Laura Puustjärvi from Valmet presents how sustainability contributes to business growth. Presentation at Women in Tech meeting in Helsinki Finland

1. Sustainability –
Contributing to business
growth
8.11.2016
Women in Tech 2016

2. Valmet key figures
2016 © Valmet2
Net sales by areaNet sales by business lineOrders received
EUR 2,878 million
Net sales
EUR 2,928 million
EBITA1
EUR 182 million
EBITA1 margin
6.2%
Employees
12,306
39%
8%
31%
23%
Services
Automation
Pulp and Energy
Paper
21%
11%
45%
10%
13%
North America
South America
EMEA
China
Asia-Pacific
1) Before non-recurring items (NRI)
Stable business = Services and Automation business lines
Capital business = Pulp and Energy, and Paper business lines

3. Laura Puustjärvi
Head of Sustainability
Ÿ Leading Valmet´s corporate sustainability work since
2013
Ÿ Main achievements include a successful change
management to integrate sustainability in company´s
business strategy, in the minds of top management
and into function-level annual targets and actions in
procurement, sales, HR, strategy, R&D and legal
Ÿ 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
Ÿ Sustainability Manager at Metso since 2011
Ÿ Sustainability Specialist at Finnair since 2007
I believe in
achieving
extraordinary results
through
collaboration and
make working
rewarding

4. Explore sustainability
at Valmet

5. 360° approach to sustainability as part of Valmet´s
strategy
22.9.20165
Resource efficient
and clean world
Converting renewable resources into sustainable results
We develop sustainable
supply chain practices
Supply chain
Health, safety
and environment
We protect the safety
of our people and
partners and minimize
our environmental
impactOur people
We are a responsible
employer and promote
diversity
Our solutions
We develop and provide
solutions that support
sustainability
Corporate
citizenship
We are trusted partner
and respected corporate
citizen
Our Mission
360°
Digitalization and new
technologies
Aware, urban and
global customer

6. Sustainability at Valmet
1 November, 2016 © Valmet | Author / Title6
Sustainability is part of our everyday operations and founded on our
operating principles
Ÿ Code of Conduct and related
policies
Ÿ Valmet’s values
Ÿ Compliance with UN Global
Compact and selected globally
acknowledged principles
Ÿ ISO 9001, ISO 14001 and
OHSAS 18001 management
systems
Guiding principles Sustainability360º agenda Comprehensive reporting
Ÿ Sustainable supply chain
Ÿ Health, safety and
environment
Ÿ People and performance
Ÿ Sustainable solutions
Ÿ Corporate citizenship
Ÿ Annual sustainability reporting
according to global standards
(GRI) and assurance by a
third party
Ÿ Reporting to third party
sustainability rankings and
indices

7. Sustainable
Supply Chain
policy
Sustainability
risk
assessment
Supplier self-
assessments
Sustainability
audits
We have established a global supplier
sustainability management process
20167
All suppliers are
required to sign
Valmet’s Sustainable
Supply Chain policy
All suppliers are
evaluated through a
five-level sustainability
risk assessment
Weak result in risk
assessment lead to
supplier self-
assessment
Weak result in self
assessment lead to
audit.
We aim to audit all
high risk suppliers in
the long term.
91 audits executed
with 3rd party in
2015-2016
Required from all suppliers Required based on supplier risk assessment
Results: Sustainable supply chain
© Valmet

8. Sustainable supply chain statistic 2015-2016
1 November, 2016 © Valmet | Author / Title8
450
Valmetees
received
training
91 supplier
sustainability
audits
700
corrective
actions
430 self-
assessments
sent
100% of
suppliers
assessed on
sustainability
risk
11 000
policies sent
to suppliers
globally

9. 0
2
4
6
8
10
12
14
16
18
AxisTitle
Axis Title
LTIF
TRIF
22.9.20169
We have continuously improved our safety
performance
LTIF = LT1 + LT4 (per million work hours, Valmet personnel)
TRIF = LT1 + LT4 + MT+RW (per million work hours, Valmet personnel)
Minimum
safety
standards
(First 8)
Global
incident
reporting
system
HSE in all
agendas
Minimum
safety
standards
(Next 5)
Leadership
HSE walks
HSE
notification
and alerts
Global
HSE
audits
Quarterly
follow-up of
units of
concern
Global
HSE
policy
Monthly
HSE
reporting
Common
Site HSE
routines
Target by
end of 2018:
LTIF < 2
TRIF < 5
Incident frequency
development:
rolling 12 month, per
million work hours
Results: Health, safety and environment
TRIF ; 7,6
LTIF ; 2,8

10. We have steadily progressed towards our 2020
targets
2016 © Valmet10
Results: Health, safety and environment
Energy CO2 emissions Water Waste
Energy
-7,6%
CO2 emissions
-12%
Water
-20,7%
Non-hazardous
waste +22,6%
New foundry acquired
in Sweden in 2013
Achieved emission reductions in 2013‒2015
Hazardous waste
-18,1%

11. Our personnel’s engagement has developed
positively
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 in
personnel
engagement survey
56%
65%
2014 2015
Personnel
engagement
index
Results: Our people
68 %
81 %
2014 2015

12. We improve products and services and bring new
innovations 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 M
board and paper
machine
Advantage NTT
tissue machine
Valmet DNA
distributed
control system
Valmet IQ online
quality
management
solution
High-power
recovery boiler
Examples of success concepts and products:

13. We engage with local communities
2016 © Valmet13
Ÿ Valmet has
participates in social
and environmental
programs through two
local non-profit
organizations since
2011
Ÿ One of the main
targets is to develop
basic education in the
state of Maranhão
Brazil NepalChina Africa
Ÿ New water filters for
the Keng Zhen
Central Primary
School
Ÿ The target was to
ensure the availability
of fresh water for
cooking and drinking
at the school
Ÿ Monetary support for
catastrophe victims in
Nepal, which was hit
by a severe
earthquake in April
Ÿ The donation was
targeted at first aid
and rebuilding work
Ÿ A donation for Save
the Children as part of
our Seasonal
Donation
Ÿ The donation was
used to help drought
victims in Africa
Results: Corporate citizenship

14. How to ensure leadership
in sustainability?

15. 1.
Have close
connection
to the top
management
.

16. Sustainable
supply chain
We enhance our supply
chain management and
the transparency of our
value chain.
2.
Have a
strategy and
stick to it

17. 3.
Make change
management
plan

18. 4.
Plant seeds
early

19. 5.
Empower
people