Valmet Corp · OMXHEX:VALMT
Valmet — SEB Nordic Seminar 2019
25 slides from Valmet's conference presentation, Jan 8, 2019
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services SEB Nordic Seminar January 8, 2019
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financials 4 Conclusion 2 January 2019 © Valmet | SEB Nordic Seminar 2019
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Key figures in 2017
Key figures in 2017 Net sales by business line Net sales by area Orders received EUR 3,272 million 10% 26% 20% Net sales EUR 3,058 million 13% 39% Comparable EBITA 8% EUR 218 million Comparable EBITA margin 26% 7.1% 10% 49% Order backlog Services North America EUR 2,458 million Automation South Amer
Slide 5: Valmet’s development
Valmet’s development Comparable EBITA target 8–10% Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR million)1 (EUR million)1 (EUR million)1 (%)1 3,423 3,272 3,308 3,071 3,139 3,058 2,878 2,928 2,926 2,613 2,473 1,825 2,182 1,713 1,811 1,658 1,584 2,016 1,537 1,572 1,473 1,581
Slide 6: Unique offering with process technology, automation and services
Unique offering with process technology, automation and services #1–2 #1–3 #1–3 #1 Services Automation Pulp and Energy Paper Mill and plant improvements, Supplies and develops Technologies and solutions for Technologies and solutions for roll and workshop services, automation and information pulp pr
Slide 7: Valmet’s way forward
Valmet’s way forward Our Vision Our Must-Wins To become the global champion Customer excellence in serving our customers Our Strategy Leader in technology and Valmet develops and supplies innovation competitive process technology, Excellence in processes services and automation to the pulp, pa
Slide 8: Significant, customer focused research and development work
Significant, customer focused research and development work R&D focus areas • Advanced and competitive technologies and services • Raw material, water and energy efficiency • Promotion of renewable materials 16 EUR 64 million ~1,500 research and R&D spending protected development in 2017 inventions
Slide 9: Acknowledged leader in sustainability
Acknowledged leader in sustainability 360° approach to sustainability Most material UN Sustainable • In Dow Jones Development Goals Sustainability Index for the for Valmet fifth consecutive year • Received Silver Class 2018 Sustainability Award • Achieved A- rating in CDP’s climate program in 360o 2
Slide 10: Financial targets
Financial targets Growth • Net sales for stable business to grow over two times the market growth • Net sales for capital business to exceed market growth Profitability • Comparable EBITA: 8–10% ROCE • Comparable return on capital employed (pre-tax), ROCE1: 15–20% Dividend policy • Dividend payout a
Slide 11: Investment highlights
Investment highlights Valmet <>
Slide 12: Investment highlights
Investment highlights 1 Strong position in the growing market of converting renewables Widest offering combining process technology, services and automation in a 2 unique way 3 Large stable business offering growth and profitability 4 Strong capital business with high market share and flexible cost
Slide 13: Strong position in the growing market of converting renewables
1 2 3 4 5 Strong position in the growing market of converting renewables Services Automation Pulp Energy Tissue Board Paper #1-2 8.0 ~1-2% #1-3 2.0 ~1% #1-2 1.4 ~1% #1-3 2.0 ~1% #1 0.7 ~3% #1 1.0 ~2-3% #1 0.3 ~-1% EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. •
Slide 14: Widest offering combining process technology, services and automation in a unique way
1 2 3 4 5 Widest offering combining process technology, services and automation in a unique way Paper Pulp Energy • Board, paper and tissue production lines • Wood and pulp handling • Heat and power generation • Rebuilds • Fiber processing • Air emission control • Stand-alone products • Recovery • B
Slide 15: Large stable business offering growth and profitability
1 2 3 4 5 Large stable business offering growth and profitability Orders received (EUR million) Services • 16% market share offers room for growth • Wide offering to support customers’ all service needs 1,609 1,649 • Opportunities to win new customers and increase share 1,519 of wallet with existing
Slide 16: Strong capital business with high market share and flexible cost structure
1 2 3 4 5 Strong capital business with high market share and flexible cost structure Paper business line Market share • High market share in all businesses Orders received (EUR million) Net sales (EUR million) Board and paper Tissue Pulp Energy ~40% ~35% ~40% ~20% 1,035 1,124 961 671 673 718 674 659
Slide 17: Systematically building the future
1 2 3 4 5 Systematically building the future • Shared Journey Forward: a unified and unique way to serve Technology Customer • Add value to customers through Industrial Internet solutions • Ensure strong market position in capital business • Develop new products and technologies • Improve product co
Slide 18: Financials
Financials Valmet <>
Slide 19: Key figures
Key figures EUR million Q3/2018 Q3/2017 Change Q1–Q3/2018 Q1–Q3/2017 Change Orders received 940 743 27% 2,696 2,544 6% Order backlog1 2,791 2,720 3% 2,791 2,720 3% Net sales 765 715 7% 2,340 2,091 12% Comparable EBITA 61 56 10% 144 138 5% % of net sales 8.0% 7.8% 6.2% 6.6% EBITA 55 49 12% 131 133 -1
Slide 20: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) 967 8.0% Target 8–10% 854 7.8% 844 804 7.5% 777 779 785 8.4% 7.2% 765 734 732 715 732 6.1% 685 7.3% 652 7.1% 7.2% 645 588 590 6.9% 5.3% 561 6.4% 6.5% 519 4.8% Capital business 5.5% 523 3.7% 3.5% 445 375 442 Stable
Slide 21: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2018 (as announced on July 17, 2018) Valmet estimates that net sales in 2018 will increase in comparison with 2017 (EUR 3,058 million) and Guidance Comparable EBITA in 2018 will increase in comparison with 2017 (EUR 218 million). Short-term market
Slide 22: Conclusion
Conclusion Valmet <>
Slide 23: Conclusion
Conclusion 1 Strong position in the growing market of converting renewables Widest offering combining process technology, services and automation in a 2 unique way 3 Large stable business offering growth and profitability 4 Strong capital business with high market share and flexible cost structure 5
Slide 24: Important notice
Important notice It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for growth, profitability and investment willingness, expectations fo
Slide 25: FORWARD
FORWARD