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Strong start for the year in the Services and Automation segments Interim Review, January–March 2025 April 23, 2025 Thomas Hinnerskov, President and CEO Katri Hokkanen, CFO
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Interim Review, January–March 2025 Agenda April 23, 2025 © Valmet | Interim Review, January–March 20252 1 Q1/2025 in brief 2 3 Financial development 4 Update on Valmet’s strategy renewal process Guidance and short-term market outlook
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Q1/2025 in brief
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Q1/2025 in brief April 23, 2025 © Valmet | Interim Review, January–March 20254 Order backlog amounted close to EUR 4.6 billion Cash flow provided from operating activities amounted to EUR 217 million Comparable EBITA remained at the previous year’s level and amounted to EUR 121 million and margin was 10.2% Orders received increased to EUR 1.3 billion Net sales remained at the previous year’s level and amounted close to EUR 1.2 billion Comparable ROCE (LTM) was 13.0% Comparable ROCE = Comparable return on capital employed before taxes. LTM = Last twelve months Plan to renew operating model to better serve customers with a lifecycle approach, and to increase efficiency was published during the quarter
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Orders received increased to EUR 1.3 billion in Q1/2025 April 23, 2025 © Valmet | Interim Review, January–March 20255 • Orders received increased organically 8% in Services and 12% in Automation compared with Q1/2024 • Despite the exceptionally large order received in the previous quarter, the market activity in Process Technologies remained subdued, with orders received totaling EUR 358 million Orders received (EUR million) 1,324 1,306 1,178 1,385 1,552 1,268 980 1,155 1,050 1,283 1,041 2,463 1,332 Orders received (LHS)Last 4 quarters (RHS) Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3/23 Q4/23 Q1/24 Q2/24 Q3/24 Q4/24 Q1/25 0 250 500 750 1,000 1,250 1,500 1,750 2,000 2,250 2,500 2,750 3,000 3,250 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500
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Stable business orders received totaled close to EUR 3.5 billion during the last twelve months April 23, 2025 © Valmet | Interim Review, January–March 20256 • Orders received in stable business were EUR 119 million higher in Q1/2025 compared with Q1/2024 • Stable business represented 57% of Valmet’s orders received during the last twelve months (47% in 2015) 2015–2020 figures have not been restated and include internal orders received for the Automation Systems business line. *Adjusted for acquisitions and foreign exchange rates (in calculating organic growth, Q1/25 orders received in euro translated by applying 2015 average exchange rates). Indicative only. Orders received (EUR million) in stable business 1,367 1,519 1,609 1,701 1,875 1,772 1,947 2,837 3,100 3,360 3,479 1,119 1,182 1,242 1,315 1,459 1,356 1,481 1,756 1,760 1,915 1,955 248 337 368 386 416 415 467 1,081 1,340 1,446 1,524 Automation Services 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1/25 LTM0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 Organic growth* ~6% CAGR LTM = Last twelve months
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Key highlights • DNAe automation win in Finnish energy sector – long-term value creation through lifecycle engagement • Full automation system upgrade at ESE-Energia’s plant • Replacing obsolete third-party system with comprehensive Valmet DNAe solution • Controls customers’ all key units: main boilers, hot water boiler, accumulator, electric boiler, and fuel reception Strategic impact • Customer value add via deep system integration and UX-centric control environment • Lifecycle value capture through upgrades, remote support, and future add-ons • Strengthens Valmet DNAe’s reputation in the energy segment “After thorough evaluation, Valmet’s automation system proved to be the most advanced and reliable for our Pursiala plant.” — Mikko Turunen, Operations Manager, ESE-Energia 7 Valmet DNAe selected for power plant automation modernization in Finland April 23, 2025 © Valmet | Interim Review, January–March 2025
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Update on Valmet’s strategy renewal process
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5,074 5,532 5,359 5,331 2,646 3,112 3,336 3,393 2,428 2,420 2,023 1,938 10.5% 11.2% 11.4% 11.4% Comparable EBITA, % Capital Business Stable Business 2022 2023 2024 Q1/25 LTM Organic growth and Comparable EBITA have plateaued, while ROCE has decreased April 23, 2025 © Valmet | Interim Review, January–March 20259 Net sales and Comparable EBITA (EUR million and %) Comparable EBITA, (EUR million)533 610619 Services and Automation segments are called Stable Business and the Process Technologies segment Capital Business. 609 3,308 4,055 4,158 3,962 17.0% 14.5% 12.7% 13.0% Capital employed Comparable ROCE (before taxes), LTM 2022 2023 2024 Q1/25 Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes (%) LTM = Last twelve months
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Plan to renew operating model as the first action in the strategy renewal Highlights of the plan Lifecycle approach to serve customers better Strong business areas responsible for driving profitability and growth of both capital equipment and related aftermarket services Simplified organizational structure Current geographical areas integrated into new business areas Efficiency improvement Establish global supply unit to support Valmet’s cost-competitiveness April 23, 2025 © Valmet | Interim Review, January–March 202510 The proposed organizational structure and potential reductions are subject to negotiation in several Valmet countries. Impact Expected reduction max 1,150 roles Valmet estimates corresponding annual cost savings of approximately EUR 80 million, with full run-rate achieved by the beginning of 2026
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Renewed strategy to be communicated on Capital Markets Day Renewed strategy aims to • Identify future growth areas • Boost the expansion of Valmet’s current business • Simplify ways of working • Increase operational efficiency The renewed strategy will be communicated by June 5th in the CMD April 23, 2025 © Valmet | Interim Review, January–March 202511
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Financial development
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Valmet in Q1/2025 April 23, 2025 © Valmet | Interim Review, January–March 202513 Comparable EBITA (excl. Other)Net sales 433 339 413 Services Automation Process Technologies 7655 6 Services Automation Process Technologies EUR million EUR million EUR million EUR million EUR million EUR million 568 406 358 Services Automation Process Technologies Orders received Orders received EUR 1,332 million Net sales EUR 1,184 million Comparable EBITA EUR 121 million Comparable EBITA margin 10.2% Order backlog EUR 4,574 million Employees 19,232 EUR million EUR million EUR million
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April 23, 2025 © Valmet | Interim Review, January–March 202514 Items affecting comparability: EUR -8 million in Q1/2025 (EUR -7 million in Q1/2024). 1) At end of period 2) Adjusted earnings per share excludes the impact of fair value adjustments arising from business combinations, net of tax 3) Comparable return on capital employed (ROCE) before taxes, LTM (last twelve months) 4) Last twelve months (LTM) EBITDA EUR million Q1/2025 Q1/2024 Change Orders received 1,332 1,050 27% Order backlog1 4,574 3,790 21% Net sales 1,184 1,212 -2% Comparable EBITA 121 121 0% % of net sales 10.2 % 10.0 % 0.3 pp EBITA 113 114 0% Operating profit (EBIT) 89 87 3% % of net sales 7.5 % 7.2 % 0.4 pp Adjusted earnings per share, EUR2 0.41 0.41 0% Earnings per share, EUR 0.33 0.30 9% Comparable ROCE, LTM3 13.0 % 14.9 % -1.9 pp Cash flow provided by operating activities 217 138 57% Net debt to EBITDA4 ratio 1.30 1.36 Gearing1 36 % 39 % -3 pp Key figures
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Order backlog amounted close to EUR 4.6 billion at the end of Q1/2025 April 23, 2025 © Valmet | Interim Review, January–March 202515 • Order backlog was EUR 122 million higher than at the end of 2024 • Approximately EUR 2.9 billion of the order backlog is currently expected to be realized as net sales in 2025 (at the end of Q1/2024, approximately EUR 2.9 billion during 2024) • Approximately EUR 1.8 billion of the order backlog relates to stable business Order backlog (EUR million) Structure of order backlog by segment ~60%~25% ~15% Process Technologies Services Automation 4,403 3,973 4,452 4,574 1,588 1,557 1,653 1,811 2,815 2,416 2,799 2,762 Capital Business Stable Business 2022 2023 2024 Q1/250 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Services and Automation segments are called Stable Business and the Process Technologies segment Capital Business.
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Process Technologies: Orders received increased to EUR 358 million in Q1/2025 April 23, 2025 © Valmet | Interim Review, January–March 202516 Q1/2025: EUR 358 million Q1/2025: EUR 413 million Q1/2024: EUR 195 million Q1/2024: EUR 497 million Net sales (EUR million)Orders received (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2025: EUR 6 million Q1/2024: EUR 21 million 2,356 1,856 2,477 2,640 2022 2023 2024 Q1/25 LTM 0 500 1,000 1,500 2,000 2,500 3,000 2,428 2,420 2,023 1,938 2022 2023 2024 Q1/25 LTM 0 500 1,000 1,500 2,000 2,500 3,000 145 110 73 58 6.0% 4.5% 3.6% 3.0% 2022 2023 2024 Q1/25 LTM 0 40 80 120 160 200 0% 2% 4% 6% 8% LTM = Last twelve months
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April 23, 2025 © Valmet | Interim Review, January–March 202517 Process Technologies segment key figures Q1 2025 in brief EUR million Q1/2025 Q1/2024 Change Orders received 358 195 84 % Net sales 413 497 -17 % Comparable EBITA 6 21 -71 % % of net sales 1.5 % 4.2 % -2.7 pp • Orders received increased to EUR 358 million – Orders received increased compared with Q1/2024, but market activity overall remains subdued – Highlight of the quarter was a large recovery boiler order in in Pulp and Energy – Changes in FX rates decreased orders received by approximately EUR 4 million • Net sales decreased to EUR 413 million • Comparable EBITA decreased to EUR 6 million and the margin was 1.5% – Net sales decreased compared with Q1/2024, which impacted Comparable EBITA negatively
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Services: Orders received increased to EUR 568 million in Q1/2025 April 23, 2025 © Valmet | Interim Review, January–March 202518 Net sales (EUR million)Orders received (EUR million) Q1/2025: EUR 568 million Q1/2025: EUR 433 million Q1/2024: EUR 527 million Q1/2024: EUR 406 million Comparable EBITA (EUR million and % of net sales) Q1/2025: EUR 76 million Q1/2024: EUR 60 million 1,756 1,760 1,915 1,955 2022 2023 2024 Q1/25 LTM 0 250 500 750 1,000 1,250 1,500 1,750 2,000 1,606 1,784 1,900 1,926 2022 2023 2024 Q1/25 LTM 0 250 500 750 1,000 1,250 1,500 1,750 2,000 237 312 331 34814.8% 17.5% 17.4% 18.0% 2022 2023 2024 Q1/25 LTM 0 50 100 150 200 250 300 350 400 0% 5% 10% 15% 20% LTM = Last twelve months
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April 23, 2025 © Valmet | Interim Review, January–March 202519 Services segment key figures Q1 2025 in brief EUR million Q1/2025 Q1/2024 Change Orders received 568 527 8 % Net sales 433 406 7 % Comparable EBITA 76 60 28 % % of net sales 17.6 % 14.6 % 2.9 pp • Strong start for the year in Services • Orders received increased to EUR 568 million – Organic growth was 8% – Successfully secured a large mill improvement project during the quarter – Orders received increased both in mill improvements and field services; and in consumables and performance parts – Changes in FX rates decreased orders received by approximately EUR 3 million • Net sales increased to EUR 433 million – Organic growth was 6% – Changes in FX rates increased net sales by approximately EUR 1 million • Comparable EBITA increased to EUR 76 million and margin increased to 17.6% – Comparable EBITA increased compared with Q1/2024 mainly due to higher net sales
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*API = Analyzer Products and Integration. The acquisition was completed on April 2, 2024 Automation: Orders received increased to EUR 406 million in Q1/2025 April 23, 2025 © Valmet | Interim Review, January–March 202520 Q1/2025: EUR 406 million Q1/2025: EUR 339 million Q1/2024: EUR 328 million Q1/2024: EUR 309 million Net sales (EUR million)Orders received (EUR million) Comparable EBITA (EUR million and % of net sales) Q1/2025: EUR 55 million Q1/2024: EUR 51 million 1,081 1,340 1,446 1,524 2022 2023 2024 Q1/25 LTM 0 200 400 600 800 1,000 1,200 1,400 1,600 1,040 1,328 1,437 1,467 2022 2023 2024 Q1/25 LTM 0 200 400 600 800 1,000 1,200 1,400 1,600 190 248 255 258 18.3% 18.6% 17.7% 17.6% 2022 2023 2024 Q1/25 LTM 0 50 100 150 200 250 300 0% 5% 10% 15% 20% 25% 30% LTM = Last twelve months
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April 23, 2025 © Valmet | Interim Review, January–March 202521 Automation segment key figures Q1 2025 in brief EUR million Q1/2025 Q1/2024 Change Orders received 406 328 24 % Net sales 339 309 10 % Comparable EBITA 55 51 7 % % of net sales 16.2 % 16.5 % -0.3 pp • Orders received increased to EUR 406 million – Organic growth was 12% – Orders received increased in Automation Systems and in Flow Control – Orders received from the acquired business Analyzer Products and Integration (API) amounted to EUR 34 million – 63 percent of automation’s orders received came from outside pulp and paper industry in Q1/25 – Changes in FX rates increased orders received by approximately EUR 4 million • Net sales increased to EUR 339 million – Organic growth was -2% – Net sales from the acquired business API amounted to EUR 36 million – Changes in FX rates increased net sales by approximately EUR 4 million • Comparable EBITA increased to EUR 55 million and the margin was 16.2% – API had a positive contribution on EBITA in Q1/2025 The acquisition of API was completed on April 2, 2024.
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April 23, 2025 © Valmet | Interim Review, January–March 202522 Segment key figures Orders received, EUR million Q1/2025 Q1/2024 Change Services 568 527 8 % Automation 406 328 24 % Process Technologies 358 195 84 % Total 1,332 1,050 27 % Net sales, EUR million Q1/2025 Q1/2024 Change Services 433 406 7 % Automation 339 309 10 % Process Technologies 413 497 -17 % Total 1,184 1,212 -2 % Comparable EBITA, EUR million Q1/2025 Q1/2024 Change Services 76 60 28 % Automation 55 51 7 % Process Technologies 6 21 -71 % Other -16 -11 47 % Total 121 121 0 % Comparable EBITA margin, % of net sales Q1/2025 Q1/2024 Change Services 17.6 % 14.6 % 2.9 pp Automation 16.2 % 16.5 % -0.3 pp Process Technologies 1.5 % 4.2 % -2.7 pp Total 10.2 % 10.0 % 0.3 pp
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Comparable gross profit and SG&A expenses development April 23, 2025 © Valmet | Interim Review, January–March 202523 Comparable gross profit (EUR million and % of net sales) • Comparable gross profit was 29.0% of net sales in Q1/2025 (28.3% in Q1/2024) – Stable business represented 65% of net sales (59% in Q1/2024) • Comparable SG&A expenses remained at the previous year’s level in Q1/2025 compared with Q1/2024 – Comparable SG&A expenses were 20.6% of net sales in Q1/2025 (20.0% in Q1/2024) Comparable SG&A expenses (EUR million and % of net sales) 1,263 1,429 1,513 1,513 24.9% 25.8% 28.2% 28.4% EUR million (LHS) % of net sales (RHS) 2022 2023 2024 Q1/25 LTM 0 300 600 900 1,200 1,500 1,800 0% 5% 10% 15% 20% 25% 30% 829 901 984 986 16.3% 16.3% 18.4% 18.5% EUR million (LHS) % of net sales (RHS) 2022 2023 2024 Q1/25 LTM 0 300 600 900 1,200 1,500 1,800 0% 5% 10% 15% 20% 25% 30% LTM = Last twelve months
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Cash flow provided by operating activities and Net working capital April 23, 2025 © Valmet | Interim Review, January–March 202524 • Cash flow provided by operating activities amounted to EUR 217 million in Q1/2025 • CAPEX1 amounted to EUR -24 million (EUR -29 million) in Q1/2025 • Net working capital amounted to EUR -193 million (EUR -76 million), which equals -3% (-2%) of last 12 months orders received ◦ Net working capital includes EUR 249 million dividend liability ◦ AGM decided EUR 1.35 dividend, paid out in two installments: First installment in April 8, 2025, and second installment2 in October 7, 2025 Cash flow provided by operating activities (EUR million) 1) Excluding business combinations and right-of-use assets. 2) The dividend record date and payment date for the second installment shall be resolved by the Board of Directors in its meeting preliminary scheduled for September 25, 2025. Net working capital and orders received (EUR million) 36 352 554 633 2022 2023 2024 Q1/25 LTM -82 191 134 -193 5,194 4,955 5,837 6,119 -2% 4% 2% -3% Net working capitalOrders received, LTMNet working capital/orders received, LTM 2022 2023 2024 Q1/25 LTM = Last twelve months
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Net debt and gearing decreased from the previous quarter’s level April 23, 2025 © Valmet | Interim Review, January–March 202525 Net debt (EUR million) and gearing (%) Net debt to EBITDA* ratio • Net debt and gearing decreased from Q4/2024 due to strong cash flow • Net debt to EBITDA* ratio decreased from Q4/2024 • The average interest rate of Valmet's total debt was 4.0% at the end of Q1/2025 • Net financial expenses amounted to EUR 15 million in Q1/2025 (EUR 13 million in Q1/2024) *Last twelve months (LTM) EBITDA 502 345 542 531 1,027 939 1,094 1,057 1,032 875 20% 15% 23% 21% 40% 39% 45% 43% 39% 36% Net debt Gearing Q4/22Q1/23Q2/23Q3/23Q4/23Q1/24Q2/24Q3/24Q4/24Q1/25 0 200 400 600 800 1,000 1,200 0% 10% 20% 30% 40% 50% 60% 0.78 0.49 0.77 0.74 1.46 1.36 1.63 1.59 1.55 1.30 Q4/22Q1/23Q2/23Q3/23Q4/23Q1/24Q2/24Q3/24Q4/24Q1/25 0.00 0.40 0.80 1.20 1.60
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Capital employed, Comparable ROCE and EPS April 23, 2025 © Valmet | Interim Review, January–March 202526 Capital employed (EUR million) and Comparable return on capital employed (ROCE), before taxes (%) Adjusted earnings per share is an alternative performance measure that excludes the impact of fair value adjustments arising from business combinations, net of tax. Adjusted EPS, EUR 3,308 4,055 4,158 3,96217.0% 14.5% 12.7% 13.0% Capital employed Comparable ROCE (before taxes), LTM 2022 2023 2024 Q1/25 2.37 2.28 1.93 1.93 2022 2023 2024 Q1/25 LTM • The acquisitions of Analyzer Products and Integration in 2024 and Tissue Converting in 2023 and the integration of Flow Control into Valmet in 2022 have increased capital employed • Adjusted EPS remained at the previous year's level compared with 2024 LTM = Last twelve months
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Guidance and short-term market outlook
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Guidance and short-term market outlook April 23, 2025 © Valmet | Interim Review, January–March 202528 Guidance Short-term market outlook Guidance for 2025 Valmet reiterates its guidance issued on February 13, 2025, in which Valmet estimates that net sales in 2025 will remain at the previous year's level in comparison with 2024 (EUR 5,359 million) and Comparable EBITA in 2025 will remain at the previous year's level in comparison with 2024 (EUR 609 million). The short-term market outlook is given for April–September 2025 compared with January–March 2025. It is Valmet’s estimate of the customer activity and should not be interpreted as guidance for Valmet’s orders received. Valmet estimates that the customer activity will remain stable. It is typical that customers’ large investment decisions can have a major impact on the market activity. Valmet estimates that the customer activity will remain stable, but the capacity utilization rates and profitability levels of customers cause uncertainty to the short-term market outlook. Valmet estimates that the customer activity will remain stable. Process Technologies Services Automation
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April 23, 2025 © Valmet | Interim Review, January–March 202529 Q&A
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April 23, 2025 © Valmet | Interim Review, January–March 202530 Half Year Financial Review, January–June 2025 July 23, 2025 www.valmet.com/investors Capital Markets Day June 5, 2025 www.valmet.com/investors
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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. 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