Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (June 2025)
63 slides from Valmet's investor day presentation, Jun 5, 2025
Slide 1: Valmet Capital Markets Day 2025
Valmet Capital Markets Day 2025
Slide 2: Agenda
Agenda 12:00 Opening of Valmet’s CMD 2025 13:35 Process Performance Solutions – Unlocking resource efficiency Pekka Rouhiainen, VP Investor Relations Emilia Torttila-Miettinen, EVP Automation Solutions Simo Sääskilahti, EVP Flow Control 12:05 Lead the way – Our route to more integrated customer Q&A
Slide 3: Our Executive Leadership Team as of July 1st, 2025
Our Executive Leadership Team as of July 1st, 2025 Deep experience and fresh perspectives ◼ Speakers today ◼ Thomas Hinnerskov ◼ With Valmet or predecessor since President and CEO ◼ 2024 ◼ Katri Hokkanen ◼ Emilia Torttila-Miettinen ◼ Simo Sääskilahti ◼ Sami Riekkola ◼ Petri Rasinmäki ◼ Aki Niemi CFO
Slide 4: Break-out sessions
Break-out sessions Valmet DNAe showroom Valmet Mill-Wide Optimization Presenters Presenters Emilia Torttila-Miettinen Anton Meuronen Jari Almi Matias Hultgren EVP, Automation Solutions Product Manager, Automation Solutions VP, Automation Solutions Technical Manager, Automation Solutions There is a g
Slide 5: Valmet Investor Relations
Valmet Investor Relations Tuuli Oja Emil Reinikainen Anna-Mari Kautto ValmetIR Pekka Rouhiainen Manager, Investor Analyst, Investor Executive Assistant to VP, Investor Relations Relations Relations CFO Valmetglobal valmet_sijoituskohteena (in Finnish) tuuli.oja@valmet.com emil.reinikainen@valmet.com
Slide 6: Valmet's key figures
Valmet´s key figures Comparable Q1 2025 LTM ROCE before taxes = (profit before taxes + interests and other financial expenses +/- items affecting comparability) / (balance sheet total - non-interest-bearing liabilities (average for the period)) Biomaterial Solutions Process Performance EUR 5,331 Val
Slide 7: Biomaterials Solutions and Services segment's offering
Biomaterials Solutions and Services segment’s offering Pulp, Energy and Circularity Packaging and Paper Tissue Pulp Board Tissue • Chemical pulp mills and single • Full board production lines • Full tissue production lines islands • Machine sections • Converting and packaging lines • Mechanical pulp
Slide 8: Process Performance Solutions segment's offering
Process Performance Solutions segment’s offering Automation Solutions Flow Control Distributed Control Systems Valve controllers • Highly integrated, next-generation Valmet DNAe • Valve controllers for control and on- automation System for process control, monitoring off valves and applications for
Slide 9: Global presence creating a good platform for growth
Global presence creating a good platform for growth in Biomaterial services and Process Performance Solutions EMEA 11,068 employees China 2,382 employees 115 service centers North America 2,496 employees 76 production units Asia-Pacific 34 1,731 employees R&D centers South America 1,555 employees As
Slide 10: Lead the Way – Our route to more integrated customer service
Lead the Way – Our route to more integrated customer service, higher performance and increased shareholder returns Thomas Hinnerskov, President and CEO
Slide 11: Our new Lead the Way strategy delivers a strong value proposition
Our new Lead the Way strategy delivers a strong value proposition Our new 2030 financial targets 1. Lead the Way strategy to create a simpler, bolder, more ambitious Valmet 5% Organic growth CAGR over the cycle (L10Y ~4%) 2. Strong fundamentals to unlock existing potential and value 15% Comparable E
Slide 12: Lead the Way: Transforming industries towards a regenerative tomorrow
Lead the Way Transforming industries towards a regenerative tomorrow Biomaterial Process Performance Solutions and Services Solutions ADVANCING CIRCULARITY UNLOCKING RESOURCE EFFICIENCY Seamless lifecycle approach to Leading lifecycle value, reliability grow in services and technology and customer e
Slide 13: We have a strong foundation
We have a strong foundation Biomaterial Solutions and Services Process Performance Solutions Position in biomaterial markets Organic net sales growth (CAGR) #1-2 with world-leading references 6% 2017–2024 Of net sales from diverse industries 21% Market share in biomaterial services >60% outside of b
Slide 14: We will take Valmet to a new level of performance
We will take Valmet to a new level of performance ... elevated to next level of performance More focused, bolder strategy Differentiated, competitive businesses… Four strong fundamentals Fewer, more ambitious strategic initiatives World-leading technology Disciplined capital allocation focusin
Slide 15: Our strategy is built on four strong fundamentals
Our strategy is built on four strong fundamentals CUSTOMER LIFECYCLE GLOBAL ACCOUNTABILITY SUCCESS COMMITMENT COMPETITIVENESS Using leading technology Growing and serving our Competing worldwide Operating as a high- and innovative solutions leading installed base with lower product costs performing,
Slide 16: Our renewed operating model is simpler and stronger
Our renewed operating model is simpler and stronger Two focused missions Global Supply unit Biomaterial Solutions and Services Ensuring cost competitiveness in Process Performance Solutions Biomaterial Solutions and Services Renewed Operating Model Five strong business areas Functions integrated glo
Slide 17: We will double services growth through our new operating model
We will double services growth through our new operating model A one team approach to Doubling services deliver customer lifecycle value growth target in Biomaterial Solutions and Services to Staying close to customers, with end-to-end accountability 8% Organic growth CAGR Business area approach to
Slide 18: We are reshaping mindset and culture
We are reshaping mindset and culture Technology first → Customer success first Separated projects and services → Lifecycle-centered approach Matrixed and complex → Accountable and empowered Continuous improvement → Bold multi-year targets 100+ initiatives based on Must-Wins → 3–5 strategic initiativ
Slide 19: Lead the Way: financial targets by 2030
Lead the Way 5% Organic growth CAGR over the cycle Strong fundamentals 15% Renewed operating model Comparable EBITA margin 20% Mindset shift Comparable ROCE Financial targets by 2030
Slide 20: Biomaterial Solutions and Services – Advancing circularity
Biomaterial Solutions and Services – Advancing circularity Sami Riekkola, EVP Pulp, Energy and Circularity Petri Rasinmäki, EVP Packaging and Paper, interim EVP Tissue Aki Niemi, EVP Global Supply
Slide 21: Three full lifecycle business areas
Biomaterial Solutions and Services – Three full lifecycle business areas Q1 2025 LTM Pulp, Energy and Circularity Packaging and Paper Tissue Net sales Comparable EBITA 15% EUR 3,864 million 50% 50% 40% 405 million EUR Net sales organic CAGR 2014–2024 45% 10.5% ~3% ◼ Services ◼ Pulp, Energy and Circu
Slide 22: Clear strategic priorities drive our ambitious financial targets
Clear strategic priorities drive our ambitious financial targets Seamless lifecycle approach to grow in services and technology Double the organic growth (CAGR) in Relentless drive for Biomaterial product cost competitiveness Services to 8% Comparable EBITA Continuous innovation with customers, marg
Slide 23: We are a global leader with strong lifecycle offerings
We are a global leader with strong lifecycle offerings Pulp, Energy and Circularity Packaging and Paper Tissue Pulp Energy Circularity Board Paper Tissue #1–2 #1–3 Strong #1 #1 #1 market position market position innovation market position market position market position track record Services #1–2 ac
Slide 24: Global market growth increases demand for our lifecycle approach
Global market growth increases demand for our lifecycle approach Global pulp demand, Mt Global board demand, Mt Global tissue demand, Mt 2% p.a. 2% p.a. 285 265 2% p.a. 245 <1% p.a. 189 171 175 2% p.a. 2% p.a. 40 43 47 2020 2024 F2028 2020 2024 F2028 2020 2024 F2028 Pulp demand growth accelerating P
Slide 25: Double the organic growth (CAGR) in Biomaterial Services to 8%
Seamless lifecycle approach to grow in services and technology Double the organic growth (CAGR) in Relentless drive for Biomaterial product cost competitiveness Services to 8% Comparable EBITA Continuous innovation with customers, margin 14% by 2030 leading the way towards circularity 25 June 5, 202
Slide 26: Our new operating model sharpens lifecycle focus
Our new operating model sharpens lifecycle focus Strengthening services focus in business areas Our best projects deliver twice the average service value – tying services and process technologies together amplifies services focus Business areas organized by customer industries... Optimizing R&D, pro
Slide 27: Customers see the benefit of our lifecycle commitment
Customers see the benefit of our lifecycle commitment Customer reference video 27 June 5, 2025 © Valmet | Capital Markets Day 2025 | Biomaterial Solutions and Services
Slide 28: In Tissue, our end-to-end lifecycle concept maximizes customer value
In Tissue, our end-to-end lifecycle concept maximizes customer value Valmet solutions, services, automation and digital optimization Stock Tissue Tissue Tissue Winder preparation machine converting packaging Benefits across investment planning, ramp-up and use phase 28 June 5, 2025 © Valmet | Capita
Slide 29: We have a unique competitive advantage in delivering full Tissue lifecycle
We have a unique competitive advantage in delivering full Tissue lifecycle Key capabilities Valmet Peer 1 Peer 2 Peer 3 Peer 4 Mill layout and concept planning Tissue manufacturing Tissue converting1 Tissue packaging1 Services offering across all steps Digital solutions leveraging data across the va
Slide 30: We are unlocking services potential in the global installed base
We are unlocking services potential in the global installed base Unified global and local teams serving our customers Streamlined decision-making and faster servicing, improving the customer experience Digital tools driving customer value across installed base Expanding digital installed base covera
Slide 31: Our actions will re-accelerate services market share growth
Our actions will re-accelerate services market share growth Valmet Biomaterial Services market share 25% 21% 21% Customer-centric, industry- specific lifecycle focus 13% Digital enablement to leverage our installed base Investing in selected growth pockets and categories Cost competitiveness 2013 20
Slide 32: Double the organic growth (CAGR) in Biomaterial Services to 8%
Seamless lifecycle approach to grow in services and technology Double the organic growth (CAGR) in Relentless drive for Biomaterial product cost competitiveness Services to 8% Comparable EBITA Continuous innovation with customers, margin 14% by 2030 leading the way towards circularity 32 June 5, 202
Slide 33: Global Supply represents a step-change in cost competitiveness
Global Supply represents a step-change in cost competitiveness Global Supply responsibilities Biomaterial Solutions and Services Full Valmet Direct procurement Indirect procurement Most production activities Health, safety and environment, quality management, and facilities actions Logistics EUR CCC
Slide 34: Key changes in how we manage global supply
Key changes in how we manage global supply From scattered manufacturing and procurement … to a single, centrally managed Global Supply organizations… organization Fragmented supplier base in each Supplier consolidation leveraging global business area volumes Each unit developing their own production
Slide 35: We will increase our competitiveness with a flexible world-class supply chain
We will increase our competitiveness with a flexible world-class supply chain Cost competitiveness Production footprint and Developing capability and resiliency logistic optimization and expertise Increased sourcing from Balancing our global production Capability to transfer technologies cost compet
Slide 36: Double the organic growth (CAGR) in Biomaterial Services to 8%
Seamless lifecycle approach to grow in services and technology Double the organic growth (CAGR) in Relentless drive for Biomaterial product cost competitiveness Services to 8% Comparable EBITA Continuous innovation with customers, margin 14% by 2030 leading the way towards circularity 36 June 5, 202
Slide 37: We innovate together with customers to advance circularity
We innovate together with customers to advance circularity Examples of innovations in commercialization Valmet Partners Molded fiber Chemical recycling of waste plastics Wood, bagasse, Sustainable alternative to Waste Plastics Utilizes significantly higher share of bamboo or straw plastic across pac
Slide 38: Customers rely on our technology leadership
Customers rely on our technology leadership What our customers value in partnering with Valmet Technological forefront 1 Long-term focused technology leader “Valmet's equipment is stable, technology Customer orientation is leading, and it 2 Trustworthy people who understand customer needs with focus
Slide 39: Doubling services growth and increasing Comparable EBITA to 14% by 2030
Doubling services growth and increasing Comparable EBITA to 14% by 2030 We are utilizing our leading market positions with customer-specific lifecycle offerings We have a clear plan to double organic services growth to 8% and to increase services market share to 25% We drive EUR 100 million cost sav
Slide 40: Process Performance Solutions – Unlocking resource efficiency
Process Performance Solutions – Unlocking resource efficiency Emilia Torttila-Miettinen, EVP Automation Solutions Simo Sääskilahti, EVP Flow Control
Slide 41: Process Performance Solutions – Strong growth and profitability record
Process Performance Solutions – Strong growth and profitability record Automation Solutions Flow Control Net sales development, EUR million ◼ Automation Solutions Systematic portfolio expansion ◼ Flow Control and continuous investment into technology and digitalization 1,467 Organic CAGR: 6% CAGR Ma
Slide 42: Foundations of our profitable growth
Foundations of our profitable growth Unique leadership Diversified and Mission-critical position in P&P attractive portfolio solutions providing solid base and of customer industries providing attractive development environment with strong positions business mix and sustainable advantage 42 June 5,
Slide 43: Our Pulp & Paper offering provides unmatched customer advantages
Our Pulp & Paper offering provides unmatched customer advantages Example of a pulp mill with Valmet Process Performance Solutions segment portfolio Process and Performance Solutions: • The broadest and most specialized offering in automation and flow control enabling Analyzers & optimization up to m
Slide 44: Diversified portfolio of customer industries
Diversified portfolio of customer industries Q1 2025 LTM Net sales split Process Performance Solutions Automation Solutions Flow Control (% of segment total) (% of BA total) (% of BA total) EUR 1,467 million EUR 672 million EUR 795 million 11% 9% 26% 47% 53% 38% 15% 39% 62% ◼ Pulp & Paper ◼ Pulp & P
Slide 45: Strong positions across diverse industries with 3% annual market growth
Strong positions across diverse industries with 3% annual market growth Process Performance EUR 16 billion EUR 15 billion Solutions Automation Solutions Flow Control market size Customer Pulp & Marine & Other Refining & Energy & Metals & industry Paper Process Chemicals Gases Mining Automation #1–2
Slide 46: Leadership in mission-critical solutions with sustainable advantages
Leadership in mission-critical solutions with sustainable advantages Strong customer Service references, capabilities and High approvals, and presence close to Digitalization Lifecycle technology credibility customers capabilities value guaranteed Flow Highly recognized Extensive customer Industry-l
Slide 47: We are industry leaders both in technology and services capabilities
We are industry leaders both in technology and services capabilities Superior automation technology Leader in Flow Control service supported throughout lifecycle capabilities and digitalization Valmet DNAe – the most advanced web-based Service presence in 40 countries DCS system and applications in
Slide 48: Focus on mission-critical solutions results in an attractive business mix
Focus on mission-critical solutions results in an attractive business mix Q1 2025 LTM Net sales split Process Performance Solutions Automation Solutions Flow Control (% of segment total) (% of BA total) (% of BA total) EUR 1,467 million EUR 672 million EUR 795 million 17% 17% 17% 33% 49% 67% 34% 66%
Slide 49: Targeting accelerated profitable growth based on proven capabilities
Targeting accelerated profitable growth based on proven capabilities Leading lifecycle value, reliability and customer experience Accelerate organic growth to over double the Growth in high-quality technologies and market rate digital capabilities in mission-critical solutions Comparable EBITA margi
Slide 50: Automation Solutions – Strategic growth priorities
Automation Solutions – Strategic growth priorities Energy, Process and Marine Accelerate growth by leveraging modern technology, aligning capabilities with customer needs, and expanding the partner network to reach broader geographies and subsegments Accelerate Pulp and Paper organic growth Extend #
Slide 51: Flow Control – Strategic growth priorities
Flow Control – Strategic growth priorities Portfolio Target new VCA1 segments and strengthen positions in core industries Services Drive aftermarket sales through increasing sales coverage Accelerate and presence at sites leveraging digital capabilities organic growth to over double Commercial excel
Slide 52: Accelerate organic growth to over two times market while reaching 20% Comparable EBITA
Accelerate organic growth to over two times market while reaching 20% Comparable EBITA by 2030 Two business areas with market-beating growth and profitability record Diverse customer industries and unique Pulp & Paper position provide a strong base to expand organically and through M&A Mission-criti
Slide 53: New 2030 financial targets reflect a step change in ambition
New 2030 financial targets reflect a step change in ambition Katri Hokkanen, CFO
Slide 54: New 2030 financial targets reflect a step change in ambition
New 2030 financial targets reflect a step change in ambition 5% 15% 20% <50% Organic net sales growth Comparable EBITA Comparable ROCE Gearing (CAGR) over the cycle margin CAGR L10Y: ~4% Q1 2025 LTM: 11.4% Q1 2025 LTM: 13.0% Q1/2025: 36% Previous target: 12–14% Previous target: at least 15% Comparab
Slide 55: We have two strong segments driving growth and profitability
We have two strong segments driving growth and profitability through our lifecycle approach Q1 2025 LTM Comparable EBITA margin Net sales Comparable EBITA (excl. Other) (excl. Other) 14.8% EUR 10.5% 1,467 EUR million 258 EUR million EUR 3,864 405 million million 17.6% Biomaterial Services ◼ Biomater
Slide 56: Key actions for the segments to reach 15% Comparable EBITA
Key actions for the segments to reach 15% Comparable EBITA Bridge1 to 15% Comparable EBITA target Biomaterial Solutions and Services Comparable EBITA margin target 14% 15% 1. Double the net sales growth (CAGR) in services to 8% 2. EUR 100 million savings by Global Supply 3. Renewed operating model 1
Slide 57: Clear capital allocation priorities supporting long-term value creation
Clear capital allocation priorities supporting long-term value creation Organic growth Biomaterials Solutions and Services 1 Funding organic growth, focusing on ROCE and competitiveness Organic mandate: Grow services and drive cost competitiveness M&A potential: Limited, mainly in Biomaterial Servic
Slide 58: Strong cash conversion track record with growing operating cash flow
Strong cash conversion track record with growing operating cash flow Cash conversion Operating cash flow, EUR million Average cash conversion EUR million Comparable EBITA, EUR million L10Y 2015–2024: 700 CAGR 2015–2024: 92% Operating cash flow: 24% 600 Comparable EBITA: 14% With EBITA (unadjusted):
Slide 59: Our cash conversion is strong also compared to other industrials
Our cash conversion is strong also compared to other industrials Cash conversion ratios (EBITDA) of European industrial companies, 2015–2024 (L10Y) average Valmet 79% Cash conversion for all peers and Valmet in the above chart calculated as Operating cash flow / EBITDA. Analysis on peers is based on
Slide 60: New 2030 financial targets reflect a step change in ambition
New 2030 financial targets reflect a step change in ambition Key strategic actions to reach financial targets 5% Organic growth CAGR over the cycle Strong performance mandates defined for our two segments 15% Comparable EBITA margin Clear capital allocation priorities to support long-term value crea
Slide 61: Lead the Way: financial targets by 2030
Lead the Way 5% Organic growth CAGR over the cycle Strong fundamentals 15% Renewed operating model Comparable EBITA margin 20% Mindset shift Comparable ROCE Financial targets by 2030
Slide 62: 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
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