Valmet Corp · OMXHEX:VALMT
Valmet — H1 2020 Earnings Presentation
28 slides from Valmet's earnings presentation, Jul 23, 2020
Slide 1: Half Year Financial Review, January–June 2020
Orders received decreased to EUR 826 million and Comparable EBITA increased to EUR 76 million in the second quarter Half Year Financial Review, January–June 2020 July 23, 2020 Pasi Laine, President and CEO Kari Saarinen, CFO
Slide 2: Agenda
Agenda Half Year Financial Review, January–June 2020 1 Q2/2020 in brief 2 Development of the business lines 3 Share acquisition in Neles 4 Financial development 5 Guidance and short-term market outlook 2 July 23, 2020 © Valmet | Half Year Financial Review, January–June 2020
Slide 3: Q2/2020 in brief
Q2/2020 in brief Valmet <>
Slide 4: Q2/2020 in brief
Q2/2020 in brief Orders received decreased to EUR 426 million in stable business1 Orders received decreased to EUR 416 million in capital business2 Net sales remained at the previous year’s level at EUR 919 million Order backlog amounted to EUR 3.5 billion Comparable EBITA increased to EUR 76 millio
Slide 5: Valmet in Q2/2020
Valmet in Q2/2020 Orders received by business line Orders received by area Orders received 7% EUR 826 million 14% 24% Net sales 7% EUR 919 million 40% 26% Comparable EBITA EUR 76 million Comparable EBITA margin 8.3% 26% 10% 47% Order backlog EUR 3,492 million Services North America Employees Automat
Slide 6: Orders received decreased to EUR 826 million in Q2/2020
Orders received decreased to EUR 826 million in Q2/2020 Orders received (EUR million) Orders received in Q1–Q2/2020 by area 1,800 4,500 Asia- North 1,600 4,000 Pacific America 10% 1,400 3,500 13% 1,200 3,000 1,000 2,500 South China America 800 2,000 23% 16% 600 1,101 1,083 1,058 1,187 1,500 1,005 1,
Slide 7: Stable business orders received totaled EUR 1,880 million during the last four quarters
Stable business orders received totaled EUR 1,880 million during the last four quarters Orders received (EUR million) in stable business1 700 2,100 600 1,800 507 514 500 461 474 1,500 443 424 439 445 435 433 112 116 426 402 394 409 383 381 400 344 372 88 359 93 102 103 104 1,200 330 342 88 103 109 9
Slide 8: Order backlog at EUR 3,492 million at the end of Q2/2020
Order backlog at EUR 3,492 million at the end of Q2/2020 Order backlog (EUR million) Structure of order backlog 4,000 3,500 3,557 3,492 ~30% 3,425 3,333 3,000 3,216 3,001 2,791 2,829 2,500 2,704 2,714 2,720 2,583 2,621 2,406 2,458 2,312 2,283 2,000 2,208 2,117 2,074 2,207 2,106 2,192 ~70% 1,972 1,99
Slide 9: Development of the business lines
Development of the business lines
Slide 10: Services: Orders received and net sales decreased in Q2/2020
Services: Orders received and net sales decreased in Q2/2020 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2019: Q1–Q2/2020: Q1–Q2/2019: Q1–Q2/2020: EUR 729 million EUR 726 million EUR 637 million EUR 617 million 400 371 395398 1,600 400 366 400 1,600 355 358 361 346 344 335 340 336 35
Slide 11: Automation: Orders received decreased and net sales remained at the previous year's level
Automation1: Orders received decreased and net sales remained at the previous year’s level in Q2/2020 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2019: Q1–Q2/2020: Q1–Q2/2019: Q1–Q2/2020: EUR 206 million EUR 214 million EUR 168 million EUR 174 million 140 480 140 124 137 420 109 112
Slide 12: Pulp and Energy: Orders received remained at previous year's level, net sales increased
Pulp and Energy: Orders received remained at the previous year’s level and net sales increased in Q2/2020 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2019: Q1–Q2/2020: Q1–Q2/2019 : Q1–Q2/2020: EUR 411 million EUR 591 million EUR 372 million EUR 506 million 700 1,400 700 1,400 622 600
Slide 13: Paper: Orders received decreased and net sales remained at previous year's level
Paper: Orders received decreased and net sales remained at the previous year’s level in Q2/2020 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2019: Q1–Q2/2020: Q1–Q2/2019: Q1–Q2/2020: EUR 601 million EUR 522 million EUR 432 million EUR 472 million 450 419 1,200 450 1,200 400 1,050 400
Slide 14: Valmet's share acquisition in Neles
Valmet’s share acquisition in Neles
Slide 15: Valmet's share acquisition in Neles
Valmet’s share acquisition in Neles Valmet’s acquisition of 14.9% ownership in Neles1 Valmet agreed to acquire approximately 22.4 million shares in Neles Corporation from Solidium Oy, representing 14.88% of all Neles’ shares and votes Neles is a globally leading diversified valve, valve automati
Slide 16: Financial development
Financial development Valmet <>
Slide 17: Key figures
Key figures EUR million Q2/2020 Q2/2019 Change Q1–Q2/2020 Q1–Q2/2019 Change Orders received 826 1,083 -24% 2,013 1,918 5% Order backlog1 3,492 3,216 9% 3,492 3,216 9% Net sales 919 901 2% 1,740 1,587 10% Comparable EBITA 76 69 10% 128 117 10% % of net sales 8.3% 7.7% 7.4% 7.3% EBITA 70 64 9% 121 113
Slide 18: Gross profit and SG&A development
Gross profit and SG&A development Gross profit (EUR million and % of net sales) SG&A (EUR million and % of net sales) 300 30% 300 30% 250 25% 250 25% 23% 200 20% 200 20% 16% 150 15% 150 15% 100 10% 100 10% 50 5% 50 5% 0 0% 0 0% Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016
Slide 19: Comparable EBITA margin development
Comparable EBITA margin1 development Net sales and Comparable EBITA, rolling 12 months (EUR million and %)1 3,682 3,700 Target 10-12% 3,547 3,429 3,257 3,308 3,325 3,279 3,337 9.1% 8.9% 3,058 3,145 8.7% 8.8% 3,019 3,044 2,995 8.6% 8.7% 2,851 2,928 2,926 2,919 2,846 2,876 7.7% 2,707 2,500 2,473 2,515
Slide 20: Cash flow provided by operating activities
Cash flow provided by operating activities Cash flow provided by operating activities (EUR million) 2014: 2015: 2016: 2017: 2018: 2019: Q1–Q2/2020: EUR 236 million EUR 78 million EUR 246 million EUR 291 million EUR 284 million EUR 295 million EUR 324 million 200 150 182 173 143 151 100 117 122 119 1
Slide 21: Net working capital at -16% of rolling 12 months orders received
Net working capital at -16% of rolling 12 months orders received Net working capital1 and orders received (EUR million) 1,500 30% 1,000 1,101 1,187 20% 1,023 1,005 1,026 1,083 1,058 1,009 890 865 940 781 793 803 788 857 796 835 826 725 692 743 727 500 580 10% 466 480 0 0% -235 -249 -345 -353 -317 -2
Slide 22: Net debt and gearing decreased compared with Q2/2019
Net debt and gearing decreased compared with Q2/2019 Net debt (EUR million) and gearing (%) Equity to assets ratio (%) 300 30% 50% 21% 45% 43% 43% 42% 42% 41% 41% 41% 200 17% 20% 39% 40% 36% 37% 37% 38% 38% 38% 178 152 35% 100 6% 6% 10% 30% 0% 60 0 52 0% 25% -4 -100 -102 -98 -90 20% -100 -10% -166 -
Slide 23: Capital employed and Comparable ROCE
Capital employed and Comparable ROCE Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes1 (%) 1,314 1,327 1,239 1,240 1,214 1,231 1,237 1,239 1,256 1,184 1,194 1,167 1,195 1,195 23% 23% 1,150 22% 23% 1,112 1,138 1,141 1,137 1,079 24% 1,033 1,049 20% 23% 985
Slide 24: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 25: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2020 Guidance Valmet announced on April 16, 2020 that the company withdraws its guidance for 2020 due to increased uncertainty related to the COVID-19 pandemic. Short-term market outlook Q3/2019 Q4/2019 Q1/2020 Q2/2020 Services Good Good Satisfacto
Slide 26: Interim Review January–September 2020
Interim Review January–September 2020 October 27, 2020 www.valmet.com/investors 26 July 23, 2020 © Valmet | Half Year Financial Review, January–June 2020
Slide 27: Important notice
Important notice IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Valmet (the “Company”) or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the “Information”). In
Slide 28: FORWARD
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