Slide 1: Valmet – Converting renewable resources into sustainable results
Valmet – Converting renewable resources into sustainable results Sustainability equity story April 2024
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 2024
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 2023 Enabler for carbon neutral pulp and paper processes and fossil free bioenergy production Net sales EUR 5,532 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: Sustainability Agenda
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 carbon neu
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 Product life cycle is 10 – 100 years 95% 4% Use phase of technologies Supply chain 1% Own operations 9 © Valmet | Sustainability
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: Valmet's Climate Program has progressed well
Valmet’s Climate Program has progressed well The target to enable carbon neutral production for pulp and paper industry customers achieved seven years ahead of schedule Targets by 2030 for the entire value chain SUPPLY CHAIN OWN OPERATIONS USE PHASE OF VALMET’S TECHNOLOGIES - 20% - 80% - 20% 100% CO
Slide 12: Acknowledged leader in sustainability
Acknowledged leader in sustainability Good sustainability rankings In Dow Jones Sustainability Index for the tenth consecutive year AAA rating in the MSCI ESG Ratings assessment 2023 Achieved A rating in CDP’s climate program ranking in 2023 12 © Valmet | Sustainability equity story 2024
Slide 13: Valmet's R&D addresses global megatrends
Valmet’s R&D addresses global megatrends
Slide 14: 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 32 EUR 114 million ~1,500 research and R&D spending
Slide 15: 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 16: 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
Slide 17: 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 Valmet has provided technology for Pilot plant built together with Metsä LignoBoost is Valmet’s technology cellulose or
Slide 18: Summary
Summary Valmet <>
Slide 19: 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 20: FORWARD
FORWARD
Slide 21: Appendix
Appendix Valmet <>
Slide 22: Sustainability key figures
Sustainability key figures 2023 2022 2021 Environment Scope 1-3 CO2 emissions (1,000 t)1 64,744 92,551 72,729 Total energy consumption (tJ) 1,504 1,519 1,524 3 Water withdrawal (1,000 m ) 1,524 1,681 1,554 Waste (1,000 t) 46 43 42 NOx, SOx, and other significant air emissions (1,000 t) 0.1 0.1 0.1 2
Slide 23: 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 24: Research and development costs
Research and development costs 120 3,0% 100 2,5% 2,3 % 2,2 % 2,1 % 2,1 % 2,0 % 2,0 % 2,0 % 2,0 % 2,0 % 1,9 % 80 2,0% 1,7 % 60 1,5% 114 95 40 82 1,0% 71 75 64 64 66 60 50 20 42 0,5% 0 0,0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Research and development expenses (EUR million) % of net
Slide 25: Income tax expenses paid
Income tax expenses paid 120 100 80 60 114 99 94 40 75 67 54 53 20 36 30 21 2 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Income tax expense (EUR million) 25 © Valmet | Sustainability equity story 2024
Slide 26: Board of Directors
Board of Directors Mikael Mäkinen Jaakko Eskola Anu Hämäläinen Pekka Kemppainen (b. 1956) (b. 1958) (b. 1965) (b. 1954) Chair of Vice Chair of the Board member Board member the Board Board Finnish citizen Finnish citizen Finnish citizen Finnish citizen • M.Sc. (Eng.) • M.Sc. (Econ.) • Lic.Sc. (Tech.
Slide 27: Executive Team
Executive Team Corporate Pasi Laine Katri Hokkanen Anu Salonsaari-Posti Janne Pynnönen President and CEO CFO SVP, Marketing, Communications, SVP, Operational Development Share ownership: 199,229 Share ownership: 9,295 Sustainability and Corporate Relations Share ownership: 1,087 Share ownership: 37,
Slide 28: 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 (monthly base salary and customary fringe benefits1) – short-term and long-term incentives, and – pension benefits and customary insurances In 2023, the President and CEO’s monthly
Slide 29: 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 30: FORWARD
FORWARD