Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
On our way to improving
profitability
João Ney Colagrossi
...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We are on our way to improving profitability
Minerals by J...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
A competitive leader with a strong market position
Mining
...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
31 %
11 %
21 %
23 %
14 %
Europe 31%
North America 11%
Sout...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We are maintaining margins in tough markets
Metso Minerals...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Mining
Recycling
Aggregates
Synergies
•Common supply chain...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Key takeaway # 1: We are strong
• We have a strong market ...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Mining: Demand affected by the slowdown of the
biggest com...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Mining: Capex market still going down but...
copper and go...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Aggregates: Global growth opportunities despite
flat devel...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Recycling: Short-term challenges due to low
scrap prices, ...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Short-term equipment outlook flat, long-term equipment
out...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Key takeaway # 2: Market is challenging
• Short-term marke...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Our strategy will enable us to improve profitability
despi...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We have solid achievements and priorities
Current prioriti...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Market
Expansion
We have solid achievements and priorities...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We have solid achievements and priorities
Current prioriti...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Supply chain is significantly more agile and light
EUR 30M...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Continuously sizing ourselves to market activity
19
# Mine...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Full-scope portfolio ranging
from comminution to
beneficia...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Open-pit mining Comminution Beneficiation
We are expanding...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We are expanding our mid-market business
Metso
21%
1
Compe...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We are responding to the demand for new remote
services wi...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Key takeaway # 3: We have a solid strategy
• We are adjust...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
We are on our way to improving profitability
Minerals by J...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Appendix
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Our product and systems offering for Mining
customers
28
G...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Our product and systems offering for Aggregates
customers
...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Our product, systems and services offering for
Recycling c...
© Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
Case: An integrated solution for Centinela mine
Challenge
...
Upcoming SlideShare
Loading in …5
×

Metso Capital markets day 2015: Joâo Ney Colagrossi (President, Minerals business area)

549 views

Published on

Metso Capital markets day 2015: Joâo Ney Colagrossi (President, Minerals business area). For more information, please visit our website www.metso.com/cmd

Published in: Investor Relations
  • Be the first to comment

  • Be the first to like this

Metso Capital markets day 2015: Joâo Ney Colagrossi (President, Minerals business area)

  1. 1. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 On our way to improving profitability João Ney Colagrossi President, Minerals business area
  2. 2. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We are on our way to improving profitability Minerals by João Ney Colagrossi2 • Minerals has a strong market position in our three customer industries: Mining, Recycling and Aggregates • Short-term market outlook challenging in Mining and Recycling • Market outlook in Aggregates is more positive • Solid long-term fundamentals in all segments • We have been adjusting ourselves to the new market environment • Our strategy is to grow and improve profitability despite market conditions
  3. 3. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 A competitive leader with a strong market position Mining Aggregates Recycling • Comminution equipment • Process equipment • Bulk material handling • Pyro processing • Mining systems • Stationary crushers • Stationary screens • Mobile crushers and screens • Aggregate systems • Shredders • Shears and balers • Sorting solutions • Waste recycling • Recycling systems #1In aggregates crushing and screening #1 In mining crushers and grinding mills #1In metal recycling equipment Minerals by João Ney Colagrossi3
  4. 4. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 31 % 11 % 21 % 23 % 14 % Europe 31% North America 11% South America 21% Asia-Pacific 23% Africa and Middle East 14% 75 % 25 % Equipment 75% Systems 25% We serve mining, aggregates and recycling customer industries globally 49 % 40 % 11 % Mining 49% Aggregates 40% Recycling 11% 20 % 12 % 4 % 13 % 40 % 11 % Copper 20% Iron ore 12% Gold 4% Others 13% Aggregates 40% Recycling 11% Sales by segment Sales by application Sales by offering Sales by region Net sales rolling 12 months (Q3 2014 – Q2 2015): EUR 1,057 million Personnel: ~3,300 Minerals by João Ney Colagrossi4
  5. 5. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We are maintaining margins in tough markets Metso Minerals BA net sales and GP index Key takeaways • Downturn has hit hard on volumes - Mining business hardest hit - Recycling following iron ore - Developed & emerging markets changing roles in aggregates • Margins maintained despite lower volumes - Sales mix: more aggregates and less systems business - Global pricing management - Global procurement 0 20 40 60 80 100 120 0 500 1,000 1,500 2,000 2,500 11 Q4 12 Q1 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 13 Q4 14 Q1 14 Q2 14 Q3 14 Q4 15 Q1 15 Q2 Capital net sales, aggregates, rolling 12 months Capital net sales, mining, rolling 12 months Capital net sales, recycling, rolling 12 months22 GP % , Indexed Minerals by João Ney Colagrossi5 EUR million
  6. 6. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Mining Recycling Aggregates Synergies •Common supply chain with no/light assets •Common crushing and screening technologies •Common engineering and project capabilities •Common global footprint and structures Minerals by João Ney Colagrossi6 Our businesses are synergistic We support Services and Services supports us
  7. 7. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Key takeaway # 1: We are strong • We have a strong market position in our three customer industries • Our businesses are synergistic • We have an unbeatable presence at the customer sites through services • We are maintaining margins in tough markets Minerals by João Ney Colagrossi7
  8. 8. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Mining: Demand affected by the slowdown of the biggest commodity consumer - China 8 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 23%Gold 100% Steel 100%45% Nickel 100%50% Aluminium 100%54% Zinc 100%46% Copper 100%48% Source: IMF World Economic Outlook China’s share of world commodity consumption China’s real GDP growth 2004 - 2020F RoWChina y-o-y % Minerals by João Ney Colagrossi
  9. 9. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Mining: Capex market still going down but... copper and gold have strong long-term outlook Top 10 miners’ capex and guidance (bn USD) Long-term capex outlook • Overall, more maintenance capex and less project capex • Copper and base metals with strong outlook driven by consumption growth and erosion • Gold with strong outlook driven by smaller mines that are getting complex and costlier to mine • Iron ore with weak outlook due to slowing demand growth in China and persistent overcapacity 8 11 10 13 15 21 26 35 47 41 48 70 88 84 65 49 40 40 42 45 53 71 0 10 20 30 40 50 60 70 80 90 100 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 25 Minerals by João Ney Colagrossi9
  10. 10. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Aggregates: Global growth opportunities despite flat development Construction market outlook Key takeaways • Short-term outlook best in North America and Europe • Long-term outlook best in China, India and North America • Mid-market approach becoming more important as demand arises more from emerging markets Minerals by João Ney Colagrossi10 Total global construction CAGR 4% 2014 USD 9.4trn 2020 USD 11.9trn
  11. 11. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Recycling: Short-term challenges due to low scrap prices, long-term depends on China Scrap and iron ore prices Forecast metal scrap recovery 0 100 200 300 400 500 600 700 800 2008 2009 2010 2011 2012 2013 2014 Iron ore Shredded scrap 0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 1,000,000 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 China Rest of World tonne Minerals by João Ney Colagrossi11 EUR/tonne
  12. 12. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Short-term equipment outlook flat, long-term equipment outlook more positive in all segments 12 Aggregates Metal Recycling Mining / Copper Mining / Iron ore Mining / Gold Production growth* 2008-14 2015-20 Equipment outlook 2015-16 2017-20 Comments 3-4% 4-5% • Short term flat due to cooling down in China, APAC and Latin America • Long term driven by China, rest of APAC and North America 2-4% 1-2% • Short term negative due to low scrap prices • Long term supported by China and rest of APAC • Regulations key in Europe and North America 3-4% 2-3% • Demand growth expected to continue • Grade erosion driving part of CAPEX increase • Copper supply not dominated by China – positive dynamics for high-quality equipment provider 4-7% -1-0% • Chinese steel demand growth slowing down but still the largest market for the next 15 years • Iron ore demand to peak 2020-2025 • Iron ore overcapacity till 2025. CAPEX driven by brownfield projects from Western players 4-5% 4-5% • CAPEX primarily driven by cost inflation instead of volumes • Investment strongly linked to price, which can be very volatile due to tight supply market and financial speculation • Increase in small mines, Chinese mines, and underlying geological complexity LTM mix 40% 11% 20% 12% 4% * Production growth forecast for copper, iron ore and gold based on McKinsey run of mine projection ? Minerals by João Ney Colagrossi
  13. 13. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Key takeaway # 2: Market is challenging • Short-term market outlook challenging in Mining and Recycling • More positive market outlook for Aggregates • Solid long-term fundamentals in all segments 13 Minerals by João Ney Colagrossi
  14. 14. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Our strategy will enable us to improve profitability despite market conditions 14 Operating model Market expansion Portfolio development • Right-sizing our cost base to current market activity • Making Minerals simpler, lighter and much more efficient • Making Minerals more market-driven and less product-driven • Taking our existing offering to new regions and segments • Developing commercial excellence to capture more of the market • Improving the competitiveness of our current offering • Developing new solutions to expand our offering further Minerals by João Ney Colagrossi
  15. 15. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We have solid achievements and priorities Current priorities2014 - 2015 Achievements Operating model  Right-sizing to market activity  Systems business re-focused  No-asset supply chain for recycling  No-asset supply chain for mining • Finalize asset-light supply chain for aggregates • Recycling business turnaround • Streamline of customer-facing functions • Integrate common back-end operations Minerals by João Ney Colagrossi15
  16. 16. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Market Expansion We have solid achievements and priorities Current priorities2014 - 2015 Achievements  Mid-market business growth in China  Africa and Oceania coverage  Key account management  CRM, global pricing and analytics • Expand mid-market business • Grow in adjacent markets: Coal, Fertilizer and Cement • Manage global distribution • Develop commercial excellence more broadly Minerals by João Ney Colagrossi16
  17. 17. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We have solid achievements and priorities Current priorities2014 - 2015 Achievements Portfolio Development Hydraulic roll crusher range Vertical grinding mill range Next generation Lokotracks In-pit crushing plants •Advanced classification solutions •Next-generation crusher models •Complete in-the-pit solutions •Digitalization and remote monitoring Minerals by João Ney Colagrossi17
  18. 18. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Supply chain is significantly more agile and light EUR 30M assets reduction, EUR 45M annual savings Recycling supply chain Mining supply chain Aggregates supply chain Component fabrication Outsourced Component machining Outsourced Commissioning at customer site In-house Component fabrication Outsourced Component machining Outsourced Commissioning at customer site In-house Component fabrication Outsourced Component machining Outsourced Assembly, testing and painting (ATP) In-house Completed in 2013 (Dusseldorf) Completed in 2015 (Lachine & York) In progress (Matamata, 2013 Bawal, 2014)   18 Minerals by João Ney Colagrossi
  19. 19. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Continuously sizing ourselves to market activity 19 # Minerals employees 1,413 1,279 1,240 1,234 1,191 1,132 1,103 1,075 3,475 3,293 3,120 2,828 2,725 2,494 2,339 2,282 4,888 4,572 4,360 4,062 3,916 3,626 3,442 3,357 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2013 Dec 2014 Mar 2014 Jun 2014 Sep 2014 Dec 2015 Mar 2015 Jun 2015 Jul 2015 Aug SGA COGS 1,050 2,204 3,254 Minerals by João Ney Colagrossi
  20. 20. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Full-scope portfolio ranging from comminution to beneficiation We are addressing new markets, leveraging our existing products for adjacent growth Solutions for limestone quarries, fly-ash handling and ready mix Modular coal washeries supported with other products Potash and phosphates CoalCement Minerals by João Ney Colagrossi20
  21. 21. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Open-pit mining Comminution Beneficiation We are expanding our existing products for adjacent growth and competitiveness Complete in-the-pit solutions to expand our offering further upstream Next generation crusher models to improve our competitiveness in our current core New ultra-fine screens and hydro cyclones to expand our offering further downstream Minerals by João Ney Colagrossi21
  22. 22. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We are expanding our mid-market business Metso 21% 1 Competitor 12% 2 Competitor 14% 3 Competitor 13 % All others 40 % Mostly local mid-market players Global aggregates equipment market Key takeaways • 50+ % market captured by ~6 globally operating OEMs, while remaining 40-50% is shared by mostly local mid-market players • Mid-market segment growing faster than high-end segment, especially in emerging markets • So far Metso has been active in the mid-market segment in China (Shaorui and LiuGong JV) • Our plan is to expand our mid-market business to other relevant markets beyond China Minerals by João Ney Colagrossi22
  23. 23. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We are responding to the demand for new remote services with a new digital platform 23 New Remote ServicesConnected Equipment Data Remote … • Parts Scheduling • Preventative Maintenance • Expert Support • Alarms & Reports • Status & Performance • Process Optimization Metso New Digital Platform Internet of Things Minerals by João Ney Colagrossi
  24. 24. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Key takeaway # 3: We have a solid strategy • We are adjusting ourselves to the new market environment • Our strategy will enable us to grow and improve profitability despite market conditions: - Implementing an agile and customer centric operating model - Expanding our offering to adjacent markets - Continuously developing new technology 24 Minerals by João Ney Colagrossi
  25. 25. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 We are on our way to improving profitability Minerals by João Ney Colagrossi25 • Minerals has a strong market position in our three customer industries: Mining, Recycling and Aggregates • Short-term market outlook challenging in Mining and Recycling • Market outlook in Aggregates is more positive • Solid long-term fundamentals in all segments • We have been adjusting ourselves to the new market environment • Our strategy is to grow and improve profitability despite market conditions
  26. 26. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015
  27. 27. Appendix
  28. 28. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Our product and systems offering for Mining customers 28 Grinding mills Mining crushers Process equipment Bulk material handling Pyro processing Mining systems Minerals by João Ney Colagrossi
  29. 29. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Our product and systems offering for Aggregates customers 29 Crushers Screens and feeders Lokotracks Portable plants Mid-market products Aggregates systems Minerals by João Ney Colagrossi
  30. 30. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Our product, systems and services offering for Recycling customers 30 Texas Shredder shredder Lindemann shear Lindemann baler M&J waste pic Metal shredders Metal shears Metal balers Waste recycling Recycling services Recycling systems Minerals by João Ney Colagrossi
  31. 31. © Metso© Metso Capital Markets Day 2015Capital Markets Day 2015 Case: An integrated solution for Centinela mine Challenge • AMSA’s Centinela Mine in Chile was not reaching its designed plant capacity • The main bottleneck was the SAG mill stage, which was unable to handle full feed, especially with harder ore types • The mine wanted a turn-key solution from a single supplier Metso Solution • An integrated solution covering process studies, engineering, equipment, and plant construction • A clever tunnel design bypasses the SAG stage, the ore is crushed in 2 stages and fed directly to the ball mills • Space was restricted and interference to the production not allowed Results • The solution has proven to be successful in production • No downtime of operations as interventions were executed during planned maintenance shutdowns • Crushing capacity has exceed the guaranteed tonnage • The crushed ore size meets the required specification, further improving efficiency of the downstream comminution process • Optimum plant availability is guaranteed by Metso service team Minerals by João Ney Colagrossi31

×