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.
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