Slide 1: Half Year Financial Review, January–June 2024
Orders received remained at the previous year’s level and amounted close to EUR 1.3 billion and Comparable EBITA decreased to EUR 141 million in the second quarter Half Year Financial Review, January–June 2024 July 24, 2024 Pasi Laine, President and CEO Katri Hokkanen, CFO
Slide 2: Agenda
Agenda Half Year Financial Review, January–June 2024 1 Q2/2024 in brief 2 Development of the segments and the business lines 3 Valmet continues its strategic path and refines its mission statement 4 Financial development 5 Guidance and short-term market outlook 2 July 24, 2024 © Valmet | Half Year F
Slide 3: Q2/2024 in brief
Q2/2024 in brief Valmet <>
Slide 4: Q2/2024 in brief
Q2/2024 in brief Orders received remained at the previous year’s level and amounted close to EUR 1.3 billion Net sales decreased to EUR 1.3 billion Order backlog amounted to EUR 3.8 billion Comparable EBITA decreased to EUR 141 million and margin was 10.6% Gearing was 45% 4 July 24, 2024 © Valmet |
Slide 5: Valmet in Q2/2024
Valmet in Q2/2024 Orders received Net sales Comparable EBITA (excl. Other) EUR 15 EUR million EUR EUR EUR 434 500 497 million 473 EUR million million EUR million 58 80 million EUR million EUR 352 351 million million Services Services Services Automation Automation Automation Process Technologies Pro
Slide 6: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 Target 12–14% 5,532 10.9% 5,330 5,074 9.8% 11.2% 11.2% 8.9% 10.5% 7.7% 3,935 3,740 7.1% 3,547 6.7% 3,325 3,058 2,420 2,166 2,928 2,926 Comparable EBITA, % 2,613 2,428 3,112 3,164 2,473 6.2% Capital Business 2,646
Slide 7: Orders received remained at the previous year’s level at close to EUR 1.3 billion
Orders received remained at the previous year’s level and amounted close to EUR 1.3 billion in Q2/2024 Orders received (EUR million) Orders received in H1/2024 by area 2,200 5,500 2,000 5,000 Asia-Pacific 1,800 4,500 15% North America 26% 1,600 4,000 1,400 1,283 3,500 1,200 3,000 China 9% 1,000 2,50
Slide 8: Stable business orders received totaled close to EUR 3.1 billion during the last twelve months
Stable business orders received totaled close to EUR 3.1 billion during the last twelve months Orders received (EUR million) in stable business Organic growth* 4,500 ~5% 4,000 CAGR 3,500 3,100 3,066 3,000 2,837 2,500 1,340 1,289 1,081 1,875 1,947 2,000 1,701 1,772 1,519 1,609 1,367 416 467 1,500 386
Slide 9: Order backlog EUR 3.8 billion at the end of Q2/2024
Order backlog EUR 3.8 billion at the end of Q2/2024 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,403 4,500 4,096 3,973 3,828 4,000 ~20% 3,500 3,333 3,257 3,000 2,829 ~50% 2,458 2,500 2,283 1,998 2,074 ~30% 2,000 1,500 1,000 500 0 Process Technologies 2014 2015 2016 2017
Slide 10: Development of the segments and the business lines
Development of the segments and the business lines
Slide 11: Services: Orders received remained at the previous year’s record-high level
Services: Orders received remained at the previous year’s record-high level at EUR 1.0 billion in H1/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) H1/2023: H1/2024: H1/2023: H1/2024: H1/2023: H1/2024: EUR 1,007 million EUR 1,024 million
Slide 12: Automation: Orders received decreased to EUR 681 million in H1/2024
Automation: Orders received decreased to EUR 681 million in H1/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) H1/2023: H1/2024: H1/2023: H1/2024: H1/2023: H1/2024: EUR 732 million EUR 681 million EUR 642 million EUR 659 million EUR 110 mi
Slide 13: Flow Control business line: Orders received decreased to EUR 389 million
Flow Control business line: Orders received decreased to EUR 389 million in H1/2024 Orders received (EUR million)* Net sales (EUR million)* H1/2023: H1/2024: H1/2023: H1/2024: EUR 427 million EUR 389 million EUR 389 million EUR 389 million 900 900 800 800 700 576 789 700 777 777 751 551 600 681 600
Slide 14: Automation Systems business line: Orders received at previous year’s level
Automation Systems business line: Orders received remained at the previous year’s level at EUR 291 million in H1/2024 Orders received (EUR million) Net sales (EUR million) H1/2023: H1/2024: H1/2023: H1/2024: EUR 304 million EUR 291 million EUR 252 million EUR 271 million 600 551 600 551 570 538 505
Slide 15: Process Technologies: Orders received increased from Q1/2024
Process Technologies: Orders received increased from Q1/2024 and amounted to EUR 434 million in Q2/2024 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) H1/2023: H1/2024: H1/2023: H1/2024: H1/2023: H1/2024: EUR 1,082 million EUR 628 million EUR
Slide 16: Pulp and Energy business line: Orders received increased from Q1/2024
Pulp and Energy business line: Orders received increased from Q1/2024 and amounted to EUR 187 million in Q2/2024 Orders received (EUR million) Net sales (EUR million) H1/2023: H1/2024: H1/2023: H1/2024: EUR 489 million EUR 243 million EUR 549 million EUR 447 million 1,600 1,600 1,400 1,344 1,400 1,1
Slide 17: Paper business line: Orders received increased from Q1/2024
Paper business line: Orders received increased from Q1/2024 and amounted to EUR 247 million in Q2/2024 Orders received (EUR million) Net sales (EUR million) H1/2023: H1/2024: H1/2023: H1/2024: EUR 593 million EUR 385 million EUR 702 million EUR 550 million 1,800 1,634 1,800 1,600 1,600 1,400 1,400 1
Slide 18: Valmet continues its strategic path and refines its mission statement
Valmet continues its strategic path and refines its mission statement
Slide 19: Mission statement refined to reflect changes in business portfolio and customer base
Mission statement refined to reflect the changes in our business portfolio and customer base Vision Continuous improvement and To become the global champion in Strategy renewal serving our customers and in moving the industries forward Valmet develops and supplies competitive and Must-Wins reliable
Slide 20: Financial development
Financial development Valmet <>
Slide 21: Key figures
Key figures EUR million Q2/2024 Q2/2023 Change Q1–Q2/2024 Q1–Q2/2023 Change Orders received 1,283 1,268 1% 2,333 2,821 -17% Order backlog1 3,828 4,414 -13% 3,828 4,414 -13% Net sales 1,324 1,417 -7% 2,536 2,738 -7% Comparable EBITA 141 153 -8% 262 286 -9% % of net sales 10.6% 10.8% -0.2 pp 10.3% 10.
Slide 22: Services segment key figures
Services segment key figures Q2 2024 in brief EUR million Q2/2024 Q2/2023 Change Orders received 497 430 15% Net sales 473 457 4% Comparable EBITA 80 80 0% % of net sales 16.9% 17.5% -0.6 pp • Orders received increased to EUR 497 million – Orders received of Tissue Converting, which was integrated i
Slide 23: Automation segment key figures
Automation segment key figures Q2 2024 in brief EUR million Q2/2024 Q2/2023 Change Orders received 352 340 4% Net sales 351 338 4% Comparable EBITA 58 61 -5% % of net sales 16.5% 17.9% -1.5 pp • Orders received remained at the previous year’s level at EUR 352 million – Automation Systems’ orders rec
Slide 24: Process Technologies segment key figures
Process Technologies segment key figures Q2 2024 in brief EUR million Q2/2024 Q2/2023 Change Orders received 434 497 -13% Net sales 500 623 -20% Comparable EBITA 15 30 -50% % of net sales 3.0% 4.8% -1.8 pp • Orders received decreased to EUR 434 million – Orders received of Tissue Converting amounted
Slide 25: Segment key figures
Segment key figures Orders received, EUR million Q2/2024 Q2/2023 Change Q1–Q2/2024 Q1–Q2/2023 Change Services 497 430 15% 1,024 1,007 2% Automation 352 340 4% 681 732 -7% Process Technologies 434 497 -13% 628 1,082 -42% Total 1,283 1,268 1% 2,333 2,821 -17% Net sales, EUR million Q2/2024 Q2/2023 Cha
Slide 26: 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) 1,800 27.1% 30% 1,800 30% 25.8% 24.6% 24.2% 25.2% 24.9% 1,500 22.1% 23.1% 23.1% 23.0% 25% 1,500 25% 19.1% 1,429 1,443 1,200 1,263 2
Slide 27: 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 capital1 and orders received (EUR million) 532 482 5,194 4,955 447 4,740 4,468 3,986 352 3,722 3,653 3,071 3,139 3,272 291 284 295 2,878 236 246 4% 3% -82 -238 -294
Slide 28: Net debt increased compared with Q1/2024
Net debt increased compared with Q1/2024 Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio 1,200 1,094 60% 1.63 1,027 1.60 1.46 939 1.36 1,000 50% 1.20 800 45% 40% 0.90 0.84 542 531 40% 39% 0.80 0.710.78 0.770.74 600 510 502 30% 21% 428 0.49 400 345 20% 0.35 13% 0.40 0.22 22% 23% 21%
Slide 29: 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 (%) 23% 23% 2.37 22% 2.28 4,180 4,055 2.09 2.02 20% 3,308 1.54 17% 1.35 16% 15% 1.01 14% 1,808 14% 1,639 0.81 13% 1,2
Slide 30: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 31: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2024 (Published on June 13, 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 increase in comparison with 2023 (EUR 619 mill
Slide 32: Q&A
Q&A 32 July 24, 2024 © Valmet | Half Year Financial Review, January–June 2024
Slide 33: Upcoming events: Interim Review and CEO change
Interim Review, January– Thomas Hinnerskov starts September 2024 as the President and CEO October 30, 2024 August 12, 2024 www.valmet.com/investors 33 July 24, 2024 © Valmet | Half Year Financial Review, January–June 2024
Slide 34: 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 35: Forward-looking statements
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