3 September 2013

Metso’s Board of Directors approves the strategy, organization, and financial targets for the new Valmet Corporation

Company to become the global leader providing customers in bio-based industries and energy

In preparation for Metso’s planned demerger, the Board of Directors has approved the strategy, organization, and financial targets for the new Valmet Corporation*.

Valmet’s strategy
Valmet will focus on delivering technology and services globally to industries that use bio-based raw materials. Valmet’s vision is to become the global champion in serving its customers, and its mission is to convert renewable resources into sustainable results.

Valmet’s main customer industries are pulp, paper, and energy. All of these are major global industries that offer growth potential for the future. Valmet will complement its core business by applying its technology and know-how to industries beyond biomass, particularly in the energy sector.

Valmet’s product and service portfolio consists of productivity-enhancing services, plant upgrades and rebuilds, new cost-efficient equipment and solutions for optimizing energy and raw material usage, and technologies increasing the value of its customers’ end-products.

Valmet’s Must-Win initiatives to achieve strategic targets
Valmet will seek to achieve its strategic goals by pursuing the following Must-Win initiatives:

1) Customer excellence
Strengthen key account management to enhance growth at the customer.
Drive service growth through long term agreements and expanded customer base.

2) Leader in technology and innovation
Develop more cost competitive and less capital intensive products.
Create new revenue from biotechnology solutions and new offering.

3) Excellence in processes
Improve health and safety.
Reduce quality costs.
Increase savings from procurement initiatives.

4) Winning team
Strengthen high-performance culture.
Continue further globalization of our capabilities to be closer to customers.

Operating model and reporting structure
Valmet’s operating model will consist of three business lines, five areas, and four support functions. The business lines will be Services, Pulp and Energy, and Paper; and the geographical areas will be North America, South America, EMEA, Asia-Pacific, and China. The four main support functions will be Finance, Strategy and Operational Development, HR, and Communications and Marketing.
Valmet will report its financial results as one segment.

Financial Targets
Metso’s Board of Directors has set the following financial targets for Valmet:
• Net sales growth to exceed market growth
• EBITA before non-recurring items: 6-9%
• Return on capital employed (pre-tax), ROCE: minimum of 15%
• Dividend payout at least 40% of net profit

Comment from Pasi Laine, President and CEO of Valmet Corporation*
“Valmet’s goal will be to be the global leader in serving customers in its industries; and its core purpose to convert renewable raw materials into sustainable results.”

“Valmet’s competitiveness will be based on our leading position in providing services and technologies for industries using bio-based raw materials. Our comprehensive services offering, broad service network, and large installed base will provide a solid platform for growth. We will continue to ensure our technological leadership with focused and future-oriented R&D and accelerate the commercialization of our innovations.”

“We are committed to move our customers’ performance forward; and we will continue to develop and sustain our position as a trusted partner for our customers. Together with our highly skilled personnel, we are committed to the future success of Valmet and that of its customers and owners.”

Valmet’s Executive Management Team
Valmet Corporation’s Executive Management Team* will consist of President and CEO Pasi Laine and the heads of its business lines, geographical areas, and four key support functions. The members of the Executive Management Team are:

- Pasi Laine, President and CEO

Heads of business lines:
- Jukka Tiitinen, Services
- Jyrki Holmala, Pulp and Energy
- Jari Vähäpesola, Paper

Heads of geographical areas:
- Bill Bohn, North America
- Celso Tacla, South America
- Hannu Mälkiä, EMEA
- Aki Niemi, China
- Hannu T Pietilä, Asia-Pacific

Heads of staff functions:
- Markku Honkasalo, Finance (CFO)
- Kari Saarinen, Strategy and Operational Development
- Julia Macharey, Human Resources
- Anu Salonsaari-Posti, Marketing and Communications

*Pending the approval of the Metso EGM, to be held on October 1, 2013, and registration of the demerger.

Metso’s pulp, paper and power professionals specialize in processes, machinery, equipment, services, paper machine clothing and filter fabrics. Our offering and experience cover the entire process life cycle, including new production lines, rebuilds, and services.

As of January 2014, Metso’s Pulp, Paper and Power business will serve its customers with an even more focused and competitive approach as an independent, listed company, Valmet Corporation.*

Contacts
Pasi Laine, President and CEO, Valmet Corporation *
tel. +358 20 484 3200 (after 2 p.m.)

Markku Honkasalo, CFO, Valmet Corporation*
tel. +358 50 598 8728

About Metso:
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso’s shares are listed on the NASDAQ OMX Helsinki Ltd.

Source: Metso, press release, 2013-09-03.

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