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.

• Holds leading market shares: #1 in board, #1-2 in tissue, #2 in pulp, and #1-3 in energy, with significant presence in automation and flow control.

• Global footprint includes ~130 service centers, 60 production units, and 32 R&D centers, supporting growth in services and automation.

• Strategy focuses on customer excellence, technology leadership, process excellence, and a winning team, leveraging megatrends like climate change and digitalization.

• Recognized for sustainability, with top ESG ratings and early achievement of carbon-neutral production targets for customers.

Financial performance and segment highlights

• Q1/2024 LTM: Orders received EUR 4,453m, net sales EUR 5,423m, comparable EBITA EUR 607m (margin 11.2%), order backlog EUR 3,790m, 19,032 employees.

• Three strong segments: Services (net sales EUR 2,289m, EBITA margin 17.2%), Automation (EUR 1,801m, 18.7%), Process Technologies (EUR 1,333m, 4.4%).

• Stable business (EUR 3.0bn) provides resilience and high margins, with recurring growth in services and automation.

• Q1/2024 saw a 32% drop in orders received and 8% decrease in net sales year-on-year; comparable EBITA margin remained stable at 10%.

• Segment performance: Services and Automation net sales stable, Process Technologies down 21%; EBITA margins highest in Automation.

Growth drivers and investment highlights

• Growth driven by demand for bio-based products, energy transition, digitalization, and sustainability.

• Services segment benefits from a large, aging installed base and aims to grow over twice the market rate.

• Automation segment targets high growth and profitability, expanding beyond core industries through M&A.

• Future growth from sustainable innovations: textile fibers from recycled materials, 3D fiber products, lignin for batteries, and green hydrogen.

• Strong track record of acquisitions (12 since 2014, EUR 2.5bn invested), including recent deals in tissue converting and process gas chromatography.