Metso's restated financial information for 2017 (IFRS 15 and Flow Control's services business)

Monday, April 16, 2018 6:46 AM UTC

Metso's restated financial information for 2017 (IFRS 15 and Flow Control's services business)

Metso Corporation, stock exchange release, April 16, 2018 at 9:45 a.m. EEST

As of January 1, 2018, Metso has adopted the IFRS 15 Revenue from Contracts with Customers standard by using the full retrospective method. The Interim Review for January-March 2018 will be published according to the new standard, and the comparison period for 2017 will be restated accordingly.

Under IFRS 15, reported sales is reduced by the amount of late delivery penalties, which up until now have been expensed. Accordingly, cost of goods sold (COGS) is affected positively by the same amount. Gross profit and other income statement items as well as the balance sheet will be unchanged. The full-year impact in the consolidated statement of income for 2017 was a EUR 8 million decrease in sales and cost of goods sold (COGS).

In line with the organizational changes, Metso has also revised the reporting principles regarding the Flow Control segment's services business as of January 1, 2018. As a result, Flow Control's day-to-day sales through distributors in North America have been excluded from the services business definition.

The following tables reflect the impact of the IFRS 15 transition and the change in the Flow Control segment's services business reporting for quarterly figures and segment information in 2017.

IFRS 15 impact on sales and COGS in 2017

Metso Group	Restated	Adjustment	Reported
EUR million	1-12/2017		1-12/2017
Sales	2,699	-8	2,706
Cost of goods sold (COGS)	-1,968	8	-1,976
Gross profit	731	0	731

Sales of the services business in 2017

	Restated				Reported
EUR million	1-3/ 2017	1-6/ 2017	1-9/ 2017	1-12/ 2017	1-3/ 2017	1-6/ 2017	1-9/ 2017	1-12/ 2017
Minerals	325	673	1,017	1,368	325	673	1,017	1,368
% of sales	66	67	67	66	66	67	66	66
Flow Control	57	113	166	228	97	195	291	399
% of sales	36	36	36	36	61	63	62	63
Metso total	383	786	1,183	1,595	423	868	1,308	1,767
% of sales	59	59	60	59	65	66	66	65

Orders received by the services business in 2017

	Restated				Reported
EUR million	1-3/ 2017	1-6/ 2017	1-9/ 2017	1-12/ 2017	1-3/ 2017	1-6/ 2017	1-9/ 2017	1-12/ 2017
Minerals	386	756	1,136	1,474	386	756	1,136	1,474
% of sales	69	67	64	64	69	67	64	64
Flow Control	65	126	188	243	110	220	326	423
% of sales	38	36	36	36	64	63	63	63
Metso total	451	882	1,324	1,717	496	976	1,462	1,897
% of sales	62	60	58	58	68	66	64	64

The restated figures are unaudited, and they have been rounded to the nearest million. Consequently, the sum of individual figures might differ from the presented total figure. Full restated financial information for 2017 is attached.

Metso Corporation
Eeva Sipilä
Interim President and CEO & CFO

Juha Rouhiainen
VP, Investor Relations

Distribution:
Nasdaq Helsinki
Media
www.metso.com

Metso is a world-leading industrial company offering equipment and services for the sustainable processing and flow of natural resources in the mining, aggregates, recycling and process industries. With our unique knowledge and innovative solutions, we help our customers improve their operational efficiency, reduce risks and increase profitability. Metso is listed on the Nasdaq Helsinki in Finland and had sales of about EUR 2.7 billion in 2017. Metso employs over 12,000 people in more than 50 countries.

www.metso.com, www.twitter.com/metsogroup

For further information, please contact:
Juha Rouhiainen, VP, Investor Relations, Metso Corporation, tel. +358 20 484 3253

Attachment

Metso_IFRS15_FLOWSERVICES_Restatement_EN.pdf

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Metso's restated financial information for 2017 (IFRS 15 and Flow Control's services business)

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