Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (September 2018)
11 slides from Valmet's investor day presentation, Sep 18, 2018
Slide 1: Next steps in reaching the financial targets
Title Next steps in reaching the financial targets Kari Saarinen CFO Capital Markets Day 2018
Slide 2: Agenda
Agenda 1 Development since 2013 2 Financial targets and how to reach them 3 Acquisitions 4 Systematically building the future 2 September 18, 2018 © Valmet | Capital Markets Day 2018 | CFO
Slide 3: Development since 2013
Development since 2013 Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR million) (EUR million) (EUR million) (%) 3,272 3,226 3,257 3,139 3,071 3,058 2,878 2,928 2,926 2,613 2,473 2,182 1,713 1,651 1,762 1,658 1,584 1,572 1,473 2,016 1,537 1,581 1,484 1,147 7.1% 218 219 6.7% 6.
Slide 4: Current financial targets
Current financial targets Growth • Net sales for stable business to grow over two times the market growth • Net sales for capital business to exceed market growth Profitability • Comparable EBITA: 8–10% ROCE • Comparable return on capital employed (pre-tax), ROCE1: 15–20% Dividend policy • Dividend
Slide 5: Actions to keep growing faster than the market
1 2 3 4 Net sales growth Actions to keep growing faster than the market Stable business Capital business • Long term co-operation with • Continue to bring advanced technology customers through agreements to the market • Develop local service capability • Improve product cost competitiveness • Levera
Slide 6: Actions to reach Comparable EBITA target of 8–10%
1 2 3 4 Comparable EBITA: 8–10% Actions to reach Comparable EBITA target of 8–10% Track record Actions to reach Comparable Comparable EBITA margin (%) and stable business EBITA target: net sales (EUR million) 1,474 1,496 1,453 1,357 • Grow the stable business 7.1% 6.7% 6.7% • No negative margin devi
Slide 7: Actions to reach ROCE target of 15–20%
1 2 3 4 Comparable return on capital employed (pre-tax), ROCE: 15–20% Actions to reach ROCE target of 15–20% Track record Actions to reach ROCE target: Capital employed (EUR million) and Comparable ROCE (%, before taxes) Target • Improvement in EBITA is the biggest 1,231 15–20% 1,195 driver for ROCE
Slide 8: Dividend and balance sheet
1 2 3 4 Dividend payout at least 50% of net profit Dividend and balance sheet Track record Balance sheet figures Dividend per share (EUR) and payout ratio (%) Gearing (%) Target 21% >100% >50% 6% of net profit 0% 0.55 81% -11% 76% -21% 68% 0.42 65% 2014 2015 2016 2017 Q2/2018 0.35 Debt maturity stru
Slide 9: Acquisitions
Acquisitions • Focus on organic growth • Selective acquisitions can be done to support growth Acquisition themes • Strengthening Services - Complementing existing portfolio - Expansion in consumables • Strengthening Automation - Stronger Pulp & Paper automation - Expansion in Industrial Internet - S
Slide 10: Systematically building the future
Systematically building the future Continuous renewal and improvement of operational capability ERP Business platform Operational platform • ERP renewal was started in 2016 • Renewed PLM - Product lifecycle • Project management and will be completed in 2021 management and unified • Global training p
Slide 11: FORWARD
FORWARD