g result million million (165). million (102). Events in Metsä Tissue in Poland. Metsä-Botnia Oyj. 80,000 tonnes. and Reflex Metsäliitto Group

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1 Interim Report 1 January June 11 August, 11 1 ( ) Metsäliitto Group s operatin g result excluding non- recurring was EUR 9 million Result in the first half of 11 amounted to EUR,86 million (1 6/1: EUR,61 million). excluding non-recurring was EUR E 9 million (5). including non-recurring was EUR 185 million (6). Result beforee taxes and excluding non-recurring was EURR 181 million (185). Including non-recurring, the result beforee taxes wass EUR 11 million (165). Result in the second quarterr of 11 amounted to EUR 1, million ( 6/1: EUR 1,16 million). excluding non-recurring was EUR E 119 million (15). including non-recurring was EUR 51 million (11). Result beforee taxes and excluding non-recurring was EURR 95 million (1). Including non-recurring, the result beforee taxes wass EUR million (1). Events in the second quarter of 11 Metsä Tissue announced an extensive investment programme in Poland. Metsä-Botnia redeemed 6.7 per cent of its own shares from UPM-Kymmene Oyj. M-real's Simpele folding boxboard mill s annual capacity was increased by 8, tonnes. M-real announced it will sell the Hallein pulp mill in Austria. M-real signed an agreement on the sale of its 5 per cent ownership share in Myllykoski Paper Oy. M-real announced plans to eliminate lossess at the Gohrsmühle and Reflex mills in Germany and the Alizay paper mill in France. We continued to reinforce the t business operations through planned investments and business arrangeme ents. Successful price increases and internal measures to increase efficiency decreased the negative n impacts off increasing costs on Group s result. Worsening of paper and pulp markets and general uncertainty in the economy weaken the outlook for the third quarter. Kari Jordan, President & CEO, Metsäliitto Group Metsäliitto is a forest industry group present in about countries and whose products and services combine responsible forest economy and innovative technology. Metsäliitto produces high-quality products from renewable Nordic wood in a sustainable way. The Group s five business areas include Wood Supply, Wood Products Industry, Pulp, Board and Paper, and Tissue and Cooking Papers. Metsäliitto Group s sales totalled EUR 5. billion in 1, and it employs approximately 1, people.

2 Interim Report 1 January June 11 August, 11 () Metsäliitto Group Income statement (Continuing operations) Other operating income Operating expenses Depreciation and impairment losses Share of results in associates Exchange gains and losses Other net financial Result before income tax Income taxes Result from continuing operations Q 1 1 Q Metsäliitto Group Profitability (Continuing operations), EUR mill. - -, excluding non-recurring - - % of sales Return on capital employed, % - -, excluding non-recurring Return on equity, % - -, excluding non-recurring Q Q Financial position Equity ratio, % Net gearing ratio, % Interest-bearing net liabilities, EUR mill Business Areas and January June 11 (EUR mill. ) Other operating income Operating expenses Depreciation & impairment losses Non-recurring, excl. non-rec. - % of sales Wood Supply Wood Products Industry Pulp P Industry Board and Paper Industry Tissue and Cooking Papers

3 Interim Report 1 January June 11 August, 11 () The interim report is unaudited METSÄLIITTO GROUP INTERIM REPORT 1 JANUARY JUNE 11 and result Metsäliitto Group s sales for January June were EUR,86 million (1 6/1: EUR,61 million). excludingg non-recurring s was EURR 9 million (5), or 8.9 per cent of the sales (9.5). Net non-recurring were EUR -6 million, of which income accounted for EUR 11 million and expenses accounted for EUR 75 million. The non-recurrn ring income was primarily generated by the sale of land areas. EUR 9 million of the non- EUR million is associated with the write-down ns and provisions of the Gohrsmühle and recurring expenses is associated with the sale of M-real's Hallein mill and Reflex paper mills. in the second quarter off the year were EUR 1, million ( 6/1: 1,16). Operating result excluding non-recurringg was EUR 1199 million (15), or 8.5 per cent of the sales (1.9). t including non-recurring was EUR 51 million (11). Operating result including non-recurring in January June was EUR 185 million (6). Financial income was EUR 5 million () and financial expenses e were EUR 8 million (71). During the first quarter, dividends of approximately EUR 9 million paid on Metsä-Botnia's shares under the t obligation to redeem were recognisedr d in financial expenses. The results from associates were EUR million (). The figure includes a non- with the sale of M-real's 5 per cent ownership share and subordinate ed loan in Myllykoskii Paper Oy. The result for the period before taxes was EUR 11 million (165) and taxes, including changes in deferredd tax liability, were EUR 6 million (6). The net result for the recurring impairment loss of approximately EUR million (16) associated period was EUR 5 million (1). Excluding non-recurring, the Group's return on capital employed was 1.8 per cent (1.) and return on equity was 1. per cent (16.). Including non-recurring, the return on capital employed was 9. per cent (11.) and return on equity was 6. per cent (1.7). Balance sheet and financing Metsäliitto Group s total liquidity was EUR 85 million at the end of June (1 December 1: 1,5). This consisted of EUR 1 million ( ) of liquid assets and

4 Interim Report 1 January June 11 August, 11 () investments and EUR 551 million (61) of binding credit facility agreements not included in the balance sheet. In addition, the Group can satisfy short-term financial needs with non-binding commercial paper schemes in Finland and abroad, as well as with credit limits amounting to approximately EUR.5 billion.. The Group s equity ratio at the end of June was.9 per cent and net gearing was 11 per cent (1 December 1: 9.7 per cent and 116 perr cent, respectively). Interest-bearing net liabilities stood at EUR,51 million (1 December 1: 1,99). The equity ratio of the parent company Metsäliitto Cooperative was 6.. per centt at the end of June and net gearing was 7 per cent (1 December 1: 58.6 per cent and 5 per cent, respectively). During January June, Metsäliitto s members capitals increased by a total of EUR. million. The actual members capital grew by EUR.9 million, the additional members capital A by EUR 9.6 million and the additional members capital B by EUR 1.5 million. EUR 1. million of the additional members' capital fell due on 1 July 11 (1 July 1: EUR 5.6 million). M-real s Annual General Meeting decided to reduce the share premiumm account in operating capital, as stated on the parent company s balancee sheet on 1 December 1, by transferring all funds in the account, or approximately EUR 66 million, to the company s non-restrictewill take place withoutt consideration and it does not impact thee company s number of shares, the rights conferred by the shares, or the proportionate ownership of the shareholders. The reduction will become effective after the completion of the creditor protection procedure referred r to in the Limited Liability Companies Act, equity reserve. The reduction of o the sharee premiumm account estimated to be completed in August 11. With the reduction, the prerequisites for f future distribution of profits will be improved. Personnel The Group employed an average of 1,9 peoplee during thee first half of the year (1 6/1: 1,98). At the end of June, the number of personnel in thee Group was 1,581 (1 December 1: 1,8). The parent company Metsäliitto Cooperative employed,965 people at the end of June (1 December 1:,95) ). Members At the end of the review period, the Metsäliitto Cooperative had h 15,586 members (1 December 1: 16,8) ). Since thee beginning of the year, 97 new members have joined the Cooperative and 1,7 members have resigned. Investments Metsäliitto Group s capital expenditure totalled EUR 1 million (). Metsä-Botnia's investments underway are progressing as scheduled. Kemi's new causticisation and water stations will be introducedd in the last quarter of the year.. The

5 Interim Report 1 January June 11 August, 11 5 () construction of a bark gasification plant that will improve the use of bioenergy has begun in Joutseno, and the new plant will be introduced by the end of 1. M-real's expansion investment at the Simpele folding boxboard mill was completed. The investment increased the mill's annual capacity by 8, tonnes. In addition, M-real announced its plans to invest approximately EUR million in expanding the annual folding boxboard capacity at the Äänekoski and Kyröskoski mills by a total of approximately 7, tonnes. The Kyröskoski investment will be carried out at the end of 11, and the Äänekoski investment in the spring of 1. Metsä Tissue launched an extensive investment programme inn Poland. The three-year programme includes, among other things,, the construction of two new tissue paper machines and an upgrading line at the Krapkowice mill, the rebuild of onee paper machine, and infrastructure development.. The total value of thee investment programme is nearly EUR 6 million, and it will enablee Metsä Tissue to increase its annual production capacity of tissue paper in Poland by 5, tonnes. New ownership shares in Metsä-Botnia Metsä-Botnia redeemed its own shares from UPM on the basis of a shareholder agreement signed by Metsä-Botnia's shareholders in 9. The T number of the shares to be redeemed equalled 6.7 perr cent of the company's entire share capital, and the redemption price was approximately EUR 1 million. The arrangement became effective on June 11. After the redemption, Metsäliitto Cooperative owns 56.8 per cent of Metsä-Botnia, M-real owns. per cent and UPM 11. per cent. The arrangement does not have a significant impact on Metsäliitto Group s key figures. In the same context, UPM also granted Metsäliitto Group an option to buy the remaining Metsä-Botnia shares it owns. The option will be valid for twoo years, and the agreed share price for executing the option is approxima tely EUR 15 million. Structural changes In June, M-real signed an agreement onn the sale of the entiree share capital of M-real Hallein GmbH to Scweighofer Group. The agreement coverss the Hallein pulp mill, the biopower plant, the paper mill closed in 9 and the surrounding estate. The completion of the arrangement is subject to the approval by Austria's A competition authorities and estimated to be completed in the third quarter of 11. In May, M-real announced it will divest the entire Gohrsmühle e mill in Germany or alternatively parts of the mill based on a Paper Park concept. Concurrently, M-real launched a process to discontinue the production of uncoated fine paper and unprofitable speciality papers at the Gohrsmühle mill in case the sales alternatives do not materialise. If the planned closings are implemented, M-real will focus on cast coated label and packaging products (Chromolux) at the Gohrsmühle mill. M-real is

6 Interim Report 1 January June 11 August, 11 6 () also planning to discontinue the remaining business operations, or refining carbonless paper converting operations,, at the Reflex mill. In May, M-real initiated a public process to find credible candidates to acquire the Alizay paper mill by the end off September 11. Should M-real fail to divest the Alizay paper mill within the given timeframe, the plan is to close down the mill. On the whole, according to preliminary estimates made in May, the measures being planned for Alizay, Gohrsmühle and Reflex will have a non-recurring negative result impact of approximately EUR 17 million. The estimated net cash expenses are EUR 5 million. The estimates on financial impacts are preliminaryy and will be specified as the final decisions on the planned measures have been made. In the second quarter EUR million was booked as non-recurring write-downs and provisions of the Gohrsmühle and Reflex paperr mills. Businesss areas Wood Supply Wood Supply sales for January June were EUR 77 million (1 6/1: 67) and operating result was EUR 15 million (15). The operating result does not include non- recurring. Wood Supply Finland accounted for EUR 51 million (6) of the sales and EUR 9 million (8) off the operating result. in the second quarter were EUR 9 million ( 6/1: 7) andd operating result was EUR 7 million (8). Wood sales, which were sluggish in the first months of the year, pickedd up in May. Metsäliitto's purchase volume from privately owned forests was w near the target level in the second quarter. Harvesting conditions were good, and stands marked for felling were harvested as planned. Woodd deliveries also worked as planned. Metsäliitto Wood Supply s delivery volume to production units in the first half of the year was 15.5 million cubic metres (1.7). Plenty of wood was available in i Russia. In the Baltic countries, the wood volume from state-owned forests was steady in the first half of the year, and in addition, wood sales from private forests started up. Wood sales in Sweden also picked up in the second quarter. The development of Metsäliitto's member servicess continued. June marked the release of a new service, an online storee for members eligible for woodd sales bonuses. The result of the Cooperative s Representative Council election was published in May, and the four-year term off the Representative Council and the district committees began on 1 July.

7 Interim Report 1 January June 11 August, 11 7 () Wood Products Industry Metsäliitto Wood Products Industry's sales in January June were EURR 5 million (1 6/1: 8) and operating result excluding non-recurringg was EUR 1 million (11). ncluding non-recurring was w EUR 1 million (1). in the second quarter were EUR 6 million ( 6/1: 56) andd operating result excluding non-recurring wass EUR 8 million (11). Compared to the same period last year, there was substantial businesss growth in all customer segments during the first six months of the year. Internal measures ensured that profitability remained at a reasonablee level. The market balance for sawn timber t continued to be weak in the second quarter. In further processed products, the economic uncertainty and consumers cutting back on their spending also taxed the demand. Investments in further processed products and the focus on different d industrial segmentss improved the profitability of engineered wood products compared to the previous year. The profitability of construction products also improved, although sales in the second quarter were weaker than expected. Pulp During the first half of the year, Metsä-Botnia s sales increased by per cent compared with the corresponding periodd last year, amountingg to EUR 678 million (1 6/1: 656). excluding non-recurring was EUR 185 million (167). Including non-recurring, the operating result was EUR 181 million (169). The price development of pulp, which had been positive for a long period, kept Metsä-Botnia's profitability at a good level. Foreign currency-denominated higher in the first half of the market prices of softwood pulp were, on average, 9 per cent year compared with the corresponding period last year. The average prices of hardwoodd pulp increased by 5 per cent. Metsä-Botnia's sales in the second quarter were EUR 9 million ( 6/1: 68). Operating result excluding non-recurringg totalled EUR 89 million (11). Demand and supply of softwood pulp were for the most part in balancee in the second quarter, but at the end of the review r period, the suppliers' pulp inventories grew as supply exceeded demand. Customers' hardwood pulp inventory levels were high in the Asian markets in particular. The utilisation rates of the Metsä-Botnia mills weree for the most part good in the second quarter, which resulted in exceeded production targets at the beginning of the period. However, the utilisation rates declined due to processs issues att the end of the

8 Interim Report 1 January June 11 August, 11 8 () period. The annual shutdownss planned for the spring were postponed to the autumn due to the labour market disturbance that lasted almost two months. Board and Paper Board and Paper's sales in January June were EUR 1,5 million (1 6/1: 1,78) and operating result excluding non-recurring was EURR 75 millionn (8). The operating result was weakened by the increase in the prices of wood, chemicals and energy. In addition, the strengthening of the Swedish krona and the weakening of the US dollar against the euro had a negative impact. The operating result was improved by the average saless prices which were significantly higher than last year. in the second quarter were EUR 66 million ( 6/1: 676) andd operating result excluding non-recurring wass EUR million (). Net non-recurring were EUR -61 million in January June, of which income accounted for EUR 1 million and expenses accounted for EUR E 71 million. The non- recurring gain was primarily generated by the sale of land areas. EUR 9 million of the non-recurring expenses is associated with the sale of M-real's Hallein mill and EUR million is associated with the write-downs and provisions of thee Gohrsmühle and Reflex paper mills. Operating result including non-recurring was EUR 1 million (8). Net interest and other financial expenses were EUR million () and the exchange gains and losses recognised in financial weree EUR million (-6). The results from associates were EUR million (). The figure includes a non-- with the sale of M-real's 5 per cent ownership share and capital loann in Myllykoski Paperr recurring impairment loss of approximately EUR million (16) associated Oy. Excluding non-recurring, the resultt before taxes for thee period was EUR million (9), earnings per share were EUR.11 (.8) and the return onn capital employed was 7. per cent (7.). Including non-recurring, the result before taxes was EUR million (5), earningss per share were EUR -.9 (.) and the return on capital employed 1. per cent (6.1). At the end of June, M-real s equity ratio was.9 per cent and net gearing was 8 per cent ( 1 December 1:.1 per cent and 8 per cent, respectively). Some of M-real s loan agreements set a 1 per cent limit on the company s nett gearing and a per cent limit on the equity ratio. At the end of June, nett gearing calculated in the manner defined in the borrowing agreements was approximately 6 per cent and the equity ratio about per cent. M-real Corporation's own interim report is published on August 11 at 1:.

9 Interim Report 1 January June 11 August, 11 9 () Tissue and Cooking Papers The January June sales of Metsä Tissue, producer of tissuee and cooking papers, totalled EUR 78 million (56). The increase in sales was primarily duee to the structure of sales as well as exchange rate fluctuations. The sales of own brands increased by 1 per cent compared to the corresponding period in the previous year. Operating result excluding non-recurringg was EUR 1 million (1). Including non-recurring, the operating resultt was EUR 1 million (). The prices of pulp, recycled fibre and other raw materials and energy continued to increase, and therefore the operating result was weaker than that in the corresponding period last year. The additional expensess related too the launch of production at thee Düren mill in Germany also burdened the operating result. in the second quarter were EUR 7 million ( 6/1: 1) andd operating result excluding non-recurring wass EUR million (1). Metsä Tissue's investment programme at the Düren mill is progressingg on schedule. The rebuild of paper machine 5 and the production facilities were w completed and the upgradingg lines weree started. The mill focuses solely on the productionp n of baking and cooking papers marketed under the SAGA brand. Metsä Tissue's three-year investment programme at the Krapkowice mill in Poland has progressed to the construction stage. The programme published inn April includes the construction of two new paper machines and an upgrading line, a rebuild of one paper machine and infrastructure development. In June, Metsä Tissue signed an exclusive licence agreement with Georgia-Pacific. The licence agreement authorises Metsää Tissue to manufacture, sell and market Lotus soft tissue products aimed at consumers in Russia. The transaction is planned for completion at the end of the third quarter. The sales of Lotus consumer products in Russia were approximately EUR million last year. In Finland, Lambi launched a toilet t paper grade with a new embossing e and a thicker and softer paper quality. Katrin introduced a new plastic-free Green Spa sauna seat cover which is the world's first completely biodegradable sauna seat. Itt was also awarded the Nordic Swan label endorsement. Furthermore, Mola s andd Tento s product grades weree renewed. Events after the period M-real's negotiations to divest its Premium Papers business to a sister company of German Papierwerke Lenk AG were suspended until further notice at the beginning of July. The parties are evaluating possibilities to continue the negotiations at a later date, and M-real is also considering other options to divest its Premiumm Papers business.

10 Interim Report 1 January June 11 August, 11 1 () The feasibility study of a biodiesel plant planned by Metsäliitto and Vapo is proceeding. Four alternative locations for the plant were reviewed initially, and an environmental impact assessment was carried out on two of the locations. As the study has progressed further, Ajos in Kemi, Finland, has been specifiedd as a potential location. The area was not included in the already assessed a alternatives, which is why an environmental impact assessment will now commencec e separately for it. The advantages of the plant concept under review are that it can be duplicated and that it is independent of the regional industrial production. The review found Ajos in Kemi to be a suitable location based on its logistical advantages and from the perspective of the raw material and end products. The biodiesel project of Metsäliitto and Vapo laid out in the feasibility study is one of three projects submitted by the Finnish Ministry of Employment and thee Economy to the European Commission to apply for NER funding from the EU. The Forestt BtL project, owned by Vapo and Metsäliitto, is responsible for thee project preparations. Risks and uncertainties The estimates and statementss in this Interim Report are based on current plans and estimates. They involve risks and uncertainties that may cause the results to differ from those expressed in such statements. In the short term, the price of and demand for end products, raw material costs, energy prices and the exchange e rate development of the euro have an effect on the results of Metsäliitto Group. In March, the state enterprise Metsähallitus filed a claim for damages d at the District Court of Helsinki, demanding that t Metsäliitto, UPM and Storaa Enso jointly pay a maximumm of approximately EUR million in compensationn due to prohibited cooperation with regard to prices in the raw wood market. The claim is related to the December 9 decision by the Market Court which statess that the aforementioned companies have violated the act on competition restrictions. Metsäliittoo considerss the claim for damages unfounded, and the company has not recognised any provisions regarding it. The risks related to the Group s business have been explained more extensively in Metsäliitto Group s Annual report for 1. Near-term outlook The wood consumption at the Group's production units is estimated to remain at the normal level in the third quarter. Metsäliitto actively buys all timber t grades. In Finland, the focus in July and August is on standss marked for summer felling. In Wood Products Industry increasing raw material prices and the challenge of implementing corresponding price increases to end productss will weaken the result outlook for the third quarter. Cost control remains a key theme, and sawmill operations may have to be adjusted to the situation.

11 Interim Report 1 January June 11 August, () In the pulpp market, seasonal weakening is to be expected and the prices are expected to decline slightly. Furthermore, carrying out maintenance shutdowns in the autumn will decrease the utilisation ratess of the mills in the second halff of the year. Demand for folding boxboard and liner seems to continue to be good. M-real's order books for folding boxboard have normalised from the exceptionally highh level of the end of last year and the beginning of thiss year. In April, M-real successfully increased the prices of liner, and in May it announced a 7 9 per cent increase in the price of folding boxboard in new agreements. In the short term, profitability of M-real s paper business is burdened by the plans, published in May, to eliminate losses of Alizay mill and Speciality Papers business area. In addition, the weakened market situation of all paper grades burdens the result. Demand for uncoated fine paper and speciality paper is believed to continue at the current, rather modest level. In June, M-real announced a 5 8 per centt price increase for office paper, effective in September. The price level of speciality paper is likely to remain the same. Demand for tissue and cooking papers iss estimated to continue to be steady, and the sales of own brands are expected to increase further. Measures to improve the result will continue, and the production costs and other additional expenses e arising will be compensated for by increasing sales prices. Indications of economic slowdown in thee United States and Europe E have weakened the outlook in paper and pulp market. Metsäliitto Group's operating result r excluding non-recurring than in the second quarter. This is due to in thee third quarter in 11 is estimated to be clearly weaker the weakening market situation of paperr and pulp, Metsä-Botnia's investment and maintenance shutdowns as well as the planned measures att M-real's Alizay mill and Speciality Papers business area. Espoo, August 11 Metsäliitto Group Board of Directors Further information: Vesa-Pekka Takala, Group CFO, Metsäliitto Group, tel Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel

12 Unauditedd Interim Report 1 January June 11 August, 11 1 () METSÄLIITO GROUP Condensed consolidated statement of comprehensive income, EUR mill. Continuing operations Other operating income Operating expenses Depreciation and impairment lossess Share of results in associated companies Exchange gains and losses Other net financial Result before income tax Income taxes Result for the period from continuing operations Change Q Q Discontinued operations Result from discontinued operations Result for the period Other comprehensivee income Cash flow hedges Available for sale financial assets Currency translation differences Other Income tax relating to components of other comprehensivee income Other comprehensivee income, net of tax Total comprehensive income for the period Result attributable to: Members of parent company Non-controlling interests Total comprehensive income attributable to: Members of parent company Non-controlling interests

13 Interim Report 1 January June 11 August, 11 1 () Unauditedd Condensedd consolidated balance sheet ASSETS Non-current Goodwill Other intangible assets Tangible assets Biological assets Investmentss in associated companies Available for sale investments Non-current financial assets Deferred tax receivables Current Inventories Accounts receivables and other receivables Cash and cash equivalents Assets classified as held for sale Total assets MEMBERS FUNDS AND LIABILITIES Members funds Members funds Non-controlling interestss Non-current liabilities Deferred tax liabilities Post-employment benefit obligations Provisions Borrowings Other liabilities Current liabilities Provisions Current borrowings Accounts payable and other liabilities Liabilities classified as held for sale Total liabilities Total members funds and liabilities

14 Unauditedd Interim Report 1 January June 11 August, 11 1 () Equity attributable to members of parent t company Change in members funds EUR million Members funds Result for the period Other comprehensive income Cash flow hedges Available for sale financial assets Currency translation differences Other Income tax relating to components of other comprehensivee income Other comprehensive income total Total comprehensive income Share Members premium capitall account Fair valuev and othero reserves Retained earnings Total Translation differences 9 Noncontrolling interests T Total Transactions with owners Dividends paid Change in members capital Change in share premium account Transfer from unrestricted to restricted equity Business arrangements Members funds Members funds Result for the period Other comprehensive income Cash flow hedges Available for sale financial assets Currency translation differences Other Income tax relating to components of other comprehensivee income Other comprehensive income total Total comprehensive income Transactions with owners Dividends paid Change in members capital Change in share premium account Transfer from unrestricted to restricted equity Business arrangements Change in shares of non-controlling interestss Members funds

15 Unauditedd Interim Report 1 January June 11 August, () Condensedd consolidated cash flow statement Result for the period Total adjustments Change in working capital Cash flow arising from operations Net financial Income taxes paid Net cash flow arising from operating activities Acquisitionss Investmentss in tangible and intangible assets Divestmentss of assets and other Net cash flow arising from investing activitiess Change in members funds Change in shares of non-controlling interests Change in long-term loans and other financial Dividends paid Net cash flow arising from financing activities Changes in cash and cash equivalents Cash and cash equivalents at beginning of period Translation difference Changes in cash and cash equivalents Cash and cash equivalents in assets classified as held for sale Cash and cash equivalents at end of period

16 Interim Report 1 January June 11 August, () BUSINESS AREAS Wood Supply EBITDA Depreciation and impairment - -, % of sales Capital expenditure Personnel at end of period 1 6/ /1 67 Q/11Q 9 Q/1 7 QI IV/ Wood Products Industry EBITDA Depreciation and impairment - -, % of sales Capital expenditure Personnel at end of period 1 6/ /1 8 Q/11Q 6 Q/1 56 QI IV/ Pulp Industry EBITDA Depreciation and impairment - -, % of sales Capital expenditure Personnel at end of period 1 6/11 1 6/1 Q/11Q Q/1 QI IV/ Board and Paper Industry EBITDA Depreciation and impairment - -, % of sales Capital expenditure Personnel at end of period 1 6/ / Q/11Q 66 7 Q/ QI IV/

17 Interim Report 1 January June 11 August, () Tissue and Cooking Papers EBITDA Depreciation and impairment - -, % of sales Capital expenditure Personnel at end of period 1 6/ /1 56 Q/11Q 7 Q/1 1 QI IV/ Other operations EBITDA Depreciation and impairment Capital expenditure Personnel at end of period 1 6/ / Q/11Q 1 56 Q/1 8 QI IV/ Other operations include among others Metsäliitto s service and holding functions. Internal sales and eliminations EBITDA Depreciation and impairment 1 6/11 1 6/1 Q/11Q Q/1 QI IV/ Metsäliitto Group EBITDA Depreciation and impairment - -, % of sales Capital expenditure Personnel at end of period 1 6/ / Q/11Q Q/ QI IV/ EBITDA = before depreciation and impairment losses

18 Interim Report 1 January June 11 August, () Quarterly data Wood Supply Wood Products Industry Pulp Industry Board and Paper Industry Tissue and Cooking Papers Other operations Internal sales total 111 QII 11 QI QIV QIII 1 QII 1 QI Wood Supply Wood Products Industry Pulp Industry Board and Paper Industry Tissue and Cooking Papers Other operations Eliminations total - % of sales Share of results in associated companies Exchange gains and losses Other net financial Result before income tax Income tax Result from continuing operations Result from discontinued operations Result for the period excl. non-rec. Wood Supply Wood Products Industry Pulp Industry Board and Paper Industry Tissue and Cooking Papers Other operations & eliminations total - % of sales QII/11 QI/ QIV/ QIII/1Q QII/ /1 QI/

19 Interim Report 1 January June 11 August, () Business acquisitionss In June, Oy Metsä-Botnia Ab redeemed its own shares by EUR 1 million from UPM-Kymmene so that the ownership structure between the Groups, defined in the shareholder agreement, was achieved after the arrangement. The redemptionn price was accounted for as debt in the original acquisition in December 9. When the redemption price deviated fromm the estimate, the Group recognised EUR 1 million as increased goodwill. As a result of the arrangement the share of indirect non-controlling interestss in the Metsäliitto Group increased by 1. percentage points. Change in tangible assets Book value at beginningg of period Business acquisitions Investmentss Decrease Assets classified as held for sale Depreciation and impairment charges Translation differences and other changes Book value at end of period QI II/ QI II/ QI IV/ Assets held for sale included the tangible assetss of M-real's Hallein GmbH in June 11. In June 1, assets held for sale included part of the old equipment of Metsä-Botnia s Kaskinen pulp mill, shutt down in 9 (EUR 11 million), and the tangible assetss of paper machine at M-real's Kangas mill (EUR 8 million). In December 1, assets held for sale included part of the old equipment e off Metsä-Botnia's Kaskinen pulp mill, shut down in 9. Commitments On own behalf (incl. leasing liabilities) On behalf of associated companies On behalf of others Total QII/ QII/ QIV/ Open derivative contracts Interest rate derivatives Currency derivatives Other derivatives Total QII/ QII/ QIV/ The market value of open derivativee contracts att the end of the review period was EUR -5 million (1/1: EUR million) ). Open derivative contracts also include closed contracts c to a total amount of EUR million (1V/1: EUR 5 million). Accounting policies This Interim Report was prepared in accordancee with the IAS standard Interim Financial Reporting and the accounting policies presented in Metsäliitto Group s Annual Report 1.

20 Interim Report 1 January June 11 August, 11 () Calculation of key ratios Return on capital employed (%) Return on equity (%) Equity ratio (%) Net gearingg ratio (%) = (Result from continuing operations before tax + interest expenses, net exchangee gains/losses and other financial expenses) per (Balance total - non-interest-bearing = (Result from continuing operations before tax - liabilities (average)) income taxes) per (Members funds (average)) = (Members funds) per (Balance total - advance payments received) ) = (Interestt bearing borrowings - liquid funds - interest-bearing receivables) perr (Members funds)