2017-02-08 11:00:26 CET
2017-02-08 11:00:26 CET
REGULATED INFORMATION
Valmet Corporation - Financial Statement Release
Valmet's Financial Statements Review January 1 - December 31, 2016: Orders received increased to EUR 3.1 billion and Comparable EBITA to EUR 196 million in 2016
Valmet Oyj's financial statement release on February 8, 2017 at 12:00 noon EET
Figures in brackets, unless otherwise stated, refer to the comparison period,
i.e. the same period of the previous year. Automation has been consolidated into
Valmet's financials since April 1, 2015, when the acquisition of Automation was
completed.
October-December 2016: Orders received increased in the Paper, Automation and
Services business lines
* Orders received increased to EUR 857 million (EUR 793 million).
* Orders received increased in the Paper, Automation and Services business
lines and decreased in the Pulp and Energy business line.
* Orders received increased in Asia-Pacific, China and North America,
remained at the previous year's level in South America and decreased in
EMEA (Europe, Middle East and Africa).
* Net sales decreased to EUR 785 million (EUR 854 million).
* Net sales remained at the previous year's level in the Services and
Automation business lines and decreased in the Pulp and Energy and Paper
business lines.
* Comparable earnings before interest, taxes and amortization (Comparable
EBITA) were EUR 56 million (EUR 63 million) and the corresponding Comparable
EBITA margin was 7.2 percent (7.3%).
* Profitability decreased due to a loss of EUR 17 million incurred in a
pulp mill rebuild project.
* Earnings per share were EUR 0.10 (EUR 0.18).
* Items affecting comparability amounted to EUR -8 million (EUR -10 million).
* Cash flow provided by operating activities was EUR 88 million (EUR 64
million).
January-December 2016: Orders received increased and profitability improved
* Orders received increased to EUR 3,139 million (EUR 2,878 million).
* Orders received increased in the Pulp and Energy, Paper and Services
business lines.
* The Automation business line contributed to orders received with EUR
299 million.
* Orders received increased in Asia-Pacific, South America and EMEA and
decreased in China and North America.
* Net sales remained at the previous year's level at EUR 2,926 million (EUR
2,928 million).
* Net sales remained at the previous year's level in the Services and
Paper business lines and decreased in the Pulp and Energy business line.
* The Automation business line contributed to net sales with EUR 290
million.
* Comparable earnings before interest, taxes and amortization (Comparable
EBITA) were EUR 196 million (EUR 182 million) and the corresponding
Comparable EBITA margin was 6.7 percent (6.2%).
* Profitability improved due to improved gross profit and the acquisition
of Automation and decreased due to a loss of EUR 17 million incurred in
a pulp mill rebuild project.
* Earnings per share were EUR 0.55 (EUR 0.51).
* Items affecting comparability amounted to EUR -13 million (EUR -26 million).
* Cash flow provided by operating activities was EUR 246 million (EUR 78
million).
Dividend proposal
The Board of Directors proposes for the Annual General Meeting that a dividend
of EUR 0.42 per share be paid. The proposed dividend equals to 76 percent of the
net result.
Guidance for 2017
Valmet estimates that net sales in 2017 will remain at the same level as in
2016 (EUR 2,926 million) and Comparable EBITA in 2017 will increase in
comparison with 2016 (EUR 196 million).
Short-term outlook
General economic outlook
After a lackluster outturn in 2016, economic activity is projected to pick up
pace in 2017 and 2018, especially in emerging market and developing economies.
However, there is a wide dispersion of possible outcomes around the projections,
given uncertainty surrounding the policy stance of the incoming U.S.
administration and its global ramifications. (International Monetary Fund,
January 16, 2017)
Short-term market outlook
Valmet estimates that the short-term market outlook has increased to a good
level in board and paper (previously satisfactory level).
Valmet reiterates the good short-term market outlook in tissue and energy as
well as the satisfactory short-term market outlook for services, automation and
pulp.
President and CEO Pasi Laine: Increase in orders received and higher order
backlog enable further improvement
Orders received increased 9 percent in 2016 supported by all business lines.
Stable business, i.e. the Services and Automation business lines, accounted for
about EUR 1.5 billion or 47 percent of all orders. During 2016, we were able to
increase orders received in both stable and capital business. In capital
business, the development was strong especially in Energy and Tissue. Our order
backlog developed well during the year, which gives us a good starting point
when moving into 2017.
In 2016, we also made good progress in improving profitability: Comparable EBITA
margin increased to 6.7 percent from 6.2 percent in 2015. Although we reached
our target range of 6-9 percent, our objective is to improve profitability even
further. The long-term margin target from 2017 onwards is 8-10 percent, so there
is still a lot of work to be done to reach our new goal.
During the last couple of years, we have put a lot of focus on our stable
business. In 2016 we introduced the new Valmet Way to Serve -concept, and we
have been able to grow both the Services and Automation businesses. Our new
financial targets make sure that the development of stable business will be
given emphasis also going forward.
Key figures(1)
EUR million Q4/2016 Q4/2015 Change 2016 2015 Change
-------------------------------------------------------------------------------
Orders received 857 793 8% 3,139 2,878 9%
Order backlog(2) 2,283 2,074 10% 2,283 2,074 10%
Net sales 785 854 -8% 2,926 2,928 0%
Comparable earnings before interest,
taxes and amortization (Comparable 56 63 -10% 196 182 7%
EBITA)
% of net sales 7.2% 7.3% 6.7% 6.2%
Earnings before interest, taxes and 48 52 -8% 183 157 17%
amortization (EBITA)
% of net sales 6.1% 6.1% 6.2% 5.3%
Operating profit (EBIT) 40 41 -3% 147 120 23%
% of net sales 5.1% 4.9% 5.0% 4.1%
Profit before taxes 38 37 3% 136 108 26%
Profit / loss 14 28 -50% 82 78 6%
Earnings per share, EUR 0.10 0.18 -48% 0.55 0.51 7%
Earnings per share, diluted, EUR 0.10 0.18 -48% 0.55 0.51 7%
Equity per share, EUR 5.88 5.70 3% 5.88 5.70 3%
Cash flow provided by operating 88 64 38% 246 78 >100%
activities
Cash flow after investments 72 51 42% 188 -287
Return on equity (ROE) (annualized) 9% 9%
Return on capital employed (ROCE) 12% 12%
before taxes (annualized)
(1) The calculation of key figures is presented on page 39.
(2 )At the end of period.
Equity to assets As at December As at December As at September
ratio and gearing 31, 2016 31, 2015 30, 2016
-------------------------------------------------------------------------------
Equity to assets
ratio at end of 37% 36% 38%
period
Gearing at end of 6% 21% 15%
period
Orders received, EUR million Q4/2016 Q4/2015 Change 2016 2015 Change
-----------------------------------------------------------------------
Services 284 267 6% 1,182 1,119 6%
Automation 78 67 18% 299 222 -
Pulp and Energy 247 261 -5% 939 864 9%
Paper 246 199 24% 718 673 7%
-----------------------------------------------------------------------
Total 857 793 8% 3,139 2,878 9%
-----------------------------------------------------------------------
Order backlog, EUR As at December As at December Change As at September
million 31, 2016 31, 2015 30, 2016
-------------------------------------------------------------------------------
Total 2,283 2,074 10% 2,192
-------------------------------------------------------------------------------
Net sales, EUR million Q4/2016 Q4/2015 Change 2016 2015 Change
-----------------------------------------------------------------
Services 316 314 1% 1,163 1,128 3%
Automation 94 95 -1% 290 229 -
Pulp and Energy 187 245 -24% 826 913 -9%
Paper 188 200 -6% 647 659 -2%
-----------------------------------------------------------------
Total 785 854 -8% 2,926 2,928 0%
-----------------------------------------------------------------
News conference and webcast for analysts, investors and media
Valmet will arrange a news conference in English for analysts, investors and
media on Wednesday, February 8, 2017 at 3:00 p.m. Finnish time (EET). The news
conference will be held at Valmet Head Office in Keilaniemi, Keilasatama
5, 02150 Espoo, Finland. The news conference can also be followed through a live
webcast at www.valmet.com/webcasts.
It is also possible to take part in the news conference through a conference
call. Conference call participants are requested to dial in at least five
minutes prior to the start of the conference, at 2:55 p.m. (EET), at
+44 1452 560304. The participants will be asked to provide the following
conference ID: 52842476.
During the webcast and the conference call, all questions should be presented in
English. After the webcast and the conference call, media has a possibility to
interview the management in Finnish.
The event can also be followed on Twitter at www.twitter.com/valmetir.
Further information, please contact:
Calle Loikkanen, Director, Investor Relations, Valmet, tel. +358 10 672 0020
Kari Saarinen, CFO, Valmet, tel. +358 10 672 9603
VALMET
Kari Saarinen
CFO
Calle Loikkanen
Director, Investor Relations
Valmet is the leading global developer and supplier of process technologies,
automation and services for the pulp, paper and energy industries. We aim to
become the global champion in serving our customers.
Valmet's strong technology offering includes pulp mills, tissue, board and paper
production lines, as well as power plants for bioenergy production. Our advanced
services and automation solutions improve the reliability and performance of our
customers' processes and enhance the effective utilization of raw materials and
energy.
Valmet's net sales in 2016 were approximately EUR 2.9 billion. Our 12,000
professionals around the world work close to our customers and are committed to
moving our customers' performance forward - every day. Valmet's head office is
in Espoo, Finland and its shares are listed on the Nasdaq Helsinki.
Read more www.valmet.com, www.twitter.com/valmetglobal
Follow Valmet IR on Twitter www.twitter.com/valmetir
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