Outokumpu changes its reporting practices as of first quarter 2017: Adjusted EBITDA to become the main performance indicator


Outokumpu Oyj
Stock exchange release
January 26, 2017 at 4.00 pm EET


Outokumpu is changing its financial reporting practices as of the first quarter 2017 interim report onwards. Going forward, Outokumpu will consider EBITDA as its main performance indicator. Furthermore, Outokumpu replaces underlying figures with adjusted figures.

“After a thorough analysis, we have come to consider adjusted EBITDA to be the most relevant performance indicator. Given our focus on cash generation and net debt reduction, we see EBITDA to be the best metric to follow the development of our businesses going forward,” says Outokumpu CFO Chris de la Camp.

Adjusted EBITDA and adjusted EBIT will not exclude raw material related inventory gains/losses and metal derivative gains/losses unlike current underlying figures. Material income and expense items such as restructuring costs, impairments, and gains or losses on sale of assets or businesses will be excluded from the adjusted figures as they have also been excluded from the underlying figures.

The fourth-quarter and full-year 2016 results will be reported with the current method using the underlying EBIT as main performance indicator. The new practice will be implemented from first quarter 2017 onwards. Thus, the outlook given in connection with Annual Accounts 2016 will be based on the new practice. Consequently, Outokumpu will discontinue reporting underlying EBITDA and underlying EBIT figures from its first-quarter interim report onwards.

Attached the historical adjusted EBITDA and adjusted EBIT figures for the Group and business areas.

Adjusted EBITDA

               
                 
EUR million I/15 II/15 III/15 IV/15 2015 I/16 II/16 III/16
Europe 98 108 35 71 311 81 76 107
Americas -7 -43 -27 -42 -120 -37 -3 12
Long Products 5 8 3 -6 10 -4 -1 2
Other operations and intra-group items -12 -18 -4 -2 -36 -11 -6 -4
Group total adjusted EBITDA 83 55 6 21 165 29 66 116
                 

Adjusted EBIT

               
                 
EUR million I/15 II/15 III/15 IV/15 2015 I/16 II/16 III/16
Europe 46 57 -17 29 115 40 36 44
Americas -29 -65 -49 -56 -200 -50 -16 -1
Long Products 3 5 1 -8 2 -6 -3 -0
Other operations and intra-group items -12 -23 -9 -6 -49 -12 -8 -5
Group total adjusted EBIT 8 -26 -74 -40 -132 -29 9 38
                 
Other operations' figures for 2015 include the divested SKS operations.          

For more information:

Tommi Järvenpää, tel. +358 9 421 3466, mobile +358 40 576 0288

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 Helsinki, Finland and shares listed in Nasdaq Helsinki. 
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