Keep your plant competitive Products & services to improve your performance
COMPANY CONFIDENTIAL Agenda
Your challenges Products & solutions Valmet in brief - Including product portfolio
Facts & numbers How can we help you? Success stories
COMPANY CONFIDENTIAL
2 © Valmet 2014 | Energy & Environmental Services A unique combination of technology and services in growing markets
Global and diversified customer base
Technology Services
• Established • >EUR 1bn market leader business • ~1,700 protected • >2,000 customer innovations Growing plants worldwide end-markets • >70 service centres
Mission: Convert renewable resources into sustainable results Vision: Become the global champion in We are committed to serving customers moving our customers’ COMPANY CONFIDENTIALperformance forward
3 © Valmet 2014 | Energy & Environmental Services Services to improve your profitability and sustainability
We offer sustainable services for Energy production Fibre processing Paper, board and tissue production lines We are committed to Sustainability Our customers’ profitability 5,000 service 70 service Optimised production and professionals centres in maintenance 20 countries Long-term partnerships Over 2,000 customer Innovative solutions mills in 85 COMPANY countriesCONFIDENTIAL
4 © Valmet 2014 | Energy & Environmental Services Leading services and technology company Key figures 2013
• Global market leader with Global business #1-2 market positions in all markets served • Large installed base to 16% 16% be serviced • Growth opportunities in increased outsourcing 26% 15 % 39%
35% Net sales EUR 2,600m 1 EBITA EUR 54m 42% 11% Employees 10,500 Position #1-2 Service South America #1-2 Pulp China #1-2 Energy Service Asia Pacific #1-2 Paper, board, tissue Pulp & Energy EMEA COMPANYPaper CONFIDENTIALNorth America
5 © Valmet 2014 | Energy & Environmental Services 1) EBITA before non-recurring items Facts & numbers Energy & Environmental Services
Valmet has over 200 years of industrial history • Energy plants consisting of recovery and power boilers, evaporation plants, gasifiers, Lignoboost and environmental systems • P&P customers globally • Power generation customers mainly in EMEA and North America • We also have local sales and expert centres close to you at other locations • Large product portfolio focused on two major lines: • Maintenance Services • Performance Services COMPANY CONFIDENTIAL
6 © Valmet 2014 | Energy & Environmental Services Energy & Environmental business locations 350 ENE professionals
Europe
Gothenburg Tampere North America Tallinn Warsaw Moscow Darwen Asia Seoul Charlotte/Lancaster Shanghai Laem Chabang Africa Chennai Jakarta
Australia South America Durban Santiago NZ Araucária Concepción Service centres Global service network of 5,500 employees Sales/services offices Agents/reps COMPANY CONFIDENTIAL
7 © Valmet 2014 | Energy & Environmental Services Challenges?
Health, Safety Customer challenges Costs Capacity & Environment
Reduce Reduce Strong pressure for savings Increased Reduce upstart safety risks productivity emissions • Less own plant personnel on site costs at plants • Flexible cost structure as a target • Managing maintenance and investment costs
Safer Increase Optimise Predict working capacity production Ensuring the profitability of plant maintenance environment costs investment & risk management • Ensuring availability and productivity
Long-term Shorter Improve Environmental • Continuous development profitability outage time safety compliance • Utilising new technology
Focusing on core business • Business challenges, production Improve Optimise Increase Improve energy optimisation, energy efficiency, fuel value of fuel availability competence efficiency purchasing and market prices, COMPANY CONFIDENTIALinvestment projects, etc.
8 © Valmet 2014 | Energy & Environmental Services Experts to help you with your challenges Our solutions to make you succeed
Our mission is to support you throughout the life of your plant, improve your everyday performance and increase your profitability in the long run. Our service offering includes: • Comprehensive upgrades to boost your production resources and fulfil changing environmental specifications • Inspections, troubleshooting • Maintenance • Spare parts • Capacity-increasing process studies • Research & Development
Always committed to moving our customers´COMPANY performance forward CONFIDENTIAL
9 © Valmet 2014 | Energy & Environmental Services Product portfolio Energy & Environmental Services We help you meet these demands with both technology and services. Our services portfolio includes:
6
8
End-users requireCOMPANY high uptimes, efficient CONFIDENTIAL day-to-day operations and applications that are easy to change. Improve your productivity & profitability Creating added value with Performance Services PG example
Other operational costs Insurance Investment reservation (e.g. ash, water) By optimising O&M & management costs Lifecycle costs of Operation & Maintenance • Competence Development typical solid-fuelled Management • Availability Management power plant • Plant Life and Value Management Own Electricity Maintenance Consumption Costs Operation Consumables By optimising refurbishment costs By optimising Fuel • Plant Life and Value Management energy efficiency • Fuel and Combustion Management • Competence Development • Energy Efficiency Optimisation
By fuel & emissions cost savings through optimum fuel efficiency By minimising • Fuel and Combustion Management unavailability costs • Energy Efficiency Optimisation • Competence Development • Environmental Impact COMPANYManagement CONFIDENTIAL• Availability Management • Fuel & Combustion Management
11 © Valmet 2014 | Energy & Environmental Services Improve your productivity & profitability Creating added value with Performance Services P&P
By improving energy efficiency By improving safety • Performance Agreements • Troubleshooting & Optimisation • Troubleshooting & Optimisation • Studies • Studies • Advanced Process Control
By environmental compliance By Improving availability • Performance Agreements • Performance Agreements • Troubleshooting & Optimisation • Troubleshooting & Optimisation • Studies • Studies • Advanced Process Control • Advanced Process Control
By reducing operating costs • Performance Agreements • Troubleshooting & Optimisation • Studies • Advanced Process ControlCOMPANY CONFIDENTIAL
12 © Valmet 2014 | Energy & Environmental Services Upgrades to increase capacity & protect the environment
We help you to optimize and meet enhanced demands in: • Capacity Increase the service • Emission performance life by 10 to 15 years at costs far below those • Lifetime extension of new construction • Availability • Efficiency • Water circulation • Fuel quality Experience • Conversion of more We have all the necessary know-how, than 60 power boilers based on experience and resources, to • Upgrading of more manage complete projects and provide than 200 chemical you with expert assistance, within the recovery boilers shortest possibleCOMPANY time frame. CONFIDENTIAL
13 © Valmet 2014 | Energy & Environmental Services Keep your productivity at an optimum level with our Field Services
Field & Maintenance Services include: Our Field Services cover All types of field services for everything from fast, pressure parts on-call troubleshooting to planned, practical and Environmental equipment services strategic undertakings Increased carried out on a Shutdown services productivity continuous basis. Support equipment services Valmet takes full responsibility for shutdowns, including: Products & solutions Improved • Liquor-to-Liquor Concept Quality Planning and coordination of all • Smelt-X & Safety activities • Steam-to-Steam Concept Use of inspectors and other • Corrosion and Erosion specialists Protection • Inspections Carrying out the replacement and • 24/7 Maintenance overhaul of equipmentCOMPANY CONFIDENTIAL
14 © Valmet 2014 | Energy & Environmental Services Fast, Flexible Components & Parts
Daily spare parts Spare part packages Original parts for equipment Spare and wear parts for Results delivered by Valmet Valmet’s new installations • Improved process Spares for several other and rebuilds performance acquired brands Spare part recommendations Engineered components prepared by Valmet • Successful start-up designed by Valmet specialists and reliable operation Approved replacement parts Spare parts required on-site that meet quality and are identified together • Easy acquisition performance requirements with the customer from one source Upgraded substitute parts • Lower lifecycle costs • Easy access to local service and support Facts Facts The right spare parts, at the Special tools for spare part right time, based on OEM qualification manufacturer know-how Experienced global and local On competitive termsCOMPANYspecialists CONFIDENTIAL
15 © Valmet 2014 | Energy & Environmental Services Boiler Enhancement & Safety Technologies
Products to support and enhance the Our Roddingmaster functionality of your boiler effectively shaves off Improves: smelt deposits – Safety Stable and reliable operation – load and start- Liquor sprayer station – Operations up burners For safe liquor distribution – Capacity
Safe maintenance with Safety Roof Smelt Spout to minimise hazardous risks
Reduced emissions SNCR Safe smelt cleaning with for NOx reduction Spout Robot
Smelt-X Optimum fuel feed with Extract smelt safely and COMPANY CONFIDENTIALFeedingmaster effectively
16 © Valmet 2014 | Energy & Environmental Services Solutions based on experience Success stories around the globe
Competence Development WebAcademy & Dynamic Training Simulator
Plant Life & Value Management Performance Agreement
Fuel & Combustion Management FuelDiet™ KCI Corrosion Solution
Field Services Case: Fast and reliable services at StoraCOMPANY Enso Skoghall Mill CONFIDENTIAL
17 © Valmet 2014 | Energy & Environmental Services WebAcademy & Dynamic Training Simulator Competence Development
COMPANY CONFIDENTIAL Valmet WebAcademy Building competence through knowledge transfer
What we deliver Online training portal with: – Individual training programmes – Generic online courses and tests – Customised site/company materials – Efficient tools for systematic training planning and coordination – Potential customers: heat & power plants, pulp mills, paper mills
Customer value Better productivity due to skilled operating personnel Systematic planning and follow-up of employee training Self-paced online courses COMPANY CONFIDENTIAL
19 © Valmet 2014 | Energy & Environmental Services Systematic Competence Development Training for Övik Energi, BFB boiler, Sweden
Valmet WebAcademy & Dynamic Training Simulator Prior to start-up Year 2 Year 3
• Boiler & combustion • Combustion • Corrosion knowledge • Scenario training • Sintering Cold start-up • - Cold start-up • Scenario training • Normal operation - Boiler trips - Cold start-up • Shut-down - Fuel disturbances - Emissions - Bed temperatures - Tube leaks
The target is to avoid operational disturbances and handle unexpected COMPANY CONFIDENTIALsituations Valmet WebAcademy Simulator
20 © Valmet 2014 | Energy & Environmental Services Performance Agreements Plant Life & Value Management
COMPANY CONFIDENTIAL Performance Agreements Predictable lifecycle costs and optimised process performance
What we deliver Customer value Long-term service agreements Predictable lifecycle costs and tailored to different levels of customer optimised process performance, needs, based on pre-defined service to provide the best return on the modules customer’s investment Partnership model based on assigned Risk management via development team, utilising shared access to Valmet specialists resources locally and specialist and technology know-how resources globally Potential customers: biomass and waste plants and pulp mills globally
Long-term commitment
Strong technology know-how
Aligned incentivesCOMPANY and risk-sharing CONFIDENTIAL
22 © Valmet 2014 | Energy & Environmental Services Customer-tailored performance agreements Based on service level
COMPANY CONFIDENTIAL
23 © Valmet 2014 | Energy & Environmental Services Six-year performance agreement - power boiler Gainesville Renewable Energy Center (GREC)/Gainesville, Florida, USA
Performance Services Plant – Dedicated Reliability Engineer 100 MWe BFB Boiler – Performance Reporting Scope of delivery – Training (simulator, OJT, sampling) • Hot Baghouse + TAH – Operational/BMS Audits and Tuning • SNCR + SCR – Boiler Optimisation • Ash Handling • Fuel Handling – Equipment Inspection • DNA Controls – Catalyst Life Assessment Maintenance/Field Services – Maintenance Procedure Development – Outage Planning and NDE Mapping – Execution of all Outage Planned Maintenance on a cost-plus basis – Troubleshooting and RCA of any unplanned maintenance – Valve Maintenance Spare PartsCOMPANY CONFIDENTIAL
24 © Valmet 2014 | Energy & Environmental Services FuelDiet KCl Corrosion Fuel & Combustion Management
COMPANY CONFIDENTIAL FuelDiet™ KCl Corrosion Solution Use low-priced fuels without increasing the risk of superheater corrosion
What we deliver Customer value FuelDiet™ Solution: software platform for data analyses and • Savings on fuel purchasing costs decision making, sensors to • Extended lifetime of superheaters gather information, and • Potential to avoid unexpected measures and remedies to shutdowns control hazardous phenomena Combustion study
COMPANY CONFIDENTIAL
26 © Valmet 2014 | Energy & Environmental Services Customer value - FuelDiet KCl Corrosion Payback of the investment in 6 months
Case: 80 MWth CHP power plant Customer value in figures Steam: 28 kg/s, 80 bar, 500°C Potential saving on yearly fuel Fuels: SRF and biomass, purchasing cost: EUR 1-3m of 670 GWh per year EUR 9m per year 8,000 operation hours/year Extended lifetime of superheater from 3 to 10 years. Potential saving Scope: FuelDiet™ software, of EUR 600K per year Corroded sensor, CorroStop additive injection system Real-time estimate of the Investment: EUR 700,000 remaining lifetime of the superheaters Annual chemical costs and system maintenance cost: EUR 250,000 Potential to avoid unexpected shutdown and save on the costs of fuel switching to HFO or natural gas Payback of investment of EUR 180K COMPANYin 6 months CONFIDENTIAL
27 © Valmet 2014 | Energy & Environmental Services Fast action by committed service crew Stora Enso Skoghall Mill
COMPANY CONFIDENTIAL Committed to providing fast & reliable services Stora Enso Skoghall Mill in Sweden, 2014
Background On 21 January 2014, there was an explosion in recovery boiler number 5 at the Stora Enso Skoghall Mill in Sweden. Deliverables Valmet‘s service experts were quickly on-site to help and the boiler could start up 18 days after the explosion. Intensive work already began during the evening and night of 21 January to get our teams organised, identify the root cause and start planning the work to get the recovery boiler back online.
“This would not have been possible without your help and support. I would like to direct my sincere thanks to you and your company for the way you have supported us and worked day and night, on weekdays as well as holidays. I would also like to state that the work has been carried out in a safe way, despite the time pressure and the many different disciplines working in a limited space, and at several levels at the same time. Without your help we would never have been able to start up at the planned time, 18 days after the explosion. Excellent! Once again, my sincere gratitude for your efforts.” Carl-JohanCOMPANY Albinsson, Mill Director, Stora Enso, SkoghallCONFIDENTIAL Mill
29 © Valmet 2014 | Energy & Environmental Services Summary Solutions based on experience
We utilise our global network of knowledge and experience to develop local solutions close to you, to ensure your success. Our mission is to improve your productivity and profitability - every day.
COMPANY CONFIDENTIAL
30 © Valmet 2014 | Energy & Environmental Services COMPANY CONFIDENTIAL