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Growth continued in the Paper business line –Valmet’s profitability improved
Interim Review
January–September 2017
October 24, 2017
Pasi Laine, President and CEO
Kari Saarinen, CFO
AgendaInterim Review, January–September 2017
October 24, 2017 © Valmet | Interim Review, January–September 20172
1
2
3
5
6
4
Q3/2017 in brief
Development of business lines
Recent achievements in sustainability
Guidance and short-term market outlook
Summary of Interim Review Q3/2017
Financial development
7 Appendix
Q3/2017 in brief
Q3/2017 in brief
October 24, 2017 © Valmet | Interim Review, January–September 20174
Order backlog increased to EUR 2.5 billion
Orders received decreased to EUR 397 million in capital business2
1) Stable business = Services business line and Automation business line
2) Capital business = Pulp and Energy business line and Paper business line
Gearing was -3%
Profitability improved – Comparable EBITA margin was 7.9%
Orders received remained at the previous year’s level at
EUR 346 million in stable business1
Net sales increased to EUR 748 million
Valmet in Q3/2017
October 24, 2017 © Valmet | Interim Review, January–September 20175
Orders received by
area
Orders received by
business lineOrders received
EUR 743 million
Net sales
EUR 748 million
Comparable EBITA
EUR 59 million
Comparable EBITA
margin
7.9%
Employees
12,246
38%
8%16%
37%
Services
Automation
Pulp and Energy
Paper
13%
10%
47%
21%
7%
North America
South America
EMEA
China
Asia-Pacific
1,1011,023
466 480580
781 725 793 803692
788 8571,005
796 743
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
200
400
600
800
1,000
1,200
1,400
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7Orders received (LHS) Last 4 quarters (RHS)
Orders received decreased to EUR 743 million in Q3/2017
October 24, 2017 © Valmet | Interim Review, January–September 20176
• Orders received increased in the Paper and Services business lines and
decreased in the Pulp and Energy, and Automation business lines compared with
Q3/2016
• Orders received increased in China and South America and decreased in North
America, Asia-Pacific and EMEA compared with Q3/2016
Orders received (EUR million) Orders received in Q1–Q3/2017 by area
North America
19%
South America
6%
EMEA47%
China17%
Asia-Pacific10%
267 273 242 273 293 307252 267
313 321264 284
355 321 284
95
78 75
81 88
8087
88103
75267 273242
273293
402
330 342
394 409
344371
443 424
359
0
300
600
900
1,200
1,500
1,800
0
100
200
300
400
500
600
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
Services (LHS) Automation, total (including internal) (LHS) Last 4 quarters (RHS)
Stable business orders received totaled EUR 1,598 million during the last 4 quarters
October 24, 2017 © Valmet | Interim Review, January–September 20177
Orders received (EUR million) in stable business1
• In Q3/2017, total orders received in stable business remained at the previous year’s
level
1) Including internal orders received for the Automation business line.
1,972
2,4062,312
1,9982,0642,208
2,1172,0742,207
2,1062,192
2,283
2,6132,5512,523
0
500
1,000
1,500
2,000
2,500
3,000
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Order backlog at EUR 2,523 million at the end of Q3/2017
October 24, 2017 © Valmet | Interim Review, January–September 20178
• Order backlog EUR 27 million lower than at the end of Q2/2017 but EUR 332 million
higher than a year ago
• Approximately 25% of the order backlog relates to stable business
Order backlog (EUR million)
~25%
~75%
Stable business Capital business
Structure of order backlog
Development of business lines
Services: Orders received increased and net sales remained at the previous year’s level
October 24, 2017 © Valmet | Interim Review, January–September 201710
Net sales (EUR million)Orders received (EUR million)
• Orders received increased compared with Q3/2016
- Orders received increased in South America, Asia-Pacific and EMEA,
remained at the previous year’s level in North America and decreased in China
- Orders received increased in Energy and Environmental, Fabrics, and Mill
Improvements, remained at the previous year’s level in Performance Parts
and decreased in Rolls
• Net sales remained at the same level as in Q3/2016
Q1–Q3/2017:
EUR 960 million
Q1–Q3/2017:
EUR 838 million
Q1–Q3/2016:
EUR 898 million
Q1–Q3/2016:
EUR 846 million
267273242
273293307
252267
313321
264284
355321
284
0
200
400
600
800
1,000
1,200
1,400
1,600
0
50
100
150
200
250
300
350
400
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Orders received (LHS)
Orders received, last 4 quarters (RHS)
224251235
278242
304268
314
257
304286
316
252
302284
0
200
400
600
800
1,000
1,200
1,400
1,600
0
50
100
150
200
250
300
350
400
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Net sales (LHS)
Net sales, last 4 quarters (RHS)
Automation1: Orders received decreased and net sales remained at the previous year’s level
October 24, 2017 © Valmet | Interim Review, January–September 201711
• Orders received decreased compared with Q3/2016
- Orders received remained at the previous year’s level in EMEA and
decreased in all other areas
- Orders received increased in Pulp and Paper and decreased in Energy and
Process
• Net sales remained at the same level as in Q3/2016
1) Comments refer to orders received and net sales including also internal orders received and net sales.2) Q1/2015 orders received and the underlying figures for ‘Orders received, last 4 quarters’ and ‘Net sales, last 4 quarters’ are calculated based on Metso’s reported figures and
pro forma figures excluding Process Automation Systems and are therefore indicative only.
Q1–Q3/2017:
EUR 267 million
Q1–Q3/2017:
EUR 220 million
Q1–Q3/2016:
EUR 250 million
Q1–Q3/2016:
EUR 217 million
Net sales2 (EUR million)Orders received2 (EUR million)
8570 67 66
82 72 78 7291
62
10
8 8 156
79 16
12
1362
95
78 7581
8880
87 88
103
75
0
75
150
225
300
375
450
0
20
40
60
80
100
120
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Orders received, internal (from other business lines)Orders received, externalOrders received, total (including internal)Orders received, last 4 quarters (RHS)
68 66
95
5873 65
94
5973
60
11 6
6
9
84
5
128
855
7972
101
66
8169
99
7280
68
0
75
150
225
300
375
450
0
20
40
60
80
100
120
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Net sales, internal (from other business lines)Net sales, externalNet sales, total (including internal)Net sales, last 4 quarters (RHS)
Pulp and Energy: Orders received decreased and net sales increased
October 24, 2017 © Valmet | Interim Review, January–September 201712
Net sales (EUR million)Orders received (EUR million)
• Orders received decreased compared with Q3/2016
- Orders received increased in South America and decreased in North
America, EMEA and Asia-Pacific
- Orders received increased in Pulp and decreased in Energy
• Net sales increased compared with Q3/2016
Q1–Q3/2017:
EUR 527 million
Q1–Q3/2017:
EUR 669 million
Q1–Q3/2016:
EUR 692 million
Q1–Q3/2016:
EUR 640 million
622560
96 66138
259206
261238180
275247265
141122
0
200
400
600
800
1,000
1,200
1,400
0
100
200
300
400
500
600
700
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Orders received (LHS)
Orders received, last 4 quarters (RHS)
181
229234
312
222231215
245
181
262
196187204
245220
0
200
400
600
800
1,000
1,200
1,400
0
50
100
150
200
250
300
350
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Net sales (LHS)
Net sales, last 4 quarters (RHS)
Paper: Orders received and net sales increased
October 24, 2017 © Valmet | Interim Review, January–September 201713
Net sales (EUR million)Orders received (EUR million)
• Orders received for the last 12 months amount to EUR 1,078 million
• Orders received increased compared with Q3/2016
- Orders received increased in China and EMEA and decreased in Asia-
Pacific and North America
- Orders received increased in Board and Paper and decreased in Tissue
• Net sales increased compared with Q3/2016
Q1–Q3/2017:
EUR 832 million
Q1–Q3/2017:
EUR 523 million
Q1–Q3/2016:
EUR 472 million
Q1–Q3/2016:
EUR 459 million
212190
128142149129
197199186
109
176
246
314
243275
0
150
300
450
600
750
900
1,050
1,200
0
50
100
150
200
250
300
350
400
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Orders received (LHS)
Orders received, last 4 quarters (RHS)
114108120
186
97
177185200157165
138
188156
184184
0
150
300
450
600
750
900
1,050
1,200
0
50
100
150
200
250
300
350
400
Q1/1
4
Q2/1
4
Q3/1
4
Q4/1
4
Q1/1
5
Q2/1
5
Q3/1
5
Q4/1
5
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Net sales (LHS)
Net sales, last 4 quarters (RHS)
Recent achievements in sustainability
Valmet’s recent achievements in sustainabilitySustainability contributing to business growth
October 24, 2017 © Valmet | Interim Review, January–September 201715
• Inclusion in the Dow Jones World Sustainability Index
(DJSI) for the fourth consecutive year
• Valmet reconfirmed as a constituent of the Ethibel
Sustainability Index Excellence Europe
• Global process for managing suppliers’ sustainability
performance – 39 audits done by the end of September
2017
• Renewed environmental targets for own operations
spanning to year 2030 to drive continuous
improvement in the long term
360°Health,
safety and
environment
Our people
Our
solutions
Corporate
citizenshipSustainable
supply chain
Valmet’s Sustainability360º agendaRecent achievements
Financial development
Key figures
October 24, 2017 © Valmet | Interim Review, January–September 201717
EUR million Q3/2017 Q3/2016 Change Q1–Q3/2017 Q1–Q3/2016 Change
Orders received 743 788 -6% 2,544 2,282 11%
Order backlog1 2,523 2,192 15% 2,523 2,192 15%
Net sales 748 685 9% 2,223 2,141 4%
Comparable EBITA 59 52 15% 150 140 8%
% of net sales 7.9% 7.5% 6.8% 6.5%
EBITA 53 49 7% 146 135 8%
Operating profit (EBIT) 45 41 9% 122 107 14%
% of net sales 6.0% 6.0% 5.5% 5.0%
Earnings per share, EUR 0.20 0.17 14% 0.54 0.46 19%
Return on capital employed (ROCE) before taxes2 14% 12%
Cash flow provided by operating activities 78 122 -36% 203 158 29%
Gearing1 -3% 15%
Items affecting comparability: EUR -6 million in Q3/2017 (EUR -2 million in Q3/2016), EUR -5 million in Q1–Q3/2017 (EUR -5 million in Q1–Q3/2016)
1) At the end of period
2) Annualized
Gross profit margin and SG&A development
October 24, 2017 © Valmet | Interim Review, January–September 201718
Gross profit (EUR million and % of net sales)
• Gross profit margin decreased compared with Q3/2016
− Capital business had a higher share of net sales in Q3/2017
• Selling, general & administrative (SG&A) expenses decreased by EUR 2 million
compared with Q3/2016
• Actions to improve gross profit through Must-Win implementation
SG&A (EUR million and % of net sales)
22%
0%
5%
10%
15%
20%
25%
0
40
80
120
160
200
Q1/2
014
Q2/2
014
Q3/2
014
Q4/2
014
Q1/2
015
Q2/2
015
Q3/2
015
Q4/2
015
Q1/2
016
Q2/2
016
Q3/2
016
Q4/2
016
Q1/2
017
Q2/2
017
Q3/2
017
EUR million (LHS) % of net sales (RHS)
15%
0%
5%
10%
15%
20%
25%
0
40
80
120
160
200
Q1/2
014
Q2/2
014
Q3/2
014
Q4/2
014
Q1/2
015
Q2/2
015
Q3/2
015
Q4/2
015
Q1/2
016
Q2/2
016
Q3/2
016
Q4/2
016
Q1/2
017
Q2/2
017
Q3/2
017
EUR million (LHS) % of net sales (RHS)
224251 235
278242
371334
409
314
377351
411
311
374345295
337 354498
319
408400
445
338
427334
375
360
429404
519
588 590
777
561
779734
854
652
804
685
785
671
803748
0.7%
3.7% 5.5%
6.1%
3.5%
6.9%6.4%
7.3%
4.8%
7.1%
7.5%
7.2%
5.1%
7.1%
7.9%
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
Capital business
Stable business
Comparable EBITA %
Target 8–10%
Comparable EBITA margin development
October 24, 2017 © Valmet | Interim Review, January–September 201719
Net sales and Comparable EBITA (EUR million and %)
• Net sales and Comparable EBITA increased compared with Q3/2016
− Profitability improved due to higher net sales and lower SG&A expenses
Comparable EBITA
(EUR million)19 54 47 63 314 22 32 48 57 52 56 35 57 59
43 46
117
30
-20
17 16
64
333
122
88 94
31
78
-40
-20
0
20
40
60
80
100
120
140
Q1/2
01
4
Q2/2
01
4
Q3/2
01
4
Q4/2
01
4
Q1/2
01
5
Q2/2
01
5
Q3/2
01
5
Q4/2
01
5
Q1/2
01
6
Q2/2
01
6
Q3/2
01
6
Q4/2
01
6
Q1/2
01
7
Q2/2
01
7
Q3/2
01
7
Cash flow provided by operating activities
October 24, 2017 © Valmet | Interim Review, January–September 201720
• Change in net working capital1 EUR 34 million in Q3/2017
• Cash flow provided by operating activities EUR 78 million in Q3/2017
• CAPEX EUR 16 million in Q3/2017
Cash flow provided by operating activities (EUR million)
1) Change in net working capital in the consolidated statement of cash flows.
2016:
EUR 246 million
2014:
EUR 236 million
2015:
EUR 78 million
Q1–Q3/2017:
EUR 203 million
-257 -249 -345 -353 -355 -265 -244 -238 -247 -181 -265 -294 -428 -313 -344
1,101 1,023
466 480 580781 725 793 803
692 788 8571,005
796 743
-20%
-10%
0%
10%
20%
30%
-1,000
-500
0
500
1,000
1,500
Q1/2
01
4
Q2/2
01
4
Q3/2
01
4
Q4/2
01
4
Q1/2
01
5
Q2/2
01
5
Q3/2
01
5
Q4/2
01
5
Q1/2
01
6
Q2/2
01
6
Q3/2
01
6
Q4/2
01
6
Q1/2
01
7
Q2/2
01
7
Q3/2
01
7
Orders received (LHS)Net working capital (LHS)Average net working capital/rolling 12 months orders received (RHS)Net working capital/rolling 12 months orders received (RHS)
Net working capital at -10% of rolling12 months orders received
October 24, 2017 © Valmet | Interim Review, January–September 201721
• Net working capital EUR -344 million, which equals -10% of rolling 12 months orders received
Net working capital and orders received (EUR million)
Net debt decreased compared with both Q3/2016 and Q2/2017
October 24, 2017 © Valmet | Interim Review, January–September 201722
Net debt (EUR million) and gearing (%) Equity to assets ratio (%)
• Gearing (-3%) and net debt (EUR -30 million) decreased
• Equity to assets ratio remained at the previous year’s level
-166
178 192231
12652
-27
31
-30
-21%
21%24%
27%
15%
6%
-3%
4%
-3%
-30%
-20%
-10%
0%
10%
20%
30%
-300
-200
-100
0
100
200
300
20
14
20
15
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Net debt Gearing
42%
36% 35% 36%38% 37% 37% 38% 38%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
20
14
20
15
Q1/1
6
Q2/1
6
Q3/1
6
Q4/1
6
Q1/1
7
Q2/1
7
Q3/1
7
Automation acquisition was completed on April 1, 2015.
985 967902 877
1,239 1,240 1,214 1,2311,184 1,194 1,167 1,195
1,122 1,154 1,159
1%2% 2%
10% 10%
12%
14% 14%13%
12%
14%13%
14% 14%15%
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17
Capital employed Comparable ROCE (before taxes), rolling 12 months
Capital employed and Comparable ROCE
October 24, 2017 © Valmet | Interim Review, January–September 201723
• Target for Comparable return on capital employed (ROCE): 15–20%
Capital employed (EUR million) and Comparable return on capital
employed (ROCE), before taxes1 (%)
1) Rolling 12 months. Carve-out figures for 2013 have been used in the calculation of Q1–Q3/2014 figures.
Target
15–20%
Guidance and short-term market outlook
Guidance and short-term market outlook
October 24, 2017 © Valmet | Interim Review, January–September 201725
WeakPulp and
Energy
Paper
Satisfactory
Pulp
Energy
Board and Paper
Tissue
Guidance for
2017
Services
Short-term market outlook
Guidance for 2017 (as given on April 12, 2017)
Satisfactory
Good
Good
Good
Good
Weak
Good
Good
Good
Q4/2016 Q1/2017
Good
Weak
Good
Good
Good
Q2/2017
Good
Satisfactory
Good
Good
Q3/2017
Valmet estimates that net sales in 2017 will increase in comparison with
2016 (EUR 2,926 million) and Comparable EBITA in 2017 will increase in
comparison with 2016 (EUR 196 million).
Satisfactory Satisfactory Satisfactory SatisfactoryAutomation
The short-term market outlook is given for the next six months from the end of the respective quarter. The scale is ‘weak–satisfactory–good’.
Summary of Interim Review Q3/2017
Summary of Interim Review Q3/2017
October 24, 2017 © Valmet | Interim Review, January–September 201727
1) Stable business = Services business line and Automation business line
2) Capital business = Pulp and Energy business line and Paper business line
Order backlog increased to EUR 2.5 billion
Orders received decreased to EUR 397 million in capital business2
Gearing was -3%
Profitability improved – Comparable EBITA margin was 7.9%
Orders received remained at the previous year’s level at
EUR 346 million in stable business1
Net sales increased to EUR 748 million
Appendix
Structure of loans and borrowingsInterest-bearing debt EUR 262 million as at September 30, 2017
October 24, 2017 © Valmet | Interim Review, January–September 201729
0
50
100
150
200
250
300
2017 2018 2019 2020 2021 2022 2023 2024 2025
Amount of outstanding interest-bearing debt
(EUR million)
• Average maturity of long-term loans is 3.5 years- Average interest rate is 1.3%
Loans from banks and
financial institutions
EUR 200 millioncommitted syndicated revolving
credit facility1
EUR 262 million
None outstanding
None outstanding
Source Amount outstanding
EUR 200 milliondomestic commercial
paper program
1) EUR 200 million syndicated revolving credit facility agreement
matures on January 14, 2022 with two 1-year extension options.
Main financing sources and facilities
Largest shareholders on September 30, 2017Based on the information given by Euroclear Finland Ltd.
October 24, 2017 © Valmet | Interim Review, January–September 201730
# Shareholder name Number of shares % of shares and votes
1 Solidium Oy1 16,695,287 11.14%
2 Elo Pension Company 4,210,000 2.81%
3 Varma Mutual Pension Insurance Company 4,165,465 2.78%
4 OP Funds 3,316,901 2.21%
5 Ilmarinen Mutual Pension Insurance Company 3,103,000 2.07%
6 The State Pension Fund 1,545,000 1.03%
7 Keva 1,502,166 1.00%
8 Danske Invest funds 1,065,296 0.71%
9 Mandatum Life Insurance Company Limited 922,537 0.62%
10 Odin Funds 915,239 0.61%
10 largest shareholders, total 37,440,891 24.98%
Other shareholders 112,423,728 75.02%
Total 149,864,619 100%
Largest shareholders
1) A holding company that is wholly owned by the Finnish State
Shareholder structure on September 30, 2017
October 24, 2017 © Valmet | Interim Review, January–September 201731
1) Of which 71,983,066 nominee registered shares
2) A holding company that is wholly owned by the Finnish State
The shareholder structure is based on the classification of sectors determined by Statistics Finland.
49.3%
25.9%
11.1%
13.6%
Nominee registered and non-Finnish holders
Finnish institutions, companies and foundations
Solidium Oy
Finnish private investors
Sector Number of shareholders % of total shareholders Number of shares % of shares
Nominee registered and non-Finnish holders1 323 0.7% 73,953,391 49.3%
Finnish institutions, companies and foundations 2,399 5.2% 38,884,851 25.9%
Solidium Oy2 0 0.0% 16,695,287 11.1%
Finnish private investors 43,138 94.1% 20,322,990 13.6%
In the issuer account 0 0.0% 8,100 0.0%
Total 45,860 100% 149,864,619 100%
Share of non-Finnish holders and number of shareholders
October 24, 2017 © Valmet | Interim Review, January–September 201732
43,000
45,000
47,000
49,000
51,000
53,000
55,000
57,000
59,000
42%
44%
46%
48%
50%
52%
54%
56%
12/2
01
30
1/2
01
40
2/2
01
40
3/2
01
40
4/2
01
40
5/2
01
40
6/2
01
40
7/2
01
40
8/2
01
40
9/2
01
41
0/2
01
41
1/2
01
41
2/2
01
40
1/2
01
50
2/2
01
50
3/2
01
50
4/2
01
50
5/2
01
50
6/2
01
50
7/2
01
50
8/2
01
50
9/2
01
51
0/2
01
51
1/2
01
51
2/2
01
50
1/2
01
60
2/2
01
60
3/2
01
60
4/2
01
60
5/2
01
60
6/2
01
60
7/2
01
60
8/2
01
60
9/2
01
61
0/2
01
61
1/2
01
61
2/2
01
60
1/2
01
70
2/2
01
70
3/2
01
70
4/2
01
70
5/2
01
70
6/2
01
70
7/2
01
70
8/2
01
70
9/2
01
7
Non-Finnish holders (LHS) Total number of shareholders (RHS)
Pulp and paper price trends
October 24, 2017 © Valmet | Interim Review, January–September 201733
200
300
400
500
600
700
800
900
1,000
1,100
Ja
n-1
3
Ma
r-1
3
Ma
y-1
3
Ju
l-1
3
Se
p-1
3
No
v-1
3
Ja
n-1
4
Ma
r-1
4
Ma
y-1
4
Ju
l-1
4
Se
p-1
4
No
v-1
4
Ja
n-1
5
Ma
r-1
5
Ma
y-1
5
Ju
l-1
5
Se
p-1
5
No
v-1
5
Ja
n-1
6
Mar-
16
Ma
y-1
6
Ju
l-1
6
Se
p-1
6
No
v-1
6
Ja
n-1
7
Ma
r-1
7
Ma
y-1
7
Ju
l-1
7
Se
p-1
7
Northern bleached softwood pulp (USD/t) Copy paper (EUR/t) Testliner (EUR/t)
Source: Bloomberg
Crude oil, steam coal, natural gas and electricity
October 24, 2017 © Valmet | Interim Review, January–September 201734
Europe
0
20
40
60
80
100
120
140
Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17
CIF ARA steam coal (USD/t) Brent crude oil (USD/barrel) Natural gas spot price NBP (GBP/therm)
0
20
40
60
80
Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17
European Energy Exchange, Phelix (EUR/MWh) Nordpool Power (EUR/MWh) UK Baseload (GBP/MWh)
Source: Bloomberg
Crude oil, natural gas and electricity
October 24, 2017 © Valmet | Interim Review, January–September 201735
Source: Bloomberg
United States
65
70
75
80
85
0
50
100
150
200
250
Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15 Jan-16 May-16 Sep-16 Jan-17 May-17 Sep-17
Electricity spot price, PJM (USD/MWh) (LHS) Electricity spot price, NEPOOL (USD/MWh) (LHS)
US utility capacity utilization rate, % (RHS)
0
1
2
3
4
5
6
0
20
40
60
80
100
120
FOB steam coal Richards Bay (USD/t) (LHS) WTI crude oil (USD/barrel) (LHS) Henry Hub gas (USD/MMBtu) (RHS)
European Carbon Emission Allowance
October 24, 2017 © Valmet | Interim Review, January–September 201736
0
1
2
3
4
5
6
7
8
9
10
Jan-1
3
Ma
r-1
3
Ma
y-1
3
Jul-1
3
Sep-1
3
No
v-1
3
Jan-1
4
Ma
r-1
4
Ma
y-1
4
Jul-1
4
Sep-1
4
No
v-1
4
Jan-1
5
Ma
r-1
5
Ma
y-1
5
Jul-1
5
Sep-1
5
No
v-1
5
Jan-1
6
Ma
r-1
6
Ma
y-1
6
Jul-1
6
Sep-1
6
No
v-1
6
Jan-1
7
Ma
r-1
7
Ma
y-1
7
Jul-1
7
Sep-1
7
European Energy Exchange (EEX) spot price (EUR/t)
Source: Bloomberg
Important notice
October 24, 2017 © Valmet | Interim Review, January–September 201737
IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Valmet (the “Company”) or any person on behalf of the Company,
and any question-and-answer session that follows the oral presentation (collectively, the “Information”). In accessing the Information, you agree to be bound by the following terms
and conditions.
The Information is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other
jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Information is not for
publication, release or distribution in the United States, the United Kingdom, Australia, Canada or Japan.
The Information does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase any securities, and nothing
contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding any securities.
Prospective investors are required to make their own independent investigations and appraisals of the business and financial condition of the Company before taking any investment
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No securities of the Company are being offered or sold, directly or indirectly, in or into the United States and no shares in the Company have been, or will be, registered under the
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The Information is directed solely at: (i) persons outside the United Kingdom, (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of
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The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-
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No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the
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October 24, 2017 © Valmet | Interim Review, January–September 201738
Financial Statements Review 2017
February 6, 2018
www.valmet.com/investors