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EUR million | 2022 | 2021 | 2020 |
Orders received | 5,194 | 4,740 | 3,653 |
Order backlog2 | 4,403 | 4,096 | 3,257 |
Net sales | 5,074 | 3,935 | 3,740 |
Comparable earnings before interest, taxes and amortization (Comparable EBITA) | 533 | 429 | 365 |
% of net sales | 10.5% | 10.9% | 9.8% |
Earnings before interest, taxes and amortization (EBITA) | 550 | 448 | 355 |
% of net sales | 10.8% | 11.4% | 9.5% |
Operating profit (EBIT) | 436 | 399 | 319 |
% of net sales | 8.6% | 10.1% | 8.5% |
Profit before taxes | 431 | 395 | 307 |
Profit for the period | 338 | 296 | 231 |
Earnings per share, EUR | 1.92 | 1.98 | 1.54 |
Earnings per share, diluted, EUR | 1.92 | 1.98 | 1.54 |
Adjusted earnings per share, EUR3 | 2.37 | 2.09 | 1.64 |
Equity per share2, EUR | 13.55 | 8.87 | 7.60 |
Dividend per share, EUR | 1.304 | 1.20 | 0.90 |
Cash flow provided by operating activities | 36 | 482 | 532 |
Cash flow after investments | 56 | 382 | -60 |
Return on equity (ROE) | 18% | 24% | 21% |
Return on capital employed (ROCE) before taxes | 18% | 24% | 22% |
Equity to assets ratio2 | 49% | 42% | 39% |
Gearing2 | 20% | -7% | 13% |
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Orders received, EUR million | 2022 | 2021 | Change |
Services | 1,756 | 1,481 | 19% |
Automation | 1,081 | 467 | >100% |
Flow Control | 576 | — | |
Automation Systems | 505 | 467 | 8% |
Process Technologies | 2,356 | 2,793 | -16% |
Pulp and Energy | 1,072 | 1,160 | -8% |
Paper | 1,285 | 1,634 | -21% |
Total | 5,194 | 4,740 | 10% |
Orders received, comparable foreign exchange rates, EUR million1 | 2022 | 2021 | Change |
Services | 1,679 | 1,481 | 13% |
Automation | 1,021 | 467 | >100% |
Flow Control | 530 | — | |
Automation Systems | 491 | 467 | 5% |
Process Technologies | 2,319 | 2,793 | -17% |
Pulp and Energy | 1,072 | 1,160 | -8% |
Paper | 1,247 | 1,634 | -24% |
Total | 5,018 | 4,740 | 6% |
Orders received, EUR million | 2022 | 2021 | Change |
North America | 1,260 | 725 | 74% |
South America | 353 | 696 | -49% |
EMEA | 2,098 | 2,022 | 4% |
China | 711 | 755 | -6% |
Asia-Pacific | 771 | 544 | 42% |
Total | 5,194 | 4,740 | 10% |
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As at Dec 31, | |||
Order backlog, EUR million | 2022 | 2021 | Change |
Total | 4,403 | 4,096 | 7% |
Net sales, EUR million | 2022 | 2021 | Change |
Services | 1,606 | 1,360 | 18% |
Automation | 1,040 | 412 | >100% |
Flow Control | 551 | — | |
Automation Systems | 489 | 412 | 19% |
Process Technologies | 2,428 | 2,163 | 12% |
Pulp and Energy | 1,081 | 1,022 | 6% |
Paper | 1,347 | 1,141 | 18% |
Total | 5,074 | 3,935 | 29% |
Net sales, comparable foreign exchange rates, EUR million1 | 2022 | 2021 | Change |
Services | 1,538 | 1,360 | 13% |
Automation | 983 | 412 | >100% |
Flow Control | 510 | — | |
Automation Systems | 473 | 412 | 15% |
Process Technologies | 2,375 | 2,163 | 10% |
Pulp and Energy | 1,070 | 1,022 | 5% |
Paper | 1,305 | 1,141 | 14% |
Total | 4,897 | 3,935 | 24% |
Net sales, EUR million | 2022 | 2021 | Change |
North America | 1,058 | 780 | 36% |
South America | 718 | 384 | 87% |
EMEA | 1,876 | 1,614 | 16% |
China | 829 | 780 | 6% |
Asia-Pacific | 593 | 377 | 57% |
Total | 5,074 | 3,935 | 29% |
Comparable EBITA, EUR million | 2022 | 2021 | Change |
Services | 237 | 204 | 16% |
Automation | 190 | 79 | >100% |
Process Technologies | 145 | 175 | -17% |
Other | -39 | -30 | 30% |
Total | 533 | 429 | 24% |
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Comparable EBITA, % of net sales | 2022 | 2021 |
Services | 14.8% | 15.0% |
Automation | 18.3% | 19.2% |
Process Technologies | 6.0% | 8.1% |
Total | 10.5% | 10.9% |
Services segment | 2022 | 2021 | Change |
Orders received (EUR million) | 1,756 | 1,481 | 19% |
Net sales (EUR million) | 1,606 | 1,360 | 18% |
Comparable EBITA (EUR million) | 237 | 204 | 16% |
Comparable EBITA, % | 14.8% | 15.0% | |
Personnel (end of period) | 6,307 | 5,958 | 6% |
Automation segment | 2022 | 2021 | Change |
Orders received (EUR million) | 1,081 | 467 | >100% |
Net sales (EUR million) | 1,040 | 412 | >100% |
Comparable EBITA (EUR million) | 190 | 79 | >100% |
Comparable EBITA, % | 18.3% | 19.2% | |
Personnel (end of period) | 4,842 | 1,986 | >100% |
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Flow Control business line | 2022 | 2021 | Change |
Orders received (EUR million) | 576 | — | |
Net sales (EUR million) | 551 | — | |
Personnel (end of period) | 2,792 | — |
Automation Systems business line | 2022 | 2021 | Change |
Orders received (EUR million) | 505 | 467 | 8% |
Net sales (EUR million) | 489 | 412 | 19% |
Personnel (end of period) | 2,050 | 1,986 | 3% |
Process Technologies segment | 2022 | 2021 | Change |
Orders received (EUR million) | 2,356 | 2,793 | -16% |
Net sales (EUR million) | 2,428 | 2,163 | 12% |
Comparable EBITA (EUR million) | 145 | 175 | -17% |
Comparable EBITA, % | 6.0% | 8.1% | |
Personnel (end of period) | 5,647 | 5,654 | 0% |
Pulp and Energy business line | 2022 | 2021 | Change |
Orders received (EUR million) | 1,072 | 1,160 | -8% |
Net sales (EUR million) | 1,081 | 1,022 | 6% |
Personnel (end of period) | 1,892 | 1,946 | -3% |
Paper business line | 2022 | 2021 | Change |
Orders received (EUR million) | 1,285 | 1,634 | -21% |
Net sales (EUR million) | 1,347 | 1,141 | 18% |
Personnel (end of period) | 3,755 | 3,708 | 1% |
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As at Dec 31, | |||
Personnel by business line | 2022 | 2021 | Change |
Services | 6,307 | 5,958 | 6% |
Automation | 4,842 | 1,986 | >100% |
Flow Control | 2,792 | — | |
Automation Systems | 2,050 | 1,986 | 3% |
Process Technologies | 5,647 | 5,654 | 0% |
Pulp and Energy | 1,892 | 1,946 | -3% |
Paper | 3,755 | 3,708 | 1% |
Other | 752 | 648 | 16% |
Total | 17,548 | 14,246 | 23% |
As at Dec 31, | |||
Personnel by area | 2022 | 2021 | Change |
North America | 2,040 | 1,500 | 36% |
South America | 833 | 604 | 38% |
EMEA | 10,787 | 9,296 | 16% |
China | 2,323 | 1,911 | 22% |
Asia-Pacific | 1,565 | 935 | 67% |
Total | 17,548 | 14,246 | 23% |
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Financial targets |
•Net sales for Services and Automation segments to grow over two times the market growth |
•Net sales for Process Technologies segment to exceed market growth |
•Comparable EBITA: 12–14% |
•Comparable return on capital employed (ROCE) before taxes: at least 15% |
•Dividend payout at least 50% of net profit |
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CO2 emissions from energy consumption in own operations1 | Orders received from new products and services2 | Number of internal audits performed | Sponsorships and donations |
New direct suppliers screened over sustainability3 | Employees completed Valmet's Code of Conduct training4 | Employees covered by collective bargaining agreements | Workforce represented in formal management-worker health and safety committees |
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Number of employees by employment contract and gender1 | ||||||
Female | Male | Total | ||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
Permanent | 3,185 | 2,529 | 12,595 | 10,344 | 15,781 | 12,874 |
Temporary | 508 | 414 | 1,259 | 958 | 1,767 | 1,372 |
Total | 3,693 | 2,943 | 13,854 | 11,302 | 17,548 | 14,246 |
Number of permanent employees by employment type and gender1 | ||||||
Female | Male | Total | ||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
Full-time | 3,066 | 2,427 | 12,441 | 10,227 | 15,508 | 12,655 |
Part-time | 119 | 102 | 154 | 117 | 273 | 219 |
Total | 3,185 | 2,529 | 12,595 | 10,344 | 15,781 | 12,874 |
Workforce by geography and gender1 | ||||||
Female | Male | Total | ||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |
North America | 338 | 204 | 1,701 | 1,296 | 2,040 | 1,500 |
South America | 163 | 118 | 670 | 486 | 833 | 604 |
EMEA | 2,443 | 2,068 | 8,344 | 7,227 | 10,787 | 9,296 |
China | 551 | 442 | 1,772 | 1,469 | 2,323 | 1,911 |
Asia-Pacific | 198 | 111 | 1,367 | 824 | 1,565 | 935 |
Total | 3,693 | 2,943 | 13,854 | 11,302 | 17,548 | 14,246 |
Workforce by region and employee contract | |||
Regular 2022 | Fixed term 2022 | Total 2022 | |
North America | 2,039 | 1 | 2,040 |
South America | 764 | 69 | 833 |
EMEA | 10,073 | 714 | 10,787 |
China | 1,360 | 963 | 2,323 |
Asia-Pacific | 1,545 | 20 | 1,565 |
Total | 15,781 | 1,767 | 17,548 |
Lost time incident frequency, total recordable incident frequency, number of fatalities and absentee rate, own personnel | ||
2022 | 2021 | |
LTIF2 | 1.6 | 1.4 |
TRIF3 | 3.2 | 3.1 |
Fatalities | 0 | 0 |
Absentee rate | 2.9% | 2.6% |
Lost time incident frequency, total recordable incident frequency and number of fatalities, external workers | ||
2022 | 2021 | |
LTIF2 | 2.3 | 3.1 |
TRIF3 | 4.7 | 6.8 |
Fatalities | 2 | 1 |
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ENVIRONMENTAL AND CLIMATE-RELATED MATTERS | SOCIAL AND EMPLOYMENT-RELATED MATTERS | ||
Policies and standards | International frameworks and Valmet's policies covering all topics: | •UN Global Compact •UN Sustainable Development Goals •United Nations Universal Declaration of Human Rights •UN Guiding Principles on Business and Human Rights •Declaration on Fundamental Principles and Rights at Work of the International Labour Organization (ILO) •OECD’s Guidelines for Multinational Enterprises | |
approach to managing HSE performance in its own operations and in customer industries • Instructions for sustainable and responsible research, product development, and design: Support the implementation of Valmet’s HSE policy Describes the management approach and provides instructions for compliance with regulatory requirements regarding the prohibition and reporting of materials found in Valmet’s products | approach to managing HSE performance in its own operations and in customer industries •Human Resources Policy: Framework for the management of the human resources function, which is committed to developing an engaged and performance-driven community and continuously driving the global development of Valmet employees’ capabilities to promoting equal opportunities for all employees •Minimum Safety Standards: Defines minimum requirements for safety at work for specific high-risk activities | ||
Due diligence processes | •The HSE event reporting and management system is used to monitor and prevent HSE-related incidents and hazards •Compliance with HSE-related laws and regulations is ensured by complying with Valmet’s related processes •Internal and external audits executed globally to evaluate compliance with internal, legal and other HSE requirements and to correct non-conformities | •The HSE event reporting and management system is used to monitor and prevent HSE-related incidents and hazards •Compliance with laws and regulations is ensured by complying with Valmet’s related processes •Internal and external audits executed globally to evaluate compliance with internal, legal and other HSE requirements, and to correct non-conformities | |
Risks and risk management | Risks: •Non-compliance with environmental regulations may result in fines, creating reputational and business risks •Climate-related regulation and initiatives may change the availability and use of biomass and increase the cost of raw materials and energy, result in new taxes and tariffs, and change our stakeholder’s attitudes, which could impact Valmet’s and its customers’ operations and business environments •EU Taxonomy regulation may diminish investors interest and Valmet’s access to capital and increase the cost of capital in the long term if Valmet’s technologies and services are not considered environmentally sustainable •Climate-related physical risks; extreme weather events and variability in weather patterns, water shortages and scarcity of raw materials may cause production interruptions throughout Valmet’s value chain •Risks related to Valmet’s suppliers may create significant reputational or business risks Risk management: •ISO 14001:2015 environmental management systems in all operations •Risk management of environmental and climate-related matters is integrated into all activities to ensure proactive risk identification and mitigation •Climate scenario analysis to support strategy and risk management •Global supplier sustainability management process, including risk assessments and audits | Risks: •Valmet’s own employees' and partners' health and safety risks are related to the pandemic, work-related illnesses, injuries and work- life integration •Non-compliance with occupational health and safety regulations may result in fines, creating reputational and business risks •Retention and engagement of key employees and a slowing down of the resourcing process due to the hot labor market and talent shortage •Risks related to Valmet's suppliers may create significant reputational or business risks Risk management: •ISO 45001:2018 health and safety management systems in all operations •HSE event management system •HSE committees covering all personnel •Clear Covid management principles in all locations, production facilities and on project sites •Development of global training portfolio and ensuring necessary competence is in place across regions •Development of engagement and retention through employee survey action execution •Debottlenecking of resourcing process •Global supplier sustainability management process, including risk assessments and audits | |
Outcomes of policies and due diligence processes | •New products and services that meet environmental requirements and help customers produce sustainable products which require less water and energy, and fewer raw materials, enable the use of renewable resources producing less waste and fewer emissions •Supplier sustainability audits and corrective actions in accordance with Valmet’s global supplier sustainability risk management process •CO2 reduction and other environmental targets for renewable energy, energy efficiency, water consumption and waste management •Climate training, including e-learning | •Healthy and safe workplaces for Valmet’s own employees and partners •Operations free of life-changing incidents, reduction in overall incident frequencies •Training programs developed to enhance skills •Supplier sustainability audits and corrective actions in accordance with Valmet’s global supplier sustainability risk management process |
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RESPECT FOR HUMAN RIGHTS | ANTI-CORRUPTION AND BRIBERY | ||
Policies and standards | International frameworks and Valmet's policies covering all topics: | ||
promoting equal opportunities for all employees zero tolerance of discrimination or harassment in any form | •Anti-Corruption Policy: Defines Valmet's zero tolerance approach to bribery and corruption in more detail •Compliance reporting guideline: Defines how Valmet employees can voice their concerns about potential violations of the Code of Conduct, Anti-Corruption Policy, unethical behavior and other misconduct •Approval guideline for Agency agreements and Agent approval process: Describes Valmet’s due diligence process and requirements for agent approval | ||
Due diligence processes | •Human rights due diligence framework executed through long-term action plans, and based on UN Guiding Principles for Business and Human Rights •External third-party supplier audits executed globally to evaluate compliance and correct non-conformities | •Risk management evaluations help Valmet find the best ways to manage risks and train the unit’s personnel to use existing tools and procedures •Internal audits executed globally to evaluate compliance with anti-corruption and bribery-related rules and implement necessary corrective actions •External third-party supplier audits executed globally to evaluate compliance and correct non-conformities | |
Risks and risk management | Risks: •Potential violations of human rights may impact Valmet’s reputation and thus its financial position Risk management: •Valmet’s human rights due diligence framework for identifying and mitigating potential negative human rights impacts and risks •Global supplier sustainability management process, including risk assessments and audits | Risks: •Unethical business practices may impact Valmet’s reputation and thus its financial position Risk management: •Internal risk management audits •Anti-Corruption Policy works as a tool to set the tone for preventive misconduct and mitigate potential risks •Global supplier sustainability management process, including risk assessments and audits | |
Outcomes of policies and due diligence processes | •Reporting system in place for violations of Code of Conduct •Continuous human rights training to increase awareness of potential negative impacts •Location-level social impact assessment and improvement actions, in accordance with Valmet’s human rights due diligence framework •Supplier sustainability audits and corrective actions in accordance with Valmet’s global supplier sustainability risk management process | •Reporting system in place for violations of Code of Conduct, including anti-corruption and bribery and other misconduct •Anti-corruption and bribery training, including e-learning •Supplier sustainability audits and corrective actions in accordance with Valmet’s global supplier sustainability management process |
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Turnover6 | Substantial contribution criteria | 'Does Not Significantly Harm' criteria | |||||||||||||
Economic activities | NACE codes | Absolute turnover (EUR million) | Proportion of turnover | Climate change mitigation | Climate change adaptation | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | Minimum safeguards | Taxonomy- aligned proportion of turnover, 2022 | Enabling activity | Transitional activity |
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||
Taxonomy-aligned activities (A.1) | |||||||||||||||
3.1 Manufacture of renewable energy technologies | C27, C28, M71, F42.22 | 215 | 4% | 100% | Yes | Yes | Yes | Yes | Yes | Yes | 4% | E | |||
Turnover (A.1) | 215 | 4% | 100% | 4% | |||||||||||
Eligible, but not aligned activities (A.2) | |||||||||||||||
3.1 Manufacture of renewable energy technologies | C27 | 10 | —% | 100% | |||||||||||
3.2 Manufacture of equipment for the production and use of hydrogen | C28 | 4 | —% | 100% | |||||||||||
3.6 Manufacture of other low carbon technologies | C28, C33 | 11 | —% | 100% | |||||||||||
Turnover (A.2) | 25 | —% | 100% | —% | |||||||||||
Total (A) | 240 | 5% | 100% | 5% | |||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||
Turnover (B) | 4,834 | 95% | |||||||||||||
Total (A + B) | 5,074 | 100% |
Capex | Substantial contribution criteria | 'Does Not Significantly Harm' criteria | |||||||||||||
Economic activities | NACE codes | Absolute Capex (EUR millions) | Proportion of Capex | Climate change mitigation | Climate change adaptation | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | Minimum safeguards | Taxonomy- aligned proportion of Capex, 2022 | Enabling activity | Transitional activity |
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||
Taxonomy-aligned activities (A.1) | |||||||||||||||
3.1 Manufacture of renewable energy technologies | C27, C28, M71, F42.22 | 2 | 2% | 100% | Yes | Yes | Yes | Yes | Yes | Yes | 2% | E | |||
Capex (A.1) | 2 | 2% | 100% | 2% | |||||||||||
Eligible, but not aligned activities (A.2) | |||||||||||||||
3.1 Manufacture of renewable energy technologies | C27 | 0 | —% | 100% | |||||||||||
3.2 Manufacture of equipment for the production and use of hydrogen | C28 | 0 | —% | 100% | |||||||||||
3.6 Manufacture of other low carbon technologies | C28, C33 | 0 | —% | 100% | |||||||||||
Capex (A.2) | 0 | —% | 100% | —% | |||||||||||
Total (A) | 3 | 2% | 100% | 2% | |||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||
Capex (B) | 109 | 98% | |||||||||||||
Total (A + B) | 112 | 100% |
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Opex | Substantial contribution criteria | 'Does Not Significantly Harm' criteria | |||||||||||||
Economic activities | NACE codes | Absolute Opex (EUR millions) | Proportion of Opex | Climate change mitigation | Climate change adaptation | Climate change mitigation | Climate change adaptation | Water and marine resources | Circular economy | Pollution | Biodiversity and ecosystems | Minimum safeguards | Taxonomy- aligned proportion of Opex, 2022 | Enabling activity | Transitional activity |
A. TAXONOMY-ELIGIBLE ACTIVITIES | |||||||||||||||
Taxonomy-aligned activities (A.1) | |||||||||||||||
3.1 Manufacture of renewable energy technologies | C27, C28, M71, F42.22 | 6 | 2% | 100% | Yes | Yes | Yes | Yes | Yes | Yes | 2% | E | |||
Opex (A.1) | 6 | 2% | 100% | 2% | |||||||||||
Eligible, but not aligned activities (A.2) | |||||||||||||||
3.1 Manufacture of renewable energy technologies | C27 | 0 | —% | 100% | |||||||||||
3.2 Manufacture of equipment for the production and use of hydrogen | C28 | 1 | —% | 100% | |||||||||||
3.6 Manufacture of other low carbon technologies | C28, C33 | 0 | —% | 100% | |||||||||||
Opex (A.2) | 1 | —% | 100% | —% | |||||||||||
Total (A) | 7 | 2% | 100% | 2% | |||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||
Opex (B) | 303 | 98% | |||||||||||||
Total (A + B) | 310 | 100% |
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