Stock exchange release February 6, 2020 10:15 AM EET

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

Metso Corporation, stock exchange release, February 6, 2020, at 10:15 a.m. EET

Metso publishes selected unaudited illustrative financial information for the Metso Minerals Business for the periods January–December 2019 and for the comparison period of 2018. 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 statements for January–December 2019 and the comparison period of 2018.

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 Flow Control business will become the continuing business of the currently listed Metso, which will be subsequently renamed Neles and become 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 1–12/2019 1–12/2018
Orders received(1)...................................................................................................... 3,009 2,872
Orders received(1) by service business........................................................................ 1,907 1,777
  share of orders received, percent.............................................................................. 63.4 61.9
Order backlog(2)......................................................................................................... 1,408 1,411
Sales......................................................................................................................... 2,976 2,581
Sales by services business.......................................................................................... 1,815 1,644
  share of sales, percent.............................................................................................. 61.0 63.4
Adjusted EBITDA(3).................................................................................................. 409 314
  share of sales, percent.............................................................................................. 13.7 12.2
Adjusted EBITA(4)..................................................................................................... 377 284
  share of sales, percent.............................................................................................. 12.7 11.0
Operating profit......................................................................................................... 325 268
  share of sales, percent.............................................................................................. 10.9 10.4
Profit for the period................................................................................................... 223 169
Net cash flow from operating activities...................................................................... 43 107
Net working capital(5)................................................................................................ 853 629
Net debt(6)................................................................................................................. 772 239
Gearing(7), percent..................................................................................................... 61.6 20.2
Equity to assets ratio(8), percent.................................................................................. 39.1 44.0
Total assets................................................................................................................ 3,457 2,979
Personnel at the end of period.................................................................................... 12,451 10,367

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 × 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 carve-out financial statements of the Metso Minerals Business has 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. Therefore, the carve-out financial information for the previous year 2018 is not 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 3.6 billion in 2019. Metso employs over 15,000 people in more than 50 countries.

metso.comtwitter.com/metsogroup