Financial Statements Review 2019

Metso’s Financial Statements Review 2019 was published on Thursday, February 6, 2020.

Metso’s President and CEO Pekka Vauramo and CFO Eeva Sipilä will present the results in an audiocast and a conference call for analysts and investors today at 1:00 p.m. EEST.

Conference call participants are requested to dial in five minutes before the event on:
United States: +1 855 857 06 86
other countries: +44 333 300 08 04

The confirmation code for joining the conference call is 46951233#.

Fourth-quarter 2019 in brief

• Market activity continued to be good
• Orders received increased 1% to EUR 914 million (902 million)
• Sales grew 7%, totaling EUR 963 million (897 million)
• Adjusted EBITA improved to EUR 117 million, or 12.2% of sales (98 million, or 10.9%)
• Operating profit improved to EUR 96 million, or 10.0% of sales (93 million, or 10.4%)
• Earnings per share were EUR 0.41 (0.42)
• Free cash flow was EUR 18 million (57 million)
• Acquisition of the Canadian mobile aggregates equipment supplier McCloskey was completed
• Shareholders approved Metso’s partial demerger to create Metso Outotec and Neles. Closing is currently
expected to take place on June 30, 2020, subject to regulatory approvals

January-December 2019 in brief

• Healthy market activity in both segments
• Orders received increased 5% to EUR 3,690 million (3,499 million)
• Sales grew 15%, totaling EUR 3,635 million (3,173 million)
• Adjusted EBITA increased to EUR 474 million, or 13.0% of sales (369 million, or 11.6%)
• Operating profit increased to EUR 418 million, or 11.5% of sales (351 million, or 11.1%)
• Earnings per share were EUR 1.94 (1.53)
• Free cash flow was EUR 39 million (146 million)
• Transformative strategy year with the McCloskey acquisition and the transaction to merge Metso Minerals and Outotec and to create an independent valve company, Neles
• The Board of Directors will propose a dividend of EUR 1.47 per share for 2019 (1.20)

IFRS figures for January-December 2019

• Sales for continuing operations totaled EUR 660 million (593 million)
• Operating profit for continuing operations was EUR 93 million (83 million)
• Profit from discontinued operations was EUR 230 million (164 million)
• Earnings per share, continuing operations, were EUR 0.46 (0.43)
• Earnings per share, discontinued operations, were EUR 1.54 (1.10)
• Earnings per share, Metso total, were EUR 2.00 (1.53)

Market outlook

  • Market activity in both segments, Flow Control and Minerals, is expected to remain at the current level in both
    the equipment and services business.

Metso’s market outlook describes the expected sequential development of market activity during the following six-month period using three categories: improve, remain at the current level, or decline.

President and CEO Pekka Vauramo:

The last year was in many ways historical and transformative for Metso. It also marked a record in our financial performance, as our sales increased in both segments and our profitability was higher than ever in the company’s history. Other significant accomplishments included the launches of many new products as well as new initiatives in sustainability. What is common to our new products is that they are designed to accommodate our customers’ focus on improving their productivity. In sustainability, we published the Metso Climate Program, which aims for notable reductions in emissions. We also succeeded in improving our safety performance significantly. The great performance in 2019 is thanks to all the Metso people, who have shown their capabilities and commitment during the year.

In 2019, we made two major strategic decisions, which are transformative to both Metso and our industry. The first was the acquisition of McCloskey, a Canadian supplier of mobile aggregates crushers and screens. After the closing of the acquisition in October, Metso’s offering strengthened in the mobile aggregates equipment market, which is estimated to see the industry’s fastest-growing demand.

The second and truly transformative step was the decision related to the partial demerger of Metso, after which Metso’s Minerals business will be combined with Outotec to create Metso Outotec, a unique company in the minerals, metals and aggregates industries. At the same time, the valves business will continue as an independent listed company named Neles. We are confident that, as a result of this transaction, both companies will be wellpositioned to grow and create value for our customers and other stakeholders. Shareholders of both Metso and Outotec approved the transaction in October and internal preparations have proceeded according to plan. The completion of the transaction still requires approvals from the competition authorities in various markets. According to our current estimate, we expect the closing to take place on June 30, 2020.