Valmet Corp · OMXHEX:VALMT
Valmet — Non-Deal Roadshow (December 2023)
101 slides from Valmet's roadshow presentation, December 2023
Slide 1: Valmet – unique offering to support a growing market
Valmet – unique offering to support a growing market Roadshow presentation December 2023
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financial targets and acquisitions 4 Q3/2023 financials, guidance and short-term market outlook 5 Summary 2 December 2023 © Valmet | Roadshow presentation
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Valmet's offering is unique and the widest in the market
Valmet’s offering is unique and the widest in the market Board and tissue Pulp Energy • Board, paper and tissue production lines • Wood and pulp handling • Heat and power generation • Tissue converting • Fiber processing • Air emission control • Rebuilds • Recovery • Pyrolysis solutions • Machine se
Slide 5: We have strong market positions
We have strong market positions Process technologies Services Automation Board and Pulp and Flow Control Automation Tissue Energy Systems Market position Market position Market position Market position Market position Pulp Energy Pulp and Energy and #1 #1–2 Pulp and Renewable paper process #2 #1–3 p
Slide 6: 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) (%) 2013 figures on carve-out basis. 2013–2020 figures have not been restated to reflect the new segment reporting structure which Valmet implemented as of Jan
Slide 7: Valmet's key figures
Valmet’s key figures Q3/2023 LTM Net sales by segment Net sales by area Orders received EUR 5,186 million Net sales EUR 5,573 million Comparable EBITA EUR 632 million Comparable EBITA margin 11.3% Order backlog EUR 4,133 million Employees 18,066 7 December 2023 © Valmet | Roadshow presentation
Slide 8: Valmet has three strong segments
Valmet has three strong segments Q3/2023 LTM figures Net sales Comparable EBITA Comparable EBITA margin (excl. Other) (excl. Other) EUR EUR EUREUR million 16.0% 1,678 EUR EUR million million million 269 million million EUR EUR million million 8 December 2023 © Valmet | Roadshow presentation LTM = La
Slide 9: 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 11,057 employees ~140 service centers China 2,354 employees 54 North America production units 2,169 employees 24 R&D centers Asia-Pacific 8 1,611 employees Performance South America Centers 875 employees Personnel as
Slide 10: Valmet's Way Forward
Valmet’s Way Forward Vision Continuous improvement and To become the global champion in serving our customers and in Strategy renewal moving the industries forward Valmet develops and supplies competitive and Must-Wins reliable process technologies, services and Customer excellence automation to t
Slide 11: 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 28 EUR 95 million ~1,300 research and R&D spending
Slide 12: 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 ninth consecutive year AAA rating in the MSCI ESG Ratings assessment
Slide 13: Valmet's Climate Program has progressed well
Valmet’s Climate Program has progressed well The target to enable carbon neutral production for pulp and paper industry customers achieved seven years ahead of schedule Targets by 2030 for the entire value chain SUPPLY CHAIN OWN OPERATIONS USE PHASE OF VALMET’S TECHNOLOGIES - 20% - 80% - 20% 100% CO
Slide 14: Investment highlights
Investment highlights Valmet <>
Slide 15: Valmet's investment highlights
Valmet’s investment highlights 1 Unique offering to support a growing market 2 Process Technologies segment benefiting from the growing demand for bio-based products and energy 3 EUR 3.1 billion recurring and steadily growing stable business 4 Services segment’s demand driven by large and growing gl
Slide 16: Unique offering to support a growing market
Unique offering to support a growing market Unique offering Strong market drivers Competitive advantage from Process Technologies • E-commerce and global trade the widest offering in the market • Renewable materials replacing plastic packaging • Conversions from paper to board • Energy transition an
Slide 17: Process Technologies segment benefiting from growing demand for bio-based products and energy
Process Technologies segment benefiting from the growing demand for bio-based products and energy • New pulp and paper capacity is needed as demand for bio- Net sales (EUR million) based products continues to grow • Energy transition creates a growing market for Valmet’s energy offering • Large old
Slide 18: EUR 3.1 billion recurring and steadily growing stable business
EUR 3.1 billion recurring and steadily growing stable business • Valmet’s stable business has grown Orders received (EUR million) steadily since 2014 • Future growth possibilities are supported by favorable megatrends • Stable business provides resilience to business cycles and makes Valmet’s order
Slide 19: Services segment's demand driven by large and growing global installed base
Services segment’s demand driven by large and growing global installed base Orders received (EUR million) • Valmet’s Services is a growing and recurring CAGR business ~5% • Demand driven by large and growing global installed base • Roughly EUR 8 billion addressable market estimated to grow 2% annual
Slide 20: Automation segment with high growth and profitability
Automation segment with high growth and profitability • Valmet’s Automation is a growing and recurring Orders received (EUR million) business • Large addressable target market estimated to grow ~3% annually • Target to continue to grow over two times the market growth • Sustainability, digitalizatio
Slide 21: Future growth possibilities from new sustainable innovations
Future growth possibilities from new sustainable innovations Textile fibres Valmet 3D fibre New bioproducts Flow Control and Automation Systems Technology to produce Next generation of molded Lignin usage to replace Solid position to grow in viscose pulp from recycled fiber fossil-based carb
Slide 22: Building Valmet on positive megatrends and strategy of renewal
Building Valmet on positive megatrends and strategy of renewal and continuous development Demand for bio-based New growth Steadily growing products and energy Strategy opportunities stable business continues to grow The large pulp and paper Future growth EUR 3.1 billion stable Strong track r
Slide 23: Financial targets and acquisitions
Financial targets and acquisitions
Slide 24: Financial targets
Financial targets Growth Profitability ROCE Dividend policy Net sales for Services and Comparable EBITA: Comparable return on Dividend payout at least Automation segments to 12–14% capital employed (ROCE) 50% of net profit grow over two times the before taxes1 at least 15% market growth Net sales fo
Slide 25: Concrete actions to reach Comparable EBITA target of 12–14% through must-wins
Concrete actions to reach Comparable EBITA target of 12–14% through must-wins Customer Technology Processes People Grow stable business Leverage strong R&D Ensure good project Increase procurement, over two times the for new product operations to reach a production and market growth innovati
Slide 26: Improvement in Comparable EBITA is the biggest driver for ROCE
Improvement in Comparable EBITA is the biggest driver for ROCE Main drivers for ROCE: Track record • Improvement in Comparable Capital employed (EUR million) Comparable ROCE (%, before taxes) EBITA is the biggest driver for ROCE • Capital employed increased in 2022 due to the Neles merger Target ≥15
Slide 27: Valmet has paid attractive dividend
Valmet has paid attractive dividend DPS Payout target at least 50% of net Payout % 1.30 profit Payout % target, at least 50% 1.20 Target has been exceeded every year 81% 0.90 68% 76% 68% 0.80 68% Constant dividend growth 64% 59% 61% 58% 0.65 0.55 0.42 Total payout (EUR) 0.25 0.35 in dividends
Slide 28: Opportunities to strengthen segments through acquisitions
Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 11 acquisitions made since becoming an independent Process Technologies
Slide 29: Q3/2023 financials, guidance and short-term market outlook
Q3/2023 financials, guidance and short- term market outlook
Slide 30: Key figures
Key figures EUR million Q3/2023 Q3/2022 Change Q1–Q3/2023 Q1–Q3/2022 Change Orders received 980 1,178 -17% 3,801 3,809 0% Order backlog1 4,133 4,672 -12% 4,133 4,672 -12% Net sales 1,295 1,288 1% 4,033 3,534 14% Comparable EBITA 150 136 11% 437 337 29% % of net sales 11.6 % 10.5% 1.1 pp 10.8% 9.5% 1
Slide 31: Segment key figures
Segment key figures Orders received, EUR million Q3/2023 Q3/2022 Change Q1–Q3/2023 Q1–Q3/2022 Change Services 349 427 -18 % 1,356 1,338 1% Automation 289 306 -6 % 1,021 758 35 % Process Technologies 343 444 -23 % 1,424 1,713 -17 % Total 980 1,178 -17 % 3,801 3,809 0% Net sales, EUR million Q3/2023 Q
Slide 32: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 Target 12–14% Comparable EBITA, 54 106 182 196 218 257 316 365 429 533 632 (EUR million) 1. Valmet implemented IFRS 15 – Revenue from Contracts with Customers as of January 1, 2018 by applying full retrospective
Slide 33: Strong balance sheet enabling solid operations, dividends and growth
Strong balance sheet enabling solid operations, dividends and growth also through acquisitions Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not re
Slide 34: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2023 (Published on February 2, 2023) Guidance Valmet estimates that net sales in 2023 will increase in comparison with 2022 (EUR 5,074 million) and Comparable EBITA in 2023 will increase in comparison with 2022 (EUR 533 million). Short-term market
Slide 35: Summary
Summary Valmet <>
Slide 36: Valmet's investment highlights
Valmet’s investment highlights 1 Unique offering to support a growing market 2 Process Technologies segment benefiting from the growing demand for bio-based products and energy 3 EUR 3.1 billion recurring and steadily growing stable business 4 Services segment’s demand driven by large and growing gl
Slide 37: 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 38: FORWARD
FORWARD
Slide 39: Appendix
Appendix 1 Financials 2 Growth and profitability improvement 3 Shareholders and share price development 4 Offering 5 Management and remuneration 39 December 2023 © Valmet | Roadshow presentation
Slide 40: Financials
Appendix ; Financials Valmet <>
Slide 41: Quarterly Comparable EBITA margin development
Quarterly Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) Target 12–14% Comparable EBITA 19 54 47 63 31 57 52 56 34 48 56 81 22 61 61 113 47 69 81 118 52 76 91 146 80 95 107 147 79 122 136 196 133 150 (EUR million) 41 December 2023 © Valmet | Roadshow presentat
Slide 42: Comparable gross profit and SG&A expenses development
Comparable gross profit and SG&A expenses development Comparable gross profit Comparable SG&A expenses (EUR million and % of net sales) (EUR million and % of net sales) • Comparable gross profit was 25.9% of net sales in Q3/2023 (24.6% in Q3/2022) – Stable business represented 57% of net sales (53%
Slide 43: Capital employed, Comparable ROCE and EPS
Capital employed, Comparable ROCE and EPS Capital employed (EUR million) and Comparable return on capital Earnings per share (EPS) and Adjusted EPS, EUR employed (ROCE), before taxes (%) *Adjusted EPS. Adjusted earnings per share is an alternative performance measure that excludes the • Integration
Slide 44: Cash flow provided by operating activities and net working capital
Cash flow provided by operating activities and net working capital Cash flow provided by operating activities (EUR million) Net working capital1 and orders received (EUR million) • Cash flow provided by operating activities EUR 57 million in Q3/2023 • CAPEX2 EUR 27 million in Q3/2023 • Net working c
Slide 45: Services: Orders received remained at previous year's level
Services: Orders received remained at the previous year’s level to EUR 1,356 million in Q1–Q3/2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: EUR 1,338 million EUR 1,3
Slide 46: Automation: Orders received increased to EUR 1,021 million
Automation: Orders received increased to EUR 1,021 million in Q1– Q3/2023 Automation segment includes Automation Systems and starting from Q2/2022 also Flow Control Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2
Slide 47: Flow Control: Orders received amounted to EUR 613 million
Flow Control: Orders received amounted to EUR 613 million in Q1–Q3/2023 Orders received (EUR million)* Net sales (EUR million)* Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: EUR 394 million* EUR 613 million EUR 343 million* EUR 581 million • Orders received amounted to EUR 613 million in Q1–Q3/202
Slide 48: Automation Systems: Orders received increased to EUR 408 million
Automation Systems: Orders received increased to EUR 408 million in Q1–Q3/2023 Orders received (EUR million) Net sales (EUR million) Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: EUR 371 million EUR 408 million EUR 317 million EUR 372 million • Orders received increased compared with Q1–Q3/2022 –
Slide 49: Process Technologies: Orders received decreased to EUR 1,424 million
Process Technologies: Orders received decreased to EUR 1,424 million in Q1–Q3/2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: EUR 1,713 million EUR 1,424 million EUR 1
Slide 50: Pulp and Energy business line: Orders received decreased
Pulp and Energy business line: Orders received decreased to EUR 626 million in Q1–Q3/2023 Orders received (EUR million) Net sales (EUR million) Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: EUR 792 million EUR 626 million EUR 798 million EUR 799 million • Orders received decreased compared with Q1
Slide 51: Paper business line: Orders received decreased
Paper business line: Orders received decreased to EUR 798 million in Q1–Q3/2023 Orders received (EUR million) Net sales (EUR million) Q1–Q3/2022: Q1–Q3/2023: Q1–Q3/2022: Q1–Q3/2023: EUR 921 million EUR 798 million EUR 959 million EUR 1,006 million • Orders received decreased compared with Q1–Q3/2022
Slide 52: Orders received decreased to EUR 980 million in Q3/2023
Orders received decreased to EUR 980 million in Q3/2023 Orders received (EUR million) Orders received in Q1–Q3/2023 by area • Orders received increased in South America and North America, remained at the previous year's level in China and Asia-Pacific and decreased in EMEA in Q1–Q3/2023 compared wit
Slide 53: Order backlog EUR 4,133 million at the end of Q3/2023
Order backlog EUR 4,133 million at the end of Q3/2023 Order backlog (EUR million) Structure of order backlog by segment • Order backlog was EUR 270 million lower than at the end of 2022 • Approximately 30% of the order backlog is currently expected to be realized as net sales during 2023 (at the end
Slide 54: Announced orders booked in H2/2023
Announced orders booked in H2/2023 Booked quarter Date Description Business line Country Value Q3 Oct 2 An Advantage DCT 200 tissue production line to Sofidel Paper USA Not disclosed. Q3 Oct 25 Multiple technologies to Liansheng Pulp & Paper Paper, Pulp and Energy China Not disclosed Q4 Oct 10 A bio
Slide 55: Announced orders booked in H1/2023
Announced orders booked in H1/2023 Booked Date Description Business line Country Value quarter Q1 Feb 23 Coated board machine to Graphic Packaging International Paper USA Not disclosed, but an order of this type and scope is typically valued at EUR 140–180 million. Q1 Mar 2 Tissue line order for Met
Slide 56: Announced orders booked in H2/2022
Announced orders booked in H2/2022 Booked Date Description Business line Country Value quarter Q3 Sep 27 Key technology for Cheng Loong’s new board machine Paper Vietnam Not disclosed, but such an order is typically worth between EUR 20 and 30 million. Q3 Sep 28 A coated board making line Paper Asia
Slide 57: 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 5,194 Process 5,074 4,740 Technologies 10.9% 10.5% 9.8% (Pulp and 3,986 8.9% 3,935 Energy, Paper) 3,722 3,653 2,356 7.7% 3,740 6.7% 7.1% 3,547 6.4% 6.2% 3,325 Stable bus
Slide 58: Orders received and net sales split in 2022
Orders received and net sales split in 2022 Orders received (EUR million and % of total) Net sales (EUR million and % of total) 1,285 1,347 25% 27% 1,606 1,756 32% 34% Services Services Flow Control Flow Control Automation Systems Automation Systems Pulp and Energy Pulp and Energy 1,072 1,081 551 Pa
Slide 59: Services segment: Orders received split in 2022
Services segment: Orders received split in 2022 By business unit By customer segment By geographic area 4% 10% 18% 10% 35% 33% 34% 38% 13% 17% 37% 9% 17% 5% 20% Board North America Performance Parts Paper South America Board, Paper and Tissue Solutions Tissue EMEA Rolls Fabrics Pulp China Pulp and E
Slide 60: Automation segment: Orders received split in 2022
Automation segment: Orders received split in 2022 By customer industry By product By area Flow Control1 9% Mainly 19% 12% 9% 28% OPEX-driven 10% 38% 7% CAPEX- 15% 66% driven Mainly OPEX-driven 32% 8% 47% Pulp & Paper MRO & Services North America Refining & Chemicals South America Projects Renewable
Slide 61: Process Technologies segment: Net sales split in 2022
Process Technologies segment: Net sales split in 2022 By industry By scope By area 10% 3% Pulp and Energy 23% 22% 13% 45% 48% 77% 7% 52% North America Pulp Complete mills South America Energy Rebuilds EMEA Single islands and products China Asia-Pacific 18% 8% 17% 14% Paper 13% 19% 14% 30% 68% 79% 21
Slide 62: Areas: Orders received and net sales development
Areas: Orders received and net sales development North America South America EMEA China Asia-Pacific 2,098 (EUR million and % of total) 2,022 Orders received 1,690 1,594 1,606 1,470 1,508 1,420 1260 1,320 880 885 804 755 711 771 717 686 730 621 725 670 696 48% 46% 51% 46% 588 533 43% 42% 43% 40% 572
Slide 63: Areas: Business line split in 2022
Areas: Business line split in 2022 North America South America EMEA China Asia-Pacific 9% 17% 24% 22% 22% 30% 31% Orders received 22% 47% 47% 8% 5% 55% 8% 29% 6% 8% 8% 9% 6% 13% 6% 35% 18% 14% Services Services Services Services Services Flow Control Flow Control Flow Control Flow Control Flow Contr
Slide 64: Growth and profitability improvement
Appendix Growth and profitability improvement
Slide 65: Strong track record of net sales growth in all segments
Strong track record of net sales growth in all segments Services Automation Process Technologies Net sales (EUR million) Net sales (EUR million) Net sales (EUR million) EUR +896 million EUR +749 million EUR +1001 million 65 December 2023 © Valmet | Roadshow presentation
Slide 66: Unique offering to support a growing market
Unique offering to support a growing market Unique offering Strong market drivers Competitive advantage from Process Technologies • E-commerce and global trade the widest offering in the market • Renewable materials replacing plastic packaging • Conversions from paper to board • Energy transition an
Slide 67: Building Valmet on positive megatrends and strategy of renewal
Building Valmet on positive megatrends and strategy of renewal and continuous development Demand for bio-based New growth Steadily growing products and energy Strategy opportunities stable business continues to grow The large pulp and paper Future growth EUR 3.1 billion stable Strong track r
Slide 68: Concrete actions to reach Comparable EBITA target of 12–14% through must-wins
Concrete actions to reach Comparable EBITA target of 12–14% through must-wins Customer Technology Processes People Grow stable business Leverage strong R&D Ensure good project Increase procurement, over two times the for new product operations to reach a production and market growth innovati
Slide 69: Process Technologies segment benefiting from growing demand
Process Technologies segment benefiting from the growing demand for bio-based products and energy • New pulp and paper capacity is needed as demand for bio- Net sales (EUR million) based products continues to grow • Energy transition creates a growing market for Valmet’s energy offering • Large old
Slide 70: Services segment's demand driven by large and growing global installed base
Services segment’s demand driven by large and growing global installed base Orders received (EUR million) • Valmet’s Services is a growing and recurring CAGR business ~5% • Demand driven by large and growing global installed base • Roughly EUR 8 billion addressable market estimated to grow 2% annual
Slide 71: Automation segment with high growth and profitability
Automation segment with high growth and profitability • Valmet’s Automation is a growing and recurring Orders received (EUR million) business • Large addressable target market estimated to grow ~3% annually • Target to continue to grow over two times the market growth • Sustainability, digitalizatio
Slide 72: 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% 3.3% 3.1% 2.9% 3.0% 2.6% 2.8% 2.4% 2.2%2.2% <1.5% 1.9% 1.9% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual goal 2
Slide 73: Opportunities to strengthen segments through acquisitions
Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 11 acquisitions made since becoming an independent Process Technologies
Slide 74: Merger of Valmet and Neles created a leading company
Merger of Valmet and Neles created a leading company with a unique offering for process industries globally Merger of Valmet and Neles was registered and the combination of Valmet’s and Neles’ business operations completed on April 1, 2022 Valmet acquired 29.5% of Neles shares in 2020 for EUR 45
Slide 75: Acquisition of Körber's Business Area Tissue
Acquisition of Körber’s Business Area Tissue Acquisition in brief • On July 7, 2023, Valmet entered into an agreement to acquire Körber Group’s Business Area Tissue. The transaction was closed on November 2, 2023 • The enterprise value is approximately EUR 380 million1 • The acquired business will o
Slide 76: Acquisition of the Process Gas Chromatography business of Siemens
Acquisition of the Process Gas Chromatography business of Siemens Acquisition in brief • Valmet entered into an agreement on July 14, 2023, to acquire the Process Gas Chromatography business of Siemens AG • The enterprise value is EUR 102.5 million1 • The acquisition is estimated to be completed on
Slide 77: Shareholders and share price development
Appendix Shareholders and share price development
Slide 78: Largest shareholders on November 30, 2023
Largest shareholders on November 30, 2023 Based on indicative data collected by Modular Finance # Shareholder name Number of shares % of shares and votes 1 Solidium Oy 18,640,665 10.10% 2 Oras Invest Oy 15,100,000 8.18% 3 Swedbank Robur Fonder 8,752,102 4.74% 4 Varma Mutual Pension Insurance Company
Slide 79: Shareholder structure on November 30, 2023
Shareholder structure on November 30, 2023 Based on Euroclear data. The classification of sectors determined by Statistics Finland. 79 December 2023 © Valmet | Roadshow presentation
Slide 80: Share of non-Finnish holders and number of shareholders
Share of non-Finnish holders and number of shareholders At the end of November 2023, Valmet had 100,960 shareholders and 40% of the shares were held by investors outside Finland 80 December 2023 © Valmet | Roadshow presentation
Slide 81: Valmet share price development
Valmet share price development Valmet share price development vs OMXH price index, last 3 years Share price during 2023 Valmet OMX Helsinki 45 December 31, 2022 25.16 10,808 Nov 30, 2023 24.47 9,775 High 32.99 11,427 40 Low 19.64 8,915 Market cap (EUR million) 4,515 35 Volume 2023 % of outstanding T
Slide 82: Valmet's total shareholder return has outperformed 90% of European industrial companies
Valmet’s total shareholder return has outperformed 90% of European industrial companies Development since January 2, 2014: Valmet’s share price has outperformed index Valmet’s total shareholder return has been 449% EUR 45 Share price has increased by 370% 40 Cumulative dividend payout EUR 5.37
Slide 83: Offering
Appendix Offering Valmet <>
Slide 84: Services: Strong market position with market's widest offering
Services: Strong market position with market’s widest offering Performance Parts Fabrics Rolls and workshop Board, Paper and Tissue Pulp and Energy services Solutions Solutions Spare parts Paper machine clothing Rolls Improvement projects Improvement projects Offering Consumables Filte
Slide 85: Services: Unified way to serve aims at excellent customer experience
Services: Unified way to serve aims at excellent customer experience We aim to Sales actions Continuous High customer understand customer planned based on collaboration through satisfaction strategy and needs customer needs lifecycle approach Understanding customer strategy Aligning custom
Slide 86: Flow Control: High-quality product portfolio
Flow Control: High-quality product portfolio for valve and valve automation needs Flow Control market position1 Valve controllers • Valve controllers for control and on-off valves • Intelligent safety solenoids # 2–3 • Limit switches Actuators • Pneumatic actuators • Hydraulic actuators # 5–7 • Elec
Slide 87: Automation Systems: High technology and competitive offering
Automation Systems: High technology and competitive offering Distributed Control Systems (DCS) Quality Management Systems (QMS) Analyzers and Measurements • Highly integrated, renewing Valmet DNA • Valmet IQ Quality control system for pulp and • For measuring and optimizing different Automation Syst
Slide 88: Automation Systems: Customers investing in improving their operations
Automation Systems: Customers investing in improving their operations Real-time & predictive control and optimization secure connection to cloud 5. Optimization Applications Optimized production of the entire mill, plant or fleet 1. Distributed Control Systems Reliable process control Data Control 3
Slide 89: Leading pulp and energy technology offering
Leading pulp and energy technology offering Pulp Energy Complete mills and lines Single islands and products Boilers and power plants Rebuilds and conversions • Complete chemical pulp mills • Chemical pulp mill islands • Fluidized bed boilers – using • Boiler fuel conversions from from wood handling
Slide 90: Unmatched scope in Board, Paper and Tissue
Unmatched scope in Board, Paper and Tissue New instalments Rebuilds Single products Board Stock preparation and Capacity and quality recycled fiber lines improvements e.g., headboxes, press rebuilds, Paper, board and tissue surface treatment, winders, refiners machinery Focus on productivity Paper A
Slide 91: Valmet Tissue Converting: Creating the market's widest offering
Valmet Tissue Converting: Creating the market’s widest offering for tissue industry Technologies, services and automation for the entire tissue value chain – from fiber to a finished end product Stock preparation Tissue machine Tissue rewinder Converting line • With Tissue Converting, Valmet now has
Slide 92: Driving rebuilds towards resource-efficient board production
Driving rebuilds towards resource-efficient board production Energy consumption1 Fiber savings1 Optimized performance Bio-packaging -18% -10% with Industrial Internet with new coating solutions 2012–2022: 2012–2022: solutions from 1,150 to 950 kWh/t from 100 to 90 g/m2 OptiFlo with OptiFormer OptiPr
Slide 93: Driving development of resource-efficient tissue production
Driving development of resource-efficient tissue production 47% less energy1 80% less water1 Less fiber consumption2 Energy /ton paper [kWh/ton] Water /ton paper [m3/ton] 3,330 3,106 12.0 2,850 2,150 1,960 1,800 1,750 7.0 5.5 4.5 4.0 3.6 2.1 • Hybrid technologies • ViscoNip press 1990 2000 2006 2010
Slide 94: Management and remuneration
Appendix Management and remuneration
Slide 95: 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. (Econ.) • M.Sc. (Eng.) • M.Sc. (Eng.)
Slide 96: Executive Team
Executive Team Corporate Pasi Laine Katri Hokkanen Julia Macharey Anu Salonsaari-Posti President and CEO CFO SVP, Human Resources and SVP, Marketing, Communications, Share ownership: 185,946 Share ownership: 7,145 Operational Development Sustainability and Corporate Relations Share ownership: 41,110
Slide 97: 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 In 2022, the President and CEO’s monthly fixed compensation was EUR 60,859 and
Slide 98: 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 99: The Performance Share Plan for CEO and Executive Team members
The Performance Share Plan for CEO and Executive Team members Includes a three-year performance period parallel to a one-year performance period Measures for the one-year performance period are based on long-term strategic and financial targets. The measures have remained the same for the past e
Slide 100: Current Performance Share Plans and Deferred Share Plans
Current Performance Share Plans and Deferred Share Plans LTI plan 2021–2023 LTI plan 2022–2024 LTI plan 2023–2025 Plan name Performance Share PSP PSP and DSP PSP PSP and DSP PSP Plan (PSP) and Deferred Share Plan (DSP) Performance period 2021 (1 year) 2021–2023 (3 years) 2022 (1 year) 2022–2024 (3 y
Slide 101: FORWARD
FORWARD