Slide 1: Metso Q2/2013 interim review
Matti Kähkönen, President and CEO Harri Nikunen,CFO July 25, 2013 © 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: Presentation contents
Presentation contents 1. Quarterly highlights 2. Strategic priorities 3. Financial performance 4. Outlook and guidance 3 © Metso
Slide 4: Q2/2013 Highlights
Q2/2013 Highlights Matti Kähkönen President and CEO © Metso
Slide 5: Q2 highlights
Q2 highlights Good results in a challenging market environment • Order intake was EUR 1,883 million (EUR 1,735 million) • Net sales totaled EUR 1,756 million (EUR 1,897 million); book-to-bill was 1.07 • Services business was solid; slow-down seen in capex- related services • EBITA before non-recurri
Slide 6: Order intake
Order intake EUR million 7,961 3,500 8,000 6,865 3,000 2,883 7,000 5,944 6,000 2,500 5,000 1,847 1,918 1,920 1,883 4,358 2,000 1,735 1,671 1,699 1,511 1,584 4,000 3,467 1,365 1,366 1,410 1,498 1,500 1,313 3,000 942 1,020 1,031 1,000 2,000 500 1,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 7: Net sales
Net sales EUR million 2,500 8,000 7,504 2,074 2,098 7,000 6,646 2,000 1,897 1,755 1,754 1,756 6,000 5,552 1,687 1,567 1,561 1,590 5,016 1,444 5,000 1,500 1,353 1,370 1,325 1,220 1,247 1,196 1,170 4,000 3,346 1,000 3,000 2,000 500 1,000 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 FY FY
Slide 8: EBITA development
EBITA* development EUR million % % 250 14 700 14 11.2 12 600 12 200 10.4 9.7 9.7 9.8 9.1 9.4 9.4 9.5 9.2 8.9 8.9 10 500 8.8 10 8.6 8.3 8.0 8.1 8.0 8.2 150 7.5 7.5 6.8 8 400 8 6.5 688 6 300 628 6 100 202 197 178 171 491 150 163 134 140 141 131 142 4 200 399 4 125 128 124 50 92 274 85 88 88 2 100 2 0
Slide 9: Services business development
Services business development Strategic priority #1 Orders by type Q2/2013 Services orders by segment EUR million 2,000 1,693 1,679 1,600 Services business 44% 1,200 Product and project 812 806 56% business 800 400 0 Q2 2012 Q2 2013 Q1-Q2/2012 Q1-Q2/2013 Mining and Construction Automation Pulp, Pape
Slide 10: Emerging markets
Emerging markets Strategic priority #2 Order intake in emerging markets Order intake in top 10 growth EUR million countries (EUR million) 5,000 Country Q1-Q2/2013 Q1-Q2/2012 Change % 4,000 Brazil 572 289 98 3,000 China 322 326 -1 2,000 Russia 137 129 6 Chile 121 113 7 1,000 Mexico 97 62 57 0 Q1 Q3 Q
Slide 11: Mining business
Mining business Strategic priority #3 Mining order intake Q2/2013 mining orders EUR million by market area 1,200 1,000 23% 800 600 45% 400 200 21% 0 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2 11% 2009 2009 2010 2010 2011 2011 2012 2012 2013 Mining, services Mining, capital Exceptionally large orders EMEA North Amer
Slide 12: Financial performance
Financial performance Harri Nikunen, CFO
Slide 13: Group key figures
Group key figures Q1-Q2 Q1-Q2 EUR million Q2/2013 Q2/2012 Change % /2013 /2012 Change % 2012 Orders received 1,883 1,735 9 3,467 3,655 -5 6,865 Services orders received 806 812 -1 1,679 1,693 -1 3,264 Net sales 1,756 1,897 -7 3,346 3,652 -8 7,504 Services net sales 780 795 -2 1,507 1,516 -1 3,174 %
Slide 14: Mining and Construction key figures
Mining and Construction key figures Q1-Q2 Q1-Q2 EUR million Q2/2013 Q2/2012 Change % /2013 /2012 Change % 2012 Orders received 743 891 -17 1,529 1,855 -18 3,436 Services orders received 412 429 -4 883 906 -3 1,771 Net sales 800 899 -11 1,544 1,686 -8 3,492 Services net sales 410 428 -4 793 816 -3 1,
Slide 15: Mining and Construction
Mining and Construction Rolling 12-month net sales EUR million % 4,000 16 3,500 14 3,000 12 2,500 10 2,000 8 1,500 6 1,000 4 500 2 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 20
Slide 16: Automation key figures
Automation key figures Q1-Q2 Q1-Q2 EUR million Q2/2013 Q2/2012 Change % /2013 /2012 Change % 2012 Orders received 239 225 6 493 449 10 845 Services orders received 110 97 13 228 201 13 382 Net sales 207 232 -11 391 414 -6 859 Services net sales 97 97 0 180 180 0 380 % of net sales 46 42 46 43 44 EBI
Slide 17: Automation
Automation Rolling 12-month net sales EUR million % 1,000 18 900 16 800 14 700 12 600 10 500 8 400 6 300 4 200 100 2 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Servic
Slide 18: Pulp, Paper and Power key figures
Pulp, Paper and Power key figures Q1-Q2 Q1-Q2 EUR million Q2/2013 Q2/2012 Change % /2013 /2012 Change % 2012 Orders received 861 586 47 1,372 1,263 9 2,444 Services orders received 284 286 -1 568 586 -3 1,111 Net sales 714 733 -3 1,345 1,454 -7 3,014 Services net sales 274 271 1 534 521 2 1,102 % of
Slide 19: Pulp, Paper and Power
Pulp, Paper and Power Rolling 12-month net sales EUR million % 3,500 9 8 3,000 7 2,500 6 2,000 5 1,500 4 3 1,000 2 500 1 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2005 2006 2006 2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012 2013 Se
Slide 20: Net debt and net working capital
Net debt and net working capital Net debt and gearing Net working capital EUR million % EUR million % 1,200 80 800 12 75.7 10.5 70 700 1,000 10 60 600 800 8 50 500 6.0 6.0 6.1 5.9 33.4 32.5 400 6 600 40 1,099 4.8 672 4.5 27.4 4.2 30 300 400 22.6 4 15.0 452 439 20 200 429 583 12.2 14.2 555 375 540 47
Slide 21: Outlook and guidance
Outlook and guidance Matti Kähkönen President and CEO
Slide 22: Market outlook
Market outlook Uncertainties continue to impact our customer industries Mining Construction Automation 32% of net sales 11% of net sales 12% of net sales 55% service intensity 40% service intensity 45% service intensity Positive for capital and services Positive in emerging markets; flat Positive fo
Slide 23: Order backlog
Order backlog * EUR million EUR million 6,000 6,000 4,960 5,000 5,000 4,185 4,141 4,000 3,783 4,000 Deliveries Deliveries after 2012 after 2013 3,000 3,000 2,000 2,000 Deliveries in Deliveries in 2012 2013 1,000 1,000 Services orders: 37% Services orders: 38% 0 0 2010 2011 2012 Q2 Order backlog June
Slide 24: Updated guidance for 2013
Updated guidance for 2013 We have changed our guidance as follows: • Our net sales and EBITA before non-recurring items in 2013 will be somewhat lower compared to 2012 Previous guidance from April: • Our EBITA before non-recurring items will be at around 2012 levels and our net sales will be at 2012
Slide 25: Demerger update
Demerger update • The Board signed a demerger plan in late May • EGM will make the final decision in early October • The new parent company of the Pulp, Paper and Power business will be named Valmet • Pasi Laine, currently President of Pulp, Paper and Power, was appointed Valmet’s President and CEO
Slide 26: www.metso.com
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