Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (November 2024)
50 slides from Valmet's investor day presentation, Nov 19, 2024
Slide 1: Welcome to Valmet Investors Day
Welcome to Valmet Investors Day November 19, 2024 United States of America
Slide 2: Agenda, Valmet Investors Day in USA 2024
Agenda, Valmet Investors Day in USA 2024 November 19, 2024 10:00 Opening Pekka Rouhiainen Vice President, Investor Relations 10:05 Valmet today in North America: Capable of servicing large installed base and delivering big projects Kari Lindberg Senior Advisor, North America Q&A on Valmet in North A
Slide 3: Agenda, Valmet Investors Day in USA 2024
Agenda, Valmet Investors Day in USA 2024 November 19, 2024 10:00 Opening Pekka Rouhiainen Vice President, Investor Relations 10:05 Valmet today in North America: Capable of servicing large installed base and delivering big projects Kari Lindberg Senior Advisor, North America Q&A on Valmet in North A
Slide 4: Valmet today in North America
Valmet today in North America: Capable of servicing large installed base and delivering big projects Kari Lindberg Senior Advisor, North America
Slide 5: Capable of servicing large installed base and delivering big projects
Capable of servicing large installed base and delivering big projects STRONG MARKET POSITION IN ATTRACTIVE MARKET 1 Solid area development in a large and growing market COMPETITIVE OFFERING 2 Market’s widest offering ensures the right combination of solutions for every stage in the lifecycle LARGEST
Slide 6: Progress built on 227 years of industrial history
Progress built on 227 years of industrial history From cloth making to high-tech processes – First vital North American acquisition done in 2000 1797 Jokioisten 1968–1996 Acquisitions 2015 2020 2022 2024 Verkatehdas Several M&As: 2000 Metso Neles Valmet acquires Valmet 1841 Götaverken Beloit Technol
Slide 7: Opportunities to strengthen Services, Automation and Process Technologies through acquisitions
Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions – several contributed to NA Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 14 acquisitions made since becoming an inde
Slide 8: Strong area presence today is a competitive advantage
Strong area presence today is a competitive advantage 2,500 Approx. Employees* 33 Service centers 7 Sales offices 10 Production units 2 Performance centers 1 R&D center *Employee cou nt as of Sep tembe r 2 024 Nove mb er 27, 20 24 © V almet | Valmet Investors Day 2 024
Slide 9: Experienced leadership team driving customer-focused growth
Experienced leadership team driving customer-focused growth NA Common Leadership Jukka Tiitinen Kristen Wald Cindy Reinhart Rob Turner* David Nelson Area President Vice President, Director, Human Resources Director, Legal Counsel Vice President, Finance & Administration Sales & Marketing NA Business
Slide 10: Market's widest offering for North American customers
Market’s widest offering ensures the right combination of solutions to North American customers and market Services Automation Systems Flow Control Paper Pulp and Energy Spare parts & consumables Distributed Control Systems Neles Jamesbury Board, Paper, Tissue Complete chemical pulp Offeri
Slide 11: The largest direct sales network, covering all key customer mills
The largest direct sales network, covering all key customer mills 85 Customer Corporations 325 Customer Mills 130 Direct Salespeople 15,000 Mill Visits per Year Nove mb er 27, 20 24 © V almet | Valmet Investors Day 2 024
Slide 12: Solid track record in Services and in winning the big investment projects
Solid track record in Services and in winning the big investment projects North America (Pulp & Paper) Process Technologies Orders Services orders received received (EUR million) CAGR (EUR million) 593 7,5% 562 450 390 412 351 347 373 207 307 334 299 300 317 313 312 273 298 186 209 207 147 2013 2014
Slide 13: Capable of servicing large installed base and delivering big projects
Capable of servicing large installed base and delivering big projects STRONG MARKET POSITION IN ATTRACTIVE MARKET 1 Solid area organization development in a large and growing market COMPETITIVE OFFERING 2 Market’s widest offering ensures the right combination of solutions for every stage in the life
Slide 14: Q&A Valmet today in North America
Q&A Valmet today in North America
Slide 15: Agenda, Valmet Investors Day in USA 2024
Agenda, Valmet Investors Day in USA 2024 10:00 Opening Pekka Rouhiainen Vice President, Investor Relations 10:05 Valmet today in North America: Capable of servicing large installed base and delivering big projects Kari Lindberg Senior Advisor, North America Q&A on Valmet in North America 10:20 North
Slide 16: North America Market: Stable and good market providing growing installed base
North America Market: Stable and good market providing growing installed base Mike Gray Vice President, Paper, Board & Tissue, North America
Slide 17: Stable and good market providing growing installed base
Stable and good market providing growing installed base ATTRACTIVE MARKET 1 Stable and good market with plenty of opportunities from world’s largest Pulp & Paper corporations HEALTHY OPERATING RATES IN BOARD AND TISSUE 2 Valmet is a market leader in winning new board and tissue projects, providing g
Slide 18: U.S. market is stable and good with increasing optimism
U.S. market is stable and good with increasing optimism around the microeconomic development • U.S. economy has demonstrated resilience, with strong annualized GDP growth rate due to consumer spending, exports and government expenditures. • On November 7, the Federal Reserve reduced the benchmark in
Slide 19: North America has many of the world's largest Pulp & Paper corporations
North America has many of the world’s largest Pulp & Paper corporations 19 Nove mb er 27, 20 24 © V almet | Valmet Investors Day 2 024
Slide 20: Long-term Board and Cartonboard Operating Rates
Long-term Board and Cartonboard Long-term and short-term North America Board Mill Operating Rates are healthier in NA than globally and are expected to Operating Rates improve through 2025 & beyond Short-term Containerboard rates are increasing, and Cartonboard rates are flat or decreasing slightly
Slide 21: Long-term NA Tissue Mill Operating Rates
In North America, the Long-term NA Tissue Mill Operating Rates supply/demand is balanced to slightly under capacity leading to high Operating Rates. Tissue: NA Supply/Demand Demand outlook by Valmet area: Tissue July 2024 forecast, in Mt, CAGR 2022-2028 25 110% +6.3%/a +5.1 Mt +2.2%/a +1.8 Mt 100% +
Slide 22: J.D. Irving Ltd.
J.D. Irving Ltd. Corporate overview Leadership Canadian industry leader that operates 2024 Highlights: extensively in Eastern Canada and • $5 to 7 BUSD Annual Northeastern U.S., with a focus on pulp, Revenue (est. financial paper, and forestry products. information not public) • Celebrating 140 ye
Slide 23: Background information – Irving Consumer Products, Macon, GA, USA
Background information – Irving Consumer Products, Macon, GA, USA Customer information Project scope: Two (2) Advantage TAD 200 line Company name Irving Consumer Products Inc. Advantage TAD Tissue machine – TAD Airsystem – OptiFlo II – 3 layer headbox – Active AirFoils Location Macon, Georgia, USA
Slide 24: Advantage Thru-Air (TAD)
Advantage Thru-Air® (TAD) Features Reliable Ultra Quality Profitable Mature technology and Produce products with the Leveraging fiber savings and refined performance highest delivering highest quality Absorbency to Bulk ratio Technology has been Best cost-benefit and value in & an established market
Slide 25: Graphic paper demand declining globally, increasing in India and Southeast Asia
Graphic paper demand declining globally -3.0%/a or -15.3 Mt by 2028, but demand in India and Southeast Asia will increase 2024-28 Demand outlook by Valmet area: Graphic paper North America July 2024 forecast, in Mt, CAGR 2022-2028 EUR/ton 2000 28.8 Forecast 26.7 -1.0%/a -0.5 %/a -5.6%/a -1.3 Mt -0.7
Slide 26: North America is the largest Pulp and Energy market in the world
North America is the largest Pulp and Energy market in the world Demand outlook by Valmet area: Pulp Aug 2024 forecast, in Mt, CAGR 2022-2028 +5.8%/a +1.5%/a +17.1 Mt +16.2 Mt -0.6%/a -1.1%/a -1.7 Mt 59.5 188 .6 -3.2 Mt 174 .1 172 .4 173 .4 49.9 48.5 49.7 166 .5 49.5 46.8 47.7 47.2 45.0 43.2 43.2 44
Slide 27: 2024 Key North America Capital Projects and Start-ups
2024 Key North America Capital Projects and Start-ups Georgia Pacific, Brunswick Graphic Packaging – New Board Line Cellulose Brownstock Washer Georgia Pacific, Green Bay – New TAD Machine Georgia Pacific, Brewton Lime Kiln Sappi Skowhegan – Line Rebuild Papel San Francisco PM9 New Tissue Machine No
Slide 28: Stable and good market providing growing installed base
Stable and good market providing growing installed base ATTRACTIVE MARKET 1 Stable and good market with plenty of opportunities from world’s largest Pulp & Paper corporations HEALTHY OPERATING RATES IN BOARD AND TISSUE 2 Valmet is a market leader in winning new board and tissue projects, providing g
Slide 29: Q&A North America Market
O&A North America Market Valmet <>
Slide 30: Agenda, Valmet Investors Day in USA 2024
Agenda, Valmet Investors Day in USA 2024 November 19, 2024 10:00 Opening Pekka Rouhiainen Vice President, Investor Relations 10:05 Valmet today in North America: Capable of servicing large installed base and delivering big projects Kari Lindberg Senior Advisor, North America Q&A on Valmet in North A
Slide 31: North America: Important market for Automation Systems and Flow Control
North America: Important market for Automation Systems and Flow Control Kari Huovila Vice President, Automation Systems, North America
Slide 32: Flow Control: Diversified and resilient growth business
Flow Control: Diversified and resilient growth business ATTRACTIVE MARKET 1 Large market with good profitability and growth opportunities STRONG MARKET POSITION 2 Global leading player in a diversified set of segments COMPETITIVE OFFERING 3 Strong value proposition of over-the-lifecycle reliability
Slide 33: Flow Control business line in 2023
Flow Control business line in 2023 Orders received by Orders received by area Orders received by business Orders received customer industry EUR 789 million Net sales EUR 777 million Employees 2,841 Market position #1 Pulp and Paper #1–2 Industrial Gases Top 10 Refining and Chemicals 33 September 20
Slide 34: Flow Control: High-quality product portfolio for valve and valve automation needs
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 35: Automation Systems: Profitable growth in attractive market
Automation Systems: Profitable growth in attractive market ATTRACTIVE MARKET 1 Growth driven by global megatrends of automation and digitalization STRONG MARKET POSITION AND POTENTIAL FOR GROWTH 2 #1–3 in pulp and paper automation globally and solid growth position in energy and process automation C
Slide 36: Automation Systems offering
Automation Systems offering Distributed Control Systems Quality Management Systems Analyzers and Measurements Offering • Highly integrated Valmet DNA Automation • Valmet IQ Quality control system for pulp and • For measuring and optimizing different variables System for process control, monitoring a
Slide 37: Automation Systems key figures
Automation Systems key figures Orders received Orders received split 2023 (EUR million) (% of total) CAGR 551 7.5% 505 467 415 9% 416 21% 368 385 25% 337 32% 9% 309 414 395 401 By industry 310 328 343 By product segment By area 267 291 55% 245 7% 24% 68% 104 137 NA 64 70 77 75 88 72 72 50% 2015 2016
Slide 38: Growth in Pulp and Paper is driven by customers investing in improving their operations
Growth in Pulp and Paper is driven by 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 cont
Slide 39: Nove mb er 27, 20 24 © V almet | Valmet Investors Day 2
Nove mb er 27, 20 24 © V almet | Valmet Investors Day 2 024
Slide 40: Energy and Process offering
Energy and Process offering Our recent track record Expanding addressable market and offering • Specialized DCS supplier to demanding solid- • DCS growth in selected new segments; and multi-fuel boilers and turbine controls chemicals, pharma, food and beverage, • #1 DCS supplier in demanding cruise
Slide 41: Experience Control at Every Level – Valmet DNAe Distributed Control System
Experience Control at Every Level – and move your performance forward with Valmet DNAe Distributed Control System Empower your Reach your production, Enable path towards Evolve throughout the people to perform quality and autonomous operations lifecycle with a at their best environmental targets of
Slide 42: Competitive advantages: Analyzer Products and Integration
Analyzer Products and Integration is now part of Valmet Net Sales Net Sales (Siemens) Selected highlights (EUR million) Strong market positions: 120 #1 in US, #2 globally #1 in Chemicals, #2 in Oil & Gas Increasing sustainability driven market (e.g. SAF, biofuels, recycled plastics as feedstock, C
Slide 43: Valmet is the leading supplier of integrated Automation Systems to Cruise vessels worldwide
Valmet is the leading supplier of integrated Automation Systems to Cruise vessels worldwide Valmet DNA Integrated Automation System – moving ship automation forward • Same proven Valmet DNA technology used as in other industries • > 50% market share of Cruise IAS • All major Cruise Lines are our cus
Slide 44: Icon of the Seas
Icon of the Seas The world’s biggest cruise ship Equipped with a state-of-the-art The automation system integrates: Valmet DNA automation system Machinery systems Power management system Air-condition system Emergency shutdown system Royal Caribbean International 1,196 feet (364m) long 219 f
Slide 45: Q&A Automation in North America
Q&A Automation in North America
Slide 46: Agenda, Valmet Investors Day in USA 2024
Agenda, Valmet Investors Day in USA 2024 November 19, 2024 10:00 Opening Pekka Rouhiainen Vice President, Investor Relations 10:05 Valmet today in North America: Capable of servicing large installed base and delivering big projects Kari Lindberg Senior Advisor, North America Q&A on Valmet in NA 10:2
Slide 47: Summary – Today's key takeaways
Summary – Today’s key takeaways Mike Gray Vice President, Paper, Board & Tissue, North America Valmet Investors Day in USA 2024
Slide 48: Today's key takeaways – Valmet's investment highlights
Today’s key takeaways – Valmet’s investment highlights North America is a stable and good market where Valmet has a strong installed 1 base providing a strong foundation for Services 2 Valmet has a broad footprint and the widest sales network in North America 3 Strong track record of Services growth
Slide 49: Q&A Common Q&A for all presenters
Q&A Common Q&A for all presenters
Slide 50: OBA, ~ Valmet:>
OBA, ~ Valmet:> FORWARD