Valmet Corp · OMXHEX:VALMT
Valmet — Shareholder Meeting (March 2015)
28 slides from Valmet's shareholder meeting presentation, Mar 27, 2015
Slide 1: Moving forward after strong 2014
Moving forward after strong 2014 Pasi Laine, President and CEO Annual General Meeting March 27, 2015
Slide 2: Agenda
Agenda Annual General Meeting 2015 1 Valmet in brief 2 Performance in 2014 3 Valmet’s strategy and financial targets 4 Automation 5 Investment highlights 6 Guidance and short-term market outlook 7 Summary 2 March 27, 2015 © Valmet | Pasi Laine, Annual General Meeting 2015
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: A leading service and technology company
A leading service and technology company Net sales (2014) Strong market position in all markets served Stable, growing and 15% 18% profitable services business 21% Strong capital business with 40% 11% high technological know- how 13% 2014 figures Orders received EUR 3,071 M 39% Net sales EUR 2,473 M
Slide 5: Our three business lines serve the same customer base
Our three business lines serve the same customer base Services Pulp and Energy Paper Net sales 1.0 bn, 40% Net sales 1.0 bn, 39% Net sales 0.5 bn, 21% • Mill and plant improvements Technologies and solutions for Technologies and solutions for • Roll and workshop services • Pulp production • Board pr
Slide 6: Strong global presence – good platform for growth
Strong global presence – good platform for growth North America China • Large installed base to be serviced EMEA • Service growth potential through • Capital project growing installed base • Large installed base to be serviced opportunities in pulp, • Capital project opportunities energy, board, and
Slide 7: Serving global customer base
Serving global customer base Services Pulp and Energy Paper Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 7 March 27, 2015 © Valmet | Pasi Laine, Annual General Meeting 2015
Slide 8: Performance in 2014
Performance in 2014 Valmet <>
Slide 9: Summary of the year 2014
Summary of the year 2014 A successful first year as an independent company EUR million 2014 2013 Change Orders received 3,071 2,182 41% Order backlog 1,998 1,398 43% Net sales 2,473 2,613 -5% EBITA1 106 54 94% % of net sales 4.3% 2.1% Earnings per share, EUR 0.31 -0.42 Dividend per share, EUR 0.252
Slide 10: Good development in sustainability key figures
Good development in sustainability key figures Environmental and social responsibility 2014 2013 Change CO2 emissions (1,000 t) 84 100 -16% Energy (TJ) 1,253 1,374 -9% Waste (1,000 t) 40 32 26% Water (1,000 m3) 3,302 3,824 -14% Lost-time incident 5.5 6.5 -15% frequency (LTIF)1 1) Valmet employees pe
Slide 11: Valmet’s strategy and financial targets
Valmet’s strategy and financial targets
Slide 12: Valmet’s way forward
Valmet’s way forward Our Vision To become the global Our Must-Wins champion in serving our customers Our Strategy Customer excellence Valmet develops and Leader in technology supplies competitive and innovation Our Mission technology and services to Excellence in processes Converting renewable
Slide 13: Financial targets
Financial targets Growth Net sales growth to exceed market growth Profitability EBITA1 before non-recurring items: 6–9% ROCE Return on capital employed (pre-tax), ROCE 2: minimum of 15% Dividend Dividend payout at least 40% of net profit policy 1) EBITA before non-recurring items = operating profit
Slide 14: Automation
Automation Valmet <>
Slide 15: Valmet becomes a stronger company as a result of the acquisition of Process Automation Systems
Valmet becomes a stronger company as a result of the acquisition of Process Automation Systems The acquisition was announced on January 15, 2015 The acquisition has an excellent strategic fit Combination of Valmet and Automation creates a unique customer offering Automation is a strong, established
Slide 16: Investment highlights
Investment highlights Valmet <>
Slide 17: Investment highlight summary
Investment highlight summary 1 Strong market position in growing markets Growing, profitable and stable service and 2 automation business with EUR 1.3 billion sales Strong in cyclical capital business with long-term growth 3 potential and increased flexibility in cost structure Unique offering with
Slide 18: Strong market position in growing markets
1 2 3 4 5 Strong market position in growing markets Services Pulp Energy Board Tissue Paper Automation #1-2 #1-2 #1-3 #1-2 #1 #1-2 #1-3 ~2% 7.5 ~1% 1.4 ~1% 2.0 ~3% 1.0 ~3% 0.6 ~-1% 0.6 ~1% 2.0 p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn • Customers • Growth in • Growth in • World trade,
Slide 19: Growing, profitable and stable service and automation business with EUR 1.3 billion sales
1 2 3 4 5 Growing, profitable and stable service and automation business with EUR 1.3 billion sales Growing Services net sales growth on average over 3% p.a. during the last 5 years Slight growth in Automation net sales over the last 10 years Profitable Relatively stable margins in Automation
Slide 20: Strong in cyclical capital business with long-term growth potential and increased flexibility in cost structure
1 2 3 4 5 Strong in cyclical capital business with long-term growth potential and increased flexibility in cost structure Pulp and Energy Paper Market position: Market position: #1-3 #1-2 Headcount reduction1: Headcount reduction1: ~500 ~800 Capacity cost reduction: Capacity cost reduction: 10% 20%
Slide 21: Unique offering with process technology, automation and services
1 2 3 4 5 Unique offering with process technology, automation and services Process • Valmet becomes a technology technology and service company with full automation offering • Strengthened competitiveness from combining paper, pulp and power plant technology, process know-how and automation • Full s
Slide 22: Continued focus on profitability, more effort into renewal
1 2 3 4 5 Continued focus on profitability, more effort into renewal Continued focus on • Improve project and service margin profitability • Reduce quality costs and lead times improvement • Savings in procurement measures • Continue to improve cost competitiveness • Improve cost competitiveness to
Slide 23: Guidance and short-term market outlook
Guidance and short- term market outlook
Slide 24: Guidance and short-term market outlook unchanged
Guidance and short-term market outlook unchanged Guidance for 2015 (as given on February 6, 2015) Valmet estimates that, including the acquisition of Process Automation Guidance for Systems1, net sales in 2015 will increase in comparison with 2014 (EUR 2015 2,473 million) and EBITA before non-recurr
Slide 25: Summary
Summary Valmet <>
Slide 26: Summary
Summary Moving forward after strong 2014 Strong market position in growing markets Growing, profitable and stable service and automation business with EUR 1.3 billion sales Strong in cyclical capital business with long- term growth potential and increased flexibility in cost structure Unique offerin
Slide 27: 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 28: FORWARD
FORWARD