Valmet Corp · OMXHEX:VALMT
Valmet — Berenberg SRI Conference 2018
35 slides from Valmet's conference presentation, Mar 22, 2018
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Berenberg SRI Conference March 22, 2018
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Sustainability 4 Financials 5 Conclusion 2 March 2018 © Valmet | Berenberg SRI conference 2018
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Key figures in 2017
Key figures in 2017 Orders received by Orders received by area Orders received business line EUR 3,272 million 10% 21% Net sales 32% 38% 17% EUR 3,058 million 6% Comparable EBITA EUR 218 million Comparable EBITA 21% 10% margin 46% 7.1% Services North America Automation South America Employees (on De
Slide 5: Valmet's development
Valmet’s development Comparable EBITA target 8–10% from 2017 onwards Orders received Net sales Comparable EBITA Comp. EBITA margin (EUR million)1 (EUR million)1 (EUR million)1 (%)1 3,272 3,071 3,139 3,058 2,878 2,928 2,926 2,613 2,473 2,182 1,713 1,658 1,584 2,016 1,537 1,572 1,473 1,581 218 1,484 1
Slide 6: Our four business lines serve the same customer base
Our four business lines serve the same customer base #1–2 #1–3 #1–3 #1 Services Automation Pulp and Energy Paper Mill and plant Supplies and develops Technologies and Technologies and improvements, roll and automation and solutions for pulp solutions for board, tissue, workshop services, parts infor
Slide 7: Strong, global presence is a good platform for growth
Strong, global presence is a good platform for growth Over 120 service centers, 86 sales offices, 34 production units, 16 R&D centers China North America • 8 service centers • 6 production units • 17 service centers • 3 sales offices • 7 production units • 8 sales offices 1,696 1,223 EMEA • 16 R&D c
Slide 8: Process technology, services and automation
Process technology, services and automation Valmet’s unique offering differentiates the company from its competitors Process- technology Customer Services Automation 8 March 2018 © Valmet | Berenberg SRI conference 2018
Slide 9: Financial targets
Financial targets Growth • Net sales for stable business to grow over two times the market growth • Net sales for capital business to exceed market growth Profitability • Comparable EBITA: 8–10% ROCE • Comparable return on capital employed (pre- tax), ROCE1: 15–20% Dividend • Dividend payout at leas
Slide 10: Investment highlights
Investment highlights Valmet <>
Slide 11: Investment highlight summary
Investment highlight summary 1 Strong market position in markets that grow Stable business, with EUR 1.5 billion of net sales, 2 offering stability, growth and profitability Capital business, with flexible cost structure, offering 3 growth and profitability potential 4 Continuous systematic developm
Slide 12: Strong market position in markets that grow
Strong market position in markets that grow Services Automation Pulp Energy Tissue Board Paper #1–2 #1–3 #1–2 #1–3 #1 #1 #1 EUR EUR EUR EUR EUR EUR EUR 8.0 ~1-2% 2.0 ~1% 1.4 ~1% 2.0 ~1% 0.7 ~3% 1.0 ~2-3% 0.3 ~-1% p.a. p.a. p.a. p.a. p.a. p.a. p.a. bn bn bn bn bn bn bn • Capacity • Investments in • G
Slide 13: Sustainability
Sustainability Valmet <>
Slide 14: Sustainability at Valmet
Sustainability at Valmet Acknowledged industry leader Most material • In Dow Jones UN Sustainable Sustainability Index Corporate Supply chain Development Goals for the fourth citizenship consecutive year We are a trusted partner We develop and respected corporate sustainable supply • Received Silver
Slide 15: Main quantitative targets
50 Sustainability MAIN 4 screening Orders received for 100% new products and services >25% QUANTITATIVE TARGETS of new suppliers Supplier sustainability audits per year by 2018 CO2 Emissions Waste to landfill Water consumption Safety observations -60% -80% -20% 3 per employee/ year by 2030 by 2030 b
Slide 16: Sustainable supply chain
Sustainable supply chain Targets Action plan Key figures in 2017 Develop sustainable • Ensure globally aligned approval Purchases, MEUR procurement process for new suppliers (5 largest countries) practices • Develop sustainability audit practices and increase the number of Valmet Finland 751 • 100%
Slide 17: Valmet's global supplier management process
Valmet’s global supplier management process Required from all suppliers Potential next steps Sustainable Sustainability Supplier Sustainability supply chain risk self- audit policy assessment assessment All suppliers are All suppliers are Risk assessment Self-assessment required to sign evaluated ma
Slide 18: Health, safety and environment
Health, safety and environment Targets Action plan Key figures in 2017 Culture • Create and launch behavioral-based safety roadmap with new indicators >850 • Continue leadership safety walks Leadership safety walks • Implement Safety@Valmet e-learning • Develop HSE mindset training concept and conve
Slide 19: We steadily progress towards our 2030 targets for our operations
We steadily progress towards our 2030 targets for our operations -30% -60% -20% -80% Energy* CO2 emissions* TJ 1,000 t 19 March 2018 © Valmet | Berenberg SRI conference 2018
Slide 20: We continuously improve our safety performance
We continuously improve our safety performance Short term Long term 2018 target goal TRIF <5 ZERO Global LTIF <2 HARM HSE Global policy incident reporting HSE system notification and alerts Minimum Monthly safety HSE in all 16 Leadership HSE standards agendas Global HSE walks reporting (First 8) Wel
Slide 21: People and performance
People and performance Targets Action plan Key figures in 2017 Boost • Conduct OurVoice employee engagement survey and employee execute development actions engagement • Plan and implement values roadmap 87% response rate in OurVoice employee Develop the • Ensure annual review discussion coverage of
Slide 22: Our people are at the heart of our business
Our people are at the heart of our business • We believe success starts with people • We encourage our people to live our shared values by connecting them to our way forward as a company • We continuously look for ways to enable individual performance and support development • We have 12,000 individ
Slide 23: Sustainable solutions
Sustainable solutions Targets Action plan Key figures in 2017 Sales • Conduct interviews with selected • Deepen understanding of customers’ key customers and integrate sustainability needs improvement actions into key account management process • Arrange sustainability training for sales teams EUR 6
Slide 24: Valmet contributes to circular economy
Valmet contributes to circular economy 24 March 2018 © Valmet | Berenberg SRI conference 2018
Slide 25: Sustainability gates and criteria integrated into innovation process
Sustainability gates and criteria are fully integrated into Valmet’s innovation process Innovation Laboratory Demonstra- ideas and Feasibility Commerci- Life cycle and pilot tion and customer studies alization support testing prototypes needs Joint Own R&D Research Competence Project development cen
Slide 26: Corporate citizenship
Corporate citizenship Targets Action plan Key figures in 2017 Ensure compliance with • Systematically arrange Code of Conduct training guiding principles for selected employees and increase awareness 99.8% with examples • 100% of existing and of personnel completed new employees • Review the Code of
Slide 27: Valmet has an impact on many communities around the world
Valmet has an impact on many communities around the world With global operations we provide employment and business opportunities to a wide range of stakeholders and indirectly build wealth in local societies We strive to ensure that all our operations are carried out in accordance with laws and
Slide 28: Financials
Financials Valmet <>
Slide 29: Key figures
Key figures EUR million Q4/2017 Q4/2016 Change 2017 2016 Change Orders received 727 857 -15% 3,272 3,139 4% Order backlog1 2,458 2,283 8% 2,458 2,283 8% Net sales 967 785 23% 3,058 2,926 5% Comparable EBITA 81 56 44% 218 196 11% % of net sales 8.4% 7.2% 7.1% 6.7% EBITA 69 48 42% 202 183 10% Operatin
Slide 30: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) 967 854 8.4% 777 779 804 785 Target 8–10% 734 7.3% 7.1% 7.2% 732 715 6.9% 685 6.4% 652 645 6.5% 588 590 6.1% 7.8% 561 7.5% 5.3% 519 4.8% Capital business 445 375 523 3.7% 5.5% 3.5% 408 427 357 Stable business 400
Slide 31: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2018 (announced on March 21, 2018) Valmet estimates that net sales in 2018 will remain at the same level as in Guidance 2017 (EUR 3,058 million) and Comparable EBITA in 2018 will increase in comparison with 2017 (EUR 218 million). Short-term market
Slide 32: Conclusion
Conclusion Valmet <>
Slide 33: Conclusion
Conclusion 1 Strong market position in markets that grow Stable business, with EUR 1.5 billion of net sales, 2 offering stability, growth and profitability Capital business, with flexible cost structure, offering 3 growth and profitability potential 4 Continuous systematic development 5 Technology l
Slide 34: 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 35: Forward
FORWARD