metso agm 2019 slides v07 · 2019. 4. 26. · metso agm 2019 slides v07.indd created date:...
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CEO's reviewMetso Corporation's Annual General Meeting, April 25, 2019
Pekka Vauramo President and CEO
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
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Sustainable productivity for our customersIn recycling
In process industryIn aggregates
In mining
to improve operational efficiency, reduce risks, and increase safety and profitabilityC
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
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Mining 51%Aggregates 26%Recycling 4%Process industry19%
Europe 27%North America 19%
South and Central America 19%Asia-Pacific 27%Africa and Middle East 8%
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
Sales split
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< 1 year 20%
1-4 years 23%
5-10 years 27%
> 10 years 30%
Personnel by length of service
employees 13,150
People are our most important asset
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
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new employees in 2018
2,290
People are our most important asset
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
< 1 year 20%
1-4 years 23%
5-10 years 27%
> 10 years 30%
Personnel by length of service
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nationalities89
People are our most important asset
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
< 1 year 20%
1-4 years 23%
5-10 years 27%
> 10 years 30%
Personnel by length of service
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participants in Leadership Development programs
3,946
People are our most important asset
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
< 1 year 20%
1-4 years 23%
5-10 years 27%
> 10 years 30%
Personnel by length of service
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People are our most important asset
operating countries52
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
< 1 year 20%
1-4 years 23%
5-10 years 27%
> 10 years 30%
Personnel by length of service
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People are our most important asset
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
locations
< 1 year 20%
1-4 years 23%
5-10 years 27%
> 10 years 30%
Personnel by length of service
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Metso Executive Team
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
Mining EquipmentVictor Tapia
Aggregates Equipment
Markku Simula
Minerals Services and
Pumps Mikko Keto
Minerals Consumables
Sami Takaluoma
Recycling Uffe Hansen
Valves John Quinlivan
Chief Digital Officer Jani Puroranta
President and CEOPekka Vauramo
CFODeputy to CEO
Eeva Sipilä
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Megatrends impact our customers and businesses
Urbanization Growth of the middle class Climate change
Scarcity of natural resources Circular economy Digitalization
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
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Our role in sustainable futureEnvironmental efficiency of
our own operations
Energy- and water-saving product offering
Sustainability targets for all R&D projects
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
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In our own operations since 2010
6,000 railcars' worth of coal burnedCarbon emissions avoided equals
54,000 barrels of oilCarbon emissions avoided equals
12,000 passenger vehicles
Energy saved equals
driven for one year 220,000 passenger vehiclesdriven for one year
Energy saved equals
With Metso Vertimill technology in 2018
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44Positive climate impacts
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
Financial results
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New operating model
Increased market activity
Growth and profitability
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44Highlights of 2018
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Orders received
Strong growth in orders received
Minerals
Flow Control
3 500
3 000
2 500
2 000
1 500
1 000
500
0
2 000
1 750
1 500
1 250
1 000
750
500
250
0
EUR million
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
EUR million
2017 Q1/182018 Q1/19
+18%
+17%
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Good sales development
Sales
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
EUR million EUR million3 500
3 000
2 500
2 000
1 500
1 000
500
0
2 000
1 750
1 500
1 250
1 000
750
500
250
0
Minerals
Flow Control
2017 Q1/182018 Q1/19
+18%
+17%
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Significant profitability improvement
EBITA
400
350
300
250
200
150
100
50
0
240
200
160
120
80
40
0
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
EUR million EUR million
Minerals
Flow Control
2017 Q1/182018 Q1/19
+41%
+22%
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Earnings per share more than doubled in 2018
EPS
1,60
1,40
1,20
1,00
0,80
0,60
0,40
0,20
0
1,60
1,40
1,20
1,00
0,80
0,60
0,40
0,20
0
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
Eur Eur
2017 Q1/182018 Q1/19
+125%
+30%
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Return on operative capital employed (ROCE), % *
Equity-to-assets ratio, %
Balance sheet total, EUR million
Return on equity, % *
Net gearing, %
Free cahsh flow, EUR million
31.12.2017
*Q1/2019 annualized
10.3
44.5
3,287
7.3
1.8
158
31.12.2018 Q1/2019
16.9 18.9
47.7 46.6
3,279 3,525
16.5 17.7
11.7 15.5
146 38
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
Solid balance sheet and cash flow
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Board's dividend proposal of EUR 1.20
3,0
2,5
2,0
1,5
1,0
0,5
0
Proposed total dividend 180 MEUR
78%
of earnings per share 2014 2015 2016 2017 2018
euroa
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
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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 using three categories: improve, remain at the
current level, or decline. C
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METSO_LOGO_CMYK_pc.pdf 21.5.2008 10:21:12
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
Investing in growth
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(In 2018)
1.2 %2.0 -2.5%
Research and development focuses on sustaining differentiation
Invention disclosures doubled and patent applications increased
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44
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In January 2019, an agreement to acquire services business in Chile
Three acquisitions in 2018
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44Acquisitions support growth
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Metso_Logo_CMYK_White.pdf 1 02/10/2018 11.44Our focus areas
One Metso experience
Growth-seeking and profitable businesses
Operational excellence and internal efficiency