AHLSTROM-MUNKSJÖ STOCK EXCHANGE RELEASE, April 3, 2020 at 10:00 EET

Ahlstrom-Munksjö announced in April 2019 it will implement a new business and reporting structure as of January 1, 2020. The new business structure allow full integration and the realization of the full potential of the acquisitions of Expera Specialty Solutions and Caieiras. With the new structure, Ahlstrom-Munksjö promotes its core business capabilities, sharpens its strategic targets and aligns business characteristics of each business area.

The new business area structure as of January 1, 2020

• Filtration & Performance Solutions consists of Filtration, Nonwovens,

• Advanced Solutions consists of Liquid Technologies, Beverage & Casing, Medical,  Tape and Precision Coating businesses
• Industrial Solutions consists of Insulation, Release Liners and Coated Specialties businesses
• Food Packaging & Technical Solutions consists of Food Packaging, Technical and Parchment businesses
• Decor Solutions consists of Decor business

The Group also changes how its income statement is presented to align it to internal reporting. As of 2020, expenses are classified according to functions, whereas expenses were previously classified according to nature. As part of this change, net sales are also slightly redefined with an insignificant impact of less than 0.5%. The changes have no impact on Group's operating result.

The restated figures according to the new reporting structure and presentation of the income statement are shown in the following tables.

Restated financials are unaudited.

INCOME Q4 Q3 Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2
STATEMENT
EUR million 2019 2019 2019 2019 2019 2019 2019
Net sales 701.3 711.3 745.1 757.7 2,915.3 2,214.1 1,502.8
Cost of goods -618.3 -616.6 -644.9 -664.4 -2,544.1 -1,925.9 -1,309.3
sold
Gross profit 83.0 94.7 100.2 93.4 371.2 288.2 193.5
Sales, R&D and -55.2 -54.9 -55.8 -67.1 -233.0 -177.8 -122.9
administrative
expenses
Other 3.5 9.3 4.0 4.0 20.7 17.2 8.0
operating
income
Other -15.5 -14.7 -13.4 -12.4 -55.9 -40.5 -25.8
operating
expense
Share of 0.2 - - - 0.2 - -
profit in
equity
accounted
investments
Operating 16.0 34.3 35.0 17.8 103.2 87.2 52.9
result
Net financial -13.4 -14.8 -11.7 -11.6 -51.6 -38.2 -23.3
items
Result before 2.6 19.5 23.3 6.2 51.6 49.1 29.5
taxes
Income taxes -0.6 -7.5 -8.6 -2.1 -18.8 -18.2 -10.6
Net result 1.9 12.0 14.8 4.1 32.8 30.9 18.9

Operative exchange gains and losses and operative foreign exchange derivatives are presented in cost of goods sold. Corresponding financial items are presented in net financial items.                                                             

Other operating income mainly includes gain on sale of fixed assets, gain on sale of emission rights, government grants, sale of scrap, R&D and other tax credits.                                                                                                                                    

Other operating expense mainly includes depreciations and amortizations arising from purchase price allocation (PPA), impairment, loss on sale of fixed assets and credit losses.

SEGMENT INFORMATION Q4 Q3 Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2
EUR million, or as 2019 2019 2019 2019 2019 2019 2019
indicated
Net sales, external
Filtration & 177.4 170.4 183.5 185.9 717.1 539.8 369.4
Performance
Solutions
Advanced Solutions 111.2 117.2 121.1 118.7 468.2 357.0 239.8
Industrial 174.5 188.0 197.2 198.5 758.2 583.7 395.7
Solutions
Food Packaging & 132.3 133.9 137.6 141.4 545.3 413.0 279.0
Technical Solutions
Decor Solutions 103.7 99.2 104.0 111.9 418.8 315.0 215.9
Other and 2.2 2.6 1.7 1.3 7.8 5.6 3.0
eliminations
Group 701.3 711.3 745.1 757.7 2,915.3 2,214.1 1,502.8

Net sales, internal
Filtration & 1.2 2.1 2.0 1.7 6.9 5.7 3.6
Performance
Solutions
Advanced Solutions 0.5 0.6 0.6 0.5 2.1 1.6 1.0
Industrial 1.2 0.9 2.2 3.1 7.4 6.3 5.4
Solutions
Food Packaging & 9.0 9.2 9.2 9.7 37.1 28.1 18.9
Technical Solutions
Decor Solutions 0.0 0.3 0.3 0.3 0.8 0.8 0.5
Other and -11.8 -13.0 -14.2 -15.3 -54.3 -42.5 -29.5
eliminations
Group - - - - - - -

Total net sales
Filtration & 178.6 172.4 185.5 187.5 724.0 545.4 373.0
Performance
Solutions
Advanced Solutions 111.7 117.8 121.7 119.1 470.2 358.6 240.8
Industrial 175.6 188.9 199.5 201.6 765.7 590.0 401.1
Solutions
Food Packaging & 141.3 143.1 146.8 151.2 582.4 441.1 298.0
Technical Solutions
Decor Solutions 103.7 99.4 104.2 112.2 419.6 315.8 216.4
Other and -9.7 -10.3 -12.6 -13.9 -46.5 -36.8 -26.5
eliminations
Group 701.3 711.3 745.1 757.7 2,915.3 2,214.1 1,502.8

EBITDA
Filtration & 26.7 30.3 33.7 31.0 121.7 94.9 64.7
Performance
Solutions
Advanced Solutions 10.0 13.8 14.2 12.2 50.2 40.2 26.4
Industrial 8.2 15.6 17.4 11.7 52.9 44.7 29.1
Solutions
Food Packaging & 15.7 15.4 8.2 12.0 51.3 35.6 20.2
Technical Solutions
Decor Solutions 9.9 6.8 7.1 1.1 25.0 15.1 8.2
Other and -7.2 -4.1 -2.6 -7.8 -21.6 -14.5 -10.3
eliminations
Group 63.3 77.8 78.1 60.2 279.4 216.1 138.3

Items affecting
comparability in
EBITDA
Filtration & -1.7 -2.2 -0.5 - -4.4 -2.7 -0.5
Performance
Solutions
Advanced Solutions -0.2 -0.0 - -0.2 -0.4 -0.2 -0.2
Industrial -3.0 -1.1 -1.0 -3.1 -8.2 -5.1 -4.1
Solutions
Food Packaging & -0.5 -0.6 -1.0 - -2.1 -1.6 -1.0
Technical Solutions
Decor Solutions -0.6 -0.1 -2.1 -6.8 -9.5 -9.0 -8.9
Other and -1.1 -1.8 -1.1 -4.7 -8.8 -7.6 -5.8
eliminations
Group -7.2 -5.8 -5.7 -14.8 -33.4 -26.3 -20.5

Comparable EBITDA
Filtration & 28.5 32.4 34.2 31.0 126.1 97.6 65.2
Performance
Solutions
Advanced Solutions 10.2 13.8 14.2 12.4 50.6 40.5 26.6
Industrial 11.2 16.7 18.4 14.8 61.1 49.9 33.2
Solutions
Food Packaging & 16.2 16.0 9.2 12.0 53.4 37.2 21.2
Technical Solutions
Decor Solutions 10.4 6.9 9.2 8.0 34.5 24.0 17.1
Other and -6.0 -2.3 -1.5 -3.1 -12.9 -6.8 -4.6
eliminations
Group 70.5 83.6 83.8 75.0 312.9 242.4 158.8

Comparable EBITDA
margin, %
Filtration & 15.9 18.8 18.4 16.5 17.4 17.9 17.5
Performance
Solutions
Advanced Solutions 9.1 11.7 11.7 10.4 10.8 11.3 11.1
Industrial 6.4 8.8 9.2 7.3 8.0 8.5 8.3
Solutions
Food Packaging & 11.5 11.2 6.3 7.9 9.2 8.4 7.1
Technical Solutions
Decor Solutions 10.1 6.9 8.8 7.1 8.2 7.6 7.9
Group 10.1 11.7 11.2 9.9 10.7 10.9 10.6

Capital expenditure
Filtration & 6.9 10.3 10.9 7.4 35.5 28.6 18.3
Performance
Solutions
Advanced Solutions 1.7 2.4 3.3 3.1 10.5 8.9 6.5
Industrial 14.5 25.5 13.2 10.0 63.1 48.7 23.2
Solutions
Food Packaging & 5.4 3.0 4.9 7.0 20.3 14.9 11.9
Technical Solutions
Decor Solutions 2.5 1.9 2.0 3.0 9.4 6.9 5.0
Other and 5.4 7.5 4.3 4.9 22.2 16.8 9.3
eliminations
Group 36.3 50.6 38.7 35.5 161.1 124.8 74.2
 
NET SALES BY REGION Q4 Q3 Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2
EUR million 2019 2019 2019 2019 2019 2019 2019
Europe 310.0 305.8 323.7 335.5 1,275.0 965.0 659.2
North America 237.7 243.0 249.4 254.2 984.2 746.6 503.6
South America 55.7 57.0 57.3 63.5 233.5 177.8 120.8
Asia-Pacific 88.7 94.5 104.9 94.8 382.9 294.2 199.6
Rest of the world 9.2 11.0 9.8 9.8 39.7 30.6 19.6
Total 701.3 711.3 745.1 757.7 2,915.3 2,214.1 1,502.8
 
KEY FIGURES Q4 Q3 Q2 Q1 Q1-Q4 Q1-Q3 Q1-Q2
EUR million, or as 2019 2019 2019 2019 2019 2019 2019
indicated
Net sales 701.3 711.3 745.1 757.7 2,915.3 2,214.1 1,502.8
Operating margin, 2.3 4.8 4.7 2.4 3.5 3.9 3.5
%
EBITDA margin, % 9.0 10.9 10.5 7.9 9.6 9.8 9.2
Camparable EBITDA 10.1 11.7 11.2 9.9 10.7 10.9 10.6
margin, %
Comparable 3.6 5.6 5.5 4.3 4.8 5.1 4.9
operating result
margin, %

Further Information:

Johan Lindh, Vice President, Communications and Investor Relations, tel. +358 10 888 4994
Juho Erkheikki, Investor Relations Manager, tel. +358 10 888 4731