Ahlstrom - Interim report (Q1 and Q3)

Ahlstrom January-June 2015 interim report: Continued operating profit margin improvement driven by better pricing and product mix

Ahlstrom Corporation STOCK EXCHANGE RELEASE August 6, 2015 at 8.30

This is a summary of the January-June 2015 interim report. The complete report
with tables is attached to this release and available at www.ahlstrom.com

Ahlstrom January-June 2015 interim report

Continued operating profit margin improvement driven by better pricing and
product mix

April-June 2015 compared with April-June 2014

  * Net sales EUR 281.1 million (EUR 253.0 million), showing an increase of
    11.1%.Comparable net sales at constant currencies remained flat.
  * Operating profit EUR 15.7 million (EUR 9.6 million).
  * Operating profit excluding non-recurring items EUR 16.8 million (EUR 13.4
    million).
  * Operating profit margin excluding non-recurring items 6.0% (5.3%), the
    seventh consecutive quarter of year-on-year improvement.
  * Profit before taxes EUR 20.8 million (EUR -0.4 million), including a EUR
    11.1 million capital gain booked from the sale of Munksjö Oyj shares.
  * Earnings per share EUR 0.29 (EUR -0.07).
  * Revolving credit facility refinanced in June.
  * Outlook for 2015 revised.


January-June 2015 compared with January-June 2014

  * Net sales EUR 552.9 million (EUR 502.2 million), showing an increase of
    10.1%.
  * Operating profit EUR 28.4 million (EUR 14.0 million).
  * Operating profit excluding non-recurring items EUR 28.8 million (EUR 20.6
    million).
  * Operating profit margin excluding non-recurring items 5.2% (4.1%).
  * Profit before taxes EUR 34.6 million (EUR 4.8 million), including a EUR
    17.1 million capital gain booked from the sale of Munksjö Oyj shares.
  * Earnings per share EUR 0.46 (EUR -0.02).



Marco Levi, President & CEO"We had a record quarter and achieved the highest operating profit margin in the
current structure of the company. This was primarily driven by our efforts to
improve commercial operations through enhanced pricing and product mix
management. The quarter was also characterized by lower demand in some of our
main markets and continued increase in net sales driven by currencies.

The Filtration business area improved profits despite the slowdown in its
markets, and the Food business continued on its path of steady improvement. The
Building and Energy business area also reported a welcome increase in sales,
while profitability still suffered from low demand for wallcovering products as
well as adverse currency effects.

We are moving ahead with the key priorities of our roadmap - commercial
excellence, go-to-market process, simplification and building up the new
Ahlstrom - to improve performance. While we have made progress towards our long-
term financial targets, we still have a way to go to uncover the full
competitive potential of this company."

Outlook for 2015 revised:

Ahlstrom revises its outlook for net sales and operating profit margin excluding
non-recurring items in 2015.

New outlook:

Ahlstrom expects net sales in 2015 to be in the range of EUR 1,025-1,125
million. The operating profit margin excluding non-recurring items is expected
to be 3.85-4.5% of net sales.

Previous outlook:

Ahlstrom expects net sales in 2015 to be in the range of EUR 1,000-1,100
million. The operating profit margin excluding non-recurring items is expected
to be 3.5-5% of net sales.

Key figures

 EUR million          Q2/2015 Q2/2014 Change, % Q1-Q2/2015 Q1-Q2/2014 Change, %
-------------------------------------------------------------------------------
 Net sales              281.1   253.0      11.1      552.9      502.2      10.1

 EBITDA excl. NRI        31.5    25.6      23.1       57.7       44.5      29.7

   % of net sales        11.2    10.1                 10.4        8.9

 Operating profit        15.7     9.6      63.6       28.4       14.0     102.8

   % of net sales         5.6     3.8                  5.1        2.8

 Operating profit
 excl. NRI               16.8    13.4      25.1       28.8       20.6      39.5

   % of net sales         6.0     5.3                  5.2        4.1

 Profit / Loss before
 taxes                   20.8    -0.4       N/A       34.6        4.8       N/A

 Profit / Loss for
 the period              15.8    -2.2       N/A       24.6        0.9       N/A

 Earnings per share      0.29   -0.07       N/A       0.46      -0.02       N/A

 Return on capital
 employed, %             10.0     5.4                  9.3        4.4

 Net cash flow from
 operative activities
 *                       14.0    14.2      -1.6       12.5        8.2      53.0

 Capital expenditure      5.1    10.3     -51.0        8.1       19.3     -58.1

 Interest-bearing net
 liabilities *          233.8   283.3     -17.5      233.8      283.3     -17.5

 Gearing ratio, % *      69.3    85.8                 69.3       85.8

 Equity ratio, % *       35.9    33.8                 35.9       33.8

 Number of personnel,
 at the end of period   3,413   3,518      -3.0      3,413      3,518 -3.0
---------------------------------------------------------------------------

EBITDA = earnings before interest, taxes, depreciation and amortization
NRI = non-recurring item
* Including discontinued operations.

Short-term risks

Uncertainty related to the global economic growth poses risks to Ahlstrom's
financial performance. Slower-than-anticipated growth may lead to lower sales
volumes and force the company to initiate more market-related shutdowns at
plants, which could affect profitability.

Further swings in foreign currency exchange rates may lead to fluctuations in
net sales and profitability. Combined with the uncertainty related to global
economic growth and increased volatility in our main markets, it is more
challenging to forecast future developments.

Ahlstrom's main raw materials are wood pulp, chemicals, and synthetic fibers.
The prices of these key raw materials are volatile, and possible increases can
affect the company's profitability depending on its ability to mitigate the
risk.

In recent years, Ahlstrom has undertaken investment projects, such as the
wallcoverings production line in Binzhou, China, that are in a start-up phase.
The company's financial results may be negatively affected by the performance of
the new production lines.

The general risks facing Ahlstrom's business operations are described in greater
detail on the company website at www.ahlstrom.com and in the report by the Board
of Directors in the company's Annual Report for 2014. The risk management
process is also described in the Corporate Governance Statement, also available
on the company's website.

This report contains certain forward-looking statements that reflect the present
views of the company's management. The statements contain uncertainties and
risks and are thus subject to changes in the general economic situation and in
the company's business.

Disclosure procedure

Ahlstrom publishes its January-June 2015 interim report enclosed to this stock
exchange release. The report is attached to this release in pdf format and is
also available on the company's web site at www.ahlstrom.com.

Additional information

Marco Levi, President & CEO, tel. +358 (0)10 888 4700
Sakari Ahdekivi, CFO, tel. +358 (0)10 888 4768

Ahlstrom's President & CEO Marco Levi and CFO Sakari Ahdekivi will present the
report at an analyst and press conference in Helsinki on Thursday, August 6 at
11:00 a.m. Finnish time (CET +1). The event will take place at Ahlstrom's head
office, Alvar Aallon katu 3 C, second floor, meeting room Antti.

The combined web- and teleconference will be held in English and can be viewed
at the following address: http://qsb.webcast.fi/a/ahlstrom/ahlstrom_2015_0806_q2
To participate via telephone, please dial +358 (0)9 2313 9201 in Finland or +44
(0)20 7162 0077 outside Finland a few minutes before the conference begins. The
confirmation code is 953920.

An on-demand webcast including slides is available for viewing and listening on
the company website for one year after the conference call.

The presentation material will be available at
www.ahlstrom.com/en/Investors/Reports-and-presentations/2015/ after the report
has been published.


Financial information in 2015
+-------------------------------------+---------------------+-------------+
|Report                               |Date of publication  |Silent period|
+-------------------------------------+---------------------+-------------+
|Interim report January-September 2015|Wednesday, October 28|October 1-28 |
+-------------------------------------+---------------------+-------------+
During the silent period, Ahlstrom will not communicate with capital market
representatives.

Ahlstrom in brief

Ahlstrom is a high performance fiber-based materials company, partnering with
leading businesses around the world to help them stay ahead. We aim to grow with
a product offering for clean and healthy environment. Our materials are used in
everyday applications such as filters, medical fabrics, life science and
diagnostics, wallcoverings and food packaging. In 2014, Ahlstrom's net sales
amounted to EUR 1 billion. Our 3,400 employees serve customers in 22 countries.
Ahlstrom's share is quoted on the NASDAQ OMX Helsinki. More information
available at www.ahlstrom.com.


[HUG#1944025]

Attachments:

January-June 2015.pdf