Metso to continue its transformation by adopting a new strategy focusing on growth in its higher-margin businesses - Seite 2

In flow control, the best opportunities are seen in continued expansion of the addressable market in oil & gas, as well as in mining flow control. Metso's current valve and pump offering offers a good position to grow in both of these markets.

In aggregates, we will continue to leverage our strong position in the global market and the ongoing growth being driven by a variety of megatrends. Our initiatives will prioritize developing  our footprint, improving profitability, as well as developing our mid-market offering and global distribution.

The mining capital business faces lower demand over the short term, while its mid- and long-term prospects are supported by megatrends that are set to increase demand for more efficient technologies and process know-how. Metso's short-term focus here will be to further improve the competitiveness of its offering and to develop its operating model for higher operational and capital efficiency. Development work on intelligent solutions aimed at improving customers' process efficiency in selected areas of the minerals processing offering will also be accelerated.

Metso will continue to develop leaner operating models with an even stronger customer focus, achieve cost savings, improve its business model by growing its higher-margin products and services businesses, and improve its capital efficiency across the board. In addition, operational excellence will be driven by developing common global platforms, processes, and operational approaches in sales and support functions.

Metso's policy of paying at least 50% of annual earnings per share as dividend will remain unchanged. Metso will also aim to maintain a balance sheet structure that supports its current investment grade credit rating.

Operating model

To ensure efficient execution of the new strategy, Metso will update its operating model to include three business areas:

- Services: providing primarily minerals customers with full-scope services solutions, ranging from spare and wear parts all the way to high-value adding performance services

- Flow Control: responsible for developing and growing both the valve offering mainly for oil & gas customers as well as pumps for mining customers by pursuing new opportunities in these markets

- Minerals: responsible for providing minerals processing solutions for mining customers and crushing and screening products for aggregates customers, as well as system deliveries

The new operating model will enable a clear improvement in management focus in each business, all of which have distinct opportunities and challenges, as well as different business models. In addition, it will enable Metso to react more rapidly to market demand and execute its plans more effectively, ultimately supporting profitable growth.