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.

• Enhanced accountability and empowerment are needed for better responsiveness.

Strategic renewal objectives

• Initiated a strategy renewal to identify future growth areas and expand current business.

• Aims to simplify operations and increase efficiency through a new operating model.

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.

• Geographical areas integrated into business areas; Latin America and China receive dedicated leadership.

• Consolidation of production and procurement to leverage global scale and drive cost competitiveness; establishment of a Global Supply unit.

• Business areas supported by Global Supply, Finance, People & Culture, Strategy & Transformation, Legal, and China Chair.