Ahlstrom Financial Statements Bulletin 2014: Operative result more than doubled in 2014


Ahlstrom Corporation STOCK EXCHANGE RELEASE January 29, 2015 at 12.00

This is a summary of the Financial Statements Bulletin 2014. The complete report
with tables is attached to this release and available at www.ahlstrom.com

Ahlstrom Financial Statements Bulletin 2014

Operative result more than doubled in 2014

Continuing operations October-December 2014 compared with October-December 2013

  * Net sales EUR 247.0 million (EUR 243.4 million).
  * Operating profit / loss excluding non-recurring items EUR -1.8 million (EUR
    -2.5 million).
  * Operating margin excluding non-recurring items -0.7% (-1.0%).
  * Operating profit / loss EUR -4.3 million (EUR -5.5 million), including non-
    recurring items of EUR -2.5 million (EUR -3.0 million).
  * Profit / loss before taxes EUR 5.7 million (EUR -11.1 million), including
    capital gains booked from the sale of Suominen Corporation and Munksjö Oyj
    shares.
  * Earnings per share EUR 0.09 (EUR -0.29).

October-December 2014 in brief

  * Net sales growth was driven by better pricing and product mix as well as a
    favorable currency effect. Comparable net sales at constant currencies
    remained flat.
  * Profitability was hurt by low capacity utilization in the Building and
    Energy business area. Advanced Filtration, Transportation, and Food business
    areas continued to improve profitability.
  * A new, simplified structure and organization effective as of January
    1, 2015 was announced to enable faster execution and stronger accountability
    within business areas.

Continuing operations January-December 2014 compared with January-December 2013

  * Net sales EUR 1,001.1 million (EUR 1,014.8 million), comparable net sales
    growth rate at constant currencies was 1.4%.
  * Operating profit excluding non-recurring items EUR 28.6 million (EUR 13.4
    million).
  * Operating margin excluding non-recurring items 2.9% (1.3%).
  * Operating profit / loss EUR -3.7 million (EUR 10.7 million), including non-
    recurring items of EUR -32.3 million (EUR -2.7 million).
  * Profit / loss before taxes EUR -9.4 million (EUR -15.4 million).
  * Earnings per share EUR -0.22 (EUR -0.46).

Outlook for 2015

  * Ahlstrom expects net sales in 2015 to be in the range of EUR 1,000-1,100
    million. The operating profit margin excluding non-recurring items is
    expected to be 3.5-5% of net sales.

Dividend proposal

  * The Board of Directors proposes to the Annual General Meeting that a
    dividend totaling EUR 0.30 per share be paid for the financial year ended on
    December 31, 2014.

Marco Levi, President & CEO

"We more than doubled our operative result last year, driven by cost savings
achieved through our rightsizing program, improved pricing, and better
performance in our Advanced Filtration, Transportation Filtration, and Food
business areas. Our performance in the fourth quarter - typically our weakest of
the year - remained unsatisfactory, but these four business areas continued to
make progress. We expect to continuously improve our financial performance going
forward.'

'Our rightsizing program is nearing completion and is reaching its planned
targets. However, we will continue to maintain stringent cost control going
forward.'

'Our roadmap to improved performance continues to gain momentum. I'm confident
that our commercial excellence program will deliver enhanced margins, while our
reprioritized product development will address customer needs better and more
quickly. In addition, we will actively pursue growth in selected areas. The
process of simplifying our organizational structure and processes is well
underway, which is expected to further reduce our cost base. These focused
initiatives will gradually bring improved efficiency and cost competitiveness in
2015 and beyond.'

Key figures from continuing operations

 EUR million          Q4/2014 Q4/2013 Change, % Q1-Q4/2014 Q1-Q4/2013 Change, %
-------------------------------------------------------------------------------
 Net sales              247.0   243.4       1.5    1,001.1    1,014.8      -1.3

 Operating profit        -4.3    -5.5      22.5       -3.7       10.7       N/A

    % of net sales       -1.7    -2.3                 -0.4        1.1

 Operating profit
 excl. NRI               -1.8    -2.5      30.5       28.6       13.4     113.9

    % of net sales       -0.7    -1.0                  2.9        1.3

 Profit / Loss before
 taxes                    5.7   -11.1       N/A       -9.4      -15.4      39.1

 Profit / Loss for
 the period               5.6   -12.2       N/A      -10.3      -18.9      45.6

 Earnings per share      0.09   -0.29       N/A      -0.22      -0.46       N/A

 Return on capital
 employed, %             -2.6    -3.5                 -0.5        0.9

 Net cash flow from
 operative activities
 *                       18.9     3.7       N/A       35.4       41.0     -13.5

 Capital expenditure     16.3    26.1     -37.5       45.4       76.1     -40.2

 Number of personnel,
 at the end of period   3,401   3,536      -3.8      3,401      3,536      -3.8
-------------------------------------------------------------------------------
*Including discontinued operations

Operating environment

The operating environment in Ahlstrom's main markets in the fourth quarter of
2014 varied depending on regions and markets.

In the markets served by the Advanced Filtration business area, growth continued
in gas turbine and other industrial filtration applications, particularly in
North America and Asia. The laboratory and life science markets also grew,
whereas demand for high efficiency air applications was somewhat weaker.

In the construction and energy markets, demand for building materials, such as
flooring applications, remained steady in Europe, but continued to decline in
Russia. The market for reinforced glass fiber products for the wind energy
industry in Europe remained weak. Demand for wallpaper and wallcovering
substrates softened in Europe and Russia, and weakened somewhat in China.

In the Food business area, demand for beverage and food packaging continued to
be solid, particularly in North America, whereas demand for tape products was
lower. Growth continued in the single-use coffee products market.

Demand for medical fabrics produced by the Medical business area was stable in
Europe and strengthened in North America as well as in Asia, where it was
supported by the growing trend for single-use products.

Solid growth continued in the transportation filtration markets in North
America, whereas demand in Asia and Europe slowed down slightly. In South
America, the market continued to show positive signs following a slowdown in
2013.

Discontinued operations

The operative result of the Brazilian operation of the former Home and Personal
business area was included in discontinued operations until February 10, 2014,
when its sale to Suominen Corporation was completed. The comparison figures
include the operative results from the Label and Processing business, as well as
the Brazilian operations of the former Home and Personal business area. All
operative figures exclude depreciation.

Result from discontinued operations

In January-December 2014, profit from discontinued operations for the period was
EUR 7.5 million (EUR 75.9 million). The figure includes Munksjö Oyj's
contribution to costs to separate the Osnabrück site, as required by the
European Commission. The comparison figure includes a demerger effect of
approximately EUR 113.3 million as well as a net of tax EUR 42.3 million
impairment loss recognized in the re-measurement to fair value and costs to
sell.

Result including discontinued operations

In January-December 2014, the loss for the period including discontinued
operations was EUR 2.7 million (EUR 57.0 million profit). Earnings per share
with the effect of interest net of tax on the hybrid bond were EUR -0.06 (EUR
1.17).

Return on equity (ROE) was -0.8% (13.8%).

Rightsizing program

Following the completion of the Label and Processing demerger in 2013, Ahlstrom
initiated a rightsizing program to bring down costs to reflect its new size and
scope. The plan was to achieve approximately EUR 39 million in annual costs
savings in continuing operations, targeting both selling, general and
administration (SGA) costs and production overheads. In addition, approximately
EUR 11 million in savings were derived from costs transferred to Munksjö Oyj,
bringing the total target to EUR 50 million.

During the review period, Ahlstrom completed the plan to transfer its
information technology operations to Tech Mahindra Ltd. As a result, about 50
employees globally moved to Tech Mahindra under a business transfer. The company
also decided to close a masking tape material production line in Kauttua,
Finland in the second quarter of 2015.

The majority of the actions related to the rightsizing program were completed by
the end of 2014, and the full impact of the program is expected to be visible by
the end of 2015. As a result of the program, Ahlstrom's personnel was reduced by
approximately 400 people globally. The program is moving ahead as targeted, and
approximately EUR 31 million in cumulative cost savings was achieved in
continuing operations at the year-end.

In continuing operations, savings of approximately EUR 5 million on a quarterly
basis were achieved in the fourth quarter of 2014 compared to the corresponding
quarter in 2013. Comparable SGA costs continued to decrease in the fourth
quarter of 2014, but were impacted by set-up costs related to the EMEA financial
and customer service center in Vilnius and research facility in Shanghai.

Ahlstrom booked non-recurring costs of approximately EUR 15 million related to
rightsizing during the years 2013-2014, of which approximately EUR 12 million
were booked in 2014.

Proposal for the distribution of profit

Ahlstrom aims to pay a dividend of not less than one-third of the net cash from
operating activities after operative investments, calculated as a three-year
rolling average to achieve stability in the dividend pay-out. Operative
investments include maintenance, cost reduction, and efficiency improvement
investments.

The distributable funds on the balance sheet of Ahlstrom Corporation as of
December 31, 2014 amounted to EUR 405,671,194.25.

The Board of Directors will propose to the Annual General Meeting that for the
financial year which ended on December 31, 2014, a dividend totaling EUR 0.30
per share be paid based on the dividend policy mentioned above.

The company's shares will trade together with the right to dividend until March
26, 2015. The dividend will be paid to each shareholder who is registered in the
Company's shareholder register maintained by Euroclear Finland Ltd on the record
date of March 30, 2015. On December 31, 2014, the number of shares of the
company amounted to 46,670,608 based on which the maximum amount that can be
distributed as dividend would be EUR 14,001,182. No dividend will be paid based
on shares owned by the company or its subsidiaries. The Board of Directors
proposes that the dividend be paid on April 8, 2015.

In the Financial Statements Bulletin 2013 published on January 30, 2014, the
Board of Directors indicated to pay dividends in a combination of cash and
Munksjö Oyj shares. The Board has decided to distribute the dividend in cash
only in 2015.

In addition, the Board of Directors proposes that EUR 60,000 will be reserved
for donations at the discretion of the Board.

Outlook

Ahlstrom expects net sales in 2015 to be in the range of EUR 1,000-1,100
million. The operating profit margin excluding non-recurring items is expected
to be 3.5-5% of net sales.

In 2015, investments excluding acquisitions are estimated to be approximately
EUR 35 million (EUR 45.4 million in 2014).

Short-term risks

The global economy may be growing at a slower pace than previously predicted due
to lower expectations in Europe and Asia. On the other hand, recent indicators
for the development of the U.S. economy continue to be positive.

Slower-than-anticipated economic growth poses risks to Ahlstrom's financial
performance. It may lead to lower sales volumes and force the company to
initiate more market-related shutdowns at plants, which could affect
profitability. The uncertainty related to global economic growth, increased
volatility in our main markets and key raw material prices makes it more
difficult to forecast future developments. Further swings in currency exchange
rates may lead to fluctuations in net sales and profitability. In recent years,
Ahlstrom has initiated investment projects, such as the wallcoverings production
line in Binzhou, China, that are in a start-up phase. The company's financial
performance may be negatively affected by the commercialization of new
production lines.

Ahlstrom's main raw materials are wood pulp, synthetic fibers, and chemicals.
The prices of these key raw materials are volatile and possible increases can
affect the company's profitability depending on its ability to mitigate the
risk.

The general risks facing Ahlstrom's business operations are described in greater
detail on the company website at www.ahlstrom.com and in the report by the Board
of Directors in the company's Annual Report for 2013. The risk management
process is also described in the Corporate Governance Statement, also available
on the company's website.

This report contains certain forward-looking statements that reflect the present
views of the company's management. The statements contain uncertainties and
risks and are thus subject to changes in the general economic situation and in
the company's business.

Disclosure procedure

Ahlstrom publishes its Financial Statements Bulletin 2014 enclosed to this stock
exchange release. The report is attached to this release in pdf format and is
also available on the company's web site at www.ahlstrom.com.

Additional information

Marco Levi, President & CEO, tel. +358 (0)10 888 4700
Sakari Ahdekivi, CFO, tel. +358 (0)10 888 4768

Ahlstrom's President & CEO Marco Levi and CFO Sakari Ahdekivi will present the
report at an analyst and press conference in Helsinki on Thursday, January 29 at
3:00 p.m. Finnish time. The event will take place at Ahlstrom's head office,
Alvar Aallon katu 3 C, second floor, meeting room Antti.

The combined web- and teleconference will be held in English and can be viewed
at the following address:
http://qsb.webcast.fi/a/ahlstrom/ahlstrom_2015_0129_q4/

To participate via telephone, please dial +358 (0)9 2313 9201 in Finland or +44
(0)20 7162 0077 outside Finland a few minutes before the conference begins. The
confirmation code is 950721.

An on-demand webcast including slides is available for viewing and listening on
the company website for one year after the conference call.

The presentation material will be available at
www.ahlstrom.com/en/Investors/Reports-and-presentations/2014/ after the report
has been published.


Financial information in 2015
+-------------------------------------+---------------------+----------------+
|Report                               |Date of publication  |Silent period   |
+-------------------------------------+---------------------+----------------+
|Interim report January-March 2015    |Tuesday, April 28    |April 1-28      |
+-------------------------------------+---------------------+----------------+
|Interim report January-June 2015     |Wednesday, August 6  |July 1- August 6|
+-------------------------------------+---------------------+----------------+
|Interim report January-September 2015|Wednesday, October 28|October 1-28    |
+-------------------------------------+---------------------+----------------+
During the silent period, Ahlstrom will not communicate with capital market
representatives.

Ahlstrom in brief

Ahlstrom is a high performance fiber-based materials company, partnering with
leading businesses around the world to help them stay ahead. We aim to grow with
a product offering for clean and healthy environment. Our materials are used in
everyday applications such as filters, medical fabrics, life science and
diagnostics, wallcoverings and food packaging. In 2014, Ahlstrom's net sales
from the continuing operations amounted to EUR 1 billion. Our 3,400 employees
serve customers in 23 countries. Ahlstrom's share is quoted on the NASDAQ OMX
Helsinki. More information available at www.ahlstrom.com.


[HUG#1890328]

Attachments

Financial Statements Bulletin 2014.pdf