Plc Uutechnic Group Oyj - Interim report (Q1 and Q3)

Plc Uutechnic Group Oyj: BUSINESS REVIEW FROM JANUARY TO SEPTEMBER 2017

PLC UUTECHNIC GROUP OYJ STOCK EXCHANGE RELEASE October 27, 2017 at 8:30 am

UUTECHNIC GROUP'S BUSINESS REVIEW FROM JANUARY TO SEPTEMBER 2017

Uutechnic Group's key figures and main events in January-September 2017 and the
comparison figures 2016 are presented in this business review. The figures are
unaudited.

Key figures and Outlook

  * Uutechnic Group's turnover was 22.7 million euros, which is 4.0 % lower
    compared to 2016 (23.6 million euros).
  * The operating loss was -1.2 million euros. (operating profit 1.0 million
    euros).
  * At the end of the first quarter, the order book stood at 14.4 million euros,
    (18.7 million euros). In the half-year-report the order book was 14.9
    million euros.

+--------------------------------+-----------------+-----------------+---------+
|  T EUR                         |1-9/2017 1-9/2016|7-9/2017 7-9/2016|1-12/2016|
|                                |                 |                 |         |
|                                |                 |                           |
|                                |                 |                 |         |
|Turnover                        |  22 700   23 648|   6 045    6 706|   36 377|
|                                |                 |                 |         |
|Operating profit / loss         |  -1 177      980|    -432      -85|      881|
|                                |                 |                 |         |
|Operating profit / loss %       |  -5,2 %    4,1 %|  -7,1 %   -1,3 %|    2,4 %|
|                                |                 |                 |         |
|Order backlog at the end of     |                 |                 |         |
|period                          |  14 396   18 732|  14 396   18 732|   15 899|
+--------------------------------+-----------------+-----------------+---------+



The third quarter of the fiscal year for Uutechnic Group was clearly lower than
expectations for both turnover and operating profit. The company repeats its
guidance in connection with the announcement on October 20, 2017, according to
which Group's turnover is expected to be lower than in the previous year and
operating profit is expected to be negative.

Additional costs related to quality issues of construction material on one
Japrotek Oy Ab's project that was delivered in the first half of the year and
the probable transfer of the compensation to the next fiscal year is impacting
substantially on the Group's poor profit. Japrotek has started legal actions at
the lower court of justice in Sweden against the Swedish material supplier.

Business reporting

In the Mixing Technology business, new order intake has progressed well and the
order book is at a good level standing almost double compared to previous year.
The market still consists mainly of small investments and large orders are
postponed. Customer activity is still at high level.

Mixing Technology production plants are well loaded with current sales volume.
Investments will be made to development projects aiming to increase sales and
production capacity so that bottlenecks that are limiting growth can be cut
out.

The Mixing Technology business turnover and profit is expected to grow compared
to last year.

In the Vessel business, market situation is still challenging. Order intake has
been lower compared to last year and order book is at a low level. Actions to
improve efficiency, made after the co-operation negotiations that ended in the
second quarter, will realize phased during the end of the year and wholly during
next year.

Additional costs related to quality issues of construction material on one
project that was delivered in the first half of the year and the probable
transfer of the compensation to the next fiscal year is impacting substantially
on the poor profit. Japrotek has started legal actions at the lower court of
justice in Sweden against the Swedish material supplier.

In the Roll and Pipe business, order intake in the third quarter has been lower
than in the second quarter but the order book is still at a good level and is
expected to develop advantageous. Development actions made to production
planning have improved efficiency and the profit for 2016 is expected to be at a
good level.

The main events in the reporting period

January 2, 2017 Uutechnic Group announced that the Group's objective is to
increase Mixing Technology business and strengthen its importance as a success
factor for the Group. The company appointed Jussi Vaarno as a Vice President of
Mixing Technology business starting on January 16, 2017.

March 8, 2017 Uutechnic Group announced its new business model and appointments
in the top management. The business of Uutechnic Group consists of one business
segment, Process Solutions, which will be divided further into two business
lines: Mixing Technology and Tanks & Rolls. The target of this change is to
strengthen sales and marketing as well as knowhow and financial performance.
Mixing Technology business line consists of Stelzer Rührtechnik Int. GmbH and
Uutechnic Oy. Tanks & Rolls business line consists of Japrotek Oy Ab and AP-Tela
Oy. Uutechnic Group's business is still reported under one segment, Process
Solutions.

At the same time Uutechnic Group announced that Jouko Peräaho has been appointed
as the CEO of Plc Uutechnic Group Oyj. The current CEO of Uutechnic Group Martti
Heikkilä will start as the Vice President of Tanks & Rolls business line. Jussi
Vaarno will continue as the Vice President of Mixing Technology business line.

March 30, 2017 In the Annual General Meeting of Plc Uutechnic Group Oyj, it was
resolved as follows:

It was resolved to adopt the financial statements and the consolidated financial
statements for the period 1 January 2016 - 31 December 2016 and to discharge the
members of the Board of Directors and the Chief Executive Officer from liability
for the fiscal year 2016.

It was resolved that in accordance with the proposal of the Board of Directors
no dividend shall be paid.

 It was resolved to elect Sami Alatalo, Hannu Kottonen, Kristiina Lagerstedt and
Jouko Peräaho to continue as the members of the Board of Directors. Hannu
Kottonen and Kristiina Lagerstedt are independent from the Company and the
notable shareholders of the Company.

It was resolved, to authorize the Board to decide on an issue of new shares as
well as other special rights entitling to shares referred to in Chapter 10
Section 1 of the Finnish Companies Act in one or several lots. The number of new
shares issued would be no more than 10 000 000, including shares to be issued
based on the special rights. The authorization entitles the Board to decide
about all terms of the share and special rights offerings, including the right
to deviate from the right of pre-emption of shareholders. The authorization
shall last until the next Annual General Meeting, unless the General Meeting
decides to change or cancel the authorization prior to this date. This
authorization revokes all the other unused share issue authorizations that have
been given prior to this.

It was resolved that the right to the shares incorporated in the book-entry
system and the rights that the shares carry have been forfeited with regard to
the 3 480 shares being on the joint book-entry account in the name of the
company and opened on the behalf of the shareholders whose rights have not been
declared for registration during the registration period. The provisions on
treasury shares shall be applied to the forfeited shares. The total amount of
treasury shares of the company after the resolution is 3 480 shares.

May 29, 2017 Japrotek Oy Ab, a subsidiary of Uutechnic Group, started co-
determination negotiations according to co-operation act of Finland. The
negotiations were based on the restructuring of operations and on the financial
and productive reasons of the company. Negotiations ended 12(th) July and it was
decided that the number of personnel will be adjusted in accordance with the
company's financial situation and order backlog. Terminations of employment
contracts will concern 11 persons maximum and temporarily lay-offs may last more
than 90 days.

June 29, 2017 Member of Plc Uutechnic Group Oyj's management team, Deputy CEO
Ismo Haaparanta resigned from Uutechnic to continue his career outside of the
company.

July 21, 2017 Uutechnic Group revised its guidance for 2017 where was expected
that revenue will be lower than in 2016 and the operating profit to remain at
the last year's level.

October 20, 2017 Uutechnic Group expected its revenue to be lower than in 2016
and the operating profit to be negative. The revision of the outlook is
resulting from Japrotek Oy Ab's ongoing compensation process related to quality
issues of construction material on one project that was delivered in the first
half of the year. The company expects that the compensation shall most probably
be paid after the end of current fiscal period. Furthermore the order backlog of
Japrotek has remained on a low level. Japrotek has started legal actions at the
lower court of justice in Sweden against the Swedish material supplier.



In Uusikaupunki October 27, 2017


PLC UUTECHNIC GROUP OYJ

Board of Directors



Further information:

Jouko Peräaho, CEO Plc Uutechnic Group Oyj, +358 500 740 808

www.uutechnic.fi





Uutechnic Group is focused on improving the competitiveness of its customers by
providing them advanced equipment technology and unique service concept
worldwide. The product range includes agitators, different types of pressure
vessels, process- and storage tanks, reactors and heat exchangers. Additionally
different types of long welded and machined axially symmetrical parts as rolls,
cylinders, tubes and cones.

The main industries are hydrometallurgy, mining-, pulp and paper-, food-,
fertilizer-, other chemical industries and environmental technology.

Uutechnic Group's business consists of one segment, Process Solutions, which is
divided into two business lines: Mixing Technology and Tanks & Rolls. Mixing
Technology business line consists of Stelzer Rührtechnik Int. GmbH and Uutechnic
Oy. Tanks & Rolls business line consists of Japrotek Oy Ab and AP-Tela Oy.


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