INTERIM REPORT JANUARY - MARCH 2005

METSÄLIITTO GROUP                   RELEASE

                                    28 April 2005 at 1.00 p.m.

INTERIM REPORT JANUARY – MARCH  2005

President and CEO Kari Jordan:

“Profitability showed a slight improvement in the first quarter but
is still unsatisfactory. Efforts to raise prices will continue,
together with rationalizations and the cost-reduction programme.”


KEY FIGURES
                                             Unaudited figures

                         2005     2004    2004    2004     2004
                          1-3     1-12     1-9     1-6      1-3
Sales                   2 187    8 598   6 462   4 364    2 160
Operating profit           74      144     140     105       70
Result before tax          18      -76     -31     -10      -19
Result for the period      14      -24      -2      14        8
                                                               
Return on capital                                              
employed, %               4.9      2.5     3.3     3.7      4.6
Return on equity, %       1.5     -3.9    -2.8    -1.5     -2.2
                                                               
Equity ratio, %          32.1     32.1    30.1    29.6     28.8
Gearing, %                123      120     136     145      146
Interest bearing net                                           
liabilities             3 440    3 336   3 503   3 713    3 694
                                                               
Personnel at                                                     
the end of period    29 050    28 783   29 397    30 791   29 410


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

This Interim Report has been prepared using accounting and valuation
policies conforming with IFRS.

SALES AND FINANCIAL RESULTS
Sales for the period January – March were EUR 2,187 million, little
changed on last year’s corresponding figure of EUR 2,160 million.

Operating profit for the first quarter was EUR 74.0 million (69.7).
The figure for the first quarter last year includes a capital gain of
EUR 19 million from the sale of Metsä Tissue. Operating profit was
boosted by growth in paper and board deliveries and by lower
overheads. The profitability of the sawmilling business declined
further, with sales prices for redwood goods more than ten per cent
lower than during the first quarter last year.

Average sales prices for both magazine papers and coated fine papers
were similar to those for this period last year. However, the
strengthening of the euro by some 5 per cent against the dollar
reduced export prices in euros. The average sales price of uncoated
fine paper was about 4 per cent lower. Although prices for folding
boxboard were raised, the stronger euro kept average prices almost
unchanged.

Net finance costs were 2.5 per cent of sales (4.3). Finance income
was EUR 6.4 million (1.2) and finance costs were EUR 50.7 million
(79.5). The Group’s share of the results of associated companies was
EUR -0.3 million (4.5). Exchange rate differences on financing were
EUR -11.2 million (-14.9). Before tax there was a profit of EUR 18.3
million (-19.0).

Taxes, including the change in deferred tax liability, were EUR -7.6
million (+5.1) and minority interest was EUR 2.9 million (21.8).
Result for the period was EUR 13,6 million (7.9).

Return on capital employed for the first quarter was 4.9 per cent
(4.6) and return on equity 1.5 per cent (-2.2).

BALANCE SHEET AND FINANCING
At the end of March the Group’s equity ratio was 32.1 per cent and
the gearing ratio 123 per cent (32.1% and 120%, respectively, at 31
December 2004). Interest-bearing net liabilities increased by EUR 104
million during the first quarter and at the end of March stood at EUR
3,440 million (3,336 million at 31 December 2004).

The Group’s total liquidity at the end of March was EUR 2.0 billion
(2.1 billion at 31 December 2004). Of this amount, EUR 0.2 billion
was in the form of liquid funds and investments (0.3) and EUR 1.8
billion in the form of committed credit facilities not shown in the
balance sheet (1.8). For its short-term financing needs the Group
also had around EUR 0.6 billion available in non-committed domestic
and foreign commercial paper programmes and forward credits.

At its meeting on 13 April 2005, Metsäliitto Cooperative’s
Representative Council decided that interest of 6.5 per cent would be
paid on members’ capital for 2004 (6.5%), interest of 5.5 per cent of
additional members’ capital A (5.5%) and 4.0 per cent on additional
members’ capital B.

At the same meeting, the Representative Council decided to amend the
by-laws to allow one-third of the distributable surplus for the
financial period, as shown in the most recently adopted balance
sheet, annually to be used to repay members’ capital and additional
members’ capital. Under the amended by-laws, the amount that may be
used for this purpose under IFRS is entered under liabilities and the
remaining members’ capital as members’ funds.

Members’ capital totalling EUR 17 million had been received by the
end of March. Members’ capital increased by EUR 2 million, additional
members’ capital A by EUR 13 million and additional members’ capital
B by EUR 2 million. At the end of March Metsäliitto had a total of
130,746 members (130,869 at 31 December 2004).


CAPITAL EXPENDITURE AND ACQUISITIONS
Gross capital expenditure on fixed assets and company acquisitions by
the Metsäliitto Group during the first quarter was EUR 171 million
(47).

In January, Metsäliitto Cooperative bought 16.6 per cent of the
shares of Vapo from the Finnish state for EUR 47.0 million. At the
end of January, Metsäliitto also acquired a 49.9 per cent interest in
Finsilva, a company which has purchased the forest assets owned
jointly by M-real and Metsäliitto, together with those owned by Suomi
Mutual Life Assurance Company.

In a significant internal transaction at the end of March,
Metsäliitto Cooperative purchased 8 per cent of the shares of Metsä-
Botnia from M-real for EUR 164 million. Also in March, Metsäliitto
increased Finnforest’s share capital by EUR 50 million.

Construction work on Botnia’s sawmill in Russia is progressing. The
sawmill is scheduled to start production early in 2006. It will have
an annual capacity of 200,000 cubic metres and will cost a total of
around EUR 50 million.

Finnforest is expanding production at its Kerto unit at Punkaharju.
When complete in the first half of 2006, the unit’s annual production
capacity will increase by 60,000 cubic metres to 130,000 cubic
metres. The estimated cost of the investment is EUR 20 million.

At the beginning of March, M-real announced its intention to
modernize the board machine at its Simpele mill at a cost of EUR 60
million. As a result, the mill’s capacity will rise by 45,000 tonnes
to 215,000 tonnes a year. The work will be completed in stages by
spring 2006.

URUGUAY PULP MILL PROJECT
The decision to build a eucalyptus pulp mill, capacity one million
t/a, was taken in March. The mill is due for completion in the third
quarter of 2007 at a total cost of around USD 1.1 billion.

An environmental permit for the Uruguay pulp mill project was granted
in February. The free trade zone status granted by the Uruguay
government in October took effect at the same time.

PERSONNEL
The average number of employees during the period January – March was
29,079 (29,434). The number at the end of March was 29,050 (29,410).
Staff costs include the Group’s 49.9 per cent share in the Vapo group
from the beginning of January. At the end of March, Vapo had 1,720
employees. At the end of 2004, the Metsäliitto Group had 28,783
employees.


METSÄLIITTO GROUP COMPANIES

METSÄLIITTO COOPERATIVE AND THOMESTO
Metsäliitto Cooperative’s sales for the first quarter were EUR 323
million (327). Operating profit was EUR 13.6 million (8.5), 4.2 per
cent of sales (2.6). Profit after financial items was EUR 33.2
million (49.5). Finance items include a write-down of EUR 6.2 million
on the Forestia transaction and dividend income of EUR 26.2 million
(40.7). Dividend for the first quarter of last year includes
corporation tax credit of EUR 11.7 million.

Metsäliitto Cooperative’s return on capital employed was 6.5 per cent
(7.7). At the end of March the equity ratio was 56.3 per cent and the
gearing ratio 14 per cent (59.8% and -8%, respectively, at 31
December 2004). Interest-bearing liabilities were EUR 152 million (-
82 million at 31 December 2004).

The parent company Metsäliitto Cooperative’s figures are presented
according to Finnish accounting standards.

Thomesto produced first-quarter sales of EUR 114 million (101) and an
operating profit of EUR 1.2 million (0.7). Deliveries to Finland
totalled 0.9 million cubic metres (0.8).

FINNFOREST
Finnforest’s sales were EUR 468 million, about the same as this
period last year (470). The result from operations was EUR -0.9
million (+6.9) and the result before taxes was EUR -11.4 million (-
10.4).

The weaker result was due primarily to the problems encountered by
the sawmilling business: over-supply, falling sales prices and the
high cost of sawlogs.

Return on capital employed was -0.2 per cent, compared with 2.8 per
cent for the first quarter last year. At the end of March the equity
ratio was 29.0 per cent and the gearing ratio 167 per cent (27.0% and
179%, respectively, at 31 December 2004).

Finnforest published its own interim report on 28 April 2005.

METSÄ TISSUE
Metsä Tissue booked sales of EUR 171 million for the first three
months of the year (170). Operating profit was EUR 9.4 million
(12.4). Calculated on a comparative basis, operating profit was about
the same as a year ago taking into account the effect of the
transactions in the first quarter of 2004 and the one-off impact of
the transition to IFRS. Last year’s operating profit also included
non-recurring income of EUR 2.7 million from the hedging of chemical
pulp purchases.

M-REAL
M-real booked sales of EUR 1,344 million (1,412) and an operating
profit of EUR 115 million (24). Operating profit includes non-
recurring gains totalling EUR 85 million, of which EUR 81 million
came from the sale of 8 per cent of Metsä-Botnia. The figure for the
first-quarter last year contains no non-recurring items.

Excluding non-recurring items, operating profit was EUR 30 million.
Profitability benefited primarily from growth in paper and board
deliveries, lower overheads in the paper business, and growth in both
paper and board stocks.

Result before tax was EUR 76 million (-42), earnings per share EUR
0.23 (0.66) and return on capital employed 9.9 per cent (2.0).
Excluding non-recurring items, result before tax was EUR -8 million,
earnings per share EUR -0.03 and return on capital employed 3.0 per
cent.

At the end of March the equity ratio was 38.6 per cent and the
gearing ratio 81 per cent (37.5% and 89%, respectively, at 31
December 2004).

M-real published its own interim report on 28 April 2005.

BOTNIA
First-quarter sales were EUR 255 million (263) and operating profit
was EUR 23.9 million (19.6). Operating profit contains a non-
recurring write-down on goodwill of EUR 5.1 million relating to the
Baltic Pulp business.

The improvement in operating profit is due largely to higher sales
prices for pulp. Foreign currency-denominated market prices for
softwood pulp were on average 8 per cent higher than for the first
quarter last year. The average price of hardwood pulp was up by 11
per cent.

Profit before tax was EUR 25.4 million (20.1) and the return on
capital employed was 8.4 per cent (6.9). At the end of March the
equity ratio was 73 per cent and the gearing ratio 1 per cent.

Forty-seven per cent of Botnia’s income statement and 39 per cent of
the balance sheet is included in M-real’s accounts. Totally 53 per cent
of Botnia’s figures are included in the Metsäliitto Group’s consolidated
accounts.

OUTLOOK

Metsäliitto Cooperative’s wood purchasing this year will focus on
spruce-dominated stands marked for clear cutting and on pine
thinnings. The purchasing target for the year is 17.7 million cubic
metres. Stands suitable for summer harvesting are currently in good
demand.

No major changes are expected in demand for wood products during the
second quarter. The situation as regards conifer and birch plywoods
is likely to remain satisfactory, but the market for timber will
probably continue to be challenging. A quality pricing system will be
introduced for pine logs based on their sawing value. This is
expected to make sawmilling more profitable during the latter part of
the year.

Competition on tissue markets will remain fierce. 

Demand for paper and board is expected to remain good, though for
seasonal reasons delivery volumes in the second quarter could be down
on the first. Modest increases in prices for folding boxboard and
magazine papers have been successfully introduced this year, but
price rises for fine papers have not been achieved as early as
planned. However, prices are likely to rise later this spring.

For seasonal reasons, the Metsäliitto Group expects its financial
result for the second quarter to be slightly below that for the first
quarter. In Finland, industrial action could disrupt production.


Espoo, 28 April 2005
BOARD OF DIRECTORS


Additional information:
Mr. Pekka Kivelä, Senior VP, Group Communications,
tel. int +358 1046 94545



BUSINESS SECTOR REVIEWS

Consumer Packaging
                           2005     2004   2004   2004   2004   2004
                            1-3    10-12    7-9    4-6    1-3   1-12
Sales                       238      256    264    267    258  1 045
EBITDA                       49       45     49     42     44    180
 - % of turnover           20.6     17.7   18.4   15.9   17.0   17.2
Depreciation and                                                    
impairment losses           -22      -16    -24    -24    -23    -87
Operating profit             27       30     25     18     20     93
 - % of turnover           11.2     11.6    9.4    6.9    7.9    8.9

EBITDA = result before depreciation and impairment losses

The consumer packaging business produced first-quarter sales of EUR
238 million (258) and an operating profit of EUR 26.6 million (20.4).
Operating profit was improved by growth in deliveries of folding
boxboard. Deliveries by folding boxboard producers in Western Europe
were 6 per cent higher than for this period last year. Despite the
price rises introduced for folding boxboard, the strengthening of the
euro has kept average prices almost unchanged. Board production was
cut by 17,000 tonnes in line with demand (40,000).

Profitability was better than the previous quarter, mainly thanks to
lower overheads and to higher sales prices for folding boxboard.
Linerboard deliveries were well up and sales prices were similar to
those in the previous quarter.

Papers
                           2005     2004   2004   2004   2004   2004
                            1-3    10-12    7-9    4-6    1-3   1-12
Sales                       747      759    738    710    737  2 944
EBITDA                       72       34     71     55     69    229
 - % of turnover            9.6      4.5    9.6    7.7    9.4    7.8
Depreciation and                                                    
impairment losses           -63      -64    -65    -64    -64   -256
Operating profit              9      -30      6     -9      6    -27
 - % of turnover            1.2     -4.0    0.8   -1.3    0.8   -0.9

EBITDA = result before depreciation and impairment losses

The papers business consists of M-real’s Publishing, Commercial
Printing and Office Papers business areas.

Demand for paper remained reasonably good during the first quarter of
2005 and was about the same as for this period last year. Production
capacity continued to be under-utilized, particularly that for fine
papers.

The papers business booked sales of EUR 747 million (737) and an
operating profit of EUR 8.8 million (5.9). Production had to be
curtailed by 64,000 tonnes (107,000).

Deliveries by coated magazine paper producers in Western Europe were
8 per cent higher than for this period last year, but fine paper
deliveries fell by around one per cent. Average prices for both
magazine papers and coated fine papers were similar to those a year
ago, but the stronger euro reduced export prices in euros. The
average sales price of uncoated fine paper fell by around 4 per cent.


MAP Merchant Group
                           2005     2004   2004   2004   2004   2004
                            1-3    10-12    7-9    4-6    1-3   1-12
Sales                       341      343    332    339    354  1 368
EBITDA                        8        5      5      7      7     24
 - % of turnover            2.3      1.5    1.4    2.1    2.0    1.8
Depreciation and                                                    
impairment losses            -2       -2     -2     -2     -2     -7
Operating profit              6        4      3      5      5     17
 - % of turnover            1.8      1.0    0.8    1.6    1.5    1.2

EBITDA = result before depreciation and impairment losses

Sales by the Map Merchant Group were EUR 341 million (354). Operating
profit improved to EUR 6.3 million (5.3), mainly thanks to lower
overheads.


Wood products
                           2005     2004   2004   2004   2004   2004
                            1-3    10-12    7-9    4-6    1-3   1-12
Sales                       468      466    458    529    470  1 923
EBITDA                       17       15     24     32     24     94
 - % of turnover            3.6      3.2    5.2    6.0    5.1    4.9
Depreciation and                                                    
impairment losses           -18      -18    -18    -18    -17    -71
Operating profit             -1       -3      6     14      7     23
 - % of turnover           -0.2     -0.6    1.3    2.6    1.5    1.2

EBITDA = result before depreciation and impairment losses

The Finnforest Group is the Metsäliitto Group’s wood products
division.

The wood products business booked sales of EUR 468 million (470) and
an operating result of EUR -0.9 million (6.9). The financial result
was affected by over-supply on sawn timber markets and by the high
cost of raw material, particularly pine logs. Also, sales prices for
sawn redwood were more than ten per cent lower than in the first
quarter of last year.

Both demand and prices for birch and conifer plywoods showed an
improvement on the same period a year ago. Prices for Kerto LVL have
also strengthened.


Others
                          2005    2004    2004   2004    2004    2004
                           1-3   10-12     7-9    4-6     1-3    1-12
Sales 1)                   428     346     341    395     377   1 459
Operating profit            33       4      -5      7      32      38
of which                                                             
   Wood procurement in                                               
   Finland                  14       6       8      2       9      25
   International wood                                                
   procurement               1      -1       2      1       1       3
   Hygiene products          9      10      10      5      13      38
   Others and Group                                                  
   eliminations              9     -12     -25     -2      10     -28

1) Sales to companies outside the Group

Other operations consists of Metsäliitto Cooperative, Metsä Tissue
and Thomesto. Figures also include Metsäliitto’s 49.9 per cent share
of the Vapo group as from January 2005.

Trading in wood raw material started the year briskly but returned to
normal by the end of March. Metsäliitto’s wood purchases during
January – March were 4.2 million cubic metres (3.7), just under a
quarter of the target for the year. Good demand for pulpwood meant
that delivery contracts represented a slightly higher proportion of
purchases than normal. Prices for pine logs have been falling, but
deals for other species were struck at prices similar to those last
autumn.

Deliveries to mills in Finland, including wood chips, totalled 7.1
million cubic metres, of which 5.0 million cubic metres was domestic
roundwood. Soft ground conditions hampered wood harvesting at the
start of the year, and in many parts of Finland it was mid-February
before stands marked for winter harvesting could be tackled.

Slow economic growth and over-capacity have intensified competition
for tissue products, notably on the markets of western and southern
Europe. As a result, the negative trend in sales prices has
continued, particularly for consumer products. At the same time, the
business climate for tissue is changing along with the rapid growth
of European retail chains.

The trends in the market meant that Metsä Tissue fell somewhat behind
its targets for both sales volumes and sales. Compared with last
year, however, both sales volumes and sales continued to show growth.
Thanks to greater cost-effectiveness, Metsä Tissue met its targets
for the first quarter.

The Vapo group will publish its own interim report on 2 May 2005.


Production

1 000 units               2005    2004    2004   2004    2004    2004
                           1-3   10-12     7-9    4-6     1-3    1-12
Paper, t                 1 026   1 030   1 021    970     987   4 008
Paperboard, t              293     326     355    319     331   1 330
Sawn goods, m3           1 053   1 014     988  1 059   1 123   4 185
Processed timber, m3       299     427     231    211     297   1 166
EW-products, m3            226     225     196    236     253     911
Pulp & CTMP, t (M-real)    383     399     384    369     381   1 533
Pulp, t (Botnia)           653     602     616    594     638   2 450



METSÄLIITTO GROUP

                                2005     2004  Change    2004
Income statement                 1-3      1-3            1-12
Sales                          2 187    2 160     27    8 598
 Other operating income           43       53    -10      135
 Operating expenses           -2 024   -2 012    -12   -8 066
 Depreciation and impairment                                 
 losses                         -132     -131     -1     -522
Operating profit                  74       70      4      144
 Share of results in associates    0        4     -4        1
 Net exchange gains / losses     -11      -15      4       -2
 Other financial income and                                  
 expenses                        -45      -78     33     -219
Result before tax                                            
and minority interest             18      -19     37      -76
 Income taxes                     -7        5    -13      -28
Result after tax                  11      -14     24     -104
 Minority interest                 3       22    -18       80
Result for the period             14        8      6      -24


                               2005     2004   Change     2004
Balance sheet                 31.3.    31.3.            31.12.
ASSETS                                                      
Non-current assets                                          
 Intangible assets               812      797     15     802
 Tangible assets               4 239    4 210     29   4 148
 Biological assets                46      203   -157     201
Financial assets                                            
 Interest bearing                 71       82    -11      59
 Deferred tax receivables        103       91     12     102
 Other non-interest bearing      207      292    -85     283
                               5 478    5 675   -197   5 596
Current assets                                              
Inventories                    1 301    1 225     76   1 172
Receivables                                                 
 Interest bearing                 25       29     -4      66
 Non-interest bearing          1 691    1 667     24   1 564
Cash and cash equivalents        200      207     -7     252
                               3 217    3 128     89   3 055
                                                            
TOTAL                          8 695    8 802   -107   8 651
                                                            
MEMBERS’ FUNDS AND LIABILITIES                              
Members’ funds                 1 387    1 350     37   1 351
Minority interest              1 400    1 181    219   1 428
Total members’ funds           2 787    2 531    256   2 779
                                                            
Non-current liabilities                                     
 Deferred tax liabilities        478      489    -11     505
 Post employment benefit                                    
 obligations                     271      297    -26     271
 Provisions                       48       34     14      45
 Interest bearing              2 880    3 184   -304   2 946
 Other non-interest bearing      110       93     17      37
                               3 787    4 097   -310   3 805
Current liabilities                                         
 Interest bearing                855      828     27     768
 Non-interest bearing          1 266    1 345    -79   1 299
                               2 121    2 173    -52   2 067
                                                            
Total liabilities              5 908    6 271   -363   5 872
                                                            
TOTAL                          8 695    8 802   -107   8 651




Change in members’                                                    
funds                                                    Mino-        
                        Members’ Reser-    Retaianed      rity        
                         capital ves        earnings     Inte-   Total
                                                          rest
Members’ funds 31.12.2003                                           
                              545       63      947    1 408   2 963
Effect of transition to                                             
IFRS                         -114       -9     -123     -169    -415
Members’ funds 1.1.2004,                                            
IFRS                          431       54      824    1 239   2 548
Translation differences                          10               10
Increase in members’ capital   24                                 24
Effects of financial                                                
instruments                             -2                        -2
Minority interest                                        -58     -58
Result for the period                             8                8
Members’ funds 31.3.2004      455       52      842    1 181   2 530
                                                                    
                                                                    
Members’ funds 1.1.2005       505       62      783    1 428   2 778
Translation differences                          -9               -9
Increase in members’ capital   17                                 17
Effects of financial                                                
instruments                             14                        14
Minority interest                                        -27     -27
Result for the period                            14               14
Members’ funds 31.3.2005      522       76       45    1 401   2 788



                                2005     2004    2004
Cash flow statement              1-3      1-3    1-12
Cash flow from operations                            
Result for the period             14        8     -24
  Adjustments total              188      190     672
  Change in working capital     -140      -34      35
Cash generated from operations    62      164     683
  Finance costs, net             -56      -89    -225
  Income taxes paid              -46      -38     -85
Net cash from operations         -40       37     373
                                                     
Cash flow from investments                           
Acquisitions                     -46                 
Purchases of assets             -125      -46    -434
Sold assets and others           189      404     568
Net cash from investments         18      358     134
                                                     
Cash flow from financing                             
Change in non-current loans                          
and other financial items         -6     -374    -413
Dividends paid                   -24      -33     -62
Net cash flow from financing     -30     -407    -475
                                                     
Change in cash and cash                              
equivalents                      -53      -12      33
                                                     
Cash at beginning of period      252      219     219
Change in cash and cash                              
equivalents                      -53      -12      33
Cash at end of period            200      207     252



METSÄLIITTO GROUP


Quarterly data           2005     2004   2004   2004   2004   2004
                          1-3    10-12    7-9    4-6    1-3   1-12
Sales by segment                                                  
 Consumer packaging       238      256    264    267    258  1 045
 Papers                   747      759    738    710    737  2 944
 MAP Merchant Group       341      343    332    339    354  1 368
 Wood products            468      466    458    529    470  1 923
 Others                   428      346    341    395    377  1 459
  - internal sales        -35      -35    -35    -37    -35   -142
Group sales             2 187    2 135  2 099  2 204  2 160  8 598
                                                                  
Operating profit by                                               
segment
 Consumer packaging        27       30     25     18     20     93
 Papers                     9      -30      6     -9      6    -27
 MAP Merchant Group         6        4      3      5      5     17
 Wood products             -1       -3      6     14      7     23
 Others                    33        4     -5      7     32     38
Group operating profit     74        4     35     35     70    144
   - % of turnover        3.4      0.2    1.7    1.6    3.2    1.7
                                                                  
Share of results in                                               
associates                  0       -4      0      1      4      1
Net exchange gains/                                               
losses                    -11       19      0     -6    -15     -2
Other financial income                                            
& expenses                -45      -64    -55    -22    -78   -219
Result before tax          18      -45    -21      9    -19    -76
 Income taxes              -7       -5    -14    -14      5    -28
Result after tax           11      -50    -35     -5     14   -104
 Minority interest          3       28     19     12     22     80
Result for the period      14      -22    -16      6      8    -24


METSÄLIITTO GROUP

Reconciliation of profit

                                            Effects of           
Income statement                     FAS    transition       IFRS
                                1-3/2004       to IFRS   1-3/2004
Sales                              2 155             5      2 160
 Other operating income               40            13         53
 Operating expenses               -2 007            -5     -2 012
 Share of results in associates        2            -2          0
 Depreciation and impairment                                     
 losses                             -141            10       -131
Operating profit                      50            20         70
 Share of results in associates        0             4          4
 Net exchange gains / losses           6           -21        -15
 Other financial income and                                      
 expenses                            -51           -27        -78
Result before tax                                                
and minority interest                  5           -24        -19
 Income taxes                         -5            10          5
 Minority interest                    18             4         22
Result for the period                 18           -10          8



Reconciliation of balance sheet

                                            Effects of            
Balance sheet                        FAS    transition        IFRS
                               31.3.2004       to IFRS   31.3.2004
ASSETS                                                            
Non-current assets                                                
 Intangible assets                   847           -50         797
 Tangible assets                   4 314          -104       4 210
 Biological assets                     0           203         203
Financial assets                                                  
 Interest bearing                     79             3          82
 Deferred tax receivables             57            34          91
 Other non-interest bearing          290             2         292
                                   5 587            88       5 675
Current assets                                                    
Inventories                        1 232            -7       1 225
Receivables                                                       
 Interest bearing                     35            -6          29
 Non-interest bearing              1 670            -3       1 667
Cash and cash equivalents            203             4         207
                                   3 141           -13       3 128
                                                                  
TOTAL                              8 728            74       8 802
                                                                  
MEMBERS’ FUNDS AND LIABILITIES                                    
Members’ funds                     1 595          -245       1 350
Minority interest                  1 358          -177       1 181
Total members’ funds               2 953          -422       2 531
                                                                  
Non-current liabilities                                           
 Deferred tax liabilities            467            22         489
 Post employment benefit              30           267         297
obligations
 Provisions                           49           -15          34
 Interest bearing                  3 150            34       3 184
 Other non-interest bearing           46            47          93
                                   3 742           355       4 097
Current liabilities                                               
 Interest bearing                    705           123         828
 Non-interest bearing              1 328            17       1 345
                                   2 033           140       2 173
                                                                  
Total liabilities                  5 775           496       6 271
                                                                  
TOTAL                              8 728            74       8 802




About Us

Metsä Groupwww.metsagroup.com Metsä Group is a forerunner in sustainable bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh fibre paperboards and tissue and greaseproof papers. In 2019, Metsä Group’s sales totalled EUR 5.5 billion, and it employs approximately 9,300 people. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 103,000 Finnish forest owners.

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