METSÄLIITTO GROUP INTERIM REPORT JANUARY ? SEPTEMBER 2004

METSÄLIITTO GROUP                   RELEASE

                                    29 October 2004 at 1.00 p.m.

METSÄLIITTO GROUP INTERIM REPORT JANUARY – SEPTEMBER 2004

Turnover EUR 6,424 million (1-9/2003: EUR 6,300 million)
Loss before extraordinary items EUR 82.5 million (1-9/2003: EUR +71.4
million)
Return on capital employed 1.4% (1-9/2003: 3.9%)
Equity ratio 34.9% (35.0% at 31 December 2003)
Equity ratio 37.3% following M-real’s share issue

TURNOVER AND FINANCIAL RESULTS
Turnover for the Metsäliitto Group for the nine months January –
September was EUR 6,424 million, up 2.0 per cent on last year’s
corresponding figure of EUR 6,300 million.

Operating profit for the review period was EUR 53.7 million (185.1).
The decline in operating profit is due primarily to lower sales
prices for paper and the stronger euro. Compared with this period
last year, paper prices were 5-10 per cent lower and the euro 10 per
cent stronger against the dollar. Operating profit includes a non-
recurring write-down of EUR 53.5 million and a Group reserve credit
of EUR 14.3 million. Operating profit also includes capital gains of
EUR 19 million realized from the sale of Metsä Tissue.

Production volumes were up on this period last year. During the first
nine months of the year, the Group’s paper machines operated at an
average of 88 per cent of capacity (85) and the board machines at 90
per cent (86). Botnia’s pulp mills operated at 93 per cent of
capacity (93). Output of sawn timber by the Finnish units was about
the same as for this period last year.

Net financial expenses were 2.1 per cent of turnover (1.8). Financial
income was EUR 20.4 million (27.8) and financial expenses were EUR
156.6 million (141.5). Financial items include exchange gains of EUR
5.0 million (10.6). Before extraordinary items there was a loss of
EUR 82.5 million (profit of 71.4 million).

Direct taxes, including the change in deferred tax liability, were
EUR -0.7 million (-41.6). The cut in the rate of corporation tax in
Finland in June from 29 to 26 per cent reduced the deferred tax
liability by a total of EUR 28.9 million. Minority interest was EUR
73.7 million (-2.4) and the result for the period was a loss of EUR
9.5 million (profit of 27.4 million).

Return on capital employed for the period January – September was 1.4
per cent (3.9).

BALANCE SHEET AND FINANCING
At the end of September the books showed an equity ratio of 34.9 per
cent and a gearing ratio of 115 per cent (35.0% and 117% at 31
December 2003). Interest-bearing net liabilities fell during the
third quarter by over EUR 200 million to stand at EUR 3,349 million
at the end of September (3,560 million at 30 June 2004).

M-real Corporation’s share issue was registered in October, after the
end of the review period. Following the registration, the Metsäliitto
Group’s equity ratio will rise to 37.3 per cent and the gearing ratio
fall to 102 per cent.

The Group’s total liquidity at the end of September was EUR 2.2
billion (1.6 billion at 31 December 2003). Of this amount EUR 0.3
billion was in the form of liquid funds and investments (0.2) and EUR
1.9 billion in the form of committed credit facilities not shown in
the balance sheet (1.4). For its short-term financing needs the Group
also had over EUR 0.6 billion available in non-committed domestic and
foreign commercial paper programmes and forward credits.

M-REAL’S SHARE ISSUE
M-real issued roughly 149 million new Series B shares at EUR 3 per
share during the period 15 September to 1 October 2004. The issue was
fully subscribed and brought M-real a net sum of EUR 430 million in
new capital. Metsäliitto Cooperative subscribed M-real shares in
proportion to its existing shareholding at a cost of around EUR 173
million.

The share issue will strengthen M-real’s balance sheet, give the
company more room for manoeuvre financially, and support
implementation of the revised strategy. Following the share issue, M-
real’s equity ratio will rise to 41.9 per cent and its gearing ratio
will fall to 81 per cent.

CAPITAL EXPENDITURE AND ACQUISITIONS
Gross capital expenditure on fixed assets and company acquisition by
the Metsäliitto Group during the first nine months of the year was
EUR 230 million (348).

Kaskinen’s BCTMP mill investment project is progressing according to
plan. Building work began in July and start-up will be in August
2005.

Botnia has begun work on building a sawmill in the town of
Podporozhje in northwest Russia. The sawmill will have an annual
capacity of 200,000 cubic metres and is expected to cost around EUR
50 million. The sawmill will be completed by the end of 2005.

In August M-real acquired Metsäliitto Cooperative’s and UPM Kymmene’s
stakes (53%) in Kemiart Liners Oy. The purchase price of the shares
was about EUR 13 million and additionally M-real’s interest-bearing
net debt increased by about EUR 23 million.

At the end of September M-real sold Price & Pierce trading house to
Gould Paper Corporation. The transaction has no material financial
impact to M-real.
PERSONNEL
The average number of employees during the review period was 29,857
(30,452). The number at the end of September was 29 397 (29,537),
compared with 29,173 at the end of 2003.

EVENTS OCCURRING AFTER THE END OF THE REVIEW PERIOD
Since the end of the review period Finnforest has sold its Kolho-
based poles and Luxiwood business. The sale did not include the poles
business of Finnforest BBH Ltd in the UK or the Kolho impregnation
business.

On 26 October, Metsäliitto Cooperative announced it was to increase
its stake in Vapo Oy to 49.9 per cent by purchasing roughly 16.6 per
cent of that company’s shares. At the same time, Metsäliitto is to
sell Finnforest’s seven power plants to a new company in which Vapo
will have a substantial controlling interest and Finnforest a
minority interest.

Metsäliitto has also agreed to sell Biowatti Oy’s pellets business to
Vapo and Biowatti’s wood-based fuels business to the company’s
present management.

The transactions require approval from the competition authority and
a decision from the Council of State.

METSÄLIITTO COOPERATIVE
Metsäliitto Cooperative booked a turnover for the period January –
September of EUR 867 million (861). Operating profit was EUR 19.2
million, 2.2 per cent of turnover (17.9 million and 2.1%). Profit
before extraordinary items was EUR 84.5 million (96.3), including
dividend income of EUR 62.8 million (81.9). Return on capital
employed was 8.9 per cent (11.2).

The equity ratio at the end of September was 60.1 per cent (67.0% at
31 December 2003). Liquidity is good. Participation in M-real’s share
issue reduced the amount of liquid funds, but liquidity nevertheless
remains extremely good. At the end of September, Metsäliitto
Cooperative’s liquidity totalled EUR 271 million (378 million at 31
December 2003).

Members’ capital totalling EUR 70 million has been received since the
start of the year (58). Members’ capital has increased by EUR 23
million, additional members’ capital A by EUR 38 million and
additional members’ capital B by EUR 9 million. At the end of
September, Metsäliitto had altogether 130,513 members (131,213 at 31
December 2003).

Capital expenditure for the period was EUR 278 million. The main
investment during the third quarter was the roughly EUR 173 million
participation in M-real’s share issue. Following this, Metsäliitto
Cooperative owns 38.6 per cent of M-real’s shares and 60.5 per cent
of the votes.
WOOD MARKETS
Metsäliitto introduced its new domestic wood procurement organization
on 1 July 2004.

Trading in wood raw material got off to a slow start after the
summer, but the volumes purchased rose week by week right up to the
end of the review period. A total of 10.9 million cubic metres of
wood was purchased during the first nine months (12.8), considerably
less than planned. At the end of September, 61 per cent of the target
for the year had been purchased. Overall, prices were stable early in
the autumn, although there was a marked rise in the price of spruce
logs.

Metsäliitto’s standing reserves at the end of September were
equivalent to 3.7 months’ demand, slightly below the targeted figure.
Wet weather early in the autumn has hampered timber harvesting and
transport. Several sawmills specializing in whitewood have had to
curtail production because of sawlog shortages. The pulp mills
operated as normal.

Deliveries of wood procured domestically had reached 13.7 million
cubic metres by the end of September (13.3), which is well above
budget. Thomesto supplied a total of 9.0 million cubic metres during
the review period (8.9), 2.6 million cubic metres of this to
customers in Finland (2.9).

The bad weather meant that felling of some summer stands had to be
deferred until the winter, making it more difficult to purchase
stands for winter felling. While Metsäliitto is in a position to
purchase all wood species, purchasing will focus on stands marked for
immediate clear cutting.

METSÄ TISSUE
Despite the more difficult market conditions, all Metsä Tissue’s
business areas were able to increase sales of their converted
products. Sales of consumer products in Western Europe made
particularly good progress. Sales of brand name products also showed
strong growth in both Poland and the Nordic countries. Greater
business efficiency and the resulting improvement in cost-
effectiveness have helped to compensate for the losses due to lower
sales prices.

Turnover for the nine months to September was EUR 506 million (499)
and operating profit EUR 20.8 million (33.8). The fall in operating
profit compared with last year is due mainly to greater depreciation
arising from transactions completed in January.

Over-capacity in Europe, coupled with the weakness of the German
economy, has intensified price competition in Metsä Tissue’s main
markets. The fact that the cost of raw materials and energy has risen
faster than budgeted for has also made the situation more difficult.



The Consumer Hygiene and Away-from-Home business areas increased
their sales in Western Europe. In the Nordic countries, sales were
about the same as last year. Sales in Poland have progressed well,
but profitability there is still not satisfactory.

Sales and profitability for the Table Top and Baking & Cooking
business areas were almost in line with the targets.

FINNFOREST
Finnforest booked a turnover of EUR 1,457 million, some 7 per cent up
on last year’s corresponding figure of EUR 1,356 million. Operating
profit increased to EUR 19.5 million (18.0). Before extraordinary
items there was a loss of EUR 6.3 million (-7.0). Return on capital
employed was 2.8 per cent (2.9).

At the end of the review period the equity ratio was 38.0 per cent
and the gearing ratio 108 per cent (39.3% and 106% at 31 December
2003). If capital loans are included under liabilities, the equity
ratio was 28.5 per cent and the gearing ratio 177 per cent (29.2% and
178% at 31 December 2003).

Finnforest’s result for the third quarter was a loss of EUR 5
million, compared with a loss of EUR 10.6 million for the third
quarter last year. The loss is attributable to difficulties in the
sawmilling industry and to the annual summer downtime. There have
been some disruptions in the supply of raw materials to add to the
unfavourable relationship between market prices and raw material
costs. On the other hand, the market for conifer and birch plywoods
has moved positively.

Engineered Wood
Turnover for the EW division was EUR 229 million (219) and operating
profit EUR 13.4 million (4.1). Demand for conifer plywood has picked
up in response to continued brisk building activity in North America.
South American suppliers have focused on US markets, thus helping to
boost demand for European products and having a positive impact on
prices. Demand and prices for birch plywoods also moved in a positive
direction.

Demand for Kerto LVL continued to be strong. I-joists and
particleboard are also in good demand. The Hartola housing module
plant was completed on schedule and production there has now started.

Solid Wood
The SW division produced a turnover of EUR 387 million (382) and an
operating loss of EUR 4.2 million (profit of 5.2 million). The
decline in profit is due primarily to the fall in sales prices for
sawn timber. Invoicing prices were on average 3.9% lower than for
this period last year. Also, difficult timber harvesting conditions
hampered supplies of raw material.

Output by the division’s sawmills during the first nine months was
1,783,000 cubic metres (1,784,000), with whitewood accounting for
1,005,000 cubic metres, redwood for 668,000 cubic metres and
processed timber for the rest. Supply and demand were in balance for
whitewood goods, but the markets for redwood goods were over-
supplied.

Sales and distribution
The division had a turnover of EUR 495 million (440) and an operating
profit of EUR 12.2 million (7.9). Demand on the main European markets
continued unchanged during the third quarter. Overall, the division
came close to meeting its targets, despite the fact that the German
market is still weak.

Prices for plywood and other wood-based building boards have started
to rise. The growth in demand is due to strong building activity in
the United States. Demand has also improved on the division’s
traditionally strong export markets such as Russia, Eastern Europe
and China.

Moelven
Turnover was EUR 516 million (453) and operating profit EUR 5.0
million (9.1). Moelven’s sawmilling business experienced the same
difficulties as the Finnish sawmilling industry in general. The
situation regarding whitewood goods is normal, but in the redwood
business the relationship between raw material costs and end-product
prices is unfavourable. The planing and glulam businesses have made
progress.

Moelven’s Building Group is focusing increasingly on low-rise
construction. A new production line for building modules was started
up in autumn to serve the growing markets for low-rise housing in
Sweden and Norway.

Finnforest’s interim reports can be found at the following addresses:
www.finnforest.fi, www.finnforest.com and www.moelven.com.

M-REAL
Turnover for January – September was EUR 4,078 million (4,570).
Demand for paper continued to grow during the third quarter. M-real’s
paper deliveries to all the main markets were up. Paper deliveries
totalled 3,059,000 tonnes (2,902,000) and production curtailments
299,000 tonnes (424,000). The paper mills operated at 88 per cent of
capacity (85).

Board deliveries remained good and the machines operated at almost
full capacity. Board deliveries to customers totalled 850,000 tonnes
(757,000). Production was curtailed by 65,000 tonnes (111,000) in
line with demand. The board mills operated at 90 per cent of capacity
(86).

M-real returned a loss on operations of EUR 47.2 million for the nine
months to September (profit of 111.1 million). Profitability was hit
particularly by the lower sales prices for paper and the stronger
euro. Prices for coated fine paper were 5 per cent lower than during
this period last year and for uncoated fine paper 9 per cent lower.
Magazine (LWC) paper prices were down 3 per cent.

During the third quarter M-real booked a write-down of EUR 53.5
million in the value of fixed assets relating to Savon Sellu’s
fluting mill and Reflex paper mill in Germany. Operating profit also
includes a Group reserve of EUR 14.3 million recognized as income in
connection with the purchase of Kemiart Liners Oy shares. Excluding
non-recurring items, M-real made an operating loss during January –
September of EUR 8.0 million.

Before extraordinary items there was a loss of EUR 137.4 million
(profit of 25.0 million). Excluding the non-recurring items booked
for the third quarter, the result was a loss of EUR 98.3 million.
Profit before taxes and minority interest was EUR 57.5 million
(25.0). Extraordinary income includes a capital gain of EUR 195
million from the sale of Metsä Tissue.

Earnings per share were EUR -0.69 (+0.01) and return on capital
employed was -0.8 per cent (2.9). The accounts show an equity ratio
of 37.2 per cent and a gearing ratio of 100 per cent at the end of
September (31.9% and 137% at 31 December 2003). The share issue will
raise the equity ratio to 41.9 per cent and reduce the gearing ratio
to 81 per cent.

Liquidity is good. Total liquidity at the end of September was EUR
1.9 billion. For its short-term financing needs M-real also had
roughly EUR 600 million available in non-committed domestic and
foreign commercial paper programmes and forward credits.

In July, Moody’s Investors Services placed M-real under scrutiny
relating to a possible lowering of its credit rating.

Demand for paper and board is expected to remain good during the
final quarter, but for seasonal reasons to be down on that for the
third quarter. The result before extraordinary and non-recurring
items is expected to be weaker than for the third quarter.

M-real’s Interim Report is available at www.m-real.com.

BOTNIA
Both turnover and profitability showed improvements on this period
last year thanks to higher market prices for pulp. Turnover for
January – September was up 7.4 per cent at EUR 815 million (759).
Operating profit was EUR 122.3 million (73.8) and profit before
extraordinary items EUR 120.6 million (71.3). Return on capital
employed was 13.1 per cent (7.9).

Market prices for softwood pulp were on average 20 per cent higher
than this period last year, while those for hardwood pulp were up 4
per cent. On the other hand, the euro was 10 per cent stronger
against the dollar than in January – September 2003.

Pulp production during the review period totalled 1,848,420 tonnes
(1,816,585). The capacity utilization rate was 93 per cent (93).

During January - May, the price of softwood pulp in Europe rose from
USD 560/t to USD 660/t. Paper mills suspended production as normal
during the summer, while customers in China reduced their over-large
pulp stocks. This caused pulp producers’ stocks to rise and prices to
fall. In September, the price of softwood pulp had fallen to USD 600.

In autumn 2003, Botnia began exploring the possibility of starting
pulp production in Uruguay. Environmental and socio-economic impact
surveys for a mill were completed in March this year. In October, the
Uruguay government granted the right to free trade status for the
project, thus ensuring stable customs and taxation treatment. By the
end of 2004 Botnia will be in a position to decide whether to go
ahead with building a mill to produce around 1 million t/a of
bleached eucalyptus pulp, provided all the necessary reports and
permits have been obtained. The investment will cost an estimated EUR
1 billion.

Botnia is dealt with as a resource company and its figures are
consolidated in proportion to Metsäliitto’s ownership (53%). Of this,
47 per cent is allocated to M-real’s accounts and 6 per cent to the
Metsäliitto Group’s consolidated accounts.


OUTLOOK
Metsäliitto Cooperative, the Group’s parent company, will again
return a good result thanks to the fact that wood consumption has
remained high. On the other hand, the wet autumn has made timber
harvesting and transport extremely difficult. In view of the low
level of standing reserves, wood trading will have to proceed
smoothly in the next few months if delivery schedules are to be met.

Metsä Tissue’s result for the year will probably be not quite as good
as last year because of higher raw material costs and fiercer price
competition.

The markets for conifer and birch plywood have recently moved in a
positive direction. Kerto-LVL, I-joists and particleboard are also in
good demand. Finnforest will book a better result for this year than
last, but is still likely to make a small loss.

Sales volumes for M-real’s paper and board have risen this year. The
good demand provides an opportunity for price increases. M-real’s
result before extraordinary items for this year will be a loss.

Pulp consumption is high in Europe, Asia and the United States.
Producers will hold their normal shut-downs for maintenance in the
autumn, and stocks are therefore expected to fall. Pulp prices have
probably now bottomed out, and price rises have already been
announced for Europe and China.

The Metsäliitto Group anticipates improved profitability in 2005.
Cost-saving programmes are in place and measures have been introduced
to improve efficiency and productivity. The organizations of almost
all the Group’s companies have been considerably restructured during
the year to clarify profit accountability, decision-making and
business operations.

Espoo, 29 October July 2004
BOARD OF DIRECTORS



For more information:
Mr. Pekka Kivelä, Senior VP, Group Communications,
tel. int +358 1046 94545
WOOD RAW MATERIAL IN GOOD DEMAND

Metsäliitto Cooperative’s turnover and operating profit were similar
to those for this period last year. Turnover was EUR 867 million
(861) and operating profit EUR 19.2 million (17.9). Profit before
extraordinary items was EUR 84.5 million (96.3).

Wood trading got off to a slow start after the summer, but the
volumes purchased rose week by week right up to the end of the review
period. A total of 10.9 million cubic metres of wood was purchased
during the first nine months. Deliveries of wood raw material up to
the end of September were 13.7 million cubic metres, which is well
ahead of budget.

Finnforest’s turnover rose by 7 per cent to EUR 1,457 million
(1,356). Operating profit improved to EUR 19.5 million (18.0). Before
extraordinary items there was a loss of EUR 6.3 million (-7.0). The
markets for conifer and birch plywoods have recently moved in a
positive direction. Demand for Kerto LVL, I-joists and particleboard
is also good.

Output of sawn timber was about the same as for this period last
year. Supply and demand for whitewood were in balance, but the
redwood market was over-supplied.

Metsä Tissue produced a turnover of EUR 506 million (499) and an
operating profit of EUR 20.8 million (33.8). On a comparative basis,
operating profit was almost the same as the previous year. Metsä
Tissue has succeeded in raising sales of its converted products
despite the fact that markets are affected by intensified price
competition and more expensive raw materials and energy. Greater
business efficiency and the resulting improvement in cost-
effectiveness have helped to compensate for the losses due to lower
sales prices.

M-REAL’S PRODUCTION VOLUMES UP

M-real booked a turnover of EUR 4,078 million (4,570) and an
operating loss of EUR 47.2 million (profit of 111.1 million). Results
were affected by lower sales prices for paper and the strengthening
of the euro against the dollar. M-real’s result on operations also
includes a number of non-recurring items. Before extraordinary items
there was a loss of EUR 137.4 million (+25.0). Profit before taxes
and minority interest was EUR 57.5 million (25.0).

Demand for paper continued to rise during the third quarter. M-real’s
deliveries were some 5 per cent up on this period last year. The
paper mills operated at 88 per cent of capacity (85). Board
deliveries remained good and almost all capacity was in use. Board
deliveries to customers rose by some 12 per cent compared with this
period last year. The board mills operated at 90 per cent of capacity
(86).

Botnia’s turnover and profitability benefited from higher pulp
prices. Turnover rose 7 per cent to EUR 815 million (759). Operating
profit was EUR 122.3 million (73.8), and profit before extraordinary
items was EUR 120.6 million (71.3).

Market prices for softwood pulp averaged 20 per cent higher than this
period last year, while those for hardwood pulp were up 4 per cent.
On the other hand, the euro was 10 per cent stronger against the
dollar than in January – September 2003.

(all figures are unaudited)
                       Turnover                   Operating profit             
EUR million       I-    I-III/03    I-IV/03      I-   I-III/03  I-IV/03   
              III/04                         III/04
Metsäliitto                                                               
Cooperative       867        861    1,154      19.2       17.9     25.5
Thomesto          341        305      375       3.4        6.7      7.6   
Biowatti           46         40       55       0.5        2.2      4.8   
Finnforest      1,457      1,356    1,791      19.5       18.0      8.6  
Metsä Tissue*     506        499      669       20.8      33.8     48.9   
-internal                                                                 
 sales           -473       -476     -638
Total           2,744      2,086    2,737       63.4      44.8     46.5   
M-real          4,078      4,570    6,044      -47.2     111.1     73.8   
Other &                                                                   
internal items   -398       -356     -463       37.5      29.2     30.8
METSÄLIITTO                                                               
GROUP           6,424      6,300    8,318       53.7     185.1    151.1
* figures for 2003 included in M-real´s figures

Metsäliitto Group turnover for January – September was EUR 6,424
million, some 2 per cent up on last year’s figure of EUR 6,300
million. Operating profit was EUR 53.7 million (185.1). Before
extraordinary items there was a loss of EUR 82.5 million (profit of
71.4 million). The result for the period was a loss of EUR 9.5
million (+27.4).

Following M-real’s share issue, the Metsäliitto Group’s equity ratio
has risen to 37.3 per cent while the gearing ratio has fallen to 102
per cent. Interest-bearing net liabilities fell by over EUR 200
million in the third quarter, and stood at EUR 3,349 million at the
end of September (3,560 million at 30 June 2004).

OUTLOOK
Metsäliitto Cooperative will again return a good result thanks to the
fact that wood consumption has remained high. Participation in M-
real’s share issue reduced the amount of liquid funds, but despite
this liquidity remains extremely good.

The wood products group Finnforest will book a better result for this
year than last, but is still likely to make a small loss. On a
comparative basis, Metsä Tissue’s result will probably not be quite
as good as last year.

Sales volumes for M-real’s paper and board have risen this year. The
good demand provides an opportunity for price increases. M-real’s
result before extraordinary items for this year will be a loss.

Pulp consumption is high in Europe, Asia and the United States.
Producers will hold their normal shut-downs for maintenance in the
autumn, and stocks are therefore expected to fall. Price rises have
already been announced for Europe and China.

“We have substantially restructured the organizations of almost all
the Group’s companies during the year to clarify profit
accountability, decision-making and business operations. We now have
a better opportunity to return to positive financial results next
yearö, says President and CEO Antti Oksanen.



                                               (All figures unaudited)
PROFIT AND LOSS         2004          2003       Change,      2003    
ACCOUNT                  1-9    %      1-9     %   MEUR       1-12   %
Turnover             6 424.1  100  6 300.4   100  123.7    8 318.3 100
Share of result from                                                  
Associates              -0.7          -2.0           1.3      -6.5
Other operating                                                       
income                  97.4          79.9          17.5     105.0
 Operating expenses -5 998.9      -5 769.2        -229.7  -7 694.9    
 Depreciation         -468.2        -424.0         -44.2    -570.8    
Operating profit        53.7   0.8   185.1   2.9  -131.4     151.1  1.8
 Net exchange                                                        
 gains/losses            5.0          10.6          -5.6      19.9
 Other financial                                                   
income and expenses   -141.2        -124.3         -16.9    -210.8 
Result before                                                          
extraord.items         -82.5  -1.3    71.4   1.1  -153.9     -39.8 -0.5
 Extraord. income        0.0           0.0           0.0       0.9     
 Extraord. expenses      0.0           0.0           0.0     -16.0     
Result before tax                                                      
And minority interest  -82.5  -1.3    71.4   1.1  -153.9     -54.8 -0.7
 Taxation               -0.7         -41.6          40.9     -20.6     
 Minority interest      73.7          -2.4          76.1      58.9     
Result for the period   -9.5  -0.1    27.4   0.4   -36.9     -16.5 -0.2
                                                                      
                                                                       
BALANCE SHEET          30.9.2004      30.9.2003      31.12.2003       
                         MEUR   %     MEUR     %     MEUR      %      
Assets                                                                
Fixed assets          5 349.9  62.6   5 619.0 64.9   5 562.8  65.4    
Current assets                                              
  Inventories         1 164.7  13.6   1 160.6 13.4   1 154.9  13.6    
  Other current                                                       
  assets              1 777.5  20.8   1 676.3 19.3   1 574.6  18.5
  Liquid funds          258.7   3.0     206.7  2.4     215.3   2.5    
Total                 8 550.8   100   8 662.6  100   8 507.6   100    
                                                                      
                                                                      
Members´ funds and
liabilities
 Members´ capital and                                                 
 members´ other funds 1 585.0  18.5   1 580.2 18.3   1 555.2  18.3    
Capital note loans      139.5   1.6     139.2  1.6     139.3   1.6    
Minority interest     1 330.1  15.6   1 482.8 17.1   1 408.0  16.6    
                                                                      
Provisions               91.3   1.1      63.6  0.7      85.7   1.0    
Liabilities                                                           
  Long-term           3 210.6         3 533.9        3 605.8          
  Current             2 194.3         1 862.9        1 713.6          
 Total                5 404.9  63.2   5 396.8 62.3   5 319.4  62.5    
Total                 8 550.8   100   8 662.6  100   8 507.6   100    
Quarterly data                                                        
MEUR             III/04   II/04  I/04     IV/03  III/03  II/03    I/03
Turnover         2079.8  2188.8 2155.5   2017.9  2023.5 2098.5  2178.4
Other operating                                                       
income             27.1    30.4   39.9     25.1    36.2   28.0    15.7
 Operating                                                                
 expenses     -1925.5 -2069.1  -2005.0  -1930.1  -1864.0  -1944.0  -1963.2
 Depreciation    -182.9  -144.7 -140.6   -146.9  -141.7 -141.5  -140.8
Operating profit   -1.5     5.4   49.8    -34.0    54.0   41.0    90.1
% of turnover      -0.1     0.2    2.3     -1.7     2.7    2.0     4.1
 Net exchange                                                         
 gains/losses      -0.7    -0.5    6.2      9.3    -0.6    4.1     7.1
 Fin. income and                                                      
  expenses        -45.2   -45.5  -50.5    -86.4   -42.0  -37.2   -45.1
Result before                                                         
extraord. Items   -47.4   -40.6    5.5   -111.1    11.4    7.9    52.1

                                                                       

Turnover, MEUR                I-       I-  I-IV/03
                          III/04   III/03
Metsäliitto Cooperative    866.5    861.3  1 153.9
Engineered Wood            229.2    219.3    287.8
Solid Wood                 386.7    381.9    511.2
Sales and distribution     495.1    439.5    577.9
Moelven                    516.4    453.3    604.8
Metsä Tissue               505.6    498.6    669.2
Cartons                    651.8    612.8    809.0
Graphic products                                  
and Speciality papers    1 761.7  1 775.4  2 348.0
Offices                    505.9    513.4    682.9
Map Merchant Group       1 025.6  1 045.0  1 392.6
Others & internal sales   -520.4   -500.1   -719.0
Metsäliitto Group        6 424.1  6 300.4  8 318.3
                                                  


Operating profit, MEUR        I-       I-  I-IV/03
                          III/04   III/03
Metsäliitto Cooperative     19.2     17.9     25.5
Engineered Wood             13.4      4.1      3.6
Solid Wood                  -4.2      5.2      0.8
Sales and distribution      12.2      7.9      6.0
Moelven                      5.0      9.1      8.6
Metsä Tissue                20.8     33.8     48.9
Cartons                     34.5     35.7     33.3
Graphic products                                  
and Speciality papers      -42.6     37.0     24.3
Offices                     -2.7     39.6     48.2
Map Merchant Group           7.6      6.1      6.5
Others & internal sales     -9.5    -11.3    -54.6
Metsäliitto Group           53.7    185.1    151.1
                                                  

                                                  

                                                  


                          Equity ratio, %         Gearing ratio, %
                       III/04  III/03    IV/03  III/04  III/03   IV/03
Metsäliitto Cooperative  60.1    68.4     67.0      -1     -20     -28
Finnforest *)            38.0    38.4     39.3     108     108     106
Finnforest               28.5    28.6     29.2     177     180     178
M-real**)                41.9    33.1     31.9      81     132     137
Botnia                   71.7    70.5     70.3      -4       7       3
Metsäliitto Group**)     37.3    35.5     35.0     102     117     117
                                                                      
*) capital note loan included in equity                     
**) following M-real´s share issue


Production, 1 000 units       I-       I-     I-IV/03
                            III/04   III/03
Sawn goods, m3              3 170      2 914    3 958
Processed timber, m3          739        311      691
EW products, m3               627        587      794
Paper, t                    3 083      2 873    3 785
Paperboard, t                 817        696      913
Pulp & CTMP, t (M-real)     1 134      1 071    1 439
Pulp, t (Botnia)            1 848      1 817    2 391

                                                
                                                
                                                
                                                
                                                
                                            
                                                
                                                



About Us

Metsä Groupwww.metsagroup.com Metsä Group is a forerunner in sustainable bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh fibre paperboards and tissue and cooking papers. Metsä Group’s sales totalled EUR 5.0 billion in 2017, and it employs approximately 9,100 people. The Group operates in nearly 30 countries. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 104,000 Finnish forest owners.

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