Slide 1: Progress built on 220 years of industrial history
Progress built on 220 years of industrial history Annual General Meeting 2018 Pasi Laine, President and CEO
Slide 2: Contents
Contents 1 Valmet today 2 Financial development 3 Development of the business lines 4 Strategy and financial targets 5 Progress in strategy implementation 6 Guidance and short-term market outlook
Slide 3: Valmet today
Valmet today
Slide 4: Valmet is the market leader serving a global customer base
Valmet is the market leader serving a global customer base Unique offering Market leadership Strong global presence Leader in sustainability Market’s widest Leading market 120 service centers Four consecutive offering combining position in all markets 87 sales offices years in Dow Jones pr
Slide 5: Executive Team
Executive Team Pasi Laine Kari Saarinen Julia Macharey Juha Lappalainen Anu Salonsaari-Posti President and CEO CFO SVP, Human Resources SVP, Strategy and SVP, Marketing, Communications Operational Development and Sustainability Business lines Aki Niemi Sakari Ruotsalainen Bertel Karlstedt Jari Vähäp
Slide 6: Financial development
Financial development
Slide 7: Valmet in 2017
Valmet in 2017 Orders received by Orders received by Orders received business line area EUR 3,272 million 10% 21% 38% Net sales 32% 17% EUR 3,159 million 6% Comparable EBITA EUR 226 million Comparable EBITA 21% 10% margin 46% 7.2% Services North America Automation South America Employees Pulp and En
Slide 8: Summary of the financial development in 2017
Summary of the financial development in 2017 EUR million 2017 2016 Change Orders received 3,272 3,139 4% Order backlog1 2,292 2,283 0% Net sales 3,159 2,926 8% Comparable EBITA2 226 196 15% % of the net sales 7.2% 6.7% Earnings per share, EUR 0.84 0.55 53% Dividend per share, EUR 0.553 0.42 31% Comp
Slide 9: Restated 2017 financials
Restated 2017 financials Impact from EUR million Reported restatement Restated Orders received 3,272 0 3,272 Order backlog1 2,292 165 2,458 Net sales 3,159 -100 3,058 Comparable EBITA2 226 -8 218 % of the net sales 7.2% -0.1% 7.1% Earnings per share, EUR 0.84 -0.03 0.81 Dividend per share, EUR3 0.55
Slide 10: Solid financial development over the years
Solid financial development over the years Orders received Net sales Comparable EBITA Comp. EBITA margin (EUR million)1 (EUR million)1 (EUR million)1 (%)1 3,272 3,071 3,139 3,159 2,878 2,928 2,926 2,613 2,473 2,182 1,713 1,658 1,684 2,016 1,537 1,572 1,473 1,581 226 1,484 1,147 196 7.2% 182 6.7% 6.2
Slide 11: Development of the business lines
Development of the business lines
Slide 12: Extraordinary year for our board, tissue and paper technologies
Extraordinary year for our board, tissue and paper technologies Orders received amounting to Strong customer activity in China – Five containerboard production lines with EUR full-scope automation package 1,035 Several rebuild orders from Europe Orders million received and other market areas gro
Slide 13: Good progress in bioenergy technologies, but weak pulp market
Good progress in bioenergy technologies, but weak pulp market Continued business expansion in Japan through co-operation with JFE Engineering – Two biomass boilers – Flue gas cleaning systems Biomass power plant and automation system order from Dong Energy in Denmark Pulp market continued to b
Slide 14: Continued growth and solid performance in stable business
Continued growth and solid performance in stable business Organic growth Stable business orders received ~5% (EUR million) Growth CAGR 1,519 1,609 ~12% CAGR 1,367 368 337 1,055 248 1,035 1,119 1,182 1,242 1,035 1,055 2013 2014 2015 2016 2017 Services business line Automation business line 14 March 2
Slide 15: Strategy and financial targets
Strategy and financial targets
Slide 16: Valmet's Way Forward
Valmet’s Way Forward Our Vision Our Must-Wins To become the global Our Strategy champion in serving our Customer excellence customers Valmet develops and Leader in technology supplies competitive and innovation process technology, Excellence in services and automation processes Our Mission to
Slide 17: Financial targets from 2017 onwards
Financial targets from 2017 onwards 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 •
Slide 18: Progress in strategy implementation
Progress in strategy implementation
Slide 19: New services approach – Shared Journey Forward
New services approach – Shared Journey Forward Implementation progressed well in the four key areas Customer Portal Services offering Solution sales Competences Modern on-line Services restructured Cross business line Valmet professionals services in a simple and renamed to sales processes a
Slide 20: Renewed Industrial Internet services
Renewed Industrial Internet services Valmet’s Industrial Internet is based on a dialogue with data Industrial Internet offering Performance centers Partner ecosystem Industrial Internet services Performance Centers Leading industry players created established for each gathered together by Valm
Slide 21: New enterprise resource planning system (ERP)
New enterprise resource planning system (ERP) Leap Forward project transforms internal efficiency to the next level Background Progress by the end of 2017 By 2020 In 2015 decision to Major global collaboration 8,000 Valmeteers globally – Replace different enterprise carried out to plan and uti
Slide 22: Seven global training programs
Seven global training programs Each designed to accelerate the achievement of our Must-Wins Leader in technology Customer excellence Excellence in processes and innovation Sales Journey Innovation Pathways Networking in Procurement Champions in Services Leading through Lean Forward Strateg
Slide 23: Guidance 2018 and short term market outlook
Guidance 2018 and short term market outlook
Slide 24: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2018 (announced on March 21, 2018) Valmet estimates that net sales in 2018 will remain at the same level as in Guidance 2017 (EUR 3,058 million) and Comparable EBITA in 2018 will increase in comparison with 2017 (EUR 218 million). Short-term market
Slide 25: FORWARD
FORWARD