Slide 1: Orders received increased to EUR 1.2 billion and Comparable EBITA to EUR 136 million
Orders received increased to EUR 1.2 billion and Comparable EBITA to EUR 136 million in the third quarter Interim Review, January–September 2022 October 26, 2022 Pasi Laine, President and CEO Katri Hokkanen, CFO
Slide 2: Agenda
Agenda Interim Review, January–September 2022 1 Q3/2022 in brief 2 Development of the segments and the business lines 3 Financial development 4 Guidance and short-term market outlook 2 October 26, 2022 © Valmet | Interim Review, January–September 2022
Slide 3: Q3/2022 in brief
Q3/2022 in brief Valmet <>
Slide 4: Q3/2022 in brief
Q3/2022 in brief Orders received increased to EUR 1.2 billion Net sales increased to EUR 1.3 billion Order backlog amounted to EUR 4.7 billion Comparable EBITA increased to EUR 136 million and margin was 10.5% Gearing was 18% 4 October 26, 2022 © Valmet | Interim Review, January–September 2022
Slide 5: Valmet in Q3/2022
Valmet in Q3/2022 Net sales by segment Net sales by area Orders received EUR 1,178 million 12% 20% Net sales 30% EUR 1,288 million 16% 47% Comparable EBITA EUR 136 million 16% Comparable EBITA margin 10.5% 23% Order backlog 35% EUR 4,672 million Services North America Employees South America 17,511
Slide 6: Orders received increased to EUR 1,178 million in Q3/2022
Orders received increased to EUR 1,178 million in Q3/2022 Orders received in Q1–Q3/2022 by area Orders received (EUR million) 2,000 5,000 Asia- Pacific North 1,800 4,500 16% America 23% 1,600 4,000 1,400 3,500 1,200 3,000 China 14% South 1,000 2,500 America 800 1,324 2,000 7% 1,312 1,306 600 1,101 1
Slide 7: Stable business orders received totaled EUR 2,602 million during the last twelve months
Stable business orders received totaled EUR 2,602 million during the last twelve months Orders received (EUR million) in stable business 3,000 2,602 2,500 1,947 877 2,000 1,875 1,701 1,772 1,609 467 1,519 416 1,500 1,367 386 415 337 368 1,055 248 1,000 1,725 1,459 1,356 1,481 1,182 1,242 1,315 500 1
Slide 8: Order backlog EUR 4,672 million at the end of Q3/2022
Order backlog EUR 4,672 million at the end of Q3/2022 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,672 4,500 ~15% 4,096 4,000 ~60% 3,500 3,333 3,257 3,000 2,829 ~25% 2,458 2,500 2,283 1,998 2,074 2,000 1,500 1,000 Process Technologies 500 Services Automation 0 2014 2015
Slide 9: Development of the segments and the business lines
Development of the segments and the business lines
Slide 10: Services: Orders received increased to EUR 1,338 million in Q1–Q3/2022
Services: Orders received increased to EUR 1,338 million in Q1–Q3/2022 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: EUR 1,094 million EUR 1,338 million EUR 947 million E
Slide 11: Automation: Orders received increased to EUR 758 million in Q1–Q3/2022
Automation: Orders received increased to EUR 758 million in Q1–Q3/2022 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–Q3/2021: Q1–Q3/2022: Q1–Q3/2021
Slide 12: Flow Control: Orders received amounted to EUR 387 million in Q2–Q3/2022
Flow Control: Orders received amounted to EUR 387 million in Q2–Q3/2022 Orders received (EUR million)* Net sales (EUR million)* Q2–Q3/2021: Q2–Q3/2022: Q2–Q3/2021: Q2–Q3/2022: EUR 301 million* EUR 387 million EUR 308 million* EUR 360 million 800 753 800 681 699 700 700 660 628 625 611 590 593 576 60
Slide 13: Automation Systems: Orders received increased to EUR 371 million in Q1–Q3/2022
Automation Systems: Orders received increased to EUR 371 million in Q1–Q3/2022 Orders received (EUR million) Net sales (EUR million) Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: EUR 347 million EUR 371 million EUR 252 million EUR 317 million 600 600 467 490 477 500 500 416 415 393 402 412 368 386
Slide 14: Process Technologies: Orders received decreased to EUR 1,713 million in Q1–Q3/2022
Process Technologies: Orders received decreased to EUR 1,713 million in Q1–Q3/2022 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: EUR 2,206 million EUR 1,713 million EUR 1
Slide 15: Pulp and Energy business line: Orders received decreased to EUR 792 million
Pulp and Energy business line: Orders received decreased to EUR 792 million in Q1–Q3/2022 Orders received (EUR million) Net sales (EUR million) Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: EUR 922 million EUR 792 million EUR 720 million EUR 798 million 1,600 1,600 1,344 1,400 1,400 1,125 1,160 1,
Slide 16: Paper business line: Orders received decreased to EUR 921 million in Q1–Q3/2022
Paper business line: Orders received decreased to EUR 921 million in Q1–Q3/2022 Orders received (EUR million) Net sales (EUR million) Q1–Q3/2021: Q1–Q3/2022: Q1–Q3/2021: Q1–Q3/2022: EUR 1,284 million EUR 921 million EUR 817 million EUR 959 million 1,800 1,634 1,800 1,600 1,600 1,400 1,271 1,400 1,28
Slide 17: Financial development
Financial development Valmet <>
Slide 18: Key figures
Key figures EUR million Q3/2022 Q3/2021 Change Q1–Q3/2022 Q1–Q3/2021 Change Orders received 1,178 1,107 6% 3,809 3,647 4% Order backlog1 4,672 4,199 11% 4,672 4,199 11% Net sales 1,288 935 38% 3,534 2,736 29% Comparable EBITA 136 107 27% 337 282 20% % of net sales 10.5% 11.4% -0.9 pp 9.5% 10.3% -0.8
Slide 19: Segment key figures
Segment key figures Orders received, EUR million Q3/2022 Q3/2021 Change Q1–Q3/2022 Q1–Q3/2021 Change Services 427 341 25% 1,338 1,094 22% Automation 306 109 >100% 758 347 >100% Process Technologies 444 657 -32% 1,713 2,206 -22% Total 1,178 1,107 6% 3,809 3,647 4% Net sales, EUR million Q3/2022 Q3/20
Slide 20: Gross profit and SG&A development
Gross profit and SG&A development Gross profit (EUR million and % of net sales) SG&A (EUR million and % of net sales) 1,200 1,133 30% 1,200 30% 1,000 25% 1,000 25% 24% 774 800 20% 800 20% 600 15% 600 15% 16% 400 10% 400 10% 200 5% 200 5% 0 0% 0 0% 2014 2015 2016 2017 2018 2019 2020 2021 Q3/2022 2014
Slide 21: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 4,733 Target 12–14% 3,935 3,740 10.2% 3,547 3,325 10.9% 3,058 2,928 2,926 9.8% 7.7% 2,473 7.1% 8.9% Capital Business 6.7% 2,383 6.2% 2,350 Stable business 1,832 2,079 2,163 4.3% 1,799 1,572 1,473 1,584 1,715 1,77
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 capital and orders received (EUR million) 600 5,000 50% 4,740 4,902 500 532 4,000 40% 482 3,986 3,722 3,653 400 3,000 3,272 30% 3,071 3,139 2,878 2,000 20% 300 291
Slide 23: Net debt and gearing increased compared with Q3/2021
Net debt and gearing increased compared with Q3/2021 Net debt (EUR million) and gearing (%) Equity to assets ratio (%) 600 30% 510 500 50% 428 46% 47% 21% 22% 400 18% 20% 45% 42% 42% 43% 41% 41% 41% 42% 40% 18% 300 40% 38% 38% 39% 39% 13% 36% 37% 37% 200 6% 10% 35% 100 178 184 3% 52 149 30 3 30% 0 0
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 (%) 2.23 3,324 2.09 23% 23% 22% 20% 1.54 16% 16% 1.35 14% 1,808 13% 1,639 1.01 10% 1,231 1,314 0.81 1,195 1,137 1,150
Slide 25: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 26: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2022 (Published on April 1, 2022) Guidance Valmet estimates that, including the merger with Neles, net sales in 2022 will increase in comparison with 2021 (EUR 3,935 million) and Comparable EBITA in 2022 will increase in comparison with 2021 (EUR 4
Slide 27: Q&A
Q&A 27 October 26, 2022 © Valmet | Interim Review, January–September 2022
Slide 28: Upcoming events: Financial Statements Review, site visit, CMD 2023
Financial Statements Site visit to Flow Control’s Review 2022 production unit February 2, 2023 November 29, 2022 www.valmet.com/investors Vantaa, Finland Save the date: Valmet’s CMD 2023 March 8, 2023 Espoo, Finland 28 October 26, 2022 © Valmet | Interim Review, January–September 2022
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
Slide 30: Forward-looking statements
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