Valmet Corp · OMXHEX:VALMT
Valmet — Metso — Shareholder Meeting (March 2018)
23 slides from Valmet's shareholder meeting presentation, Mar 22, 2018
Slide 1: CEO's review
CEO's review Annual General Meeting of Metso Corporation March 22, 2018 Eeva Sipilä Interim CEO CFO
Slide 2: First 150 years of Metso's history
First 150 years of Metso's history New era of Metso in born 1999 Demerger 2013 profitable growth 1868 2018 Sunds Bruk Nordberg and Bergeaud & Jamesbury is founded Recycling portfolio opens in Sweden Manufacturing is Bruno in France in USA strengthened with Focus in minerals established in USA M&J In
Slide 3: Metso today
Metso today
Slide 4: Two strong segments
Two strong segments Minerals Flow Control Equipment for minerals processing, Valves and pumps and crushing and screening as well as related services related services Minerals Equipment 76% Services 35% Flow Control 65% 24% Sales split
Slide 5: We operate globally
We operate globally 50 80 12,000 countries servicecentres experts Sales by industry Sales by geography Mining industry 51% North America 20% Aggregates industry 26% South and Central America 20% Process industry 19% Europe 25% Recycling industry 4% Asia-Pacific 25% Africa and Middle-East 10%
Slide 6: Financial review
Financial review
Slide 7: Markets have recovered
Markets have recovered Price index Metals' and oil price development EUR million Orders and order backlog 220 3,000 +9% 200 2,500 180 2,000 160 1,500 140 1,000 120 100 500 80 0 2016 2017 2018 2016 2017 Iron ore Copper Gold Crude oil Equipment Services Order backlog
Slide 8: Sales turned to growth
Sales turned to growth EUR million 3,000 +5% 2,500 Services sales grew 4% year-on-year 2,000 Minerals sales increased 6% 1,500 to EUR 2,070 million 1,000 Flow Control sales increased 1% 500 to EUR 636 million 0 2016 2017 Equipment Services
Slide 9: Growth was supported by distribution channel expansion and a supplementary acquisition
Growth was supported by distribution channel expansion and a supplementary acquisition Distribution channel expansion Acquisition of WEARX • Several valve distributors in Brazil and India • Extends Metso's services offering in Australia • Several valve distributors in North America • Sales of EUR 23
Slide 10: Profitability still unsatisfactory
Profitability still unsatisfactory EUR million Adj. EBITA and EBIT % EUR Earnings per share 280 14.0 1.2 Additional 240 12.0 EUR 33.3 million 1 charge related to 200 10.0 0.8 mining projects in the 160 8.0 backlog 0.6 120 6.0 80 4.0 0.4 Tax-related items 0.2 affected 40 2.0 earnings per share 0 0 0
Slide 11: Solid financial position
Solid financial position EUR million 2016 2017 Cash assets 698 673 Free cash flow 339 158 Return on capital employed 10.4% 10.3% Equity-to-assets ratio 48.0% 44.5% Return on equity 9.0% 7.3% Net gearing -1.8% 1.8% Balance sheet total 3,236 3,287
Slide 12: Non-financial value creation
Non-financial value creation 99.8% of personnel were trained on Customer relationships Code of Conduct Product responsibility 120 internal and external audits Compliance LTIF was 2.6 Supply chain 84 % of the R&D projects have defined sustainability targets People Employee engagement survey takes pla
Slide 13: Board proposes a dividend of EUR 1.05 per share
Board proposes a dividend of of EUR 1.05 per share EUR Dividend 1.2 1.0 0.8 0.6 0.4 0.2 0 2013 2014 2015* 2016 2017** * Additional dividend not included ** Board proposal
Slide 14: Metso's strategic focus areas
Metso's strategic focus areas
Slide 15: New organization brings agility and speed
New organization brings agility and speed President and CEO Mining Aggregates Minerals Minerals Recycling Pumps Valves Equipment Equipment Services Consumables CFO Eeva Sipilä Victor Markku Mikko Sami Uffe John John Tapia Simula Keto Takaluoma Hansen Quinlivan Quinlivan Human resources Merja Kamppar
Slide 16: Strategic fundamentals of our profitable growth strategy
Strategic fundamentals of our profitable growth strategy Personnel and Customer centricity Innovations leadership Service leadership Operational excellence
Slide 17: We focus on innovations
We focus on innovations Metso Urban Lokotrack Metso MX Metso Life Cycle Services simplifies crushing process with less crusher increases operational Customer awarded Metso for safe and noise and dust. profitability significantly. succesful partnership.
Slide 18: Digitalization brings added value to our customers' processes
Digitalization brings added value to our customers' processes This is where we are now 1. Crusher 2. Smart crusher 3. Smart, connected crusher 4. Smart, connected product system 5. Ecosystem
Slide 19: Benefits of analytics to our customers
Benefits of analytics to our customers Shorter, safer and less frequent Predictive maintenance planned shutdowns Preventive maintenance Remote support Less unplanned maintenance Maintenance scheduling breaks Equipment performance monitoring More energy efficient Process optimization and productive p
Slide 20: New market places for our aggregates customers
New market places for our aggregates customers preowned.metso.com eCommerce solution for a more liquid preowned market Launched in October 2017 my.metso.com Modern B2B eCommerce for aggregates wear and spare parts Launched in November 2017 To be expanded to all of Metso's markets and other product c
Slide 21: Our view into 2018
Our view into 2018 Market outlook Remain stable for Minerals equipment and services Remain stable for Flow Control equipment and services Focus areas Growth and profitability improvement Operational excellence Research and development Digitalization
Slide 22: Metso has 150 years of history
Metso has 150 years of history New era of Metso in born 1999 Demerger 2013 profitable growth 1868 2018 Sunds Bruk Nordberg and Bergeaud & Jamesbury is founded Recycling portfolio opens in Sweden Manufacturing Bruno in France in USA strengthened with Focus in minerals established in USA M&J Industrie
Slide 23: www.metso.com
Dmetso Expect results www.metso.com Dmetso