Metso's Financial Statements Review for 2014

The audiocast is viewable at www.metso.com/IRwebcasts. A simultaneous conference call is arranged which allows participants to ask questions. Details of the event can be found at the end of this release.

This is a summary of Metso's 2014 Financial Statements Review. Complete report is attached to this release as a pdf-file and is also available at www.metso.com/investors.

Figures in brackets refer to the comparison period, i.e. the same period last year and all figures relate to Metso's continuing operations.

Fourth quarter 2014 in brief

• Flow Control and Services orders increased, mining equipment market remained challenging

• Orders received totaled EUR 801 million (EUR 885 million)

• Net sales: EUR 1,018 million (EUR 1,018 million)

• EBITA before non-recurring items: EUR 138 million or 13.5 percent of net sales (EUR 147 million, 14.4%).

• Non-recurring items totaled EUR -32 million (EUR -33 million)

Full year 2014 in brief

• Metso launched its new strategy targeting growth and higher profitability

• Good demand continued in Flow Control, whereas the demand for mining equipment remained weak

• Metso achieved good results overall, thanks to cost control and strong product and services businesses

• Orders received: EUR 3,409 million (EUR 3,709 million)

• Net sales: EUR 3,658 million (EUR 3,858 million)

• EBITA before non-recurring items: EUR 460 million or 12.6 percent of net sales (EUR 496 million, 12.8%), non-recurring items totaled EUR -90 million (EUR -54 million)

• The Board will propose a dividend of EUR 1.05 per share, i.e. 84% of earnings per share, which is higher payout compared to our dividend policy of 50 percent of annual earnings per share. In addition, the Board proposes that it would be authorized to decide on the payment of an extra dividend of up to EUR 0.40. The authorization could be used if the sale of Metso's Process Automation Systems (PAS) business is completed

Financial guidance for 2015, excluding Process Automation Systems business
We estimate our net sales in 2015 to be between EUR 3,000 million and 3,300 million and EBITA margin before non-recurring items to be around 13 percent.

Our guidance for 2015 is based on the current market activity in our customer industries, our current backlog for 2015, and the current exchange rates. In addition, the divestment of our Process Automation Systems business is expected to be completed on April 1, 2015.

President and CEO Matti Kähkönen: 
"Last year was very unique for Metso as it marked the beginning of a new era for us. After completing the demerger we launched a number of new initiatives that are designed to transform Metso into a more integrated, flexible, and more profitable company. These initiatives have already started yielding results, which were visible in our performance during 2014. Overall, we can be satisfied with our achievements in 2014, especially given the volatility in some of our customer industries. We managed to maintain our healthy profitability despite lower net sales, and our services business showed both growth, especially when using constant currencies, and better profitability. Looking into 2015, we will continue to implement our strategic actions in terms of growth and internal efficiencies and I am positive that we will take important steps forward to become an even better company than before."

Short-term outlook

Market development
We expect demand for mining equipment and projects to remain weak and demand for aggregates equipment to remain satisfactory. The demand for our mining and aggregates services is expected to remain good, thanks to high utilization rates. Demand for our products and services in the oil & gas industry is expected to remain good, but will face some uncertainty due to the volatile oil price.