Stock Exchange release October 25, 2019 08:50:00 AM CET

Metso publishes selected illustrative financial information for Metso Minerals Business for January–September 2019 and the comparison period of 2018

Metso publishes selected illustrative financial information for Metso Minerals Business for January–September 2019 and the comparison period of 2018

Metso Corporation, stock exchange release, October 25, 2019, at 9:50 a.m. EEST


Metso is publishing selected unaudited illustrative financial information for Metso Minerals Business for the periods January–September 2019 and January–September 2018. This information is complementary to the information published on October 7, 2019 in the Offering circular relating to the demerger and combination of Metso Minerals Business and Outotec. Basis of preparation of these unaudited illustrative carve-out financial information is based on principles applied in the Offering Circular.

Attached to this release is the carve-out information for Metso Minerals Business relating to the income statement, balance sheet and cash flow statements for January–September 2019 and the comparison period of 2018.

On July 4, 2019, Metso announced that its Board of Directors has approved a plan to combine Metso Minerals Business and Outotec to create Metso Outotec. As a result, Metso’s Flow Control business will become the continuing business of the currently listed Metso, which will be subsequently renamed Neles, an independent listed company supplying flow control products and services. The transaction will be executed through a partial demerger of Metso, in which all assets and liabilities of Metso that relate to, or primarily serve, the Metso Minerals Business will transfer to Outotec.

The completion of the demerger is targeted to be registered in the second quarter of 2020, subject to the approval of the demerger by the Extraordinary General Meetings of both Metso and Outotec, convened to be held on October 29, 2019, the statutory creditor hearing process and receipt of all required regulatory and other approvals.

Illustrative financial carve-out information of the Metso Minerals Business

EUR million, percent1–9/20191–9/20181–12/2018
Orders received(1).............................................................................................................2,2492,1262,872
Orders received(1) by service business..............................................................................1,4341,3161,777
  share of orders received, percent.....................................................................................63.861.961.9
Order backlog(2)................................................................................................................1,4441,4081,411
Sales.................................................................................................................................2,1791,8522,581
Sales by services business................................................................................................1 3431 2081,644
  share of sales, percent.....................................................................................................61.665.263.4
Adjusted EBITDA(3)........................................................................................................318235314
  share of sales, percent.....................................................................................................14.612.712.2
Adjusted EBITA(4)...........................................................................................................278212284
  share of sales, percent.....................................................................................................12.811.411.0
Operating profit................................................................................................................247200268
  share of sales, percent.....................................................................................................11.310.810.4
Profit for the period..........................................................................................................173125169
Net cash flow from operating activities.............................................................................(5)66107
Net working capital(5).......................................................................................................746545629
Net debt(6).........................................................................................................................471196239
Gearing(7), percent............................................................................................................38.817.420.2
Equity to assets ratio(8), percent........................................................................................36.844,140.4
Total assets.......................................................................................................................3,5752,8392,979
Personnel at the end of period...........................................................................................11,59010,29310,367

Calculation of key figures

(1)Orders received=Orders received during the period
    
(2)Order backlog=Undelivered orders at the end of the reporting period
    
(3)Adjusted EBITDA=Adjusted EBITA + depreciation
    
(4)Adjusted EBITA=Operating profit (EBIT) + restructuring and acquisition-related costs + amortization
     
     
(5)Net working capital=Inventories + trade receivables + other non-interest bearing receivables + customer contract assets and liabilities, net - trade payables - advances received - other non-interest bearing liabilities
     
(6)Net debt=Borrowings - non-current financial assets - loan and other interest bearing receivables (current and non-current) - liquid funds
     
(7)Gearing=Net debt× 100
Total equity
     
(8)Equity to assets ratio=Total equity× 100
Balance sheet total - advances received

Basis of preparation for the selected carve-out financial information of the Metso Minerals Business

The Offering Circular published on October 7, 2019, includes audited carve-out financial statements of the Metso Minerals Business as at and for the years ended December 31, 2018, 2017 and 2016 and unaudited interim carve-out financial information of the Metso Minerals Business as at and for the six months ended June 30, 2019, including comparison period 2018.The audited carve-out financial statements have been prepared in accordance with IFRS under consideration of the carve-out principles for determining which assets and liabilities, income and expenses as well as cash flows are to be assigned to the Metso Minerals Business as described in the notes to the carve-out financial statements.

The selected carve-out financial information of the Metso Minerals Business of this complementary information as at and for the nine months ended September 30, 2019, has been prepared applying Metso Minerals carve-out principles and IFRS accounting and valuation principles as described above.

The audited carve-out financial statements of the Metso Minerals Business as at and for the year ended December 31, 2018 and the unaudited interim carve-out financial information of the Metso Minerals Business as at and for the nine months ended September30, 2019 with comparison period 2018, have been prepared on a going concern basis under the historical cost convention, except for financial assets and liabilities classified as at fair value through profit and loss account.

The Metso Minerals Business has adopted the “IFRS 16 – Leases” and the “IFRIC 23 – Uncertainty over Income Tax Treatments” interpretation as of January 1, 2019 and transferred to new standard and interpretation in accordance with the modified retrospective approach. The figures from preceding years were not adjusted and, therefore, the carve-out financial information for the periods prior to January 1, 2019, is not fully comparable.

The carve-out financial information of the Metso Minerals Business does not necessarily reflect what the Metso Minerals Business’ results of operations, financial position or cash flows would have been had the Metso Minerals Business operated as an independent company and had it presented stand-alone financial information during the periods presented. Also, the carve-out financial information of the Metso Minerals Business does not take into account any transactions that have been made or will be made in connection with the demerger or otherwise, to the extent such transactions will be entered before the demerger. Moreover, the carve-out financial information of the Metso Minerals Business alone is not indicative of the Combined Company’s future results of operations, financial position or cash flows.

For further information, please contact:

Juha Rouhiainen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 5132

                                  
Metso Corporation

Distribution:
Nasdaq Helsinki
Media
www.metso.com

Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 3.2 billion in 2018. Metso employs over 14,000 people in more than 50 countries.

metso.comtwitter.com/metsogroup

Attachment

Downloads
Name
Q3_Metso Minerals update for selected financial information Download

Metso in Twitter