Strong development in orders received in China ...€¦ · • Net sales EUR 72 million in Q3/2015 - Internal net sales amounted to EUR 6 million 1) Q1/2015 orders received is calculated

Strong development in orders received in China –profitability in the targeted range in Q3/2015

Interim Review,

January–September 2015

October 28, 2015

Pasi Laine, President and CEO

Markku Honkasalo, CFO

Agenda

Q3/2015 in brief

Business lines’ development

Financial development

Summary of Interim Review Q3/2015

Appendix

1

2

3

5

6

Interim Review, January–September 2015

Guidance and short-term market outlook4

Q3/2015 in brief

• Orders received increased compared with Q3/2014 in Pulp and Energy, and Paper business lines

• Net sales increased in Paper and decreased in Pulp and Energy compared with Q3/2014

Orders received and net sales increased in capital business

• Orders received remained stable compared with Q3/2014 in Services, orders received EUR 70 million

in Automation

• Net sales increased in Services compared with Q3/2014, net sales EUR 66 million in Automation

Orders received and net sales increased in stable business1

October 28, 2015 © Valmet4

Q3/2015 in brief

1) Stable business = Services and Automation business lines

2) EBITA = Earnings before interest, taxes and amortization and non-recurring items

• EBITA2 increased to EUR 47 million

• EBITA2-margin improved and was in the targeted range at 6.4 percent

Good development in profitability

Net debt EUR 229 million

• Gearing 28%

• Cash flow provided by operating activities EUR 16 million

• Order backlog EUR 90 million lower than at the end of Q2/2015

Order backlog at EUR 2.1 billion

36%

9%29%

25%

Net sales split in Q3/2015


22%

7%

50%

11%

11%

Net sales split by

geographic area

Net sales split by

business line Orders received

EUR 725 million

Net sales

EUR 734 million

EBITA before NRI1

EUR 47 million

Employees

12,296

1) NRI = non-recurring items

Stable business net sales EUR 334 million

Services

Automation

Pulp and Energy

North America

EMEA

South America

Asia-Pacific

ChinaPaper

Key figures Q3/2015


1) At the end of period

2) Before non-recurring items

3) After non-recurring items

4) Annualized

EUR million Q3/2015 Q3/2014 Change Q1–Q3/2015 Q1–Q3/2014 Change

Orders received 725 466 56% 2,085 2,590 -19%

Order backlog1 2,117 2,312 -8% 2,117 2,312 -8%

Net sales 734 590 25% 2,074 1,697 22%

EBITA2 47 32 45% 120 58 >100%

% of net sales 6.4% 5.5% 5.8% 3.4%

EBIT3 33 26 25% 78 35 >100%

% of net sales 4.4% 4.4% 3.8% 2.1%

Earnings per share, EUR 0.14 0.11 25% 0.33 0.14 >100%

Return on capital employed (ROCE), before taxes4 11% 6%

Cash flow provided by operating activities 16 117 -86% 14 206 -93%

Gearing1 28% -20%

Non-recurring items: EUR -4 million in Q3/2015 (EUR -1 million in Q3/2014), EUR -16 million in Q1–Q3/2015 (EUR -7 million in Q1–Q3/2014).

267 273 242 273 293 307 252

8570

622 560

96 66138

259206

212190

128 142149

129197

1,1011,023

466 480580

781725

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

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Services (LHS) Automation (LHS)Pulp and Energy (LHS) Paper (LHS)Last 4 quarters (RHS)

Orders received increased especially in China, stable business orders received EUR 322 million

• Orders received stable in Services: Year-to-date growth at 9%

• Orders received EUR 70 million in Automation

• Orders received increased in Pulp and Energy: Main equipment to a pulp mill project in China

• Orders received increased in Paper: One board machine and three tissue machines

• Orders received more than doubled in China, and increased in EMEA and North America


Orders received (EUR million),

by business line

Orders received (EUR million),

by area

18582 135 88

189 196 170

24 194 23 4050 38 22

437

567

189 277202

443

248

35

121

5435 54

45

224

42059

66 4185

5861

1,1011,023

466 480 580

781725

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

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

North America (LHS) South America (LHS)EMEA (LHS) China (LHS)Asia-Pacific (LHS) Last 4 quarters (RHS)

1,972

2,4062,312

1,998 2,0642,208

2,117

0

500

1,000

1,500

2,000

2,500

3,000

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15



• Approximately 30% of the order backlog relates to stable business


Order backlog (EUR million)

~30%

~70%

Stable business Capital business

Structure of order backlog

224 251 235 278 242

371 334

519

588 590

777

561

779734

0.7%

3.7% 5.5%

6.1%

3.5%

6.9%6.4%

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Capital business

Stable business

EBITA-%

EBITA target 6–9%

EBITA margin in the targeted range


Net sales and EBITA before NRI (EUR million)

• Net sales and profitability increased compared with Q3/2014

- Profitability improved due to the higher level of net sales, improved gross profit, and the acquisition of

Automation

- Changes in foreign exchange rates1 increased net sales by approximately EUR 14 million and EBITA by

approximately EUR 1 million2

EBITA before

NRI (EUR million)194 22 32 48

1) Compared with the exchange rates for July–September 2014

2) Indicative only

54 47

21%

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

EUR million (LHS) % of net sales (RHS)

16%

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

EUR million (LHS) % of net sales (RHS)

Good development in gross profit compared to Q3/2014


Gross profit (EUR million and % of net sales)

• Gross profit increased, also when excluding the impact of Automation

• Selling, general & administrative (SG&A) expenses under control

• Further actions to improve gross profit through Must-Win implementation

SG&A (EUR million and % of net sales)

Key Must-Win objectives to develop Valmet further and continue to improve profitability


• Nurture shared values

• Drive high performance

• Continue globalization of our capabilities

• Strengthen our presence close to customers and growth markets

• Strengthen Key Account Management to serve customers with our full offering

• Provide customer benefits by combining process technology, automation and services

• Develop Valmet service concept, remote services and drive growth through service agreements

• Improve product cost competitiveness to increase gross profit and reduce customer investment

and operational costs

• Develop new products and technologies to create new revenue

• Sales and project management process to improve product margin

• Implement Lean to reduce quality costs and lead times

• Save in procurement and ensure sustainable supply chain

• Improve health and safety

• Continue to improve cost competitiveness

Must-Win implementation objectives for 2016Must-Wins

Leader in technology and innovation

Excellencein processes

Customer excellence

Winningteam

Leader in technology and innovation:Examples of our R&D results


Advantage NTT tissue machineOptiConcept M board and paper machine

Cost-efficient, high-quality, safe and flexible board

making concept

Significant savings in energy, water and raw material

use– Energy efficiency improvement up to 30%

Modular and compact size– Short delivery times, quick start-ups, and less production

space

Functional design brings increased safety and

accessibility

High flexibility and energy efficiency– Swing from production of conventional to textured tissue in

a few hours

– Low energy consumption

Premium product quality

Fiber savings– 10–30% less fiber consumption

High speed and capacity– 2,000 m/min in conventional mode, 1,800 m/min in textured

mode

10 OptiConcept M

machines sold

5 Advantage NTT

machines sold

Excellence in processes: Good development in work safety and sustainability

Valmet has made excellent progress in

health and safety

– LTIF has declined to 3.5 in Q3/2015

Valmet has been included in the Dow

Jones Sustainability Index (DJSI) for the

second consecutive year

– Valmet maintains its position among 317

companies recognized as world's sustainability

leaders in Dow Jones Sustainability Index

– Valmet was listed both in the Dow Jones

Sustainability World and Europe indices

– In addition to Valmet, three other companies from

Finland are included in the World index this year


1) Lost time incident frequency (LTIF) reflects the number of injuries resulting in an absence of at least one workday per million hours worked.

The LTIF numbers are for own employees and calculated for the last 12 months.

Lost time incident frequency (LTIF)1 Sustainability

Valmet is committed to the safety

and wellbeing of our employees,

customers and partners. Together,

we take safety forward

Long-term goal

ZEROharm

3.5

0

2

4

6

8

10

12

14

16

Q1/1

1

Q2/1

1

Q3/1

1

Q4/1

1

Q1/1

2

Q2/1

2

Q3/1

2

Q4/1

2

Q1/1

3

Q2/1

3

Q3/1

3

Q4/1

3

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Business lines’ development

Orders received remained stable and net sales increased in Services in Q3/2015


Net sales (EUR million)Orders received (EUR million)

• Services orders received remained stable compared with Q3/2014- Orders received increased in China, remained stable compared with Q3/2014 in

North America, EMEA and Asia-Pacific, and decreased in South America

- Orders received increased in Mill Improvements and Fabrics, remained stable

compared with Q3/2014 in Performance Parts and decreased in Energy and

Environmental, and Rolls

- Changes in foreign exchange rates1 increased orders received by approximately

EUR 11 million

• Net sales increased compared with Q3/2014

1) Compared with the exchange rates for July–September 2014

Q1–Q3/2014:

EUR 782 million

Q1–Q3/2015:

EUR 852 million

Q1–Q3/2014:

EUR 711 million

Q1–Q3/2015:

EUR 814 million

267 273242

273293 307

252

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

Orders received (LHS)

Orders received, last 4 quarters (RHS)

224251

235

278242

304268

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

Net sales (LHS)

Net sales, last 4 quarters (RHS)

Orders received in Automation totaled EUR 78 million in Q3/2015


Net sales (EUR million)Orders received1 (EUR million)

• Orders received EUR 78 million in Q3/2015

- Internal orders received amounted to EUR 8 million

- EMEA accounted for ~50% and North America for ~30% of orders received

- Pulp and Paper accounted for ~70% and Energy and Process for ~30% of

orders received

• Net sales EUR 72 million in Q3/2015

- Internal net sales amounted to EUR 6 million

1) Q1/2015 orders received is calculated from Metso’s reported figures and pro forma figures excluding Process Automation

Systems and are therefore indicative only. Q2/2015 and Q3/2015 figures are Automation business line figures.

8570

108

62

9578

0

20

40

60

80

100

120

140

160

Q1/15 Q2/15 Q3/15

Orders received, internal (from other business lines)Orders received, reportedOrders received, total (including internal)

68 66

11 655

79 72

0

20

40

60

80

100

120

140

160

Q1/15 Q2/15 Q3/15

Net sales, internal (from other business lines)Net sales, reportedNet sales, total (including internal)

Orders received increased in Pulp and Energy in Q3/2015



• Orders received more than doubled compared with Q3/2014

- Orders received increased in China and North America, remained stable in

EMEA and decreased in Asia-Pacific and South America

- Orders received increased in Pulp and remained stable compared with

Q3/2014 in Energy

• Net sales decreased compared with Q3/2014

Q1–Q3/2014:

EUR 1,279 million

Q1–Q3/2015:

EUR 603 million

Q1–Q3/2014:

EUR 644 million

Q1–Q3/2015:

EUR 668 million

622560

96 66138

259206

0

200

400

600

800

1,000

1,200

1,400

1,600

0

100

200

300

400

500

600

700

800

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5



181

229 234

312

222 231 215

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

Net sales (LHS)


Orders received and net sales increased in Paper in Q3/2015



• Orders received increased compared with Q3/2014

- Orders received increased in China, EMEA, Asia-Pacific and North America

- Orders received increased in both Tissue, and Board and Paper

• Net sales increased compared with Q3/2014

Q1–Q3/2014:

EUR 530 million

Q1–Q3/2015:

EUR 474 million

Q1–Q3/2014:

EUR 342 million

Q1–Q3/2015:

EUR 459 million

212190

128142 149

129

197

0

150

300

450

600

750

900

0

50

100

150

200

250

300

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5



114 108 120

186

97

177 185

0

150

300

450

600

750

900

0

50

100

150

200

250

300

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Net sales (LHS)


Financial development

43 46

117

30

-20

17 16

-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

Cash flow provided by operating activities


• CAPEX excluding business acquisitions (EUR -11 million) less than depreciation (EUR -14 million)

Cash flow provided by operating activities (EUR million)

-257 -249 -345 -353 -355 -265 -244

1,101 1,023

466 480 580781 725

-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


Net working capital (LHS)

Net working capital/rolling 12 months orders received (RHS)

Net working capital development


• Net working capital EUR -244 million, which equals -10% of rolling 12 months orders received

Net working capital and orders received (EUR million)

Historically, net

working capital

has been on

average -9% of

rolling 12

months orders

received

Net debt increased due to Automation acquisition


• Gearing (28%) and net debt (EUR 229 million) increased due to the acquisition of Automation

• Equity to assets ratio at the same level as in Q2/2015

Net debt (EUR million) and gearing (%) Equity to assets ratio (%)

-39-54

-158 -166 -134

238 229

-5% -7%

-20% -21%-17%

29% 28%

-35%-30%-25%-20%-15%-10%-5%0%5%10%15%20%25%30%35%

-350-300-250-200-150-100

-500

50100150200250300350

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Net debt (EUR million) Gearing (%)

40% 40% 41% 42%

34% 35% 35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Capital employed and ROCE


985 967902 877

1,239 1,240 1,214

4

22

32

48

19

5447

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15

Capital employed EBITA ROCE (before taxes and NRI), rolling 12 months

1% 2% 2%

10% 10%

12%14%

• Return on capital employed (ROCE) on an improving trend

Return on capital employed1 (ROCE), before taxes and NRI2

1) Return on capital employed (ROCE), before taxes, rolling 12 months. Carve-out figures from 2013 have been

used in calculating figures for Q1/14, Q2/14 and Q3/14.

2) NRI = non-recurring items

0

50

100

150

200

250

300

350

400

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Structure of loans and borrowings


Amount of outstanding interest-bearing debt

(EUR millions)

• Average maturity of long-term loans is 3.6 years- Average interest rate is 1.4%

Main financing sources

Back-up facilities

Interest-bearing debt EUR 399 million as at September 30, 2015

EUR 122 million

EUR 100 million

European Investment Bank

Skandinaviska Enskilda Banken

Nordic Investment Bank

Amount Lender

EUR 70 million Swedish Export Kredit

EUR 95 million

EUR 0 million

EUR 200 million domestic commercial

paper program

EUR 200 million syndicated revolving

credit facility

Amount Outstanding

EUR 10 million

Guidance and short-term market outlook

Guidance and short-term market outlook

26 October 28, 2015 © Valmet

GoodPulp and

Energy

Paper

Satisfactory

Pulp

Energy

Board and Paper

Tissue

Guidance for

2015

Services

Short-term market outlook

Guidance for 2015 (as given on February 6, 2015)

Satisfactory

Satisfactory

Good

Satisfactory

Satisfactory

Good

Weak

Good

Satisfactory

Q4/2014 Q1/2015

Satisfactory

Good

Weak

Good

Satisfactory

Q2/2015

Satisfactory

Weak

Satisfactory

Satisfactory

Q3/2015

Valmet estimates that, including the acquisition of Process Automation

Systems, net sales in 2015 will increase in comparison with 2014 (EUR

2,473 million) and EBITA before non-recurring items in 2015 will increase in

comparison with 2014 (EUR 106 million).

- Satisfactory Satisfactory SatisfactoryAutomation

Summary of Interim Review Q3/2015


Q3/2015 in brief

• Orders received increased compared with Q3/2014 in Pulp and Energy, and Paper business lines

• Net sales increased in Paper and decreased in Pulp and Energy compared with Q3/2014

Orders received and net sales increased in capital business

• Orders received remained stable compared with Q3/2014 in Services, orders received EUR 70 million

in Automation

• Net sales increased in Services compared with Q3/2014, net sales EUR 66 million in Automation

Orders received and net sales increased in stable business1

1) Stable business = Services and Automation business lines

2) EBITA = Earnings before interest, taxes and amortization and non-recurring items

• EBITA2 increased to EUR 47 million

• EBITA2-margin improved and was in the targeted range at 6.4 percent

Good development in profitability

Net debt EUR 229 million

• Gearing 28%

• Cash flow provided by operating activities EUR 16 million



Financial Statements Review 2015

February 9, 2016

www.valmet.com/investors

Upcoming site visit:

AutomationTampere, Finland

November 26, 2015

Appendix


Announced orders in 2015

Date Description Business line Country Value

Jan 23 Key board machine solutions Paper China Not disclosed

Feb 4 Flue-gas cleaning and condensation plant Pulp and Energy Finland Around EUR 8 million

Feb 17 Equipment for fluff conversion project Pulp and Energy, and Paper USA Not disclosed

Mar 2 OptiConcept M containerboard line Paper Taiwan Not disclosed

Mar 3 Softwood line rebuild Pulp and Energy Sweden Not disclosed

Mar 11 Biomass based boiler plant Pulp and Energy Finland Not disclosed

Mar 30 Tissue machine rebuild Paper Turkey Not disclosed

Apr 20 Key technologies for paper machine grade conversion Paper Finland Not disclosed

Apr 22 Key technologies to bioproduct mill Pulp and Energy Finland About EUR 125–150 million

Jun 9 Modernize automation and remote control Automation Finland Not disclosed1

Jun 16 Upgrade of the evaporation plant Pulp and Energy Sweden Not disclosed

Jun 23 Repeat order for two energy recovery systems Paper Italy and Poland Not disclosed

Jun 24 Automation to a new waste-to-energy plant Automation UK Not disclosed1

Jun 29 Two orders for automation technology Automation Finland Not disclosed1

Jun 30 OptiConcept M fine paper making line Paper Indonesia Not disclosed

Jul 6 Winding technology for paper machine grade conversion rebuild Paper Netherlands Not disclosed

Jul 7 White liquor handling system Pulp and Energy Sweden Not disclosed

Aug 18 Main equipment to a pulp mill project Pulp and Energy China Approximately EUR 110 million

Aug 20 Tissue machine rebuild Paper Germany Not disclosed

Aug 21 OptiConcept M paper making line Paper China Not disclosed

Aug 24 Analyzers and quality control system Automation Finland Not disclosed1

Aug 27 Flue gas desulphurization and denitrification installation Pulp and Energy Poland Approximately EUR 40 million

Sep 2 Automation to new power plant Automation Finland Not disclosed1

Sep 3 Advantage NTT tissue production line Paper USA Not disclosed

Sep 7 Consumables and roll service agreement Services Sweden Not disclosed

Sep 8 Automation for new-generation LNG-powered fast ferry Automation Finland Not disclosed

Sep 14 Advantage NTT tissue production line Paper Portugal Not disclosed

Sep 15 Two Advantage DCT tissue production lines Paper China Not disclosed

Sep 24 District heat network optimization and a production planning system Automation Finland Not disclosed

Oct 2 Pulp cooking system Pulp and Energy USA Not disclosed

Oct 7 Solids measurement and sludge dewatering optimizer Automation Finland Not disclosed

Oct 14 Online fiber analyzer Automation USA Not disclosed

1) Typically the order value of automation system deliveries ranges from below EUR 1 million to EUR 3 million

© Valmet32 October 28, 2015

Largest shareholders on September 30, 2015Based on the information given by Euroclear Finland Ltd.

# Shareholder name Number of shares % of shares and votes

1 Solidium Oy1 16,695,287 11.14%

2 Solero Luxco S.A.R.L 5,349,756 3.57%

3 Varma Mutual Pension Insurance Company 4,208,465 2.81%

4 Nordea Funds 3,681,332 2.46%

5 Ilmarinen Mutual Pension Insurance Company 2,980,055 1.99%

6 The State Pension Fund 1,520,000 1.01%

7 Keva 1,502,166 1.00%

8 OP Funds 1,298,549 0.87%

9 Danske Invest funds 1,269,000 0.85%

10 Mandatum Life Insurance Company Limited 1,217,307 0.81%

10 largest shareholders, total 39,721,917 26.51 %

Other shareholders 110,142,702 73.49 %

Total 149,864,619 100.00%

Largest shareholders

1) A holding company that is wholly owned by the Finnish State

• The holding of Franklin Templeton Institutional, LLC decreased on June 9, 2015 to 7,196,324 shares (previously 7,517,629

shares), corresponding to an ownership of 4.80% (previously 5.02%) of Valmet’s shares.

• The holding of Capital Partners Ltd. decreased on February 12, 2015 to 10,323,191 shares (previously 20,813,714 shares),

corresponding to an ownership of 6.89% (previously 13.89%) of Valmet’s shares.

52.1%

22.4%

11.1%

14.4%

Nominee registered and non-Finnish holders

Finnish institutions, companies and foundations

Solidium Oy

Finnish private investors


1) A holding company that is wholly owned by the Finnish State

Ownership structure on September 30, 2015

Sector Number of shareholders % of total shareholders Number of shares % of shares

Nominee registered and non-Finnish holders 293 0.6% 78,047,951 52.1%

Finnish institutions, companies and foundations 2,630 5.5% 33,564,662 22.4%

Solidium Oy10 0.0% 16,695,287 11.1%

Finnish private investors 44,984 93.9% 21,556,719 14.4%

Total 47,907 100.0% 149,864,619 100.0%

The ownership structure is based on the classification of sectors determined by Statistics Finland.


Share of non-Finnish holders and number of shareholders

47,000

49,000

51,000

53,000

55,000

57,000

59,000

44%

46%

48%

50%

52%

54%

56%

12/2

01

3

01/2

01

4

02/2

01

4

03/2

01

4

04/2

01

4

05/2

01

4

06/2

01

4

07/2

01

4

08/2

01

4

09/2

01

4

10/2

01

4

11/2

01

4

12/2

01

4

01/2

01

5

02/2

01

5

03/2

01

5

04/2

01

5

05/2

01

5

06/2

01

5

07/2

01

5

08/2

01

5

09/2

01

5

Non-Finnish holders (LHS) Total number of shareholders (RHS)

Paper, board, and tissue production trends


Source: RISI

North America (million tonnes) Europe (million tonnes)

China (million tonnes) Asia-Pacific (million tonnes)

10

20

30

40

4

6

8

10

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Tissue (LHS) Newsprint (LHS)Printing & Writing (RHS) Containerboard (RHS)Cartonboard (RHS)

10

15

20

25

30

35

40

5

7

9

11

13

15

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


5

15

25

35

45

55

2

4

6

8

10

12

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


5

10

15

20

25

30

35

40

3

4

5

6

7

8

9

10

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


Paper, board, and tissue operating rates


Source: RISI

North America Europe

China Asia-Pacific

75%

80%

85%

90%

95%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Tissue Newsprint Printing & WritingContainerboard Cartonboard

80%

85%

90%

95%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


70%

80%

90%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


75%

80%

85%

90%

95%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


Paper and board consumption growth trends


Population growth in

emerging markets is

larger than in

developed markets

Level of consumption

per capita in

emerging markets

clearly below that in

developed markets

This offers us long-

term growth potential

Paper and board consumption per capita vs. population

Average global consumption: 53 kg per capita

Source: RISI

0

500

1,000

1,500

2,000

2,500

0

50

100

150

200

250

Easte

rn E

uro

pe

We

ste

rn E

uro

pe

No

rth

Am

erica

Latin

Am

eri

ca

Ja

pa

n

Chin

a

Rest o

f A

sia

Ocea

nia

Afr

ica

Mid

dle

Ea

st

Consumption per capita, kg (LHS) Population, million (RHS)

0

5

10

15

20

25

0

500

1,000

1,500

2,000

2,500

Easte

rn E

uro

pe

We

ste

rn E

uro

pe

Nort

h A

me

rica

Latin

Am

eri

ca

Ja

pa

n

Ch

ina

Rest o

f A

sia

Ocea

nia

Afr

ica

Mid

dle

Ea

st

Population, million (LHS) Consumption per capita, kg (RHS)

Tissue consumption growth trends


New products and

consumption models

based on tissue are

helping increase

consumption in

developed markets

Consumption in

emerging markets is

still low, but growing

Offers us long-term

growth potential in

both developed and

emerging markets

Tissue consumption per capita vs. population

Average global consumption: 4.5 kg per capita

Source: RISI

0

200

400

600

800

1,000

1,200

1-D

ec-0

7

1-M

ar-

08

1-J

un-0

8

1-S

ep

-08

1-D

ec-0

8

1-M

ar-

09

1-J

un-0

9

1-S

ep

-09

1-D

ec-0

9

1-M

ar-

10

1-J

un-1

0

1-S

ep

-10

1-D

ec-1

0

1-M

ar-

11

1-J

un-1

1

1-S

ep

-11

1-D

ec-1

1

1-M

ar-

12

1-J

un-1

2

1-S

ep

-12

1-D

ec-1

2

1-M

ar-

13

1-J

un-1

3

1-S

ep

-13

1-D

ec-1

3

1-M

ar-

14

1-J

un-1

4

1-S

ep

-14

1-D

ec-1

4

1-M

ar-

15

1-J

un-1

5

1-S

ep

-15

Eucalyptus pulp (USD/t) Northern bleached softwood pulp (USD/t)Uncoated (USD/t) Copy paper (EUR/t)Testliner (EUR/t)

Pulp and paper price trends


Source: Bloomberg

0

10

20

30

40

50

60

70

80

90

100

0

20

40

60

80

100

120

140

160

180

1-Jan-10 1-Jul-10 1-Jan-11 1-Jul-11 1-Jan-12 1-Jul-12 1-Jan-13 1-Jul-13 1-Jan-14 1-Jul-14 1-Jan-15 1-Jul-15

CIF ARA steam coal (USD/t) (LHS) Brent crude oil (USD/barrel) (LHS) Natural gas spot price NBP (GBP/therm) (RHS)

0

20

40

60

80

100

120

0

20

40

60

80

100


European Energy Exchange, Phelix (EUR/MWh) (LHS) Nordpool Power (EUR/MWh) (LHS)

UK Baseload (GBP/MWh) (RHS)

Crude oil, steam coal, natural gas and electricity


Source: Bloomberg

Europe

0

1

2

3

4

5

6

7

0

20

40

60

80

100

120

140


FOB steam coal Richards Bay (USD/t) (LHS) WTI crude oil (USD/barrel) (LHS) Henry Hub gas (USD/MMBtu) (RHS)

70

75

80

85

90

0

50

100

150

200


Electricity spot price, PJM (USD/MWh) (LHS) Electricity spot price, NEPOOL (USD/MWh) (LHS)US utility capacity utilization rate (RHS)

Crude oil, steam coal, natural gas and electricity


Source: Bloomberg

United States

0

1

2

3

4

5

6

7

8

9

2-N

ov-1

2

2-D

ec-1

2

2-J

an-1

3

2-F

eb

-13

2-M

ar-

13

2-A

pr-

13

2-M

ay-1

3

2-J

un-1

3

2-J

ul-1

3

2-A

ug-1

3

2-S

ep-1

3

2-O

ct-

13

2-N

ov-1

3

2-D

ec-1

3

2-J

an-1

4

2-F

eb

-14

2-M

ar-

14

2-A

pr-

14

2-M

ay-1

4

2-J

un-1

4

2-J

ul-1

4

2-A

ug-1

4

2-S

ep-1

4

2-O

ct-

14

2-N

ov-1

4

2-D

ec-1

4

2-J

an-1

5

2-F

eb

-15

2-M

ar-

15

2-A

pr-

15

2-M

ay-1

5

2-J

un-1

5

2-J

ul-1

5

2-A

ug-1

5

2-S

ep-1

5

European Energy Exchange (EEX) spot price (EUR/t)

European Carbon Emission Allowance


Source: Bloomberg

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Documents

Strong development in orders received in China ...€¦ · • Net sales EUR 72 million in Q3/2015 - Internal net sales amounted to EUR 6 million 1) Q1/2015 orders received is calculated