Slide 1: Valmet – Converting renewable resources into sustainable results
Valmet – Converting renewable resources into sustainable results Sustainability equity story May 2023
Slide 2: Agenda
Agenda 1 Valmet today 2 Sustainability highlights from investor perspective 3 Valmet’s R&D addresses global megatrends 4 Summary 2 © Valmet | Sustainability equity story 2023
Slide 3: Valmet today
Valmet today Valmet <>
Slide 4: Valmet has unique offering and strong market shares in the growing market of converting renewables
Valmet has unique offering and strong market shares in the growing market of converting renewables Unique offering for pulp, paper and energy industries Key figures for 2022 Enabler for carbon neutral pulp and paper processes and fossil free bioenergy production Net sales EUR 5,074 million Lea
Slide 5: Valmet's Way Forward
Valmet’s Way Forward Vision Continuous improvement and To become the global champion in serving our customers and in Strategy renewal moving the industries forward Valmet develops and supplies competitive and Must-Wins reliable process technologies, services and Customer excellence automation to t
Slide 6: Sustainability highlights from investor perspective
Sustainability highlights from investor perspective
Slide 7: Valmet's business is supported by several favorable global sustainability trends
Valmet’s business is supported by several favorable global sustainability trends Targets for CO2 Replacing plastics in Circular economy Replacing fossil CO2 neutral energy Emission emission reductions packaging products • Efficient use of sidestreams, recycling, fuels with and heat production reduct
Slide 8: Updated Sustainability Agenda
Updated Sustainability Agenda Sustainability 360º agenda covers the entire value chain Environmental Engaged Environment efficiency workplace We enhance circularity and environmental efficiency and reduce CO2 emissions through the entire value chain. Climate Health and Valmet aims to enable fully ca
Slide 9: The main environmental impacts of Valmet's products are caused when they are used
The main environmental impacts of Valmet’s products are caused when they are used Learn more about Valmet´s value creation: https://www.youtube.com/wa tch?v=SsntF7P5Avs&t=6s Product life cycle is 10 – 100 years 95% 4% Use phase of technologies Supply chain 1% Own operations 9 © Valmet | Sustainabili
Slide 10: Valmet's climate program: Forward to a carbon neutral future
Valmet’s climate program: Forward to a carbon neutral future Separate CO2 targets for the entire value chain by 2030: TARGETS BY 2030 supply chain, own operations and use phase – The biggest impact comes from the use phase of Valmet’s technologies In the use phase, the program targets 20% energy
Slide 11: Acknowledged leader in sustainability
Acknowledged leader in sustainability Good sustainability rankings In Dow Jones Sustainability Index for the ninth consecutive year AAA rating in the MSCI ESG Ratings assessment 2022 Achieved A- rating in CDP’s climate program ranking in 2022 11 © Valmet | Sustainability equity story 2023
Slide 12: Valmet's R&D addresses global megatrends
Valmet’s R&D addresses global megatrends
Slide 13: Valmet's R&D is aiming to address global megatrends
Valmet’s R&D is aiming to address global megatrends R&D focus areas • Promotion of renewable materials • Raw material, water and energy efficiency • Emission reductions • Circularity • Productivity and environmental improvements with digitalization 28 EUR 95 million ~1,300 research and R&D spending
Slide 14: Case examples
Case examples OptiConcept M modular board production line Valmet’s biomass-fired power boiler to Hofor in Copenhagen 30% lower energy consumption compared to average Valmet is supporting Copenhagen to become CO2 neutral by 2025 Less fiber through light-weight end product 1.2 m ton decreased
Slide 15: Example: Driving development of resource efficient tissue production
Example: Driving development of resource efficient tissue production Progress in reduced environmental footprint Less fibre consumption** 47% less energy* 80% less water* Energy /ton paper [kWh/ton] Water /ton paper [m3/ton] 3330 3106 12 2850 2150 1960 1800 1750 7 5,5 4,5 4 • Hybrid Technologies, 3,
Slide 16: Future growth possibilities from new sustainable innovations
Future growth possibilities from new sustainable innovations Cellulose based textile fibre Recycled textile fibre Molded Fibre Lignoboost® SPINNOVA® fibre is produced from Renewcell produces dissolving pulp Pilot plant built together with Metsä LignoBoost is Valmet’s technology cellulose or
Slide 17: Summary
Summary Valmet <>
Slide 18: Summary
Summary 1 Valmet’s business is supported by several favorable global sustainability trends 2 Sustainability is integrated to Valmet’s processes through the Sustainability 360° agenda 3 The main environmental impacts of Valmet’s products are caused when they are used 4 Valmet’s climate program covers
Slide 19: FORWARD
FORWARD
Slide 20: Appendix
Appendix Valmet <>
Slide 21: Sustainability key figures
Sustainability key figures 2022 2021 2020 Environment Scope 1-3 CO2 emissions (1,000 t)1 76,431 72,860 56,065 Total energy consumption (tJ) 1,519 1,524 1,362 3 Water withdrawal (1,000 m ) 1,681 1,554 1,408 Waste (1,000 t) 43 43 44 NOx, SOx, and other significant air emissions (1,000 t) 0.1 0.1 0.1 2
Slide 22: Valmet enables circular bioeconomy
Valmet enables circular bioeconomy Implementing circular economy in own Enabling circular economy for customers operations Resource efficiency with focus on improved and Preventive maintenance optimized use of resources and on flexible energy production Use of recycled metals Closed circles
Slide 23: Research and development costs
Research and development costs 100 3,0% 90 2,5% 80 2,3 % 2,2 % 70 2,1 % 2,0 % 2,0 % 2,0 % 2,0 % 2,0 % 2,0% 1,9 % 60 1,7 % 50 1,5% 95 40 82 71 75 64 64 66 1,0% 30 60 50 20 42 0,5% 10 0 0,0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Research and development expenses (EUR million) % of net sale
Slide 24: Income tax expenses paid
Income tax expenses paid 100 90 80 70 60 50 99 93 40 75 67 30 54 53 20 36 30 10 21 2 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Income tax expense (EUR million) 24 © Valmet | Sustainability equity story 2023
Slide 25: Board of Directors
Board of Directors Mikael Mäkinen Jaakko Eskola Aaro Cantell Anu Hämäläinen (b. 1956) (b. 1958) (b. 1964) (b. 1965) Chairman of Vice-Chairman of Board member Board member the Board the Board Finnish citizen Finnish citizen Finnish citizen Finnish citizen • M.Sc. (Econ.) • M.Sc. (Eng.) • M.Sc. (Eng.)
Slide 26: Executive Team
Executive Team Corporate Pasi Laine Katri Hokkanen Julia Macharey Anu Salonsaari-Posti President and CEO CFO SVP, Human Resources and SVP, Marketing, Communications, Share ownership: 185,946 Share ownership: 7,145 Operational Development Sustainability and Corporate Relations Share ownership: 41,110
Slide 27: Remuneration of the President and CEO
Remuneration of the President and CEO The remuneration of the President and CEO is comprised of – fixed base salary (incl. taxable benefits1) – short-term and long-term incentives, and – pension and insurance benefits In 2022, the President and CEO’s monthly fixed compensation was EUR 60,859 and
Slide 28: Remuneration of the Executive Team
Remuneration of the Executive Team The remuneration of the Executive Team members comprises – fixed base salary (incl. monthly salary and taxable benefits1) – short-term and long-term incentives, and – a supplementary pension plan Additional pension benefit in the form of a defined contribution
Slide 29: The Performance Share Plan for CEO and Executive Team members
The Performance Share Plan for CEO and Executive Team members Includes a three-year performance period parallel to a one-year performance period Measures for the one-year performance period are based on long-term strategic and financial targets. The measures have remained the same for the past e
Slide 30: FORWARD
FORWARD