Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Q1 2025 Earnings Presentation
33 slides from Metsa Board Oyj Class A's earnings presentation, Apr 29, 2025
Slide 1: Results for January–March 2025
Metsä Board Results for January–March 2025 Presentation material 29 April 2025
Slide 2: Disclaimer
Disclaimer This presentation includes forward-looking statements. The words “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “will”, “should”, “could”, “aim”, “target”, “might” or in each case, their negative, or any similar expressions identify certain of these forward-lookin
Slide 3: Q1 2025 in brief
Comparable Q1 2025 in brief Sales operating result 2,084 • Paperboard deliveries increased from the previous quarter; average sales prices remained roughly at 481 23 FY2024 level EUR million EUR million • Seasonally higher production volumes Q1 2024: EUR 484m Q1 2024: EUR 32m • Cash flow weak due to
Slide 4: US tariffs and impacts on Metsä Board
US tariffs and impacts on Metsä Board • Metsä Board has an established market position in US in coated white kraftliners (WKL) and folding boxboard (FBB) • Customers appreciate Metsä Board’s premium paperboards, smooth supply chain and comprehensive services • In 2024, sales to US were EUR 430 milli
Slide 5: Paperboard deliveries still below capacity
Paperboard deliveries still below capacity Metsä Board’s paperboard deliveries, quarterly Q1 2024: Q1 2025: 364,000 tonnes +1% 367,000 tonnes Q4 2024: Q1 2025: 342,000 tonnes +7% 367,000 tonnes White kraftliners Folding boxboard 500 400 165 164 146 1,000 tonnes 133 1,000 tonnes 166 120 300 123 117 1
Slide 6: Paperboard sales by region
Paperboard sales by region FBB deliveries Q1 2025 (Q1 2024) WKL deliveries Q1 2025 (Q1 2024) total 248,000 tonnes (242,000) +2% total 119,000 tonnes (123,000) -3% APAC APAC 11,000 0 (11,000) (1,000) Americas 0% 61,000 4% Americas (53,000) 49,000 (58,000) EMEA 25% 71% 176,000 41% (178,000) 59% EMEA 7
Slide 7: Market pulp
Market pulp Softwood pulp price (PIX) development in Europe and China • Market pulp deliveries (Q1 2025 vs Q1 2024) 1 800 – Metsä Board -13%: (100,000t vs 115,000t) 1 600 – Metsä Fibre1) +29%: (886,000t vs 686,000t) 1 400 • Demand for BCTMP in China has been nearly at a 1 200 standstill for a year U
Slide 8: Key sustainability figures
Key sustainability figures Accidents at work Certified wood fibre TARGET TRIF, TARGET 0 TARGET 100% set for 2030 ACTUAL 5.6 ACTUAL 94% ACTUAL FY2024: 3.4 FY2024: 92 Q1 2025 Fossil-based CO2 Process water use2) Energy efficiency2) emissions1) Scopes 1&2 TARGET -35% TARGET +10% TARGET 0 ACTUAL: Scope
Slide 9: Consistent sales, profitability still under pressure
Consistent sales, profitability still under pressure Sales, quarterly Comparable operating result, quarterly EUR million EUR million and % of sales FY 2022: FY 2023: FY 2024: FY 2022: FY 2023: FY 2024: EUR 521m EUR 122m EUR 69m EUR 2,480m EUR 1,942m EUR 1,939m margin 21% margin 6.3% margin 3.6% 700
Slide 10: Result comparison
Result comparison Comparable operating result and % of sales Q1/2025: EUR 23 million, 4.7% Q1/2024: EUR 32 million, 6.5% Q1/2024 profitability impacted by political strikes in Finland Positives: Higher result share from Metsä Fibre Lower energy and chemical costs Negatives: Higher wood and log
Slide 11: Q1 2025 ROCE at 4%
Q1 2025 ROCE at 4% Comparable return on capital employed, % Quarterly and rolling 12 months 26% 26% 24% 24% 22% 22% 20% 20% 18% 18% 16% 16% 14% 14% Target >12% 12% 12% 10% 10% 8% 8% 6% 6% 4% 4% 2% 2% 0% 0% -2% -2% Q1/20 Q2/20 Q3/20 Q4/20 Q1/21 Q2/21 Q3/21 Q4/21 Q1/22 Q2/22 Q3/22 Q4/22 Q1/23 Q2/23 Q3
Slide 12: Rising working capital and low profitability impacted cash flows
Rising working capital and low profitability impacted cash flows 400 400 300 300 Metsä Fibre dividend €59m Metsä Fibre dividend €83m EUR million EUR million 200 200 134 126 Metsä Fibre dividend €10m 120 124 93 100 72 70 77 100 66 69 59 59 50 Metsä Fibre dividend €0m 37 23 33 Metsä Fibre dividend €0m
Slide 13: Solid financial standing despite leverage growth
Solid financial standing despite leverage growth Financial target: Net debt and leverage Net debt to comparable EBITDA < 2.5 500 2,5 402 400 2,0 348 345 293 300 257 1,5 220 176 EUR million 200 1,0 144 109 91 94 100 0,5 9 0 0,0 -100 -0,5 -100 -200 -1,0 3/2022 6/2022 9/2022 12/2022 3/2023 6/2023 9/202
Slide 14: Investments and depreciation
Investments and depreciation January–March 2025 Investments and depreciation, • Total investments were EUR 16 million EUR million • Depreciation, amortisation and impairment was EUR 48 million, incl. EUR 19 million write-down of fixed assets 300 related to Tako’s closure Year 2025, estimated EUR MIL
Slide 15: Near-term outlook April–June 2025
Near-term outlook April–June 2025 • Increased uncertainty due to the US tariffs • Consumers’ cautious buying behaviour reflected in paperboard demand • Metsä Board’s paperboard delivery volumes expected to remain at Q1 level • Variable costs, excluding pulp, are expected to remain stable • More plan
Slide 16: Result guidance April–June 2025
Result guidance April–June 2025 Metsä Board’s comparable operating result in April–June 2025 is expected to be weaker than January–March 2025 (EUR 23 million).
Slide 17: Summary
Summary • Challenging market situation continues • Metsä Board’s financial position remains solid • Short-term focus on strengthening cash flow • We continue to improve the competitiveness of our mills and products, and plan actions to improve profitability
Slide 18: a Metsa
a Metsa
Slide 19: Appendix
Appendix a Metsa
Slide 20: Key financials
Key financials Change Q1/25 Q1/25 Q1/24 Q4/24 FY/24 vs Q1/24 Sales EURm 481 484 -1% 446 1,939 EBITDA* EURm 51 58 -12% 25 175 Operating result* EURm 23 32 -28% -4 69 % of sales* % 4.7 6.5 -0.8 3.6 Metsä Fibre’s share of EURm 6 -6 -3 -10 operating result* Earnings per share EUR -0.02 0.04 153% -0.02 0
Slide 21: Financial targets and dividend policy
Financial targets and dividend policy Comparable ROCE, %: IB net debt / comparable Dividend policy EBITDA Dividend/net result, % 21 19 98 Target: 94 2,4 Pay-out ratio at least 50% Target < 2.5x 2 Target > 12% 54 50 50 5 3 0,7 4 0,2 2021 2022 2023 2024 Q1/2025 2020 2021 2022 2023 2024 -0,2 2021 2022
Slide 22: Cost development and structure
Cost development and structure Metsä Board’s cost structure in 2024 Q1 2025 (vs Q1 2024) Total costs EUR 1.8 billion (1.7) • Higher wood and logistics costs, lower Other fixed chemical and energy costs 10% Wood 20% Personnel Year 2024 11% • Total costs EUR 1.8 billion (1.7) Other variables 2% • Cost
Slide 23: Impacts of FX
Impacts of FX Annual FX transaction exposure total EUR 1.4 billion Other • Impact including hedges, actual GBP 8% 3% – Q1 2025 vs Q1 2024: EUR +2 million USD 57% SEK 32% • Estimated impacts, including hedges The foreign currency transaction exposure consists of – Q2 2025 vs Q1 2025: neutral foreign-
Slide 24: Interest-bearing debt and liquidity
Interest-bearing debt and liquidity 31 March 2025 Interest-bearing debt Liquidity EUR 573 million EUR 371 million Liquid assets and investments Financial leases Syndicated credit and other loans facility (RCF) 160 Bonds 249 200 171 164 Loans from financial institutions Liquidity is complemented by:
Slide 25: Debt maturity and credit ratings
Debt maturity and credit ratings Maturity of interest-bearing debt 31 March 2025 Total EUR 573 million • Total interest-bearing debt was EUR 573 EUR million million, and net debt was EUR 402 million 300 • The average interest rate on loans at the end 200 of the review period was 2.6%, and the 100 av
Slide 26: Market cap and ownership distribution
Market cap and ownership distribution Metsä Board has over 70,000 shareholders, combined amount of A and B shares Market cap and foreign owners Ownership distribution 31 March 2025 % Foreign owners EUR million 8% 3 500 25 3 000 20 Domestic private 2 500 owners 21% 2 000 15 1 500 10 Metsäliitto Coope
Slide 27: Transition plan to fossil-free mills by 2030
Transition plan to fossil-free mills by 2030 Baseline: HUSUM, KASKINEN, KYRO, SIMPELE 577,875 tonnes The power plant’s backup fuels will be replaced with renewable fuels KYRO KASKINEN The power plant’s new Process fuels in chemicals recovery turbine and generator will be replaced with renewable fuel
Slide 28: External assessments and own commitments
External assessments and own commitments Metsä Board has an “A” score in the Climate, Total score 91/100. Metsä Board has Link to ISS website Link to MSCI website Forests and Water rating. achieved the highest rating level every year The use by Metsä Board of any MSCI ESG Research llc or its affilia
Slide 29: Price development of folding boxboard and white kraftliners in Europe
Price development of folding boxboard and white kraftliners in Europe EUR/tonne EUR/tonne 1 600 1 600 1 500 1 500 1 400 1 400 1 300 1 300 1 200 Folding boxboard 1 200 1 100 1 100 1 000 1 000 900 900 White top kraftliners 800 800 700 700 600 600 500 500 2009 2010 2011 2012 2013 2014 2015 2016 2017 20
Slide 30: Price development of pulp (PIX)
Price development of pulp (PIX) Long-fibre (SW) and short-fibre (HW) pulp 1 700 1 700 1 600 1 600 1 500 Long-fibre Europe, USD 1 500 1 400 1 400 1 300 1 300 1 200 Short-fibre Europe, USD 1 200 USD or EUR USD or EUR 1 100 1 100 1 000 1 000 900 900 800 800 700 700 600 600 500 500 400 Short-fibre Europ
Slide 31: Price development of pulpwood in Finland and Sweden
Price development of pulpwood in Finland and Sweden Price (delivery at roadside, on bark) of pulpwood Price (delivery at roadside, under bark) of pulpwood in Finland, EUR/m3 in Sweden, SEK/m3 60 650 55 600 50 550 500 45 450 40 400 35 350 30 300 25 250 20 200 2014 2010 2011 2012 2013 2014 2015 2016 2
Slide 32: FX rates development: EUR/USD and EUR/SEK
FX rates development: EUR/USD and EUR/SEK EUR/USD EUR/SEK 1,25 12 1,2 11,5 1,15 11 1,1 10,5 1,05 10 1 0,95 9,5 31.3.2020 31.3.2021 31.3.2022 31.3.2023 31.3.2024 31.3.2025 31.3.2020 31.3.2021 31.3.2022 31.3.2023 31.3.2024 31.3.2025
Slide 33: Katri Sundström, Vice President, Investor relations
Katri Sundström Vice President, Investor relations +358 10 462 0101 katri.sundstrom@metsagroup.com