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Semelhante a Metso Interim Review January-September 2012 presentation (20)
Metso Interim Review January-September 2012 presentation
- 2. 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 willingness, expectations for company
growth, development and profitability and the realization of synergy benefits and cost savings, and
statements preceded by ”expects”, ”estimates”, ”forecasts” or similar expressions, are forward-looking
statements. These statements are based on current decisions and plans and currently known factors.
They involve risks and uncertainties which may cause the actual results to materially differ from the
results currently expected by the company.
Such factors include, but are not limited to:
1) general economic conditions, including fluctuations in exchange rates and interest levels which
influence the operating environment and profitability of customers and thereby the orders
received by the company and their margins
2) the competitive situation, especially significant technological solutions
developed by competitors
3) the company’s own operating conditions, such as the success of production, product
development and project management and their continuous development and improvement
4) the success of pending and future acquisitions and restructuring.
2 © Metso October 25, 2012
- 3. Presentation contents
1. Q3/2012 highlights
2. Strategic priorities
3. Financial performance
4. Outlook and guidance
3 © Metso October 25, 2012
- 5. Steady progress forward
• Customer activity well in line with expectations
• Services continued to develop strongly, order intake
up 16% year-on-year
• Order intake EUR 1,511 million; no large orders in
Pulp, Paper and Power
• Net sales increased by 12% year-on-year
• EBITA before non-recurring items was EUR 171
million, compared to EUR 163 million in Q3/2011
• EBITA margin was 9.7%, compared to 10.4%
in Q3/2011
5 © Metso October 25, 2012
- 6. Services orders strong, capital orders moderate
EUR million
3,000 2,883
2,500
1,847 1,918 1,920
2,000
1,671 1,735
1,498 1,511
1,500 1,365 1,366 1,409
1,313
1,020 1,031
942
1,000
500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
Services orders Capital orders Exceptionally large orders
• Order level was reasonable, given the lack of large project orders in Pulp, Paper and
Power
• Services orders increased 16% year-on-year
• Positive 4%-point benefit from currency rates
6 © Metso October 25, 2012
- 7. Net sales increased by 12%
EUR million
2,500
2,074
2,000 1,897
1,755 1,754
1,687
1,567 1,561
1,444
1,500 1,353 1,370 1,325
1,220 1,247 1,196 1,170
1,000
500
0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012
Services net sales Capital net sales
• All segments grew, Mining and Construction in particular
• Capital net sales increased by 14% and services by 11%
• Positive 5%-point benefit from currency rates
• Growth during the last 12 months was 20% (annual CAGR target >10%)
7 © Metso October 25, 2012
- 8. Consistent EBITA* development
EUR million %
700 11.2 12
10.4
600 9.7 9.7 9.5 9.4 9.7
9.1 8.9 8.9 10
8.8 8.6
500 8.0 8.0
7.5 7.5
8
6.8 6.5
400
6
300 629
491 4
200 399
100 202 2
150 163 177 171
134 125 129 124 140 140
92 85 88 88
0 0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2012 2012 2012
EBITA * EBITA% * Q3/2012 Q3/2011 Target range
• Mining and Construction performed well 12.3 11.0 10-15 %
• Automation good but slightly down y-o-y 13.8 15.1 11-16 %
• Pulp, Paper and Power well in line with targets 7.0 9.2 6-9 %
• Metso excl. non-core businesses 10.2 11.0
*) before non-recurring items
8 © Metso October 25, 2012
- 9. Other key figures
Q1-Q3/2012 Q1-Q3/2011
Earnings per share, EUR 2.00 1.57
Return on capital employed (ROCE) before taxes, %
20.1 16.6
(annualized)
Free cash flow, EUR million 188 330
Cash conversion, % 63 141
Gearing at the end of the period, % 16.7 13.8
9 © Metso October 25, 2012
- 10. Strategic
Good development in services priority #1
Orders by type in Q1-Q3/2012 Services orders by segment
EUR million
3,000
Services business
2,000
49% 51% Product and project
business
1,000
0
Q1-Q3 Q1-Q3
2011 2012
Mining and Construction Automation Pulp, Paper and Power
Services net sales Services development in Q3/2012
EUR million
3,500
• Mining and Construction: orders up by 24%, net sales up
by 17%
3,000
• Automation: orders up by 20%, net sales by 13%
2,500 • Pulp, Paper and Power: orders increased by 10%, net
2,000
sales by 4%
1,500
• Net sales growth during the last 12 months: 14% (annual
target >10%)
1,000
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2007 2007 2008 2008 2009 2009 2010 2010 2011 2011 2012 2012
Services net sales, rolling 12 months
10 © Metso October 25, 2012
- 11. Strategic
Extended presence in emerging markets priority #2
Net sales in emerging markets Orders received in Q1-Q3/2012
EUR million
4,000
3,500
3,000
Emerging markets
2,500 46%
54% Developed markets
2,000
1,500
1,000
2007 Q2 Q4 Q2 Q4 Q2 Q4 Q2 Q4 Q2
2008 2008 2009 2009 2010 2010 2011 2011 2012
Net sales in EM, rolling 12 months
Services in emerging markets
EUR million
1,400
• All BRIC countries were among the top 10 in Q3 orders
received
1,300
• Eastern Europe was strong in Mining and Construction
1,200
1,100
• Services in emerging markets have grown by 14%*
through larger installed base and extended presence
1,000
• Share of emerging markets in services orders was 40%
900 in Q3/2012
800
2010 Q2 Q4 Q2
2011 2011 2012
Services net sales in EM, rolling 12 months
*) last 12 months
11 © Metso October 25, 2012
- 12. Strategic
Growth in the mining business priority #3
Mining order intake Q3/2012 mining orders by market area
EUR million
1,200
1,000 18%
800
600 45%
400 21%
200
0 16%
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3
2009 2009 2010 2010 2011 2011 2012 2012
Mining, services Mining, capital Exceptionally large orders EMEA North America South and Central America Asia Pacific
Mining order backlog
EUR million
2,000
• Some softening in capital demand experienced towards
the end of the quarter
1,600
• Strong development in services:
1,200
- three-year extension of services contract with
800 Boliden in Sweden
400
- more service hubs to be opened
- investment in mill linings manufacturing capacity
0
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 • More smaller orders than last year
2009 2009 2010 2010 2011 2011 2012 2012
Services backlog Capital backlog
12 © Metso October 25, 2012
- 14. Mining and Construction supported EBITA*
growth
Q1-Q3/2012 vs. Q1-Q3/2011
EUR million
600
488
500
426
400
300
200
100
0
Q1-Q3 Mining and Construction Automation Pulp, Paper and Power Others Q1-Q3
2011 2012
*) before non-recurring items
14 © Metso October 25, 2012
- 15. Mining and Construction continues to improve
EUR million %
3,500 16
3,000 14
12
2,500
10
2,000
8
1,500
6
1,000
4
500 2
0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005200620062006200620072007200720072008200820082008200920092009200920102010201020102011201120112011201220122012
Services net sales, rolling 12 months Capital net sales, rolling 12 months EBITA% *, rolling 12 months
• Mining has grown rapidly; construction has been stable EBITA% * target range
• Strong growth in services
*) before non-recurring items
15 © Metso October 25, 2012
- 16. Mining and Construction continues to improve
EUR million Q3/2012 Q3/2011 Change % Q1-Q3/2012 Q1-Q3/2011 Change % 2011
Orders received 754 840 -10 2,512 2,866 -12 3,464
Services orders received 436 353 24 1,293 1,157 12 1,497
Net sales 830 678 22 2,424 1,902 27 2,760
Services net sales 408 350 17 1,170 996 17 1,378
% of net sales 49 52 48 52 50
EBITA* 102 75 37 295 201 47 322
% of net sales 12.3 11.0 12.2 10.5 11.7
Return on capital
30.0 23.2 27.4
employed**
Q3/2012 vs. Q3/2011
• Strong sales growth in both services and capital businesses
• Gross margins were stable, volumes supported EBITA% growth to 12.3%
• Solid backlog with no cancellations or exceptional postponements
• ROCE increased to 30.0%
*) before non-recurring items
16 © Metso October 25, 2012
**) excluding cash and other non-operative balance sheet items, annualized
- 17. Automation – stable development
EUR million %
900 18
800 16
700 14
600 12
500 10
400 8
300 6
200 4
100 2
0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005200620062006200620072007200720072008200820082008200920092009200920102010201020102011201120112011201220122012
Services net sales, rolling 12 months Capital net sales, rolling 12 months EBITA% *, rolling 12 months
• Improved performance at Flow Control, driven by growth in oil & gas EBITA% * target range
and stronger operations
• 2011 was exceptionally strong for Process Automation Systems
*) before non-recurring items
17 © Metso October 25, 2012
- 18. Automation – stable development
EUR million Q3/2012 Q3/2011 Change % Q1-Q3/2012 Q1-Q3/2011 Change % 2011
Orders received 190 180 6 639 625 2 822
Services orders received 96 80 20 297 277 7 352
Net sales 212 185 15 626 526 19 770
Services net sales 95 84 13 275 238 16 345
% of net sales 49 50 47 49 48
EBITA* 29 28 5 72 68 7 104
% of net sales 13.8 15.1 11.5 12.8 13.5
Return on capital
30.5 35.1 39.0
employed**
Q3/2012 vs. Q3/2011
• Solid sales growth in both services (13%) and capital (19%) businesses
• EBITA% was 13.8%, somewhat down from Q3/2011
• Performance of the Flow Control business is continuing to improve
• ROCE remains good at 30.5%
*) before non-recurring items
18 © Metso October 25, 2012
**) excluding cash and other non-operative balance sheet items, annualized
- 19. Pulp, Paper and Power in the target range
EUR million %
3,500 9
8
3,000
7
2,500
6
2,000 5
1,500 4
3
1,000
2
500
1
0 0
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2005200620062006200620072007200720072008200820082008200920092009200920102010201020102011201120112011201220122012
Services net sales, rolling 12 months Capital net sales, rolling 12 months EBITA% *, rolling 12 months
• Services business has grown steadily EBITA% * target range
• Business mix is impacting performance
• Paper has weakened during the last 12 months
19 © Metso October 25, 2012 *) before non-recurring items
- 20. Pulp, Paper and Power in the target range
EUR million Q3/2012 Q3/2011 Change % Q1-Q3/2012 Q1-Q3/2011 Change % 2011
Orders received 504 794 -37 1,767 2,813 -37 3,225
Services orders received 278 253 10 864 915 -6 1,145
Net sales 635 593 7 2,089 1,859 12 2,703
Services net sales 261 250 4 782 735 6 1,048
% of net sales 41 42 38 40 39
EBITA* 44 55 -19 144 170 -15 219
% of net sales 7.0 9.2 6.9 9.2 8.1
Return on capital
27.5 26.7 27.2
employed**
Q3/2012 vs. Q3/2011
• Services orders and net sales increased
• EBITA% was 7.0%, down from the strong figure seen in Q3/2011
• Under-absorption and project performance had a negative impact
• ROCE good at 27.5%
*) before non-recurring items
20 © Metso October 25, 2012
**) excluding cash and other non-operative balance sheet items, annualized
- 21. Strong capital structure and liquidity position
Q1-Q3/2012 Q1-Q3/2011
Net working capital / net sales, % 6.0 3.4
Free cash flow, EUR million 188 330
Cash conversion, % 63 141
Net interest-bearing liabilities, EUR million 366 278
Gearing at the end of the period, % 16.7 13.8
Return on capital employed (ROCE) before taxes,
20.1 16.6
annualized, %
Equity to assets ratio at the end of the period, % 41.8 38.4
21 © Metso October 25, 2012
- 22. Net debt and net working capital
Net debt and gearing Net working capital and NWC to
net sales
EUR million % EUR million %
1200 75.7 80 800 12
10.5
70 700
1000 10
60 600
800 8
50 500
6.0 6.0
672
33.4 32.5
600 40 400 6
1,099 4.8
4.5
30 300 4.2 447
540 375
400 3.4 4
583 15.0 16.7
13.8 12.2 20 200 281
242 247
213
200 2
310 366 10 100
278 260
0 0 0 0
2007 2008 2009 2010 Q3 2011 Q3 2007 2008 2009 2010 Q3 2011 Q3
2011 2012 2011 2012
Net debt Gearing Net working capital NWC / Net sales
22 © Metso October 25, 2012
- 24. Market outlook
Relatively stable demand, but increasing uncertainties
Mining Construction Automation
32% of net sales 11% of net sales 11% of net sales
50% service intensity 40% service intensity 45% service intensity
Long-term Positive for capital and services Positive in emerging markets; Positive for oil & gas customers;
developed markets flat pulp & paper flat
Short-term Good demand in capital Satisfactory demand for capital Good demand in oil & gas, softer
business but somewhat softer and services. in pulp & paper. Services good.
quarters expected. Services
excellent.
Power Paper, board, tissue Pulp
11% of net sales 21% of net sales 9% of net sales
30% service intensity 50% service intensity 40% service intensity
Long-term Positive, partly subject to Demand for board and tissue Positive due to demand for
.
legislation growing; other grades flat or down packaging board, tissue and new
applications
Short-term Satisfactory demand for Weak demand for paper and board Good demand for rebuilds and
projects and services. machines. Services good. services. Pulp mill market activity
satisfactory.
© Metso
N.B. Shares of Metso´s net sales in January - September 2012
24 October 25, 2012
- 25. Healthy order backlog of EUR 5.0 billion
EUR million
6000
7,000
6,000 5000
5,000 4000
4,000
3000
3,000
2000 Around 42% of
2,000 deliveries for 2012
consist of services
orders
1000
1,000
0 0
2008 2009 2010 2011 Q3 Q3
2011 2012
Mining and Construction Automation Pulp, Paper and Power Other Total backlog Deliveries in 2012 Deliveries after 2012
25 © Metso October 25, 2012
- 26. Guidance for 2012
In line with our earlier statement, we
estimate that:
• Our net sales for 2012 will grow
compared to 2011, and that
• Our result (EBITA before non-
recurring items) for 2012 will
improve compared to 2011
The estimates for our financial performance in 2012 are
based on Metso’s current market outlook, strong order
backlog for 2012 and current business scope, as well as
on foreign exchange rates remaining similar to those in
September 2012.
26 © Metso October 25, 2012
- 27. Fit for the future
• Q3 summary:
- satisfactory order intake
- strong services orders
- consistent net sales growth and
overall performance
• Healthy backlog, with EUR 3.2
billion to be delivered after 2012
• Strong balance sheet
• Good strategy for driving profitable
growth
• Strategic priorities:
services, emerging markets and
mining
27 © Metso October 25, 2012