Valmet Corp · OMXHEX:VALMT
Valmet — Non-Deal Roadshow (May 2022)
88 slides from Valmet's roadshow presentation, May 2022
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Roadshow presentation May 2022
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financials 4 Summary 2 May 2022 © Valmet | Roadshow presentation
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: We have strong market shares and unique offering
We have strong market shares and unique offering Process technologies Services Automation Board and Pulp and Flow Control Automation Paper Energy Systems Market position in Market position in Market position Market position Market position Pulp and Paper Pulp and Paper #1 #1–3 #1–2 #1 #1–3 Strong po
Slide 5: Valmet’s development since 2013
Valmet’s development since 2013 Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%) 600 12% 5.5 5.5 5.0 5.0 500 10% 4.5 4.5 4.0 4.0 400 8% 3.5 3.5 3.0 3.0 300 6% 2.5 2.5 2.0 2.0 200 4% 1.5 1.5 100 1.0 1.0 2% 0.5 0.5 0 0.0 0.0 2013 2016 201
Slide 6: Valmet has three strong segments
Valmet has three strong segments Illustrative key figures for LTM Q1/2022 Net sales by segment Comparable EBITA by segment Orders received EUR 5,420 million Net sales EUR EUR EUR EUR 4,685 million 1,081 183 173 million EUR million million Comparable EBITA 2,215 million EUR 525 million EUR Comparable
Slide 7: Global presence creating a good platform for growth in Services and Automation
Global presence creating a good platform for growth in Services and Automation EMEA 10,773 employees ~140 service centers China 2,276 employees 54 North America production units 2,032 employees 24 R&D centers Asia-Pacific 8 1,539 employees Performance South America Centers 771 employees Personnel as
Slide 8: Valmet’s way forward
Valmet’s way forward Our Vision Our Must-Wins To become the global champion Customer excellence in serving our customers Our Strategy Leader in technology and Valmet develops and supplies innovation competitive process technology, Excellence in processes services and automation to the pulp, pa
Slide 9: Valmet’s R&D is aiming to address global megatrends
Valmet’s R&D is aiming to address global megatrends R&D focus areas • Promotion of renewable materials • Raw material, water and energy efficiency • Emission reductions • Circularity • Productivity and environmental improvements with digitalization 24 EUR 98 million ~1,300 research and R&D spending
Slide 10: Acknowledged leader in sustainability
Acknowledged leader in sustainability 360º approach to sustainability across value chain Environmental Engaged efficiency workplace Good sustainability ratings In Dow Jones Sustainability Index for the Climate Health and safety eighth consecutive year AAA rating in the MSCI ESG Ratings assessmen
Slide 11: 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 12: New financial targets as of April 1, 2022
New financial targets as of April 1, 2022 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
Slide 13: Investment highlights
Investment highlights Valmet <>
Slide 14: Investment highlights
Investment highlights 1 Strong position in the growing market of converting renewables 2 Unique offering combining process technology, services and automation 3 EUR 2.7 billion recurring and steadily growing stable business 4 Services: The widest offering and strong geographical presence 5 Flow Cont
Slide 15: Strong position in the growing market of converting renewables
1 2 3 4 5 6 7 8 9 Strong position in the growing market of converting renewables Process Technologies Services Automation #1 #1 #1 #1-2 #1-3 #1-2 #1 in pulp & paper #1-3 in pulp & paper Board Tissue Paper Pulp Energy Flow Control Automation Systems 3.5 2.0 8.0 0.9 2.1 EUR bn EUR bn EUR bn EUR bn EUR
Slide 16: Unique offering combining process technology, services and automation
1 2 3 4 5 6 7 8 9 Unique offering combining process technology, services and automation 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
Slide 17: EUR 2.7 billion recurring and steadily growing stable business
1 2 3 4 5 6 7 8 9 EUR 2.7 billion recurring and steadily growing stable business • Valmet’s stable business has grown Orders received (EUR million) steadily since 2014 3,000 2,707 • Future growth possibilities are supported 667 by favorable megatrends 2,500 • Stable business provides resilience to 1
Slide 18: Services: The widest offering and strong geographical presence
1 2 3 4 5 6 7 8 9 Services: The widest offering and strong geographical presence Services business line Widest offering to support customers’ all service needs Services business line Orders received (EUR million) Benefits from growing installed base 1,549 Strong geographical presence close to
Slide 19: Flow Control: Strong and diversified offering across many process industries
1 2 3 4 5 6 7 8 9 Flow Control: Strong and diversified offering across many process industries Flow control business line Leading position as a flow control solution provider Flow Control business line Orders received (EUR million) Market leadership in pulp & paper and industrial gases Sales by
Slide 20: Automation Systems: Maximizing efficiency and safety of our customers
1 2 3 4 5 6 7 8 9 Automation Systems: Maximizing efficiency and safety of our customers Automation Systems business line Solutions range from single measurements to plant-wide Automation Systems business line process automation systems Orders received (EUR million) Designed to maximize safety, s
Slide 21: Paper: World-class technology for packaging and hygiene needs
1 2 3 4 5 6 7 8 9 Paper: World-class technology for packaging and hygiene needs Paper business line Offering includes world-leading technology and products Paper business line for board, tissue and paper making Orders received (EUR million) Net sales (EUR million) Long-term growth supported by f
Slide 22: Pulp and Energy: Strong business with high market share and flexible cost structure
1 2 3 4 5 6 7 8 9 Pulp and Energy: Strong business with high market share and flexible cost structure Pulp and Energy business line Offering includes full pulp mills and energy solutions for Pulp and Energy business line biomass and emission control Orders received (EUR million) Net sales (EUR mil
Slide 23: Systematically building the future with continuous improvement
1 2 3 4 5 6 7 8 9 Systematically building the future with continuous improvement Customer Technology Process People Valmet’s way to serve: Develop new products Continue to improve Continuous development Lifecycle collaboration and technologies project management of employees through between the cust
Slide 24: Financials
Financials Valmet <>
Slide 25: Key figures
Key figures EUR million Q1/2022 Q1/2021 Change 2021 Orders received 1,324 1,312 1% 4,740 Order backlog1 4,459 3,709 20% 4,096 Net sales 960 858 12% 3,935 Comparable EBITA 79 80 -1% 429 % of net sales 8.3% 9.4% 10.9% EBITA 74 89 -16% 448 Operating profit (EBIT) 63 76 -17% 399 % of net sales 6.5% 8.9%
Slide 26: Segment key figures
Segment key figures Orders received, EUR million Q1/2022 Q1/2021 Change 2021 Services 451 383 18% 1,481 Automation 147 123 19% 467 Process Technologies 727 807 -10% 2,793 Total 1,324 1,312 1% 4,740 Net sales, EUR million Q1/2022 Q1/2021 Change 2021 Services 317 288 10% 1,360 Automation 88 67 31% 412
Slide 27: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 3,935 4,037 3,740 Target 12–14% 3,547 10.9% 3,325 10.6% 3,058 9.8% 2,928 2,926 8.9% 2,473 7.7% 7.1% Capital Business 6.7% 6.2% 1,832 2,163 2,215 Stable business 2,079 4.3% 1,473 1,584 1,799 1,572 1,715 1,773 1,82
Slide 28: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2022 (Published on April 1, 2022) 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 (EUR 4
Slide 29: Summary
Summary Valmet <>
Slide 30: Investment highlights
Investment highlights 1 Strong position in the growing market of converting renewables 2 Unique offering combining process technology, services and automation 3 EUR 2.7 billion recurring and steadily growing stable business 4 Services: The widest offering and strong geographical presence 5 Flow Cont
Slide 31: 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 32: FORWARD
FORWARD
Slide 33: Appendix
Appendix 1 Financials 2 Growth and profitability improvement 3 Shareholders and share price development 4 Strategy and offering 5 Management and remuneration 33 May 2022 © Valmet | Roadshow presentation
Slide 34: Financials
Appendix ; Financials Valmet <>
Slide 35: Quarterly Comparable EBITA margin development
Quarterly Comparable EBITA margin development 12.5% 12.2% Net sales and Comparable EBITA (EUR million and %) 11.4% 1,167 11.5% 1,103 10.1% Target 10–12% 9.5%10.7% 10.9% 984 9.4% 967 943 935 901 919 854 8.4% 844 8.0% 857 8.3% 832 858 777 779 804 7.5% 785 7.8% 821 734 7.3% 765 6.9% 8.3% 732 715 732 68
Slide 36: Services: Orders received increased to EUR 451 million in Q1/2022
Services: Orders received increased to EUR 451 million in Q1/2022 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2021: Q1/2022: Q1/2021 : Q1/2022 : Q1/2021 : Q1/2022 : EUR 383 million EUR 451 million EUR 288 million EUR 317 million EUR 36 m
Slide 37: Automation: Orders received increased to EUR 147 million in Q1/2022
Automation: Orders received increased to EUR 147 million in Q1/2022 Automation segment includes only Automation Systems business line in Q1/2022 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2021: Q1/2022: Q1/2021: Q1/2022: Q1/2021: Q1/202
Slide 38: Process Technologies: Orders received decreased to EUR 727 million in Q1/2022
Process Technologies: Orders received decreased to EUR 727 million in Q1/2022 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2021: Q1/2022: Q1/2021: Q1/2022: Q1/2021: Q1/2022: EUR 807 million EUR 727 million EUR 503 million EUR 555 million
Slide 39: Pulp and Energy business line: Orders received decreased to EUR 327 million in Q1/2022
Pulp and Energy business line: Orders received decreased to EUR 327 million in Q1/2022 Orders received (EUR million) Net sales (EUR million) Q1/2021: Q1/2022: Q1/2021: Q1/2022: EUR 458 million EUR 327 million EUR 227 million EUR 276 million 1,600 1,600 1,344 1,400 1,400 1,125 1,160 1,200 1,029 1,200
Slide 40: Paper business line: Orders received increased to EUR 400 million in Q1/2022
Paper business line: Orders received increased to EUR 400 million in Q1/2022 Orders received (EUR million) Net sales (EUR million) Q1/2021: Q1/2022: Q1/2021: Q1/2022: EUR 349 million EUR 400 million EUR 275 million EUR 279 million 1,800 1,634 1,684 1,800 1,600 1,600 1,400 1,400 1,077 1,076 1,141 1,1
Slide 41: Orders received and net sales split in 2021
Orders received and net sales split in 2021 Orders received (EUR million and % of total) Net sales (EUR million and % of total) 1,481 1,141 1,634 29% 1,360 31% 34% 35% Services Services Automation Automation Pulp and Energy Pulp and Energy Paper Paper 467 10% 412 1,022 1,160 26% 10% 24% 544 725 377
Slide 42: Business lines in 2021: Stable business
Business lines in 2021: Stable business Services business line Automation business line 18% 10% 9% 15% 26% 10% 11% 30% 35% Orders received Orders received 7% 18% 9% 74% 13% 16% 41% 59% Performance parts Rolls North America Pulp and Paper North America Fabrics South America Energy and Process South A
Slide 43: Business lines in 2021: Capital business
Business lines in 2021: Capital business Pulp and Energy business line Paper business line 13% 2% 14% 13% 11% 22% 24% 7% Orders received Orders received 14% 16% 24% 78% 79% 48% 37% Pulp North America Board North America Energy South America Paper South America EMEA Tissue EMEA China China Asia-Pacif
Slide 44: Areas: Orders received and net sales development
Areas: Orders received and net sales development North America South America EMEA China Asia-Pacific (EUR million and % of total) 2,022 Orders received 1,690 1,594 1,606 1,470 1,508 1,420 1,320 880 885 804 755 717 686 730 621 725 670 696 48% 46% 51% 46% 588 533 43% 42% 43% 572 523 586 544 414 490 24
Slide 45: Areas: Business line split in 2021
Areas: Business line split in 2021 North America South America EMEA China Asia-Pacific Orders received 18% 21% 25% 28% 38% 3% 31% 30% 39% 4% 3% 54% 9% 62% 6% 11% 22% 40% 28% 27% Services Automation Services Automation Services Automation Services Automation Services Automation Pulp and Energy Paper
Slide 46: Announced orders booked in H1/2022
Announced orders booked in H1/2022 Booked Date Description Business line Country Value quarter Q1 Feb 2 Waste-to-energy boiler to Thang Long Energy Environment Joint Pulp & Energy Vietnam Not disclosed. The value of an order of this type is around EUR 20–30 million. Stock Company Q1 Apr 5 Fiberline
Slide 47: Announced orders booked in H2/2021
Announced orders booked in H2/2021 Booked Date Description Business line Country Value quarter Q3 Jul 7 Turnkey biopower plant for the city of Salzburg Pulp and Energy Austria Not disclosed. Q3 Sep 17 Container board making line to Kipas Kagit Paper Turkey Not disclosed. The total value of an order
Slide 48: Announced orders booked in H1/2021
Announced orders booked in H1/2021 Booked Date Description Business line Country Value quarter Q1 Jan 15 Extensive tissue machine rebuild for Metsä Tissue Paper Finland Not disclosed Q1 Jan 29 Textile recycling plant's main equipment for Renewcell Pulp and Energy Sweden Around EUR 25 million Q1 Feb
Slide 49: Orders received remained at the previous year’s level at EUR 1,324 million in Q1/2022
Orders received remained at the previous year’s level at EUR 1,324 million in Q1/2022 Orders received in Q1/2022 by area Orders received (EUR million) Asia- 2,000 5,000 Pacific North 9% America 1,800 4,500 19% 1,600 4,000 1,400 3,500 China South 1,200 3,000 24% America 1,000 2,500 6% 800 2,000 1,312
Slide 50: Stable business orders received totaled EUR 2,040 million during the last four quarters
Stable business orders received totaled EUR 2,040 million during the last four quarters Orders received (EUR million) in stable business 2500 2,040 2000 1,947 1,875 1,701 1,772 1,609 490 416 467 1,519 1500 386 415 1,367 368 337 248 1,035 1,055 1000 1,459 1,481 1,549 1,242 1,315 1,356 1,055 1,119 1,1
Slide 51: Order backlog EUR 4,459 million at the end of Q1/2022
Order backlog EUR 4,459 million at the end of Q1/2022 Order backlog (EUR million) Structure of order backlog by segment 5,000 4,459 ~5% 4,500 4,096 4,000 ~20% 3,500 3,333 3,257 ~75% 3,000 2,829 2,458 2,500 2,283 1,998 2,074 2,000 1,500 1,000 Process Technologies 500 Services Automation 0 2014 2015 2
Slide 52: Gross profit and SG&A development
Gross profit and SG&A development Gross profit (EUR million and % of net sales) SG&A (EUR million and % of net sales) 1,200 30% 1,200 30% 25% 1,000 25% 1,000 25% 995 800 20% 800 20% 15% 600 15% 600 15% 617 400 10% 400 10% 200 5% 200 5% 0 0% 0 0% 2014 2015 2016 2017 2018 2019 2020 2021 Q1/2022 2014 2
Slide 53: Capital employed, Comparable ROCE and EPS
Capital employed, Comparable ROCE and EPS Capital employed (EUR million) and Earnings per share, EUR Comparable return on capital employed (ROCE), before taxes (%) 24% 1.98 23% 23% 1.90 22% 20% 1.54 16% 1,808 1.35 1,639 1,698 14% 13% 1,314 1.01 1,231 1,195 10% 1,137 1,150 0.81 877 0.51 0.55 0.31 201
Slide 54: Dividend and balance sheet
Dividend and balance sheet Dividend payout at least 50% of net profit Track record Balance sheet and cash flow Dividend per share (EUR) and payout ratio (%) Net debt (EUR million) Cash flow provided by operating activities Net debt / EBITDA ratio Net working capital Target 200 2 600 >50% 150 178 1.5
Slide 55: Orders received and profitability development, annual
Orders received and profitability development, annual Orders received (EUR million)1 Net sales and Comparable EBITA (EUR million)1 4,740 3,935 Pulp and 3,740 Energy, and 3,986 3,547 10.9% 3,722 3,653 3,325 9.8% Paper business 3,272 3,014 2,928 2,926 3,058 8.9% lines 3,225 3,139 3,071 2,703 7.7% 2,87
Slide 56: Growth and profitability improvement
Appendix Growth and profitability improvement
Slide 57: Actions to keep growing faster than the market
Actions to keep growing faster than the market Net sales growth Stable business Capital business • Win new customers and increase share of wallet • Benefit from strong favorable megatrends in with existing customers Board, Tissue, Pulp and Energy • Grow service sales and multi-year service • Continu
Slide 58: Procurement and quality cost development
Procurement and quality cost development Implemented procurement savings of annual direct spend Quality costs (% of net sales) 4.3% 4.4% 4.3% 4.0% 3.8% 3.9% 3.7% 3.8% 4.0% 3.6% 3.1% 2.9% >3.0% 2.6% 2.8% 2.4% 2.2% 2.2% 1.9% <1.3% 2013 2014 2015 2016 2017 2018 2019 2020 2021 Annual goal 2013 2014 2015
Slide 59: Acquisitions
Acquisitions • Valmet’s acquisition strategy is to make Track record of successful acquisitions selective acquisitions with a clear industrial logic to support organic growth 2015 2019 2020 2021 2022 ‒ Focus on strengthening services and Automation GL&V 29.5% share EWK Merger in Neles ECP with Neles
Slide 60: Valmet strengthened its business by acquiring PMP Group in 2020
Valmet strengthened its business by acquiring PMP Group in 2020 Focus on small and medium-sized tissue machines and board and paper machine rebuilds Key information about the acquisition • PMP Group supplies process technologies and services for tissue, Net sales in 2019 EUR ~70 million board and pa
Slide 61: Valmet strengthened its stable business through acquisitions
Valmet strengthened its stable business through acquisitions Valmet completed the acquisitions of GL&V and J&L Fiber Services in Q2/2019 • GL&V is a supplier of technologies, upgrade and process • J&L Fiber Services is a manufacturer and provider of refiner optimization services, rebuilds and spare
Slide 62: Shareholders and share price development
Appendix Shareholders and share price development
Slide 63: Largest shareholders on April 30, 2022
Largest shareholders on April 30, 2022 Based on indicative data collected by Modular Finance # Shareholder name Number of shares % of shares and votes 1 Solidium Oy 17,367,421 9.41 % 2 Oras Invest Oy 6,627,691 3.59 % 3 Ilmarinen Mutual Pension Insurance Company 5,715,642 3.10 % 4 Vanguard 4,367,539
Slide 64: Shareholder structure on April 30, 2022
Shareholder structure on April 30, 2022 Based on Euroclear data. The classification of sectors determined by Statistics Finland. Päivitä 31.4. tilanne Sector Number of shareholders % of total shareholders Number of shares % of shares Nominee registered and non-Finnish holders 472 0.59 97,641,748 52.
Slide 65: Share of non-Finnish holders and number of shareholders
Share of non-Finnish holders and number of shareholders Valmet has 79,813 shareholders and 52.9% of the shares are held by investors outside Finland 85,000 58% 57% 80,000 56% 75,000 55% 70,000 54% 53% 65,000 52% 60,000 51% 55,000 50% 49% 50,000 48% 45,000 47% 40,000 46% 12/2013 04/2014 08/2014 12/20
Slide 66: Valmet share price development
Valmet share price development Valmet share price development vs OMXH price index, last 3 years Share price Valmet OMX Helsinki December 31, 2021 37.72 12,862 45 April 30, 2022 25.66 11,143 40 High 38.59 13,160 Low 24.44 9,550 35 Market cap (EUR million) 4,735 30 25 Volume 2022 % of outstanding Tota
Slide 67: Strategy and offering
Appendix Strategy and offering
Slide 68: Valmet’s way forward
Valmet’s way forward Our Vision Our Must-Wins To become the global champion Customer excellence in serving our customers Our Strategy Leader in technology and Valmet develops and supplies innovation competitive process technology, Excellence in processes services and automation to the pulp, pa
Slide 69: Services segment
Services segment Rolls and Workshop Board, Paper and Pulp and Energy Performance Parts Services Fabrics Tissue Solutions Solutions Spare parts and Rolls, roll covers and Paper machine clothing Improvement Projects, Improvement Projects, Field consumables maintenance, workshop and filter fabrics Fiel
Slide 70: Our way to serve - Right combination of services for every stage in the lifecycle
Our way to serve - Right combination of services for every stage in the lifecycle Our services offering Maintenance Industrial Spare and Workshop and Process Fabrics development & Field services Internet process parts roll services upgrades outsourcing solutions Delivery models Service products Serv
Slide 71: Flow Control business line offering
Flow Control business line offering Valves Valve automation Valve controls • Control valves High-performing pneumatic, electric and Automatic valve controllers and valve • Automated on/off valves manual actuators designed to maximize cycle positioners to improve process efficiency and life and impro
Slide 72: Automation Systems business line offering
Automation Systems business line offering Delivered as products and technology, projects and service agreements Distributed Quality Analyzers and Industrial Automation control systems management measurements Internet solutions services • Highly integrated • Quality control • For measuring and • Adva
Slide 73: Future-proof automation solutions and services
Future-proof automation solutions and services Our automation Distributed control Industrial Quality Analyzers and Industrial Internet Automation offering systems applications management measurements solutions services Delivery models Automation products and technology Automation projects Service ag
Slide 74: Automation Systems business line offering and market overview
Automation Systems business line offering and market overview Advanced automation and process monitoring solutions and services: Over 4,500 Distributed Control System (DCS) – Valmet DNA Industrial internet solutions automation systems Performance solutions Automation services and over 40,000
Slide 75: Pulp and Energy business line offering
Pulp and Energy business line offering Leading global technology supplier Pulp Energy Pulp Biomass conversion Energy Emission control • Chemical pulp mill • Pretreatment for bioethanol Technology for biomass and municipal • Power plant flue gas cleaning Woodhandling production and industrial resid
Slide 76: Paper business line offering
Paper business line offering Stock preparation and recycled fiber Board and paper Tissue • Stock preparation lines Board and paper production lines Tissue production lines – Recycled fiber lines – Technologies for all board and paper grades – Technologies for all tissue grades and products – Sto
Slide 77: Full scope offering for the pulp and paper industry
Full scope offering for the pulp and paper industry Technologies Automation Services 1 Wood handling 6 Recycled fiber • Distributed Control System • Mill and plant improvements (DCS) • Spare and wear parts 2 Heat and power 7 Mechanical fiber • Performance solutions • Paper machine clothing productio
Slide 78: Our offering for energy industry and biotechnologies
Our offering for energy industry and biotechnologies Technologies Automation Services 1 Fuel handling 5 Modularized • Distributed Control System • Plant improvements power plants (DCS) • Rebuilds 2 Gasification • Performance solutions • Performance services 6 Prehydrolysis 3 Boiler and flue For biof
Slide 79: Continuous investment in research and development to improve customers’ processes
Continuous investment in research and development to improve customers’ processes Example of our R&D work – Valmet’s R&D focus Valmet’s R&D resources OptiConcept M board and paper Customers’ needs machine • Increase production • Modularized and • Own R&D centers and efficiency standardized products
Slide 80: Growth accelerator: Valmet Industrial Internet - VII
Growth accelerator: Valmet Industrial Internet - VII Dialogue with data to move our customers performance forward Valmet Performance Center delivering remote support Recent development VII solutions launched for all customer segments Development of Mill Wide Optimization application Asset Perf
Slide 81: Typical dimensions of pulp mills, and paper, board and tissue machines
Typical dimensions of pulp mills, and paper, board and tissue machines Paper and board machine Pulp mill Length 140 m, equivalent to a line of ~30 cars Speed: 72 km/h Production: 400,000 t/a Width 7 m Tissue machine Length 40 m, equivalent to a line of ~9 cars • Mill site area: 500,000 – 5,000,000 m
Slide 82: Management and remuneration
Appendix Management and remuneration
Slide 83: Board of Directors
Board of Directors Mikael Mäkinen Jaakko Eskola Aaro Cantell Anu Hämäläinen (b. 1956) (b. 1958) (b. 1964) (b. 1965) Chairman of Vice-Chairman of Board member Board member the Board the Board Finnish citizen Finnish citizen Finnish citizen Finnish citizen • M.Sc. (Eng.) • M.Sc. (Eng.) • M.Sc. (Tech.)
Slide 84: Executive Team
Executive Team Corporate Pasi Laine Katri Hokkanen Julia Macharey Anu Salonsaari-Posti President and CEO Interim CFO SVP, Human Resources and SVP, Marketing, Communications, Share ownership: 177,137 Operational Development Sustainability and Corporate Relations Share ownership: 38,319 Share ownershi
Slide 85: Remuneration of the President and CEO
Remuneration of the President and CEO The remuneration of the President and CEO is comprised of – fixed base salary (incl. taxable benefits1) – short-term and long-term incentives, and – pension and insurance benefits The relative proportion of the variable pay elements at maximum level is 2–3 t
Slide 86: Remuneration of the Executive Team
Remuneration of the Executive Team The remuneration of the Executive Team members comprises – fixed base salary (incl. monthly salary and taxable benefits1) – short-term and long-term incentives, and – a supplementary pension plan Additional pension benefit in the form of a defined contribution
Slide 87: The Performance Share Plan for Executive Team members
The Performance Share Plan for Executive Team members Includes a three-year performance period parallel to a one-year performance period One-year performance measures are based on long-term strategic and financial targets. They are measured independently and have remained the same for the past e
Slide 88: FORWARD
FORWARD