Valmet Corp · OMXHEX:VALMT
Valmet — Carnegie Capital Goods Seminar 2018
26 slides from Valmet's conference presentation, Mar 14, 2018
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Carnegie Capital Goods Seminar 2018
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financials 4 Conclusion 2 March 2018 © Valmet | Roadshow presentation
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Key figures in 2017
Key figures in 2017 Stable business net sales EUR 1.5 billion Orders received Net sales by business line Net sales by area EUR 3,272 million 11% 19% 24% Net sales 13% 37% EUR 3,159 million 8% Comparable EBITA EUR 226 million Comparable EBITA 29% 9% margin 49% 7.2% Services North America Automation S
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 3,159 2,878 2,928 2,926 2,613 2,473 2,182 1,713 1,658 1,684 2,016 1,537 1,572 1,473 1,581 226 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 | Roadshow presentation
Slide 9: Significant, customer focused research and development work
Significant, customer focused research and development work R&D focus areas • Advanced and competitive technologies and services • Raw material, water and energy efficiency • Promotion of renewable materials 16 EUR 64 million ~1,500 research and R&D spending protected development in 2017 inventions
Slide 10: Acknowledged leader in sustainability
Acknowledged leader in sustainability 360° approach to sustainability Relevant UN Sustainable • In Dow Jones Development Goals Corporate Supply chain Sustainability Index citizenship Most material for the fourth We are a trusted partner We develop and respected corporate sustainable supply consecuti
Slide 11: 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 12: Investment highlights
Investment highlights Valmet <>
Slide 13: 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 14: Strong market position in markets that grow
1 2 3 4 5 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 • Investme
Slide 15: Stable business, with EUR 1.5 billion of net sales
1 2 3 4 5 Stable business, with EUR 1.5 billion of net sales, offering stability, growth and profitability Key potential in stable business Stable business orders received Organic growth • Valmet Way to Serve (EUR million) • Industrial Internet Growth ~5% ~12% CAGR CAGR Services • Strengthening the
Slide 16: Capital business, with flexible cost structure
1 2 3 4 5 Capital business, with flexible cost structure, offering growth and profitability potential Key potential in capital business Orders received (EUR million) • Product cost competitiveness to support the 2,015 growth 1,537 1,657 1,713 • Cost structure development and increasing 1,147 flexibi
Slide 17: Continuous systematic development
1 2 3 4 5 Continuous systematic development Supporting growth: New Valmet way to serve Improved sales process for complete offering Supporting profitability improvement: Reducing procurement costs Reducing quality costs Project management, R&D and ERP 17 March 2018 © Valmet | Roadshow pres
Slide 18: Technology leader with unique offering
1 2 3 4 5 Technology leader with unique offering Cost-competitive, focused Complete pulp mill delivery Comprehensive offering for solutions in Paper capability energy customers • 15 OptiConcept M • State-of-the-art technology for • Solutions for machines sold all types of demanding fuels pulps • 10
Slide 19: Financials
Financials Valmet <>
Slide 20: 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 2,292 2,283 0% 2,292 2,283 0% Net sales 936 785 19% 3,159 2,926 8% Comparable EBITA 76 56 34% 226 196 15% % of net sales 8.1% 7.2% 7.2% 6.7% EBITA 63 48 31% 209 183 14% Operatin
Slide 21: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) 936 854 804 803 8.1% Target 8–10% 777 779 785 734 7.3% 7.2% 748 6.9% 7.1% 7.1% 685 671 6.4% 652 7.9% 588 590 6.1% 7.5% 561 519 5.1% 4.8% 492 Capital business 3.7% 5.5% 445 375 3.5% 408 427 334 429 400 404 444 Stab
Slide 22: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2018 to be announced in March 2018 at the latest Following the adoption of the new principles of IFRS 15, effective as of Guidance January 1, 2018, Valmet’s revenue recognition will change in 2018. As a result, Valmet will publish restated figures
Slide 23: Conclusion
Conclusion Valmet <>
Slide 24: 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 25: 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 26: FORWARD
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