M-REAL?S THIRD-QUARTER RESULT BEFORE TAXES MOVES INTO THE BLACK
M-real Corporation Stock Exchange Bulletin 28.10.2005 at 1.00 p.m.
1(24)
M-REALS THIRD-QUARTER RESULT BEFORE TAXES MOVES INTO THE BLACK
M-reals consolidated result before taxes, excluding non-recurring
items, improved in the third quarter to EUR 1 million from a loss of
EUR 124 million in the previous quarter. The operating result net of
non-recurring items improved to EUR 20 million, from a loss of EUR 57
million. Profitability was improved mainly by the rise in the price
of coated magazine paper, the increase in the volume of coated fine
paper delivered and the ending of the labour dispute that had
disrupted the Finnish paper industry.
All in all, the labour dispute in Finland is estimated to have cut
EUR 15-20 million off of the third-quarter operating result. The
figure takes into account the lost delivery volumes, the positive
effect on earnings of the return of product stocks to a normal level,
the effects on fixed costs as well as Metsä-Botnias lower operating
result. In the second quarter, the total effect was a decrease of
about EUR 70 million in the operating result.
Key figures for the third quarter of 2005, excluding non-recurring
items:
- Operating result: EUR 20 million (a loss of 57 million in the
previous quarter)
- Result before taxes: EUR 1 million (a loss of 124 million)
- Earnings per share: EUR 0.01 (0.32 negative)
- Return on capital employed: 2.3 per cent (0.3 negative)
Key figures for the third quarter of 2005:
- Turnover: EUR 1,269 million (1,259 million)
- Operating result: EUR 20 million (a loss of 72)
- Result before taxes: EUR 1 million (a loss of 143 million)
- Result for the report period: EUR 2 million (a loss of 121).
- Earnings per share: EUR 0.01 (0.37 negative)
- Return on capital employed: 2.3 per cent (5.7 negative)
- Equity ratio: 37.4 per cent (38.4)
- Gearing ratio: 87 per cent (85)
- Volume of paperboard delivered: 226,000 (231,000); volume of paper
delivered: 991,000 (999,000)
The third-quarter result before taxes was improved by a valuation
gain on interest rate derivatives of EUR 11 million owing to the rise
in the level of interest rates. In the previous quarter, a valuation
loss of EUR 17 million was booked on the corresponding instruments.
Operating profit in the second quarter was also burdened by a one-off
expense provision of EUR 15 million to cover the efficiency-boosting
programme in Sweden.
The cumulative result before taxes for January-September was a loss
of EUR 65 million. During the corresponding period last year a loss
of EUR 69 million was posted. Excluding non-recurring items the
result weakened by EUR 62 million to a loss of EUR 131 million,
particularly due to the losses caused by the labour disputes, the
weakening in the United States dollar and the British pound, the fall
in the price of uncoated fine paper, the rise in oil-based raw
material prices as well as the higher energy costs.
Commenting on the progress of M-reals cost-savings programme and the
market situation for its main products, President & CEO Hannu Anttila
said:
M-reals 230 million euro savings and efficiency-boosting programme
is progressing in line with targets, and we are actively looking for
new areas where savings can be realized.
After the labour dispute in the Finnish paper industry came to an
end, demand for most grades of paper and paperboard has been good and
the market balance more favourable. The revival in our volumes of
packaging board delivered has nevertheless been slower than forecast,
but we believe the situation will improve during the latter part of
the year. Within coated magazine paper, we have a strong order book
at present and price increases have been put through. Sales volumes
of coated fine paper have developed favourably and prices have been
rather steady. Within office papers, the company has succeeded in
raising the prices of the lowest quality grades.
The efficiency improvement of the Map paper merchanting business has
proceeded according to plans. Integrating the functions of the Modo
Merchants chain into James McNaughton a process that was started
towards the end of last year was seen to completion.
In the last quarter of the year, demand for the companys main
products is forecast to remain good. Deliveries are estimated to
increase in the Consumer Packaging and Publishing business areas,
where the labour dispute lowered the volume of deliveries in the
third quarter. Average prices of coated magazine paper and uncoated
fine paper are estimated to rise slightly. No significant change is
expected in the price of coated fine paper, and the price of folding
boxboard is expected to remain stable. The fourth quarter result
before taxes, excluding non-recurring items, is not estimated to
differ significantly from the previous quarter. The full-year result
before taxes will be in the red.
M-REAL CORPORATION
Corporate Communications
For further information please contact Hannu Anttila, President and
CEO, tel. +358 10 469 4343 or Juhani Pöhö, Executive Vice President
and CFO, tel. +358 10 469 5283.
M-REAL CORPORATION
INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2005
ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)
M-real made the transition from Finnish Accounting Standards (FAS) to
International Financial Reporting Standards (IFRS) from the beginning
of 2005.
The transition date is 1 January 2004, and an opening balance sheet
in accordance with IFRS accounting principles was prepared at that
date. Certain exemptions permitted to first-time adopters of IFRS
have been applied in preparing the opening balance sheet. More
detailed information and specifications of the effects of the
transition on the companys balance sheet and income statement as
well as the changes in accounting principles have been given in the
stock exchange release of 19 April 2005.
The first financial statements according to International Financial
Reporting Standards will be published for the period 1 January - 31
December 2005. This interim report has been prepared according to the
accounting and valuation principles of IFRS.
JULY-SEPTEMBER EARNINGS COMPARED WITH THE PREVIOUS QUARTER
In the third quarter M-reals consolidated turnover was EUR 1,269
million (Apr.-June 2005: EUR 1,259 million). Comparable turnover was
up 0.9 per cent.
The Group reported an operating profit of EUR 20 million (a loss of
EUR 72 million). The operating result does not include non-recurring
items. A one-off expense provision of EUR 15 million for the
efficiency-boosting programme at the units in Sweden was booked to
the operating result in the previous quarter.
The operating result was improved mainly by the rise in the price of
coated magazine paper, the growth in the volume of coated fine paper
delivered as well as the conclusion of the labour dispute that had
disrupted the Finnish paper industry.
The labour dispute in Finland came to an end on 1 July 2005. The
mills that were affected by the dispute got back to full production
in about a week. In the wake of the dispute, product stocks in the
supply chain were exceptionally low. The overall effect of the
disputes on the third-quarter operating result was an estimated loss
of EUR 15-20 million. The figure takes into account lost delivery
volumes, the positive effect on earnings of the return of product
stocks to a normal level, the effects on fixed costs as well as Metsä-
Botnias lower operating result. In the second quarter, the total
effect was a decrease of about EUR 70 million in the operating
result.
Of the business areas, Consumer Packaging, Publishing as well as
Commercial Printing posted improved operating results, whereas the
operating results of Office Papers and Map Merchants weakened.
Deliveries of paperboard to customers totalled 226,000 tonnes
(231,000). Production was curtailed by 3,000 tonnes in line with
demand (4,000). The lost production due to the labour dispute in
Finland is not included in the amount of curtailed production.
Paper deliveries from the mills totalled 991,000 tonnes (999,000).
Production curtailments amounted to 43,000 tonnes (54,000). The lost
production due to the labour dispute is not included in the amount of
curtailed production.
The share of the results of associated companies amounted to EUR 0
million (a loss of 4 million).
The aggregate amount of financial income and expenses was EUR 19
million negative (67 million negative). Foreign exchange differences
on accounts receivable, accounts payable, financial income and
expense and the valuation of currency hedging instruments amounted to
EUR 0 million (15 million negative). Net interest and other financial
expenses were EUR 19 million negative (52 million negative).
Other financial expenses include EUR 11 million of valuation gains on
interest rate derivatives. A valuation loss of EUR 17 million was
booked on the corresponding instruments in the previous quarter. In
addition, EUR 4 million of other write downs are included in other
financial expenses in the previous quarter.
Currency and interest rate hedges are used to hedge future cash flows
against fluctuations in foreign exchange and interest rates. The
valuation gains and losses that were booked are attributable
primarily to changes in the exchange rate of the United States dollar
and the general level of interest rates, and they do not have an
impact on cash flows. From the third quarter on, M-real will apply
partial hedge accounting according to IAS 39 in hedging its dollar
cash flow position. The adoption of hedge accounting will improve the
third-quarter result compared with the previous accounting policy by
EUR 1 million.
At the end of September, the exchange rate of the United States
dollar against the euro was 0.4 per cent higher and the rate of the
British pound against the euro 1.2 per cent higher than at the end of
June. On average, the dollar appreciated by 3.2 per cent and sterling
weakened by 0.7 per cent compared with the previous quarter.
The result before taxes was a profit of EUR 1 million (a loss of 143
million). Excluding non-recurring items, the result in the previous
quarter was a loss of EUR 124 million.
Net profit for the report period was EUR 2 million (a loss of 121
million). Income taxes, including the change in the deferred tax
liability, added EUR 2 million to earnings (21 million positive).
Earnings per share were EUR 0.01 (0.37 negative) and net of non-
recurring items, 0.01 (0.32 negative).
The return on equity was 0.4 per cent (20.2 negative); excluding non-
recurring items, 0.4 per cent (17.6 negative). The return on capital
employed was 2.3 per cent (5.7 negative); excluding non-recurring
items, 2.3 per cent (0.3 negative).
EARNINGS IN JANUARY-SEPTEMBER COMPARED WITH THE SAME PERIOD OF 2004
Turnover in January-September was EUR 3,872 million (Jan.-Sep. 2004:
4,158 million). Comparable turnover fell by 5.9 per cent.
Operating profit was EUR 63 million (45). Operating profit includes
70 million of net non-recurring income. The main non-recurring items
are a one-off expense provision, booked in the second quarter, of EUR
15 million for the efficiency boosting programme of the units in
Sweden and the EUR 81 million capital gain on the disposal of an 8
per cent stake in Metsä-Botnia, which was booked in the first
quarter. The result in January-September of last year did not include
non-recurring items.
The operating result, excluding non-recurring items, was a loss of
EUR 7 million (profit of 45). Profitability was weakened above all by
the lost delivery volumes for paperboard and coated magazine paper
owing to the labour dispute in Finland as well as by the lower
operating result reported by Metsä-Botnia. The overall effect of the
labour dispute on the operating result in January-September was about
EUR 85-90 million negative. In addition, the weakening in the US
dollar and sterling, the fall in the price of uncoated fine paper,
the rise in the costs of oil-based raw materials as well as higher
energy costs cut into profitability.
The second and third-quarter operating result includes a 39 per cent
share of Metsä-Botnias operating result compared with a 47 per cent
share in the first quarter. The previous years result included a 47
per cent share of Metsä-Botnias operating result.
Of the business areas, Map Merchants operating result improved,
whereas Commercial Printing and Office Papers reported weaker
operating results. The favourable trend in the Consumer Packaging and
Publishing business areas was overshadowed by the losses due to the
labour dispute.
Deliveries of paperboard to customers totalled 738,000 tonnes
(1,034,000). The Savon Sellu pulp mill is included in the comparison
periods delivery volume. The delivery volume of Kemiart Liners is
accounted for to the full extent in both periods. On a like-for-like
basis, the delivery volume in the comparison period was 871,000
tonnes. Production was curtailed by 24,000 tonnes in line with demand
(59,000). The lost production due to the labour dispute in Finland is
not included in the amount of curtailed production.
The total volume of paper deliveries was 3,009,000 tonnes
(2,958,000). Production curtailments amounted to 161,000 tonnes
(289,000). The lost production due to the labour disputes is not
included in the amount of curtailed production.
The share of the results of associated companies amounted to a loss
of EUR 3 million (profit of 1).
The aggregate amount of financial income and expenses was EUR 125
million negative (115 million negative). Foreign exchange differences
on accounts receivable, accounts payable, financial income and
expense and the valuation of currency hedging instruments were EUR 26
million negative (17 million negative). Net interest and other
financial expenses were EUR 99 million negative (98 million
negative).
Other financial expenses include a valuation loss of EUR 6 million on
interest rate hedges as well as other write downs of EUR 4 million
that were booked in the second quarter.
Currency and interest rate hedges are used to hedge future cash flows
against fluctuations in foreign exchange and interest rates. The
valuation gains and losses that were booked are attributable
primarily to changes in the exchange rate of the United States dollar
and the general level of interest rates, and they do not have an
impact on cash flows. From the third quarter on, M-real will apply
partial hedge accounting according to IAS 39 in hedging its dollar
cash flow position. The adoption of hedge accounting will improve the
third-quarter result compared with the previous accounting policy by
EUR 1 million.
At the end of September, the exchange rate of the United States
dollar against the euro was 3.0 per cent and the rate of the British
pound against the euro 0.7 per cent higher than at the end of
September 2004. On average, the dollar weakened by 3.1 per cent and
sterling by 1.8 per cent compared with January-September of last
year.
The result before taxes was a loss of EUR 65 million (a loss of 69
million). The result before taxes net of non-recurring items was a
loss of EUR 131 million (a loss of 69).
The Group posted a net loss for the report period of EUR 43 million
(net profit of 91 million). The result in the comparison period
included a capital gain of EUR 176 million on the disposal of Metsä-
Tissue as well as an EUR 5 million charge to earnings in connection
with the divestment of Forestia in January 2005. Income taxes,
including the change in the deferred tax liability, added EUR 23
million to earnings (9 million negative).
Earnings per share were EUR 0.13 negative (0.43). Excluding non-
recurring items, earnings per share were 0.34 negative (0.43).
The return on equity was 2.3 per cent negative (5.2 negative);
excluding non-recurring items, 6.2 per cent negative (5.2 negative).
The return on capital employed was 2.3 per cent (1.7) and net of non-
recurring items, 0.2 per cent (1.7).
PERSONNEL
M-real had an average payroll in January-September of 15,695
employees (Jan.-Sept. 2004: 16,673), of whom 4,750 employees worked
in Finland (5,405). The net decrease in average personnel was 978
employees, of which the effect of acquisitions and divestments was a
decrease of 399 employees.
The number of personnel at the end of September was 15,412 employees
(16,224 employees at 30 September 2004), of whom 4,543 employees
worked in Finland (5,044). The net decrease in personnel was 812
employees. The effect of acquisitions and divestments was a decrease
of 409 employees.
As from 31 March, the Groups personnel includes 39 per cent of Metsä-
Botnias employees. Figures prior to this include 47 per cent of
Metsä-Botnias employees.
CAPITAL EXPENDITURES
Capital expenditures on fixed assets totalled EUR 308 million in
January-September (Jan.-Sept. 2004: 145), or 8.0 per cent of turnover
(3.5).
The new mill that manufactures bleached chemithermal mechanical pulp
came on stream at the end of August in Kaskinen and deliveries began
in September. The mill has a production capacity of 300,000 tonnes a
year, all of which will be used as the raw material for the Groups
own paper and board mills.
An investment of about EUR 60 million at the Simpele mill was
announced in March. The mills board machine will be modernized, and
the slitter-winder and the reel and sheet packaging equipment will be
rebuilt. The sheeting capacity will also be increased. When the
capital programme is completed, paperboard production capacity will
rise to 215,000 tonnes a year. The capital project will be completed
stage by stage by spring 2006.
ACQUISITIONS, DIVESTMENTS AND RESTRUCTURING
The sale of forestland to Forestia Holding Oy was seen to completion
in January. The total price of the forest assets was EUR 172 million,
of which M-real's share was EUR 163 million. The transaction did not
have a material impact on earnings of the period.
In March, Metsä-Botnia, the resource company that is jointly owned by
M-real, UPM-Kymmene and Metsäliitto, announced its decision to invest
in a new pulp mill in Uruguay. The total cost of the investment will
be about 1.1 billion dollars. The mill will produce eucalyptus pulp
and it is estimated to start up during the third quarter of 2007.
Concurrently, M-real announced it was selling an 8% stake in Metsä-
Botnia to Metsäliitto Osuuskunta for EUR 164 million. A capital gain
of EUR 81 million was booked on the deal. Following the transaction,
the shareholdings in Metsä-Botnia are M-real 39%, Metsäliitto 14% and
UMP-Kymmene 47%. The transaction was completed on 31 March.
In June a cooperation agreement was signed with YIT Construction Ltd
on developing the Lielahti district of Tampere. The aim is to develop
the area into a pleasant residential suburb in cooperation with the
City of Tampere.
The negotiations with employees at the units in Sweden concerning the
integration of the Wifsta fine paper mill into the Husum pulp and
paper mill were seen to completion in June. Staff cuts by the end of
2006 will amount to about 200 employees and the objective of the
reorganization is to realize annual cost savings of at least 22
million euros. A one-off expense provision charge of EUR 15 million
to the second quarter operating result has been taken for the staff
cuts.
FINANCING
Interest-bearing net liabilities amounted to EUR 2,040 million at the
end of September (Sept. 2004: 2,294).
The equity ratio at the end of the period was 37.4 per cent (Sept.
2004: 31.4) and the gearing ratio was 87 per cent (112).
Liquidity is good. Liquidity at the end of September was EUR 1,504
million, of which EUR 1,384 million consisted of binding long-term
credit commitments and EUR 120 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 600
million.
At the end the report period an average of 5 months of net foreign
currency exposure was hedged. The degree of hedging during the report
period has varied between 4 and 5 months. At the end of the report
period, about 96 per cent of the shareholders equity not in euros
was hedged. At the end of September the Groups liabilities were tied
to fixed interest rates for a period of 22 months. During the report
period the interest rate maturity has varied from 18 to 27 months.
In March, Standard & Poors Ratings Services lowered the rating on M-
reals long-term loans from BB+ to BB and changed the outlook for the
rating from negative to stable.
On 19 October, Moodys Investors Services changed the outlook for M-
reals Ba2 credit rating from stable to negative.
SHARES
The highest price of M-reals Series B share on the Helsinki Stock
Exchange during the January-September period was EUR 4.93, the low
EUR 4.10 and the average price EUR 4.46. The price of the Series B
share was EUR 4.51 at the end of the report period on 30 September
2005. In 2004 the average price was EUR 5.59. The share price at the
end of 2004 was EUR 4.70.
The trade volume of the Series B share was EUR 829 million, or 64 per
cent of the shares outstanding. The market value of the Series A and
B shares at 30 September 2005 totalled EUR 1,480 million.
At 30 September 2005 Metsäliitto Osuuskunta owned 38.6 per cent of M-
real Corporations shares and the voting rights conferred by these
shares was 60.5 per cent. International investors owned 34.2 per cent
of the shares.
On 14 March the Annual General Meeting approved the Board of
Directors proposal for amending the Articles of Association. An
Article 16 concerning the conversion of shares has been added to the
Articles of Association, its principal content being that an M-real
Series A share can be converted into a Series B share upon the
written demand of a shareholder or authorized agent for nominee-
registered shares. No cash consideration is payable for carrying out
a conversion. The amendment to the Articles of Association was
entered in the Trade Register on 18 April. On 10 October 2005, 1,000
M-real Series A shares were converted into Series B shares, and
trading in the new shares began on 11 October 2005. The breakdown of
the shares following the conversion is 36,339,550 Series A shares and
291,826,062 Series B shares.
In March, application was made to the Helsinki Stock Exchange for
permission to reduce the companys round lot for traded shares from
500 to 200 shares. The change entered into effect on 14 March.
The Board of Directors does not have current authorizations to carry
out share issues or issues of convertible bonds or bonds with
warrants.
NEAR-TERM OUTLOOK
Economic growth in western Europe has remained slow, and growth over
the whole year is generally expected to come in under 2 per cent. In
western Europe, the growth in the amount of money spent on printed
advertising is estimated to be on a par with overall economic growth.
In eastern Europe, North America and Asia, however, economic growth
in 2005 is estimated to be clearly faster. Because of the high market
price of crude oil, prices of the oil-based raw materials as well as
transport costs will remain high. In addition, the rise in the price
of energy, especially natural gas and electricity, will raise
industrys costs.
Because of the labour disputes in Finland, M-reals stocks of
paperboard and paper at the beginning of the third quarter were low.
During the quarter the demand for M-reals main products was good,
and operating rates were high. Demand also increased owing to
seasonal factors. Delivery volumes nonetheless were lower than usual
for the business areas that were still affected by the labour
dispute, the effects of which continued on into the first days of the
third quarter. Price increases for magazine paper and uncoated fine
paper were put through during the quarter. Within coated fine paper,
prices remained unchanged.
In the last quarter of the year, demand for the companys main
products is forecast to remain good. Deliveries are estimated to
increase in the Consumer Packaging and Publishing business areas,
where the labour dispute lowered the volume of deliveries in the
third quarter. Average prices of coated magazine paper and uncoated
fine paper are estimated to rise slightly. No significant change is
expected in the price of coated fine paper, and the price of folding
boxboard is expected to remain stable. The fourth quarter result
before taxes, excluding non-recurring items, is not estimated to
differ significantly from the previous quarter. The full-year result
before taxes will be in the red.
Espoo, 28 October 2005
BOARD OF DIRECTORS
BUSINESS AREAS AND MARKET TRENDS
Consumer Packaging
III II I 05 IV III I-III I-III III/I
05 05 04 04 05 04 I 05
chang
e
Turnover 196 199 238 256 264 633 789 -1.5%
EBITDA 33 6 49 45 49 88 135
EBITDA, % 16.8 3.0 20.6 17.6 18.6 13.9 17.1
Operating result 14 -16 27 30 25 25 64
Operating result, % 7.1 -8.0 11.3 11.7 9.5 3.9 8.1
Non-recurring items 0 0 0 +3 0 0 0
Return on capital 6.3 -6.5 11.1 11.9 9.7 3.7 8.6
employed, %
Return on capital 6.3 -6.5 11.1 10.7 9.7 3.7 8.6
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t 226 231 281 340 345 738 1,034 -2.2%
Paperboard 292 128 293 326 355 713 1,004 128.1
production, 1,000 t %
EBITDA = Earnings before interest, taxation, depreciation and
amortization
The Savon Sellu pulp mill is included in the figures for 2004.
Third quarter
The Consumer Packaging business area reported a third-quarter
operating profit of EUR 14 million (Apr.-June 2005: a loss of 16
million). Because of the labour disputes in Finland, the business
areas deliveries to customers were clearly lower than the production
volume due to the exceptionally low stock levels in the supply chain.
The resultant increase in product stocks and their return to the
normal level was a central factor that improved earnings.
Deliveries by west European folding boxboard producers were at the
previous quarters level. M-reals deliveries of folding boxboard
fell by 5 per cent owing to the labour disputes in Finland. The
average price for folding boxboard was at the previous quarters
level.
Linerboard deliveries likewise declined due to the labour disputes.
The selling price was unchanged. In western Europe, agreements have
been reached on regional price increases of about 25 euros per tonne.
The new prices will come into effect in November-December.
January-September
The business areas operating result in January-September was a
profit of EUR 25 million (Jan.-Sept. 2004: 64 million). The operating
result was weakened by the lost delivery volumes due to the labour
dispute and the decrease in Metsä-Botnias operating result. In
addition, the result was burdened by the weakening in the US dollar
and pound sterling, the rise in the costs of oil-based raw materials
as well as higher energy costs.
Deliveries by west European folding boxboard producers were down 2
per cent compared with the same period of last year. M-reals
deliveries fell by 13 per cent.
The average euro-denominated price of folding boxboard was on a par
with the same period of last year.
Publishing
III II I 05 IV III I-III I-III III/I
05 05 04 04 05 04 I 05
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Turnover 181 177 208 225 202 566 577 2.3%
EBITDA 35 0 29 26 31 64 75
EBITDA, % 19.3 0.0 13.9 11.6 15.3 11.3 13.0
Operating result 14 -21 8 4 9 1 8
Operating result, % 7.7 - 3.8 1.8 4.5 0.2 1.4
11.9
Non-recurring items 0 -2 0 +1 0 -2 0
Return on capital 5.4 -7.4 2.7 1.5 3.0 0.2 1.0
employed, %
Return on capital 5.4 -6.7 2.7 1.2 3.0 0.4 1.0
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t 257 256 307 336 301 820 856 0.4%
Production, 1,000 t 294 155 308 314 309 757 834 89.7%
EBITDA = Earnings before interest, taxation, depreciation and
amortization
Third quarter
The Publishing business areas operating result in the third quarter
was a profit of EUR 14 million (Apr.-June 2005: a loss of 21
million). The result does not include non-recurring items. The
previous quarters result includes a non-recurring charge of about
EUR 2 million for the Publishing business areas share of the EUR 15
million expense provision for the efficiency-boosting programme at
the units in Sweden.
The operating result, excluding non-recurring items, was a profit of
EUR 14 million (a loss of 19 million). The operating result was
improved mainly by the conclusion of the labour dispute in Finland
and the resultant increase in product stocks to the normal level as
well as by an improvement in Metsä-Botnias operating result. The
rise in average selling prices also lifted profitability. The
strengthening in the dollar raised the euro-denominated price
obtained for deliveries outside Europe.
Deliveries by west European producers of magazine paper rose by 3 per
cent. The Publishing business areas delivery volume was down one per
cent. The labour disputes cut into delivery volumes in both the
second and third quarters.
January-September
The business areas operating result in January-September was a
profit of EUR 1 million (Jan.-Sept. 2004: 8 million). The result
includes the above-mentioned non-recurring expense provision of EUR 2
million.
The operating result, excluding non-recurring items, was a profit of
EUR 3 million (8). The operating profit was weakened by the lost
delivery volumes due to the labour dispute in Finland and the
decrease in Metsä-Botnias operating result. In addition, the result
was burdened by the weakening in the US dollar and pound sterling,
the rise in the costs of oil-based raw materials as well as higher
energy costs.
Deliveries of coated magazine paper by west European producers were
up 4 per cent on the corresponding period a year ago. The Publishing
business areas delivery volume fell by 5 per cent. Deliveries
declined, particularly to western Europe and the Far East.
The average selling price rose by one per cent despite the
strengthening in the euro.
Commercial Printing
III II I 05 IV III I-III I-III III/I
05 05 04 04 05 04 I 05
chang
e
Turnover 381 368 363 372 368 1,112 1,102 3.5%
EBITDA 25 9 22 -8 20 55 65
EBITDA, % 6.6 2.4 6.1 -2.2 5.4 4.9 5.9
Operating result 0 -17 -4 -35 -7 -21 -15
Operating result, % 0.0 -4.6 -1.1 -9.4 -1.9 -1.9 -1.4
Non-recurring items 0 -1 +1 -27 0 0 0
Return on capital 0.0 -4.9 -1.0 - -1.8 -2.1 -1.3
employed, % 10.1
Return on capital 0.0 -4.6 -1.3 -2.1 -1.8 -2.1 -1.3
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t 480 464 453 469 464 1,397 1,373 3.4%
Production, 1,000 t 482 452 470 472 471 1,404 1,413 6.6%
EBITDA = Earnings before interest, taxation, depreciation and
amortization
Third quarter
The Commercial Printing business areas operating result in the third
quarter was EUR 0 million (Apr.-June 2005: a loss of 17 million). The
result does not include non-recurring items. The previous quarters
result includes a non-recurring charge of about EUR 1 million for
Commercial Printings share of the EUR 15 million expense provision
for the efficiency-boosting programme at the units in Sweden.
Profitability was improved mainly by the growth in delivery volumes
and product stocks. The growth in stocks was due primarily to the
return to a normal level of product stocks after the labour dispute
in Finland came to an end. The operating result was furthermore
improved by lower fixed costs as well as Metsä-Botnias higher
operating result.
Deliveries by west European producers of coated fine paper rose by 6
per cent. M-reals coated fine paper deliveries rose by 5 per cent.
The selling price of coated fine paper and speciality paper was on a
par with the previous quarter.
January-September
The business areas operating result in January-September was a loss
of EUR 21 million (Jan.-Sept. 2004: a loss of 15 million). The non-
recurring income and expenses in the result cancel each other out so
that the net result does not include non-recurring items. The result
for the same period a year ago does not include non-recurring items.
Profitability was weakened mainly by the fall in the average selling
price. The price of coated fine paper was at the level of the same
period of last year. The average price of speciality paper fell owing
to the less favourable product mix in overall sales. Prices of
uncoated products likewise fell. The strengthening in the euro
depressed the average euro-denominated selling price of exported
products. Profitability was furthermore weakened by the rise in the
costs of oil-based raw materials, higher energy costs and the
decrease in Metsä-Botnias operating result.
On the other hand thanks to the implemented savings measures, fixed
costs were clearly lower than in the same period last year, which
impacted positively on profitability.
Deliveries by west European producers of coated fine paper were at
the level seen in the same period of last year. M-reals coated fine
paper deliveries rose by 4 per cent. The biggest increase in
deliveries was in western and eastern Europe.
Office Papers
III II I 05 IV III I-III I-III III/I
05 05 04 04 05 04 I 05
chang
e
Turnover 174 187 176 162 168 537 505 -7.0%
EBITDA 13 5 20 16 20 38 56
EBITDA, % 7.5 2.7 11.4 9.9 11.9 7.1 11.1
Operating result -3 -10 5 0 4 -8 10
Operating result, % -1.7 -5.3 2.8 0.0 2.4 -1.5 2.0
Non-recurring items 0 -12 3 0 0 -9 0
Return on capital -1.1 -5.0 2.4 0.1 1.9 -1.2 1.6
employed, %
Return on capital -1.1 0.9 0.9 0.1 1.9 0.3 1.6
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t 254 279 259 233 246 792 728 -9.0%
Production, 1,000 t 260 268 248 244 241 776 731 -3.0%
EBITDA = Earnings before interest, taxation, depreciation and
amortization
Third quarter
The Office Papers business areas operating result in the third
quarter was a loss of EUR 3 million (Apr.-June 2005: a loss of 10
million). The result does not include non-recurring items. The
previous quarters result includes a non-recurring charge of about
EUR 12 million for Office Papers share of the EUR 15 million expense
provision for the efficiency-boosting programme at the units in
Sweden.
The operating result, excluding non-recurring items, was a loss of
EUR 3 million (a profit of 2 million). Profitability was weakened by
the fall in delivery volumes compared with the exceptionally high
delivery volumes in the second quarter. In addition, the result was
weakened by the effects of the annual maintenance shutdowns that were
carried out as well as by the rise in oil-based raw material costs.
Deliveries by west European producers of uncoated fine paper fell by
7 per cent. The delivery volume of the Office Papers business areas
products fell by 9 per cent.
January-September
The business areas operating result in January-September was a loss
of EUR 8 million (Jan.-Sept. 2004: a profit of 10 million). The
result includes a total of EUR 9 million of non-recurring net
expenses, the biggest item of which is the above-mentioned expense
provision connected with the efficiency-boosting programme in Sweden.
The result for the same period a year ago does not include non-
recurring items.
The operating result, excluding non-recurring items, was a profit of
EUR 1 million (10). Profitability was weakened mainly by the 3 per
cent drop in the average selling price.
Deliveries of uncoated fine paper by west European producers declined
by one per cent compared with the corresponding period a year ago.
The volume of deliveries by the Office Papers business area rose by 6
per cent. Deliveries were up in all market areas.
Map Merchant Group
III II I 05 IV III I-III I-III III/I
05 05 04 04 05 04 I 05
chang
e
Turnover 341 351 341 343 332 1,033 1,025 -2.8%
EBITDA 6 9 8 2 6 23 22
EBITDA, % 1.8 2.6 2.3 0.6 1.8 2.2 2.1
Operating result 5 7 6 0 4 18 17
Operating result, % 1.5 2.0 1.8 0 1.2 1.7 1.7
Non-recurring items 0 0 0 -8 0 0 0
Return on capital 6.6 8.6 7.7 -0.5 4.7 7.6 5.5
employed, %
Return on capital 6.6 8.6 7.7 9.3 4.7 7.6 5.5
employed,
excl. non-recurring
items, %
Deliveries, 1,000 t 337 343 332 330 321 1,012 978 -1.8%
EBITDA = Earnings before interest, taxation, depreciation and
amortization
Third quarter
The operating result of the Map Merchants paper merchanting business
in the third quarter was a profit of EUR 5 million (Apr.-June 2005:
7). The operating result does not include non-recurring items. The
operating result was weakened by seasonal factors.
The integration of the Modo Merchants paper merchanting chain into
James McNaughton a process that was started towards the end of last
year was seen to completion during the quarter.
January-September
The operating result for January-September improved by EUR 1 million
compared with the same period a year ago. Profitability was improved
by the growth in delivery volumes as well as by lower fixed costs
thanks to the efficiency-boosting measures that were carried out. By
contrast, lower sales margins weakened profitability.
M-REAL GROUP (all figures unaudited)
CONDENSED CONSOLIDATED INCOME STATEMENT
EUR million 1-9/05 1-9/04 Change 1-12/04 7-9/05
Sales 3 872 4 158 -286 5 522 1 269
Other operating income 174 66 108 86 35
Operating expenses -3 698 -3 878 180 -5 188 -1 190
Depreciation and -285 -301 16 -392 -94
impairment losses
Operating profit 63 45 18 28 20
% of sales 1.6 1.1 0.5 1.6
Share of results in -3 1 -4 0 0
associated companies
Net exchange gains and -26 -17 -9 4 0
losses
Other financial income -99 -98 -1 -140 -19
and expenses, net
Profit on continuing -65 -69 4 -108 1
operations before tax
% of sales -1.7 -1.7 -2.0 0.1
Income tax 23 -9 32 -17 2
Profit on continuing -42 -78 36 -125 3
operations
% of sales -1.1 -1.9 -2.3 0.2
Profit on discontinued 0 171 -171 173 0
operations
Profit for the period -42 93 -135 48 3
% of sales -1.1 2.2 0.9 0.2
Minority interest -1 -2 1 -3 -1
Profit/loss attributable -43 91 -134 45 2
to shareholders of parent
company
% of sales -1.1 2.2 0.8 0.2
Condensed Consolidated Balance sheet
EUR million 30.9.20 % 30.9.20 % 31.12.2 %
05 04 004
ASSETS
Non-current assets
Intangible assets 654 10.5 640 9.8 643 9.8
Tangible assets 3 166 50.6 3 256 50.0 3 256 50.2
Biological assets 33 0.5 27 0.4 30 0.5
Shares in 113 1.8 140 2.2 127 2.0
associated and
other companies
Interest bearing 43 0.7 44 0.7 43 0.7
receivables
Deferred tax 40 0.6 31 0.5 39 0.6
receivables
Other non-interest 26 0.4 10 0.1 9 0.1
bearing receivables
4 075 65.1 4 148 63.7 4 147 63.9
Current assets
Inventories 726 11.6 742 11.4 726 11.2
Receivables
Interest bearing 178 2.9 33 0.5 38 0.6
receivables
Non-interest 1 159 18.5 1 230 18.9 1167 18.0
bearing
receivables
Cash and cash 120 1.9 190 2.9 242 3.7
equivalents
2 183 34.9 2 195 33.7 2173 33.5
Assets classified 167 2.6 166 2.6
as held for sale
Total assets 6 258 100.0 6 510 100.0 6 486 100.0
SHAREHOLDER´S 30.9.20 % 30.9.20 % 31.12.2 %
EQUITY AND 05 04 004
LIABILITIES
Shareholder´s
equity
Equity attributable 2 310 36.9 2 004 30.8 2 393 36.9
to shareholders of
parent company
Minority interest 31 0.5 39 0.6 37 0.6
Total equity 2 341 37.4 2 043 31.4 2 430 37.5
Non-current
liabilities
Deferred tax 359 5.8 382 5.9 386 6.0
liabilities
Post employment 215 3.4 239 3.7 216 3.4
benefit obligations
Provisions 56 0.9 23 0.3 36 0.5
Other non-interest 82 1.3 8 0.1 15 0.2
bearing liabilities
Interest bearing 1 639 26.2 1 610 24.7 1 640 25.3
liabilities
2 351 37.6 2 262 34.7 2 293 35.4
Current liabilities
Non-interest 823 13.1 1 215 18.7 861 13.3
bearing liabilities
Interest bearing 743 11.9 953 14.6 866 13.3
liabilities
1 566 25.0 2 168 33.3 1 727 26.6
Liabilities 37 0.6 36 0.5
classified as held
for sale
Total liabilities 3 917 62.6 4 467 68.6 4 056 62.5
Total shareholder´s 6 258 100.0 6 510 100.0 6 486 100.0
equity and
liabilities
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
EUR million 1-9/ 1-9/ 1-12/ 7-9/
2005 2004 2004 2005
Cash flow from
Operating Activities
Profit for the period -43 91 45 2
Adjustments to the 350 273 316 83
profit, total
Change in working -18 -89 52 -9
capital
Cash flow arising from 289 275 413 76
Operations
Finance costs, net -96 -113 -162 -18
Income taxes paid -31 -14 -34 -8
Net cash flow arising 162 148 217 50
from Operations
Activities
Investments in -308 -145 -245 -105
intangible and
tangible assets
Asset sales and other 320 424 462 6
investing cash flow
Net cash flow arising 12 279 217 -99
from
Investing Activities
Share issue 341 448
Changes in loans and -258 -710 -771 40
in
other financial items
Dividends paid -39 -54 -54 0
Net cash flow arising -297 -423 -377 40
from Financial
Activities
Changes in Cash and -123 4 57 -9
Cash Equivalents
Cash and Cash 242 185 185 129
Equivalents at
beginning of period
Translation 1 1 0 0
adjustments
Changes in Cash and -123 4 57 -9
Cash Equivalents
Cash and Cash 120 190 242 120
Equivalents at end of
period
STATEMENT OF Share Share Translat Fair Retained Minori Total
CHANGES IN capital premium ion value earnings ty
SHAREHOLDER´S fund differen and intere
EQUITY ces other st
EUR million reserve
s
Shareholders 304 473 2 1 466 19 2 264
equity according
to FAS
Dec 31, 2003
Effects of -285 10 -275
adopting IFRS
Shareholders 304 473 2 1 181 29 1 989
equity according
to IFRS
Jan 1, 2004
Translation 6 6
differences
Change in 5 5
minority
interest during
the period
Profit for the 45 3 48
period
Total recognised 6 0 45 8 59
income for the
period
Dividends paid -54 -54
Share issue 254 194 -12 436
Shareholders 558 667 6 2 1 160 37 2 430
equity Dec
31,2004
Translation 0
differences
Net expenses -1 -1
recognised
directly in
equity
Change in -7 -7
minority
interest during
the period
Profit for the -43 1 -42
period
Total recognised -1 -43 -6 -50
income for the
period
Dividends paid -39 -39
Shareholders 558 667 6 1 1 078 31 2 341
equity Sep 30,
2005
KEY RATIOS 1-9/ 1-9/ 1-12/ 7-9/
05 04 04 05
Sales, MEUR 3 872 4 158 5 522 1 269
Operating profit, MEUR 63 45 28 20
excl. non-recurring -7 45 61 20
items
Profit before taxes, -65 -69 -108 1
MEUR
excl. non-recurring -131 -69 -75 1
items
Profit for the period, -43 91 45 2
MEUR
Earnings per share, EUR -0.13 0.43 0.19 0.01
excl. non-recurring -0.34 0.43 0.28 0.01
items EUR
from continuing -0.34 -0.38 -0.53 0.01
operations EUR
from discontinued 0.00 0.81 0.72 0.00
operations
EUR
Return on equity, % -2.3 -5.2 -5.7 0.4
excl. non-recurring -6.2 -5.2 -4.6 0.4
items, %
Return on capital 2.3 1.7 0.9 2.3
employed, %
excl. non-recurring 0.2 1.7 1.6 2.3
items, %
Equity ratio, % 37.4 31.4 37.5 37.4
Gearing ratio, % 87 112 89 87
Shareholders equity 7.04 9.42 7.29 7.04
per share, EUR
Interest-bearing net 2 040 2 294 2 183 2 040
liabilities, MEUR
Gross capital 308 145 245 105
expenditure,
MEUR
Personnel at the end of 15 412 16 224 15 960 15 412
the period
Non-recurring items for the period 1-9/2005 in operating profit are
capital gain on sale of Metsä Botnia shares (81), indemnity received
by M-real Alizay (4) and restructuring in Husum mill (-15) and in
financial items (-4).
SECURITIES AND 9/05 9/04 12/04
GUARANTEES
EUR million
For own loans 138 187 161
For associated 1 1 1
companies
For affiliated 5 7 5
companies
For others 11 11 11
Total 155 206 178
OPEN DERIVATIVE 9/05 9/04 12/04
CONTRACTS
EUR million
Interest rate 10 793 14 476 15 265
derivatives
Currency derivatives 3 952 4 753 6 641
Other derivatives 23 5 9
Total 14 768 19 233 21 915
The fair value of open derivative contracts calculated at market
value at the end of the review period was
EUR -25.0 million (EUR +1.6 million Dec 31, 2004 and EUR -11.9
million September 30, 2004).
RECONCILIATION OF INCOME STATEMENT
Condensed Consolidated Income Statement
EUR million 1-9/2004
Reporte Effects IFRS
d FAS of 1-9/04
1-9/04 transit
ion to
IFRS
Sales 4 078 80 4 158
Other operating 64 2 66
income
Operating expenses -3 822 -56 -3 878
Share of results in -5 5 0
associated
companies
Depreciation and -362 61 -301
impairment losses
Operating profit -47 92 45
Share of results in 0 1 1
associated
companies
Net exchange gains 4 -21 -17
and losses
Other financial -94 4 -98
income and
expenses, net
Profit on -137 68 -69
continuing
operations before
tax
Income tax 15 -24 -9
Profit on -122 44 -78
continuing
operations
Profit on 173 -2 171
discontinued
operations
Profit for the 51 42 93
period
Minority interests -2 0 -2
Profit/loss 49 42 91
attributable to
shareholders´ of
parent company
RECONCILIATION OF BALANCE SHEET
Condensed Consolidated Balance Sheet
EUR million Reported Effects of IFRS
FAS transition
30.9.04 to IFRS
ASSETS
Non-current assets
Intangible assets 675 -35 640
Tangible assets 3 177 79 3 256
Biological assets 189 -162 27
Shares in associated 134 6 140
and other companies
Interest bearing 43 1 44
receivables
Deferred tax 17 14 31
receivables
Other non-interest 9 1 10
bearing receivables
4 244 -96 4 148
Current assets
Inventories 748 -6 742
Receivables
Interest bearing 36 -3 33
receivables
Non-interest bearing 1 218 12 1 230
receivables
Cash and cash 201 -11 190
equivalents
2 203 -8 2 195
Assets classified as 0 167 167
held for sale
Total assets 6 447 63 6 510
SHAREHOLDER´S EQUITY Reported Effects of IFRS
AND LIABILITIES FAS transition
30.9.04 to IFRS
Shareholder´s equity
Equity attributabe to 2 241 -237 2004
shareholders of
parent company
Minority interest 28 11 39
Total equity 2 269 -226 2 043
Non-current
liabilities
Deferred tax 381 1 382
liabilities
Post employment 26 213 239
benefit
obligations
Provisions 29 -6 23
Other non-interest 12 -4 8
bearing
liabilities
Interest bearing 1 606 4 1 610
liabilities
2 054 208 2 262
Current liabilities
Non-interest bearing 1 172 43 1 215
liabilities
Interest bearing 952 1 953
liabilities
2 124 44 2 168
Liabilities classified 0 37 37
as held for sale
Total liabilities 4 178 289 4 467
Total shareholder´s 6 447 63 6 510
equity and liabilities
Quarterly information
SALES BY SEGMENTS I- I- III II I 05 IV III 2004
EUR million III III 05 05 04 04
05 04
Consumer Packaging 633 789 196 199 238 256 264 1045
Publishing 566 577 181 177 208 225 202 802
Commercial Printing 1112 1102 381 368 363 372 368 1474
Office Papers 537 505 174 187 176 162 168 667
Map Merchant Group 1033 1025 341 351 341 343 332 1368
Internal sales and -9 160 -4 -23 18 6 53 166
other operations
GROUP TOTAL 3872 4158 1269 1259 1344 1364 1387 5522
OPERATING RESULT BY I- I- III II I 05 IV III 2004
SEGMENTS, EUR III III 05 05 04 04
million 05 04
Consumer Packaging 25 64 14 -16 27 30 25 93
Publishing 1 8 14 -21 8 4 9 12
Commercial Printing -21 -15 0 -17 -4 -35 -7 -49
Office Papers -8 10 -3 -10 5 0 4 10
Map Merchant Group 18 17 5 7 6 0 4 17
Other operations 48 -39 -10 -15 73 -16 -18 -55
Liiketulos 63 45 20 -72 115 -17 17 28
% of sales 1.6 1.1 1.6 -5.7 8.6 -1.3 1.2 0.5
Share of result in -3 1 0 -4 1 -1 1 0
associated
companies
Net exchange gains -26 -17 0 -15 -11 21 4 4
and losses
Other financial -99 -98 -19 -52 -28 -42 -36 -140
income and
expences, net
Result on -65 -69 1 -143 77 -39 -14 -108
continuing
operations before
tax
Income tax 23 -9 2 21 0 -8 -8 -17
Result on -42 -78 3 -122 77 -47 -23 -125
continuing
operations
Result on 0 171 0 0 0 2 -8 173
discontinued
operations
Result of the -42 93 3 -122 77 -45 -31 48
period
Minority interest -1 -2 -1 1 -1 -1 -1 -3
Profit/loss -43 91 2 -121 76 -46 -32 45
attributable to
shareholders of
parent company
Earnings per share - 0.43 0.01 - 0.23 - - 0.19
adjusted for share 0.13 0.37 0.23 0.15
issue, EUR
NON-RECURRING ITEMS I- I- III II I 05 IV III 2004
III III 05 05 04 04
05 04
Consumer Packaging 0 0 0 0 0 3 0 3
Publishing -2 0 0 -2 0 1 0 1
Commercial Printing 0 0 0 -1 1 -27 0 -27
Office Papers -9 0 0 -12 3 0 0 0
Map Merchant Group 0 0 0 0 0 -8 0 -8
Other operations 81 0 0 0 81 -2 0 -2
Non-recurring items 70 0 0 -15 85 -33 0 -33
in operations, total
Non-recurring -4 0 0 -4 0 0 0 0
financial items
Non-recurring items, 66 0 0 -19 85 -33 0 -33
total
Operating result -7 45 20 -57 30 19 8 61
excl. non-recurring
items
% of sales -0.2 1.1 1.6 -4.5 2.2 1.4 0.6 1.1
Result before taxes, -131 -69 1 -124 -9 -3 -24 -75
result excl. non-
recurring items
% of sales -3.4 -1.7 0.1 -9.8 -0.7 -0.2 -1.7 -1.4
Earnings per share, - 0.43 0.01 - - - - 0.28
excl. non-recurring 0.34 0.32 0.03 0.15 0.15
items
Return on equity, -6.2 -5.2 0.4 - -1.3 -4.4 -4.5 -4.6
excl. non-recurring 17.6
items
Return on capital 0.2 1.7 2.3 -0.3 3.0 1.5 1.7 1.6
employed, excl. non-
recurring items
RETURN ON I-III I-III III 05 II 05 I 05 IV 04 III 04 2004
CAPITAL 05 04
EMPLOYED, %
Consumer 3.7 8.6 6.3 -6.5 11.1 11.9 9.7 9.5
Packaging
Publishing 0.2 1.0 5.4 -7.4 2.7 1.5 3.0 1.1
Commercial -2.1 -1.3 0.0 -4.9 -1.0 -10.1 -1.8 -3.5
Printing
Office Papers -1.2 1.6 -1.1 -5.0 2.4 0.1 1.9 1.2
Map Merchant 7.6 5.5 6.6 8.6 7.7 -0.5 4.7 5.1
Group
GROUP TOTAL 2.3 1.7 2.3 -5.7 10.1 -1.4 1.7 0.9
CAPITAL EMPLOYED 30.9.05 30.6.05 31.3.05 31.12.0 30.9.04
EUR million 4
Consumer 898 876 957 1002 1025
Packaging
Publishing 1137 1063 1186 1208 1211
Commercial 1275 1362 1356 1320 1367
Printing
Office Papers 786 789 823 829 863
Map Merchant 341 327 333 329 326
Group
Other assets 286 266 196 77 -363
GROUP TOTAL 4723 4683 4851 4769 4438
PERSONNEL I-III
Average 05 2004
Consumer Packaging 2696 3 082
Publishing 1500 1 526
Commercial Printing 4849 4 963
Office Papers 1962 2 036
Map Merchant Group 2516 2 528
Other operations 2172 2 397
GROUP TOTAL 15695 16 532
DELIVERIES
1000 tons I-III I-III III II 05 I 05 IV 04 III 2004
05 04 05 04
Consumer Packaging 738 1034 226 231 281 340 345 1374
Publishing 820 856 257 256 307 336 301 1192
Commercial Printing 1397 1373 480 464 453 469 464 1842
Office Papers 792 728 254 279 259 233 246 961
Paper businesses 3009 2958 991 999 1019 1038 1011 3995
total
Map Merchant Group 1012 978 337 343 332 330 321 1308
PRODUCTION
1000 tons I-III I-III III II 05 I 05 IV 04 III 2004
05 04 05 04
Consumer Packaging 713 1004 292 128 293 326 355 1330
Publishing 757 834 294 155 308 314 309 1148
Commercial Printing 1404 1413 482 452 470 472 471 1885
Office Papers 776 731 260 268 248 244 241 975
Paper mills total 2937 2977 1036 875 1026 1030 1021 4008
Metsä-Botnias pulp 649 868 234 108 307 283 290 1151
1)
M-reals pulp 1112 1134 379 350 383 399 384 1533
1) Equals to M-reals ownership in Metsä-Botnia (39% as from II 05,
47% until I 05).
M-REAL CORPORATION
Hannu Anttila
President and CEO
