Stock exchange release
September 3, 2013 09:32 AM EEST
Metso's Board of Directors approves the strategy, organization, and financial targets for the new Valmet Corporation*
Metso Corporation's stock exchange release on September 3, 2013 at 9:32 a.m.
In preparation for Metso's planned demerger, the Board of Directors has approved
the strategy, organization, and financial targets for the new Valmet
Valmet will focus on delivering technology and services globally to industries
that use bio-based raw materials. Valmet's vision is to become the global
champion in serving its customers, and its mission is to convert renewable
resources into sustainable results.
Valmet's main customer industries are pulp, paper, and energy. All of these are
major global industries that offer growth potential for the future. Valmet will
complement its core business by applying its technology and know-how to
industries beyond biomass, particularly in the energy sector.
Valmet's product and service portfolio consists of productivity-enhancing
services, plant upgrades and rebuilds, new cost-efficient equipment and
solutions for optimizing energy and raw material usage, and technologies
increasing the value of its customers' end-products.
Valmet's Must-Win initiatives to achieve strategic targets
Valmet will seek to achieve its strategic goals by pursuing the following Must-
1. Customer excellence
Strengthen key account management to enhance growth at the customer.
Drive service growth through long term agreements and expanded customer base.
2. Leader in technology and innovation
Develop more cost competitive and less capital intensive products.
Create new revenue from biotechnology solutions and new offering.
3. Excellence in processes
Improve health and safety.
Reduce quality costs.
Increase savings from procurement initiatives.
4. Winning team
Strengthen high-performance culture.
Continue further globalization of our capabilities to be closer to customers.
Operating model and reporting structure
Valmet's operating model will consist of three business lines, five areas, and
four support functions. The business lines will be Services, Pulp and Energy,
and Paper; and the geographical areas will be North America, South America,
EMEA, Asia-Pacific, and China. The four main support functions will be Finance,
Strategy and Operational Development, HR, and Communications and Marketing.
Valmet will report its financial results as one segment.
Metso's Board of Directors has set the following financial targets for Valmet:
* Net sales growth to exceed market growth
* EBITA before non-recurring items: 6-9%
* Return on capital employed (pre-tax), ROCE: minimum of 15%
* Dividend payout at least 40% of net profit
Comment from Pasi Laine, President and CEO of Valmet Corporation*
"Valmet's goal will be to be the global leader in serving customers in its
industries; and its core purpose to convert renewable raw materials into
"Valmet's competitiveness will be based on our leading position in providing
services and technologies for industries using bio-based raw materials. Our
comprehensive services offering, broad service network, and large installed base
will provide a solid platform for growth. We will continue to ensure our
technological leadership with focused and future-oriented R&D and accelerate the
commercialization of our innovations."
"We are committed to move our customers' performance forward; and we will
continue to develop and sustain our position as a trusted partner for our
customers. Together with our highly skilled personnel, we are committed to the
future success of Valmet and that of its customers and owners."
Valmet's Executive Management Team
Valmet Corporation's Executive Management Team* will consist of President and
CEO Pasi Laine and the heads of its business lines, geographical areas, and four
key support functions. The members of the Executive Management Team are:
Pasi Laine, President and CEO
Heads of business lines:
Jukka Tiitinen, Services
Jyrki Holmala, Pulp and Energy
Jari Vähäpesola, Paper
Heads of geographical areas:
Bill Bohn, North America
Celso Tacla, South America
Hannu Mälkiä, EMEA
Aki Niemi, China
Hannu T Pietilä, Asia-Pacific
Heads of staff functions:
Markku Honkasalo, Finance (CFO)
Kari Saarinen, Strategy and Operational Development
Julia Macharey, Human Resources
Anu Salonsaari-Posti, Marketing and Communications
*Pending the approval of the Metso EGM, to be held on October 1, 2013, and
registration of the demerger.
Metso's pulp, paper and power professionals specialize in processes, machinery,
equipment, services, paper machine clothing and filter fabrics. Our offering and
experience cover the entire process life cycle, including new production lines,
rebuilds, and services.
As of January 2014, Metso's Pulp, Paper and Power business will serve its
customers with an even more focused and competitive approach as an independent,
listed company, Valmet Corporation.*
*Pending the approval of the Metso EGM to be held on October 1, 2013, and
registration of the demerger.
Metso is a global supplier of technology and services to customers in the
process industries, including mining, construction, pulp and paper, power, and
oil and gas. Our 30,000 professionals based in over 50 countries contribute to
sustainability and deliver profitability to customers worldwide. Metso's shares
are listed on the NASDAQ OMX Helsinki Ltd.
Fu rther information, please contact:
Pasi Laine, President and CEO, Valmet Corporation *, tel. +358 20 484 3200
(after 2 p.m.)
Markku Honkasalo, CFO, Valmet Corporation*, tel. +358 50 598 8728
Anu Salonsaari-Posti, SVP, Marketing and Communications, Valmet Corporation*,
tel. +358 50 453 4262
VP, Investor Relations
NASDAQ OMX Helsinki Ltd