Metso Corporation · OMXHEX:METSO

Metso — Outotec — H1 2018 Earnings Presentation

17 slides from Metso's earnings presentation, July 2018

  1. Slide 1: Strong growth in order intake and sales, profitability improving

    Strong growth in order intake and sales, profitability improving Half year Financial Report 2018 Sustainable use of Earth’s natural resources

  2. Slide 2: Market development

    Market development CEO Markku Teräsvasara 2 April 25 Interim Report Q1 2018 © Outotec – All rights reserved

  3. Slide 3: Market activity continued positive in H1

    Market activity continued positive in H1 Demand Strong growth - Brownfield Both investments Energy -Modernizations Capex & - Services - Biomass Services project - Decisions slow Metals+ - Copper, gold, iron, nickel, tin - Sulfuric acid 3 July 25 Half year Financial Report 2018 © Outotec – All rights

  4. Slide 4: Strong growth in orders, service sales impacted by supply issues

    Strong growth in orders, service sales impacted by supply issues MEUR MEUR MEUR MEUR 4 July 25 Half year Financial Report 2018 © Outotec – All rights reserved

  5. Slide 5: Q2: Order intake up 21%, service orders increased by 18%

    Q2: Order intake up 21%, service orders increased by 18% Americas 24 (32) % EMEA 51 (50) % APAC 25 (17) % Technology for a tin smelter for Technology for Boliden’s sulfuric TIMAH, Indonesia acid plant, Sweden ACID TIN M€ Order intake QoQ 400 300 • Minerals processing equipment 154 to Kazakhstan ~15

  6. Slide 6: Key financials

    Key financials CFO Jari Ålgars 6 April 25 Interim Report Q1 2018 © Outotec – All rights reserved

  7. Slide 7: Sales grew 17%, profitability improving

    Sales grew 17%, profitability improving Q2 Q2 Q1-Q2 Q1-Q2 Change, In comparable EUR million 2018 2017 2018 2017 currency, % % Sales 331 266 618 529 17 23 Service sales 109 110 212 209 2 9 Share of services in sales, % 33 41 34 40 Gross margin, % 22 22 22 23 * Adjusted EBIT 8 0 15 1 * Adjusted EBIT ,

  8. Slide 8: Higher volume and lower fixed costs improved profitability

    Higher volume and lower fixed costs improved profitability 15 1 aEBIT Q1-Q2/2017 Volume Margin and FX Fixed Costs aEBIT Q1-Q2/2018 Negative margin impacts in 2018: • Sales mix, lower service share • GM erosion in some projects 8 July 25 Half year Financial Report 2018 © Outotec – All rights reserved

  9. Slide 9: Continued good progress in Minerals Processing

    Continued good progress in Minerals Processing In comp. Minerals Processing Q1-Q2 Q1-Q2 Change, currency, EUR million 2018 2017 % % Order intake 346 323 7 15 Sales 353 319 10 18 Service sales 150 143 4 13 Sales and adjusted EBIT development by quarter Adjusted EBIT*) 33 26 350 Sales aEBIT*, % 20% 30

  10. Slide 10: Order intake and sales developed well, increased provisions impacted profitability in Metals, Energy & Water

    Order intake and sales developed well, increased provisions impacted profitability in Metals, Energy & Water In comp. Metals, Energy & Water Q1-Q2 Q1-Q2 Change, currency, EUR million 2018 2017 % % Order intake 335 282 19 22 Sales 266 210 27 30 Service sales 63 66 -5 1 Sales and adjusted EBIT develop

  11. Slide 11: Improved net working capital and gearing

    Improved net working capital and gearing Q2 Q2 2018 2017 Net interest-bearing debt*, EUR million -26 57 Gearing*, % -6 12 Equity-to-assets ratio*, % 39 40 Return on investment, %, LTM 4 -8 Return on equity, %, LTM 1 -12 Net working capital at the end of the period, EUR million -43 27 Advances receiv

  12. Slide 12: Market outlook and guidance

    Market outlook and guidance CEO Markku Teräsvasara 12 April 25 Interim Report Q1 2018 © Outotec – All rights reserved

  13. Slide 13: Simplifying our organization and way of working – progressing as planned

    Simplifying our organization and way of working – progressing as planned • Simplified structure and streamlined global functions (July 1) • Reduction of 200 persons globally, will continue in H2 • Simplifying business processes, will continue in H2 • Some non-profitable operations discontinued • EUR

  14. Slide 14: Market outlook positive

    Market outlook positive New uses such as EVs support long-term view - Copper - Lithium - Cobalt - Nickel Positive market and complex ores offer attractive opportunities - New technology Prospects in - Tailings several metals reprocessing and energy Service - Copper, gold, opportunities in aluminum,

  15. Slide 15: Financial guidance for 2018 reiterated

    Financial guidance for 2018 reiterated The guidance for 2018 is based on the current order backlog as well as expected order intake. • Sales are expected to be approx. EUR 1.2 – 1.3 billion, and • Adjusted EBIT* is expected to be approx. 5 – 7% * Excluding restructuring and acquisition-related costs

  16. Slide 16: Our focus areas 2018 – towards profitable growth!

    Our focus areas 2018 – towards profitable growth! Product Customer focus Service business Project excellence Our people competitiveness 16 July 25 Half year Financial Report 2018 © Outotec – All rights reserved

  17. Slide 17: Outotec ; ey i aceted i roeou rces

    Outotec ; ey i aceted i roeou rces

Outotec — H1 2018 Earnings Presentation on 6ix