valmet today...new products 14% of the order intake (pulp & energy combined) mega mill...

Towards a sustainable future Valmet Customer Days 2018

Pasi LainePresident and CEO, Valmet

Valmet todayThe leading global technology and services partner

building on 220 years of industrial history

220 years of industrial history From cloth making to high-tech processes

04 October 20183

2015Metso Process

Automation Systems

to Valmet

1968–1996Several M&As:

1986 KMW

1987 Wärtsilä paper

finishing machinery

1992 Tampella

Papertech

1999Metso created through

merger of Valmet and

Rauma

Acquisitions2000 Beloit Technology

2006

Kvaerner Pulping

Kvaerner Power

2009 Tamfelt

End of 2013Demerger to

Valmet and

Metso

1797 Tampereen

Verkatehdas

1841 Götaverken

1856 Tampella

1858 Beloit

1860 KMW

1868 Sunds Defibrator

1942Rauma-

Raahe

1951Valmet

© Valmet | Customer Days 2018

Unique offering Market leadership Leader in sustainability

04 October 2018 © Valmet | Customer Days 20184

Market’s widest offering combining

process technologies, services and

automation

Research and development spend

EUR 64 million

Leading market position in all

markets

– Pulp

– Energy

– Board

– Tissue

– Paper

– Services

– Automation

Sustainability 360° agenda integrating

sustainability into our key processes

Five consecutive years in Dow Jones

Sustainability Index

Three consecutive years in Ethibel

Sustainability Index Europe

A- rating in CDP climate program 2017

Valmet today – the market leader with a unique offering

#1–2

#1–3

#1

#1

#1

#1–2

#1–3

Strong, global presence close to our customers

5

Over 120 service centers, 87 sales offices, 36 production units, 16 R&D centers, 7 Performance Centers

North America

1,223

• 17 service centers

• 7 production units

• 8 sales offices

• 1 Performance Center

Asia-Pacific

727


• 16 sales offices

EMEA

8,088

• 16 R&D centers



• 54 sales offices

• 5 global Performance

Centers

China

1,696



• 3 sales offices

• 1 Performance Center

South America

534



• 5 sales offices

Employees on December 31, 2017


Innovation and R&D People and performance Processes


MEUR 64 annual spend in R&D

New products >20% of the net sales 2017

Focus on

– Ensuring advanced and competitive

technologies and services

– Enhancing raw-material, water and

energy efficiency

– Promoting renewable materials

Continuous training of employees with

seven global training programs

Selected programs to support business-

specific competence

Learning Library for all employees

ManagerAcademy for managerial skills

development

Systematically building capabilities

globally close to our customers

Investing in new ERP and other new

business platforms

Further improving quality and project

management

Continued integration of sustainability

into key processes

Systematically building the foundation for the future

Strong customer trust on our process technologies has continued

Orders received amounting to MEUR 1,035 in 2017 (+44%)

New products 25% of the order intake

Good market activity has continued with several repeat orders

from the customers

– Containerboard and tissue are the fastest growing areas

– Demand for wider machines increasing

Industrial Internet solutions well received

Board, paper and tissue business


Market drivers

Tissue

Rise in purchasing power

and living standards

Fast growth in emerging

markets

Demand for higher quality

Board

World trade, e-commerce and

emerging markets growth drive

packaging

Demand for light weight board

Shift from plastic packaging to

renewable materials

Conversions from paper to board

Paper

Increasing role of digital media

decreases demand for print

papers

Demand for technology driven

efficiency improvements

Demand for specialty papers

Examples of repeat orders

Six containerboard production lines with

full-scope automation package for Nine

Dragons in China

Six Advantage DCT 200TS tissue making

lines and one major rebuild, in four

countries within nine years for Hayat

Kimia

Several key technology deliveries for our customers

Pulp business


Market drivers

Growth in board and tissue consumption

Need for virgin wood pulp. Decreasing

availability of recycled paper and limitations to

recycling rates

Increased size of pulp lines and mills

New applications for bio based products

Increasing environmental awareness and

stricter regulations

No mega mill investments for the past three years

Small and medium sized investments have continued their stable

development

New products 14% of the order intake (pulp & energy combined)

Mega mill investments are picking up in the coming years

Valmet’s technologies well-received in the active dissolving

pulp market

Recent customer highlights

Key technology delivery to Metsä Fibre

Äänekoski bioproduct mill successfully

completed in 2017

Large rebuilds at Södra Cell Värö and

SCA Östrand pulp mills

Energy and environmental technologies


Market drivers

Growth in energy consumption

Demand for sustainable energy and shutdowns

of coal capacity

Modernization of aging plants

Incentives and regulation

Good progress in demand for our sustainable solutions

The active market for biomass boilers has continued

Growth in Asia Pacific and China

– Business expansion in Japan through co-operation with JFE

Engineering leading into several biomass boiler orders

– Active boiler market in China

Breakthrough in marine scrubbers addressing to IMO SOx regulation

Customer highlights

The Valmet delivered new multifuel boiler plant with flue gas

cleaning systems and wide range of automation solutions at

Turun Seudun Energiantuotanto (TSE) has run with 100%

availability since 2017

Five biomass boiler projects on-going in Japan

Services


Market drivers

Increasing pulp, paper and energy production

Demand for more efficient processes, maintenance and outsourcing of non-core operations

Customers decreasing own resources

Size and gradually aging installed base, capacity increases in China, South America and

Asia-Pacific

Closures of non-competitive production lines

Last twelve months refers to the period July 1, 2017 – June 30, 2018

Well-received performance and reliability services

Services for reliability, performance and new technology

We serve our customers daily

– >500 long term agreements to deliver services

– Around 5000 on-site projects annually with 500 experts on-site daily

– Five global Performance Centers for remote support

– Two Area Performance Centers in Atlanta and Shanghai

Continued strong focus on

– Taking full advantage of digitalization

– Developing expert network globally and enhancing field services

Customer highlights

CMPC Guaiba Pulp Mill in Brazil – keeping

equipment and process running reliably since 2015

Ittihad Paper Mill in UAE – long term service

cooperation after start-up in Q4/2018

Automation

© Valmet | Customer Days 2018

Market drivers

Ageing machines and installed automation systems

Investments in new pulp and paper machines and power plants

Demand for raw material savings, process efficiencies and sustainability

Demand for Industrial Internet based solutions

Solid growth in demand in pulp, paper, energy and other process industries

Automation offering: distributed control systems (DCS), quality

management systems (QMS), analyzers and measurements

Growth through new installations and a large number of competitor

replacements

Strong R&D leading to 55% of sales coming from products

commercialized within five years

Taking consistent development steps towards the future automation

Recent customer highlights

Complete automation systems at CMPC Guaiba and Metsä

Fibre Äänekoski pulp mills

Automation for Kymijärvi III bioheating plant

Large automation system for ICT Iberica’s new tissue line

Major automation upgrades and replacements at three Metsä

Fibre mills and for several marine industry customers like

Royal Caribbean


New developments meeting the megatrends and moving your performance forward

16 technology centers at your service

We enhance your performance through upgraded pilot facilities


SundsvallFiberline and Biotechnology Center

3D printing technology Center

KarlstadCooking and Biotechnology Center

Tissue Technology Center

GothenburgEvaporator Technology

UlvilaCutter Technology

OvarFilter Fabrics R&D Center

KajaaniAutomation R&D Center

JuankoskiFabrics R&D Center

JyväskyläPaper and Board Technology

Polymer and Hard Coating

R&D Center

InkeroinenFiber Technology

JärvenpääFinishing Technology

TampereEnergy and Biotechnology R&D Center

Automation R&D Center

Fabrics R&D Center

RaisioAir Systems Technology

Flexible pilot machines

with new ways to utilize

industrial internet and

advanced automation


Our expertise and on-line

services in one platform

Four modules and more to

come

– Expert Fastlane

– Opportunities

– Learning

– Operations Panel

Customer PortalIndustrial Internet applications and services Solution Ecosystem

Data visualization, reporting and guidance

Asset reliability optimization

Operations performance optimization

Five global and two Area Performance Centers

– Remote monitoring and optimization

– On-demand expert support

– Data discovery and analysis

Leading industry players

gathered together by Valmet

– To create new value-adding

applications and services to

customers

– Current partners in the

ecosystem are Tieto, Kemira

and Energy Opticon

We transform Industrial Internet and digitalization into peak performance and excellent customer experience


Valmet DNA Automation System – The new nature of automation

We work towards the future of automation

We see

Automation utilizing web technology

Easy and secure collaboration any time, any where, with

any device

A system, that turns increasing dataflow into meaningful

information

Possibility to assign various user roles

Personalized control over processes and the whole

business

Valmet DNA Dashboards use the real-time and history data

already available in your automation system

Complements Valmet’s Industrial Internet applications and

services

Information is shown in a highly visual format – you can

immediately see what is happening at your mill or plant

Can be used stationary or with a mobile device

Meaningful information to any user group – from operators

to the CEO

Automation going to web First step: Launch of Valmet DNA Dashboards


Some of the latest examples

We develop the future process technologies

Advantage QRT and eTAD tissue

machine lines

Curtain coating enabling bio-barries

replacing plastics

2/3 layer headbox with possibility to

feed functional additives

Energy efficient sizing with hard-

cover nip rolls

Paper and Board ServicesPulp and energy Automation

RECOX+ high performance

recovery boiler concept

Compact Cooking G3

Biomass dryer and gasification for

lime kilns and Energy

Prehydrolysis for 2nd generation

ethanol

Steam explosion for bio coal

Scrubbers for marine industry

Infinicote-2 Yankee Metallizing

Refiner segment development -

Grinding Surface Galileo for

groundwood

Intelligent Roll Solutions

Fleet Management for recovery

boilers

New Valmet DNA Dashboards

Renewed QCS product family for

converting

New analyzers

Integrated operations application for

LNG terminals and distribution

management

Together we are building a sustainable future by converting renewable resources into sustainable results


valmet today...new products 14% of the order intake (pulp & energy combined) mega mill...

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