Metso Corporation · OMXHEX:METSO
Metso — Investor Presentation (November 2024)
62 slides from Metso's investor presentation, November 2024
Slide 1: Investor presentation November 2024
Investor presentation November 2024
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: Metso investment highlights
Metso investment highlights Leading offering in Committed to Industry leader in Strong aftermarket aggregates and further performance sustainability and presence & minerals processing improvement technology capability 3
Slide 4: Enabling sustainable modern life
Enabling sustainable modern life Megatrends Vision Top priorities Urbanization To be customers’ number one choice for sustainable Financial performance Electrification use of Earth’s natural resources. Together we deliver Customer success Sustainability service, reliability, innovation and results –
Slide 5: Becoming an industry leader
Becoming an industry leader Strong platform Leading position to grow and in technology and create value sustainability Business model Continuous supporting profitability achievement of improvement targets 5
Slide 6: Our businesses
Our businesses Aggregates Minerals Services Consumables Crushing and Comprehensive Spare parts, Comprehensive screening equipment solutions for minerals refurbishments and offering of wear for aggregates processing, professional services parts for mining production hydrometallurgical for mining and
Slide 7: Key numbers in 2023
Key numbers in 2023 Sales by geography Sales EUR 5.4 ~50 countries 16 % 20 % Europe billion North and Central America 21 % Asia Pacific 23 % South America Adjusted EBITA Africa, Middle- EUR 887 million 17,000+ 20 % East and India employees 16.5% Sales by segment 25% Metso Plus sales EUR 1.4 100+ Agg
Slide 8: Strategy implemented via priority areas
Strategy implemented via priority areas Customer Sustainability Performance Financial success culture performance 8
Slide 9: Positive development in strategic priorities
eNPS Positive development in strategic priorities 54 Engaged people ➔ customer value ➔ business results Top 10%* 100 18% 16.5% 16.6% 16.7 % 16.0% 90 16% 14.4% 80 12.9% 13.1% 14% 70 12% 60 60 55 54 56 51 10% 50 43 8% 40 37 6% 30 4% 20 10 2% 0 0% Q4 2021 Q2 2022 Q4 2022 Q2 2023 Q4 2023 Q2 2024 Q3 2024
Slide 10: Financial targets support our value creation
Financial targets support our value creation Adjusted EBITA- margin of Maintaining Q3/24: Baa2/ >17% 16.9% Investment Grade BBB over the cycle credit rating Dividend payout of at least Progress in sustainability in 50% 2023: alignment with the On of earnings per share 55% 1.5°C track commitment 10
Slide 11: Profitability has strengthened after the merger
Profitability has strengthened after the merger EUR million Completion of merger Target over 17% 8,000 16.5% 16.7% % 16 14.4% 7,000 12.9% 14 6,000 11.5% 11.2% 12 5,000 10 4,000 5,390 8 6.7% 4,933 4,970 3,000 4,159 4,132 4,236 6 3,897 2,000 4 1,000 2 0 0 2018 2019 2020 2021 2022 2023 Q3/24* Sales Adj
Slide 12: Emphasizing services and product development
Emphasizing services and product development CONTINUOUSLY FOCUS ON PRODUCT GROW SERVICES DEVELOPMENT • Reinforce presence in Insert Background Picture • Building on our end-to- service-intensive Forend process best knowledge result, use businesses an image that is 16:9 • Standardized and pre- • Prof
Slide 13: Broad range of sustainability initiatives
Broad range of sustainability initiatives EQUIPMENT AFTERMARKET CAPABILITIES • Metso Plus products • Recycling of consumables • Industry-leading metallurgical expertise Examples: Concorde Cell, • Significant increase of product Geminex and digital, hydro, lifetime • Supply chain battery chemicals, r
Slide 14: Digitalization drives growth and aftermarket captivity
Digitalization drives growth and aftermarket captivity Focusing on Enabling creating Digital and Growth of automation Higher equipment and technologies customer aftermarket and value business capabilities Customer segment specific offerings Intelligent Fleet Process & operations equipment management
Slide 15: Construction remains muted in Europe; aggregates affected by US weather
Construction remains muted in Europe; aggregates production was affected negatively by severe weather in the US during summer 115 US France Germany Euro area 110 Construction 105 projects 100 volume (2022=100) 95 90 85 01/23 01/24 09/24 10 US, crushed stone EU, other mining and quarrying Aggregates
Slide 16: Aggregates producers' capex outlook has increased this year
Aggregates producers’ capex outlook has increased this year, construction orders have seen an increase year-over-year Bn EUR Current year Next three years 16,0 15,4 15,5 Aggregates 15,0 customers* 14,5 Capex 14% estimates 14,0 13,5 5,0 4,5 4,0 11/2023 01/2024 03/2024 05/2024 07/2024 09’2024 11/2024
Slide 17: Favorable market fundamentals for copper and gold
Favorable market fundamentals for copper and gold, growing surplus to weigh on iron ore prices in the long-term Last 12 M price development Price forecast and market balance 11 Prices surge on positive China stimulus boosts prices 15,000 11/24 Price Forecast 11/23 Price Forecast Market Balance 2,000
Slide 18: Battery metals: tumbling prices, strong policy support
Battery metals: Tumbling prices dampen overall sentiment, yet strong policy support and environmental measures to drive market activity Last 12 M price development Price forecast, market balance, EV sales 30,000 50,000 10/24 Price Forecast 10/23 Price Forecast Market Balance 200 25,000 40,000 100 20
Slide 19: Focus areas for acquired growth
Focus areas for acquired growth Products with Sustainable high aftermarket offering intensity Automation & Supply chain digitalization competitiveness 19
Slide 20: Sustainability, R&D and people
Sustainability, R&D and people
Slide 21: Mining industry and equipment suppliers play an important role in climate challenge
Mining industry and equipment suppliers play an important role in addressing the climate challenge About 3-5% of the world’s power is used in comminution Around 1% of the worlds power • We must improve our sustainability performance throughout the value chain. runs through our • Our customers need o
Slide 22: We offer our customers solutions to meet their challenges
We offer our customers solutions to meet their challenges Energy and water efficiency Increased lifetime Product improvements in Optimization for renewables • Product improvements for super electrification materials and modular plants • Digitalization with sensors, analytics • Electrical calcining i
Slide 23: Making an environmental impact with Metso Plus offering
Making an environmental impact Over 100 with Metso Plus offering products • Demonstrably more energy or water efficient than comparison • Help our customers: – cut their CO₂ emissions both directly and through reductions in the carbon intensity of manufacturing and delivering products – achieve othe
Slide 24: Examples of our Metso Plus solutions
Examples of our Metso Plus solutions Minerals processing Energy- Energy efficient Concorde CellTM efficient Horizontal Mill for recovering fine modular In-pit Plant units for and ultra-fine crush and optimized particles with convey grinding minimized energy solutions circuit throughput and water con
Slide 25: Examples of our Metso Plus solutions
Examples of our Metso Plus solutions Spare and wear parts, upgrades and modernizations Truck body Optimized wear parts Repairs Lighter, more More efficient Extending payload & less processes the lifetime fuel per hauled Long lasting wears of customer ton Lower energy assets for consumption reduced S
Slide 26: Industry-leading service expertise with global network
Industry-leading service expertise with global network • Comprehensive service portfolio from spares and wears to advanced lifecycle services • Deep understanding of customer process, product design, and technology • A world-class manufacturing network • Efficient logistic network in all main custom
Slide 27: Strong innovation and R&D capacity
Strong innovation and R&D capacity ~10 73 ~30 99.8% 7,800+ million euros New Metso Plus Investment in Locations with R&D project Patents launches in 2023 research and R&D, testing and spend with development in laboratory sustainability 2023 capabilities targets in 2023 27
Slide 28: Our industry leading diverse group of professionals
Our industry leading diverse group of professionals Key numbers in the end of 2023 Our people by geography Our people by employee category Countries People Finland 2,790 Chile 2,353 Brazil 1,696 14% 13% Europe India 1,659 31% 33% South America China 1,058 13% Blue collars Asia Pacific and United Sta
Slide 29: New Leadership Team as of November 4
New Leadership Team as of November 4 Metso Leadership Team (MLT) President and CEO Sami Takaluoma CFO Business Growth Legal & Compliance HR Eeva Sipilä * Claudia Genin Nina Kiviranta Carita Himberg Aggregates Minerals Services Consumables Markku Simula Piia Karhu Heikki Metsälä Saso Kitanoski Market
Slide 30: Our offering
Our offering Metso
Slide 31: Aggregates to build modern societies
Aggregates to build modern societies Equipment and services for diverse customers Our customers • Large international and smaller local companies and contractors in the aggregates industry Customer benefits • Best cost, best availability, easy-to-buy, and easy-to-own solutions • Comprehensive range
Slide 32: Driven by electrification and digitalization
Driven by electrification and digitalization Crushers and screens • Mobile and portable machines and plants • Stationary crushing and screening plant systems Spares and wears • Spare and wear parts and upgrades Professional services Electrifying our equipment Digital customer experience • Installati
Slide 33: Multi-brand: Serving our customers' different needs
Multi-brand: Serving our customers’ different needs Crushing, recycling & Aggregates Quarries Global brands demolition contractors OEM business Nordtrack Lokotrack High performance crushing & screening solutions Mobile crushing, screening & recycling Crushing, recycling & Aggregates Quarries Regiona
Slide 34: Minerals processing
Minerals processing Focus on smarter and more sustainable mining processes Faster speed of innovation Our customers Energy Water Agility New levels are focusing on: consumption stewardship through, for example, of reliability modularity 34
Slide 35: Presence in the whole ore-to-metals value chain
Presence in the whole ore-to-metals value chain Exploration and mine planning Tailings management Metal product Hauling and Crushing and Grinding Refining conveying screening Separation Dewatering W E C R E A T E T H E B I G G E S T I M P A C T T H R O U G H O U R C U S T O M E R S 35
Slide 36: Capturing the value of ore, responsibly
Capturing the value of ore, responsibly Leading offering for mining and minerals processing Broad offering Driving sustainable ranging from pre-feasibility flowsheets studies, engineering and An extensive range of Planet process equipment to complete Positive products continuously process islands an
Slide 37: Comprehensive expertise with a full portfolio of sustainable solutions
Comprehensive expertise with a full portfolio of sustainable solutions for all ore types and processes Grinding Separation Materials handling Plant Solutions Industry’s most comprehensive Maximizing recovery throughout Less maintenance, safer Unmatched performance and portfolio minerals’ processing
Slide 38: Innovation leader across the entire mining value chain
Innovation leader across the entire mining value chain Equipment and process performance with intelligent Metso Plus solutions Superior performance Optimal comminution process in beneficiation Reduced downtime Reduced energy costs Improved availability Unrivaled recovery Smart dewatering Process kno
Slide 39: Generating value in battery minerals
Generating value in battery minerals
Slide 40: Batteries require multiple minerals
Batteries require multiple minerals Typical sourcing processes Typical battery minerals Hard rock Copper Cobalt Graphite Brines Lithium Nickel Manganese Battery Recycling (Black mass) 40
Slide 41: Our unique position in the industry
Our unique position in the industry Metso covers over 90% of the value chain From battery minerals extraction to refinement and recycling Mining & Chemical production Precursor Battery EVs Battery concentrates & metallurgy manufacturing production recycling Recycling: Towards a closed loop Circular
Slide 42: Segment's widest technology offering
Segment’s widest technology offering High-performance solutions throughout the value chain Improving the efficiency New exploration and Developing efficient and of existing brownfield new greenfield sites responsible processes mining and extraction with state-of-the-art for recycling and sites, plan
Slide 43: Our competitive advantage…
Our competitive advantage… … amidst fast-moving market expectations Strategic Valuable Resilient Sustainable • 90% coverage of • Ability to maximize • Resilient tools make • Environmental processes across the value of present for more resilient performance such the value chain operations plants as r
Slide 44: Advanced solutions from ore or concentrate to metal
Advanced solutions from ore or concentrate to metal Global leader in process Unique portfolio with best-in- Leading solutions for R&D focus on carbon-free technologies for metal and class technology and expertise decreasing customers’ CO2 production with innovative chemical industries for throughout
Slide 45: Life Cycle Services - unique maintenance and optimization capabilities
Life Cycle Services - unique maintenance and optimization capabilities and process expertise A market leader: Globally 500+ Life Cycle Services contracts Long-term solutions to help Common objectives: our customers exceed their performance targets through partnership Improved Highest safety, lowest
Slide 46: Our service solutions improve customers' equipment and process efficiency
Our service solutions improve customers’ equipment and process efficiency sustainably • Spare and wear parts Life Cycle Services • We produce solutions built to perform for the entire market, • Modernizations, not just for the upgrades Metso installed base and retrofits • Process optimization and co
Slide 47: Optimal wear solutions for the entire value chain
Optimal wear solutions for the entire value chain Crusher wear parts Loading and hauling Designed to the same Wide range of wear linings specifications and exacting covering chute, conveyor and standards as our crushing loading and hauling solutions equipment, ensuring equipment designed to optimize
Slide 48: Not all spare parts are created equal
Not all spare parts are created equal Screening Metso screen and feeder parts boast a strong design to suit tough operating conditions. Crushing Grinding Filtration Wide-ranging parts offering for A proven history of designing, Readily available parts, enabling gyratory, cone and jaw crushers, manuf
Slide 49: Q3/2024 results
01 | - Q3/2024 . results Metso
Slide 50: Q3/24 highlights
Q3/24 highlights Market activity in line A few large mining with expectations projects progressed Robust adj. EBITA Good cash generation margin of 16.9% (excl. discontinued operations) October 24, 2024
Slide 51: Group Q3/2024 key figures
Group Q3/2024 key figures Resilient margin performance EUR million EUR million Q3/2024 Q3/2023 Change % Orders received 1,226 1,191 3 Sales 1,160 1,319 -12 Adjusted EBITA 196 213 -8 % of sales 16.9 16.1 – Operating profit 178 189 -6 % of sales 15.3 14.3 – Earnings per share, continuing 0.15 0.14 7 o
Slide 52: Aggregates profitability resilient despite lower volumes
Aggregates profitability resilient despite lower volumes EUR million • Orders received EUR 259 million (EUR 269 million) ◦ Typical seasonal slowdown and lower y-o-y orders ◦ Challenging mobile equipment market ◦ Equipment orders -1%, services -8% • Sales EUR 283 million (EUR 308 million) ◦ Decline d
Slide 53: Robust margin in Minerals
Robust margin in Minerals EUR million • Orders EUR 968 million (EUR 922 million) ◦ A few large equipment contracts ◦ Equipment orders grew 13%, services 0% • Sales EUR 877 million (EUR 1,011 million) ◦ Services -4%, equipment -26% ◦ Services share of sales 66% (60%) • Adjusted EBITA EUR 161 million
Slide 54: Group Income Statement
Group Income Statement EUR million Q3/2024 Q3/2023 Q1-Q3/2024 Q1-Q3/2023 2023 EUR Sales 1,160 1,319 3,591 4,049 5,390 Adj. EBITA 196 213 601 662 887 Adj. EBITA, % 16.9 16.1 16.7 16.4 16.5 Operating profit 178 189 561 604 805 Operating profit, % 15.3 14.3 15.6 14.9 14.9 Net financial expenses -18 -23
Slide 55: Group Balance Sheet
Group Balance Sheet EUR million Sep 30, 2024 Sep 30, 2023 Dec 31, 2023 EUR million Goodwill and intangible assets 1,869 1,882 1,886 Property, plant and equipment 525 458 472 Right-of-use assets 110 115 114 Other non-current assets 256 294 271 Inventories 1,974 1,998 1,951 Receivables (trade and othe
Slide 56: Operating cash flow
Operating cash flow EUR million Q3/2024 Q3/2023 Q1-Q3/2024 Q1-Q3/2023 2023 Profit for the period -79 124 172 410 546 EUR million Continuing operations 123 119 382 407 537 Discontinued operations -202 4 -210 3 8 Adjustments: Depreciation and amortization 41 39 122 117 158 Financial expenses, net 18 2
Slide 57: Financial position
Financial position EUR million Sep 30, 2024 Sep 30, 2023 Dec 31, 2023 • Ratings: ◦ S&P Global: 'BBB' with stable outlook (June 17, Liquid funds 467 359 638 2024) ◦ Moody’s: ‘Baa2’ long-term rating with stable Net debt 1,156 815 884 outlook (May 13, 2024) • Average interest rate of loans and derivati
Slide 58: Portfolio development
Portfolio development Bolt-on acquisitions announced ◦ Jindex Pty Provides us with more comprehensive slurry handling solutions for the mining industry. Closed on August 1. ◦ Diamond Z and Screen Machine Industries Increases our offering in the infrastructure recycling markets and broadens our portf
Slide 59: Good progress in most sustainability KPIs
Good progress in most sustainability KPIs Logistics CO2 Spend from suppliers Metso Plus Net zero emissions with science-based sales to grow faster CO2 emissions in own emissions targets than overall operations** by -20% sales 2030 by 2025 30% by 2025 Q3/2024*: Q3/2024: Q3/2024: Q3/2024: EUR 1,261 mi
Slide 60: Market Outlook
Market Outlook Metso expects the market activity in both Minerals and Aggregates will remain at the current level. In its previously published outlook, Metso expected the market activity in both Minerals and Aggregates to remain at the current level. According to the company's disclosure policy, Met
Slide 61: Sami Takaluoma appointed President and CEO as of November
Sami Takaluoma appointed President and CEO as of November 1 Sami joined Metso in 1997 and has led the Services Business Area since 2021. He has been member of the Leadership Team since 2017. Sami's short bio Nationality: Finnish Born: 1973 Education: M.Sc. in Engineering Previous positions: Presiden
Slide 62: Partner for positive change
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