M-REAL?S Q3 RESULT IMPROVED SLIGHTLY, PR



M-real Corporation Stock Exchange Bulletin 27.10.2003 at 13.00 1 (17)

M-REAL’S Q3 RESULT IMPROVED SLIGHTLY, PROFITABILITY IS STILL
UNSATISFACTORY

In the third quarter M-real Group’s operating profit rose to EUR 28.9
million from EUR 14.8 million in Q2. The profitability of Consumer
packaging, Publishing and Metsä Tissue improved, whereas the result
reported by Home & Office, Commercial printing and Map Merchants
declined. In the current market situation the result was
unsatisfactory. However, cost-savings programmes are moving ahead in
line with plans.

Key figures in the third quarter:
- Earnings per share: EUR -0.10 negative (previous quarter: EUR -0.01
negative)
- Result before extraordinary items: a loss of EUR 3.9 million (loss
of 9.7)
- Operating profit: EUR 28.9 million (14.8)
- Cash flow from operations: EUR 107.7 million (31.2)
- Return on capital employed: 2.3 per cent (1.4)
- Turnover: EUR 1,467.2 million (1,507.8)
- Equity ratio at the end of the period: 33.1 per cent (32.9)
- 80 per cent capacity utilization rate at the paper mills (85), 87
per cent at the board mills (78)

The improvement in the Consumer packaging business area’s
profitability was achieved mainly by lower costs. The earnings
improvement for magazine paper was driven by the rise in the delivery
volume and improved production efficiency at the mills. Metsä
Tissue’s profitability was boosted by lower raw material costs and an
improved product mix.

President and CEO Jouko M. Jaakkola commented on the market situation
and the year end as follows:

“The key economic indicators are still not showing any clear
direction for the future. Nevertheless, there are signs of a pick-up
in the economy in the United States. In Europe, we are seeing a
seasonal upswing in the demand for coated papers in September-
November. Our previously announced EUR 295 million savings programmes
are moving ahead in line with plans and will for the most part reach
completion by the end of the year. Weak demand will dampen their
effect to some extent. The actions has been started to develop sales
and marketing and productivity of certain production units. Earnings
in the latter part of the year will also be affected by shutdowns, in
line with collective labour agreements, at the mills in Finland in
December. The last quarter is likely to be in the red.ö

M-REAL CORPORATION

Corporate communications

For further information, contact:
Jouko M. Jaakkola, President and CEO, M-real Corporation, tel. +358
10 469 4118, GSM +358 50 2261
Heikki Saarinen, Senior Vice President & CFO, M-real Corporation,
tel. +358 10 469 4686, GSM +358 50 598 7142

M-REAL CORPORATION

INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2003

JULY-SEPTEMBER EARNINGS COMPARED WITH THE PREVIOUS QUARTER

In the third quarter M-real Group’s operating profit rose to EUR 28.9
million from EUR 14.8 million in the previous quarter. Operating
profit amounted to 2.0 per cent of turnover (Apr.–June 2003: 1.0).
The profitability of Consumer packaging, Publishing and Metsä Tissue
improved, whereas the result reported by Home & Office, Commercial
printing and Map Merchants worsened.

The improvement in the Consumer packaging business area’s
profitability was achieved mainly by lower costs.  The average
selling price in euros fell slightly. Paperboard deliveries totalled
265,000 tonnes (265,000). Production curtailments amounted to 43,000
tonnes (59,000). The capacity utilization rate was 87 per cent (78).

The total volume of paper delivered was down on the previous quarter.
The weakening in the profitability of fine paper was due primarily to
the fall in the delivery volume and selling price. The earnings
improvement for magazine paper was driven by the rise in the delivery
volume and improved production efficiency at the mills. The average
selling price of paper in euros declined somewhat. The delivery
volume of coated fine paper fell by one per cent and that of uncoated
fine paper by 10 per cent. However, the delivery volume of magazine
paper rose by three per cent. The total volume of paper deliveries
was 905,000 tonnes (927,000). A high level of production curtailments
had to be continued, amounting to 195,000 tonnes (126,000). The
capacity utilization rate of the paper mills was 80 per cent (85).

The effect of the change in foreign exchange rates – taking into
account hedging income – on operating profit was EUR 8.4 million
negative (a gain of 6.2 million). By the end of September the US
dollar had weakened by 2.0 per cent and the British pound sterling by
0.4 per cent compared with the end of June. The average exchange rate
of the dollar against the euro over the June-September period was
nevertheless 1.0 per cent stronger and pound against the euro 0.4 per
cent stronger than in the previous quarter.

Turnover was EUR 1,467.2 million (1,507.8).

The share of the profit of associated companies includes M-real’s
proportion of the capital gain on the sale of Logisware Oy’s business
operations, EUR 7 million.

Other operating income amounted to EUR 14.7 million (23.2). The sum
does not include major non-recurring items.

Net financial expenses were EUR 32.8 million (24.5). Financial
expenses include a foreign exchange loss on financial items of EUR
0.5 million (a gain of 5.3). Net interest and other financial
expenses amounted to EUR 32.3 million (29.8).

The result before extraordinary items was a loss of EUR 3.9 million
(compared with a loss of 9.7 million in the previous quarter).

The result for the third quarter after taxes and minority interests
was a net loss of EUR 18.0 million (a net loss of 2.0 in Q2). Taxes,
including the change in the imputed deferred tax liability, were EUR
14.0 million negative (tax expenses of 8.3 million).

Earnings per share were EUR -0.10 negative (-0.01 negative).

The return on capital employed was 2.3 per cent (1.4). The return on
equity was 3.0 per cent negative (0.2 per cent negative).

EARNINGS IN JANUARY-SEPTEMBER COMPARED WITH THE SAME PERIOD OF 2002

Operating profit in January-September was EUR 111.1 million (Jan.-
Sep. 2002: 273.6 million). The profitability of all business areas
weakened except for the Map Merchants business. The main factors that
weakened profitability were the lower selling prices of paper as well
as the average drop of 20 per cent in the exchange rate of the US
dollar and the 10 per cent fall in the British pound as well as the
increased proportion of deliveries to markets outside Europe. The
cheaper dollar hit the profitability of the Consumer packaging
business area particularly hard. Operating profit was also reduced by
the disposal of the shareholding in Albbruck in June 2002. *(On the
previous page it states a 2.0 per cent fall in the exchange rate for
the US dollar and a 0.4 per cent fall for the pound sterling.)


Turnover was EUR 4,569.9 million (4,976.9). Turnover was lowered by
the same factors as impacted operating profit. In comparable terms,
the fall in turnover was 7.8 per cent.

Consolidated profit before extraordinary items was EUR 25.0 million
(124.2).


PERSONNEL

The number of personnel at the end of September was 19,988 employees
(20,421 employees at 30 September 2002), of which 5,955 employees
worked in Finland (6,157). The net increase in personnel as a
consequence of acquisitions and divestments was 360 employees. The
payroll at the end of 2002 was 20,323 employees.

The Group’s personnel includes 47 per cent of Metsä-Botnia’s
employees.


CAPITAL EXPENDITURES ON FIXED ASSETS

M-real’s total capital expenditures in January-September amounted to
EUR 136 million. In addition, M-real paid a total of EUR 154 million
for shares in Metsä Tissue and other acquired companies.

On 17 September, M-real’s Board of Directors decided to build a new
chemithermal mechanical (BCTMP) pulp mill in Kaskinen. The planned
production capacity is 300,000 tonnes a year, all of which will be
used as the raw material for the Group’s own paper mills. The new
facility will contribute to improving the quality of paper grades and
lowering costs. The pulp mill will be completed in the autumn of 2005
and provide employment for about 65 people. The total price of the
investment is about EUR 180 million and the financing requirement for
it will be spread over 2004 and 2005.


ACQUISITIONS, DIVESTMENTS AND RESTRUCTURING

During January-June, M-real purchased all the Metsä Tissue shares
owned by SCA and other shareholders. Metsä Tissue was delisted from
the Main List of Helsinki Exchanges on 19 June. The total price of
the shares and stock options was about EUR 128 million.

In March, M-real purchased 24.7 per cent of the shares in Oy Hangö
Stevedoring Ab, becoming the company’s sole owner. Metsä Tissue’s
holding in its subsidiary Zaklady Papiernicze Krapkowicach SA rose to
100 per cent during the report period.

The acquisition of the Czech office paper merchant Narpex, which Map
Merchant Group agreed, entered into force in the Czech Republic in
January. Furthermore, Map Merchants Group acquired the shares held by
minority shareholders in its Danish subsidiary Schramm-Papirgros A/S
in accordance with the shareholder agreement in January. In March,
Metsä-Botnia purchased 60 per cent of the shares in the Uruguayan
company Compania Forestal Oriental S.A (FOSA) from Shell
International Renewables BV.

In June, M-real announced it had made a bid to the Portuguese State
for a 25 per cent stake in the Portuguese pulp and paper company
Portucel Group. As part of its offer, M-real was to transfer its Home
& Office business area to Portucel. In September, M-real issued a
press release announcing that the company had not reached its
objectives in the negotiations with the Portuguese government
following its tender offer. In practice, this meant retracting the
offer.

In June, M-real announced an agreement with IBM Global Services
concerning transfer of M-real’s own information technology services
and the entire operations of its associated company Logisware Oy to
IBM’s organization. The agreement entered into force on 1 September
2003.

In October, M-real announced it was closing its present market pulp
business at the Lielahti chemithermal mechanical pulp mill and would
use the mill’s entire production in its own paperboard manufacture.

FINANCING

Interest-bearing net liabilities amounted to EUR 3,132 million at the
end of September (Dec. 2002: 3,019).

The equity ratio was 33.1 per cent (Sep. 2002: 33.8, Dec. 2002: 34.2)
and the gearing ratio was 132 per cent (Sep. 2002: 121, Dec. 2002:
119).

Liquidity is good. The Group’s liquidity at the end of September was
EUR 1,436 million, of which EUR 1,278 million consisted of committed
long-term credit facilities and EUR 158 million represented liquid
funds and investments. In addition, in order to meet its short-term
financing needs the Group had at its disposal non-binding domestic
and foreign commercial paper programmes and credit facilities
amounting to about EUR 600 million.

At the end of September an average of 3.2 months of net foreign
currency flow was hedged. The degree of hedging during the report
period has varied between 3 and 5 months. At the end of the report
period, about 103 per cent of the foreign shareholders’ equity was
hedged.

In August Moody´s Investor Service placed Baa3/PRIME-3 ratings of M-
real and Metsä Group Financial Services Oy on review for possible
downgrade.

At the end of September the Group’s liabilities were tied to fixed
interest rates for a period of 18 months. During January-September,
the interest rate maturity has varied from 12 to 18 months.

In September, Metsä-Botnia signed an agreement on a five-year EUR 210
million syndicated revolving credit facility. The credit will be used
as a general stand-by credit facility for the company and also for
refinancing the existing loan arrangement.


SHARES

The highest price of M-real’s Series B shares on Helsinki Exchanges
during the January-September period was EUR 8.99, whereas the lowest
was EUR 6.21. The average share price was EUR 7.17, compared with EUR
8.28 in 2002. The price of the Series B share was EUR 7.82 at the end
of the report period on 30 September 2003.

Turnover of the Series B share was EUR 429 million, or 42 per cent of
the shares outstanding. The market value of the Series A and B shares
on 30 September 2003 totalled EUR 1,404 million.

As of 30 September 2003 Metsäliitto Osuuskunta owned 38.5 per cent of
M-real Corporation’s shares and 64.2 per cent of the voting rights
conferred by these shares. International investors owned 35.3 per
cent of the shares.

The Board of Directors does not have valid authorizations to carry
out a share issue or issues of convertible bonds or bonds with
warrants.


NEAR-TERM OUTLOOK

The recession in Europe is still continuing and an upswing is not
expected over the next few months. In the United States, there are
patchy signs of a pick-up in the economy and paper consumption, but
the main economic indicators still do not clearly point the course
developments will take in the near-term.  In Europe there are no
unambiguous signs of an improvement in the demand for paper.
Nevertheless, a perceptible seasonal upswing in the demand for coated
papers in September-November seems to be under way. Production
curtailments will have to be continued over the next few months.

Apart from the world economy and foreign exchange rates, fourth-
quarter earnings will be affected by shutdowns, in line with
collective bargaining agreements, at the Finnish mills in December. M-
real’s fourth-quarter result is likely to be in the red.

Espoo, 27 October 2003

BOARD OF DIRECTORS

BUSINESS AREAS AND MARKET TRENDS

Consumer packaging

                          III    II     I     IV   III  2002   II-III
                           03    03    03     02    02             03
                                                               change
Turnover                 214.  211.  229.   227.  231.  921.     1.5%
                            8     6     9      0     7     1
Operating profit         15.2   2.0  18.6    7.0  25.3  83.4         
Operating profit %        7.1   0.9   8.1    3.1  10.9   9.1         
Return on capital         6.8   1.3   7.8    3.7  11.1   9.1         
employed %
Mill deliveries 1,000     265   265   283    283   284  1.12     0.0%
t                                                          9
Board mills’ capacity      87    78    94     92    94    91         
utilization rate %

The Consumer packaging business area’s operating profit improved over
the previous quarter and was EUR 15.2 million (2.0). The previous
quarter’s weak earnings were attributable to the strong drop in
demand in the main markets, the appreciation of the euro and the low
capacity utilization rate of the new production line at Äänekoski.
Cost-saving measures that have been carried out improved
profitability in the report period. Delivery volumes remained at the
previous quarter’s level, but were down 7 per cent on the same period
last year. Euro-denominated average prices declined by about 1 per
cent on the third quarter. Capacity utilization of the new production
line at Äänekoski remained low and profitability was weak. The
average capacity utilization rate was 87 per cent (78). The order
book at the end of September was 13 days.

Total demand for folding boxboard in Europe increased by 3 per cent
over the previous quarter. All in all, M-real’s deliveries of folding
boxboard were at the same level as the second quarter. Deliveries to
Europe grew in line with aggregate demand and were up by 3 per cent.
However, delivery volumes to the USA and Asia fell short of the level
reached in the previous report period. No significant change occurred
in the average price of folding boxboard during the report period
compared with the previous period.

The total volume of linerboard delivered was on a par with the second
quarter. Demand in North America has improved and deliveries were up
by 17 per cent from the second quarter. The average price remained at
the previous level.

Demand for fluting remained weak. Nevertheless , deliveries were  up
by 7 per cent on the previous quarter. Average prices weakened
somewhat.

Worldwide demand for wallpaper base weakened further. The volume of
deliveries held up at the previous quarter’s level. Average prices
declined slightly.

Commercial printing

                         III     II     I    IV   III    2002   II-III
                          03     03    03    02    02               03
                                                                change
Turnover                364.   372.  403.  368.  403.  1,638.    -2.1%
                           9      8     6     1     6       4
Operating profit        -2.2    5.1  18.3  16.6  22.9   106.7         
Operating profit %      -0.6    1.4   4.5   4.5   5.7     6.5         
Return on capital       -0.4    1.4   5.3   4.4   5.6     7.1         
employed %
Mill deliveries 1,000    433    439   460   425   419   1,757    -1.4%
t
Capacity utilization      82     83    86    79    74      81         
rate %

The Commercial printing business area reported an operating loss of
EUR 2.2 million (profit of 5.1). The decline in the operating result
was due mainly to a lower delivery volume. The average price in euros
slipped a bit compared with the previous quarter.

Deliveries by west European producers of coated fine paper rose by 4
per cent, compared with the previous quarter. The delivery volume of
the Commercial printing business area’s products fell by 1 per cent.
The average running time of the paper machines was one day shorter
than in the previous quarter and the capacity utilization rate was 82
per cent (83). At the end of September, orders for 10 days of
production had been placed in the order books.

Zanders was transferred to the Commercial printing business area as
from the beginning of 2003. The figures for 2002 have been adjusted
accordingly.


Home & Office

                          III    II     I     IV   III  2002   II-III
                           03    03    03     02    02             03
                                                               change
Turnover                 151.  170.  191.   200.  183.  782.   -11.3%
                            3     5     6      8     4     7
Operating profit          3.9  13.9  21.8   19.6  28.3  102.         
                                                           8
Operating profit %        2.6   8.2  11.4    9.8  15.4  13.1         
Return on capital         2.0   5.7   9.4   10.0  11.0  11.0         
employed %
Mill deliveries           207   229   246    211   218   902    -9.6%
1,000 t
Capacity utilization       73    89    93     79    88    89         
rate %


The Home & Office business area generated turnover of EUR 151.3
million (170.5) and operating profit of EUR 3.9 million (13.9).
Profitability was weakened by the fall in prices in west Europe. In
particular, the drop in the delivery volume, which declined on a
seasonal basis and the tough price competition, weakened profits.

Deliveries by west European producers of uncoated fine paper declined
by 8 per cent compared with the previous quarter. The Home & Office
business area’s delivery volume declined by 10 per cent. The average
running time of the paper machines was 13 days shorter than in the
previous quarter. Owing to low demand and the fall in product stocks,
the capacity utilization rate was only 73 per cent (89). The order
book at the end of September was about two weeks.


Publishing

                          III    II     I     IV   III  2002   II-III
                           03    03    03     02    02             03
                                                               change
Turnover                 199.  187.  204.   204.  191.  790.     6.5%
                            3     1     2      0     0     1
Operating profit         12.1  -6.7  10.3    8.8  16.5  43.1         
Operating profit %        6.1  -3.6   5.0    4.3   8.6   5.5         
Return on capital         4.0  -2.1   3.5    2.7   5.8   3.6         
employed %
Mill deliveries           265   258   269    255   234   977     2.7%
1,000 t
Capacity utilization       84    84    93     87    87    84         
rate %

The Publishing business area’s operating profit was EUR 12.1 million
(-6.7 ). Profitability improved substantially compared to the
previous quarter’s weak performance. However, the Q2 figures were
adversely affected by annual maintenance costs for the Finnish mills.
The earnings improvement was attributable to better production
efficiency at all the mills and a higher delivery volume.

Deliveries by west European producers of coated magazine paper (LWC)
rose by 3 per cent on the previous quarter. The Publishing business
area’s delivery volume also rose by 3 per cent. The average running
time of the paper machines was 2 days longer than in the previous
quarter and the capacity utilization rate was 84 per cent (84). The
order book was 15 days at the end of September.


Map Merchant Group

                         III     II     I    IV   III    2002   II-III
                          03     03    03    02    02               03
                                                                change
Turnover                332.   345.  367.  375.  371.  1,542.    -3.6%
                           5      0     5     0     7       8
Operating profit        -2.7    3.4   5.4  -9.3  -5.9   -14.9         
Operating profit %      -0.8    1.0   1.5  -2.5  -1.6    -1.0         
Return on capital       -2.3    4.0   5.8  -9.0  -4.0    -3.0         
employed %
Delivery volumes         312    317   328   311   307   1,270    -1.6%
1,000 t

The Map paper merchanting business area reported an operating loss of
EUR 2.7 million (3.4). The weakening of profitability was due to the
fall in the delivery volume and non-recurring write-downs of about 2
million euros on real-estate properties. The market situation
remained difficult.

OTHER BUSINESSES

Metsä Tissue Corporation

                         III     II     I    IV   III   2002  II-III
                          03     03    03    02    02             03
                                                              change
Turnover                164.   169.  164.  170.  162.   647.  -2.4 %
                           9      0     7     7     2      8
Operating profit        13.8    8.3  11.7   5.9  17.2   43.1        
Operating profit %       8.4    4.9   7.1   3.5  10.6    6.7        
Return on capital       16.6   10.2  14.5   7.6  21.0   13.2        
employed %


Metsä Tissue’s operating profit in the third quarter was EUR 13.8
million (8.3). Turnover and delivery volume declined on a seasonal
basis. Profitability was boosted by lower raw material costs and an
improved product mix.

Operating profit in January-September was EUR 33.8 million (Jan.-Sep.
2002: 37.2 million). Profitability was boosted by the rise in the
delivery volume together with an improved product range.
Profitability was weakened mainly by paper machine maintenance
shutdowns and the extra costs of starting up new production lines.
Average selling prices were slightly below the previous year’s level.

M-REAL GROUP (All figures unaudited)

PROFIT AND LOSS ACCOUNT    1-9/03      %   1-9/02      %
(EUR million)
Turnover                  4 569.9  100.0  4 976.9  100.0
  Interest in                -1.1            -3.0       
  associated companies
  Other operating            50.0            46.7       
  income
  Operating expenses      4 147.4         4 396.0       
  Depreciation              360.3           351.0       
Operating profit            111.1    2.4    273.6    5.5
  Net exchange               11.0           -35.5       
  gains/losses
  Other financial           -97.1   -1.9   -113.9   -3.1
income
  and expenses
Profit before                25.0    0.5    124.2    2.4
extraordinary items
  Extraordinary items         0.0           144.5       
Profit before taxes and      25.0    0.5    268.7    5.4
minority interest
  Taxes                     -23.0           -58.0       
  Minority interest          -1.0            -8.7       
Profit for the period         1.0    0.0    202.0    4.1

PROFIT AND LOSS ACCOUNT    Change      %  1-12/02      %
(EUR million)
Turnover                   -407.0   -8.2  6 564.2  100.0
  Interest in                 1.9            -4.9       
  associated companies
  Other operating             3.3            73.4       
  income
  Operating expenses        248.6         5 850.7       
  Depreciation               -9.3           457.7       
Operating profit           -162.5  -59.4    324.3    4.9
  Net exchange               46.5           -30.5       
  gains/losses
  Other financial            16.8          -159.5   -2.9
income
  and expenses
Profit before               -99.2  -79.9    134.3    2.0
extraordinary items
  Extraordinary items      -144.5           144.5       
Profit before taxes and    -243.7  -90.7    278.8    4.2
minority interest
  Taxes                      35.0           -59.8       
  Minority interest           7.7           -10.1       
Profit for the period      -201.0  -99.5    208.9    3.2


PROFIT AND LOSS ACCOUNT    7-9/03      %
(EUR million)
Turnover                  1 467.2  100.0
  Interest in                 7.2       
  associated companies
  Other operating            14.7       
  income
  Operating expenses      1 339.5       
  Depreciation              120.7       
Operating profit             28.9    2.0
  Net exchange               -0.5       
  gains/losses
  Other financial           -32.3   -2.3
income
  and expenses
Profit before                -3.9   -0.3
extraordinary items
  Extraordinary items         0.0       
Profit before taxes and      -3.9   -0.3
minority interest
  Taxes                     -14.0       
  Minority interest          -0.1       
Profit for the period       -18.0   -1.2


 Taxes include taxes corresponding to profit for the period.


BALANCE SHEET                   9/2003        %    9/2002      %
(EUR million)
Assets                                                          
 Fixed assets                  4 806.2     67.0   4 874.8   65.5
 Current assets                                                 
   Inventories                   822.2     11.5     823.2   11.1
   Other current assets        1 381.6     19.3   1 512.9   20.3
   Liquid funds                  158.4      2.2     230.0    3.1
Total                          7 168.4    100.0   7 440.9  100.0
                                                                
Liabilities                                                     
 Shareholders´ equity          2 349.7     32.8   2 446.8   32.9
 Minority interest                22.3      0.3      67.8    0.9
 Provisions for liabilities       58.6      0.8     102.4    1.4
 and charges
 Long-term liabilities         2 904.3     40.5   2 954.3   39.7
 Short-term liabilities        1 833.5     25.6   1 869.6   25.1
Total                          7 168.4    100.0   7 440.9  100.0


BALANCE SHEET                  12/2002        %
(EUR million)
Assets                                         
 Fixed assets                  4 934.5     66.6
 Current assets                                
   Inventories                   814.9     11.0
   Other current assets        1 460.9     19.7
   Liquid funds                  199.9      2.7
Total                          7 410.2    100.0
                                               
Liabilities                                    
 Shareholders´ equity          2 461.0     33.2
 Minority interest                74.6      1.0
 Provisions for liabilities       66.3      0.9
 and charges
 Long-term liabilities         3 030.3     40.9
 Short-term liabilities        1 778.0     24.0
Total                          7 410.2    100.0


CASH FLOW STATEMENTS            1-9/03   1-9/02  1-12/02   7-9/03
(EUR million)
 Profit before extraordinary      25.0    124.2    134.3     -3.9
 items
 Depreciation                    360.3    351.0    457.7    120.7
 Taxation                        -38.7    -64.0    -56.7    -10.4
 Other changes                     8.2      2.0    -14.3    -15.3
Funds from operations            354.8    413.2    521.0     91.1
 Change in working capital       -62.3     58.0    145.4     16.6
Cash flow from operations        292.5    471.2    666.4    107.7
 Gross capital                  -289.9   -180.0   -310.0    -46.8
 expenditures 1)
 Disposal and other changes        0.0    245.4    223.9      0.0
 in fixed assets
Cash flow after capital            2.6    536.6    580.3     60.9
expenditure
 Interest-bearing net debt of     -8.5      9.4     -9.0      0.0
 companies acquired and
 divested
 Dividend                       -107.4   -108.4   -108.4      0.0
Change in interest-bearing      -113.3    437.6    462.9     60.9
liabilities
(+ decrease / - increase)                                        

1) Excl. interest-bearing net debt of acquired companies.



KEY FIGURES                     1-9/03   1-9/02  1-12/02  7-9/03
Earnings per share EUR            0.01     0.32     0.36   -0.10
(diluted 1-9/03; 0.01 EUR)                                 
Return on capital employed %       2.9      6.5      5.8     2.3
Return on equity %                 0.1      3.6      3.0    -3.0
Gross capital expenditures         290      180      310      47
EUR million 1)
Personnel, averages             20 562   21 276   21 070  21 014
                                                        
                                  9/03     9/02    12/02
Shareholders´ equity per         13.13    13.67    13.75
share EUR
Equity ratio %                    33.1     33.8     34.2
Gearing ratio %                    132      121      119

Securities and guarantees EUR     9/03     9/02    12/02
million
For own loans                      400      356      487
For associated companies             0        0        0
For affiliated companies             5        4       26
For others                          10       23        5
Total                              415      383      518
                                                        
Open derivative contracts        Gross    Gross    Gross
EUR million                     amount   amount   amount
                                  9/03     9/02    12/02
Interest rate derivatives       13 214   15 545    9 998
Currency derivatives             6 616    6 626    4 832
Total                           19 830   22 171   14 830

1) Excl. interest-bearing net debt of acquired companies.


TURNOVER          Quarter I-III                 Quarterly
EUR Million         2003    2002  III 03  II 03    I 03   IV 02 III 02
 Consumer          656.3   694.1   214.8  211.6   229.9   227.0  231.7
 packaging
 Commercial       1141.3  1270.3   364.9  372.8   403.6   368.1  403.6
 printing
 Home & Office     513.4   581.9   151.3  170.5   191.6   200.8  183.4
 Publishing        590.6   586.1   199.3  187.1   204.2   204.0  191.0
 Map Merchant     1045.0  1167.8   332.5  345.0   367.5   375.0  371.7
 Group
 Metsä Tissue      498.6   477.1   164.9  169.0   164.7   170.7  162.2
 Internal sales    124.7   199.6    39.5   51.8    33.4    41.7   60.5
 and other
 operations
GROUP TOTAL       4569.9  4976.9  1467.2 1507.8  1594.9  1587.3 1604.1
                                                                      
OPERATING PROFIT  Quarter I-III                 Quarterly
AND RESULT
EUR Million         2003    2002  III 03   II 03   I 03   IV 02 III 02
 Consumer           35.8    76.4    15.2     2.0   18.6     7.0   25.3
 packaging
 Commercial         21.2    90.1    -2.2     5.1   18.3    16.6   22.9
printing
 Home & Office      39.6    83.2     3.9    13,9   21.8    19.6   28.3
 Publishing         15.7    34.4    12.1    -6.7   10.3     8.8   16.5
 Map Merchant        6.1    -5.6    -2.7     3.4    5.4    -9.3   -5.9
 Group
 Metsä Tissue       33.8    37.2    13.8     8.3   11.7     5.9   17.2
 Other             -41.1   -42.1   -11.2   -11.2  -18.7     2.1   -7.2
operations
 OPERATING         111.1   273.6    28.9    14.8   67.4    50.7   97.1
PROFIT
 % of turnover       2.4     5.5     2.0     1.0    4.2     3.2    6.1
 Net exchange       11.0   -35.5    -0.5     5.3    6.2     5.0  -16.9
 gains/losses
 Other financial   -97.1  -113.9   -32.3   -29.8  -35.0   -45.6  -38.7
 income and
 expenses
PROFIT BEFORE       25.0   124.2    -3.9    -9.7   38.6    10.1   41.5
EXTRAORDINARY
ITEMS
 % of turnover       0.5     2.5    -0.3    -0.6    2.4     0.6    2.6
OPERATING         Quarter I-III                 Quarterly
PROFIT %
                    2003    2002  III 03   II 03   I 03   IV 02 III 02
 Consumer            5.5    11.0     7.1     0.9    8.1     3.1   10.9
 packaging
 Commercial          1.9     7.1    -0.6     1.4    4.5     4.5    5.7
 printing
 Home & Office       7.7    14,3     2.6     8.2   11.4     9.8   15.4
 Publishing          2.7     5.9     6.1    -3.6    5.0     4.3    8.6
 Map Merchant        0.6    -0.5    -0.8     1.0    1.5    -2.5   -1.6
 Group
 Metsä Tissue        6.8     7.8     8.4     4.9    7.1     3.5   10.6
GROUP TOTAL          2.4     5.5     2.0     1.0    4.2     3.2    6.1


RETURN ON CAPITAL               I - III Q           Year
EMPLOYED %
                                     2003        2002       2001
 Consumer packaging                   5.3         9.1       14.9
 Commercial printing                  2.1         7.1        6.2
 Home & Office                        5.8        11.0        6.2
 Publishing                           1.8         3.6        5.7
 Map Merchant Group                   2.5        -3.0       -0.8
 Metsä Tissue                        13.8        13.2       10.3
 GROUP TOTAL                          2.9         5.8        6.9
                                                                
CAPITAL EMPLOYED,                    9/03       12/02      12/01
EUR Million
                                                           
 Consumer packaging                 969.0       991.0      934.0
 Commercial printing              1 587.4     1 567.5    1 621.1
 Home & Office                      860,0       973,7    1 018,4
 Publishing                       1 240.9     1 256.2    1 378.2
 Map Merchant Group                 392.1       410.4      484.8
 Metsä Tissue                       334.8       325.5      342.3
 Other assets                       411.5       372.8      515.1
 GROUP TOTAL                      5 795.6     5 897.1    6 293.8

PERSONNEL,                      I - III Q   I - III Q   I - IV Q
Average                              2003        2002       2002
                                                           
 Consumer packaging                 3 106       3 196      3 151
 Commercial printing                5 340       5 916      5 831
 Home & Office                      2 123       2 127      2 125
 Publishing                         1 618       1 834      1 769
 Map Merchant Group                 2 566       2 779      2 745
 Metsä Tissue                       3 337       2 950      3 067
 Other operations                   2 472       2 474      2 382
 GROUP TOTAL                       20 562      21 276     21 070


PRODUCTION               Quarter I-III         Quarterly
1000 tonnes                2003    2002  III 03    II 03    I 03
 Commercial printing      1 338   1 321     431      446     461
 Home & Office              670     708     200      233     237
 Publishing 1)              807     734     270      254     283
 Paperboard                 509     506     172      154     183
 Fluting                    136     167      50       38      48
 Liner 2)                   110     114      36       33      41
 CTMP                       247     204      88       77      82
 Metsä-Botnia’s pulp 2)     854     808     305      269     280
 M-real’s pulp              904     883     290      303     311

PRODUCTION                              Quarterly
1000 tonnes               IV 02  III 02   II 02     I 02   IV 01
 Commercial printing        436     406     448      467     432
 Home & Office              207     231     233      244     207
 Publishing 1)              256     244     235      255     242
 Paperboard                 173     167     169      170     152
 Fluting                     57      64      49       54      60
 Liner 2)                    37      40      39       35      36
 CTMP                        76      79      63       62      49
 Metsä-Botnia’s pulp 2)     249     294     250      264     234
 M-real’s pulp              308     290     304      289     264


1) Includes 50 % of the production of Albbruck (until 30.6.2002).
2) Equals to M-real´s ownership (47 %).


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