Highlights in 2Q 2015
• Profitability improved from the previous quarter
• Paperboard delivery volumes continued to increase
• Price levels were stable
• Final steps in transformation to a paperboard
company progressed as planned
• The Gohrsmühle mill in Germany was divested
• Moody's Investors Service upgraded Metsä Board’s
rating by two notches
2 2Q/2015
Operating result improved in 2Q 2015
2Q/20153
2619
2936
2835 37
43 47
0
10
20
30
40
50
Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 2Q/15
503 502 479 501 494 514 499 526 522
200
300
400
500
600
Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Sales Operating result, excl. non-recurring items
Result before taxes, excl. non-recurring itemsEUR million
199
1821 20
27 32 3240
0
10
20
30
40
50
Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
EUR million EUR million
4
Main operating result drivers in 2Q 2015 vs. 1Q 2015
+Paperboard delivery volumes
Exchange rates,
including hedge accounting results
Divestment of the Gohrsmühle mill
–Paper delivery volumes
(as planned)
Investment shutdown at the Husum mill
Market pulp delivery volumes
2Q/20154
Increase of paperboard sales volumes continues
as planned
2Q/20155
176 185 185 189 192 197 185 191 197210 203 204
217
8593 85
94 93 9591
112 110
120111
130
137
0
60
120
180
240
300
360
Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Fresh forest fibre linerboard
Folding boxboard
1,000 tonnes+13% vs. 1H/2014
Most important growth area is North America –
in 2015, FBB growth is limited by production capacity
2Q/20156
Fresh forest fibre liner deliveries to
North and South America, 1,000 tonnes
7693 97
107129
154
182
0
40
80
120
160
200
2009 2010 2011 2012 2013 2014 1H15
Folding boxboard deliveries to North
and South America, 1,000 tonnes
810 11
15
23
27
3128
30
0
5
10
15
20
25
30
35
2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15
Sales target of FBB is over
300,000 tonnes annually in medium-termSales target of linerboard is over
250,000 tonnes annually in medium-term
annual run rate
Paperboard segment’s sales increased and operating
result remained at the previous quarter level
2Q/20157
Operating result, excl. non-recurring itemsSales
EUR millionEUR million
45 4451
61 60
0
10
20
30
40
50
60
70
Q2/14 Q3/14 Q4/14 Q1/15 Q2/150
100
200
300
400
500
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Non-core operations segment’s sales decreased as
expected and operating result was unchanged
2Q/20158
Operating result, excl. non-recurring itemsSales
EUR millionEUR million
-7-3 -2 -3 -3
-20
-10
0
10
20
Q2/14 Q3/14 Q4/14 Q1/15 Q2/150
40
80
120
160
200
Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
2Q/20159
Exchange rate changes during
the last 12 months favourable
• Duration of Metsä Board’s hedges of the main foreign currency
flows has been 4–6 months during the last 12 months
• Annual unhedged EBIT sensitivity of 10% change vs. euro– EUR 45 million in USD
– EUR 20 million in GBP
– Reversed EUR 30 million SEK
• Slight positive EBIT impact after hedges in 2Q 2015 compared
to previous quarter
• Segment numbers reflect exchange rate changes rapidly
but hedge accounting result in Other operations balance the
impact
Balance sheet continues strong
• Gross debt was EUR 671 million and net debt EUR 389
million at the end of 2Q 2015 (EUR 319 million at the end
of 1Q 2015)
• Net gearing was 39% (34%), equity ratio 46% (41%)
and average interest rate 3.8% (3.9%) at the end of 2Q
• Strong liquidity position
• Moody's raised Metsä Board’s credit rating by
two notches to Ba2
2Q/201510
827 783
625 597
427 389
0
250
500
750
1000
2010 2011 2012 2013 2014 2Q 15
2,7
4,4
3,42,9
1,81,5
0
1
2
3
4
5
2010 2011 2012 2013 2014 2Q15
Net debtEUR million
Net debt / EBITDA%
2Q/201511
Short-term market outlook
• Paperboard delivery volumes are expected to increase
slightly in 3Q 2015 compared to the previous quarter
• No significant paperboard price changes in sight
• Long fibre pulp demand is expected to continue to grow
moderately and the supply and demand to be in balance in
the near future
• The market situation of the paper businesses reported in
Non-core operations segment is expected to remain stable
• The average production costs are not expected to change
materially in 3Q 2015
2Q/201512
Short-term profitability outlook
• Metsä Board's operating result excluding non-recurring
items is in the third quarter of 2015 expected to improve
slightly compared to the second quarter of 2015
2Q/201513
Gohrsmühle mill divested to
mutares and its partner company
• mutares AG is a stock listed German industrial holding
company focusing on acquiring companies in special situations
• Negative cash flow impact of about EUR 37 million was clearly
less than in the case of a potential closure
• Positive non-recurring item of EUR 17,5 million booked
in 2Q 2015
• Compared to 2014, the divestment reduces Metsä Board’s
annual sales by about EUR 90 million and improves operating
result excl. non-recurring items by EUR 20 million
– Somewhat over half materialises in 2015
2Q/201514
Transformation of Husum mill is
proceeding as planned
• The first investment shutdown was held successfully in April.
BM2 is now able to produce about 300,000 tonnes of linerboard
annually
• Paper machines 6 and 7 will be closed in Oct.–Nov. 2015
• New FBB production line (BM1) will start on 4 January 2016– Investment shutdown has a negative result impact in 4Q 2015
• Related infra improvements are proceeding
• Agreed personnel reduction is about 180
2Q/201515
The transformation of Husum
enables production optimisation
• Product portfolio of all mills will be simplified which results in
better production efficiency
• Enables the sales volume growth from the Finnish folding
boxboard mills
• Production of food service board is concentrated to Husum
• Linerboard production will not change materially
2Q/201516
Increased emphasis on
product development
• Further improvement of product quality and sustainability
• Close cooperation with customers
• Technical properties of food service boards will be developed
and thus the end use range widened
• The Kyro mill will be the first in the world to start testing foam
forming on a production scale – Improves printing surface and enables further reduction of weight
– Reduces the use of raw materials, energy and water
– Metsä Board has done extensive development work for several
years to commercialise this new technology
Key priorities in 2015
2Q/201517
ROCE, excl. non-recurring items
%
3,44,8
6,4
9,1
11,6
0
2
4
6
8
10
12
14
2011 2012 2013 2014 1H 15
Target min. 12% starting from 2017
• Grow profitably the paperboard businesses globally
• Implement successfully the Husum investment projects
• Secure good price levels
• Keep high product quality and further improve supply chain
• Enter new end use areas
• Continue productivity improvements and cost savings
• Develop competences, especially related to Husum’s new products
ROCE % and EBIT, % of sales
2Q/201520
11,6
9,1
6,4
4,8
3,4
0
3
6
9
12
15
2011 2012 2013 2014 1H15
2,4
3,6
5,2
6,8
8,6
0
1
2
3
4
5
6
7
8
9
10
2011 2012 2013 2014 1H15
Target min. 12% starting from
EBIT, % of sales, excl. non-recurring itemsROCE %, excl. non-recurring items
EBITDA development
2Q/201521
143
236208
186179
0
60
120
180
240
300
2011 2012 2013 2014 1H15
EBITDA, excl. non-recurring itemsEUR million
Segment performance –
comparison to previous quarter
2Q/201522
2Q 20151Q 2015
391
128
408
109
0
100
200
300
400
500
Paperboard Non-coreoperations
61
-3
60
-3
-20
0
20
40
60
80
Paperboard Non-coreoperations
Sales Operating result, excl. non-recurring items
EUR million EUR million
Segment performance
– comparison to previous year
2Q/201523
1H 20151H 2014
705
263
799
237
0
200
400
600
800
1000
Paperboard Non-coreoperations
85
-13
120
-7
-30
0
30
60
90
120
150
Paperboard Non-coreoperations
Sales Operating result, excl. non-recurring items
EUR million EUR million
Hedge accounting losses have negatively
impacted Other operations’ results
2Q/201524
-3 -3-1 -2 -6 -6
-12-14
-9
-15
-12
-9
-6
-3
0Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q2/15
Other operations’ operating result,
excl. non-recurring itemsEUR million
• Other operations include costs which are not
allocated to units, certain small scale assets
items and the hedge accounting result
• Cost base in Other operations is EUR 4-5
million per quarter
• Result fluctuation is caused by hedge
accounting result, which has been EUR 3-8
million negative per quarter during the past year
Balance sheet ratios
2Q/201525
389
427
597625
783
4,4
3,4
2,9
1,8
1,5
0
100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 1H15
0
0,5
1
1,5
2
2,5
3
3,5
4
4,5
5
106
7270
51
39
0
20
40
60
80
100
120
2011 2012 2013 2014 1H15
Net debt and net debt/EBITDA* Net gearingNet debt,
EUR million Net debt/
EBITDA
%
* excl. non-recurring items
Folding boxboard market price in Europe
2004–1H 2015
2Q/201526
EUR / tonne
Source: Pöyry Management Consulting
800
900
1000
1100
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
White-top kraftliner market price in Europe
2009–1H 2015
2Q/201527
EUR / tonne
500
600
700
800
900
2009 2010 2011 2012 2013 2014 2015
Source: Foex
Paper and pulp market price in Europe 2000–1H 2015
2Q/201528
Euroa / tonniEUR/USD
400
500
600
700
800
900
1000
1100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
0,8
0,9
1
1,1
1,2
1,3
1,4
1,5
1,6
1,7
Coated fine paper (100 g)
Uncoated fine paper (B-copy, 80 g)
Softwood pulp NBSK
Coated magazine paper LWC (60g)
Source: Foex, Reuters
EUR/USD