Valmet Corp · OMXHEX:VALMT

Valmet — Non-Deal Roadshow (August 2023)

97 slides from Valmet's roadshow presentation, August 2023

  1. Slide 1: Valmet – unique offering to support a growing market

    Valmet – unique offering to support a growing market Roadshow presentation August 2023

  2. Slide 2: Agenda

    Agenda Valmet roadshow presentation 1 Valmet in brief 2 Investment highlights 3 Financial targets and acquisitions 4 Q2/2023 financials, guidance and short-term market outlook 5 Summary 2 August 2023 © Valmet | Roadshow presentation

  3. Slide 3: Valmet in brief

    Valmet in brief Valmet <>

  4. Slide 4: Valmet's offering is unique and the widest in the market

    Valmet’s offering is unique and the widest in the market Board and tissue Pulp Energy • Board, paper and tissue production lines • Wood and pulp handling • Heat and power generation • Rebuilds • Fiber processing • Air emission control • Stand-alone products • Recovery • Biofuels Process technology A

  5. Slide 5: We have strong market positions

    We have strong market positions Process technologies Services Automation Board and Pulp and Flow Control Automation Tissue Energy Systems Market position Market position Market position Market position Market position Pulp Energy Pulp and Energy and #1 #1–2 Pulp and Renewable paper process #2 #1–3 p

  6. Slide 6: Valmet's development since 2013

    Valmet’s development since 2013 Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%) 2013 figures on carve-out basis. 2013–2020 figures have not been restated to reflect the new segment reporting structure which Valmet implemented as of Jan

  7. Slide 7: Valmet's key figures

    Valmet’s key figures Q2/2023 LTM Net sales by segment Net sales by area Orders received EUR 5,384 million Net sales EUR 5,567 million Comparable EBITA EUR 618 million Comparable EBITA margin 11.1% Order backlog EUR 4,414 million Employees 18,194 7 August 2023 © Valmet | Roadshow presentation

  8. Slide 8: Valmet has three strong segments

    Valmet has three strong segments Q2/2023 LTM figures Net sales Comparable EBITA Comparable EBITA margin (excl. Other) (excl. Other) EUR EUR EUREUR million 16.0% 1,678 EUR EUR million million million 269 million million EUR EUR million million 8 August 2023 © Valmet | Roadshow presentation LTM = Last

  9. Slide 9: Global presence creating a good platform for growth in Services and Automation

    Global presence creating a good platform for growth in Services and Automation EMEA 11,234 employees ~140 service centers China 2,347 employees 54 North America production units 2,139 employees 28 R&D centers Asia-Pacific 8 1,612 employees Performance South America Centers 862 employees Personnel as

  10. Slide 10: 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

  11. Slide 11: 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

  12. Slide 12: Acknowledged leader in sustainability

    Acknowledged leader in sustainability 360º approach to sustainability across value chain Environmental Engaged efficiency workplace Good sustainability ratings  In Dow Jones Sustainability Index for the Climate Health and safety ninth consecutive year  AAA rating in the MSCI ESG Ratings assessment

  13. Slide 13: Valmet's Climate Program: Forward to a carbon neutral future

    Valmet´s Climate Program: Forward to a carbon neutral future Targets by 2030 for the entire value chain SUPPLY CHAIN OWN OPERATIONS USE PHASE OF VALMET’S TECHNOLOGIES -20% -80% -20% 100% CO2 emission reduction CO2 emission reduction Further reduced energy use Carbon neutral production of Valmet’s cu

  14. Slide 14: Investment highlights

    Investment highlights Valmet <>

  15. Slide 15: Valmet's investment highlights

    Valmet’s investment highlights 1 Unique offering to support a growing market 2 Process Technologies segment benefiting from the growing demand for bio-based products and energy 3 EUR 3.2 billion recurring and steadily growing stable business 4 Services segment’s demand driven by large and growing gl

  16. Slide 16: Unique offering to support a growing market

    Unique offering to support a growing market Unique offering Strong market drivers Competitive advantage from Process Technologies • E-commerce and global trade the widest offering in the market • Renewable materials replacing plastic packaging • Conversions from paper to board • Energy transition an

  17. Slide 17: Process Technologies segment benefiting from growing demand for bio-based products and energy

    Process Technologies segment benefiting from the growing demand for bio-based products and energy • New pulp and paper capacity is needed as demand for bio- Net sales (EUR million) based products continues to grow • Energy transition creates a growing market for Valmet’s energy offering • Large old

  18. Slide 18: EUR 3.2 billion recurring and steadily growing stable business

    EUR 3.2 billion recurring and steadily growing stable business • Valmet’s stable business has grown Orders received (EUR million) steadily since 2014 • Future growth possibilities are supported by favorable megatrends • Stable business provides resilience to business cycles and makes Valmet’s order

  19. Slide 19: Services segment's demand driven by large and growing global installed base

    Services segment’s demand driven by large and growing global installed base Orders received (EUR million) • Valmet’s Services is a growing and recurring CAGR business ~5% • Demand driven by large and growing global installed base • Roughly EUR 8 billion addressable market estimated to grow 2% annual

  20. Slide 20: Automation segment with high growth and profitability

    Automation segment with high growth and profitability • Valmet’s Automation is a growing and recurring Orders received (EUR million) business • Large addressable target market estimated to grow ~3% annually • Target to continue to grow over two times the market growth • Sustainability, digitalizatio

  21. Slide 21: Future growth possibilities from new sustainable innovations

    Future growth possibilities from new sustainable innovations Textile fibres Valmet 3D fibre New bioproducts Flow Control and Automation Systems  Technology to produce  Next generation of molded  Lignin usage to replace  Solid position to grow in viscose pulp from recycled fiber fossil-based carb

  22. Slide 22: Building Valmet on positive megatrends and strategy of renewal

    Building Valmet on positive megatrends and strategy of renewal and continuous development Demand for bio-based New growth Steadily growing products and energy Strategy opportunities stable business continues to grow  The large pulp and paper  Future growth  EUR 3.2 billion stable  Strong track r

  23. Slide 23: Financial targets and acquisitions

    Financial targets and acquisitions

  24. Slide 24: Financial targets

    Financial targets Growth Profitability ROCE Dividend policy Net sales for Services and Comparable EBITA: Comparable return on Dividend payout at least Automation segments to 12–14% capital employed (ROCE) 50% of net profit grow over two times the before taxes1 at least 15% market growth Net sales fo

  25. Slide 25: Concrete actions to reach Comparable EBITA target of 12–14% through must-wins

    Concrete actions to reach Comparable EBITA target of 12–14% through must-wins Customer Technology Processes People  Grow stable business  Leverage strong R&D  Ensure good project  Increase procurement, over two times the for new product operations to reach a production and market growth innovati

  26. Slide 26: Improvement in Comparable EBITA is the biggest driver for ROCE

    Improvement in Comparable EBITA is the biggest driver for ROCE Main drivers for ROCE: Track record • Improvement in Comparable Capital employed (EUR million) Comparable ROCE (%, before taxes) EBITA is the biggest driver for ROCE • Capital employed increased in 2022 due to the Neles merger Target ≥15

  27. Slide 27: Valmet has paid attractive dividend

    Valmet has paid attractive dividend DPS  Payout target at least 50% of net Payout % 1.30 profit Payout % target, at least 50% 1.20  Target has been exceeded every year 81% 0.90 68% 76% 68% 0.80 68%  Constant dividend growth 64% 59% 61% 58% 0.65 0.55 0.42 Total payout (EUR) 0.25 0.35 in dividends

  28. Slide 28: Opportunities to strengthen segments through acquisitions

    Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 12 acquisitions made since becoming an independent Process Technologies

  29. Slide 29: Q2/2023 financials, guidance and short-term market outlook

    Q2/2023 financials, guidance and short- term market outlook

  30. Slide 30: Key figures

    Key figures EUR million Q2/2023 Q2/2022 Change Q1–Q2/2023 Q1–Q2/2022 Change Orders received 1,268 1,306 -3% 2,821 2,631 7 % Order backlog1 4,414 4,784 -8% 4,414 4,784 -8 % Net sales 1,417 1,286 10% 2,738 2,246 22 % Comparable EBITA 153 122 25% 286 202 42 % % of net sales 10.8% 9.5% 1.3 pp 10.5% 9.0%

  31. Slide 31: Segment key figures

    Segment key figures Orders received, EUR million Q2/2023 Q2/2022 Change Q1–Q2/2023 Q1–Q2/2022 Change Services 430 460 -6 % 1,007 911 11 % Automation 340 305 12 % 732 452 62 % Process Technologies 497 542 -8 % 1,082 1,268 -15 % Total 1,268 1,306 -3 % 2,821 2,631 7% Net sales, EUR million Q2/2023 Q2/2

  32. Slide 32: Comparable EBITA margin development

    Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %)1 Target 12–14% Comparable EBITA, 106 182 196 218 257 316 365 429 533 618 (EUR million) 1. Valmet implemented IFRS 15 – Revenue from Contracts with Customers as of January 1, 2018 by applying full retrospective met

  33. Slide 33: Strong balance sheet enabling solid operations, dividends and growth

    Strong balance sheet enabling solid operations, dividends and growth also through acquisitions Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not re

  34. Slide 34: Guidance and short-term market outlook

    Guidance and short-term market outlook Guidance for 2023 (Published on February 2, 2023) Guidance Valmet estimates that net sales in 2023 will increase in comparison with 2022 (EUR 5,074 million) and Comparable EBITA in 2023 will increase in comparison with 2022 (EUR 533 million). Short-term market

  35. Slide 35: Summary

    Summary Valmet <>

  36. Slide 36: Valmet's investment highlights

    Valmet’s investment highlights 1 Unique offering to support a growing market 2 Process Technologies segment benefiting from the growing demand for bio-based products and energy 3 EUR 3.2 billion recurring and steadily growing stable business 4 Services segment’s demand driven by large and growing gl

  37. Slide 37: Important notice

    Important notice It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for growth, profitability and investment willingness, expectations fo

  38. Slide 38: FORWARD

    FORWARD

  39. Slide 39: Appendix

    Appendix 1 Financials 2 Growth and profitability improvement 3 Shareholders and share price development 4 Offering 5 Management and remuneration 39 August 2023 © Valmet | Roadshow presentation

  40. Slide 40: Financials

    Appendix ; Financials Valmet <>

  41. Slide 41: Quarterly Comparable EBITA margin development

    Quarterly Comparable EBITA margin development Net sales and Comparable EBITA (EUR million and %) Target 12–14% Comparable EBITA 19 54 47 63 31 57 52 56 34 48 56 81 22 61 61 113 47 69 81 118 52 76 91 146 80 95 107 147 79 122 136 196 133 153 (EUR million) 41 August 2023 © Valmet | Roadshow presentatio

  42. Slide 42: Comparable gross profit and SG&A expenses development

    Comparable gross profit and SG&A expenses development Comparable gross profit Comparable SG&A expenses (EUR million and % of net sales) (EUR million and % of net sales) • Comparable gross profit was 26% of net sales in Q2/2023 (26% in Q2/2022) – Stable business represented 56% of net sales (54% in Q

  43. Slide 43: Capital employed, Comparable ROCE and EPS

    Capital employed, Comparable ROCE and EPS Capital employed (EUR million) and Comparable return on capital Earnings per share (EPS) and Adjusted EPS, EUR employed (ROCE), before taxes (%) *Adjusted EPS. Adjusted earnings per share is an alternative performance measure that excludes the • Integration

  44. Slide 44: Cash flow provided by operating activities and net working capital

    Cash flow provided by operating activities and net working capital Cash flow provided by operating activities (EUR million) Net working capital1 and orders received (EUR million) • Cash flow provided by operating activities EUR -37 million in Q2/2023 • CAPEX2 EUR 37 million in Q2/2023 • Net working

  45. Slide 45: Services: Orders received increased to EUR 1,007 million in H1/2023

    Services: Orders received increased to EUR 1,007 million in H1/2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) H1/2022: H1/2023: H1/2022: H1/2023: H1/2022: H1/2023: EUR 911 million EUR 1,007 million EUR 720 million EUR 846 million EUR 88 m

  46. Slide 46: Automation: Orders received increased to EUR 732 million in H1/2023

    Automation: Orders received increased to EUR 732 million in H1/2023 Automation segment includes Automation Systems and starting from Q2/2022 also Flow Control Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) H1/2022: H1/2023: H1/2022: H1/2023: H

  47. Slide 47: Flow Control: Orders received amounted to EUR 427 million in H1/2023

    Flow Control: Orders received amounted to EUR 427 million in H1/2023 Orders received (EUR million)* Net sales (EUR million)* H1/2022: H1/2023: H1/2022: H1/2023: EUR 394 million* EUR 427 million EUR 343 million* EUR 389 million • Orders received amounted to EUR 427 million in H1/2023 • Net sales amou

  48. Slide 48: Automation Systems: Orders received increased to EUR 304 million in H1/2023

    Automation Systems: Orders received increased to EUR 304 million in H1/2023 Orders received (EUR million) Net sales (EUR million) H1/2022: H1/2023: H1/2022: H1/2023: EUR 253 million EUR 304 million EUR 203 million EUR 252 million • Orders received increased compared with H1/2022 – Orders received in

  49. Slide 49: Process Technologies: Orders received decreased to EUR 1,082 million in H1/2023

    Process Technologies: Orders received decreased to EUR 1,082 million in H1/2023 Orders received (EUR million) Net sales (EUR million) Comparable EBITA (EUR million and % of net sales) H1/2022: H1/2023: H1/2022: H1/2023: H1/2022: H1/2023: EUR 1,268 million EUR 1,082 million EUR 1,146 million EUR 1,25

  50. Slide 50: Pulp and Energy business line: Orders received decreased in H1/2023

    Pulp and Energy business line: Orders received decreased to EUR 489 million in H1/2023 Orders received (EUR million) Net sales (EUR million) H1/2022: H1/2023: H1/2022: H1/2023: EUR 581 million EUR 489 million EUR 542 million EUR 549 million • Orders received decreased compared with H1/2022 – Orders

  51. Slide 51: Paper business line: Orders received decreased in H1/2023

    Paper business line: Orders received decreased to EUR 593 million in H1/2023 Orders received (EUR million) Net sales (EUR million) H1/2022: H1/2023: H1/2022: H1/2023: EUR 688 million EUR 593 million EUR 604 million EUR 702 million • Orders received decreased compared with H1/2022 – Orders received i

  52. Slide 52: Orders received amounted to EUR 1,268 million in Q2/2023

    Orders received amounted to EUR 1,268 million in Q2/2023 Orders received (EUR million) Orders received in H1/2023 by area • Orders received increased in Asia-Pacific, South America and North America and decreased in China and EMEA in H1/2023 compared with H1/2022 • South America, China and Asia-Paci

  53. Slide 53: Order backlog EUR 4,414 million at the end of Q2/2023

    Order backlog EUR 4,414 million at the end of Q2/2023 Order backlog (EUR million) Structure of order backlog by segment • Order backlog was EUR 11 million higher than at the end of 2022 • Approximately 50% of the order backlog is currently expected to be realized as net sales during 2023 (at the end

  54. Slide 54: Announced orders booked in H1/2023

    Announced orders booked in H1/2023 Booked Date Description Business line Country Value quarter Q1 Feb 23 Coated board machine to Graphic Packaging International Paper USA Not disclosed, but an order of this type and scope is typically valued at EUR 140–180 million. Q1 Mar 2 Tissue line order for Met

  55. Slide 55: Announced orders booked in H2/2022

    Announced orders booked in H2/2022 Booked Date Description Business line Country Value quarter Q3 Sep 27 Key technology for Cheng Loong’s new board machine Paper Vietnam Not disclosed, but such an order is typically worth between EUR 20 and 30 million. Q3 Sep 28 A coated board making line Paper Asia

  56. Slide 56: Orders received and profitability development, annual

    Orders received and profitability development, annual Orders received (EUR million)1 Net sales and Comparable EBITA (EUR million)1 5,194 Process 5,074 4,740 Technologies 10.9% 10.5% 9.8% (Pulp and 3,986 8.9% 3,935 Energy, Paper) 3,722 3,653 2,356 7.7% 3,740 6.7% 7.1% 3,547 6.4% 6.2% 3,325 Stable bus

  57. Slide 57: Orders received and net sales split in 2022

    Orders received and net sales split in 2022 Orders received (EUR million and % of total) Net sales (EUR million and % of total) 1,285 1,347 25% 27% 1,606 1,756 32% 34% Services Services Flow Control Flow Control Automation Systems Automation Systems Pulp and Energy Pulp and Energy 1,072 1,081 551 Pa

  58. Slide 58: Services segment: Orders received split in 2022

    Services segment: Orders received split in 2022 By business unit By customer segment By geographic area 4% 10% 18% 10% 35% 33% 34% 38% 13% 17% 37% 9% 17% 5% 20% Board North America Performance Parts Paper South America Board, Paper and Tissue Solutions Tissue EMEA Rolls Fabrics Pulp China Pulp and E

  59. Slide 59: Automation segment: Orders received split in 2022

    Automation segment: Orders received split in 2022 By customer industry By product By area Flow Control1 9% Mainly 19% 12% 9% 28% OPEX-driven 10% 38% 7% CAPEX- 15% 66% driven Mainly OPEX-driven 32% 8% 47% Pulp & Paper MRO & Services North America Refining & Chemicals South America Projects Renewable

  60. Slide 60: Process Technologies segment: Net sales split in 2022

    Process Technologies segment: Net sales split in 2022 By industry By scope By area 10% 3% Pulp and Energy 23% 22% 13% 45% 48% 77% 7% 52% North America Pulp Complete mills South America Energy Rebuilds EMEA Single islands and products China Asia-Pacific 18% 8% 17% 14% Paper 13% 19% 14% 30% 68% 79% 21

  61. Slide 61: Areas: Orders received and net sales development

    Areas: Orders received and net sales development North America South America EMEA China Asia-Pacific 2,098 (EUR million and % of total) 2,022 Orders received 1,690 1,594 1,606 1,470 1,508 1,420 1260 1,320 880 885 804 755 711 771 717 686 730 621 725 670 696 48% 46% 51% 46% 588 533 43% 42% 43% 40% 572

  62. Slide 62: Areas: Business line split in 2022

    Areas: Business line split in 2022 North America South America EMEA China Asia-Pacific 9% 17% 24% 22% 22% 30% 31% Orders received 22% 47% 47% 8% 5% 55% 8% 29% 6% 8% 8% 9% 6% 13% 6% 35% 18% 14% Services Services Services Services Services Flow Control Flow Control Flow Control Flow Control Flow Contr

  63. Slide 63: Growth and profitability improvement

    Appendix Growth and profitability improvement

  64. Slide 64: Strong track record of net sales growth in all segments

    Strong track record of net sales growth in all segments Services Automation Process Technologies Net sales (EUR million) Net sales (EUR million) Net sales (EUR million) EUR +953 million EUR +700 million EUR +985 million 64 August 2023 © Valmet | Roadshow presentation

  65. Slide 65: Unique offering to support a growing market

    Unique offering to support a growing market Unique offering Strong market drivers Competitive advantage from Process Technologies • E-commerce and global trade the widest offering in the market • Renewable materials replacing plastic packaging • Conversions from paper to board • Energy transition an

  66. Slide 66: Building Valmet on positive megatrends and strategy of renewal

    Building Valmet on positive megatrends and strategy of renewal and continuous development Demand for bio-based New growth Steadily growing products and energy Strategy opportunities stable business continues to grow  The large pulp and paper  Future growth  EUR 3.2 billion stable  Strong track r

  67. Slide 67: Concrete actions to reach Comparable EBITA target of 12–14% through must-wins

    Concrete actions to reach Comparable EBITA target of 12–14% through must-wins Customer Technology Processes People  Grow stable business  Leverage strong R&D  Ensure good project  Increase procurement, over two times the for new product operations to reach a production and market growth innovati

  68. Slide 68: Process Technologies segment benefiting from growing demand for bio-based products and energy

    Process Technologies segment benefiting from the growing demand for bio-based products and energy • New pulp and paper capacity is needed as demand for bio- Net sales (EUR million) based products continues to grow • Energy transition creates a growing market for Valmet’s energy offering • Large old

  69. Slide 69: Services segment's demand driven by large and growing global installed base

    Services segment’s demand driven by large and growing global installed base Orders received (EUR million) • Valmet’s Services is a growing and recurring CAGR business ~5% • Demand driven by large and growing global installed base • Roughly EUR 8 billion addressable market estimated to grow 2% annual

  70. Slide 70: Automation segment with high growth and profitability

    Automation segment with high growth and profitability • Valmet’s Automation is a growing and recurring Orders received (EUR million) business • Large addressable target market estimated to grow ~3% annually • Target to continue to grow over two times the market growth • Sustainability, digitalizatio

  71. Slide 71: Procurement and quality cost development

    Procurement and quality cost development Implemented procurement savings of annual direct spend Quality costs (% of net sales) 4.3% 4.4% 4.3% 4.0% 3.8% 3.9% 3.7% 3.8% 4.0% 3.6% 3.3% 3.1% 2.9% 3.0% 2.6% 2.8% 2.4% 2.2%2.2% <1.5% 1.9% 1.9% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Annual goal 2

  72. Slide 72: Opportunities to strengthen segments through acquisitions

    Opportunities to strengthen Services, Automation and Process Technologies segments through acquisitions Strong track record of successful acquisitions Acquisition strategy • Opportunities to strengthen Services, Automation and • 12 acquisitions made since becoming an independent Process Technologies

  73. Slide 73: Merger of Valmet and Neles created a leading company with a unique offering

    Merger of Valmet and Neles created a leading company with a unique offering for process industries globally  Merger of Valmet and Neles was registered and the combination of Valmet’s and Neles’ business operations completed on April 1, 2022  Valmet acquired 29.5% of Neles shares in 2020 for EUR 45

  74. Slide 74: Shareholders and share price development

    Appendix Shareholders and share price development

  75. Slide 75: Largest shareholders on July 31, 2023

    Largest shareholders on July 31, 2023 Based on indicative data collected by Modular Finance # Shareholder name Number of shares % of shares and votes 1 Solidium Oy 18,640,665 10.10 % 2 Oras Invest Oy 11,500,000 6.23 % 3 Swedbank Robur Fonder 8,398,859 4.55 % 4 Varma Mutual Pension Insurance Company

  76. Slide 76: Shareholder structure on July 31, 2023

    Shareholder structure on July 31, 2023 Based on Euroclear data. The classification of sectors determined by Statistics Finland. 76 August 2023 © Valmet | Roadshow presentation

  77. Slide 77: Share of non-Finnish holders and number of shareholders

    Share of non-Finnish holders and number of shareholders At the end of June 2023, Valmet had 95,962 shareholders and 43.7% of the shares are held by investors outside Finland 100,000 58% 57% 56% 90,000 55% 54% 53% 80,000 52% 51% 70,000 50% 49% 48% 60,000 47% 46% 45% 50,000 44% 43% 40,000 42% 12/2013

  78. Slide 78: Valmet share price development

    Valmet share price development Valmet share price development vs OMXH price index, last 3 years Share price during 2023 Valmet OMX Helsinki 45 December 31, 2022 25.16 10,808 July 31, 2023 24.11 9,874 High 32.30 11,409 40 Low 23.76 9,819 Market cap (EUR million) 4,449 35 Volume 2023 % of outstanding

  79. Slide 79: Valmet's total shareholder return has outperformed 90% of European industrial companies

    Valmet’s total shareholder return has outperformed 90% of European industrial companies Development since January 2, 2014: Valmet’s share price has outperformed index  Valmet’s total shareholder return has been 449% EUR 45  Share price has increased by 370% 40  Cumulative dividend payout EUR 5.37

  80. Slide 80: Offering

    Appendix Offering Valmet <>

  81. Slide 81: Services: Strong market position with market's widest offering

    Services: Strong market position with market’s widest offering Performance Parts Fabrics Rolls and workshop Board, Paper and Tissue Pulp and Energy services Solutions Solutions  Spare parts  Paper machine clothing  Rolls  Improvement projects  Improvement projects Offering  Consumables  Filte

  82. Slide 82: Services: Unified way to serve aims at excellent customer experience

    Services: Unified way to serve aims at excellent customer experience  We aim to  Sales actions  Continuous High customer understand customer planned based on collaboration through satisfaction strategy and needs customer needs lifecycle approach  Understanding customer strategy  Aligning custom

  83. Slide 83: Flow Control: High-quality product portfolio for valve and valve automation needs

    Flow Control: High-quality product portfolio for valve and valve automation needs Flow Control market position1 Valve controllers • Valve controllers for control and on-off valves • Intelligent safety solenoids # 2–3 • Limit switches Actuators • Pneumatic actuators • Hydraulic actuators # 5–7 • Elec

  84. Slide 84: Automation Systems: High technology and competitive offering

    Automation Systems: High technology and competitive offering Distributed Control Systems (DCS) Quality Management Systems (QMS) Analyzers and Measurements • Highly integrated, renewing Valmet DNA • Valmet IQ Quality control system for pulp and • For measuring and optimizing different Automation Syst

  85. Slide 85: Automation Systems: Customers investing in improving their operations

    Automation Systems: Customers investing in improving their operations Real-time & predictive control and optimization secure connection to cloud 5. Optimization Applications Optimized production of the entire mill, plant or fleet 1. Distributed Control Systems Reliable process control Data Control 3

  86. Slide 86: Leading pulp and energy technology offering

    Leading pulp and energy technology offering Pulp Energy Complete mills and lines Single islands and products Boilers and power plants Rebuilds and conversions • Complete chemical pulp mills • Chemical pulp mill islands • Fluidized bed boilers – using • Boiler fuel conversions from from wood handling

  87. Slide 87: Unmatched scope in Board, Paper and Tissue

    Unmatched scope in Board, Paper and Tissue New instalments Rebuilds Single products Board Stock preparation and Capacity and quality recycled fiber lines improvements e.g., headboxes, press rebuilds, Paper, board and tissue surface treatment, winders, refiners machinery Focus on productivity Paper A

  88. Slide 88: Driving rebuilds towards resource-efficient board production

    Driving rebuilds towards resource-efficient board production Energy consumption1 Fiber savings1 Optimized performance Bio-packaging -18% -10% with Industrial Internet with new coating solutions 2012–2022: 2012–2022: solutions from 1,150 to 950 kWh/t from 100 to 90 g/m2 OptiFlo with OptiFormer OptiPr

  89. Slide 89: Driving development of resource-efficient tissue production

    Driving development of resource-efficient tissue production 47% less energy1 80% less water1 Less fiber consumption2 Energy /ton paper [kWh/ton] Water /ton paper [m3/ton] 3,330 3,106 12.0 2,850 2,150 1,960 1,800 1,750 7.0 5.5 4.5 4.0 3.6 2.1 • Hybrid technologies • ViscoNip press 1990 2000 2006 2010

  90. Slide 90: Management and remuneration

    Appendix Management and remuneration

  91. Slide 91: 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.)

  92. Slide 92: 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

  93. Slide 93: 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

  94. Slide 94: 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

  95. Slide 95: 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

  96. Slide 96: Current Performance Share Plans and Deferred Share Plans

    Current Performance Share Plans and Deferred Share Plans LTI plan 2021–2023 LTI plan 2022–2024 LTI plan 2023–2025 Plan name Performance Share PSP PSP and DSP PSP PSP and DSP PSP Plan (PSP) and Deferred Share Plan (DSP) Performance period 2021 (1 year) 2021–2023 (3 years) 2022 (1 year) 2022–2024 (3 y

  97. Slide 97: FORWARD

    FORWARD

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