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Valmet has published restated figures for 2017 and guidance for 2018

Valmet Oyj's stock exchange release on March 21, 2018 at 10:00 a.m. EET

Valmet Oyj's consolidated interim and full year 2017 financials have been restated due to the adoption of IFRS 15 - Revenue from Contracts, as of January 1, 2018. The standard provides a new basis for revenue and cost of sales recognition. Valmet's restated financials for 2017 provide comparatives for quarterly result releases for year 2018. The restated financial information has not been audited.

The cumulative effect of applying IFRS 15 has reduced net sales by EUR 100 million, Comparable EBITA by EUR 8 million and net profit by EUR 6 million in 2017. The cumulative impact of applying IFRS 15 recognized in opening balance of retained earnings as at January 1, 2017 amounted to EUR -9 million. Coupled with 2017 profit for the period, the net impact to retained earnings arising from the restatement is a reduction of EUR 15 million as at January 1, 2018.

Key figures1

EUR million Q1/2017 Q2/2017 Q3/2017 Q4/2017 2017
Orders received 1,005 796 743 727 3,272
Order backlog2 2,704 2,714 2,720 2,458 2,458
Net sales 645 732 715 967 3,058
Comparable earnings before interest, taxes and amortization (Comparable EBITA) 34 48 56 81 218
% of net sales 5.3% 6.5% 7.8% 8.4% 7.1%
Earnings before interest, taxes and amortization (EBITA) 37 47 49 69 202
% of net sales 5.7% 6.4% 6.9% 7.1% 6.6%
Operating profit (EBIT)  29 39 41 61 170
% of net sales 4.5% 5.3% 5.8% 6.3% 5.6%
Profit before taxes 26 36 38 57 158
Profit for the period 18 27 27 49 121
Earnings per share, EUR 0.12 0.18 0.18 0.33 0.81
Earnings per share, diluted, EUR 0.12 0.18 0.18 0.33 0.81
Equity per share, EUR 5.54 5.71 5.83 6.09 6.09
Cash flow provided by operating activities 94 31 78 89 291
Cash flow after investments 80 15 62 70 227
Return on equity (ROE) (annualized)         13%
Return on capital employed (ROCE) before taxes (annualized)         14%

1 The calculation of key figures is presented in the attached Restated Financial Information on page 27.                 
2 At the end of period.

EUR million As at March 31, 2017 As at
June 30,
2017
As at September 30, 2017 As at December 31, 2017
Order backlog, reported 2,613 2,551 2,523 2,292
IFRS 15 impact 91 163 197 165
Order backlog, restated 2,704 2,714 2,720 2,458

Net sales, EUR million Q1/2017 Q2/2017 Q3/2017 Q4/2017
Services 252 302 284 340
Automation 59 73 60 104
Pulp and Energy 189 192 200 219
Paper 144 165 170 304
Total restated 645 732 715 967
IFRS 15 impact 27 72 34 -32
Total reported 671 803 748 936

Net sales, EUR million Q1/2017 Q1-Q2/ 2017 Q1-Q3/ 2017 Q1-Q4/ 2017
Services 252 554 838 1,178
Automation 59 132 192 296
Pulp and Energy 189 381 581 800
Paper 144 310 480 784
Total restated 645 1,376 2,091 3,058
IFRS 15 impact 27 98 132 100
Total reported 671 1,475 2,223 3,159

The unaudited consolidated 2017 financials are attached to this stock exchange release.

Guidance for 2018

Valmet estimates that net sales in 2018 will remain at the same level as in 2017 (EUR 3,058 million) and Comparable EBITA in 2018 will increase in comparison with 2017 (EUR 218 million).

Further information, please contact:
Calle Loikkanen, Director, Investor Relations, Valmet, tel. +358 10 672 0020

VALMET

Kari Saarinen
CFO

Calle Loikkanen
Director, Investor Relations

Valmet is the leading global developer and supplier of process technologies, automation and services for the pulp, paper and energy industries. We aim to become the global champion in serving our customers.

Valmet's strong technology offering includes pulp mills, tissue, board and paper production lines, as well as power plants for bioenergy production. Our advanced services and automation solutions improve the reliability and performance of our customers' processes and enhance the effective utilization of raw materials and energy.

Valmet's net sales in 2017 were approximately EUR 3.1 billion. Our more than 12,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day. Valmet's head office is in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.

Read more www.valmet.com, www.twitter.com/valmetglobal

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