Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (March 2015)
21 slides from Valmet's investor day presentation, Mar 19, 2015
Slide 1: Profitable growth through leading technologies and industry-wide expertise
Profitable growth through leading technologies and industry-wide expertise Jukka Tiitinen, President, Services Business Line Valmet Capital Markets Day March 19, 2015
Slide 2: Agenda
Agenda Capital Markets Day 2015 1 Services business line in brief 2 Performance in 2014 3 Market and market position 4 Must-Wins in Services 5 Case examples 6 Summary 2 March 19, 2015 © Valmet | Jukka Tiitinen, Capital Markets Day 2015
Slide 3: Services business line in brief
Services business line in brief
Slide 4: Services business line in brief
Services business line in brief 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% production and maintenance, long- term partnership 7% 2014 f
Slide 5: Services offering
Services offering Comprehensive life-cycle services offering PressRhino composite roll cover for press rolls Greenpac board mill Valmet’s eServices online application Filter fabrics Evaporation plant in Metsä Board’s mill in Kaskinen Rolls and Mill Performance Fabrics Energy and Workshop Improvement
Slide 6: Performance in 2014
Performance in 2014 Valmet <>
Slide 7: Key actions and results in 2014
Key actions and results in 2014 Orders increased in challenging market situation Orders received Net sales Employees (EUR million) (EUR million) -1% +2% -4% 1,035 1,055 1,032 5,295 5,230 989 2013 2014 2013 2014 2013 2014 • 2% annual growth in orders received • New units at customer mills – now • Gro
Slide 8: Market and market position
Market and market position Valmet <>
Slide 9: Services market position
Services market position Target market size is approximately EUR 7.5 billion Valmet’s market share Market position1 Valmet ~EUR 1 bn • Competitors vary from global companies #1-2 to local niche suppliers • Broadest and competitive offering with strong process and machinery know-how close to the cust
Slide 10: Competition in pulp, paper and energy services
Competition in pulp, paper and energy services Fragmented landscape and tough competition Global Global/regional Regional/global Local Maintenance competitors with product-focused selective-scope competition outsourcing a wide offering competition competition partners • Global presence • Global/regi
Slide 11: Market drivers
Market drivers Anticipated long-term market growth Estimated market size for the current offering (EUR) Services Valmet’s market share ~2% 7.5 ~13% p.a. bn Market • Growth in industrial services due to increasing outsourcing of non-core operations drivers • Capacity increases in China, South America
Slide 12: Must-Wins in Services
Must-Wins in Services Valmet <>
Slide 13: Must-Wins in Services
Must-Wins in Services Must-Wins Must-Win initiatives Customer Customer • Increase sales in growth countries • Expand our at the mill / plant offering excellence excellence • Develop sales operations and KPIs • Implement growth plans • Increase agreement based sales Leader in • Continuous flow of new
Slide 14: Strengthen our presence close to customers and growth markets
Strengthen our presence close to customers and growth markets Current status and targets Key renewal actions Global service network Business development in countries with high pulp, energy and paper production • Building of the Indonesian service center (part of Asian growth plan) • Maranhão service
Slide 15: Drive services growth through long-term agreements
Drive services growth through long-term agreements Current status and targets Key renewal actions Growth in long-term agreements (indexed) • Standardize services agreement offering concept • Report customer benefits 131 100 120 • Actively promote roll satellite concept 2012 2013 2014 • Actively prom
Slide 16: Case examples
Case examples Valmet <>
Slide 17: Valmet Services
Valmet Services Leading technologies and expertise close to customers Increased Improved Reduced costs reliability performance 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 18: Real-life examples
Real-life examples Creating customer value Showing the way forward in roll Improved plant shutdown performance eServices to enhance cost reductions maintenance at customer sites Increased reliability Improved performance Reduced costs Valmet roll satellite at Verso Liquor to Liquor Over 1,000,000 it
Slide 19: Summary
Summary Valmet <>
Slide 20: Services summary
Services summary Profitable growth through leading technologies and industry-wide expertise Strong market position in a growing market Expanding to new areas with high pulp, energy and paper production Renewal through new concepts to increase growth and improve profitability Growing, profitable and
Slide 21: FORWARD
FORWARD