Dec 18, 2018 Corporate blog

Top investor Q&A discussed with new President and CEO Pekka Vauramo

Juha Rouhiainen
Juha Rouhiainen
Vice President, Investor Relations
Here are the most important Q&As from new CEO’s first meetings with investors.

Q: Your predecessor changed Metso to a more decentralized business model. Do you have experience in working in that kind of business model and have you found them to be more efficient or effective?

A: I'm very much pro-decentralization in this kind of environment. Of course, we have different businesses in Metso. I feel that in the project businesses more centralization is a key and we have more centralized model there already. But in the product businesses, where we sell standardized products, the decision making can be delegated much closer to the customers. And then a big part of the services business takes place in front of customers and that needs to be run even more decentralized and closer to customers. And since we are running global businesses, I think the decentralized model works best.

Q: What was your perception of Metso before you joined? How about customers' perception of Metso?

A: I've known Metso for years and during my Sandvik years I followed Metso's acquisition of Svedala very closely. I have always admired the company. There are some good, solid things that Metso has done. I admired also the rate how Metso acquired businesses throughout the years and seemed to have done reasonably good job in integrating those. Now I have met more than 10 customers already in different parts of the world. What I do hear is that Metso is seen as a professional organization and customers appreciate what we do and how close we are to them. Discussions with customers have been very pleasant for me to see and understand how industry has changed during the time that I was doing other things.

Q: What are the lessons that you can bring from your previous positions in different industries and how those lessons can be to be applied in Metso?

A: I think there are things that we could learn from the consumer business and services. Here the cycles are somewhat longer, but I think the same mechanics still exist. I mean business is always conducted between people and people will see the outcome of service that we provide, and they will give us feedback on whether we performed well or whether we didn't. I would say that we have to measure how we are doing with our customers much more frequently than what we've done in past and then learn what the perception of our services and operations is amongst our customers.

Q: Do you see investment in areas like R&D continuing?

A: In 2018, we have ramped up our resourcing and we have been getting up to speed with in R&D. I do see that we will continue to invest more in the future to it. We will continue to renew our offering and we will introduce more digital, so that we can get information and data out of our equipment and then provide new services to our customers.