Metsä Tissue continues positive performance

22/10/2009

Metsä Tissue continues positive performance 

The sales of Metsä Tissue totalled EUR 661 million (695) and operating profit
EUR 72 million (33) in January-September 2009. Sales declined by -5% compared
to the previous year as a result of adverse exchange rates (-5%) and lower
sales volumes (-2%). The sales volume of Metsä Tissue's own brands increased
compared to the previous year; the Serla brand, in particular, continued to be
strong. During the period, the company's Away-from-Home business increased its
sales volumes after the slightly weaker first half of the year. The worldwide
pandemic threat of H1N1 virus clearly increased the awareness of the importance
of a good level of hygiene both at home and at work. 

Pulp prices began to rise after spring. The prices of pulp, other raw material
and transport costs are expected to rise further. The availability of recovered
fibre is more limited due to reduced paper consumption. 

Metsä Tissue announced its streamlined operating model and organisation, which
now comprises three instead of the former five business areas. Today, Metsä
Tissue's businesses are: Consumer, Away-from-Home and Baking & Cooking. The
napkin category is seen as an area to be further developed and expanded as an
integrated part of the Consumer and Away-from-Home businesses. 

“The organisational and structural simplification, followed by streamlined
processes will increase the company's agility and free capacity to enhance
performance and competences. Our aim is to see the positive results at the
customer interface as well as in further strategic brand growth.” says Hannu
Kottonen, CEO. 

The company invested in three additional napkin machines including printing and
packaging equipment. The investment will further increase flexibility and
supply reliability. New supply locations within the existing mill network are
under evaluation. 

With the launch of the SAGA brand in September, the company unveiled its
strategy targeted at the baking, cooking, food processing and food service
segments. In future, the Metsä Tissue baking and cooking offering will be sold
and marketed under the SAGA brand. SAGA communicates the multiple customer
benefits to households, professional chefs as well as to paper converters. 

The company's Katrin brand released its new dispenser designs Silver and White,
which include close to 40 new products to cover the complete washroom solution
needs. 

Metsä Tissue's School Hygiene Report, based on a study made in seven European
countries, revealed that school children suffer from school toilet phobia. The
report gained much interest in the European media. 

Serla Herbal Sensitive, a Swan-labelled extra-gentle toilet tissue containing
vitamin B5 and herbal balsam was launched in Finland and the four-ply Lambi
Aloe Vera product was launched in Eastern Europe. 

The demand for tissue and cooking paper products is expected to remain stable
regardless of the variations between different businesses and geographical
areas. In spite of the recession, high quality consumer products have been the
choice of European consumers as seen by the company's strong brand sales. 

Metsä Tissue's cash flow generation and liquidity is good. After intensive
efficiency improvement programmes over the last couple of years, the company is
oriented to seek growth via several development programmes. 

Tissue and Cooking Papers 	     1-9/09 	 1-9/08       Q3/09 	 Q3/08
Sales 	                                661 	    695         226 	   235
EBITDA 	                                103 	     74 	 42 	    26
 - ” -, excl. non-recurring items       103 	     75 	 42 	    27
Depreciation and impairment 	        -31 	    -42         -11 	   -13
Operating result 	                 72 	     33 	 31 	    13
 - ” -, excl. non-recurring items 	 72 	     34 	 31 	    14
Investments                              18 	     17 	  8 	     7
Personnel at end of period 	      3 216 	  3 245       3 216 	 3 245

About Us

Metsä Tissuewww.metsatissue.com With its high-quality tissue and cooking papers, Metsä Tissue makes life more comfortable for consumers, customers and end-users every day. Metsä Tissue is a leading tissue paper products supplier to households and professionals in Europe and the world’s leading supplier of baking and cooking papers. Our main brands are Lambi, Serla, Mola, Tento, Katrin and SAGA. With production units in five countries, we employ a total of about 2,700 people. Our sales in 2016 were EUR 1 billion. Metsä Tissue is part of Metsä Group.

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