Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — Q1 2022 Earnings Presentation
21 slides from Metso's earnings presentation, Apr 21, 2022
Slide 1: Interim Report Q1/2022
Interim Report Q1/2022 President and CEO Pekka Vauramo and CFO Eeva Sipilä April 21, 2022
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 Strategy, sustainability and outlook 04 Q&A April 21, 2022 Source:
Slide 4: Results in brief
01 Results in brief Pekka Vauramo President and CEO
Slide 5: Q1 in short
Q1 in short • Strong market activity continued across all businesses • Solid sales growth • Profitability improved thanks to sales growth, synergies and other actions • Good progress in sustainability • Uncertainty caused by Russia's military offensive against Ukraine April 21, 2022
Slide 6: Group key figures
Group key figures EUR million Q1/2022 Q1/2021 Change % Orders received 1,424 1,102 29 Sales 1,164 925 26 Adjusted EBITA 157 115 37 % of sales 13.5 12.4 – Operating profit 139 91 53 % of sales 12.0 9.8 – Earnings per share, continuing operations, EUR 0.11 0.08 32 Cash flow from operations 74 165 -55
Slide 7: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights • Orders received EUR 402 million (EUR 356 EUR million % million) ◦ Strongest growth in North America and China 500 20 ◦ Equipment up 10%, services 19% 400 15 • Sales EUR 329 million (EUR 265 million) 300 ◦ Growth supported by backlog 10 ◦ Services share 34% (
Slide 8: Minerals segment quarterly highlights
Minerals segment quarterly highlights • Orders EUR 880 million (EUR 677 million) EUR million % ◦ Strong market activity thanks to high commodity prices and production volumes 1,250 20 ◦ Equipment orders +44% 1,000 ◦ Services orders +23% 15 750 • Sales EUR 731 million (EUR 605 million) 10 ◦ Equipment
Slide 9: Metals segment quarterly highlights
Metals segment quarterly highlights • Orders received EUR 141 million (EUR 69 EUR million % million) 250 24 ◦ Several orders for pellet plants and shutdown services 200 16 • Sales EUR 104 million (EUR 55 million) 150 8 ◦ Supported by backlog ◦ Services share 12% (17%) 100 0 • Adjusted EBITA EUR 10 m
Slide 10: Russia business update
Russia business update • Priority is the safety and well-being of our personnel • No new orders accepted since late February • We are working to wind down existing contracts and deliveries to non- sanctioned customers during the coming months • Originally planned Q2-Q4/22 sales to Russia were EUR 31
Slide 11: Financials in details
02 Financials in details Eeva Sipilä CFO
Slide 12: Income Statement
Income Statement EUR million Q1/2022 Q1/2021 2021 Sales 1,164 925 4,236 Solid development in EPS 0.20 Adj. EBITA 157 115 547 Adj. EBITA, % 13.5 12.4 12.9 0.15 0.15 Operating profit 139 91 425 0.11 0.11 0.11 0.10 0.10 0.09 0.09 Operating profit, % 12.0 9.8 10.0 0.08 0.07 0.07 Net financial expenses -
Slide 13: Balance Sheet
Balance Sheet Restated Net debt continued to decline EUR million EUR million Mar 31, 2022 Mar 31, 2021 Dec 31, 2021 1,000 80% Intangible assets 1,993 1,994 2,002 944 915 Total property, plant and equipment 388 361 373 70% 799 Right-of-use assets 123 136 127 800 60% Other non-current assets 267 252 2
Slide 14: Cash Flow
Cash Flow Cash flow from operations EUR million Q1/2022 Q1/2021 2021 EUR million Profit for the period 88 59 342 200 Adjustments: 172 165 164 Depreciation and amortization 38 39 167 150 Financial expenses, net 20 7 39 107 100 Income taxes 31 20 92 74 Other items 3 10 -2 50 Total adjustments 93 76 29
Slide 15: Financial position
Financial position • Early EUR 50 million repayment of a bank Restated term loan EUR million Mar 31, 2022 Mar 31, 2021 Dec 31, 2021 • Undrawn EUR 100 million loan from the Liquid funds 501 516 473 Nordic Investment Bank Net debt 443 675 470 • Ratings: Gearing, % 18.6 31.7 20.9 ◦ S&P (February 2022):
Slide 16: Strategy, sustainability and outlook
03 Strategy, sustainability and outlook Pekka Vauramo President and CEO
Slide 17: Portfolio development
Portfolio development • Hydrometallurgy moved from Metals to Minerals ◦ Opportunities and synergies in minerals processing ◦ Integrated Planet Positive offering • Remaining Metals businesses under strategic review ◦ Smelting ◦ Metals & Chemical Processing ◦ Ferrous & Heat Transfer • Acquisition of T
Slide 18: Sustainability highlights in Q1/2022
Sustainability highlights in Q1/2022 • Good progress with sustainability agenda • Four Planet Positive launches (e.g. digital twin) Planet Positive sales of • Several energy savings actions implemented in EUR 636 own operations to support emissions reductions million* • Green gas certificate initiat
Slide 19: Market Outlook
Market Outlook Market activity is expected to remain at the current strong level. According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the c
Slide 20: Q&A
Q&A Metso:Outotec
Slide 21: Partner for positive change
Partner for positive change mogroup.com