Metso Corporation · OMXHEX:METSO
Metso — FY2023 Earnings Presentation
21 slides from Metso's earnings presentation, Feb 16, 2024
Slide 1: Q4 and full-year 2023 results
Q4 and full-year 2023 results President and CEO Pekka Vauramo and CFO Eeva Sipilä February 16, 2024
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: Agenda
Agenda 01 Results in brief 02 Financials 03 Sustainability and outlook 04 Q&A February 16, 2024
Slide 4: Results in brief
01 Results in brief Pekka Vauramo President and CEO
Slide 5: Q4/23 highlights
Q4/23 highlights Sequentially stable Services orders market activity and sales grew Adj. EBITA margin Strongest cash improved to 16.8% flow quarter February 16, 2024
Slide 6: Q4/23: Strong margin in mixed market environment
Q4/23: Strong margin in mixed market environment Group orders, sales and adj. EBITA EUR million EUR million Q4/2023 Q4/2022 Change % 2,000 17.1 16.8 15.8 16.1 Orders received 1,232 1,437 -14 15.5 Sales 1,342 1,356 -1 1,485 1,500 1,437 1,356 1,396 1,334 1,344 1,319 1,342 Adjusted EBITA 225 210 7 1,23
Slide 7: Full-year 2023: Continued performance improvement
Full-year 2023: Continued performance improvement EUR million 2023 2022 Change % Annual profitability improvement Orders received 5,252 5,623 -7 16.5 Sales 5,390 4,970 8 14.4 12.9 11.5 Adjusted EBITA 887 715 24 % of sales 16.5 14.4 – Operating profit 805 490 64 % of sales 14.9 9.9 – 2020 * 2021 2022
Slide 8: Q4/23: Aggregates resilient despite softer markets
Q4/23: Aggregates resilient despite softer markets EUR million • Orders received EUR 297 million (EUR 364 million) 18.1 17.0 17.3 ◦ Market activity improved in late Q4 500 16.2 16.2 ◦ Equipment orders -28%, services 3% 400 387 379 386 364 363 330 • Sales EUR 289 million (EUR 387 million) 308 297 289
Slide 9: Q4/23: Minerals continued solid execution
Q4/23: Minerals continued solid execution EUR million • Orders EUR 935 million (EUR 1,073 million) 1,500 18.2 17.5 17.2 17.0 ◦ Equipment market similar to previous quarter 16.3 ◦ Services orders grew 4% 1,107 1,073 1,052 1,014 1,010 1,011 968 970 1,000 922 935 • Sales EUR 1,052 million (EUR 968 mill
Slide 10: Financials in details
02 Financials in details Eeva Sipilä CFO
Slide 11: Group Income Statement
Group Income Statement EUR million Q4/2023 Q4/2022 Q1-Q4/2023 Q1-Q4/2022 EUR Earnings per share 0.80 Sales 1,342 1,356 5,390 4,970 0.65 0.66 Adj. EBITA 225 210 887 715 0.60 Adj. EBITA, % 16.8 15.5 16.5 14.4 0.41 0.39 Operating profit* 200 183 805 490 0.40 0.35 0.36 Operating profit, % 14.9 13.5 14.9
Slide 12: Group Balance Sheet
Group Balance Sheet EUR million Dec 31, 2023 Dec 31, 2022 EUR million Indebtedness Total goodwill and intangible 1,886 1,972 1,000 80% assets 884 Total property, plant and 840 815 70% 472 407 equipment 750 690 684 60% 673 Right-of-use assets 114 115 617 50% Other non-current assets 271 262 500 470 4
Slide 13: Cash flow
Cash flow EUR million Q4/2023 Q4/2022 Q1-Q4/2023 Q1-Q4/2022 EUR million Cash flow from operations 700 Profit for the period 136 106 546 301 608 587 600 Adjustments: 550 500 Depreciation and amortization 41 40 158 156 400 Financial expenses, net 25 16 80 63 322 300 Income taxes 54 40 199 113 200 Othe
Slide 14: Net working capital
Net working capital EUR million EUR million 4,000 1,500 15 874 926 990 592 596 709 3,000 383 348 1,140 1,216 1,177 1,195 1,250 1,192 1,170 1,082 2,000 1,045 990 1,000 1,000 1,887 1,846 1,960 2,008 1,998 1,951 9 1,430 1,665 750 0 596 -1,000 -2,127 -2,157 500 -2,363 -2,487 -2,420 -2,391 -2,351 -2,249
Slide 15: Financial position
Financial position • Q4/2023 events: EUR million Dec 31, 2023 Dec 31, 2022 ◦ EUR 300 million Sustainability Linked Bond Liquid funds 638 601 ◦ EUR 50 million research, development, and innovation (RDI) loan from EIB drawn Net debt 884 684 • Average interest rate of loans and derivatives 4.3% • Ratin
Slide 16: Sustainability and outlook
03 Sustainability and outlook Pekka Vauramo President and CEO
Slide 17: Good progress in most sustainability KPIs in 2023
Good progress in most sustainability KPIs in 2023 Spend from suppliers Planet Positive Net zero Logistics CO2 with science-based emissions sales to grow faster CO2 emissions in own emissions targets than overall operations* by -20% sales 2030 by 2025 30% by 2025 End of 2023: End of 2023: End of 2023
Slide 18: Increase in dividend highlights improved performance
Increase in dividend highlights improved performance Dividend proposal of EUR 0.36 EUR 0.40 0.36 * • Proposed dividend 55% of EPS 0.30 0.30 • Two equally sized payments 0.20 0.24 0.20 • Total payout EUR 297.5 million 0.10 0.00 2020 2021 2022 2023 Dividend * Board's proposal to the AGM February 16, 2
Slide 19: Market Outlook
Market Outlook Metso expects the market activity to remain at the current level in Minerals and improve in Aggregates. In its previously published outlook, Metso expected the market activity to remain at the current level in both Minerals and Aggregates. According to the company's disclosure policy,
Slide 20: Q&A
04 Q&A
Slide 21: Partner for positive change
Partner for positive change metso.com