Slide 1: Record-high third quarter margin, but slower market activity than expected
Record-high third quarter margin, but slower market activity than expected Interim Review, January–September 2024 October 30, 2024 Thomas Hinnerskov, President and CEO Katri Hokkanen, CFO
Slide 2: Agenda
Agenda Interim Review, January–September 2024 1 Q3/2024 in brief 2 Development of the segments 3 Guidance and short-term market outlook 4 Financial development 2 October 30, 2024 © Valmet | Interim Review, January–September 2024
Slide 3: New President and CEO Thomas Hinnerskov
New President and CEO Thomas Hinnerskov • Started as Valmet’s President and CEO on August 12, 2024 • Danish citizen, born in 1971 • Master’s degree in Economics from Copenhagen Business School, University of Arizona • Professional career: – Mediq, CEO (2022-2024) – KONE, EVP (2016-2022) – ISS A/S, s
Slide 4: Q3/2024 in brief
Q3/2024 in brief Valmet <>
Slide 5: Q3/2024 in brief
Q3/2024 in brief Orders received increased to EUR 1.0 billion Order backlog amounted to EUR 3.5 billion Net sales remained at the previous year’s level and amounted close to EUR 1.3 billion Comparable EBITA remained at the previous year’s level and amounted to EUR 156 million and margin was 12.0% Ca
Slide 6: Valmet in Q3/2024
Valmet in Q3/2024 Orders received Net sales Comparable EBITA (excl. Other) EUR 22 EUR EUR million EUR 307 EUR 488 million 412 million 453 EUR million million EUR 79 million EUR EUR 65 million 322 354 million million Services Services Services Automation Automation Automation Process Technologies Pro
Slide 7: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 Target 12–14% 5,532 5,330 5,074 10.9% 11.2% 10.5% 3,935 11.3% 3,740 3,547 3,325 2,101 3,058 9.8% 2,420 2,928 2,926 Comparable EBITA, % 7.7% 8.9% 2,428 3,230 7.1% 3,112 Capital Business 2 6.7% 2,646 2 Stable Busin
Slide 8: Orders received increased to EUR 1.0 billion in Q3/2024
Orders received increased to EUR 1.0 billion in Q3/2024 Orders received (EUR million) Orders received in Q1–Q3/2024 by area 2,200 5,500 2,000 5,000 Asia-Pacific 1,800 4,500 14% North America 26% 1,600 4,000 1,400 3,500 1,200 3,000 China 10% 1,041 1,000 2,500 800 2,000 600 1,500 South 400 1,000 Ameri
Slide 9: Stable business orders received totaled close to EUR 3.2 billion during the last twelve months
Stable business orders received totaled close to EUR 3.2 billion during the last twelve months Orders received (EUR million) in stable business Organic growth* 4,500 ~5% 4,000 CAGR 3,500 3,100 3,162 3,000 2,837 2,500 1,340 1,322 1,081 1,875 1,947 2,000 1,701 1,772 1,519 1,609 1,367 416 467 1,500 386
Slide 10: Order backlog amounted to EUR 3.5 billion at the end of Q3/2024
Order backlog amounted to EUR 3.5 billion at the end of Q3/2024 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,403 4,500 4,096 3,973 4,000 2,815 3,333 2,995 2,416 3,536 ~20% 3,500 3,257 2,829 1,835 3,000 2,432 2,347 2,458 2,500 2,283 2,090 ~50% 2,074 2,000 1,834 1,723 ~30%
Slide 11: Development of the segments
Development of the segments Valmet <>
Slide 12: Process Technologies: Orders received decreased to EUR 936 million in Q1–Q3/2024
Process Technologies: Orders received decreased to EUR 936 million in Q1–Q3/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2023: Q1–Q3/2024: Q1–Q3/2023: Q1–Q3/2024: Q1–Q3/2023: Q1–Q3/2024: EUR 1,424 million EUR 936 million EUR 1,805
Slide 13: Valmet to supply a complete pulp mill to Arauco in Brazil
Valmet to supply a complete pulp mill to Arauco in Brazil Project overview Valmet’s scope and targets Strategic impact • Customer: Arauco • Complete pulp mill delivery • A significant milestone showcasing Valmet’s sustainable technologies • Location: Inocência, Mato Grosso • Full-scope automation an
Slide 14: Services: Orders received increased to EUR 1.4 billion in Q1–Q3/2024
Services: Orders received increased to EUR 1.4 billion in Q1–Q3/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2023: Q1–Q3/2024: Q1–Q3/2023: Q1–Q3/2024: Q1–Q3/2023: Q1–Q3/2024: EUR 1,356 million EUR 1,436 million EUR 1,275 million E
Slide 15: Automation: Orders received remained at the previous year's level at EUR 1.0 billion
Automation: Orders received remained at the previous year’s level at EUR 1.0 billion in Q1–Q3/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2023: Q1–Q3/2024: Q1–Q3/2023: Q1–Q3/2024: Q1–Q3/2023: Q1–Q3/2024: EUR 1,021 million EUR 1,0
Slide 16: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 17: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2024 (Published on October 11, 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 in comp
Slide 18: Financial development
Financial development Valmet <>
Slide 19: Key figures
Key figures EUR million Q3/2024 Q3/2023 Change Q1–Q3/2024 Q1–Q3/2023 Change Orders received 1,041 980 6% 3,374 3,801 -11% Order backlog1 3,536 4,133 -14% 3,536 4,133 -14% Net sales 1,295 1,295 0% 3,831 4,033 -5% Comparable EBITA 156 150 4% 417 437 -4% % of net sales 12.0% 11.6% 0.4 pp 10.9% 10.8% 0.
Slide 20: Process Technologies segment key figures
Process Technologies segment key figures Q3 2024 in brief EUR million Q3/2024 Q3/2023 Change Orders received 307 343 -10% Net sales 488 554 -12% Comparable EBITA 22 25 -13% % of net sales 4.4% 4.5% -0.1 pp • Orders received decreased to EUR 307 million – Orders received of Tissue Converting, which w
Slide 21: Services segment key figures
Services segment key figures Q3 2024 in brief EUR million Q3/2024 Q3/2023 Change Orders received 412 349 18% Net sales 453 429 5% Comparable EBITA 79 79 0% % of net sales 17.4% 18.4% -0.9 pp • Orders received increased to EUR 412 million – Orders received from Tissue Converting, amounted to EUR 34 m
Slide 22: Automation segment key figures
Automation segment key figures Q3 2024 in brief EUR million Q3/2024 Q3/2023 Change Orders received 322 289 11% Net sales 354 312 14% Comparable EBITA 65 58 11% % of net sales 18.3% 18.7% -0.4 pp • Orders received increased to EUR 322 million – Orders received from the acquired business Analyzer Prod
Slide 23: Segment key figures
Segment key figures Orders received, EUR million Q3/2024 Q3/2023 Change Q1–Q3/2024 Q1–Q3/2023 Change Services 412 349 18% 1,436 1,356 6% Automation 322 289 11% 1,002 1,021 -2% Process Technologies 307 343 -10% 936 1,424 -34% Total 1,041 980 6% 3,374 3,801 -11% Net sales, EUR million Q3/2024 Q3/2023
Slide 24: 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 27.8% 30% 1,800 30% 25.2% 25.8% 24.6% 24.2% 24.9% 1,500 22.1% 23.1% 23.1% 23.0% 25% 1,500 25% 1,429 1,481 1,200 20% 1,200 17.
Slide 25: 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) 532 482 500 5,194 4,955 4,740 4,529 3,986 352 3,722 3,653 3,139 3,272 291 284 295 2,878 246 4% 3% -238 -294 -82 155 78 -3
Slide 26: Net debt remained at the previous quarter's level
Net debt remained at the previous quarter’s level Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio 1,200 1,094 60% 1.631.59 1,027 1.60 1.46 939 1.36 1,000 1,057 50% 1.20 800 45% 43% 40% 0.90 542 531 40% 39% 0.80 0.710.78 0.77 0.74 600 502 30% 22% 428 0.84 0.49 400 510 345 20% 0.35 13
Slide 27: 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 2.28 4,228 22% 4,055 2.09 1.98 20% 3,308 1.54 1.35 17% 1.01 16% 1,808 1,639 0.81 1,231 1,314 15% 1,1
Slide 28: Q&A
Q&A 28 October 30, 2024 © Valmet | Interim Review, January–September 2024
Slide 29: Financial Statements Review 2024
Financial Statements Review 2024 February 13, 2025 www.valmet.com/investors 29 October 30, 2024 © Valmet | Interim Review, January–September 2024
Slide 30: 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 31: FORWARD
FORWARD