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Outokumpu publishes historical financial information for new business areas and updates definitions of certain financial key figures

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OUTOKUMPU OYJ
STOCK EXCHANGE RELEASE
April 15, 2016 at 4.00 pm EET

Outokumpu has today published restated historical financial information for the new streamlined business area structure which was announced in connection with the launch of Outokumpu’s new vision and measures to improve competitiveness and financial performance of the company. Outokumpu’s first-quarter 2016 financial results will follow the new structure having three business areas: Europe, Americas and Long Products. Europe and Americas will cover Outokumpu’s entire flat products offering in these two markets, including all coil and plate business. The current European Quarto Plate operations and sales network in APAC will be reported as part of Europe, and the US Quarto Plate business under Americas. The Long Products operations and financial information remain unchanged.

Outokumpu continues to follow underlying EBIT as its main profitability measure because it best shows the underlying profit drivers and operational performance of the business. However, following the changes in the European Securities and Markets Authority’s (ESMA) Guidelines on Alternative Performance Measures related to the definition of non-recurring items, Outokumpu has updated its definitions of underlying EBITDA and underlying EBIT: material income and expense items earlier labelled as non-recurring items, such as restructuring costs, impairments, and gains or losses on sale of assets or businesses, as well as raw material related inventory gains/losses and metal derivative gains/losses, are now reported as adjustments. These items affecting comparability between periods are excluded from underlying EBITDA/EBIT. As the content of the underlying profitability measures remains unchanged, this has no effect on the historical group-level figures.

Outokumpu has also updated definitions for the following financial key figures: capital employed, operating capital, return on capital employed (ROCE) and return on equity (ROE). New definitions of capital employed and operating capital exclude defined benefit and other long-term employee benefit obligations but include net derivative liabilities (other than interest rate derivative). Returns will be calculated for four previous quarters on a rolling basis. Furthermore, Outokumpu will replace net debt to EBITDA with net debt to underlying EBITDA metric. The updated definitions are aligned with Outokumpu’s long-term financial targets.

The following tables include restated historical financial information for the new business areas for 2014 and 2015 and updated Group financial key figures and definitions for 2015. Figures are unaudited.

For more information:

Investors: Johanna Henttonen, tel. +358 9 421 3804, mobile +358 40 530 0778

Outokumpu Group

Outokumpu is a global leader in stainless steel. We create advanced materials that are efficient, long lasting and recyclable – thus building a world that lasts forever. Stainless steel, invented a century ago, is an ideal material to create lasting solutions in demanding applications from cutlery to bridges, energy and medical equipment: it is 100% recyclable, corrosion-resistant, maintenance-free, durable and hygienic. Outokumpu employs 11,000 professionals in more than 30 countries, with headquarters in Espoo, Finland and shares listed in Nasdaq Helsinki.
www.outokumpu.com      outokumpu.com/stainless-news      choosestainless.outokumpu.com

  

Business Area key figures by quarters                    
                     
Stainless steel deliveries                    
1,000 tonnes I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe total 456 437 402 367 1,661 410 413 375 381 1,578
of which intra-group 6 5 1 13 26 5 7 4 6 23
Americas total 143 151 144 133 572 133 117 139 144 533
of which intra-group 3 3 1 1 9 0 0 12 1 14
Long Products total 65 80 60 43 248 52 62 58 42 213
of which intra-group 20 34 22 8 84 16 22 30 12 80
Other operations total 40 50 53 48 192 48 56 45 27 176
of which intra-group - - - - - - 2 1 1 3
Group total deliveries 676 675 634 568 2,554 620 616 570 574 2,381
                     
Sales                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe total 1,198 1,203 1,190 1,095 4,685 1,163 1,140 1,019 995 4,316
of which intra-group 96 77 80 61 314 36 40 49 40 165
Americas total 284 323 347 337 1,290 337 284 301 292 1,214
of which intra-group 4 13 1 6 25 7 5 21 4 37
Long Products total 149 203 171 129 651 149 159 142 100 551
of which intra-group 41 77 51 19 188 36 46 56 23 162
Other operations total 201 269 294 273 1,037 274 273 231 201 979
of which intra-group 73 77 69 72 292 75 71 79 86 311
Group total sales 1,617 1,753 1,799 1,674 6,844 1,768 1,694 1,487 1,435 6,384
                     
EBIT                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe -138 -2 22 4 -114 46 57 -19 0 84
Americas -36 -16 -28 -19 -99 -48 -65 -49 -54 -216
Long Products 0 14 8 11 33 4 5 1 -8 2
Other operations and intra-group items -14 -6 -11 -32 -63 -12 -23 -9 403 359
Group total EBIT -188 -10 -9 -36 -243 -10 -26 -77 341 228
                     
Underlying EBIT                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe 3 8 7 15 33 27 41 -15 33 85
Americas -40 -24 -35 8 -91 -28 -50 -44 -41 -163
Long Products 2 11 6 12 32 3 4 3 -3 7
Other operations and intra-group items -11 1 -6 -45 -61 0 -20 -11 1 -30
Group total underlying EBIT -45 -6 -28 -9 -88 2 -25 -67 -11 -101
                     
Adjustments to EBIT                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe -142 -10 15 -11 -147 20 16 -4 -33 -1
Americas 3 9 7 -27 -8 -21 -15 -5 -12 -54
Long Products -1 3 2 -2 2 1 1 -3 -4 -5
Other operations and intra-group items -3 -7 -5 13 -2 -12 -3 2 402 389
Group total adjustments to EBIT -143 -5 19 -27 -155 -12 -1 -10 352 330
                     
EBITDA                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe -54 53 74 58 131 98 108 32 47 286
Americas -18 2 -11 1 -25 -26 -43 -27 -40 -136
Long Products 2 16 10 12 40 5 8 3 -6 10
Other operations and intra-group items -8 -1 -6 -26 -41 -12 -18 -5 407 372
Group total EBITDA -78 70 67 45 104 65 55 3 408 531
                     
Underlying EBITDA                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe 60 63 59 69 251 78 92 36 74 280
Americas -21 -6 -17 28 -17 -5 -27 -22 -28 -83
Long Products 4 13 8 14 38 5 7 5 -1 15
Other operations and intra-group items -5 6 -1 -39 -40 -1 -15 -6 5 -17
Group total underlying EBITDA 37 75 48 72 232 77 57 13 50 196
                     
Depreciation and amortization                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe -57 -55 -51 -54 -218 -51 -51 -51 -41 -196
Americas -18 -18 -18 -20 -74 -22 -22 -22 -14 -80
Long Products -2 -2 -1 -2 -6 -2 -2 -2 -2 -8
Other operations -5 -5 -5 -6 -22 -5 -5 -4 -4 -18
Group total depreciation and amortization -82 -80 -76 -81 -320 -80 -81 -80 -61 -302
                     
Capital expenditure                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe 11 23 20 29 83 20 16 19 41 96
Americas 2 2 3 8 15 1 4 2 12 19
Long Products 1 2 2 2 6 1 0 1 5 7
Other operations 1 6 0 16 22 4 14 6 7 32
Group total capital expenditure 15 33 25 54 127 26 35 29 65 154
                     
Operating capital                    
EUR million I/14 II/14 III/14 IV/14 2014 I/15 II/15 III/15 IV/15 2015
Europe 3,003 3,107 3,065 2,945 2,945 2,894 2,894 2,800 2,680 2,680
Americas 1,040 1,157 1,229 1,262 1,262 1,405 1,346 1,249 1,279 1,279
Long Products 155 185 185 162 162 176 167 166 151 151
Other operations and intra-group items 48 66 -9 -46 -46 12 48 34 22 22
Group total operating capital 4,246 4,515 4,471 4,324 4,324 4,486 4,455 4,248 4,133 4,133
                     
Other operations include divested SKS operations.                  
                     

 

Group financial key figures by quarters          
           
EUR million I/15 II/15 III/15 IV/15 2015
Capital employed at the end of period 4,503 4,479 4,271 4,133 4,133
Return on capital employed, % -1.5 -1.8 -3.4 5.3 5.3
Return on equity, % -10.7 -11.0 -12.9 3.9 3.9
Net debt to underlying EBITDA 7.5 8.3 9.2 8.2 8.2

   

Definitions of financial key figures    
       
Underlying EBIT = EBIT excluding items classified adjustments  
       
Capital employed = Total equity + net debt + net defined benefit and other long-term employee
    benefit obligations + net interest rate derivative liabilities + net accrued
    interest expenses – net assets held for sale – loans receivable  
    – available-for-sale financial assets – investments at fair value through
    profit or loss – investments in associated companies and joint ventures
       
Operating capital = Capital employed + net deferred tax liability  
       
Return on capital employed (ROCE) = EBIT (4-quarter rolling) × 100
    Capital employed (4-quarter rolling average)  
       
Return on equity (ROE) = Net result for the financial period (4-quarter rolling) × 100
    Total equity (4-quarter rolling average)  
       
Net debt to underlying EBITDA = Net debt  
    Underlying EBITDA (4-quarter rolling)  
       

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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