ValmetCommitted to moving our customers’ performance forward

Contents

Valmet in brief

Strategy and financial targets

Offering and R&D

Customer highlights

Summary

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Valmet in brief

2015 © Valmet4

Valmet has 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 Power 2009 Tamfelt

End of 2013Demerger toValmet and Metso

1797 Tamfelt1841 Götaverken1856 Tampella1858 Beloit1860 KMW1868 Sunds

Defibrator

2015Metso ProcessAutomation Systems to Valmet

Key figures 2014

2015 © Valmet5

Excluding Automation business line

18%

13%

43%

11%

15%40%

39%

21%

ServicesPulp and EnergyPaper

Net sales by geographic area

Net sales by business line

North America

EMEASouth America

Asia-PacificChina

Orders receivedEUR 3,071 millionNet SalesEUR 2,473 millionEBITA before NRI (1

EUR 106 millionEmployees 10,464

Market position#1-2 Services#1-2 Pulp#1-3 Energy#1-2 Paper, board, tissue

1) NRI = non-recurring items

2015 © Valmet6

18 %

12 %

44 %

11 %

15 %

North America

EMEASouth America

Asia-PacificChina

Orders receivedEUR ~3,400 millionNet salesEUR ~2,800 millionEmployees ~12,000

Market position#1-2 Services#1-3 Pulp and paper

automation #1-2 Pulp#1-3 Energy#1-2 Paper, board, tissue

Valmet’s key figures including Automation Based on combined illustrative figures from 2014 (1

36%

11%35%

19%

Net sales by business line

Services

Pulp and EnergyPaper

Automation

Net sales by geographic area

1) Combination of Valmet and Metso Process Automation System figures for 2014

2014 - a successful first year as an independent company

2015 © Valmet7

EUR million 2014 2013 Change

Orders received 3,071 2,182 41%

Order backlog 1,998 1,398 43%

Net sales 2,473 2,613 -5%

EBITA1 106 54 94%

% of net sales 4.3% 2.1%

Earnings per share, EUR 0.31 -0.42

Dividend per share, EUR 0.25 0.15 67%

Cash flow provided by operating activities 236 -43

Gearing at the end of period -21% 0%

1) Before non-recurring items

Unique offering covers process technology, automation and services

Valmet develops and supplies advanced technologies, automation solutions and services

We combine pulp, paper and energy technology, process know-how and automation – Enabling innovative product and service

development– Increasing competitiveness

Full scope offering differentiates Valmet from its competitors

2015 © Valmet8

Customer

Services Automation

Process technology

80% of Process Automation Systems’ sales to Valmet’s current customer industries

Global customer base

2015 © Valmet9

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

Pulp Paper Energy Process

201510

Valmet location

© Valmet

• Over 100 service centers• 80 sales offices• 34 production units• 15 technology centers

Strong global presence close to our customers130 locations in 33 countries

Strong global presence provides a good platform for growth

2015 © Valmet11

Illustrative net sales in 2014(EUR million and % of total)

Calculated number of employees in March, 2015 (number of employees and % of total)

North America• Large installed base to be served• Capital project

opportunities in pulp, energy, board, and tissue 504

(18%)

1,355(11%)

South America• Services growth potential through

growing installed base• Capital project opportunities

in pulp, tissue andbioenergy 347

(12%)

508(4%)

EMEA• Large installed base to be served• Machine closures in

printing and writing • Capital project

opportunities in pulp, board, tissue, and bioenergy

1,219(44%)

7,511(62%)

China• Services growth potential through

growing installed base• Capital project opportunities

in board and tissue293

(11%)

2,054(17%)

Asia-Pacific• Services growth potential through

growing installed base• Capital project opportunities

in pulp, energy, board,and tissue 407

(15%)

699(6%)

Services

#1-2

Leading market position in all focus markets

2015 © Valmet

• Customers outsource non-core operations

• Capacity increases in China,South America and Asia-Pacific

Energy

#1-3Board

#1-2Paper

#1-2Pulp

#1-2

• Growth in energy consumption

• Demand for sustainable energy

• Modernization of aging plants

• Incentives and regulation

• Growth in paper, board, and tissue consumption in Asia

• Need for virgin wood pulp, as recycling rates can not grow infinitely

• Increased size of pulp lines and mills

• World trade, e-commerce and emerging markets growth drive packaging

• Shift from plastic packaging to renewable materials

• Growth in emerging markets

• Rise in purchasing power and living standards in emerging markets

Tissue

#1Automation

#1-3

• Increasing role of digital media decreases demand for printing and writing papers

• Some growth in emerging markets

• Investments in new pulp and paper machines and power plants

• Ageing machines and installed automation systems

Estimated market size for current offering (EUR)Anticipated long-term market growth

~2%p.a.

7.5bn

~1%p.a.

2.0bn

~1%p.a.

1.4bn

~3%p.a.

1.0bn

~3%p.a.

0.6bn

~-1%p.a.

0.6bn

~1%p.a.

2.0bn

Source: Leading consulting firms, RISI, management estimates

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Market drivers

12,000 professionals serving customers globally

2015 © Valmet13

44 %

13 %

14 %

26 %

3 %

Systematic development with global training portfolio:

Champions in Services

Networking in Procurement

Leading through Lean

Agility through Sales

Excellence in Project Management

Fast Forward

Forward Strategy

Personnel by business line:

Other

Services

Pulp and EnergyPaper

Automation

Our operating principles and sustainability agenda create the basis for our sustainability work

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Operating principles• Code of Conduct• HSE policy• Sustainable Supply policy • UN Global Compact • ISO management systems

Sustainability agenda• Sustainable supply chain• Responsible operations

(HSE)• People and performance• Cost-effective sustainable

solutions• Corporate citizenship

Sustainability reporting• Annual reporting according

to global standards• Third party assurance• Sustainability indices: DJSI,

CDP

2015 © Valmet

Good development in HSE key figures

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Environmental and social responsibility 2014 2013 Change

CO2 emissions (1,000 t) 84 100 -16%

Energy (TJ) 1,253 1,374 -9%

Waste (1,000 t) 40 32 26%

Water (1,000 m3) 3,302 3,824 -14%

Lost-time incident frequency (LTIF)1

5.5 6.5 -15%

1) LTIF reflects the number of injuries resulting in an absence of at least one workday per million hours worked.

2015 © Valmet

Four business lines and five areas

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North America

South America

EMEA

China

Asia-Pacific

Services business line

Pulp and Energybusiness line

Paper business line

Automationbusiness line

Finance Strategy and Operational Development

Marketing and CommunicationsHuman Resources

Business lines

Experienced Executive Team

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Corporate

Pasi LainePresident and CEO

Markku HonkasaloCFO

Kari SaarinenSVP, Strategy and Operational Development

Julia MachareySVP, Human Resources

Anu Salonsaari-PostiSVP, Marketing & Communications

Jukka TiitinenBusiness Line President, Services

Bertel KarlstedtBusiness Line President, Pulp and Energy

Jari VähäpesolaBusiness Line President, Paper

William BohnArea President, North America

Celso TaclaArea President, South America

Vesa SimolaArea President, EMEA

Aki NiemiArea President, China

Hannu T. PietiläArea President, Asia-Pacific

2015 © Valmet

Sakari RuotsalainenBusiness Line President, Automation

Areas

Valmet’s strategy and financial targets

Valmet’s Way Forward

Our Must-Wins Customer excellence Leader in technology

and innovation Excellence in

processes Winning team

Our VisionTo become the global champion in serving our customers

Our StrategyValmet develops and supplies competitive technology and services to the pulp, paper and energy industries.We are committed to moving our customers’ performance forward.

Our MissionConverting renewable resources into sustainable results

Our Values create and strengthen our cultureCustomers - We move our customers’ performance forwardRenewal – We promote new ideas to create the futureExcellence – We improve every day to deliver resultsPeople – We work together to make a difference

Megatrends Need for renewable solutions Bio-economy and climate change Increase in standards of living

2015 © Valmet19

We continue with our Must-Wins to achieve our strategic goals

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Valmet has engaged and performance driven teams living Valmet’s shared values. Competences are globally balanced and close to customers.

Valmet has strong, capable, and committed teams close to customers and advanced sales and service concepts to provide customers with the best possible business case.

Valmet provides advanced technology, cost competitive product and services offering, and innovative new solutions. Focus on development and commercialization of biotechnologies continues.

Valmet operates with efficient processes and increasingly light asset base providing cost competitiveness and flexibility. Quality and health & safety are constantly improved.

2015 © Valmet

Strategic goalsMust-Wins

Customer excellence

Leader in technology and innovation

Excellencein processes

Customer excellence

Winningteam

Dividend policy

Financial targets

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Profitability

Growth

ROCE

Net sales growth to exceed market growth

EBITA1 before non-recurring items: 6–9%

Return on capital employed (pre-tax),ROCE 2: minimum of 15%

Dividend payout at least 40% of net profit

1) EBITA before non-recurring items = operating profit + amortization + non-recurring items2) ROCE (pre-tax) = ( profit before taxes + interests and other financial expenses ) / ( balance sheet total - non-interest-bearing liabilities )

Offering and R&D

Converting renewable resources into sustainable results

2015 © Valmet23

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

Full scope offering for the pulp andpaper industry

2015 © Valmet24

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9

5

10

1 Wood handling

2 Heat and powerproduction

3 Chemical pulping

4 Chemical recovery

5 Pulp drying

6 Recycled fiber

7 Mechanical fiber

8 Stock preparation

9 Board andpaper making

10 Tissue making

Automation• Distributed Control System

(DCS)• Performance solutions• Quality Control System (QCS)• Profilers• Analyzers and measurements• Industrial internet solutions• Automation services• Process simulators• Safety systems and solutions

Services• Mill and plant improvements• Spare and wear parts• Paper machine clothing

and filter fabrics• Roll services• Services for evaporation

plants, power and recovery boilers

• Services for environmental equipment

Technologies

Our offering for energy industry and biotechnologies

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Automation• Distributed Control System

(DCS)• Performance solutions• Analyzers and

measurements• Industrial internet solutions• Automation services

Services• Plant improvements• Rebuilds• Performance services• Services for environmental

equipment• Components and spare parts• Training

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2

3

4 6

5

1 Fuel handling

2 Gasification

3 Boiler and fluegas cleaning

4 Bio-oil production

5 Modularizedpower plants

6 PrehydrolysisFor biofuels, biomaterials and biochemicals, andbio coal production

Technologies

Our pulp and energy technology offering

2015 © Valmet26

Pulp Recovery Energy Biotechnologies

400 boilers and environmental protection systems delivered

300 complete fiber lines and 350 recovery islands delivered

• Wood handling systems

• Cooking systems• Complete fiber lines• Pulp drying systems

• Evaporation systems• Recovery islands

• Circulating fluidized bed boilers (CYMIC)

• Bubbling fluidized bed boilers (HYBEX)

• Biomass and waste gasification

• Oil and gas boilers• Waste heat recovery• Air pollution control

systems

• Pyrolysis solutions for bio-oil production

• LignoBoost for lignin extraction

• Steam treated pellets production lines

• Biomass prehydrolysisfor further refining to fuels or chemicals

2015 © Valmet27

Our paper technology offering

Board and paper Tissue

Board and paper production lines– Recycled fiber lines– Tailor made OptiConcept machines– OptiConcept M modularized machines

Rebuilds– Modernizations and grade conversions

Stand-alone products– From stock preparation to roll handling

Over 200 tissue lines delivered

Tissue production lines– Advantage DCT– Advantage NTT– Advantage Thru Air (TAD)

Rebuilds

Stand-alone products– e.g. Yankee cylinders

Over 1,600 board and paper machines delivered

Our automation offering

2015 © Valmet28

Pulp and paper Energy Oil and gas Marine

Distributed Control System (DCS) –Valmet DNA

Performance solutions Quality Control System (QCS) Profilers Analyzers and measurements

Industrial internet solutions Automation services Process simulators Safety systems and solutions

Over 4,500 automation systems and over 40,000 analyzers and measurements delivered

Advanced automation and process monitoring solutions and services:

2015 © Valmet29

Our services offering

Mill and plant improvements

Spare, wear and replacement parts and equipment

Roll services and consumables

Paper machine clothing and filter fabrics

Services for evaporation plants, power and recovery boilers

Services for environmental equipment

Maintenance outsourcing

Over 2,000 customer mills and plants served globally

Comprehensive life-cycle services:

Continuous investment in research and development to improve customers’ processes

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Customers’ needs• Increase production

efficiency• Improve competitiveness• Maximize value of raw

materials• Widen raw material base• Provide high-value end

products• Develop new innovations

and technologies

Valmet’s R&D focus• Modularized and

standardized products• Energy, water and raw

material efficiency• Automation technology• Biomass conversion

technologies

Valmet’s R&D resources• Own R&D centers and

pilot facilities • Annual R&D spend

about EUR 50 million• Around 1,800 protected

innovations• Cooperation with

universities and research institutions

2015 © Valmet

Example of our R&D work - OptiConcept M board and paper machine

Cost-efficient, high-quality, safe and flexible board making concept

Significant savings in energy, water and raw material use– Energy efficiency improvement up to

30%

Modular and compact size– Short delivery times, quick start-ups,

and less production space

Functional design brings increased safety and accessibility– Design acknowledged in Finnish

design competition in 2014

2015 © Valmet31

Customer highlights

Recent order highlights

2015 © Valmet33

Key pulp mill technologyto OKI Pulp & Paper Mills South Sumatra, Indonesia

Boiler plant to Turun Seudun EnergiantuotantoNaantali, Finland

Pulp mill rebuild and new equipment to Södra CellVärö, Sweden

Boiler plant to Hamburger Hungaria PowerDunaujvaros, Hungary

Two pulp drying lines toKlabin Ortigueira, Paraná, Brazil

Chemi-mechanical pulp (BCTMP) and a board production line to Stora Enso Beihai, Guangxi, China

Biomass based power plant to Skövde VärmeverkSkövde, Sweden

OptiConcept M board line to Pratt IndustriesValparaiso, Indiana, USA

Folding boxboard lineto Metsä Board, Husum, Sweden

Paper machine rebuild toStora EnsoVarkaus, Finland

Complete boiler plant, to ArcelorMittal, Ostrava, Czech Republic

Flue-gas cleaning system to Helen Salmisaari CHP plant, Helsinki, Finland

Advantage DCT tissue line to Absormex CMPC TissueMexico

Advantage NTT tissue line toVon Drehle CorporationNatchez, Mississippi, USA

Advantage DCT tissue line to Lee & Man Manufacturing, Yongchuan, China

Advantage TAD tissue line toFirst Quality Tissue,Anderson, South Carolina, USA

Pulp mill key technology to Metsä FibreÄänekoski, Finland

Key technology to bioproduct mill

New bioproduct mill with 1.3 million tonnes pulp production– EUR 1.2 billion investment is the largest

investment of the forest industry in Finland

Valmet delivers key technology– Recovery boiler, pulp drying line, gasification

plant, lime kiln and a mill wide Valmet DNA automation system

– Production at the new mill is scheduled to begin during the third quarter of 2017

Maximized bioenergy utilization– Lime kiln fuelled by biogas from gasification

plant– High power features in recovery boiler

→ mill is able to sell more bioelectricity to the market compared to own consumption

2015 © Valmet34

Metsä Fibre, Äänekoski, bioproduct millFinland

Photo: Metsä Group – illustration of the new bioproduct mill

Major rebuild and new equipment for a pulp mill

Södra Cell’s Värö pulp mill– Over EUR 400 million investment– Production capacity increase from 425,000

tons to 700,000 tonnes per year

Valmet delivers major rebuild and some new equipment– New cooking plant and upgrades of wood

handling, fiber line, evaporation plant, recovery boiler, recausticizing, flash dryer, pulp dryer and baling.

– Earlier also new lime kiln technology implemented at the mill by Valmet

Work proceeding according to schedule – all upgrades planned to be completed in Q3/2016

© Valmet35

Södra Cell’s Värö pulp millVarberg, Sweden

Photo: Ola Åkeborn / Södra

2015

Major pulp mill expansion

2015 © Valmet36

CMPC Celulose Riograndense, Guaíba II pulp millBrazil

CMPC Guaíba pulp mill second line– Annual production capacity 1.3 million

tonnes of bleached eucalyptus market pulp– Addition to the old fiber line of 0.5 million

tonnes

Valmet delivered technology – Cooking plant and fiber line, pulp drying and

baling– Chemical recovery with evaporation, power

boiler, recovery boiler, causticizing and lime kiln

– Non-condensable gas treatment system

Valmet delivered automation system– Integrated Valmet DNA automation solution– Operator training simulator

One of the world's largest pulp mills

2015 © Valmet37

Suzano Papel e Celulose pulp millImperatriz, Maranhão, Brazil

The Suzano Maranhão pulp mill– Annual production capacity 1.5 million

tonnes of bleached eucalyptus market pulp

Valmet delivered complete pulp mill technology – Wood handling, cooking plant and fiber line,

pulp drying and baling, evaporation, power boiler, recovery boiler, causticizing and lime kiln

Valmet delivered mill wide automation system – Integrated mill wide DCS with 40,000 I/O’s,

QCS and Profilers – Web runnability monitoring and Condition

monitoring

OptiConcept M board production line

New board production line started up in 2014– 300,000 tonnes per year – 100% recycled fluting grades

Valmet delivery– OptiConcept M boardmaking line– Complete mill engineering, installation and

supervision services related to commissioning, testing and start-up

Excellent combination of high quality, productivity and low operating costs

2015 © Valmet38

Siam Kraft Industry Co., Ltd. In SCG Paper, Bang Pong mill, PM 16Ratchaburi, Thailand

Greenfield containerboard machine, automation and long-term service partnership

Greenfield containerboard mill with annual capacity of 400,000 tonnes, replaces 3 old mills – New mill bring cost savings and increases

water and energy efficiency

Extensive automation solutions– Automation and information management

systems – Quality Control System, profilers, analyzers

and condition monitoring system

Long-term services partnership– Valmet has full responsibility for mill

maintenance – Process support agreement and

consumables contract

2015 © Valmet39

Orora, Botany B9, Board MillAustralia

Paper machine grade conversion rebuild

Conversion from fine paper to lightweight containerboard grades

Valmet delivers extensive paper machine rebuild– New headbox, rebuilds of forming section,

press section, dryer section, calender, reel and winder

– Containerboard machine is scheduled to start up during Q4/2015

Grade conversion rebuild enables adjusting to global market changes– Decrease in printing and writing papers and

increase in renewable packaging board demand

2015 © Valmet40

Stora Enso, Varkaus PM 3Finland

Photo: Stora Enso

New machine for folding boxboard production

Metsä Board invests in new folding boxboard production line at Husummill, Sweden. – The new machine will produce high-quality

folding boxboard with an annual capacity of 400,000 tons.

– The start-up of the machine is scheduled for the beginning of 2016.

Valmet delivers new technology and rebuild of selected machine parts– New wet end of the latest OptiConcept M

design with headboxes, forming section and press section

– Rebuild of the off-machine coater, winder and the roll wrapping line.

2015 © Valmet41

Metsä Board, Husum BM1Sweden

Photo: Metsä Group

High efficiency tissue technology

Fabrica Papel de San Francisco, Tissue mill Mexico

201542

New tissue production line – Annual tissue production 30,000

tonnes

Valmet’s Advantage NTT tissue technology provides high quality combined with fiber and energy efficiency– Flexibility between plain and textured

tissue production– High tissue bulk and softness

properties Less energy consumption

compared with conventional or structured tissue grades.

© Valmet

Automation for refineries

Neste Oil produces renewable diesel with NExBTL production technology

Valmet deliveries to Singapore and Rotterdam refineries– Each plant is controlled by two Valmet DNA

automation systems Redundancy for all the major system

parts Integrated to safety and reporting

systems– Field device management is controlled by

Valmet DNA Field Device Manager

Also, Neste Oil Porvoo and Naantalirefineries in Finland are controlled by Valmet DNA

2015 © Valmet43

Neste Oil renewable diesel refinerySingapore

Biomass based power boiler and automation solutions

Biomass based combined heat and power plant – Valmet delivered HYBEX power boiler, flue-

gas cleaning and fuel handling systems– Plant-wide Valmet’s automation and

information management system, BFB combustion optimizer and fuel handling controls Fully integrated information

management, environmental monitoring and reporting

Results reached with Valmet DNA automation solution:– Efficient process control, reporting and

communication– User-friendly interface enables efficient

operations and quick decision making to maintenance needs

2015 © Valmet44

Dalkia, Facture power plant, France50 MW electricity and 74 MW process steam

Lingnin separation as part of pulp mill process

LignoBoostTM lignin separation process connected to pulp mill chemical recovery– Lignin can be utilized as renewable fuel replacing fossil fuels and

as new bio-material for many industries

Domtar Plymouth, USA Annual yield of 25,000 tons lignin

– Decreased use of fossil fuel– Increase of pulp production capacity by 5% and efficiency by off-

loading the recovery boiler– Domtar sells recovered lignin as BioChoiceTM product

Stora Enso Sunila mill in Finland LignoBoost plant produces 50,000 metric tons of dried

lignin per year

2015 © Valmet45

Domtar Plymouth, North Caroline, USA

Stora Enso Sunila, Kotka, Finland

Gasification plant for energy productionCirculating fluidized bed (CFB) gasification Partial or complete fuel change in existing power plants or in

industrial furnaces – from fossil fuels to biomass

High efficiency Waste-to-Energy technology for electricity production

Vaskiluodon Voima combined heat and power (CHP) plant: The world’s biggest CFB gasification plant

– The gasifier is integrated with the existing coal-fired plant. – Possible to replace 25-40 percent of the coal with local biomass,

mainly forest residues.

Lahti Energia, Kymijärvi II: Gasification plant that converts waste into product gas

– Reduction of fossil fuels and emissions – 170,000 tonnes of coal replaced

by waste-fuelled energy

2015 © Valmet46

Vaskiluodon Voima, Finland

Lahti Energia, Kymijärvi II, Finland

Summary

Valmet - Summary

A leading technology, automation and services provider for pulp, paper, energy industries

– Unique offering with process technology, automation and services

12,000 professionals serving global customer base

Net sales EUR 2.8 billion (illustrative for 2014)

– Almost half of the sales from stable Services and Automation businesses

– Increasing demand of tissue, board, pulp and energy creates long-term growth possibilities

Vision to become the global champion in serving our customers

Delivering state of the art technology, automation and services to customers around the world

2015 © Valmet48