Valmet Corp · OMXHEX:VALMT
Valmet — Finnish Industrial Week 2017
42 slides from Valmet's conference presentation, Jun 15, 2017
Slide 1: A more stable market environment
A more stable market environment Aki Niemi Area President, China June 15, 2017
Slide 2: Valmet in China
Valmet in China Contents 1 Valmet in China in brief 2 Market position, drivers and market review 3 Main competitors 4 Strategy and competitive edges 5 Summary 6 Appendix: References in China
Slide 3: China area overview
China area overview Focusing on businesses in pulp and paper industry Our business Our customers Our achievements • We serve customers by • Our customers are in leading • Large installed base in pulp providing technology, position in pulp and paper and paper industry automation and services for busi
Slide 4: Valmet offering in China
Valmet offering in China Comprehensive offering in pulp and paper industry Complete paper, board and tissue making lines, rebuilds and key components Complete fiber lines and recovery islands, rebuilds Complete Automation offering for mainly pulp and paper customers Valmet full scope service
Slide 5: Valmet's operations in China
Valmet’s operations in China Serving the pulp, paper and energy industries A technology and services company with a unique customer offering – also including full automation offering for pulp, paper, energy and other selected process industries. About 1,700 employees serving customers through a
Slide 6: Valmet's milestones in China
Valmet’s milestones in China 2015 Valmet acquire Metso’s Process Automation Business 2014 Starts serving customers with new company name - Valmet 2013 Fabrics Tianjin extended 2010 Zibo service center 2010 Fabrics Tianjin 2009 Guangzhou service center 2008 Metso Paper Technology (Xi’an) 2006 Metso P
Slide 7: Local presence in China
Local presence in China Factory • Shanghai (3) • Xi’an • Tianjin Beijing Service center Tianjin • Wuxi Ji’nan Zibo • Guangzhou Xi’an Shanghai • Zibo Wuxi Chengdu Office Taiwan • Beijing Guangzhou • Ji’nan • Chengdu • Guangzhou • Taiwan 7 June 15, 2017 © Valmet | Aki Niemi, Area President, China
Slide 8: Strong regional customer base across China
Strong regional customer base across China Serving pulp, paper and energy customers Services Pulp and Energy Paper Automation Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 8 June 15, 2017 © Valmet | Aki Niemi, Area
Slide 9: The share of China in Valmet
The share of China in Valmet 2016 figures China is an important market for new board and tissue machines China’s relative weight in Valmet’s business is balanced Orders received Net sales Personnel Asia- Pacific 6% South Asia- Asia- North America Pacific North Pacific North China America 5% 12%
Slide 10: Market position, drivers and market review
Market position, drivers and market review
Slide 11: Market drivers
Market drivers Services Automation Pulp Paper • Growth supported • Increasing demand • Increasing standard • Developing by significant for saving costs of of living in Asia markets, e.g. amount of new raw materials, driving demand for China, expected to capacity installed energy and labor paper, boa
Slide 12: China: CPA says paper and board production up marginally in 2016; consumption stagnant
China: CPA says paper and board production up marginally in 2016; consumption stagnant BEIJING, May 17, 2017 (RISI) – China's paper and board (P&B) production saw minor growth in 2016, but consumption was nearly flat, corresponding with the country’s economic slowdown. According to the annual report
Slide 13: Development of orders received and net sales
Development of orders received and net sales Orders received Orders received and net sales 700 600 have been recovering the past 2 631 500 years 400 480 428 – Record order intake and net sales years 300 345 358 342 279 just after financial crisis 200 241 244 100 92 – Strong stimulus-driven investm
Slide 14: Changes in the market environment
Changes in the market environment Market • Growth opportunities in services, market growth mainly in Target market size services (EUR million) environment • Fiber market will remain at about the same level as today 2,250 2,290 • Bioenergy market is expected to grow, but not in focus now. 120 130 540
Slide 15: Main competitors
Main competitors Valmet <>
Slide 16: Valmet's market position in China
Valmet’s market position in China Services Automation Pulp Paper ~9% ~20% ~30% ~50% Valmet’s market share of target Valmet’s market share of target Valmet’s market share of target Valmet’s market share of target market market market market The service market is Valmet #1-3 in Valmet #1 in Pulp in Va
Slide 17: Competitors
Competitors Number of competitors in all business segments Global 1st tier competitors expand local presence Global 2nd tier competitors finding cooperation with local suppliers for new installations and actively competing with key components Local competitors are seeking technology developmen
Slide 18: Strategy and competitive edges
Strategy and competitive edges
Slide 19: We achieve our strategic targets through the implementation of must-wins
We achieve our strategic targets through the implementation of must-wins The facts Our way Forward • Valmet has established strong position in • Maintain our leading market position in pulp and paper industry capital business with best technology. • Market • Service business growth with agreements
Slide 20: Shared Journey Forward
Our core commitments Services offering Safety comes first Reliability Close to you Shared Journey Performance Forward Solutions to Valmet’s way to serve your needs People you New Technology can trust Committed to moving your performance forward 20 June 15, 2017 © Valmet | Aki Niemi, Area President,
Slide 21: Our services offering
Our services offering Reliability Performance New Technology Spare parts Production Process and and components consumables automation upgrades Maintenance Process support Automation projects and shutdown and optimization management Outsourcing Industrial Internet services and remote solutions 21 Jun
Slide 22: Shared Journey Forward with JiAn
Shared Journey Forward with JiAn Develop the partnership Strengthen Valmet Internal coordination Work closely with customers all levels Corporate Account management team built for More communication with customer top customer group management Dedicate Mill team Set up for JiAn mill – Talk abou
Slide 23: Our Industrial Internet offering consists of four building blocks
Our Industrial Internet offering consists of four building blocks Valmet experts Applications and services Ecosystem Automation platform Process technology Customer’s process 23 June 15, 2017 © Valmet | Aki Niemi, Area President, China
Slide 24: Our Industrial Internet capabilities are utilized already today
Our Industrial Internet capabilities are utilized already today 430 250 85 >100 Remote Automation Performance Integrations with ERP support security agreements with and manufacturing agreements agreements remote execution systems connections (MES) Applications and services Ecosystem • 340 paper • 16
Slide 25: Valmet's competitive edges
Valmet’s competitive edges Why does Valmet have premium pricing? Value of our technology and engineering Value of our quality of manufacturing Value of our smooth start-up and lower OPEX Value of our services 25 June 15, 2017 © Valmet | Aki Niemi, Area President, China
Slide 26: Capitalizing the service potential
Capitalizing the service potential Installed base Large installed base providing good opportunity to increase services. Key Account Strengthen Key Account Management to improve contribution from key Management accounts. Agreement- Continue to develop agreement-based business. based business Cost Cos
Slide 27: How to improve profitability in China?
How to improve profitability in China? Competitive cost of raw Manufacturing efficiency and materials and other procurement WTO China is still competitive sourcing Further optimize capacity cost area Basic productivity development Increase the share of Modular manufacturing subcontracting
Slide 28: Summary
Summary Valmet <>
Slide 29: Summary
Summary The service culture is developing and large installed base offers good possibilities to grow in services Board and tissue consumption is growing – Supported by megatrends – Constant partial overcapacity is part of market behavior – Improved customer profitability has normalized investmen
Slide 30: Appendix: References in China
Appendix: References in China
Slide 31: Good order intake in 2016
Good order intake in 2016 Balanced business and stronger market position Zibo Green Energy New Energy Co., Ltd. – Valmet's first Waste to Energy boiler plant delivery to Zibo, Shandong Province, China – Heat and power production will start by the end of 2017 Nine Dragons Industries Co., Ltd. – T
Slide 32: Good order intake in 2016
Good order intake in 2016 Balanced business and stronger market position (cont’d) Heze Baishida Wood Co., Ltd – Two defibrator systems – After rebuilds the mill will produce 18 ton/hour bd (bone dry) fiberboard Services business orders: – Optimization and rebuilds to three containerboard machine
Slide 33: New start-ups in 2016 & 2017 Q1
New start-ups in 2016 & 2017 Q1 Stora Enso Beihai – BM1, web width 7,000mm, design speed 1,200m/min， start-up：May, 2016 – BCTMP line, 650 ton/day, start-up: Dec. 2016 Asia Symbol (Guangdong) Paper Co., Ltd. – PM 12, located in Xin Hui, Guangdong province and produces top quality fine papers – Wi
Slide 34: New start-ups in 2016 & Q1/2017
New start-ups in 2016 & Q1/2017 Cont’d Hengan International Group Company Limited – TM19 & 20, the 5th and 6th Advantage DCT 200HS tissue making line supplied by Valmet – Located in Wuhu, Anhui province, start-up: August and December in 2016 Lee & Man Paper Manufacturing Ltd. – Four Advantage DC
Slide 35: Our success in moving forward in China
Our success in moving forward in China New development in 2016 New Office Building of Shanghai – Construction area 5,427 m2, height of building 20.6m – 330 seats, total 53 meeting rooms – Safety and Quality are the First – Green building 35 June 15, 2017 © Valmet | Aki Niemi, Area President, China
Slide 36: We support local communities in which we operate
We support local communities in which we operate Since 2009, Valmet Scholarships and technical seminars have helped domestic university students and professionals continuously – In 2016, scholarship to Shaanxi University of Science and Technology, Qilu University, Nanjing Forestry University – In
Slide 37: Pulping references in China
Pulping references Black Dragon Paper, Qiqihar in China Jilin Paper Jiamusi, Heilongjiangl Heilongjiang Dare Wood Jilin Hongshi Jilin Helong Yingkou Paper Zhalantun Shandong Chenming Xinjiang Bositenghu Shandong Huatai April Rizhao Xinjiang Tianxi Sun Paper Bohui Paper Shandong MCC Yinhe Shandong Si
Slide 38: Paper, Board and Tissue machine references in China
Paper, Board and Tissue machine references Jilin Paper Black Dragon Paper, Qiqihar Jia Mu Si Paper Mill in China Jilin Shixian Paper, Tumen MCC Paper Yinhe Shandong Chenming Hebei Longteng PanAsia Shandong Huatai Changle Numat Paper Shandong Sun Paper Shandong Bohui Paper MCC Paper Yinhe Shandong Si
Slide 39: Automation references in China
Automation references in China Mudanjiang Hengfeng Jilin Chenming Liaoning Goldenye Tangshan C&S ND Tianjing April SSYBOL Tangshan Yintai Shandong Huatai Shandong Chenming Heibe Huatai Zhengda Shandong Changle Shandong Quanlin Weifang HengAn Shanxi Qiangwei MCC Yinhe Shandong Bohui, Oumu Puyang Long
Slide 40: Good recognition from customers in China
Good recognition from customers in China “I’m especially impressed by two technological highlights of the machine. One is the fabric insertion unit. With this solution no cantilevering beams are needed and the whole wet end is more compact. The other is the VacuMaster high-vacuum suction box tha
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
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