Orders received continued on a good level in Paper Comparable EBITA was low

Transcription

1 Orders received continued on a good level in Paper Comparable EBITA was low Interim Review, January March 218 April 27, 218 Pasi Laine, President and CEO Kari Saarinen, CFO

2 Agenda Interim Review, January March Q1/218 in brief Development of the business lines Financial development Guidance and short-term market outlook Summary of Interim Review Q1/218 Appendix 2 April 27, 218 Valmet Interim Review, January March 218

3 Q1/218 in brief

4 Q1/218 in brief Orders received remained at the previous year s level at EUR 439 million in stable business 1 Orders received decreased to EUR 462 million in capital business 2 Net sales increased to EUR 732 million Order backlog remained at the previous year s level at EUR 2.6 billion Comparable EBITA decreased to EUR 22 million (margin 3.%) Gearing was -12% 217 financials have been restated following the adoption of IFRS 15. 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 4 April 27, 218 Valmet Interim Review, January March 218

5 Valmet in Q1/218 Orders received EUR 89 million Net sales by business line Net sales by area 11% 17% Net sales EUR 732 million 31% 34% 19% 6% Comparable EBITA EUR 22 million Comparable EBITA margin 3.% 28% 8% 48% Employees 12,31 Services Automation North America South America Pulp and Energy EMEA Paper China Asia-Pacific 5 April 27, 218 Valmet Interim Review, January March 218

6 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 Orders received decreased to EUR 89 million in Q1/218 Orders received (EUR million) Orders received in Q1/218 by area 1,4 1,2 1, 8 3,5 3, 2,5 2, China 12% Asia-Pacific 12% North America 3% ,11 1, , ,5 1, 5 EMEA 41% South America 5% Orders received (LHS) Last 4 quarters (RHS) In stable business, orders received remained at the previous year s level at EUR 428 million in Q1/218 In capital business, orders received decreased to EUR 462 million in Q1/218 EMEA and North America accounted for 71% of orders received in Q1/218 6 April 27, 218 Valmet Interim Review, January March 218

7 Stable business orders received totaled EUR 1,65 million during the last 4 quarters Orders received (EUR million) in stable business 1 6 1, ,5 1, 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 Services (LHS) Automation, total (including internal) (LHS) Last 4 quarters (RHS) In Q1/218, total orders received in stable business remained at the previous year s level 1) Including internal orders received for the Automation business line. 7 April 27, 218 Valmet Interim Review, January March 218

8 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 Order backlog at EUR 2,583 million at the end of Q1/218 Order backlog (EUR million) Structure of order backlog 3, 2,5 2, 1,972 2,46 2,312 1,998 2,64 2,28 2,117 2,74 2,27 2,16 2,192 2,283 2,74 2,714 2,72 2,458 2,583 ~3% 1,5 1, ~7% 5 Stable business Capital business Order backlog was EUR 126 million higher than at the end of Q4/217 Approximately 65% of the order backlog is currently expected to be recognized as net sales during 218 Approximately 3% of the order backlog relates to stable business 8 April 27, 218 Valmet Interim Review, January March 218

9 Development of the business lines

10 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 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 Services: Orders received and net sales remained at the previous year s level Orders received (EUR million) Net sales (EUR million) 216: EUR 1,182 million 217: EUR 1,242 million 216: EUR 1,163 million 217: EUR 1,178 million ,6 1,4 1,2 1, ,6 1,4 1,2 1, Orders received (LHS) Orders received, last 4 quarters (RHS) Net sales (LHS) Net sales, last 4 quarters (RHS) Orders received remained at the previous year s level - Orders received remained at the previous year s level in EMEA and decreased in all other regions - Orders received increased in Mill Improvements, remained at the previous year s level in Performance Parts, and Fabrics, and decreased in Energy and Environmental, and Rolls Net sales remained at the previous year s level Changes in foreign exchange rates decreased orders received by EUR 21 million and net sales by EUR 16 million 1 1) The effects of changes in foreign exchange rates are indicative only. 1 April 27, 218 Valmet Interim Review, January March 218

11 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 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 Automation 1 : Orders received increased and net sales remained at the previous year s level Orders received 2 (EUR million) Net sales 2 (EUR million) 216: EUR 337 million 217: EUR 368 million 216: EUR 316 million 217: EUR 335 million Orders received, internal (from other business lines) Orders received, external Orders received, total (including internal) Orders received, last 4 quarters (RHS) Net sales, internal (from other business lines) Net sales, external Net sales, total (including internal) Net sales, last 4 quarters (RHS) Orders received increased compared with Q1/217 - Orders received increased in Asia-Pacific, China, and EMEA, and decreased in South America and North America - Orders received increased in Energy and Process and decreased in Pulp and Paper Net sales remained at the previous year s level Changes in foreign exchange rates decreased orders received by EUR 4 million and net sales by EUR 3 million 3 1) Comments refer to orders received and net sales including also internal orders received and net sales. 2) Q1/215 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. 3) The effects of changes in foreign exchange rates are indicative only. 11 April 27, 218 Valmet Interim Review, January March 218

12 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 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 Pulp and Energy: Orders received decreased and net sales increased Orders received (EUR million) Net sales (EUR million) 216: EUR 939 million 217: EUR 678 million 216: EUR 826 million 217: EUR 8 million ,4 1, ,4 1,2 5 1, 5 1, Orders received (LHS) Orders received, last 4 quarters (RHS) Net sales (LHS) Net sales, last 4 quarters (RHS) Orders received decreased compared with Q1/217 - Orders received remained at the previous year s level in South America, and decreased in all other regions - Orders received remained at the previous year s level in Energy and decreased in Pulp Net sales increased compared with Q1/217 Changes in foreign exchange rates decreased orders received by EUR 2 million and net sales by EUR 4 million 1 A loss of EUR 15 million recognized in a project in the Pulp and Energy business line in Q1/218 1) The effects of changes in foreign exchange rates are indicative only. 12 April 27, 218 Valmet Interim Review, January March 218

13 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 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 Paper: Orders received decreased and net sales increased Orders received (EUR million) Net sales (EUR million) 216: EUR 718 million 217: EUR 1,35 million 216: EUR 647 million 217: EUR 784 million 4 1,2 4 1, , , Orders received (LHS) Orders received, last 4 quarters (RHS) Net sales (LHS) Net sales, last 4 quarters (RHS) Orders received decreased compared with Q1/217 - Orders received increased in North America, South America and China, and decreased in EMEA and Asia-Pacific - Orders received increased in Board and Paper, and decreased in Tissue Net sales increased compared with Q1/217 Changes in foreign exchange rates decreased orders received by EUR 28 million and net sales by EUR 11 million 1 1) The effects of changes in foreign exchange rates are indicative only. 13 April 27, 218 Valmet Interim Review, January March 218

14 Financial development

15 Key figures EUR million Q1/218 Q1/217 Change 217 Orders received 89 1,5-11% 3,272 Order backlog 1 2,583 2,74-4% 2,458 Net sales % 3,58 Comparable EBITA % 218 % of net sales 3.% 5.3% 7.1% EBITA % 22 Operating profit (EBIT) % 17 % of net sales 1.6% 4.5% 5.6% Earnings per share, EUR %.81 Return on capital employed (ROCE) before taxes 2 5% 1% 14% Cash flow provided by operating activities % 291 Gearing 1-12% -3% -11% Items affecting comparability: EUR -3 million in Q1/218 (EUR 3 million in Q1/217) 1) At the end of period 2) Annualized. In the calculation of 217 figures, data points from 216 that have not been restated have been used. 15 April 27, 218 Valmet Interim Review, January March 218

16 Q1/214 Q2/214 Q3/214 Q4/214 Q1/215 Q2/215 Q3/215 Q4/215 Q1/216 Q2/216 Q3/216 Q4/216 Q1/217 Q2/217 Q3/217 Q4/217 Q1/218 Q1/214 Q2/214 Q3/214 Q4/214 Q1/215 Q2/215 Q3/215 Q4/215 Q1/216 Q2/216 Q3/216 Q4/216 Q1/217 Q2/217 Q3/217 Q4/217 Q1/218 Gross profit and SG&A development Gross profit (EUR million and % of net sales) SG&A (EUR million and % of net sales) 25 25% 25 25% 2% 2 2% 2 18% 2% 15 15% 15 15% 1 1% 1 1% 5 5% 5 5% % % EUR million (LHS) % of net sales (RHS) EUR million (LHS) % of net sales (RHS) Gross profit percentage decreased compared with Q1/217 A loss of EUR 15 million was recognized in a project in the Pulp and Energy business line Capital business had a higher share of net sales in Q1/218 Selling, general & administrative (SG&A) expenses to net sales decreased compared with Q1/217 Actions to improve gross profit through Must-Win implementation 16 April 27, 218 Valmet Interim Review, January March 218

17 Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) % 5.5% % % % % % % % % % % % 6.5% % % 36 Target 8 1% Capital business Stable business Comparable EBITA %.7% 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/ Comparable EBITA (EUR million) Net sales increased and Comparable EBITA decreased compared with Q1/217 Profitability decreased due to a loss of EUR 15 million recognized in a project in the Pulp and Energy business line 17 April 27, 218 Valmet Interim Review, January March 218

18 Q1/214 Q2/214 Q3/214 Q4/214 Q1/215 Q2/215 Q3/215 Q4/215 Q1/216 Q2/216 Q3/216 Q4/216 Q1/217 Q2/217 Q3/217 Q4/217 Q1/218 Cash flow provided by operating activities Cash flow provided by operating activities (EUR million) 214: EUR 236 million 215: EUR 78 million 216: EUR 246 million 217: EUR 291 million Change in net working capital 1 EUR -2 million in Q1/218 Cash flow provided by operating activities EUR 19 million in Q1/218 CAPEX EUR 16 million in Q1/218 1) Change in net working capital in the consolidated statement of cash flows. 18 April 27, 218 Valmet Interim Review, January March 218

19 Q1/214 Q2/214 Q3/214 Q4/214 Q1/215 Q2/215 Q3/215 Q4/215 Q1/216 Q2/216 Q3/216 Q4/216 Q1/217 Q2/217 Q3/217 Q4/217 Q1/218 Net working capital at -12% of rolling 12 months orders received Net working capital and orders received (EUR million) 1,5 3% 1, 5 1,11 1, , % 1% % -1% -1, -2% Net working capital (LHS) Average net working capital/rolling 12 months orders received (RHS) Orders received (LHS) Net working capital/rolling 12 months orders received (RHS) Net working capital EUR -384 million, which equals -12% of rolling 12 months orders received Net working capital excluding non-cash net working capital impact from dividend liability. 19 April 27, 218 Valmet Interim Review, January March 218

20 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/ Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Net debt lower compared with both Q1/217 and Q4/217 Net debt (EUR million) and gearing (%) Equity to assets ratio (%) % 21% 24% 27% % % 52-3% -27 4% 31-3% % -12% 3% 2% 1% % -1% -2% -3% 45% 4% 35% 3% 25% 2% 15% 1% 5% % 42% 36% 35% 36% 38% 37% 39% 41% 41% 42% 39% Net debt Gearing Gearing (-12%) and net debt (EUR -12 million) lower than both in Q1/217 and Q4/217 Equity to assets ratio remained at the same level as in Q1/217 Automation acquisition was completed on April 1, April 27, 218 Valmet Interim Review, January March 218

21 Capital employed and Comparable ROCE Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes 1 (%) ,239 1,24 12% 1,214 1,231 14% 14% 1,184 1,194 13% 12% 1,167 14% 1,195 13% 1,112 14% 1,138 1,141 1,137 16% 14% 13% 1,33 16% Target 15 2% 1% 1% 1% 2% 2% 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 Capital employed Comparable ROCE (before taxes), rolling 12 months Target for Comparable return on capital employed (ROCE): 15 2% 1) Rolling 12 months. Carve-out figures for 213 have been used in the calculation of Q1 Q3/214 figures. In the calculation of 217 figures, data points from 216 that have not been restated have been used. 21 April 27, 218 Valmet Interim Review, January March 218

22 Guidance and short-term market outlook

23 Guidance and short-term market outlook unchanged Guidance for 218 (as announced on March 21, 218) Guidance Valmet estimates that net sales in 218 will remain at the same level as in 217 (EUR 3,58 million) and Comparable EBITA in 218 will increase in comparison with 217 (EUR 218 million). Short-term market outlook Q2/217 Q3/217 Q4/217 Q1/218 Services Good Good Good Good Automation Satisfactory Satisfactory Good Good Pulp and Energy Pulp Weak Weak Weak Weak Energy Good Satisfactory Satisfactory Satisfactory Paper Board and Paper Good Good Good Good Tissue Good Good Good Good The short-term market outlook is based on customer activity (5%) and Valmet s capacity utilization (5%) and is given for the next six months from the end of the respective quarter. The scale is weak satisfactory good. 23 April 27, 218 Valmet Interim Review, January March 218

24 Summary of Interim Review Q1/218

25 Q1/218 in brief Orders received remained at the previous year s level at EUR 439 million in stable business 1 Orders received decreased to EUR 462 million in capital business 2 Net sales increased to EUR 732 million Order backlog remained at the previous year s level at EUR 2.6 billion Comparable EBITA decreased to EUR 22 million (margin 3.%) Gearing was -12% 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 25 April 27, 218 Valmet Interim Review, January March 218

26 Appendix

27 Structure of loans and borrowings Interest-bearing debt EUR 21 million as at March 31, 218 Amount of outstanding interest-bearing debt (EUR million) Main financing sources and facilities 2 Source Amount outstanding 15 Loans from banks and financial institutions EUR 21 million 1 EUR 2 million committed syndicated revolving credit facility 1 None outstanding EUR 2 million domestic commercial paper program None outstanding 1) EUR 2 million syndicated revolving credit facility agreement matures on January 14, 223 with a 1-year extension option. Average maturity of long-term loans is 4. years - Average interest rate is 1.3% 27 April 27, 218 Valmet Interim Review, January March 218

28 Largest shareholders on March 31, 218 Based on the information given by Euroclear Finland Ltd. Largest shareholders # Shareholder name Number of shares % of shares and votes 1 Solidium Oy 1 16,695, % 2 Elo Pension Company 4,21, 2.81% 3 Varma Mutual Pension Insurance Company 4,165, % 4 Ilmarinen Mutual Pension Insurance Company 3,416, 2.28% 5 OP Funds 2,145, % 6 The State Pension Fund 1,545, 1.3% 7 Keva 1,52,166 1.% 8 Evli Funds 93,53.62% 9 Mandatum Life Insurance Company Limited 922,537.62% 1 Nordea Funds 918,24.61% 1 largest shareholders, total 36,45, % Other shareholders 113,414, % Total 149,864,619 1% 1) A holding company that is wholly owned by the Finnish State 28 April 27, 218 Valmet Interim Review, January March 218

29 Shareholder structure on March 31, % 11.1% 25.4% 5.1% 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 holders % 75,46,61 5.1% Finnish institutions, companies and foundations 2, % 38,1, % Solidium Oy 2. % 16,695, % Finnish private investors 43, % 2,13, % In the issuer account. % 8,8.% Total 45,87 1. % 149,864,619 1.% The shareholder structure is based on the classification of sectors determined by Statistics Finland. 1) Of which 73,17,718 nominee registered shares 2) A holding company that is wholly owned by the Finnish State 29 April 27, 218 Valmet Interim Review, January March 218

30 12/213 3/214 6/214 9/214 12/214 3/215 6/215 9/215 12/215 3/216 6/216 9/216 12/216 3/217 6/217 9/217 12/217 3/218 Share of non-finnish holders and number of shareholders 56% 54% 52% 5% 48% 46% 44% 42% 59, 57, 55, 53, 51, 49, 47, 45, 43, Non-Finnish holders (LHS) Total number of shareholders (RHS) 3 April 27, 218 Valmet Interim Review, January March 218

31 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 Pulp and paper price trends 1,2 1,1 1, Northern bleached softwood pulp (USD/t) Copy paper (EUR/t) Testliner (EUR/t) 31 April 27, 218 Valmet Interim Review, January March 218

32 Crude oil, steam coal, natural gas and electricity Europe Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 CIF ARA steam coal (USD/t) Brent crude oil (USD/barrel) Natural gas spot price NBP (GBP/therm) Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 European Energy Exchange, Phelix (EUR/MWh) Nordpool Power (EUR/MWh) UK Baseload (GBP/MWh) 32 April 27, 218 Valmet Interim Review, January March 218

33 Crude oil, steam coal, natural gas and electricity United States FOB steam coal Richards Bay (USD/t) (LHS) WTI crude oil (USD/barrel) (LHS) Henry Hub gas (USD/MMBtu) (RHS) Electricity spot price, PJM (USD/MWh) (LHS) US utility capacity utilization rate, % (RHS) Electricity spot price, NEPOOL (USD/MWh) (LHS) 33 April 27, 218 Valmet Interim Review, January March 218

34 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 European Carbon Emission Allowance European Energy Exchange (EEX) spot price (EUR/t) 34 April 27, 218 Valmet Interim Review, January March 218

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36 January June 218 Interim Review July 25, Save the date Valmet s Capital Markets Day September 18, 218 Helsinki, Finland 36 April 27, 218 Valmet Interim Review, January March 218

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