Outotec Oyj : Outotec's Interim Report January-June 2013 OUTOTEC OYJ INTERIM REPORT JULY 31, 2013 AT 9.00 AM INTERIM REPORT JANUARY-JUNE 2013 Strong services sales growth, less large orders Reporting period January-June 2013 in brief (2012 corresponding period): *Order intake: EUR 856.7 (1,160.8) million, -26% *Order backlog: EUR 1,761.3 (2,218.4) million, -21% *Sales: EUR 1,014.3 (934.8) million, +9% *Services sales: EUR 238.4 (190.2) million, +25% *Operating profit from business operations^1): EUR 78.3 (75.1) million, +4% April-June 2013 in brief (2012 corresponding period): *Order intake: EUR 365.6 (735.5) million, -50% *Sales: EUR 511.4 (524.4) million, -2% *Services sales: EUR 134.6 (100.7) million, +34% *Operating profit from business operations^1): EUR 43.3 (44.5) million, -3% Financial guidance for 2013 reiterated Based on the strong order backlog, current market outlook and customer tendering activity, the management expects that in 2013: *Sales will be approximately EUR 2.1-2.3 billion, and *Operating profit margin from business operations^1) will be approximately 9.5-10.5% ^1) Excluding one-time items and purchase price allocations (PPA) amortizations Summary of key figures Q2 Q2 Q1-Q2 Q1-Q2 Last 12 Q1-Q4 2013 2012 2013 2012 months 2012 Sales, EUR million 511.4 524.4 1,014.3 934.8 2,166.9 2,087.4 Gross margin, % 20.9 20.4 20.0 20.9 20.4 20.8 Operating profit from business 43.3 44.5 78.3 75.1 196.9 193.8 operations, EUR million Operating profit from business 8.5 8.5 7.7 8.0 9.1 9.3 operations, % Operating profit, EUR million 39.9 40.8 71.5 68.4 187.4 184.3 Operating profit, % 7.8 7.8 7.1 7.3 8.6 8.8 Profit before taxes, EUR 37.8 40.1 67.7 67.9 179.6 179.7 million Net cash from operating 55.2 57.0 21.6 66.9 31.8 77.1 activities, EUR million Net interest-bearing debt at -192.4 -334.7 -192.4 -334.7 -192.4 -264.7 the end of the period, EUR million Gearing at the end of period, -42.5 -81.8 -42.5 -81.8 -42.5 -56.0 % Working capital at the end of -143.8 -280.5 -143.8 -280.5 -143.8 -191.3 the period, EUR million Return on investment, % 38.4 33.8 30.2 30.0 40.0 37.0 Return on equity, % 24.0 28.6 20.8 23.5 29.8 29.4 Order backlog at the end of 1,761.3 2,218.4 1,761.3 2,218.4 1,761.3 1,947.1 the period, EUR million Order intake, EUR million 365.6 735.5 856.7 1,160.8 1,780.3 2,084.4 Personnel, average for the 4,979 4,384 4,902 4,202 4,805 4,456 period Earnings per share, EUR 0.15 0.15 0.27 0.26 0.71 0.70 President and CEO Pertti Korhonen: "I am very pleased that despite the market uncertainties, the demand for Outotec's services grew strongly and the demand for equipment as well as for small-to-mid sized process solutions continued to be solid. Consequently, we were able to grow the amount of unannounced orders by some 7% compared to the comparison period. The uncertainty about global economy and declined metal prices slowed down our customers' investment decision making and we experienced delays in closing large orders. Due to these delays, and the fact that the comparison period's order intake was unusually high attributable to the Cristal Global order for EUR 350 million, our total order intake in the second quarter was clearly lower. However, we did not lose any large prospects. Our sales grew in line with our plans due to very strong service sales growth and smooth project delivery. The operating profit margin in the first half of 2013 was lower than in the comparison period due to certain services projects as well as timing of project completions and license fee income. Going forward, our focus is on growing the order intake to secure a strong order backlog and to continue to grow our sales. We expect the demand for services including long-term service contracts to grow further and anticipate the demand for process equipment to continue solid. I expect services to contribute favorably to the profitability in the second half of the year due to the growth in service order intake and increased resources. Number of sales prospects and the overall value of our sales funnel remains on a high level. We continue to see very good large order prospects particularly in environmental area and we are optimistic about being able to close significant large orders in the coming quarters. Due to the continued uncertainty of the market, we will take further actions to improve profitability through supply savings and cost management. Since 2010 we have been successfully developing our operating model as a platform for growth, and as a further step on this path, the new business structure and organization became effective as of July 1. With this change, we seek to continue to grow our business in all geographic regions and business areas." CHANGES IN SEGMENT REPORTING Outotec's two new business areas will form the IFRS 8 operating segments. The new reporting segments will be effective starting from the January-September Interim Report 2013, which will be published on October 30, 2013. Restated Q1-Q2 2013 figures will be published by October 1. > Stock exchange release on April 9, 2013. FREE SHARE ISSUE (SPLIT) The shares issued in the free share issue (split) approved by Outotec's AGM on March 26, 2013, were entered in the share register on April 2, 2013. The total amount of Outotec's shares increased to 183,121,492 as shareholders were issued with three new shares for each old share. The free share issue (split) did not affect the company's share capital or capital structure. Share-based key figures have been restated to reflect the increased number of shares. > Stock exchange release on April 2, 2013. CHANGES IN THE OPERATING STRUCTURE From July 1, 2013, Outotec's business structure consists of three geographical regions and two business areas. The regions are the Americas, EMEA (including Europe, the Middle East, Africa and CIS countries) and APAC (including Asia Pacific, China and India), and the business areas are Metals, Energy & Water and Minerals Processing. Specific focus on the development of services will continue as both business areas will deliver lifecycle solutions with continuously growing services element. > Stock exchange release on April 9, 2013. DISSOLUTION OF OUTOTEC MANAGEMENT OY On May 8, 2013, Outotec announced the dissolution of Outotec Management Oy (Executive Board members' incentive program) through a share exchange. Outotec's Board of Directors used the Annual General Meeting's authorization and allocated 442,115 Outotec Oyj shares to the shareholders of Outotec Management Oy against the shares of Outotec Management Oy. After the share exchange, Outotec held directly a total of 1,815,193 (before dissolution 2,257,308) of the company's own shares and indirectly through Outotec Management Oy a total of 813,736 of the company's own shares. > Stock exchange release on May 8, 2013. FURTHER INFORMATION Outotec Oyj Pertti Korhonen, President and CEO tel. +358 20529211 Mikko Puolakka, CFO tel. +358 20529 2002 Rita Uotila, Vice President - Investor Relations tel. +358 20529 2003, mobile +358 400954 141 Format for e-mail addresses: firstname.lastname@example.org BRIEFING Date: Wednesday, July 31, 2013 Time: 2.00 pm (Finnish time) Venue: Hotel Scandic Simonkenttä, Simonkatu 9, Helsinki Joining via webcast You may follow the briefing via a live webcast at www.outotec.com. The webcast will be recorded and published on Outotec's website for on-demand viewing. Joining via teleconference You may also join the briefing by telephone. To register as a participant in the teleconference and Q&A session, please dial 5 to 10 minutes before the start of the event: SE: +46850 556483 FI: +358 9817 10461 UK: +44203364 5372 US: 855716 1592 (US only) Contact information is gathered for registration purposes only and is not used for commercial purposes. FINANCIAL CALENDAR 2013 *Interim Report for January-September 2013: October 30 (according to the new segment reporting structure published on April 9, 2013) *Field trip to Outotec's R&D center in Frankfurt: September 6 *Capital Markets Day - Dec 4, 2013 in London. Details to be published at a later date. DISTRIBUTION NASDAQ OMX Helsinki Ltd Main media www.outotec.com Outotec provides leading technologies and services for the sustainable use of Earth's natural resources. As the global leader in minerals and metals processing technology, Outotec has developed over decades many breakthrough technologies. The company also provides innovative solutions for industrial water treatment, the utilization of alternative energy sources and the chemical industry. With a global network of sales and service centers, research facilities and approximately 5,000 experts, Outotec generated annual sales of approximately EUR 2 billion in 2012. Outotec shares are listed on NASDAQ OMX Helsinki. www.outotec.com Outotec's Interim Report January-June 2013 ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Outotec Oyj via Thomson Reuters ONE HUG#1720024
Outotec Oyj : Outotec's Interim Report January-June 2013
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