Valmet (VALMT) Investor presentation summary

Unique market offering and business segments

• Offers the widest range of process technologies, services, and automation for pulp, paper, and energy industries, including board, tissue, pulp, energy, automation systems, and flow control solutions.

• Holds leading market positions: #1-2 in pulp and paper, #1 in tissue, and top 10 in refining and chemicals.

• Three strong business segments: Services, Automation, and Process Technologies, with Services and Automation delivering high margins and recurring revenue.

• Global presence with 19,310 employees, 130 service centers, 60 production units, and 34 R&D centers.

Financial performance and targets

• 2024 orders received reached EUR 5,837 million, net sales EUR 5,359 million, and comparable EBITA EUR 609 million (11.4% margin).

• Services and Automation segments contributed 38% and 35% of net sales, respectively.

• Financial targets: Services and Automation to grow over twice the market rate, Process Technologies to exceed market growth, EBITA margin target 12-14%, ROCE at least 15%, and dividend payout at least 50% of net profit.

• Dividend proposal of EUR 1.35 per share for 2024, representing an 89% payout ratio.

Segment performance and growth drivers

• Services segment driven by a large, aging installed base, with orders received at EUR 1,915 million and a 17.4% EBITA margin in 2024.

• Automation segment achieved EUR 1,446 million in orders and a 17.7% EBITA margin, targeting growth beyond core pulp and paper markets.

• Process Technologies segment benefited from demand for bio-based products and energy, with EUR 2,477 million in orders but lower EBITA margin (3.6%).

• Stable business (Services and Automation) provides resilience and accounts for EUR 3.4 billion in recurring revenue.