Valmet key figures
2016 © Valmet2
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
Laura PuustjärviHead of Sustainability
ü Leading Valmet´s corporate sustainability work since2013
ü Main achievements include a successful changemanagement to integrate sustainability in company´sbusiness strategy, in the minds of top managementand into function-level annual targets and actions inprocurement, sales, HR, strategy, R&D and legal
ü Annual key statistics:– 500 people trained– 53 supplier sustainability audits– 110 days on the road– Continuous dialogue with Valmet´s management, investors,
customers and suppliers
ü Sustainability Manager at Metso since 2011ü Sustainability Specialist at Finnair since 2007
I believe inachievingextraordinary resultsthroughcollaboration andmake workingrewarding
360° approach to sustainability as part of Valmet´sstrategy
22.9.20165
Resource efficientand clean world
Converting renewable resources into sustainable results
We develop sustainablesupply chain practices
Supply chain
Health, safetyand environment
We protect the safetyof our people andpartners and minimizeour environmental
impactOur people
We are a responsibleemployer and promotediversity
Our solutions
We develop and providesolutions that supportsustainability
Corporatecitizenship
We are trusted partnerand respected corporatecitizen
Our Mission
360°
Digitalization and newtechnologies
Aware, urban andglobal customer
Sustainability at Valmet
1 November, 2016 © Valmet | Author / Title6
Sustainability is part of our everyday operations and founded on ouroperating principles
ü Code of Conduct and relatedpolicies
ü Valmet’s valuesü Compliance with UN Global
Compact and selected globallyacknowledged principles
ü ISO 9001, ISO 14001 andOHSAS 18001 managementsystems
Guiding principles Sustainability360º agenda Comprehensive reportingü Sustainable supply chainü Health, safety and
environmentü People and performanceü Sustainable solutionsü Corporate citizenship
ü Annual sustainability reportingaccording to global standards(GRI) and assurance by athird party
ü Reporting to third partysustainability rankings andindices
SustainableSupply Chainpolicy
Sustainabilityriskassessment
Supplier self-assessments
Sustainabilityaudits
We have established a global suppliersustainability management process
20167
All suppliers arerequired to signValmet’s SustainableSupply Chain policy
All suppliers areevaluated through afive-level sustainabilityrisk assessment
Weak result in riskassessment lead tosupplier self-assessment
Weak result in selfassessment lead toaudit.
We aim to audit allhigh risk suppliers inthe long term.
91 audits executedwith 3rd party in2015-2016
Required from all suppliers Required based on supplier risk assessment
Results: Sustainable supply chain
© Valmet
Sustainable supply chain statistic 2015-2016
1 November, 2016 © Valmet | Author / Title8
450Valmeteesreceivedtraining
91 suppliersustainability
audits
700corrective
actions
430 self-assessments
sent
100% ofsuppliers
assessed onsustainability
risk
11 000policies sentto suppliers
globally
0
2
4
6
8
10
12
14
16
18
Axi
sTi
tle
Axis Title
LTIFTRIF
22.9.20169
We have continuously improved our safetyperformance
LTIF = LT1 + LT4 (per million work hours, Valmet personnel)TRIF = LT1 + LT4 + MT+RW (per million work hours, Valmet personnel)
Minimumsafety
standards(First 8)
Globalincidentreportingsystem
HSE in allagendas
Minimumsafety
standards(Next 5)
LeadershipHSE walks
HSEnotificationand alerts
GlobalHSEaudits
Quarterlyfollow-up of
units ofconcern
GlobalHSEpolicy
MonthlyHSE
reporting
CommonSite HSEroutines
Target byend of 2018:
LTIF < 2TRIF < 5
Incident frequencydevelopment:rolling 12 month, permillion work hours
Results: Health, safety and environment
TRIF ; 7,6
LTIF ; 2,8
We have steadily progressed towards our 2020targets
2016 © Valmet10
Results: Health, safety and environment
Energy CO2 emissions Water Waste
Energy-7,6%
CO2 emissions-12%
Water-20,7%
Non-hazardouswaste +22,6%
New foundry acquiredin Sweden in 2013
Achieved emission reductions in 2013‒2015
Hazardous waste-18,1%
Our personnel’s engagement has developedpositively
2016 © Valmet11
• 81% of employees responded to the engagement survey in 2015• Personnel engagement increased by 9 percentage points• Whole staff is acquainted with Valmet's Code of Conduct and has
completed the online training• We launched a global training portfolio with 6 new training programs
Participation inpersonnelengagement survey
56%65%
2014 2015
Personnelengagementindex
Results: Our people
68 %81 %
2014 2015
We improve products and services and bring newinnovations to market
2016 © Valmet12
Our R&D focus areas:• Advanced and competitive technologies and services• Raw material, water and energy efficiency• Promotion of renewable materials
Results: Sustainable solutions
OptiConcept Mboard and papermachine
Advantage NTTtissue machine
Valmet DNAdistributedcontrol system
Valmet IQ onlinequalitymanagementsolution
High-powerrecovery boiler
Examples of success concepts and products:
We engage with local communities
2016 © Valmet13
ü Valmet hasparticipates in socialand environmentalprograms through twolocal non-profitorganizations since2011
ü One of the maintargets is to developbasic education in thestate of Maranhão
Brazil NepalChina Africa
ü New water filters forthe Keng ZhenCentral PrimarySchool
ü The target was toensure the availabilityof fresh water forcooking and drinkingat the school
ü Monetary support forcatastrophe victims inNepal, which was hitby a severeearthquake in April
ü The donation wastargeted at first aidand rebuilding work
ü A donation for Savethe Children as part ofour SeasonalDonation
ü The donation wasused to help droughtvictims in Africa
Results: Corporate citizenship
Sustainablesupply chain
We enhance our supplychain management andthe transparency of ourvalue chain.
2.Have astrategy andstick to it