M-real's operating result excluding non-recurring items for the first half of 2010 EUR 82 million
M-real Corporation Interim Report on 5 August 2010 at 12:00 EET
M-real's operating result excluding non-recurring items for the first half of
2010 EUR 82 million
Result for the first half of 2010
* Sales EUR 1.278 million (Q1-Q2/2009: 1.208)
* Operating result excluding non-recurring items EUR 82 million (-135).
Operating result including non-recurring items EUR 84 million (-191)
* Result before taxes excluding non-recurring items EUR 39 million (-145).
Result before taxes including non-recurring items EUR 25 million (-212)
* Earnings per share from continuing operations excluding non-recurring items
EUR 0.08 (-0.42) and including non-recurring items EUR 0.03 (-0.61)
Result for the second quarter
* Sales EUR 676 million (Q1/2010: 602)
* Operating result excluding non-recurring items EUR 43 million (39). Operating
result including non-recurring items EUR 35 million (49)
* Result before taxes excluding non-recurring items EUR 24 million (15). Result
before taxes including non-recurring items EUR 0 million (25)
* Earnings per share from continuing operations excluding non-recurring items
EUR 0.05 (0.03) and including non-recurring items EUR -0.03 (0.06)
Events during the second quarter of 2010
* M-real's market leadership in folding boxboard strengthened further.
* M-real signed a MoU on the partial divestment of the Reflex mill to Metsä
Tissue Corporation.
* M-real completed negotiations on the reduction of 220 jobs in the Speciality
Papers business area.
* M-real continued to increase prices of its main products.
* M-real announced to redeem early its remaining bonds, maturing in December
2010.
Events after the period
* In July, M-real finalised the consultation process related to the permanent
closure of the Alizay pulp mill.
“M-real's profit improvement continued in the second quarter. Demand continued
to improve, and we increased the prices of all our main products. We will
actively carry out price increases also in the future to cover the higher fibre
costs. The profit improvement measures in the paper business are progressing,
and we expect them to be completed as planned.”
Mikko Helander, CEO
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| KEY FIGURES | 2010 | 2010 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| | Q2 | Q1 | Q2 | Q1-Q2 | Q1-Q2 | |
--------------------------------------------------------------------------------
| Sales, EUR million | 676 | 602 | 585 | 1,278 | 1,208 | 2,432 |
--------------------------------------------------------------------------------
| EBITDA, EUR million | 61 | 82 | -23 | 143 | -71 | 88 |
--------------------------------------------------------------------------------
| excl. non-recurring | 77 | 72 | -20 | 149 | -33 | 44 |
| items, EUR million | | | | | | |
--------------------------------------------------------------------------------
| Operating result, EUR | 35 | 49 | -73 | 84 | -191 | -267 |
| million | | | | | | |
--------------------------------------------------------------------------------
| excl. non-recurring | 43 | 39 | -70 | 82 | -135 | -150 |
| items, EUR million | | | | | | |
--------------------------------------------------------------------------------
| Result before taxes | | | | | | |
--------------------------------------------------------------------------------
| from continuing | 0 | 25 | -97 | 25 | -212 | -358 |
| operations, EUR million | | | | | | |
--------------------------------------------------------------------------------
| excl. non-recurring | 24 | 15 | -83 | 39 | -145 | -230 |
| items, EUR million | | | | | | |
--------------------------------------------------------------------------------
| Result for the period | | | | | | |
--------------------------------------------------------------------------------
| from continuing | -8 | 19 | -93 | 11 | -198 | -331 |
| operations, EUR million | | | | | | |
--------------------------------------------------------------------------------
| from discontinued | 0 | 0 | -2 | 0 | -12 | -23 |
| operations, EUR million | | | | | | |
--------------------------------------------------------------------------------
| Total, EUR million | -8 | 19 | -95 | 11 | -210 | -354 |
--------------------------------------------------------------------------------
| Result per share | | | | | | |
--------------------------------------------------------------------------------
| from continuing | -0.03 | 0.06 | -0.29 | 0.03 | -0.61 | -1.02 |
| operations, EUR | | | | | | |
--------------------------------------------------------------------------------
| from discontinued | 0.00 | 0.00 | -0.01 | 0.00 | -0.04 | -0.07 |
| operations, EUR | | | | | | |
--------------------------------------------------------------------------------
| Total, EUR | -0.03 | 0.06 | -0.30 | 0.03 | -0.65 | -1.09 |
--------------------------------------------------------------------------------
| Result per share | | | | | | |
--------------------------------------------------------------------------------
| excl. non-recurring | 0.05 | 0.03 | -0.24 | 0.08 | -0.42 | -0.66 |
| items, EUR | | | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | -3.1 | 7.9 | -32.1 | 2.4 | -31.9 | -28.6 |
--------------------------------------------------------------------------------
| excl. non-recurring | 6.8 | 3.6 | -27.2 | 5.3 | -22.0 | -18.3 |
| items, % | | | | | | |
--------------------------------------------------------------------------------
| Return on capital | 3.8 | 9.1 | -10.2 | 6.1 | -11.5 | -8.9 |
| employed, % | | | | | | |
--------------------------------------------------------------------------------
| excl. non-recurring | 8.1 | 7.3 | -8.3 | 7.3 | -7.3 | -4.5 |
| items, % | | | | | | |
--------------------------------------------------------------------------------
| Equity ratio at end of | 31.1 | 32.7 | 29.4 | 31.1 | 29.4 | 29.6 |
| period, % | | | | | | |
--------------------------------------------------------------------------------
| Gearing ratio at end of | 140 | 121 | 168 | 140 | 168 | 153 |
| period, % | | | | | | |
--------------------------------------------------------------------------------
| Net gearing ratio at end | 89 | 86 | 116 | 89 | 116 | 84 |
| of period, % | | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing net | 845 | 821 | 1,276 | 845 | 1,276 | 777 |
| liabilities, EUR million | | | | | | |
--------------------------------------------------------------------------------
| Gross investments, EUR | 10 | 7 | 16 | 17 | 32 | 73 |
| million | | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1 000 tonnes | | | | | | |
--------------------------------------------------------------------------------
| Paper businesses | 278 | 311 | 269 | 589 | 590 | 1,132 |
--------------------------------------------------------------------------------
| Consumer Packaging | 372 | 321 | 296 | 693 | 570 | 1,212 |
--------------------------------------------------------------------------------
| Personnel at the end of | | | | | | |
| period | | | | | | |
--------------------------------------------------------------------------------
| in continuing operations | 4,946 | 4,796 | 6,080 | 4,946 | 6,080 | 4,903 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA = Earnings before interest, taxes, depreciation and impairment |
| charges |
--------------------------------------------------------------------------------
Result for April-June compared to the previous quarter
M-real's sales totalled EUR 676 million (Q1/2010: 602). Comparable sales were up
12.3 per cent. The operating result was EUR 35 million (49), and the operating
result excluding non-recurring items was EUR 43 million (39).
A net total of EUR -8 million was recognised as non-recurring items. The most
significant items were:
* EUR 16 million cost provision in the Speciality Papers business area, related
to the planned closure of two paper machines at the Reflex mill and to the
reorganisation of the Reflex and Gohrsmühle organisations
* Reversal of a EUR 8 million impairment loss under “Other operations”,
concerning the agreed sale of the Kangas paper machine 2, which remained in
M-real's ownership after the Graphic Papers transaction
In the previous quarter, a non-recurring income item of EUR 12 million was
recognised under “Other operations” in connection with IT arrangements. EUR 10
million of this was allocated to the operating result and EUR 2 million to the
result from discontinued operations.
The operating result excluding non-recurring items was up from the previous
quarter thanks to higher delivery volumes, an increase in the average sales
prices, and strengthening of the US dollar and British pound against euro. The
operating result was weakened by the investment shutdown at the Husum pulp mill,
the maintenance shutdowns and strikes at the Alizay paper mill, as well as the
additional costs caused by the stevedore strike in Finland.
The total paper business delivery volume was 278,000 tonnes for April-June
(311,000). Deliveries by the Consumer Packaging business area totalled 372,000
tonnes (321,000).
Finance income and costs totalled EUR -17 million (-22). Exchange differences
from accounts receivable, trade payables, financial items and the valuation of
currency hedging were EUR 0 million (-6). Net interest and other finance income
and costs stood at EUR -17 million (-16). Other finance costs include EUR 0
million of valuation gains on interest rate hedges (valuation gain of 0).
In April-June, the result from continuing operations before taxes was EUR 0
million (25). The result includes an impairment loss of EUR -16 million, related
to M-real's holding in Myllykoski Paper Oy, reported as a non-recurring item in
“Share of results in associated companies” after the operating result. The
result from continuing operations before taxes, excluding non-recurring items,
was EUR 24 million (15). Income taxes, including the change in deferred tax
liabilities, totalled EUR 8 million (6).
Earnings per share were EUR -0.03 (0.06). Earnings per share from continuing
operations, excluding non-recurring items, were EUR 0.05 (0.03). Return on
equity was -3.1 per cent (7.9), and 6.8 per cent (3.6) excluding non-recurring
items. Return on capital employed was 3.8 per cent (9.1), and, excluding
non-recurring items, 8.1 per cent (7.3).
Result for January-June compared with the corresponding period last year
M-real's sales totalled EUR 1,278 million (1,208). Comparable sales were up 17.9
per cent. The operating result was EUR 84 million (-191), and the operating
result excluding non-recurring items was EUR 82 million (-135).
A net total of EUR 2 million was recognised as non-recurring items in the
operating result for January-June, the most significant items being:
* EUR 16 million cost provision in the Speciality Papers business area, related
to the planned closure of two paper machines at the Reflex mill and to the
reorganisation of the Reflex and Gohrsmühle organisations
* EUR 10 million income item in operating profit under “Other operations”, as
well as a EUR 2 million income item allocated to the result of discontinued
operations, both of which were related to IT arrangements
* EUR 8 million reversal of impairment loss under “Other operations”, concerning
the agreed sale of the Kangas paper machine 2, which remained in M-real's
ownership after the Graphic Papers transaction
The non-recurring items of the corresponding period in the previous year were
EUR -56 million net.
Operating profit excluding non-recurring items compared with the corresponding
period last year was improved by increased delivery volumes as a result of
recovery in overall demand, higher pulp price, implemented cost savings and
lower raw material costs. The operating result was weakened by the investment
shutdown at the Husum pulp mill, the stevedore strike in Finland, and
strengthening of the Swedish krona against euro.
The total paper business delivery volume in January-September was 589,000 tonnes
(590,000). The deliveries of Consumer Packaging amounted to 693,000 tonnes
(570,000).
Finance income and costs in the period totalled EUR -39 million (-8). The
finance income of the corresponding period the previous year included a profit
of some EUR 31 million from a partial repurchase of M-real's own bonds. Exchange
differences from accounts receivable, trade payables, financial items and the
valuation of currency hedging were EUR -6 million (2). Net interest and other
finance income and costs stood at EUR -33 million (-10). Other finance costs
include EUR 0 million of valuation gains on interest rate hedges (valuation gain
of 9).
The period's result from continuing operations before taxes was EUR 25 million
(-212). The result includes an impairment loss of EUR -16 million, related to
M-real's holding in Myllykoski Paper Oy, reported as a non-recurring item in
“Share of results in associated companies” after the operating result. The
result from continuing operations before taxes, excluding non-recurring items,
was EUR 39 million (-145). Income taxes, including the change in deferred tax
liabilities, came to EUR 14 million (-14).
Earnings per share were EUR 0.03 (-0.65). Earnings per share from continuing
operations, excluding non-recurring items, were EUR 0.08 (-0.42). Return on
equity was 2.4 per cent (-31.9), and excluding non-recurring items, 5.3 per
cent (-22.0). Return on capital employed was 6.1 per cent (-11.5), and,
excluding non-recurring items, 7.3 per cent (-7.3).
Personnel
At the end of June, the company had 4,946 employees (31 December 2009: 4,903),
of which 2,019 (1,824) worked in Finland. In January-June, M-real employed an
average of 4,842 people (2009: 5,913). The headcount in January-November 2009
included 30 per cent of Metsä-Botnia's employees.
Investments
Gross investments in January-June totalled EUR 17 million (2009: 32). In 2009,
the January-June investments included a EUR 6 million share of Metsä-Botnia's
investments, based on M-real's 30 per cent share of ownership and Metsä-Botnia's
consolidation method used until 8 December 2009.
Structural change
In December 2009, M-real announced the launch of a new profit improvement
programme for 2010. The most significant measures included the plans to
permanently shut down the Alizay pulp mill in France and close two speciality
paper machines at Reflex, Germany; the plan to streamline the organisation and
management model in M-real Zanders; a EUR 22 million investment at the Husum
mill to improve its energy efficiency; and a new EUR 20 million internal profit
improvement programme covering all of M-real's business areas. Once implemented,
the planned measures are expected to improve M-real's annual operating result by
EUR 80 million with full effect from 2011 onwards. In 2010, the planned measures
are expected to have a EUR 40 million positive impact on profit. The combined
positive profit impact of these measures and the previous years' profit
improvement programmes are expected to be approximately EUR 100 million in 2010.
In May, M-real released its future plans for the Reflex mill in Germany. The
mill will be developed based on a Paper Park concept, the target being to find
industrial partners to the mill site and thus create new jobs. At the same time,
the company announced that the negotiations on cutting 220 jobs at the M-real
Zanders mills had been concluded.
In June, M-real announced it had signed a Memorandum of Understanding on the
partial divestment of the Reflex mill to Metsä Tissue Corporation for
approximately EUR 10 million. The planned divestment includes paper machine 5,
the real estate related to it and certain assets belonging to the site's
infrastructure. Based on preliminary estimates, Metsä Tissue would employ around
50 people at the Reflex mill, which will reduce the need for previously agreed
job cuts correspondingly. If the arrangement goes ahead as planned, M-real will
recognise a positive non-recurring item of some EUR 15 million in the operating
profit of Speciality Papers. Once implemented, the arrangement is expected to
have a positive cash flow impact of some EUR 10 million taken into account
certain investments needed in the Premium Papers operations. The arrangement is
scheduled for completion by the end of 2010.
M-real's structural change from a paper company to become more clearly a
packaging material producer has proceeded according to plans. The strategic
review of the paper business continues.
Financing
At the end of June, M-real's equity ratio was 31.1 per cent (31 December 2009:
29.6) and the gearing ratio was 140 per cent (153). The net gearing ratio was 89
(84). Some of M-real's loan agreements set a 120 per cent limit on the
company's net gearing ratio and a 30 per cent limit on the equity ratio.
Calculated as defined in the loan agreements, the net gearing ratio at the end
of June was approximately 67 per cent (63) and the equity ratio some 37 per cent
(35).
The change in the fair value of investments available for sale was approximately
EUR +20 million, mainly based on the increase in the fair value of the Pohjolan
Voima shares.
At the end of June net interest-bearing liabilities totalled EUR 845 million
(777). Of these, foreign-currency-denominated loans accounted for 11 per cent,
floating-rate loans for 79 per cent and fixed-rate loans for the rest. At the
end of June, the average interest rate on loans was 5.5 per cent and the average
maturity of long-term loans 2.9 years. The interest rate maturity of loans was
9.6 months at the end of June. During the period, the interest rate maturity has
varied between 6 and 10 months.
Cash flow from operating activities amounted to EUR 0 million (Q1-Q2/2009: -36).
Working capital was up by EUR 71 million (down 74).
At the end of June, an average of 4.8 months of the net foreign currency
exposure was hedged. The degree of hedging varied between 4 and 6 months during
the period. Approximately 80 per cent of the non-euro-denominated equity was
hedged at the end of June.
Liquidity continues at a good level. At the end of June, liquidity was EUR 510
million, of which EUR 144 million consisted of undrawn pension premium (TyEL)
loans and EUR 366 million of liquid assets and investments. To meet its
short-term financing needs, the Group also had at its disposal uncommitted
domestic and foreign commercial paper programmes and credit facilities amounting
to about EUR 520 million.
In January, M-real redeemed early a EUR 250 million item of the bond maturing in
December 2010 at a 100 per cent redemption price, according to the terms of the
bond. At the end of June, the company announced it would redeem the remaining
EUR 90.05 million. The early redemption took place on 30 July 2010 and the
redemption price was 100 per cent of the par value according to the terms of the
notes. In June 2010, M-real drew pension loans (TyEL) worth EUR 135 million with
a maturity of ten years. With these measures, M-real extends the maturity
profile of its loans and strengthens its liquidity.
Shares
In January-June, the highest price for M-real's B share on the NASDAQ OMX
Helsinki was EUR 3.26, the lowest EUR 1.46, and the average price EUR 2.21. At
the end of June, the price of the B share was EUR 2.90. At the end of 2009, the
price of the B share was EUR 1.53, while the average price in 2009 was EUR 0.66.
The trading volume of B shares was EUR 455 million, 71 per cent of the share
capital. The market value of the A and B shares totalled EUR 968 million at the
end of June.
Metsäliitto Cooperative owned 38.8 per cent of the shares at the end of June.
The voting rights conferred by these shares amounted to 60.5 per cent.
International investors held 21 per cent of the shares.
On 8 April 2010, the holdings of Norway's Central Bank (Norges Bank) in M-real
dropped to 4.4 per cent of the share capital and 1.4 per cent of the voting
rights.
The company does not hold any of its own shares.
Board of Directors and Auditors
The Annual General Meeting in March confirmed the number of members of the
M-real Board of Directors as nine (9). The Annual General Meeting elected as
members of the Board of Directors Mikael Aminoff, M.Sc. (Forestry), Martti
Asunta, M. Sc. (Forestry), Kari Jordan, vuorineuvos (Finnish honorary title);
Kirsi Komi, LL.M.; Kai Korhonen, M.Sc. (Eng); Liisa Leino, MA (Education); Juha
Niemelä, vuorineuvos (Finnish honorary title); Antti Tanskanen, Minister; and
Erkki Varis, M.Sc. (Eng). The term of office of the Board members expires at the
end of the next Annual General Meeting.
At its organising meeting, the Board of Directors elected Kari Jordan as its
Chairman and Martti Asunta as its Vice Chairman. The Board further resolved to
organise the Board committees as follows: The members of the Audit Committee are
Kirsi Komi, Kai Korhonen, Antti Tanskanen and Erkki Varis. The members of the
Nomination and Compensation Committee are Mikael Aminoff, Martti Asunta, Kari
Jordan, Liisa Leino and Juha Niemelä.
The Annual General Meeting elected Authorised Public Accountants
PricewaterhouseCoopers Oy as M-real's auditor. The term of office of the auditor
expires at the end of the next Annual General Meeting.
Events after the period
On 16 December 2009, M-real announced its plan to permanently shut down the
Alizay pulp mill as a part of the 2010 profit improvement programme worth EUR 80
million. M-real also launched consultation process targeting the possible
closure of the pulp mill. M-real concluded the consultation process in July,
unable to find the necessary economic preconditions for continuing the pulp
mill's operations. The mill is shut down permanently, resulting in the reduction
of a maximum of 89 jobs. As a result of the concluded consultation process,
M-real will recognise an additional non-recurring cost provision of some EUR 4
million in the 2010 third-quarter operating result of the Market Pulp and Energy
business area.
In July, M-real exercised its option to purchase the former Kangas paper mill
real estate and land area from Sappi for a price of EUR 13 million. The deal was
part of an agreement with which M-real and Sappi settled the issues still open
related to the divestment of M-real's Graphic Papers business area in 2008.
M-real plans to develop the Kangas real estate, located near the centre of
Jyväskylä, jointly with the planning authorities and potential other partners.
Near-term outlook
The demand for board is expected to remain good in the third quarter. The prices
of folding boxboard and liner were raised in the first half of the year. In the
second quarter, the average price of folding boxboard was around 4 to 5 per cent
higher than the 2009 year-end price. The average price of liner was up some 8
per cent from the end of 2009. Actions to increase the prices of folding
boxboard and liner will continue, and are expected to result in a slight
increase in average prices by the end of the third quarter.
The demand for uncoated fine paper seems to continue strong. In order to
compensate for the higher fibre costs, prices were raised by more than 10 per
cent in the first half of the year. Price increase actions will continue, and
prices are expected to be somewhat higher at the end of the third quarter
compared to the end of the second quarter.
Speciality Papers business area's delivery volume is expected to increase in the
third quarter. The prices of speciality papers have been raised over 5 per cent
in recent months. The positive impact of this was seen partially in the second
quarter, but the full impact will be felt in the second half of the year.
Actions to increase prices continue.
The worldwide availability of pulp has improved but is still tight. The average
price of pulp is expected to continue to increase in the third quarter compared
to the second quarter.
In December 2009, M-real launched the EUR 80 million profit improvement
programme for 2010. The decreasing trend in costs will have an impact on the
business areas, as well as “Other operations”.
The price pressure on wood raw material has increased, and wood costs are
expected to increase towards the end of the year. The average total costs for
other factors of production, excluding pulp, are not forecasted to increase
considerably in 2010.
Taking the factors mentioned above into account, M-real's 3Q 2010 operating
result excluding non-recurring items is expected to improve from 2Q 2010.
Near-term business risks
Despite several positive signs, there is still a risk of the global economic
recovery slowing down or coming to a standstill and of the demand for board and
paper products, which has partially picked up, experiencing another downturn.
Following the positive development in the demand for pulp and the increase in
pulp prices, M-real has announced significant price increases in its main
grades. There is however a risk of the company being unable to implement the
increases as planned.
The production of M-real's paper mills may have to be curtailed more than
expected due to the short-fibre pulp availability problems.
No significant changes in the costs of production factors are expected this
year. However, there is a risk of cost levels changing rapidly if, for example,
the price of oil should increase.
Because the forward-looking estimates and statements about these financial
statements are based on current plans and estimates, they contain risks and
other uncertainty factors that may cause the results to differ from the
statements concerning them. In the short term, M-real's result will be
particularly impacted by the price of, and demand for, finished products, raw
material costs, the price of energy and the exchange rate development of the
euro. More information about long-term risk factors can be found on pages 37-38
in M-real's 2009 annual report.
M-REAL CORPORATION
Further information:
Matti Mörsky, CFO, tel. 010 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. 010 465
4335
More information available starting at 1 p.m. on 5 August 2010. A telephone
conference for investors and analysts in English starts at 3 p.m.
BUSINESS AREAS AND MARKET TRENDS
Consumer Packaging business area
--------------------------------------------------------------------------------
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Consumer | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
| Packaging | | | | | | | | |
--------------------------------------------------------------------------------
| Sales, EUR | 310 | 257 | 255 | 250 | 237 | 567 | 463 | 968 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, EUR | 51 | 52 | 50 | 51 | 24 | 103 | 39 | 140 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | 51 | 52 | 51 | 51 | 25 | 103 | 44 | 146 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Operating result, | 38 | 39 | 33 | 31 | 4 | 77 | -13 | 51 |
| EUR million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | 38 | 39 | 34 | 31 | 5 | 77 | 4 | 69 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Return on capital | 26.1 | 27.9 | 20.5 | 16.4 | 2.1 | 26.7 | -3.4 | 7.5 |
| employed, % | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | 26.1 | 27.9 | 21.0 | 16.4 | 2.5 | 26.7 | 1.0 | 10.2 |
| non-recurring | | | | | | | | |
| items, % | | | | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1,000 | 372 | 321 | 327 | 315 | 296 | 693 | 570 | 1,212 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Production, 1,000 | 363 | 342 | 342 | 323 | 275 | 705 | 567 | 1,232 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at the | 1,76 | 1,52 | 1,53 | 1,54 | 1,69 | 1,761 | 1,690 | 1,533 |
| end of period | 1 | 9 | 3 | 5 | 0 | | | |
--------------------------------------------------------------------------------
Result for April-June compared to the previous quarter
The operating result for Consumer Packaging, excluding non-recurring items,
remained stable, totalling EUR 38 million (Q1/2010:39). The result was weakened
by logistics costs, which were higher than normal due to the stevedore strike in
the previous quarter. The result was boosted by an increase in delivery volumes
and higher average price as a result of price increases and weaker euro. Demand
continued to be very strong.
The result does not include non-recurring items. The result for the previous
quarter did not include non-recurring items.
The deliveries of European folding boxboard producers were 6 per cent higher
compared with the previous quarter. Consumer Packaging's deliveries of folding
boxboard were up by 19 per cent.
Result for January-June compared with the corresponding period last year
The operating result for Consumer Packaging, excluding non-recurring items,
improved from the corresponding period last year and totalled EUR 77 million
(4). The most significant factor boosting the result was the higher delivery
volume resulting from demand picking up.
The result does not include non-recurring items. The result for the
corresponding period last year included non-recurring items of EUR -17 million,
mainly related to the closure of Metsä-Botnia's Kaskinen mill.
The deliveries of European folding boxboard producers increased by 15 per cent
year-over-year. Consumer Packaging's deliveries of folding boxboard were up by
19 per cent.
Office Papers business area
--------------------------------------------------------------------------------
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Office Papers | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
--------------------------------------------------------------------------------
| Sales, EUR | 153 | 160 | 132 | 133 | 131 | 313 | 278 | 543 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, EUR | 6 | 11 | 6 | 0 | -3 | 17 | -5 | 1 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | 6 | 11 | 13 | 0 | -3 | 17 | -5 | 8 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Operating result, | -4 | 0 | -54 | -15 | -18 | -4 | -35 | -104 |
| EUR million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | -4 | 0 | 0 | -13 | -18 | -4 | -35 | -48 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Return on capital | -4.1 | 0.1 | -47. | -13. | -13. | -2.0 | -12.9 | -21.2 |
| employed, % | | | 5 | 0 | 7 | | | |
--------------------------------------------------------------------------------
| excl. | -4.1 | 0.1 | 0.0 | -11. | -13. | -2.0 | -12.9 | -9.8 |
| non-recurring | | | | 4 | 7 | | | |
| items, % | | | | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1,000 | 212 | 237 | 198 | 199 | 190 | 449 | 393 | 790 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Production, 1,000 | 209 | 235 | 213 | 181 | 202 | 444 | 401 | 795 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at the | 1,22 | 1,32 | 1,37 | 1,40 | 1,42 | 1,225 | 1,428 | 1,374 |
| end of period | 5 | 0 | 4 | 7 | 8 | | | |
--------------------------------------------------------------------------------
Result for April-June compared to the previous quarter
The operating result excluding non-recurring items for Office Papers decreased
from the previous quarter and was EUR -4 million (Q1/2010: 0). The result was
weakened by the shutdown caused by the recovery boiler investment at the Husum
pulp mill, as well as the maintenance shutdowns, strikes and short-fibre pulp
availability problems at the Alizay paper mill. The result improved thanks to a
higher average price as a result of the price increase actions.
The result does not include non-recurring items. The result for the previous
quarter did not include non-recurring items.
Total deliveries by European uncoated fine paper producers were up by 1 per cent
compared to the previous quarter. The delivery volumes of Office Papers
decreased by 11 per cent, mainly due to the Alizay paper mill maintenance
shutdown, strikes and problems with short-fibre pulp availability.
Result for January-June compared with the corresponding period last year
The operating result for Office Papers, excluding non-recurring items, improved
from the corresponding period last year and totalled EUR -4 million (-35). The
result improved thanks to higher delivery volumes resulting from the recovery in
demand. Higher fibre and energy costs, in turn, weakened the result.
The result does not include non-recurring items. The result for the
corresponding period last year did not include non-recurring items.
Total deliveries by European uncoated fine paper producers rose by 12 per cent
year-over-year. The delivery volume of Office Papers increased by 14 per cent.
Speciality Papers business area
--------------------------------------------------------------------------------
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Speciality Papers | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
| | | | | | | | | |
--------------------------------------------------------------------------------
| Sales, EUR | 80 | 82 | 73 | 80 | 82 | 162 | 199 | 352 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, EUR | -18 | -4 | -8 | -7 | -17 | -22 | -50 | -65 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | -2 | -4 | -2 | -8 | -16 | -6 | -21 | -31 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Operating result, | -21 | -6 | -78 | -10 | -23 | -27 | -63 | -151 |
| EUR million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | -5 | -6 | -6 | -11 | -22 | -11 | -34 | -51 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Return on capital | -124 | -30. | -215 | -16. | -32. | -87.6 | -37.6 | -62.1 |
| employed, % | .9 | 5 | .3 | 0 | 2 | | | |
--------------------------------------------------------------------------------
| excl. | -26. | -30. | -16. | -17. | -30. | -32.8 | -19.8 | -20.3 |
| non-recurring | 4 | 5 | 5 | 6 | 4 | | | |
| items, % | | | | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1,000 | 66 | 74 | 68 | 76 | 80 | 140 | 198 | 342 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Production, 1,000 | 73 | 78 | 71 | 75 | 74 | 151 | 173 | 319 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at the | 1,35 | 1,37 | 1,38 | 1,56 | 1,74 | 1,358 | 1,742 | 1,389 |
| end of period | 8 | 3 | 9 | 3 | 2 | | | |
--------------------------------------------------------------------------------
Result for April-June compared to the previous quarter
The operating result excluding non-recurring items for Speciality Papers
improved compared to the previous quarter and was EUR -5 million (Q1/2010: -6)
The result was boosted by higher average price due to price increase actions and
weaker euro. The result was weakened by lower delivery volumes caused by poor
availability of short-fibre pulp as well as higher pulp prices.
A non-recurring item of EUR -16 million related to the shutdown of the two paper
machines at the Reflex mill and the reorganisation of the Reflex and Gohrsmühle
organisations was recognised in the result. The result for the previous quarter
did not include non-recurring items.
The delivery volume of Speciality Papers fell by 11 per cent.
Result for January-June compared with the corresponding period last year
The operating result for Office Papers, excluding non-recurring items, improved
from the corresponding period last year and totalled EUR -11 million (-34). The
result was improved by the implemented price increases and cost savings. It was
weakened by the higher price of pulp.
The result includes non-recurring items of EUR -16 million. The result for the
corresponding period last year included non-recurring items of EUR -29 million
related to the closure of the Hallein paper mill.
The delivery volume of Speciality Papers fell by 29 per cent. This figure
includes the discontinuation of standard coated fine paper production.
Market Pulp and Energy business area
--------------------------------------------------------------------------------
| | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Market Pulp and | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Sales, EUR | 126 | 95 | 126 | 132 | 116 | 221 | 250 | 508 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA, EUR | 23 | 14 | -1 | -6 | -10 | 37 | -14 | -21 |
| million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | 23 | 14 | 2 | -6 | -10 | 37 | -13 | -17 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Operating result, | 16 | 9 | -39 | -15 | -19 | 25 | -37 | -91 |
| EUR million | | | | | | | | |
--------------------------------------------------------------------------------
| excl. | 16 | 9 | -9 | -14 | -19 | 25 | -31 | -54 |
| non-recurring | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Return on capital | 11.9 | 6.1 | -22. | -7.3 | -9.2 | 9.0 | -8.8 | -12.8 |
| employed, % | | | 8 | | | | | |
--------------------------------------------------------------------------------
| excl. | 11.9 | 6.1 | -5.2 | -6.9 | -9.2 | 9.0 | -7.5 | -7.7 |
| non-recurring | | | | | | | | |
| items, % | | | | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1,000 | 194 | 161 | 246 | 295 | 327 | 355 | 614 | 1,155 |
| tonnes | | | | | | | | |
--------------------------------------------------------------------------------
| Personnel at the | 24 | 24 | 18 | 19 | 19 | 24 | 19 | 18 |
| end of period | | | | | | | | |
--------------------------------------------------------------------------------
Result for April-June compared to the previous quarter
The operating result for Market Pulp and Energy, excluding non-recurring items,
improved compared with the previous quarter and was EUR 16 million (Q1/2010: 9).
The result was improved by higher pulp prices and increased delivery volumes
resulting from strong demand.
The result does not include non-recurring items. The result for the previous
quarter did not include non-recurring items.
Result for January-June compared with the corresponding period last year
The operating result of Market Pulp and Energy, excluding non-recurring items,
improved from the corresponding period last year and totalled EUR 25 million
(-31). The result improved especially thanks to higher pulp prices. Moreover,
the comparable delivery volume increased considerably. Last year's deliveries
included Metsä-Botnia's external deliveries.
The result does not include non-recurring items. The result for the
corresponding period last year included non-recurring items of EUR -6 million,
mainly related to the closure of Metsä-Botnia's Kaskinen mill.
--------------------------------------------------------------------------------
| Condensed consolidated statement of comprehensive | | | |
| income | | | |
--------------------------------------------------------------------------------
| | 2010 | 2009 | | 2009 | 2010 | 2010 |
--------------------------------------------------------------------------------
| EUR million | Q1-Q | Q1-Q | Chan | | Q1 | Q2 |
| | 2 | 2 | ge | | | |
--------------------------------------------------------------------------------
| Continuing operations | | | | | | |
--------------------------------------------------------------------------------
| Sales | 1,27 | 1,20 | 70 | 2,432 | 602 | 676 |
| | 8 | 8 | | | | |
--------------------------------------------------------------------------------
| Other operating income | 32 | 61 | -29 | 252 | 16 | 16 |
--------------------------------------------------------------------------------
| Operating expenses | -1,2 | -1,3 | 139 | -2,597 | -547 | -654 |
| | 01 | 40 | | | | |
--------------------------------------------------------------------------------
| Share of results in | 34 | 0 | 34 | 2 | 11 | 23 |
| associated companies *) | | | | | | |
--------------------------------------------------------------------------------
| Depreciation and impairment | -59 | -120 | 61 | -356 | -33 | -26 |
| losses | | | | | | |
--------------------------------------------------------------------------------
| Operating result | 84 | -191 | 275 | -267 | 49 | 35 |
--------------------------------------------------------------------------------
| % of sales | 6.6 | -15. | | -11.0 | 8.1 | 5.2 |
| | | 8 | | | | |
--------------------------------------------------------------------------------
| Share of results in | -20 | -13 | -7 | -16 | -2 | -18 |
| associated companies | | | | | | |
--------------------------------------------------------------------------------
| Net exchange gains and | -6 | 2 | -8 | 5 | -6 | 0 |
| losses | | | | | | |
--------------------------------------------------------------------------------
| Other net financial items | -33 | -10 | -23 | -80 | -16 | -17 |
--------------------------------------------------------------------------------
| Result before income tax | 25 | -212 | 237 | -358 | 25 | 0 |
--------------------------------------------------------------------------------
| % of sales | 2.0 | -17. | | -14.7 | 4.2 | 0.0 |
| | | 5 | | | | |
--------------------------------------------------------------------------------
| Income taxes | -14 | 14 | -28 | 27 | -6 | -8 |
--------------------------------------------------------------------------------
| Result for the period from | 11 | -198 | 209 | -331 | 19 | -8 |
| continuing operations | | | | | | |
--------------------------------------------------------------------------------
| % of sales | 0.9 | -16. | | -13.6 | 3.2 | -1.2 |
| | | 4 | | | | |
--------------------------------------------------------------------------------
| Discontinued operations | | | | | | |
--------------------------------------------------------------------------------
| Result from discontinued | 0 | -12 | 12 | -23 | 0 | 0 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Result for the period | 11 | -210 | 221 | -354 | 19 | -8 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | -10 | 11 | -21 | 26 | -5 | -5 |
--------------------------------------------------------------------------------
| Available for sale financial | 20 | -120 | 140 | -115 | 16 | 4 |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Translation differences | 6 | 4 | 2 | 5 | 2 | 4 |
--------------------------------------------------------------------------------
| Share of results in | 3 | | 3 | | 2 | 1 |
| associated companies | | | | | | |
--------------------------------------------------------------------------------
| Income tax relating to | 2 | 28 | -26 | 27 | 0 | 2 |
| components of other | | | | | | |
| comprehensive income | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive income, | 21 | -77 | 98 | -57 | 15 | 6 |
| net of tax | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | 32 | -287 | 319 | -411 | 34 | -2 |
| for the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result for the period | | | | | | |
| attributable to | | | | | | |
--------------------------------------------------------------------------------
| Shareholders of parent | 11 | -212 | 223 | -358 | 19 | -8 |
| company | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling interests | 0 | 2 | -2 | 4 | 0 | 0 |
--------------------------------------------------------------------------------
| Total comprehensive income | | | | | | |
| for the period attributable | | | | | | |
| to | | | | | | |
--------------------------------------------------------------------------------
| Shareholders of parent | 32 | -289 | 321 | -412 | 34 | -2 |
| company | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling interests | 0 | 2 | -2 | 1 | 0 | 0 |
--------------------------------------------------------------------------------
| Total | 32 | -287 | 319 | -411 | 34 | -2 |
--------------------------------------------------------------------------------
| Earnings per share for | | | | | | |
| result attributable to | | | | | | |
| shareholders of parent | | | | | | |
| company (EUR/share) | | | | | | |
--------------------------------------------------------------------------------
| from continuing operations | 0.03 | -0.6 | 0.64 | -1.02 | 0.06 | -0.03 |
| | | 1 | | | | |
--------------------------------------------------------------------------------
| from discontinued operations | 0.00 | -0.0 | 0.04 | -0.07 | 0.00 | 0.00 |
| | | 4 | | | | |
--------------------------------------------------------------------------------
| Total | 0.03 | -0.6 | 0.68 | -1.09 | 0.06 | -0.03 |
| | | 5 | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| *) Metsä-Botnia's netresult is included from 8.12.2009 on in operating |
| result's row "Share of results in associated companies" |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Condensed consolidated | | | | | | |
| balance sheet | | | | | | |
--------------------------------------------------------------------------------
| | 30.6. | | 30.6. | | 31.12. | |
--------------------------------------------------------------------------------
| EUR million | 2010 | % | 2009 | % | 2009 | % |
--------------------------------------------------------------------------------
| ASSETS | | | | | | |
--------------------------------------------------------------------------------
| Non-current assets | | | | | | |
--------------------------------------------------------------------------------
| Goodwill | 13 | 0.4 | 51 | 1.4 | 13 | 0.4 |
--------------------------------------------------------------------------------
| Other intangible assets | 34 | 1.1 | 47 | 1.3 | 32 | 1.0 |
--------------------------------------------------------------------------------
| Tangible assets | 1,108 | 36.0 | 1,468 | 39.1 | 1,130 | 36.1 |
--------------------------------------------------------------------------------
| Biological assets | 0 | 0.0 | 2 | 0.1 | 0 | 0.0 |
--------------------------------------------------------------------------------
| Investments in | 226 | 7.3 | 49 | 1.3 | 210 | 6.7 |
| associated companies | | | | | | |
--------------------------------------------------------------------------------
| Available for sale | 324 | 10.5 | 304 | 8.1 | 316 | 10.1 |
| investments | | | | | | |
--------------------------------------------------------------------------------
| Other non-current | 65 | 2.1 | 229 | 6.1 | 64 | 2.0 |
| financial assets | | | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 4 | 0.1 | 5 | 0.1 | 3 | 0.1 |
| receivables | | | | | | |
--------------------------------------------------------------------------------
| | 1,774 | 57.5 | 2,155 | 57.5 | 1,768 | 56.4 |
--------------------------------------------------------------------------------
| Current assets | | | | | | |
--------------------------------------------------------------------------------
| Inventories | 336 | 10.9 | 373 | 9.9 | 313 | 10.0 |
--------------------------------------------------------------------------------
| Accounts receivables | 598 | 19.4 | 575 | 15.3 | 554 | 17.7 |
| and other receivables | | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | 366 | 11.9 | 247 | 6.6 | 497 | 15.9 |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| | 1,300 | 42.2 | 1,195 | 31.8 | 1,364 | 43.6 |
--------------------------------------------------------------------------------
| Assets classified as | 8 | 0.3 | 402 | 10.7 | | |
| held for sale | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | |
--------------------------------------------------------------------------------
| Total assets | 3,082 | 100.0 | 3,752 | 100.0 | 3,132 | 100.0 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| SHAREHOLDERS' EQUITY AND | | | | | |
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity | | | | | | |
--------------------------------------------------------------------------------
| Equity attributable | | | | | | |
--------------------------------------------------------------------------------
| to shareholders of | 948 | 30.8 | 1,040 | 27.7 | 916 | 29.2 |
| parent company | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling | 6 | 0.2 | 59 | 1.6 | 8 | 0.3 |
| interests | | | | | | |
--------------------------------------------------------------------------------
| Total equity | 954 | 31.0 | 1,099 | 29.3 | 924 | 29.5 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current liabilities | | | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 169 | 5.5 | 184 | 4.9 | 162 | 5.2 |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Post-employment benefit | 81 | 2.6 | 92 | 2.5 | 89 | 2.8 |
| obligations | | | | | | |
--------------------------------------------------------------------------------
| Provisions | 68 | 2.2 | 48 | 1.3 | 60 | 1.9 |
--------------------------------------------------------------------------------
| Borrowings | 1,072 | 34.8 | 1,394 | 37.2 | 943 | 30.1 |
--------------------------------------------------------------------------------
| Other liabilities | 29 | 0.9 | 27 | 0.7 | 30 | 1.0 |
--------------------------------------------------------------------------------
| | 1,419 | 46.0 | 1,745 | 46.6 | 1,284 | 41.0 |
--------------------------------------------------------------------------------
| Current liabilities | | | | | | |
--------------------------------------------------------------------------------
| Provisions | 13 | 0.4 | 33 | 0.9 | 44 | 1.4 |
--------------------------------------------------------------------------------
| Current borrowings | 265 | 8.6 | 337 | 9.0 | 467 | 14.9 |
--------------------------------------------------------------------------------
| Accounts payable and | 431 | 14.0 | 402 | 10.6 | 413 | 13.2 |
| other liabilities | | | | | | |
--------------------------------------------------------------------------------
| | 709 | 23.0 | 772 | 20.5 | 924 | 29.5 |
--------------------------------------------------------------------------------
| Liabilities classified | | | | | | |
| as | | | | | | |
--------------------------------------------------------------------------------
| held for sale | | | 136 | 3.6 | | |
--------------------------------------------------------------------------------
| Total liabilities | 2,128 | 69.0 | 2,653 | 70.7 | 2,208 | 70.5 |
--------------------------------------------------------------------------------
| Total shareholders' | 3,082 | 100.0 | 3,752 | 100.0 | 3,132 | 100.0 |
| equity and liabilities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-current portion of derivative financial instruments has been transferred |
| to non-current financial assets from accounts receivables and other |
| receivables (EUR 0 million 30 June 2009 and EUR 5 million 31 December 2009). |
| Non-current portion of derivative financial instruments has been transferred |
| to other non-current liabilities from accounts payable and other liabilities |
| (EUR 12 million 30 June 2009 and EUR 18 million 31 December 2009). |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Condensed consolidated cash flow statement | | |
--------------------------------------------------------------------------------
| | 2010 | 2009 | 2009 | 2010 |
--------------------------------------------------------------------------------
| EUR million | Q1-Q2 | Q1-Q2 | | Q2 |
--------------------------------------------------------------------------------
| Result for the period | 11 | -211 | -354 | -8 |
--------------------------------------------------------------------------------
| Total adjustments | 60 | 101 | 324 | 38 |
--------------------------------------------------------------------------------
| Change in working capital | -71 | 74 | 140 | -3 |
--------------------------------------------------------------------------------
| Cash flow arising from | 0 | -36 | 110 | 27 |
| operations | | | | |
--------------------------------------------------------------------------------
| Net financial items | -55 | -1 | -38 | -43 |
--------------------------------------------------------------------------------
| Income taxes paid | -10 | 10 | 9 | -6 |
--------------------------------------------------------------------------------
| Net cash flow arising from | -65 | -27 | 81 | -22 |
| operating activities | | | | |
--------------------------------------------------------------------------------
| Investments in intangible and | -17 | -32 | -73 | -10 |
| tangible assets | | | | |
--------------------------------------------------------------------------------
| Divestments of assets and other | 14 | 5 | 284 | 8 |
--------------------------------------------------------------------------------
| Net cash flow arising from | -3 | -27 | 211 | -2 |
| investing activities | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Changes in non-current loans | -62 | -235 | -344 | 228 |
| and in other financial items | | | | |
--------------------------------------------------------------------------------
| Dividends paid | -2 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Net cash flow arising from | -64 | -235 | -344 | 228 |
| financing activities | | | | |
--------------------------------------------------------------------------------
| Changes in cash and cash | -132 | -289 | -52 | 204 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 497 | 550 | 550 | 162 |
| beginning of period | | | | |
--------------------------------------------------------------------------------
| Translation difference in cash | 1 | 0 | -1 | 0 |
| and cash equivalents | | | | |
--------------------------------------------------------------------------------
| Changes in cash and cash | -132 | -289 | -52 | 204 |
| equivalents | | | | |
--------------------------------------------------------------------------------
| Assets held for sale | 0 | -14 | 0 | 0 |
--------------------------------------------------------------------------------
| Cash and cash equivalents at | 366 | 247 | 497 | 366 |
| end of period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Statement of changes in shareholders' | | | | |
| equity | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| | Equity attributable to shareholders of parent | | |
| | company | | |
--------------------------------------------------------------------------------
| EUR million | Shar | Shar | Tran | Fair | Retain | Total | Non-c | Total |
| | e | e | s- | value | ed | | ontro | |
| | ca | pr | l | and | ear | | l-lin | |
| | pita | e- | atio | other | nings | | g | |
| | l | m | n | rese | | | int | |
| | | ium | di | rves | | | er- | |
| | | acco | ffer | | | | e | |
| | | unt | - | | | | sts | |
| | | | en | | | | | |
| | | | ces | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 558 | 667 | -9 | 259 | -146 | 1,329 | 57 | 1,386 |
| ' equity, | | | | | | | | |
| 1 | | | | | | | | |
| January 2009 | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensiv | | | | | | | | |
| e income for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | -212 | -212 | 2 | -210 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| comprehensiv | | | | | | | | |
| e income | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | 11 | | 11 | | 11 |
| hedges | | | | | | | | |
--------------------------------------------------------------------------------
| Available | | | | -120 | | -120 | | -120 |
| for sale | | | | | | | | |
| investments | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | 4 | | | 4 | 0 | 4 |
| differences | | | | | | | | |
--------------------------------------------------------------------------------
| Share of | | | | | | | | |
| result in | | | | | | | | |
| associated | | | | | | | | |
| companies | | | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | | 28 | | 28 | | 28 |
| relating to | | | | | | | | |
| components | | | | | | | | |
| of other | | | | | | | | |
| comprehensiv | | | | | | | | |
| e income | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 558 | 667 | -5 | 178 | -358 | 1,040 | 59 | 1,099 |
| ' | | | | | | | | |
| equity, | | | | | | | | |
| 30 June 2009 | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 558 | 667 | 2 | 194 | -504 | 916 | 8 | 924 |
| ' equity, | | | | | | | | |
| 1 | | | | | | | | |
| January 2010 | | | | | | | | |
--------------------------------------------------------------------------------
| Comprehensiv | | | | | | | | |
| e income for | | | | | | | | |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Result for | | | | | 11 | 11 | | 11 |
| the period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| comprehensiv | | | | | | | | |
| e income | | | | | | | | |
--------------------------------------------------------------------------------
| Cash flow | | | | -10 | | -10 | | -10 |
| hedges | | | | | | | | |
--------------------------------------------------------------------------------
| Available | | | | 20 | | 20 | | 20 |
| for sale | | | | | | | | |
| investments | | | | | | | | |
--------------------------------------------------------------------------------
| Translation | | | 6 | | | 6 | | 6 |
| differences | | | | | | | | |
--------------------------------------------------------------------------------
| Share of | | | 2 | 1 | | 3 | | 3 |
| result in | | | | | | | | |
| associated | | | | | | | | |
| companies | | | | | | | | |
--------------------------------------------------------------------------------
| Income tax | | | 4 | -2 | | 2 | | 2 |
| relating to | | | | | | | | |
| components | | | | | | | | |
| of other | | | | | | | | |
| comprehensiv | | | | | | | | |
| e income | | | | | | | | |
--------------------------------------------------------------------------------
| Related | | | | | | | | |
| party | | | | | | | | |
| transaction | | | | | | | | |
--------------------------------------------------------------------------------
| Dividends | | | | | | | -2 | -2 |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Shareholders | 558 | 667 | 14 | 203 | -493 | 948 | 6 | 954 |
| ' | | | | | | | | |
| equity, | | | | | | | | |
| 30 June 2010 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Key ratios | 2010 | 2009 | 2009 | 2010 | 2010 |
--------------------------------------------------------------------------------
| | Q1-Q2 | Q1-Q2 | | Q1 | Q2 |
--------------------------------------------------------------------------------
| Sales, EUR million | 1,278 | 1,208 | 2,432 | 602 | 676 |
--------------------------------------------------------------------------------
| EBITDA, EUR million | 143 | -71 | 88 | 82 | 61 |
--------------------------------------------------------------------------------
| excl. non-recurring items, | 149 | -33 | 44 | 72 | 77 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Operating result, EUR million | 84 | -191 | -267 | 49 | 35 |
--------------------------------------------------------------------------------
| excl. non-recurring items, | 82 | -135 | -150 | 39 | 43 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Result from continuing | | | | | |
| operations | | | | | |
--------------------------------------------------------------------------------
| before taxes, EUR million | 25 | -212 | -358 | 25 | 0 |
--------------------------------------------------------------------------------
| excl. non-recurring items, | 39 | -145 | -230 | 15 | 24 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Result for the period | | | | | |
--------------------------------------------------------------------------------
| from continuing operations, | 11 | -198 | -331 | 19 | -8 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| from discontinued operations, | 0 | -12 | -23 | 0 | 0 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Total, EUR million | 11 | -210 | -354 | 19 | -8 |
--------------------------------------------------------------------------------
| Earnings per share | | | | | |
--------------------------------------------------------------------------------
| from continuing operations, | 0.03 | -0.61 | -1.02 | 0.06 | -0.03 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| from discontinued operations, | 0.00 | -0.04 | -0.07 | 0.00 | 0.00 |
| EUR | | | | | |
--------------------------------------------------------------------------------
| Total, EUR | 0.03 | -0.65 | -1.09 | 0.06 | -0.03 |
--------------------------------------------------------------------------------
| Earnings per share, excl. | 0.08 | -0.42 | -0.66 | 0.03 | 0.05 |
| non-recurring items, EUR | | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | 2.4 | -31.9 | -28.6 | 7.9 | -3.1 |
--------------------------------------------------------------------------------
| excl. non-recurring items, % | 5.3 | -22.0 | -18.3 | 3.6 | 6.8 |
--------------------------------------------------------------------------------
| Return on capital employed, % | 6.1 | -11.5 | -8.9 | 9.1 | 3.8 |
--------------------------------------------------------------------------------
| excl. non-recurring items, % | 7.3 | -7.3 | -4.5 | 7.3 | 8.1 |
--------------------------------------------------------------------------------
| Equity ratio at end of | 31.1 | 29.4 | 29.6 | 32.7 | 31.1 |
| period, % | | | | | |
--------------------------------------------------------------------------------
| Gearing ratio at end of | 140 | 168 | 153 | 121 | 140 |
| period, % | | | | | |
--------------------------------------------------------------------------------
| Net gearing ratio at end of | 89 | 116 | 84 | 86 | 89 |
| period, % | | | | | |
--------------------------------------------------------------------------------
| Shareholders' equity per | 2.89 | 3.17 | 2.79 | 2.90 | 2.89 |
| share at end of period, EUR | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing net | 845 | 1,276 | 777 | 821 | 845 |
| liabilities, EUR million | | | | | |
--------------------------------------------------------------------------------
| Gross capital expenditure, | 17 | 32 | 73 | 7 | 10 |
| EUR million | | | | | |
--------------------------------------------------------------------------------
| Deliveries, 1 000 tonnes | | | | | |
--------------------------------------------------------------------------------
| Paper businesses | 589 | 590 | 1,132 | 311 | 278 |
--------------------------------------------------------------------------------
| Consumer Packaging | 693 | 570 | 1,212 | 321 | 372 |
--------------------------------------------------------------------------------
| Personnel at the end of | | | | | |
| period | | | | | |
--------------------------------------------------------------------------------
| In continuing operations | 4,946 | 6,080 | 4,903 | 4,796 | 4,946 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EBITDA = Earnings before interest, | | | | |
| taxes, depreciation and impairment | | | | |
| charges | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Securities and guarantees | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| EUR million | Q2 | Q2 | | |
--------------------------------------------------------------------------------
| For own liabilities | 247 | 130 | 113 | |
--------------------------------------------------------------------------------
| On behalf of associated companies | 0 | 1 | 0 | |
--------------------------------------------------------------------------------
| On behalf of Group companies | 13 | 5 | 0 | |
--------------------------------------------------------------------------------
| On behalf of others | 2 | 4 | 2 | |
--------------------------------------------------------------------------------
| Total | 262 | 140 | 115 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Open derivative contracts | 2010 | 2009 | 2009 | |
--------------------------------------------------------------------------------
| EUR million | Q2 | Q2 | | |
--------------------------------------------------------------------------------
| Interest rate derivatives | 1,006 | 1,334 | 981 | |
--------------------------------------------------------------------------------
| Currency derivatives | 2,225 | 3,166 | 2,806 | |
--------------------------------------------------------------------------------
| Other derivatives | 185 | 290 | 183 | |
--------------------------------------------------------------------------------
| Total | 3,416 | 4,790 | 3,970 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The fair value of open derivative contracts calculated at market | |
| value at the end of the review period was EUR -37.5 million (EUR | |
| -19.5 million 31 December 2009 and EUR -14.6 million 30 June 2009) | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Also includes other closed contracts to a total amount of EUR | |
| 1,555.7 million (EUR 2,158.5 million 31 December 2009 and EUR | |
| 2,611.2 million 30 June 2009). | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Commitments related to fixed | 2010 | 2009 | 2009 | |
| assets | | | | |
--------------------------------------------------------------------------------
| EUR million | Q1 | Q1 | | |
--------------------------------------------------------------------------------
| Payments due in following 12 | 1 | 4 | 0 | |
| months | | | | |
--------------------------------------------------------------------------------
| Payments due later | 1 | 2 | 1 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Changes in property, plant and | 2010 | 2009 | 2009 | |
| equipment | | | | |
--------------------------------------------------------------------------------
| EUR million | Q1 | Q1 | | |
--------------------------------------------------------------------------------
| Carrying value at beginning of | 1,130 | 1,808 | 1,808 | |
| period | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 17 | 29 | 70 | |
--------------------------------------------------------------------------------
| Decreases | 0 | -1 | -454 | |
--------------------------------------------------------------------------------
| Assets classified as held for sale | -8 | -253 | 0 | |
--------------------------------------------------------------------------------
| Depreciation and impairment | -55 | -112 | -312 | |
| charges | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Translation difference | 24 | -3 | 18 | |
--------------------------------------------------------------------------------
| Carrying value at end of period | 1,108 | 1,468 | 1,130 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Assets classified as held for sale include EUR 8 million paper machine 2 in |
| Kangas paper mill and in previous year the property, plant and equipment of |
| Metsä-Botnia's Uruguay business (based on M-real's 30 per cent ownership |
| share) |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Impairment charges made at closure of Kangas' paper machine 2 were | |
| partly reversed in June based on sales agreement of the machine. | |
| Depreciation and impairment charges include this reversal (EUR 8 | |
| million). | |
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--------------------------------------------------------------------------------
| Related-party transactions | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions and balances with parent and | 2010 | 2009 | 2009 |
| sister companies | | | |
--------------------------------------------------------------------------------
| EUR million | Q1-Q2 | Q1-Q2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 18 | 15 | 22 |
--------------------------------------------------------------------------------
| Other operating income | 3 | 2 | 37 |
--------------------------------------------------------------------------------
| Purchases | 378 | 163 | 360 |
--------------------------------------------------------------------------------
| Interest income | 5 | 2 | 1 |
--------------------------------------------------------------------------------
| Interest expences | 0 | 1 | 2 |
--------------------------------------------------------------------------------
| Non-current receivables | 53 | 5 | 53 |
--------------------------------------------------------------------------------
| Current receivables | 97 | 60 | 107 |
--------------------------------------------------------------------------------
| Non-current liabilities | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Current liabilities | 200 | 203 | 106 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions with associated companies | 2010 | 2009 | 2008 |
--------------------------------------------------------------------------------
| EUR million | Q1-Q2 | Q1-Q2 | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales | 0 | 0 | 1 |
--------------------------------------------------------------------------------
| Purchases | 0 | 2 | 4 |
--------------------------------------------------------------------------------
| Non-current receivables | 0 | 1 | 0 |
--------------------------------------------------------------------------------
| Current receivables | 9 | 7 | 7 |
--------------------------------------------------------------------------------
| Current liabilities | 5 | 1 | 2 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions with Metsä-Botnia are included in transactions with sister |
| companies from 8.12.2009 on. |
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| Accounting policies | | | |
--------------------------------------------------------------------------------
| The financial statements were prepared in accordance with accounting |
| policies set out in International Accounting Standard 34 and in the M-real´s |
| Annual Report for 2009. |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The figures in the financial statement are | | | |
| unaudited. | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Calculation of key ratios | | | | | | |
--------------------------------------------------------------------------------
| | | | | | | | | |
--------------------------------------------------------------------------------
| Return on | = | (Result from continuing | | | |
| equity (%) | | operations before tax | | | |
| | | - | | | |
| | | direct taxes) per | | | |
| | | (Shareholders' equity | | | |
| | | (average)) | | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Return on | = | (Result from continuing operations | | |
| capital | | before tax | | |
| employed (%) | | + interest expenses,net | | |
| | | exchange gains/losses and other | | |
| | | financial expenses) per | | |
| | | (Shareholders' equity | | |
| | | + | | |
| | | interest-bearing borrowings | | |
| | | (average)) | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Equity ratio | = | (Shareholders' equity) per (Total | | |
| (%) | | assets - advance payments received) | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Gearing | = | (Interest-bearing borrowings) | | |
| ratio (%) | | per | | |
| | | (Shareholders' equity) | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Net gearing | = | (Interest-bearing borrowings | | |
| ratio (%) | | - | | |
| | | liquid funds | | |
| | | - interest-bearing | | |
| | | receivables) | | |
| | | per (Shareholders' | | |
| | | equity) | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Earnings per | = | (Profit attributable to shareholders | | |
| share | | of parent company) | | |
| | | per (Adjusted | | |
| | | number of shares (average)) | | |
--------------------------------------------------------------------------------
| |
--------------------------------------------------------------------------------
| Shareholders | = | (Equity attributable to shareholders | | |
| ´equity per | | of parent company) | | |
| share | | per (Adjusted | | |
| | | number of shares at the end of | | |
| | | period) | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Sales and operating | | | | | | | | |
| result by segment | | | | | | | | |
--------------------------------------------------------------------------------
| | 201 | 201 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
| | 0 | 0 | | | | | | |
--------------------------------------------------------------------------------
| EUR million | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
--------------------------------------------------------------------------------
| Consumer Packaging | 310 | 257 | 255 | 250 | 237 | 567 | 463 | 968 |
--------------------------------------------------------------------------------
| Office Papers | 153 | 160 | 132 | 133 | 131 | 313 | 278 | 543 |
--------------------------------------------------------------------------------
| Speciality Papers | 80 | 82 | 73 | 80 | 82 | 162 | 199 | 352 |
--------------------------------------------------------------------------------
| Market Pulp and | 126 | 95 | 126 | 132 | 116 | 221 | 250 | 508 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | 44 | 46 | 59 | 56 | 40 | 90 | 74 | 189 |
--------------------------------------------------------------------------------
| Internal sales | -37 | -38 | -39 | -33 | -21 | -75 | -56 | -128 |
--------------------------------------------------------------------------------
| Sales | 676 | 602 | 606 | 618 | 585 | 1,278 | 1,208 | 2,432 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consumer Packaging | 51 | 52 | 50 | 51 | 24 | 103 | 39 | 140 |
--------------------------------------------------------------------------------
| Office Papers | 6 | 11 | 6 | 0 | -3 | 17 | -5 | 1 |
--------------------------------------------------------------------------------
| Speciality Papers | -18 | -4 | -8 | -7 | -17 | -22 | -50 | -65 |
--------------------------------------------------------------------------------
| Market Pulp and | 23 | 14 | -1 | -6 | -10 | 37 | -14 | -21 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | -1 | 9 | 85 | -11 | -17 | 8 | -41 | 33 |
--------------------------------------------------------------------------------
| EBITDA | 61 | 82 | 132 | 27 | -23 | 143 | -71 | 88 |
--------------------------------------------------------------------------------
| % of sales | 9.0 | 13. | 21.8 | 4.4 | -3.9 | 11.2 | -5.9 | 3.6 |
| | | 6 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consumer Packaging | 38 | 39 | 33 | 31 | 4 | 77 | -13 | 51 |
--------------------------------------------------------------------------------
| Office Papers | -4 | 0 | -54 | -15 | -18 | -4 | -35 | -104 |
--------------------------------------------------------------------------------
| Speciality Papers | -21 | -6 | -78 | -10 | -23 | -27 | -63 | -151 |
--------------------------------------------------------------------------------
| Market Pulp and | 16 | 9 | -39 | -15 | -19 | 25 | -37 | -91 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | 6 | 7 | 86 | -15 | -17 | 13 | -43 | 28 |
--------------------------------------------------------------------------------
| Operating result | 35 | 49 | -52 | -24 | -73 | 84 | -191 | -267 |
--------------------------------------------------------------------------------
| % of sales | 5.2 | 8.1 | -8.6 | -3.9 | -12. | 6.6 | -15.8 | -11.0 |
| | | | | | 5 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Non-recurring items | | | | | | | | |
--------------------------------------------------------------------------------
| Consumer Packaging | 0 | 0 | -1 | 0 | -1 | 0 | -17 | -18 |
--------------------------------------------------------------------------------
| Office Papers | 0 | 0 | -54 | -2 | 0 | 0 | 0 | -56 |
--------------------------------------------------------------------------------
| Speciality Papers | -16 | 0 | -72 | 1 | -1 | -16 | -29 | -100 |
--------------------------------------------------------------------------------
| Market Pulp and | 0 | 0 | -30 | -1 | 0 | 0 | -6 | -37 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | 8 | 10 | 98 | 0 | -1 | 18 | -4 | 94 |
--------------------------------------------------------------------------------
| Non-recurring | -8 | 10 | -59 | -2 | -3 | 2 | -56 | -117 |
| items | | | | | | | | |
| in operating | | | | | | | | |
| result | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consumer Packaging | 51 | 52 | 51 | 51 | 25 | 103 | 44 | 146 |
--------------------------------------------------------------------------------
| Office Papers | 6 | 11 | 13 | 0 | -3 | 17 | -5 | 8 |
--------------------------------------------------------------------------------
| Speciality Papers | -2 | -4 | -2 | -8 | -16 | -6 | -21 | -31 |
--------------------------------------------------------------------------------
| Market Pulp and | 23 | 14 | 2 | -6 | -10 | 37 | -13 | -17 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | -1 | -1 | -13 | -11 | -16 | -2 | -38 | -62 |
--------------------------------------------------------------------------------
| EBITDA, excl. | 77 | 72 | 51 | 26 | -20 | 149 | -33 | 44 |
| non-recurring items | | | | | | | | |
--------------------------------------------------------------------------------
| % of sales | 11. | 12. | 8.4 | 4.2 | -3.4 | 11.7 | -2.7 | 1.8 |
| | 4 | 0 | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Consumer Packaging | 38 | 39 | 34 | 31 | 5 | 77 | 4 | 69 |
--------------------------------------------------------------------------------
| Office Papers | -4 | 0 | 0 | -13 | -18 | -4 | -35 | -48 |
--------------------------------------------------------------------------------
| Speciality Papers | -5 | -6 | -6 | -11 | -22 | -11 | -34 | -51 |
--------------------------------------------------------------------------------
| Market Pulp and | 16 | 9 | -9 | -14 | -19 | 25 | -31 | -54 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Other operations | -2 | -3 | -12 | -15 | -16 | -5 | -39 | -66 |
--------------------------------------------------------------------------------
| Operating | 43 | 39 | 7 | -22 | -70 | 82 | -135 | -150 |
| result, | | | | | | | | |
| excl. | | | | | | | | |
| non-recurring items | | | | | | | | |
| | | | | | | | | |
--------------------------------------------------------------------------------
| % of sales | 6.4 | 6.5 | 1.2 | -3.6 | -12. | 6.4 | -11.2 | -6.2 |
| | | | | | 0 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Return on capital | | | | | | | | |
| employed % | | | | | | | | |
--------------------------------------------------------------------------------
| Consumer Packaging | 26. | 27. | 20.5 | 16.4 | 2.1 | 26.7 | -3.4 | 7.5 |
| | 1 | 9 | | | | | | |
--------------------------------------------------------------------------------
| Office Papers | 0.1 | 0.1 | -47. | -13 | -13. | -2 | -12.9 | -21.2 |
| | | | 5 | | 7 | | | |
--------------------------------------------------------------------------------
| Speciality Papers | -12 | -30 | -215 | -16 | -32. | -87.6 | -37.6 | -62.1 |
| | 4.9 | .5 | .3 | | 2 | | | |
--------------------------------------------------------------------------------
| Market Pulp and | 11. | 6.1 | -22. | -7.3 | -9.2 | 9 | -8.8 | -12.8 |
| Energy | 9 | | 8 | | | | | |
--------------------------------------------------------------------------------
| Group | 3.8 | 9.1 | -8.7 | -2.3 | -10. | 6.1 | -11.5 | -8.9 |
| | | | | | 2 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Capital employed, | | | | | | | | |
| EUR million | | | | | | | | |
--------------------------------------------------------------------------------
| Consumer Packaging | 595 | 565 | 556 | 744 | 771 | 595 | 771 | 556 |
--------------------------------------------------------------------------------
| Office Papers | 417 | 438 | 420 | 479 | 501 | 417 | 501 | 420 |
--------------------------------------------------------------------------------
| Speciality Papers | 52 | 77 | 65 | 225 | 241 | 52 | 241 | 65 |
--------------------------------------------------------------------------------
| Market Pulp and | 546 | 539 | 550 | 830 | 822 | 546 | 822 | 550 |
| Energy | | | | | | | | |
--------------------------------------------------------------------------------
| Unallocated and | 680 | 496 | 743 | 541 | 611 | 680 | 611 | 743 |
| eliminations | | | | | | | | |
--------------------------------------------------------------------------------
| Group | 2,2 | 2,1 | 2,33 | 2,81 | 2,94 | 2,290 | 2,946 | 2,334 |
| | 90 | 15 | 4 | 9 | 6 | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| The capital employed for a segment includes its assets: goodwill, other |
| intangible goods, tangible assets, biological assets, investments in |
| associates, inventories, accounts receivables, prepayments and accrued |
| income (excluding interest and taxes), less the segment's liabilities |
| (accounts payable, advance payments, accruals and deferred income (excluding |
| interest and taxes). |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deliveries | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| 1,000 tonnes | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
--------------------------------------------------------------------------------
| Consumer | 372 | 321 | 327 | 315 | 296 | 693 | 570 | 1,212 |
| Packaging | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Office Papers | 212 | 237 | 198 | 199 | 190 | 449 | 393 | 790 |
--------------------------------------------------------------------------------
| Speciality | 66 | 74 | 68 | 76 | 80 | 140 | 198 | 342 |
| Papers | | | | | | | | |
--------------------------------------------------------------------------------
| Paper business, | 278 | 311 | 266 | 275 | 270 | 589 | 591 | 1,132 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Market Pulp | 194 | 161 | 246 | 295 | 327 | 355 | 614 | 1,155 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Production | 2010 | 2010 | 2009 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
| 1,000 tonnes | Q2 | Q1 | Q4 | Q3 | Q2 | Q1-Q2 | Q1-Q2 | Q1-Q4 |
--------------------------------------------------------------------------------
| Consumer | 363 | 342 | 342 | 323 | 275 | 705 | 567 | 1,232 |
| Packaging | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Office Papers | 209 | 235 | 213 | 181 | 202 | 444 | 401 | 795 |
--------------------------------------------------------------------------------
| Speciality | 73 | 78 | 71 | 75 | 74 | 151 | 173 | 319 |
| Papers | | | | | | | | |
--------------------------------------------------------------------------------
| Paper business, | 282 | 313 | 283 | 257 | 276 | 595 | 574 | 1,114 |
| total | | | | | | | | |
--------------------------------------------------------------------------------
| Metsä-Botnia | 164 | 164 | 203 | 219 | 210 | 328 | 441 | 863 |
| pulp 1) | | | | | | | | |
--------------------------------------------------------------------------------
| M-real pulp | 308 | 329 | 316 | 263 | 264 | 637 | 541 | 1,120 |
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--------------------------------------------------------------------------------
| 1) corresponds to M-real's ownership share of 30 per cent in Metsä-Botnia |
--------------------------------------------------------------------------------
