Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR … · 2021. 2....
Transcript of Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR … · 2021. 2....
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
February 4, 2021 © Valmet | Financial Statements Review 20204
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
February 4, 2021 © Valmet | Financial Statements Review 20205
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
February 4, 2021 © Valmet | Financial Statements Review 20207
• 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
February 4, 2021 © Valmet | Financial Statements Review 20208
• 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
February 4, 2021 © Valmet | Financial Statements Review 20209
• 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
February 4, 2021 © Valmet | Financial Statements Review 202011
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
February 4, 2021 © Valmet | Financial Statements Review 202012
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
Orders received by area
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
February 4, 2021 © Valmet | Financial Statements Review 202013
1) Comments refer to orders received and net sales including also internal orders received and internal net sales.
Net sales (EUR million)Orders received (EUR million)
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
February 4, 2021 © Valmet | Financial Statements Review 202014
Orders receivedEUR 415 million
Net sales EUR 402 million
Employees1,917
Market position#1–2 Pulp and Paper
#2–4 Energy and Process
Orders received by business
71%
29%
Pulp and Paper
Energy and Process
Orders received by area
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
February 4, 2021 © Valmet | Financial Statements Review 202015
Net sales (EUR million)Orders received (EUR million)
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
Orders received (LHS) Orders received, last 4 quarters (RHS)
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
Net sales (LHS) Net sales, last 4 quarters (RHS)
Pulp and Energy business line in 2020
February 4, 2021 © Valmet | Financial Statements Review 202016
Orders receivedEUR 934 million
Net sales EUR 1,003 million
Employees1,814
Market position#1–2 Pulp
#1–3 Energy
Orders received by business
72%
28%
Pulp
Energy
Orders received by area
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
February 4, 2021 © Valmet | Financial Statements Review 202017
Net sales (EUR million)Orders received (EUR million)
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
Orders received (LHS) Orders received, last 4 quarters (RHS)
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
Net sales (LHS) Net sales, last 4 quarters (RHS)
Paper business line in 2020
February 4, 2021 © Valmet | Financial Statements Review 202018
Orders receivedEUR 1,029 million
Net sales EUR 1,076 million
Employees3,731
Market position#1 Tissue
#1 Board
#1 Paper
Orders received by paper grade
26%
53%
21%
Tissue
Board
Paper
Orders received by area
17%
1%
24%50%
7%
North America
South America
EMEA
China
Asia-Pacific
Financial development
Q4/2020 in brief
February 4, 2021 © Valmet | Financial Statements Review 202020
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
February 4, 2021 © Valmet | Financial Statements Review 202021
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
February 4, 2021 © Valmet | Financial Statements Review 202022
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
February 4, 2021 © Valmet | Financial Statements Review 202023
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
February 4, 2021 © Valmet | Financial Statements Review 202024
• 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
February 4, 2021 © Valmet | Financial Statements Review 202025
• 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
February 4, 2021 © Valmet | Financial Statements Review 202026
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
February 4, 2021 © Valmet | Financial Statements Review 202027
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
February 4, 2021 © Valmet | Financial Statements Review 202029
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
February 4, 2021 © Valmet | Financial Statements Review 202030
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
February 4, 2021 © Valmet | Financial Statements Review 202031
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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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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February 4, 2021 © Valmet | Financial Statements Review 202032