Valmet's Financial Statements Review 2020

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Net sales amounted to EUR 3,740 million and Comparable EBITA increased to EUR 365 million in 2020 Financial Statements Review 2020

February 4, 2021

Pasi Laine, President and CEO Kari Saarinen, CFO Agenda Financial Statements Review 2020

1 2020 in brief

2 Development of the business lines

3 Financial development

4 Dividend proposal, guidance and short-term market outlook

2 February 4, 2021 © Valmet | Financial Statements Review 2020 2020 in brief 2020 in brief

Orders received decreased to EUR 1,772 million in stable business1

Orders received decreased to EUR 1,962 million in capital business2

Net sales were EUR 3,740 million

Order backlog amounted to EUR 3.3 billion

Comparable EBITA increased to EUR 365 million and margin was 9.8%

Gearing was 13%

PMP Group has been consolidated into Valmet’s financials as of October 1, 2020. 1) Stable business = Services business line and Automation business line. For Automation, this figure includes internal orders received from other business lines. 2) Capital business = Pulp and Energy business line and Paper business line

4 February 4, 2021 © Valmet | Financial Statements Review 2020 Valmet in 2020

Orders received by business line Orders received by area Orders received 10% EUR 3,653 million 17% 28% Net sales EUR 3,740 million 37% 24% 10% Comparable EBITA EUR 365 million Comparable EBITA margin 9.8% 26% 9% Order backlog 39% EUR 3,257 million Services North America Employees Automation South America 14,046 Pulp and Energy EMEA Paper China Asia-Pacific

5 February 4, 2021 © Valmet | Financial Statements Review 2020 Valmet’s development since 2013 Comparable EBITA target 10–12%

Orders received Net sales Comparable EBITA Comparable EBITA margin (EUR billion) (EUR billion) (EUR million) (%)

4.5 4.5 400 10%

9% 4.0 4.0 350 8% 3.5 3.5 300 7% 3.0 3.0 250 6% 2.5 2.5 200 5% 2.0 2.0 4% 150 1.5 1.5 3% 100 1.0 1.0 2% 50 0.5 0.5 1% 0 0% 0.0 0.0 2013 2014 2015 2016 2017 2018 2019 2020 20132014201520162017201820192020 20132014201520162017201820192020 2013 2014 2015 2016 2017 2018 2019 2020

Pulp and Energy, and Paper business lines Pulp and Energy, and Paper business lines Comparable EBITA Comparable EBITA margin Services and Automation business lines Services and Automation business lines

2013 figures on carve-out basis

6 February 4, 2021 © Valmet | Financial Statements Review 2020 Orders received decreased to EUR 3,653 million in 2020

Orders received (EUR million) Orders received by area 4,500 1,800 4,500 4,000 1,600 4,000 479 3,500 267 349 1,400 3,500 3,000 885 1,200 3,000 2,500 1,690 1,000 2,500 2,000 800 2,000 1,420 1,500 1,058 1,187 600 1,101 1,500 670 1,005 1,026 1,009 1,000 1,023 890 940 1,083 940 400 781 793 803 788 857 796 865 835 826 1,000 378 725 692 743 727 700 580 500 880 200 466 480 500 621 0 0 0 2019 2020

North America

Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/14 South America EMEA Orders received (LHS) Last 4 quarters (RHS) China Asia-Pacific • In stable business1, orders received decreased to EUR 1,772 million in 2020 • In capital business, orders received decreased to EUR 1,962 million in 2020 • Orders received decreased in developed markets and increased in emerging markets during 2020 • South America, China and Asia-Pacific together accounted for 44% of orders received

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

7 February 4, 2021 © Valmet | Financial Statements Review 2020 Stable business orders received totaled EUR 1,772 million in 2020

Orders received (EUR million) in stable business1

700 2,100

600 1,800 507 514 500 461 474 463 1,500 443 439 445 435 426 409 424 433 112 116 402 394 383 372 381 103 104 369 400 342 344 88 359 93 102 120 1,200 330 88 103 109 97 98 293 95 81 81 267 273 273 87 75 101 81 300 242 78 75 80 900

200 395 398 600 355 346 344 358 371 335 342 293 307 313 321 321 300 325 328 267 273 273 252 267 264 284 284 282 288 100 242 300

0 0 Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18Q1/19Q2/19Q3/19Q4/19Q1/20Q2/20Q3/20Q4/20

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

• Total orders received in stable business decreased by EUR 103 million in 2020

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

8 February 4, 2021 © Valmet | Financial Statements Review 2020 Order backlog EUR 3,257 million at the end of 2020

Order backlog (EUR million) Structure of order backlog

4,000

3,500 3,557 ~25% 3,425 3,492 3,333 3,311 3,000 3,216 3,257 3,001 2,791 2,829 2,704 2,714 2,720 2,500 2,583 2,621 2,406 2,458 2,312 2,283 2,000 2,208 2,207 2,192 2,064 2,117 2,074 2,106 ~75% 1,972 1,998 1,500

1,000

500 Stable business Capital business

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

• Order backlog was EUR 54 million lower than at the end of Q3/2020 and EUR 76 million lower than at the end of 2019 • Approximately 75% of the order backlog is currently expected to be realized as net sales during 2021 (at the end of 2019, ~70% during 2020) • Approximately 25% of the order backlog relates to stable business (~25% at the end of 2019)

9 February 4, 2021 © Valmet | Financial Statements Review 2020 Development of the business lines Services: Orders received decreased to EUR 1,356 million in 2020

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

2019: 2020: 2019: 2020: EUR 1,459 million EUR 1,356 million EUR 1,374 million EUR 1,327 million

400 371 395398 1,600 450 1,800 355 358 400 402 346344 335 342 350 321 321 325 328 1,400 400 366 361 1,600 307 313 293 300 340 336 284 284282 288 350 314 316 325 322 1,400 300 267273 273 267 1,200 304 304 302 307 264 286 295 242 252 278 284 282 276 300 268 257 1,200 250 1,000 251 242 252 247 250 224 235 1,000 200 800 200 800 150 600 150 600 100 400 100 400 50 200 50 200

0 0 0 0

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

Orders received (LHS) Orders received, last 4 quarters (RHS) Net sales (LHS) Net sales, last 4 quarters (RHS)

• Orders received decreased compared with Q4/2019 - Orders received increased in China, remained at the previous year's level in South America and decreased in Asia-Pacific, EMEA and North America - Orders received remained at the previous year’s level in Rolls, and Fabrics and decreased in Energy and Environmental, Mill Improvements and Performance Parts • Net sales remained at the previous year’s level compared with Q4/2019 • COVID-19 related travel restrictions and lower capacity utilization in graphical paper mills had a negative impact on Services’ orders received and net sales in 2020

11 February 4, 2021 © Valmet | Financial Statements Review 2020 Services business line in 2020

Orders received Orders received by business Orders received by area EUR 1,356 million 10% 11% 17% Net sales 10% 28% EUR 1,327 million 13%

Employees 6,027 25% 9% Market position #1–2 Services 35% 43%

Rolls North America Mill Improvements South America Performance Parts EMEA Fabrics China Energy and Environmental Asia-Pacific

12 February 4, 2021 © Valmet | Financial Statements Review 2020 Automation1: Orders received remained at the previous year’s level at EUR 415 million in 2020 Orders received (EUR million) Net sales (EUR million)

2019: 2020: 2019: 2020: EUR 416 million EUR 415 million EUR 393 million EUR 402 million 160 480 160 480 137 141 140 124 420 140 120 420 115 112116 17 24 109 104 120 101 360 120 103 101 102 103 360 99 18 95 94 95 93 97 98 24 11 90 88 88 87 88 15 17 24 100 6 81 87 300 100 78 81 80 12 9 81 8 300 79 5 80 80 10 75 75 11 18 21 12 16 81 72 69 72 68 69 73 73 13 17 6 9 80 66 8 8 14 12 15 240 80 8 7 16 11 240 11 11 8 15 13 16 6 4 12 8 10 9 9 60 180 60 9 120 117 180 95 104 106 91 91 94 95 96 92 96 94 82 40 85 82 78 82 84 82 86 81 120 40 68 73 73 76 75 69 77 72 120 70 67 66 72 72 62 70 65 66 58 65 59 60 59 64 64 20 60 20 60

0 0 0 0

Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Orders received, internal (from other business lines) Net sales, internal (from other business lines) Orders received, external Net sales, external Orders received, total (including internal) Net sales, total (including internal) Orders received, last 4 quarters (RHS) Net sales, last 4 quarters (RHS)

• Orders received increased compared with Q4/2019 - Orders received increased in China, South America and EMEA and decreased in Asia-Pacific and North America - Orders received increased in both Pulp and Paper, and Energy and Process • Net sales remained at the previous year’s level compared with Q4/2019 • Despite COVID-19, Automation’s orders received and net sales remained at the previous year’s level in 2020

1) Comments refer to orders received and net sales including also internal orders received and internal net sales.

13 February 4, 2021 © Valmet | Financial Statements Review 2020 Automation1 business line in 2020

Orders received Orders received by business Orders received by area EUR 415 million 8% 18% Net sales 29% 12% EUR 402 million 7% Employees 1,917

Market position 71% #1–2 Pulp and Paper 55% #2–4 Energy and Process Pulp and Paper North America Energy and Process South America EMEA China Asia-Pacific

1) Orders received and net sales include also internal orders received and internal net sales.

14 February 4, 2021 © Valmet | Financial Statements Review 2020 Pulp and Energy: Orders received decreased to EUR 934 million in 2020 Orders received (EUR million) Net sales (EUR million)

2019: 2020: 2019 : 2020: EUR 1,125 million EUR 934 million EUR 919 million EUR 1,003 million

700 1,400 700 1,400 622 600 560 1,200 600 1,200

500 451 1,000 500 1,000 395 400 376 800 400 800 320 312 315 275 272 291 286 300 259 261 247265 600 300 245 262 265 600 238 229234 222231 223232 231 240 206 201210 215 215 219203205 212 211 180 192 181 181 196187189192200 200 151 400 200 160 400 138 141122 96 85 100 66 52 200 100 200

0 0 0 0

Orders received (LHS) Orders received, last 4 quarters (RHS) Net sales (LHS) Net sales, last 4 quarters (RHS)

• Orders received decreased compared with Q4/2019 - Orders received increased in China and Asia-Pacific, remained at the previous year’s level in South America and decreased in North America and EMEA - Orders received decreased in both Pulp and Energy • Net sales decreased compared with Q4/2019 • Pulp and Energy business line has managed challenges caused by COVID-19 well, and therefore the pandemic has not caused major impacts on its operations in 2020

15 February 4, 2021 © Valmet | Financial Statements Review 2020 Pulp and Energy business line in 2020

Orders received Orders received by business Orders received by area EUR 934 million 12% 1% Net sales 28% 24% EUR 1,003 million

23% Employees 1,814

Market position 72% #1–2 Pulp 41% #1–3 Energy Pulp North America Energy South America EMEA China Asia-Pacific

16 February 4, 2021 © Valmet | Financial Statements Review 2020 Paper: Orders received remained at the previous year’s level at EUR 1,029 million in 2020 Orders received (EUR million) Net sales (EUR million)

2019: 2020: 2019: 2020: EUR 1,043 million EUR 1,029 million EUR 913 million EUR 1,076 million

450 419 1,200 450 1,200 400 400 353 1,050 362 1,050 350 314 321 350 299 295 900 304 900 275 270 280 300 300 267 255 246 243 243 750 237 246 242 750 250 250 223 214 217 212 199 203 199 201 211 200 190 197 186 600 186 185 188 196 186 600 176 182 177 170 200 156 200 157165 165 142149 144 128 129 450 138 450 150 150 114 120 109 108 97 100 300 100 300 50 150 50 150

0 0 0 0

Orders received (LHS) Orders received, last 4 quarters (RHS) Net sales (LHS) Net sales, last 4 quarters (RHS)

• Orders received increased compared with Q4/2019 - Orders received increased in China and Asia-Pacific, remained at the previous year's level in North America, and decreased in South America and EMEA - Orders received increased in Board and Paper, and decreased in Tissue • Net sales increased compared with Q4/2019 • PMP Group has been consolidated into Paper business line financials as of October 1, 2020 • Paper business line has managed challenges caused by COVID-19 well, and therefore the pandemic has not caused major impacts on its operations in 2020

17 February 4, 2021 © Valmet | Financial Statements Review 2020 Paper business line in 2020

Orders received Orders received by paper grade Orders received by area EUR 1,029 million 7% 21% 17% Net sales 26% EUR 1,076 million 1%

Employees 3,731 24% 50% Market position #1 Tissue 53% #1 Board #1 Paper Tissue North America Board South America Paper EMEA China Asia-Pacific

18 February 4, 2021 © Valmet | Financial Statements Review 2020 Financial development Q4/2020 in brief

Orders received decreased to EUR 463 million in stable business1

Orders received remained at the previous year’s level at EUR 502 million in capital business2

Net sales increased to EUR 1,167 million

Order backlog remained at the previous year’s level at EUR 3.3 billion

Comparable EBITA increased to EUR 146 million and margin was 12.5%

Gearing was 13%

20 February 4, 2021 © Valmet | Financial Statements Review 2020 Key figures

EUR million Q4/2020 Q4/2019 Change 2020 2019 Change Orders received 940 1,009 -7% 3,653 3,986 -8%

Order backlog1 3,257 3,333 -2% 3,257 3,333 -2%

Net sales 1,167 1,103 6% 3,740 3,547 5%

Comparable EBITA 146 118 24% 365 316 16%

% of net sales 12.5% 10.7% 9.8% 8.9%

EBITA 147 119 23% 355 315 13%

Operating profit (EBIT) 135 110 23% 319 281 13%

% of net sales 11.6% 9.9% 8.5% 7.9%

Earnings per share, EUR 0.67 0.54 24% 1.54 1.35 15%

Return on capital employed (ROCE) before taxes2 22% 23%

Cash flow provided by operating activities 114 182 -37% 532 295 81%

Gearing1 13% -9%

Items affecting comparability: EUR 0 million in Q4/2020 (EUR 1 million in Q4/2019), EUR -10 million in 2020 (EUR -1 million in 2019) Valmet’s investment in Neles had a positive impact on EBITA of EUR 2.8 million

1) At end of period 2) Annualized

21 February 4, 2021 © Valmet | Financial Statements Review 2020 Gross profit and SG&A development

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

300 30% 300 30%

250 23% 25% 250 25%

200 20% 200 20%

150 15% 150 15%

100 10% 100 12% 10%

50 5% 50 5%

0 0% 0 0%

Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020

EUR million (LHS) % of net sales (RHS) EUR million (LHS) % of net sales (RHS) • Gross profit was 23.4% of net sales (23.9% in Q4/2019) − Stable business represented 44% of net sales (47% in Q4/2019) • Selling, general & administrative (SG&A) expenses decreased 11% − SG&A was 12% of net sales (15% in Q4/2019)

22 February 4, 2021 © Valmet | Financial Statements Review 2020 Comparable EBITA margin1 development

Net sales and Comparable EBITA, rolling 12 months (EUR million and %)1

3,682 3,700 3,676 3,740 Target 10–12% 3,547 3,429 9.8% 3,308 3,325 3,337 9.1% 9.1% 3,257 3,279 8.9% 8.8% 3,145 8.6% 8.7% 8.7% 3,019 3,044 2,995 3,058 2,851 2,928 2,926 2,919 2,846 2,876 2,707 7.7% 2,500 2,515 7.1% 2,473 6.8% 6.8% 6.7% 6.7% 6.8% 2,374 2,363 6.5% 6.7% 6.7% 6.6% 6.2% 6.4% 5.9% Capital business, rolling 5.6% 12 months 4.8% 1,762 1,832 1,942 2,005 2,013 2,079 Stable business, rolling 4.3% 1,799 1,720 1,736 1,591 1,610 1,544 1,473 1,469 1,399 1,435 1,584 1,676 1,762 1,811 12 months 1,572 1,666 1,715 1,739 1,695 1,663 1,661 1,625 1,525 1,559 1,601 Comparable EBITA %, 1,579 1,429 1,434 1,451 1,453 1,450 1,447 1,441 1,474 1,469 1,496 1,497 1,490 1,369 1,378 1,484 1,508 1,357 rolling 12 months 1,226 1,127 1,010 1,005 984 989 1,007

1.3% 1.3% 1.4% Q1/14Q2/14Q3/14Q4/14Q1/15Q2/15Q3/15Q4/15Q1/16Q2/16Q3/16Q4/16Q1/17Q2/17Q3/17Q4/17Q1/18Q2/18Q3/18Q4/18Q1/19Q2/19Q3/19Q4/19Q1/20Q2/20Q3/20Q4/20 Comparable EBITA, 33 32 33 106 121 153 167 182 194 197 202 196 199 190 194 218 206 219 225 257 282 291 311 316 320 327 336 365 rolling 12 months (EUR million)

• In Q4/2020, net sales increased and Comparable EBITA increased compared with Q4/2019

1) Rolling 12 months. Carve-out figures for 2013 have been used in the calculation of Q1–Q3/2014 figures. Valmet implemented IFRS 15 – Revenue from Contracts with Customers as of January 1, 2018 by applying full retrospective method. Thus, figures presented are not fully comparable.

23 February 4, 2021 © Valmet | Financial Statements Review 2020 Cash flow provided by operating activities and CAPEX

Cash flow provided by operating activities (EUR million)

2014: 2015: 2016: 2017: 2018: 2019: 2020: EUR 236 million EUR 78 million EUR 246 million EUR 291 million EUR 284 million EUR 295 million EUR 532 million 200

150 182 173 143 151 126 100 117 122 119 114 94 94 88 78 89 50 64 43 46 30 17 16 3 33 31 19 3 30 0 -20 -44 -50

-100

• Change in net working capital1 EUR -46 million in Q4/2020 • Cash flow provided by operating activities EUR 114 million in Q4/2020 • CAPEX2 EUR 24 million in Q4/2020

Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not restated. 1) Change in net working capital in the consolidated statement of cash flows. 2) Excluding leased assets. 24 February 4, 2021 © Valmet | Financial Statements Review 2020 Net working capital at -16% of rolling 12 months orders received

Net working capital1 and orders received (EUR million) 1,500 30%

1,187 1,000 1,101 20% 1,023 1,005 1,026 1,0831,0581,009 890 865 940 940 781 793 803 788 857 796 835 826 725 692 743 727 700 500 580 10% 466 480 0 0% -235 -249 -317 -265 -244 -238 -194 -181 -265 -294 -345 -353 -378 -335 -370 -387 -384 -362 -427 -474 -459 -342 -421 -426 -614 -644 -629 -588 -500 -10%

-1,000 -20%

Q1/2014 Q2/2014 Q3/2014 Q4/2014 Q1/2015 Q2/2015 Q3/2015 Q4/2015 Q1/2016 Q2/2016 Q3/2016 Q4/2016 Q1/2017 Q2/2017 Q3/2017 Q4/2017 Q1/2018 Q2/2018 Q3/2018 Q4/2018 Q1/2019 Q2/2019 Q3/2019 Q4/2019 Q1/2020 Q2/2020 Q3/2020 Q4/2020 Net working capital (LHS) Orders received (LHS) Average net working capital/rolling 12 months orders received (RHS) Net working capital/rolling 12 months orders received (RHS)

• Net working capital EUR -588 million, which equals -16% of rolling 12 months orders received

1) Net working capital excluding non-cash net working capital impact from dividend liability.

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

300 30% 50% 21% 45% 43% 43% 42% 42% 41% 41% 41% 200 17% 18% 20% 39% 39% 40% 38% 38% 38% 38% 13% 36% 37% 37% 178 184 152 35% 100 6% 149 10% 6% 30% 0% 60 0 52 0% 25% -4 -100 -102 -98 -90 20% -100 -10% -166 -11% -9% 15% -12% -11% -174 10% -200 -219 -20% -220 -223 -20% -21% -22% -23% 5% -23%

-300 -30% 0%

2014 2015 2016 2017

Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

Net debt Gearing

• Gearing (13%) and net debt (EUR 149 million) increased compared with Q4/2019 • Equity to assets ratio decreased compared with Q4/2019

Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method and therefore 2018 figures are not restated.

Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes1 (%)

1,639 24% 23% 23% 23% 1,541 22% 23% 22% 22% 20% 1,314 1,327 1,256 1,239 1,240 1,214 1,231 1,237 1,239 1,184 1,194 1,167 1,195 18% 1,195 1,112 1,138 1,141 1,137 17% 1,150 16% 16% 985 967 14% 14% 14% 14% 14% 1,049 1,079 902 877 13% 13% 13% 1,033 12% 12% 10% 10%

2% 2% 1%

Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20

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

Valmet implemented IFRS 16 – Leases as of January 1, 2019 by applying the simplified transition method, and IFRS 15 – Revenue from Contracts with Customers as of January 1, 2018 by applying full retrospective method. Thus, figures presented are not fully comparable. 1) Rolling 12 months. Carve-out figures for 2013 have been used in the calculation of Q1–Q3/2014 figures.

27 February 4, 2021 © Valmet | Financial Statements Review 2020 Dividend proposal, guidance and short-term market outlook Dividend proposal

Dividend policy • Dividend payout at least 50% of net profit

Board of Directors’ dividend proposal to the Annual General Meeting • EUR 0.90 per share, which represents 58% payout ratio

Dividend per share (euro)

0.90 0.80 0.65 0.55 0.35 0.42 0.25 0.15

2013 2014 2015 2016 2017 2018 2019 2020 (proposal by the BoD)

Guidance for 2021

Guidance Valmet estimates that net sales in 2021 will remain at the previous year’s level in comparison with 2020 (EUR 3,740 million) and Comparable EBITA in 2021 will remain at the previous year’s level in comparison with 2020 (EUR 365 million).

Short-term market outlook

Q1/2020 Q2/2020 Q3/2020 Q4/2020

Services Satisfactory / Weak Satisfactory / Weak Satisfactory / Weak Satisfactory / Weak

Automation Good / Satisfactory Good / Satisfactory Good / Satisfactory Good

Pulp Good Good Good Good Pulp and Energy Energy Satisfactory Satisfactory Satisfactory Weak

Board and Paper Good Good Good Good Paper Tissue Satisfactory Satisfactory Satisfactory Good

The short-term market outlook is based on customer activity (50%) and Valmet’s capacity utilization (50%) and is given for the next six months from the end of the respective quarter. The scale is ‘weak–satisfactory–good’.

April 22, 2021

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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-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.