Metsäliitto Group Interim Report January - June 2010
Metsäliitto Group Interim Report 1 January - 30 June 2010, Stock Exchange
Release August 5, 2010 at 12:00 noon
Metsäliitto Group's operating result excluding non-recurring items was EUR 250
million
Result for the first half of 2010
- Sales EUR 2,641 million (1-6/2009: EUR 2,492 million).
- Operating result excluding non-recurring items was EUR 250 million (-128),
representing 9.5 per cent of sales (-5.1). Operating result including
non-recurring items was EUR 246 million (-193).
- Result before tax, excluding non-recurring items, was EUR 185 million (-181).
Result before tax, including non-recurring items, was EUR 165 million (-257).
Result for the second quarter of 2010
- Sales EUR 1,416 million (4-6/2009: EUR 1,213 million).
- Operating result excluding non-recurring items was EUR 154 million (-61),
representing 10.9 per cent of sales (-5.0). Operating result including
non-recurring items was EUR 141 million (-56).
- Result before tax, excluding non-recurring items, was EUR 130 million (-88).
Result before tax, including non-recurring items, was EUR 102 million (-95).
Events in the second quarter of 2010
- A particularly favourable market situation kept the demand for pulp good and
prices up.
- The demand for board remained good, and prices have been on the rise.
- Metsä Tissue announced its plan to develop and strengthen its operations in
Poland. The goal of the development programme is to concentrate papermaking and
future investments at the Krapkowice mill.
- Metsäliitto Wood Products Industry launched statutory labour negotiations at
all of its operational sawmills in Finland. The negotiations were motivated by
production-related and economic reasons, such as the poor availability of
competitive wood raw material.
“The growth seen in the first half of the year indicates that Metsäliitto Group
has weathered the worst of the recession in good shape. The continued
improvement of our result is largely due to uncompromising work on structural
change, streamlining measures and a more favourable market situation. The
improved market conditions give reason to assess that the result will remain at
a good level also in the third quarter.”
Kari Jordan, President & CEO, Metsäliitto Group
Metsäliitto Group
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| Income statement | 2010 | 2009 | 2010 | 2009 | 2009 |
| (Continuing operations) | 1-6 | 1-6 | Q2 | Q2 | 1-12 |
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| Sales | 2 641 | 2 492 | 1 416 | 1 213 | 4 837 |
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| Other operating income | 47 | 84 | 16 | 43 | 353 |
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| Operating expenses | -2 304 | -2 569 | -1 231 | -1 227 | -4 858 |
--------------------------------------------------------------------------------
| Depreciation and impairment | -138 | -200 | -60 | -85 | -501 |
| losses | | | | | |
--------------------------------------------------------------------------------
| Operating result | 246 | -193 | 141 | -56 | -169 |
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| Share of results in | -13 | -10 | -7 | -8 | -16 |
| associates | | | | | |
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| Exchange gains and losses | 0 | -4 | 2 | -1 | 2 |
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| Other net financial items | -68 | -50 | -34 | -30 | -147 |
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| Result before income tax | 165 | -257 | 102 | -95 | -329 |
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| Income taxes | -63 | 25 | -40 | 7 | 10 |
--------------------------------------------------------------------------------
| Result from continuing | 102 | -232 | 62 | -88 | -318 |
| operations | | | | | |
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Metsäliitto Group
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| Profitability | 2010 | 2009 | 2010 | 2009 | 2009 |
| (Continuing operations) | 1-6 | 1-6 | Q2 | Q2 | 1-12 |
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| Operating result, EUR mill. | 246 | -193 | 141 | -56 | -169 |
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| - “ -, excluding non-recurring | 250 | -128 | 154 | -61 | -75 |
| items | | | | | |
--------------------------------------------------------------------------------
| - “ - % of sales | 9.5 | -5.1 | 10.9 | -5.0 | -1.6 |
--------------------------------------------------------------------------------
| Return on capital employed, % | 11.4 | -7.5 | 13.4 | -4.6 | -3.3 |
--------------------------------------------------------------------------------
| - ” -, excluding non-recurring | 12.4 | -4.9 | 16.2 | -5.1 | -1.4 |
| items | | | | | |
--------------------------------------------------------------------------------
| Return on equity, % | 13.7 | -28.7 | 16.3 | -23.2 | -20.0 |
--------------------------------------------------------------------------------
| - ” -, excluding non-recurring | 16.4 | -19.3 | 23.8 | -21.5 | -13.4 |
| items | | | | | |
--------------------------------------------------------------------------------
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| Financial position | 2010 | 2009 | 2010 | 2009 | 2009 |
| | 30.6. | 30.6 | 31.3 | 31.3. | 31.12. |
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| Equity ratio, % | 27.6 | 25.6 | 27.1 | 24.8 | 24.5 |
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| Net gearing ratio, % | 135 | 162 | 151 | 167 | 157 |
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| Interest-bearing net | 2 109 | 2 348 | 2 241 | 2 666 | 2 203 |
| liabilities, EUR mill. | | | | | |
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Business segments
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| Sales and | Wood | Wood | Pulp | Board | Tissue |
| Operating | Supply | Product | Industr | and | and |
| result | | s | y | Paper | Cooking |
| January- | | Industr | | Industry | Papers |
| June 2010 | | y | | | |
| (EUR mill.) | | | | | |
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| Sales | 670 | 448 | 656 | 1 278 | 456 |
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| Other operating income | 5 | 5 | 11 | 32 | 3 |
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| Operating expenses | -658 | -425 | -470 | -1 167 | -411 |
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| Depreciation & impairment | -2 | -18 | -28 | -59 | -24 |
| losses | | | | | |
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| Operating result | 15 | 10 | 169 | 84 | 24 |
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| Non-recurring items | - | 1 | -2 | -2 | 7 |
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| Operating result | 15 | 11 | 167 | 82 | 31 |
| excl. non-recurring items | | | | | |
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The figures are unaudited
METSÄLIITTO GROUP
INTERIM REPORT 1 JANUARY - 30 JUNE 2010
Sales and result
Metsäliitto Group's sales for January-June were EUR 2,641 million (1-6/2009: EUR
2,492 million). The corresponding figures for the previous period include, among
other things, Metsä-Botnia's business in Uruguay and the holding in Vapo Oy. In
the comparable period, the divestment of these operations had an impact of some
EUR 250 million on sales.
The operating result excluding non-recurring items was EUR 250 million (-128),
representing 9.5 per cent of sales (-5.1). Net non-recurring items totalled EUR
-4 million (-65) in the first half. In the first quarter, net non-recurring
items amounted to EUR 9 million (-70) and in the second quarter, to EUR -13
million (5).
M-real recognised a cost provision of approximately EUR 16 million related to
the reorganisation projects at the Gohrsmühle and Reflex mills in Germany. A EUR
8 million reversal of the impairment loss recognised in connection with the
shutdown of paper machine 2 at M-real's Kangas mill was made based on the agreed
sale of the machine. Metsä-Botnia recognised net non-recurring items totalling
some EUR 2 million. The items were related to a partial reversal of the
impairment loss of the Kaskinen mill based on an agreed asset deal and
specification of the cost provision. Metsä Tissue made write-downs and cost
provisions worth EUR 7 million to reorganise its Polish operations.
The second-quarter operating result excluding non-recurring items was EUR 154
million, representing 10.9 per cent of sales. The operating result improved both
from the previous quarter (Q1/10: EUR 96 million and 7.8%) and from the
corresponding period last year (Q2/09: EUR -61 million and -5.0%).
Metsäliitto Group's operating result including non-recurring items was EUR 246
million
(-193) in January-June. Finance income amounted to EUR 3 million (20)
and finance costs to EUR 70 million (70). The finance costs for the comparable
period include a profit of some EUR 31 million from the repurchase of a bond
maturing in December 2010 and around EUR 8 million of valuation gains on
interest rate hedges.
The share of results in associates amounted to EUR -13 million (-10). The figure
includes a EUR 16 million non-recurring impairment loss related to M-real's
holding in Myllykoski Paper Oy. The figure for the comparable period includes a
EUR 11 million non-recurring expense item related to the divestment of
Myllykoski Paper's Sunila shares.
Net exchange gains recognised in financial items were EUR 0 million (-4). In the
first half, the British pound strengthened on average 3 per cent and the Swedish
krona by 10 per cent year-over-year. The US dollar remained on average at the
level of the comparable period against the euro. Compared to the situation at
the end of 2009, the dollar had strengthened by 15 per cent, the pound by 8 per
cent and the krona by 7 per cent by the end of June.
The result before tax was EUR 165 million (-257), while taxes, including changes
in deferred tax liabilities, totalled EUR -63 million (25). The result for
continuing operations was EUR 102 million (-232), the result for discontinued
operations was EUR 0 million
(-13) and the result for the financial period was
EUR 102 million (-245).
The Group's return on capital employed for continuing operations was 11.4 per
cent
(-7.5), and the return on equity was 13.7 per cent (-28.7). Excluding
non-recurring items, the return on capital employed was 12.4 per cent (-4.9) and
return on equity was 16.4 per cent (-19.3).
Balance sheet and financing
Metsäliitto Group's total liquidity at the end of June was EUR 1.0 billion (31
December 2009: 1.4). Of this, EUR 0.4 billion (0.6) was in liquid assets and
investments, and EUR 0.6 billion (0.8) was in off-balance-sheet binding credit
facilities. In addition, the Group can satisfy short-term financial needs with
non-binding commercial paper schemes in Finland and abroad, as well as with
credit limits amounting to approximately EUR 0.5 billion.
The Group's equity ratio in June was 27.6 per cent and net gearing totalled 135
per cent (31 December 2009: 24.5% and 157%). Interest-bearing net liabilities
stood at EUR 2,109 million (31 December 2009: 2,203). The equity ratio of the
parent company, Metsäliitto Cooperative, was 57.4 per cent at the end of June
and net gearing was 49 per cent (31 December 2009: 57.2% and 50%).
The change in the fair value of investments available for sale was approximately
EUR 24 million, mainly based on the increase in the fair value of the Pohjolan
Voima shares.
Metsäliitto Cooperative's members' capital grew by EUR 56.9 million in
January-June. The actual members' capital grew by EUR 4.6 million, the
additional members' capital A by EUR 26.1 million and the additional members'
capital B by EUR 13.3 million. New additional members' capital C had been
subscribed for with EUR 12.9 million. At the end of June, Metsäliitto
Cooperative had 126,074 members (31 December 2009: 127,158).
At its meeting on 5 May 2010, Metsäliitto Cooperative's Representative Council
decided to pay an interest of 5.5 per cent (5.5) on the subscribed members'
capital, 5.0 per cent (5.0) on the additional A series capital and 4.5 per cent
(4.5) on the additional B series capital for 2009. The interest on member's
capital for 2009 totalled EUR 35.6 million (37.4).
After the period, EUR 35.6 million of the additional members' capital fell due
for refund on 1 July 2010.
At the end of June, Metsäliitto drew pension loans (TyEL) worth EUR 65 million
and M-real worth EUR 135 million.
At the end of June, M-real announced it would exercise its right to redeem early
the remaining part of its bond maturing on 15 December 2010. The redemption took
place on 30 July 2010, and the nominal value of the loan was some EUR 90
million.
Capital programme
In January, Metsäliitto announced that it will launch a capital programme with
the purpose of strengthening its equity to correspond to the company's current
and future business structure. The assets to be accrued will be mainly used for
financing new business operations.
In the context of the programme, Metsäliitto issued a new additional members'
capital C, which offers owners the opportunity to gain additional profit as cash
payments, in addition to getting interest on members' capital. The amount of
additional profit depends on the price development of M-real Corporation's B
share on the Helsinki Stock Exchange.
At the beginning of May, Metsäliitto Corporation decided to extend the
subscription period for members' capital C until 31 December 2010 or until the
additional C shares (30 million) have been fully subscribed. The additional
members' capital C was issued on 15 February 2010, and the subscription period
had originally been set to end on 14 May 2010.
Personnel
The Group had an average of 13,098 employees (15,308) in January-June. At the
end of June, the head count was 13,405 (31 December 2009: 13,592). The parent
company, Metsäliitto Cooperative, had 2,393 employees at the end of June (31
December 2009: 2,248).
Investments
Metsäliitto Group's gross capital expenditure totalled EUR 43 million (74).
The modernisation of Metsä Tissue's paper machine 10 at the Mänttä mill was
completed ahead of schedule, and the first products were run in late April. The
investment, worth some EUR 6 million, will improve product quality, reduce water
consumption and decrease the need for energy.
In February, Metsä-Botnia's Board of Directors decided on major renovation
investments at the Kemi mill. The mill area will get brand new causticisation
and water stations. The total value of the investment is some EUR 40 million.
Construction work will begin in October 2010, and the new stations will come
online at the end of 2011.
Business areas
Wood Supply
Wood Supply sales in January-June were EUR 670 million (577), and the operating
result amounted to EUR 15 million (9). The operating result does not include
non-recurring items. Wood Supply Finland accounted for EUR 463 million (441) of
the sales and EUR 8 million (6) of the operating result.
The second-quarter sales were EUR 337 million (Q2/09: 251), and the operating
result was EUR 8 million (Q2/09: 4).
Wood sales, which were sluggish in the early part of the year, picked up in May.
Nevertheless, purchase volumes did not rise to a level sufficient for industry.
Metsäliitto's purchase volume in the second quarter fell slightly short of the
period's target. Harvesting conditions were good in the early part of the year,
and stands marked for felling were harvested as planned.
The wood energy business was expanded in the early part of the year, and new
delivery contracts boosted Metsäliitto's market position. Metsäliitto supplies
energy wood to some 60 plants.
Wood supply was a central theme at member events held around Finland in
connection with the capital programme. The demand for forestry services
continued to rise, and the resources of Metsämannut Oy, which provides the
services, were increased. Forestry work was completed according to plans.
In Russia and the Baltic countries, the demand for wood exceeded the supply. In
Russia, winter logging sites did not offer the normal volumes of wood. In the
Baltic countries, most of the wood for sale came from state-owned forests.
Deliveries to Finland and Sweden increased considerably once the tough ice
conditions this spring eased. The demand for wood also exceeded the supply in
Sweden.
Metsäliitto Wood Supply's entire delivery volume to production plants in the
first half of the year was 15.3 million cubic metres (12.7).
Wood Products
The sales of Metsäliitto Wood Products Industry were EUR 448 million (425) in
January-June, and the operating result totalled EUR 11 million (-35).
Non-recurring items recognised in the first half of the year amounted to EUR -1
million net (0). The positive performance development resulted from the increase
in sawn timber price, which has compensated for the rise in log costs. Supply
and demand were in balance in the sawn timber market.
The second-quarter sales were EUR 256 million (Q2/09: 224), and the operating
result was EUR 10 million (Q2/09: -10). The construction market picked up
considerably in the second quarter, following the cold and snowy winter in
Europe. However, construction volumes remained quite low in the main market
areas, with the exception of Finland.
The demand for industrial processed products improved slightly in the second
quarter, but overall demand was still at a relatively low level. The performance
improvement seen in processed products and engineered wood products was partly
weakened by the rapid increase in raw material prices, which could not be
transferred in full to the prices of finished products.
The garden range was expanded by launching new products on the domestic and
international markets. A new kind of concrete shuttering panel was launched for
industrial customers.
After the reporting period, an agreement was signed on the divestment of the
machinery and equipment of the Soinlahti sawmill to Anaika Wood Ltd Oy and of
the buildings and land area belonging to the sawmill site to Iisalmen
Teollisuuskylä Oy.
Pulp
Metsä-Botnia's sales in the first half increased by 66 per cent year-over-year,
amounting to EUR 656 million (395). The operating result excluding non-recurring
items totalled EUR 166 million (-105).
Sales increased by 28 percent from the first to the second quarter, totalling
EUR 368 million (Q1/10: 288). The operating result excluding non-recurring items
nearly doubled, amounting to EUR 109 million (Q1/10: 57).
The considerable improvement in sales and operating result came about from the
market picking up and the pulp price rising steeply. The stocks of both
producers and customers are still very low, and the demand for pulp has remained
good.
Pulp sale volumes were up 15 per cent year-over-year. Foreign
currency-denominated market prices for softwood pulp were, on average, 52 per
cent higher in the first half of the year compared with the corresponding period
last year. The average prices of hardwood pulp increased by 62 per cent. The
price of softwood pulp in Europe was USD 830 at the beginning of the year and
USD 980 at the end of the period. The corresponding figures for hardwood pulp
were USD 730 and USD 920.
Under a deal signed on 28 June 2010, Metsä-Botnia sold some of the old machinery
of the Kaskinen pulp mill, which was shut down in March 2009, to an Asian buyer.
The dismantling of the machinery included in the deal will begin in early
August.
Pulp Industry (Metsä-Botnia) has been consolidated in the financial statements
of Metsäliitto Group as a subsidiary from 8 December 2009 onwards. Prior to
that, 53 per cent of Metsä-Botnia had been consolidated using proportionate
consolidation.
Metsä-Botnia has treated its business operations in Uruguay as discontinued
operations in accordance with the IFRS 5 standard. For this reason, the Uruguay
operations are not included in the sales and operating profit figures presented
above for 2009.
Board and Paper
The sales of Board and Paper totalled EUR 1,278 million (1,208), and the
operating result excluding non-recurring items was EUR 82 million (-135). The
operating profit was boosted by higher delivery volumes resulting from the
recovery in general demand, as well as by higher pulp prices and the cost
savings carried out.
Non-recurring items in the operating profit totalled EUR 2 million net (-56) in
January-June. A non-recurring income item of EUR 10 million, resulting from the
release of IT cost provisions made at the end of 2008, was recognised in the
first quarter. In the second quarter, M-real recognised a cost provision of
approximately EUR 16 million related to the reorganisation projects at the
Gohrsmühle and Reflex mills in Germany. A EUR 8 million reversal of the
impairment loss recognised in connection with the shutdown of paper machine 2 at
M-real's Kangas mill was made based on the agreed sale of the machine.
The operating result including non-recurring items totalled EUR 84 million
(-191). Net interest and other financial expenses amounted to EUR 33 million
(10). The figure for the comparable period includes a profit of some EUR 31
million from the repurchase of a bond maturing in December 2010 and around EUR 9
million of valuation gains on interest rate hedges.
The share of results in associates amounted to EUR -20 million (-13). The figure
includes a EUR 16 million non-recurring impairment loss related to M-real's
holding in Myllykoski Paper Oy. The figure for the comparable period includes a
EUR 11 million non-recurring expense item related to the divestment of
Myllykoski Paper's Sunila shares.
Exchange differences from accounts receivable, trade payables, financial items
and the valuation of currency hedging were EUR -6 million (2).
The result before tax was EUR 25 million (-212), earnings per share were EUR
0.03
(-0.61) and return on capital employed was 6.1 per cent (-11.5). Excluding
non-recurring items, the result before tax was EUR 39 million (-145), earnings
per share were EUR 0.08 (-0.42) and the return on capital employed was 7.3 per
cent (-7.3).
At the end of June, M-real's equity ratio was 31.1 per cent and net gearing
amounted to 89 per cent (31 December 2009: 29.6% and 84%, respectively). Some of
M-real's loan agreements set a 120 per cent limit on the company's gearing ratio
and a 30 per cent limit on the equity ratio. At the end of June, gearing
calculated in the manner defined in the borrowing agreements was approximately
67 per cent and the equity ratio about 37 per cent.
On 25 January 2010 M-real decided to exercise its right to redeem early part of
its bond maturing on 15 December 2010. The outstanding nominal amount before the
redemption was approximately EUR 340 million. The total par value of redemption
was EUR 250 million. In June, M-real announced it would redeem the remaining
part of the bond. The redemption took place on 30 July 2010, and the nominal
value of the loan was some EUR 90 million.
Tissue and Cooking Papers
The first-half sales of Metsä Tissue, producer of tissue and cooking papers,
totalled EUR 456 million (435). Sales were up by some five per cent
year-over-year thanks to bigger sale volumes (3%) and favourable exchange
differences (2%). The sale of Metsä Tissue's own brands increased by 12 per cent
year-over-year.
The operating profit excluding non-recurring items was EUR 31 million (41). It
was weakened by the steeply rising prices of raw materials, pulp and -
especially in the second quarter - recycled paper. The operating result
including non-recurring items was EUR 24 million (41).
A development plan for operations in Poland was published in May. The plan aims
to strengthen the company's position on the Polish market, use investments to
increase production capacity, as well as to further enhance the product, brand
and service offering. The objective is to centralise the Polish paper production
at the company's Krapkowice mill and to shut down papermaking at the
Konstancin-Jeziorna mill by the end of 2012. A total of EUR 7 million was
recognised as write-downs and cost provisions related to the Polish development
project in the second quarter.
In June, the company announced a development programme related to the Baking &
Cooking business. In connection with it, Metsä Tissue signed a letter of intent
on the purchase of a speciality paper machine (PM5), the related equipment and
fixed assets from M-real's Reflex mill in Germany.
Metsä Tissue also announced the launch of statutory labour negotiations
concerning the personnel at the Mänttä mill and Baking & Cooking employees
working in Finland. The goal is to enhance operations and ensure profitability.
The modernisation of paper machine 10 at the Mänttä mill was completed in April,
ahead of schedule. The investment has improved energy efficiency and raised the
quality of Lambi, Serla and Katrin products.
This spring, Metsä Tissue introduced two napkin machines at the Pauliström mill
in Sweden. These production lines and the ones in Germany jointly generate
synergies and improve the reliability of the company's deliveries.
Risks and uncertainties
Since the estimates and statements in this interim report are based on current
plans and projections, they involve risks and uncertainties that may cause
prospects to materially differ from those expressed in such statements. The
risks related to the Group's business have been explained more extensively in
Metsäliitto Group's annual report for 2009.
Events after the period
In December 2009, M-real initiated cooperation procedures concerning a possible
shutdown of its Alizay pulp mill in France. In July, M-real announced the
permanent closure of the mill because it had not found the required economic
prerequisites for continuing operations. As a result of the completed
cooperation procedures, M-real will recognise a non-recurring additional cost
provision of some EUR 4 million in its third-quarter operating profit. For the
possible closure of its mill, M-real already recognised a cost provision of some
EUR 13 million in December 2009.
In July, M-real purchased the former Kangas paper mill facilities and land area
from Sappi Limited for a price of EUR 13 million. The deal was part of an
agreement with which M-real and Sappi finally settled the issues still open
after the divestment of
M-real's Graphic Papers business area in 2008. M-real
plans to develop the Kangas facilities, located near the centre of Jyväskylä,
jointly with the planning authorities and any other partners.
In July, Metsäliitto's Wood Products Industry signed an agreement on the
divestment of the machinery and equipment of the Soinlahti sawmill, located in
Iisalmi, Finland, to Anaika Wood Ltd Oy. The agreement also included a long-term
wood supply agreement between Metsäliitto Wood Supply and Anaika Wood. The
buildings and land area belonging to the sawmill site were sold to Iisalmen
Teollisuuskylä Oy. Metsäliitto shut down the sawmill at the beginning of 2009.
Near-term outlook
The demand for all timber grades will remain good. Member services and the wood
energy business will continue to be developed determinedly.
The operating result of Wood Products Industry is expected to weaken slightly in
the third quarter due to smaller production volumes during the holiday season.
The availability of wood raw material and the price development in relation to
the prices of finished products will also have an impact on the result. The
demand for end products is not expected to change extensively.
The market situation for pulp is expected to remain good in the third quarter,
although the market will see new capacity, especially in hardwood pulp.
Metsä-Botnia's profitability is expected to remain strong.
The demand for board is expected to remain good also in the third quarter. The
prices of folding boxboard and liner were raised in the first half of the year.
The efforts to raise prices will continue.
The demand for uncoated fine paper is expected to continue to be strong. In
order to compensate for the higher fibre costs, prices were raised in the first
half of the year. Price increase measures will continue, and prices are expected
to be somewhat higher at the end of the third quarter compared to the end of the
second quarter.
In 2010, M-real's third-quarter operating result excluding non-recurring items
is expected to improve from the second quarter.
The demand for tissue and cooking papers is expected to remain steady. The high
pulp and recycled paper prices will continue to cause cost pressure, which will
be compensated for with increases in sale prices.
The market situation is expected to remain satisfactory in the following
quarter. Metsäliitto Group estimates the third-quarter operating result
excluding non-recurring items to be roughly at the same level as in the second
quarter.
Espoo, 5 August 2010
Metsäliitto Group
Board of Directors
Further information:
Hannu Anttila, Executive Vice President, Strategy, Metsäliitto Group, tel. +358
10 465 5111
Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541
Unaudited
METSÄLIITTO GROUP
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| Condensed consolidated | 2010 | 2009 | Chang | 2010 | 2009 | 2009 |
| statement | 1-6 | 1-6 | e | Q2 | Q2 | 1-12 |
| of comprehensive income, | | | | | | |
| EUR mill. | | | | | | |
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| Continuing operations | | | | | | |
--------------------------------------------------------------------------------
| Sales | 2 641 | 2 492 | 149 | 1 416 | 1 213 | 4 837 |
--------------------------------------------------------------------------------
| Other operating income | 47 | 84 | -37 | 16 | 43 | 353 |
--------------------------------------------------------------------------------
| Operating expenses | -2 | -2 | 265 | -1 | -1 227 | -4 858 |
| | 304 | 569 | | 231 | | |
--------------------------------------------------------------------------------
| Depreciation and | -138 | -200 | 62 | -60 | -85 | -501 |
| impairment losses | | | | | | |
--------------------------------------------------------------------------------
| Operating result | 246 | -193 | 439 | 141 | -56 | -169 |
--------------------------------------------------------------------------------
| Share of results in | -13 | -10 | -3 | -7 | -8 | -16 |
| associated companies | | | | | | |
--------------------------------------------------------------------------------
| Exchange gains and losses | 0 | -4 | 4 | 2 | -1 | 2 |
--------------------------------------------------------------------------------
| Other net financial items | -68 | -50 | -18 | -34 | -30 | -147 |
--------------------------------------------------------------------------------
| Result before income tax | 165 | -257 | 422 | 102 | -95 | -329 |
--------------------------------------------------------------------------------
| Income taxes | -63 | 25 | -88 | -40 | 7 | 10 |
--------------------------------------------------------------------------------
| Result for the period | 102 | -232 | 334 | 62 | -88 | -318 |
| from continuing operations | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations | | | | | | |
--------------------------------------------------------------------------------
| Result from discontinued | 0 | -13 | 13 | 0 | -3 | -23 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Result for the period | 102 | -245 | 347 | 62 | -91 | -342 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income | | | | | | |
--------------------------------------------------------------------------------
| Cash flow hedges | -1 | 15 | -15 | -2 | 18 | 35 |
--------------------------------------------------------------------------------
| Available for sale | 24 | -128 | 152 | 6 | -62 | -103 |
| financial assets | | | | | | |
--------------------------------------------------------------------------------
| Currency translation | 18 | -2 | 21 | 6 | -12 | -15 |
| differences | | | | | | |
--------------------------------------------------------------------------------
| Other items | 0 | 0 | 0 | -3 | -2 | 0 |
--------------------------------------------------------------------------------
| Income tax relating to | -1 | 31 | -32 | 1 | 10 | 23 |
| components | | | | | | |
| of other comprehensive | | | | | | |
| income | | | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 40 | -85 | 125 | 8 | -48 | -60 |
| income, | | | | | | |
| net of tax | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income | 142 | -329 | 472 | 70 | -139 | -402 |
| for the period | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result attributable to: | | | | | | |
--------------------------------------------------------------------------------
| Members of parent company | 79 | -119 | 198 | 57 | -35 | -116 |
--------------------------------------------------------------------------------
| Non-controlling interests | 23 | -125 | 149 | 5 | -56 | -226 |
--------------------------------------------------------------------------------
| | 102 | -245 | 347 | 62 | -91 | -342 |
--------------------------------------------------------------------------------
| Total comprehensive income | | | | | | |
| attributable to: | | | | | | |
--------------------------------------------------------------------------------
| Members of parent company | 103 | -156 | 259 | 61 | -58 | -150 |
--------------------------------------------------------------------------------
| Non-controlling interests | 39 | -173 | 213 | 9 | -81 | -252 |
--------------------------------------------------------------------------------
| | 142 | -329 | 472 | 70 | -139 | -402 |
--------------------------------------------------------------------------------
Unaudited
--------------------------------------------------------------------------------
| Condensed consolidated balance sheet | 2010 | 2009 | 2009 |
| | 30.6. | 30.6. | 31.12. |
--------------------------------------------------------------------------------
| ASSETS | | | |
--------------------------------------------------------------------------------
| Non-current | | | |
--------------------------------------------------------------------------------
| Goodwill | 502 | 165 | 493 |
--------------------------------------------------------------------------------
| Other intangible assets | 250 | 77 | 245 |
--------------------------------------------------------------------------------
| Tangible assets | 2 344 | 2 141 | 2 428 |
--------------------------------------------------------------------------------
| Biological assets | 8 | 5 | 7 |
--------------------------------------------------------------------------------
| Investments in associated companies | 84 | 102 | 98 |
--------------------------------------------------------------------------------
| Available for sale investments | 370 | 330 | 356 |
--------------------------------------------------------------------------------
| Non-current financial assets | 13 | 228 | 12 |
--------------------------------------------------------------------------------
| Deferred tax receivables | 64 | 71 | 58 |
--------------------------------------------------------------------------------
| | 3 635 | 3 120 | 3 697 |
--------------------------------------------------------------------------------
| Current | | | |
--------------------------------------------------------------------------------
| Inventories | 708 | 668 | 669 |
--------------------------------------------------------------------------------
| Accounts receivables and other receivables | 923 | 791 | 797 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 401 | 350 | 558 |
--------------------------------------------------------------------------------
| | 2 032 | 1 809 | 2 024 |
--------------------------------------------------------------------------------
| Assets classified as held for sale | 21 | 731 | 9 |
--------------------------------------------------------------------------------
| Total assets | 5 688 | 5 660 | 5 730 |
--------------------------------------------------------------------------------
| MEMBERS' FUNDS AND LIABILITIES | | | |
--------------------------------------------------------------------------------
| Members' funds | | | |
--------------------------------------------------------------------------------
| Members' funds | 1 056 | 937 | 927 |
--------------------------------------------------------------------------------
| Non-controlling interests | 507 | 510 | 471 |
--------------------------------------------------------------------------------
| | 1 563 | 1 447 | 1 399 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | |
--------------------------------------------------------------------------------
| Deferred tax liabilities | 395 | 249 | 382 |
--------------------------------------------------------------------------------
| Post-employment benefit obligations | 115 | 124 | 122 |
--------------------------------------------------------------------------------
| Provisions | 82 | 54 | 76 |
--------------------------------------------------------------------------------
| Borrowings | 1 563 | 2 393 | 1 976 |
--------------------------------------------------------------------------------
| Other liabilities | 36 | 37 | 134 |
--------------------------------------------------------------------------------
| | 2 191 | 2 857 | 2 689 |
--------------------------------------------------------------------------------
| Current liabilities | | | |
--------------------------------------------------------------------------------
| Provisions | 27 | 37 | 52 |
--------------------------------------------------------------------------------
| Current borrowings | 964 | 378 | 798 |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities | 943 | 700 | 787 |
--------------------------------------------------------------------------------
| | 1 934 | 1 115 | 1 637 |
--------------------------------------------------------------------------------
| Liabilities classified as held for sale | - | 240 | 6 |
--------------------------------------------------------------------------------
| Total liabilities | 4 125 | 4 213 | 4 331 |
--------------------------------------------------------------------------------
| Total members' funds and liabilities | 5 688 | 5 660 | 5 730 |
--------------------------------------------------------------------------------
Non-current portion of derivative financial instruments have been transferred to
non-current financial assets from accounts receivables and other receivables
(QII/09: EUR 0 mill. and QIV/09: EUR 2 mill.). Non-current portion of derivative
financial instruments have been transferred to other liabilities from accounts
payable and other liabilities (QII/09: EUR 19 mill. and QIV/09: EUR 19 mill.).
Unaudited Equity attributable to members of parent company
--------------------------------------------------------------------------------
| Change | Members | Share | Tran | Fair | Retai- | Total | Non- | Total |
| in | ' | premiu | sla | value | ned | | contro | |
| members' | capital | m | tion | and | ear ni | | lling | |
| funds | | accoun | diff | other | ngs | | intere | |
| EUR | | t | er | reser | | | sts | |
| million | | | ence | ves | | | | |
| | | | s | | | | | |
--------------------------------------------------------------------------------
| Members' | 585 | 30 | -5 | 165 | 329 | 1 104 | 682 | 1 786 |
| funds | | | | | | | | |
| 1.1.2009 | | | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | -119 | -119 | -125 | -245 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| compre- | | | | | | | | |
| hensive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | | 6 | | 6 | 8 | 15 |
| flow | | | | | | | | |
| hedges | | | | | | | | |
--------------------------------------------------------------------------------
| Availabl | | | | -54 | | -54 | -74 | -129 |
| e | | | | | | | | |
| for sale | | | | | | | | |
| financia | | | | | | | | |
| l | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
| Currency | | | -3 | | | -3 | 1 | -2 |
| translat | | | | | | | | |
| ion | | | | | | | | |
| differen | | | | | | | | |
| ces | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Income | | | 2 | 13 | | 14 | 17 | 31 |
| tax | | | | | | | | |
| relating | | | | | | | | |
| to | | | | | | | | |
| componen | | | | | | | | |
| ts | | | | | | | | |
| of other | | | | | | | | |
| compre- | | | | | | | | |
| hensive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transact | | | | | | | | |
| ions | | | | | | | | |
| with | | | | | | | | |
| owners | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -35 | -35 | -1 | -37 |
| s | | | | | | | | |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Change | 24 | | | | | 24 | | 24 |
| in | | | | | | | | |
| members' | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Transfer | | | | | | | | |
| from | | | | | | | | |
| unrestri | | | | | | | | |
| cted | | | | | | | | |
| to | | | | | | | | |
| restrict | | | | | | | | |
| ed | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Business | | | 2 | -2 | | 0 | 3 | 3 |
| arrange- | | | | | | | | |
| ments | | | | | | | | |
--------------------------------------------------------------------------------
| Members' | 609 | 30 | -4 | 128 | 174 | 937 | 510 | 1 447 |
| funds | | | | | | | | |
| 30.6.200 | | | | | | | | |
| 9 | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Members' | 484 | 30 | 9 | 221 | 184 | 927 | 471 | 1 399 |
| funds | | | | | | | | |
| 1.1.2010 | | | | | | | | |
--------------------------------------------------------------------------------
| Result | | | | | 79 | 79 | 23 | 102 |
| for | | | | | | | | |
| the | | | | | | | | |
| period | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| compre- | | | | | | | | |
| hensive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
| Cash | | | | 4 | | 4 | -4 | -1 |
| flow | | | | | | | | |
| hedges | | | | | | | | |
--------------------------------------------------------------------------------
| Availabl | | | | 11 | | 11 | 14 | 24 |
| e | | | | | | | | |
| for sale | | | | | | | | |
| financia | | | | | | | | |
| l | | | | | | | | |
| assets | | | | | | | | |
--------------------------------------------------------------------------------
| Currency | | | 12 | | | 12 | 6 | 18 |
| translat | | | | | | | | |
| ion | | | | | | | | |
| differen | | | | | | | | |
| ces | | | | | | | | |
--------------------------------------------------------------------------------
| Other | | | | | | | | |
| items | | | | | | | | |
--------------------------------------------------------------------------------
| Income | | | 2 | -4 | | -1 | | -1 |
| tax | | | | | | | | |
| relating | | | | | | | | |
| to | | | | | | | | |
| componen | | | | | | | | |
| ts | | | | | | | | |
| of other | | | | | | | | |
| compre- | | | | | | | | |
| hensive | | | | | | | | |
| income | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transact | | | | | | | | |
| ions | | | | | | | | |
| with | | | | | | | | |
| owners | | | | | | | | |
--------------------------------------------------------------------------------
| Dividend | | | | | -32 | -32 | -4 | -35 |
| s | | | | | | | | |
| paid | | | | | | | | |
--------------------------------------------------------------------------------
| Change | 57 | | | | | 57 | | 57 |
| in | | | | | | | | |
| members' | | | | | | | | |
| capital | | | | | | | | |
--------------------------------------------------------------------------------
| Transfer | | | | 9 | -9 | 0 | | 0 |
| from | | | | | | | | |
| unrestri | | | | | | | | |
| cted | | | | | | | | |
| to | | | | | | | | |
| restrict | | | | | | | | |
| ed | | | | | | | | |
| equity | | | | | | | | |
--------------------------------------------------------------------------------
| Business | | | | | | | | |
| arrange- | | | | | | | | |
| ments | | | | | | | | |
--------------------------------------------------------------------------------
| Members' | 541 | 30 | 23 | 240 | 222 | 1 056 | 507 | 1 563 |
| funds | | | | | | | | |
| 30.6.201 | | | | | | | | |
| 0 | | | | | | | | |
--------------------------------------------------------------------------------
Unaudited
--------------------------------------------------------------------------------
| Condensed consolidated cash flow statement | 2010 | 2009 | 2009 |
| | 1-6 | 1-6 | 1-12 |
--------------------------------------------------------------------------------
| Result for the period | 102 | -245 | -342 |
--------------------------------------------------------------------------------
| Total adjustments | 231 | 209 | 469 |
--------------------------------------------------------------------------------
| Change in working capital | -154 | 103 | 231 |
--------------------------------------------------------------------------------
| Cash flow arising from operations | 179 | 67 | 359 |
--------------------------------------------------------------------------------
| Net financial items | -81 | -8 | -84 |
--------------------------------------------------------------------------------
| Income taxes paid | -16 | 6 | 0 |
--------------------------------------------------------------------------------
| Net cash flow arising from operating activities | 83 | 65 | 275 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisitions | -2 | -4 | -496 |
--------------------------------------------------------------------------------
| Investments in tangible and | -42 | -70 | -152 |
| intangible assets | | | |
--------------------------------------------------------------------------------
| Divestments of assets and other | 22 | 155 | 940 |
--------------------------------------------------------------------------------
| Net cash flow arising from investing activities | -22 | 80 | 291 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in members' funds | 57 | 24 | -57 |
--------------------------------------------------------------------------------
| Change in long-term loans | -238 | -376 | -530 |
| and other financial items | | | |
--------------------------------------------------------------------------------
| Dividends paid | -40 | -40 | -40 |
--------------------------------------------------------------------------------
| Net cash flow arising from financing activities | -222 | -391 | -626 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Changes in cash and cash equivalents | -160 | -246 | -60 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of period | 558 | 619 | 619 |
--------------------------------------------------------------------------------
| Translation difference | 3 | 1 | -1 |
--------------------------------------------------------------------------------
| Changes in cash and cash equivalents | -160 | -246 | -60 |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 0 | -25 | -1 |
| in assets classified as held for sale | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of period | 401 | 350 | 558 |
--------------------------------------------------------------------------------
Unaudited
BUSINESS SEGMENTS
--------------------------------------------------------------------------------
| Wood Supply | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 670 | 577 | 337 | 251 | 1 101 |
--------------------------------------------------------------------------------
| EBITDA | 17 | 10 | 9 | 4 | -5 |
--------------------------------------------------------------------------------
| - ” -, excl. | 17 | 10 | 9 | 4 | 16 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -2 | -2 | -1 | -1 | -4 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | 15 | 9 | 8 | 4 | -9 |
--------------------------------------------------------------------------------
| - ” -, excl. | 15 | 9 | 8 | 4 | 12 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 0 | 1 | 0 | 0 | 2 |
--------------------------------------------------------------------------------
| Personnel at end of | 1 047 | 990 | 1 047 | 990 | 945 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Wood Products Industry | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 448 | 425 | 256 | 224 | 806 |
--------------------------------------------------------------------------------
| EBITDA | 28 | -15 | 20 | 0 | -2 |
--------------------------------------------------------------------------------
| - ” -, excl. | 29 | -15 | 20 | 0 | -2 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -18 | -20 | -9 | -10 | -45 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | 10 | -35 | 11 | -10 | -47 |
--------------------------------------------------------------------------------
| - ” -, excl. | 11 | -35 | 11 | -10 | -41 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 7 | 4 | 3 | 3 | 10 |
--------------------------------------------------------------------------------
| Personnel at end of | 2 773 | 3 206 | 2 773 | 3 206 | 3 110 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Pulp Industry | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 656 | 585 | 368 | 282 | 1 195 |
--------------------------------------------------------------------------------
| EBITDA | 197 | -38 | 119 | -9 | 366 |
--------------------------------------------------------------------------------
| - ” -, excl. | 206 | -21 | 128 | -9 | 71 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -28 | -126 | -7 | -33 | -173 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | 169 | -165 | 112 | -42 | 193 |
--------------------------------------------------------------------------------
| - ” -, excl. | 167 | -90 | 110 | -42 | -43 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 4 | 20 | 4 | 10 | 53 |
--------------------------------------------------------------------------------
| Personnel at end of | 956 | 1 753 | 956 | 1 753 | 1 106 |
| period | | | | | |
--------------------------------------------------------------------------------
Pulp Industry (Metsä-Botnia) has been consolidated as a subsidiary from 8
December 2009 onwards. Before that, 53% of Metsä-Botnia has been consolidated
using the proportional consolidation method (M-real 30% and Metsäliitto 23%).
--------------------------------------------------------------------------------
| Board and Paper Industry | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 1 278 | 1 208 | 676 | 585 | 2 432 |
--------------------------------------------------------------------------------
| EBITDA | 143 | -71 | 61 | -23 | 88 |
--------------------------------------------------------------------------------
| - ” -, excl. | 149 | -33 | 77 | -20 | 44 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -59 | -120 | -26 | -51 | -356 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | 84 | -191 | 35 | -73 | -267 |
--------------------------------------------------------------------------------
| - ” -, excl. | 82 | -135 | 43 | -70 | -150 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 17 | 32 | 10 | 16 | 73 |
--------------------------------------------------------------------------------
| Personnel at end of | 4 946 | 6 080 | 4 946 | 6 080 | 4 903 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Tissue and Cooking Papers | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 456 | 435 | 231 | 217 | 890 |
--------------------------------------------------------------------------------
| EBITDA | 49 | 62 | 19 | 33 | 135 |
--------------------------------------------------------------------------------
| - ” -, excl. | 52 | 62 | 23 | 33 | 135 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -24 | -21 | -14 | -10 | -42 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | 24 | 41 | 5 | 22 | 93 |
--------------------------------------------------------------------------------
| - ” -, excl. | 31 | 41 | 12 | 22 | 93 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 11 | 11 | 7 | 7 | 35 |
--------------------------------------------------------------------------------
| Personnel at end of | 3 254 | 3 274 | 3 254 | 3 274 | 3 150 |
| period | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other operations | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 2 | 164 | 2 | 72 | 170 |
--------------------------------------------------------------------------------
| EBITDA | -4 | 47 | -2 | 32 | 69 |
--------------------------------------------------------------------------------
| - ” -, excl. | -4 | 20 | -2 | 5 | 21 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -1 | -10 | 0 | -5 | -11 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | -5 | 37 | -2 | 27 | 59 |
--------------------------------------------------------------------------------
| - ” -, excl. | -5 | 10 | -2 | 0 | 11 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 2 | 22 | 2 | 11 | 516 |
--------------------------------------------------------------------------------
| Personnel at end of | 428 | 425 | 428 | 425 | 378 |
| period | | | | | |
--------------------------------------------------------------------------------
Other operations include Vapo Group (49.9%) until June 24, 2009 and
Metsäliitto's service and holding functions.
--------------------------------------------------------------------------------
| Internal sales | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
| and eliminations | | | | | |
--------------------------------------------------------------------------------
| Sales | -869 | -903 | -454 | -417 | -1 758 |
--------------------------------------------------------------------------------
| EBITDA | -45 | 12 | -26 | -10 | -319 |
--------------------------------------------------------------------------------
| - ” -, excl. | -45 | 18 | -26 | 10 | -40 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -6 | 98 | -3 | 26 | 129 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | -52 | 110 | -29 | 16 | -190 |
--------------------------------------------------------------------------------
| - ” -, excl. | -51 | 71 | -29 | 35 | 45 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Metsäliitto Group | 1-6/10 | 1-6/09 | Q2/10 | Q2/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales | 2 641 | 2 492 | 1 416 | 1 213 | 4 837 |
--------------------------------------------------------------------------------
| EBITDA | 384 | 7 | 201 | 29 | 332 |
--------------------------------------------------------------------------------
| - ” -, excl. | 403 | 41 | 229 | 24 | 246 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Depreciation and | -138 | -200 | -60 | -85 | -501 |
| impairment | | | | | |
--------------------------------------------------------------------------------
| Operating result | 246 | -193 | 141 | -56 | -169 |
--------------------------------------------------------------------------------
| - ” -, excl. | 250 | -128 | 154 | -61 | -75 |
| non-recurring items | | | | | |
--------------------------------------------------------------------------------
| Capital expenditure | 43 | 74 | 27 | 38 | 648 |
--------------------------------------------------------------------------------
| Personnel at end of | 13 405 | 14 378 | 13 405 | 14 378 | 13 592 |
| period | | | | | |
--------------------------------------------------------------------------------
EBITDA = Operating result before depreciation and impairment losses.
Unaudited
--------------------------------------------------------------------------------
| Quarterly data | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
| | QII | QI | QIV | QIII | QII | QI |
--------------------------------------------------------------------------------
| Sales | | | | | | |
--------------------------------------------------------------------------------
| Wood Supply | 337 | 333 | 292 | 232 | 251 | 327 |
--------------------------------------------------------------------------------
| Wood Products Industry | 256 | 192 | 193 | 188 | 224 | 202 |
--------------------------------------------------------------------------------
| Pulp Industry | 368 | 288 | 297 | 313 | 282 | 303 |
--------------------------------------------------------------------------------
| Board and Paper Industry | 676 | 602 | 606 | 618 | 585 | 623 |
--------------------------------------------------------------------------------
| Tissue and Cooking Papers | 231 | 225 | 229 | 226 | 217 | 218 |
--------------------------------------------------------------------------------
| Other operations | 2 | 0 | 4 | 3 | 72 | 92 |
--------------------------------------------------------------------------------
| Internal sales and | -454 | -415 | -431 | -425 | -418 | -487 |
| eliminations | | | | | | |
--------------------------------------------------------------------------------
| Sales total | 1 416 | 1 224 | 1 190 | 1 155 | 1 213 | 1 278 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result | | | | | | |
--------------------------------------------------------------------------------
| Wood Supply | 8 | 7 | -17 | -1 | 4 | 5 |
--------------------------------------------------------------------------------
| Wood Products Industry | 11 | -2 | -9 | -3 | -10 | -25 |
--------------------------------------------------------------------------------
| Pulp Industry | 112 | 57 | 355 | 2 | -42 | -122 |
--------------------------------------------------------------------------------
| Board and Paper Industry | 35 | 49 | -52 | -24 | -73 | -117 |
--------------------------------------------------------------------------------
| Tissue and Cooking Papers | 5 | 19 | 21 | 31 | 22 | 19 |
--------------------------------------------------------------------------------
| Other operations | -2 | -2 | 20 | 2 | 27 | 10 |
--------------------------------------------------------------------------------
| Eliminations | -29 | -23 | -300 | 0 | 16 | 94 |
--------------------------------------------------------------------------------
| Operating result total | 141 | 105 | 18 | 7 | -56 | -137 |
--------------------------------------------------------------------------------
| - % of sales | 10.0 | 8.6 | 1.5 | 0.6 | -4.6 | -10.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of results in | -7 | -6 | -4 | -1 | -8 | -2 |
| associated companies | | | | | | |
--------------------------------------------------------------------------------
| Exchange gains and losses | 2 | -2 | 2 | 4 | -1 | -2 |
--------------------------------------------------------------------------------
| Other net financial items | -34 | -34 | -34 | -63 | -30 | -20 |
--------------------------------------------------------------------------------
| Result before income tax | 102 | 64 | -18 | -53 | -95 | -163 |
--------------------------------------------------------------------------------
| Income tax | -40 | -24 | -9 | -6 | 7 | 19 |
--------------------------------------------------------------------------------
| Result from continuing | 62 | 40 | -27 | -59 | -88 | -144 |
| operations | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result from discontinued | 0 | 0 | -9 | -2 | -3 | -10 |
| operations | | | | | | |
--------------------------------------------------------------------------------
| Result for the period | 62 | 40 | -36 | -61 | -91 | -153 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result | QII/10 | QI/10 | QIV/09 | QIII/09 | QII/09 | QI/09 |
| excl. non-rec. | | | | | | |
| items | | | | | | |
--------------------------------------------------------------------------------
| Wood Supply | 8 | 7 | 4 | -1 | 4 | 5 |
--------------------------------------------------------------------------------
| Wood Products | 11 | 0 | -3 | -3 | -10 | -25 |
| Industry | | | | | | |
--------------------------------------------------------------------------------
| Pulp Industry | 110 | 57 | 44 | 2 | -42 | -47 |
--------------------------------------------------------------------------------
| Board and Paper | 43 | 39 | 7 | -22 | -70 | -65 |
| Industry | | | | | | |
--------------------------------------------------------------------------------
| Tissue and | 12 | 19 | 21 | 31 | 22 | 19 |
| Cooking Papers | | | | | | |
--------------------------------------------------------------------------------
| Other operations | -31 | -25 | -28 | 3 | 35 | 46 |
| & eliminations | | | | | | |
--------------------------------------------------------------------------------
| Operating result | 154 | 96 | 44 | 9 | -61 | -67 |
| total | | | | | | |
--------------------------------------------------------------------------------
Unaudited
--------------------------------------------------------------------------------
| Change in tangible assets | QI-II/10 | QI-II/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Book value at beginning of period | 2 428 | 2 958 | 2 958 |
--------------------------------------------------------------------------------
| Business acquisitions | - | 1 | 472 |
--------------------------------------------------------------------------------
| Investments | 39 | 68 | 143 |
--------------------------------------------------------------------------------
| Decrease | -5 | -245 | -772 |
--------------------------------------------------------------------------------
| Assets classified as held for sale | -19 | -447 | -3 |
--------------------------------------------------------------------------------
| Depreciation and impairment charges | -129 | -187 | -449 |
--------------------------------------------------------------------------------
| Translation differences and other | 30 | -7 | 78 |
| changes | | | |
--------------------------------------------------------------------------------
| Book value at end of period | 2 344 | 2 141 | 2 428 |
--------------------------------------------------------------------------------
In June 2010, assets classified as held for sale include part of the former
equipment of Metsä-Botnia's Kaskinen pulp mill, shut down in 2009 (EUR 11
million), and the tangible assets of M-real's paper machine 2 in Kangas (EUR 8
million).
Depreciation and impairment charges include the June 2010 partial reversal of
the impairment loss related to the shutdown of Metsä-Botnia's Kaskinen mill (EUR
-11 million), based on an agreed asset deal; the partial reversal of the
impairment loss recognised in connection with the closure of M-real's paper
machine 2 at the Kangas mill (EUR -8 million), based on the agreed sale of the
machine; as well as the write-down related to the reorganisation of Metsä
Tissue's Polish operations (EUR 4 million).
In June 2009, assets classified as held for sale include property, plant and
equipment of Metsä-Botnia's operations in Uruguay, and in December 2009,
property, plant and equipment of Metsäliitto Wood Products Industry's blockboard
mill.
--------------------------------------------------------------------------------
| Commitments | QII/10 | QII/09 | QIV/09 |
--------------------------------------------------------------------------------
| On own behalf (incl. leasing | 587 | 353 | 456 |
| liabilities) | | | |
--------------------------------------------------------------------------------
| On behalf of associated companies | 6 | 4 | 6 |
--------------------------------------------------------------------------------
| On behalf of others | 4 | 6 | 4 |
--------------------------------------------------------------------------------
| Total | 597 | 363 | 466 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Open derivative contracts | QII/10 | QII/09 | QIV/09 |
--------------------------------------------------------------------------------
| Interest rate derivatives | 886 | 1 074 | 831 |
--------------------------------------------------------------------------------
| Currency derivatives | 1 708 | 2 160 | 1 766 |
--------------------------------------------------------------------------------
| Other derivatives | 260 | 347 | 254 |
--------------------------------------------------------------------------------
| Total | 2 854 | 3 581 | 2 850 |
--------------------------------------------------------------------------------
The market value of open derivative contracts at the end of the review period
was EUR -45 million (QIV/09: EUR -28 million). Open derivative contracts also
include closed contracts to a total amount of EUR 364 million (QIV/09: EUR 537
million).
Accounting policies
This Interim Report was prepared in accordance with the IAS 34 standard Interim
Financial Reporting and the accounting policies presented in Metsäliitto Group's
Annual Report 2009.
--------------------------------------------------------------------------------
| Calculation of | | |
| key ratios | | |
--------------------------------------------------------------------------------
| Return on capital | = | (Result from continuing operations before tax + |
| employed (%) | | interest expenses, net exchange gains/losses and |
| | | other financial expenses) per |
| | | (Balance total - non-interest-bearing liabilities |
| | | (average)) |
--------------------------------------------------------------------------------
| Return on equity | = | (Result from continuing operations before tax - |
| (%) | | income taxes) per |
| | | (Members' funds (average)) |
--------------------------------------------------------------------------------
| Equity ratio (%) | = | (Members' funds) per |
| | | (Balance total - advance payments received) |
--------------------------------------------------------------------------------
| Net gearing ratio | = | (Interest bearing borrowings - liquid funds - |
| (%) | | interest-bearing receivables) per |
| | | (Members' funds) |
--------------------------------------------------------------------------------
