Slide 1: Financial Statements Review 2023
Orders received remained at the previous year’s level and amounted close to EUR 5.0 billion and Comparable EBITA increased to EUR 619 million in 2023 Financial Statements Review 2023 February 7, 2024 Pasi Laine, President and CEO Katri Hokkanen, CFO
Slide 2: Agenda
Agenda Financial Statements Review 2023 1 2023 in brief 2 Development of the segments and the business lines 3 Financial development 4 Dividend proposal, guidance and short-term market outlook 2 February 7, 2024 © Valmet | Financial Statements Review 2023
Slide 3: 2023 in brief
2023 in brief Valmet <>
Slide 4: 2023 in brief
2023 in brief Orders received remained at the previous year’s level and amounted close to EUR 5.0 billion Net sales increased to EUR 5.5 billion Order backlog amounted close to EUR 4.0 billion Comparable EBITA increased to EUR 619 million and margin was 11.2% Gearing was 40% 4 February 7, 2024 © Val
Slide 5: Valmet in 2023
Valmet in 2023 Orders received Net sales Comparable EBITA (excl. Other) EUR EUR EUR EUR 110 EUR million 1,856 2,420 1,784 million 1,760 EUR million million million 312 EUR million EUR EUR 248 1,340 1,328 million million million Services Services Services Automation Automation Automation Process Tech
Slide 6: 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) (%) 6.0 6.0 700 12% 5.5 5.5 5.0 5.0 600 10% 4.5 4.5 500 4.0 4.0 8% 3.5 3.5 400 3.0 3.0 6% 2.5 2.5 300 2.0 2.0 4% 1.5 1.5 200 1.0 1.0 2% 0.5 0.5 100 0.0 0.0 201
Slide 7: Orders received remained at the previous year's level at EUR 4,955 million
Orders received remained at the previous year’s level and amounted to EUR 4,955 million in 2023 Orders received (EUR million) Orders received in 2023 by Area (EUR million) 2,200 5,500 6,000 2,000 5,000 5,194 4,955 1,800 4,500 5,000 771 698 1,600 4,000 4,000 711 Asia-Pacific 1,400 3,500 638 1,200 1,1
Slide 8: Stable business orders received totaled EUR 3,100 million in 2023
Stable business orders received totaled EUR 3,100 million in 2023 Orders received (EUR million) in stable business Organic growth* 4,500 ~7% 4,000 CAGR 3,500 3,100 3,000 2,837 2,500 1,340 1,081 1,875 1,947 2,000 1,701 1,772 1,519 1,609 1,367 416 467 1,500 386 415 337 368 1,055 248 1,000 1,756 1,760
Slide 9: Order backlog EUR 3,973 million at the end of 2023
Order backlog EUR 3,973 million at the end of 2023 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,403 4,500 4,096 3,973 ~15% 4,000 3,500 3,333 3,257 3,000 2,829 2,458 ~60% 2,500 2,283 ~25% 1,998 2,074 2,000 1,500 1,000 500 0 Process Technologies 2014 2015 2016 2017 2018 20
Slide 10: Acquisitions in 2023
Acquisitions in 2023 NovaTech Automation’s Process Solutions business • The acquisition strengthens Valmet’s Automation segment with a reliable batch distributed control system (DCS) • Net sales amounted to approximately USD 18 million in 2022 and the business operates in the United States and the B
Slide 11: Development of the segments and the business lines
Development of the segments and the business lines
Slide 12: Services: Orders received remained at the previous year's level
Services: Orders received remained at the previous year’s level at EUR 1,760 million in 2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) 2022: 2023: 2022: 2023: 2022: 2023: EUR 1,756 million EUR 1,760 million EUR 1,606 million EUR 1,784 mil
Slide 13: Services segment in 2023
Services segment in 2023 Orders received Orders received by Orders received by area Orders received by business customer segment EUR 1,760 million 6% 10% Net sales 20% EUR 1,784 million 30% 10% 32% 36% Employees 42% 16% 6,493 Market position 18% 37% 12% 12% 16% #1–2 Services 5% Board North America P
Slide 14: Automation: Orders received increased to EUR 1,340 million in 2023
Automation: Orders received increased to EUR 1,340 million in 2023 Automation segment includes Automation Systems and starting from Q2/2022 also Flow Control Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) 2022: 2023: 2022: 2023: 2022: 2023: EU
Slide 15: Flow Control: Orders received amounted to EUR 789 million in 2023
Flow Control: Orders received amounted to EUR 789 million in 2023 Orders received (EUR million)* Net sales (EUR million)* 2022: 2023: 2022: 2023: EUR 772 million* EUR 789 million EUR 717 million* EUR 777 million 900 900 800 800 576 789 777 700 700 551 600 681 600 660 628 625 611 590 593 576 500 555
Slide 16: Flow Control business line in 2023
Flow Control business line in 2023 Orders received by Orders received by area Orders received by business Orders received customer industry EUR 789 million 9% 12% Net sales 28% 20% 10% EUR 777 million 9% 34% Employees 16% 2,841 10% 64% 36% 10% Market position 43% #1 Pulp and Paper #1–2 Industrial Ga
Slide 17: Automation Systems: Orders received increased to EUR 551 million
Automation Systems: Orders received increased to EUR 551 million in 2023 Orders received (EUR million) Net sales (EUR million) 2022: 2023: 2022: 2023: EUR 505 million EUR 551 million EUR 489 million EUR 551 million 600 551 600 551 505 489 500 467 500 416 415 402 412 386 393 400 368 400 357 337 335 3
Slide 18: Automation Systems business line in 2023
Automation Systems business line in 2023 Orders received by industry Orders received by area Orders received by product Orders received EUR 551 million 10% 20% 25% Net sales 31% 10% EUR 551 million 5% Employees 57% 23% 2,330 69% Market position 52% #1–3 Pulp and Paper Pulp and Paper North America Di
Slide 19: Process Technologies: Orders received decreased to EUR 1,856 million
Process Technologies: Orders received decreased to EUR 1,856 million in 2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) 2022: 2023: 2022: 2023: 2022: 2023: EUR 2,356 million EUR 1,856 million EUR 2,428 million EUR 2,420 million EUR 145 mil
Slide 20: Pulp and Energy business line: Orders received decreased to EUR 854 million
Pulp and Energy business line: Orders received decreased to EUR 854 million in 2023 Orders received (EUR million) Net sales (EUR million) 2022: 2023: 2022: 2023: EUR 1,072 million EUR 854 million EUR 1,081 million EUR 1,067 million 1,600 1,600 1,400 1,344 1,400 1,125 1,160 1,200 1,072 1,200 1,081 1,
Slide 21: Pulp and Energy business line in 2023
Pulp and Energy business line in 2023 Orders received Orders received by industry Orders received by area Orders received by scope EUR 854 million 5% Net sales 25% 13% 22% EUR 1,067 million 43% Employees 57% 1,948 9% 62% 16% Market position 48% #2 Pulp #1–3 Energy Pulp North America Complete mills E
Slide 22: Paper business line: Orders received decreased to EUR 1,002 million
Paper business line: Orders received decreased to EUR 1,002 million in 2023 Orders received (EUR million) Net sales (EUR million) 2022: 2023: 2022: 2023: EUR 1,285 million EUR 1,002 million EUR 1,347 million EUR 1,353 million 1,800 1,800 1,634 1,600 1,600 1,347 1,353 1,400 1,285 1,400 1,200 1,200 1,
Slide 23: Paper business line in 2023
Paper business line in 2023 Orders received Orders received by paper grade Orders received by area Orders received by scope EUR 1,002 million 7% 17% Net sales 26% 7% EUR 1,353 million 33% 49% Employees 4,759 27% 8% Market position 18% 22% 86% #1 Tissue #1 Board Board New installments North America #
Slide 24: Valmet's development to a more stable company with more diversified industry exposure
Valmet's development to a more stable company with more diversified industry exposure Orders received (EUR million) • Valmet’s orders received from energy and other process industries amounted to over EUR 1.3 billion in 2023 4,955 • Since 2013 Valmet’s orders received have grown 1,319 organically an
Slide 25: Financial development
Financial development Valmet <>
Slide 26: Q4/2023 in brief
Q4/2023 in brief Orders received decreased to close to EUR 1.2 billion Net sales remained at the previous year’s level and amounted close to EUR 1.5 billion Order backlog amounted close to EUR 4.0 billion Comparable EBITA decreased to EUR 183 million and margin was 12.2% Gearing was 40% 26 February
Slide 27: Key figures
Key figures EUR million Q4/2023 Q4/2022 Change 2023 2022 Change Orders received 1,155 1,385 -17% 4,955 5,194 -5% Order backlog1 3,973 4,403 -10% 3,973 4,403 -10% Net sales 1,499 1,540 -3% 5,532 5,074 9% Comparable EBITA 183 196 -7% 619 533 16% % of net sales 12.2% 12.7% -0.5 pp 11.2% 10.5% 0.7 pp EB
Slide 28: Services segment key figures
Services segment key figures Q4 2023 in brief Year 2023 in brief EUR million Q4/2023 Q4/2022 Change EUR million 2023 2022 Change Orders received 404 418 -3% Orders received 1,760 1,756 0% Net sales 508 505 1% Net sales 1,784 1,606 11% Comparable EBITA 91 95 -4% Comparable EBITA 312 237 32% % of net
Slide 29: Automation segment key figures
Automation segment key figures Q4 2023 in brief Year 2023 in brief EUR million Q4/2023 Q4/2022 Change EUR million 2023 2022 Change Orders received 319 324 -1% Orders received 1,340 1,081 24% Net sales 375 363 3% Net sales 1,328 1,040 28% Comparable EBITA 79 78 2% Comparable EBITA 248 190 30% % of ne
Slide 30: Process Technologies segment key figures
Process Technologies segment key figures Q4 2023 in brief Year 2023 in brief EUR million Q4/2023 Q4/2022 Change EUR million 2023 2022 Change Orders received 432 644 -33% Orders received 1,856 2,356 -21% Net sales 615 672 -8% Net sales 2,420 2,428 0% Comparable EBITA 25 38 -33% Comparable EBITA 110 1
Slide 31: Segment key figures
Segment key figures Orders received, EUR million Q4/2023 Q4/2022 Change 2023 2022 Change Services 404 418 -3% 1,760 1,756 0% Automation 319 324 -1% 1,340 1,081 24% Process Technologies 432 644 -33% 1,856 2,356 -21% Total 1,155 1,385 -17% 4,955 5,194 -5% Net sales, EUR million Q4/2023 Q4/2022 Change
Slide 32: Comparable gross profit and SG&A expenses development
Comparable gross profit and SG&A expenses development Comparable gross profit Comparable SG&A expenses (EUR million and % of net sales) (EUR million and % of net sales) 1,800 30% 1,800 30% 25.2% 25.8% 24.6% 24.9% 24.2% 1,500 22.1% 23.1% 23.1% 23.0% 25% 1,500 25% 19.1% 1,429 1,200 1,263 20% 1,200 17.
Slide 33: Cash flow provided by operating activities and net working capital
Cash flow provided by operating activities and net working capital Cash flow provided by operating activities (EUR million) Net working capital and orders received (EUR million) 532 482 5,194 4,955 4,740 3,986 3,722 3,653 352 3,272 3,071 3,139 295 2,878 291 284 236 246 4% -82 191 -353 -238 -294 -387
Slide 34: Net debt and gearing increased compared with 2022
Net debt and gearing increased compared with 2022 Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio 1,200 60% 1.60 1.46 1,027 1,000 50% 1.20 0.84 0.90 800 40% 40% 0.78 0.770.74 0.80 0.71 600 510 502 542 531 30% 0.49 428 0.35 21% 22% 345 23%21% 0.40 0.22 400 13% 18%20% 20% 15% 0.06 0.0
Slide 35: Capital employed, Comparable ROCE and EPS
Capital employed, Comparable ROCE and EPS Capital employed (EUR million) and Comparable return on capital Earnings per share (EPS) and Adjusted EPS, EUR employed (ROCE), before taxes (%) 23% 23% 2.37 22% 2.28 4,055 2.09 20% 3,308 1.54 17% 16% 1.35 15% 14% 1.01 1,808 13% 1,639 0.81 1,231 1,314 1,195
Slide 36: Dividend proposal, guidance and short-term market outlook
Dividend proposal, guidance and short-term market outlook
Slide 37: Dividend proposal
Dividend proposal Dividend policy 1.35 1.30 • Dividend payout at least 50% of net profit 1.20 81% 76% 0.90 Board of Directors’ dividend proposal 68% 68% 64% 0.80 68% 70% to the Annual General Meeting 59% 61% 58% 0.65 • EUR 1.35 dividend per share, which 0.55 represents 70% payout ratio 0.42 • The di
Slide 38: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2024 Guidance Valmet estimates that net sales in 2024 will remain at the previous year's level in comparison with 2023 (EUR 5,532 million) and Comparable EBITA in 2024 will remain at the previous year's level or increase in comparison with 2023 (EU
Slide 39: Q&A
Q&A 39 February 7, 2024 © Valmet | Financial Statements Review 2023
Slide 40: Upcoming events: Interim Review and Annual General Meeting
Interim Review, January– March 2024 April 24, 2024 www.valmet.com/investors Annual General Meeting 2024 March 21, 2024 www.valmet.com/investors 40 February 7, 2024 © Valmet | Financial Statements Review 2023
Slide 41: Important notice
Important notice IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Valmet (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). In
Slide 42: FORWARD
FORWARD