and in strategy regulations 13 September 15, 2022
Slide 14: Making an environmental impact with our Planet Positive offering
Making an environmental impact with our Planet Positive offering Customer benefits: • Energy efficiency • Carbon efficiency Over 100 Planet Positive Planet Positive is a • Optimized for using renewable energy products competitive advantage • Water efficiency • Less pollution • Reduced embedded carbo
Slide 15: Broad range of sustainability initiatives
Broad range of sustainability initiatives EQUIPMENT AFTERMARKET CAPABILITIES • Planet Positive products • Recycling of consumables • Industry-leading metallurgical expertise Examples: Concorde Cell, • Significant increase of product Geminex and digital, hydro, lifetime • Supply chain battery chemica
Slide 16: Digitalization drives growth and aftermarket captivity
Digitalization drives growth and aftermarket captivity Focusing on Enabling creating Digital and Growth of automation Higher equipment and technologies customer aftermarket and value business capabilities Customer segment specific offerings Intelligent Fleet Process & operations equipment management
Slide 17: A thriving culture creates success
A thriving culture creates success Uncompromised safety Inspiring High Leadership Attracting, business performance and developing agenda as one capabilities and retaining for growth talent Employee satisfaction measured frequently and is trending higher 17 September 15, 2022
Slide 18: Focus areas for acquired growth
Focus areas for acquired growth Products with Sustainable high aftermarket offering intensity Automation & Supply chain digitalization competitiveness 18 September 15, 2022
Slide 19: Building an industry leader
Building an industry leader Strong platform Leading position to grow and in technology and create value sustainability Business model Self-help reducing volatility improving profitability 19 September 15, 2022
Slide 20: Partner for positive change
Partner for positive change mogroup.com