Valmet Corp · OMXHEX:VALMT
Valmet — Investor Presentation (2016)
31 slides from Valmet's investor presentation, 2016
Slide 1: Valmet
Valmet Leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries
Slide 2: Contents
Contents 1 Valmet today 2 Offering 3 Financial performance 4 Strategy and Must-Wins 5 Summary
Slide 3: Valmet today
Valmet today Strong global company with 12,000 employees
Slide 4: Over 200 years of industrial history
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 Process Auto
Slide 5: Key figures
Key figures Orders received Net sales by business line Net sales by area EUR 2,878 million 13% 23% 21% Net sales EUR 2,928 million 39% 10% EBITA1 11% EUR 182 million EBITA1 margin 31% 6.2% 8% 45% Employees Services North America 12,306 Automation South America Pulp and Energy EMEA Paper China Asia-P
Slide 6: Strong, global presence - a good platform for growth
Strong, global presence - 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 centers
Slide 7: 12,000 professionals serving customers globally
12,000 professionals serving customers globally Systematic development Personnel by business with global training line: portfolio: 4% Champions in Services Networking in 25 % Procurement 44 % Leading through Lean Agility through Sales Excellence in Project 14 % Management 13 % Fast Forwa
Slide 8: One of the world's sustainability leaders
One of the world’s sustainability leaders • Valmet’s values, Code of Conduct and selected globally acknowledged principles guide our operations • Our Sustainability Agenda has concrete targets and actions • We are included in Dow Jones World Sustainability Index already for the third consecutive yea
Slide 9: Significant, customer focused research and development work
Significant, customer focused reasearch and development work Focus areas • Advanced and competitive technologies and services • Raw material, water and energy efficiency • Promotion of renewable materials 16 EUR 59 1,500 Research million Protected and investment inventions development in R&D year ce
Slide 10: Four business lines and five areas
Four business lines and five areas Services Automation Pulp and Energy Paper business line business line business line business line North America South America EMEA China Asia-Pacific Finance Strategy and Operational Development Human Resources Marketing, Communications and Sustainability 10 2016 ©
Slide 11: Executive Team
Executive Team Pasi Laine Kari Saarinen Julia Macharey Juha Lappalainen Anu Salonsaari-Posti President and CEO CFO SVP, Human Resources SVP, Strategy and SVP, Marketing, Communications Operational Development and Sustainability Business lines Jukka Tiitinen Sakari Ruotsalainen Bertel Karlstedt Jari
Slide 12: Offering
Offering Unique offering to global customer base
Slide 13: Global customer base
Global customer base Pulp Paper Energy Process Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 13 2016 © Valmet
Slide 14: 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 14 2016 © Valmet
Slide 15: Valmet has the widest offering and leading market position in all markets
Valmet has 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 15 2016 © Valmet
Slide 16: Our offering by business line
Our offering by business line Paper Pulp and Energy • Recycled fiber lines • Complete pulp mills • Tailor-made board and paper machines • Sections and solutions for pulp production • Modularized board and paper machines • Multifuel boilers • Tissue production lines • Biomass and waste gasification •
Slide 17: Financial performance
Financial performance Profitability improved in 2015
Slide 18: Financial targets
Financial targets Revised in June, 2016 Growth • Net sales for stable business to grow 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 • Dividen
Slide 19: Summary of the year 2015
Summary of the year 2015 EUR million 2015 2014 Change Orders received 2 878 3 071 -6 % Order backlog1 2 074 1 998 4% Net sales 2 928 2 473 18 % EBITA2 182 106 73 % % of the net sales 6.2 % 4.3 % Earnings per share, EUR 0.51 0.31 67 % Dividend per share 0.35 0.25 40 % Cash flow provided by operating
Slide 20: Valmet's development
Valmet’s development Orders received Net sales EBITA1,2 EBITA margin1,2 (EUR million)1 (EUR million)1 3 500 3 500 200 9% 3 071 2 928 180 8% 3 000 2 878 3 000 Target 6–9% 2 613 160 7% 2 473 2 500 2 500 140 2 182 6% 2 016 1 537 1 572 120 2 000 2 000 5% 1 581 100 1 484 1 147 182 4% 1 500 1 500 80 3% 6,
Slide 21: Strategy and Must-Wins
Strategy and Must-Wins Good results in Must-Win focus areas
Slide 22: Megatrends – impacting our business environment
Megatrends – impacting our business environment Resource efficient and Digitalization and new Aware, urban and global clean world technologies customer Climate change, Digitalization, automatization Urbanization, increasing living environmental awareness and and new high impact standards, chan
Slide 23: Valmet's Way Forward
Valmet’s Way Forward Our Vision Our Must-Wins To become the global Our Strategy champion in serving our Customer excellence customers Valmet develops and Leader in technology supplies competitive and innovation process technology, Excellence in processes services and automation to Our Mission
Slide 24: Key Must-Win objectives to achieve our strategic goals
Key Must-Win objectives to achieve our strategic goals 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 • Provide customer benefits b
Slide 25: We provide our customers with the benefits of Industrial Internet already today
Results: Customer Excellence We provide our customers with the benefits of Industrial Internet already today 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 Val
Slide 26: Our new technologies have been successful in the markets
Results: Leader in technology and innovation Our new technologies have been successful in the markets OptiConcept M board and paper machine Advantage NTT tissue machine 12 sold 9 sold OptiConcept M Advantage NTT machines machines High Power RECOX recovery boiler Valmet IQ quality management solution
Slide 27: Occupational safety, quality and procurement savings has developed well
Results: Excellence in processes Occupational safety, quality and procurement savings has developed well • Occupational safety has improved – year 2015 was safest ever • Savings in procurement are ahead of targets • Quality costs have decreased according to plan 10,1 8,3 6,4 5,5 3,3 2011 2012 2013 2
Slide 28: Our personnel's engagement has developed positively
Results: Winning team Our personnel’s engagement has developed positively and the new training portfolio supports our strategic targets • 81% of employees responded to the engagement survey in 2015 • Personnel engagement increased by 9 percentage points • We launched a global training portfolio with
Slide 29: Summary
Summary
Slide 30: Valmet - Summary
Valmet - Summary A leading process technology, automation and services provider for pulp, paper and energy industries – Unique and market’s widest offering including process technology, automation and services 12,000 professionals serving global customer base One of the world’s 300 sustainabil
Slide 31: Valmet
Valmet >