Valmet Corp · OMXHEX:VALMT
Valmet — Non-Deal Roadshow (March 2024)
101 slides from Valmet's roadshow presentation, March 2024
Slide 1: Valmet – unique offering to support a growing market
Valmet – unique offering to support a growing market Roadshow presentation March 2024
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financial targets and acquisitions 4 2023 financials, guidance and short-term market outlook 5 Summary 2 March 2024 © Valmet | Roadshow presentation
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Valmet's offering is unique and the widest in the market
Valmet’s offering is unique and the widest in the market Board and tissue Pulp Energy • Board, paper and tissue production lines • Wood and pulp handling • Heat and power generation • Tissue converting • Fiber processing • Air emission control • Rebuilds • Recovery • Pyrolysis solutions • Machine se
Slide 5: We have strong market positions
We have strong market positions Process technologies Services Automation Board and Pulp and Flow Control Automation Tissue Energy Systems Market position Market position Market position Market position Market position Pulp Energy Pulp and Energy and #1 #1–2 Pulp and Renewable paper process #2 #1–3 p
Slide 6: Valmet's development since 2013
Valmet’s development since 2013 Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%) 2013 figures on carve-out basis. 2013–2020 figures have not been restated to reflect the new segment reporting structure which Valmet implemented as of Jan
Slide 7: Valmet's key figures
Valmet’s key figures 2023 Net sales by segment Net sales by area Orders received EUR 4,955 million Net sales EUR 5,532 million Comparable EBITA EUR 619 million Comparable EBITA margin 11.2% Order backlog EUR 3,973 million Employees 19,160 7 March 2024 © Valmet | Roadshow presentation
Slide 8: Valmet has three strong segments
Valmet has three strong segments 2023 figures Net sales Comparable EBITA Comparable EBITA margin (excl. Other) (excl. Other) EUR EUR EUREUR million 16.0% 1,678 EUR EUR million million million 269 EUR millionmillion EUR million million 8 March 2024 © Valmet | Roadshow presentation
Slide 9: Global presence creating a good platform for growth in Services and Automation
Global presence creating a good platform for growth in Services and Automation EMEA 11,644 employees ~130 service centers China 2,432 employees 60 North America production units 2,273 employees 32 R&D centers Asia-Pacific 8 1,647 employees Performance South America Centers 1,164 employees Personnel
Slide 10: Valmet's Way Forward
Valmet’s Way Forward Vision Continuous improvement and To become the global champion in serving our customers and in Strategy renewal moving the industries forward Valmet develops and supplies competitive and Must-Wins reliable process technologies, services and Customer excellence automation to t
Slide 11: Valmet's R&D is aiming to address global megatrends
Valmet’s R&D is aiming to address global megatrends R&D focus areas • Promotion of renewable materials • Raw material, water and energy efficiency • Emission reductions • Circularity • Productivity and environmental improvements with digitalization 32 EUR 114 million ~1,500 research and R&D spending
Slide 12: Acknowledged leader in sustainability
Acknowledged leader in sustainability 360º approach to sustainability across value chain Environmental Engaged efficiency workplace Good sustainability ratings In Dow Jones Sustainability Index for the Climate Health and safety tenth consecutive year AAA rating in the MSCI ESG Ratings assessment
Slide 13: Valmet's Climate Program has progressed well
Valmet’s Climate Program has progressed well The target to enable carbon neutral production for pulp and paper industry customers achieved seven years ahead of schedule Targets by 2030 for the entire value chain SUPPLY CHAIN OWN OPERATIONS USE PHASE OF VALMET’S TECHNOLOGIES - 20% - 80% - 20% 100% CO
Slide 14: Investment highlights
Investment highlights Valmet <>
Slide 15: Valmet's investment highlights
Valmet’s investment highlights 1 Unique offering to support a growing market 2 Process Technologies segment benefiting from the growing demand for bio-based products and energy 3 EUR 3.1 billion recurring and steadily growing stable business 4 Services segment’s demand driven by large and growing gl
Slide 16: Unique offering to support a growing market
Unique offering to support a growing market Unique offering Strong market drivers Competitive advantage from Process Technologies • E-commerce and global trade the widest offering in the market • Renewable materials replacing plastic packaging • Conversions from paper to board • Energy transition an
Slide 17: Process Technologies segment benefiting from growing demand for bio-based products and energy
Process Technologies segment benefiting from the growing demand for bio-based products and energy • New pulp and paper capacity is needed as demand for bio- Net sales (EUR million) based products continues to grow • Energy transition creates a growing market for Valmet’s energy offering • Large old
Slide 18: EUR 3.1 billion recurring and steadily growing stable business
EUR 3.1 billion recurring and steadily growing stable business • Valmet’s stable business has grown Orders received (EUR million) steadily since 2014 • Future growth possibilities are supported by favorable megatrends • Stable business provides resilience to business cycles and makes Valmet’s order
Slide 19: Services segment's demand driven by large and growing global installed base
Services segment’s demand driven by large and growing global installed base Orders received (EUR million) • Valmet’s Services is a growing and recurring CAGR business ~5% • Demand driven by large and growing global installed base • Roughly EUR 8 billion addressable market estimated to grow 2% annual
Slide 20: Automation segment with high growth and profitability
Automation segment with high growth and profitability • Valmet’s Automation is a growing and recurring Orders received (EUR million) business • Large addressable target market estimated to grow ~3% annually • Target to continue to grow over two times the market growth • Sustainability, digitalizatio
Slide 21: Future growth possibilities from new sustainable innovations
Future growth possibilities from new sustainable innovations Textile fibres Valmet 3D fiber New bioproducts Flow Control and Automation Systems Technology to produce Next generation of molded Lignin usage to replace Solid position to grow in viscose pulp from recycled fiber fossil-based carb
Slide 22: Building Valmet on positive megatrends and strategy of renewal
Building Valmet on positive megatrends and strategy of renewal and continuous development Demand for bio-based New growth Steadily growing products and energy Strategy opportunities stable business continues to grow The large pulp and paper Future growth EUR 3.1 billion stable Strong track r
Slide 23: Financial targets and acquisitions
Financial targets and acquisitions
Slide 24: Financial targets
Financial targets Growth Profitability ROCE Dividend policy Net sales for Services and Comparable EBITA: Comparable return on Dividend payout at least Automation segments to 12–14% capital employed (ROCE) 50% of net profit grow over two times the before taxes1 at least 15% market growth Net sales fo
Slide 25: Concrete actions to reach Comparable EBITA target of 12–14% through must-wins
Concrete actions to reach Comparable EBITA target of 12–14% through must-wins Customer Technology Processes People Grow stable business Leverage strong R&D Ensure good project Increase procurement, over two times the for new product operations to reach a production and market growth innovati
Slide 26: Improvement in Comparable EBITA is the biggest driver for ROCE
Improvement in Comparable EBITA is the biggest driver for ROCE Main drivers for ROCE: Track record • Improvement in Comparable Capital employed (EUR million) Comparable ROCE (%, before taxes) EBITA is the biggest driver for ROCE • Capital employed increased in 2022 due to the Neles merger Target ≥15
Slide 27: Valmet has paid attractive dividend
Valmet has paid attractive dividend DPS Payout target at least 50% of net Payout % profit Payout % target (at least 50%) 1,35 1,30 Target has been exceeded every 1,20 year 81% Constant dividend growth 76% 0,90 68% 68% 64% 68% 70% 0,80 59% 58% 61% 0,65 0,55 Total payout (EUR) 0,25 0,35 0,42 in
Slide 28: Opportunities to strengthen segments through acquisitions
Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 11 acquisitions made since becoming an independent Process Technologies
Slide 29: Q4/2023 financials, guidance and short-term market outlook
Q4/2023 financials, guidance and short- term market outlook
Slide 30: Key figures
Key figures EUR million Q4/2023 Q4/2022 Change 2023 2022 Change Orders received 1,155 1,385 -17% 4,955 5,194 -5 % Order backlog1 3,973 4,403 -10% 3,973 4,403 -10 % Net sales 1,499 1,540 -3% 5,532 5,074 9% Comparable EBITA 183 196 -7% 619 533 16 % % of net sales 12.2 % 12.7 % -0.5 pp 11.2 % 10.5 % 0.
Slide 31: Segment key figures
Segment key figures Orders received, EUR million Q4/2023 Q4/2022 Change 2023 2022 Change Services 404 418 -3 % 1,760 1,756 0% Automation 319 324 -1 % 1,340 1,081 24 % Process Technologies 432 644 -33 % 1,856 2,356 -21 % Total 1,155 1,385 -17 % 4,955 5,194 -5 % Net sales, EUR million Q4/2023 Q4/2022
Slide 32: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 Target 12–14% Comparable EBITA, 54 106 182 196 218 257 316 365 429 533 619 (EUR million) 1. Valmet implemented IFRS 15 – Revenue from Contracts with Customers as of January 1, 2018 by applying full retrospective
Slide 33: Strong balance sheet enabling solid operations, dividends and growth
Strong balance sheet enabling solid operations, dividends and growth also through acquisitions Net debt (EUR million) and gearing (%) Net debt to EBITDA ratio Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not res
Slide 34: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2024 (Published on February 7, 2024) Guidance Valmet estimates that net sales in 2024 will remain at the previous year's level in comparison with 2023 (EUR 5,532 million) and Comparable EBITA in 2024 will remain at the previous year's level or incr
Slide 35: Summary
Summary Valmet <>
Slide 36: Valmet's investment highlights
Valmet’s investment highlights 1 Unique offering to support a growing market 2 Process Technologies segment benefiting from the growing demand for bio-based products and energy 3 EUR 3.1 billion recurring and steadily growing stable business 4 Services segment’s demand driven by large and growing gl
Slide 37: Important notice
Important notice It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for growth, profitability and investment willingness, expectations fo
Slide 38: FORWARD
FORWARD
Slide 39: Appendix
Appendix 1 Financials 2 Growth and profitability improvement 3 Shareholders and share price development 4 Offering 5 Management and remuneration 39 March 2024 © Valmet | Roadshow presentation
Slide 40: Financials
Appendix ; Financials Valmet <>
Slide 41: Quarterly Comparable EBITA margin development
Quarterly Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) Target 12–14% Comparable EBITA 31 57 52 56 34 48 56 81 22 61 61 113 47 69 81 118 52 76 91 146 80 95 107 147 79 122 136 196 133 153 150 183 (EUR million) 41 March 2024 © Valmet | Roadshow presentation
Slide 42: Comparable gross profit and SG&A expenses development
Comparable gross profit and SG&A expenses development Comparable gross profit Comparable SG&A expenses (EUR million and % of net sales) (EUR million and % of net sales) • Comparable gross profit was 26.4% of net sales in Q4/2023 (25.6% in Q4/2022) – Stable business represented 59% of net sales (56%
Slide 43: 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 (%) • Integration of Flow Control into Valmet in Q2/2022 and the completion of • Adjusted EPS decreased mainly due to
Slide 44: 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) • Cash flow provided by operating activities amounted to EUR 352 million in 2023 and EUR 123 million in Q4/2023 • CAPEX1 a
Slide 45: Services: Orders received remained at previous year's level
Services: Orders received remained at the previous year’s level at EUR 1,760 million in 2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) 2022: 2023: 2022: 2023: 2022: 2023: EUR 1,756 million EUR 1,760 million EUR 1,606 million EUR 1,784 mil
Slide 46: Automation: Orders received increased to EUR 1,340 million in 2023
Automation: Orders received increased to EUR 1,340 million in 2023 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) 2022: 2023: 2022: 2023: 2022: 2023: EU
Slide 47: Flow Control: Orders received amounted to EUR 789 million in 2023
Flow Control: Orders received amounted to EUR 789 million in 2023 Orders received (EUR million)* Net sales (EUR million)* 2022: 2023: 2022: 2023: EUR 772 million* EUR 789 million EUR 717 million* EUR 777 million • Orders received amounted to EUR 789 million in 2023 • Net sales amounted to EUR 777 mi
Slide 48: Automation Systems: Orders received increased to EUR 551 million
Automation Systems: Orders received increased to EUR 551 million in 2023 Orders received (EUR million) Net sales (EUR million) 2022: 2023: 2022: 2023: EUR 505 million EUR 551 million EUR 489 million EUR 551 million • Orders received increased compared with 2022 – Orders received increased in North A
Slide 49: Process Technologies: Orders received decreased to EUR 1,856 million
Process Technologies: Orders received decreased to EUR 1,856 million in 2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) 2022: 2023: 2022: 2023: 2022: 2023: EUR 2,356 million EUR 1,856 million EUR 2,428 million EUR 2,420 million EUR 145 mil
Slide 50: Pulp and Energy business line: Orders received decreased
Pulp and Energy business line: Orders received decreased to EUR 854 million in 2023 Orders received (EUR million) Net sales (EUR million) 2022: 2023: 2022: 2023: EUR 1,072 million EUR 854 million EUR 1,081 million EUR 1,067 million • Orders received decreased compared with 2022 – Orders received inc
Slide 51: Paper business line: Orders received decreased
Paper business line: Orders received decreased to EUR 1,002 million in 2023 Orders received (EUR million) Net sales (EUR million) 2022: 2023: 2022: 2023: EUR 1,285 million EUR 1,002 million EUR 1,347 million EUR 1,353 million • Orders received decreased compared with 2022 – Orders received increased
Slide 52: Orders received remained at previous year's level
Orders received remained at the previous year’s level and amounted to EUR 4,955 million in 2023 Orders received (EUR million) Orders received in 2023 by Area (EUR million) • Orders received increased in South America, remained at the previous year's level in North America and decreased in EMEA, Chin
Slide 53: Order backlog EUR 3,973 million at the end of 2023
Order backlog EUR 3,973 million at the end of 2023 Order backlog (EUR million) Structure of order backlog by segment • Order backlog was EUR 430 million lower than at the end of 2022 • Approximately 85% of the order backlog is currently expected to be realized as net sales during 2024 (at the end of
Slide 54: Announced orders booked in H2/2023
Announced orders booked in H2/2023 Booked quarter Date Description Business line Country Value Q3 Oct 2 An Advantage DCT 200 tissue production line to Sofidel Paper USA Not disclosed. Q3 Oct 25 Multiple technologies to Liansheng Pulp & Paper Paper, Pulp and Energy China Not disclosed Q4 Oct 10 A bio
Slide 55: Announced orders booked in H1/2023
Announced orders booked in H1/2023 Booked Date Description Business line Country Value quarter Q1 Feb 23 Coated board machine to Graphic Packaging International Paper USA Not disclosed, but an order of this type and scope is typically valued at EUR 140–180 million. Q1 Mar 2 Tissue line order for Met
Slide 56: Orders received and profitability development, annual
Orders received and profitability development, annual Orders received (EUR million)1 Net sales and Comparable EBITA (EUR million)1 4,955 116 159 205 192 54 106 182 196 218 257 316 365 429 533 619 Comparable EBITA (EUR million) 1) Carve-out figures for 2010-2013; as reported for Metso’s Pulp, Paper a
Slide 57: Orders received and net sales split in 2023
Orders received and net sales split in 2023 Orders received (EUR million and % of total) Net sales (EUR million and % of total) 57 March 2024 © Valmet | Roadshow presentation
Slide 58: Services segment in 2023
Services segment in 2023 Orders received Orders received by Orders received by area Orders received by business customer segment EUR 1,760 million Net sales EUR 1,784 million Employees 6,493 Market position #1–2 Services 58 March 2024 © Valmet | Roadshow presentation
Slide 59: Flow Control business line in 2023
Flow Control business line in 2023 Orders received by Orders received by area Orders received by business Orders received customer industry EUR 789 million Net sales EUR 777 million Employees 2,841 Market position #1 Pulp and Paper #1–2 Industrial Gases Top 10 Refining and Chemicals 59 March 2024 ©
Slide 60: Automation Systems business line in 2023
Automation Systems business line in 2023 Orders received by industry Orders received by area Orders received by product Orders received EUR 551 million Net sales EUR 551 million Employees 2,330 Market position #1–3 Pulp and Paper #2–4 Energy and Process Service 52% Capital 48% 60 March 2024 © Valmet
Slide 61: Pulp and Energy business line in 2023
Pulp and Energy business line in 2023 Orders received by industry Orders received by area Orders received by scope Orders received EUR 854 million Net sales EUR 1,067 million Employees 1,948 Market position #2 Pulp #1–3 Energy 61 March 2024 © Valmet | Roadshow presentation
Slide 62: Paper business line in 2023
Paper business line in 2023 Orders received Orders received by paper grade Orders received by area Orders received by scope EUR 1,002 million Net sales EUR 1,353 million Employees 4,759 Market position #1 Tissue #1 Board #1 Paper 62 March 2024 © Valmet | Roadshow presentation Tissue Converting becam
Slide 63: Areas: Orders received and net sales development
Areas: Orders received and net sales development North America South America EMEA China Asia-Pacific (EUR million and % of total) Orders received (EUR million and % of total) Net sales 2013 figures on a carve-out basis. 63 March 2024 © Valmet | Roadshow presentation
Slide 64: Areas: Business line split in 2023
Areas: Business line split in 2023 North America South America EMEA China Asia-Pacific Orders received Net sales Figures have not been restated. 64 March 2024 © Valmet | Roadshow presentation
Slide 65: Growth and profitability improvement
Appendix Growth and profitability improvement
Slide 66: Strong track record of net sales growth in all segments
Strong track record of net sales growth in all segments Services Automation Process Technologies Net sales (EUR million) Net sales (EUR million) Net sales (EUR million) EUR +840 million EUR +752 million EUR +1012 million 66 March 2024 © Valmet | Roadshow presentation
Slide 67: Unique offering to support a growing market
Unique offering to support a growing market Unique offering Strong market drivers Competitive advantage from Process Technologies • E-commerce and global trade the widest offering in the market • Renewable materials replacing plastic packaging • Conversions from paper to board • Energy transition an
Slide 68: Building Valmet on positive megatrends and strategy of renewal
Building Valmet on positive megatrends and strategy of renewal and continuous development Demand for bio-based New growth Steadily growing products and energy Strategy opportunities stable business continues to grow The large pulp and paper Future growth EUR 3.1 billion stable Strong track r
Slide 69: Concrete actions to reach Comparable EBITA target of 12–14% through must-wins
Concrete actions to reach Comparable EBITA target of 12–14% through must-wins Customer Technology Processes People Grow stable business Leverage strong R&D Ensure good project Increase procurement, over two times the for new product operations to reach a production and market growth innovati
Slide 70: Process Technologies segment benefiting from growing demand
Process Technologies segment benefiting from the growing demand for bio-based products and energy • New pulp and paper capacity is needed as demand for bio- Net sales (EUR million) based products continues to grow • Energy transition creates a growing market for Valmet’s energy offering • Large old
Slide 71: Services segment's demand driven by large and growing installed base
Services segment’s demand driven by large and growing global installed base Orders received (EUR million) • Valmet’s Services is a growing and recurring CAGR business ~5% • Demand driven by large and growing global installed base • Roughly EUR 8 billion addressable market estimated to grow 2% annual
Slide 72: Automation segment with high growth and profitability
Automation segment with high growth and profitability • Valmet’s Automation is a growing and recurring Orders received (EUR million) business • Large addressable target market estimated to grow ~3% annually • Target to continue to grow over two times the market growth • Sustainability, digitalizatio
Slide 73: Procurement and quality cost development
Procurement and quality cost development Implemented procurement savings of annual direct spend Quality costs (% of net sales) <1.5% Targeting >3% of procurement savings annually Long-term quality costs goal <1.5% of net sales • Increasing local and cost-competitive country purchases • Adding focus
Slide 74: Opportunities to strengthen segments through acquisitions
Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 11 acquisitions made since becoming an independent Process Technologies
Slide 75: Acquisitions in 2023
Acquisitions in 2023 NovaTech Automation’s Process Solutions business • The acquisition strengthens Valmet’s Automation segment with a reliable batch distributed control system (DCS) • Net sales amounted to approximately USD 18 million in 2022 and the business operates in the United States and the B
Slide 76: Merger of Valmet and Neles created a leading company
Merger of Valmet and Neles created a leading company with a unique offering for process industries globally Merger of Valmet and Neles was registered and the combination of Valmet’s and Neles’ business operations completed on April 1, 2022 Valmet acquired 29.5% of Neles shares in 2020 for EUR 45
Slide 77: Acquisition of Körber's Business Area Tissue
Acquisition of Körber’s Business Area Tissue Acquisition in brief • On July 7, 2023, Valmet entered into an agreement to acquire Körber Group’s Business Area Tissue. The transaction was closed on November 2, 2023 • The enterprise value is approximately EUR 380 million1 • The acquired business will o
Slide 78: Acquisition of the Process Gas Chromatography business of Siemens
Acquisition of the Process Gas Chromatography business of Siemens Acquisition in brief • Valmet entered into an agreement on July 14, 2023, to acquire the Process Gas Chromatography business of Siemens AG • The enterprise value is EUR 102.5 million1 • The acquisition is estimated to be completed on
Slide 79: Shareholders and share price development
Appendix Shareholders and share price development
Slide 80: Largest shareholders on February 29, 2024
Largest shareholders on February 29, 2024 Based on indicative data collected by Modular Finance # Shareholder name Number of shares % of shares and votes 1 Oras Invest Oy 19,200,000 10.40% 2 Solidium Oy 18,640,665 10.10% 3 Swedbank Robur Fonder 8,867,933 4.81% 4 Varma Mutual Pension Insurance Compan
Slide 81: Shareholder structure on February 29, 2024
Shareholder structure on February 29, 2024 Based on Euroclear data. The classification of sectors determined by Statistics Finland. 81 March 2024 © Valmet | Roadshow presentation
Slide 82: Share of non-Finnish holders and number of shareholders
Share of non-Finnish holders and number of shareholders At the end of February 2024, Valmet had 101,872 shareholders and 39% of the shares were held by investors outside Finland 82 March 2024 © Valmet | Roadshow presentation
Slide 83: Valmet share price development
Valmet share price development Valmet share price development vs OMXH price index, last 3 years Share price during 2024 Valmet OMX Helsinki 45 December 31, 2023 26.11 10,098 February 29, 2024 24.21 9,840 40 High 27.82 10,313 Low 23.56 9,651 Market cap (EUR million) 4,467 35 Volume 2024 % of outstand
Slide 84: Offering
Appendix Offering Valmet <>
Slide 85: Competitive advantages: Services
Services: Strong market position with market’s widest offering Performance Parts Fabrics Rolls and workshop Board, Paper and Tissue Pulp and Energy services Solutions Solutions Spare parts Paper machine clothing Rolls Improvement projects Improvement projects Offering Consumables Filte
Slide 86: Services: Unified way to serve aims at excellent customer experience
Services: Unified way to serve aims at excellent customer experience We aim to Sales actions Continuous High customer understand customer planned based on collaboration through satisfaction strategy and needs customer needs lifecycle approach Understanding customer strategy Aligning custom
Slide 87: Flow Control: High-quality product portfolio for valve and valve automation needs
Flow Control: High-quality product portfolio for valve and valve automation needs Flow Control market position1 Valve controllers • Valve controllers for control and on-off valves • Intelligent safety solenoids # 2–3 • Limit switches Actuators • Pneumatic actuators • Hydraulic actuators # 5–7 • Elec
Slide 88: Competitive advantages: Automation Systems
Automation Systems: High technology and competitive offering Distributed Control Systems (DCS) Quality Management Systems (QMS) Analyzers and Measurements • Highly integrated, renewing Valmet DNA • Valmet IQ Quality control system for pulp and • For measuring and optimizing different Automation Syst
Slide 89: Automation Systems: Customers investing in improving their operations
Automation Systems: Customers investing in improving their operations Real-time & predictive control and optimization secure connection to cloud 5. Optimization Applications Optimized production of the entire mill, plant or fleet 1. Distributed Control Systems Reliable process control Data Control 3
Slide 90: Competitive advantages: Pulp and energy technology offering
Leading pulp and energy technology offering Pulp Energy Complete mills and lines Single islands and products Boilers and power plants Rebuilds and conversions • Complete chemical pulp mills • Chemical pulp mill islands • Fluidized bed boilers – using • Boiler fuel conversions from from wood handling
Slide 91: Unmatched scope in Board, Paper and Tissue
Unmatched scope in Board, Paper and Tissue New instalments Rebuilds Single products Board Stock preparation and Capacity and quality recycled fiber lines improvements e.g., headboxes, press rebuilds, Paper, board and tissue surface treatment, winders, refiners machinery Focus on productivity Paper A
Slide 92: Valmet Tissue Converting: Creating the market's widest offering for tissue industry
Valmet Tissue Converting: Creating the market’s widest offering for tissue industry Technologies, services and automation for the entire tissue value chain – from fiber to a finished end product Stock preparation Tissue machine Tissue rewinder Converting line • With Tissue Converting, Valmet now has
Slide 93: Driving rebuilds towards resource-efficient board production
Driving rebuilds towards resource-efficient board production Energy consumption1 Fiber savings1 Optimized performance Bio-packaging -18% -10% with Industrial Internet with new coating solutions 2012–2022: 2012–2022: solutions from 1,150 to 950 kWh/t from 100 to 90 g/m2 OptiFlo with OptiFormer OptiPr
Slide 94: Driving development of resource-efficient tissue production
Driving development of resource-efficient tissue production 47% less energy1 80% less water1 Less fiber consumption2 Energy /ton paper [kWh/ton] Water /ton paper [m3/ton] 3 330 3 106 12,0 2 850 2 150 1 960 1 800 1 750 7,0 5,5 4,5 4,0 3,6 2,1 • Hybrid technologies • ViscoNip press 1990 2000 2006 2010
Slide 95: Management and remuneration
Appendix Management and remuneration
Slide 96: Board of Directors
Board of Directors Mikael Mäkinen Jaakko Eskola Aaro Cantell Anu Hämäläinen (b. 1956) (b. 1958) (b. 1964) (b. 1965) Chair of Vice Chair of the Board member Board member the Board Board Finnish citizen Finnish citizen Finnish citizen Finnish citizen • M.Sc. (Econ.) • M.Sc. (Eng.) • M.Sc. (Eng.) • M.S
Slide 97: Executive Team
Executive Team Corporate Pasi Laine Katri Hokkanen Anu Salonsaari-Posti Janne Pynnönen President and CEO CFO SVP, Marketing, Communications, SVP, Operational Development Share ownership: 185,946 Share ownership: 7,145 Sustainability and Corporate Relations Share ownership: 1,087 Share ownership: 33,
Slide 98: Remuneration of the President and CEO
Remuneration of the President and CEO The remuneration of the President and CEO is comprised of – fixed salary (monthly base salary and customary fringe benefits1) – short-term and long-term incentives, and – pension benefits and customary insurances. In 2022, the President and CEO’s monthly fix
Slide 99: Remuneration of the Executive Team
Remuneration of the Executive Team The remuneration of the Executive Team members comprises – fixed base salary (incl. monthly salary and taxable benefits1) – short-term and long-term incentives, and – a supplementary pension plan Additional pension benefit in the form of a defined contribution
Slide 100: Current Performance Share Plans and Deferred Share Plans
Current Performance Share Plans and Deferred Share Plans LTI plan 2022–2024 LTI plan 2023–2025 LTI plan 2024–2026 Plan name PSP and DSP PSP PSP and DSP PSP DSP PSP Performance period 2022 (1 year) 2022–2024 (3 2023 (1 year) 2023–2025 (3 years) 2024 2024, 2024–2026 years) Incentive based on • Compara
Slide 101: FORWARD
FORWARD