Questions and answers related to Q3/2015 Interim Review

Why did the profitability (EBITA %) increase y-o-y? (Compared to Q3 2014)

• Profitability improved due to higher level of net sales, improved gross profit, and the acquisition of Automation

Why did the profitability (EBITA %) decrease q-o-q? (Compared to Q2 2015)

• Lower business volumes in stable business

What was the profitability excluding Automation?

• We don’t report business lines’ profitability separately
• Automation had solid performance in Q3

Why did orders received in Services decline by 1% at constant currencies, after strong H1?

• Orders received increased in China, remained stable compared with the comparison period in North America, EMEA and Asia-Pacific, and decreased in South America.  However, currency has supported the reported figures in North America.
• Orders received increased in Mill Improvements and Fabrics, remained stable compared with the comparison period in Performance Parts and decreased in Energy and Environmental, and Rolls.
• Key issues to grow services are related to increase long-term agreements, being close to customers
• Long-term outlook for services intact, service growth is strategic priority for Valmet

Why did you downgrade the short term market outlook for Board and paper to satisfactory (previously good)?

• It seems that customers’ decision making takes longer time

Any improvement in Energy, where the short term outlook is “weak”?

• Customers’ decision making takes long time, no clear improvement seen
• Very difficult to evaluate the impact on our business and our customers: Typically customers consider the investment in longer term, but it may be quite difficult to forecast the long-term price development