#Finland #Espoo #Valmet #2030 Financial Targets #Lead the Way

Valmet Unveils New Strategy: 'Lead the Way'

On June 4, 2025, Valmet Oyj announced a revolutionary strategy called 'Lead the Way' during its Capital Markets Day leading into June 5, 2025. The Finnish company aims to reshape its financial targets and operational model to foster growth, accountability, and improved financial performance.

Valmet, which boasts a robust legacy of 225 years in industrial technology and innovation, has set ambitious financial targets reflecting a significant increase in desired outcomes. Under the leadership of its recent President and CEO, Thomas Hinnerskov, the company is not only focusing on improving customer relationships but is also re-evaluating its internal culture to match its strategic vision.

New Strategic Fundamentals

Valmet's strategy revolves around four key fundamentals designed to drive success into the next decade:
1. Customer Success: Ensuring that customer satisfaction is at the heart of Valmet's operations.
2. Lifecycle Commitment: Committing to the sustainable management of products over their entire lifecycle.
3. Global Competitiveness: Enhancing Valmet's competitive edge on a global scale.
4. Accountability: Fostering a culture where every member of the organization is accountable for their contributions.

Alongside these fundamentals, Valmet is implementing a new operating model to simplify its organizational structure and reinforce accountability. This restructuring is expected to significantly enhance cost competitiveness and operational efficiencies. The creation of a Global Supply unit is also part of this model, aiming to realize excellence in manufacturing and procurement.

Ambitious 2030 Financial Targets

Valmet's new financial targets for 2030 signify a drastic shift in ambition that includes:

• - Organic net sales growth (CAGR) over the cycle set at 5%, aiming to exceed previous market growth expectations.
• - Comparable EBITA margin increased to 15%, up from the previous range of 12-14%.
• - Aiming for a comparable return on capital employed before taxes (ROCE) of 20%, significantly higher than the previous target of at least 15%.
• - A gearing ratio below 50%.

The company is out to establish clear capital allocation priorities to support its long-term economic strategy, ensuring sustainable value creation for its stakeholders.

Segment-Specific Missions and Targets

Valmet’s restructuring not only addresses corporate accountability but also sets clear missions for its divisions: The Biomaterial Solutions and Services segment, which includes Pulp, Energy, Circularity, Packaging, Paper, and Tissue business areas, aims to lead in circular economy initiatives. Meanwhile, the Process Performance Solutions segment which focuses on Automation Solutions and Flow Control, is dedicated to enhancing resource efficiency.

Both segments will be tasked with distinct missions leading to targeted growth and operational excellence. The former aims to include seamless lifecycle management of services and products while the latter prioritizes customer-focused innovations and enhancing digital capabilities.

Forecast and Guidance for 2025

Despite the ambitious long-term goals, Valmet has maintained the 2025 guidance estimate indicating that net sales are projected to remain stable compared to the previous year's figures. The company projects comparable EBITA to maintain at a level of EUR 609 million, in alignment with 2024 results.

Conclusion

Valmet’s Capital Markets Day, taking place on June 5, 2025, promises to delve even deeper into the 'Lead the Way' strategy. With a live webcast scheduled, stakeholders can gain insights into the new direction and help answer any questions about the upcoming transformative period. As Valmet positions itself for the future, the commitment to transformation and accountability shines through as its guiding principles. For more updates, tune in to the broadcast or keep an eye on Valmet's website.

For more details, reach out to:

• - Pekka Rouhiainen, VP, Investor Relations
• - Antti Ylitalo, Director, External Communications

Contact information:
Tel: +358 10 672 0000
Website: valmet.com.

This transition not only marks a milestone in Valmet's storied history but also sets the stage for a focused and driven future.

Stay tuned for more as Valmet embarks on this exciting new chapter.