Valmet's Interim Review January-June 2015

Strong start for Automation as part of Valmet – profitability reached the targeted range in Q2/2015

Interim Review,

January–June 2015

July 30, 2015

Pasi Laine, President and CEO

Markku Honkasalo, CFO

Agenda

Q2/2015 in brief

Business lines’ development

Financial development

Summary of Interim Review Q2/2015

Appendix

1

2

3

5

6

Interim Review, January–June 2015

Guidance and short-term market outlook4

Q2/2015 in brief

• Orders received decreased from the high level in Q2/2014 in Pulp and Energy, and Paper business lines

• Net sales increased in Paper and remained at the previous year’s level in Pulp and Energy

Orders received decreased and net sales increased in capital business

• Orders received increased in Services compared with Q2/2014, strong quarter in Automation

• Net sales increased in Services compared with Q2/2014, strong quarter in Automation

Orders received and net sales increased in stable business

July 30, 2015 © Valmet4

Q2/2015 in brief

1) EBITA = Earnings before interest, taxes and amortization and non-recurring items

• EBITA1 more than doubled to EUR 54 million

• EBITA1-margin increased to 6.9 percent

Good development in profitability

Net debt increased due to Automation acquisition

• Net debt EUR 238 million, and gearing 29%

• Cash flow provided by operating activities EUR 17 million

• Order backlog EUR 144 million higher than at the end of Q1/2015

Order backlog at EUR 2.2 billion

• Acquisition of Process Automation Systems was completed on April 1, 2015

• Automation became Valmet’s fourth business line – Q2/2015 the first reported quarter for Automation

• Positive feedback from customers and employees

Strong start for Automation as part of Valmet

Net sales split in Q2/2015


21%

9%

43%

10%

17%

39%

9%

29%

23%

Net sales split by

geographic area

Net sales split by

business line Orders received

EUR 781 million

Net sales

EUR 779 million

EBITA before NRI1

EUR 54 million

Employees

12,524

1) NRI = non-recurring items

Stable business net sales EUR 371 million

Services

Automation

Pulp and Energy

North America

EMEA

South America

Asia-Pacific

ChinaPaper

Key figures Q2/2015


1) At the end of period

2) Before non-recurring items

3) After non-recurring items

4) Annualized

EUR million Q2/2015 Q2/2014 Change Q1–Q2/2015 Q1–Q2/2014 Change

Orders received 781 1,023 -24% 1,360 2,124 -36%

Order backlog1 2,208 2,406 -8% 2,208 2,406 -8%

Net sales 779 588 33% 1,340 1,107 21%

EBITA2 54 22 >100% 73 26 >100%

% of net sales 6.9% 3.7% 5.5% 2.3%

EBIT3 32 16 96% 46 9 >100%

% of net sales 4.1% 2.8% 3.4% 0.8%

Earnings per share, EUR 0.14 0.07 97% 0.19 0.03 >100%

Return on capital employed (ROCE), before taxes4 9% 3%

Cash flow provided by operating activities 17 46 -63% -3 89

Gearing1 29% -7% 29% -7%

Non-recurring items: EUR -12 million in Q2/2015 (EUR 0 million in Q2/2014), EUR -12 million in Q1–Q2/2015 (EUR -6 million in Q1–Q2/2014). Costs

related to acquisition of Automation amounted to approximately EUR 10 million in Q2/2015.

267 273 242 273 293 307

85

622 560

96 66138

259

212190

128 142149

129

1,1011,023

466 480580

781

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

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

Services (LHS) Automation (LHS)Pulp and Energy (LHS) Paper (LHS)Last 4 quarters (RHS)

18582 135 88

189 19624 194 23 40

50 38

437

567

189 277202

443

35

121

5435 54

45

42059

66 41 85

58

1,1011,023

466 480 580

781

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

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

North America (LHS) South America (LHS)EMEA (LHS) China (LHS)Asia-Pacific (LHS) Last 4 quarters (RHS)

Growing trend in orders received – stable business orders received EUR 392 million

• Orders received increased in Services: The increased focus is showing results

• Orders received EUR 85 million in Automation

• Orders received decreased in Pulp and Energy: One large pulp order in Q2/2015

• Orders received decreased in Paper: Increase in Tissue, decrease in Board and Paper

• Orders received increased in North America


Orders received (EUR million),

by business line

Orders received (EUR million),

by area

1,972

2,4062,312

1,998 2,0642,208

0

500

1,000

1,500

2,000

2,500

3,000

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


• About 60% of the order backlog is currently expected to be realized as sales

during 2015

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


Order backlog (EUR million)

~30%

~70%

Stable business Capital business

Structure of order backlog

224 251 235 278 242

371

519

588 590

777

561

779

0.7%

3.7% 5.5%

6.1%

3.5%

6.9%

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

Capital business

Stable business

EBITA-%

EBITA target 6–9%

EBITA-margin reached the targeted range


Net sales and EBITA before NRI (EUR million)

• Net sales and profitability increased compared with both Q2/2014 and Q1/2015

- Profitability improved due to the higher level of net sales, improved gross profit, and the acquisition of the

automation business

- Changes in foreign exchange rates1 increased net sales by EUR 31 million and EBITA by EUR 2 million

EBITA before

NRI (EUR million)194 22 32 48

1) Compared with the exchange rates for April–June, 2014

54

Good development in gross profit


Gross profit (EUR million and % of net sales)

• Gross profit increased, also when excluding the impact of Automation

• Selling, general & administrative (SG&A) expenses under control

• Further actions to improve gross profit through Must-Win implementation

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

23%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

20

40

60

80

100

120

140

160

180

200

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

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

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

20

40

60

80

100

120

140

160

180

200

Q1/2

014

Q2/2

014

Q3/2

014

Q4/2

014

Q1/2

015

Q2/2

015

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

Key Must-Win objectives to increase the profitability


Improve project

and service

margin

Harmonization of

processes

Localization of

competencies

Better selection of

sales cases

Development in

project

management

Common quality

development

approach

Quality tools and

processes

Highlight the

importance of

quality initiatives

and accountability

Reduce quality

costs and lead

times

Increase sourcing

from cost

competitive

countries

Increase use of

sub-contracting

Consolidation of

shipment and

warehouse

network

Savings in

procurement

Improve product

cost

competitiveness

to increase gross

profit

Focus on cost

efficient design

Modularity and

standardization

Business lines’ development

Growth in orders received and net sales in Services


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

• Services orders received increased compared with Q2/2014

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

remained stable compared with Q2/2014 in EMEA and North America

- Orders received decreased in Mill Improvements, and increased in all other

business units

- Changes in foreign exchange rates1 increased orders received by

approximately EUR 16 million

• Net sales increased compared with Q2/2014

1) Compared with the exchange rates for April–June, 2014

267 273242

273293 307

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

Orders received (LHS)

Orders received, last 4 quarters (RHS)

224251

235

278242

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

Net sales (LHS)

Net sales, last 4 quarters (RHS)

Q1–Q2/2014:

EUR 540 million

Q1–Q2/2015:

EUR 600 million

Q1–Q2/2014:

EUR 475 million

Q1–Q2/2015:

EUR 546 million

85

1084

62

95

0

20

40

60

80

100

120

140

160

Average quarterin 2014

Q1/15 Q2/15

Orders received, internal (from other business lines)

Orders received, reported

Orders received, total (including internal)

68

11

74

55

79

0

20

40

60

80

100

120

140

160

Average quarterin 2014

Q1/15 Q2/15

Net sales, internal (from other business lines)

Net sales, reported

Net sales, total (including internal)



Net sales2 (EUR million)Orders received1, 2 (EUR million)

• Orders received EUR 95 million in Q2/2015

- Internal orders received amounted to EUR 10 million

- EMEA accounted for ~60% and North America for ~20% of orders received

- Pulp and Paper accounted for ~70% and Energy and Process for ~30% of

orders received

• Net sales EUR 79 million in Q2/2015

- Internal net sales amounted to EUR 11 million

1) Q1/2015 orders received is calculated from Metso’s reported figures and pro forma figures excluding Process Automation

Systems and are therefore indicative only. Q2/2015 figures are Automation business line figures.

2) Average quarter has been calculated by dividing 2014 figures by 4 (in 2014, orders received EUR 336 million and net sales

EUR 297 million).

Pulp and Energy orders received EUR 259 million, net sales stable



• Orders received decreased compared with Q2/2014

- Orders received increased in North America, and decreased in other areas

- Orders received decreased in both Pulp and Energy

• Net sales remained stable compared with Q2/2014

622560

96 66138

259

0

200

400

600

800

1,000

1,200

1,400

1,600

0

100

200

300

400

500

600

700

800

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5



181

229 234

312

222 231

0

200

400

600

800

1,000

1,200

1,400

1,600

0

50

100

150

200

250

300

350

400

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Net sales (LHS)


Q1–Q2/2014:

EUR 1,182 million

Q1–Q2/2015:

EUR 397 million

Q1–Q2/2014:

EUR 410 million

Q1–Q2/2015:

EUR 453 million

Paper orders received EUR 129 million, net sales increased



• Orders received decreased compared with Q2/2014

- Orders received increased in North America, remained stable compared

with Q2/2014 in EMEA, South America and Asia-Pacific, and decreased in

China

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

• Net sales increased compared with Q2/2014

212190

128142 149

129

0

150

300

450

600

750

900

0

50

100

150

200

250

300

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5



114 108 120

186

97

177

0

150

300

450

600

750

900

0

50

100

150

200

250

300

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Net sales (LHS)


Q1–Q2/2014:

EUR 402 million

Q1–Q2/2015:

EUR 278 million

Q1–Q2/2014:

EUR 222 million

Q1–Q2/2015:

EUR 273 million

Financial development

43 46

117

30

-20

17

-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

Cash flow provided by operating activities


• CAPEX excluding business acquisitions (EUR -9 million) less than depreciation (EUR -15 million)

Cash flow provided by operating activities (EUR million)

-257 -249 -345 -353 -355 -265

1,101 1,023

466 480 580781

-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


Net working capital (LHS)

Net working capital/rolling 12 months orders received (RHS)

Net working capital development


• Net working capital EUR -265 million, which equals -11% of rolling 12 months orders received

Net working capital and orders received (EUR million)

Net working

capital has been

on average -9%

of rolling 12

months orders

received

-39-54

-158 -166 -134

238

-5% -7%

-20% -21%-17%

29%

-35%

-25%

-15%

-5%

5%

15%

25%

35%

-350-300-250-200-150-100

-500

50100150200250300350

Q1/1

4

Q2/1

4

Q3/1

4

Q4/1

4

Q1/1

5

Q2/1

5

Net debt (EUR million) Gearing (%)



• Gearing (29%) and net debt (EUR 238 million) increased due to acquisition

• Equity to assets ratio increased from Q1/2015 but decreased from Q2/2014 due to acquisition

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

40% 40% 41% 42%

34% 35%

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

0

50

100

150

200

250

300

350

400

2015 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 3.8 years- Average interest rate is 1.3%

Main financing sources

Back-up facilities

Interest-bearing debt EUR 428 million as at June 30, 2015

EUR 129 million

EUR 100 million

European Investment Bank

Skandinaviska Enskilda Banken

Nordic Investment Bank

Amount Lender

EUR 70 million Swedish Export Kredit

EUR 95 million

EUR 0 million

EUR 200 million domestic commercial

paper program

EUR 200 million syndicated revolving

credit facility

Amount Outstanding

EUR 30 million

Guidance and short-term market outlook

Guidance and short-term market outlook

23 July 30, 2015 © Valmet

GoodPulp and

Energy

Paper

Satisfactory

Pulp

Energy

Board and Paper

Tissue

Guidance for

2015

Services

Short-term market outlook

Guidance for 2015 (as given on February 6, 2015)

Satisfactory

Satisfactory

Good

Satisfactory

Satisfactory

Satisfactory

Satisfactory

Good

Satisfactory

Q3/2014 Q4/2014

Satisfactory

Good

Weak

Good

Satisfactory

Q1/2015

Satisfactory

Weak

Good

Satisfactory

Q2/2015

Valmet estimates that, including the acquisition of Process Automation

Systems, net sales in 2015 will increase in comparison with 2014 (EUR

2,473 million) and EBITA before non-recurring items in 2015 will increase in

comparison with 2014 (EUR 106 million).

- - Satisfactory SatisfactoryAutomation

Summary of Interim Review Q2/2015


Q2/2015 in brief

1) EBITA = Earnings before interest, taxes and amortization and non-recurring items

• Orders received decreased from the high level in Q2/2014 in Pulp and Energy, and Paper business lines

• Net sales increased in Paper and remained at the previous year’s level in Pulp and Energy

Orders received decreased and net sales increased in capital business

• Orders received increased in Services compared with Q2/2014, strong quarter in Automation

• Net sales increased in Services compared with Q2/2014, strong quarter in Automation

Orders received and net sales increased in stable business

• EBITA1 more than doubled to EUR 54 million

• EBITA1-margin increased to 6.9 percent

Good development in profitability


• Net debt EUR 238 million, and gearing 29%

• Cash flow provided by operating activities EUR 17 million

• Order backlog EUR 144 million higher than at the end of Q1/2015


• Acquisition of Process Automation Systems was completed on April 1, 2015

• Automation became Valmet’s fourth business line – Q2/2015 the first reported quarter for Automation

• Positive feedback from customers and employees


Interim Review January–September 2015

October 28, 2015

www.valmet.com/investors

Upcoming site visits:

Sundsvall, SwedenSeptember 10, 2015

Shanghai, ChinaSeptember 24, 2015

Appendix

© Valmet28 July 30, 2015

Largest shareholders on June 30, 2015Based 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 4,208,465 2.81%

3 Nordea Funds 3,994,491 2.67%

4 Skagen Global Verdipapirfond 3,106,627 2.07%

5 Ilmarinen Mutual Pension Insurance Company 3,092,126 2.06%

6 The State Pension Fund 1,520,000 1.01%

7 Keva 1,502,166 1.00%

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

9 OP Funds 979,300 0.65%

10 Skagen Global II Verdipapirfond 968,463 0.65%

10 largest shareholders, total 37,284,232 24.87%

Other shareholders 112,580,387 75.13%

Total 149,864,619 100.00%

Largest shareholders

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

• The holding of Franklin Templeton Institutional, LLC decreased on June 9, 2015 to 7,196,324 shares (previously 7,517,629

shares), corresponding to an ownership of 4.80% (previously 5.02%) of Valmet’s shares.

• The holding of Capital Partners Ltd. decreased on February 12, 2015 to 10,323,191 shares (previously 20,813,714 shares),

corresponding to an ownership of 6.89% (previously 13.89%) of Valmet’s shares.


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

Ownership structure on June 30, 2015

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

Nominee registered and non-Finnish holders 295 0.6% 80,959,438 54.0%

Finnish institutions, companies and foundations 2,591 5.5% 31,225,221 20.8%

Solidium Oy10 0 16,695,287 11.1%

Finnish private investors 44,694 93.9% 20,984,673 14.0%

Total 47,580 100.0% 149,864,619 100.0%

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

54.0%

20.8%

11.1%

14.0%

Nominee registered and non-Finnish holders

Finnish institutions, companies and foundations

Solidium Oy

Finnish private investors


Share of non-Finnish holders and number of shareholders

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

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

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-0

9

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

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-Jul-10 1-Jan-11 1-Jul-11 1-Jan-12 1-Jul-12 1-Jan-13 1-Jul-13 1-Jan-14 1-Jul-14 1-Jan-15

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

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

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

and conditions.

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

jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. The Information is not for

publication, release or distribution in the United States, the United Kingdom, Australia, Canada or Japan.

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

indirectly, in or into the United States (as defined in Regulation S under the Securities Act), unless registered under the Securities Act or pursuant to an exemption from the

registration requirements of the Securities Act and in compliance with any applicable state securities laws of the United States.

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

the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 as amended (the “Order”), (iii) high net worth entities, and other persons to whom it may lawfully be

communicated, falling within Article 49(2)(a) to (d) of the Order and (iv) persons to whom an invitation or inducement to engage in investment activity (within the meaning of section

21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of the Company or any member of its group may otherwise lawfully be

communicated or caused to be communicated (all such persons in (i)-(iv) above being “Relevant Persons”). Any investment activity to which the Information relates will only be

available to and will only be engaged with Relevant Persons. Any person who is not a Relevant Person should not act or rely on the Information. By accessing the Information, you

represent that you are a Relevant Person.

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

looking statements give the Company’s current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and

business. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,”

“anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof. Such forward-

looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause the Company’s actual results,

performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such

forward-looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the environment in which it will operate in the

future.

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

Information or the opinions contained therein. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-

looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or

undertaking to disseminate any updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may

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

statements are based, or other events or circumstances arising after the date of this document. Market data used in the Information not attributed to a specific source are estimates

of the Company and have not been independently verified.

Valmet's Interim Review January-June 2015

Investor Relations

Transcript of Valmet's Interim Review January-June 2015