Valmet Corp · OMXHEX:VALMT
Valmet — Corporate Update (November 2023)
33 slides from Valmet's corporate update, Nov 14, 2023
Slide 1: Valmet in China for Investor site visit to Shanghai, Jiading
Valmet in China for Investor site visit to Shanghai, Jiading Xiangdong Zhu Area President, China November 14, 2023
Slide 2: Contents
Valmet in China Contents 1 Valmet has a strong presence in China 2 China is a large and growing market for Valmet 3 Valmet has a strong market position in China 4 Valmet has a clear strategy to grow in China 5 Summary 2 November 14, 2023 © Valmet | Investor site visit to Jiading, Shanghai
Slide 3: Valmet has a strong presence in China
Valmet has a strong presence in China
Slide 4: Valmet's milestones in China
Valmet’s milestones in China 90 years sustainable development in China 2013 Fabrics Tianjin production extended 2021 Automating Shanghai relocated to Jiading 2015 Taiwan office established 2001 Wuxi Service Center established 2021 Invested in Beihai Service Center 2017 Valmet Jiading new office buil
Slide 5: Five business lines and four regions
Five business lines and four regions Automation Flow Control Services Paper Pulp and Energy Systems North China East China South China West China Finance Human Resources Strategy Marketing and Communications IT Legal Operations Excellence 5 November 14, 2023 © Valmet | Investor site visit to Jiading
Slide 6: Strong presence in China - close to customers
Strong presence in China - close to customers 7 Production unit 5 Service center Area business • Jiading • Wuxi center • Xi’an • Guangzhou • Jiading, • Changzhou • Zibo Shanghai • Jiaxing • Jiaxing ~2,300 employee • Tianjin • Beihai (under construction） Tianjin Beijing • WaiGaoQiao • Nantong Ji’nan
Slide 7: Valmet's China business area
Valmet’s China business area Q3/2023 LTM figures Valmet’s net sales by area Net sales in China by segment 14% Orders received 23% 24% EUR 715 million Net sales 12% EUR 694 million Employees 12% 58% 2,354 18% 39% North America South America Services EMEA China Automation Asia-Pacific Process Technolo
Slide 8: Valmet China financial development
Valmet China financial development EUR million Orders received Net sales 1 000 1 000 885 900 900 830 800 800 780 755 711 715 694 700 700 600 572 600 523 535 547 695 490 500 437 437 500 465 406 428 553 594 391 402 400 342 400 362 429 373 303 399 300 267 300 269 329 339 243 244 320 271 222 311 241 200
Slide 9: Major start-ups in 2022
Major start-ups in 2022 14 Tissue production line 5 Board and Paper production 4 Semi-chemical pulp line and Line chemical pulp line • APP Rudong - IntelliTissue *10 • Shanying Guangdong *2 • Nine Dragons Jinzhou *2 - Advantage DCT 200 *2 • APP Bohui *1 • Nine Dragons Dongguan *1 • Zhejiang Jingxin
Slide 10: Six Liansheng Projects started during May–June 2023
Six Liansheng Projects started during May–June 2023 Liansheng BCTMP line 1 started 1st May Liansheng PM1 started 1st May Liansheng BCTMP line 2 started 1st June Liansheng PM3 Started 8th June 10 November 14, 2023 © Valmet | Investor site visit to Jiading, Shanghai
Slide 11: Supply Automation System for the Most Advanced RoPax
Supply Automation System for the Most Advanced RoPax TT-Line Green Vessel Nils Holgersson Background Vessel Details • Decks 12 • Shipowner: TT-Line, Germany • Length 230M • Shipyard: CMI Jinling Shipyard • Width 31M • 2 Dual-fuel Ropax • Speed 21Kn • 239 modern cabins • Operating in the Baltics • 80
Slide 12: Valmet is a desired employer in China
Valmet is a desired employer in China People development Employee engagement Well-designed process ▪ Deploy OurVoice survey to collect ▪ Opportunities for career employee’s voice development and internal ▪ High response rate mobility and fruitful actions ▪ Learning and development ▪ Awarded 2021–2
Slide 13: China is a large and growing market for Valmet
China is a large and growing market for Valmet
Slide 14: China remains a large and growing market
China remains a large and growing market Quarterly growth,% • China’s economy is expected to drive global GDP growth, % Year-over-year growth, % growth 20% • GDP growth target at ~5% in 2023 2023 Target 5.0% • Growth in personal income that is generally in step 15 2023H1 5.5% YoY 2023Q3 4.9% Quarter
Slide 15: Declining and aging population
Declining and aging population • China’s population started declining from 2022 • Working age population decrease -0.75%; population under 16 years old decreases -2.6%, while above 60 years old population increases +4.7% • Key Implication: - The annual average decline of 1.73% in China’s working- ag
Slide 16: China is shifting towards high-quality and sustainable development
China is shifting towards high-quality and sustainable development Wind power and China is taking initiatives to boost long-term photovoltaic power generation will be growth, including 15.3% of the electricity - Innovation and reform consumption of the whole society in 2023 - Digitalization - Acce
Slide 17: Paper and Board market in the short and mid term
Paper and Board market in the short and mid term China plays a leading role in Paper & Chinese P&B production is projected to reach 140 Board production globally million tons by 2025 and 170 million tons by 2035 According to China Pulp & Paper Million industry 14th development plan, 180 170 tons Pro
Slide 18: Virgin wood pulp production increased by 17% in 2022
Virgin wood pulp production increased by 17% in 2022 2.59% Pulp consumption 22’-21’ YoY% Pulp production 113,0 110,1 5,4 +5% 103,2 5,5 Non-Wood -2% 99,7 100,3 101,0 102,0 97,0 6,0 97,1 86 93,4 5,9 5,2 Import 82 5,9 7,6 6,8 2,3 2,6 6,1 23,6 22,6 Wood-pulp -4% 0.72% 6 2,3 Non-wood pulp 6 8,3 2,1 2,8 1
Slide 19: Industry consolidation to accelerate with new capacity
Industry consolidation to accelerate with new capacity Top 5 producers represented 40% in 2022 Sorted by Paper & board production in 2022 Thousand tonne 19 November 14, 2023 © Valmet | Investor site visit to Jiading, Shanghai
Slide 20: Pulp and Paper market drivers
Pulp and Paper market drivers Board Tissue Pulp Service Board and Paper packaging as Hybrid Tissue market emerging and Upcoming installed base New capacity for fiber shortage. substitute of single-use plastic, e- Development Efficiency improvement and energy commerce boom. Forest-pulp-paper integrat
Slide 21: Valmet has a strong market position in China
Valmet has a strong market position in China
Slide 22: Valmet's customer base in China
Valmet’s customer base in China Pulp Paper Energy Process 上海白龙 港厂 Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 22 November 14, 2023 © Valmet | Investor site visit to Jiading, Shanghai
Slide 23: Valmet's market position in China
Valmet’s market position in China Services Automation Systems Flow Control Pulp Paper ~10% ~4% ~35% ~50% ~45% ~50% Valmet’s market share of target Valmet’s market share of target Valmet’s market share of target Valmet’s market share of target Valmet’s market share of target market market market mark
Slide 24: Valmet has a clear strategy to grow in China
Valmet has a clear strategy to grow in China
Slide 25: Valmet's Way Forward in China
Valmet’s Way Forward in China Process Technologies Services Automation Continue to improve cost Strong capability development in Expand Automation Systems competitiveness for mid-size Pulp, Tissue, Energy segments market share in marine & machines and projects Strong growth with Beihai rene
Slide 26: Summary
Summary Valmet <>
Slide 27: Today's key messages
Today’s key messages Valmet has a strong presence in China China is a large and growing market for Valmet Valmet has a strong market position in China Valmet has a clear strategy to grow in China 27 November 14, 2023 © Valmet | Investor site visit to Jiading, Shanghai
Slide 28: Valmet (China) Co., Ltd.
Valmet (China) Co., Ltd. 维美德(中国)有限公司 28
Slide 29: Our location
Our location Valmet (China) Co., Ltd (Jiading location) Downtown 42km, 50min Hongqiao Airport 40km, 40min. Pudong Airport 72km, 1hr
Slide 30: History of Valmet Jiading
History of Valmet Jiading 2006 2016 2021 Jan. 1st tissue machine Valmet Automation SCPMC sold 100% relocated from XIA and China relocated to shares to Metso Paper started manufacturing Jiading in Jiading Sep. Company name changed to Metso 2017 2022 Paper Technology 1st winder and tissue Shell weldin
Slide 31: Valmet (China) Co., Ltd
Valmet (China) Co., Ltd Operations started in 2006. Manufacturing including: Foundry, Welding & Plant area 150,000 square meters (225 Mu); Machining, Assembly, Cleaning and Painting 58,000 square meters (87 Mu) under roof
Slide 32: Approx. 800 professionals based in Jiading location
Approx. 800 professionals based in Jiading location Headcount by business line: Headcount by fuction: Sales (36) Supply Chain (38) China Area (30) GFO (24) Project Management (147) Technology (66) Paper (635) Pulp and Energy (54) Operation Excellence (35) Production (455) Services (43) Automation （6
Slide 33: FORWARD
FORWARD