Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (September 2016)
25 slides from Valmet's investor day presentation, Sep 20, 2016
Slide 1: Services will grow over two times the market growth with improved profitability
Services will grow over two times the market growth with improved profitability Jukka Tiitinen Business Line President, Services Valmet Capital Markets Day September 20, 2016
Slide 2: Agenda
Agenda Capital Markets Day 2016 1 Current status 2 Market environment and market position 3 Strategic objectives 4 Must-Wins 5 Case examples 6 Summary 2 September 20, 2016 CMD 2016 | Jukka Tiitinen, Business Line President, Services
Slide 3: Current status
Current status Valmet <>
Slide 4: Services business line in brief
Services business line in brief Sustainable services for Net sales by business unit1 Net sales by area1 energy production, fiber processing, paper, board and 12% 9% 19% tissue production lines to 10% 29% increase reliability and improve the performance of 15% customers’ processes. 28% 7% 26% 45% Fig
Slide 5: Services offering
Services offering Comprehensive services offering; widest in the industry Rolls and Mill Improvements Performance Fabrics Energy and Workshop Services Parts Environmental • Rolls • Upgrades • Original • Paper machine • Services for • Roll covers and • Components equipment clothing evaporation mainte
Slide 6: Widest service and automation network
Widest service and automation network Over 120 service centers in 33 countries Mexico City in 2016 New Valmet service center Imperatriz in 2016 in Jakarta area in spring 2017 6 September 20, 2016 CMD 2016 | Jukka Tiitinen, Business Line President, Services
Slide 7: Major achievements
Major achievements Profitable growth continues Orders received Net sales (EUR million) (EUR million) 1,119 1,153 1,128 1,142 1,035 1,055 1,032 989 Growth Growth ~4% ~4% CAGR CAGR 2013 2014 2015 LTM 2013 2014 2015 LTM Fourth year of growth • Profitable growth continues • Valmet’s new way to serve lau
Slide 8: Market environment and market position
Market environment and market position
Slide 9: Market position
Market position Competitive market globally; few big players, many smaller ones Market position Valmet’s market share Target market by competitor group #1-2 ~14% Local competitors Valmet Global competitors with broad offering Long-term market growth Estimated market size Regional/global selective-sc
Slide 10: Market environment
Market environment Focus on market share growth Orders received (EUR million) Rolls & Workshop Services • Valmet is active in lowering customers’ roll service 1,400 cost and improve quality 1,200 1,119 1,153 Mill Improvements 1,035 1,055 • The demand is cyclic and in the same phase as 132 133 1,000
Slide 11: Strategic objectives
Strategic objectives Valmet <>
Slide 12: Strategic objectives
Strategic objectives Strategic Twice the objectives market growth • Net sales to grow over two times the market growth with improved profitability • Improve profitability Business Business focus focus Provide a unique Provide a uniqueand improved and customer improved experience customer through exp
Slide 13: Business specific focus areas
Business specific focus areas Valmet’s unique approach in all areas and business units Business specific focus areas Business units • Rolls and Workshop Services: Operations closer to the customers • Mill Improvements: Localize the engineering resources in growth areas • Performance Parts: Continue
Slide 14: Must-Wins
Must-Wins Valmet <>
Slide 15: Must-Wins in Services
Must-Wins in Services Must-Wins are the backbone of improvements Must-Wins Must-Win initiatives Customer Customer • Valmet’s new way to serve improves customer experience and creates customer excellence benefits excellence Leader in • Valmet improves the performance of customers’ processes through n
Slide 16: Shared Journey Forward
Our core commitments Our services offering Safety Reliability comes first • Spare parts and components • Maintenance and shutdown management • Outsourcing services Close to you Shared Journey Performance • Production consumables Forward • Process support and optimization Solutions to Valmet’s way to
Slide 17: Valmet's share of wallet
Valmet’s share of wallet Note: Not real customer data Valmet’s way of leading global sales teams Example: Customer spend by company Example: Customer spend by site (EUR million) (EUR million) and Valmet’s market share (%) and Valmet’s market share (%) 80 80% 240 80% 70 70% 210 70% 60 60% 180 60% 50
Slide 18: Case examples
Case examples Valmet <>
Slide 19: Services offering
Services offering Reliability Performance New Technology
Slide 20: Ensure high availability of baling lines
Reliability Ensure high availability of baling lines CMPC Guaíba, Brazil Mill signed an agreement including remote Development: access and on-site support to guarantee high availability of four baling lines in Line 2 + two in Line 1. Valmet specialist full-time on site Remote access 24/7 KPI Dashboa
Slide 21: Contributing to energy savings
Performance Contributing to energy savings Estonian Cell, Estonia The mill signed a Valmet refiner segment Results: optimization agreement combining accurate disc- gap control with Valmet energy-saving segments. “We are satisfied with the results. Our primary refiner consumes 45% of all the electric
Slide 22: Improved runnability and faster tail threading
New technology Improved runnability and faster tail threading Lee & Man Dongguan Hongmei mill, China Valmet upgraded the cylinders to VacRoll Results: vacuum rolls by drilling and grooving them on site. The rebuild also included new SymRun blow “We consider Valmet to be the top boxes and pocket vent
Slide 23: Summary
Summary Valmet <>
Slide 24: Summary
Summary Valmet Services has a strong market position with the widest offering Services growth continues with the new way to serve Focus on profitability with development of global competencies and renewal of the offering 24 September 20, 2016 CMD 2016 | Jukka Tiitinen, Business Line President, Servi
Slide 25: FORWARD
FORWARD