Valmet Corp · OMXHEX:VALMT
Valmet — Investor Day (November 2013)
24 slides from Valmet's investor day presentation, Nov 26, 2013
Slide 1: Valmet's path forward
Valmet’s path forward Pasi Laine, President and CEO November 26, 2013
Slide 2: Agenda
Agenda Capital Markets Day 2013 1 Valmet in brief 2 Investment highlights 3 Valmet Must-Wins 4 Market outlook and profitability 5 Summary
Slide 3: Valmet in brief
Valmet in brief Valmet <>
Slide 4: Valmet's road to becoming a global market leader
Valmet’s road to becoming a global market leader 1797 Tamfelt 1951 1968-1996 End of 2013 1856 Tampella Valmet Several M&As i.e. Demerger to create 1858 Beloit 1986 KMW Valmet and Metso 1987 Wärtsilä paper finishing machinery 1860 KMW 1992 Tampella Papertech 1868 Sunds Defibrator 1942 1951-1995 1999
Slide 5: Valmet's historical performance
Valmet’s historical performance Net sales and EBITA before NRI (EUR million)1 2,925 3,014 2,735 2,703 2,453 EBITA 2,092 2,061 7.6% target 6-9% 7.1% 1,946 6.3% 6.5% 6.4% 5.5% 5.6% 5.3 % Services 4.1% Capital 834 847 877 974 1,011 809 636 715 EBITA-% 2006 2007 2008 2009 2010 2011 2012 Q1-Q3/13 EBITA b
Slide 6: Capitalizing on the growing pulp, energy, tissue, and packaging board needs globally
Capitalizing on the growing pulp, energy, tissue, and packaging board needs globally Global market leader with Sales1 #1-2 market positions in all markets served Stable, growing and profitable EUR 1 billion services business High barrier to entry capital business with good long-term 19% 17% growth p
Slide 7: Our three business lines serve the same customer base
Our three business lines serve the same customer base Services Pulp and Energy Paper Net sales1 1.0 bn, 34% Net sales1 1.2 bn, 39% Net sales1 0.8 bn, 27% • Mill and plant improvements Technologies and solutions for Technologies and solutions for • Roll and workshop services • Pulp production • Board
Slide 8: Strong global presence – good platform for growth
Strong global presence – good platform for growth North America 1,112 EMEA China • Large installed base employees • Large installed base to • Capital project opportunities to be serviced be serviced in board and tissue • Growth opportunity in • Growth opportunity in • Good services market increased
Slide 9: Serving global customer base
Serving global customer base Services Pulp and Energy Paper Key customers Key customers Key customers Yunnan Yun-Jing Forestry & Pulp Mill Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. 9 November 26, 2013 Pasi Laine
Slide 10: Valmet's way forward
Valmet’s way forward Mission Strategy Must-wins Vision Converting renewable Competitive > Customer To become the global resources into technologies and excellence champion in serving sustainable results services to the pulp, > Leader in our customers paper and energy technology industries. and innov
Slide 11: Valmet's Must-Win initiatives and objectives
Valmet’s Must-Win initiatives and objectives Must-Wins Primary Must-Win objectives 1. Customer • Strengthen our presence close to customers and growth markets excellence • Strengthen Key Account Management to enhance growth at the customer • Drive service growth through long-term agreements and expa
Slide 12: Experienced management team
Experienced management team Corporate Pasi Laine Markku Honkasalo Kari Saarinen Julia Macharey Anu Salonsaari-Posti President and CEO Chief Financial Officer Head of Strategy and Head of Human Resources Head of Marketing & Operational Development Communications Business lines Jukka Tiitinen Jyrki Ho
Slide 13: Investment highlights
Investment highlights Valmet <>
Slide 14: Investment highlight summary
Investment highlight summary Established market leader with #1-2 market positions 1 in all markets served Stable, growing, and profitable services business 2 with over EUR 1 billion sales provides good visibility and resilience Long-term growth potential in capital business 3 from increase in pulp,
Slide 15: Established market leader with #1-2 market positions in all markets served
1 Established market leader with #1-2 market positions in all markets served Services (>EUR 1 bn)1 Capital (~EUR 2 bn)1 Pulp Energy Paper Market position Machines Services #1-2 Pulping #1-2 Bioenergy generation #1-2 Board #1-2 Tissue #1 Paper #1-2 Large installed base • 3,800 pulp and paper mills •
Slide 16: EUR 1 billion of net sales from stable and growing services
2 EUR 1 billion of net sales from stable and growing services Strong trends driving services Comprehensive offering market expansion Customers outsource non-core operations Capacity increases in China, Spare and Mill and plant South America and Asia-Pacific wear parts improvements Customer cos
Slide 17: Pulp, energy, board, and tissue capital business on long-term growth trajectory
3 Pulp, energy, board, and tissue capital business on long-term growth trajectory Pulp and Energy Paper Energy1 Pulp Board Tissue Printing and writing papers and newsprint ~1% 2.0 ~1-2% 1.4 ~3% 1.0 ~3% 0.6 ~-1% 0.6 p.a. bn p.a. bn p.a. bn p.a. bn p.a. bn Demand drivers • Growth in energy • Growth in
Slide 18: Global diversified footprint with large exposure to growing emerging markets
4 Global diversified footprint with large exposure to growing emerging markets Emerging markets expansion1 Exposure to emerging markets2 Net sales (EUR million) 80% 1,153 1,234 1,077 70% Approximate share of sales generated in emerging markets2 FLSmidth Outotec 60% Wärtsilä Atlas Copco 50% 2010 2011
Slide 19: Strong focus on profitability improvement
5 Strong focus on profitability improvement We are addressing the current decline in the capital business Short- to mid-term profitability improvement through Cost-savings program EUR 100 million cost-reduction program with clearly defined steps that take profitability Valmet is re-shaping its ope
Slide 20: Market outlook and profitability
Market outlook and profitability
Slide 21: Valmet's policy on commenting on market outlook
Valmet’s policy on commenting on market outlook and the profitability of our business lines Services Pulp and Energy Paper Pulp Energy Board & paper Tissue Market outlook Satisfactory Satisfactory Weak Weak Satisfactory Profitability Satisfactory Weak Weak Valmet will comment on its market outlook a
Slide 22: Summary
Summary Valmet <>
Slide 23: Valmet - unique combination of technology, capital equipment and services globally
Valmet - unique combination of technology, capital equipment and services globally Global, diversified Services customer base • >EUR 1 bn business • >2,000 customer plants worldwide • ~70 service centers Growing end-markets Global Capital organization • Established market close to leader customers •
Slide 24: Forward
FORWARD