Valmet (VALMT) Investor presentation summary

Unique market offering and strategic positioning

• Offers the widest range of process technologies, services, and automation for pulp, paper, and energy industries, with strong positions in board, tissue, pulp, energy, and automation markets.

• Maintains leading or top-tier market shares across segments, including #1 in pulp and tissue, and top 2-4 in energy and automation.

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

• Recognized for sustainability leadership, with top ESG ratings and early achievement of carbon neutrality targets for customers.

• R&D focuses on renewable materials, efficiency, emission reductions, and digitalization, with €123 million spent in 2024 and ~1,500 protected inventions.

Financial performance and segment highlights

• 2024 orders received rose 18% to €5,837 million; net sales were €5,359 million, with a comparable EBITA margin of 11.4%.

• Services segment net sales reached €1,900 million with a 17.4% EBITA margin; Automation segment net sales €1,437 million with 17.7% margin; Process Technologies net sales €2,023 million with 3.6% margin.

• Order backlog at year-end 2024 was €4,452 million, up 12% from 2023.

• Cash flow from operating activities increased 57% to €554 million in 2024.

• Dividend proposal of €1.35 per share, representing an 89% payout ratio.

Growth drivers and investment highlights

• Stable business of €3.4 billion provides resilience and high margins, supported by recurring revenues in Services and Automation.

• Process Technologies benefits from rising demand for bio-based products and energy transition, with operational efficiency gains and a significant replacement market.

• Services segment targets growth at over twice the market rate, driven by a large installed base and recurring demand.

• Automation segment targets high growth and profitability, expanding beyond core industries and leveraging digitalization and sustainability trends.

• Future growth opportunities include sustainable innovations in textile fibers, 3D fiber products, lignin for batteries, and green hydrogen.