Reports and presentations

Interim Review January-March 2022

Presentation

Webcast

Transcript

Key figures (excel)

Q1/2022 in brief

• Orders received remained at previous year’s level at EUR 1,324 million
• Net sales increased to EUR 960 million
• Order backlog amounted to EUR 4,459 million
• Comparable EBITA remained at previous year’s level at EUR 79 million and margin was 8.3%
• Gearing was 0%

President and CEO Pasi Laine: Orders received remained at the previous year’s record-high level in the first quarter

"Valmet’s orders received remained at the previous year’s level and amounted to EUR 1,324 million in the first quarter of 2022. This is a good achievement, as orders received were record high also in the comparison period. Orders received increased in Automation and Services segments, and decreased in the Process Technologies segment. Our order backlog increased to EUR 4,459 million, which is EUR 362 million higher than at the end of 2021.

Net sales increased and Comparable EBITA remained at the previous year’s level. Despite the increase in net sales, Comparable EBITA margin decreased. Comparable EBITA increased in Automation, and decreased in Services and Process Technologies. The availability of certain components has reduced and costs increased, which impacted margins. Furthermore, Valmet’s SG&A costs increased. Valmet’s goal is to offset the cost inflation at least partly through increased productivity, procurement savings and strict price discipline.

In March, we received all competition approvals for the merger of Neles into Valmet and the merger was completed on April 1, 2022. Valmet now has a unique, even stronger offering for global process industries and a solid platform for further business growth especially in automation systems and flow control solutions. From the beginning of the merger process, we have had a strong view on the excellent long-term value potential to the shareholders, the industrial logic and synergy potential. With our team of 17,000 professionals around the world we will now work together in realizing these targets.

To better highlight the performance of Valmet’s businesses, we have decided to change our financial reporting structure. Valmet now consists of three segments: Services, Automation and Process Technologies. Earlier Valmet reported its profitability only on group level, but now we publish the Comparable EBITA and certain other financial figures also for the three segments."