valmet general presentation english
TRANSCRIPT
ValmetLeading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries
Contents
Valmet today
Offering
Financial performance
1
2
3
4 Strategy and Must-Wins
5 Summary
Valmet todayStrong global company with 12,000 employees
2016 © Valmet4
Over 200 years of industrial history
1942Rauma-Raahe
1951Valmet
1968-1996Several M&As i.e.1986 KMW1987 Wärtsilä paper finishing machinery1992 Tampella Papertech
1999Metso createdthrough merger ofValmet and Rauma
Key acquisitions2000 Beloit Technology2006 Kvaerner Pulping
Kvaerner Power 2009 Tamfelt
End of 2013Demerger toValmet and Metso
1797 Tamfelt1841 Götaverken1856 Tampella1858 Beloit1860 KMW1868 Sunds
Defibrator
2015Metso ProcessAutomation Systems to Valmet
Key figures
2016 © Valmet5
Net sales by area Net sales by business lineOrders receivedEUR 2,878 million
Net sales EUR 2,928 million
EBITA1
EUR 182 million
EBITA1 margin 6.2%
Employees12,306
39%
8%31%
23%
ServicesAutomationPulp and EnergyPaper
21%
11%
45%
10%
13%
North AmericaSouth AmericaEMEAChinaAsia-Pacific
1) Before non-recurring items (NRI)Stable business = Services and Automation business linesCapital business = Pulp and Energy, and Paper business lines
20166 © Valmet
Strong, global presence - a good platform for growth
North America
1,367
• 17 service centers• 7 production units• 8 sales offices
EMEA
7,747
• 16 R&D centers• 63 service centers• 21 production units• 54 sales offices
South America
531
• 3 service centers• 2 production units• 5 sales offices
Asia-Pacific
706
• 10 service centers• 16 sales offices
100 service centers, 86 sales offices, 34 production units, 16 R&D centers
China
1,955
• 8 service centers• 6 production units• 3 sales offices
Calculated number of personnel on December 31, 2015
12,000 professionals serving customers globally
2016 © Valmet7
44 %
13 %
14 %
25 %
4 %
Systematic development with global training portfolio:
Champions in Services
Networking in Procurement
Leading through Lean
Agility through Sales
Excellence in Project Management
Fast Forward
Forward Strategy
Personnel by business line:
Other
Services
Pulp and EnergyPaper
Automation
One of the world’s sustainability leaders
2016 © Valmet8
• Valmet’s values, Code of Conduct and selected globally acknowledged principles guide our operations
• Our Sustainability Agenda has concrete targets and actions• We are included in Dow Jones World Sustainability Index already
for the second consecutive year
Sustainablesupply chain
Health, safety and environment
People and performance
Sustainablesolutions
Corporate citizenship
Sustainability Agenda focus areas
Significant, customer focused reasearch and development work
2016 © Valmet9
Focus areas• Advanced and competitive technologies and services • Raw material, water and energy efficiency• Promotion of renewable materials
16Researchand developmentcenters
EUR 59millioninvestmentin R&D year2015
1,500Protectedinventions
Four business lines and five areas
2016 © Valmet10
North America
South America
EMEA
China
Asia-Pacific
Services business line
Pulp and Energybusiness line
Paper business line
Automationbusiness line
Finance Strategy and Operational Development
Marketing, Communications and SustainabilityHuman Resources
Business lines
Executive Team
11
Pasi LainePresident and CEO
Kari SaarinenCFO
Julia MachareySVP, Human Resources
Anu Salonsaari-PostiSVP, Marketing, Communications and Sustainability
Jukka TiitinenBusiness Line President, Services
Bertel KarlstedtBusiness Line President, Pulp and Energy
Jari VähäpesolaBusiness Line President, Paper
William BohnArea President, North America
Celso TaclaArea President, South America
Vesa SimolaArea President, EMEA
Aki NiemiArea President, China
Hannu T. PietiläArea President, Asia-Pacific
2016 © Valmet
Sakari RuotsalainenBusiness Line President, Automation
Areas
Juha LappalainenSVP, Strategy and Operational Development
OfferingUnique offering to global customer base
Global customer base
2016 © Valmet13
Pulp Paper Energy Process
Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners.
2016
Process technology, services and automation Valmet’s unique offering differentiates the company from its competitors
© Valmet14
Customer
Process-technology
Services Automation
Valmet has the widest offering and leading market position in all markets
2016 © Valmet15
Services #1-2 Automation #1-3
Pulp #1-2 Energy #1-3 Board #1 Tissue #1 Paper #1
2016
Our offering by business line
© Valmet16
Paper• Recycled fiber lines• Tailor-made board and paper machines• Modularized board and paper machines• Tissue production lines• Modernizations and grade conversions• Standalone products
Focus in customer benefits
Customer
Pulp and Energy• Complete pulp mills• Sections and solutions for pulp production• Multifuel boilers• Biomass and waste gasification• Emission control systems• Biotechnology solutions e.g. for
producing bio fuels
Automation• Distributed control systems• Quality control systems• Analyzers and measurements• Performance solutions• Process simulators• Safety solutions• Industrial Internet solutions
Services• Spare parts and consumables• Paper machine clothing and
filter fabrics• Rolls and workshop services• Mill and plant improvements• Maintenance outsourcing• Services energy and
environmental solutions
Financial performanceProfitability improved in 2015
Financial targetsRevised in June, 2016
2016 © Valmet18
1) ROCE (pre-tax) = ( profit before taxes + interests and other financial expenses ) / ( balance sheet total - non-interest-bearing liabilities )
Dividend policy
Profitability
Growth
ROCE
• Net sales for stable business to grow two times the market growth
• Net sales for capital business to exceed market growth
• Comparable EBITA: 8–10%
• Comparable return on capital employed (pre-tax), ROCE1: 15–20%
• Dividend payout at least 50% of net profit
Summary of the year 2015
2016 © Valmet19
1) At the end of the period2) Before non-recurring items
EUR million 2015 2014 Change
Orders received 2 878 3 071 -6 %
Order backlog1 2 074 1 998 4 %
Net sales 2 928 2 473 18 %
EBITA2 182 106 73 %
% of the net sales 6.2 % 4.3 %
Earnings per share, EUR 0.51 0.31 67 %
Dividend per share 0.35 0.25 40 %
Cash flow provided by operating activities 78 236 -67 %
Gearing at the end of the period 21 % -21 %
Net debt 178 -166
2,1%
4,3%
6,2%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
2013 2014 2015
EBITA (bef. NRI) margin
Valmet’s development
2016 © Valmet20
Orders received(EUR million)1
1) 2013 figures on carve-out basis2) Before non-recurring items
Net sales(EUR million)1
EBITA1,2 EBITA margin1,2
Target 6–9%
1 035 1 0551 341
1 147
2 016 1 5372 182
3 0712 878
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2013 2014 2015Capital businessStable business
1 032 9891 357
1 581 1 484
1 572
2 6132 473
2 928
0
500
1 000
1 500
2 000
2 500
3 000
3 500
2013 2014 2015Capital businessStable business
54
106
182
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015
EBITA (bef. NRI)
Strategy and Must-WinsGood results in Must-Win focus areas
Megatrends – impacting our business environment
2016 © Valmet22
Climate change, environmental awareness and resource scarcity drive the need to improve resource efficiency and lower emissions
Resource efficient and clean world
Digitalization and new technologies
Aware, urban and global customer
Digitalization, automatization and new high impact technologies drive efficiency and new business models
Urbanization, increasing living standards, changing demographics, and globalization drive changes in consumer behavior
Valmet’s Way Forward
23
Our Must-Wins Customer excellence Leader in technology
and innovation Excellence in processes Winning team
Our VisionTo become the global champion in serving our customers
Our StrategyValmet develops and supplies competitive process technology, services and automation to the pulp, paper and energy industries.We are committed to moving our customers’ performance forward with our unique offering.
Our MissionConverting renewable resources into sustainable results
Our Values Customers We move our customers’ performance forward
RenewalWe promote new ideasto create the future
ExcellenceWe improve every dayto deliver results
PeopleWe work togetherto make a difference
• Resource efficient and clean world• Digitalization and new technologies• Aware, urban and global consumer
Megatrends
2016 © Valmet
Key Must-Win objectives to achieve our strategic goals
2016 © Valmet24
• Nurture shared values• Drive high performance• Continue globalization of our capabilities
• Strengthen our presence close to customers and growth markets• Strengthen Key Account Management to serve customers with our full offering• Provide customer benefits by combining process technology, automation and services• Develop Valmet service concept, remote services and drive growth through service agreements
• Improve product cost competitiveness to increase gross profit and reduce customer investment and operational costs
• Develop new products and technologies to create new revenue
• Sales and project management process to improve product margin• Implement Lean to reduce quality costs and lead times• Save in procurement and ensure sustainable supply chain• Improve health and safety• Continue to improve cost competitiveness
Must-Win implementation objectives for 2016Must-Wins
Leader in technology and innovation
Excellencein processes
Customer excellence
Winningteam
We provide our customers with the benefits of Industrial Internet already today
2016 © Valmet25
Customer’s process
Online connections
Performance agreements with remote connections
Co-creation of advanced analytics with customers
Valmet-supplied lines with Valmet DCS
440350 Condition Monitoring (CM) references with over 70,000 I/O tags
35070,000 80
Advanced process control installations
320740 Ongoing
Valmet’s remote center
Valmet’s competence
network
Results: Customer Excellence
Our new technologies have been successful in the markets
2016 © Valmet26
Results: Leader in technology and innovation
Advantage NTT tissue machineOptiConcept M board and paper machine
11 soldOptiConcept M
machines
6 soldAdvantage NTT
machines
Valmet IQ quality management solutionHigh Power RECOX recovery boiler
First delivery for Metsä Fibre’s Äänekoski
bioproductmill project
Renewed product family launched autumn 2015
Occupational safety, quality and procurement savings has developed well
2016 © Valmet27
• Occupational safety has improved – year 2015 was safest ever• Savings in procurement are ahead of targets • Quality costs have decreased according to plan
10,18,3
6,4 5,53,3
2011 2012 2013 2014 2015
Lost time incident frequency (LTIF) Quality costs
Results: Excellence in processes
Procurement savings
2014 2015 2016
Savings target Actual savings
2012 2013 2014 2015 2016target
EUR million % of net sales
Our personnel’s engagement has developed positively and the new training portfolio supports our strategic targets
2016 © Valmet28
• 81% of employees responded to the engagement survey in 2015 • Personnel engagement increased by 9 percentage points• We launched a global training portfolio with 6 new training programs
Participation in personnel engagement survey
56%65%
2014 2015
Personnel engagement index
Results: Winning team
68 %81 %
2014 2015
Summary
Valmet - Summary
A leading process technology, automation and services provider for pulp, paper, energy industries
– Unique and market’s widest offering including process technology, automation and services
12,000 professionals serving global customer base
One of the world’s 300 sustainability leaders
Net sales EUR 2.9 billion
– Almost half of the sales from stable Services and Automation businesses
– Increasing global demand of tissue, board, pulp and energy creates long-term growth possibilities
Vision to become the global champion in serving our customers
2016 © Valmet30
