Project ManagementSupport (PMO)Aleksi Salmirinne

Director, Project Management Support

Valmet, Pulp & Energy business line

16.5.2016

Agenda

ü Who am I?ü Valmet and Pulp & Energy business lineü Way to operate in Project Executionü Project Management Support (PMO)

– Organization– Role and responsibilities– Transparency and predictability

ü Questions and discussion

17 May, 2016 © Valmet | Author / Title2

Who am I?

17 May, 2016 © Valmet | Author / Title3

2016 © Valmet4

Over 200 years of industrial history

1942Rauma-Raahe

1951Valmet

1968-1996Several M&As i.e.1986 KMW1987 Wärtsilä paper finishing machinery1992 Tampella Papertech

1999Metso createdthrough merger ofValmet and Rauma

Key acquisitions2000 Beloit Technology2006 Kvaerner Pulping

Kvaerner Power2009 Tamfelt

End of 2013Demerger toValmet and Metso

1797 Tamfelt1841 Götaverken1856 Tampella1858 Beloit1860 KMW1868 Sunds

Defibrator

2015Metso ProcessAutomation Systemsto Valmet

Key figures

2016 © Valmet5

Net sales by areaNet sales by business lineOrders receivedEUR 2,878 million

Net salesEUR 2,928 million

EBITA1

EUR 182 million

EBITA1 margin6.2%

Employees12,306

39%

8%31%

23%

ServicesAutomationPulp and EnergyPaper

21%

11%

45%

10%

13%

North AmericaSouth AmericaEMEAChinaAsia-Pacific

1) Before non-recurring items (NRI)Stable business = Services and Automation business linesCapital business = Pulp and Energy, and Paper business lines

20166 © Valmet

Strong, global presence - a good platform for growth

North America

1,367

• 17 service centers• 7 production units• 8 sales offices

EMEA

7,747

• 16 R&D centers• 63 service centers• 21 production units• 54 sales offices

South America

531

• 3 service centers• 2 production units• 5 sales offices

Asia-Pacific

706

• 10 service centers• 16 sales offices

100 service centers, 86 sales offices, 34 production units, 16 R&D centers

China

1,955

• 8 service centers• 6 production units• 3 sales offices

Calculated number of personnel on December 31, 2015

Four business lines and five areas

2016 © Valmet7

North America

South America

EMEA

China

Asia-Pacific

Servicesbusiness line

Pulp and Energybusiness line

Paperbusiness line

Automationbusiness line

Finance Strategy and Operational Development

Marketing, Communications and SustainabilityHuman Resources

2016

Process technology, services and automationValmet’s unique offering differentiates the company from its competitors

© Valmet8

Customer

Process-technology

Services Automation

Converting renewable resources intosustainable results

CPDU_H_2310_014-02 © Valmet P&E9

End-products

Services

Automation

Technologies

Rawmaterials

Customerindustries

Heat Electricity Chem pulpDiss pulp Mech pulp Paper Board Tissue

Biogas Biofuels Biochemicals New paper gradesBiomaterials

Energy production Biofuel refining Pulp Paper

Waste Recycled paper

Pulp

Agro Wood

Energy Paper

Market position Pulp #1-2 and Energy #1-3

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1) Net sales by business line on a carve-out basis for the periods 2010-2013 indicated (excl. Intra-Metso net sales)

699

975

1 198

907 956 913

2010 2011 2012 2013 2014 2015

200 wood handling systems250 fluidized bed boilers500 air quality control systems400 environmental systems470 cooking systems300 complete fiber lines400 evaporation systems350 recovery islands200 mechanical pulping lines350 pulp drying systems

Net sales (M€)1

Pulp and Energy Business Line

Key figuresPulp and Energy Business Line

Net sales in 2015: 913 M€

Net sales of Grouptotal:

31%

Pulp/Energy split: 66/34

CPDU_H_2310_014-02 © Valmet P&E

• Chemical Pulp Mills• Mechanical Pulp Mills• Fiberboard plants• Dissolving Pulp Mills

• Ethanol industry• Chemical Industry• Pellet producers• Technology developers• Pulp and paper industry• Utilities

• Municipalities• Utilities• IPPs• Pulp Mills• Process industries

Serving a broad range of customers inthe three main business sectors

11

Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners.

Heat and PowerGeneration Pulp Mills Biotechnologies

CPDU_H_2310_014-02 © Valmet P&E

Typical capital Projects - Basic informationü Project scale

– On average 50 new over 1M€ projects per year– Typical project value 50 MEUR, range 20…150 MEUR– Mega projects involving multible process areas (e.g. Pulp mill)

ü Contract types– EPC = Engineering, Procurement and Construction– EPS = Engineering, Procurement and Supervision– Target Price and Handling Fee type contracts occassioanally

ü Project organization– Project Manager (Customer main contact, contract management)– Engineering Manager (project technical management)– Site Manager and Commissioning Manager

ü Typical delivery time 24 mths to Taking Over– Warranty period 24 mths– Performance Test– Transfer to Service typically after Taking Over

Project Execution – Way of Operation

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Araucaria

Gothenburg,Sundsvall, Karlstad

Charlotte, Frorence,Atlanta

Chennai, Gurgaon

Tampere, Raisio, Vantaa,Ulvila, Jyväskylä

EMEA

NAM

SAM

One global technologyGlobal operating model and resource poolingLocal execution with global sourcingGlobal tools and steering

CHN

AP

ShanghaiCopenhagen

Valmet Engineering Center• Global detail engineering services

Business Center (Area)

Technology Center (Product Home)

Project execution model selection

Execution model

Scope &delivery

schedule

Product

Projectlocation &customer

17 May, 2016 © Valmet | Author / Title14

Project leaderEngineering split

Delivery split

Cikarang Listrindo CYMIC - Project Organization

PROJECT MANAGER

Project Planning and ControlP SreesivakumaranDocument ControlS Ravikannan

QUALITY ASSURANCE

PROCESS ENGINEERING SITE SERVICES

ERECTION

COMMISSIONING

E & ISUPPLY MGMTMANUFACTURING

WORKSHOPS

LAYOUT & EQUIP ENGG- Harri Uusi-Mäkelä &Kangas Seppo- T Dhinakaran

E&I ENGINEERING-

TECHNOLOGY MANAGER

STEERING COMMITTEE• Monthly project review• PEM / Risk management•Technology / Design Review

Pekka Lehtonen

MN Senthil KumarElina Holmstrom

PROJECT DIRECTORRisto HokajärviSenthil Kumaran

Pr.PART-Tuomas Etula- R Gajendran

CSA-M Sujatha- HeimoTaavitsainen

DUCTING &PLATE WORK-D Vijayakumar- Harri Uusi-Mäkelä& Seppo Kangas(plate work)

PIPING-S Soundarajan-Niko Panttila

HSES.Swaminathan

ShippingJ LoganathanBirgit Viitanen

Document ID: P00148921,Revision:04 / 9 Jan 201415 INTERNAL

PROCESS ENG.

Delivery supervisionNN / POWINJuha Rajala

Valmet

North America

China

Asia Pacific

South America

Finance Strategy and Operational Development

Human Resources Marketing and Communications

Services Pulp & Energy Paper

January 4, 201616

INTERNAL

Automation

Pulp Mill Sales

AP

Delivery Operations

Pulp and Energy

NA

EMEA

China

SA

17May 17, 2016

FiberProcessing

Services

1) Belongs to Valmet Legal and reports to Rasmus Oksala

Heat andPower

Generation

Recovery Wood andPulp

Handling

Biotechand

Environ-mental

Systems

Finance Human Resources and Strategy LegalInternal Communications

Project Management Support

Delivery OperationManagement Office

Role and responsibilities of Project ManagementSupportü The Project Management Support will operate P&E wide in all business units

ü Support P&E wide Project Execution

ü Strategic and annual planning for P&E Project Execution

ü Ensure transparence and predicability with project governance

ü Coordination of development and maintenance of the project management processesand tools (owner of P&E deliver process)– ERP system incl. cost estimation tools, interface to DW PMT– Schedule, Pulse & PEM– Reporting concept, reviews and templates– R&OM tools– WBS structure– Workload forecasting– Change management etc.

ü Represent P&E Project Execution in Valmet level and external discussions

17 May, 2016 © Valmet | Author / Title18