Metsä Board Investor presentation January-September 2016

Transcription

1 Metsä Board Investor presentation January-September 2016

2 Contents Investment highlights 3 Strategic cornerstones and financial targets 12 Operating environment and market position 22 Q3/2016 results and outlook 33 Balance sheet and funding 42 Investments 50 Production, capacities and sourcing 57 Sustainability 65 Owners 69 Appendix 72 Contact information 78 2

3 Investment highlights

4 Metsä Board in brief Sales split 2015 Market leader in folding boxboard in Europe and global market leader in coated white top kraftliner Strong fibre know-how and self-sufficiency in pulp Sales in 2015 EUR 2.0 billion and comparable operating result EUR 180 million 2,600 employees in 23 countries Global sales to over 100 countries and eight production units in Finland and Sweden Sales by region 2015 Paperboard* Paper *) Includes market pulp EMEA Americas APAC 4

5 High-performance packaging materials Folding boxboards, white-top kraftliners and fully bleached linerboards Consumer goods Retail-ready Food service 5

6 Folding boxboard is the stiffest yet lightest paperboard grade Benefits of Metsä Board paperboards Lightweightness Even 30% lighter than competing grades (e.g. SBB, WLC) Excellent printability and runnability Purity and safety Bioenergy More than 60% of the energy Metsä Board uses comes from renewable resources Wood from known origin Fibres used in production are sourced from sustainably managed northern forests Metsä Board s folding boxboards are produced from BCTMP or mechanical pulp, which is used in the middle layer (3) to make the board bulky and light. The two outer fibre layers (2 and 4) are made of chemical pulp, which maximizes the strength of the board. 6

7 EUR million Comparable EBITDA development % ,8 % ,3 % ,8 % 14,1 % 14% 12% 10% 8% ,2 % 6% 4% 2% % 7

8 % % Strong profitability development Comparable ROCE-% Comparable EBIT-% 12 Target over 12% from ,3 10 9, ,4 4,8 6,4 9, ,4 3,6 5,2 6,

9 Strong continuing improvement in productivity No. of employees Production capacity (tonnes) / employee at current mills Production capacity/ employee Production capacity/employee Number of employees E

10 High threshold for new producers to enter high-quality paperboard segment Vaihda kuva laadukas kartonki High investment costs Limited availability of high yield pulp (e.g. BCTMP) Leading global consumer goods companies and corrugated box manufacturers not willing to change paperboard suppliers easily in the high-quality segments High speed packaging lines very quality sensitive Requirements for uniform brand look and feel globally Sustainability and product safety aspects Skilled people and organizations a crucial success factor 10

11 Metsä Board s paperboard business profitability (EBIT-%) and its peers 11

12 Strategic cornerstones and financial targets

13 Metsä Board s vision is to be the preferred supplier of premium paperboards creating value for customers globally Strategic cornerstones Focus Growth Profitability Values Responsible profitability Reliability Cooperation Renewal 13

14 Focus Focus on premium fresh fibre paperboards for consumer and retail packaging This means to us: We focus on serving customers whose quality expectations require our high quality, light and strong packaging materials Our paperboards are produced from fresh fibres Our products are used for packages at the store and from the store to the consumer 14

15 Profitability Profitability is based on superior cost efficiency and healthy sales prices driven by high-quality pulps and unique technical know-how This means to us: Our superior cost efficiency will be achieved by further developing productivity and efficiency of our mills, operations and people We will continue to drive down purchasing costs in all areas Our self-sufficiency in high-quality pulps together with unique paperboard making expertise helps us to improve our market position further and maintain healthy price levels 15

16 Growth Grow profitably together with brand owner, converter and merchant customers globally in businesses that benefit from our safe and sustainable paperboards This means to us: We grow in end-uses where our product is best suited to protecting our customers products and promoting their brands and businesses Our customer base is global, including brand owner, private label, converter and merchant customers By selecting businesses that benefit from our paperboards we can generate value for our customers and grow profitably with them 16

17 Financial targets Return on capital employed (ROCE) a minimum of 12% from 2017 onwards Net gearing maximum 70% Comparable ROCE, % 9,1 11,3 106 Net gearing, % 3,4 4,8 6,

18 Dividend Metsä Board s dividend payout target is at least 1/3 of EPS Average pay-out ratio during has been 40% 0,2 0,18 0,16 0,14 0,12 0,1 0,08 0,06 0,04 0,02 0 0,17 0,12 0,09 0,

19 Targeted average annual growth rate exceeds clearly the market growth rate 3-5% p.a. 1,000 tonnes Paperboard deliveries target Fresh fibre linerboard Folding boxboard 19

20 1,000 tonnes Most important growth area is Americas 300 Actual and targeted deliveries to Americas target Folding boxboard Fresh fibre linerboard 20

21 Main priorities and actions to achieve financial targets Grow the paperboard businesses profitably globally Ensure successful sales of new capacity Secure good price levels Keep best in class product quality and improve supply chain Develop new products for existing and new end uses Continue productivity improvements and cost savings 21

22 Operating environment and market position

23 Demand is based on global trends Globalisation Technology Sustainability Consumption Increasing role of retail and harmonisation of global brands Growing importance of logistics Consolidation of carton converters New innovations utilising wood fibre and other biomaterials Continuous development of production technologies Digitisation and automatisation change business dynamics Greater significance of resource efficiency drives circular economy and life-cycle thinking Increasing regulation brings additional obligations Social responsibility through value chain Growing consumption and consumers increasing quality needs globally Stronger demand for sustainable packaging Digital services change purchasing behavior

24 The global fresh fibre paperboard packaging market is about USD 110 billion The total packaging market is USD 800 billion Estimated average annual growth rate of fresh fibre paperboard is 3 4% USD bn Fresh fibre paperboard Other wood fibre based materials Non-fibre based materials E 24 Source: Metsä Board estimates

25 Global folding boxboard market is about 9 Mt/a Total cartonboard market is about 36 Mt/a* North America 6 Mt/a EMEA 8 Mt/a Folding boxboard Other fresh fibre grades Recycled grades Avg. growth rate for premium cartonboards is 3 4%/a Lat. Am. 2 Mt/a APAC 20 Mt/a *) Excluding liquid packaging board, cup & plate stock, liner and uncoated recycled board. 25 Source: Metsä Board estimates

26 Global food service board market is 3.5 Mt/a* EMEA 0.9 Mt/a Cups Plates Americas 1.6 Mt/a APAC 1.0 Mt/a Cartons Avg. growth rate for food service board is 3 5%/a 26 Source: Metsä Board estimates *) Base board only, excl. other laminate materials such as aluminium and PE.

27 Market price development in folding boxboard and white-top kraftliner in Europe EUR/ tn Taivekartonki Folding boxboard Valkopintainen White-top kraftliner kraftlaineri Sources: Pöyry Management Consulting ja FOEX Indexes Ltd 27

28 Pulp price development (PIX) EUR Softwood, USD Hardwood, USD Softwood, EUR Hardwood, EUR '10 '11 '12 '13 '14 '15 '16 USD Source: Foex Indexes Ltd 28

29 Metsä Board has a strong position in Europe Largest Folding Boxboard Producers in Europe Total capacity: 3.7M tons Largest White Fresh Fibre Linerboard Producers in Europe Total capacity: 2.2M tons Production capacities in tons Production capacities in tons Metsä Board 36% Metsä Board 32% Stora Enso 21% Smurfit Kappa 22% Kotkamills 11% Mondi 13% Mayr-Melnhof 9% BillerudKorsnäs 10% International Paper 7% SCA 7% Others 16% Others 15% Sources: Company information, Pöyry Management Consulting Oy

30 Metsä Board is the market leader in folding boxboard and white fresh fibre linerboard in Europe Target is to grow steadily above the market growth level The biggest growth drivers are strong and long-term customer relationships innovative high-performance product portfolio to replace other packaging materials best-in class customer service concept In Europe, Metsä Board s paperboard sales volume grew 12% in 2015 compared to 2014 Metsä Board uses only fresh fibres from sustainably managed northern forests 30

31 Metsä Board has a significant foothold in North America Americas is Metsä Board s main growth market The biggest growth drivers are Limited local supply in high-quality paperboards Due to strong consolidation, converters without own paperboard production are looking for alternatives In folding cartons their share is 40 50% Strong demand in food service board Growing environmental awareness In Americas, Metsä Board s paperboard sales volume grew 16% in 2015 compared to 2014 Paperboard offers a sustainable option for plastics such as styrofoam in food service applications. 31

32 Focus on the high-quality segment in APAC Metsä Board is the paperboard quality benchmark in Asia Responsible consumer goods companies promote good packaging Sustainability Traceable raw materials Product safety Due to the local overcapacity in Asia, the timing is not good for aggressive growth Global consumer goods companies not willing to change paperboard suppliers easily in the high-quality segments 32

33 Q3/2016 results and outlook

34 Performance in Q3/2016 Healthy market situation in fresh fibre paperboards Growing delivery and production volumes Fine paper production ended in July and wallpaper base production in September Solid performance in Finnish mills, Husum impacted profitability negatively Cash flow from operations was clearly positive 34

35 Key financials Q3/16 Q2/16 Change Q3/16 vs. Q2/16 1-9/16 1-9/15 Change 1-9/16 vs. 1-9/15 Sales million % 1,299 1,545-16% EBITDA, comparable million % % % of sales % 13,5 14,4 13,7 14,5 Operating result, comparable million % % % of sales % 7,7 8,5 8,1 9,4 Result before taxes, comparable million % Earnings per share ,21 0,27-22% ROCE, comparable % ,3 12,1 Gross investments million % % Cash flow from operations million % 35

36 1,000 tonnes Paperboard deliveries grew due to the healthy demand CAGR% in deliveries in has been 9% / year Folding boxboard Fresh fibre linerboard Change in paperboard deliveries: +4% Q3/16 vs.q2/ % Q3/16 vs.q3/ Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 36 Note! Figures do not include wallpaper deliveries

37 Sales increased, EBIT still impacted by Husum Sales, EUR million Comparable EBIT, EUR million Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/ Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Q1-Q3/2015: 1,545 M Q1-Q3/2016: 1,299 M Q1-Q3/2015: 145 M Q1-Q3/2016: 105 M 37

38 Profitability development Comparable ROCE, % Comparable operating profit of sales, % ,4 9,1 11,3 13,0 Target over 12% from ,3 8,5 8, ,2 6,8 9,0 11,0 8,0 8,5 7, Q3/15 Q1/16 Q2/16 Q3/ Q3/15 Q1/16 Q2/16 Q3/16 38

39 Decrease in working capital and smaller investments turned the cash flows clearly positive EUR million Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16 Cash flow from operations, quarterly Cash flow from operations, rolling 12 months Free cash flow, quarterly Free cash flow, rolling 12 months 39

40 Near-term outlook Positive market situation in fresh fibre paperboard Stable or increasing market prices Metsä Board s paperboard delivery volumes expected to remain stable Healthy price level in the order intake of Husum s new FBB, but long lead time postpones the profit impact Extended annual maintenance shutdown in Husum in Q4 increases costs Revised estimate for total investments in 2016 is 165 million 40

41 Profit guidance for Q4/2016 Metsä Board s comparable operating result in the fourth quarter of 2016 is expected to remain roughly on the same level as in the third quarter of

42 Balance sheet and funding

43 Strong balance sheet 50% 40% 30% 20% 10% 0% Equity ratio, % 47% 48% 33% /16 80% 70% 60% 50% 40% 30% 20% 10% 0% Net gearing, % 73% 70% 51% 49% 32% / Net debt, EUR million and Net debt/ebitda 3,4 2,9 1,8 1, /16 Net debt, EUR million 2, Net debt/ebitda (rolling 12m) 43

44 Debt structure and liquidity 30 September 2016 Debt structure, total EUR 693 million Available liquidity, total EUR 367 million Bonds Loans from financial institutions Pension loans Finance leases and other loans Other short-term loans Cash and cash equivalents Revolving credit facility Unraised pension loans 44 Average maturity of long-term loans at 30 September in 2016 was 2.4 years.

45 Debt programmes 30 September 2016 Metsä Board s significant debt securities issued and outstanding at 30 September 2016 Long-term borrowings Total amount, EUR million Outstanding, EUR million Average interest rate*, % Maturity EUR 225 million bond Issue Syndicated credit facility EUR 101 million bilateral loans EUR 20 million finance leases EUR 209 million pension loans * The average interest rate take into account outstanding interest rate swaps and amortised arrangement fees The average interest rate of all Metsä Board interest bearing net liabilities incl. interest rate derivatives per 30 September 2016 is 3.3 % Metsä Board s principal long-term liquidity reserves at 30 September 2016 Long-term borrowings Total amount, EUR million Outstanding, EUR million Average interest rate*, % Maturity Revolving credit facility Pension loan facilities Short-term funding programmes Metsä Group internal short-term limit months Metsä Group Treasury funding programmes EUR 150 million domestic CP programme months 45

46 Maturity schedule in long-term IB debt EUR million Long-term interest bearing debt (total EUR 488 million) and committed undrawn credit facilities 30 September >2021 Long-term interest bearing liabilities Committed undrawn credit facilities 46

47 Steadily decreasing net financial costs EUR million % 60 5,2 5,5 5,0 40 4,6 4,2 4,5 Net financials in Q3 were -7 M (Q2/16: EUR -9 M ) Net exchange gains and losses amounted to -1 M (-2M ) ,8 3, Q1-3/16 4,0 3,5 3,0 Net financial costs, EUR million Average interest rate at the end of period, % 47

48 FX exposure and sensitivities Total FX impact in Q vs. Q was slightly positive Hedging duration of the main foreign currency flows is currently 5-6 months FX exposure by currency Annual gross amount EUR 1.1 billion 6 % 4 % USD Annual FX sensitivities to Group EBIT before hedges 10 % strengthening of foreign currency vs. EUR will have an impact on Metsä Board s EBIT of 32 % 58 % SEK GBP Currency USD, $ GBP, Next 12 months EUR +60 million EUR +5 million Other currencies Swedish krona EUR -30 million 48

49 Metsä Board 's credit rating BB+ Ba1 BB Ba2 BB- Ba3 Standard & Poor s Moody s Positive Stable B+ B1 B B2 B- B3 CCC+ Caa1 CCC Caa Q1/

50 Investments

51 Estimated total capex in 2016 has been revised to 165 million million E Capex Growth capex Depreciation Estimated total capex in 2016 was revised from 135 to 165 million due to a cost overrun in Husum investment programme and changes in capex allocations between years of the extrusion coating line In Jan Sep 2016 total capex was 119 million Main growth capexes in 2016 include Husum investment programme, extrusion coating line and equity investment in Metsä Fibre s bioproduct mill 51

52 Husum investment programme Launched at the end of 2014 Two paper machines were shut down in 2015 One paper machine converted to produce linerboard (BM2) New folding boxboard machine (BM1), start-up on February 2016 Enhancements to the pulp mill and the mill site s own port Folding boxboard production Capacity approximately 400,000 t/a Deliveries mainly to Americas and Food service globally Linerboard production Capacity approximately 300,000 t/a Deliveries to Europe and Americas 52 Capacity changes 2014 vs. 2016: Paperboard capacity +700,000 tn/a Paper capacity -600,000 tn/a

53 Update on the ramp-up phase of folding boxboard machine in Husum after Q Delays in customer approvals in Q3 due to the Bottlenecks in the finishing area (Q2/2016) Leak in the pulp mill s recovery boiler (Jun-Jul/2016) Efficiency improvement programme is progressing as planned Investment programme targets Full capacity of FBB machine is reached by end of 2016 Annual EBIT improvement of 50 million from 2018 onwards Healthy price level in order intake, but long lead time will postpone positive profit impact 53

54 tonnes Steadily increasing production volumes 1400 Daily production volumes in Husum s new FBB machine, tonnes Q1/2016 Q2/2016 Q3/ July August September 54 Production (packed net) 7 days rolling average Monthly/Quarterly average

55 1,000 tonnes Ambitious growth targets for new paperboard volume from Husum mill A total of 400,000 tonnes of new FBB capacity Incremental capacity in linerboard *) Deliveries in 2015 Folding boxboard to Americas Food service board globally Linerboard to Europe and Americas Targeted deliveries in *) until July 2016 the paperboard machine (BM2) produced simoultenously fine paper reels.

56 Metsä Board s associated company Metsä Fibre builds a bioproduct mill Net capacity increase at the site is approximately 800,000 t/a Investment cost of approximately EUR 1.2 billion Start up in Q Capital invested by Metsä Board will be EUR 24,9 million Metsä Board has no other financial commitments in the project Metsä Board s holding in Metsä Fibre remains unchanged at 24.9 per cent All in all, Metsä Board s pulp balance is expected to be 500, ,000 t/a long from 2018 onwards Majority of the market pulp is softwood chemical pulp Reserve to grow paperboard business further in the future while maintaining self-sufficiency in pulp 56

57 Metsä Board expands its offering in food and food service paperboards by investing in extrusion coating Food service packaging requires barrier features e.g. moisture and fat resistance Investment value EUR 38 million Will be implemented at Husum mill Start-up in H1/2017 with capacity of 100,000 t/a In Metsä Board s paperboards are coated by external converter The company continues to develop other barrier solutions 57

58 Production, capacities and sourcing

59 Production locations Paperboard mills Husum (FBB and linerboard) Kemi (linerboard) Kyro (FBB) Tako (FBB) Simpele (FBB) Äänekoski (FBB) Pulp mills Husum (chemical pulp) Joutseno (BCTMP) Kaskinen (BCTMP) Husum Kemi Äänekoski Kaskinen Simpele Tako Joutseno Kyro 59

60 Paperboard capacity Town Country Machines Folding boxboard White fresh fibre linerboard Wallpaper Base* Total Tampere (Tako) Finland Kyröskoski (Kyro) Finland Äänekoski Finland Simpele Finland Kemi Finland Husum Sweden Total 9 1, , *) Production ended in September 2016

61 Pulp capacity Metsä Board pulp mills Country Chemical pulp BCTMP Total Husum Sweden Joutseno Finland Kaskinen Finland Total ,390 Metsä Fibre pulp mills Country Chemical pulp BCTMP Total Äänekoski Finland Kemi Finland Rauma Finland Joutseno Finland Total 2,460 2,460 61

62 Deliveries by region in 2015 Folding Boxboard Fresh fibre linerboard 11% 1% 14% 32% 61% 50% 26% 6% 62 Western Europe Eastern Europe Americas Asia and Pacific

63 Raw materials and supply chain management 2015 The amount of certified wood was 75% A new supply chain management target was launched: to audit 100% of risk rated key material suppliers against sustainability criteria by end % of all Metsä Board purchases, excluding wood, come from countries where we have own production Metsä Board purchases by country, % (excl. wood supply) Finland Sweden Other EU Germany Outside Europe Other 63

64 Sourcing 2015 Electricity sourcing (total 2,533 GWh) Primary energy used (total 12.3 TWh) Wood sourcing by country (total 5.0 million cubic metres) Purchased energy 49,50% Own generation 20,90% Through PVO shareholding 29,60% Hydro 5% Natural gas 8% Nuclear power 22% Coal 4% Oil 2% Other 1% Woodbased 58% Russia 15% Baltic countries 20% Finland 25% Sweden 39% 64

65 Cost structure in 2015 Other fixed 16% Delivery costs 16% Fixed costs Personnel 14% Other variables 4% Energy 10% Chemicals, pigments and fillers 14% Wood 26% Variable costs 65

66 Sustainability

67 Metsä Board s sustainability targets (2020 vs. 2009) WOOD THE AMOUNT OF CERTIFIED WOOD > 80% PERFORMANCE % WELL-BEING <3% SICKNESS ABSENTEEISM PERFORMANCE ,1% BIOENERGY SHARE OF TOTAL PURCHASED ENERGY 81% CLIMATE -30% FOSSIL CO2 EMISSIONS PER PRODUCT TONNE PERFORMANCE % SUPPLY CHAIN 100% RISK-RATED KEY MATERIAL SUPPLIERS AUDITED SAFETY 0 LOST-TIME ACCIDENTS ANNUALLY PERFORMANCE ,1 ENERGY ENERGY EFFICIENCY IMPROVEMENT10 PERFORMANCE % RESOURCE EFFICIENCY 12% *) PROCESS WATER USE PER -17% PRODUCT TONNE PERFORMANCE % *) Target has been brought up from 10% to 12% 67

68 Many advantages of lightweight and safe cartonboard Fresh forest fibre is a pure and safe raw material. Lightweight boards generate less waste. They are recyclable and compostable. Lightweight boards use less raw material, water and energy and lower transported weights. Ensured consumer safety. High quality packaging attracts at the point-of-sale. Consistent quality enables trouble-free runnability in converting and packing lines. 68 Strong packaging stays in shape in logistics.

69 Metsä Board is a world leader for corporate action on climate change Metsä Board was awarded a position on the Climate A List by CDP Only 9% of corporations participating to be awarded on the list In 2015 a position on the Water A List and a leadership status in Forest programme Investments in bioenergy, as well as energy and material efficiency Fossil CO 2 emissions have decreased by 42% since 2009 More than 80% of the fuels used are bio-based. 69

70 Owners

71 Market cap and ownership distribution Market cap and foreign owners 30 September 2016 Ownership distribution 30 September 2016 EUR million % / % 15 % Metsäliitto 25 % 42 % Cooperative *) Domestic institutional investors Domestic private investors Foreign owners Market cap, EUR million Share of foreign owners, % *) Metsäliitto Cooperative has 62% of the voting rights 71

72 Ownership structure on 30 September 2016 Shares, % (total no. of shares 355,512,746) Votes, % (total no. of votes 1,037,530,115) 3 % 3 % 7 % Metsäliitto Cooperative Foreign owners* Households 4 % 2 % 1 % Metsäliitto Cooperative 5 % Public sector organisations Households 12 % 42 % Public sector organisations 11 % Foreign owners* 18 % 15 % Finance and insurance companies Non-profit organisations Other companies 15 % 62 % Non-profit organisations Finance and insurance companies Other companies Source: Euroland * incl. nominee registered 72

73 Appendix

74 Metsä Board is part of Metsä Group & listed in Nasdaq Helsinki METSÄ GROUP Sales EUR 5.0 billion Personnel 9,600 METSÄLIITTO COOPERATIVE Group s parent company Owned by 116,000 Finnish forest owners METSÄ FOREST METSÄ WOOD METSÄ FIBRE METSÄ BOARD METSÄ TISSUE Wood supply and forest services Wood products Pulp Paperboard Tissue and cooking papers Sales: EUR 1.5 billion Sales: EUR 0.9 billion Sales: EUR 1.4 billion Sales: EUR 2.0 billion Sales: EUR 1.0 billion Personnel: 900 METSÄLIITTO COOPERATIVE S OWNERSHIP 100% Personnel: 2,000 METSÄLIITTO COOPERATIVE S OWNERSHIP 100% Personnel: 850 METSÄLIITTO COOPERATIVE S OWNERSHIP 50,2% METSÄ BOARD 24,9% ITOCHU CORP. 24,9% Personnel: 2,600 - METSÄLIITTO COOPERATIVE S OWNERSHIP 42,53% (HOLDING OF VOTES 62,15%) Personnel: 2,800 METSÄLIITTO COOPERATIVE S OWNERSHIP 91% 74

75 True success story 2005 Structural change starts Paper businesses over 80% of sales Decision to exit paper business 2006 Strategic review launched Restructuring and focused investment programme initiated, focus on paperboard Streamlining and focused investments Paper capacity reduction from about 5 million to 0.8 million annual tonnes Major divestments incl. Graphic Papers and Map Merchants Paperboard capacity increases 2013 Strategic review completed Clear focus on paperboard Paper production about a quarter of sales 2015 Strong position and growing Europe s leading producer of folding boxboard The world s leading manufacturer of coated white-top kraftliners 2016 Final exits from non-core businesses Fine paper production ended at Husum mill and wallpaper base production at Kyro mill Paperboard capacity 2 million t/a 75

76 Sales and EBIT-% development ,0 6,6 6,8 5,2 3,6 2, ,1 0,8 1,1-1,1-6, % 10,0 8,0 6,0 4,0 2,0 0,0-2,0-4,0-6,0-8,0-10,0 Sales, million EUR EBIT-% 76

77 Acquisitions M&A activity Biberist Paper Mill Simpele Mill UK Paper Modo Paper Zanders Kemiart Liners (53 %) Chemicals Business Divestments 77 Botnia Wood Corrugated Packaging MD Papier Albbruck Metsä Tissue Savon Sellu Forestia PSM 8% in Botnia 9% in Botnia Carton plants Map New Thames Graphic Papers B2 shares in PVO MB Uruguay Part of Reflex Hallein mill Rest of Reflex 0.5% in PVO Alizay mill Lielahti real estate 7.3 % in Metsä Fibre Gohrsmühle mill

78 Significant Divestments EUR 3.7 billion in assets divested since Year Divestiture Enterprise Value, EUR million 2015 Gohrsmühle mill in Germany neg Lielahti real-estate Alizay property and other estates % stake in Metsä Fibre % stake in PVO Hallein Metsä-Botnia s Uruguayan operations 300* 2008 Graphic Papers ,000 shares in PVO New Thames mill 82** 2007 Map Merchant Group Folding carton plants Botnia (9%) Botnia (8%) Savon Sellu Forestia (95%) Metsä Tissue Papierfabrik Albbruck MD Papier Noviant (19%) 41 * Cash portion **Incl. pension liabilities 3,679

79 Contact information Katri Sundström Vice President, Investor relations Tel

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