Valmet Corp · OMXHEX:VALMT
Valmet — Forest Products & Paper Seminar 2016
35 slides from Valmet's conference presentation, May 11, 2016
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Forest Products & Paper Seminar 2016 Pasi Laine President and CEO
Slide 2: Agenda
Agenda Forest Products & Paper Seminar 2016 1 Valmet overview 2 Q1/2016 in brief 3 Investment highlights 4 Conclusion 5 Appendix 2 May 11, 2016 © Valmet | Pasi Laine, President and CEO
Slide 3: Valmet overview
Valmet overview Valmet <>
Slide 4: Valmet – over 200 years of industrial history
Valmet – over 200 years of industrial history 1797 Tamfelt 1951 1968-1996 End of 2013 1841 Götaverken Valmet Several M&As i.e. Demerger to 1856 Tampella 1986 KMW Valmet and Metso 1987 Wärtsilä paper finishing machinery 1858 Beloit 1992 Tampella Papertech 1860 KMW 1868 Sunds Defibrator 2015 Metso Pro
Slide 5: Net sales split in 2015
Net sales split in 2015 Stable business net sales EUR 1.4 billion Orders received Net sales by business line Net sales by area EUR 2,878 million 13% 23% 21% Net sales 10% EUR 2,928 million 39% Comparable EBITA1 11% EUR 182 million Comparable EBITA1 31% 8% 45% margin 6.2% Services North America Autom
Slide 6: The widest offering and leading market position in all markets
The widest offering and leading market position in all markets Pulp #1-2 Energy #1-3 Board #1 Tissue #1 Paper #1 Services #1-2 Automation #1-3 6 May 11, 2016 © Valmet | Pasi Laine, President and CEO
Slide 7: 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 7 May 11, 2016 © Valmet | Pasi Laine, President and CEO
Slide 8: Strong, global presence is a good platform for growth
Strong, global presence is a good platform for growth 100 service centers, 86 sales offices, 34 production units, 16 R&D centers North America China • 8 service centers • 17 service centers • 6 production units • 7 production units • 3 sales offices • 8 sales offices 1,955 1,367 EMEA • 16 R&D center
Slide 9: Global customer base
Global customer base Pulp Paper Energy Process 80% of Process Automation Systems’ sales to Valmet’s current customer industries Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 9 May 11, 2016 © Valmet | Pasi Laine, Pre
Slide 10: Valmet's way forward
Valmet’s way forward Our Vision To become the global Our Must-Wins champion in serving our customers Our Strategy Customer excellence Valmet develops and Leader in technology supplies competitive and innovation Our Mission technology and services Excellence in Converting renewable processes to
Slide 11: Q1/2016 in brief
Q1/2016 in brief Valmet <>
Slide 12: Q1/2016 in brief
Q1/2016 in brief Orders received and net sales increased in stable business1 Orders received and net sales increased in capital business2 Order backlog at EUR 2.2 billion Profitability improved compared to Q1/2015, but was below the targeted level Net debt EUR 192 million 1) Stable business = Servic
Slide 13: Key figures
Key figures EUR million Q1/2016 Q1/2015 Change 2015 Orders received 803 580 38% 2,878 Order backlog1 2,207 2,064 7% 2,074 Net sales 652 561 16% 2,928 Comparable EBITA2 31 19 61% 182 % of net sales 4.8% 3.5% 6.2% EBITA 30 19 56% 157 Operating profit (EBIT) 19 13 43% 120 % of net sales 2.9% 2.4% 4.1%
Slide 14: Orders received increased to EUR 803 million in Q1/2016
Orders received increased to EUR 803 million in Q1/2016 Orders received (EUR million) Orders received in Q1/2016, by area Asia-Pacific North 1,400 3,500 America 7% China 13% 1,200 3,000 11% 1,000 1,101 2,500 1,023 South 800 2,000 America 781 793 803 14% 600 725 1,500 580 400 466 480 1,000 200 500 0
Slide 15: Stable business orders received totaled EUR 1,468 million during the last 4 quarters
Stable business orders received totaled EUR 1,468 million during the last 4 quarters Orders received (EUR million) in stable business 500 1,500 450 402 1,350 394 400 1,200 330 342 350 95 81 1,050 293 300 267 273 273 75 900 242 78 250 750 200 600 150 293 307 313 450 267 273 242 273 252 267 100 300 50
Slide 16: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million) 854 777 779 734 7.3% 6.9% Target 6–9% 6.4% 652 590 6.1% 588 561 519 4.8% 5.5% 445 3.7% 3.5% 408 Capital business 400 338 498 409 Stable business 337 319 371 295 354 334 314 Comparable EBITA % 278 251 235 242 224 0.7% Q1
Slide 17: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2016 (as given on February 9, 2016) Valmet estimates that net sales in 2016 will remain at the same level with Guidance for 2015 (EUR 2,928 million) and Comparable EBITA in 2016 will increase in 2016 comparison with 2015 (EUR 182 million). Due to n
Slide 18: Investment highlights
Investment highlights Valmet <>
Slide 19: Investment highlight summary
Investment highlight summary 1 Strong market position in growing markets Stable business, with EUR 1.4 billion of net sales, 2 offering stability, growth and profitability Strong market position in capital business, with cost 3 structure to meet business requirements 4 Technology leader with unique
Slide 20: Strong market position in growing markets
1 2 3 4 5 Strong market position in growing markets Services Automation Pulp Energy Board Tissue Paper #1-2 #1-3 #1-2 #1-3 #1 #1 #1 ~2% 7.5 ~1% 2.0 ~1% 1.4 ~1% 2.0 ~3% 1.0 ~3% 0.6 ~-1% 0.6 p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn • Customers • Investments in • Growth in • Growth in •
Slide 21: Stable business, with EUR 1.4 billion of net sales, offering stability, growth and profitability
1 2 3 4 5 Stable business, with EUR 1.4 billion of net sales, offering stability, growth and profitability Services Automation Orders received1 (EUR million) Orders received2 (illustrative, EUR million) 1,035 1,055 1,119 ~0% CAGR3 ~3% 309 296 309 CAGR3 2013 2014 2015 2013 2014 2015 Target to conti
Slide 22: Strong market position in capital business, with cost structure to meet business requirements
1 2 3 4 5 Strong market position in capital business, with cost structure to meet business requirements Market position Market position #1 #1-3 Paper Pulp and Energy Orders received1 Net sales1 Orders received1 Net sales1 (EUR million) (EUR million) (EUR million) (EUR million) 1,344 907 956 913 864
Slide 23: Technology leader with unique offering
1 2 3 4 5 Technology leader with unique offering Acquisition of Automation strengthened Valmet’s offering Cost-competitive, focused Complete pulp mill delivery Comprehensive offering for solutions in Paper capability energy customers • 10 OptiConcept M • State-of-the-art technology for • Solutions f
Slide 24: Systematically developing the company and profitability with Must-Wins
1 2 3 4 5 Systematically developing the company and profitability with Must-Wins Must-Wins Must-Win implementation objectives for 2016 • Strengthen our presence close to customers and growth markets Customer • Strengthen Key Account Management to serve customers with our full offering excellence • P
Slide 25: Today, customers are extensively utilizing our Industrial Internet capabilities
Today, customers are extensively utilizing our Industrial Internet capabilities Valmet’s competence network Customer’s Valmet’s process remote center 350 Ongoing 740 70,000 320 440 80 Valmet-supplied 350 Condition Advanced Online Performance Co-creation of lines with Valmet Monitoring (CM) process c
Slide 26: Conclusion
Conclusion Valmet <>
Slide 27: Conclusion
Conclusion Strong market position in growing markets Stable business, with EUR 1.4 billion of net sales, offering stability, growth and profitability Strong market position in capital business, with cost structure to meet business requirements Technology leader with unique offering Systema
Slide 28: 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 29: FORWARD
FORWARD
Slide 30: Appendix
Appendix Valmet <>
Slide 31: Orders received and net sales increased in Services in Q1/2016
Orders received and net sales increased in Services in Q1/2016 Orders received (EUR million) Net sales (EUR million) 2014: 2015: 2014: 2015: EUR 1,055 million EUR 1,119 million EUR 989 million EUR 1,128 million 350 307 313 1,400 350 304 314 1,400 293 278 300 267 273 273 267 1,200 300 268 257 1,200 2
Slide 32: Orders received in Automation totaled EUR 81 million in Q1/2016
1 Orders received in Automation totaled to EUR 81 million in Q1/2016 Orders received2 (EUR million) Net sales2 (EUR million) 120 450 120 101 450 95 100 81 375 100 6 375 10 78 75 79 72 80 62 300 80 66 300 8 8 15 55 11 6 60 225 60 9 225 85 95 40 70 150 40 150 67 66 68 66 58 20 75 20 75 0 0 0 0 Q1/15 Q
Slide 33: Orders received increased and net sales decreased in Pulp and Energy in Q1/2016
Orders received increased and net sales decreased in Pulp and Energy in Q1/2016 Orders received (EUR million) Net sales (EUR million) 2014: 2015: 2014: 2015: EUR 1,344 million EUR 864 million EUR 956 million EUR 913 million 700 622 1,400 350 312 1,400 600 560 1,200 300 1,200 229 234 231 245 500 1,00
Slide 34: Orders received and net sales increased in Paper in Q1/2016
Orders received and net sales increased in Paper in Q1/2016 Orders received (EUR million) Net sales (EUR million) 2014: 2015: 2014: 2015: EUR 671 million EUR 673 million EUR 528 million EUR 659 million 250 750 250 750 212 190 197 199 200 200 186 600 200 186 177 185 600 149 157 142 150 128 129 450 15
Slide 35: FORWARD
FORWARD