Valmet Corp · OMXHEX:VALMT
Valmet — Berenberg European Conference 2015
30 slides from Valmet's conference presentation, 2015
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Berenberg European Conference 2015 Pasi Laine, President and CEO
Slide 2: Agenda
Agenda 1 Valmet overview 2 Investment highlights 3 Industrial Internet 4 Financials 5 Conclusion
Slide 3: Valmet overview
Valmet overview Valmet <>
Slide 4: Key figures 2014
Key figures 2014 Excluding Automation business line Net sales split by Net sales split by Orders received business line geographic area EUR 3,071 million 15% 18% Net sales 21% 40% EUR 2,473 million EBITA before NRI1 11% EUR 106 million 13% Employees 10,464 39% Market position 43% #1-2 Services Servi
Slide 5: Automation in brief (2014)
Automation in brief (2014) Supplies and develops automation and information management systems, applications and services Net sales by Net sales by Global market leader with Orders #1 received market position in pulp and business line geographic area EUR 336 million paper Industry-leading 9% Net sal
Slide 6: Our four business lines serve the same customer base
Our four business lines serve the same customer base Services Automation Pulp and Energy Paper Net sales 1.0 bn, 40% Net sales 0.3 bn Net sales 1.0 bn, 39% Net sales 0.5 bn, 21% • Mill and plant Supplies and develops Technologies and Technologies and improvements automation and information solutions
Slide 7: Strong global presence provides a good platform for growth
Strong global presence provides a good platform for growth North America EMEA China • Large installed base to be served • Large installed base to be served • Services growth potential through • Capital project • Machine closures in growing installed base opportunities in pulp, printing and writing •
Slide 8: 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 Excellence in Converting renewable processes to
Slide 9: Key Must-Win objectives to develop Valmet further and continue to improve profitability
Key Must-Win objectives to develop Valmet further and continue to improve profitability Must-Wins Must-Win implementation objectives for 2016 • Strengthen our presence close to customers and growth markets Customer • Strengthen Key Account Management to serve customers with our full offering excelle
Slide 10: 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 11: Investment highlights
Investment highlights Valmet <>
Slide 12: 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 13: Strong market position in growing markets
1 2 3 4 5 Strong market position in growing markets Services Automation Pulp Energy Board Tissue Paper #1-2 #1-3 #1-2 #1-3 #1-2 #1 #1-2 ~2% 7.5 ~1% 2.0 ~1% 1.4 ~1% 2.0 ~3% 1.0 ~3% 0.6 ~-1% 0.6 p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn • Customers • Investments in • Growth in • Growth i
Slide 14: 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 15: 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 16: Unique offering with process technology, automation and services
1 2 3 4 5 Unique offering with process technology, automation and services • Valmet is a technology and service company with full automation offering • Strengthened competitiveness from combination of paper, pulp and power plant technology, process know-how and Customer automation • Full scope offer
Slide 17: 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 18: Industrial Internet
Industrial Internet Valmet <>
Slide 19: Valmet has a long history in the digitalization of process industries
Valmet has a long history in the digitalization of process industries 1960 1980’s 2000’s 2015 The Airmatic Damatic, the first Distributed Control Multivariable Model Valmet DNA a pneumatic System (DCS) Predictive Controls (MPC) measurement and Sensodec Condition Monitoring System 24/7 ProCenter for
Slide 20: Today, customers are extensively utilizing our Industrial Internet capabilities
Today, customers are extensively utilizing our Industrial Internet capabilities Valmet’s competence network Customer’s Valmet’s process remote center 350 Ongoing 740 70 000 320 440 80 Valmet-supplied 350 Condition Advanced Online Performance Co-creation of lines with Valmet Monitoring (CM) process c
Slide 21: Today, we serve our customers with intelligent technology, automation and services locally and remotely
Today, we serve our customers with intelligent technology, automation and services locally and remotely Fully automated, intelligent machines with connectivity for Industrial Internet The Valmet DNA automation platform connects instruments, analyzers, vision systems and process controls Advanc
Slide 22: 2016-2018 we enhance mobility and introduce even more advanced automation technologies and embedded diagnostics
2016-2018 we enhance mobility and introduce even more advanced automation technologies and embedded diagnostics Growing fleet of intelligent machines and mills leveraged More diagnostics embedded into processes Next generation analytics introduced to selected processes Valmet DNA evolves to
Slide 23: Financials
Financials Valmet <>
Slide 24: Key figures Q3/2015
Key figures Q3/2015 EUR million Q3/2015 Q3/2014 Change Q1–Q3/2015 Q1–Q3/2014 Change Orders received 725 466 56% 2,085 2,590 -19% Order backlog1 2,117 2,312 -8% 2,117 2,312 -8% Net sales 734 590 25% 2,074 1,697 22% EBITA2 47 32 45% 120 58 >100% % of net sales 6.4% 5.5% 5.8% 3.4% EBIT3 33 26 25% 78 35
Slide 25: EBITA margin in the targeted range
EBITA margin in the targeted range Net sales and EBITA before NRI (EUR million) 777 779 734 EBITA target 6–9% 6.1% 588 590 6.9% 561 6.4% 519 3.7% 5.5% 3.5% Capital business Stable business 0.7% EBITA-% 371 334 251 235 278 242 224 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 EBITA before 4 22 32 48 19 5
Slide 26: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2015 (as given on February 6, 2015) Valmet estimates that, including the acquisition of Process Automation Guidance for Systems, net sales in 2015 will increase in comparison with 2014 (EUR 2015 2,473 million) and EBITA before non-recurring items i
Slide 27: Conclusion
Conclusion Valmet <>
Slide 28: Conclusion
Conclusion • Strong global presence close to customers • #1-3 market position in growing markets • EUR 1.3 billion net sales in stable business • Unique offering with process technology, services and automation differentiates Valmet from its competitors • Forerunner in Industrial Internet 28 Decembe
Slide 29: Important notice
Important notice It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for growth, profitability and investment willingness, expectations fo
Slide 30: FORWARD
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