Metsa Board Oyj Class A · OMXHEX:METSA
Metsa Board Oyj Class A — Q1 2025 Earnings Presentation
70 slides from Metsa Board Oyj Class A's earnings presentation, April 2025
Slide 1: Investor presentation Q1 2025
Investor presentation Q1 2025 Metsä Board
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: Contents
Contents This is Metsä Board 4 Cost structure and profit drivers 17 Operating environment and impacts from regulation 26 Results for January–March 2025 35 ESG 49 Innovation and R&D 62 Owners and management 67
Slide 4: Investment highlights
Investment highlights Focus on premium A leading position High level ambition in Investments in fresh fibre paperboards in a growing market sustainability sustainable growth • Recyclable and lightweight paperboards • Metsä Board is #1 producer in folding • Focus on resource efficiency and • Recently
Slide 5: Metsä Board is part of Metsä Group
Metsä Board is part of Metsä Group Metsä Group’s interest is to increase the value of the forest of owner-members by processing wood into valuable and sustainable end-products All figures based on FY2024 METSÄ GROUP Sales EUR 5.7 billion │ Operating margin: 3.5% │ Personnel 9,000 Parent company: MET
Slide 6: Company in figures
Company in figures Sales split by product Sales split by region Other operations APAC Comparable operating result 6% FY2024: EUR 69 million or 3.6% of sales Market 4% pulp 600 25 14% Americas 27% 500 20 400 15 300 FY 2024 SALES FY 2024 SALES 10 EUR 1.9bn EUR 1.9bn 200 100 5 0 0 Folding 2020 2021 202
Slide 7: Focus on premium and recyclable fresh fibre paperboards, end-uses mainly in consumer products
Focus on premium and recyclable fresh fibre paperboards, end-uses mainly in consumer products Metsä Board’s annual capacity in FBB in 1.6 mt Metsä Board’s annual capacity in WKL in 0.7 mt - of which 2/3 is coated WKL Graphic end uses e-Commerce Other consumer Other products consumer Folding White pr
Slide 8: Our main markets are Europe and North America
Our main markets are Europe and North America Total paperboard deliveries in 2024 were 1.5 million tonnes (2023: 1.4mt) Regional focus on key demand drivers EMEA Further strengthening our leading market position in EUROPE • • Environmental awareness and regulatory requirements support recyclable pac
Slide 9: Self-sufficiency in energy is 90%
Self-sufficiency in energy is 90% Energy consumption by sourcing method Sourced from market Gas, oil, waste, peat, 15% sourced from market Biomass, Own 7% own generation Biomass, generation 31% sourced from Sourced 82% from Metsä Metsä Fibre Fibre 11% 12% ELECTRICITY FUELS (HEAT) Total 2.0 TWh Total
Slide 10: Self-sufficiency in pulp is secured through ownership of Metsä Fibre
Self-sufficiency in pulp is secured Metsä Fibre’s pulp sales split by region 2024 MEA&Americas through ownership of Metsä Fibre 14% APAC 42% Europe 44% Metsä Fibre is globally #1 producer in softwood market pulp (NBSK) • Capacity ~4 million tonnes/year chemical pulp (80% SW, 20% HW) Metsä Fibre’s pu
Slide 11: Metsä Board's production is close to the main raw material – northern wood
Metsä Board’s production is close to Total paperboard capacity: Folding boxboard (FBB): 1,560,000 t/a the main raw material – northern wood White kraftliner (WKL): 715,000 t/a Total pulp / BCTMP capacity: BCTMP: 750,000 t/a Chemical pulp: 910,000 t/a 24.9% ownership in Metsä Fibre, total pulp capaci
Slide 12: Financial targets and dividend policy
Financial targets and dividend policy Financial targets: Dividend policy: Comparable ROCE, %: IB net debt / comparable Dividend/net result, % EBITDA 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
Slide 13: Investments for sustainable growth and improved competitiveness
Investments for sustainable growth and improved competitiveness Kemi development programme Husum FBB capacity expansion COMPLETED EUR 110 million EUR 230 million +40,000 t/a of coated WKL +200,000 t/a of FBB Completed in 09/2023 Completed in 11/2023 New capacity fully on the market in 2025 New capac
Slide 14: Capex and depreciation
Capex and depreciation January–March 2025 Capex 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 Tako’s closure Year 2025, estimated EUR MILLION 200 • The
Slide 15: Urbanization and climate change are megatrends driving demand for fresh fibre paperboards
Urbanization and climate change are megatrends driving demand for fresh fibre paperboards Population growth, Regulation and Brand owners’ Availability of high- urbanisation and rising consumer preferences commitments to quality recycled fibre living standards drive favour fossil-free recyclable pack
Slide 16: Global need for packaging is growing
Global need for packaging is growing Global packaging market value is USD 1.175 billion and it is growing by 3.9% per year Paperboard is growing faster than all packaging Folding boxboard and foodservice board have materials on average fastest growth rates of all cartonboards +2.8%/a 2023–2028 CAGR
Slide 17: Cost structure and profit drivers
Cost structure and profit drivers
Slide 18: Cost structure
Cost structure Metsä Board’s cost structure in 2024 Q1 2025 (vs Q1 2024) Total costs EUR 1.8 billion (1.7) • Increased 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% • Total cost deflat
Slide 19: Main profit drivers and sensitivities
Main profit drivers and sensitivities Impact on EBIT, Component Unit Change approximately Folding boxboard Price / tonne +/- 10% >EUR 100 million White kraftliners Price / tonne +/- 10% >EUR 50 million FX1) USD/EUR +/- 10% EUR 80 million SEK/EUR +/- 10% EUR 45 million Pulp2) PIX price of SW/HW per t
Slide 20: Wood is the main raw material
Wood sourcing by region in 2024 Wood is the main raw material Baltic countries 10% Finland Wood usage 55% • In 2024, Metsä Board used1) 6.8 million m3 wood for its products, Sweden 35% of which 92% was certified (PEFC, FSC®) • Wood1) represents roughly 30% of Metsä Board’s total costs Wood supply •
Slide 21: 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 22: 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 23: 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 24: 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 60 700 55 650 600 50 550 45 500 40 450 35 400 350 30 300 25 250 20 200 2014 2010 2011 2012 2013 2014 2015 20
Slide 25: 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 26: Operating environment and impacts from regulation
Operating environment and impacts from regulation
Slide 27: Global annual demand for cartonboards
Global annual demand for cartonboards SBB = solid bleached board WLC FBB CUK = coated unbleached SBB CUK kraftboard white-lined chipboard folding boxboard 19 Mt 3 Mt 3 Mt FSB = foodservice board 14 Mt LPB = liquid packaging board Grey board Folding graphic boards FSB LPB 8 Mt 39 Mt 5 Mt 5 Mt Cartonb
Slide 28: Global demand for folding cartonboard
Global demand for folding cartonboard* FSB = food service board FBB = folding boxboard, SBS & CUK = other fresh fibre grades WLC = recycled grades *) including food service board, excluding liquid packaging board and grey board 28 Source: AFRY Management Consulting, November 2024 28
Slide 29: Global annual demand for containerboards
Global annual demand for containerboards Metsä Board’s linerboards are at the top of the quality pyramid – in a very niche market Coated white Uncoated white fresh fibre fresh fibre linerboard* linerboard <1 Mt 3.5 Mt White fresh fibre linerboard* White recycled Brown kraftliner Brown testliner line
Slide 30: Folding boxboard and white kraftliner capacity in Europe
Folding boxboard and white kraftliner capacity in Europe (excluding Russian and Belarusian producers) FBB producers in Europe WKL producers in Europe Total capacity 4.2 million tonnes Total capacity 2.2 million tonnes 1 400 32% 800 32% 1 200 700 600 1 000 ’000 metric tonnes ’000 metric tonnes 500 80
Slide 31: Recyclable packaging is strongly driven by regulation and brand owners' commitments
Recyclable packaging is strongly driven by regulation and brand owners’ commitments All packaging shall be recyclable by 2030 • EU Packaging and Packaging Waste Regulation sets further REGULATION (EU) 2025/40 requirements – All packaging recyclable by 2030, including reusables – Packaging waste redu
Slide 32: Packaging and packaging waste regulation (PPWR)
Packaging and packaging waste regulation (PPWR) Main objectives and status • Aims to reduce the amount of packaging waste generated in the EU, and promote reusable and recyclable packaging solutions. All packaging has to be recyclable by 2030 • Was formally adopted in 12/2024. Entered into force in
Slide 33: Regulation on Deforestation-free products (EUDR)
Regulation on Deforestation-free products (EUDR) Main objectives and status • Aims to combat deforestation and forest degradation globally • Ensures that commodities* placed on or exported from EU market do not cause deforestation or forest degradation • Creates a reporting obligation to operators t
Slide 34: Nature Restoration Regulation
Nature Restoration Regulation Main objectives and status • Aims to ensure recovery of biodiverse and resilient nature across EU • Introduces indicators for forest ecosystems to support nature restoration objectives • Entered into force on 08/2024 • Member States must prepare national restoration pla
Slide 35: Results for January–March 2025
Results for January–March 2025
Slide 36: Key financials
Key financials Change Q1/25 Q1/25 Q1/24 Q4/24 FY/24 vs Q1/24 Sales EUR, m 481 484 -1% 446 1,939 EBITDA* EUR, m 51 58 -12% 25 175 Operating result* EUR, m 23 32 -28% -4 69 % of sales* % 4.7 6.5 -0.8 3.6 Metsä Fibre’s share of EUR, m 6 -6 -3 -10 operating result* Earnings per share EUR -0.02 0.04 153%
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: Near-term outlook April–June 2025
Near-term outlook April–June 2025 • Increased uncertainty due to the US tariffs • Consumers’ cautious buying behaviour reflects 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 plann
Slide 49: ESG
ESG
Slide 50: 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 51: Forest management plan as part of Metsä Group's regenerative forestry
Forest management plan as part of Metsä Group’s regenerative forestry Forest management plan for typical forest Forest management plan at stands biodiversity hot spot* 1 2 3 4 5 More diverse Increased dead More diverse Protected valuable Habitat restoration tree species wood volumes forest structure
Slide 52: Zero fossil CO2 emissions
Metsä Board’s 1.5°C aligned Science Based target ZERO FOSSIL CO2 EMISSIONS Fossil-free production* and products by 2030 *including Scope 1 and Scope 2 market-based
Slide 53: 89% of total energy use is fossil-free
89% of total energy use is fossil-free Total energy consumed in 2024 Fuel consumption in 2024 Total 8.3 TWh Total 6.2 TWh Waste Fossil-based Oil 1 % Peat 0.3% fuels Gas 4% 11 % 7% Renewable Wood-based energy, mainly renewable Nuclear power wood-based side fuels 15 % streams 88 % 74 % In 2024, the sh
Slide 54: Metsä Board has reduced its fossil-based CO2 emissions by 56% since 2018
Metsä Board has reduced its fossil-based CO2 emissions by 56% since 2018 Target is to reduce fossil-based CO2 emissions by 100% by 2030 Fossil-based CO2 emissions, Scope 1+2 Emission allowances t CO2 Kg CO2 / t • Metsä Board has received emission allowances in 700 000 200 accordance with the EU Emis
Slide 55: 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 56: Total greenhouse gas emissions
Total greenhouse gas emissions Scope 1, 2 and 3 Total greenhouse gas emissions ca. 2 million tonnes CO2e tCO2e 1000000 43% 44% 800000 600000 400000 9% 200000 4% 0 Scope 3 Upstream Scope 2 Scope 1 Scope 3 Downstream In 2024: tCO₂e tCO₂e tCO₂e tCO₂e • Market-based indirect • Direct GHG emissions • Pur
Slide 57: The carbon footprint of packaging material depends in particular on
The carbon footprint (CO2) of packaging material depends in particular on: Energy used in Material and resource production efficiency Metsä Board uses Lightweighting reduces the 89% fossil-free energy use of fibre, energy and water in its production and generates less waste More information: The tec
Slide 58: Paperboard provides an alternative to plastics
Paperboard provides an alternative to plastics Example: PET clamshell Metsä Board Prime FBB EB cherry tomato box Raw material fossil oil-based renewable fresh wood fibre 89% fossil-free energy, Energy fossil-based energy target 100% by 2030 41% for plastic packaging 83% for fiber based packaging Rec
Slide 59: Roughly 2 million tonnes global potential for cartonboard from plastic reduction
Roughly 2 million tonnes global potential for cartonboard* from plastic reduction in selected food categories *excluding liquid packaging board and cupstock Fruit, vegetables, bakery, confectionery total size 2.5Mt1) Potential plastic replacement in selected food categories Plastic represents roughl
Slide 60: Fresh and recycled fibres are equally good in terms of the circular economy
Fresh and recycled fibres are equally good in terms of the circular economy 83% 100% Fresh fibre is needed in the recycling loop to of paper and recovery of wood fibres paperboard is not possible maintain quality and packaging because part of the fibre strength, and to keep is recycled is lost durin
Slide 61: 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 62: Innovation and R&D
Innovation and R&D Ny! Metsa
Slide 63: Our R&D work aims to resource efficiency and reduce carbon footprint of packaging material
Our R&D work aims to resource efficiency and reduce carbon footprint of packaging material Light and resource efficient Developing barrier boards as paperboards an alternative to plastics 63
Slide 64: High-yield pulp makes the difference between folding boxboard and other grades
High-yield pulp makes the difference between folding boxboard and other grades Benefits of lightweighting: Lightweight yet Improved Improved strong and stiff yield sustainability = = = paperboard for cost-efficient, more cartons per tonne less natural resources used, sustainable and sturdy lower car
Slide 65: Resource efficiency in production
Wood consumption Reduced water Resource depends on right use through a efficiency in fibre-mix. closed water production Less wood circulation and needed in the reduction of production of high- process water yield pulp New technology, Resource and development of operational energy recovery efficiency
Slide 66: As part of Metsä Group, we are looking for new growth opportunities
As part of Metsä Group, we are looking for new growth opportunities Metsä Spring* invests expertise and financial resources into initiatives with the ambition to reshape the forest-based bioeconomy Wood-based 3D Wood-based textile Wood composite Bioactive products products fibres products from birch
Slide 67: Owners and management
3 * Owners and management
Slide 68: 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 69: Metsä Board Corporate Management Team
Metsä Board Corporate Management Team Esa Kaikkonen Henri Sederholm Markku Leskelä CEO CFO SVP, Development Chair of CMT since 2025 Member of CMT since 2021 Member of CMT since At Metsä Group since 1998 At Metsä Group since 2003 October 2021 Shares: 49,078 Shares: 67,162 At Metsä Group since 1993 Sh
Slide 70: Katri Sundström, Vice President, IR
Katri Sundström Vice President, IR, Metsä Board +358 10 462 0101 katri.sundstrom@metsagroup.com