Valmet Corp · OMXHEX:VALMT
Valmet — Shareholder Meeting (March 2016)
24 slides from Valmet's shareholder meeting presentation, Mar 22, 2016
Slide 1: Successful Automation acquisition and strong development forward in 2015
Successful Automation acquisition and strong development forward in 2015 Annual General Meeting March 22, 2016 Pasi Laine, President and CEO
Slide 2: Contents
Contents 1 Valmet today 2 2015 in brief 3 Strategy and progress in Must-Wins 4 Guidance and short-term market outlook
Slide 3: Valmet today
Valmet today Leading global developer and supplier of process technology, automation and services
Slide 4: Key figures
Key figures Orders received Net sales by business line Net sales by area EUR 2,878 million 13% 23% 21% Net sales EUR 2,928 million 39% 10% EBITA1 11% EUR 182 million EBITA1 margin 31% 6.2% 8% 45% Employees Services North America 12,306 Automation South America Pulp and Energy EMEA Paper China Asia-P
Slide 5: The widest offering and leading market position in all markets
The widest offering and leading market position in all markets Pulp #1-2 Energy #1-3 Board #1 Tissue #1 Paper #1 Services #1-2 Automation #1-3 5 March 22, 2016 © Valmet | Pasi Laine, President and CEO | Annual General Meeting 2016
Slide 6: Process technology, services and automation
Process technology, services and automation Valmet’s unique offering differentiates the company from its competitors Process- technology Customer Services Automation 6 March 22, 2016 © Valmet | Pasi Laine, President and CEO | Annual General Meeting 2016
Slide 7: Strong, global presence is a good platform for growth
Strong, global presence is a good platform for growth 100 service centers, 86 sales offices, 34 production units, 16 R&D centers North America China • 8 service centers • 17 service centers • 6 production units • 7 production units • 3 sales offices • 8 sales offices 1,955 1,367 EMEA • 16 R&D center
Slide 8: One of the world's sustainability leaders
One of the world’s sustainability leaders • Included in Dow Jones World Sustainability Index already for the second consecutive year • Systematic Sustainability Agenda Sustainable Health, People and Responsible Corporate supply chain safety and performance solutions citizenship environment 8 March 2
Slide 9: Significant, customer focused research and development work
Significant, customer focused research and development work Focus areas • Advanced and competitive technologies and services • Raw material, water and energy efficiency • Promotion of renewable materials 16 EUR 59 1,800 research million protected and investment inventions development in R&D centers
Slide 10: Global customer base
Global customer base Pulp Paper Energy Process Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 10 March 22, 2016 © Valmet | Pasi Laine, President and CEO | Annual General Meeting 2016
Slide 11: Financial targets
Financial targets Growth Net sales growth to exceed market growth Profitability EBITA1 before non-recurring items: 6–9% ROCE Return on capital employed (pre-tax), ROCE 2: minimum of 15% Dividend Dividend payout at least 40% of net profit policy 1) EBITA before non-recurring items = operating profit
Slide 12: 2015 in brief
2015 in brief Successful Automation acquisition and profitability improvement
Slide 13: Summary of the year 2015
Summary of the year 2015 EUR million 2015 2014 Change Orders received 2,878 3,071 -6% Order backlog1 2,074 1,998 4% Net sales 2,928 2,473 18% EBITA2 182 106 73% % of net sales 6.2% 4.3% Earnings per share, EUR 0.51 0.31 67% Dividend per share, EUR 0.353 0.25 40% Cash flow provided by operating activ
Slide 14: Valmet's development
Valmet’s development Orders received Net sales EBITA1,2 EBITA margin1,2 (EUR million)1 (EUR million)1 3,500 3,500 200 9% 3,071 2,928 180 8% 3,000 2,878 3,000 Target 6–9% 2,613 160 7% 2,473 2,500 2,500 140 2,182 6% 2,016 1,537 1,572 120 2,000 2,000 5% 1,581 100 1,484 1,147 182 4% 1,500 1,500 80 3% 6.
Slide 15: Strategy and Must-Wins
Strategy and Must-Wins Good results in Must-Win focus areas
Slide 16: 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 17: We provide our customers with the benefits of Industrial Internet already today
Results: Customer Excellence We provide our customers with the benefits of Industrial Internet already today Valmet’s competence network Customer’s Valmet’s process remote center 350 Ongoing 740 70,000 320 440 80 Valmet-supplied 350 Condition Advanced Online Performance Co-creation of lines with Val
Slide 18: Our new technologies have been successful in the markets
Results: Leader in technology and innovation Our new technologies have been successful in the markets OptiConcept M board and paper machine Advantage NTT tissue machine 11 sold 6 sold OptiConcept M Advantage NTT machines machines High Power RECOX recovery boiler Valmet IQ quality management solution
Slide 19: Occupational safety, quality and procurement savings have developed well
Results: Excellence in processes Occupational safety, quality and procurement savings have developed well • Occupational safety has improved – year 2015 was safest ever • Savings in procurement are ahead of targets • Quality costs have decreased according to plan 10.1 8.3 6.4 5.5 3.3 2011 2012 2013
Slide 20: Our personnel's engagement has developed positively
Results: Winning team Our personnel’s engagement has developed positively and the new training portfolio supports our strategic targets • 81% of employees responded to the engagement survey in 2015 • Personnel engagement increased by 9 percentage points • We launched a global training portfolio with
Slide 21: Guidance and short term market outlook
Guidance and short term market outlook
Slide 22: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2016 Valmet estimates that net sales in 2016 will remain at the same level with Guidance for 2015 (EUR 2,928 million) and EBITA before non-recurring items in 2016 2016 will increase in comparison with 2015 (EUR 182 million). Short-term market outlo
Slide 23: Summary
Summary Valmet is a global leader in its field One of the world’s sustainability leaders for a second consecutive year Process technology, services and automation - Unique product and service offering that differentiates from competitors Systematic development of the company and profitabilit
Slide 24: FORWARD
FORWARD