Valmet raises its financial targets

Valmet Oyj’s stock exchange release on February 5, 2020 at 1:01 p.m. EET

Valmet’s Board of Directors has decided to raise Valmet’s financial targets for Comparable EBITA margin and return on capital employed.

Valmet’s new target for Comparable EBITA margin is 10–12% (previously 8–10%). The new target for Comparable return on capital employed (ROCE) before taxes is at least 20% (previously 15–20%). Valmet’s other financial targets remain unchanged.

Valmet's financial targets are the following (previous targets in brackets):

Net sales for stable business to grow over two times the market growth (unchanged)
Net sales for capital business to exceed market growth (unchanged)
Comparable EBITA: 10–12% (8–10%)
Comparable return on capital employed (ROCE) before taxes: at least 20% (15–20%)
Dividend payout at least 50% of net profit (unchanged)

Stable business refers to Services and Automation business lines. Capital business refers to Paper, and Pulp and Energy business lines.

Comment from Pasi Laine, President and CEO of Valmet
“Valmet’s financial development has been strong since the demerger at the end of 2013. Our Comparable EBITA margin has improved six years in a row, and in 2019 we reached our target range as the Comparable EBITA margin was 8.9 percent. The comparable ROCE exceeded our target range and amounted to 23 percent in 2019.

We have now set new financial targets to reflect our ambition to develop Valmet further. We continue to improve our performance by focusing on customer excellence, leadership in technology and innovation, excellence in processes and our people as a winning team.”

News conference and webcast for analysts, investors and media
To discuss its full year 2019 results and the new financial targets, Valmet will arrange a news conference in English for analysts, investors, and media on Wednesday, February 5, 2020 at 3:00 p.m. Finnish time (EET). The news conference will be held at Valmet Head Office in Keilaniemi, Keilasatama 5, 02150 Espoo, Finland. The news conference can also be followed through a live webcast at www.valmet.com/webcasts.

It is also possible to take part in the news conference through a conference call. Conference call participants are requested to dial in at least five minutes prior to the start of the conference, at
+44 (0) 2071 928000. The participants will be asked to provide the following conference ID: 2158826.

During the webcast and the conference call, all questions should be presented in English. After the webcast and the conference call, media has a possibility to interview the management in Finnish.

The event can also be followed on Twitter at www.twitter.com/valmetir.

Further information, please contact:
Pekka Rouhiainen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, CFO, Valmet, tel. +358 50 317 1830

VALMET

Kari Saarinen
CFO

Pekka Rouhiainen
Director, Investor Relations

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet’s strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers’ processes and enhance the effective utilization of raw materials and energy.

Valmet’s net sales in 2019 were approximately EUR 3.5 billion. Our more than 13,000 professionals around the world work close to our customers and are committed to moving our customers’ performance forward – every day. Valmet’s head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Follow Valmet IR on Twitter www.twitter.com/valmetir

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