Valmet Corp · OMXHEX:VALMT
Valmet — Non-Deal Roadshow (January 2021)
27 slides from Valmet's roadshow presentation, January 2021
Slide 1: Valmet – unique offering with process technology, automation and services
Valmet – unique offering with process technology, automation and services Roadshow presentation January 2021
Slide 2: Agenda
Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financials 4 Conclusion 2 January 2021 © Valmet | Roadshow presentation
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: We have strong market shares, unique offering and over 220 years of history
We have strong market shares, unique offering and over 220 years of history Paper Pulp and Automation Services Energy Market position Market position Market position Market position #1 #1–3 #1–3 #1–2 Market share Market share Market share Market share ~40% 20-40% 10-20% ~17% Valmet’s road to becomin
Slide 5: Valmet's development since 2013
Valmet’s development since 2013 Comparable EBITA target 10–12% Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%) 4.5 4.5 400 10% 4.0 4.0 9% 350 3.5 3.5 8% 300 7% 3.0 3.0 250 6% 2.5 2.5 200 5% 2.0 2.0 4% 150 1.5 1.5 3% 100 1.0 1.0 2% 0.5
Slide 6: Key figures
Key figures Last twelve months ending Q3/20 Net sales by business line Net sales by area Orders received EUR 3,722 million 12% 19% Net sales 27% EUR 3,676 million 36% 11% Comparable EBITA EUR 336 million 16% Comparable EBITA margin 9.1% 28% 9% 42% Order backlog EUR 3,311 million (Sep 30, 2020) Servi
Slide 7: Strong, global presence is a good platform for growth
Strong, global presence is a good platform for growth EMEA ~100 96 8,684 employees service centers sales offices China 1,788 employees North America 1,522 employees 39 16 production units R&D centers Asia-Pacific 887 employees 8 South America Performance Centers 553 employees Personnel as at Sep 30,
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 January 2021 © 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 71 million ~1,300 research and R&D spending protected development in 2019 inventions
Slide 10: Acknowledged leader in sustainability
Acknowledged leader in sustainability Sustainability360° approach Most material UN Sustainable • In Dow Jones Sustainability Index Development Goals for the seventh consecutive year for Valmet • AAA rating in the MSCI ESG Ratings assessment in 2020 • Rating A- in CDP’s climate program 360o ranking i
Slide 11: Valmet strengthened its business by acquiring PMP Group
Valmet strengthened its business by acquiring PMP Group Focus on small and medium-sized tissue machines and board and paper machine rebuilds Key information about the acquisition • PMP Group supplies process technologies and services for tissue, Net sales in 2019 EUR ~70 million board and paper mach
Slide 12: 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: 10–12% ROCE • Comparable return on capital employed (ROCE) before taxes1: >20% Dividend policy • Dividend payou
Slide 13: Investment highlights
Investment highlights Valmet <>
Slide 14: Investment highlights
Investment highlights 1 Strong position in the growing market of converting renewables Widest offering combining process technology, services and automation in a 2 unique way 3 Large stable business offering growth and profitability 4 Strong capital business with high market share and flexible cost
Slide 15: Strong position in the growing market of converting renewables
1 2 3 4 5 Strong position in the growing market of converting renewables Paper Board Tissue Pulp Energy Automation Services #1 0.3 ~-1% #1 1.0 ~2-3% #1 0.7 ~3% #1-2 1.4 ~1% #1-3 2.0 ~1% #1-3 2.0 ~1% #1-2 8.0 ~1-2% EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. EUR bn p.a. •
Slide 16: Widest offering combining process technology, services and automation in a unique way
1 2 3 4 5 Widest offering combining process technology, services and automation in a unique way Paper Pulp Energy • Board, paper and tissue production lines • Wood and pulp handling • Heat and power generation • Rebuilds • Fiber processing • Emission control • Stand-alone products • Recovery • Biofu
Slide 17: Large stable business offering growth and profitability
1 2 3 4 5 Large stable business offering growth and profitability Orders received (EUR million) Services • 17% market share offers room for growth • Wide offering to support customers’ all service needs 1,875 • Opportunities to win new customers and increase share 1,816 1,701 of wallet with existing
Slide 18: Strong capital business with high market share and flexible cost structure
1 2 3 4 5 Strong capital business with high market share and flexible cost structure Paper business line Market share • High market share in all businesses Orders received (EUR million) Net sales (EUR million) Board and paper Tissue Pulp Energy ~40% ~35% ~40% ~20% 1,035 1,077 1,043 1,017 937 913 981
Slide 19: Systematically building the future
1 2 3 4 5 Systematically building the future • Valmet’s way to serve: a unified and unique way to serve Technology Customer • Add value to customers through Industrial Internet solutions • Ensure strong market position in capital business • Develop new products and technologies • Improve product cos
Slide 20: Financials
Financials Valmet <>
Slide 21: Key figures
Key figures EUR million Q3/2020 Q3/2019 Change Q1–Q3/2020 Q1–Q3/2019 Change Orders received 700 1,058 -34% 2,712 2,976 -9% Order backlog1 3,311 3,425 -3% 3,311 3,425 -3% Net sales 832 857 -3% 2,573 2,444 5% Comparable EBITA 91 81 11% 218 198 10% % of net sales 10.9% 9.5% 8.5% 8.1% EBITA 87 83 5% 208
Slide 22: Comparable EBITA margin development
Comparable EBITA margin1 development Net sales and Comparable EBITA, rolling 12 months (EUR million and %)1 Target 10-12% 3,682 3,700 3,676 3,429 3,547 3,257 3,308 3,325 3,279 3,337 9.1% 8.9% 9.1% 3,145 8.7% 8.8% 3,019 3,044 2,995 3,058 8.6% 8.7% 2,851 2,928 2,926 2,919 2,846 2,876 7.7% 2,707 7.1% 2
Slide 23: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2020 (as announced on October 13, 2020) Guidance Valmet estimates that net sales in 2020 will remain at the previous year’s level in comparison with 2019 (EUR 3,547 million) and Comparable EBITA in 2020 will increase in comparison with 2019 (EUR 31
Slide 24: Conclusion
Conclusion Valmet <>
Slide 25: Conclusion
Conclusion 1 Strong position in the growing market of converting renewables Widest offering combining process technology, services and automation in a 2 unique way 3 Large stable business offering growth and profitability 4 Strong capital business with high market share and flexible cost structure 5
Slide 26: 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 27: FORWARD
FORWARD