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Orders received increased in Paper and Services –Comparable EBITA increased
Half Year Financial Review,
January–June 2018
July 25, 2018
Pasi Laine, President and CEO
Kari Saarinen, CFO
Half Year Financial Review, January–June 2018
Agenda
July 25, 2018 © Valmet | Half Year Financial Review, January–June 20182
1
2
3
5
6
4
Q2/2018 in brief
Development of the business lines
Financial development
Summary of Q2/2018
Appendix
Guidance and short-term market outlook
Q2/2018 in brief
Q2/2018 in brief
July 25, 2018 © Valmet | Half Year Financial Review, January–June 20184
Order backlog remained at the previous year’s level at EUR 2.6 billion
Orders received increased to EUR 438 million in capital business2
2017 financials have been restated following the adoption of IFRS 15.
1) Stable business = Services business line and Automation business line. For Automation, this figure includes internal orders received from other business lines.
2) Capital business = Pulp and Energy business line and Paper business line
Gearing was 0%
Comparable EBITA increased to EUR 61 million and margin was 7.2%
Orders received increased to EUR 445 million in stable business1
Net sales increased to EUR 844 million
Valmet in Q2/2018
July 25, 2018 © Valmet | Half Year Financial Review, January–June 20185
Orders received by area Orders received by business lineOrders received
EUR 865 million
Net sales
EUR 844 million
Comparable EBITA
EUR 61 million
Comparable EBITA margin
7.2%
Employees
12,668
40%
10%10%
41%
Services
Automation
Pulp and Energy
Paper
15%
7%
49%
23%
6%
North America
South America
EMEA
China
Asia-Pacific
1,1011,023
466 480580
781 725 793 803692
788 8571,005
796 743 727890 865
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0
200
400
600
800
1,000
1,200
1,400
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
Orders received (LHS) Last 4 quarters (RHS)
Orders received increased to EUR 865 million in Q2/2018
July 25, 2018 © Valmet | Half Year Financial Review, January–June 20186
• In stable business, orders received increased to EUR 445 million in Q2/2018
• In capital business, orders received increased to EUR 438 million in Q2/2018
• EMEA and North America accounted for 67% of orders received during first half of the year
Orders received (EUR million) Orders received in Q1–Q2/2018 by area
North America
23%
South America
6%
EMEA45%
China17%
Asia-Pacific9%
267 273 242 273 293 307252 267
313 321264 284
355321
284 282346 344
95
78 75
81 88
8087
88103
75 101
93 102
267 273242
273293
402
330 342
394 409
344372
443424
359383
439 445
0
300
600
900
1,200
1,500
1,800
0
100
200
300
400
500
600
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
Services (LHS) Automation, total (including internal) (LHS) Last 4 quarters (RHS)
Stable business orders received totaled EUR 1,626 million during the last four quarters
July 25, 2018 © Valmet | Half Year Financial Review, January–June 20187
• In Q2/2018, total orders received in stable business increased
1) Including internal orders received for the Automation business line.
Orders received (EUR million) in stable business1
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
0
500
1,000
1,500
2,000
2,500
3,000
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
Order backlog at EUR 2,621 million at the end of Q2/2018
July 25, 2018 © Valmet | Half Year Financial Review, January–June 20188
• Order backlog was EUR 37 million higher than at the end of Q1/2018
• Approximately 55% of the order backlog is currently expected to be recognized as net sales during 2018
• Approximately 30% of the order backlog relates to stable business
Order backlog (EUR million)
~30%
~70%
Stable business Capital business
Structure of order backlog
Development of the business lines
267 273242
273293
307
252267
313 321
264284
355321
284 282
346 344
0
200
400
600
800
1,000
1,200
1,400
1,600
0
50
100
150
200
250
300
350
400
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
Orders received (LHS) Orders received, last 4 quarters (RHS)
224251
235
278
242
304
268
314
257
304286
316
252
302284
340
247
325
0
200
400
600
800
1,000
1,200
1,400
1,600
0
50
100
150
200
250
300
350
400
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
Net sales (LHS) Net sales, last 4 quarters (RHS)
Services: Orders received and net sales increased
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201810
Net sales (EUR million)Orders received (EUR million)
• Orders received increased compared with Q2/2017
- Orders received increased in EMEA and China, remained at the previous year’s level in North America and decreased
in South America and Asia-Pacific
- Orders received increased in Performance Parts, Rolls, and Energy and Environmental, and remained at the previous
year’s level in Mill Improvements, and Fabrics
• Net sales increased compared with Q2/2017
Q1–Q2/2018:
EUR 690 million
Q1–Q2/2018:
EUR 572 million
Q1–Q2/2017:
EUR 676 million
Q1–Q2/2017:
EUR 554 million
Automation1: Orders received remained at the previous years level and net sales increased
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201811
1) Comments refer to orders received and net sales including also internal orders received and net sales.2) Q1/2015 orders received and the underlying figures for ‘Orders received, last 4 quarters’ and ‘Net sales, last 4 quarters’ are calculated based on Metso’s reported figures and pro forma figures excluding Process Automation Systems and are
therefore indicative only.
Net sales2 (EUR million)Orders received2 (EUR million)
Q1–Q2/2018:
EUR 195 million
Q1–Q2/2018:
EUR 159 million
Q1–Q2/2017:
EUR 192 million
Q1–Q2/2017:
EUR 152 million
• Orders received remained at the previous year’s level
- Orders received increased in South America, remained at the previous year’s level in EMEA and Asia-Pacific, and
decreased in China and North America
- Orders received increased in Energy and Process and decreased in Pulp and Paper
• Net sales increased compared with Q2/2017
6285
70 67 6682
72 78 7291
62
91 82 84
10
8 8 156
79 16
12
13
911
18
62
95
78 7581
8880
87 88
103
75
10193
102
0
75
150
225
300
375
450
0
20
40
60
80
100
120
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
Orders received, internal (from other business lines)Orders received, externalOrders received, total (including internal)Orders received, last 4 quarters (RHS)
5568 66
95
5873 65
94
5973
60
104
5976
11 6
6
9
84
5
12
8
8
11
10
14
55
7972
101
66
81
69
99
7280
68
115
69
90
0
75
150
225
300
375
450
0
20
40
60
80
100
120
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
Net sales, internal (from other business lines)Net sales, externalNet sales, total (including internal)Net sales, last 4 quarters (RHS)
622
560
9666
138
259206
261 238180
275247 265
141 122151
192
85
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
Orders received (LHS) Orders received, last 4 quarters (RHS)
181229 234
312
222 231 215245
181
262
196 187 189 192 200 219 203 205
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
Net sales (LHS) Net sales, last 4 quarters (RHS)
• Orders received decreased compared with Q2/2017
- Orders received increased in North America, and decreased in the other regions
- Orders received increased in Pulp and decreased in Energy
• Net sales increased compared with Q2/2017
Pulp and Energy: Orders received decreased and net sales increased
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201812
Net sales (EUR million)Orders received (EUR million)
Q1–Q2/2018:
EUR 278 million
Q1–Q2/2018:
EUR 408 million
Q1–Q2/2017:
EUR 406 million
Q1–Q2/2017:
EUR 381 million
212190
128142 149
129
197 199 186
109
176
246
314
243275
203
270
353
0
150
300
450
600
750
900
1,050
1,200
0
50
100
150
200
250
300
350
400
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
Orders received (LHS) Orders received, last 4 quarters (RHS)
114 108 120
186
97
177 185200
157 165138
188
144165 170
304
223237
0
150
300
450
600
750
900
1,050
1,200
0
50
100
150
200
250
300
350
400
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
Net sales (LHS) Net sales, last 4 quarters (RHS)
• Orders received increased compared with Q2/2017
- Orders received increased in South America, EMEA and China, remained at the previous year’s level in North
America, and decreased in Asia-Pacific
- Orders received increased in Board and Paper, and decreased in Tissue
• Net sales increased compared with Q2/2017
Paper: Orders received and net sales increased
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201813
Net sales (EUR million)Orders received (EUR million)
Q1–Q2/2018:
EUR 623 million
Q1–Q2/2018:
EUR 460 million
Q1–Q2/2017:
EUR 557 million
Q1–Q2/2017:
EUR 310 million
Financial development
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201815
Key figures
EUR million Q2/2018 Q2/2017 Change Q1–Q2/2018 Q1–Q2/2017 Change
Orders received 865 796 9% 1,756 1,802 -3%
Order backlog1 2,621 2,714 -3% 2,621 2,714 -3%
Net sales 844 732 15% 1,575 1,376 14%
Comparable EBITA 61 48 27% 82 82 1%
% of net sales 7.2% 6.5% 5.2% 5.9%
EBITA 57 47 22% 76 84 -10%
Operating profit (EBIT) 49 39 27% 61 68 -10%
% of net sales 5.9% 5.3% 3.9% 4.9%
Earnings per share, EUR 0.23 0.18 32% 0.29 0.30 -4%
Return on capital employed (ROCE) before taxes2 11% 11%
Cash flow provided by operating activities 3 31 -91% 22 125 -83%
Gearing1 0% 4%
Items affecting comparability: EUR -4 million in Q2/2018 (EUR -1 million in Q2/2017), EUR -7 million in Q1–Q2/2018 (EUR 2 million in Q1–Q2/2017)
1) At the end of period
2) Annualized. In the calculation of 2017 figures, data points from 2016 that have not been restated have been used.
23%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
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
EUR million (LHS) % of net sales (RHS)
16%
0%
5%
10%
15%
20%
25%
0
50
100
150
200
250
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
EUR million (LHS) % of net sales (RHS)
Gross profit and SG&A development
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201816
Gross profit (EUR million and % of net sales)
• Gross profit was 23% of net sales (24% in Q2/2017)
− Capital business had a higher share of net sales in Q2/2018
• Selling, general & administrative (SG&A) expenses increased by EUR 1 million
− SG&A was 16% of net sales (19% in Q2/2017)
SG&A (EUR million and % of net sales)
224251 235
278242
371334
409
314377
351411
311374
345
444
306
401
295337 354
498319
408400
445
338427
334375
333357
370
523
426
442
519
588 590
777
561
779734
854
652
804
685
785
645
732 715
967
732
844
0.7%
3.7%5.5%
6.1%
3.5%
6.9%6.4%
7.3%
4.8%
7.1%
7.5%
7.2%5.3% 6.5%
7.8%
8.4%
3.0%
7.2%
Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18
Capital business
Stable business
Comparable EBITA %
Target 8–10%
Comparable EBITA margin development
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201817
Net sales and Comparable EBITA (EUR million and %)
• Net sales and Comparable EBITA increased compared with Q2/2017
- Profitability improved due to higher net sales
Comparable EBITA
(EUR million)19 54 47 63 314 22 32 48 57 52 56 34 48 56 81 22 61
43 46
117
30
-20
17 16
64
333
122
88 94
31
7889
19 3
-40
-20
0
20
40
60
80
100
120
140
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
Cash flow provided by operating activities
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201818
• Change in net working capital1 EUR -27 million in Q2/2018
• Cash flow provided by operating activities EUR 3 million in Q2/2018
• CAPEX EUR 20 million in Q2/2018
Cash flow provided by operating activities (EUR million)
1) Change in net working capital in the consolidated statement of cash flows.
2016:
EUR 246 million
2014:
EUR 236 million
2015:
EUR 78 million
2017:
EUR 291 million
Q1–Q2/2018:
EUR 22 million
-235 -249 -345 -353 -317 -265 -244 -238 -194 -181 -265 -294 -378 -335 -370 -387 -384 -362
1,1011,023
466 480580
781 725 793 803692
788 8571,005
796 743 727890 865
-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
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 working capital at -11% of rolling 12 months orders received
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201819
• Net working capital EUR -362 million, which equals -11% of rolling 12 months orders received
Net working capital and orders received (EUR million)
Net working capital excluding non-cash net working capital impact from dividend liability.
-166
178 192
231
126
52
-27
31
-30-100 -102
-4
-21%
21%24%
27%
15%
6%
-3%
4%
-3%
-11% -12%
0%
-30%
-20%
-10%
0%
10%
20%
30%
-300
-200
-100
0
100
200
300
20
14
20
15
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
Net debt Gearing
42%
36% 35% 36%38% 37%
39%41% 41% 42%
39%41%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
20
14
20
15
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
Net debt decreased compared with Q2/2017
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201820
Net debt (EUR million) and gearing (%) Equity to assets ratio (%)
• Gearing (0%) and net debt (EUR -4 million) increased compared with Q1/2018 due to dividend payout of EUR 82 million
• Equity to assets ratio remained at the same level as in Q2/2017
Automation acquisition was completed on April 1, 2015.
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
1,033 1,049
1%2% 2%
10% 10%
12%
14% 14%13%
12%
14%13%
14%13%
14%
16%
16%17%
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
Capital employed Comparable ROCE (before taxes), rolling 12 months
Target
15–20%
Capital employed and Comparable ROCE
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201821
• Target for Comparable return on capital employed (ROCE): 15–20%
Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes1 (%)
1) Rolling 12 months. Carve-out figures for 2013 have been used in the calculation of Q1–Q3/2014 figures. In the calculation of 2017 figures, data points from 2016 that have not been restated have been used.
Guidance and short-term market outlook
Guidance and short-term market outlook
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201823
WeakPulp and Energy
Paper
Good
Pulp
Energy
Board and Paper
Tissue
Guidance
Services
Short-term market outlook
Guidance for 2018 (as announced on July 17, 2018)
Weak
Satisfactory
Good
Good
Good
Weak
Satisfactory
Good
Good
Q3/2017 Q4/2017
Good
Weak
Satisfactory
Good
Good
Q1/2018
Good
Satisfactory
Good
Good
Q2/2018
Valmet estimates that net sales in 2018 will increase in comparison with 2017 (EUR 3,058 million) and
Comparable EBITA in 2018 will increase in comparison with 2017 (EUR 218 million).
Satisfactory Good Good 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’.
Summary of Q2/2018
Q2/2018 in brief
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201825
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
Order backlog remained at the previous year’s level at EUR 2.6 billion
Orders received increased to EUR 438 million in capital business2
Gearing was 0%
Comparable EBITA increased to EUR 61 million and margin was 7.2%
Orders received increased to EUR 445 million in stable business1
Net sales increased to EUR 844 million
Appendix
Interest-bearing debt EUR 201 million as at June 30, 2018
Structure of loans and borrowings
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201827
Amount of outstanding interest-bearing debt
(EUR million)
• Average maturity of long-term loans is 3.7 years- Average interest rate is 1.3%
Loans from banks and
financial institutions
EUR 200 millioncommitted syndicated revolving
credit facility1
EUR 201 million
None outstanding
None outstanding
Source Amount outstanding
EUR 200 milliondomestic commercial
paper program
1) EUR 200 million syndicated revolving credit facility agreement matures on
January 14, 2023 with a 1-year extension option.
Main financing sources and facilities
0
50
100
150
200
250
2017 2018 2019 2020 2021 2022 2023 2024 2025
Based on the information given by Euroclear Finland Ltd.
Largest shareholders on June 30, 2018
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201828
# Shareholder name Number of shares % of shares and votes
1 Solidium Oy1 16,695,287 11.14%
2 Varma Mutual Pension Insurance Company 4,165,465 2.78%
3 Elo Pension Company 3,600,000 2.40%
4 Ilmarinen Mutual Pension Insurance Company 3,416,000 2.28%
5 OP Funds 2,305,691 1.54%
6 The State Pension Fund 1,545,000 1.03%
7 Keva 1,502,166 1.00%
8 Nordea Funds 1,181,077 0.79%
9 Evli Funds 1,147,326 0.77%
10 Mandatum Life Insurance Company Limited 1,022,537 0.68%
10 largest shareholders, total 36,580,549 24.41%
Other shareholders 113,284, 070 75.59%
Total 149,864,619 100%
Largest shareholders
1) A holding company that is wholly owned by the Finnish State
Shareholder structure on June 30, 2018
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201829
1) Of which 71,699,313 nominee registered shares
2) A holding company that is wholly owned by the Finnish State
The shareholder structure is based on the classification of sectors determined by Statistics Finland.
Sector Number of shareholders % of total shareholders Number of shares % of shares
Nominee registered and non-Finnish holders1 329 0.7% 74,166,597 49.5%
Finnish institutions, companies and foundations 2,414 5.3% 38,846,778 25.9%
Solidium Oy2 0 0.0% 16,695,287 11.1%
Finnish private investors 43,085 94.0% 20,147,877 13.4%
On the issuer account 0 0.0% 8,080 0.0%
Total 45,828 100.0 % 149,864,619 100.0%
Nominee registered and non-Finnish holders 49.5%
Solidium Oy 11.1%
Finnish private investors 13.4%
Finnish institutions, companies and foundations 25.9%
Share of non-Finnish holders and number of shareholders
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201830
43,000
45,000
47,000
49,000
51,000
53,000
55,000
57,000
59,000
42%
44%
46%
48%
50%
52%
54%
56%
01/2
01
4
04/2
01
4
07/2
01
4
10/2
01
4
01/2
01
5
04/2
01
5
07/2
01
5
10/2
01
5
01/2
01
6
04/2
01
6
07/2
01
6
10/2
01
6
01/2
01
7
04/2
01
7
07/2
01
7
10/2
01
7
01/2
01
8
04/2
01
8
Non-Finnish holders (LHS) Total number of shareholders (RHS)
Pulp and paper price trends
Source: Bloomberg
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201831
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300Ja
n-1
3
Mar-
13
May-1
3
Jul-
13
Sep-1
3
Nov-
13
Jan
-14
Mar-
14
May-1
4
Jul-
14
Sep-1
4
Nov-
14
Jan
-15
Mar-
15
May-1
5
Jul-
15
Sep-1
5
Nov-
15
Jan
-16
Mar-
16
May-1
6
Jul-
16
Sep-1
6
Nov-
16
Jan
-17
Mar-
17
May-1
7
Jul-
17
Sep-1
7
Nov-
17
Jan
-18
Mar-
18
May-1
8
Jul-
18
Northern bleached softwood pulp (USD/t) Copy paper (EUR/t) Testliner (EUR/t)
Europe
Crude oil, steam coal, natural gas and electricity
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201832
0
20
40
60
80
100
120
140
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
CIF ARA steam coal (USD/t) Brent crude oil (USD/barrel) Natural gas spot price NBP (GBP/therm)
-20
0
20
40
60
80
100
Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18
European Energy Exchange, Phelix (EUR/MWh) Nordpool Power (EUR/MWh) UK Baseload (GBP/MWh)
United States
Crude oil, steam coal, natural gas and electricity
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201833
1
2
3
4
5
6
20
40
60
80
100
120
FOB steam coal Richards Bay (USD/t) (LHS) WTI crude oil (USD/barrel) (LHS) Henry Hub gas (USD/MMBtu) (RHS)
65
70
75
80
85
0
50
100
150
200
250
Electricity spot price, PJM (USD/MWh) (LHS) Electricity spot price, NEPOOL (USD/MWh) (LHS) US utility capacity utilization rate, % (RHS)
European Carbon Emission Allowance
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201834
0
2
4
6
8
10
12
14
16
18
Jan-1
3
Ma
r-1
3
Ma
y-13
Jul-1
3
Sep
-13
Nov-1
3
Jan-1
4
Ma
r-1
4
Ma
y-14
Jul-1
4
Sep
-14
Nov-1
4
Jan-1
5
Ma
r-1
5
Ma
y-15
Jul-1
5
Sep
-15
Nov-1
5
Jan-1
6
Ma
r-1
6
Ma
y-16
Jul-1
6
Sep
-16
Nov-1
6
Jan-1
7
Ma
r-1
7
Ma
y-17
Jul-1
7
Sep
-17
Nov-1
7
Jan-1
8
Ma
r-1
8
Ma
y-18
Jul-1
8
European Energy Exchange (EEX) spot price (EUR/t)
Important notice
July 25, 2018 © Valmet | Half Year Financial Review, January–June 201835
IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Valmet (the “Company”) or any person on behalf of the Company, and any question-and-answer session
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July 25, 2018 © Valmet | Half Year Financial Review, January–June 201836
January–September 2018 Interim Review
October 23, 2018
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