Slide 1: Q3/2018 results
Q3/2018 results Eeva Sipilä Interim President & CEO and CFO October 26, 2018 © Metso
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: Third quarter in brief
Third quarter in brief Strong orders in both segments Healthy backlog supported sales growth Improved profitability driven by volume but somewhat diluted by mix Step change in year-to-date 2018 performance 3 © Metso
Slide 4: Group third-quarter financials
Group third-quarter financials Orders, sales and profitability Orders received up 8% (+16% in constant currencies) to EUR 883 million 900 18 800 16 Sales grew 18% (+25% in constant currencies) 700 14 to EUR 786 million 600 12 Adjusted EBITA EUR 96 million or 12.2% of sales (43 500 10 million or 6.4%
Slide 5: Minerals quarterly highlights
Minerals quarterly highlights Orders received up 9% (+17% in constant Orders, sales and profitability currencies) to EUR 702 million 700 14 - Growth driven by both equipment and services - Mining equipment orders increased sequentially 600 12 - Aggregates supported by the acquisition of P.J. Jonsson
Slide 6: Flow Control quarterly highlights
Flow Control quarterly highlights Orders received up 6% (+12% in constant Orders, sales and profitability currencies) to EUR 181 million 200 20 - Solid day-to-day activity - Project orders lower, as expected 160 16 Sales grew 15% (+21% in constant currencies) to EUR 178 million - Supported by health
Slide 7: Income statement
Income statement EUR million Q3/2018 Q3/2017 Change % Q1-Q3/2018 Q1-Q3/2017 Change % 2017 Orders received 883 817 8 2,595 2,298 13 2,982 Services orders received 461 443 4 1,415 1,324 7 1,717 Sales 786 667 18 2,276 1,989 14 2,699 Services sales 436 397 10 1,300 1,183 10 1,595 Adjusted EBITA *) 96 43
Slide 8: Balance sheet
Balance sheet EUR million Sep 30, 2018 % of total Dec 31, 2017 % of total Intangible assets 555 18% 545 17% Tangible assets 280 9% 287 9% Other non-current assets 137 4% 130 4% Inventories 906 29% 750 23% Receivables (trade and other) 812 26% 748 23% Current financial assets 36 1% 154 5% Cash and ca
Slide 9: Cash flow
Cash flow EUR million Q1-Q3/2018 Q1-Q3/2017 2017 Profit for the period 166 90 102 Adjustments 130 138 192 Change in net working capital -106 -45 -23 Financial items, paid -12 -14 -21 Taxes paid -71 -49 -64 Net cash flows from operating activities 108 120 185 Capital expenditure on fixed assets -39 -
Slide 10: Financial position
Financial position Q1-Q3/2018 2017 Return on capital employed before taxes (ROCE), 17.1 10.3 %, annualized Return on equity (ROE), %, annualized 16.5 7.3 Net gearing at the end of the period, % 10.3 1.8 Cash conversion, % 53 155 Equity-to-assets ratio at the end of the period, % 47.8 44.5 Debt to ca
Slide 11: Execution of profitable growth strategy continued
Execution of profitable growth strategy continued Capital expenditure - Growth investments relate mainly to aggregates equipment, foundry capacity and rubber consumables - Investment decision to wear castings manufacturing capacity in India Research and development - Ramping up as planned Digital St
Slide 12: Market outlook
Market outlook Our market conditions are expected to develop as follows: • Growth in demand to increase for Minerals equipment • Growth in demand to remain stable for Minerals services • Growth in demand to remain stable (to level off) for Flow Control Previous market outlook, published July 26, 201
Slide 13: www.metso.com
www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup