Valmet (VALMT) Investor Day 2024 presentation summary

Market position and growth strategy

• North America is a stable, attractive market with a large installed base and strong growth in services and automation segments.

• Holds leading market shares in board, paper, and tissue, and is a market leader in automation systems for cruise ships.

• Maintains the largest direct sales network, covering all key customer mills and corporations in the region.

• Services orders have grown at a CAGR of over 7% since 2013, with a solid track record in winning major investment projects.

• Continues to pursue selective acquisitions to strengthen services, automation, and process technologies.

Competitive advantages and offerings

• Offers the market's widest portfolio, ensuring tailored solutions for every lifecycle stage.

• Strong local presence with 2,500 employees, 33 service centers, and 10 production units across North America.

• High market share in new installations and a broad customer base, including the world's largest pulp and paper corporations.

• Integrated automation and flow control solutions, with leading positions in distributed control and quality management systems.

• Proven, reliable technologies such as the Advantage Thru-Air (TAD) system for tissue production.

Market trends and financial highlights

• North American pulp and energy markets are the largest globally, with stable or slightly growing demand in tissue and board.

• Graphic paper demand is declining, but tissue and board segments show healthy operating rates and growth potential.

• U.S. economic indicators show resilience, with GDP growth, falling inflation, and a strong labor market.

• Key capital projects and start-ups in 2024 include new board and tissue lines and major upgrades at leading customer sites.

• Flow control and automation businesses are set to grow at over twice the market rate, driven by digitalization and sustainability trends.