Stock Exchange release May 7, 2020 06:05:00 AM CET

Metso publishes selected illustrative financial information for the Metso Minerals Business for January–March 2020 and the comparison period of January–March 2019

Metso Corporation, stock exchange release, May 7, 2020, at 9:05 a.m. EEST

Metso publishes selected unaudited illustrative financial information for the Metso Minerals Business for the periods January–March 2020 and for the comparison period of January–March 2019. This information is complementary to the information published on October 7, 2019, in the Offering Circular relating to the demerger and combination of the 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 the Metso Minerals Business relating to the income statement, balance sheet and cash flow statement for January–March 2020 and the comparison period of January–March 2019.

On October 29, 2019, the extraordinary general meeting (EGM) approved the proposal to combine the Metso Minerals Business and Outotec to create Metso Outotec. As a result, Metso’s Neles business (former Flow Control), which is the continuing operations of the currently listed Metso, will be 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, without liquidation of Metso.

The completion of the transaction is currently expected to take place on June 30, 2020, subject to the receipt of all required regulatory and other approvals, including competition clearances.

Illustrative financial carve-out information of the Metso Minerals Business

EUR million, percent

1–3/2020

1–3/2019

1–12/2019

Orders received(1)...................................................................................................... 874 823 3,009
Orders received(1) by service business........................................................................ 498 474 1,907
  share of orders received, percent.............................................................................. 57.0 57.6 63.4
Order backlog(2)......................................................................................................... 1,427 1,545 1,408
Sales......................................................................................................................... 696 681 2,976
Sales by services business.......................................................................................... 439 429 1,815
  share of sales, percent.............................................................................................. 63.1 63.0 61.0
Adjusted EBITDA(3).................................................................................................. 89 95 432
  share of sales, percent.............................................................................................. 12.8 14.0 14.5
Adjusted EBITA(4)..................................................................................................... 74 83 377
  share of sales, percent.............................................................................................. 10.7 12.1 12.7
Operating profit......................................................................................................... 59 78 325
  share of sales, percent.............................................................................................. 8.4 11.5 10.9
Profit for the period................................................................................................... 43 49 223
Net cash flow from operating activities...................................................................... 103 21 43
Net working capital(5)................................................................................................ 793 664 853
Net debt(6)................................................................................................................. 665 271 772
Gearing(7), percent..................................................................................................... 52.0 21.7 61.5
Equity to assets ratio(8), percent.................................................................................. 39.9 43.8 39.1
Total assets................................................................................................................ 3,464 3,131 3,457
Personnel at the end of period.................................................................................... 12,664 10,648 12,894

Formulas for 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
Total equity 

× 100

(8)

Equity to assets ratio

=

Total equity
Balance sheet total - advances received 

× 100

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 March 31, 20120 has been prepared applying Metso Minerals carve-out principles and IFRS accounting and valuation principles as described above.

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 if the Metso Minerals Business had 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 3253

                                  

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 3.6 billion in 2019. Metso employs over 15,000 people in more than 50 countries.

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