Valmet Corp · OMXHEX:VALMT
Valmet — Merger or Acquisition (April 2022)
28 slides from Valmet's merger presentation, Apr 1, 2022
Slide 1: Merger of Valmet and Neles created a leading company with a unique offering
Merger of Valmet and Neles created a leading company with a unique offering for process industries globally Valmet and Neles merger closing 1 April, 2022 Pasi Laine, President and CEO
Slide 2: Agenda
Agenda 1 Valmet and Neles in 2021 2 The merger created a leading company with a unique offering for process industries 3 The rationale for the combination 4 Valmet well positioned for future growth 5 Merger consideration 6 New financial targets, guidance and short-term market outlook 2 1 April 2022
Slide 3: Valmet and Neles in 2021
Valmet and Neles in 2021 Valmet <>
Slide 4: Valmet in 2021
Valmet in 2021 Leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries Orders received, 2021 >220 14,246 >30 EUR 4,740 million years of industrial history employees countries Net Sales, 2021 Orders received by business line, 20
Slide 5: Neles in 2021
Neles in 2021 Leading diversified valve, valve automation and service company for process industries globally with a proven track record Orders, 2021 Expertise & innovation ~2,950 ~40 EUR 625 million since 1950’s employees countries Sales, 2021 Valves Actuators and positioners Leading product brands
Slide 6: The merger created a leading company with a unique offering for process industries
The merger created a leading company with a unique offering for process industries
Slide 7: Valmet is a leading company with a unique offering for process industries
Valmet is a leading company with a unique offering for process industries Process technologies Services Automation Board and Pulp and Flow Control Automation Paper Energy Systems Market position in Market position Market position Market position Pulp and Paper #1 #1–3 #1–2 #1–3 Strong positions in •
Slide 8: Track-record of growth and continuous profit improvement
Track-record of growth and continuous profit improvement Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%, combined company) 12% 6,000 600 6,000 10% 5,000 500 5,000 8% 4,000 400 4,000 6% 3,000 300 3,000 4% 2,000 200 2,000 2% 1,000 100 1,
Slide 9: A strong financial profile and balanced business portfolio
A strong financial profile and balanced business portfolio Illustrative 2021 key figures of the Combined Company Orders received Net sales by business line Net sales by area EUR 5,366 million Services Paper South America 10% Net sales 30% 26% EUR 4,546 million EMEA North 41% Comparable EBITA America
Slide 10: Global presence is a good platform for growth in Services and Automation
Global presence is a good platform for growth in Services and Automation EMEA 10,671 employees ~140 service centers China 2,269 employees 54 North America production units 1,994 employees 24 R&D centers Asia-Pacific 8 1,513 employees Performance South America Centers 733 employees Personnel as at De
Slide 11: Acknowledged leader in sustainability
Acknowledged leader in sustainability 360º approach to sustainability across value chain Environmental Engaged Environment efficiency workplace We enhance circularity and environmental efficiency and reduce CO2 emissions through the entire value chain. Valmet Climate Health and aims to enable fully
Slide 12: Valmet's Climate Program: Forward to a carbon neutral future
Valmet´s Climate Program: Forward to a carbon neutral future Targets by 2030 for the entire value chain SUPPLY CHAIN OWN OPERATIONS USE PHASE OF VALMET’S TECHNOLOGIES -20% -80% -20% 100% CO2 emission reduction CO2 emission reduction Further reduced energy use Carbon neutral production of Valmet’s cu
Slide 13: The rationale for the combination
The rationale for the combination
Slide 14: Strategic rationale – Merger created a leading company with unique offering
Strategic rationale – Merger created a leading company with unique offering 1 Unique, competitive and balanced total offering for process industries 2 Large recurring and stable business providing resilience to business cycles 3 Strong industrial logic from the combination of flow control and automa
Slide 15: Unique, competitive and balanced total offering for process industries
Unique, competitive and balanced total offering for process industries Paper Pulp Energy • Board, paper and tissue production lines • Wood and pulp handling • Heat and power generation • Rebuilds • Fiber processing • Air emission control • Stand-alone products • Recovery • Biofuels Process technolog
Slide 16: EUR 2.6 billion recurring and steadily growing stable business
EUR 2.6 billion recurring and steadily growing stable business • Valmet’s stable business has grown Orders received (EUR million) steadily since 2016 3,000 • Future growth possibilities are supported 2,579 by favorable megatrends 2,500 625 • Stable business provides resilience to 1,954 2,000 1,875 1
Slide 17: Strong industrial logic through the combination of flow control and automation systems
Strong industrial logic through the combination of flow control and automation systems Valmet’s Automation business offering Valves Valve automation Valve controls Distributed Quality Analyzers and control systems management measurements • Control valves • High-performing • Automatic valve • Highly
Slide 18: Solid platform for further growth in automation business
Solid platform for further growth in automation business Flow control Systems Products Industrial Internet solutions • A leading position in • Growth by increased • A leading position in process-critical valves and penetration into energy pulp and paper valve automation products and process industry
Slide 19: Revenue, technology development and cost synergy potential
Revenue, technology development and cost synergy potential contributing to shareholder value creation Improved combined sales to pulp & paper customers Sales & Cross-sales to energy and process industry customers Offering More comprehensive service offering and extended service network Increased rem
Slide 20: Valmet well positioned for future growth
Valmet well positioned for future growth
Slide 21: Growth potential in all businesses and new emerging sectors
Growth potential in all businesses and in new emerging sectors supported by favorable megatrends Growth in process technology • Driven by e-commerce and emerging markets growth, shift to renewable materials, and rise in living standards New emerging opportunities especially in • Cellulose based and
Slide 22: Merger consideration
Merger consideration Valmet <>
Slide 23: Merger consideration
Merger consideration Valmet acquired 29.5% of Neles shares in 2020 for EUR 456 million, average price per share was EUR 10.27 Merger consideration to Neles’ shareholders was approximately 34.7 million Valmet shares, amounting to EUR 978 million The total cost of Neles’ shares acquired by Valme
Slide 24: New financial targets, guidance and short-term market outlook
New financial targets, guidance and short-term market outlook
Slide 25: New financial targets
New financial targets Growth Profitability ROCE Dividend policy Net sales for stable Comparable EBITA: Comparable return on Dividend payout at least business1 to grow over two 12–14% capital employed (ROCE) 50% of net profit times the market growth before taxes2 at least 15% Net sales for capital bu
Slide 26: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2022 (including the merger with Neles) Guidance Valmet estimates that, including the merger with Neles, net sales in 2022 will increase in comparison with 2021 (EUR 3,935 million) and Comparable EBITA in 2022 will increase in comparison with 2021 (
Slide 27: Q&A
Q&A 27 1 April 2022 © Valmet | Investor, analyst and press conference
Slide 28: FORWARD
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