A SEASONAL INCREASE IN PAPER DELIVERIES
M-real Corporation Stock Exchange Bulletin 28.4.2003 at 12.00 1(17)
A SEASONAL INCREASE IN PAPER DELIVERIES IMPROVES M-REALS
PROFITABILITY, NO CHANGE IN DEMAND FOR MAIN PRODUCTS
In the first quarter M-real Groups operating profit rose to EUR 67.4
million from EUR 50.7 million in the previous quarter. The central
reasons for the improvement in profitability were a seasonal increase
in deliveries of paper, the progress made in starting up the rebuilt
board machine at Äänekoski as well as the fact that the previous
quarters result was burdened by machine rebuild and annual
maintenance shutdowns and non-recurring expense items. Taking into
account hedging income, the depreciation of the US dollar and British
pound did not have a substantial effect on earnings in the report
period.
Key figures
- Earnings per share: EUR 0.12 (previous quarter: EUR 0.04)
- Profit before extraordinary items: EUR 38.6 million (10.1)
- Operating profit: EUR 67.4 million (50.7)
- Cash flow from operations: EUR 153.6 million (195.2)
- Return on capital employed: 5.0 per cent (3.8)
- Turnover: EUR 1,594.9 million (1,587.3)
- Equity ratio at the end of the period: 32.6 per cent (34.2)
- 90 per cent capacity utilization rate at the paper mills (81), 94
per cent at the board mills (92)
Demand for folding boxboard and its selling price were at the
previous quarters level. The selling price of paper grades fell
compared with the previous quarter. The depreciation of the US dollar
and the British pound depressed the average euro-denominated selling
price of both paperboard and paper.
President and CEO Jouko M. Jaakkola sized up the market situation as
follows: Although M-reals delivery volumes for various paper grades
increased on the previous quarter, we do not believe that the market
situation has picked up in Europe. The factors driving the increased
delivery volumes were a seasonal increase in deliveries and
customers stock-building. In addition, there was an increase in
exports outside Europe.ö
The economic outlook in Europe and the worlds other main economic
areas is still very uncertain, and the primary financial indicators
do not show signs of an improved trend. This also creates hesitancy
concerning the demand for packaging board. The weak demand situation
for the paper business areas does not point to an imminent change for
the better. Owing to the seasonal fluctuation, paper deliveries in
the second quarter are expected to be lower than in the first
quarter.
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
Veli-Matti Mynttinen, Executive Vice President, M-real Corporation,
tel. +358 10 469 4655, GSM +358 50 2895
M-REAL CORPORATION
INTERIM REPORT 1 JANUARY - 31 MARCH 2003
JANUARY-MARCH EARNINGS COMPARED WITH THE PREVIOUS QUARTER
In the first quarter M-real Groups operating profit rose to EUR 67.4
million from EUR 50.7 million in the previous quarter. Operating
profit accounted for 4.2 per cent of turnover (Oct.-Dec./2002: 3.2).
All the business areas improved their profitability. Metsä Tissues
earnings also improved.
The improvement in the profitability of the Consumer packaging
business area was due mainly to the fact that machine rebuild and
annual maintenance shutdowns no longer burdened the result as they
did in the previous quarter, and startup of the rebuilt board machine
at Äänekoski progressed well. Demand for folding boxboard and its
selling price were at the previous quarters level. The depreciation
of the US dollar and the British pound depressed the average euro-
denominated selling price. Paperboard deliveries amounted to 283,000
tonnes (283,000). Production at the mills was curtailed by 19,000
tonnes (5,000) in line with demand. The capacity utilization rate was
94 per cent (92).
Paper demand was on a par with the previous quarter. The main reason
for the rise in the profitability of paper was the seasonal increase
in the delivery volume. It is estimated that the delivery volume of
fine paper was also boosted by customers increased purchases to
build stocks. The selling price of paper grades fell compared with
the previous quarter. In addition, the depreciation of the US dollar
and the British pound depressed the average euro-denominated selling
price. The delivery volume of coated and uncoated fine paper rose by
11 per cent and the delivery volume of magazine paper by 5 per cent.
The total volume of paper deliveries was 975,000 tonnes (891,000).
Owing to the imbalance in supply and demand, production curtailments
had to be continued. Production curtailments amounted to 94,000
tonnes (164,000). The capacity utilization rate of the paper mills
was 90 per cent (81).
The effect of the change in foreign exchange rates, including hedging
income, on operating profit was EUR 0.8 million (10.5 negative). By
the end of March, the dollar had weakened by nearly 3.9 per cent and
the pound sterling by 6.0 per cent compared with the end of the year.
The average exchange rate of the US dollar against the euro in
January-March was 7.3 per cent lower and against the pound 5.3 per
cent lower than in the previous quarter.
Turnover was EUR 1,594.9 million (1,587.3).
Net financial expenses totalled EUR 28.8 million (40.6). Financial
expenses include a gain on foreign exchange of EUR 6.2 million (5.0).
Net interest and other financial expenses amounted to EUR 35.0
million (45.6).
Other operating income amounted to EUR 12.1 million (26.7). The sum
does not include non-recurring items.
Profit before extraordinary items was EUR 38.6 million (10.1).
First-quarter net profit was EUR 21.0 million (6.9). Taxes, including
the change in the deferred tax liability, were EUR 17.3 million
(1.8).
Earnings per share were EUR 0.12 (0.04).
The return on capital employed was 5.0 per cent (3.8). The return on
equity was 3.5 per cent (1.3).
EARNINGS IN JANUARY-MARCH COMPARED WITH THE SAME PERIOD OF 2002
First-quarter operating profit fell by 43.3 per cent compared with
the first quarter of last year. The profitability of all business
areas weakened except for the Map paper merchanting business. The
main factors that weakened profitability were lower selling prices as
well as the 22 per cent drop in the exchange rate of the US dollar
and the 9 per cent fall in that of the British pound. The weakening
in the 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.
Turnover was EUR 1,594.9 million (1,736.1) Turnover was lowered by
the same factors as impacted operating profit. In comparable terms,
the fall in turnover was 8 per cent.
Consolidated profit before extraordinary items was EUR 38.6 million
(62.0).
PERSONNEL
The number of personnel at the end of March was 20,150 employees
(21,261 employees at 31 March 2002), of which 5,993 employees worked
in Finland (6,101). The net reduction in personnel as a consequence
of divestments was 86 employees.
The Groups personnel includes 47 per cent of Metsä-Botnias
employees.
The payroll at the end of 2002 was 20,323 employees.
CAPITAL EXPENDITURES ON FIXED ASSETS
M-reals total capital expenditures in January-March amounted to EUR
35 million. In addition, about EUR 153 million has been paid as the
purchase price of shares in acquired companies.
ACQUISITIONS, DIVESTMENTS AND RESTRUCTURING
On 20 January M-real announced that it had purchased from SCA the
shares which the company owned in Metsä Tissue Corporation (19.27 per
cent of the shares outstanding). The purchase price was EUR 12.30 per
share, or a total of EUR 71.1 million. Through the deal, the M-real
Groups shareholding in Metsä Tissue rose to 84.85 per cent. Later
the same day M-real purchased additional shares, bringing its holding
to more than 90 per cent. In accordance with the Securities Market
Act, M-real announced on 14 February that it was making a mandatory
redemption offer for all of Metsä-Tissues shares and stock options
held by other parties. The mandatory offer price was EUR 12.30 per
share. The offer period in accordance with the mandatory offer
commenced on 17 February 2003 and ended on 17 March 2003. On 3 March
M-real announced that it would exercise its right under the Companies
Act to redeem all the Metsä Tissue shares held by third parties at a
price of EUR 12.30 per share. At the end of the report period M-real
owned 99.9 per cent of Metsä Tissues shares. The total price of the
Metsä Tissue shares and stock options purchased during the report
period was about EUR 127 million.
In a transaction signed on 24 March M-real purchased 24.7 per cent of
the shares in Oy Hangö Stevedoring Ab, giving M-real a 100 per cent
holding in the company.
During the report period Metsä Tissue purchased additional shares in
its subsidiary Zaklady Papiernicze Krapkowicach SA, bringing Metsä
Tissues holding in ZPK to 91.6 per cent.
The acquisition of the Czech office paper merchant Narpex, which Map
Merchants agreed in December, entered into force in the Czech
Republic in January. Also in January, Map Merchants acquired the
shares held by minority shareholders in its Danish subsidiary Schramm-
Papirgros A/S (30.7 per cent of the shares).
On 14 March Metsä-Botnia announced that it was purchasing 60% of the
shares in the Uruguayan company Compania Forestal Oriental S.A (FOSA)
from Shell International Renewables BV. The company owns 48,000
hectares of land, of which 32,000 hectares are eucalyptus forest.
On 14 April M-real announced that it had signed a Letter of Intent on
a strategic partnership with IBM Global Services concerning the
delivery of business applications and basic information technology
services to M-reals units worldwide. The Letter of Intent provides
for the transfer of M-reals own information technology services and
Logisware Oys entire operations to IBMs organization.
FINANCING
Interest-bearing net liabilities amounted to EUR 3,169 million at the
end of March (Dec. 2002: 3,019 million).
The equity ratio was 32.6 per cent (Mar. 2002: 30.0, Dec. 2002: 34.2)
and the gearing ratio was 133 per cent (Mar. 2002: 144, Dec. 2002:
119). ). The equity ratio and gearing ratio were weakened by the
purchase of SCAs Metsä Tissue shares in January and by the dividend
payout on 27 March 2003.
Liquidity is good. Liquidity at the end of March was EUR 1,332
million, of which EUR 1,190 million consisted of binding long-term
credit commitments and EUR 142 million represented liquid funds and
investments. In addition, 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 700
million.
At the end of March an average of 3.8 months of net foreign currency
exposure was hedged. The degree of hedging during the report period
has varied between 3.8 and 5.2 months. At the end of the report
period, about 92 per cent of the shareholders equity not in euros
was hedged. At the end of March the Groups liabilities were tied to
fixed-interest rates for a period of 13 months. During January-March
the fixed-rate period has varied from 13 to 15 months.
SHARES
The highest price of M-reals Series B share on Helsinki Exchanges
during the January-March period was EUR 8.75 and the lowest price was
EUR 6.25. The average share price was EUR 7.05. In 2002 the average
price was EUR 8.28. The price of the Series B share was EUR 6.42 at
the end of the report period, 31 March 2003.
Turnover of the Series B share was EUR 221 million, or 21 per cent of
the shares outstanding. The market capitalization of the Series A and
B shares at 31 March 2003 totalled EUR 1,161 million.
At 31 March 2003 Metsäliitto Osuuskunta owned 38.5 per cent of M-real
Corporations shares and 64.2 per cent of the voting rights conferred
by these shares. International investors owned 31.8 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.
DIVIDEND
M-real Corporations Annual General Meeting held on 17 March 2003
passed a resolution to pay a dividend of EUR 0.60 per share for the
2002 financial year in accordance with the proposal of the Board of
Directors. The dividend was paid out on 27 March 2003.
BOARD OF DIRECTORS
The Annual General Meeting re-elected the following persons to seats
on M-reals Board of Directors for a term extending up to the next
Annual General Meeting: Timo Haapanen, Asmo Kalpala, Erkki Karmila,
Runar Lillandt, Matti Niemi, Antti Oksanen (chairman), Antti
Tanskanen and Arimo Uusitalo (vice chairman).
NEAR-TERM OUTLOOK
Demand for folding boxboard was at the previous quarters level. The
market situation for the paper business areas remained difficult
despite seasonal increases in deliveries. Production curtailments had
to be continued. The capacity utilization rate of the mills remained
low, especially for those producing coated fine paper.
The economic outlook in Europe and the worlds other main economic
areas is still very uncertain, and the primary financial indicators
do not show signs of a turn for the better. This also creates
hesitancy concerning the demand for packaging board. The weak demand
situation for the paper business areas does not reflect an imminent
change for the better. Owing to the seasonal fluctuation, paper
deliveries in the second quarter are expected to be lower than in the
first quarter.
Espoo, 28 April 2003
BOARD OF DIRECTORS
BUSINESS AREAS AND MARKET TRENDS
M-real has changed the financial reporting of its business areas.
Comparable figures have been published on 23 April, 2003.
Consumer packaging
I IV III II I 2002 IV 02-
03 02 02 02 02 I 03
change
Turnover 229. 227. 231. 232. 230. 921. +1.3%
9 0 7 4 0 1
Operating profit 18.6 7.0 25.3 17.3 33.8 83.4
Operating profit, % 8.1 3.1 10.9 7.4 14.7 9.1
Return on capital 7.8 3.7 11.1 7.8 14.7 9.1
employed, %
Mill deliveries, 283 283 284 287 274 1129 0%
1,000 t
Board mills capacity 94 92 94 89 89 91
utilization rate, %
The Consumer packaging business area reported operating profit of EUR
18.6 million (Oct.-Dec. 2002: 7.0). The improvement in profitability
was due mainly to the fact that earnings in the previous quarter were
burdened by machine rebuild and annual maintenance shutdowns.
Furthermore, startup of the rebuilt board machine at Äänekoski
progressed well. The low demand for fluting weakened profitability.
The average capacity utilization rate was 94 per cent (92).
Deliveries of folding boxboard by west European producers were up one
per cent on the previous quarter. M-reals total delivery volume rose
by 4 per cent. Selling prices remained unchanged. The depreciation of
the US dollar and the British pound depressed the average euro-
denominated selling price.
The delivery volume of linerboard was up 4 per cent on the previous
quarter. Selling prices remained unchanged. The depreciation of the
US dollar depressed the average euro-denominated selling price.
Demand for fluting was exceptionally weak. The delivery volume
declined by 20 per cent.
Folding boxboard deliveries fell by 4 per cent. Selling prices
remained unchanged.
Commercial printing
I IV III II I 2002 IV 02-
03 02 02 02 02 I 03
change
Turnover 403. 368. 403. 412. 454. 1,638 +9.6%
6 1 6 5 2 .4
Operating profit 18.3 16.6 22.9 28.3 38.9 106.7 +10.2%
Operating profit, % 4.5 4.5 5.7 6.9 8.6 6.5
Return on capital 5.2 4.0 5.8 7.1 9.6 7.1
employed, %
Mill deliveries, 460 425 419 441 471 1,757 +8.2%
1,000 t
Capacity utilization 86 79 74 82 90 81
rate, %
The Commercial printing business areas operating profit in the first
quarter was EUR 18.3 million (16.6). The improvement in operating
profit was due mainly to the seasonal increase in the delivery
volume. The delivery volume was boosted by customers increased
purchases to top up stocks. No major change took place in prices in
the main markets in Europe. The depreciation of the dollar and pound
nevertheless caused a drop in the industrys average selling price
compared with the previous quarter.
Deliveries by west European producers of coated fine paper rose by 6
per cent, compared with the previous quarter. The delivery volume of
the Commercial printing business areas products rose by 8 per cent.
The average running time of the paper machines was 6 days longer than
in the previous quarter and the capacity utilization rate was 86 per
cent (79). The order book was two weeks at the end of March.
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
I IV III II I 2002 IV 02-
03 02 02 02 02 I 03
change
Turnover 191. 200. 183. 183. 214. 782. -4.6%
6 8 4 7 8 7
Operating profit 21.8 19.6 28.3 26.1 28.8 102. +11.2%
8
Operating profit, % 11.4 9.8 15.4 14.2 13.4 13.1
Return on capital 8.7 7.4 11.0 10.5 11.7 10.4
employed, %
Mill deliveries, 246 211 218 223 250 902 +16.6%
1,000 t
Capacity utilization 93 79 88 91 96 89
rate, %
The Home & Office business area generated operating profit of EUR
21.8 million (19.6). Profitability was improved mainly by the growth
in the delivery volume, which was boosted by seasonal factors as well
as increased by deliveries to markets outside Europe. On the other
hand, profitability was weakened by the fall in the selling price
compared with the previous quarter.
Deliveries by west European producers of uncoated fine paper rose by
6 per cent, compared with the previous quarter. The Home & Office
business areas delivery volume rose by 17 per cent. The average
running time of the paper machines was 10 days longer than in the
previous quarter and the capacity utilization rate was 93 per cent
(79). The order book at the end of March was about three weeks.
Publishing
I IV III II I 2002 IV 02-
03 02 02 02 02 I 03
change
Turnover 204. 204. 191. 193. 201. 790. +0,1%
2 0 0 5 6 1
Operating profit 10.3 8.8 16.5 0.9 17.0 43.1 +17.0%
Operating profit, % 5.0 4.3 8.6 0.5 8.4 5.5
Return on capital 3.4 3.0 5.6 0.4 5.0 3.5
employed, %
Mill deliveries, 1,000 269 255 234 235 254 977 +5.5%
t
Capacity utilization 93 87 87 77 85 84
rate, %
The Publishing business areas operating profit was EUR 10.3 million
(8.8). Profitability was improved by the seasonal increase in the
delivery volume and by enhanced production efficiency. By contrast,
profitability was weakened by the continued fall in the selling
price. In addition, the depreciation of the US dollar and the British
pound depressed the average euro-denominated selling price.
Deliveries of coated magazine paper (LWC) by west European producers
fell by 10 per cent compared with the previous quarter. The
Publishing business areas delivery volume rose by 5 per cent. The
average running time of the paper machines was 4 days longer than in
the previous quarter and the capacity utilization rate was 93 per
cent (87). The order book at the end of March was slightly less than
three weeks.
Map Merchant Group
I IV III II I 2002 IV 02-
03 02 02 02 02 I 03
change
Turnover 367. 375. 371. 387. 409. 1 -1.9%
9 0 7 1 0 542.8
Operating profit/loss 5.8 -9.3 -5.9 -0.9 1.2 -14.9
Operating 1.5 -2.5 -1.6 -0.2 0.3 -1.0
profit/loss, %
Return on capital 5.8 -9.0 -4.0 -0.8 1.8 -3.0
employed, %
Delivery volumes, 317 311 307 314 338 1 270 +1.9%
1,000 t
The Map paper merchanting business area posted operating profit of
EUR 5.8 million (an operating loss of 9.3 million in Oct.-Dec. 2002).
The improvement in profitability came from cost savings brought by
efficiency-boosting measures and was also attributable to the EUR 8
million of non-recurring expense entries as well as write-downs on
asset items that were made at the end of the previous quarter. The
market situation remained difficult.
OTHER BUSINESSES
Metsä Tissue Corporation
I IV III II I 2002 IV 02-
03 02 02 02 02 I 03
change
Turnover 164. 170. 162. 155. 159. 647. -3.5%
7 7 2 7 2 8
Operating profit 11.7 5.9 17.2 8.4 11.6 43.1
Operating profit, % 7.1 3.5 10.6 5.4 7.3 6.7
Return on capital 14.5 7.6 21.0 10.5 14.0 13.2
employed, %
Metsä Tissue reported first-quarter operating profit of EUR 11.7
million (5.9). Profitability was improved by a seasonally better
sales period and, in comparative terms, by the non-recurring expenses
that were included in the previous quarters result.
Measured against the first quarter of last year, profitability in the
report period was improved by the slight growth in the delivery
volume as well as by an improved product range. Profitability was
weakened by increased outlays on the long-term development of
operations and by extra costs resulting from production disturbances.
Average selling prices were about one per cent below the previous
years level.
Implementation of Metsä Tissues capital expenditure and development
programme for the companys operations in Germany is progressing
according to plans. The total amount of the capital expenditures
within the programme is about EUR 45 million, and the programme will
be carried out for the most part by the end of 2004.
In January-March Metsä Tissue Corporations share price registered a
high of EUR 12.38 and a low of EUR 9.51. At the end of the report
period the share price was EUR 12.30. Turnover of Metsä Tissue shares
was EUR 127.7 million, representing 34.7 per cent of the total number
of shares outstanding. At 31 March 2003 the companys market
capitalization was EUR 369 million. At the end of the financial year
M-real owned 99.9 per cent of Metsä Tissues shares. At the same
date, foreign shareholders held 0.01 per cent of the shares.
On 3 March, 2003 M-real launched a mandatory redemption offer, in
accordance with the Companies Act, Chapter 14, Section 19, for Metsä
Tissues shares, and Metsä Tissue will be delisted from Helsinki
Exchanges when M-real has obtained all the Metsä Tissue shares, at
the latest.
M-REALGROUP (all figures unaudited)
PROFIT AND LOSS ACCOUNT 1-3/03 % 1-3/02 %
(EUR million)
Turnover 1 594,9 100,0 1 736,1 100,0
Interest in
associated companies -3,0 0,8
Other operating income 12,1 11,6
Operating expenses 1 417,1 1 512,6
Depreciation 119,5 117,1
Operating profit 67,4 4,2 118,8 6,8
Net exchange gains/ 6,2 -18,8
losses
Other financial income -35,0 -38,0
and expenses
Profit before 38,6 2,4 62,0 3,5
extraordinary items
Extraordinary items 0,0 0,0
Profit before taxes and
minority interest 38,6 2,4 62,0 3,5
Taxes -17,3 -22,0
Minority interest -0,3 -2,8
Profit for the period 21,0 1,3 37,2 2,1
PROFIT AND LOSS ACCOUNT Change % 1-12/02 %
(EUR million)
Turnover -141,2 -8,1 6 564,2 100,0
Interest in
associated companies -3,8 -4,9
Other operating income 0,5 73,4
Operating expenses 95,5 5 850,7
Depreciation -2,4 457,7
Operating profit -51,4 -43,3 324,3 4,9
Net exchange gains/ 25,0 -30,5
losses
Other financial income 3,0 -159,5
and expenses
Profit before extraordinary -23,4 -37,7 134,3 2,0
items
Extraordinary items 0,0 144,5
Profit before taxes and
minority interest -23,4 -37,7 278,8 4,2
Taxes 4,7 -59,8
Minority interest 2,5 -10,1
Profit for the period -16,2 -43,5 208,9 3,2
PROFIT AND LOSS ACCOUNT 10-12/02 %
(EUR million)
Turnover 1 587,3 100,0
Interest in
associated companies -1,9
Other operating income 26,7
Operating expenses 1 454,7
Depreciation 106,7
Operating profit 50,7 3,2
Net exchange gains/ 5,0
losses
Other financial income -45,6
and expenses
Profit before extraordinary 10,1 0,6
items
Extraordinary items 0,0
Profit before taxes and
minority interest 10,1 0,6
Taxes -1,8
Minority interest -1,4
Profit for the period 6,9 0,4
Taxes include taxes corresponding to profit for the period.
M-REALGROUP (all figures unaudited)
BALANCE SHEET 3/2003 % 3/2002 %
(EUR million)
Assets
Fixed assets 4 942,3 67,5 5 102,3 65,0
Current assets
Inventories 813,7 11,1 845,1 10,8
Other current assets 1 419,6 19,4 1 656,7 21,1
Liquid funds 142,0 2,0 242,1 3,1
Total 7 317,6 100,0 7 846,2 100,0
Liabilities
Shareholders´ equity 2 363,7 32,3 2 600,7 33,1
Minority interest 23,7 0,3 59,4 0,8
Provisions for liabilities 64,0 0,9 117,6 1,5
and charges
Long-term liabilities 2 994,9 40,9 2 888,9 36,8
Short-term liabilities 1 871,3 25,6 2 179,6 27,8
Total 7 317,6 100,0 7 846,2 100,0
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
M-REALGROUP (all figures unaudited)
CASH FLOW STATEMENTS 1-3/03 1-3/02 1-12/02 10-12/02
(EUR million)
Profit before extraordinary 38,6 62,0 134,3 10,1
items
Depreciation 119,5 117,1 457,7 106,7
Taxation -24,2 -23,8 -56,7 7,3
Other changes 15,8 23,5 -14,3 -16,3
Funds from operations 149,7 178,8 521,0 107,8
Change in working capital 3,9 91,9 145,4 87,4
Cash flow from operations 153,6 270,7 666,4 195,2
Gross capital -188,0 -63,0 -310,0 -130,0
expenditures 1)
Disposal and other changes 0,0 0,0 223,9 -39,9
in fixed assets
Cash flow after capital -34,4 207,7 580,3 25,3
expenditure
Share issue 0,0 0,0
Interest-bearing net debt of -8,5 -9,0 0,0
companies acquired and
divested
Dividend -107,4 -107,4 -108,4 0,0
Change in interest-bearing -150,3 100,3 462,9 25,3
liabilities
(+ decrease / - increase)
1) Exc. Interest-bearing net debt of acquired companies.
M-REALGROUP (all figures unaudited)
KEY FIGURES 1-3/03 1-3/02 1-12/02 10-12/02
Earnings per share, EUR 0,12 0,21 0,36 0,04
(diluted 1-3/03; 0,12 EUR)
Return on capital employed, % 5,0 8,2 5,8 3,8
Return on equity, % 3,5 6,7 3,0 1,3
Gross capital expenditures, 188 63 310 130
EUR million 1)
Personnel, average 20 216 21 250 21 070 20 469
3/03 3/02 12/02
Shareholders´ equity per 13,20 12,79 13,75
share, EUR
Equity ratio, % 32,6 30,0 34,2
Gearing ratio, % 133 144 119
Securities and guarantees, EUR 3/03 3/02 12/02
million
For own loans 482 597 487
For associated companies 0 1 0
For affiliated companies 26 5 26
For others 10 25 5
Total 518 628 518
Open derivative contracts, Gross Gross Gross
EUR million amount amount amount
3/03 3/02 12/02
Interest rate derivatives 8 935 17 434 9 998
Currency derivatives 7 592 4 302 4 832
Total 16 527 21 736 14 830
1) Excl. interest-bearing net debt of acquired companies.
M-REALGROUP Quarterly data
TURNOVER Quarter I Quarterly
EUR Million 2003 2002 I 03 IV 02 III 02 II 02 I 02
Commercial 403,6 454,2 403,6 368,1 403,6 412,5 454,2
printing
Home & Office 191,6 214,8 191,6 200,8 183,4 183,7 214,8
Publishing 204,2 201,6 204,2 204,0 191,0 193,5 201,6
Consumer 229,9 230,0 229,9 227,0 231,7 232,4 230,0
packaging
Map Merchant 367,5 409,0 367,5 375,0 371,7 387,1 409,0
Group
Metsä Tissue 164,7 159,2 164,7 170,7 162,2 155,7 159,2
Internal sales 33,4 67,3 33,4 41,7 60,5 71,8 67,3
and other
operations
GROUP TOTAL 1 594,9 1 736,1 1 594,9 1587,3 1604,1 1636,7 1736,1
OPERATING PROFIT Quarter I Quarterly
AND RESULT
EUR Million 2003 2002 I 03 IV 02 III 02 II 02 I 02
Commercial 18,3 38,9 18,3 16,6 22,9 28,3 38,9
printing
Home & Office 21,8 28,8 21,8 19,6 28,3 26,1 28,8
Publishing 10,3 17,0 10,3 8,8 16,5 0,9 17,0
Consumer 18,6 33,8 18,6 7,0 25,3 17,3 33,8
packaging
Map Merchant 5,4 1,2 5,4 -9,3 -5,9 -0,9 1,2
Group
Metsä Tissue 11,7 11,6 11,7 5,9 17,2 8,4 11,6
Other -18,7 -12,5 -18,7 2,2 -7,2 -22,4 -12,5
operations
OPERATING 67,4 118,8 67,4 50,7 97,1 57,7 118,8
PROFIT
% of turnover 4,2 6,8 4,2 3,2 6,1 3,5 6,8
Net exchange 6,2 -18,8 6,2 5,0 -16,8 0,2 -18,8
gains/losses
Other financial -35,0 -38,0 -35,0 -45,6 -38,7 -37,2 -38,0
income and
expenses
PROFIT BEFORE 38,6 62,0 38,6 10,1 41,5 20,7 62,0
EXTRAORDINARY
ITEMS
% of turnover 2,4 3,6 2,4 0,6 2,6 1,3 3,6
OPERATING Quarter I Quarterly
PROFIT, %
2003 2002 I 03 IV 02 III 02 II 02 I 02
Commercial 4,5 8,6 4,5 4,5 5,7 6,9 8,6
printing
Home & Office 11,4 13,4 11,4 9,8 15,5 14,2 13,4
Publishing 5,0 8,4 5,0 4,3 8,6 0,5 8,4
Consumer 8,1 14,7 8,1 3,1 10,9 7,4 14,7
packaging
Map Merchant 1,5 0,3 1,5 -2,5 -1,6 -0,2 0,3
Group
Metsä Tissue 7,1 7,3 7,1 3,5 10,6 5,4 7,3
GROUP TOTAL 4,2 6,8 4,2 3,2 6,1 3,5 6,8
M-REALGROUP
RETURN ON CAPITAL I Q Year
EMPLOYED, %
2003 2002 2001
Commercial printing 5,2 7,1 6,2
Home & Office 8,7 10,4 6,3
Publishing 3,4 3,5 5,7
Consumer packaging 7,8 9,1 14,9
Map Merchant Group 5,8 -3,0 -0,8
Metsä Tissue 14,5 13,2 10,3
GROUP TOTAL 5,0 5,8 6,9
CAPITAL EMPLOYED, 3/03 12/02 12/01
EUR Million
Commercial printing 1 610,5 1 555,6 1 621,1
Home & Office 998,2 1 030,6 1 023,7
Publishing 1 204,9 1 210,6 1 372,8
Consumer packaging 1 002,6 991,6 934,0
Map Merchant Group 400,1 410,4 484,8
Metsä Tissue 323,3 325,5 342,3
Other assets 302,8 372,8 515,1
GROUP TOTAL 5 842,4 5 897,1 6 293,8
PERSONNEL I Q I Q I IV Q
AVERAGE 2003 2002 2002
Commercial printing 5 391 6 003 5 831
Home & Office 2 117 2 110 2 125
Publishing 1 545 1 877 1 769
Consumer packaging 2 983 3 049 3 151
Map Merchant Group 2 591 2 817 2 745
Metsä Tissue 3 245 2 916 3 067
Other operations 2 344 2478 2382
GROUP TOTAL 20 216 21 250 21 070
M-REALGROUP
PRODUCTION Quarter I Quarterly
1000 tons 2003 2002 I 03 IV 02 III 02
Commercial printing 461 467 461 436 406
Home & Office 237 244 237 207 231
Publishing 1) 283 255 283 256 244
Paperboard 183 170 183 173 167
Fluting 48 54 48 57 64
Liner 2) 41 35 41 37 40
CTMP 82 62 82 76 79
Metsä-Botnias pulp 2) 280 264 280 249 294
M-reals pulp 311 289 311 308 290
PRODUCTION Quarterly
1000 tons II 02 I 02 IV 01 III 01 II 01
Commercial printing 448 467 432 425 411
Home & Office 233 244 207 199 221
Publishing 1) 235 255 242 246 272
Paperboard 169 170 152 170 161
Fluting 49 54 60 57 54
Liner 2) 39 35 36 35 31
CTMP 63 62 49 34 25
Metsä-Botnias pulp 2) 250 264 234 258 209
M-reals pulp 304 289 264 251 261
1) Includes 50 % of the production in MD Papier (until 30.6.2001) and
Albbruck (until 30.6.2002).
2) Equals to M-real´s owernship (47 %).
