Ahlstrom-Munksjö Oyj - Financial Statement Release

Ahlstrom final accounts show a record high quarterly operating profit and strong sales growth

Ahlstrom-Munksjö Oyj: Ahlstrom FINANCIAL STATEMENTS RELEASE April 26, 2017 at
08:30

This is a summary of Ahlstrom Corporation’s Final Accounts Release. The complete
report with tables is attached to this release and available at www.ahlstrom
-munksjo.com

Ahlstrom Final Accounts Release

January-March 2017 compared with January-March 2016

  · Net sales EUR 272.7 million (EUR 267.2 million), showing a gain of 2.1%.
Comparable[1] (http://connect.ne.cision.com#_ftn1) net sales increased by 7.6%
at constant currency rates.
  · Adjusted EBITDA EUR 42.6 million (EUR 27.9 million), representing 15.6%
(10.5%) of net sales
  · Operating profit EUR 32.4 million (EUR 10.6 million)
  · Adjusted operating profit EUR 30.7 million (EUR 15.0 million), representing
11.2% (5.6%) of net sales
  · Profit before taxes EUR 28.3 million (EUR 6.7 million)
  · Earnings per share EUR 0.38 (EUR 0.04)
  · Net cash flow from operating activities EUR 26.2 million (EUR 8.4 million)

Major events

  · Ahlstrom Corporation and Munksjö Oyj completed the merger to create a leader
in sustainable and innovative-fiber solutions. The name of the combined company
was changed to Ahlstrom-Munksjö Oyj.

Sakari Ahdekivi, Interim President & CEO of Ahlstrom

”Ahlstrom’s financial accounts show an excellent result as our quarterly
adjusted operating profit and margin reached an all-time high in the structure
we have had since the beginning of this decade. This was driven by very strong
sales growth across all of our business units as well as improved operational
efficiency and lower fixed costs.

We were able to achieve a remarkable turnaround in our performance in the last
three years and I would like to take this opportunity thank our employees and
all our stakeholders for this great achievement. We were able to achieve our
financial targets ahead of schedule. This gives us a solid foundation for the
future and very good momentum in the integration of Ahlstrom and Munksjö into
one company.”

Key figures

EUR   million            Q1/2017  Q1/2016  Change, %  2016
Net   sales              272.7    267.2    2.1        1 085.9
EBITDA                   44.7     23.5     90.0       121.1
     % of net sales      16.4     8.8                 11.2
Adjustment items         2.2      -4.4                -9.8
included in EBITDA
Adjusted   EBITDA        42.6     27.9     52.4       130.9
     % of net sales      15.6     10.5                12.1
Operating   profit       32.4     10.6     204.9      70.8
     % of net sales      11.9     4.0                 6.5
Adjustment items         1.8      -4.4                -9.8
included in operating
profit
Adjusted   operating     30.7     15.0     104.2      80.6
profit
     % of net sales      11.2     5.6                 7.4
Profit   before taxes    28.3     6.7                 56.3
Profit   for the period  19.6     3.5                 34.9
Earnings   per share     0.38     0.04                0.61
Return   on capital      25.7     8.0                 13.6
employed, %
Net   cash flow from     26.2     8.4      210.1      125.8
operative activities
Capital   expenditure    5.1      4.6      10.8       37.9
Interest-bearing   net   138.2    194.9    -29.1      140.8
liabilities
Gearing   ratio, %       44.5     66.5                44.6
Equity   ratio, %        39.3     34.9                38.2
Number   of personnel,   3,175    3,285    -3.3       3,233
at the end of the
period

 Ahlstrom has adopted the European Securities and Markets Authority (ESMA)
guidelines on Alternative Performance Measures, which became effective on July
3, 2016. The company uses alternative performance measures to reflect underlying
business performance and to improve comparability. These alternative performance
measures should, however, not be considered as a substitute for measures of
performance in accordance with IFRS.

Ahlstrom has used revised terminology since the beginning of 2016. In
accordance, the previously used term “Operating profit excluding non-recurring
items” has been replaced by “Adjusted operating profit” and the term “EBITDA
excluding non-recurring items” by “Adjusted EBITDA”.

Adjusted items affecting comparability and alternative performance measures used
by Ahlstrom are defined:
Adjustment items: restructuring costs, impairment charges, capital gains or
losses
EBITDA = Operating profit + depreciation and amortizations + impairments
Adjusted EBITDA = EBITDA – Adjustment items
Adjusted operating profit = Operating profit – Adjustment items

Ahlstrom and Munksjö complete the merger

On April 1, 2017, Ahlstrom Corporation was merged into Munksjö Oyj and the name
of the combined company was changed to Ahlstrom-Munksjö Oyj. The combination
creates a global leader in sustainable and innovative fiber-based solutions with
combined annual net sales of approximately EUR 2.1 billion, approximately 6,200
employees and 41 production and converting facilities in 14 countries. The
transaction is expected to create significant value for stakeholders through
stronger global growth opportunities and improved operational efficiency.
Ahlstrom-Munksjö’s growth ambitions are supported by a strong balance sheet and
strong cash flow generation.

Approvals from the Extraordinary General Meetings of Ahlstrom and Munksjö as
well as the European Commission were received on January 11, 2017 and March 13,
2017, respectively. In connection with the merger, Ahlstrom and Munksjö
distributed funds to the total amount of approximately EUR 46 million,
corresponding to EUR 0.49 per share in Ahlstrom and EUR 0.45 per share in
Munksjö, in lieu of the companies’ ordinary annual distribution.

Unaudited pro forma financials of Ahlstrom-Munksjö and certain other
information, such as composition of the management team can be found in the
merger prospectus, published on December 16, 2016.

Outlook

Ahlstrom was merged into Munksjö at the beginning of April 2017, and therefore,
it does not provide an outlook for the future.

Short-term risks

Ahlstrom was merged into Munksjö at the beginning of April 2017, and therefore,
it does not provide a description of short-term risks. The short-term risks
described in Ahlstrom’s Financial Statements Release 2016 can be obtained on the
website http://ahlstrom-munksjo.com/Investors/ahlstrom-reports-and
-presentations/.

The general risks faced by Ahlstrom’s business operations were described in
greater detail in the report by the Board of Directors in the company’s Annual
Report for 2016. The risk management process was also described in the Corporate
Governance Statement, also published as part of the Annual Report 2016.

Disclosure procedure

Ahlstrom’s Final Accounts Release is published enclosed to this stock exchange
release. The report is attached to this release in pdf format and is also
available on the web site www.ahlstrom-munksjo.com.

Additional information

Sakari Ahdekivi, tel. +358 (0)10 888 4768
Juho Erkheikki, tel. +358 (0)10 888 4731

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[1] (http://connect.ne.cision.com#_ftnref1) Excluding divested operations in
Osnabrück, Germany

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Ahlstrom-Munksjö in brief
Ahlstrom-Munksjö is a global leader in fiber-based materials, supplying
innovative and sustainable solutions to customers worldwide. Our offerings
include decor paper, filter media, release liners, abrasive backings, nonwovens,
electrotechnical paper, glass fiber materials, food packaging and labeling,
tape, medical fiber materials and solutions for diagnostics. Combined annual net
sales are about EUR 2.15 billion and we employ 6,200 people. The Ahlstrom
-Munksjö share is listed on the Nasdaq Helsinki and Stockholm. The company was
formed on April 1, 2017 through the merger of Ahlstrom Corporation and Munksjö
Oyj. Read more at www.ahlstrom-munksjo.com.

Priedai:

04263427.pdf