Valmet Corp · OMXHEX:VALMT

Valmet — Q1 2023 Earnings Presentation

30 slides from Valmet's earnings presentation, Apr 26, 2023

  1. Slide 1: Orders received increased to EUR 1.55 billion and Comparable EBITA to EUR 133 million

    Orders received increased to EUR 1.55 billion and Comparable EBITA to EUR 133 million in the first quarter Interim Review, January–March, 2023 April 26, 2023 Pasi Laine, President and CEO Katri Hokkanen, CFO

  2. Slide 2: Agenda

    Agenda Interim Review, January–March 2023 1 Q1/2023 in brief 2 Development of the segments and the business lines 3 Financial development 4 Guidance and short-term market outlook 2 April 26, 2023 © Valmet | Interim Review, January–March 2023

  3. Slide 3: Q1/2023 in brief

    Q1/2023 in brief Valmet <>

  4. Slide 4: Q1/2023 in brief

    Q1/2023 in brief Orders received increased to EUR 1.55 billion Net sales increased to EUR 1.32 billion Order backlog amounted to EUR 4.59 billion Comparable EBITA increased to EUR 133 million and margin was 10.1% Gearing was 15% 4 April 26, 2023 © Valmet | Interim Review, January–March 2023

  5. Slide 5: Valmet in Q1/2023

    Valmet in Q1/2023 Net sales by segment Net sales by area Orders received EUR 1,552 million 12% 23% 29% Net sales EUR 1,321 million 14% Comparable EBITA 48% EUR 133 million 12% Comparable EBITA margin 10.1% 23% 39% Order backlog EUR 4,595 million Services North America Employees South America 17,769

  6. Slide 6: Orders received increased to EUR 1,552 million in Q1/2023

    Orders received increased to EUR 1,552 million in Q1/2023 Orders received in Q1/2023 by area Orders received (EUR million) Asia- 2,200 5,500 Pacific 8% 2,000 5,000 North 1,800 4,500 China America 14% 28% 1,600 4,000 1,400 3,500 1,200 3,000 1,000 2,500 1,552 800 1,324 1,385 2,000 South 1,312 1,306 Am

  7. Slide 7: Stable business orders received totalled EUR 3,208 million during the last twelve months

    Stable business orders received totalled EUR 3,208 million during the last twelve months Orders received (EUR million) in stable business 3,500 3,208 3,000 2,837 2,500 1,326 1,081 1,875 1,947 2,000 1,772 1,701 1,519 1,609 416 467 1,500 1,367 386 415 337 368 1,055 248 1,000 1,882 1,756 1,315 1,459 1,

  8. Slide 8: Order backlog EUR 4,595 million at the end of Q1/2023

    Order backlog EUR 4,595 million at the end of Q1/2023 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,595 4,403 ~15% 4,500 4,096 4,000 3,500 3,333 3,257 3,000 2,829 ~25% ~60% 2,458 2,500 2,283 1,998 2,074 2,000 1,500 1,000 Process Technologies 500 Services Automation 0 2014

  9. Slide 9: Development of the segments and the business lines

    Development of the segments and the business lines

  10. Slide 10: Services: Orders received increased to EUR 577 million in Q1/2023

    Services: Orders received increased to EUR 577 million in Q1/2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2022: Q1/2023: Q1/2022: Q1/2023: Q1/2022: Q1/2023: EUR 451 million EUR 577 million EUR 317 million EUR 389 million EUR 30 milli

  11. Slide 11: Automation: Orders received increased to EUR 391 million in Q1/2023

    Automation: Orders received increased to EUR 391 million in Q1/2023 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) Q1/2022: Q1/2023: Q1/2022: Q1/2023: Q

  12. Slide 12: Flow Control: Orders received amounted to EUR 217 million in Q1/2023

    Flow Control: Orders received amounted to EUR 217 million in Q1/2023 Orders received (EUR million)* Net sales (EUR million)* Q1/2022: Q1/2023: Q1/2022: Q1/2023: EUR 196 million* EUR 217 million EUR 166 million* EUR 188 million 900 800 800 700 700 600 600 500 500 576 551 400 400 793 739 681 300 660 6

  13. Slide 13: Automation Systems: Orders received increased to EUR 175 million in Q1/2023

    Automation Systems: Orders received increased to EUR 175 million in Q1/2023 Orders received (EUR million) Net sales (EUR million) Q1/2022: Q1/2023: Q1/2022: Q1/2023: EUR 147 million EUR 175 million EUR 88 million EUR 116 million 600 533 600 505 517 467 489 500 500 416 415 393 402 412 368 386 400 337

  14. Slide 14: Process Technologies: Orders received decreased to EUR 584 million in Q1/2023

    Process Technologies: Orders received decreased to EUR 584 million in Q1/2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2022: Q1/2023: Q1/2022: Q1/2023: Q1/2022: Q1/2023: EUR 727 million EUR 584 million EUR 555 million EUR 628 million

  15. Slide 15: Pulp and Energy business line: Orders received decreased to EUR 212 million in Q1/2023

    Pulp and Energy business line: Orders received decreased to EUR 212 million in Q1/2023 Orders received (EUR million) Net sales (EUR million) Q1/2022: Q1/2023: Q1/2022: Q1/2023: EUR 327 million EUR 212 million EUR 276 million EUR 286 million 1,600 1,600 1,344 1,400 1,400 1,125 1,160 1,200 1,072 1,200

  16. Slide 16: Paper business line: Orders received decreased to EUR 372 million in Q1/2023

    Paper business line: Orders received decreased to EUR 372 million in Q1/2023 Orders received (EUR million) Net sales (EUR million) Q1/2022: Q1/2023: Q1/2022: Q1/2023: EUR 400 million EUR 372 million EUR 279 million EUR 342 million 1,800 1,634 1,800 1,600 1,600 1,285 1,257 1,347 1,410 1,400 1,400 1,2

  17. Slide 17: Financial development

    Financial development Valmet <>

  18. Slide 18: Key figures

    Key figures EUR million Q1/2023 Q1/2022 Change 2022 Orders received 1,552 1,324 17% 5,194 Order backlog1 4,595 4,459 3% 4,403 Net sales 1,321 960 38% 5,074 Comparable EBITA 133 79 68% 533 % of net sales 10.1% 8.3% 1.8 pp 10.5% EBITA 131 74 76% 550 Operating profit (EBIT) 97 63 54% 436 % of net sales

  19. Slide 19: Segment key figures

    Segment key figures Orders received, EUR million Q1/2023 Q1/2022 Change 2022 Services 577 451 28% 1,756 Automation 391 147 >100% 1,081 Process Technologies 584 727 -20% 2,356 Total 1,552 1,324 17% 5,194 Net sales, EUR million Q1/2023 Q1/2022 Change 2022 Services 389 317 23% 1,606 Automation 304 88 >

  20. Slide 20: 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% 1,500 25% 1,500 25% 1,373 1,200 20% 1,200 20% 17% 900 15% 900 15% 904 600 10% 600 10% 300 5% 300 5% 0 0% 0

  21. Slide 21: Comparable EBITA margin development

    Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 5,435 Target 12–14% 5,074 10.8% 10.9% 10.5% 9.8% 8.9% 3,935 3,740 3,325 3,058 3,547 Capital Business 2,928 2,926 2,501 7.7% 2,428 2,473 6.2% 7.1% 6.7% 2,934 Stable business 4.3% 2,646 1,832 2,079 2,163 1,473 1,58

  22. Slide 22: 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) 600 6,000 50% 5,000 5,422 40% 5,194 500 532 4,740 4,000 482 30% 3,986 3,000 3,722 3,653 400 3,139 3,272 20% 3,071 2,878 2

  23. Slide 23: Net debt and gearing decreased compared with Q4/2022

    Net debt and gearing decreased compared with Q4/2022 Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio 600 30% 510 502 500 1.20 428 21% 22% 1.00 0.90 400 345 20% 0.84 18% 20% 0.78 0.80 0.71 300 13% 15% 0.49 200 10% 0.60 6% 0.35 178 0.40 0.22 100 149 30 52 3 0.20 0.06 0 3% 0% 0% 0.01 -

  24. Slide 24: 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 (%) 3,308 3,101 2.50 2.37 23% 23% 22% 2.09 20% 19% 17% 16% 1.54 14% 1,808 13% 1,639 1.35 10% 1,231 1,314 1.01 1,195 1

  25. Slide 25: Guidance and short-term market outlook

    Guidance and short-term market outlook

  26. Slide 26: Guidance and short-term market outlook

    Guidance and short-term market outlook Guidance for 2023 (Published on February 2, 2023) Guidance Valmet estimates that net sales in 2023 will increase in comparison with 2022 (EUR 5,074 million) and Comparable EBITA in 2023 will increase in comparison with 2022 (EUR 533 million). Short-term market

  27. Slide 27: Q&A

    Q&A 27 April 26, 2023 © Valmet | Interim Review, January–March 2023

  28. Slide 28: Half-year financial review January–June 2023

    Half-year financial review January–June 2023 July 26, 2023 www.valmet.com/investors 28 April 26, 2023 © Valmet | Interim Review, January–March 2023

  29. Slide 29: 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

  30. Slide 30: FORWARD

    FORWARD

Valmet — Q1 2023 Earnings Presentation on 6ix