Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (March 2015)
26 slides from Valmet's investor day presentation, Mar 19, 2015
Slide 1: Moving forward after strong 2014
Moving forward after strong 2014 Pasi Laine, President and CEO Valmet Capital Markets Day March 19, 2015
Slide 2: Agenda
Agenda Capital Markets Day 2015 1 Valmet in brief 2 Performance in 2014 3 Valmet’s strategy 4 Automation 5 Investment highlights 6 Summary 2 March 19, 2015 © Valmet | Pasi Laine, Capital Markets Day 2015
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: A leading service and technology company
A leading service and technology company Net sales (2014) Strong market position in all markets served Stable, growing and 15% 18% profitable services business 21% Strong capital business with 40% 11% high technological know- how 13% 2014 figures Orders received EUR 3,071 M 39% Net sales EUR 2,473 M
Slide 5: Our three business lines serve the same customer base
Our three business lines serve the same customer base Services Pulp and Energy Paper Net sales 1.0 bn, 40% Net sales 1.0 bn, 39% Net sales 0.5 bn, 21% • Mill and plant improvements Technologies and solutions for Technologies and solutions for • Roll and workshop services • Pulp production • Board •
Slide 6: Strong global presence – good platform for growth
Strong global presence – good platform for growth North America China • Large installed base to be serviced EMEA • Service growth potential through • Capital project growing installed base • Large installed base to be serviced opportunities in pulp, • Capital project opportunities energy, board, and
Slide 7: Serving global customer base
Serving global customer base Services Pulp and Energy Paper Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 7 March 19, 2015 © Valmet | Pasi Laine, Capital Markets Day 2015
Slide 8: Performance in 2014
Performance in 2014 Valmet <>
Slide 9: Summary of the year 2014
Summary of the year 2014 A successful first year as an independent company EUR million 2014 2013 Change Orders received 3,071 2,182 41% Order backlog 1,998 1,398 43% Net sales 2,473 2,613 -5% EBITA1 106 54 94% % of net sales 4.3% 2.1% Earnings per share, EUR 0.31 -0.42 Dividend per share, EUR 0.252
Slide 10: Implementation of the strategy in 2014
Implementation of the strategy in 2014 Must-Wins Actions and results 1. Customer • Valmet has systematically strengthened its presence close to our customers globally - Area organizations are working close to customers excellence - Key account management has been improved - Services business has bee
Slide 11: Valmet’s strategy
Valmet’s strategy Valmet <>
Slide 12: Valmet’s way forward
Valmet’s way forward Our Vision To become the global Our Must-Wins champion in serving our customers Our Strategy Customer excellence Valmet develops and Leader in technology supplies competitive and innovation Our Mission technology and services to Excellence in processes Converting renewable
Slide 13: Strategy implementations through Must-Wins
Strategy implementations through Must-Wins Must-Wins Must-Win implementation objectives for 2015 • Strengthen our presence close to customers and growth markets Customer • Strengthen Key Account Management to enhance growth at the customer excellence • Drive services growth through long-term agreeme
Slide 14: Automation
Automation Valmet <>
Slide 15: Valmet becomes a stronger company as a result of the acquisition of Process Automation Systems
Valmet becomes a stronger company as a result of the acquisition of Process Automation Systems The acquisition was announced on January 15, 2015 The acquisition has an excellent strategic fit Combination of Valmet and Automation creates a unique customer offering Automation is a strong, established
Slide 16: Valmet with Automation
Valmet with Automation Increased stability and improved profitability Illustrative net sales in 20141 Improving profitability Automation has a solid financial track record 11% 15% - Historically continuous double-digit EBITA 18% margin of 10–12% 36% 19% 11% - Stable net sales, with slight growth 1
Slide 17: Investment highlights
Investment highlights Valmet <>
Slide 18: Investment highlight summary
Investment highlight summary 1 Strong market position in growing markets Growing, profitable and stable service and 2 automation business with EUR 1.3 billion sales Strong in cyclical capital business with long-term growth 3 potential and increased flexibility in cost structure Unique offering with
Slide 19: Strong market position in growing markets
1 2 3 4 5 Strong market position in growing markets Services Pulp Energy Board Tissue Paper Automation #1-2 #1-2 #1-3 #1-2 #1 #1-2 #1-3 ~2% 7.5 ~1% 1.4 ~1% 2.0 ~3% 1.0 ~3% 0.6 ~-1% 0.6 ~1% 2.0 p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn • Customers • Growth in • Growth in • World trade,
Slide 20: Growing, profitable and stable service and automation business with EUR 1.3 billion sales
1 2 3 4 5 Growing, profitable and stable service and automation business with EUR 1.3 billion sales Growing Services net sales growth on average over 3% p.a. during the last 5 years Slight growth in Automation net sales over the last 10 years Profitable Relatively stable margins in Automation
Slide 21: Strong in cyclical capital business with long-term growth potential and increased flexibility in cost structure
1 2 3 4 5 Strong in cyclical capital business with long-term growth potential and increased flexibility in cost structure Pulp and Energy Paper Market position: Market position: #1-3 #1-2 Headcount reduction1: Headcount reduction1: ~500 ~800 Capacity cost reduction: Capacity cost reduction: 10% 20%
Slide 22: Unique offering with process technology, automation and services
1 2 3 4 5 Unique offering with process technology, automation and services Process • Valmet becomes a technology technology and service company with full automation offering • Strengthened competitiveness from combining paper, pulp and power plant technology, process know-how and automation • Full s
Slide 23: Continued focus on profitability, more effort into renewal
1 2 3 4 5 Continued focus on profitability, more effort into renewal Continued focus on • Improve project and service margin profitability • Reduce quality costs and lead times improvement • Savings in procurement measures • Continue to improve cost competitiveness • Improve cost competitiveness to
Slide 24: Summary
Summary Valmet <>
Slide 25: Summary
Summary Moving forward after strong 2014 Strong market position in growing markets Growing, profitable and stable service and automation business with EUR 1.3 billion sales Strong in cyclical capital business with long- term growth potential and increased flexibility in cost structure Unique offerin
Slide 26: FORWARD
FORWARD