Sustainability –Contributing to businessgrowth8.11.2016Women in Tech 2016

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

Explore sustainabilityat Valmet

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

How to ensure leadershipin sustainability?

1.Have closeconnectionto the topmanagement.

Sustainablesupply chain

We enhance our supplychain management andthe transparency of ourvalue chain.

2.Have astrategy andstick to it

3.Make changemanagementplan

4.Plant seedsearly

5.Empowerpeople