Metso Corporation · OMXHEX:METSO
Metso — Investor Day (2015)
23 slides from Metso's investor day presentation, 2015
Slide 1: Strong position to grow
Strong position to grow Perttu Louhiluoto President, Services Business Area © Metso Capital Markets Day 2015
Slide 2: We are in a strong position to grow
We are in a strong position to grow Tough market We continue to Leading player in services with grow profitably for minerals processing opportunities and shape the to win market The leading technology and services provider for end-to-end minerals processing 2 © Metso Services by Perttu Louhiluoto Ca
Slide 3: Metso's Services Business Area today
Metso’s Services Business Area today Metso is the leading, full-scope supplier of services for minerals processing in the mining and aggregates industries Day in, day out, we Net sales*: Orders received*: Personnel: provide spares, wears 1,427 MEUR 1,453 MEUR ~6,300 and field service to ensure avail
Slide 4: We have grown and improved our profitability since 2009
We have grown and improved our profitability since 2009 Rolling 12 months, Net sales EUR million Indexed rolling 12 months GP-% 1 500 120 Strong growth with 100 profit improvement 1 200 80 • Metso’s strategic focus 900 on services 60 600 • Growth investments 40 300 20 • Offering development 0 0 • Op
Slide 5: We are the leading services player in the minerals processing field
We are the leading services player in the minerals processing field Net sales of peers’ minerals services, past 12 months1 Net sales, EUR million (EUR million FX = June 2015) 1 600 Metso's minerals processing services 1 400 1 200 480 million EUR (~+52%) FLSmidth Customer Services 1 000 800 Weir Mine
Slide 6: Our playing field is broad and well-balanced
Our playing field is broad and well-balanced Net sales* Net sales* Net sales* by industry by region by commodity 9% 10% 23% 24% 22% 22% 22% 19% 77% 26% 16% 30% Europe 24% Iron ore 22% Mining 77% North America 19% Copper 30% Aggregates 23% South America 26% Gold 16% Asia-Pacific 22% Aggregates 22% Af
Slide 7: We have a strong global market presence
We have a strong global market presence Industry’s most extensive network close to customers serving large installed base and beyond Metso Service Center Planned Service Center Kiruna, Sweden Gällivare, Sweden Labrador City NL, Canada Kevitsa, Finland Luleå, Sweden Tampere, Finland Grangesberg, Swed
Slide 8: We have a full-scope services offering
We have a full-scope services offering From production essentials to performance services Refurbishments and Life cycle services Wear parts Spare parts Field service and repairs upgrades and other 36% of net sales 23% of net sales 11% of net sales 15% of net sales 15% of net sales Image of field ser
Slide 9: The breadth and depth of our offering is unique
The breadth and depth of our offering is unique Wear parts Spare parts Field service and Refurbishments Life-cycle services repairs and upgrades and other Image of field service guys Production essentials to ensure availability Expert services to optimize and quality of operations performance of ope
Slide 10: There is no job too big or too tough
There is no job too big or too tough We work out solutions, for and with our customers Customer Challenge Solution Results Codelco Replace pinions and gears A field service team of 30 Chuquicamata for 21 ball and 12 rod mills as A 64% reduction in rod mill experts working at customer division’s mine
Slide 11: Key takeaway #1: We have grown profitably and established a strong, leading position
Key takeaway #1: We have grown profitably and established a strong, leading position Leading player in services for minerals processing • Track-record of strong growth with profit improvement • Leading services player in the minerals processing field • Broad portfolio and geographical coverage • Ext
Slide 12: Market development in mining has been challenging
Market development in mining has been challenging Commodity prices declining Miners’ profits under pressure Mining volumes still high Main commodity prices1 Mining customer2 EBITDA development Run of mine, key driver for comminution opex3 Indexed commodity prices (Jan 2013=100) EUR million – aggrega
Slide 13: The market creates pressure, but also offers opportunities to win
The market creates pressure, but also offers opportunities to win • Low mining capex regime continues Energy • High mining volumes • Lower sales from capex- consumption continue (run-of-mine) Mill throughput tied services decreased increased from 2,600 tph to 25% 4,500 tph • Holistic drive to lower
Slide 14: Key takeaway #2: We are well positioned to win the opportunities
Key takeaway #2: We are well positioned to win the opportunities – even in a tough market Tough market with opportunities to win • Mining capex downturn continues • Increasing pressure on mining opex; need for services that optimize performance • Mining volumes still at a high level • Full-scope off
Slide 15: Metso's financial targets
Our targets support the achievement of Metso’s financial targets • Maintain strong profitability • Grow services faster than the market 15 © Metso Services by Perttu Louhiluoto Capital Markets Day 2015
Slide 16: We have a clear plan to meet our targets
1 2 3 4 We have a clear plan to meet our targets 1 Operational improvements • Low mining capex regime continues • High mining volumes • Lower sales from capex- continue (run-of-mine) tied services 2 Customer responsiveness and closeness • Holistic drive to lower • Customers focusing on costs favors
Slide 17: We will maintain strong profitability and continue operational improvements
1 We will maintain strong profitability and continue operational improvements 1 500 Improvement areas Rolling 12 month net sales* 1 400 • Slowdown of growth (EUR million) • Flat and agile puts pressure on our operating model 1 300 fixed cost management • Volume/price trade- off 1 200 2013Q4 2014Q4 2
Slide 18: We continue to invest in customer responsiveness and closeness
2 We continue to invest in customer responsiveness and closeness • We improve our responsiveness to customer needs to grow the business • We improve our customer-centric management • Installed base tools and CRM • We expand our service center network and service capabilities close to customers • Mes
Slide 19: We capture growth opportunities created by the demand for production essentials
3 We capture growth opportunities created by the demand for production essentials • We meet the continued demand for production essentials to ensure the availability and quality of our customers’ operations • Metso is the unique OEM provider capable of supplying a full comminution offering on wear s
Slide 20: We continue to grow in performance services
4 We continue to grow in performance services Achievements Development actions Life Cycle Services (LCS) • Market leader in crushing and grinding ▪ Expand LCS customer footprint geographically performance KPI-based contracts ▪ Introduce new financing models • Scope: maintenance services, process ▪ N
Slide 21: Key takeaway #3: We grow faster than the market and maintain strong profitability
Key takeaway #3: We grow faster than the market and maintain strong profitability We continue to grow profitably and shape the market • Operational improvements • Customer responsiveness and closeness • Growth in production essentials • Roll out newly launched products and introduce new innovations
Slide 22: We are in a strong position to grow
We are in a strong position to grow Tough market We continue to Leading player in services with grow profitably for minerals processing opportunities and shape the to win market The leading technology and services provider for end-to-end minerals processing 22 © Metso Services by Perttu Louhiluoto C
Slide 23: Metso Capital Markets Day 2015
© Metso Capital Markets Day 2015