Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — Q1 2021 Earnings Presentation
22 slides from Metso's earnings presentation, Apr 23, 2021
Slide 1: Q1/2021 interim report
April 23, 2021 Q1/2021 interim report Pekka Vauramo, President and CEO Eeva Sipilä, CFO
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: About this financial information
About this financial information • Under IFRS, the merger of Metso’s Minerals business and Outotec is treated as a reverse acquisition, where Metso Minerals is the accounting acquirer and Outotec the accounting acquiree. • Metso Outotec has prepared both illustrative and IFRS- based historical quart
Slide 4: Results in brief
Pekka Vauramo President and CEO Results in brief April 23, 2021
Slide 5: Q1 in short
Q1 in short • Market activity increased • Improved profitability in Aggregates and Minerals • Metals reorganization completed • EUR 83 million run rate of integration cost synergies achieved • Planet Positive is our new all-encompassing sustainability approach April 23, 2021
Slide 6: Group Q1 key figures, IFRS
Group Q1 key figures, IFRS (comparison period illustrative combined) • Orders received EUR 1,102 million (EUR 1,084 million) • Sales EUR 925 million (EUR 947 million) • Adjusted EBITA EUR 115 million, or 12.4% of sales (EUR 95 million or 10.0%) • EBIT EUR 91 million, or 9.8% of sales (EUR 68 million
Slide 7: Covid-19 impacts in Q1
Covid-19 impacts in Q1 • Restrictions on workforce mobility and limited access to customer sites have affected especially the services business • Some impact also on the decision-making and commissioning related to customers’ large investments • Our own operations have been running with additional h
Slide 8: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights EUR million % • Orders received EUR 356 million (EUR 290 million) o Organic growth +27% o Driven by equipment o Strongest markets Europe and North America • Sales EUR 265 million (EUR 244 million) o Organic growth +13% o Order growth gradually visible • Adjust
Slide 9: Minerals segment quarterly highlights
Minerals segment quarterly highlights EUR million % • Orders EUR 645 million (EUR 710 million) o Improved market activity, no large orders o Services affected by Covid-19 o Currency impact -6% • Sales EUR 566 million (EUR 596 million) o Organic growth +1% o Services share 68% (65%) o Some logistical
Slide 10: Metals segment quarterly highlights
Metals segment quarterly highlights EUR million % • Orders received EUR 101 million (EUR 84 million) o Improved market activity • Sales EUR 95 million (EUR 107 million) o Timing of deliveries from backlog • Adjusted EBITA EUR -1 million (EUR 7 million) o Low volume • Turnaround actions visible in co
Slide 11: Financials in detail
Eeva Sipilä CFO Financials in detail April 23, 2021
Slide 12: Income Statement (illustrative combined)
Income Statement (illustrative combined) EUR million Q1/2021 Q1/2020 1-12/2020 Sales 925 947 3,897 Gross profit 263 270 1,035 % of sales 28.4 28.5 26.6 SG&A expenses -170 -186 -748 Adjusted EBITA 115 95 448 % of sales 12.4 10.0 11.5 Adjustments -6 -15 -97 Operating profit 91 68 253 % of sales 9.8 7.
Slide 13: IFRS Income Statement
IFRS Income Statement EUR million Q1/2021 1-12/2020 Sales 925 3,319 Adj. EBITA 115 397 Adj. EBITA, % 12.4 11.9 Operating profit 91 239 Operating profit, % 9.8 7.2 Net financial expenses -7 -38 Profit before taxes 84 201 Income taxes -21 -52 Profit for the period, continuing operations 63 149 Profit
Slide 14: IFRS Balance Sheet
IFRS Balance Sheet EUR million March 31, 2021 December 31, 2020 Intangible assets 1,994 1,994 Total property, plant and equipment 361 356 Right-of-use assets 136 132 Other non-current assets 252 223 Inventories 1,113 1,038 Receivables (trade and other) 1,079 1,083 Liquid funds 516 537 Assets held fo
Slide 15: Analysis of Cash Flow
Analysis of Cash Flow EUR million Q1/2021 1-12/2020 Profit for the period 59 138 Adjustments: 76 256 Depreciation and amortization 39 160 Financial expenses, net 7 38 Income taxes 20 58 Other items 10 0 Change in net working capital 30 193 Net cash flow from operating activities before 165 587 finan
Slide 16: Net working capital on March 31, 2021
Net working capital on March 31, 2021 EUR million April 23, 2021
Slide 17: Financial position
Financial position • Committed and undrawn EUR million March 31, 2021 Dec 31, 2020 revolving credit facilities totaled EUR 790 million at the end of Liquid funds 516 537 March Net debt 675 799 • EUR 100 million term loan, with Gearing, % 31.7 39.2 maturity in 2022, was repaid using Equity-to-assets
Slide 18: Integration, strategy and outlook
Pekka Vauramo President and CEO Integration, strategy and outlook April 23, 2021
Slide 19: Integration and synergies proceeding according to plan
Integration and synergies proceeding according to plan • In cost synergies, a run rate of EUR 83 million was reached • 75% of realized synergies come from the restructuring of the organization and the rest from facilities, IT, and procurement • Realized revenue synergies as sales totaled EUR 11 mill
Slide 20: Planet Positive – our 1.5°C journey
Planet Positive – our 1.5°C journey • We are committed to limiting global warming to 1.5°C with Science Based Targets • Our ecological handprint is significantly bigger than our footprint • Planet Positive portfolio focuses on the most impactful technologies (>100) in our current offering • Sustaina
Slide 21: Market outlook
Market outlook Metso Outotec expects the market activity to improve, subject to the development of the Covid-19 pandemic. According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the following six-month period using th
Slide 22: mogroup.com
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