Sustainable use of Earth s natural resources. Interim Report Q1 2017

Transcription

1 Sustainable use of Earth s natural resources Interim Report 2017

2 Safety performance Rate per million hours Outotec global safety statistic 12-months running average Lost Time Incident Total Recordable Incident Lost Time Incidents per million working hours (LTIR) includes Outotec employees and contractors working under Outotec supervision. Since 2015, Outotec has had less working hours than in when there where large projects with extraordinary safety performance compared to global peers. 2 May 4 Interim Report 2017

3 Market development in CEO Markku Teräsvasara 3

4 in a nutshell Improved order intake: equipment, plant and service orders increased Fixed cost savings and higher sales improved profitability Low level of advance payments and mature order backlog impacted cash flow Good performance in MP MEW s profitability weak, cost savings continue 4

5 Improved order intake, markets in EMEA and Americas most active Americas 35 (29) % EMEA 53 (46) % Filtration plant to copper concentrator expansion in Peru >15 M APAC 12 (25) % Aluminium technology to Bahrain N/D EUR million COPPER Aluminium Zinc plant technology to Mexico Approx. 24 M ZINC MP order 5 May 4 Interim Report 2017 Service orders MEW order 102 Capex orders /2016 /2017

6 Seasonality in MP orders, MEW showing signs of recovery MEUR Minerals Processing MEUR Metals, Energy & Water Order intake 6 months rolling, annualized Sales 6 months rolling, annualized Order intake 6 months rolling, annualized Sales 6 months rolling, annualized 6

7 Spare part orders increased, fewer shutdown service contracts Service orders increased 13% Sales declined 13% due to fewer shutdown service contracts in MEW Services represent 37 (48)% of sales Services Order intake 6 months rolling, annualized Sales 6 months rolling, annualized Split in service order intake Recurring services Shut-downs and modernizations 7

8 Improved order intake YoY, book to bill rate above one Roughly EUR 680 million to be delivered in 2017 EUR million EUR 1,051 million, some 21% services Q2/2006 Q3/2006 Q4/2006 /2007 Q2/2007 Q3/2007 Q4/2007 /2008 Q2/2008 Q3/2008 Q4/2008 /2009 Q2/2009 Q3/2009 Q4/2009 /2010 Q2/2010 Q3/2010 Q4/2010 /2011 Q2/2011 Q3/2011 Q4/2011 /2012 Q2/2012 Q3/2012 Q4/2012 /2013 Q2/2013 Q3/2013 Q4/2013 /2014 Q2/2014 Q3/2014 Q4/2014 /2015 Q2/2015 Q3/2015 Q4/2015 /2016 Q2/2016 Q3/2016 Q4/2016 /2017 Order backlog at the end of the period Share of unannounced orders Order intake by quarter 8

9 Key financials CFO Jari Ålgars 9

10 Sales reflecting increased equipment orders in 2016 EUR million Change, % In comparable currencies Sales % 7% Service sales % -18% Share of services in sales, % Gross margin, % Adjusted EBIT * 1-5 Adjusted EBIT *, % Restructuring and acquisition-related costs PPA amortization -2-2 EBIT EBIT, % -0-5 Result for the period Unrealized and realized gains related to valuation of FX forward agreements 2 1 * Excl. restructuring and acquisition-related costs and PPA amortizations. 10

11 Minerals Processing - further improved performance Equipment orders increased, order intake up 40% Sales increased 36% Profitability improved Minerals Processing EUR million Change, % In comp currency, % Order intake Sales Service sales Adjusted EBIT *) 11 5 Adjusted EBIT *), % 7 4 Unrealized and realized gains/losses related to valuation of FX forward agreements -0 2 * Excl. restructuring and acquisition-related costs and PPA amortizations Sales and adjusted EBIT development, quarter Sales aebit*, % /2012 Q2/2012 Q3/2012 Q4/2012 /2013 Q2/2013 Q3/2013 Q4/2013 /2014 Q2/2014 Q3/2014 Q4/2014 /2015 Q2/2015 Q3/2015 Q4/2015 /2016 Q2/2016 Q3/2016 Q4/2016 / % 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 11

12 Metals, Energy & Water order intake improved but result still negative 161% increase in order intake Sales declined 10% due to low opening order backlog Profitability weak, savings actions continue Metals, Energy & Water EUR million Change, % In comp currency, % Order intake Sales Service sales Adjusted EBIT *) -9-9 Adjusted EBIT *), % -8-7 Unrealized and realized gains/losses related to valuation of FX forward agreements 3-1 * Excl. restructuring and acquisition-related costs and PPA amortizations Sales and adjusted EBIT development, quarter Sales aebit*, % /2012 Q2/2012 Q3/2012 Q4/2012 /2013 Q2/2013 Q3/2013 Q4/2013 /2014 Q2/2014 Q3/2014 Q4/2014 /2015 Q2/2015 Q3/2015 Q4/2015 /2016 Q2/2016 Q3/2016 Q4/2016 / % 10% 0% -10% -20% -30% -40% 12

13 Mature order backlog, timing, and low level of advance payments impacted cash flow EUR million Result for the period Adjustments - Depreciation & amortization Other adjustments 3 7 Change in working capital Interest Taxes NET CASH FROM OPERATING ACTIVITIES NET CASH USED IN INVESTING ACTIVITIES (incl. Capex and acquisitions) -4-3 Repayments & borrowings of non-current debt Hybrid bond Interest paid on hybrid bond Other financing activities 11-0 NET CASH FROM FINANCING ACTIVITIES NET CHANGE IN CASH AND CASH EQUIVALENTS Foreign exchange rate effect on cash and cash equivalents 2-2 Cash and cash equivalents at March

14 Liquidity and equity remained solid Net interest-bearing debt*, EUR million Gearing*, % 9-13 Equity-to-assets ratio*, % Return on investment, %, LTM -8-2 Return on equity, %, LTM Working capital at the end of the period, EUR million Advances received Equity, EUR million Balance sheet total, EUR million 1,422 1,556 * If the hybrid bond were treated as a liability the net interest-bearing debt EUR million, gearing 57.1% and equity-toassets ratio would be 27.4% (March 31, 2016: EUR 80.5 million, 20.7% and 29.3% respectively). 14

15 Market outlook and guidance CEO Markku Teräsvasara 15

16 Market outlook MP opportunities in process improvements, smaller equipment deliveries and services MEW technology portfolio provides opportunities in a number of end markets Gold and copper projects most active, improved activity also in other base metals projects Timing of large orders remains difficult to foresee 16

17 Reiterated guidance: The guidance for 2017 is based on the current order backlog and market outlook, as well as achieved cost savings Expected sales in 2017 ~ EUR 1,050 1,150 million = sales EUR 268 million + From backlog ~EUR 680 million, or 65% + From new orders ~EUR million Adjusted EBIT * is expected to be approximately 3-5% * Excluding restructuring and acquisition-related costs as well as purchase price allocation amortizations. 17

18 Our focus areas for towards profitable growth! Continue to win orders in a competitive market Growth Continue cost savings to reach stability in the Metals, Energy & Water Strong focus on service business, new Services business unit since April 1 Profitability Improve competitiveness of products Strengthen customer centricity Stability Strategy work 18

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