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Interim Review,

January–June 2016

July 28, 2016

Pasi Laine, President and CEO

Kari Saarinen, CFO

AgendaInterim Review, January–June 2016

Q2/2016 in brief

Business lines’ development

Valmet Way to Serve

Guidance and short-term market outlook

New financial targets

1

2

3

5

6

Financial development4

Summary of Interim Review Q2/20167

Appendix8

Q2/2016 in brief

Order backlog at EUR 2.1 billion

Orders received decreased and net sales remained at the previous

year’s level in capital business2

July 28, 2016 © Valmet | Interim Review, January–June 20164

Q2/2016 in brief

1) Stable business = Services and Automation business lines

2) Capital business = Pulp and Energy, and Paper business lines

Net debt EUR 231 million

Profitability increased – Comparable EBITA margin at 7.1%

Orders received and net sales remained at the previous year’s level

in stable business1

Net sales split in Q2/2016


Net sales by area Net sales by business lineOrders received

EUR 692 million

Net sales

EUR 804 million

Comparable EBITA1

EUR 57 million

Comparable EBITA1

margin

7.1%

Employees

12,492

38%

9%

33%

20%

Services

Automation

Pulp and Energy

Paper

22%

8%

44%

12%

14%

North America

South America

EMEA

China

Asia-Pacific

1) Due to new regulation by the European Securities and Market Authority, Valmet has decided to replace the performance measure ‘EBITA before non-recurring items’ with

‘Comparable EBITA’. The content of items affecting comparability, i.e. items previously disclosed as non-recurring, remain unchanged and therefore ‘Comparable EBITA’

equals previously disclosed ‘EBITA before non-recurring items’ (EUR 182 million in 2015). Items affecting comparability consist of income and expenses arising from

activities that amend the capacity of Valmet’s operations or are incurred outside its normal course of business.

1,1011,023

466 480580

781 725 793 803692

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

200

400

600

800

1,000

1,200

1,400

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Orders received (LHS) Last 4 quarters (RHS)

Orders received decreased to EUR 692 million in Q2/2016


• Orders received remained at the previous year’s level in the Services and

Automation business lines, and decreased in the Pulp and Energy and Paper

business lines

• Orders received increased in Asia-Pacific and China, remained at the previous

years level in South America, and decreased in North America and EMEA

Orders received (EUR million) Orders received in Q2/2016, by area

North America

22%

South America

5%

EMEA53%

China9%

Asia-Pacific12%

267 273 242 273 293 307252 267

313 321

95

78 75

81 88

267 273242

273293

402

330 342

394 409

0

150

300

450

600

750

900

1,050

1,200

1,350

1,500

0

50

100

150

200

250

300

350

400

450

500

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Services (LHS) Automation, total (including internal) (LHS) Last 4 quarters (RHS)

Stable business orders received totaled EUR 1,475 million during the last 4 quarters


Orders received (EUR million) in stable business1

• Stable business orders received remained at the previous year’s level

• All-time high orders received in Services business line in Q2/2016

1) Including internal orders received for the Automation business line.

1,972

2,4062,312

1,998 2,0642,208

2,117 2,0742,207

2,106

0

500

1,000

1,500

2,000

2,500

3,000

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Order backlog at EUR 2.1 billion at the end of Q2/2016

• Order backlog EUR 101 million lower than at the end of Q1/2016

• About 55% of the order backlog is currently expected to be realized as net sales

during 2016

• Approximately 30% of the order backlog relates to stable business


Order backlog (EUR million)

~30%

~70%

Stable business Capital business

Structure of order backlog

Business lines’ development

Orders received and net sales at the previous year’s level in Services in Q2/2016


Net sales (EUR million)Orders received (EUR million)

• Orders received remained stable compared with Q2/2015

- Orders received increased in Asia-Pacific, South America and North America,

remained at the previous year’s level in EMEA and decreased in China

- Orders received increased in Energy and Environmental, and Mill Improvements and

remained at the previous year’s level in Fabrics, Rolls, and Performance Parts

- Changes in foreign exchange rates1 decreased orders received by

approximately EUR 6 million

• Net sales remained stable compared with Q2/2015

1) Compared with the exchange rates for January–June 2015

Q1–Q2/2016:

EUR 634 million

Q1–Q2/2016:

EUR 561 million

Q1–Q2/2015:

EUR 600 million

Q1–Q2/2015:

EUR 546 million

267 273242

273293 307

252 267

313 321

0

200

400

600

800

1,000

1,200

1,400

0

50

100

150

200

250

300

350

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Orders received (LHS)

Orders received, last 4 quarters (RHS)

224251

235

278242

304268

314

257

304

0

200

400

600

800

1,000

1,200

1,400

0

50

100

150

200

250

300

350

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Net sales (LHS)

Net sales, last 4 quarters (RHS)

Orders received at the previous year’s level and net sales increased in Automation in Q2/2016


• Orders received remained stable compared with Q2/2015

- Orders received increased in Asia-Pacific and South America, remained at

the previous year’s level in EMEA and decreased in North America and

China

- Orders received remained at the previous year’s level in Pulp and Paper

and decreased in Energy and Process

• Net sales increased compared with Q2/2015

Net sales1 (EUR million)Orders received1 (EUR million)

1) Q1/2015 orders received and the underlying figures for ‘Orders received, last 4 quarters’ and ‘Net sales, last 4 quarters’ are calculated based on Metso’s

reported figures and pro forma figures excluding Process Automation Systems and are therefore indicative only.

8570 67 66

82

10

8 8 156

62

95

78 7581

88

0

75

150

225

300

375

450

0

20

40

60

80

100

120

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Orders received, internal (from other business lines)

Orders received, external

Orders received, total (including internal)


68 66

95

5873

11 6

6

9

855

7972

101

66

81

0

75

150

225

300

375

450

0

20

40

60

80

100

120

Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Net sales, internal (from other business lines)

Net sales, external

Net sales, total (including internal)


Orders received decreased and net sales increased in Pulp and Energy in Q2/2016



• Orders received decreased compared with Q2/2015

- Orders received increased in China and decreased in all other areas

- Orders received increased in Energy and decreased in Pulp

• Net sales increased compared with Q2/2015

Q1–Q2/2016:

EUR 417 million

Q1–Q2/2016:

EUR 443 million

Q1–Q2/2015:

EUR 397 million

Q1–Q2/2015:

EUR 453 million

622560

96 66138

259206

261 238180

0

200

400

600

800

1,000

1,200

1,400

0

100

200

300

400

500

600

700

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6



181

229 234

312

222 231215

245

181

262

0

200

400

600

800

1,000

1,200

1,400

0

50

100

150

200

250

300

350

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Net sales (LHS)


Orders received and net sales decreased in Paper in Q2/2016



• Orders received decreased compared with Q2/2015

- Orders received increased in Asia-Pacific, North America and China, and

decreased in EMEA

- Orders received decreased in both Board and Paper, and Tissue

• Net sales decreased compared with Q2/2015

Q1–Q2/2016:

EUR 295 million

Q1–Q2/2016:

EUR 321 million

Q1–Q2/2015:

EUR 278 million

Q1–Q2/2015:

EUR 273 million

212190

128142 149

129

197 199186

109

0

150

300

450

600

750

0

50

100

150

200

250

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6



114 108120

186

97

177 185200

157 165

0

150

300

450

600

750

0

50

100

150

200

250

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Net sales (LHS)


Valmet Way to Serve

Committed to moving your performance forward

Safety

comes first

Close to you

Solutions to

your needs

People you

can trust

Our core commitments

Performance

• Production consumables

• Process support and optimization

Reliability

• Spare parts and components

• Maintenance and shutdown management

• Outsourcing services

• Process and automation upgrades

• Automation projects

• Industrial Internet and remote solutions

New Technology

Our services offering

Shared Journey

ForwardValmet way to serve

Financial development

Key figures Q2/2016


EUR million Q2/2016 Q2/2015 Change Q1–Q2/2016 Q1–Q2/2015 Change

Orders received 692 781 -11% 1,495 1,360 10%

Order backlog1 2,106 2,208 -5% 2,106 2,208 -5%

Net sales 804 779 3% 1,456 1,340 9%

Comparable EBITA2 57 54 6% 88 73 21%

% of net sales 7.1% 6.9% 6.1% 5.5%

EBITA 55 42 32% 85 61 39%

Operating profit (EBIT) 47 32 45% 66 46 45%

% of net sales 5.8% 4.1% 4.5% 3.4%

Earnings per share, EUR 0.21 0.14 45% 0.28 0.19 44%

Return on capital employed (ROCE), before taxes3 11% 9%

Cash flow provided by operating activities 33 17 92% 36 -3

Gearing1 27% 29%

Items affecting comparability: EUR -1 million in Q2/2016 (EUR -12 million in Q2/2015), EUR -3 million in Q1–Q2/2016 (EUR -12 million in Q1–Q2/2015)

1) At the end of period

2) Due to new regulation by the European Securities and Market Authority, Valmet has decided to replace the performance measure ‘EBITA before non-

recurring items’ with ‘Comparable EBITA’. The content of items affecting comparability, i.e. items previously disclosed as non-recurring, remain

unchanged and therefore ‘Comparable EBITA’ equals previously disclosed ‘EBITA before non-recurring items’. Items affecting comparability consist of

income and expenses arising from activities that amend the capacity of Valmet’s operations or are incurred outside its normal course of business.

3) Annualized

779

0 5 31 -12

804

Net sales inQ2/2015

Servicesbusiness line

Automationbusiness line

Pulp and Energybusiness line

Paperbusiness line

Net sales inQ2/2016

Change in net sales

Net sales EUR 25 million higher compared with Q2/2015


Net sales bridge, Q2/2015 vs. Q2/2016 (EUR million)

• Net sales increased in Pulp and Energy, and Automation business lines

• Net sales remained at the previous year’s level in Services business line and decreased in

Paper business line

Gross profit at the previous year’s level


Gross profit (EUR million and % of net sales)

• Gross profit remained stable compared with Q2/2015

• Selling, general & administrative (SG&A) expenses remained stable compared

with Q2/2015

• Actions to improve gross profit through Must-Win implementation

SG&A (EUR million and % of net sales)

23%

0%

5%

10%

15%

20%

25%

0

40

80

120

160

200

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Q2/2

016

EUR million (LHS) % of net sales (RHS)

17%

0%

5%

10%

15%

20%

25%

0

40

80

120

160

200

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

Q3/2

015

Q4/2

015

Q1/2

016

Q2/2

016

EUR million (LHS) % of net sales (RHS)

Comparable EBITA margin development


Net sales and Comparable EBITA (EUR million and %)

• Net sales remained stable compared with Q2/2015 and profitability increased

- Profitability improved due to the higher level of net sales in the Pulp and Energy business line

Comparable EBITA

(EUR million)19 54 47 63 314 22 32 48 57

Target 6–9%

224251 235

278242

371334

409

314

377295

337 354498

319

408400

445

338

427

519

588 590

777

561

779734

854

652

804

0.7%

3.7% 5.5%

6.1%

3.5%

6.9%6.4%

7.3%

4.8%

7.1%

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Capital business

Stable business

Comparable EBITA %

New target 8–10%

from 2017 onwards

43 46

117

30

-20

17 16

64

333

-40

-20

0

20

40

60

80

100

120

140

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Cash flow provided by operating activities


• Change in net working capital1 EUR -16 million in Q2/2016

• Cash flow provided by operating activities EUR 33 million in Q2/2016

• CAPEX excluding business combinations EUR -18 million in Q2/2016

Cash flow provided by operating activities (EUR million)

1) Change in net working capital, net of effect from business combinations and disposals in the consolidated statement of cash flows

-257 -249 -345 -353 -355 -265 -244 -238 -247 -181

1,101 1,023

466 480 580781 725 793 803

692

-20%

-10%

0%

10%

20%

30%

-1,000

-500

0

500

1,000

1,500

Q1/2

01

4

Q2/2

01

4

Q3/2

01

4

Q4/2

01

4

Q1/2

01

5

Q2/2

01

5

Q3/2

01

5

Q4/2

01

5

Q1/2

01

6

Q2/2

01

6

Orders received (LHS)Net working capital (LHS)Average net working capital/rolling 12 months orders received (RHS)Net working capital/rolling 12 months orders received (RHS)

Net working capital -6% of rolling 12 months orders received


• Net working capital EUR -181 million, which equals -6% of rolling 12 months orders received

• Payment schedules of large capital projects have significant impact on net working capital

development

Net working capital and orders received (EUR million)

Net debt increased compared to Q1/2016


• Gearing (27%) and net debt (EUR 231 million) increased compared to Q1/2016 due to dividend

payout

• Equity to assets ratio increased from Q1/2016

• Automation acquisition was completed on April 1, 2015

Net debt (EUR million) and gearing (%) Equity to assets ratio (%)

-39-54

-158 -166 -134

238 229178 192

231

-5% -7%

-20% -21%-17%

29% 28%

21%24%

27%

-30%

-20%

-10%

0%

10%

20%

30%

-300

-200

-100

0

100

200

300

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

Net debt (EUR million) Gearing (%)

40% 40% 41% 42%

34% 35% 35% 36% 35% 36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Q3/1

5

Q4/1

5

Q1/1

6

Q2/1

6

985 967902 877

1,239 1,240 1,214 1,2311,184 1,194

1%2% 2%

10% 10%

12%

14% 14%13%

12%

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16

Capital employed Comparable ROCE (before taxes), rolling 12 months

Capital employed and Comparable ROCE


• New target for Comparable return on capital employed (ROCE) from 2017 onwards: 15–20%

Capital employed (EUR million) and Comparable return on capital

employed (ROCE), before taxes1 (percent)

1) Rolling 12 months

Target

minimum

15%

Guidance, and short-term market outlook

Guidance and short-term market outlook

26 July 28, 2016 © Valmet | Interim Review, January–June 2016

SatisfactoryPulp and

Energy

Paper

Satisfactory

Pulp

Energy

Board and Paper

Tissue

Guidance for

2016

Services

Short-term market outlook

Guidance for 2016 (as given on February 9, 2016)

Good

Weak

Satisfactory

Satisfactory

Satisfactory

Satisfactory

Satisfactory

Good

Satisfactory

Q3/2015 Q4/2015

Satisfactory

Satisfactory

Satisfactory

Good

Satisfactory

Q1/2016

Satisfactory

Satisfactory

Good

Satisfactory

Q2/2016

Valmet estimates that net sales in 2016 will remain at the same level with

2015 (EUR 2,928 million) and Comparable EBITA in 2016 will increase in

comparison with 2015 (EUR 182 million).

Satisfactory Satisfactory Satisfactory SatisfactoryAutomation

The short-term market outlook is given for the next six months from the ending of the respective quarter.

Due to new regulation by the European Securities and Market Authority, Valmet has decided to replace the performance measure ‘EBITA before non-recurring

items’ with ‘Comparable EBITA’. The content of items affecting comparability, i.e. items previously disclosed as non-recurring, remain unchanged and therefore

‘Comparable EBITA’ equals previously disclosed ‘EBITA before non-recurring items’ (EUR 182 million in 2015). Items affecting comparability consist of income

and expenses arising from activities that amend the capacity of Valmet’s operations or are incurred outside its normal course of business.

New financial targets

New and increased financial targets from 2017 onwards


Dividend

policy

Profitability

Growth

ROCE

• Net sales for stable business to grow over two times the market growth

• Net sales for capital business to exceed market growth

• Comparable EBITA: 8–10%

• Comparable return on capital employed (pre-tax), ROCE1: 15–20%

• Dividend payout at least 50% of net profit

The new financial targets have been announced by stock exchange release on June 21, 2016.

1) ROCE (pre-tax) = (profit before taxes + interests and other financial expenses - items affecting comparability) / (balance sheet total - non-interest-bearing liabilities (average for period)).

New target

Summary of Interim Review Q2/2016


Q2/2016 in brief

1) Stable business = Services and Automation business lines

2) Capital business = Pulp and Energy, and Paper business lines

Order backlog at EUR 2.1 billion

Orders received decreased and net sales remained at the previous

year’s level in capital business2

Net debt EUR 231 million

Profitability increased – Comparable EBITA margin at 7.1%

Orders received and net sales remained at the previous year’s level

in stable business1

Appendix

0

50

100

150

200

250

300

350

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Structure of loans and borrowings


Amount of outstanding interest-bearing debt

(EUR millions)

• Average maturity of long-term loans is 3.1 years- Average interest rate is 1.2%

Main financing sources

Back-up facilities

Interest-bearing debt EUR 351 million as at June 30, 2016

EUR 88 million

EUR 86 million

European Investment Bank

Skandinaviska Enskilda Banken

Nordic Investment Bank

Amount Lender

EUR 61 million Swedish Export Kredit

EUR 95 million

None outstanding

EUR 200 million domestic commercial

paper program

EUR 200 million syndicated revolving

credit facility

Amount Outstanding

EUR 20 million

© Valmet | Interim Review, January–June 201633 July 28, 2016

Largest shareholders on June 30, 2016Based on the information given by Euroclear Finland Ltd.

# Shareholder name Number of shares % of shares and votes

1 Solidium Oy1 16,695,287 11.14%

2 Varma Mutual Pension Insurance Company 6,108,465 4.08%

3 Ilmarinen Mutual Pension Insurance Company 3,388,055 2.26%

4 Elo Pension Company 3,110,000 2.08%

5 Nordea Funds 2,865,459 1.91%

6 The State Pension Fund 1,695,000 1.13%

7 Keva 1,502,166 1.00%

8 Danske Invest funds 1,228,599 0.82%

9 Mandatum Life Insurance Company Limited 1,217,307 0.81%

10 OP Funds 990,878 0.66%

10 largest shareholders, total 38,801,216 25.89%

Other shareholders 111,063,403 74.11%

Total 149,864,619 100.00%

Largest shareholders

1) A holding company that is wholly owned by the Finnish State


Ownership structure on June 30, 2016

1) A holding company that is wholly owned by the Finnish State

The ownership structure is based on the classification of sectors determined by Statistics Finland.

Sector Number of shareholders % of total shareholders Number of shares % of shares

Nominee registered and non-Finnish holders 302 0.7% 71,588,096 47.8%

Finnish institutions, companies and foundations 2,448 5.3% 40,672,772 27.1%

Solidium Oy1 0 0.0% 16,695,287 11.1%

Finnish private investors 43,738 94.1% 20,908,464 14.0%

Total 46,488 100.0% 149,864,619 100.0%

47.8%

27.1%

11.1%

14.0%

Nominee registered and non-Finnish holders

Finnish institutions, companies and foundations

Solidium Oy

Finnish private investors

47,000

49,000

51,000

53,000

55,000

57,000

59,000

44%

46%

48%

50%

52%

54%

56%

12/2

01

3

01/2

01

4

02/2

01

4

03/2

01

4

04/2

01

4

05/2

01

4

06/2

01

4

07/2

01

4

08/2

01

4

09/2

01

4

10/2

01

4

11/2

01

4

12/2

01

4

01/2

01

5

02/2

01

5

03/2

01

5

04/2

01

5

05/2

01

5

06/2

01

5

07/2

01

5

08/2

01

5

09/2

01

5

10/2

01

5

11/2

01

5

12/2

01

5

01/2

01

6

02/2

01

6

03/2

01

6

04/2

01

6

05/2

01

6

06/2

01

6

Non-Finnish holders (LHS) Total number of shareholders (RHS)


Share of non-Finnish holders and number of shareholders

Paper, board, and tissue production trends


Source: RISI

North America (million tonnes) Europe (million tonnes)

China (million tonnes) Asia-Pacific (million tonnes)

10

20

30

40

4

6

8

10

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Tissue (LHS) Newsprint (LHS)Printing & Writing (RHS) Containerboard (RHS)Cartonboard (RHS)

10

15

20

25

30

35

40

5

7

9

11

13

15

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


5

15

25

35

45

55

2

4

6

8

10

12

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


5

10

15

20

25

30

35

40

3

4

5

6

7

8

9

10

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


Paper, board, and tissue operating rates


Source: RISI

North America Europe

China Asia-Pacific

75%

80%

85%

90%

95%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

Tissue Newsprint Printing & WritingContainerboard Cartonboard

80%

85%

90%

95%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


70%

80%

90%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


75%

80%

85%

90%

95%

100%

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19


Paper and board consumption growth trends


Population growth in

emerging markets is

larger than in

developed markets

Level of consumption

per capita in

emerging markets

clearly below that in

developed markets

This offers us long-

term growth potential

Paper and board consumption per capita vs. population

Average global consumption: 53 kg per capita

Source: RISI

0

500

1,000

1,500

2,000

2,500

0

50

100

150

200

250

Easte

rn E

uro

pe

We

ste

rn E

uro

pe

No

rth

Am

erica

Latin

Am

eri

ca

Ja

pa

n

Chin

a

Rest o

f A

sia

Ocea

nia

Afr

ica

Mid

dle

Ea

st

Consumption per capita, kg (LHS) Population, million (RHS)

0

5

10

15

20

25

0

500

1,000

1,500

2,000

2,500

Easte

rn E

uro

pe

We

ste

rn E

uro

pe

Nort

h A

me

rica

Latin

Am

eri

ca

Ja

pa

n

Ch

ina

Rest o

f A

sia

Ocea

nia

Afr

ica

Mid

dle

Ea

st

Population, million (LHS) Consumption per capita, kg (RHS)

Tissue consumption growth trends


New products and

consumption models

based on tissue are

helping increase

consumption in

developed markets

Consumption in

emerging markets is

still low, but growing

Offers us long-term

growth potential in

both developed and

emerging markets

Tissue consumption per capita vs. population

Average global consumption: 4.5 kg per capita

Source: RISI

0

200

400

600

800

1,000

1,200

1-D

ec-0

7

1-M

ar-

08

1-J

un-0

8

1-S

ep

-08

1-D

ec-0

8

1-M

ar-

09

1-J

un-0

9

1-S

ep

-09

1-D

ec-0

9

1-M

ar-

10

1-J

un-1

0

1-S

ep

-10

1-D

ec-1

0

1-M

ar-

11

1-J

un-1

1

1-S

ep

-11

1-D

ec-1

1

1-M

ar-

12

1-J

un-1

2

1-S

ep

-12

1-D

ec-1

2

1-M

ar-

13

1-J

un-1

3

1-S

ep

-13

1-D

ec-1

3

1-M

ar-

14

1-J

un-1

4

1-S

ep

-14

1-D

ec-1

4

1-M

ar-

15

1-J

un-1

5

1-S

ep

-15

1-D

ec-1

5

1-M

ar-

16

1-J

un-1

6

Eucalyptus pulp (USD/t) Northern bleached softwood pulp (USD/t)Uncoated (USD/t) Copy paper (EUR/t)Testliner (EUR/t)

Pulp and paper price trends


Source: Bloomberg

0

10

20

30

40

50

60

70

80

90

100

0

20

40

60

80

100

120

140

160

180

1-Jan-10 1-Aug-10 1-Mar-11 1-Oct-11 1-May-12 1-Dec-12 1-Jul-13 1-Feb-14 1-Sep-14 1-Apr-15 1-Nov-15 1-Jun-16

CIF ARA steam coal (USD/t) (LHS) Brent crude oil (USD/barrel) (LHS) Natural gas spot price NBP (GBP/therm) (RHS)

0

20

40

60

80

100

120

0

20

40

60

80

100


European Energy Exchange, Phelix (EUR/MWh) (LHS) Nordpool Power (EUR/MWh) (LHS)

UK Baseload (GBP/MWh) (RHS)

Crude oil, steam coal, natural gas and electricity


Source: Bloomberg

Europe

0

1

2

3

4

5

6

7

0

20

40

60

80

100

120

140


FOB steam coal Richards Bay (USD/t) (LHS) WTI crude oil (USD/barrel) (LHS) Henry Hub gas (USD/MMBtu) (RHS)

70

75

80

85

90

0

50

100

150

200


Electricity spot price, PJM (USD/MWh) (LHS) Electricity spot price, NEPOOL (USD/MWh) (LHS)US utility capacity utilization rate (RHS)

Crude oil, steam coal, natural gas and electricity


Source: Bloomberg

United States

0

1

2

3

4

5

6

7

8

9

10

2-N

ov-1

2

2-D

ec-1

2

2-J

an-1

3

2-F

eb

-13

2-M

ar-

13

2-A

pr-

13

2-M

ay-1

3

2-J

un-1

3

2-J

ul-1

3

2-A

ug-1

3

2-S

ep-1

3

2-O

ct-

13

2-N

ov-1

3

2-D

ec-1

3

2-J

an-1

4

2-F

eb

-14

2-M

ar-

14

2-A

pr-

14

2-M

ay-1

4

2-J

un-1

4

2-J

ul-1

4

2-A

ug-1

4

2-S

ep-1

4

2-O

ct-

14

2-N

ov-1

4

2-D

ec-1

4

2-J

an-1

5

2-F

eb

-15

2-M

ar-

15

2-A

pr-

15

2-M

ay-1

5

2-J

un-1

5

2-J

ul-1

5

2-A

ug-1

5

2-S

ep-1

5

2-O

ct-

15

2-N

ov-1

5

2-D

ec-1

5

2-J

an-1

6

2-F

eb

-16

2-M

ar-

16

2-A

pr-

16

2-M

ay-1

6

2-J

un-1

6

European Energy Exchange (EEX) spot price (EUR/t)

European Carbon Emission Allowance


Source: Bloomberg

Important notice


IMPORTANT: The following applies to this document, the oral presentation of the information in this document by Valmet (the “Company”) or any person on behalf of the Company,

and any question-and-answer session that follows the oral presentation (collectively, the “Information”). In accessing the Information, you agree to be bound by the following terms

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The Information is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, any locality, state, country or other

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The Information does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase any securities, and nothing

contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever, nor does it constitute a recommendation regarding any securities.

Prospective investors are required to make their own independent investigations and appraisals of the business and financial condition of the Company before taking any investment

decision with respect to securities of the Company.

No securities of the Company are being offered or sold, directly or indirectly, in or into the United States and no shares in the Company have been, or will be, registered under the

Securities Act of 1933, as amended (the “Securities Act”), or under the securities laws of any state of the United States and, accordingly, may not be offered or sold, directly or

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The Information is directed solely at: (i) persons outside the United Kingdom, (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of

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The Information contains forward-looking statements. All statements other than statements of historical fact included in the Information are forward-looking statements. Forward-

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No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the

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make to the Information that may result from any change in the Company’s expectations, any change in events, conditions or circumstances on which these forward-looking

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of the Company and have not been independently verified.

Interim Review January–September 2016

October 27, 2016

www.valmet.com/investors

Capital Markets Day

September 20, 2016Helsinki, Finland

www.valmet.com/cmd

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