Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (March 2015)
22 slides from Valmet's investor day presentation, Mar 19, 2015
Slide 1: Automation completes Valmet’s offering
Automation completes Valmet’s offering Pasi Laine, President and CEO Valmet Capital Markets Day March 19, 2015
Slide 2: Agenda
Agenda Capital Markets Day 2015 1 Acquisition timeline, price and financing 2 Overview of Automation 3 Market position 4 Valmet becomes stronger 5 Summary 2 March 19, 2015 © Valmet | Pasi Laine, Capital Markets Day 2015
Slide 3: Acquisition timeline, price and financing
Acquisition timeline, price and financing
Slide 4: Acquisition timeline
Acquisition timeline January 15, 2015 March 19, 2015 April 29, 2015 Signing and publishing Capital Markets Day, Q1/2015 figures the deal, webcast and London published, excluding conference call Automation February 6, 2015 April 1, 2015 July 30, 2015 Financial Statements Estimated closing of the Q2/2
Slide 5: Price and financing the acquisition
Price and financing the acquisition Enterprise value of acquisition1: EUR 340 million The acquisition will be financed with committed long-term financing Average maturity of long-term debt will increase to over 4 years2 1) Refers to the debt-free enterprise value of the acquisition. 2) Average m
Slide 6: Overview of Automation
Overview of Automation Valmet <>
Slide 7: Automation in brief
Automation in brief Supplies and develops automation and information management systems, applications and services Net sales (2014) Global market leader with #1 market position in pulp and 9% paper 19% 9% Industry-leading product portfolio Comprehensive services High barriers to entry and a limited
Slide 8: Automation offering
Automation offering Distributed • Complete control system platform for several processes: process, Control machine, drive controls and information management System (DCS) • Used for monitoring and controlling distributed equipment in process plants and industrial processes Quality Control • A system
Slide 9: Strengthened presence close to customers
Strengthened presence close to customers Valmet: Over 100 locations in 30 countries • 70 service centers Automation: • 50 sales offices • 1,600 automation professionals • 30 production units • 80 locations • 13 technology centers Valmet location Automation location 9 March 19, 2015 © Valmet | Pasi L
Slide 10: Valmet and Automation serve mainly the same customer base
Valmet and Automation serve mainly the same customer base Pulp Energy Paper Process 80% of Automation’s sales to Valmet’s current 20% of Automation’s sales to customer industries other process industries • 10% of Automation’s sales together with Valmet project deliveries • 90% of Automation’s sales
Slide 11: Market position
Market position Valmet <>
Slide 12: Market position
Market position Anticipated Estimated market size for long-term market growth the current offering (EUR) ~1% 2.0 Market position p.a. bn • Global market leader with #1 Market drivers #1-3 market position in pulp and paper • Industry-leading product portfolio • Investments in new pulp and paper machi
Slide 13: Automation offering and market overview
Automation offering and market overview Scope/product Market size and growth Market position in Main competitors pulp and paper Distributed • DCS for process and Pulp and paper DCS market: • ABB Control System (DCS) machines controls • Condition monitoring • EUR 900 million #3 • • Honeywell Emerson
Slide 14: Valmet’s automation offering for board, paper and tissue mills
Valmet’s automation offering for board, paper and tissue mills • Distributed Control System (DCS) • Performance solutions • Quality Control System (QCS) − Process controls − Energy efficiency monitoring • Profilers − Machine controls − Condition and runnability monitoring • Analyzers and measurement
Slide 15: Valmet’s automation offering for pulp mills
Valmet’s automation offering for pulp mills • Distributed Control System (DCS) • Performance solutions • Quality control system (QCS) − Process controls − Advanced process controls • Profilers − Machine controls − Energy efficiency monitoring • Analyzers and measurements − Drive controls − Condition
Slide 16: Valmet becomes stronger
Valmet becomes stronger Valmet <>
Slide 17: Combination of Valmet and Automation creates a unique customer offering
Combination of Valmet and Automation creates a unique customer offering Valmet becomes a technology Valmet becomes a unique company and service company with full Process automation offering technology Strengthened competitiveness from combining paper, pulp and power plant technology, process kno
Slide 18: 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 19: Automation will be Valmet’s fourth business line
Automation will be Valmet’s fourth business line Services Pulp and Energy Paper Automation North America business line business line business line business line South America EMEA China Asia-Pacific • Acquisition is estimated to be completed by April 1, 2015 and is subject to approval by the competi
Slide 20: Summary
Summary Valmet <>
Slide 21: Summary
Summary Automation completes Valmet’s offering Strong, established business with a good financial track record Combination of Valmet and Automation creates a unique customer offering Acquisition makes Valmet more stable and more profitable 21 March 19, 2015 © Valmet | Pasi Laine, Capital Markets Day
Slide 22: FORWARD
FORWARD