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2016-02-09

Outotec Oyj: Outotec's Financial Statements Review January-December 2015

OUTOTEC OYJ FINANCIAL STATEMENTS REVIEW FEBRUARY 9, 2016 AT 9.00
AM

FINANCIAL STATEMENTS REVIEW JANUARY-DECEMBER 2015

Orders and service sales maintained, sales declined

January-December 2015 in brief (comparison period in 2014):

* Order intake: EUR 1,190 (1,178) million, 1% (in comparable currencies -2%)
* Order backlog: EUR 1,103 (1,138) million
* Sales: EUR 1,201 (1,403) million, -14% (in comparable currencies -15%)
* Service sales: EUR 511 (519) million, -1% (in comparable currencies -2%)
* EBIT: EUR -12 (10) million
* EBITA (excluding one-time items): EUR 56 (56) million
* EBITA (excluding one-time items), %: 5 (4)
* Net cash flow from operating activities: EUR 70 (20) million
* Earnings per share: EUR -0.10 (0.00)
* Dividend: Due to the negative net profit in 2015, the Board of Directors
proposes that the AGM not to pay out a dividend

October-December 2015 in brief (comparison period in 2014):

* Order intake: EUR 267 (322) million, -17% (in comparable currencies -20%)
* Sales: EUR 306 (403) million, -24% (in comparable currencies -23%)
* Service sales: EUR 138 (166) million, -17% (in comparable currencies -15%)
* EBIT: EUR -31 (2) million
* EBITA (excluding one-time items): EUR 18 (26) million, -31%
* EBITA (excluding one-time items), %: 6 (6)
* Net cash flow from operating activities: EUR 48 (38) million

Financial guidance for 2016

Based on the current market outlook, customer business activity and order
backlog, management expects that in 2016:

* Sales will be approximately EUR 1.0-1.2 billion, and
* Adjusted EBIT* will be approximately 2-5%

The market weakened last year and the weakening accelerated towards the end of
the year. The wide guidance range reflects the current volatility and limited
visibility of the market.

We expect the profits to be weighted towards the second half of the year and
expect a loss at the start of the year. Normal seasonality, expected timing
of project deliveries from the order backlog and the timing of savings impact
from the restructuring program drive the annual phasing of the profit.

* Excluding restructuring and acquisition-related costs as well as purchase
price allocation amortizations.

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| Summary of the Group's key figures Q4 Q4 Q1-Q4 Q1-Q4 |
| 2015 2014 2015 2014 |
| Order intake, EUR million 267.2 322.4 1,189.9 1,177.9 |
| Service order intake, EUR million 109.3 159.1 496.6 555.0 |
| Share of services in order intake, % 40.9 49.4 41.7 47.1 |
| Order backlog at the end of the period, EUR million 1,102.8 1,138.0 1,102.8 1,138.0 |
| Sales, EUR million 305.7 403.2 1,201.2 1,402.6 |
| Service sales, EUR million 138.0 166.1 511.3 519.0 |
| Share of services in sales, % 45.1 41.2 42.6 37.0 |
| Gross margin, % 26.4 22.9 27.9 22.9 |
| EBITA (excluding one-time items), EUR million 17.6 25.5 56.0 56.0 |
| EBITA (excluding one-time items), % 5.8 6.3 4.7 4.0 |
| EBIT, EUR million -30.6 2.3 -12.3 10.4 |
| EBIT, % -10.0 0.6 -1.0 0.7 |
| Profit before taxes, EUR million -32.1 -1.1 -22.9 0.2 |
| Net cash from operating activities, EUR million 47.7 37.9 69.5 19.9 |
| Net interest-bearing debt at the end of the period, EUR million 39.9 -5.8 39.9 -5.8 |
| Gearing at the end of the period, % 9.9 -1.3 9.9 -1.3 |
| Working capital at the end of the period, EUR million -89.4 -28.2 -89.4 -28.2 |
| Return on investment, %, LTM -1.5 1.7 -1.5 1.7 |
| Return on equity, %, LTM -4.0 0.0 -4.0 0.0 |
| Personnel at the end of the period 4,859 4,571 4,859 4,571 |
| Earnings per share, EUR -0.13 0.00 -0.10 0.00 |
| Dividend per share, EUR - - - 0.10 |
| 1 |
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1
Board of Directors' proposal for AGM

President and CEO Pertti Korhonen:

Year 2015 was extremely challenging in the mining and metals industry. The
growth of metals demand slowed down and metals prices weakened on average by
30% and hit the low levels of year 2009. Increased uncertainty of China's
growth outlook and accelerated weakening of metals prices led to further
deterioration of the market environment in the second half of 2015. Continued
uncertainty and shrinking profitability have caused producers to cut
production, postpone investments, and seek all possible measures to maximize
cash flow and reduce costs, which also had an impact on the service market
towards the end of the year.

I am pleased that we were able to achieve a flat order intake in the very
difficult market conditions. Although our mining and metals related orders
went down in line with the market, we were able to win orders in the
waste-to-energy sector due to competitive offering and a more active market.
Many governments are seeking ways to decarbonize energy production and
produce energy from waste rather than dump it to landfills. Our service order
intake declined as the producers continued to postpone their modernization
activities. On the other hand, orders for spare and wear parts increased as
we continue to increase the coverage of our installed base.

Our full year sales contracted due to customers' fewer investment projects and
slower progress in them. Full year service sales were equal to the previous
year's level despite the market having declined. Customer-induced slowdown in
project deliveries as well as lower demand for modernization services were
reasons for declining sales in the fourth quarter.

Our EBITA before one-time costs and purchase price allocations of M&A cases
was on the same level as in 2014. Our gross profit deteriorated due to lower
sales, but gross margin improved significantly due to the larger share of
services in sales and improved project margins. The 45 million euro cost
savings program reached its gross cost reduction targets, but its net effects
were diluted by lower than planned resource utilization, currency exchange
effects, and extraordinary IPR litigation costs.

The profit before taxes was negative due to significant one-time costs from
restructuring programs and risk provisions related to certain old litigation
cases. The cash flow from operations improved due to positive development in
working capital. Outotec made four acquisitions in order to strengthen the
service and technology offerings in promising growth segments.

The market outlook in the mining and metals industry is challenging and
difficult to predict due to the slower outlook for global economic and metals
demand growth, weak metal prices, supply overcapacity, and the highly
leveraged balance sheets of many producers. We expect the plant and equipment
demand to further contract in 2016 and the service demand to be weaker due to
postponements of maintenance and modernization activities. In response to the
soft market outlook, we are implementing the previously announced actions to
adjust our operating model and fixed costs to counter the lower sales. These
actions are progressing as planned and are key to improving our
profitability. Improving the free cash flow and ensuring a solid balance
sheet are key priorities for us in 2016.

This text is a summary of Outotec's January-December 2015 Financial Statements
review. The full report is available as an attachment to this report.

FURTHER INFORMATION

Outotec Oyj

Pertti Korhonen, President and CEO
tel. +358 20 529 211

Jari Ålgars, CFO
tel. +358 20 529 2007

Rita Uotila, Vice President - Investor Relations
tel. +358 20 529 2003, mobile +358 400 954 141

Format for e-mail addresses: firstname.lastname@outotec.com

BRIEFING/TELECONFERENCE

A results teleconference will be held on Tuesday, February 9, 2016 at 2.00 PM
(Finnish time).

To register for the teleconference and Q&A session, please dial in 5 to 10
minutes before the start of the event, using the number/confirmation code
below.

Confirmation Code: 6487974

FI: +358 9 2310 1618
SE: +46 8 5065 3931
UK: +44 20 3427 1930
US: +1 646 2543 374

Contact information will be gathered for registration purposes only and will
not be used for commercial purposes.

FINANCIAL REPORTING SCHEDULE IN 2016

* The Annual General Meeting 2016 planned to be held on April 11, 2016
* January-March Interim Report will be published on April 27, 2016
* January-June Interim Report will be published on July 27, 2016
* January-September Interim Report will be published on October 28, 2016

The Financial Statements for 2015 will be published on company's web site in
week 8/2016 at the latest.

DISTRIBUTION

Nasdaq Helsinki
Main media
www.outotec.com

Outotec provides leading technologies and services for the Sustainable use of
Earth's natural resources. As the global leader in minerals and metals
processing technology, we have developed many breakthrough technologies over
the decades for our customers in the metals and mining industry. We also
provide innovative solutions for the treatment of industrial water, the
utilization of alternative energy sources and the chemical industry. Outotec
shares are listed on Nasdaq Helsinki.

Outotec's Financial Statements Review 2015
http://hugin.info/137025/R/1984579/727641.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Outotec Oyj via Globenewswi...

Författare WKR

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