Slide 1: Q3 Interim Review 2017
January 1 – September 30, 2017 Q3 Interim Review 2017
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: Q3/2017 in brief
Q3/2017 in brief Healthy market activity and strong order growth Sales increased, profitability was unsatisfactory Extraordinary EUR 33.3 million charges related to mining projects in the backlog New operating model to support profitable growth strategy was announced 3 © Metso Q3/2017 Interim Financ
Slide 4: Group quarterly financials
Group quarterly financials Orders, sales and profitability 900 18 Orders increased 30% to EUR 817 million 800 16 Sales grew 5% to EUR 673 million 700 14 Adjusted EBITA was EUR 43.0 million or 6.4%, 600 12 including EUR 33.3 million charges 500 10 Adjusted EBITA of the running business was 400 8 EUR
Slide 5: Minerals quarterly financials
Minerals quarterly financials Orders, sales and profitability 700 14 Orders increased 31% - Strong mining equipment with one large order 600 12 - Double-digit growth also in aggregates equipment - Services up 15% 500 10 - Book-to-bill was 1.25 Sales grew 9% 400 8 - Equipment up 11% - Services up 7%
Slide 6: Flow Control quarterly financials
Flow Control quarterly financials Orders, sales and profitability 200 20 Orders increased 26% - Strong double-digit growth for valves and pumps - Services up 13% 160 16 - Book-to-bill was 1.1 Sales declined 4% 120 12 - Good day-to-day and services business - Lower valve project deliveries 80 8 Solid
Slide 7: Income statement
Income statement Q1-Q3/ Q1-Q3/ Last EUR million Q3/2017 Q3/2016 Change % 2017 2016 Change % 12 months Orders received 817 628 30% 2,298 2,052 12% 2,971 Orders received, 486 422 15% 1,462 1,299 13% 1,903 services business Sales 673 638 5% 1,996 1,910 5% 2,672 Sales, services business 440 413 7% 1,308
Slide 8: Balance sheet
Balance sheet Sept 30, Sept 30, % of Dec 31, EUR million 2017 % of total 2016 total 2016 % of total Intangible assets 520 16.2% 537 17.2% 538 16.6% Tangible assets 285 8.9% 310 9.9% 315 9.7% Financial and other assets 141 4.4% 156 5.0% 157 4.9% Inventories 736 22.9% 709 22.7% 709 21.9% Receivables 5
Slide 9: Cash flow
Cash flow Q1-Q3/ Q1-Q3/ Last 12 EUR million Q3/2017 Q3/2016 2017 2016 months Profit 20 36 90 105 115 Adjustments 48 34 138 123 185 Change in net working capital 11 33 -45 37 10 Financial items, paid -1 -2 -14 -14 -25 Taxes paid -12 -10 -49 -13 -57 Net cash provided by operating activities 66 91 120
Slide 10: Financial position
Financial position Sept 30, 2017 Dec 31, 2016 Return on equity (ROE), annualized, % 8.6 9.0 Gearing at the end of the period, % 3.8 -1.8 Cash conversion, % 112 261 Equity-to-assets ratio at the end of the period, % 45.3 48.0 Debt to capital, % 38.9 35.6 Net debt / EBITDA 0.2 -0.1 Interest cover (EBI
Slide 11: Market outlook
Market outlook Remain stable for Minerals equipment and services Remain stable for Flow Control equipment and services 11 © Metso Q3/2017 Interim Financial Review
Slide 12: New operating model
New operating model Targeting profitable growth and enhanced accountability Lean, agile and customer-focused Our strategic fundamentals remain unchanged 12 © Metso Q3/2017 Interim Financial Review
Slide 13: Seven dedicated business areas with clear accountabilities
Seven dedicated business areas with clear accountabilities President and CEO Nico Delvaux Businesses are built around similar Mining Aggregates Minerals Minerals Recycling Pumps Valves customer, Equipment Equipment Services Consu- competitive and mables business dynamics. Victor Markku Mikko Sami Uf
Slide 14: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup