Metso Corporation · OMXHEX:METSO
Metso — Investor Day (June 2017)
16 slides from Metso's investor day presentation, Jun 1, 2017
Slide 1: Three horizons of profitable growth
Three horizons of profitable growth Perttu Louhiluoto President, Minerals Services business area Metso Capital Markets Day June 1, 2017 © Metso
Slide 2: We are the undisputed leader; market is on our side; customer at the center
We are the Market is on Customer at undisputed leader our side the center Broad global presence, Customer push for Strong customer- large installed base, productivity centricity supporting unique offering and deep improvements both equipment and industry knowledge favors us service businesses 2 © Me
Slide 3: Metso is the leading full-scope supplier of services for minerals processing
Metso is the leading full-scope supplier of services for minerals processing Sales* Orders received* ~2,000 EUR 1,262 million EUR 1,327 million Field service technicians We ensure availability and quality and optimize 40 the performance of Distribution and our customers’ ~48% ~47% warehouse location
Slide 4: We serve mining and aggregates customer industries globally
We serve mining and aggregates customer industries globally Sales* by segment Sales* by commodity Sales* by region 16% 10% 23% 26% 30% 18% 17% 77% 23% 19% 18% 23% Gold 16% South America 30% Mining 77% Others 17% Asia-Pacific 23% Aggregates 23% Iron ore 18% Europe 19% Aggregates 23% North America 18%
Slide 5: We maintained our position and ability to grow through the downturn
We maintained our position and ability to grow through the downturn We have been resilient during the downturn... ...through operational adjustments EUR million Metso Minerals Service sales and gross profit (indexed) • Cost cutting without sacrificing 2,500 125 customer presence • Pricing management
Slide 6: We cater to all customer needs
We cater to all customer needs Customer operations in mining comminution and beneficiation and in aggregate crushing and screening Extensive sales and service network with continuous presence End-to-end process expertise Solutions Systems/Product combination I Performance optimization I Risk sharing
Slide 7: Mining: Customers focus on productivity, availability and throughput
Mining: Customers focus on productivity, availability and throughput Commodities Metals Productivity super cycle downturn mission > 2011 2011 - 2016 2017 > • Key buying factor (KBF) on • KBF is preserving cash > willingness • Customers push for productivity securing supply to try new, unproven suppl
Slide 8: We have the right portfolio to capture this growth
We have the right portfolio to capture this growth Expert services to optimize Production essentials to ensure availability and quality of operations performance of operations Refurbishments and Wear parts Spare parts Field service and repairs Life cycle services upgrades ~15% of ~35% of sales ~25%
Slide 9: Maintenance deficit is likely to drive demand for many years
Maintenance deficit is likely to drive demand for many years 1 Maintenance deficit and restocking • Mining capex downturn continues • • Maintenance Increasing pressure deficit willonnot mining opex; need be covered for in one services budget thatbut cycle optimize performance will continue - assumin
Slide 10: Benefiting from economic performance as key buying factor when value is tangible
Benefiting from economic performance as key buying factor when value is tangible 2 Economic performance as KBF • Mining capex downturn continues • • Availability Increasingand pressure on mining productivity of keyopex; need fordrives equipment services that economic optimize performance performance
Slide 11: Mining industry has significant improvement potential from process optimization
Mining industry has significant improvement potential from (mine-to-mill) process optimization 3 Process optimization • Mining majors estimate huge cost reduction and productivity improvement potential through process optimization and mine-to-mill optimization • Digitalization is a key enabler • Par
Slide 12: Aggregates: Business drivers for services partially different from mining
Aggregates: Business drivers for services partially different from mining Regional market cycles, correlating with local Markets construction and infrastructure market development Aggregates production processes are shorter than in Operation/Processes mining, require less equipment, and are easier t
Slide 13: We combine direct and distribution models to ensure sufficient local presence
We combine direct and distribution models to ensure sufficient local presence USA India Direct sales Distribution 13 © Metso Metso Capital Markets Day 2017 | Perttu Louhiluoto | President | Minerals Services business area
Slide 14: Growing Life Cycle Services (LCS) market for Aggregates in India
Growing Life Cycle Services (LCS) market for Aggregates in India Changing the mindset for profitable, value- adding business models • Mining capex downturn continues • Increasing pressure on mining opex; need for • We are the only player in the market providing LCS services that optimize performance
Slide 15: We are the undisputed leader; market is on our side; customer at the center
We are the Market is on Customer at undisputed leader our side the center Broad global presence, Customer push for Strong customer- large installed base, productivity centricity supporting unique offering and deep improvements both equipment and industry knowledge favors us service businesses 15 © M
Slide 16: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup