#1Valmet in China for Investor site visit to Shanghai, Jiading Xiangdong Zhu Area President, China November 14, 2023 Valmet#2Valmet in China Contents 1 Valmet has a strong presence in China 2 China is a large and growing market for Valmet 3 Valmet has a strong market position in China 4 Valmet has a clear strategy to grow in China LO 5 Summary Valmet 2 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai#3Valmet has a strong presence in China Valmet#4Valmet's milestones in China 90 years sustainable development in China 1933 First paper machine delivery to China (Guangzhou Paper) by KMW 1956 Second Paper machine delivery to Guangzhou Paper (PM 5) 1989 Valmet - Xian joint venture established 1997 Valmet Beijing office established Valmet Automation office established 1999 Ji'nan office established 2001 Wuxi Service Center established 2001 Guangzhou office established 2003 WaiGaoQiao Production estaiblised 2006 Jiading Production established 2009 Guangzhou Service Center estiblished 2010 Zibo Service Center established 2010 Shanghai Technology Center established (Flow control and Automation System) 2010 Acquired Tamfelt Fabrics Tianjin 2013 Fabrics Tianjin production extended 2015 Taiwan office established 2017 Valmet Jiading new office building opened 2018 Wuxi and Chongqing IFS new offices opened 2019 Wuxi and Guangzhou Service Center Extension 2020 Valmet China in Jiading, Shanghai became China area business center 2020 Valmet acquired PMP Changzhou production 2021 Automating Shanghai relocated to Jiading 2021 Invested in Beihai Service Center 2022 Neles merged into Valmet - Shanghai and Jiaxing factory 2023 Flow control Shanghai relocated to Shanghai Innov Center 90 1933-2023 维美德在中国 1933-1999 4 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai 2000-2010 Valmet >> 2011-2020 2021~ Valmet#5Five business lines and four regions North China East China South China West China Finance IT Kalmet Services Paper Pulp and Energy Automation Systems Flow Control Human Resources Strategy Legal 5 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Operations Excellence Marketing and Communications Valmet#6Strong presence in China - close to customers ~2,300 employee New service center to be opened Q1 2024 Tianjin Beijing Ji'nan Zibo Xi'an Nantong Changzhou Wuxi Shanghai Chongqing Jiaxing Taipei Beihai Guangzhou 6 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Area business center • 7 Production unit Jiading Xi'an Jiading, Shanghai Changzhou Jiaxing Tianjin WaiGaoQiao Nantong 5 Service center • Wuxi ⚫ Guangzhou ⚫ Zibo ⚫ Jiaxing Beihai (under construction) 2 Technology center 6 Office ⚫ Shanghai Jiaxing 1 Performance center Jiading Beijing Shanghai Ji'nan ⚫ Guangzhou ⚫ Chongqing Taipei Valmet#7Valmet's China business area Q3/2023 LTM figures Orders received EUR 715 million Net sales EUR 694 million Employees 2,354 7 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai 12% Valmet's net sales by area Net sales in China by segment 14% 39% ■ North America ■ EMEA ■ China Asia-Pacific 23% 12% 58% South America Services ■ Automation ■ Process Technologies 24% 18% Valmet#8Valmet China financial development EUR million Orders received 1 000 900 885 Net sales 1 000 900 830 780 800 755 800 711 715 694 700 700 600 572 600 523 695 500 428 553 437 437- 500 535 547 490 465 594 406 391 402 400 400 362 342 429 373 303 399 300 267 300 269 339 329 243 244 320 271 222 311 241 200 122 200 194 161 160 194 275 277 283 288 100 190 202 100 82 85 108 120 142 150 145 80 0 0 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM ■Services and Automation ■Process Technologies 109 121 131 136 136 151 186 75 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 LTM ■Services and Automation Process Technologies 8 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai LTM Last twelve months, Q4/2022-Q3/2023 Valmet#9Major start-ups in 2022 Valmet O Valmet Ot SHANYING PAPER GO 1st JUMBO ROLL 山鹰PM53成功上 14 Tissue production line APP Rudong - IntelliTissue *10 - Advantage DCT 200 *2 Zhejiang Jingxin Paper - Advantage DCT 200 *2 9 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai TwinRoll Valmet 5 Board and Paper production 4 Line Semi-chemical pulp line and chemical pulp line Shanying Guangdong APP Bohui *2 *1 Asia Symbol Guangdong *1 Nine Dragons Quanzhou *1 Nine Dragons Jinzhou Nine Dragons Dongguan *1 Nine Dragons Chonqing *1 *2 Valmet#10Six Liansheng Projects started during May-June 2023 AQ ther 65%. First Final Pulp sheet at 02:40am, May of in LSZ BCTMP Line* Valmet 热烈庆祝联盛浆纸TM3成功上卷 热烈庆祝联盛浆纸PM1成功上卷 almet 热烈祝贺福建LSZZ BCTMP1#线顺利开机! Warmly Congratulate the Successful Start-Up of LSZZ BCTMP Line#1/ 生活用纸生产线TM3 5月7日14:00 Liansheng BCTMP line 1 started 1st May Liansheng PM1 started 1st May 71-7%Brightness First Pulp to final pulp tower LS2 BCTMP 2 line June 1st, 00:09, 2023 & ERORIAN 144<80+80/10>t. 00-117-6000 有热烈庆祝联盛浆纸TM4成功上卷 AADA 热烈祝贺福建ISZZBCTMP2#线顺利开机! Liansheng BCTMP line 2 started 1st June Up of LSZZ BCTMP Line#2! Liansheng PM3 Started 8th June 生活用纸生产线TM4 5月20日13:00 10 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Valmet Valmet#11Supply Automation System for the Most Advanced RoPax TT-Line Green Vessel Nils Holgersson Background Shipowner: TT-Line, Germany Shipyard: CMI Jinling Shipyard • 2 Dual-fuel Ropax . Operating in the Baltics TT-Line GREEN SHIP NG POWERED Vessel Details Decks 12 Length 230M Width 31M Speed 21Kn 239 modern cabins 800 passengers + 66 crews More than 3500 m² of public areas Most advanced RoPax in the world Delivered in March 2022 Solution Valmet DNA automation system covering: • Machinery Automation Power Management System Bilge and Cargo System Interface size: • Approx. 4 200 hardware I/O Unique Competitiveness • Good references in high value-added vessels, especially cruise. Advanced and integrated automation system to ensure stability and runnability. Customer-centric mindset and approach. Global network and local project execution capabilities. Approx. 11 500 data communication points 80 pcs RS and Ethernet data communication lines 11 11 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Valmet#12Valmet is a desired employer in China People development Well-designed process Opportunities for career development and internal mobility • Learning and development • • Global training portfolio Workday e-learning course Lean expert program Leadership development Key talent development program Valmet China Academy of Technology Mentoring program Employee engagement Deploy OurVoice survey to collect employee's voice High response rate and fruitful actions Awarded 2021-2022 Employer Excellence of China Diversity & Inclusion value to unleash people potential 12 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai 129 Our Voice EMPLOYER EXCELLENCE CHINA 2022 中国典范雇主 Awarded by 51JOB.COM EVERYTHING WORKS TOGETHER Valmet#13China is a large and growing market for Valmet Valmet#14China remains a large and growing market . China's economy is expected to drive global growth GDP growth, % 20% ⚫ GDP growth target at ~5% in 2023 • Growth in personal income that is generally in step with economic growth 15 • Prioritize domestic consumption as key driver 10 • CPI -3% • Steady increases in both the volume and quality of imports and exports 5 Potential risks • Global recession and Geopolitics • • · Demographic challenges Housing market faces both cyclical and structural headwinds Unemployment (structural, youth) 14 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai -5 -10 Quarterly growth,% Year-over-year growth, % 2023 Target 5.0% 2023H1 5.5% YoY 2023Q3 4.9% Quarterly Forecast by IMF in Q1, 2023 2023 target 5.0% T '18 '19 20 '21 $22 123 -5,2 Valmet#15Declining and aging population 160000 2023-2100年中国总人口预测(万人) China Total Population (10K) Year H M 80000 2030 138675 137399 L 136055 60000 2050 128787 123034 117239 40000 2070 108216 97605 87845 2100 80311 62524 47940 20000 资料来源:育娲人口 0 2023 2028 2033 2038 2043 2048 2053 ——高预测 2058 2063 2068 2073 2078 2083 2088 2093 2098 中预测——低預測 • China's population started declining from 2022 Working age population decrease -0.75%; population under 16 years old decreases -2.6%, while above 60 years old population increases +4.7% Key Implication: - - - The annual average decline of 1.73% in China's working- age population sets the scene for much lower economic growth As the young population declines, domestic demand for consumption may weaken. More resources to provision of health, medical and aged- care services to meet the demands of an increasingly elderly population. The impact of China's demographic change will not be limited to its own geographic boundaries. 140000 120000 100000 60.00% 50.00% 20.00% 10.00% 15 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Yuwa reserch 低预测下中国65岁以上老年人口占比预测(%) 70.00% 40.00% 卡& 有娲人口研究 30.00% 0.00% 2023 2028 2033 2038 2043. 2048 2053 2058 2063 2068 2073 2078 2083 2088 2093 2098 ——老年人口比例(%) 育娲人口研究 YuWa Population Research Valmet#16China is shifting towards high-quality and sustainable development China is taking initiatives to boost long-term growth, including - Innovation and reform Digitalization Accelerating the green transition ■ Electrical vehicles Encourage hydrogen energy and other clean power industry Circular economy ☐ Single-use plastic replacement ☐ ■ Recycled textile Total sold New energy vehicles in 2022 reached 6.887 million, The market share is 25.6%. Wind power and photovoltaic power generation will be 15.3% of the electricity consumption of the whole society in 2023 Sustainable development is seriously put into many of our customers' strategy 16 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai 《纸及纸制品环境足迹评价通则》 Carbon footprint assessment standards Published in 2023 Oct; They are identical with 《制浆造纸产品环境足迹评价细则》 Europe. Valmet#1777 17 Paper and Board market in the short and mid term China plays a leading role in Paper & Board production globally EMEA 27 % AP 21 % ΝΑ 20% 180 Million tons SA 160 4 % 140 120 100 China 80 28 % November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai 60 4 20 40 0 Chinese P&B production is projected to reach 140 million tons by 2025 and 170 million tons by 2035 According to China Pulp & Paper industry 14th development plan, Production CAGR 2.6% '14 '15 '16 '17 Consumption, YoY -1.94% 140 Production, YoY +2.64% '18 '19 '20 '21 122 Source: RISI; China Paper Association '23 '24 '25* '35* 170 Valmet#18Virgin wood pulp production increased by 17% in 2022 Pulp consumption 22'-21' YoY% Pulp production 113,0 110,1 +5% 5,4 103,2 Non-Wood 99,7 100,3 101,0 102,0 5,5 -2% 86 97,0 97,1 6,0 93,4 5,2 6,8 5,9 5,9 2,6 7,6 2,3 6,1 23,6 2,3 8,3 2,1 2,8 22,6 Import Wood-pulp -4% 82 0.72% 6 Non-wood pulp 6 1,8 17,6 18,8 21,1 25,6 27,2 15,9 21 22,0 15,1 20,3 Wood pulp 13% Wood pulp 18 16.9% 17,9 9,7 10,1 10,5 9,6 8,8 0,0 14,9 Import RCP 4% 11,5 12,7 0,3 22,4 23,9 23,1 20,6 9,3 6,2 23,8 14,6 1.72% 59,4 61,0 Domestic OCC 3% Recycled pulp 58 59 45,0 47,6 39,5 39,5 40,2 42,4 39,9 35,6 2013 '14 '15 '16 '17 '18 '19 120 '21 18 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai '22 22 Source: China Paper Association 2021 2022 Valmet#19Industry consolidation to accelerate with new capacity Top 5 producers represented 40% in 2022 Nine Dragons 15,920 APP 13,110 Chenming 5,020 Huatai 3,020 Sorted by Paper & board production in 2022 Thousand tonne Fujian Sun Paper 8,338 China Paper Liansheng Corp. 2,860 2,680 Long Chen 2,420 Asia Symbol 1,969 Zhejiang Dongg... Jingxing Jianhui Vinda 1,571 1,450 1,390 Lee&Man 6,616 Xinxiang Don... Century Sunshine 1,960 Xinya... Dongg... Jinz... 1,320 Taison Shanying 6,148 Wuhan Gold Pheonix... 1,145 UPM Z... 870 L... Hen... Henan 1,280 Longyu... | Yong... Others 38,717 Valmet 19 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai#20Pulp and Paper market drivers WOOL PUPPLIE 2010 Valm ainet> Velmet > Board Board and Paper packaging as substitute of single-use plastic, e- commerce boom. New technology for high resource efficiency & sustainability Tissue Advant Pulp Hybrid Tissue market emerging and Development "Fiber to Tissue" strategy New capacity for fiber shortage. Forest-pulp-paper integration Service Upcoming installed base Efficiency improvement and energy saving Carbon emission reduction Digital and remote solutions 20 20 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Valmet#21Valmet has a strong market position in China Valmet#22Valmet's customer base in China 22 22 Pulp Eilbock Paper Energy Process 【玖龍) ● 晨鸣集团 日华泰集团 太陽紙業 山鹰国际 Chenming Group mal HUATAI GROUP APP 博汇 博汇纸业 BOHUI PAPER SUN PAPER SHANYING INTL Vinda UPM ASIA SYMBOL 恒安集团 HENGAN storaenso Ⅲ 理文造紙有限公司 Lee & Man Paper Manufacturing Limited INTERNATIONAL PAPER S 联盛纸业 恒利集团 HENGLIGROUP 创导健康新生活 中顺洁柔 雨森 世纪阳光 中国纸业 USEN Century Sunshine CHINA PAPER JS 景與湖素 云南林投 JIANHUI PAPER YUNNAN PROVINCIAL FORESTRY ANVESTMENT v 泰格林纸 JINGXING PAPER 逮晖纸业 C&S 河南投资集团 HENAN INVESTMENT GROUP OJI PAPER APRIL 杭州锦江集團 COSCO HANGZHOU JINJIANG GROUP SHIPPING 紙榮 業成 永豐餘 QINGSHAN (%) 正隆集團 CHENG LONG GROUP 招商局金陵船舶(南京)有限公司 山东泉林 鑫鑫木业 XINXIN WOOD GROUP SSPAPER |北京排水集团 CHINA MERCHANTS JINLING SHIPYARD(NANJING CO. LTD. TROLIN BEIJING DRAINAGE GROUP CO.,LTD ENDURANCE 耐德工业 Valmet is a registered trademark of Valmet Corporation. Other trademarks appearing here are trademarks of their respective owners. November 14, 2023 © Valmet | Investor site visit to Jiading, Shanghai Valmet#23Valmet's market position in China Services ~10% Automation Systems Flow Control > Pulp ~45% ~4% Valmet's market share of target market Valmet's market share of target market Valmet's market share of target market -35% Paper -50% Valmet's market share of target market Valmet's market share of target market The service market is fragmented, with Valmet, Voith and Andritz having about the same market share. Valmet #1-3 in different Automation applications in P&P China. ABB and Honeywell the main competitors. The Market is fragmented Valmet is #1 in Pulp and Paper industry Strong position in selected area Valmet #2 in Pulp in China. Andritz the main competitor. Valmet #1 in Board and Paper. 65/35 against Voith. Tissue more fragmented 23 23 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Valmet#24Valmet has a clear strategy to grow in China Valmet#25Valmet's Way Forward in China Process Technologies Continue to improve cost competitiveness for mid-size machines and projects Promote new technology for sustainable growth Tissue business development by consolidation of SMM, Tissue and Tissue converting Develop new business opportunities in niche market (WtE boilers, ES, Biomass etc) Services Strong capability development in Pulp, Tissue, Energy segments Strong growth with Beihai Service Center and West Region set up Concrete services offering development in VII with Automation Systems & Flow Control • Local capability and competence development Automation Expand Automation Systems market share in marine & renewable industries, and synergy with Flow Control Improve competitiveness in DCS and growth in competitor replacement • Local capability improvement and invest in West region Flow Control focus on renewable & mining industry 25 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai VII Valmet Industrial Internet Valmet#26Summary Valmet#27Today's key messages • Valmet has a strong presence in China China is a large and growing market for Valmet Valmet has a strong market position in China • Valmet has a clear strategy to grow in China 27 27 November 14, 2023 O Valmet | Investor site visit to Jiading, Shanghai Valmet#28Valmet (China) Co., Ltd. 维美德(中国)有限公司 Valmet#29Our location WN AQIAO WN $321 宝凤路 LOUTANG TOWN JUYUAN RESIDENTIAL DISTRICT | 615 XUHANGZHEN SHENGQIAO TOWN Baofeng Rd LUODIA SHANG 罗店镇 Valmet (China) Co., Ltd (Jiading location) 宝山区 LUODIANZHEN 罗店镇 | G1501 | BAOSHAN TOWN · G1503 里山镇 $127 0346 JIADING DISTRICT 嘉定区 G1501. $126 G204 JIADING INDUSTRIAL QU FANGTAI TOWN 方寺镇 $322 IS224 走工业区厂 5322 LIUHANG TOWN GUCUNZHEN 1 $5 小顾村镇 5322 [G15 MALUZHEN $20 马構 $5 NANXIANG 南翔镇 G312 [S2281 HUANGDUZHEN FENGBANG TOWN 封泥镶 42 G42 HUAXINZHEN |S26) ZHEN G50 JIWANG TOWN Hongqiao Airport 40km,40min. S224 PANLONG TOWN XUJINGZHEN $326 G42 YANGHANGZHEN LINGQIAO TOWN 格行構 SONGNANZHEN CAOZHEN TOWN GAOQIAO. SHANGHAI |G1501 MIAOHANGZHEN 鹿行構 QILIAN TOWN 祁连锁公 TAOPUZHEN G204 6312 JIANGQIAO. SHANGHAI 江桥镇 5327 DACHANGZHEN 大场镇 YICHUAN ROAD RESIDENTIAL DISTRICT PUTUO 三川路 普陀区 CHANGZHENG TOWN NANKUAI 长征填面块 $20 XINJING SHANGHAI 新注填 CHENGJIAQIAO RESIDENTIAL DISTRICT G318 程家桥 HONGQIAOZHEN 紅析構 HEMUQIAO TOWN G3187 QIBAO 和超快填 G50 七宝镇 $124 JIUTINGZHEN 車镇 XINJIANGWANCHENG RESIDENTIAL DISTRICT 新江湾城 Qingcaosha Reservoir 青草沙水库 PANSHI TOWN 旭石構 Changxing Island GAODONGZHEN 长兴岛 QIANWEI FARM CHANGXINGZHEN 长兴精 DONGXING TOWN LIANGCHENGXINCUN RESIDENTIAL DISTRICT 涼城新村 SICHUAN NORTH ROAD RESIDENTIAL DISTRICT (四川北路 WUJIAOCHANG RESIDENTIAL DISTRICT 五角场 KONGJIANG ROAD RESIDENTIAL DISTRICT 控江路 YANGPU DISTRICT Fuxingdao Island DONGGOU TOWN 东沟镇 Downtown G1501 GULU TOWN 恭構 CAOLUZHEN 筆構 0228 杨沫 42km, 50min Shanghai 上海市 XINHUA ROAD RESIDENTIAL DISTRICT 新华路 XUHUI DISTRICT 徐汇区 DAPUQIAO RESIDENTIAL DISTRICT 打浦桥 LUJIAZUI RESIDENTIAL DISTRICT PUDONG 海新区: HUAMU RESIDENTIAL DISTRICT $121 ZHANGJIANG TOWN TANGZHEN 、张江 G40 G40 东兴構 QIANWEI FARM 前卫农场 HONGXING TOWN XIN GANG TOWN 新港镇 HEQINGZHEN 合庆集 CAILU TOWN Yuanshagang 因沙港 IS221 | 61501 CHUANSHAXINZHEN 川沙新镇 JICHANG TOWN G228 Shanghai (机场構 CAOHEJING RESIDENTIAL DISTRICT ZHOUJIA FERRY RESIDENTIAL DISTRICT BEICAIZHEN 北菜糖 SUNQIAO TOWN 周家注 河注 YANGSI TOWN 杨思構 Middle Ring Rd SANLINZHEN HUANGLOU TOWN HENGMIAN 盖供構 TOWN GUMEI RESIDENTIAL DISTRICT 古美 CHANGQIAO RESIDENTIAL DISTRICT $201 KANGQIAOZHEN CHENQIAO TOWN WAN TOWN HENGSHAXIANG FENGLE TOWN 丰乐镇 Hengsha Island 横沙岛 Pudong International Airport 上海浦东 Pudong Airport 72km, 1hr 国际机场 |G1501 Valmet#30History of Valmet Jiading 2006 Jan. SCPMC sold 100% shares to Metso Paper Sep. Company name changed to Metso Paper Technology (Shanghai) Co., Ltd Dec. Opening ceremony ABERMELL Valm 中国制 业典 Cerem 2014 Apr. Valmet (China) Co., Ltd was registered Oct. SPR production finished relocation from WGQ and started operation in Jiading 2016 1st tissue machine relocated from XIA and started manufacturing in Jiading 上海市人民政府 2017 Shanghal Municipal People's Government 2020年4月 1st winder and tissue machine delivery New office building put into use April, 2020 Valmet> 2019 1st steel cylinder 庆祝维关维上海工厂第一台卫生纸机黑科交性 Cribration of First Tee Machine from Valet SHA manufactured www 2020 Valmet China established its regional 2021 Valmet Automation China relocated to Jiading 2022 Shell welding workshop opening Valmet Automotion China Valmet > EAT workshop opening ceremony 维美白影中国FAT车间 礼 > headquarter in ·庆祝维美产上海高( Shanghai 本缸体焊 间正 Opening Celebration of Shangha Production Shell Welding Workshop 庆祝缸体焊接车间正式启动, Valmet#31Valmet (China) Co., Ltd 403-93 W 34 93--3937 193 LES PEL PAPER PORES 52-3533-1 Operations started in 2006. Plant area 150,000 square meters (225 Mu); 58,000 square meters (87 Mu) under roof Manufacturing including: Foundry, Welding & Machining, Assembly, Cleaning and Painting Valmet#3232 Approx. 800 professionals based in Jiading location Headcount by business line: Headcount by fuction: 0 ■Sales (36) ■ Project Management (147) Operation Excellence (35) ■Supply Chain (38) ■Technology (66) ■ Production (455) ■ China Area (30) ■ GFO (24) ■ Paper (635) ■ Pulp and Energy (54) ■ Services (43) ■ Automation (68) ■ Others (77) Valmet#33Valmet FORWARD