Slide 1: Metsä Group's Interim Report Q3 2025
Metsä Group’s Interim Report Q3 2025 Jussi Vanhanen President and CEO 23 October 2025
Slide 2: Content
Safety Financial position Investments The cooperative distributes income Content across Finland Business areas 23.10.2025 2
Slide 3: Right direction in safety development at Metsä Group
Right direction in safety development at Metsä Group • Development actions 20 200 – Fair & just safety culture 15 150 – Safety training 12.1 10.6 – Improving service providers’ safety 10 8.7 8.1 100 6.7 – Developing process safety 6.1 5.2 4.2 5 50 0 0 2018 2019 2020 2021 2022 2023 2024 09/2025 YTD T
Slide 4: Financial position
Financial position My! Metsa
Slide 5: Operating result was negative, as expected
Metsä Group – Q1–Q3/2025 Operating result was Sales negative, as expected EUR 4,508 million (Q1–Q3/2024: 4,273) • Protectionism in world trade weighed on the result • Wood price continued to decrease, Operating result* but the price level remains EUR -27 million historically high (Q1–Q3/2024: 170) •
Slide 6: January–September sales at last year's level
Metsä Group – Q1–Q3/2025 January–September sales at last year’s level EUR million 2 000 1,822 1,823 1 800 1,741 1,634 1,642 1,560 1,594 1 600 1,542 1,515 1,509 1,481 1,486 1,457 1,480 1,475 1,400 1,427 1,440 1 400 1,336 1 200 1 000 800 600 400 200 0 Q1/21 Q2 Q3 Q4 Q1/22 Q2 Q3 Q4 Q1/23 Q2 Q3 Q4 Q1/24
Slide 7: Weaker EBITDA and operating result due to low demand and pulp price
Metsä Group – Q1–Q3/2025 Weaker EBITDA and operating result due to low demand and pulp price EUR million 600 500 467 395 391 400 379 353 355 317 322 330 311 278 287 276 300 254 242 244 220 224 186 197 200 174 177 174 151 127 104 113 88 81 100 70 68 51 57 33 39 0 -13 -37 -100 -72 -200 Q1/21 Q2 Q3 Q4
Slide 8: Strong equity ratio and sustainable level of debt
Metsä Group – Q1–Q3/2025 Strong equity ratio and sustainable level of debt % Equity ratio, % Interest-bearing net liabilities, EUR million 70 1 500 1,442 61.1 60.6 1,236 60 56.2 57.6 55.9 1 200 50 900 40 663 600 30 300 177 20 0 10 0 -300 -185 2021 2022 2023 2024 Q1–Q3/25 2021 2022 2023 2024 Q1–Q3/25
Slide 9: Working capital reduction strengthened net cash flow from operations
Metsä Group – Q1–Q3/2025 Working capital reduction strengthened net cash flow from operations EUR million 500 469 427 439 399 400 372 321 300 279 222 207 200 176 135 95 87 100 38 19 0 -19 -10 -100 -114 -137 -200 Q1/21 Q2 Q3 Q4 Q1/22 Q2 Q3 Q4 Q1/23 Q2 Q3 Q4 Q1/24 Q2 Q3 Q4 Q1/25 Q2 Q3 23 October 2025
Slide 10: Pulp price and wood costs weakened the result
Metsä Group – Q1–Q3/2025 Pulp price and wood costs weakened the result EUR million Comparable operating result Q1–Q3/2024 170 Sales prices -60 Sales volumes 74 Exchange rates (after hedging) 3 Change in the unit costs of wood raw material -54 Change in the unit costs of raw material, energy and othe
Slide 11: Stumpage prices decreased but remained high in Finland
Metsä Group – Q1–Q3/2025 Stumpage prices decreased but remained high in Finland 90 80 4-week rolling average, EUR per m3 70 60 50 40 30 20 10 0 2020 2021 2022 2023 2024 2025 Pine log Spruce log Birch log Pine fibre Spruce fibre Birch fibre Source: Finnish Forest Industries Federation, October 2025 2
Slide 12: Significant result improvement required
Metsä Group – Q1–Q3/2025 Significant result improvement required • EUR 300 million cost savings programme is ongoing • Cost savings to be largely achieved through variable cost optimisation • Statutory negotiations may lead to the reduction of 800 jobs 23 October 2025
Slide 13: Near-term outlook
Near-term outlook • Challenging business environment undermines predictability – Metsä Group will not provide separate result guidance for now – In a volatile market, this is not appropriate • Pulp market is not expected to improve • Excess board capacity in Europe adds pressure. North American dema
Slide 14: Investments
Investments My! Metsa
Slide 15: Investments in Finland and Sweden in the final stretch
Metsä Group – Q1–Q3/2025 Investments in Finland and Sweden in the final stretch Total investments • Customer deliveries from the new tissue EUR million paper mill in Sweden begun 1 750 1,500 • Construction of the Äänekoski Kerto LVL 1 500 mill is ahead of schedule 1 250 1,193 994 • New paperboard pr
Slide 16: Forest owners' cooperative provides wealth across Finland
Forest owners’ cooperative provides wealth across Finland
Slide 17: Owner-members received approximately EUR 485 million in wood trade income
Metsäliitto Cooperative – Q1–Q3/2025 Owner-members received approximately EUR 485 million in wood trade income in Q1–Q3 2025 EUR million EUR million 250 15 214 13 191 194 200 183 187 174 169 11 149 150 144 142 9 150 137 132 128 130 127 116 119 115 7 100 4 5 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 3 50 1
Slide 18: It pays to take good care of Finnish forests
Metsäliitto Cooperative – Q1–Q3/2025 It pays to take good care of Finnish forests Forests are among Finland’s most significant natural resources. Forest management work keeps forests vibrant, and the Metsä Group Plus service strengthens forest biodiversity. Metsä Group Plus management model’s share
Slide 19: Forest owners are satisfied with Metsä Group
Forest owners are satisfied with Metsä Group Forest owners’ customer experience at a record high (Net Promoter Score) 80 70 60 50 NPS 40 30 20 10 0 Wood trade and service sales Harvesting Forest management work 23 October 2025 19
Slide 20: We do not source wood from old-growth forests
We do not source wood from old- growth forests • Metsä Group is one of the largest forestry operators in Finland • Our wood supply must be sustainable • Metsä Group does not source wood from old-growth forests or forests classified as natural forests • We comply with the Finnish Government’s criteri
Slide 21: My! Metsä
My! Metsa
Slide 22: Business areas
Business areas My! Metsa
Slide 23: Pulp and Sawn Timber Industry's result continued to decrease
Metsä Fibre – Pulp and Sawn Timber Industry Pulp and Sawn Timber Industry’s result continued to decrease Sales and comparable operating result EUR million • Weaker result due to low pulp price 900 400 and wood costs 800 789 350 700 669 649 643 • Pulp demand was weak, expected 600 542 639 585 575 588
Slide 24: US tariffs made a considerable dent in the Paperboard Industry's result
Metsä Board – Paperboard Industry US tariffs made a considerable dent in the Paperboard Industry’s result Sales and comparable operating result • Weaker result due to pulp price, EUR million paperboard delivery volumes and 600 542 498 510 499 150 479 484 481 production curtailment 500 423 446 460 44
Slide 25: Positive profit development in Tissue and Greaseproof Papers
Metsä Tissue – Tissue and Greaseproof Papers Positive profit development in Tissue and Greaseproof Papers Sales and comparable operating result • Improved result due to higher delivery EUR million volumes and lower costs 400 100 343 350 • Stable demand for tissue paper, 311 293 304 298 290 300 284 2
Slide 26: Negative profitability in Wood Products Industry
Metsä Wood – Wood Products Industry Negative profitability in Wood Products Industry Sales and comparable operating result EUR million • Weaker profitability due to ERP system issues, weak demand for spruce plywood 200 40 35 and the gradual winding down of the 175 162 164 156 30 Suolahti mill 150 24
Slide 27: Market prices of wood took a downwards turn across the Baltic Sea region
Metsä Forest – Wood Supply and Forest Services Market prices of wood took a downwards turn across the Baltic Sea region Sales and comparable operating result • Wood prices took a downwards turn EUR million in Finland; the price level remains 800 742 35 high 700 605 616 636 30 601 592 603 600 549 • W
Slide 28: My! Metsä
My! Metsa