Metso Corporation · OMXHEX:METSO
Metso — Metso Outotec — Q3 2021 Earnings Presentation
24 slides from Metso's earnings presentation, Nov 2, 2021
Slide 1: Q3/2021 interim report
Q3/2021 interim report President and CEO Pekka Vauramo and CFO Eeva Sipilä November 2, 2021
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: About this financial information
About this financial information • Under IFRS, the merger of Metso’s Minerals business and Outotec is treated as a reverse acquisition, where Metso Minerals is the accounting acquirer and Outotec the accounting acquiree. • Metso Outotec has prepared both illustrative and IFRS-based historical quarte
Slide 4: Agenda
Agenda Results in brief Financials Integration, sustainability and outlook Q&A Source: 2.11.2021
Slide 5: Results in brief
Results in brief Pekka Vauramo President and CEO
Slide 6: Q3 in short
Q3 in short • Strong market activity in all segments • Record-high order intake • Strong Planet Positive demand and orders • Sales growth affected by backlog timing and supply chain • Profitability improved in all segments • Net-zero emissions targeted by 2030 • Integration ahead of plan 2.11.2021
Slide 7: Group Q3 key figures
Group Q3 key figures • Orders received more than doubled to EUR 1,649 million (EUR 809 million) • Sales grew by 7 percent to EUR 1,023 million (EUR 957 million) • Adjusted EBITA improved to EUR 139 million, or 13.6% of sales (EUR 111 million, or 11.6%) • Operating profit improved to EUR 107 million,
Slide 8: Aggregates segment quarterly highlights
Aggregates segment quarterly highlights • Orders received EUR 325 million (EUR 232 EUR million % million) 400 16 • Supported by infrastructure spending • Growth driven by the European and North 350 14 American markets 300 12 • Customers placing orders well before next 250 10 construction season • Sa
Slide 9: Minerals segment quarterly highlights
Minerals segment quarterly highlights • Orders EUR 968 million (EUR 516 million) EUR million % • Strong demand for Planet Positive offering 1 200 18 and productivity solutions 16 • Two equipment orders > 50 million 1 000 14 • Services orders +22% 800 12 • Sales EUR 604 million (EUR 634 million) • Eq
Slide 10: Metals segment quarterly highlights
Metals segment quarterly highlights % • Orders received EUR 357 million (EUR 61 EUR million million) 400 20 • Demand continued to be good 350 15 • Large copper smelter order 300 • Sales EUR 126 million (EUR 79 million) 10 250 • Revenue recognition increased 5 • Adjusted EBITA EUR 6 million (EUR -8 2
Slide 11: Financials in details
Financials in details Eeva Sipilä CFO
Slide 12: IFRS Income Statement
IFRS Income Statement Q1- EUR million Q3/2021 Q3/2020 1-12/2020* Q3/2021 Sales 1,023 957 2,958 3,897 Earnings per share, EUR 0,14 Adj. EBITA 139 111 384 448 0,12 Adj. EBITA, % 13.6 11.6 13.0 11.5 0,10 0,10 Operating profit 107 51 295 253 0,09 0,09 0,08 0,08 Operating profit, % 10.5 5.4 10.0 6.5 0,07
Slide 13: IFRS Balance Sheet
IFRS Balance Sheet EUR million September 30, 2021 December 31, 2020 EUR million Net debt declining Intangible assets 2,013 2,060 1 000 70% 943 Total property, plant and equipment 366 356 915 65% 900 Right-of-use assets 131 132 60% Other non-current assets 248 215 799 800 Inventories 1,236 1,038 55%
Slide 14: Cash Flow
Cash Flow EUR million Q3/2021 Q1-Q3/2021 1-12/2020 Cash flow from operations EUR million Profit for the period, continuing 500 73 200 149 operations 444 450 Profit for the period, discontinued 3 22 -11 operations 400 Adjustments: 89 219 256 350 Depreciation and amortization 41 124 160 300 250 Financ
Slide 15: Net working capital on September 30, 2021
Net working capital on September 30, 2021 EUR million 2.11.2021
Slide 16: Strengthened financial position
Strengthened financial position • Sustainability targets included in the EUR 600 EUR million September 30, 2021 Dec 31, 2020 million Revolving Credit Facility, maturing in 2026 Liquid funds 550 537 • EUR 100 million term loan repaid in two EUR Net debt 563 799 50 million payments in September and Oc
Slide 17: Integration, strategy and outlook
Integration, strategy and outlook Pekka Vauramo President and CEO
Slide 18: Integration proceeding ahead of plan
Integration proceeding ahead of plan • Annual run-rate of EUR 116 million reached in cost synergies • 60% of realized synergies come from the restructuring of the organization and the rest from facilities, IT, and procurement • Realized revenue synergies as sales totaled EUR 68 million and additiona
Slide 19: Planet Positive – our 1.5°C journey
Planet Positive – our 1.5°C journey • We are committed to limiting global warming to 1.5°C: - Cutting CO2 emissions by 50% in own production by 2024 - Achieving net-zero by 2030 - Targeting 30% of the supplier spend by the end of 2025 with partners who have set Science-Based Targets • 100% of R&D wi
Slide 20: Strong demand for Planet Positive products
Strong demand for Planet Positive products Q3 order highlights Energy and emission Water efficient efficient solutions solutions Modular copper solvent Several energy-efficient New proprietary Concorde Raw water treatment plant extraction technology for a stirred mills to a greenfield Cell™ flotatio
Slide 21: Covid-19 impacts in Q3
Covid-19 impacts in Q3 • Local and regional restrictions and lockdowns continue limiting access to customer sites • Slowing down decision-making and overall cooperation with customers • Our own operations have been running without any significant disruptions 2.11.2021
Slide 22: Market outlook
Market outlook Metso Outotec expects the market activity to remain at the current strong level, subject to the development of the Covid-19 pandemic. According to its disclosure policy, Metso Outotec’s market outlook describes the expected sequential development of market activity during the followin
Slide 23: Metso:Outotec
Metso:Outotec
Slide 24: Partner for positive change
Partner for positive change mogroup.com