METSÄLIITTO GROUP FINANCIAL STATEMENTS: METSÄLIITTO GROUP SALES TOTAL EUR 8,643

METSÄLIITTO GROUP                      STOCK EXCHANGE RELEASE


                                       8.2.2006 1 PM

METSÄLIITTO GROUP FINANCIAL STATEMENTS: METSÄLIITTO GROUP SALES TOTAL EUR 8,643
MILLION

Labour conflict and non-recurring items behind EUR -159 million loss

Result for 2005

    . Sales EUR 8,643 million (8,598 million in 2004)
    . Operating profit EUR 50 million (144 million)
    . Result before taxes EUR -159 million (-76 million)

Result for last quarter of 2005

    . Sales EUR 2,265 million (2,136 million in 9-12/2004)
    . Operating loss EUR -13 million (a profit of 4 million)
    . Result before taxes EUR -42 million (-45 million)

Labour conflict and non-recurring items burden profitability by
EUR 180 million

    . The six-week labour conflict affected the Group's result by placing an
      additional burden of EUR 120 million on it. Non-recurring items totalled
      EUR 60 million.
    . M-real's efficiency-enhancement programme is proceeding as planned. The
      labour dispute and non-recurring items caused a EUR -114 million loss.
    . The first phase of merging Finnforest with the parent-cooperative is
      expected to bring annual savings of about EUR 10 million in the support
      functions.
    . Metsä-Botnia and Metsä Tissue performed according to expectations when the
      effects of the labour conflict are taken into account.

"The largest single factor behind Metsäliitto Group's unprofitable performance in
2005 was the record-length labour dispute in the forest industry, but the result
was also unsatisfactory for other reasons. We must complement the efficiency-
enhancement measures underway in the subsidiaries with a comprehensive effort to
continuously improve profitability and efficiency. We must act cost-effectively
and as a coherent Group, and it is my belief that this will result in the kind of
profitability in which we can all take pride."

                                         President & CEO Kari Jordan

Metsäliitto Group
 INCOME STATEMENT                 2005   2004   2005   2004   
 (EUR mill.)                      1-12   1-12   10-12  10-12  
 Sales                            8643   8598   2265   2136   
   Other operating income         148    135    27     21     
   Operating expenses             -8182  -8066  -2137  -2032  
   Depreciation and                                           
 impairment losses                -559   -522   -168   -121   
 Operating profit                 50     144    -13    4      
   Share of results in            4      1      4      -4     
 associates                                                   
   Net exchange gains /           -27    -2     -4     19     
 losses                                                       
   Other financial income &       -187   -219   -29    -64    
 expenses                                                     
 Result before tax                -159   -76    -42    -45    
   Income tax                     15     -28    8      -5     
 Result for the financial period                              
                                  -144   -104   -34    -50    


Some principles in consolidating Group companies:
- internal sales, internal dividends and internal financial items have been
eliminated
- internal gains in other operating income have been eliminated
- Metsä-Botnia's figures consolidated line-by-line 53% (39% + 14%)
- Vapo's figures consolidated line-by-line 49.9%

                                   2005  2004   
 KEY RATIOS                        1-12  1-12   
 Return on capital employed, %     1.2   2.5    
 Return on equity, %               -5.3  -3.9   
 Equity ratio, %                   30.5  32.1   
 Net gearing ratio, %              137   120    
 Interest-bearing net liabilities,              
 MEUR                              3631  3336   
 Capital expenditure, MEUR         686   358    
 Personnel, average                29870 29557  

Most important Group companies
                                                                *)      
 Income statement 2005           Metsä-  Finn-   Metsä   M-real Metsä- 
 (EUR mill.)                     liitto  forest  Tissue         Botnia   
 Sales                           1109    1986    696     5241   947     
   Other operating income        8       30      8       206    28      
   Operating expenses            -1089   -1905   -634    -5008  -783    
   Depreciation and              -3      -85     -46     -403   -112    
 impairment losses                                                      
 Operating profit                25      26      24      36     80      
   Share of result in            0       0       0       -2     0       
 associates                                                             
   Net exchange gains /          0       0       4       -33    4       
 losses                                                                 
   Other fin. income &           16      -29     -24     -115   -4      
 expenses                                                               
   Group subsidy                 -10     22      0       0      0       
 Result before tax               31      19      4       -114   80      

*) 100%

FINANCIAL STATEMENTS OF THE METSÄLIITTO GROUP 2005

Sales and result
The sales of the Metsäliitto Group were EUR 8,643 million in 2005 (2004: EUR
8,598 million), or almost the same as in the previous year. EUR 1,108 million
(1,066) of sales were generated in Finland, while exports and overseas
subsidiaries accounted for EUR 7,535 million (7,532).

The operating profit was EUR 50 million (144). It was adversely affected by lower
average sales prices for fine papers, increasing energy costs and the weak
profitability of sawn timber, but the largest factor by far was the labour
dispute in the Finnish forest industry, which had an estimated overall effect of
EUR 120 million.

The operating profit less EUR 60 million in non-recurring items was EUR 110
million. The most significant non-recurring item adversely affecting the
operating profit was the EUR 40-million expense entered by M-real in December;
EUR 24 million of this was associated with the continuation of an efficiency-
enhancement programme at the Pont Sainte Maxence mill in France. Most of the
remaining related to efficiency-enhancement programmes that will be implemented
at various units this year. A EUR 15-million expense reserve associated with the
efficiency-enhancement programme for M-real's Swedish operations and a EUR 14-
million write-down of Finnforest's fixed assets also reduced the operating
profit.

Net financial expenses were 2.4 per cent of sales (2.6). Financial income was EUR
23 million (17), shares in associated companies' profits totalled EUR 4 million
(1) and financial expenses came to EUR 210 million (236). Exchange rate
differences in financing totalled EUR -26 million (-2).

The result before taxes was EUR -159 million (-76). Taxes, including the change
in the deferred tax liability, totalled EUR +15 million (-28). The result for the
financial period was EUR -144 million (-104), EUR -50 million (-24) of which was
attributable to the owners of the parent cooperative and EUR -94 million (-80) to
the minority interest.

The Metsäliitto Group would have posted a small profit in 2005 if the result had
not been affected by costs associated with the labour dispute and non-recurring
items entered into the financial statements.

The Metsäliitto Group's return on capital employed was 1.2 per cent (2.5) and the
return on equity was -5.3 per cent (-3.9).

Balance sheet and financing
The Group's total liquidity was EUR 1.6 billion (2.1) at the end of December. Of
this, EUR 0.2 billion (0.3) was in liquid assets and investments and EUR 1.4
billion (1.8) in binding credit-facility agreements not included in the balance
sheet. In addition, the Group can satisfy short-term financial needs with non-
binding commercial paper schemes in Finland and abroad as well as credit lines
amounting to about EUR 0.8 billion.

The equity ratio of the Metsäliitto Group was 30.5 per cent and net gearing was
137 per cent at the close of the year (32.1% and 120%). Interest-bearing net
liabilities increased by EUR 295 million during the year and stood at EUR 3,631
million at the end of December (3,336).

In April, the Representative Council of Metsäliitto Cooperative decided to amend
its by-laws to allow one third of the distributable surplus confirmed in the most
recent balance sheet to be used annually for redemption of shares and additional
shares. According to the amended by-laws, the amount of share capital that can be
used for redemption is entered under liabilities, while the rest is entered under
members' capital.

Members' capitals of the Metsäliitto Cooperative increased by EUR 50 million
during the year. Members' capital increased by EUR 11.6 million, additional A-
series capital by EUR 30.6 million and additional B-series capital by EUR 7.8
million.

M-real's Annual General Meeting amended the company's articles of association to
allow owners to convert 'A' shares to 'B' shares if they so request. 1,000 'A'
shares were converted into 'B' shares during the year.

Standard & Poor's Ratings Services lowered M-real's long-term credit rating from
BB+ to BB- in March, and changed its outlook from negative to stable. In October,
Moody's Investors Services changed its outlook on M-real's Ba2 credit rating from
stable to negative.

Adoption of International Financial Reporting Standards (IFRS)
The Metsäliitto Group adopted International Financial Reporting Standards (IFRS)
from the beginning of 2005. The effects of the transition on the profit and loss
account and balance sheet were explained in detail in a press release published
on 26 April 2005. This is available on Metsäliitto's website at
www.metsaliitto.com.

Market review

Wood markets
Wood trading got off to a healthy start right from the beginning of the year, but
slowed in May-June because of the labour conflict. Sales were quieter than usual
in the autumn term and Metsäliitto's full-year purchase amount from privately
owned forests only reached 15.1 million cubic metres, which represented 90 per
cent of the target figure. The ending of the transitional period in Finnish
forest taxation had a significant effect only in northern Finland and
Ostrobothnia. The prices of spruce and birch logs were rising during the year,
while the price of pine logs was clearly falling; fibrewood prices remained
stable.

Metsäliitto delivered 23.5 million cubic metres of wood to production facilities
in Finland (wood chips included); the budgeted amount had been 26.8 million.
Lower demand for wood was caused by the labour conflict. Thomesto delivered 3.9
million cubic metres of wood to Finland.

Wood products
Demand remained stable in the sawn timber market, but because of excess supply it
was not possible to raise prices in the first half of the year. Storm damage in
southern Sweden has increased production volumes of Swedish spruce sawn timber,
leading to aggressive selling. Demand for pine sawn timber improved slightly in
the second half of the year, due partly to a repositioning of sawmilling capacity
to accommodate more sawing of spruce. Moderate price hikes were implemented in
some segments of the pine timber market.

The demand for and price development of birch and softwood plywood were better
than in the previous year. The orderbook for Kerto LVL was at a good level and
this product's market position was strong.

Construction remains lively in the Nordic countries and in eastern Central
Europe, but is slowing down in the UK and remains weak in Germany.

Tissue paper products
The protracted labour conflict, a tight market situation and rising prices of raw
materials and energy all contributed to make 2005 a very challenging year.
However, Metsä Tissue was able to compensate for a significant portion of the
increased costs of its tissue paper business through improved productivity and
quality, thus keeping profitability on a satisfactory level.

Special arrangements and additional deliveries by the company's other mills
helped ensure a reasonable level of availability for products during the labour
conflict, minimising permanent customer losses.

Paper and paperboard
Deliveries of coated and uncoated fine papers by suppliers in Western Europe
remained on the levels of 2004. Deliveries by manufacturers of coated magazine
paper rose by 1 per cent. The price development of coated magazine paper was the
most favourable; average prices rose by 2 per cent. The prices of coated fine
papers were almost unchanged, whilst the prices of uncoated fine papers fell by 3
per cent. The downward development in the price of office paper, which had
continued for years, ended towards the close of the year and the prices of
especially lower-quality grades were successfully increased.

Demand for folding boxboard in Western Europe remained on the previous year's
level. On the other hand, M-real's exports beyond its main market area fell
strongly because of the labour conflict. The sales prices of folding boxboard did
not change significantly.

Pulp
At the beginning of the year, demand for pulp was good and prices were rising. In
spring, the price of softwood pulp rose to USD 645 and the price of hardwood pulp
to USD 600. After spring, producers' softwood stockpiles rose above the normal
level and its price fell to USD 600. Inventories of hardwood pulp remained stable
despite the fact that almost two million tonnes of new production capacity went
on stream between the end of 2004 and May 2005. Shutting down old capacity and
numerous stoppages kept supply and demand in equilibrium.

A new collective labour agreement made it possible to run Finnish production
facilities also over the Christmas holidays. Metsä-Botnia's last-quarter turnover
rose by 16 per cent from the previous year. Annual turnover fell by 11 per cent
because of the labour conflict, however.

Personnel
In 2005, Metsäliitto and its subsidiaries employed an average of 29,870 people
(29,557); 9,501 in Finland (9,736) and 20,369 abroad (19,821). The parent company
employed 755 people (819) on average.

Personnel totalled 29,007 (28,783) at the close of the financial period, 19,790
(19,587) of whom were employed overseas. The Vapo Group employed 1,850 and Botnia
1,654 at the end of the year. 49.9 per cent of Vapo and 53 per cent of Botnia are
consolidated into the financial statements of Metsäliitto Group.

Metsäliitto Cooperative CEO Kari Jordan assumed the position of President at the
beginning of 2006. Antti Oksanen, who had held the position of President for ten
years, will retire next summer.

Metsäliitto Cooperative had a total of 131,175 (130,869) members at the close of
the year.

Investments, acquisitions and divestments
The Metsäliitto Group's capital expenditure into fixed assets and corporate
acquisitions totalled EUR 686 million (358).

In January, Metsäliitto Cooperative bough 16.6 per cent of the shares in Vapo
from the Finnish State for EUR 47 million, increasing Metsäliitto's stake in the
company to 49.9%. As of the beginning of 2005, Vapo Group has been consolidated
into the financial statements of the Metsäliitto Group using the proportional
method.

At the end of January, Metsäliitto acquired a 49.9% stake in a company called
Finsilva, which bought the forest assets owned jointly by M-real and Metsäliitto
as well as the forests owned by the Suomi Mutual Life Assurance Company.

A significant share transaction took place within the Metsäliitto Group at the
end of March, when Metsäliitto Cooperative bought 8 per cent of Metsä-Botnia's
shares from its subsidiary M-real for a price of EUR 164 million.

In March, Metsäliitto raised the share capital of its subsidiary Finnforest by
EUR 50 million.

In June, Thomesto acquired all of the shares in OOO Progress, a timber
procurement company operating in the Leningrad oblast, Russia. Thomesto had
previously held a 40 per cent stake in the company. The acquisition will
strengthen Metsäliitto's position in the Russian wood procurement sector and
ensures timber supplies to Metsä-Botnia's sawmill. Thomesto sold its 40 per cent
stake in the SIA Vika Wood and AS Toftan sawmills in the Baltic countries in
September.

Metsä-Botnia's sawmill in Russia commenced operations in January 2006. It has an
annual production capacity of 200,000 cubic metres and the total cost of the
investment exceeded EUR 50 million.

Finnforest is expanding its Kerto LVL production capacity in Punkaharju from
60,000 to 130,000 cubic metres a year. The estimated cost of the investment is
EUR 20 million and it is scheduled for completion early this year.

The EUR 60-million modernisation of the paperboard machine in Simpele is
proceeding as planned and annual production capacity will increase by 45,000
tonnes to 215,000 tonnes. The investment will be completed in phases this spring.

The new BCTMP mill in Kaskinen commenced operations in August and deliveries
started in September. The mill's production capacity is 300,000 tonnes, all of
which will be used as raw material at the Group's own facilities. The total cost
of the investment is some EUR 180 million.

Uruguay pulp mill project
A decision to build a mill that will produce one million tonnes of eucalyptus
pulp was made in March 2005. The total cost of the investment will come to about
USD 1.1 billion.

The pulp mill was granted an environment permit in April 2005. The Uruguayan
government granted free-trade zone status to the project, which came into effect
on the same date as the environment permit.

In May, a contract was signed with Andritz, who will supply the mill's main
process equipment. The deal comprises a fibreline, from wood handling through to
pulp drying, and a chemicals recovery system. The value of the contract is over
EUR 200 million.

A contract with Jaakko Pöyry Group was concluded in September; under it, Pöyry
will assist in the implementation of the pulp mill project and assume
responsibility for the technical planning of the mill. Also in September, Kemira
and Metsä-Botnia signed a chemicals supply contract. Kemira will invest about EUR
60 million in chemicals plants to be built in the same complex as the pulp mill.


A dispute concerning the location of the mill, which is being built on the bank
of the Rio Uruguay border river, has developed between Uruguay and Argentina. The
two countries have established an expert commission to look into the matter and
the dispute has not affected the progress of the project. The mill is scheduled
for completion in the third quarter of 2007. It will directly employ some 300
people, but overall it will create over 8,000 jobs.

Organisation
As part of the Group's efficiency-enhancement and harmonisation programme, the
Board of Directors of Metsäliitto Cooperative approved a plan in August 2005 to
merge the domestic and international wood procurement organisations. The new
arrangement came into effect at the beginning of November.

A plan to merge the Finnforest Corporation with Metsäliitto Cooperative was
approved in late September. The implementation of the merger is expected to take
place in March 2006. Metsäliitto-Yhtymän Tehdasmittaus Oy is being merged with
Metsäliitto Cooperative as part of the same arrangement.

Results by business area

Wood procurement (Metsäliitto Cooperative and Thomesto)
The sales of Metsäliitto Cooperative were EUR 1,109 million in 2005 (1,155).
Deliveries of wood raw material to production facilities in Finland fell slightly
to 23.5 million cubic metres (24.5). The operating profit was EUR 25 million
(25), which represents 2.3 per cent of sales (2.2). EUR 2.4 million in profits
from the sale of shares is included in the operating profit.

The profit before financial items was EUR 41 million (89). A EUR 6-million write-
down related to the Forestia arrangement and EUR 28 million in dividend income
(63) are included in financial items. EUR 18 million in proceeds from company tax
reimbursements are included in the dividends of the comparison year.

The return on capital employed by Metsäliitto was 4.8 per cent (8.8). At the end
of the year, the equity ratio was 56.0 per cent (59.8) and net gearing was 19 per
cent (-8). Metsäliitto's interest-bearing net liabilities came to EUR 210 million
(-82).

Thomesto, which is responsible for overseas wood procurement, achieved sales of
EUR 451 million (426) and its operating profit was EUR 8 million (4). The
increase in the operating profit was mainly due to capital gains from selling
shares and a revaluation of forest assets. Some 3.9 million (3.4) cubic metres of
wood were delivered in Finland.

Wood products industry (Finnforest)
Finnforest's sales were EUR 1,986 million (1,923) and its operating profit came
to EUR 26 million (23). The net effect of non-recurring items included in the
operating profit was EUR 1 million. The result before taxes was EUR 19 million (-
11). A EUR 22-million Group contribution (5) is included in the result.

The return on capital employed was 3.0 per cent (2.5); the equity ratio was 32.1
per cent (27.0) and net gearing 133 per cent (179) at the end of the year.

Tissue paper products (Metsä Tissue)
Considering the market situation, Metsä Tissue's sales and operating profit have
developed according to expectations. Sales were EUR 696 million (689) and the
operating profit EUR 24 million (38). The weaker result compared to the previous
year was caused mainly by the labour conflict in Finland. The rising cost of
energy, transports and key raw materials are likewise having an adverse effect on
profitability.

Paper and paperboards (M-real)
M-real's sales were EUR 5,241 million (5,522) and the operating profit EUR 36
million (28). The operating result includes EUR +32 million of non-recurring
items (-33). Non-recurring income amounted to EUR 88 million and non-recurring
expenses to EUR 56 million.

The most significant item of non-recurring income was the EUR 81 million profit
made on the sale of an 8 per cent stake in Metsä-Botnia, while the most important
expense items were the EUR 20 million write-down on the fixed assets of the Pont
Sainte Maxence fine paper mill in France and the non-recurring EUR 4 million
expense reserve associated with an efficiency-enhancement programme at the mill
as well as a EUR 15 million expense reserve related to an efficiency-enhancement
project in the operations in Sweden.

Excluding non-recurring items, the operating profit was EUR 4 million (61).
Weaker profitability was due especially to the labour conflict in the Finnish
forest industry. The conflict had an estimated effect of EUR 85-90 million on
operating revenue. The falling price of uncoated fine paper, the rising costs of
oil-based raw materials and increasing energy costs were other factors behind the
weaker profitability.

Financial income and expenses amounted to EUR -148 million (-136) and the shares
in associated companies' profits totalled EUR -2 million (0). Exchange-rate
differences on accounts receivable and payable, financial items and the
valuations of currency hedging were EUR -33 million (4). Net interest and other
financial expenses were EUR -115 million (-140).

The loss before taxes was EUR 114 million (-108); the loss per share was EUR 0.25
(a profit of 0.19) and the return on capital employed was 1.2 per cent (0.9).
Excluding non-recurring items, the result was EUR -142 million (-75); the loss
per share was EUR 0.35 (a profit of 0.28) and the return on capital employed was
0.5 per cent (1.6).

M-real's equity ratio was 36.6 per cent (37.5) and net gearing 95 per cent (89).

Pulp (Metsä-Botnia)
Metsä-Botnia's sales were EUR 947 million (1,066) and the operating profit was
EUR 80 million (141). The labour conflict in the second quarter and re-starting
production in the beginning of the third quarter had a significant adverse effect
on sales and profits for the financial period.

The profit before taxes was EUR 80 million (135) and the return on capital
employed was 6.2 per cent (10.8). The equity ratio was 71.6 per cent (72.6) and
net gearing 6 per cent (-5).

39% of Metsä-Botnia's figures are consolidated into the financial statements of M-
real and a further 14% into the financial statements of the Metsäliitto Group.

Outlook

Demand for paper and paperboard products remained good in 2005, but price levels
remained at an unprecedented low level. In 2006, the average sales prices of
different paper grades are expected to rise slightly above the previous year's
levels.

The forest industry's capacity utilisation is forecast to remain high. This
should result in a lively year for the wood market. Traditional sawn timber will
probably continue to be beset by difficulties, but clarifying our strategy,
enhancing the efficiency of operations and implementing quality-based pricing for
pine logs, in which the price of roundwood is determined according to its
potential for value-added processing, will establish a foundation for improving
the profitability of Metsäliitto's wood products manufacturing segment.

In 2005, the Group decided to implement significant reorganisations and launched
new efficiency-enhancement programmes. The measures have already yielded results
and there are signs of a turnaround in profitability. The Metsäliitto Group would
have posted a small profit in 2005 if the result had not been affected by costs
associated with the labour dispute and non-recurring items entered into the
financial statements.

The disciplined implementation of measures aimed at improving cost-effectiveness
and profitability is a priority. Unless the operating environment is
significantly altered, the Metsäliitto Group is aiming for clear profits in 2006.


Espoo, 8 February 2006

BOARD OF DIRECTORS

Additional information:
Mr. Lauri Peltola, Group CCO, Metsäliitto, tel. +358 50570 5606
Mr. Ilkka Pitkänen, Group CFO, Metsäliitto, tel. +358 1046 94260


METSÄLIITTO GROUP

 Income statement                  2005    2004           
 (EUR mill.)                       1-12    1-12    Change 
 Sales                             8643    8598    45     
  Other operating income           148     135     13     
  Materials and services           -5385   -5343   -42    
  Employee costs                   -1424   -1423   -1     
  Other operating expenses         -1373   -1301   -72    
  Depreciation and impairment      -559    -522    -37    
 losses                                                   
 Operating profit                  50      144     -94    
  Share of results in associates   4       1       3      
  Net exchange gains / losses      -27     -2      -25    
  Other financial income and       -187    -219    32     
 expenses                                                 
 Result before tax                 -159    -76     -83    
  Income taxes                     15      -28     43     
 Result for the period             -144    -104    -40    
                                                          
 Attributable to                                          
 Owners of parent company          -50     -24     -26    
 Minority interest                 -94     -80     -14    
                                   -144    -104    -40    


                                   2005    2004           
 Balance sheet                     31.12.  31.12.  Change 
 ASSETS                                                   
 Non-current assets                                       
 Intangible assets                 818     802     16     
  Tangible assets                  4256    4148    108    
  Biological assets                51      201     -150   
 Financial assets                                         
  Interest bearing                 68      59      9      
  Deferred tax receivables         96      102     -6     
  Other non-interest bearing       201     283     -82    
                                   5490    5596    -106   
 Current assets                                           
 Inventories                       1293    1172    121    
 Receivables                                              
  Interest bearing                 5       66      -61    
  Non-interest bearing             1706    1564    142    
 Cash and cash equivalents         194     252     -58    
                                   3199    3055    144    
                                                          
 TOTAL                             8689    8651    38     
                                                          
 MEMBERS' FUNDS AND LIABILITIES                           
 Members' funds                    1328    1351    -23    
 Minority interest                 1317    1428    -111   
 Total members' funds              2645    2779    -134   
                                                          
 Non-current liabilities                                  
  Deferred tax liabilities         439     505     -66    
  Post employment benefit          270     271     -1     
 obligations                                              
  Provisions                       74      45      29     
  Interest bearing                 2915    2946    -31    
  Other non-interest bearing       90      37      53     
                                   3788    3805    -17    
 Current liabilities                                      
  Interest bearing                 983     768     215    
  Non-interest bearing             1273    1299    -26    
                                   2256    2067    189    
                                                          
 Total liabilities                 6044    5872    172    
                                                          
 TOTAL                             8689    8651    38     

                                                                           
                                                          
                              Mem-   Re-     Retained  Minority            
                              bers'  serves  earnings  interest                   
 Change in members' funds     capital                             Total    
 Members' funds 31.12.2003    545     63      947      1408       2963     
 Effect of transition to IFRS -114    -9      -122     -169       -414     
 Members' funds 1.1.2004,     431     54      825      1239       2549     
 IFRS                                                                      
 Translation differences                      17                  17       
 Dividends paid                               -34                 -34      
 Transfers                    -9      3                           6        
 Increase in members' capital 83                                  83       
 Increase in reserves                 2                           2        
 Effects of financial                 3                           3        
 instruments                                                               
 Minority interest                                     188        188      
 Result for the period                        -24                 -24      
 Members' funds 31.12.2004    505     62      784      1427       2778     
                                                                           
                                                                           
 Members' funds 1.1.2005      505     62      784      1427       2778     
 Translation differences                      6                   6        
 Dividends paid                               -34                 -34      
 Transfers                            10      -9                  1        
 Increase in members' capital 53                                  53       
 Increase in reserves                 1                           1        
 Effects of financial                 1                           1        
 instruments                                                               
 Minority interest                                     -111       -111     
 Result for the period                        -50                 -50      
 Members' funds 31.12.2005    558     74      696      1317       2645     


                                   2005    2004    
 Cash flow statement               1-12    1-12    
 Cash flow from operations                         
 Result for the period             -144    -104    
   Adjustments total               699     697     
   Change in working capital       -131    35      
 Cash generated from operations    424     628     
   Finance costs, net              -237    -224    
   Income taxes paid               -52     -81     
 Net cash from operations          135     323     
                                                   
 Cash flow from investments                        
  Acquisitions                     -68     -34     
  Purchases of assets              -538    -298    
  Sold assets and others           185     181     
 Net cash from investments         -421    -151    
                                                   
 Cash flow from financing                          
  Change in loans and                              
  other financial items            286     -77     
  Dividends paid                   -58     -62     
 Net cash flow from financing      228     -139    
                                                   
 Change in cash and cash           -58     33      
 equivalents                                       
                                                   
 Cash at beginning of period       252     219     
  Change in cash and cash                          
 equivalents                       -58     33      
 Cash at end of period             194     252     




BUSINESS SEGMENTS



                           I-IV/05  I-IV                  
 Consumer Packaging                 /04   IV/05     IV/04  
 Sales                     864      1045  231      256    
 EBITDA                    134      187   42       47     
 Depreciation & impairment                                
 losses                    -89      -90   -22      -17    
 Operating profit          45       97    20       30     


 Papers                     I-IV/05 I-IV                 
                                    /04    IV/05    IV/04  
 Sales                      2988    2944   775      759    
 EBITDA                     224     237    61       36     
 Depreciation & impairment  -274    -260   -83      -65    
 losses                                                    
 Operating profit           -50     -23    -22      -29    

                            I-IV/05 I-IV                 
 MAP Merchant Group                 /04    IV/05    IV/04  
 Sales                      1390    1368   357      343    
 EBITDA                     25      24     2        1      
 Depreciation & impairment  -7      -7     -2       -1     
 losses                                                    
 Operating profit           18      17     0        0      

                            I-IV/05 I-IV                 
 Wood products                      /04    IV/05    IV/04  
 Sales                      1986    1923   497      466    
 EBITDA                     111     94     40       15     
 Depreciation & impairment                                 
 losses                     -85     -71    -31      -19    
 Operating profit           26      23     9        -4     

EBITDA = result before depreciation and impairment losses


                             I-IV/05 I-IV                 
 Others                              /04   IV/05    IV/04  
 Operating profit            10      31    -20      7      
 of which                                                  
    Wood procurement in      25      25    12       6      
 Finland                                                   
    Internat. wood           8       4     0        1      
 procurement                                               
    Tissue paper             24      38    4        8      
 products                                                  
    Others and Group         -47     -36   -36      -8     
 elim.                                                     
                                                           

Production

                          I-IV/05 I-IV                 
 1 000 units                      /04   IV/05    IV/04  
 Paper, t                 3985    4008  1048     1030   
 Paperboard, t            985     1330  272      326    
 Sawn goods, m3           4136    4185  1160     1014   
 Processed timber, m3     1181    1166  291      427    
 EW-products, m3          990     911   238      225    
 Pulp & CTMP, t (M-real)  1533    1533  421      399    
 Pulp, t (Botnia)         2177    2450  647      601    


 Quarterly data             2005  2005  2005  2005  2004  2004  2004  2004  
                            IV    III   II    I     IV    III   II    I     
 Sales by segment                                                           
  Consumer packaging        231   196   199   238   256   264   267   258   
  Papers                    775   735   732   747   759   738   710   737   
  MAP Merchant Group        357   341   351   341   343   332   339   354   
  Wood products             497   468   553   468   466   458   529   470   
  Others & internal                                                         
 sales                      407   317   299   393   311   307   359   341   
 Group sales                2265  2057  2134  2187  2135  2099  2204  2160  
                                                                            
 Operating profit by                                                        
 segment                                                                    
  Consumer packaging        20    15    -17   27    30    26    20    21    
  Papers                    -22   13    -51   10    -29   7     -8    6     
  MAP Merchant Group        0     5     7     6     0     4     7     7     
  Wood products             9     3     15    -1    -4    6     14    7     
  Others                    -20   9     -11   32    7     -8    3     29    
 Group operating profit     -13   45    -56   74    4     35    36    70    
   - % of sales             -0.6  2.2   -2.6  3.4   0.2   1.7   1.6   3.2   
                                                                            
 Share of results in        4     1     -2    0     -4    0     1     4     
 associates                                                                 
  Net exchange gains /      -4    0     -12   -11   19    0     -6    -15   
 losses                                                                     
  Other fin. income &       -29   -33   -79   -45   -64   -55   -22   -78   
 expenses                                                                   
 Result before tax          -42   13    -149  18    -45   -21   9     -19   
  Income taxes              8     -5    20    -7    -5    -14   -14   5     
 Result for the period      -34   8     -129  11    -50   -35   -5    -14   

METSÄLIITTO GROUP

Reconciliation of profit

                                                Effects of               
                                   FAS          transition   IFRS        
 Income statement                  1-12/2004    to IFRS      1-12/2004   
 Sales                             8554         44           8598        
  Other operating income           149          -14          135         
  Operating expenses               -8032        -34          -8066       
  Share of results in associates   -5           5            0           
  Depreciation and impairment      -600         78           -522        
 losses                                                                  
 Operating profit                  66           78           144         
  Share of results in              0            1            1           
  associates                                                              
  Net exchange gains / losses      13           -15          -2          
  Other financial income and       -213         -6           -219        
  expenses                                                                
 Result before tax                                                       
 and minority interest             -134         58           -76         
  Income taxes                     -1           -27          -28         
 Result after tax                  -135         31           -104        
  Minority interest                114          -34          80          
 Result for the period             -21          -3           -24         

Reconciliation of balance sheet
                                                               
                                                                         
                                               Effects of                
                                  FAS          transition   IFRS         
 Balance sheet                    31.12.2004   to IFRS      31.12.2004   
 ASSETS                                                                  
 Non-current assets                                                      
 Intangible assets                 796         6            802          
  Tangible assets                  4199        -51          4148         
  Biological assets                0           201          201          
 Financial assets                                                        
  Interest bearing                 64          -5           59           
  Deferred tax receivables         62          40           102          
  Other non-interest bearing       277         6            283          
                                   5398        198          5596         
 Current assets                                                          
 Inventories                       1172        0            1172         
 Receivables                                                             
  Interest bearing                 18          48           66           
  Non-interest bearing             1561        3            1564         
 Cash and cash equivalents         302         -50          252          
                                   3053        2            3055         
                                                                         
 TOTAL                             8451        201          8651         
                                                                         
 MEMBERS' FUNDS AND LIABILITIES                                          
 Members' funds                    1585        -234         1351         
 Minority interest                 1559        -131         1428         
 Total members' funds              3144        -365         2779         
                                                                         
 Non-current liabilities                                                 
  Deferred tax liabilities         438         67           505          
  Post employment benefit          47          224          271          
 obligations                                                             
  Provisions                       45          0            45           
  Interest bearing                 2878        68           2946         
  Other non-interest bearing       34          3            37           
                                   3442        363          3805         
 Current liabilities                                                     
  Interest bearing                 638         130          768          
  Non-interest bearing             1225        74           1299         
                                   1863        204          2067         
                                                                         
 Total liabilities                 5305        567          5872         
                                                                         
 TOTAL                             8451        201          8651         



Metsäliitto is the tenth biggest forest industry group in the world. Its five
business areas include wood supply, wood products industry, pulp production and
producing of paper and paperboard as well as tissue paper. Its sales are about
8.6 billion euro and it employs almost 30,000 people. The Metsäliitto Group
companies, Finnforest, Metsä-Botnia, M-real and Metsä Tissue have own presence in
nearly 30 countries.

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