Metso Corporation's stock exchange release on September 3, 2013 at 9:30 a.m. local time
In preparation for Metso's planned demerger*, the Board of Directors has approved the strategy, organization, and financial targets of the new Metso.
Following the demerger, Metso's core customer industries will be mining, construction as well as oil and gas. Metso has a strong global or niche market position in all of these areas, which offer attractive long-term growth opportunities.
Metso intends to further strengthen its position by developing its offering in areas such as intelligent processes and services solutions designed to meet customers' challenges related to the growing scarcity of raw materials and other resources, energy use, and operational efficiency. These areas are expected to open up new opportunities for Metso to expand its offering in intelligent solutions based on the company's excellent capabilities in the automation field. In Automation, Metso will continue to serve the pulp and paper industry and Metso will also have a close co-operation with Valmet Corporation through a strategic partnership.
Metso intends to improve its profitability by growing its services business, as well as developing its operational excellence and increasing its internal integration.
Metso's long-term financial targets after the demerger are as follows:
- Net sales growth to exceed market growth
- Services net sales annual growth of more than 10% on average
- EBITA margin before non-recurring items of 11-16%
- Return on capital employed (ROCE) before taxes of 30%
- Earnings per share to grow faster than net sales
- Capital structure that supports a solid investment-grade credit rating
- Dividend payout of at least 50% of annual earnings per share
Operational model and Metso Executive Team
Following the demerger, Metso will have two reporting segments: Mining and Construction and Automation. Valmet Automotive and the Group Head Office will be reported separately.
As of October 2, 2013, the Metso Executive Team will consist of the following members*:
Matti Kähkönen, President and CEO (Chairman)
Harri Nikunen, CFO
Andrew Benko, President, Mining and Construction (until his retirement on December 31, 2013)
João Ney Colagrossi, President, Mining and Construction (January 1, 2014 onwards)
Perttu Louhiluoto, President, Automation
Kalle Reponen, SVP, Strategy and M&A
Merja Kamppari, SVP, HR.
Mr. Colagrossi, currently President, Services Business Line, Mining and Construction, will be responsible for the development of the Metso Group's overall services business until he takes up position as the head of Mining and Construction. His successor in the services position will be nominated later.
Comment from Matti Kähkönen, President and CEO
According to President and CEO Matti Kähkönen, Metso has excellent potential to achieve greater future success.
" Metso will focus on becoming the undisputed market leader in its customer industries. Our competitive edge lies in a unique combination of technologies, services, and automation solutions that is second to none among our peers. By leveraging this unique combination, we will create added value for our customers and help them become more successful. For our personnel, Metso will open up excellent opportunities to enhance their competencies and work even closer with our customers and share their success.
"Our updated financial targets highlight our ambition to continue growing and improving our profitability. I strongly believe that Metso will be able to respond faster and be more efficient and will be ideally placed to increase shareholder value as we go forward."
*Pending the approval of the Metso EGM, to be held on October 1, 2013, and registration of the demerger.
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.
For further information, please contact:
Matti Kähkönen, President and CEO, Metso Corporation, tel. +358 20 484 3000
Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010
VP, Investor Relations
NASDAQ OMX Helsinki Ltd