Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (September 2015)
99 slides from Valmet's investor day presentation, Sep 10, 2015
Slide 1: Welcome to Valmet in Sundsvall
Welcome to Valmet in Sundsvall
Slide 2: Program
Program Meeting with investors in Sundsvall, September 10, 2015 09:35 am Coffee and welcome 09:50 am Presentation and discussion Stefan Mattsson VP, Fiber Business Lars Eklund VP, Service Business Rickard Andersson VP, Biotech & ES Business 12:00 pm Lunch 12:40 pm Pulse & Innovation 01:10 pm Site To
Slide 3: Index
INDEX Safety first Main office Service Workshop Fiber Technology Center 3 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 4: Safety: visitor protective equipment
Safety High-viz glasses vest You will be given visitor´s personal protective equipment. These are mandatory in our laboratory and production facilities. 4 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 5: Smoking is not allowed in our premises
Smoking is not allowed in our premises. 5 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 6: The use of cameras or video equipment is prohibited
The use of cameras or video equipment is prohibited. (Special permission can be given) 6 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 7: Emergency evacuation instructions
A Production Workshop B Main Office C Technology Center If the emergency alarm rings or you D Service Center are ordered to evacuate the building, stay with your host and follow his/her instructions: • Follow the exit signs and take the shortest route outside Technology Center • Do not use elevator
Slide 8: Valmet Sundsvall
Valmet Sundsvall Located in Sundsbruk 410 employees Technical experts in Pulping & BIO Office Fiber Technology Center – Pilot facility – Laboratory, Bleaching & Analysis Service Center 24–7 Services 8 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 9: The workshop
The workshop Specialized in high alloy materials, complex welding and machining Highly skilled own manning, totally 92 persons Large network of external resources for maximized flexibility (+150) Integrated development with product design and project departments 9 September 10, 2015 Sundsval
Slide 10: The Fiber Technology Center (FTC)
The Fiber Technology Center (FTC) The cornerstone in our ambition of continuous product development Close co-operation with universities in Sweden – Chalmers – Kungliga Tekniska Högskolan (KTH) – Mid Sweden University 10 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Process
Slide 11: Contents
Contents Pulp session, Sept 10, 2015 1 Pulp & Energy business line in brief 2 Global pulp market 3 Pulping in a nutshell 4 Process solutions 5 Summary
Slide 12: Valmet Pulp & Energy business line in brief
Valmet Pulp & Energy business line in brief
Slide 13: Pulp and Energy business line in brief
Pulp and Energy business line in brief Net sales (2014) World-class pulp mill offering and complete delivery capability. 6% 23% Global technology and know-how leader in bioenergy and multifuels. 25% A natural growth platform for 43% environmental systems and 3% biomass conversion technologies. 57% 2
Slide 14: Pulp and Energy offering
Pulp and Energy offering A range of solutions and technologies fulfilling our customers’ needs Suzano Mucuri pulp mill in Brazil Valmet’s CYMIC boiler at Stora Enso Langerbrugge First demonstration scale integrated pyrolysis unit, Fortum Pulp Energy Biotechnologies and Environmental Systems • Wood a
Slide 15: Pulp Business
Pulp Business Stefan Mattsson, VP Fiber Processing Business unit Site visit to Sundsvall September 10, 2015
Slide 16: Global pulp market
Global pulp market Valmet <>
Slide 17: Packaging and tissue are driving paper and board demand growth
Packaging and tissue are driving the total paper and board demand growth 1,000 tons Global paper and board demand 500,000 450 450,000 411 395 400,000 350,000 300,000 250,000 200,000 150,000 52% 55% 48% 100,000 50,000 8% 9% 7% 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20
Slide 18: Growth in packaging and tissue demand expected to continue
Growth in packaging and tissue demand is expected to continue while printing & writing and newsprint are declining Paper consumption (Million tons) 220 CAGR 1999–2014 2014–2019F 200 180 Containerboard +3.3% +2.4% 160 140 120 Printing & Writing +0.4% -0.3% 100 80 Cartonboard +2.6% +3.0% 60 40 20 Tiss
Slide 19: World pulp demand
World pulp demand Fiber substitution by high quality virgin fiber wood pulp continues to grow Paper making fiber demand Million tons • World paper-making fiber demand is 500 459 growing 450 421 404 400 • Virgin fiber demand is increasing 350 • The share of market wood pulp is 300 increasing 250 200
Slide 20: Virgin fiber demand concentrating on BHK, fluff and dissolving
Virgin fiber demand is concentrating on BHK, fluff and dissolving Integrated and market BSK and BHK demand Growth estimates Million tons 120 BHK 100 2.0%/a or 1.3 million t/a 80 60 BSK incl. fluff 1.2%/a or 425,000 t/a 40 20 Fluff 0 3.8%/a or 225,000 t/a 2014 2015 2016 2017 2018 2019 BSKP BHKP BHK d
Slide 21: Fluff pulp market
Fluff pulp market Almost all BSK fluff pulp is sold on the market to consumer product companies for conversion to absorbent products Fluff pulp capacity by region • World fluff pulp demand is approx. 5.6 million tons, growing steadily by about 3.8%/a or about 225,000 t/a up to 2019 • Capacity expans
Slide 22: Dissolving pulp market
Dissolving pulp market End uses of dissolving pulps High • In 2015, demand estimate is 6.9 million alpha tons. pulps 33% Acetate • Present capacity is estimated to about Low 9.0 million tons. Ethers alpha • Estimated demand of 9.9 million tons in Viscose pulps 2025, with 3.7%/a growth in 2013–2025 6
Slide 23: World market pulp capacity
World market pulp capacity Majority of the investments occur at market pulp mills Million tons 80 76 70 67 61 60 Africa, Middle East & Oceania 2% North 50 Africa, Middle Latin America East & America 23% Oceania 36% North 40 2% Latin America America Europe 30% 29% 24% Asia 30 16% Asia Europe 14% 25%
Slide 24: Top market pulp producers
Top market pulp producers Top 5: 27% market share; Top 10: 43% market share Fibria 5.9 APRIL 3.8 Arauco 3.7 Suzano 2.9 CMPC 2.6 Koch Ind. (GP) 2.5 Paper Excellence 2.2 UPM 2.2 Metsäliitto 2.0 Weyerhaeuser 1.9 IP 1.7 Eldorado Cellulose 1.7 0 1 2 3 4 5 6 7 Million tons 24 September 10, 2015 Sundsvall
Slide 25: Future pulp capacity changes offer good project opportunities
Future pulp capacity changes offer good project opportunities New mills will be constructed in Latin America, Asia and Finland. New mid- sized installations are in demand in Asia-Pacific. Upgrades, rebuilds and conversions are done in the mature markets of North America and Europe. Announced market
Slide 26: North American fiber production
North American fiber production 88% of the sites in the North America have over 30 years old pulp line(s) Market pulp and integrated mills 18,000,000 Number of sites 33 16,000,000 37 14,000,000 12,000,000 Production t/a 30 20 10,000,000 20 8,000,000 17 16 6,000,000 16 4,000,000 11 2,000,000 3 5 0 0
Slide 27: Conditions for pulp investments
Conditions for pulp investments Projects have realized in locations where implementation and operating risks are acceptable. In addition, investors benefit from a sustainable competitive advantage General cost levels – Strong USD relative to most currencies has reshaped the cost structure of pulp
Slide 28: Pulping process in a nutshell
Pulping process in a nutshell
Slide 29: Pulping process
Pulping process Not included FiberLine in Valmet Today’s Focus Scope 29 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 30: Valmet Process solutions
Valmet Process solutions Chemical pulp - BSK / BHK / BEK/ Dissolving
Slide 31: Valmet FiberLine
Valmet FiberLine Proven large scale efficient and reliable High yield >54.5% with Compact Cooking Maximized power to the grid – +9.6 MWh = 4.4 Million USD/a @ 1.75MT/a Benchmark in water consumption and effluent volumes with TwinRoll press – Saving 10 million m³/a @ 1.75MT/a Low maintenance
Slide 32: The modern Valmet kraft fiberline
The modern Valmet kraft fiberline Layout principle 32 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 33: Pulp washing
Pulp washing TwinRoll™ Evolution - probably the best pulp washer in the market Will be looked at during the Site tour Easy to install High capacity Reliable and flexible Optimized operation Low pressure demand Suitable for gravity feed Minimized operational and maintenance cost ~1,300
Slide 34: Fiberline machine products
Fiberline machine products More than 100 various machine products Digesters Refiners Washers Screens Filters Mixers Tower equipment – Scrapers – Agitators Feeders Ozone reactors MC Pumps (Sulzer) Reactors Machines are Kilns good for service business ! 34 September 10, 2015 Su
Slide 35: Summary
Summary Valmet <>
Slide 36: Pulp summary
Pulp summary Good Market opportunities - New Mills - Rebuilds - Upgrades Well received products - CapEx - OpEx - Sustainability 36 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Slide 37: Pulp initiatives going forward
Pulp initiatives going forward Customer Capitalize on Northern hemisphere softwood opportunities excellence Leader in Significant R&D investments focused in increasing cost competitiveness technology and Further commercialization of new offering of Pulp and Energy business line targeting in innovati
Slide 38: Forward
FORWARD
Slide 39: Services
Services Lars Eklund, VP Performance Parts Site visit to Sundsvall September 10, 2015
Slide 40: Contents
Contents Services session, Sept 10, 2015 1 Services 2 Service for Fiber customers 3 Performance parts
Slide 41: Services
Services Valmet <>
Slide 42: Services business line in brief
Services business line in brief Empowered to serve the pulp, paper, and energy industries Net sales (2014) Sustainable services for energy production, fiber processing, paper, 11% 12% board and tissue production lines 19% 7% 28% Committed to sustainability, customers’ profitability, optimized 15% pr
Slide 43: Services competitors and market position
Services competitors and market position Room for growth EUR Valmet’s market share is ~13% 7.5 ~2% p.a. billion Maintenance outsourcing competitors Competitor type Valmet Local Global competitors with competitors full offering Global Product specific competitors competitors with full offering Local
Slide 44: Valmet Services
Valmet Services Leading technologies and expertise close to customers Increased Improved Reduced reliability performance costs Global presence with comprehensive offering Local service shops and service experts Permanent presence at customer sites Long-term partnership with focus on quality and safe
Slide 45: Service for Fiber customers
Service for Fiber customers Valmet <>
Slide 46: Services growing the fastest in Pulp and Energy
Services growing the fastest in Pulp and Energy Pulp and Energy • Fiber • Chemical recovery • Power plants 40% of the world’s pulp is made with Valmet machines
Slide 47: New capacity has higher service potential
New capacity has higher service potential Million tons 80 76 70 67 61 60 Africa, Middle East & Oceania 2% 50 Africa, Middle East & Oceania North 2% America Latin 40 America 23% North 36% Latin America America Europe 30 30% 29% 24% Asia 16% Asia Europe 20 14% 25% 10 0 2009 2014 2019 Source: RISI 5 ye
Slide 48: Pulp price has an impact on Services
Pulp price has an impact on Services
Slide 49: Expansion of service capacity in growth areas
Expansion of service capacity in growth areas New Service centers and expansions of existing Araucaria, Brazil – Full scope service center for Fiber – Open 2012 – Logistic center 2016 Zibo Jakarta, Indonesia Wuxi – Full scope service center for Fiber – Open 2016 (12) Jakarta Expansion in Wuxi,
Slide 50: Performance parts
Performance parts Valmet <>
Slide 51: Services offering
Services offering Comprehensive life-cycle services offering Rolls and Mill Performance Fabrics Energy and Workshop Improvements Parts Environmental Services • Rolls • Upgrades • Spare parts • Paper machine • Services for • Roll covers and • Components • Processes Parts clothing evaporation maintena
Slide 52: A selection of parts
A selection of parts
Slide 53: Parts deliveries and eServices orders
Parts 100,000 deliveries yearly eServices 1.1 60,000 Orders per year million parts One order every 6 min
Slide 54: Parts market size is big and growing
Parts market size is big and growing Financial Market and key competitors Local competitors
Slide 55: Uniqueness of parts business and development areas
Uniqueness of parts business and development areas
Slide 56: Different type of parts, different drivers
Different type of parts, different drivers Increased Reduced Improved reliability costs performance Convenience - speed Performance - savings Spare parts Process parts
Slide 57: Spares are reliability (convenience) driven
Spares are reliability (convenience) driven Supported by 4 global logistic centers Increased Reduce Improved reliability costs performance Convenience - speed Performance - savings Spare parts Process parts
Slide 58: Speed is critical for spares growth
Speed is critical for spares growth Actions for speed – Quotation and order handling in local service centers – 4 global logistic centers with local sourcing and global supply – Tailor-made customer Inventory solutions – IT tools for customer easiness and internal efficiency Easiness On time Speed
Slide 59: New IT tools for enhanced customer experience
New IT tools for enhanced customer experience Tools launched and implemented in 2014 and 2015 Internal efficiency – faster response Simplify life for customer Stream Value based eParts book eServices pricing (VBP) • Global search and • Pricing based on • Electronic • On-line access to communication
Slide 60: Process parts performance driven
Process parts performance driven Agreement based business Increased Reduce Improved reliability costs performance Convenience - speed Performance - savings Spare parts Process parts
Slide 61: Process parts
Process parts Energy, capacity and production cost focus New production capacity – Parts center established in Shanghai, China, doctoring and screen baskets – New capacity in added in NA, coater blades R&D initiatives – Focus on product renewal – Additive manufacturing, 3D Local technology com
Slide 62: Creating customer value via flexibility
Creating customer value via flexibility Make your own mix of technical scope, stocking, pricing and technical support Technical scope Inventory management Pricing agreement Valmet support Stock at customer Process parts Results based model Expert services site Reserved stock at Production based Proc
Slide 63: Summary
Summary Valmet <>
Slide 64: Performance parts summary
Performance parts summary Service and performance parts are growing New service capacity for Fiber customers in Brazil, China and Indonesia Investments and development in process parts supporting growth targets Speed and convenience are main drivers for spares growth 3D printer for metal can change
Slide 65: Additive manufacturing – 3D printing of parts
Additive manufacturing – 3D printing of parts Will change the game
Slide 66: Forward
FORWARD
Slide 67: Biotech & Environmental Systems
Biotech & Environmental Systems Rickard Andersson, VP Biotech and ES Site visit to Sundsvall September 10, 2015
Slide 68: Contents
Contents Biotech & ES session, Sept 10, 2015 1 Global biotechnologies market 2 Valmet’s biotechnologies offering 3 Global environmental systems market 4 Valmet’s offering in environmental systems Summary
Slide 69: Global biotechnologies market
Global biotechnologies market
Slide 70: Biotechnology drivers create new demand
Biotechnology drivers create new demand Drivers may differ somewhat depending on technology and market In general Strong market demand on bio based products Ethanol and non-fossil based chemicals and materials market demand Making use of waste streams by adding value De-bottlenecking of exis
Slide 71: Our traditional business and customers form foundations for biotechnologies
Our traditional business and customers form sound foundations for our biotechnologies Pulp Mills Proven Solutions for Industry • Number one in chemical pulping • Decades of experience and Biofuels references in wood handling • Gaseous fuels Waste systems, cooking systems, • Liquid fuels complete fib
Slide 72: Bio-based products made from renewable resources
Bio-based products are any products – fuels, chemicals, materials – made from renewable resources Plant material and municipal waste – biomass – are turned into electricity, fuels, intermediates for the chemical processes and materials Biofuels Bio-based chemicals Biomaterials Bioethanol (1G and 2G)
Slide 73: Examples of bio-based products and main players
Examples of bio-based products and main players Biofuels Bio-based chemicals Biomaterials Sugar platform / Commercial products (of fermentation process) Products Products Products Bioethanol (2G) Aspartic acid, Algal oils, Bio-based plastics, as a product Biodiesel (2G) Farnesene, Itaconic acid, exa
Slide 74: Biotechnologies market
Biotechnologies market • Emerging market for Partnerships, mergers and Market Industry converting biomass into acquisitions proceed in search of drivers fuels, chemicals and trends synergistic know-how, value chains materials and value networks, business • Growth of energy, concept, process and eq
Slide 75: Valmet's biotechnologies offering
Valmet’s biotechnologies offering
Slide 76: Valmet's biomass conversion technologies
Valmet’s biomass conversion technologies Penetrating the market in steps through references Facts Commercial scale lignin separation installations in operation since 2013 Several prehydrolysis pilot scale deliveries. First demonstration scale plant in operation in 2012. Commercial scale being of
Slide 77: Valmet is committed in R&D
Valmet is committed in R&D: We continue to move our customers’ performance forward Ideas Feasibility Laboratory Pilot Demonstration Commercialization Close co-operation with our customers Increased production efficiency and availability Our Wide and synergistic competence base Improved cost customer
Slide 78: Long-term R&D cooperation produces results – pyrolysis
Long-term R&D cooperation with partners produces results – pyrolysis as an example 2007 Technology 2010 1980’s development consortium Combustion tests 2013 - The first laboratory - Valmet, UPM and VTT studies by VTT R&D projects on Planning for a The first cold model pyrolysis oil commercial-scale t
Slide 79: LignoBoost – Lignin
LignoBoost™ – Lignin
Slide 80: How can pulp production be increased when lignin is extracted?
How can pulp production be increased when lignin is extracted from black liquor? Lignin has a high heating value (about 26 MJ/kg DS) and it creates ~35% of the dry solids content in the recovery boiler The recovery boiler is limited by the heat load and many mills run their boiler close to the m
Slide 81: Lignin is a versatile product
Lignin is a versatile product Applicable as a fuel or intermediate for chemicals and materials Lignin is structurally and chemically very complex high molecular weight material containing different aromatic building block components Fuel Binders , The variability of structure will Composites, Di
Slide 82: Lignin separation as part of pulp mill process
Lignin separation as part of pulp mill process LignoBoost lignin separation process connected to pulp Domtar Plymouth, mill chemical recovery North Caroline, USA – Lignin can be utilized as renewable fuel replacing fossil fuels and as new bio-material for many industries Domtar Plymouth, USA Annua
Slide 83: Bio-based Fuels, Chemicals and Materials
Bio-based Fuels, Chemicals and Materials
Slide 84: Proven solutions for bioethanol and bio-based chemicals
We contribute to bioethanol and bio-based chemicals with our proven solutions Biomass Pre- Enzymatic Biomass Separation Fermentation handling hydrolysis hydrolysis Automation Lignin Evaporation Distillation separation Power plant Pelletizing Molasses Lignin pellets Ethanol Valmet Partner 84 Septembe
Slide 85: Climate-friendly bioethanol from agricultural waste
Production of climate-friendly bioethanol from agricultural waste Second generation bioethanol Germany’s largest second produced from agricultural waste generation bioethanol plant Case Clariant, Germany Up to 1,000 tons of cellulose ethanol Renewable fuel for over 1,000 cars running with from aroun
Slide 86: Steam Explosion – Bio coal
@ Steam Explosion — Bio coal
Slide 87: Steam explosion technology for bio coal
Steam explosion technology for bio coal Zilkha Biomass Energy LLC and Valmet have signed a collaboration agreement in the field of steam explosion. The parties will work together to develop a joint global offering. Steam exploded bio coal provide a number of benefits compared to traditional wood
Slide 88: Pyrolysis – Integrated Bio-oil
Integrated Pyrolysis – Bio-oil
Slide 89: Case example: Additional revenue from bio-oil
Biotech and Environmental Systems case example: Additional revenue from bio-oil Fast pyrolysis of biomass integrated Pyrolysis plant to a fluidized bed boiler Fortum, Joensuu, Finland Case Production of bio-oil by pyrolysis from forest residue and other biomass Produced bio-oil provides heating for
Slide 90: Global environmental systems market
Global environmental systems market
Slide 91: Environmental systems with 500 references
Environmental systems are part of our traditional offering with 500 references Valmet provides proven Pulp and energy industries systems to pulp mills and energy sector Valmet has delivered Air pollution control 500 air pollution control systems Flue gas Odor and pulp Environmental cleaning and
Slide 92: Environmental systems market
Environmental systems market • Very large and growing Energy Market Industry global market in air Industrial Emission Directive (IED) - drivers pollution control trends EU • Tightening emissions – Large combustion plant legislation and stricter – Medium combustion plant directives globally – Waste
Slide 93: Valmet's offering in environmental systems
Valmet’s offering in environmental systems
Slide 94: Extensive offering of air pollution control systems
Extensive offering of air pollution control systems Facts • Complete flue gas cleaning and heat recovery systems • Odor and mill balance control for pulp mills • 500 air pollution control references Dry, semidry and wet flue gas cleaning processes for removal of particular and gaseous emissions
Slide 95: Meeting BAT emission levels with lowest life cycle cost
Meeting BAT emission levels with lowest life cycle cost Valmet’s scope of delivery Flue gas cleaning Selective catalytic NOx reduction CIECH Soda Polska Case (SCR) for each boiler Inowroclaw CHP plant Wet limestone flue gas xxxxxxx Four pulverized coal boilers, each 140 t/h, built in 1970’s de
Slide 96: Summary
Summary Valmet <>
Slide 97: Biotech and ES summary
Biotech and ES summary Valmet serves the emerging biotechnologies markets Our focus is on lignocellulosics and waste raw materials We build on our knowledge base, but continue the development to fit the emerging business Valmet provides proven Environmental Systems to pulp mills and energy s
Slide 98: Questions?
Questions?
Slide 99: Forward
FORWARD