Valmet Corp · OMXHEX:VALMT
Valmet — H1 2021 Earnings Presentation
28 slides from Valmet's earnings presentation, Jul 22, 2021
Slide 1: Orders received increased to EUR 1.2 billion and Comparable EBITA to EUR 95 million
Orders received increased to EUR 1.2 billion and Comparable EBITA to EUR 95 million in the second quarter Half Year Financial Review, January–June 2021 July 22, 2021 Pasi Laine, President and CEO Kari Saarinen, CFO
Slide 2: Important notice
Important notice The following applies to this presentation, the oral presentation of the information in this presentation by Valmet Oyj (“Valmet” or the “Company”) or any person on behalf of Valmet, and any question-and-answer session that follows the oral presentation (collectively, the “Informati
Slide 3: Agenda
Agenda Half Year Financial Review, January–June 2021 1 Q2/2021 in brief 2 Development of the business lines 3 Valmet to supply a major pulp and board technology delivery to Klabin in Brazil 4 Financial development 5 Guidance and short-term market outlook 3 July 22, 2021 © Valmet | Half Year Financia
Slide 4: Q2/2021 in brief
Q2/2021 in brief Valmet <>
Slide 5: Q2/2021 in brief
Q2/2021 in brief Orders received increased to EUR 487 million in stable business1 Orders received increased to EUR 765 million in capital business2 Net sales remained at the previous year's level at EUR 943 million Order backlog amounted to EUR 4.0 billion Comparable EBITA increased to EUR 95 millio
Slide 6: Valmet in Q2/2021
Valmet in Q2/2021 Orders received by business line Orders received by area Orders received 8% 12% EUR 1,228 million Net sales 30% 36% EUR 943 million 23% Comparable EBITA 29% EUR 95 million Comparable EBITA margin 7% 10.1% 27% 28% Order backlog EUR 4,019 million Services North America Employees Auto
Slide 7: Orders received increased to EUR 1,228 million in Q2/2021
Orders received increased to EUR 1,228 million in Q2/2021 Orders received (EUR million) Orders received in Q1–Q2/2021 by area 1,800 4,500 Asia- Pacific North 1,600 4,000 America 7% 1,400 3,500 13% 1,200 3,000 China South 1,000 2,500 24% America 800 1,228 2,000 16% 600 1,083 1,187 1,500 1,101 1,312 1
Slide 8: Stable business orders received totaled EUR 1,827 million during the last four quarters
Stable business orders received totaled EUR 1,827 million during the last four quarters Orders received (EUR million) in stable business1 700 2,100 600 1,800 507 514 508 487 500 461 474 463 1,500 443 424 439 445 435 433 112 116 426 402 394 409 383 381 123 116 400 344 372 88 359 93 102 103 104 369 12
Slide 9: Order backlog EUR 4,019 million at the end of Q2/2021
Order backlog EUR 4,019 million at the end of Q2/2021 Order backlog (EUR million) Structure of order backlog 4,500 4,000 4,019 ~25% 3,500 3,709 3,557 3,492 3,425 3,333 3,311 3,257 3,000 3,216 3,001 2,791 2,829 2,500 2,704 2,714 2,720 2,583 2,621 2,458 2,000 2,406 2,312 2,208 2,207 2,192 2,283 ~75% 2
Slide 10: Development of the business lines
Development of the business lines
Slide 11: Services: Orders received increased to EUR 372 million in Q2/2021
Services: Orders received increased to EUR 372 million in Q2/2021 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2020: Q1–Q2/2021: Q1–Q2/2020 : Q1–Q2/2021 : EUR 726 million EUR 756 million EUR 617 million EUR 628 million 400 371 395398 385 372 1,600 450 1,800 355 358 400 402 346 344 342
Slide 12: Automation: Orders received increased to EUR 116 million in Q2/2021
Automation1: Orders received increased to EUR 116 million in Q2/2021 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2020: Q1–Q2/2021: Q1–Q2/2020: Q1–Q2/2021: EUR 214 million EUR 239 million EUR 174 million EUR 161 million 160 480 160 137 141 480 140 140 124 420 120123116 420 115 24 1091
Slide 13: Pulp and Energy: Orders received increased to EUR 326 million in Q2/2021
Pulp and Energy: Orders received increased to EUR 326 million in Q2/2021 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2020: Q1–Q2/2021: Q1–Q2/2020: Q1–Q2/2021: EUR 591 million EUR 787 million EUR 506 million EUR 469 million 700 1,400 700 1,400 622 600 560 1,200 600 1,200 500 451 461 1
Slide 14: Paper: Orders received increased to EUR 440 million in Q2/2021
Paper: Orders received increased to EUR 440 million in Q2/2021 Orders received (EUR million) Net sales (EUR million) Q1–Q2/2020: Q1–Q2/2021: Q1–Q2/2020: Q1–Q2/2021: EUR 522 million EUR 803 million EUR 472 million EUR 574 million 700 1,400 700 1,400 600 1,200 600 1,200 500 440 1,000 500 1,000 419 400
Slide 15: Valmet to supply a major pulp and board technology delivery to Klabin in Brazil
Valmet to supply a major pulp and board technology delivery to Klabin in Brazil
Slide 16: Valmet's second phase delivery to Klabin includes solutions from all business lines
Valmet’s second phase delivery to Klabin includes solutions from all business lines First phase order of kraftliner machine (PM27) and fiberline was announced in May 2019 Paper business line Pulp and Energy business line Paperboard making line (PM28) Fiberline including a new Continuous Cooking
Slide 17: Financial development
Financial development Valmet <>
Slide 18: Key figures
Key figures EUR million Q2/2021 Q2/2020 Change Q1–Q2/2021 Q1–Q2/2020 Change Orders received 1,228 826 49% 2,540 2,013 26% Order backlog1 4,019 3,492 15% 4,019 3,492 15% Net sales 943 919 3% 1,801 1,740 3% Comparable EBITA 95 76 24% 175 128 37% % of net sales 10.1% 8.3% 9.7% 7.4% EBITA 97 70 39% 186
Slide 19: 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% 26% 250 25% 250 25% 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 20: Comparable EBITA margin at target level
Comparable EBITA margin1 at target level Net sales and Comparable EBITA, rolling 12 months (EUR million and %)1 3,682 3,700 3,676 3,740 3,777 3,801 3,547 3,429 10.8% Target 10–12% 3,257 3,308 3,325 3,279 3,337 9.8% 10.4% 3,145 9.1% 3,019 3,044 2,995 3,058 9.1% 8.9% 2,851 2,928 2,926 2,919 2,846 2,87
Slide 21: Cash flow provided by operating activities and CAPEX
Cash flow provided by operating activities and CAPEX Cash flow provided by operating activities (EUR million) 2014: 2015: 2016: 2017: 2018: 2019: 2020: Q1–Q2/2021: EUR 236 million EUR 78 million EUR 246 million EUR 291 million EUR 284 million EUR 295 million EUR 532 million EUR 328 million 200 150 1
Slide 22: Net working capital at -18% of rolling 12 months orders received
Net working capital at -18% of rolling 12 months orders received Net working capital1 and orders received (EUR million) 1,500 30% 1,312 1,187 1,228 1,000 1,101 1,083 1,058 20% 1,023 1,005 1,026 1,009 890 940 940 793 803 857 796 865 835 826 781 725 788 743 727 500 692 700 10% 580 466 480 0 0% -235 -2
Slide 23: Net debt and gearing increased compared with Q2/2020
Net debt and gearing increased compared with Q2/2020 Net debt (EUR million) and gearing (%) Equity to assets ratio (%) 300 30% 50% 21% 45% 42% 42% 43% 18% 41% 41% 200 17% 20% 38% 38% 39% 37% 39% 13% 40% 36% 37% 37% 38% 38% 178 184 152 149 35% 100 6% 10% 6% 3% 30% 60 30 -1% 0 52 0% 25% -9 -100 -90 20
Slide 24: Capital employed and Comparable ROCE
Capital employed and Comparable ROCE Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes1 (%) 1,639 25% 25% 23% 23% 23% 1,541 22% 22% 1,619 22% 1,557 24% 1,327 20% 23% 1,314 1,239 1,240 1,214 1,231 1,237 1,239 1,256 1,184 1,194 1,167 1,195 18% 1,195 1,112 1,
Slide 25: Guidance and short-term market outlook
Guidance and short-term market outlook
Slide 26: Guidance and short-term market outlook
Guidance and short-term market outlook Guidance for 2021 (as announced on April 16, 2021) Guidance Valmet estimates that net sales in 2021 will increase in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will increase in comparison with 2020 (EUR 365 million). Short-term market
Slide 27: Interim Review January–September 2021
Interim Review January–September 2021 October 26, 2021 www.valmet.com/investors 27 July 22, 2021 © Valmet | Half Year Financial Review, January–June 2021
Slide 28: FORWARD
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