Valmet Corp · OMXHEX:VALMT
Valmet — Merger or Acquisition (January 2015)
27 slides from Valmet's merger presentation, Jan 15, 2015
Slide 1: Valmet becomes stronger as a result of acquiring Process Automation Systems
Valmet becomes stronger as a result of acquiring Process Automation Systems January 15, 2015 Pasi Laine, President and CEO
Slide 2: Agenda
Agenda 1 Rationale for the acquisition 2 Process Automation Systems in brief 3 Price and financing of the transaction 4 Next steps 5 Summary 2 January 15, 2015 © Valmet
Slide 3: Rationale for the acquisition
Rationale for the acquisition
Slide 4: Valmet's way forward
Valmet’s way forward Mission Strategy Must-wins Vision Converting renewable Valmet develops and > Customer To become the global resources into supplies competitive excellence champion in serving sustainable results technology and > Leader in our customers services for the pulp, technology paper and
Slide 5: Valmet becomes a stronger company
Valmet becomes a stronger company The acquisition has an excellent strategic fit Combination of Valmet and Process Automation Systems creates a unique customer offering Process Automation Systems is a strong, established business Acquisition makes Valmet more stable and more profitable 5 January 15,
Slide 6: Combination of Valmet and Process Automation Systems creates a unique customer offering
Combination of Valmet and Process Automation Systems creates a unique customer offering Valmet becomes a technology Valmet becomes a unique company and service company with full Process automation offering technology Strengthened competitiveness from combining paper, pulp and power plant technol
Slide 7: Valmet's automation offering for pulp mills
Valmet’s automation offering for pulp mills • Distributed Control System (DCS) • Performance solutions • Quality control system (QCS) − Process controls − Advanced process controls • Profilers − Machine controls − Energy efficiency monitoring • Analyzers and measurements − Drive controls − Condition
Slide 8: Valmet's automation offering for board, paper and tissue mills
Valmet’s automation offering for board, paper and tissue mills • Distributed Control System (DCS) • Performance solutions • Quality Control System (QCS) − Process controls − Energy efficiency monitoring • Profilers − Machine controls − Condition and runnability monitoring • Analyzers and measurement
Slide 9: Valmet's automation offering for energy and other process industries
Valmet’s automation offering for energy and other process industries • Distributed Control System (DCS) • Performance solutions • Analyzers and measurements − Process controls − Advanced process controls − Information management − Energy efficiency monitoring − Condition monitoring − Process simulat
Slide 10: Process Automation Systems is a strong, established business
Process Automation Systems is a strong, established business Long-term customer relations High level of technology and know-how Strong service business, based on large installed base and captive business model ~1,600 automation professionals working close to customers at ~80 locations around
Slide 11: Increasing stability and improving profitability
Increasing stability and improving profitability Increasing stability Improving profitability Valmet will have approximately EUR Process Automation Systems has 1,300 million of stable business solid financial track record - Existing services EUR 1,000 million - Relatively stable margins during t
Slide 12: Process Automation Systems in brief
Process Automation Systems in brief
Slide 13: Process Automation Systems in brief
Process Automation Systems in brief Supplies and develops automation and information management systems, applications and services Global market leader with Process Automation Systems’ net sales1 #1 market position in pulp and paper 8% Industry-leading product portfolio 19% 10% Comprehensive service
Slide 14: Process Automation Systems' offering
Process Automation Systems’ offering Distributed • Complete control system platform for several processes: process, Control machine, drive controls and information management System (DCS) • Used for monitoring and controlling distributed equipment in process plants and industrial processes Quality C
Slide 15: Valmet and Process Automation Systems serve mainly the same customer base
Valmet and Process Automation Systems serve mainly the same customer base Pulp Energy Paper Process 80% of Process Automation 20% of Process Automation Systems’ sales to Valmet’s current Systems’ sales to other customer industries process industries Valmet is a registered trademark of Valmet Corpora
Slide 16: Recent development
Recent development Orders received (EUR million)1 Net sales (EUR million)1 400 400 350 333 350 322 304 309 310 296 300 261 300 250 250 200 200 200 150 150 100 100 50 50 0 0 2011 2012 2013 2014 2011 2012 2013 2014 1-9/ 1-9/ Orders received Net sales Process Automation Systems is relatively stable bus
Slide 17: Price and financing of the transaction
Price and financing of the transaction
Slide 18: Price and financing the acquisition
Price and financing the acquisition Enterprise value of acquisition1: EUR 340 million The acquisition will be financed with committed long-term financing Average maturity of long-term debt will increase to over 4 years2 1) Refers to the debt-free enterprise value of the acquisition. 2) Average m
Slide 19: Valmet will have a strong balance sheet also after the acquisition
Valmet will have a strong balance sheet also after the acquisition Process Automation Systems had net assets of approximately EUR 55 million on June 30, 2014 Valmet will have a strong balance sheet also after the acquisition To illustrate, if the transaction would have taken place on September
Slide 20: Next steps
Next steps Valmet <>
Slide 21: Acquisition timeline
Acquisition timeline January 15, 2015 March 19, 2015 April 29, 2015 Signing and publishing Capital Markets Day, Q1/2015 figures the deal, webcast and London published, with old conference call reporting structure February 6, 2015 April 1, 2015 July 30, 2015 Financial Statements Estimated closing of
Slide 22: Summary
Summary Valmet <>
Slide 23: Valmet becomes a unique market leader
Valmet becomes a unique market leader Services Pulp Energy Paper Process Automation #1-2 #1-2 #1-2 #1-2 #1-3 3,800 pulp and 200 wood-handling 270 fluidized bed 700 board machines 4,500 delivered paper mills in the systems boilers 180 tissue machines automation systems world, of which over 470 cookin
Slide 24: Valmet – Committed to moving our customers' performance forward
Valmet – Committed to moving our customers’ performance forward Combination of Valmet and Process Automation Systems creates a unique customer offering The acquired business is a strong, established business with a good financial track record Acquisition makes Valmet more stable and more profitable
Slide 25: Valmet's way forward
Valmet’s way forward Mission Strategy Must-wins Vision Converting renewable Valmet develops and > Customer To become the global resources into supplies competitive excellence champion in serving sustainable results technology and > Leader in our customers services for the pulp, technology paper and
Slide 26: 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 27: FORWARD
FORWARD