Metso Corporation · OMXHEX:METSO
Metso — Q3 2023 Earnings Presentation
20 slides from Metso's earnings presentation, Oct 27, 2023
Slide 1: Interim Report Q3/2023
Interim Report Q3/2023 President and CEO Pekka Vauramo and CFO Eeva Sipilä October 27, 2023
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 October 27, 2023
Slide 4: Results in brief
01 Results in brief Pekka Vauramo President and CEO
Slide 5: Q3/23 highlights
Q3/23 highlights Stable activity in mining; soft in Flat sales aggregates development Group's profitability Adj. EBITA margin target upgraded improved to 16.1% October 27, 2023
Slide 6: Group key figures in Q3/23
Group key figures in Q3/23 Orders, sales and adj. EBITA EUR million % EUR million Q3/2023 Q3/2022 Change % 2,000 18 Orders received 1,191 1,318 -10 16 Sales 1,319 1,305 1 14 1,500 12 Adjusted EBITA 213 202 5 10 % of sales 16.1 15.5 – 1,000 8 Operating profit 189 187 1 6 500 % of sales 14.3 14.4 – 4
Slide 7: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights EUR million % • Orders received EUR 269 million (EUR 351 million) 500 20 ◦ Soft market activity in North America and Europe 400 ◦ India and China improved 15 ◦ Equipment orders -30%, services -9% 300 10 • Sales EUR 308 million (EUR 362 million) 200 ◦ Lower bac
Slide 8: Minerals segment quarterly highlights
Minerals segment quarterly highlights EUR million % • Orders EUR 922 million (EUR 967 million) 1,250 20 ◦ Stable market with continued strong proposal activity 1,000 ◦ Equipment orders impacted by slow decision- 15 making 750 ◦ Services activity supported by continued strive for 10 productivity impr
Slide 9: Financials in details
02 Financials in details Eeva Sipilä CFO
Slide 10: Group Income Statement
Group Income Statement EUR million Q3/2023 Q3/2022 Q1-Q3/2023 Q1-Q3/2022 2022 EUR Earnings per share 0.20 Sales 1,319 1,305 4,049 3,614 4,970 0.18 0.18 0.17 0.16 0.16 Adj. EBITA 213 202 662 505 715 0.15 0.15 0.15 0.15 0.14 0.13 Adj. EBITA, % 16.1 15.5 16.4 14.0 14.4 0.10 Operating profit* 189 187 60
Slide 11: Group Balance Sheet
Group Balance Sheet EUR million Sep 30, 2023 Dec 31, 2022 EUR million Indebtedness Total goodwill and intangible 1,882 1,972 1,000 80% assets Total property, plant and 840 815 70% 458 407 equipment 750 690 684 60% 673 Right-of-use assets 115 115 617 563 50% Other non-current assets 294 262 500 470 4
Slide 12: Cash flow
Cash flow EUR million Q3/2023 Q3/2022 Q1-Q3/2023 Q1-Q3/2022 2022 EUR million Cash flow from operations 250 Profit for the period 124 131 410 195 301 212 Adjustments: 200 161 Depreciation and amortization 39 39 117 116 156 150 Financial expenses, net 23 16 55 47 63 110 100 Income taxes 47 47 145 73 1
Slide 13: Working capital
Working capital EUR million EUR million 4,000 15 14 926 596 3,000 1,000 1,177 926 1,170 2,000 10 750 9 1,000 1,846 1,998 596 0 500 5 -1,000 -2,420 -2,249 250 -2,000 0 0 -3,000 Dec 31, 2022 Sep 30, 2023 Dec 31, 2022 Sep 30, 2023 Net working capital, period end Inventories Receivables Payables NWC, %
Slide 14: Financial position
Financial position • Ratings: EUR million Sep 30, 2023 Sep 30, 2022 Dec 31, 2022 ◦ S&P Global: 'BBB' with stable outlook (April 24, 2023) Liquid funds 359 467 601 ◦ Moody’s: ‘Baa2’ long-term rating with stable outlook (April 2021; confirmed on May 2, 2023) Net debt 815 690 684 • Average interest rat
Slide 15: Strategy, sustainability and outlook
03 Strategy, sustainability and outlook Pekka Vauramo President and CEO
Slide 16: Group profitability target upgraded
Group profitability target upgraded • New adjusted EBITA target: exceeding 17% over the cycle • Upgrade is based on - focused segments - services growth - further performance improvements • Other financial targets unchanged October 27, 2023
Slide 17: ESG highlights in Q3/2023
ESG highlights in Q3/2023 Planet Positive sales grew 34% y-o-y to EUR 1.5 EUR million billion • One large EUR 85 million copper project order • Good pipeline of small and medium-sized orders Supplier engagement program progressed well • 24% of supplier spend is with suppliers that have committed to
Slide 18: Market Outlook
Market Outlook Metso expects the market activity to remain at the current level in both Minerals and Aggregates. In its previously published outlook, Metso expected the overall market activity to remain at the current level in Minerals and to slightly decline in Aggregates. According to the company'
Slide 19: Q&A
04 Q&A
Slide 20: Partner for positive change
Partner for positive change metso.com