#1Valmet Fabrics March 21, 2017 Jari Stålhammar Vice President, Fabrics Valmet#2Services business line in 2016 Fabrics is part of Valmet's Services Business Orders received by area 12% 11% 19% 26% 9% Orders received EUR 1,182 million Net sales EUR 1,163 million Orders received by business 15% Employees 5,339 Market position #1-2 Services 21 March 2017 O Valmet | Investor Site Visit to Fabrics 28% 26% 45% ■ Rolls ■Mill Improvements ■ Performance Parts ■ Fabrics Energy and Environment ■ North America ■ South America ■ EMEA ■ China ■ Asia-Pacific Valmet 9%#3Valmet Services offering Comprehensive services offering; widest in the industry Valmet > 10/10 00 Valmet > Ser 100 Welcome to Services 24h Rolls and Workshop Services Mill Improvements Performance Parts • Rolls Roll covers and • maintenance Workshop services 0000 · · Upgrades • Components Expert services Extensive field service offering Original equipment manufacturer (OEM) spare parts Consumables 21 March 2017 O Valmet | Investor Site Visit to Fabrics Fabrics • • Energy and Environmental Paper machine clothing Filter fabrics Services for evaporation plants, power and recovery boilers and environmental equipment Valmet#4Fabrics business Fabrics Paper Machine Clothing 21 March 2017 O Valmet | Investor Site Visit to Fabrics Pulp & Paper Mining & Chemicals Filtration Laundry products Dry filtration Valmet#5Shared Journey Forward Valmet's way to serve Valmet#6Our core commitments Safety comes first • Services offering Reliability • Spare parts and components Maintenance and shutdown management Outsourcing services Close to you Shared Journey Forward Solutions to Valmet's way to serve your needs People you can trust • Performance Production consumables Process support and optimization New Technology Process and automation upgrades • Automation projects • Industrial Internet and remote solutions Committed to moving your performance forward 21 March 2017 Valmet Investor Site Visit to Fabrics Valmet#7Meet the tailors and the bespoke fabrics Valmet's Fabrics business Valmet#8Valmet: over 200 years of industrial history 1797 Tamfelt 1951 Götaverken Valmet 1841 1856 Tampella 1858 Beloit 1860 KMW 1968-1996 Several M&As i.e. 1986 KMW 1987 Wärtsilä paper finishing machinery 1992 Tampella Papertech End of 2013 Demerger to Valmet and Metso 1868 Sunds Defibrator 21 March 2017 1942 Rauma- Raahe 1999 Metso created through merger of Valmet and Rauma Key acquisitions 2000 Beloit Technology 2006 Kvaerner Pulping Kvaerner Power 2009 Tamfelt 2015 Metso Process Automation Systems to Valmet O Valmet | Investor Site Visit to Fabrics Valmet#9Fabrics - A strong history for a bright future • • • . • 1797 Jokioisten Verkatehdas established 1869 Tampereen Verkatehdas Osakeyhtiö established 1882 Manufacturing of papermaker's felts 1965 Filter fabric manufacturing 1981 Company name changed to Tamfelt 1984-2008 Acquisition of Viira Oy in Juankoski and Fanafel in Portugal 2006-2008 Chinese operations established 2010 Tamfelt part of Metso 2014 Fabrics business part of Valmet 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#10220 years in the making From then to tomorrow First paper machine felt order in December, 1882 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet Valmet > Valmet met Spearheading tomorrow's technology for continuous improvement Valmet#11Valmet's broad know-how and installed base 12,000 professionals working close to our customers Over 120 service centers for continuous support Over 3500 R&D professionals ensuring solutions to customer needs Valmet > 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#12Quality has its origin Special facilities for special solutions . Tampere, Finland · Press felts Dryer fabrics Shoe press belts Wet filtration media Juankoski, Finland Tianjin, China • Forming fabrics 21 March 2017 Valmet | Investor Site Visit to Fabrics Forming fabrics Dryer fabrics Wet filtration media Valmet Valmet#13Quality has its origin Special facilities for special solutions Ovar, Portugal Belo Horizonte, Brazil Aiken, SC, USA Valmet • Filtration service technology center Wet filtration media Wet filtration media Wet and dry filtration media, industrial textiles for the laundry industry 21 March 2017 Valmet | Investor Site Visit to Fabrics Valmet Valmet#14A full line, for all conditions Valmet#15A full line of paper machine clothing For all parts of the process Forming fabrics Press felts Shoe press belts Dryer fabrics Valmet Valmet 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#16The most extensive filtration products range on the market Mining industry Chemical industry Pulp and paper industry Energy industry Laundry industry 21 March 2017 O Valmet | Investor Site Visit to Fabrics Environmental solutions Valmet#1721 March 2017 O Valmet | Investor Site Visit to Fabrics It's the experience that makes the difference Valmet Valmet#18Expertise to help you improve performance Research and development Research • Extensive set of pilot facilities Close cooperation with papermakers and other process industry customers Work with universities and research institutes Modern paper testing and textile laboratories in Finland and Portugal Development • Extensive intellectual property portfolio with a large number of protected innovations Continuous development and troubleshooting in cooperation with customers 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet >#19Quality every step of the way The typical production process Warping Weaving Heat setting Needling Seaming and Inspection and sewing packing 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#20PMC technology unit Paper Machine Clothing Valmet#21Bespoke solutions for a EUR 2bn global market For all parts of the process Forming fabrics Press felts Shoe press belts Dryer fabrics Valmet Valmet 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#22If you move at 2,000 meters per minute, you need clothing that fits. 21 March 2017 Valmet Investor Site Visit to Fabrics Valmet#23Valmet's forming fabrics For high-quality end product Benefits • High wear resistance Long running life Good paper profiles • Good retention • Low marking Smooth runnability 12 different styles with many variations for different customer demands 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#24Optimizing water removal Press fabrics and felts Benefits High dry content Energy savings No marking Fast start-up Excellent runnability Improved paper properties 23 different styles with many variations for different customer demands 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#25Trouble-free running life Shoe press belts Benefits Excellent wear resistance Stable structure • Roll type running Long running time Efficient dewatering Surface options Grooved (V), Discontinuous grooves (DG), High density grooves (HD), Smooth (S) 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#26Optimizing water removal Dryer fabrics Benefits Large contact surface Increased drying rate Enhanced paper quality • Durable fabric Good shape retention Strong non-marking seam Easy to clean 9 different styles with many variations for different customer demands 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#27Technical customer service Advisor services Trouble shooting Shut down service Fabrics monitoring with measurement and analysis Fabric repair 21 March 2017 O Valmet | Investor Site Visit to Fabrics 6.764- 6- 5- 3- 7.6 9.1 10.5 13.0 14.7 990 820 710 570 505 95.2 1.7 1.1 14 0.6 14.0 4.9 日日 0.9 7.0 2: 0.1 6.000- 5.000- 4.000- 3.000- Section Speed m/min 1276 yeimet 0 0 10 20 30 40 50 60 70 80 90 100 110 120 130 140 150 160 17.5 20.6 20.6 21.2 1:49.0 2:67.0 294.00 296.00 298.00 300.00 302.40 x-mm Valmet#28Filtration technology unit Valmet#29Most extensive range of filtration products A global market of EUR 3 billion Mining industry Chemical industry Pulp and paper industry Energy industry Laundry industry 21 March 2017 O Valmet | Investor Site Visit to Fabrics Environmental solutions Valmet#30High temperatures, complex chemical environments and sludge varieties set a high bar for requirements. 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet >#31Extreme durability for tough environments Mining and chemical industries Benefits . Easy installation Accurate fit • Highly wear-resistant Excellent filterability Minimized need for shutdowns Fabrics for: Disc filters, Tower press filters, Drum filters, Press filters, Belt filters 21 March 2017 Valmet | Investor Site Visit to Fabrics Valmet#32Tailor-made for the best fit Pulp and paper industry Benefits . • Easy installation High capacity Good filtration clarity High dry solids content Operational reliability Fabrics for: Recausticizing processes, Disc filters, Drum filters, Twinwire presses 21 March 2017 Valmet | Investor Site Visit to Fabrics Valmet#33Quality filtration to help reduce pollution Energy industry Benefits . Easy installation High capacity Durable, high-quality fabric Reduces emissions Minimizes pollution Fabrics for: Bag houses, Biofuel production, Coal burning 21 March 2017 Valmet | Investor Site Visit to Fabrics Valmet#34Valmet is also the world's leading supplier of industrial textiles and accessories for the laundry industry. 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet >#35Top-of-the-line laundry products Laundry industry Benefits . . . Easy installation High heat, abrasion and moisture resistance High permeability Good moisture absorption Non-marking finishing Products for: Ironers, Feeders, Stackers 21 March 2017 Valmet | Investor Site Visit to Fabrics Valmet#36Fabrics for optimized dry filtration processes Power plants, Incinerators, Cement plants, Asphalt plants Filtration process benefits Excellent filtration efficiency Meeting emission standards Easy dust cake release allowing highest air flow at a low and stable pressure drop • Dimensional stability of bags • Cost effective dedusting process Operational reliability 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#37Optimized filter performance See measureable results with Valmet's tailor-made products Clearer filtrate Higher Lower Longer Improved capacity moisture lifetime reliability 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#38Savings in filtration processes Industrial internet application for optimizing filter cloth performance • An equipment that records the lifetime of the filter cloth and a program that gathers and analyzes the data and provides informative visual reports On-line information about cloth performance and the reasons for cloth changes • The application enables our filtration. experts to provide remote support. Cloths 80 70 60 50 Filter #1 4000 3500 3000 2500 2000 1500 1000 40 30 20 10 0 Jan Valmet > 4/29/2016 FABRICS ONLINE 4046 AM Set 1 Set 2 STATE: OPEN CYCLE COUNT: 1092 INSTALLED: 100 .... READ TAG Note: Complete filter set replacement is recorded automatically Reports History Ext Chamber side Membrane side 21 March 2017 O Valmet | Investor Site Visit to Fabrics Install counts Valmet Cyccles#39Fabrics today World's fastest paper and board machines provide strong references • The leading filter fabric supplier to recausticizing processes and mining industry The leading supplier of disc filter bags to the paper and pulp industry Production in six countries • Main markets: Europe, North America, South America, Asia Innovative product development, several patents - R&D in co-operation with customers, filter producers, universities and research centers High-class laboratories for textile, paper research and filtration Personnel 1250 21 March 2017 O Valmet | Investor Site Visit to Fabrics Valmet#40Important notice It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for growth, profitability and investment willingness, expectations for company development, growth and profitability and the realization of synergy benefits and cost savings, and statements preceded by "anticipates", "believes", "estimates", "expects", "foresees" or similar expressions, are forward-looking statements. Since these statements are based on current decisions and plans, estimates and projections, they involve risks and uncertainties which may cause the actual results to materially differ from the results currently expressed. Such factors include, but are not limited to: 1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers of the company or economic growth in the company's principal geographic markets. 2) industry conditions, intensity of competition situation, especially potential introduction of significant technological solutions developed by competitors, financial condition of the customers and the competitors of the company, 3) the company's own operating factors, such as the success of production, product development and project management and the efficiencies therein including continuous development and improvement 4) the success of pending and future acquisitions and restructuring. 40 March 2017 O Valmet | Roadshow presentation Valmet#41Valmet FORWARD