Valmet Corp · OMXHEX:VALMT
Valmet — Shareholder Meeting (March 2023)
24 slides from Valmet's shareholder meeting presentation, Mar 22, 2023
Slide 1: Moving forward as a stronger Valmet
Moving forward as a stronger Valmet Annual General Meeting 2023 Pasi Laine President and CEO
Slide 2: Content
Content 1 Valmet today 2 Financial development and progress in sustainability 3 Development of the businesses 4 Guidance and short-term market outlook 2 March 22, 2023 © Valmet | AGM 2023, CEO Review
Slide 3: Valmet today
Valmet today Valmet <>
Slide 4: The offering combines process technology, services and automation
The offering combines process technology, services and automation Board and paper technologies Pulp technologies Energy technologies • Board, paper and tissue production lines • Complete pulp mills • Heat and power generation • Rebuilds • Pulp mill processes • Air emission control • Machine sections
Slide 5: Our global presence creates a good platform for growth
Our global presence creates a good platform for growth >130 service centers >50 Production units 28 R&D centers 5 March 22, 2023 © Valmet | AGM 2023, CEO Review
Slide 6: Valmet is an acknowledged leader in sustainability
Valmet is an acknowledged leader in sustainability 360º approach to sustainability across value chain Environment We enhance circularity and environmental efficiency and reduce Environmental Engaged CO2 emissions through the entire value chain. Valmet aims to efficiency workplace enable fully carbon
Slide 7: Valmet's Way Forward
Valmet’s Way Forward Vision Continuous improvement and To become the global champion in serving our customers and in Strategy renewal moving the industries forward Valmet develops and supplies competitive and Must-Wins reliable process technologies, services and Customer excellence automation to t
Slide 8: Executive Team
Executive Team Pasi Laine Katri Hokkanen Julia Macharey Anu Salonsaari-Posti President and CEO CFO SVP, Human Resources and SVP, Marketing, Communications Operational Development and Sustainability Business lines Aki Niemi Emilia Torttila-Miettinen Sami Riekkola Jari Vähäpesola Simo Sääskilahti Busi
Slide 9: Financial development and progress in sustainability
Financial development and progress in sustainability
Slide 10: Valmet in 2022
Valmet in 2022 Net sales by segment Net sales by area Orders received EUR 5,194 million 12% 21% Net sales 32% EUR 5,074 million 16% Comparable EBITA 48% EUR 533 million 14% Comparable EBITA margin 10.5% 20% Order backlog 37% EUR 4,403 million Services North America Employees South America 17,548 Aut
Slide 11: Key figures
Key figures EUR million 2022 2021 Change Orders received 5,194 4,740 10% Order backlog1 4,403 4,096 7% Net sales 5,074 3,935 29% Comparable EBITA 533 429 24% % of net sales 10.5% 10.9% -0.4 pp EBITA 550 448 23% Operating profit (EBIT) 436 399 9% % of net sales 8.6% 10.1% -1.5 pp Adjusted earnings pe
Slide 12: Valmet's development since 2013
Valmet’s development since 2013 Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%) 5,5 5,5 600 12% 5,0 5,0 4,5 4,5 500 10% 4,0 4,0 400 8% 3,5 3,5 3,0 3,0 300 6% 2,5 2,5 2,0 2,0 200 4% 1,5 1,5 1,0 1,0 100 2% 0,5 0,5 0,0 0,0 0 0% 2013 2016
Slide 13: Valmet has paid attractive dividend
Valmet has paid attractive dividend Dividend per share, EUR Payout target at least 50% of net Payout % 1,30 profit Payout % target (at least 50% of net profit) 1,20 Target has been exceeded every year 81% 0,90 68% 76% 68% 0,80 68% Constant dividend growth 64% 59% 61% 58% 0,65 0,55 0,42 Total p
Slide 14: Financial targets
Financial targets Growth • Net sales for Services and Automation segments to grow over two times the market growth • Net sales for Process Technology segment to exceed market growth Profitability Comparable EBITA: 12–14% ROCE • Comparable return on capital employed (ROCE) before taxes1: at least 15%
Slide 15: Progress in sustainability 2022
Progress in sustainability 2022 Environment Social Governance We We We • engaged the high-emitting • completed 88% of the 2,800 • reached an 87% completion suppliers into a CO2 reduction action plans made based on the rate in the global organization program OurVoice employee survey for the mandatory
Slide 16: Development of the businesses
Development of the businesses
Slide 17: Services business line
Services business line Solid growth based on the widest offering and presence close to customers Focus on pulp, paper and energy customers Orders received increased to EUR 1,756 (1,481) million and net sales to EUR 1,606 (1,360) million Orders received increased in all geographical areas and i
Slide 18: Flow Control business line
Flow Control business line A very good start as part of Valmet A wide base of customers in key sectors Pulp & Paper Refining & Chemicals Renewable energy & Gases Metals & Mining Flow Control 772 In Q2-Q4/2022 orders received amounted to EUR Orders received (EUR million) 681 576 576 milli
Slide 19: Automation Systems business line
Automation Systems business line Strong performance continued A leading position in Pulp & Paper customer segment and a growing customer base in other process industries Orders received increased to EUR 505 (467) million and net sales to EUR 489 (412) million Strong emphasis on innovations con
Slide 20: Paper business line
Paper business line Several new orders and awarded innovations World-leading technology for board, tissue and paper making Orders received decreased to EUR 1,285 (1,634) million and net sales increased to EUR 1,347 (1,141) million Valmet’s and Metsä Group’s joint pilot plant for Paper 1,634 mo
Slide 21: Pulp and Energy business line
Pulp and Energy business line Important milestones in delivery projects and several new orders Technology solutions for pulp and energy production, biomass conversion and emission control Orders received decreased to EUR 1,072 (1,160) million and net sales increased to EUR 1,081 (1,022) million
Slide 22: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 23: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2023 Guidance Valmet estimates that net sales in 2023 will increase in comparison with 2022 (EUR 5,074 million) and Comparable EBITA in 2023 will increase in comparison with 2022 (EUR 533 million). Short-term market outlook Q1/2022 Q2/2022 Q3/2022
Slide 24: FORWARD
FORWARD