Valmet Corp · OMXHEX:VALMT

Valmet — Metso — Q1 2019 Earnings Presentation

18 slides from Valmet's earnings presentation, Apr 25, 2019

  1. Slide 1: Q1/2019 results

    Q1/2019 results Pekka Vauramo, President and CEO Eeva Sipilä, CFO April 25, 2019 © Metso

  2. 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

  3. Slide 3: Results in brief

    Results in brief Pekka Vauramo President and CEO 3 © Metso

  4. Slide 4: Highlights

    Highlights Solid market activity in all businesses Strong quarter in orders, sales and profitability - Steady growth in services - Strong growth in equipment Successful implementation of strategy - Divestment of grinding media business - One acquisition announced (HighService Service in Chile) - Org

  5. Slide 5: First-quarter group financials

    First-quarter group financials Orders, sales and profitability 1,200 20 Orders received up 18% to EUR 1,013 million (859 million) 18 1,000 Sales up 17% to EUR 836 million (714 million) 16 14 EBITA was EUR 104 million, margin of 12.4% 800 (85 million and 11.9%) 12 600 10 Operating profit was EUR 100

  6. Slide 6: Minerals quarterly highlights

    Minerals quarterly highlights Orders, sales and profitability Orders received up 20% to EUR 823 million (688 million) 1,000 16 - Strongest growth in equipment - Second order booked for Albemarle’s new lithium 14 project in Australia 800 - Aggregates grew especially in the Nordic countries 12 and Wes

  7. Slide 7: Flow Control quarterly highlights

    Flow Control quarterly highlights Orders, sales and profitability Orders received up 12% to EUR 191 million (171 million) 200 24 - Growth was fastest in services - Oil & gas market strong in Asia 20 160 Sales up 19% to EUR 155 million (130 million) - Driven by the equipment business 16 - Share of se

  8. Slide 8: Financials in detail

    Financials in detail Eeva Sipilä CFO 8 © Metso

  9. Slide 9: Income statement

    Income statement EUR million Q1/2019 Q1/2018 Change % 2018 Orders received 1,013 859 18 3,499 Sales 836 714 17 3,173 EBITA 104 85 22 369 % of sales 12.4 11.9 11.6 Operating profit 100 80 25 351 % of sales 11.9 11.3 11.1 Net financial expenses -9 -9 0 -30 Taxes -26 -21 24 -92 Profit for the period 65

  10. Slide 10: Impacts of structural changes and currencies

    Impacts of structural changes and currencies Orders received Sales EUR million EUR million 1,100 900 1,013 836 1,000 800 900 859 714 700 800 700 600 Q1/2018 Organic growth Structural Impact of Q1/2019 Q1/2018 Organic growth Structural Impact of Q1/2019 Orders in constant changes exchange rates Order

  11. Slide 11: Balance sheet

    Balance sheet EUR million Mar 31, 2019 % of total Dec 31, 2018 % of total Intangible assets 602 16% 608 19% Tangible assets 434 8% 305 9% Other non-current assets 163 4% 157 5% Inventories 984 24% 950 29% Receivables (trade and other) 855 23% 834 25% Liquid funds 488 25% 426 13% TOTAL ASSETS 3,525 3

  12. Slide 12: Capital employed and net working capital

    Capital employed and net working capital Capital employed Net working capital EUR Million EUR million 2,500 2,233 587 Trade receivables 2,204 2,218 585 86 44 28 Other 2,015 1,000 497 2,000 315 287 43 434 464 Tangible assets 305 633 666 Net working capital 538 545 1,500 Intangible assets 500 487 502

  13. Slide 13: Cash flow

    Cash flow EUR million Q1/2019 2018 Profit for the period 65 229 Adjustments 58 181 Change in net working capital -55 -129 Financial items, paid -5 -17 Taxes paid -18 -87 Net cash flows from operating activities 45 177 Capital expenditure on fixed assets -19 -67 Business acquisitions, net of cash - -

  14. Slide 14: Financial position

    Financial position Mar 31, 2019 Dec 31, 2018 Return on capital employed before taxes (ROCE), %, 18.9 16.9 annualized Return on equity (ROE), %, annualized 17.7 16.5 Net gearing, % 15.1 11.7 Cash conversion, % 58 64 Equity-to-assets ratio, % 46.6 47.7 Debt to capital, % 32.5 29.7 Net debt/EBITDA 0.5

  15. Slide 15: Strategy and outlook

    Strategy and outlook Pekka Vauramo President and CEO 15 © Metso

  16. Slide 16: Strategy execution

    Strategy execution Investments in organic growth - CAPEX in total EUR 19 million (EUR 13 million) - Growth investments to aggregates equipment, foundry capacity and valves production capacity are progressing as planned in India and China Research and development ramping up as planned - Total spend E

  17. Slide 17: Market outlook

    Market outlook Market activity in both segments, Minerals and Flow Control, is expected to remain at the current high level in both the equipment and services business. Metso’s market outlook describes the expected sequential development in market activity during the following six- month period usin

  18. Slide 18: www.metso.com

    www.metso.com company/metso metsoworld metsogroup metsoworld metsogroup

Metso — Q1 2019 Earnings Presentation on 6ix