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Valmet
Committed to moving our customers’
performance forward
Contents
Valmet in brief
Strategy and financial targets
Offering and R&D
Customer highlights
Summary
1
2
3
4
5
Valmet in brief
2015 © Valmet4
Over 200 years of industrial history
1942
Rauma-
Raahe
1951
Valmet
1968-1996
Several M&As i.e.
1986 KMW
1987 Wärtsilä paper finishing machinery
1992 Tampella Papertech
1999
Metso created
through merger of
Valmet and Rauma
Key acquisitions
2000 Beloit Technology
2006 Kvaerner Pulping
Kvaerner Power
2009 Tamfelt
End of 2013
Demerger to
Valmet and Metso
1797 Tamfelt
1841 Götaverken
1856 Tampella
1858 Beloit
1860 KMW
1868 Sunds
Defibrator
2015
Metso Process
Automation Systems
to Valmet
Key figures 2014
2015 © Valmet5
Excluding Automation business line
18%
13%
43%
11%
15%
40%
39%
21%
Services
Pulp and Energy
Paper
Net sales by
geographic area
Net sales by
business line
North America
EMEA
South America
Asia-Pacific
China
Orders received
EUR 3,071 million
Net Sales
EUR 2,473 million
EBITA before NRI (1
EUR 106 million
Employees 10,464
Market position
#1-2 Services
#1-2 Pulp
#1-3 Energy
#1-2 Paper, board, tissue
1) NRI = non-recurring items
2015 © Valmet6
18 %
12 %
44 %
11 %
15 %
North America
EMEA
South America
Asia-Pacific
China
Orders received
EUR ~3,400 million
Net sales
EUR ~2,800 million
Employees ~12,000
Market position
#1-2 Services
#1-3 Pulp and paper
automation
#1-2 Pulp
#1-3 Energy
#1-2 Paper, board, tissue
Key figures including Automation business
Based on combined illustrative figures from 2014 (1
36%
11%
35%
19%
Net sales by
business line
Services
Pulp and Energy
Paper
Automation
Net sales by
geographic area
1) Combination of Valmet and Metso Process Automation System figures for 2014
2014 - a successful first year as an independent
company
2015 © Valmet7
EUR million 2014 2013 Change
Orders received 3,071 2,182 41%
Order backlog 1,998 1,398 43%
Net sales 2,473 2,613 -5%
EBITA1 106 54 94%
% of net sales 4.3% 2.1%
Earnings per share, EUR 0.31 -0.42
Dividend per share, EUR 0.25 0.15 67%
Cash flow provided by operating activities 236 -43
Gearing at the end of period -21% 0%
1) Before non-recurring items
Unique offering covers process technology,
automation and services
 We improve our customers
performance by combining:
– Advanced pulp, paper and energy
technologies
– Process know-how, maintenance and
services
– Automation solutions
 Full scope offering is unique on the
market and differentiates Valmet
from its competitors
2015 © Valmet8
Customer
80% of Process Automation
Systems’ sales to Valmet’s current
customer industries
Global customer base
2015 © Valmet9
Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners.
Pulp Paper Energy Process
201510
Valmet location
© Valmet
• Over 100 service centers
• 80 sales offices
• 34 production units
• 15 technology centers
Strong global presence close to our customers
130 locations in 33 countries
Strong global presence provides a good platform
for growth
2015 © Valmet11
Illustrative net sales in 2014
(EUR million and % of total)
Calculated number of employees in March, 2015
(number of employees and % of total)
North America
• Large installed base to be served
• Capital project
opportunities in pulp,
energy, board, and
tissue 504
(18%)
1,355
(11%)
South America
• Services growth potential through
growing installed base
• Capital project opportunities
in pulp, tissue and
bioenergy 347
(12%)
508
(4%)
EMEA
• Large installed base to be served
• Machine closures in
printing and writing
• Capital project
opportunities in pulp,
board, tissue, and
bioenergy
1,219
(44%)
7,511
(62%)
China
• Services growth potential through
growing installed base
• Capital project opportunities
in board and tissue
293
(11%)
2,054
(17%)
Asia-Pacific
• Services growth potential through
growing installed base
• Capital project opportunities
in pulp, energy, board,
and tissue 407
(15%)
699
(6%)
Services
#1-2
Leading market position in all focus markets
2015 © Valmet
• Customers
outsource non-
core operations
• Capacity
increases in
China,
South America
and Asia-Pacific
Energy
#1-3
Board
#1-2
Paper
#1-2
Pulp
#1-2
• Growth in
energy
consumption
• Demand for
sustainable
energy
• Modernization
of aging plants
• Incentives and
regulation
• Growth in
paper, board,
and tissue
consumption
in Asia
• Need for virgin
wood pulp, as
recycling rates
can not grow
infinitely
• Increased size
of pulp lines and
mills
• World trade, e-
commerce and
emerging
markets growth
drive packaging
• Shift from
plastic
packaging to
renewable
materials
• Growth in
emerging
markets
• Rise in
purchasing
power and living
standards in
emerging
markets
Tissue
#1
Automation
#1-3
• Increasing role
of digital media
decreases
demand for
printing and
writing papers
• Some growth in
emerging
markets
• Investments in
new pulp and
paper machines
and power
plants
• Ageing
machines and
installed
automation
systems
Estimated market size for current offering (EUR)Anticipated long-term market growth
~2%
p.a.
7.5
bn
~1%
p.a.
2.0
bn
~1%
p.a.
1.4
bn
~3%
p.a.
1.0
bn
~3%
p.a.
0.6
bn
~-1%
p.a.
0.6
bn
~1%
p.a.
2.0
bn
Source: Leading consulting firms, RISI, management estimates
12
Market drivers
12,000 professionals serving customers globally
2015 © Valmet13
44 %
13 %
14 %
26 %
3 %
Systematic development
with global training
portfolio:
 Champions in Services
 Networking in
Procurement
 Leading through Lean
 Agility through Sales
 Excellence in Project
Management
 Fast Forward
 Forward Strategy
Personnel by business
line:
Other
Services
Pulp and Energy
Paper
Automation
Our operating principles and sustainability agenda
create the basis for our sustainability work
14
Operating principles
• Code of Conduct
• HSE policy
• Sustainable Supply Chain
policy
• ISO management systems
• UN Global Compact
Sustainability agenda
• Sustainable supply chain
• Health, safety and
environment
• People and performance
• Cost-effective sustainable
solutions
• Corporate citizenship
Sustainability reporting
• Annual reporting according
to global standards (GRI
G4)
• Third party assurance
• Sustainability indices (DJSI
and CDP)
2015 © Valmet
Good development in HSE key figures
15
Environmental and social
responsibility 2014 2013 Change
CO2 emissions (1,000 t) 84 100 -16%
Energy (TJ) 1,253 1,374 -9%
Waste (1,000 t) 40 32 26%
Water (1,000 m3) 3,302 3,824 -14%
Lost-time incident
frequency (LTIF)1
5.5 6.5 -15%
1) LTIF reflects the number of injuries resulting in an absence of at least one workday per million hours worked.
2015 © Valmet
Four business lines and five areas
2015 © Valmet16
North America
South America
EMEA
China
Asia-Pacific
Services
business line
Pulp and Energy
business line
Paper
business line
Automation
business line
Finance Strategy and Operational Development
Marketing and CommunicationsHuman Resources
Business
lines
Executive Team
17
Pasi Laine
President and CEO
Kari Saarinen
CFO
Julia Macharey
SVP, Human Resources
Anu Salonsaari-Posti
SVP, Marketing &
Communications
Jukka Tiitinen
Business Line President,
Services
Bertel Karlstedt
Business Line President,
Pulp and Energy
Jari Vähäpesola
Business Line President,
Paper
William Bohn
Area President, North
America
Celso Tacla
Area President, South
America
Vesa Simola
Area President, EMEA
Aki Niemi
Area President, China
Hannu T. Pietilä
Area President, Asia-Pacific
2015 © Valmet
Sakari Ruotsalainen
Business Line President,
Automation
Areas
Juha Lappalainen
SVP, Strategy and
Operational Development
Valmet’s strategy and
financial targets
Valmet’s Way Forward
Our Must-Wins
 Customer excellence
 Leader in technology
and innovation
 Excellence in
processes
 Winning team
Our Vision
To become the global
champion in serving our
customers
Our Strategy
Valmet develops and
supplies competitive
technology and services
to the pulp, paper and
energy industries.
We are committed to
moving our customers’
performance forward.
Our Mission
Converting renewable
resources into
sustainable results
Our Values create and strengthen our culture
Customers - We move our customers’ performance forward
Renewal – We promote new ideas to create the future
Excellence – We improve every day to deliver results
People – We work together to make a difference
Megatrends
 Need for renewable solutions
 Bio-economy and climate change
 Increase in standards of living
2015 © Valmet19
Key Must-Win objectives to to achieve our
strategic goals
2015 © Valmet20
• 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
Excellence
in processes
Customer
excellence
Winning
team
Dividend
policy
Financial targets
2015 © Valmet21
Profitability
Growth
ROCE
Net sales growth to exceed market growth
EBITA1 before non-recurring items: 6–9%
Return on capital employed (pre-tax),
ROCE 2: minimum of 15%
Dividend payout at least 40% of net profit
1) EBITA before non-recurring items = operating profit + amortization + non-recurring items
2) ROCE (pre-tax) = ( profit before taxes + interests and other financial expenses ) / ( balance sheet total - non-interest-bearing liabilities )
Offering and R&D
Converting renewable resources into
sustainable results
2015 © Valmet23
End-
products
Services
Automation
Technologies
Raw
materials
Customer
industries
Heat Electricity Chem pulpDiss pulp Mech pulp Paper Board Tissue
Biogas Biofuels Biochemicals New paper gradesBiomaterials
Energy production Biofuel refining Pulp Paper
Waste Recycled paper
Pulp
Agro Wood
Energy Paper
Full scope offering for the pulp and
paper industry
2015 © Valmet24
1
6
7
2
8
3
4
9
5
10
1 Wood handling
2 Heat and power
production
3 Chemical pulping
4 Chemical recovery
5 Pulp drying
6 Recycled fiber
7 Mechanical fiber
8 Stock preparation
9 Board and
paper making
10 Tissue making
Automation
• Distributed Control System
(DCS)
• Performance solutions
• Quality Control System (QCS)
• Profilers
• Analyzers and measurements
• Industrial internet solutions
• Automation services
• Process simulators
• Safety systems and solutions
Services
• Mill and plant improvements
• Spare and wear parts
• Paper machine clothing
and filter fabrics
• Roll services
• Services for evaporation
plants, power and recovery
boilers
• Services for environmental
equipment
Technologies
Our offering for energy industry and
biotechnologies
2015 © Valmet25
Automation
• Distributed Control System
(DCS)
• Performance solutions
• Analyzers and
measurements
• Industrial internet solutions
• Automation services
Services
• Plant improvements
• Rebuilds
• Performance services
• Services for environmental
equipment
• Components and spare parts
• Training
1
2
3
4
6
5
1 Fuel handling
2 Gasification
3 Boiler and flue
gas cleaning
4 Bio-oil production
5 Modularized
power plants
6 Prehydrolysis
For biofuels,
biomaterials and
biochemicals, and
bio coal production
Technologies
Our pulp and energy technology offering
2015 © Valmet26
Pulp Recovery Energy Biotechnologies
400 boilers and environmental
protection systems delivered
300 complete fiber lines and 350
recovery islands delivered
• Wood handling
systems
• Cooking systems
• Complete fiber lines
• Pulp drying systems
• Evaporation systems
• Recovery islands
• Circulating fluidized
bed boilers (CYMIC)
• Bubbling fluidized
bed boilers (HYBEX)
• Biomass and waste
gasification
• Oil and gas boilers
• Waste heat recovery
• Air pollution control
systems
• Pyrolysis solutions for
bio-oil production
• LignoBoost for lignin
extraction
• Steam treated pellets
production lines
• Biomass prehydrolysis
for further refining to
fuels or chemicals
2015 © Valmet27
Our paper technology offering
Board and paper Tissue
 Board and paper production lines
– Recycled fiber lines
– Tailor made OptiConcept machines
– OptiConcept M modularized machines
 Rebuilds
– Modernizations and grade conversions
 Stand-alone products
– From stock preparation to roll handling
Over 200 tissue lines delivered
 Tissue production lines
– Advantage DCT
– Advantage NTT
– Advantage Thru Air (TAD)
 Rebuilds
 Stand-alone products
– e.g. Yankee cylinders
Over 1,600 board and paper
machines delivered
2015 © Valmet28
Our services offering
 Mill and plant improvements
 Spare, wear and replacement parts
and equipment
 Roll services and consumables
 Paper machine clothing and filter
fabrics
 Services for evaporation plants, power
and recovery boilers
 Services for environmental equipment
 Maintenance outsourcing
Over 2,000 customer mills and plants served globally
Comprehensive life-cycle services:
Our automation offering
2015 © Valmet29
Pulp and paper Energy Oil and gas Marine
 Distributed Control System (DCS) –
Valmet DNA
 Performance solutions
 Quality Control System (QCS)
 Profilers
 Analyzers and measurements
 Industrial internet solutions
 Automation services
 Process simulators
 Safety systems and solutions
Over 4,500 automation systems and
over 40,000 analyzers and measurements delivered
Advanced automation and process monitoring solutions and services:
Valmet’s unique offering provides strong basis
for Industrial Internet
2015 © Valmet30
Process
technology
Our intelligent
machines form a good
basis for the Industial
Internet
Services
We use Industrial
Internet to bring our
unique expertise and
efficient services to our
customers
Automation
Our automation is the
secure information
platform between
people, intelligent
technologies and
services
Our unique offering is fully integrated into
Industrial Internet
2015 © Valmet31
• Distributed control systems
• Advanced process control solutions
• Quality control solutions
• Data communication
• Vision systems, instrumentation
and analyzers
Control and
instrumentation
• Process visualization
• Information and historian platform
• Energy management
• Control performance
On-site
visualization
and analytics
• Advanced Analytics
• Performance optimization
• Remote Support
• Maintenance planning
• Remote condition monitoring
Remote
Services
• Pulping and Recovery
• Heat and Power generation
• Board and Paper making
• Tissue making
Process
technology and
expertise
2015 © Valmet32
Industrial Internet and remote services offering -
today and in the near future
Offering today:
• Fully automated, intelligent machines with
connectivity for Industrial Internet
• The Valmet DNA automation platform
connects instruments, analyzers, vision
systems and process controls
• Advanced Process Control enables real time
optimization of core processes
• Expert support locally and through remote
services
• Performance optimization
and support agreements
Development in the next
few years:
• Growing fleet of intelligent machines and
mills leveraged
• More diagnostics embedded into processes
• Next generation analytics introduced to
selected processes
• Valmet DNA evolves to include virtual and
cloud-based applications and services
• Integrated customer portal and mobility
enable secure access to all information and
expertise anytime and anywhere
• Advanced benchmarking and best practice
sharing tools
Our R&D work is based on customer needs
33
Customers’ needs
• Increase production
efficiency
• Improve competitiveness
• Maximize value of raw
materials
• Widen raw material base
• Provide high-value end
products
• Develop new innovations
and technologies
Valmet’s R&D focus
• Ensure advanced and
competitive technologies
and services
• Enhance raw material,
water and energy
efficiency
• Promote renewable
materials
Valmet’s R&D resources
• 16 own R&D centers
and pilot facilities
• Annual R&D spend
about EUR 50 million
• Around 1,800 protected
innovations
• Cooperation with
universities and
research institutions
2015 © Valmet
Our R&D focus areas
 Ensure advanced and competitive technologies and services:
– We develop cost competitive, leading production and automation technologies and
services
 Enhance raw material, water and energy efficiency:
– We combine process technology, automation and services to reduce raw material,
water and energy consumption in customers’ production processes
 Promote renewable materials:
– We develop solutions to replace fossil materials with renewable ones and to produce
new higher-value end products
2015 © Valmet34
Examples of our R&D results 1(2)
2015 © Valmet35
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
Examples of our R&D results 2(2)
2015 © Valmet36
LignoBoost – lignin separation technologyHigh Power RECOX – recovery boiler
 High power production recovery boiler for pulp
production processes
 The most efficient recovery boiler in the world
– e.g. high steam values, preheating of feed water and
combustion air, flue and vent gas heat recovery
 Significant increase in electricity production
– Amount of electricity can by increased by about 20 %
 No need for fossil fuels – including star-ups and
shutdowns
 Lignin is one of woods main components with high
thermal value
 LignoBoost technology for separating lignin in
chemical pulp production process out of black liquor
– Possibility to debottleneck pulp production process
– Creating a separate product / raw material
 Lignin can be used as fuel or as a raw material for
other products and materials
First delivery to Metsä
Fibre Äänekoski project
2 Delivered plants:
Domtar and Stora Enso
Customer highlights
Recent order highlights
2015 © Valmet38
Key pulp mill technology
to OKI Pulp & Paper Mills
South Sumatra, Indonesia
Boiler plant to Turun Seudun
Energiantuotanto
Naantali, Finland
Pulp mill rebuild and new
equipment to Södra Cell
Värö, Sweden
Boiler plant to Hamburger
Hungaria Power
Dunaujvaros, Hungary
Two pulp drying lines to
Klabin Ortigueira, Paraná,
Brazil
Chemi-mechanical pulp (BCTMP) and
a board production line to Stora Enso
Beihai, Guangxi, China
Biomass based power plant to
Skövde Värmeverk
Skövde, Sweden
OptiConcept M board line
to Pratt Industries
Valparaiso, Indiana, USA
Folding boxboard line
to Metsä Board, Husum,
Sweden
Paper machine rebuild to
Stora Enso
Varkaus, Finland
Complete boiler plant, to
ArcelorMittal,
Ostrava, Czech Republic
Flue-gas cleaning system to
Helen Salmisaari CHP plant,
Helsinki, Finland
Advantage DCT tissue line
to Absormex CMPC Tissue
Mexico
Advantage NTT tissue line to
Von Drehle Corporation
Natchez, Mississippi, USA
Two Advantage DCT tissue
lines and Valmet DNA to Lee
& Man Manufacturing, China
Advantage TAD tissue line to
First Quality Tissue,
Anderson, South Carolina, USA
Pulp mill key technology to
Metsä Fibre
Äänekoski, Finland
G2 pulp cooking system to
Clearwater Paper's
Lewiston Mill, USA
Advantage NTT tissue
production line to Renova,
Torres Novas, Portugal
Multi-year consumables and roll
service agreement with Stora
Enso Kvarnsveden, Sweden
OptiConcept M paper making
line to Lee & Man
Manufacturing, Jiang Xi, China
Key technology for a pulp
mill rebuild SCA Östrand,
Sweden
Key technology to bioproduct mill
 New bioproduct mill with 1.3 million
tonnes pulp production
– EUR 1.2 billion investment is the largest
investment of the forest industry in Finland
 Valmet delivers key technology
– Recovery boiler, pulp drying line, gasification
plant, lime kiln and a mill wide Valmet DNA
automation system
– Production at the new mill is scheduled to
begin during the third quarter of 2017
 Maximized bioenergy utilization
– Lime kiln fuelled by biogas from gasification
plant
– High power features in recovery boiler
→ mill is able to sell more bioelectricity to
the market compared to own consumption
2015 © Valmet39
Metsä Fibre, Äänekoski, bioproduct mill
Finland
Photo: Metsä Group – illustration of the new bioproduct mill
Major rebuild and new equipment for a pulp mill
 Södra Cell’s Värö pulp mill
– Over EUR 400 million investment
– Production capacity increase from 425,000
tons to 700,000 tonnes per year
 Valmet delivers major rebuild and
some new equipment
– New cooking plant and upgrades of wood
handling, fiber line, evaporation plant,
recovery boiler, recausticizing, flash dryer,
pulp dryer and baling.
– Earlier also new lime kiln technology
implemented at the mill by Valmet
 Work proceeding according to
schedule – all upgrades planned to
be completed in Q3/2016
© Valmet40
Södra Cell’s Värö pulp mill
Varberg, Sweden
Photo: Ola Åkeborn / Södra
2015
Major pulp mill expansion
2015 © Valmet41
CMPC Celulose Riograndense,
Guaíba II pulp mill
Brazil
 CMPC Guaíba pulp mill second line
– Annual production capacity 1.3 million
tonnes of bleached eucalyptus market pulp
– Addition to the old fiber line of 0.5 million
tonnes
 Valmet delivered technology
– Cooking plant and fiber line, pulp drying and
baling
– Chemical recovery with evaporation, power
boiler, recovery boiler, causticizing and lime
kiln
– Non-condensable gas treatment system
 Valmet delivered automation system
– Integrated Valmet DNA automation solution
– Operator training simulator
One of the world's largest pulp mills
2015 © Valmet42
Suzano Papel e Celulose pulp mill
Imperatriz, Maranhão, Brazil
 The Suzano Maranhão pulp mill
– Annual production capacity 1.5 million
tonnes of bleached eucalyptus market pulp
 Valmet delivered complete pulp mill
technology
– Wood handling, cooking plant and fiber line,
pulp drying and baling, evaporation, power
boiler, recovery boiler, causticizing and lime
kiln
 Valmet delivered mill wide
automation system
– Integrated mill wide DCS with 40,000 I/O’s,
QCS and Profilers
– Web runnability monitoring and Condition
monitoring
OptiConcept M board production line
 New board production line started up
in 2014
– 300,000 tonnes per year
– 100% recycled fluting grades
 Valmet delivery
– OptiConcept M boardmaking line
– Complete mill engineering, installation and
supervision services related to
commissioning, testing and start-up
 Excellent combination of high quality,
productivity and low operating costs
2015 © Valmet43
Siam Kraft Industry Co., Ltd. In SCG
Paper, Bang Pong mill, PM 16
Ratchaburi, Thailand
Greenfield containerboard machine, automation
and long-term service partnership
 Greenfield containerboard mill with
annual capacity of 400,000 tonnes,
replaces 3 old mills
– New mill bring cost savings and increases
water and energy efficiency
 Extensive automation solutions
– Automation and information management
systems
– Quality Control System, profilers, analyzers
and condition monitoring system
 Long-term services partnership
– Valmet has full responsibility for mill
maintenance
– Process support agreement and
consumables contract
2015 © Valmet44
Orora, Botany B9, Board Mill
Australia
Paper machine grade conversion rebuild
 Conversion from fine paper to
lightweight containerboard grades
 Valmet delivers extensive paper
machine rebuild
– New headbox, rebuilds of forming section,
press section, dryer section, calender, reel
and winder
– Containerboard machine is scheduled to
start up during Q4/2015
 Grade conversion rebuild enables
adjusting to global market changes
– Decrease in printing and writing papers and
increase in renewable packaging board
demand
2015 © Valmet45
Stora Enso, Varkaus PM 3
Finland
Photo: Stora Enso
New machine for folding boxboard production
 Metsä Board invests in new folding
boxboard production line at Husum
mill, Sweden.
– The new machine will produce high-quality
folding boxboard with an annual capacity of
400,000 tons.
– The start-up of the machine is scheduled for
the beginning of 2016.
 Valmet delivers new technology and
rebuild of selected machine parts
– New wet end of the latest OptiConcept M
design with headboxes, forming section and
press section
– Rebuild of the off-machine coater, winder
and the roll wrapping line.
2015 © Valmet46
Metsä Board, Husum BM1
Sweden
Photo: Metsä Group
High efficiency tissue technology
Fabrica Papel de San Francisco,
Tissue mill
Mexico
201547
 New tissue production line
– Annual tissue production 30,000
tonnes
 Valmet’s Advantage NTT tissue
technology provides high quality
combined with fiber and energy
efficiency
– Flexibility between plain and textured
tissue production
– High tissue bulk and softness
properties
 Less energy consumption
compared with conventional or
structured tissue grades.
© Valmet
Automation for refineries
 Neste Oil produces renewable diesel
with NExBTL production technology
 Valmet deliveries to Singapore and
Rotterdam refineries
– Each plant is controlled by two Valmet DNA
automation systems
 Redundancy for all the major system
parts
 Integrated to safety and reporting
systems
– Field device management is controlled by
Valmet DNA Field Device Manager
 Also, Neste Oil Porvoo and Naantali
refineries in Finland are controlled by
Valmet DNA
2015 © Valmet48
Neste Oil renewable diesel refinery
Singapore
Biomass based power boiler and automation
solutions
 Biomass based combined heat and
power plant
– Valmet delivered HYBEX power boiler, flue-
gas cleaning and fuel handling systems
– Plant-wide Valmet’s automation and
information management system, BFB
combustion optimizer and fuel handling
controls
 Fully integrated information
management, environmental monitoring
and reporting
 Results reached with Valmet DNA
automation solution:
– Efficient process control, reporting and
communication
– User-friendly interface enables efficient
operations and quick decision making to
maintenance needs
2015 © Valmet49
Dalkia, Facture power plant, France
50 MW electricity and 74 MW process steam
Lingnin separation as part of pulp mill process
 LignoBoostTM lignin separation process connected to
pulp mill chemical recovery
– Lignin can be utilized as renewable fuel replacing fossil fuels and
as new bio-material for many industries
Domtar Plymouth, USA
 Annual yield of 25,000 tons lignin
– Decreased use of fossil fuel
– Increase of pulp production capacity by 5% and efficiency by off-
loading the recovery boiler
– Domtar sells recovered lignin as BioChoiceTM product
Stora Enso Sunila mill in Finland
 LignoBoost plant produces 50,000 metric tons of dried
lignin per year
2015 © Valmet50
Domtar Plymouth,
North Caroline, USA
Stora Enso Sunila, Kotka,
Finland
Gasification plant for energy production
Circulating fluidized bed (CFB) gasification
 Partial or complete fuel change in existing power plants or in
industrial furnaces – from fossil fuels to biomass
 High efficiency Waste-to-Energy technology for electricity
production
Vaskiluodon Voima combined heat and power (CHP) plant:
 The world’s biggest CFB gasification plant
– The gasifier is integrated with the existing coal-fired plant.
– Possible to replace 25-40 percent of the coal with local biomass,
mainly forest residues.
Lahti Energia, Kymijärvi II:
 Gasification plant that converts waste into product gas
– Reduction of fossil fuels and emissions
– 170,000 tonnes of coal replaced
by waste-fuelled energy
2015 © Valmet51
Vaskiluodon Voima,
Finland
Lahti Energia, Kymijärvi II,
Finland
Summary
Valmet - Summary
 A leading technology, automation and services
provider for pulp, paper, energy industries
– Unique offering with process technology, automation and
services
 12,000 professionals serving global customer base
 Net sales EUR 2.8 billion (illustrative for 2014)
– Almost half of the sales from stable Services and
Automation businesses
– Increasing demand of tissue, board, pulp and energy
creates long-term growth possibilities
 Vision to become the global champion in serving our
customers
 Delivering state of the art technology, automation and
services to customers around the world
2015 © Valmet53
Valmet general presentation

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Valmet general presentation

  • 1. Valmet Committed to moving our customers’ performance forward
  • 2. Contents Valmet in brief Strategy and financial targets Offering and R&D Customer highlights Summary 1 2 3 4 5
  • 4. 2015 © Valmet4 Over 200 years of industrial history 1942 Rauma- Raahe 1951 Valmet 1968-1996 Several M&As i.e. 1986 KMW 1987 Wärtsilä paper finishing machinery 1992 Tampella Papertech 1999 Metso created through merger of Valmet and Rauma Key acquisitions 2000 Beloit Technology 2006 Kvaerner Pulping Kvaerner Power 2009 Tamfelt End of 2013 Demerger to Valmet and Metso 1797 Tamfelt 1841 Götaverken 1856 Tampella 1858 Beloit 1860 KMW 1868 Sunds Defibrator 2015 Metso Process Automation Systems to Valmet
  • 5. Key figures 2014 2015 © Valmet5 Excluding Automation business line 18% 13% 43% 11% 15% 40% 39% 21% Services Pulp and Energy Paper Net sales by geographic area Net sales by business line North America EMEA South America Asia-Pacific China Orders received EUR 3,071 million Net Sales EUR 2,473 million EBITA before NRI (1 EUR 106 million Employees 10,464 Market position #1-2 Services #1-2 Pulp #1-3 Energy #1-2 Paper, board, tissue 1) NRI = non-recurring items
  • 6. 2015 © Valmet6 18 % 12 % 44 % 11 % 15 % North America EMEA South America Asia-Pacific China Orders received EUR ~3,400 million Net sales EUR ~2,800 million Employees ~12,000 Market position #1-2 Services #1-3 Pulp and paper automation #1-2 Pulp #1-3 Energy #1-2 Paper, board, tissue Key figures including Automation business Based on combined illustrative figures from 2014 (1 36% 11% 35% 19% Net sales by business line Services Pulp and Energy Paper Automation Net sales by geographic area 1) Combination of Valmet and Metso Process Automation System figures for 2014
  • 7. 2014 - a successful first year as an independent company 2015 © Valmet7 EUR million 2014 2013 Change Orders received 3,071 2,182 41% Order backlog 1,998 1,398 43% Net sales 2,473 2,613 -5% EBITA1 106 54 94% % of net sales 4.3% 2.1% Earnings per share, EUR 0.31 -0.42 Dividend per share, EUR 0.25 0.15 67% Cash flow provided by operating activities 236 -43 Gearing at the end of period -21% 0% 1) Before non-recurring items
  • 8. Unique offering covers process technology, automation and services  We improve our customers performance by combining: – Advanced pulp, paper and energy technologies – Process know-how, maintenance and services – Automation solutions  Full scope offering is unique on the market and differentiates Valmet from its competitors 2015 © Valmet8 Customer
  • 9. 80% of Process Automation Systems’ sales to Valmet’s current customer industries Global customer base 2015 © Valmet9 Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. Pulp Paper Energy Process
  • 10. 201510 Valmet location © Valmet • Over 100 service centers • 80 sales offices • 34 production units • 15 technology centers Strong global presence close to our customers 130 locations in 33 countries
  • 11. Strong global presence provides a good platform for growth 2015 © Valmet11 Illustrative net sales in 2014 (EUR million and % of total) Calculated number of employees in March, 2015 (number of employees and % of total) North America • Large installed base to be served • Capital project opportunities in pulp, energy, board, and tissue 504 (18%) 1,355 (11%) South America • Services growth potential through growing installed base • Capital project opportunities in pulp, tissue and bioenergy 347 (12%) 508 (4%) EMEA • Large installed base to be served • Machine closures in printing and writing • Capital project opportunities in pulp, board, tissue, and bioenergy 1,219 (44%) 7,511 (62%) China • Services growth potential through growing installed base • Capital project opportunities in board and tissue 293 (11%) 2,054 (17%) Asia-Pacific • Services growth potential through growing installed base • Capital project opportunities in pulp, energy, board, and tissue 407 (15%) 699 (6%)
  • 12. Services #1-2 Leading market position in all focus markets 2015 © Valmet • Customers outsource non- core operations • Capacity increases in China, South America and Asia-Pacific Energy #1-3 Board #1-2 Paper #1-2 Pulp #1-2 • Growth in energy consumption • Demand for sustainable energy • Modernization of aging plants • Incentives and regulation • Growth in paper, board, and tissue consumption in Asia • Need for virgin wood pulp, as recycling rates can not grow infinitely • Increased size of pulp lines and mills • World trade, e- commerce and emerging markets growth drive packaging • Shift from plastic packaging to renewable materials • Growth in emerging markets • Rise in purchasing power and living standards in emerging markets Tissue #1 Automation #1-3 • Increasing role of digital media decreases demand for printing and writing papers • Some growth in emerging markets • Investments in new pulp and paper machines and power plants • Ageing machines and installed automation systems Estimated market size for current offering (EUR)Anticipated long-term market growth ~2% p.a. 7.5 bn ~1% p.a. 2.0 bn ~1% p.a. 1.4 bn ~3% p.a. 1.0 bn ~3% p.a. 0.6 bn ~-1% p.a. 0.6 bn ~1% p.a. 2.0 bn Source: Leading consulting firms, RISI, management estimates 12 Market drivers
  • 13. 12,000 professionals serving customers globally 2015 © Valmet13 44 % 13 % 14 % 26 % 3 % Systematic development with global training portfolio:  Champions in Services  Networking in Procurement  Leading through Lean  Agility through Sales  Excellence in Project Management  Fast Forward  Forward Strategy Personnel by business line: Other Services Pulp and Energy Paper Automation
  • 14. Our operating principles and sustainability agenda create the basis for our sustainability work 14 Operating principles • Code of Conduct • HSE policy • Sustainable Supply Chain policy • ISO management systems • UN Global Compact Sustainability agenda • Sustainable supply chain • Health, safety and environment • People and performance • Cost-effective sustainable solutions • Corporate citizenship Sustainability reporting • Annual reporting according to global standards (GRI G4) • Third party assurance • Sustainability indices (DJSI and CDP) 2015 © Valmet
  • 15. Good development in HSE key figures 15 Environmental and social responsibility 2014 2013 Change CO2 emissions (1,000 t) 84 100 -16% Energy (TJ) 1,253 1,374 -9% Waste (1,000 t) 40 32 26% Water (1,000 m3) 3,302 3,824 -14% Lost-time incident frequency (LTIF)1 5.5 6.5 -15% 1) LTIF reflects the number of injuries resulting in an absence of at least one workday per million hours worked. 2015 © Valmet
  • 16. Four business lines and five areas 2015 © Valmet16 North America South America EMEA China Asia-Pacific Services business line Pulp and Energy business line Paper business line Automation business line Finance Strategy and Operational Development Marketing and CommunicationsHuman Resources
  • 17. Business lines Executive Team 17 Pasi Laine President and CEO Kari Saarinen CFO Julia Macharey SVP, Human Resources Anu Salonsaari-Posti SVP, Marketing & Communications Jukka Tiitinen Business Line President, Services Bertel Karlstedt Business Line President, Pulp and Energy Jari Vähäpesola Business Line President, Paper William Bohn Area President, North America Celso Tacla Area President, South America Vesa Simola Area President, EMEA Aki Niemi Area President, China Hannu T. Pietilä Area President, Asia-Pacific 2015 © Valmet Sakari Ruotsalainen Business Line President, Automation Areas Juha Lappalainen SVP, Strategy and Operational Development
  • 19. Valmet’s Way Forward Our Must-Wins  Customer excellence  Leader in technology and innovation  Excellence in processes  Winning team Our Vision To become the global champion in serving our customers Our Strategy Valmet develops and supplies competitive technology and services to the pulp, paper and energy industries. We are committed to moving our customers’ performance forward. Our Mission Converting renewable resources into sustainable results Our Values create and strengthen our culture Customers - We move our customers’ performance forward Renewal – We promote new ideas to create the future Excellence – We improve every day to deliver results People – We work together to make a difference Megatrends  Need for renewable solutions  Bio-economy and climate change  Increase in standards of living 2015 © Valmet19
  • 20. Key Must-Win objectives to to achieve our strategic goals 2015 © Valmet20 • 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 Excellence in processes Customer excellence Winning team
  • 21. Dividend policy Financial targets 2015 © Valmet21 Profitability Growth ROCE Net sales growth to exceed market growth EBITA1 before non-recurring items: 6–9% Return on capital employed (pre-tax), ROCE 2: minimum of 15% Dividend payout at least 40% of net profit 1) EBITA before non-recurring items = operating profit + amortization + non-recurring items 2) ROCE (pre-tax) = ( profit before taxes + interests and other financial expenses ) / ( balance sheet total - non-interest-bearing liabilities )
  • 23. Converting renewable resources into sustainable results 2015 © Valmet23 End- products Services Automation Technologies Raw materials Customer industries Heat Electricity Chem pulpDiss pulp Mech pulp Paper Board Tissue Biogas Biofuels Biochemicals New paper gradesBiomaterials Energy production Biofuel refining Pulp Paper Waste Recycled paper Pulp Agro Wood Energy Paper
  • 24. Full scope offering for the pulp and paper industry 2015 © Valmet24 1 6 7 2 8 3 4 9 5 10 1 Wood handling 2 Heat and power production 3 Chemical pulping 4 Chemical recovery 5 Pulp drying 6 Recycled fiber 7 Mechanical fiber 8 Stock preparation 9 Board and paper making 10 Tissue making Automation • Distributed Control System (DCS) • Performance solutions • Quality Control System (QCS) • Profilers • Analyzers and measurements • Industrial internet solutions • Automation services • Process simulators • Safety systems and solutions Services • Mill and plant improvements • Spare and wear parts • Paper machine clothing and filter fabrics • Roll services • Services for evaporation plants, power and recovery boilers • Services for environmental equipment Technologies
  • 25. Our offering for energy industry and biotechnologies 2015 © Valmet25 Automation • Distributed Control System (DCS) • Performance solutions • Analyzers and measurements • Industrial internet solutions • Automation services Services • Plant improvements • Rebuilds • Performance services • Services for environmental equipment • Components and spare parts • Training 1 2 3 4 6 5 1 Fuel handling 2 Gasification 3 Boiler and flue gas cleaning 4 Bio-oil production 5 Modularized power plants 6 Prehydrolysis For biofuels, biomaterials and biochemicals, and bio coal production Technologies
  • 26. Our pulp and energy technology offering 2015 © Valmet26 Pulp Recovery Energy Biotechnologies 400 boilers and environmental protection systems delivered 300 complete fiber lines and 350 recovery islands delivered • Wood handling systems • Cooking systems • Complete fiber lines • Pulp drying systems • Evaporation systems • Recovery islands • Circulating fluidized bed boilers (CYMIC) • Bubbling fluidized bed boilers (HYBEX) • Biomass and waste gasification • Oil and gas boilers • Waste heat recovery • Air pollution control systems • Pyrolysis solutions for bio-oil production • LignoBoost for lignin extraction • Steam treated pellets production lines • Biomass prehydrolysis for further refining to fuels or chemicals
  • 27. 2015 © Valmet27 Our paper technology offering Board and paper Tissue  Board and paper production lines – Recycled fiber lines – Tailor made OptiConcept machines – OptiConcept M modularized machines  Rebuilds – Modernizations and grade conversions  Stand-alone products – From stock preparation to roll handling Over 200 tissue lines delivered  Tissue production lines – Advantage DCT – Advantage NTT – Advantage Thru Air (TAD)  Rebuilds  Stand-alone products – e.g. Yankee cylinders Over 1,600 board and paper machines delivered
  • 28. 2015 © Valmet28 Our services offering  Mill and plant improvements  Spare, wear and replacement parts and equipment  Roll services and consumables  Paper machine clothing and filter fabrics  Services for evaporation plants, power and recovery boilers  Services for environmental equipment  Maintenance outsourcing Over 2,000 customer mills and plants served globally Comprehensive life-cycle services:
  • 29. Our automation offering 2015 © Valmet29 Pulp and paper Energy Oil and gas Marine  Distributed Control System (DCS) – Valmet DNA  Performance solutions  Quality Control System (QCS)  Profilers  Analyzers and measurements  Industrial internet solutions  Automation services  Process simulators  Safety systems and solutions Over 4,500 automation systems and over 40,000 analyzers and measurements delivered Advanced automation and process monitoring solutions and services:
  • 30. Valmet’s unique offering provides strong basis for Industrial Internet 2015 © Valmet30 Process technology Our intelligent machines form a good basis for the Industial Internet Services We use Industrial Internet to bring our unique expertise and efficient services to our customers Automation Our automation is the secure information platform between people, intelligent technologies and services
  • 31. Our unique offering is fully integrated into Industrial Internet 2015 © Valmet31 • Distributed control systems • Advanced process control solutions • Quality control solutions • Data communication • Vision systems, instrumentation and analyzers Control and instrumentation • Process visualization • Information and historian platform • Energy management • Control performance On-site visualization and analytics • Advanced Analytics • Performance optimization • Remote Support • Maintenance planning • Remote condition monitoring Remote Services • Pulping and Recovery • Heat and Power generation • Board and Paper making • Tissue making Process technology and expertise
  • 32. 2015 © Valmet32 Industrial Internet and remote services offering - today and in the near future Offering today: • Fully automated, intelligent machines with connectivity for Industrial Internet • The Valmet DNA automation platform connects instruments, analyzers, vision systems and process controls • Advanced Process Control enables real time optimization of core processes • Expert support locally and through remote services • Performance optimization and support agreements Development in the next few years: • Growing fleet of intelligent machines and mills leveraged • More diagnostics embedded into processes • Next generation analytics introduced to selected processes • Valmet DNA evolves to include virtual and cloud-based applications and services • Integrated customer portal and mobility enable secure access to all information and expertise anytime and anywhere • Advanced benchmarking and best practice sharing tools
  • 33. Our R&D work is based on customer needs 33 Customers’ needs • Increase production efficiency • Improve competitiveness • Maximize value of raw materials • Widen raw material base • Provide high-value end products • Develop new innovations and technologies Valmet’s R&D focus • Ensure advanced and competitive technologies and services • Enhance raw material, water and energy efficiency • Promote renewable materials Valmet’s R&D resources • 16 own R&D centers and pilot facilities • Annual R&D spend about EUR 50 million • Around 1,800 protected innovations • Cooperation with universities and research institutions 2015 © Valmet
  • 34. Our R&D focus areas  Ensure advanced and competitive technologies and services: – We develop cost competitive, leading production and automation technologies and services  Enhance raw material, water and energy efficiency: – We combine process technology, automation and services to reduce raw material, water and energy consumption in customers’ production processes  Promote renewable materials: – We develop solutions to replace fossil materials with renewable ones and to produce new higher-value end products 2015 © Valmet34
  • 35. Examples of our R&D results 1(2) 2015 © Valmet35 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
  • 36. Examples of our R&D results 2(2) 2015 © Valmet36 LignoBoost – lignin separation technologyHigh Power RECOX – recovery boiler  High power production recovery boiler for pulp production processes  The most efficient recovery boiler in the world – e.g. high steam values, preheating of feed water and combustion air, flue and vent gas heat recovery  Significant increase in electricity production – Amount of electricity can by increased by about 20 %  No need for fossil fuels – including star-ups and shutdowns  Lignin is one of woods main components with high thermal value  LignoBoost technology for separating lignin in chemical pulp production process out of black liquor – Possibility to debottleneck pulp production process – Creating a separate product / raw material  Lignin can be used as fuel or as a raw material for other products and materials First delivery to Metsä Fibre Äänekoski project 2 Delivered plants: Domtar and Stora Enso
  • 38. Recent order highlights 2015 © Valmet38 Key pulp mill technology to OKI Pulp & Paper Mills South Sumatra, Indonesia Boiler plant to Turun Seudun Energiantuotanto Naantali, Finland Pulp mill rebuild and new equipment to Södra Cell Värö, Sweden Boiler plant to Hamburger Hungaria Power Dunaujvaros, Hungary Two pulp drying lines to Klabin Ortigueira, Paraná, Brazil Chemi-mechanical pulp (BCTMP) and a board production line to Stora Enso Beihai, Guangxi, China Biomass based power plant to Skövde Värmeverk Skövde, Sweden OptiConcept M board line to Pratt Industries Valparaiso, Indiana, USA Folding boxboard line to Metsä Board, Husum, Sweden Paper machine rebuild to Stora Enso Varkaus, Finland Complete boiler plant, to ArcelorMittal, Ostrava, Czech Republic Flue-gas cleaning system to Helen Salmisaari CHP plant, Helsinki, Finland Advantage DCT tissue line to Absormex CMPC Tissue Mexico Advantage NTT tissue line to Von Drehle Corporation Natchez, Mississippi, USA Two Advantage DCT tissue lines and Valmet DNA to Lee & Man Manufacturing, China Advantage TAD tissue line to First Quality Tissue, Anderson, South Carolina, USA Pulp mill key technology to Metsä Fibre Äänekoski, Finland G2 pulp cooking system to Clearwater Paper's Lewiston Mill, USA Advantage NTT tissue production line to Renova, Torres Novas, Portugal Multi-year consumables and roll service agreement with Stora Enso Kvarnsveden, Sweden OptiConcept M paper making line to Lee & Man Manufacturing, Jiang Xi, China Key technology for a pulp mill rebuild SCA Östrand, Sweden
  • 39. Key technology to bioproduct mill  New bioproduct mill with 1.3 million tonnes pulp production – EUR 1.2 billion investment is the largest investment of the forest industry in Finland  Valmet delivers key technology – Recovery boiler, pulp drying line, gasification plant, lime kiln and a mill wide Valmet DNA automation system – Production at the new mill is scheduled to begin during the third quarter of 2017  Maximized bioenergy utilization – Lime kiln fuelled by biogas from gasification plant – High power features in recovery boiler → mill is able to sell more bioelectricity to the market compared to own consumption 2015 © Valmet39 Metsä Fibre, Äänekoski, bioproduct mill Finland Photo: Metsä Group – illustration of the new bioproduct mill
  • 40. Major rebuild and new equipment for a pulp mill  Södra Cell’s Värö pulp mill – Over EUR 400 million investment – Production capacity increase from 425,000 tons to 700,000 tonnes per year  Valmet delivers major rebuild and some new equipment – New cooking plant and upgrades of wood handling, fiber line, evaporation plant, recovery boiler, recausticizing, flash dryer, pulp dryer and baling. – Earlier also new lime kiln technology implemented at the mill by Valmet  Work proceeding according to schedule – all upgrades planned to be completed in Q3/2016 © Valmet40 Södra Cell’s Värö pulp mill Varberg, Sweden Photo: Ola Åkeborn / Södra 2015
  • 41. Major pulp mill expansion 2015 © Valmet41 CMPC Celulose Riograndense, Guaíba II pulp mill Brazil  CMPC Guaíba pulp mill second line – Annual production capacity 1.3 million tonnes of bleached eucalyptus market pulp – Addition to the old fiber line of 0.5 million tonnes  Valmet delivered technology – Cooking plant and fiber line, pulp drying and baling – Chemical recovery with evaporation, power boiler, recovery boiler, causticizing and lime kiln – Non-condensable gas treatment system  Valmet delivered automation system – Integrated Valmet DNA automation solution – Operator training simulator
  • 42. One of the world's largest pulp mills 2015 © Valmet42 Suzano Papel e Celulose pulp mill Imperatriz, Maranhão, Brazil  The Suzano Maranhão pulp mill – Annual production capacity 1.5 million tonnes of bleached eucalyptus market pulp  Valmet delivered complete pulp mill technology – Wood handling, cooking plant and fiber line, pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln  Valmet delivered mill wide automation system – Integrated mill wide DCS with 40,000 I/O’s, QCS and Profilers – Web runnability monitoring and Condition monitoring
  • 43. OptiConcept M board production line  New board production line started up in 2014 – 300,000 tonnes per year – 100% recycled fluting grades  Valmet delivery – OptiConcept M boardmaking line – Complete mill engineering, installation and supervision services related to commissioning, testing and start-up  Excellent combination of high quality, productivity and low operating costs 2015 © Valmet43 Siam Kraft Industry Co., Ltd. In SCG Paper, Bang Pong mill, PM 16 Ratchaburi, Thailand
  • 44. Greenfield containerboard machine, automation and long-term service partnership  Greenfield containerboard mill with annual capacity of 400,000 tonnes, replaces 3 old mills – New mill bring cost savings and increases water and energy efficiency  Extensive automation solutions – Automation and information management systems – Quality Control System, profilers, analyzers and condition monitoring system  Long-term services partnership – Valmet has full responsibility for mill maintenance – Process support agreement and consumables contract 2015 © Valmet44 Orora, Botany B9, Board Mill Australia
  • 45. Paper machine grade conversion rebuild  Conversion from fine paper to lightweight containerboard grades  Valmet delivers extensive paper machine rebuild – New headbox, rebuilds of forming section, press section, dryer section, calender, reel and winder – Containerboard machine is scheduled to start up during Q4/2015  Grade conversion rebuild enables adjusting to global market changes – Decrease in printing and writing papers and increase in renewable packaging board demand 2015 © Valmet45 Stora Enso, Varkaus PM 3 Finland Photo: Stora Enso
  • 46. New machine for folding boxboard production  Metsä Board invests in new folding boxboard production line at Husum mill, Sweden. – The new machine will produce high-quality folding boxboard with an annual capacity of 400,000 tons. – The start-up of the machine is scheduled for the beginning of 2016.  Valmet delivers new technology and rebuild of selected machine parts – New wet end of the latest OptiConcept M design with headboxes, forming section and press section – Rebuild of the off-machine coater, winder and the roll wrapping line. 2015 © Valmet46 Metsä Board, Husum BM1 Sweden Photo: Metsä Group
  • 47. High efficiency tissue technology Fabrica Papel de San Francisco, Tissue mill Mexico 201547  New tissue production line – Annual tissue production 30,000 tonnes  Valmet’s Advantage NTT tissue technology provides high quality combined with fiber and energy efficiency – Flexibility between plain and textured tissue production – High tissue bulk and softness properties  Less energy consumption compared with conventional or structured tissue grades. © Valmet
  • 48. Automation for refineries  Neste Oil produces renewable diesel with NExBTL production technology  Valmet deliveries to Singapore and Rotterdam refineries – Each plant is controlled by two Valmet DNA automation systems  Redundancy for all the major system parts  Integrated to safety and reporting systems – Field device management is controlled by Valmet DNA Field Device Manager  Also, Neste Oil Porvoo and Naantali refineries in Finland are controlled by Valmet DNA 2015 © Valmet48 Neste Oil renewable diesel refinery Singapore
  • 49. Biomass based power boiler and automation solutions  Biomass based combined heat and power plant – Valmet delivered HYBEX power boiler, flue- gas cleaning and fuel handling systems – Plant-wide Valmet’s automation and information management system, BFB combustion optimizer and fuel handling controls  Fully integrated information management, environmental monitoring and reporting  Results reached with Valmet DNA automation solution: – Efficient process control, reporting and communication – User-friendly interface enables efficient operations and quick decision making to maintenance needs 2015 © Valmet49 Dalkia, Facture power plant, France 50 MW electricity and 74 MW process steam
  • 50. Lingnin separation as part of pulp mill process  LignoBoostTM lignin separation process connected to pulp mill chemical recovery – Lignin can be utilized as renewable fuel replacing fossil fuels and as new bio-material for many industries Domtar Plymouth, USA  Annual yield of 25,000 tons lignin – Decreased use of fossil fuel – Increase of pulp production capacity by 5% and efficiency by off- loading the recovery boiler – Domtar sells recovered lignin as BioChoiceTM product Stora Enso Sunila mill in Finland  LignoBoost plant produces 50,000 metric tons of dried lignin per year 2015 © Valmet50 Domtar Plymouth, North Caroline, USA Stora Enso Sunila, Kotka, Finland
  • 51. Gasification plant for energy production Circulating fluidized bed (CFB) gasification  Partial or complete fuel change in existing power plants or in industrial furnaces – from fossil fuels to biomass  High efficiency Waste-to-Energy technology for electricity production Vaskiluodon Voima combined heat and power (CHP) plant:  The world’s biggest CFB gasification plant – The gasifier is integrated with the existing coal-fired plant. – Possible to replace 25-40 percent of the coal with local biomass, mainly forest residues. Lahti Energia, Kymijärvi II:  Gasification plant that converts waste into product gas – Reduction of fossil fuels and emissions – 170,000 tonnes of coal replaced by waste-fuelled energy 2015 © Valmet51 Vaskiluodon Voima, Finland Lahti Energia, Kymijärvi II, Finland
  • 53. Valmet - Summary  A leading technology, automation and services provider for pulp, paper, energy industries – Unique offering with process technology, automation and services  12,000 professionals serving global customer base  Net sales EUR 2.8 billion (illustrative for 2014) – Almost half of the sales from stable Services and Automation businesses – Increasing demand of tissue, board, pulp and energy creates long-term growth possibilities  Vision to become the global champion in serving our customers  Delivering state of the art technology, automation and services to customers around the world 2015 © Valmet53