Outokumpu Oyj - Inside information

Outokumpu changes its reporting practices as of first quarter 2017: Adjusted EBITDA to become the main performance indicator

Outokumpu Oyj
Stock exchange release
January 26, 2017 at 4.00 pm EET


Outokumpu is changing its financial reporting practices as of the first quarter
2017 interim report onwards. Going forward, Outokumpu will consider EBITDA as
its main performance indicator. Furthermore, Outokumpu replaces underlying
figures with adjusted figures. 

“After a thorough analysis, we have come to consider adjusted EBITDA to be the
most relevant performance indicator. Given our focus on cash generation and net
debt reduction, we see EBITDA to be the best metric to follow the development
of our businesses going forward,” says Outokumpu CFO Chris de la Camp. 

Adjusted EBITDA and adjusted EBIT will not exclude raw material related
inventory gains/losses and metal derivative gains/losses unlike current
underlying figures. Material income and expense items such as restructuring
costs, impairments, and gains or losses on sale of assets or businesses will be
excluded from the adjusted figures as they have also been excluded from the
underlying figures. 

The fourth-quarter and full-year 2016 results will be reported with the current
method using the underlying EBIT as main performance indicator. The new
practice will be implemented from first quarter 2017 onwards. Thus, the outlook
given in connection with Annual Accounts 2016 will be based on the new
practice. Consequently, Outokumpu will discontinue reporting underlying EBITDA
and underlying EBIT figures from its first-quarter interim report onwards. 

Attached the historical adjusted EBITDA and adjusted EBIT figures for the Group
and business areas. 

Adjusted EBITDA                                                                 
                                                                                
EUR million                I/15  II/15  III/15  IV/15  2015  I/16  II/16  III/16
--------------------------------------------------------------------------------
Europe                       98    108      35     71   311    81     76     107
Americas                     -7    -43     -27    -42  -120   -37     -3      12
Long Products                 5      8       3     -6    10    -4     -1       2
Other operations and        -12    -18      -4     -2   -36   -11     -6      -4
 intra-group items                                                              
--------------------------------------------------------------------------------
Group total adjusted         83     55       6     21   165    29     66     116
 EBITDA                                                                         
                                                                                
Adjusted EBIT                                                                   
                                                                                
EUR million                I/15  II/15  III/15  IV/15  2015  I/16  II/16  III/16
--------------------------------------------------------------------------------
Europe                       46     57     -17     29   115    40     36      44
Americas                    -29    -65     -49    -56  -200   -50    -16      -1
Long Products                 3      5       1     -8     2    -6     -3      -0
Other operations and        -12    -23      -9     -6   -49   -12     -8      -5
 intra-group items                                                              
--------------------------------------------------------------------------------
Group total adjusted EBIT     8    -26     -74    -40  -132   -29      9      38
                                                                                
Other operations' figures for 2015 include the                                  
 divested SKS operations.                                                       

For more information:

Tommi Järvenpää, tel. +358 9 421 3466, mobile +358 40 576 0288

Outokumpu Group



Outokumpu is a global leader in stainless steel. We create advanced materials
that are efficient, long lasting and recyclable – thus building a world that
lasts forever. Stainless steel, invented a century ago, is an ideal material to
create lasting solutions in demanding applications from cutlery to bridges,
energy and medical equipment: it is 100% recyclable, corrosion-resistant,
maintenance-free, durable and hygienic. Outokumpu employs 11,000 professionals
in more than 30 countries, with headquarters in Helsinki, Finland and shares
listed in Nasdaq Helsinki. 
www.outokumpu.com      outokumpu.com/stainless-news     
choosestainless.outokumpu.com

Priedai:

EBITDA 26012017 ENG.pdf