Slide 1: Orders received amounted to EUR 1,050 million and Comparable EBITA to EUR 121 million
Orders received amounted to EUR 1,050 million and Comparable EBITA to EUR 121 million in the first quarter Interim Review, January–March 2024 April 24, 2024 Pasi Laine, President and CEO Katri Hokkanen, CFO
Slide 2: Agenda
Agenda Interim Review, January–March 2024 1 Q1/2024 in brief 2 Development of the segments and the business lines 3 Valmet DNAe – the next generation Distributed Control System 4 Financial development 5 Guidance and short-term market outlook 2 April 24, 2024 © Valmet | Interim Review, January–March
Slide 3: Q1/2024 in brief
Q1/2024 in brief Valmet <>
Slide 4: Q1/2024 in brief
Q1/2024 in brief Orders received amounted to EUR 1,050 million Net sales decreased to EUR 1,212 million Order backlog amounted to EUR 3,790 million Comparable EBITA decreased to EUR 121 million and margin was 10.0% Gearing was 39% 4 April 24, 2024 © Valmet | Interim Review, January–March 2024
Slide 5: Valmet in Q1/2024
Valmet in Q1/2024 Orders received Net sales Comparable EBITA (excl. Other) EUR EUR 21 195 EUR EUR million million 497 406 EUR EUR million 527 million 60 EUR EUR million million 328 EUR 51 million 309 million million Services Services Services Automation Automation Automation Process Technologies Pro
Slide 6: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 Target 12–14% 5,532 5,423 10.9% 5,074 9.8% 11.2% 11.2% 8.9% 10.5% 7.7% 3,935 3,740 7.1% 3,547 6.7% 3,325 3,058 2,420 2,289 2,928 2,926 Comparable EBITA, % 2,613 2,428 3,112 3,134 2,473 6.2% Capital Business 2,646
Slide 7: Orders received decreased to EUR 1,050 million in Q1/2024
Orders received decreased to EUR 1,050 million in Q1/2024 Orders received (EUR million) Orders received in Q1/2024 by area 2,200 5,500 2,000 5,000 Asia-Pacific 1,800 4,500 8% North America 28% 1,600 4,000 China 9% 1,400 3,500 1,200 3,000 1,050 1,000 2,500 800 2,000 600 1,500 400 1,000 South America
Slide 8: Stable business orders received totaled EUR 2,987 million during the last twelve months
Stable business orders received totaled EUR 2,987 million during the last twelve months Orders received (EUR million) in stable business Organic growth* 4,500 ~6% 4,000 CAGR 3,500 3,100 2,987 3,000 2,837 2,500 1,340 1,081 1,277 1,875 1,947 2,000 1,701 1,772 1,519 1,609 1,367 416 467 1,500 386 415 33
Slide 9: Order backlog EUR 3,790 million at the end of Q1/2024
Order backlog EUR 3,790 million at the end of Q1/2024 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,403 4,500 4,096 3,973 ~15% 4,000 3,790 3,500 3,333 3,257 3,000 2,829 2,458 ~55% 2,500 2,283 1,998 2,074 ~30% 2,000 1,500 1,000 500 0 Process Technologies 2014 2015 2016 201
Slide 10: Development of the segments and the business lines
Development of the segments and the business lines
Slide 11: Services: Orders received decreased to EUR 527 million in Q1/2024
Services: Orders received decreased to EUR 527 million in Q1/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2023: Q1/2024: Q1/2023: Q1/2024: Q1/2023: Q1/2024: EUR 577 million EUR 527 million EUR 389 million EUR 406 million EUR 63 milli
Slide 12: Automation: Orders received decreased to EUR 328 million in Q1/2024
Automation: Orders received decreased to EUR 328 million in Q1/2024 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) Q1/2023: Q1/2024: Q1/2023: Q1/2024: Q
Slide 13: Flow Control: Orders received amounted to EUR 194 million in Q1/2024
Flow Control: Orders received amounted to EUR 194 million in Q1/2024 Orders received (EUR million)* Net sales (EUR million)* Q1/2023: Q1/2024: Q1/2023: Q1/2024: EUR 217 million EUR 194 million EUR 188 million EUR 188 million 900 900 800 800 700 576 789 766 700 777 777 551 600 681 600 660 628 625 611
Slide 14: Automation Systems: Orders received decreased to EUR 134 million in Q1/2024
Automation Systems: Orders received decreased to EUR 134 million in Q1/2024 Orders received (EUR million) Net sales (EUR million) Q1/2023: Q1/2024: Q1/2023: Q1/2024: EUR 175 million EUR 134 million EUR 116 million EUR 121 million 600 551 600 551 556 505 511 489 500 467 500 416 415 402 412 386 393 40
Slide 15: Process Technologies: Orders received decreased to EUR 195 million in Q1/2024
Process Technologies: Orders received decreased to EUR 195 million in Q1/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2023: Q1/2024: Q1/2023: Q1/2024: Q1/2023: Q1/2024: EUR 584 million EUR 195 million EUR 628 million EUR 497 million
Slide 16: Actions to adapt to lower market activity in Process Technologies segment
Actions to adapt to lower market activity in Process Technologies segment • Operational model in Process Technologies is based on low Capacity costs (% of net sales) capacity costs, which provides flexibility • Restructuring actions were completed in Pulp and Energy and Paper business lines, leading
Slide 17: Pulp and Energy business line: Orders received decreased to EUR 57 million in Q1/2024
Pulp and Energy business line: Orders received decreased to EUR 57 million in Q1/2024 Orders received (EUR million) Net sales (EUR million) Q1/2023: Q1/2024: Q1/2023: Q1/2024: EUR 212 million EUR 57 million EUR 286 million EUR 225 million 1,600 1,600 1,400 1,344 1,400 1,125 1,160 1,200 1,072 1,200 1
Slide 18: Paper business line: Orders received decreased to EUR 138 million in Q1/2024
Paper business line: Orders received decreased to EUR 138 million in Q1/2024 Orders received (EUR million) Net sales (EUR million) Q1/2023: Q1/2024: Q1/2023: Q1/2024: EUR 372 million EUR 138 million EUR 342 million EUR 272 million 1,800 1,634 1,800 1,600 1,600 1,400 1,400 1,347 1,353 1,285 1,283 1,2
Slide 19: Valmet DNAe – the next generation Distributed Control System
Valmet DNAe – the next generation Distributed Control System
Slide 20: Valmet DNAe – the future-proof Distributed Control System (DCS)
Valmet DNAe – the future-proof Distributed Control System (DCS) • On April 9, 2024, Valmet launched its new DCS system, Valmet DNAe • Represents a major milestone in process New unified automation and increases the competitiveness user interface of Valmet’s DCS offering • Fully web-based platform wi
Slide 21: Financial development
Financial development Valmet <>
Slide 22: Key figures
Key figures EUR million Q1/2024 Q1/2023 Change Orders received 1,050 1,552 -32% Order backlog1 3,790 4,595 -18% Net sales 1,212 1,321 -8% Comparable EBITA 121 133 -9% % of net sales 10.0% 10.1% -0.1 pp EBITA 114 131 -13% Operating profit (EBIT) 87 97 -10% % of net sales 7.2% 7.3% -0.2 pp Adjusted ea
Slide 23: Services segment key figures
Services segment key figures Q1 2024 in brief EUR million Q1/2024 Q1/2023 Change Orders received 527 577 -9% Net sales 406 389 4% Comparable EBITA 60 63 -5% % of net sales 14.6% 16.1% -1.4 pp • Orders received decreased to EUR 527 million – Q1/2024 orders received were the second highest quarterly o
Slide 24: Automation segment key figures
Automation segment key figures Q1 2024 in brief EUR million Q1/2024 Q1/2023 Change Orders received 328 391 -16% Net sales 309 304 2% Comparable EBITA 51 50 3% % of net sales 16.5% 16.3% 0.2 pp • Orders received decreased to EUR 328 million – Automation Systems’ orders received remained at the previo
Slide 25: Process Technologies segment key figures
Process Technologies segment key figures Q1 2024 in brief EUR million Q1/2024 Q1/2023 Change Orders received 195 584 -67% Net sales 497 628 -21% Comparable EBITA 21 30 -30% % of net sales 4.2% 4.7% -0.5 pp • Orders received decreased to EUR 195 million – Orders received of Tissue Converting amounted
Slide 26: Segment key figures
Segment key figures Orders received, EUR million Q1/2024 Q1/2023 Change Services 527 577 -9% Automation 328 391 -16% Process Technologies 195 584 -67% Total 1,050 1,552 -32% Net sales, EUR million Q1/2024 Q1/2023 Change Services 406 389 4% Automation 309 304 2% Process Technologies 497 628 -21% Tota
Slide 27: 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 26.6% 30% 1,800 30% 25.8% 24.6% 24.2% 25.2% 24.9% 1,500 22.1% 23.1% 23.1% 23.0% 25% 1,500 25% 19.1% 1,429 1,443 1,200 1,263 2
Slide 28: 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 capital1 and orders received (EUR million) 532 482 5,194 4,955 4,740 4,453 3,986 352 3,722 3,653 3,071 3,139 3,272 291 284 295 282 2,878 236 246 4% 4% -82 -238 -294
Slide 29: Net debt decreased compared with Q4/2023
Net debt decreased compared with Q4/2023 Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio 1,200 60% 1.60 1.46 1.36 1,027 1,000 939 50% 1.20 0.84 0.90 800 40% 0.78 0.77 0.74 0.80 0.71 40% 39% 600 510 502 542 531 30% 0.49 21% 428 0.35 345 0.40 0.22 400 13% 20% 22% 23% 21% 200 6% 18% 20
Slide 30: 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 2.18 4,055 4,090 2.09 20% 3,308 1.54 17% 1.35 16% 15% 15% 1.01 14% 1,808 1,639 0.81 13% 1,2
Slide 31: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 32: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2024 Guidance Valmet reiterates its guidance issued on February 7, 2024, in which 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
Slide 33: Q&A
Q&A 33 April 24, 2024 © Valmet | Interim Review, January–March 2024
Slide 34: Half Year Financial Review, January–June 2024
Half Year Financial Review, January–June 2024 July 24, 2024 www.valmet.com/investors 34 April 24, 2024 © Valmet | Interim Review, January–March 2024
Slide 35: 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 36: FORWARD
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