President and CEO Pasi Laine: Orders received and Comparable EBITA increased in 2022
“Valmet’s orders received increased to EUR 5.2 billion in 2022. Our order backlog amounted to EUR 4.4 billion at the end of 2022, which is EUR 307 million higher than at the end of 2021. Net sales increased and amounted to EUR 5.1 billion. Comparable EBITA increased to EUR 533 million, meaning that we have been able to increase Valmet’s Comparable EBITA nine years in a row as an independent company. Valmet’s Comparable EBITA margin decreased to 10.5 percent in 2022, as cost inflation impacted the margins. Valmet’s goal is to offset the cost
inflation through increased productivity, procurement savings and price increases.
In April, we reached a major strategic milestone when the flow control company Neles was merged into Valmet, and we welcomed about 3,000 new colleagues to the company. After the merger completion, Valmet now has a large stable business, and we provide our customers with a unique and competitive offering covering process technologies, automation systems, flow control solutions and services. We are happy with the progress of the integration and the strong start of the new Flow Control business line.
Due to the merger with Neles and good organic growth, the orders received of Valmet’s stable business, consisting of Services and Automation, increased to EUR 2.8 billion in 2022 and net sales increased to EUR 2.6 billion. Services and Automation segments contributed EUR 427 million to Valmet’s Comparable EBITA in 2022. Valmet’s stable business has several benefits: it is recurring and predictable, provides resilience to business cycles, makes Valmet’s order intake less cyclical, and the future growth possibilities are good.
Sustainability is fully integrated into Valmet’s strategy and operations through the comprehensive Sustainability 360 Agenda. In 2022, Valmet continued to receive recognition for the progress of its sustainability work in various sustainability ratings and was included for the ninth consecutive year in the Dow Jones World and Europe Sustainability Indices and received an A- leadership rating in CDP’s Climate ranking.
Global turbulence caused by the war in Ukraine and the economic and political developments is expected to continue. Past years have shown that we at Valmet can adapt well to continuous change and we will continue the work to retain our resiliency also in the future. Valmet has a unique offering supported by favorable megatrends. This gives us confidence going into 2023.”