Building sustainable, profitable growth

Transcription

1 Building sustainable, profitable growth Victor Tapia President, Minerals Capital business area Metso Capital Markets Day June 1, 2017

2 Agile model Right company to operate in all market situations Growth Right initiatives in place to grow our market share Best portfolio Best technology and portfolio to serve our customers 2

3 Metso is a lean, efficient technology leader Sales*: EUR 730 million Orders received*: EUR 854 million Personnel**: ~2,600 We grow by being the leading technology provider for end-to-end minerals processing ~28% of sales ~31% of orders received ~22% of personnel 3 * Q2/2016 Q1/2017 ** March 31, 2017

4 We serve mining, aggregates and recycling customers globally Sales* by segment Sales* by commodity Sales by offering Sales* by region 15% 35% 15% 17% 26% 16% 10% 15% 12% 31% 50% 50% 4% 4% 84% 74% 16% 26% Mining 35% Aggregates 50% Recycling 15% Copper 17% MCA Equipment 84% Others 10% MCA Systems 16% Iron ore 4% Gold 4% MNG Equipment 74% Aggregates 50% MNG Systems 26% Recycling 15% Europe 31% Asia-Pacific 26% North America 16% South America 15% Africa and Middle East 12% 4 *Q2/2016 Q1/2017

5 There is a great opportunity in capitalizing on replacement & upgrade sales Sales* by offering Mining Aggregates 26% 23% 14% 51% 86% Standard sales 23% Complex sales 51% Systems sales 26% Standard sales 86% Systems sales 14% 5 *Q2/2016 Q1/2017

6 Volume and margins moving in the right direction Margins maintained despite lower volumes... EUR million 2,500 2,000 1,500 1, after major restructuring Initiatives to maintain margins - More sales-oriented operative model - Sales mix: more aggregates and less systems business Global pricing management 0 12 Q1 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 13 Q4 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 15 Q3 15 Q4 16 Q1 16 Q2 16 Q3 16 Q4 17 Q1 0 - Global procurement Capital sales, recycling, rolling 12 months Capital sales, mining, rolling 12 months Capital sales, aggregates, rolling 12 months - Consolidation to streamline our operations Gross profit, Indexed (Q1/2012 = 100) 6

7 We ve cut costs while retaining customer, sales and engineering expertise 6,000 5,000 4,000 3,000 2,000 1,000 0 Minerals Capital employees 4,888 4,360 3,917 3,442 3,030 3,475 2,801 3,120 2,619 2,581 2,725 2,339 2,104 1,975 1,826 1,802 1,413 1,240 1,191 1, Dec 2014 Jun 2014 Dec 2015 Jun 2015 Dec 2016 Jun 2016 Dec 2017 Mar SGA COGS 7

8 Capital equipment market in mining is cyclical Maintenance capex has been more stable We aim to increase market share 41 Capital expenditure of global mining companies (bn USD) We have reached the bottom and the long-term outlook is positive We will increase replacement and upgrade sales related to maintenance capex Strong outlook for gold driven by smaller mines that are getting complex and costlier to mine Exploration Maintenance capex Project Source: McKinsey Basic materials Institute; Minex 0 We are diversifying to get new revenue streams outside top commodities 8

9 We expect global construction aggregates market to start growing again Metso is growing faster than the market in aggregates Largest construction equipment manufacturers sales development (bn EUR) -4.8% 3.6% Market is less cyclical Market is regional or even local, no actual global market exists Market correlates with overall economic growth No significant change seen in customer behavior or in competitive landscape unlike in mining e 2018e Includes largest publicly listed construction equipment manufacturers, 2017e & 2018e are analyst consensus estimates 9

10 Our strategy for sustainable, profitable growth Stability Agile and resilient operations Standardization Supply chain optimization Quality and safety priority Profitability Strong player in the market with leading brand Superior core technology Design for cost Competence to market our solutions globally Growth Innovation and vitality of product portfolio Digitalization Market share increase through replacement sales focus 10

11 Growing in mining through replacement & upgrade sales Our large installed base generates more replacement and upgrade opportunities Currently we have an installed base of ~ 70,000 units of equipment in the market For example ~ 6,000 Symons crushers that are in average 30 years old From reactive to proactive approach in sales Primary focus on products with best potential inefficient, old, unsafe and non-environmental Close cooperation with our service teams 11

12 Adding value to customer operations at a mine in Peru through upgrade sales Added value analysis done to reduce overall OPEX on whole comminution circuit by upgrading existing crusher Simulation techniques used to optimize selection of most suitable crusher to replace & upgrade Symons New generation Metso MP800 crusher selected Estimated production value increase USD 15 million per year. Capacity increased to 20,000 tons-per-day (previously 18,000) Full-scope services to support the replacement. Short lead time for MP800 resulted in lowest possible impact on plant operation MP800 s unique ability to produce a finer feed to grinding, reducing overall OPEX in comminution circuit Further potential in spares, wears and life cycle services sales in next years 12

13 Continuous product innovation ensures lower total cost of ownership for customers Industry-changing MX cone crusher range for higher uptime New Screens UltraFine Screen range and feeders offering extra capacity New Urban Series for sustainable, communityfriendly crushing New Hydrocyclone range for improved ease of maintenance Digital solutions for higher performance & smarter operations Our development principle is to produce more efficient products and disruptive technologies Lighter and safer designs; focus on modularity, mobility and energy efficiency 13

14 Agile model Right company to operate in all market situations Growth Right initiatives in place to grow our market share Best portfolio Best technology and portfolio to serve our customers 14

15 company/metso metsoworld metsogroup metsoworld metsogroup