Stock Exchange release March 31, 2005 12:45:06 PM CET

Metso's comparative data for 2004 under IFRS

 
Metso Corporation will publish its first financial statements under International Financial Reporting Standards (IFRS) for the year ending December 31, 2005. The comparative data for 2005 will include the income statement, balance sheet, cash flow statement and breakdown of shareholders' equity for one year, for which reason the actual transition date for reporting under IFRS is January 1, 2004. The purpose of the comparison figures for 2004 published in the accompanying release is to report to shareholders and stakeholders on the effects of the transition on the company's balance sheet and income statement.
 
The primary changes caused to Metso by the adoption of IFRS as against the Finnish Accounting Standards (FAS) were an improvement in the result for 2004 and a reduction in equity. The main factors leading to the improved result were the reversal of pension liabilities as a result of changes in the Finnish employees' pension plan and the fact that goodwill is not amortized under IFRS. The most important factors weakening equity per share in reporting under IFRS are the increase in pension liabilities and the reduction in deferred tax assets. The differences are presented in more detail in the release.
 
 
The release presents the opening IFRS balance sheet for January 1, 2004, the reconciliation of the consolidated net income and shareholders' equity as of January 1, 2004 and December 31, 2004, and comparative IFRS data for the consolidated statements of income and the consolidated balance sheets for the financial year, January 1 - December 31, 2004.
 
The interim reports for 2005 will be prepared in accordance with the principles of recognition and measurement laid down in the IFRS. The 2004 comparative quarterly data will be published before the release of the first quarter interim review 2005.
 
 
Metso is a global technology corporation serving customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. In 2004, the net sales of Metso Corporation were approx. EUR 4 billion, and it has some 23,000 employees in more than 50 countries. Metso's shares are listed on the Helsinki and New York Stock Exchanges.