Valmet (VALMT) Investor Update summary

Rationale for operating model renewal

• Aims to reduce internal complexity and increase operational efficiency after growth through M&A led to plateauing KPIs and rising overhead costs.

• Focuses on simplifying structure, removing overlaps, and empowering employees for greater accountability and customer-centricity.

• Not a reaction to market changes, but a proactive move to address internal inefficiencies and prepare for future strategy execution.

Key changes and structure

• New operating model based on four fundamentals: accountability, customer success, lifecycle commitment, and global competitiveness.

• Five business areas created: Pulp, Energy & Circularity; Packaging & Paper; Tissue; Flow Control; Automation Solution.

• Consolidation of production and procurement to leverage global scale and drive cost competitiveness.

• Strong local accountability with global support functions and a dedicated China chair for local stakeholder management.

Cost savings and workforce impact

• Plan to reduce 1,150 white-collar roles globally, targeting annual cost savings of approximately EUR 80 million by early 2026.

• Executive leadership team reduced by three positions to streamline management.

• Cost savings are net and will be front-loaded, with a restructuring provision booked in Q2.

• Blue-collar workforce not affected in this phase; future manufacturing strategy to be addressed after June 2025.