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Ahlstrom Financial Statements Bulletin 2015: Clear improvement in profitability in the last quarter of 2015

Ahlstrom Corporation STOCK EXCHANGE RELEASE January 29, 2016 at 08.30

This is a summary of the Financial statements bulletin 2015. The complete
report with tables is attached to this release and available

Ahlstrom Financial Statements Bulletin 2015

Clear improvement in profitability in the last quarter of 2015

October-December 2015 compared with October-December 2014

* Net sales EUR 255.0 million (EUR 247.0 million), showing an increase of
3.2%.Comparable net sales at constant currencies declined by 2.4%.
* Operating profit EUR -16.4 million (EUR -4.3 million).
* Operating profit excluding non-recurring items EUR 7.6 million (EUR -1.8
million), representing 3.0% (-0.7%) of net sales, and the ninth consecutive
quarter of year-on-year improvement.
* Profit before taxes EUR -20.5 million (EUR 5.7 million).
* Earnings per share EUR -0.46 (EUR 0.09).
* Net cash flow from operative activities EUR 23.3 million (EUR 18.9

January-December 2015 compared with January-December 2014

* Net sales EUR 1,074.7 million (EUR 1,001.1 million), showing an increase of
7.4%. Comparable net sales at constant currencies declined by 0.7%.
* Operating profit EUR 21.9 million (EUR -3.7 million).
* Operating profit excluding non-recurring items EUR 47.5 million (EUR 28.6
million), representing 4.4% (2.9%) of net sales.
* Profit before taxes EUR 22.6 million (EUR -9.4 million), including a EUR
20.3 million capital gain booked from the sale of Munksjö Oyj shares.
* Earnings per share EUR 0.06 (EUR -0.22).
* Net cash flow from operative activities EUR 60.0 million (EUR 35.4

Major events after the reporting period

* Jan. 21, 2016: Agreement to divest the glassfiber business signed
* Jan. 29, 2016: Redefined strategy and new long-term financial targets

Marco Levi, President&CEO

"Improving profitability was the major theme of our performance in 2015, and
this was also reflected in the last quarter of the year, as we clearly
delivered according to our plans. We have achieved this through continued
optimization of the existing product portfolio, enhanced pricing, as well
cost savings. In addition, we have increased the capacity utilization of the
new assets including the Binzhou wallcoverings production line and the
Longkou plant. The slowdown in some of our key markets that started in the
middle of last year persisted until the end of the reporting period, and had
a clear negative impact on net sales.

The slowdown was most visible in the Filtration business area, and
particularly in engine filtration. The Food and Medical business area was
also impacted by this to some extent, but as a whole it consistently improved
during the year. The Building and Energy business area continued to make very
good progress in terms of sales growth and profitability improvement. I'm
also pleased with the accelerated pace of the ramp-up of our wallcoverings
production line in China.

We start the new year with a much stronger balance sheet thanks to improved
cash flow generation and the sale of non-core financial assets during last
year. In 2016, our main focus will be on the implementation of the redefined
strategy we announced today. We are building a stronger customer-driven
company that is lean and focused, and have already taken action with the
recently announced divestment of the glassfiber business."

Outlook for 2016

The company expects net sales from continuing operations in 2016 to be between
EUR 950-1050 million. The adjusted operating profit from continuing
operations is expected to be 4.2%-5.2% of net sales.

The outlook excludes the Building&Wind business unit, which will be reported
as part of discontinued operations starting from the beginning of 2016. The
adjusted operating profit excludes restructuring costs, impairment charges
and capital gains or losses.

Dividend proposal

The Board of Directors proposes to the Annual General Meeting that a dividend
totaling EUR 0.31 per share be paid for the financial year ended on December
31, 2015.

Key figures

| EUR million Q4/2015 Q4/2014 Change, % Q1-Q4/2015 Q1-Q4/2014 Change, % |
| Net sales 255.0 247.0 3.2 1 074.7 1 001.1 7.4 |
| EBITDA excl. NRI 21.6 11.5 87.8 104.8 78.6 33.2 |
| % of net sales 8.5 4.7 9.7 7.9 |
| Operating profit -16.4 -4.3 21.9 -3.7 |
| % of net sales -6.4 -1.7 2.0 -0.4 |
| Operating profit excl. NRI 7.6 -1.8 47.5 28.6 66.1 |
| % of net sales 3.0 -0.7 4.4 2.9 |
| Profit / Loss before taxes -20.5 5.7 22.6 -9.4 |
| Profit / Loss for the period -20.2 5.6 8.6 -10.3 |
| Earnings per share -0.46 0.09 0.06 -0.22 |
| Return on capital employed, % -11.4 -2.6 3.9 -0.5 |
| Net cash flow from operative activities * 23.3 18.9 23.1 60.0 35.4 69.2 |
| Capital expenditure 13.7 16.3 -16.1 27.3 45.4 -39.9 |
| Interest-bearing net liabilities * 195.9 253.8 -22.8 195.9 253.8 -22.8 |
| Gearing ratio, % * 65.4 79.3 65.4 79.3 |
| Equity ratio, % * 35.8 34.8 35.8 34.8 |
| Number of personnel, at the end of period 3,311 3,401 -2.6 3,311 3,401 -2.6 |
EBITDA = earnings before interest, taxes, depreciation and amortization

NRI = non-recurring item
* Including discontinued operations in 2014.

Major events after the reporting period

Divestment of the glassfiber business

On January 21, 2016, Ahlstrom signed an agreement to divest its Building&Wind
business unit to Owens Corning, a U.S.-based company listed on the New York
Stock Exchange. The initial debt and cash free purchase price, which is
subject to EBITDA adjustment, is EUR 73 million.

The Building&Wind business unit produces glassfiber tissue used mainly in
flooring applications as well as reinforcements used in windmill blades. In
2014 the net sales of the business was approximately EUR 77 million and the
business was profitable. The unit operates two plants in Finland in Karhula
and Mikkeli and one in Tver, Russia, employing in total approximately 260
persons. It serves markets mainly in Europe and Russia as well as in North
America and Asia.

The transaction is expected to be completed during the first half of 2016 and
is subject to customary completion terms, such as merger clearances from
relevant competition authorities.

Ahlstrom expects to book a capital gain of approximately EUR 25 million
following the completion of the asset deal. From the beginning of 2016 the
Building&Wind business will be reported as part of discontinued operations
until the transaction has been completed.

Redefined strategy and long-term financial targets announced

Ahlstrom completed a comprehensive strategy review and has now redefined its
strategy extending to the year 2018. Global trends faced by our customers
steer our product offering and provide us with a wealth of opportunities. We
are committed to growing and creating stakeholder value by providing the best
performing sustainable fiber-based materials.

As part of the implementation the company's business structure was simplified
and reorganized into two business areas: Filtration&Performance and
Specialties. The aim of this change is to increase market and customer focus.
Both segments have business unit specific strategies and operating models.
This enables us to provide customer-driven product development and tailored
customer service, cost efficiency, better allocation of resources, and
specific go-to-market approaches.

The roadmap for execution outlines the change in strategy and is focused on
commercial excellence, a new lean operating model, organic growth via higher
asset turnover and growth via new platforms.

As part of the redefined strategy, the Board of Directors has approved
Ahlstrom's new long-term financial targets over the economic cycle:

* Operating profit margin: Adjusted operating profit margin to be above 8% by
* Gearing: Gearing to be maintained below 100%
* Dividend policy: We aim for a stable dividend, increasing over time, based
on the annual net income performance

The adjusted operating profit margin excludes restructuring costs, impairment
charges, capital gains or losses, and discontinued operations.

Previous long-term financial targets were:

* Net sales: at least 5% underlying annual growth
* Net sales from new products: at least 20%
* Operating profit*: 7% of net sales by 2016 and 10% of net sales beyond 2016

* Gearing ratio: to be maintained within the 50-80% range

*Excluding non-recurring items.

Proposal for the distribution of profit

Ahlstrom aims to pay a stable and over time increasing dividend based on the
annual net income performance of the company.

The distributable funds on the balance sheet of Ahlstrom Corporation as of
December 31, 2015 amounted to EUR 415,834,745.25.

The Board of Directors will propose to the Annual General Meeting that for the
financial year which ended on December 31, 2015, a dividend totaling EUR 0.31
per share be paid based on the dividend policy mentioned above.

The company's shares will trade together with the right to dividend until
April 5, 2016. The dividend will be paid to each shareholder who is
registered in the Company's shareholder register maintained by Euroclear
Finland Ltd on the record date of April 7, 2016. On December 31, 2015, the
number of shares of the company amounted to 46,670,608 based on which the
maximum amount that can be distributed as dividend would be EUR
14,467,888.48. No dividend will be paid based on shares owned by the company
or its subsidiaries. The Board of Directors proposes that the dividend be
paid on April 14, ...

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