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    Nicholas Housden • RBC Capital Markets

    Nicholas Housden's questions to Metso Oyj (OUKPY) leadership

    Nicholas Housden's questions to Metso Oyj (OUKPY) leadership • Q1 2025

    Question

    Nicholas Housden of Royal Bank of Canada inquired if the positive organic order growth in Aggregates signals a bottoming of the cycle and asked about capacity utilization following recent temporary layoffs.

    Answer

    President and CEO Sami Takaluoma agreed that it seems the worst is behind for the Aggregates cycle, citing positive signals in the U.S. and Europe. Regarding capacity, he explained that the temporary layoff system provides flexibility to quickly bring skilled workers back as needed, and the increased order backlog now provides a good amount of work for employees.

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    Nicholas Housden's questions to Metso Oyj (OUKPY) leadership • Q1 2024

    Question

    Nicholas Housden asked for an outlook on cash flow development for the year and questioned the degree of operating leverage remaining in the Aggregates business, given its strong margin performance in a downturn.

    Answer

    CFO Eeva Sipilä indicated that cash flow will be supported by profitability and a focus on inventory reduction. Regarding Aggregates, she acknowledged the impressive 17% margin and noted that while the business has previously hit 18% with higher volumes, the current lack of volume limits leverage, though early cost actions have helped maintain resilience.

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    Nicholas Housden's questions to Metso Oyj (OUKPY) leadership • Q1 2024

    Question

    Nicholas Housden from RBC Capital Markets asked for an outlook on cash flow development for the year and questioned the degree of operating leverage remaining in the Aggregates business given its strong margin performance in a downturn.

    Answer

    CFO Eeva Sipilä stated that cash flow will be supported by profitability and a focus on inventory reduction, which offers an opportunity for improvement. For Aggregates, she acknowledged the strong 17% margin was achieved despite lacking volume-driven operational leverage, crediting early cost actions. She noted that while the business has previously hit 18% with more leverage, achieving higher margins would be easier with a pickup in the European economy.

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    Nicholas Housden's questions to Otis Worldwide Corp (OTIS) leadership

    Nicholas Housden's questions to Otis Worldwide Corp (OTIS) leadership • Q1 2025

    Question

    Nicholas Housden of RBC Capital Markets asked for a breakdown of the significant one-off costs, which totaled over $80 million, that were adjusted out of the company's operating profit in the quarter.

    Answer

    CFO Cristina Mendez detailed the one-time adjustments. The largest item was a $52 million true-up related to a German tax case indemnity to RTX. Additionally, there were $21 million in legal and settlement costs for a few large, historical cases, and a $10 million impairment for assets held for sale. She noted these were separate from the ongoing restructuring and transformation costs.

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    Nicholas Housden's questions to Otis Worldwide Corp (OTIS) leadership • Q4 2024

    Question

    Nicholas Housden requested a breakdown of the 4.2% installed base growth, asking to quantify the contributions from New Equipment conversions, retention, and modernization conversions, which he suspected were becoming a larger factor.

    Answer

    Executive Judith Marks clarified that modernization can be 'on-portfolio' (retention) or 'off-portfolio' (new growth). She stated that to date, the contribution from off-portfolio modernization conversions to the 4.2% growth has been 'very small.' The growth is still primarily driven by traditional service conversions and recaptures, though she expects the off-portfolio mod contribution to grow significantly over time.

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