Victor Tapia President, Minerals Capital business area Metso … · 2020. 9. 7. · Metso Capital...

© Metso

Building sustainable, profitable growth

Metso Capital Markets DayJune 1, 2017

Victor TapiaPresident, Minerals Capital business area

© Metso2

Agile modelRight company to operate in all market situations

GrowthRight initiatives in place to grow our market share

Best portfolioBest technology and portfolio to serve our customers

Metso Capital Markets Day 2017 | Victor Tapia | President | Minerals Capital business area

© Metso Metso Capital Markets Day 2017 | Victor Tapia | President | Minerals Capital business area3

Metso is a lean, efficient technology leader

Sales*: EUR 730 million

Personnel**: ~2,600

~28%of sales

~22%of personnel

~31%of orders received

Orders received*:EUR 854 million

We grow by being the leading technology

provider for end-to-end minerals processing

* Q2/2016 – Q1/2017** March 31, 2017

© Metso© Metso

35%

50%

15%

Mining 35%Aggregates 50%Recycling 15%

31%

26%16%

15%

12%

Europe 31%Asia-Pacific 26%North America 16%South America 15%Africa and Middle East 12%

We serve mining, aggregates and recycling customers globally

Sales* by segment Sales by offering Sales* by region

4

84%

16%

74%

26%

MCA Equipment 84%

MCA Systems 16%

MNG Equipment 74%

MNG Systems 26%


17%

10%

4%4%

50%

15%

Copper 17%Others 10%Iron ore 4%Gold 4%Aggregates 50%Recycling 15%

Sales* by commodity

*Q2/2016 – Q1/2017

© Metso© Metso

86%

14%

Standard sales 86%

Systems sales 14%

There is a great opportunity in capitalizing on replacement & upgrade sales

5

Sales* by offering

AggregatesMining

23%

51%

26%

Standard sales 23%Complex sales 51%Systems sales 26%

Metso Capital Markets Day 2017 | Victor Tapia | President | Minerals Capital business area *Q2/2016 – Q1/2017

© Metso© Metso

Volume and margins moving in the right direction

Margins maintained despite lower volumes...

0

25

50

75

100

125

0

500

1,000

1,500

2,000

2,500

12Q1

12Q2

12Q3

12Q4

13Q1

13Q2

13Q3

13Q4

14Q1

14Q2

14Q3

14Q4

15Q1

15Q2

15Q3

15Q4

16Q1

16Q2

16Q3

16Q4

17Q1

Capital sales, recycling, rolling 12 monthsCapital sales, mining, rolling 12 monthsCapital sales, aggregates, rolling 12 monthsGross profit, Indexed (Q1/2012 = 100)

...after major restructuring

• Initiatives to maintain margins

- More sales-oriented operative model

- Sales mix: more aggregates and less systems business

- Global pricing management

- Global procurement

- Consolidation to streamline our operations

Metso Capital Markets Day 2017 | Victor Tapia | President | Minerals Capital business area6

EUR million

© Metso

1,413 1,240 1,191 1,103 926 826 779

3,4753,120 2,725

2,3392,104 1,975 1,802

4,8884,360

3,9173,442

3,030 2,801 2,581

0

1,000

2,000

3,000

4,000

5,000

6,000

2013 Dec 2014 Jun 2014 Dec 2015 Jun 2015 Dec 2016 Jun 2016 Dec 2017 Mar


We’ve cut costs while retaining customer, sales and engineering expertise

Minerals Capital employees

SGA COGS

2,619

1,826

793

© Metso

Capital equipment market in mining is cyclical

8

Maintenance capex has been more stable We aim to increase market share

• We have reached the bottom and the long-term outlook is positive

• We will increase replacement and upgrade sales related to maintenance capex

• Strong outlook for gold driven by smaller mines that are getting complex and costlier to mine

• We are diversifying to get new revenue streams outside top commodities


41

71

109124

76

115

156

192178

141121 117

0

50

100

150

200

250

2003 2005 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Exploration Maintenance capex Project

Capital expenditure of global mining companies (bn USD)

Source: McKinsey Basic materials Institute; Minex

© Metso

We expect global construction aggregates market to start growing againMetso is growing faster than the market in aggregates Market is less cyclical

• Market is regional or even local, no actual global market exists

• Market correlates with overall economic growth

• No significant change seen in customer behavior or in competitive landscape unlike in mining

262 238 234 238 215 221 231

0

50

100

150

200

250

300

2012 2013 2014 2015 2016 2017e 2018e

9

3.6%-4.8%


Largest construction equipment manufacturers’ sales development (bn EUR)

Includes largest publicly listed construction equipment manufacturers, 2017e & 2018e are analyst consensus estimates

© Metso

Our strategy for sustainable, profitable growth


Growth

Stability

Profitability• Strong player in the market with leading brand• Superior core technology• Design for cost• Competence to market our solutions globally

• Innovation and vitality of product portfolio• Digitalization• Market share increase through replacement sales focus

• Agile and resilient operations• Standardization• Supply chain optimization• Quality and safety priority

© Metso

Growing in mining through replacement & upgrade sales


• Currently we have an installed base of ~ 70,000 units of equipment in the market

• For example ~ 6,000 Symons crushers that are in average 30 years old

• From reactive to proactive approach in sales

• Primary focus on products with best potential –inefficient, old, unsafe and non-environmental

• Close cooperation with our service teams

Our large installed base generates more replacement and upgrade opportunities

© Metso© Metso

Adding value to customer operations at a mine in Peru through upgrade sales

Added value analysis done to reduce overall OPEX on whole comminution circuit by upgrading existing crusher

MP800’s unique ability to produce a finer feed to grinding, reducing overall OPEX in comminution circuit

Further potential in spares, wears and life cycle services sales in next years

Full-scope services to support the

replacement.

Capacity increased to

20,000 tons-per-day (previously

18,000)

Estimated production value increase USD 15 million per year.

12

Short lead time for MP800 resulted in lowest possible impact on plant operation

Simulation techniques used to optimize selection of most suitable crusher to replace & upgrade Symons


New generation Metso MP800 crusher selected

© Metso

Continuous product innovation ensures lower total cost of ownership for customers

13

Digital solutions for higher performance & smarter operations

New Urban™ Series for sustainable, community-friendly crushing

Industry-changing MX™ cone crusher range for higher uptime

Screensand feedersNew UltraFine Screen range offering extra capacity

New Hydrocyclone range for improved ease of maintenance


Our development principle is to produce more efficient products and disruptive technologies

Lighter and safer designs; focus on modularity, mobility and energy efficiency

© Metso14

Agile modelRight company to operate in all market situations

GrowthRight initiatives in place to grow our market share

Best portfolioBest technology and portfolio to serve our customers


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www.metso.com

Victor Tapia President, Minerals Capital business area Metso … · 2020. 9. 7. · Metso Capital...

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