Metso Corporation: Metso publishes illustrative financial information for its continuing operations

Metso Corporation: Metso publishes illustrative financial information for its
                            continuing operations

Metso Corporation's stock exchange release on September 23, 2013 at 3:10 p.m.
local time

In parallel with the demerger prospectus published today for Valmet
Corporation, which will be incorporated in connection of the partial demerger
of Metso Corporation, Metso is also publishing illustrative financial
information for Metso's continuing operations for the 2012 financial year and
the first half of 2013.

Metso's Board of Directors unanimously approved a demerger plan on May 31,
2013 under which all the assets, debts, and liabilities relating to Metso's
Pulp, Paper and Power businesses will transfer, without liquidation, from
Metso to Valmet. Valmet will be incorporated as part of the demerger and an
application will be made to list its shares on NASDAQ OMX Helsinki Ltd.
Metso's Mining and Construction segment and Automation segment will form the
continuing operations of Metso.

On August 15, 2013, the Board unanimously decided to propose the approval of
the demerger and the demerger plan to the Extraordinary General Meeting of
Metso shareholders scheduled for October 1, 2013. The completion of the
partial demerger is expected to be registered in the Finnish Trade Register on
or about December 31, 2013. The prospectus relating to Valmet was published
today and is available on Metso's website (

Basis of preparation of unaudited illustrative financial information

The following unaudited illustrative financial information is presented to
illustrate the results of operations and financial position for Metso's
continuing operations had the partial demerger taken place on January 1, 2012.
The information is based on financial data derived from Metso's audited
consolidated financial statements as of and for the year ended December 31,
2012, restated for the impact of the adoption of the revised IAS 19 "Employee
Benefits" standard and from Metso's unaudited consolidated interim report as
of and for the six month period ended June 30, 2013.

This information is presented for illustrative purposes only. Because of its
nature, it addresses a hypothetical situation and does not represent the
actual results of operations or the financial position of Metso had the
demerger been completed on January 1, 2012; nor is it intended to project the
results of operations or the financial position of Metso as of any future

Management believes that the illustrative information presented in this
release provides a relevant basis to present the result of operations and
financial position of the continuing Metso Group. The adjustments made in
preparing the illustrative information are based on available information and
assumptions. There is no certainty that these assumptions will prove correct.

The following significant assumptions and adjustments to historical
information have been made in the preparation of the illustrative financial
information for Metso's continuing operations:

  *All the revenues and expenses, as well as assets and liabilities relating
    to the Valmet business, have been excluded from Metso's reported
    consolidated financial information.
  *Due account has been taken of the effects of certain intra-group
    arrangements that have been or will be undertaken by Metso prior to the
    demerger in order to achieve the planned legal group structures of both
    Metso and Valmet and the effects of certain refinancing measures,
    including a settlement of intra-group items between Metso and Valmet. The
    net settlement of intra-group balances has been treated as an adjustment
    to the cash and cash equivalents for illustrative balance sheet purposes
    (a reduction of EUR 102 million as of December 31, 2012 and an increase of
    EUR 40 million as of June 30, 2013), reflecting the cash amount to be paid
    by Metso to Valmet or vice versa to settle the balances.

  *The total amount of equity adjusted from the historical Metso's equity
    balance in the illustrative consolidated balance sheets represents the
    amount of net assets attributable to the Valmet business. The adjustments
    made to equity reflect Valmet Croup's contemplated equity structure.

Accounting treatment of the demerger

The demerger will be accounted for as a disposal in accordance with IFRIC 17,
Distributions of non-cash assets to owners. Once the demerger has taken place,
the difference between the fair value of the Valmet business and its book
value in Metso's consolidated balance sheet will be recorded as a gain on
distribution. The Valmet business to be spun off through the demerger will be
presented as discontinued operations in Metso's financial reporting after
shareholders have approved the demerger.

                                                As of and for    As of and for
                                         the six months ended   the year ended
                                                     June 30,     December 31,
EUR million                                              2013             2012
Net sales, total                                        2,007            4,499
Operating profit                                          192              463
Profit before taxes                                       158              404
Amortization of intangible assets                         -10              -20
Depreciation of tangible assets                           -30              -57
Non-recurring items
Capacity adjustment expenses                                0              -12
Cost related to demerger process                           -1                0
Other NRE                                                 -21                0
EBITA, before non-recurring items                         224              495
EBITA, % before NRE                                    11.2 %           11.0 %
EBITDA                                                    232              540
Earnings per share, EUR                                 0.71             1.82
Shares (outstanding shares, period
average)                                          149,787,111      149,715,383
Balance sheet total                                     3,830            4,000
Equity                                                  1,177            1,359
Interest-bearing liabilities                            1,105            1,094
Net debt                                                  565              385
Gearing                                                48.0 %           28.3 %
ROCE before taxes                                       16.9%            19.2%
ROCE after taxes                                        12.4%            13.8%
Orders received, external                               2,103            4,432
Order backlog                                           2,262            2,269
Personnel, at the end of period                        18,033           17,665

EBITA, before non-recurring  Operating profit + amortization +
items:                       non-recurring items
                             Operating profit + depreciation and
EBITDA                       amortization
Earnings per share, EUR     Profit
                             Number of outstanding shares of Metso,
Gearing, %                   Net interest bearing liabilities x 100
                             Total equity
Return on capital employed   Profit before taxes + interest and other
(ROCE) before taxes, %      financial expenses                          x 100
                             Balance sheet total - non-interest bearing
Return on capital employed   Profit + interest and other financial
(ROCE) after taxes, %       expenses                                    x 100
                             Balance sheet total - non-interest bearing

Metso is a global supplier of technology and services to customers in the
process industries, including mining, construction, pulp and paper, power, and
oil and gas. Our 30,000 professionals based in over 50 countries contribute to
sustainability and deliver profitability to customers worldwide. Metso's
shares are listed on the NASDAQ OMX Helsinki Ltd.,

Further information, please contact:

Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel +358 20484

Metso Corporation

Harri Nikunen


Juha Rouhiainen

VP, Investor Relations


NASDAQ OMX Helsinki Ltd


Metso illustrative financial information


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(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.

Source: Metso Corporation via Thomson Reuters ONE
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