Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (March 2023)
15 slides from Valmet's investor day presentation, Mar 8, 2023
Slide 1: Flow Control: Diversified and resilient growth business
Flow Control: Diversified and resilient growth business Simo Sääskilahti Business Line President, Flow Control Valmet Capital Markets Day 2023
Slide 2: 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 3: Flow control is an attractive growth market
Flow control is an attractive growth market Large and growing market Barriers of entry enable solid profitability for leading Flow control market development1 Estimated CAGR players in critical valves USD 2022–2025 million 40,000 Valves and valve automation Industry characteristics 3% industry compe
Slide 4: Flow Control key figures
Flow Control key figures Orders received Orders received split 20221 (EUR million) (% of total) CAGR 7.4% 772 Mainly OPEX- Mainly OPEX- 12% 9% 681 driven driven 628 625 9% 28% 555 590 19% 10% 504 38% 7% By business By industry By area unit 66% 15% CAPEX- driven 32% 8% 47% 2016 2017 2018 2019 2020 20
Slide 5: High-quality product portfolio for valve and valve automation needs
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 • Electric actuators
Slide 6: Strong product brands
Strong product brands Stonel™ Neles™ Jamesbury™ Neles Easyflow™ Valve Valvcon™ Flowrox™ Premium Premium High-performance communication Comprehensive Valve and pump engineered performance flow control solutions for range of electronic solutions for mining flow control flow control solutions automated
Slide 7: Flow Control services covering the lifecycle of the plant
Flow Control services covering the lifecycle of the plant → Start-up → Operations & maintenance → Turnarounds → Modernization Project Performance Continuous Preventive Scheduled Trouble- Spare parts Replacement, support monitoring optimization maintenance service shooting inventory repair and (EPC)
Slide 8: Resilient business model with majority of revenue OPEX driven
Resilient business model with majority of revenue OPEX driven Orders received (EUR million) 700 MRO & Services, mainly OPEX-driven Projects, CAPEX-driven Valve Controls & Actuators, (66% of total orders received1) (15% of total orders received1) mainly OPEX-driven 600 (19% of total orders received1)
Slide 9: Strong global manufacturing, sales and service footprint
Strong global manufacturing, sales and service footprint Helsinki, Finland Technology center Lappeenranta, Finland Est. 1956 Technology center Current plant 2011 Est. 2017 / 2021 Fergus Falls, MN, USA Chungju, South Korea 8 Technology center Technology center Est. 1989 Saudi Arabia Est. 2000 technol
Slide 10: Diversified set of core industries
Diversified set of core industries Orders received (EUR million) Pulp & Paper Refining & Chemicals Renewable energy Metals & Mining Other industries (28% of total1) (47% of total1) & Gases (9% of total1) (9% of total1) 400 400 400 400 400 (7% of total1) 350 350 CAGR 350 350 350 14.5% 300 300 300 300
Slide 11: Growth possibilities in energy transition
Growth possibilities in energy transition Leading supplier for industrial gas applications Synergistic, company-wide with long history offering as a key competitive Many of the world’s leading industrial gas companies advantage CURRENT rely on Valmet’s 60+ year experience in industrial gas Compi
Slide 12: Solid industrial logic behind the merger
Solid industrial logic behind the merger Industrial logic Current status • Flow Control’s access to Paper, Board and Tissue Support Flow Control segments improved growth in Pulp, Paper and • Several cross-sales synergy cases won with Energy Paper, Pulp and Energy and Services business lines. 2022 ta
Slide 13: Strategic focus areas
Strategic focus areas Flow Control Key actions to grow Growth in four core industries Vaihda kuva Growth in standalone Valve Controls and Actuators business Multi-channel growth in services and MRO supported by digitalization Key actions to improve profitability High operating leverage busin
Slide 14: 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 15: FORWARD
FORWARD