Metso Corporation · OMXHEX:METSO

Metso — Outotec — Q3 2012 Earnings Presentation

17 slides from Metso's earnings presentation, Oct 25, 2012

  1. Slide 1: Q1-Q3 2012 Interim report

    Q1-Q3 2012 Interim report Pertti Korhonen President and CEO October 25, 2012 © Outotec - All rights reserved

  2. Slide 2: Overall market activity continued solid in Q3, iron ore value chain slow

    Overall market activity continued solid in Q3, iron ore value chain slow  Revised mining CAPEX plans  Long-term outlook for metals demand continues to be positive  Social responsibility and environmental sustainability high on customers’ agenda  Iron ore value chain demand is slow  Financing co

  3. Slide 3: Activity was high in copper, gold, acid and aluminum markets, also zinc market activated

    Activity was high in copper, gold, acid and aluminum markets, also zinc market activated Order intake by region: Americas 27% EMEA 57% Asia Pacific 16% • Technology for a nickel matte treatment facility, • Alumina technology, South Korea, over EUR Canada (value not 10 million published) • Technology

  4. Slide 4: Order intake remained solid with both greenfield and brownfield orders

    Order intake remained solid with both greenfield and brownfield orders EUR million 2400 2200 2000 1800  Order backlog at the end of Q3/2012 was EUR 1600 2,155.8 (2,052.5) million, 1400 up 5% from comparison 1200 period 1000  43 projects with value in 803 excess of EUR 10 million, 800 736 accountin

  5. Slide 5: Very strong sales and profit growth due to the strong order backlog

    Very strong sales and profit growth due to the strong order backlog, successful project deliveries and services growth Q1-Q3 Q1-Q3 Chg Q3 Q3 EUR million 2012 2011 % 2012 2011 Sales 1,437.6 888.8 +62 502.8 352.8 Gross margin, % 20.3 24.0 - 19.3 24.9 Operating profit from business 119.8 66.6 +80 44.7

  6. Slide 6: Delivering profitable growth

    Delivering profitable growth Sales last 12 months 2000,0 10,0 % 1800,0 9,0 % 1600,0 8,0 % 1400,0 7,0 % 1200,0 6,0 % 1000,0 5,0 % 800,0 4,0 % 600,0 3,0 % 400,0 2,0 % 200,0 1,0 % 0,0 0,0 % 12/2009 3/2010 6/2010 9/2010 12/2010 3/2011 6/2011 9/2011 12/2011 3/2012 6/2012 9/2012 Sales LTM Operating Profit

  7. Slide 7: NFE: very good performance with all metrics

    NFE: very good performance with all metrics Non-ferrous Solutions Q1-Q3/2012 EUR million 1400,0 14,0 %  Good progress in deliveries 1200,0 12,0 1000,0 10,0  Continued strong order intake 800,0 8,0  Growth in Services sales 600,0 6,0  Operating leverage from higher sales 400,0 4,0 Sales, LTM 200,

  8. Slide 8: FER: Good project execution resulting in strong growth and profitability improvement

    FER: Good project execution resulting in strong growth and profitability improvement Ferrous Solutions Q1-Q3/2012 EUR million 350,0 9,0 %  Successful execution of large projects 300,0 8,0 7,0  Services sales growth (Demil) 250,0 6,0 200,0 5,0  Operating leverage from higher sales 150,0 4,0 3,0 10

  9. Slide 9: ELE: Strong sales growth, profitability impacted by execution of two customer projects

    ELE: Strong sales growth, profitability impacted by execution of two customer projects Energy, Light Metals and Environmental Solutions Q1-Q3/2012 400,0 EUR million 15,0 %  Operating profit decreased due to 350,0 • higher than planned costs and increased 300,0 250,0 10,0 risk provisions in two cust

  10. Slide 10: Services: Strong growth continued

    Services: Strong growth continued  Services Q1-Q3/2012 EUR million 120 40 %  Growth came from scaling up sales and 100 delivery capability and addressing the 30 80 installed based 60 20 40 Sales 10 Going forward 20  Continue growth by Share of 0 0 Outotec's • further penetrating to Outotec’s larg

  11. Slide 11: Financing structure continued to be strong and liquidity was good

    Financing structure continued to be strong and liquidity was good Net cash flow from operating ROI %, quarterly activities, quarterly 50 150 40 120 30 90 20 60 10 30 0 0 Net interest-bearing debt Working capital 0 0 -100 -100 -200 -200 -300 -400 -300 Oct 25, 11 Q1-Q3/2012 Interim Report 2012 © Outot

  12. Slide 12: Personnel increased due to acquisitions and recruitments to project and service delivery

    Personnel increased due to acquisitions and recruitments to project and service delivery Personnel by region at the end of the period Personnel at the end of the period 5000 4662 4500 EMEA 4000 3883 3500 3128 3130 3000 Americas 2674 2500 2144 2000 1831 1802 1797 Asia Pacific 1500 1000 500 0  Increa

  13. Slide 13: Events after the reporting period

    Events after the reporting period  Outotec expands its paste plant business by acquiring (Oct 3) Backfill Specialists Pty Ltd in Australia  According to the AGM's decision, Outotec announced on October 16 the following members to the Nomination Board • Mr. Kari A.J. Järvinen CEO (Solidium Oy) • Mr

  14. Slide 14: All 2012 focus areas are progressing well

    All 2012 focus areas are progressing well Objective Status Order intake, scalability and execution excellence to ensure continuous growth Value based pricing, supply savings and scalability to ensure profitability improvement Solution offering and services to strengthen earnings logic M&A to strengt

  15. Slide 15: Market outlook

    Market outlook  The long-term outlook for metals demand is expected to support further investments  Ongoing investments are not sufficient to fulfill the metals demand in the long-term  Industry is increasingly focusing on social and environmental impacts  Despite of adjustments, CAPEX spending

  16. Slide 16: Revised financial guidance for 2012

    Revised financial guidance for 2012 Based on the first nine months’ financial performance, strong order backlog at the end of September, execution of CAPEX projects and market outlook, the management expects that in 2012: • sales will grow to approximately EUR 1.9-2.1 billion (previously: EUR 1.8-2.

  17. Slide 17: Q&A

    Q&A © Outotec - All rights reserved

Outotec — Q3 2012 Earnings Presentation on 6ix