Valmet Corp · OMXHEX:VALMT
Valmet — Shareholder Meeting (March 2014)
25 slides from Valmet's shareholder meeting presentation, Mar 26, 2014
Slide 1: President and CEO's review
President and CEO’s review Annual General Meeting March 26, 2014 Pasi Laine, President and CEO
Slide 2: Agenda
Agenda Annual General Meeting 1 Valmet today 2 2013 in brief 3 Valmet’s strategy and financial targets 4 The key strengths of Valmet 5 Short-term market outlook and guidance 6 Summary 2 March 26, 2014 © Valmet
Slide 3: Valmet today
Valmet today Valmet <>
Slide 4: Growing consumption of pulp, energy, tissue, and board creates growth opportunities
Growing consumption of pulp, energy, tissue, and board creates growth opportunities Net sales Net sales EUR 2,613 m 11% 15% EBITA1 (before NRI2) EUR 54 m 15% 26% Gearing 39% 17% 0% Equity ratio 35% 41% Employees 42% 11,765 North America Services South America Pulp and Energy EMEA 1) EBITA = operatin
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 sales1 1.0 bn, 39% Net sales1 0.9 bn, 35% Net sales1 0.7 bn, 26% • Mill and plant improvements Technologies and solutions for Technologies and solutions for • Roll and workshop services • Pulp production • Board
Slide 6: Strong global presence – good platform for growth
Strong global presence – good platform for growth North America 1,147 EMEA China • Large installed base employees • Large installed base to • Capital project opportunities to be serviced be serviced in board and tissue • Growth opportunity in • Growth opportunity in • Good services market increased
Slide 7: Experienced management team
Experienced management team Corporate functions Business lines Areas Pasi Laine Jukka Tiitinen William Bohn President and CEO Business Line President, Area President, Services North America Markku Honkasalo Jyrki Holmala Celso Tacla Chief Financial Officer Business Line President, Area President, Pu
Slide 8: 2013 in brief
2013 in brief Valmet <>
Slide 9: Summary of Financial Statements 2013
Summary of Financial Statements 2013 Solid performance in services • Stable order intake • Services net sales on previous year’s level, over EUR 1 billion • Profitability on the same level as in 2012 Challenging year in capital business • Orders received in 2013 declined in Energy, and Board and Pap
Slide 10: Key figures 2013
Key figures 2013 EUR million 2013 2012 Change Orders received 2,182 2,445 -11% Order backlog 1,398 1,9181 -27% Net sales 2,613 3,014 -13% EBITA2 54 192 -72% % of net sales 2.1% 6.4% EBIT3 -59 138 % of net sales -2.2% 4.6% Earnings per share, EUR -0.42 0.51 Dividend per share, EUR 0.154 Net debt -1 G
Slide 11: Good development in sustainability key figures
Good development in sustainability key figures Environmental and social responsibility 2013 2012 Change Sustainability is a cornerstone of Valmet’s CO2 emissions (tons) 97,000 106,000 -8% strategy and business operations. Energy (TJ) 1,332 1,457 -9% The health, safety and wellbeing of our people and
Slide 12: Valmet's strategy and financial targets
Valmet’s strategy and financial targets
Slide 13: Valmet's way forward
Valmet’s way forward Mission Strategy Must-wins Vision Converting renewable Competitive > Customer To become the global resources into technologies and excellence champion in serving sustainable results services to the pulp, > Leader in our customers paper and energy technology industries. and innov
Slide 14: 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 15: The key strengths of Valmet
The key strenghts of Valmet Valmet <>
Slide 16: Established market leader with #1-2 market positions in all markets served
Established market leader with #1-2 market positions in all markets served Services (>EUR 1 bn)1 Capital (~EUR 1.6 bn)1 Pulp Energy Paper Market position Machines Services Pulping Bioenergy generation Board Tissue Paper #1-2 #1-2 #1-2 #1-2 #1 #1-2 Superior technological know-how Consistent investmen
Slide 17: EUR 1 billion of net sales from stable and growing services
EUR 1 billion of net sales from stable and growing services Strong trends, such as outsourcing of Net sales, Services Business Line non-core operations (EUR million, % of total)1 and high capacity utilization rates, drive services market 34% 39% 36% expansion 36% 5.6% p.a.2 877 974 1,011 1,032 2010
Slide 18: Long-term growth potential in capital business
Long-term growth potential in capital business Pulp and Energy Paper Energy Pulp Board Tissue Printing and writing papers and newsprint ~1% 2.0 ~1-2% 1.4 ~3% 1.0 ~3% 0.6 ~-1% 0.6 p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn Anticipated long-term market • Structural changes in operating environment have l
Slide 19: Short-term market outlook and guidance
Short-term market outlook and guidance
Slide 20: Short-term market outlook and guidance for 2014
Short-term market outlook and guidance for 2014 Guidance for 2014 Guidance Valmet estimates that net sales in 2014 will decline from the 2013 for 2014 level and EBITA before non-recurring items will increase in comparison with 2013 Given in Annual Statements Review 2013, published on February 6, 201
Slide 21: Customer activity has increased in early 2014
Customer activity has increased in early 2014 OKI’s pulp mill project Letter of intent regarding Klabin’s pulp › Key technology for a pulp mill project mill project in Indonesia › Two pulp drying lines to a new plant in Brazil › Commercial production is expected to begin › The start-up is scheduled
Slide 22: Summary
Summary Valmet <>
Slide 23: Summary
Summary Valmet was ready to start as an independent listed company according to plan in the beginning of 2014 2013 was a challenging year in capital businesses Valmet has a strong market position in capital businesses and a stable and growing services business Customer activity has improved
Slide 24: Important notice
Important notice IMPORTANT: You must read the following before continuing. 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 pre
Slide 25: Forward
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