valmet today...new products 14% of the order intake (pulp & energy combined) mega mill...
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Towards a sustainable future Valmet Customer Days 2018
Pasi LainePresident and CEO, Valmet
Valmet todayThe leading global technology and services partner
building on 220 years of industrial history
220 years of industrial history From cloth making to high-tech processes
04 October 20183
2015Metso Process
Automation Systems
to Valmet
1968–1996Several M&As:
1986 KMW
1987 Wärtsilä paper
finishing machinery
1992 Tampella
Papertech
1999Metso created through
merger of Valmet and
Rauma
Acquisitions2000 Beloit Technology
2006
Kvaerner Pulping
Kvaerner Power
2009 Tamfelt
End of 2013Demerger to
Valmet and
Metso
1797 Tampereen
Verkatehdas
1841 Götaverken
1856 Tampella
1858 Beloit
1860 KMW
1868 Sunds Defibrator
1942Rauma-
Raahe
1951Valmet
© Valmet | Customer Days 2018
Unique offering Market leadership Leader in sustainability
04 October 2018 © Valmet | Customer Days 20184
Market’s widest offering combining
process technologies, services and
automation
Research and development spend
EUR 64 million
Leading market position in all
markets
– Pulp
– Energy
– Board
– Tissue
– Paper
– Services
– Automation
Sustainability 360° agenda integrating
sustainability into our key processes
Five consecutive years in Dow Jones
Sustainability Index
Three consecutive years in Ethibel
Sustainability Index Europe
A- rating in CDP climate program 2017
Valmet today – the market leader with a unique offering
#1–2
#1–3
#1
#1
#1
#1–2
#1–3
Strong, global presence close to our customers
5
Over 120 service centers, 87 sales offices, 36 production units, 16 R&D centers, 7 Performance Centers
North America
1,223
• 17 service centers
• 7 production units
• 8 sales offices
• 1 Performance Center
Asia-Pacific
727
• 10 service centers
• 16 sales offices
EMEA
8,088
• 16 R&D centers
• 63 service centers
• 21 production units
• 54 sales offices
• 5 global Performance
Centers
China
1,696
• 8 service centers
• 6 production units
• 3 sales offices
• 1 Performance Center
South America
534
• 3 service centers
• 2 production units
• 5 sales offices
Employees on December 31, 2017
04 October 2018 © Valmet | Customer Days 2018
Innovation and R&D People and performance Processes
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MEUR 64 annual spend in R&D
New products >20% of the net sales 2017
Focus on
– Ensuring advanced and competitive
technologies and services
– Enhancing raw-material, water and
energy efficiency
– Promoting renewable materials
Continuous training of employees with
seven global training programs
Selected programs to support business-
specific competence
Learning Library for all employees
ManagerAcademy for managerial skills
development
Systematically building capabilities
globally close to our customers
Investing in new ERP and other new
business platforms
Further improving quality and project
management
Continued integration of sustainability
into key processes
Systematically building the foundation for the future
Strong customer trust on our process technologies has continued
Orders received amounting to MEUR 1,035 in 2017 (+44%)
New products 25% of the order intake
Good market activity has continued with several repeat orders
from the customers
– Containerboard and tissue are the fastest growing areas
– Demand for wider machines increasing
Industrial Internet solutions well received
Board, paper and tissue business
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Market drivers
Tissue
Rise in purchasing power
and living standards
Fast growth in emerging
markets
Demand for higher quality
Board
World trade, e-commerce and
emerging markets growth drive
packaging
Demand for light weight board
Shift from plastic packaging to
renewable materials
Conversions from paper to board
Paper
Increasing role of digital media
decreases demand for print
papers
Demand for technology driven
efficiency improvements
Demand for specialty papers
Examples of repeat orders
Six containerboard production lines with
full-scope automation package for Nine
Dragons in China
Six Advantage DCT 200TS tissue making
lines and one major rebuild, in four
countries within nine years for Hayat
Kimia
Several key technology deliveries for our customers
Pulp business
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Market drivers
Growth in board and tissue consumption
Need for virgin wood pulp. Decreasing
availability of recycled paper and limitations to
recycling rates
Increased size of pulp lines and mills
New applications for bio based products
Increasing environmental awareness and
stricter regulations
No mega mill investments for the past three years
Small and medium sized investments have continued their stable
development
New products 14% of the order intake (pulp & energy combined)
Mega mill investments are picking up in the coming years
Valmet’s technologies well-received in the active dissolving
pulp market
Recent customer highlights
Key technology delivery to Metsä Fibre
Äänekoski bioproduct mill successfully
completed in 2017
Large rebuilds at Södra Cell Värö and
SCA Östrand pulp mills
Energy and environmental technologies
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Market drivers
Growth in energy consumption
Demand for sustainable energy and shutdowns
of coal capacity
Modernization of aging plants
Incentives and regulation
Good progress in demand for our sustainable solutions
The active market for biomass boilers has continued
Growth in Asia Pacific and China
– Business expansion in Japan through co-operation with JFE
Engineering leading into several biomass boiler orders
– Active boiler market in China
Breakthrough in marine scrubbers addressing to IMO SOx regulation
Customer highlights
The Valmet delivered new multifuel boiler plant with flue gas
cleaning systems and wide range of automation solutions at
Turun Seudun Energiantuotanto (TSE) has run with 100%
availability since 2017
Five biomass boiler projects on-going in Japan
Services
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Market drivers
Increasing pulp, paper and energy production
Demand for more efficient processes, maintenance and outsourcing of non-core operations
Customers decreasing own resources
Size and gradually aging installed base, capacity increases in China, South America and
Asia-Pacific
Closures of non-competitive production lines
Last twelve months refers to the period July 1, 2017 – June 30, 2018
Well-received performance and reliability services
Services for reliability, performance and new technology
We serve our customers daily
– >500 long term agreements to deliver services
– Around 5000 on-site projects annually with 500 experts on-site daily
– Five global Performance Centers for remote support
– Two Area Performance Centers in Atlanta and Shanghai
Continued strong focus on
– Taking full advantage of digitalization
– Developing expert network globally and enhancing field services
Customer highlights
CMPC Guaiba Pulp Mill in Brazil – keeping
equipment and process running reliably since 2015
Ittihad Paper Mill in UAE – long term service
cooperation after start-up in Q4/2018
Automation
© Valmet | Customer Days 2018
Market drivers
Ageing machines and installed automation systems
Investments in new pulp and paper machines and power plants
Demand for raw material savings, process efficiencies and sustainability
Demand for Industrial Internet based solutions
Solid growth in demand in pulp, paper, energy and other process industries
Automation offering: distributed control systems (DCS), quality
management systems (QMS), analyzers and measurements
Growth through new installations and a large number of competitor
replacements
Strong R&D leading to 55% of sales coming from products
commercialized within five years
Taking consistent development steps towards the future automation
Recent customer highlights
Complete automation systems at CMPC Guaiba and Metsä
Fibre Äänekoski pulp mills
Automation for Kymijärvi III bioheating plant
Large automation system for ICT Iberica’s new tissue line
Major automation upgrades and replacements at three Metsä
Fibre mills and for several marine industry customers like
Royal Caribbean
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New developments meeting the megatrends and moving your performance forward
16 technology centers at your service
We enhance your performance through upgraded pilot facilities
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SundsvallFiberline and Biotechnology Center
3D printing technology Center
KarlstadCooking and Biotechnology Center
Tissue Technology Center
GothenburgEvaporator Technology
UlvilaCutter Technology
OvarFilter Fabrics R&D Center
KajaaniAutomation R&D Center
JuankoskiFabrics R&D Center
JyväskyläPaper and Board Technology
Polymer and Hard Coating
R&D Center
InkeroinenFiber Technology
JärvenpääFinishing Technology
TampereEnergy and Biotechnology R&D Center
Automation R&D Center
Fabrics R&D Center
RaisioAir Systems Technology
Flexible pilot machines
with new ways to utilize
industrial internet and
advanced automation
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Our expertise and on-line
services in one platform
Four modules and more to
come
– Expert Fastlane
– Opportunities
– Learning
– Operations Panel
Customer PortalIndustrial Internet applications and services Solution Ecosystem
Data visualization, reporting and guidance
Asset reliability optimization
Operations performance optimization
Five global and two Area Performance Centers
– Remote monitoring and optimization
– On-demand expert support
– Data discovery and analysis
Leading industry players
gathered together by Valmet
– To create new value-adding
applications and services to
customers
– Current partners in the
ecosystem are Tieto, Kemira
and Energy Opticon
We transform Industrial Internet and digitalization into peak performance and excellent customer experience
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Valmet DNA Automation System – The new nature of automation
We work towards the future of automation
We see
Automation utilizing web technology
Easy and secure collaboration any time, any where, with
any device
A system, that turns increasing dataflow into meaningful
information
Possibility to assign various user roles
Personalized control over processes and the whole
business
Valmet DNA Dashboards use the real-time and history data
already available in your automation system
Complements Valmet’s Industrial Internet applications and
services
Information is shown in a highly visual format – you can
immediately see what is happening at your mill or plant
Can be used stationary or with a mobile device
Meaningful information to any user group – from operators
to the CEO
Automation going to web First step: Launch of Valmet DNA Dashboards
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Some of the latest examples
We develop the future process technologies
Advantage QRT and eTAD tissue
machine lines
Curtain coating enabling bio-barries
replacing plastics
2/3 layer headbox with possibility to
feed functional additives
Energy efficient sizing with hard-
cover nip rolls
Paper and Board ServicesPulp and energy Automation
RECOX+ high performance
recovery boiler concept
Compact Cooking G3
Biomass dryer and gasification for
lime kilns and Energy
Prehydrolysis for 2nd generation
ethanol
Steam explosion for bio coal
Scrubbers for marine industry
Infinicote-2 Yankee Metallizing
Refiner segment development -
Grinding Surface Galileo for
groundwood
Intelligent Roll Solutions
Fleet Management for recovery
boilers
New Valmet DNA Dashboards
Renewed QCS product family for
converting
New analyzers
Integrated operations application for
LNG terminals and distribution
management
Together we are building a sustainable future by converting renewable resources into sustainable results
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