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Valmet Oyj Announces Key Decisions from Annual General Meeting

On March 26, 2025, Valmet Oyj, a prominent global developer and supplier, conducted its Annual General Meeting (AGM) in Helsinki. This gathering was pivotal for setting the course of the company for the upcoming year, during which various essential resolutions were passed that not only influence Valmet's operational outlook but also its shareholder engagement.

Financial Statements and Board Accountability

One of the primary objectives of the meeting was to adopt the Financial Statements for the year ending December 31, 2024. As part of the accountability process, members of the Board of Directors and the President and CEO were discharged from liability concerning the previous financial year. This procedural step ensures that the company's leaders remain accountable while also allowing them to move forward with confidence in their governance.

In addition to financial approvals, the AGM adopted an advisory remuneration report that outlines compensation for the company's governing bodies. This report aims to enhance transparency and accountability, which are critical for maintaining trust with shareholders and stakeholders alike.

Dividend Payment and Shareholder Engagement

In an exciting development for shareholders, it was announced that a dividend of EUR 1.35 per share would be distributed for the 2024 financial year. This dividend will be dispensed in two installments, with the first installment of EUR 0.68 per share scheduled for payment on April 8, 2025, to shareholders registered by March 28, 2025. The second installment of EUR 0.67 per share is set for October, with the exact details to be confirmed in September, marking a proactive approach to shareholder engagement. Such structured dividends demonstrate Valmet's commitment to returning value to its investors while also positioning itself as a robust player in the market.

Structural Changes in Governance

The meeting also confirmed significant changes in the composition of the Board of Directors. The Board now comprises eight members, with Pekka Vauramo taking on the role of Chair and Annika Paasikivi as Vice Chair. Re-elections and new appointments bolster the Board's commitment to progressive leadership, as seasoned members like Anu Hämäläinen and newcomers Bernd Eikens and Jonas Gustavsson bring diverse expertise to the governance structure.

The AGM established a clear remuneration structure for Board members, indicating the annual payment to the Chair will be EUR 155,000, while the Vice Chair will receive EUR 85,500. Other Board members will earn EUR 68,000 each. Committee members will also receive specific fees based on their roles, with additional provisions for meeting attendance that vary by location, emphasizing Valmet’s inclination towards fair compensation aligned with the Board's responsibilities.

Strategic Share Repurchases and Issuances

A notable resolution granted the Board of Directors the authority to repurchase up to 9.2 million shares, a move representing approximately 5% of the company's total shares. This decision reflects Valmet’s strategy of enhancing shareholder value through share buybacks and presents a proactive response to market conditions.

Moreover, the AGM empowered the Board with the ability to issue new shares, specifying that up to 18.5 million shares could be designated for this purpose. This capability allows Valmet to pursue growth and strategic acquisitions while remaining flexible in responding to market opportunities.

Future Outlook and Commitments

As part of its corporate governance principles, Valmet has stipulated that Board members must utilize 40% of their fixed annual remuneration to purchase Valmet shares. This policy not only aligns the interests of the Board with those of the shareholders but also reinforces a commitment to the company's long-term success and progress.

The AGM also saw the election of PricewaterhouseCoopers Oy as the company’s auditor, with Pasi Karppinen acting as the responsible auditor, further emphasising the company’s commitment to transparency and responsible governance.

As the dust settles after this significant meeting, the decisions made will surely set Valmet Oyj on a promising trajectory. The engaged approach towards governance, remuneration, and shareholder value reflects a modern corporate philosophy that prioritizes accountability and growth.

In conclusion, Valmet Oyj remains dedicated to advancing its operational excellence while ensuring that shareholders can expect continued growth and robust engagement in the years to come.