Valmet Corp · OMXHEX:VALMT
Valmet — Berenberg Conference USA 2018
27 slides from Valmet's conference presentation, May 22, 2018
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Berenberg Conference USA May 22, 2018
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financials 4 Conclusion 2 May 22, 2018 © Valmet | Berenberg Conference USA 2018
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Key figures in 2017
Key figures in 2017 Net sales by business line Net sales by area Orders received EUR 3,272 million 10% 26% 20% Net sales EUR 3,058 million 13% 39% Comparable EBITA 8% EUR 218 million Comparable EBITA margin 26% 7.1% 10% 49% Order backlog (on Mar 31, 2018) Services North America EUR 2,583 million Aut
Slide 5: Valmet's development
Valmet’s development Comparable EBITA target 8–10% Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR million)1 (EUR million)1 (EUR million)1 (%)1 3,272 3,157 3,071 3,139 3,058 3,145 2,878 2,928 2,926 2,613 2,473 2,182 1,713 1,597 1,658 1,584 1,676 2,016 1,537 1,572 1,473 1,581
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 improvements, Supplies and develops Technologies and solutions for Technologies and solutions for roll and workshop services, automation and information pulp production, po
Slide 7: Strong, global presence is a good platform for growth
Strong, global presence is a good platform for growth More than 12,000 professionals at a total of 156 locations in 33 countries EMEA 8,144 employees China ~120 87 1,707 employees service centers sales offices North America 1,200 employees 36 16 production units R&D centers Asia-Pacific 733 employee
Slide 8: Process technology, services and automation
Process technology, services and automation Valmet’s unique offering differentiates the company from its competitors 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 ma
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 Corporate Sustainable Most material citizenship supply chain UN Sustainable • In Dow Jones • We ensure that our people • We continue to develop sustainable Development Goals Sustainability Index for the know and understand Valmet’
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 policy • Dividend payout a
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, offering stability, growth 2 and profitability Capital business, with flexible cost structure, offering growth and 3 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% ~1% 1.4 ~1% ~1% ~3% ~2-3% 0.3 ~-1% p.a. 2.0 p.a. p.a. 2.0 0.7 1.0 p.a. bn p.a. p.a. p.a. bn bn bn bn bn bn • Increasing pulp, pa
Slide 15: Stable business, with EUR 1.5 billion of net sales, offering stability, growth and profitability
1 2 3 4 5 Stable business, with EUR 1.5 billion of net sales, offering stability, growth and profitability Organic Stable business orders received (EUR million) growth Growth Key potential in stable business ~11% ~4% CAGR • Valmet Way to Serve • Industrial Internet CAGR Services 1,609 1,605 1,519 •
Slide 16: Capital business, with flexible cost structure, offering growth and profitability potential
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 growth 2,015 • Cost structure development and increasing flexibility 1,657 1,713 1,537 1
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 May 22, 2018 © Valmet | Berenberg C
Slide 18: Technology leader with unique offering
1 2 3 4 5 Technology leader with unique offering Cost-competitive, focused Complete pulp mill Comprehensive offering solutions in Paper delivery capability for energy customers • 15 OptiConcept M machines sold • State-of-the-art technology for • Solutions for demanding fuels • 10 Advantage NTT machi
Slide 19: Financials
Financials Valmet <>
Slide 20: Key figures
Key figures EUR million Q1/2018 Q1/2017 Change 2017 Orders received 890 1,005 -11% 3,272 Order backlog1 2,583 2,704 -4% 2,458 Net sales 732 645 13% 3,058 Comparable EBITA 22 34 -36% 218 % of net sales 3.0% 5.3% 7.1% EBITA 19 37 -49% 202 Operating profit (EBIT) 12 29 -60% 170 % of net sales 1.6% 4.5%
Slide 21: Comparable EBITA margin development
Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) 967 Target 8–10% 854 7.8% 804 7.5% 777 779 785 8.4% 734 732 715 732 6.1% 685 7.3% 652 7.1% 7.2% 645 588 590 6.9% 5.3% 561 6.4% 6.5% 519 4.8% Capital business 5.5% 523 3.7% 3.5% 445 375 Stable business 408 427 334
Slide 22: Guidance and short-term market outlook unchanged
Guidance and short-term market outlook unchanged Guidance for 2018 (as announced on March 21, 2018) Valmet estimates that net sales in 2018 will remain at the same level as in 2017 (EUR 3,058 million) and Guidance Comparable EBITA in 2018 will increase in comparison with 2017 (EUR 218 million). Shor
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, offering stability, growth 2 and profitability Capital business, with flexible cost structure, offering growth and 3 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: Appendix
Appendix 1 Financials 2 Focus areas and actions 3 Area development 4 Shareholders, share price development and sustainability 5 Strategy and offering 6 Management 26 May 22, 2018 © Valmet | Berenberg Conference USA 2018
Slide 27: FORWARD
FORWARD