Valmet Oyj — Earnings Release 2017

Mar 21, 2018

Valmet has published restated figures for 2017 and guidance for 2018

Valmet has published restated figures for 2017 and guidance for 2018

Valmet Oyj's stock exchange release on March 21, 2018 at 10:00 a.m. EET

Valmet Oyj's consolidated interim and full year 2017 financials have been
restated due to the adoption of IFRS 15 - Revenue from Contracts, as of January
1, 2018. The standard provides a new basis for revenue and cost of sales
recognition. Valmet's restated financials for 2017 provide comparatives for
quarterly result releases for year 2018. The restated financial information has
not been audited.

The cumulative effect of applying IFRS 15 has reduced net sales by EUR 100
million, Comparable EBITA by EUR 8 million and net profit by EUR 6 million in
2017. The cumulative impact of applying IFRS 15 recognized in opening balance of
retained earnings as at January 1, 2017 amounted to EUR -9 million. Coupled with
2017 profit for the period, the net impact to retained earnings arising from the
restatement is a reduction of EUR 15 million as at January 1, 2018.

Key figures(1)

EUR million Q1/2017 Q2/2017 Q3/2017 Q4/2017 2017

Orders received 1,005 796 743 727 3,272

Order backlog(2) 2,704 2,714 2,720 2,458 2,458

Net sales 645 732 715 967 3,058

Comparable earnings before interest,
taxes and amortization (Comparable 34 48 56 81 218
EBITA)

% of net sales 5.3% 6.5% 7.8% 8.4% 7.1%

Earnings before interest, taxes and 37 47 49 69 202
amortization (EBITA)

% of net sales 5.7% 6.4% 6.9% 7.1% 6.6%

Operating profit (EBIT)  29 39 41 61 170

% of net sales 4.5% 5.3% 5.8% 6.3% 5.6%

Profit before taxes 26 36 38 57 158

Profit for the period 18 27 27 49 121

Earnings per share, EUR 0.12 0.18 0.18 0.33 0.81

Earnings per share, diluted, EUR 0.12 0.18 0.18 0.33 0.81

Equity per share, EUR 5.54 5.71 5.83 6.09 6.09

Cash flow provided by operating 94 31 78 89 291
activities

Cash flow after investments 80 15 62 70 227

Return on equity (ROE) (annualized)         13%

Return on capital employed (ROCE) before         14%
taxes (annualized)

(1) The calculation of key figures is presented in the attached Restated
Financial Information on page 27.
(2 )At the end of period.

                                 As at
              As at March 31, June 30,  As at September 30,  As at December

EUR million 2017 2017 2017 31, 2017

Order backlog, 2,613 2,551 2,523 2,292
reported

IFRS 15 impact 91 163 197 165

Order backlog, 2,704 2,714 2,720 2,458
restated

Net sales, EUR million Q1/2017 Q2/2017 Q3/2017 Q4/2017

Services 252 302 284 340

Automation 59 73 60 104

Pulp and Energy 189 192 200 219

Paper 144 165 170 304

Total restated 645 732 715 967

IFRS 15 impact 27 72 34 -32

Total reported 671 803 748 936

Net sales, EUR million Q1/2017 Q1-Q2/ 2017 Q1-Q3/ 2017 Q1-Q4/ 2017

Services 252 554 838 1,178

Automation 59 132 192 296

Pulp and Energy 189 381 581 800

Paper 144 310 480 784

Total restated 645 1,376 2,091 3,058

IFRS 15 impact 27 98 132 100

Total reported 671 1,475 2,223 3,159

The unaudited consolidated 2017 financials are attached to this stock exchange
release.

Guidance for 2018

Valmet estimates that net sales in 2018 will remain at the same level as in
2017 (EUR 3,058 million) and Comparable EBITA in 2018 will increase in
comparison with 2017 (EUR 218 million).

Further information, please contact:
Calle Loikkanen, Director, Investor Relations, Valmet, tel. +358 10 672 0020

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 2017 were approximately EUR 3.1 billion. Our more than
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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