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 pulp and paper, #1-2 in board, tissue, and industrial gases, and top positions in energy and flow control.

• Global presence with 19,434 employees, ~130 service centers, 60 production units, and 32 R&D centers.

• Strategy focuses on sustainability, digitalization, and continuous renewal, aiming to be the global champion in customer service and industry advancement.

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

Financial performance and segment highlights

• Q2/2024 LTM: Orders received EUR 4,468m, net sales EUR 5,330m, comparable EBITA EUR 595m (11.2% margin), order backlog EUR 3,828m.

• Services segment: EUR 2,166m net sales, 17.0% EBITA margin; Automation: EUR 1,818m net sales, 18.3% margin; Process Technologies: EUR 1,346m net sales, 4.0% margin.

• Stable business (EUR 3.1bn) provides resilience and high margins, with recurring growth in services and automation.

• Q2/2024: Orders received up 1% YoY, net sales down 7%, comparable EBITA down 8%, but cash flow improved significantly.

• Guidance for 2024: Net sales to remain stable, comparable EBITA to increase versus 2023.

Growth drivers and investment highlights

• Demand driven by global megatrends: bio-based products, energy transition, digitalization, and sustainability.

• Process Technologies benefits from growing bio-based and energy markets; Services leverages a large, aging installed base; Automation targets high growth and profitability.

• R&D investment of EUR 114m in 2023, with focus on renewable materials, efficiency, and emission reductions.

• Future growth from sustainable innovations (e.g., textile fibers, 3D fiber, green hydrogen, biofuels) and expansion in energy/process industries.

• Strong track record of successful acquisitions, including recent deals in tissue converting, automation, and process analytics.