Vaahto Group Plc Oyj - Interim Management statement

Vaahto Group Interim Management Statement 1 January - 16 May 2013

VAAHTO GROUP PLC OYJ                    STOCK EXCHANGE RELEASE              
16.5.2013            at 10.00 



VAAHTO GROUP INTERIM MANAGEMENT STATEMENT   1 JANUARY - 16 MAY 2013



Turnover from Vaahto Group's continuing operations for January 1, 2013, to
March 31, 2013, was 10,9 million euros (compared with 7,6 million euros for the
corresponding period in the previous fiscal year), with an operating profit of
0,01 million euros (operating loss of 1,5 million euros). Turnover increased
43,0 % from the reference period and operating result was positive. The Group's
order book for continuing operations on March 31, 2013, totaled 19,3 million
euros (January 1, 2013: 19,2 million euros). 



Vaahto Paper Technology

Turnover from Vaahto Paper Technology -division's continuing operations for
January 1, - March 31, 2013, was 2,8 million euros (3,0 million euros), with an
operating loss of 0,4 million euros (operating loss of 0,6 million euros).
Turnover decreased from the reference period's level, but the operating result
was better. The main reason for the negative result of the Vaahto Paper
Technology -division was the low level of activity. The market situation for
the service business has continued moderate. 

The Group made a preliminary contract in January 2013 for the sale of the
Vaahto Paper Technology group's Projects business and the spare part and small
projects businesses belonging to its Services business. Because the sale was
considered highly likely, assets and liabilities belonging to the project
business are included on the balance sheet as long-term assets on sale and
related debts. Project business is presented in the income statement as
discontinuing operations. The operating loss from discontinuing operations for
January 1 - March 31, 2013 was 1,0 million euros (loss of 0,2 million euros). 



Vaahto Process Technology

Vaahto Process Technology -division's turnover for January 1, 2013 - March 31,
2013, was 8,1 million euros (4,1 million euros), with an operating profit of
0,8 million euros (operating loss 0,3 million euros). Turnover increased by 98
% from the reference period's level, operating result being positive and 9,4 %
of the turnover. The reasons behind the success were constant order income and
the expected realization of the delivered projects. 

The market situation of Vaahto Process Technology -division has been remained
stable and the demand has continued to be moderate. 



Authorization of the Board of Directors to decide on a share issue

The Annual General Meeting on April 10, 2013 authorized the Board to decide on
an issue of new shares in one or several lots. The number of new shares issued
would be no more than 2,000,000. The maximum number for the proposed
authorization concerning the shares corresponds to approximately 50 percent of
the total number of shares in the company. 

The authorization entitles the Board to decide on all the terms of the share
issue, including the right to deviate from the shareholders' subscription
privilege. 



The sale of Vaahto Group's Project Business

The arrangement announced by Vaahto Group on 16 January 2013 and 27 March 2013
regarding the sale of Vaahto Paper Technology group's projects business and the
spare part and small projects businesses belonging to its services business to
Gebr. Bellmer GmbH Maschinenfabrik of Germany was completed on 15 April 2013.
In connection with the transfer of the Business, personnel relating to the
Business, 56 employees in Hollola and 16 employees in Tampere transferred to
Bellmer. 



Outlook for the fiscal year of 2013

No significant change, however, has occurred in total demand for Vaahto Group's
products in the first months of the new financial year, and the order book
remains on the level of 19 million euros. Vaahto Group's result is expected to
increase substantially from that of the previous fiscal year and the operating
result for the continuing operations is forecasted to be positive. The Group's
financing situation remains tight, and we need to continue our efforts to
improve the profitability and solvency of Vaahto Group. However, due to the
market development, which is difficult to forecast, the estimation for the
fiscal year includes uncertainty. 



Interim Report for January 1, - June 30, 2013

Vaahto Group will publish an Interim Report covering six months of operations
on August 23, 2013. 



Lahti 16, May 2013

VAAHTO GROUP PLC OYJ

The Board of Directors



Vaahto Group is a globally operating high technology company serving process
industry in the fields of pulp and paper machinery and process machinery. 


         Information:
         Ari Viinikkala
         CEO, Vaahto Group Plc Oyj
         tel. +358 400 127664