Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR … · 2021. 2. 4. · Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR

Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR 365 million in 2020

Financial Statements Review 2020

February 4, 2021

Pasi Laine, President and CEO

Kari Saarinen, CFO

Financial Statements Review 2020

Agenda

February 4, 2021 © Valmet | Financial Statements Review 20202

1

2

4

2020 in brief

Development of the business lines

Financial development

Dividend proposal, guidance and short-term market outlook

3

2020 in brief

2020 in brief


Order backlog amounted to EUR 3.3 billion

Orders received decreased to EUR 1,962 million in capital business2

Gearing was 13%

Comparable EBITA increased to EUR 365 million and margin was 9.8%

Orders received decreased to EUR 1,772 million in stable business1

Net sales were EUR 3,740 million

PMP Group has been consolidated into Valmet’s financials as of October 1, 2020.

1) Stable business = Services business line and Automation business line. For Automation, this figure includes internal orders received from other business lines.

2) Capital business = Pulp and Energy business line and Paper business line

Valmet in 2020


Orders received by area Orders received by business lineOrders received

EUR 3,653 million

Net sales

EUR 3,740 million

Comparable EBITA

EUR 365 million

Comparable EBITA margin

9.8%

Order backlog

EUR 3,257 million

Employees

14,046

37%

9%26%

28%

Services

Automation

Pulp and Energy

Paper

17%

10%

39%

24%

10%

North America

South America

EMEA

China

Asia-Pacific

Valmet’s development since 2013

© Valmet | Financial Statements Review 20206 February 4, 2021

Orders received(EUR billion)

2013 figures on carve-out basis

Net sales(EUR billion)

Comparable EBITA(EUR million)

Comparable EBITA margin (%)

Comparable EBITA

target 10–12%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

20132014201520162017201820192020

Pulp and Energy, and Paper business linesServices and Automation business lines

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2013 2014 2015 2016 2017 2018 2019 2020

Pulp and Energy, and Paper business linesServices and Automation business lines

0

50

100

150

200

250

300

350

400

2013 2014 2015 2016 2017 2018 2019 2020

Comparable EBITA

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

20132014201520162017201820192020

Comparable EBITA margin

Orders received decreased to EUR 3,653 million in 2020


• In stable business1, orders received decreased to EUR 1,772 million in 2020

• In capital business, orders received decreased to EUR 1,962 million in 2020

• Orders received decreased in developed markets and increased in emerging markets during 2020

• South America, China and Asia-Pacific together accounted for 44% of orders received

Orders received (EUR million)

1) Including internal orders received for the Automation business line.

Orders received by area

880621

670

378

1,690

1,420

267

885

479349

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2019 2020

North AmericaSouth AmericaEMEAChinaAsia-Pacific

1,101

1,023

466 480580

781 725 793 803692

788 8571,005

796 743 727890 865 940

1,026835

1,083

1,058

1,009

1,187

826700

940

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0

Orders received (LHS) Last 4 quarters (RHS)

Stable business orders received totaled EUR 1,772 million in 2020


• Total orders received in stable business decreased by EUR 103 million in 2020

1) Including internal orders received for the Automation business line.

Orders received (EUR million) in stable business1

267 273 242 273 293 307252 267

313 321264 284

355 321 284 282346 344

300 325 358 371 335395 398

328288

342

95

78 75

81 88

8087

88103

75 101

93 102

81109

103 10497

112 116

98

81

120

267 273242

273293

402

330 342

394 409

344372

443 424

359383

439 445

381

435461 474

433

507 514

426

369

463

0

300

600

900

1,200

1,500

1,800

2,100

0

100

200

300

400

500

600

700

Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18Q1/19Q2/19Q3/19Q4/19Q1/20Q2/20Q3/20Q4/20

Services (LHS) Automation, total (including internal) (LHS) Last 4 quarters (RHS)

Order backlog EUR 3,257 million at the end of 2020


• Order backlog was EUR 54 million lower than at the end of Q3/2020 and EUR 76 million lower than at the end of 2019

• Approximately 75% of the order backlog is currently expected to be realized as net sales during 2021 (at the end of

2019, ~70% during 2020)

• Approximately 25% of the order backlog relates to stable business (~25% at the end of 2019)

Order backlog (EUR million)

Stable business

Capital business

~75%

~25%

Structure of order backlog

1,972

2,4062,312

1,9982,064

2,2082,117 2,074

2,2072,106

2,1922,283

2,704 2,714 2,720

2,4582,583 2,621

2,791 2,829

3,001

3,216

3,4253,333

3,557 3,492

3,311 3,257

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0

Development of the business lines

Services: Orders received decreased to EUR 1,356 million in 2020


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

• Orders received decreased compared with Q4/2019

- Orders received increased in China, remained at the previous year's level in South America and decreased in Asia-Pacific, EMEA and North

America

- Orders received remained at the previous year’s level in Rolls, and Fabrics and decreased in Energy and Environmental, Mill Improvements

and Performance Parts

• Net sales remained at the previous year’s level compared with Q4/2019

• COVID-19 related travel restrictions and lower capacity utilization in graphical paper mills had a negative impact on Services’ orders

received and net sales in 2020

2020:

EUR 1,356 million

2020:

EUR 1,327 million

2019:

EUR 1,459 million

2019:

EUR 1,374 million

267273

242

273293

307

252267

313321

264284

355

321

284282

346344

300325

358371

335

395398

328

288

342

0

200

400

600

800

1,000

1,200

1,400

1,600

0

50

100

150

200

250

300

350

400

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

Q4

/17

Q1

/18

Q2

/18

Q3

/18

Q4

/18

Q1

/19

Q2

/19

Q3

/19

Q4

/19

Q1

/20

Q2

/20

Q3

/20

Q4

/20

Orders received (LHS) Orders received, last 4 quarters (RHS)

224251

235

278

242

304

268

314

257

304286

316

252

302284

340

247

325

282

366

276

361336

400

295322

307

402

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

0

50

100

150

200

250

300

350

400

450

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

Q4

/17

Q1

/18

Q2

/18

Q3

/18

Q4

/18

Q1

/19

Q2

/19

Q3

/19

Q4

/19

Q1

/20

Q2

/20

Q3

/20

Q4

/20

Net sales (LHS) Net sales, last 4 quarters (RHS)

Services business line in 2020


Orders receivedEUR 1,356 million

Net sales EUR 1,327 million

Employees6,027

Market position#1–2 Services

Orders received by business

17%

25%

35%

13%

11%

Rolls

Mill Improvements

Performance Parts

Fabrics

Energy and Environmental


28%

9%

43%

10%

10%

North America

South America

EMEA

China

Asia-Pacific

Automation1: Orders received remained at the previous year’s level at EUR 415 million in 2020


1) Comments refer to orders received and net sales including also internal orders received and internal net sales.


2020:

EUR 415 million

2020:

EUR 402 million

2019:

EUR 416 million

2019:

EUR 393 million

• Orders received increased compared with Q4/2019

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

- Orders received increased in both Pulp and Paper, and Energy and Process

• Net sales remained at the previous year’s level compared with Q4/2019

• Despite COVID-19, Automation’s orders received and net sales remained at the previous year’s level in 2020

8570 67 66

82 72 78 7291

62

91 82 8470

94 9582 86 96 92 81

65

96

10

8 8 156

79 16

12

13

911 18

11

15 821 12

17 24

16

16

2495

78 7581

8880

87 88

103

75

10193

102

81

109103104

97

112116

98

81

120

0

60

120

180

240

300

360

420

480

0

20

40

60

80

100

120

140

160

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0

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

104

5976

64

106

6482 75

120

69 77 72

117

11 6

6

9

84

5

128

8

11

10

14

9

18

9

1312

17

1117

15

24

7972

101

66

8169

99

7280

68

115

69

90

73

124

73

9588

137

8094

87

141

0

60

120

180

240

300

360

420

480

0

20

40

60

80

100

120

140

160

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0

Net sales, internal (from other business lines)Net sales, externalNet sales, total (including internal)Net sales, last 4 quarters (RHS)

Automation1 business line in 2020


Orders receivedEUR 415 million

Net sales EUR 402 million

Employees1,917

Market position#1–2 Pulp and Paper

#2–4 Energy and Process


71%

29%

Pulp and Paper

Energy and Process


18%

7%

55%

12%

8%

North America

South America

EMEA

China

Asia-Pacific

1) Orders received and net sales include also internal orders received and internal net sales.

• Orders received decreased compared with Q4/2019

- Orders received increased in China and Asia-Pacific, remained at the previous year’s level in South America and decreased in

North America and EMEA

- Orders received decreased in both Pulp and Energy

• Net sales decreased compared with Q4/2019

• Pulp and Energy business line has managed challenges caused by COVID-19 well, and therefore the pandemic has not

caused major impacts on its operations in 2020

Pulp and Energy: Orders received decreased to EUR 934 million in 2020



2020:

EUR 934 million

2020:

EUR 1,003 million

2019:

EUR 1,125 million

2019 :

EUR 919 million

622

560

9666

138

259

206

261238

180

275247265

141122151

192

85

272

451

201210

395

320

376

215

52

291

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0


181229234

312

222231215245

181

262

196187189192200219203205223232

160

212231

315

240265

211

286

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0


Pulp and Energy business line in 2020


Orders receivedEUR 934 million


Employees1,814

Market position#1–2 Pulp

#1–3 Energy


72%

28%

Pulp

Energy


1%

24%

41%

23%

12%

North America

South America

EMEA

China

Asia-Pacific

• Orders received increased compared with Q4/2019

- Orders received increased in China and Asia-Pacific, remained at the previous year's level in North America, and decreased in South America and EMEA

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

• Net sales increased compared with Q4/2019

• PMP Group has been consolidated into Paper business line financials as of October 1, 2020

• Paper business line has managed challenges caused by COVID-19 well, and therefore the pandemic has not caused major impacts on its

operations in 2020

Paper: Orders received remained at the previous year’s level at EUR 1,029 million in 2020



2020:

EUR 1,029 million

2020:

EUR 1,076 million

2019:

EUR 1,043 million

2019:

EUR 913 million

212190

128142149

129

197199186

109

176

246

314

243

275

203

270

353

299

156182

419

243

199

321

201

295

211

0

150

300

450

600

750

900

1,050

1,200

0

50

100

150

200

250

300

350

400

450

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0


114108120

186

97

177185200

157165138

188

144165170

304

223237

196

280

186

246

214

267

217

255242

362

0

150

300

450

600

750

900

1,050

1,200

0

50

100

150

200

250

300

350

400

450

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

Q4/1

7

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0


Paper business line in 2020


Orders receivedEUR 1,029 million


Employees3,731

Market position#1 Tissue

#1 Board

#1 Paper

Orders received by paper grade

26%

53%

21%

Tissue

Board

Paper


17%

1%

24%50%

7%

North America

South America

EMEA

China

Asia-Pacific

Financial development

Q4/2020 in brief


Order backlog remained at the previous year’s level at EUR 3.3 billion

Orders received remained at the previous year’s level at EUR 502 million in capital business2

Gearing was 13%

Comparable EBITA increased to EUR 146 million and margin was 12.5%

Orders received decreased to EUR 463 million in stable business1

Net sales increased to EUR 1,167 million

PMP Group has been consolidated into Valmet’s financials as of October 1, 2020.

1) Stable business = Services business line and Automation business line. For Automation, this figure includes internal orders received from other business lines.

2) Capital business = Pulp and Energy business line and Paper business line


Key figures

EUR million Q4/2020 Q4/2019 Change 2020 2019 Change

Orders received 940 1,009 -7% 3,653 3,986 -8%

Order backlog1 3,257 3,333 -2% 3,257 3,333 -2%

Net sales 1,167 1,103 6% 3,740 3,547 5%

Comparable EBITA 146 118 24% 365 316 16%

% of net sales 12.5% 10.7% 9.8% 8.9%

EBITA 147 119 23% 355 315 13%

Operating profit (EBIT) 135 110 23% 319 281 13%

% of net sales 11.6% 9.9% 8.5% 7.9%

Earnings per share, EUR 0.67 0.54 24% 1.54 1.35 15%

Return on capital employed (ROCE) before taxes2 22% 23%

Cash flow provided by operating activities 114 182 -37% 532 295 81%

Gearing1 13% -9%

Items affecting comparability: EUR 0 million in Q4/2020 (EUR 1 million in Q4/2019), EUR -10 million in 2020 (EUR -1 million in 2019)

Valmet’s investment in Neles had a positive impact on EBITA of EUR 2.8 million

1) At end of period

2) Annualized

Gross profit and SG&A development


Gross profit (EUR million and % of net sales)

• Gross profit was 23.4% of net sales (23.9% in Q4/2019)− Stable business represented 44% of net sales (47% in Q4/2019)

• Selling, general & administrative (SG&A) expenses decreased 11%

− SG&A was 12% of net sales (15% in Q4/2019)

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

23%

0%

5%

10%

15%

20%

25%

30%

0

50

100

150

200

250

300

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

Q4/2

017

Q1/2

018

Q2/2

018

Q3/2

018

Q4/2

018

Q1/2

019

Q2/2

019

Q3/2

019

Q4/2

019

Q1/2

020

Q2/2

020

Q3/2

020

Q4/2

020

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

12%

0%

5%

10%

15%

20%

25%

30%

0

50

100

150

200

250

300

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

Q4/2

017

Q1/2

018

Q2/2

018

Q3/2

018

Q4/2

018

Q1/2

019

Q2/2

019

Q3/2

019

Q4/2

019

Q1/2

020

Q2/2

020

Q3/2

020

Q4/2

020

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

Target 10–12%

33

Comparable EBITA margin1 development


Net sales and Comparable EBITA, rolling 12 months (EUR million and %)1

• In Q4/2020, net sales increased and Comparable EBITA increased compared with Q4/2019

Comparable EBITA,

rolling 12 months

(EUR million)

121 153 167 182 19432 33 106 197 202 196 199 190 194 218 206 219 225 257

1) Rolling 12 months. Carve-out figures for 2013 have been used in the calculation of Q1–Q3/2014 figures. Valmet implemented IFRS 15 – Revenue from Contracts with Customers as of

January 1, 2018 by applying full retrospective method. Thus, figures presented are not fully comparable.

282 291 311 316 320 327 336 365

1,010 1,005 984 989 1,0071,127

1,2261,357 1,429 1,434 1,451 1,453 1,450 1,447 1,441 1,474 1,469 1,496 1,497 1,525 1,559 1,601 1,666 1,715 1,739 1,695 1,663 1,661

1,490 1,369 1,378 1,484 1,5081,579

1,6251,572 1,591 1,610 1,544 1,473 1,469 1,399 1,435 1,584 1,676 1,762 1,811 1,799 1,720 1,736 1,762 1,832 1,942 2,005 2,013 2,079

2,5002,374 2,363

2,473 2,5152,707

2,851 2,9283,019 3,044 2,995 2,926 2,919 2,846 2,876

3,0583,145

3,257 3,308 3,325 3,279 3,3373,429

3,5473,682 3,700 3,676 3,740

1.3% 1.3% 1.4%

4.3%

4.8%

5.6%5.9%

6.2%6.4% 6.5%

6.8% 6.7% 6.8% 6.7% 6.7%7.1%

6.6% 6.7% 6.8%

7.7%

8.6% 8.7%9.1% 8.9%

8.7% 8.8%9.1%

9.8%

Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18Q1/19Q2/19Q3/19Q4/19Q1/20Q2/20Q3/20Q4/20

Capital business, rolling12 months

Stable business, rolling12 months

Comparable EBITA %,rolling 12 months

Cash flow provided by operating activities and CAPEX


• Change in net working capital1 EUR -46 million in Q4/2020

• Cash flow provided by operating activities EUR 114 million in Q4/2020

• CAPEX2 EUR 24 million in Q4/2020

Cash flow provided by operating activities (EUR million)

Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not restated.

1) Change in net working capital in the consolidated statement of cash flows.

2) Excluding leased assets.

2014:

EUR 236 million

2016:

EUR 246 million

2015:

EUR 78 million

2017:

EUR 291 million

2018:

EUR 284 million

2019:

EUR 295 million

2020:

EUR 532 million

43 46

117

30

-20

17 1664

3 33

122

88 94

31

7889

19 3

119143

30

-44

126

182 173151

94114

-100

-50

0

50

100

150

200

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

Q4/2

01

7

Q1/2

01

8

Q2/2

01

8

Q3/2

01

8

Q4/2

01

8

Q1/2

01

9

Q2/2

01

9

Q3/2

01

9

Q4/2

01

9

Q1/2

02

0

Q2/2

02

0

Q3/2

02

0

Q4/2

02

0

Net working capital at -16% of rolling 12 months orders received


• Net working capital EUR -588 million, which equals -16% of rolling 12 months orders received

Net working capital1 and orders received (EUR million)

1) Net working capital excluding non-cash net working capital impact from dividend liability.

-235 -249 -345 -353 -317 -265 -244 -238 -194 -181 -265 -294 -378 -335 -370 -387 -384 -362 -427 -474 -459 -342 -421 -426-614 -644 -629 -588

1,1011,023

466 480580

781 725 793 803692

788 8571,005

796 743 727890 865

9401,026

835

1,0831,0581,0091,187

826700

940

-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

Q4/2

01

7

Q1/2

01

8

Q2/2

01

8

Q3/2

01

8

Q4/2

01

8

Q1/2

01

9

Q2/2

01

9

Q3/2

01

9

Q4/2

01

9

Q1/2

02

0

Q2/2

02

0

Q3/2

02

0

Q4/2

02

0

Net working capital (LHS) Orders received (LHS)

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

Net debt and gearing increased compared with Q4/2019


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

• Gearing (13%) and net debt (EUR 149 million) increased compared with Q4/2019

• Equity to assets ratio decreased compared with Q4/2019

Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not restated.

-166

178

52

-100 -102-4

-98

-219

-174

152

60

-90

-220 -223

184149

-21%

21%

6%

-11%-12%

0%

-11%

-23%

-20%

17%

6%

-9%

-22% -23%

18%

13%

-30%

-20%

-10%

0%

10%

20%

30%

-300

-200

-100

0

100

200

300

20

14

20

15

20

16

20

17

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0

Net debt Gearing

42%

36% 37%

42%39%

41%43% 43%

37% 38% 38%41% 41%

38% 38% 39%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

20

14

20

15

20

16

20

17

Q1/1

8

Q2/1

8

Q3/1

8

Q4/1

8

Q1/1

9

Q2/1

9

Q3/1

9

Q4/1

9

Q1/2

0

Q2/2

0

Q3/2

0

Q4/2

0

Capital employed and Comparable ROCE


Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes1 (%)

Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method, and IFRS 15 – Revenue from Contracts with Customers as of January 1, 2018 by applying full retrospective method.

Thus, figures presented are not fully comparable.

1) Rolling 12 months. Carve-out figures for 2013 have been used in the calculation of Q1–Q3/2014 figures.

985 967902 877

1,239 1,240 1,214 1,2311,184 1,194 1,167 1,195

1,112 1,138 1,141 1,137

1,0331,049 1,079

1,150

1,2371,195

1,2391,314

1,2561,327

1,541

1,639

1%2% 2%

10% 10%

12%

14% 14%13%

12%

14%13%

14%13%

14%16% 16%

17%18%

20%

22% 23%24% 23% 23% 23%

22%22%

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 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

Capital employed Comparable ROCE (before taxes), rolling 12 months

Dividend proposal, guidance and short-term market outlook

Dividend proposal


Dividend policy

• Dividend payout at least 50% of net profit

Dividend per share (euro)

Board of Directors’ dividend proposal to the Annual General Meeting

• EUR 0.90 per share, which represents 58% payout ratio

0.150.25

0.35 0.420.55

0.650.80

0.90

2013 2014 2015 2016 2017 2018 2019 2020(proposal by

the BoD)

Guidance and short-term market outlook


GoodPulp and Energy

Paper

Pulp

Energy

Board and Paper

Tissue

Guidance

Services

Short-term market outlook

Guidance for 2021

Good

Satisfactory

Good

Satisfactory

Satisfactory / Weak

Good

Satisfactory

Good

Satisfactory

Q1/2020 Q2/2020

Satisfactory / Weak

Good

Satisfactory

Good

Satisfactory

Q3/2020

Satisfactory / Weak

Weak

Good

Good

Q4/2020

Valmet estimates that net sales in 2021 will remain at the previous year’s level in comparison with 2020

(EUR 3,740 million) and Comparable EBITA in 2021 will remain at the previous year’s level in comparison

with 2020 (EUR 365 million).

Good / Satisfactory Good / Satisfactory Good / Satisfactory GoodAutomation

The short-term market outlook is based on customer activity (50%) and Valmet’s capacity utilization (50%) and is given for the next six months from the end of the respective quarter. The scale is ‘weak–satisfactory–good’.

Satisfactory / Weak


Interim Review January–March 2021

April 22, 2021

www.valmet.com/investors

Capital Markets Day 2021

March 10, 2021 1 pm - 4.30 pm EET

www.valmet.com/investors

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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

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Documents

Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR … · 2021. 2. 4. · Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR