Metsäliitto Group Interim Report January-September 2010

Metsäliitto Group Interim Report 1-9/2010, Stock Exchange Release 27 October
2010 
Metsäliitto Group's operating result excluding non-recurring items was EUR 405  
million                                                                         


Result for January-September                                                    
- Sales EUR 3,986 million (1-9/2009: EUR 3,647 million). 
- Operating result excluding non-recurring items was EUR 405 million (-119), 
representing 10.2 per cent of sales (-3.3). Operating result including          
non-recurring items was EUR 415 million (-186).                                 
- Result before tax excluding non-recurring items was EUR 299 million (-232). 
Result before tax including non-recurring items was EUR 293 million (-310).     

Result for July-September                                                       
- Sales EUR 1,345 million (7-9/2009: EUR 1,155 million). 
- Operating result excluding non-recurring items was EUR 155 million (9), 
representing 11.5 per cent of sales (0.8). Operating result including           
non-recurring items was EUR 170 million (7).                                    
- Result before tax excluding non-recurring items was EUR 114 million (-51). 
Result before tax including non-recurring items was EUR 128 million (-53).      

Events in the third quarter                                                     
- Wood supply succeeded in harvesting most of the wood damaged by the storm
across 
central Finland.                                                                
- The construction market picked up in the Nordic region in particular, which 
boosted the demand for construction projects and Kertopuu.                      
- The demand for pulp has remained good and prices high. 
- Price increase measures in Europe continued for folding boxboard and coated 
white top liners.                                                               
- The Alizay pulp mill in France was shut down permanently. 
- The sale of Metsä Tissue's own brands increased clearly compared to last
year's 
figures.                                                                        

“Our result is proof of the favourable market situation of the third quarter and
shows the Group's competitiveness in the chosen core businesses.                
In addition to seasonal fluctuation, the recent strong fluctuations of exchange 
rates create significant challenges for the last quarter. We must continue our  
efforts to improve profitability.”                                              
Kari Jordan, President & CEO, Metsäliitto Group                                 


Metsäliitto Group                                                               
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| Income statement             |   2010 |   2009 |   2010 |    2009 |     2009 |
| (Continuing operations)      |    1-9 |    1-9 |     Q3 |      Q3 |     1-12 |
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| Sales                        |  3 986 |  3 647 |  1 345 |   1 155 |    4 837 |
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|   Other operating income     |     98 |    115 |     51 |      31 |      353 |
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|   Operating expenses         | -3 461 | -3 672 | -1 157 |  -1 103 |   -4 858 |
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| Depreciation and impairment  |   -207 |   -277 |    -70 |     -76 |     -501 |
| losses                       |        |        |        |         |          |
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| Operating result             |    415 |   -186 |    170 |       7 |     -169 |
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| Share of results in          |    -14 |    -11 |     -1 |      -1 |      -16 |
| associates                   |        |        |        |         |          |
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|   Exchange gains and losses  |     -6 |      1 |     -6 |       4 |        2 |
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|   Other net financial items  |   -103 |   -113 |    -35 |     -63 |     -147 |
--------------------------------------------------------------------------------
| Result before income tax     |    293 |   -310 |    128 |     -53 |     -329 |
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|   Income taxes               |   -102 |     19 |    -39 |      -6 |       10 |
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| Result from continuing       |    191 |   -291 |     89 |     -59 |     -318 |
| operations                   |        |        |        |         |          |
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Metsäliitto Group                                                               
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| Profitability                |   2010 |   2009 |   2010 |    2009 |     2009 |
| (Continuing operations)      |    1-9 |    1-9 |     Q3 |      Q3 |     1-12 |
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| Operating result, EUR mill.  |    415 |   -186 |    170 |       7 |     -169 |
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| - “ -, excluding             |    405 |   -119 |    155 |       9 |      -75 |
| non-recurring items          |        |        |        |         |          |
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|    - “ - % of sales          |   10.2 |   -3.3 |   11.5 |     0.8 |     -1.6 |
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| Return on capital employed,  |   13.1 |   -4.8 |   16.6 |     1.3 |     -3.3 |
| %                            |        |        |        |         |          |
--------------------------------------------------------------------------------
| - ” -, excluding             |   13.3 |   -2.9 |   15.2 |     1.4 |     -1.4 |
| non-recurring items          |        |        |        |         |          |
--------------------------------------------------------------------------------
| Return on equity, %          |   13.9 |  -25.1 |   22.4 |   -17.2 |    -20.0 |
--------------------------------------------------------------------------------
| - ” -, excluding             |   17.4 |  -18.3 |   18.8 |   -16.6 |    -13.4 |
| non-recurring items          |        |        |        |         |          |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial position           |   2010 |   2009 |   2010 |    2009 |     2009 |
|                              |   30.9 |   30.9 |   30.6 |    30.6 |    31.12 |
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| Equity ratio, %              |   28.1 |   23.9 |   27.6 |    25.6 |     24.5 |
--------------------------------------------------------------------------------
| Net gearing ratio, %         |    123 |    180 |    135 |     162 |      157 |
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| Interest-bearing net         |  1 985 |  2 363 |  2 109 |   2 348 |    2 203 |
| liabilities, EUR mill.       |        |        |        |         |          |
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Business segments                                                               
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| Sales and Operating      |  Wood  |  Wood   |  Pulp   |  Board   |  Tissue   |
| result                   | Supply | Product | Industr |   and    |    and    |
| January-September 2010   |        |    s    |    y    |  Paper   |  Cooking  |
| (EUR mill.)              |        | Industr |         | Industry |  Papers   |
|                          |        |    y    |         |          |           |
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| Sales                    |    988 |     678 |   1 000 |    1 940 |       692 |
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|  Other operating income  |      7 |      11 |      16 |       70 |         5 |
--------------------------------------------------------------------------------
|  Operating expenses      |   -975 |    -641 |    -688 |   -1 772 |      -627 |
--------------------------------------------------------------------------------
| Depreciation &           |     -3 |     -27 |     -45 |      -88 |       -34 |
| impairment losses        |        |         |         |          |           |
--------------------------------------------------------------------------------
| Operating result         |     17 |      21 |     283 |      150 |        36 |
--------------------------------------------------------------------------------
|   Non-recurring items    |      - |      -5 |      -2 |      -14 |         9 |
--------------------------------------------------------------------------------
| Operating result         |     17 |      16 |     281 |      136 |        45 |
| excl. non-recurring      |        |         |         |          |           |
| items                    |        |         |         |          |           |
--------------------------------------------------------------------------------

The figures are unaudited                                                       

METSÄLIITTO GROUP                                                               

INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010	                                   

Sales and result                                                                
Metsäliitto Group's sales for January-September were EUR 3,986 million          
(1-9/2009: EUR 3,647 million). The figures for the comparison period include    
among others 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 300 million on sales. Comparable sales were up approximately 19 per cent.   

The operating result excluding non-recurring items was EUR 405 million (-119),  
representing 10.2 per cent of sales (-3.3). Non-recurring items totalled EUR 10 
million (-67) in the review period. In the first quarter, net non-recurring     
items amounted to EUR 9 million (-70); in the second quarter, EUR -13 million   
(5); and in the third quarter, EUR 14 million (-2).                             

Non-recurring income for the third quarter was EUR 24 million and non-recurring 
costs were EUR 10 million. Approximately EUR 11 million of the non-recurring    
income arose from the reduction in depreciation and in the provision for the    
reorganisation of M-real's Reflex and Gohrsmühle mills. Approximately EUR 6     
million resulted from patents sold by M-real to Sappi, and EUR 6 million from   
the divestment of the Soinlahti sawmill. Of the non-recurring expense items, EUR
4 million were related to the closure of the M-real Alizay mill, EUR 2 million
to the reorganisation of Metsä Tissue's Mänttä mill and EUR 3 million to the
construction project carried out at joint-stock property company Metsätapiola
Oy in Espoo. 

The third-quarter operating result excluding non-recurring items was EUR 155    
million, representing 11.5 per cent of sales. The operating result was roughly  
at the same level as in the previous quarter (Q2/10: EUR 154 million and 10.9%).
In the corresponding period last year, the operating result was EUR 9 million or
0.8 per cent of sales.                                                          

Metsäliitto Group's operating result including non-recurring items was EUR 415  
million (-186) in January-September. Financial income amounted to EUR 4 million
(28) and financial costs to EUR 106 million (141). 

The share of results in associated companies amounted to EUR -14 million (-11). 
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 comparison period   
includes a EUR 11 million non-recurring expense item related to the divestment  
of Myllykoski Paper's Sunila shares.                                            

Net exchange gains/losses recognised in financial items were EUR -6 million (1).
The US dollar has strengthened on average 4 per cent during the year, the       
British pound by approximately 3 per cent and the Swedish krona by approximately
10 per cent year-over-year. Compared to the situation at the end of 2009, the   
dollar had strengthened by approximately 5 per cent, the pound by approximately 
3 per cent and the krona by approximately 11 per cent by the end of September.  

The result before tax was EUR 293 million (-310), while taxes, including changes
in deferred tax liabilities, totalled EUR -102 million (19). The result for     
continuing operations was EUR 191 million (-291), the result for discontinued   
operations EUR 0 million (-15) and the result for the review period EUR 191     
million (-306).                                                                 

The Group's return on capital employed for continuing operations was 13.1 per   
cent (-4.8), and the return on equity was 16.9 per cent (-25.1). Excluding 
non-recurring items, the return on capital employed was 13.3 per cent (-2.9) and
return on equity was 17.4 per cent (-18.3).                                     

Balance sheet and financing                                                     
Metsäliitto Group's total liquidity at the end of September was EUR 1.1 billion 
(31 December 2009: 1.4). Of this, EUR 0.5 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.                       
Several financing arrangements were implemented in the summer and autumn.       
M-real drew pension loans worth EUR 135 million and redeemed bonds with EUR 90  
million. In the summer, Metsäliitto Cooperative drew pension loans (TyEL) worth 
EUR 65 million and redeemed its EUR 150 million bond. In September Metsäliitto  
also drew investment loans from pension companies worth EUR 175 million with    
five years' maturity. Metsä-Botnia has amortised its loans with EUR 140 million 
during the year. Metsäliitto has also started negotiations for the refinancing  
of the EUR 560 syndicated loan which will mature in March 2011 and agreed on the
refinancing of the EUR 100 million loan maturing in March 2011.                 

The Group's equity ratio in the end of September was 28.1 per cent and net      
gearing totalled 123 per cent (31 December 2009: 24.5% and 157%).               
Interest-bearing net liabilities stood at EUR 1,985 million (31 December 2009:  
2,203). The equity ratio of the parent company, Metsäliitto Cooperative, was    
56.7 per cent at the end of September and net gearing was 50 per cent (31       
December 2009: 57.2% and 50% respectively).                                     

The change in the fair value of investments available for sale was approximately
EUR 37 million, mainly based on the increase in the fair value of the Pohjolan  
Voima shares.                                                                   

Metsäliitto Cooperative's members' capital grew by EUR 29.5 million in          
January-September. The actual members' capital grew by EUR 4.7 million, the     
additional members' capital A decreased by EUR 3.4 million and the additional   
members' capital B grew by EUR 14.9 million. At the end of September, new C     
additional shares had been subscribed for with EUR 13.3 million. EUR 35.6       
million of the additional members' capital fell due on 1 July 2010.             

At the end of September, Metsäliitto Cooperative had 126,114 members (31        
December 2009: 127,158).                                                        

Personnel                                                                       
The Group had an average of 13,165 employees (14,847) in January-September. At  
the end of September, the head count was 13,028 (31 December 2009: 13,592). The 
parent company, Metsäliitto Cooperative, had 2,429 employees at the end of      
September (31 December 2009: 2,248).                                            

Investments                                                                     
Metsäliitto Group's gross capital expenditure and share investments totalled EUR
110 million (116).                                                              

After the review period, M-real announced that it will invest EUR 26 million in 
the Simpele mill to increase its annual folding boxboard capacity by about      
80,000 tonnes. The sheeting capacity will also be expanded at the same time. The
investments will be carried out in summer 2011. M-real also announced it will   
invest in the modernisation of the coating section at the Kemiart Liners mill.  
The total value of the investment is approximately EUR 16 million. This         
investment will also be carried out in 2011.                                    

In July, M-real exercised its option to purchase the former Kangas paper mill   
real estate and land area from Sappi for a price of EUR 13 million. The deal was
part of an agreement with which M-real and Sappi settled the issues still open  
related to the sale of M-real's Graphic Papers business area in 2008. In        
September, the city of Jyväskylä decided to use its right of pre-emption based  
on law to purchase the Kangas mill real estate from M-real for an equivalent    
price of EUR 13 million.                                                        

In October, Metsä Tissue announced its decision to increase the Away-from-Home  
capacity at the Mänttä mill. The value of the investment is EUR 7 million and   
the project is scheduled for completion by the first quarter of 2012.           

The modernisation of Metsä Tissue's paper machine 10 at the Mänttä mill was     
completed in April. The investment, worth some EUR 6 million, is expected to    
improve product quality, reduce water consumption and decrease the need for     
energy.                                                                         

In February, Metsä-Botnia's Board of Directors decided on the construction of   
new causticisation and water stations at the Kemi mill. The total value of the  
investment is approximately EUR 40 million, and the new stations will come      
online at the end of 2011.                                                      

Business areas                                                                  

Wood Supply                                                                     
Wood Supply sales in January-September were EUR 988 million (809), and the      
operating result amounted to EUR 17 million (8). The operating result does not  
include non-recurring items. Wood Supply Finland accounted for EUR 676 million  
(608) of the sales and EUR 8 million (5) of the operating result.               

The third-quarter sales were EUR 318 million (Q3/09: 232), and the operating    
result was EUR 3 million (Q3/09: -1).                                           

Wood trade started briskly in August following the storms sweeping across       
central Finland from the southeast to the northwest, and wood supply also picked
up in the rest of the country by the end of the third quarter. Metsäliitto      
transferred a large share of its harvesting fleet, a total of some 60 harvesting
units, to areas affected by storm damage. The majority of the logging sites     
acquired by Metsäliitto in the storm-affected areas and almost half of the      
pulpwood stands marked for felling were harvested by the end of September.      
Elsewhere in Finland harvesting progressed as usual.                            

Metsäliitto exceeded its wood purchasing target in the third quarter. Owing to  
the sluggish wood sales in the first half of the year, however, the volume of   
wood purchases was still behind the annual target by the end of September.      

In Russia, harvesting progressed well in the third quarter. The areas for which 
Metsäliitto had harvesting rights were not affected by the late-summer storms or
by forest fires. In the Baltic region, wood supply from private forests picked  
up slightly compared with the sluggish sales in the first half of the year.     

The wood supply of Metsäliitto Group's production plants was carried out as     
planned, with deliveries successfully made in the ordered quantities. In        
January-September, Metsäliitto Wood Supply's delivery volume to production      
plants was 21.5 million cubic metres (18.3).                                    

In August Metsäliitto launched a major project concerned with developing the    
operations of Metsäliitto Wood Supply from traditional wood purchasing          
increasingly towards a service business. Attention will be paid to service      
expertise as well as the ways in which services are introduced and made         
available to forest owners.                                                     

Wood Products                                                                   
The sales of Metsäliitto Wood Products Industry were EUR 678 million (613) in   
January-September, and the operating result excluding non-recurring items       
totalled EUR 16 million (-38). The operating result including non-recurring     
items totalled EUR 21 million (-38).                                            

The third-quarter sales were EUR 231 million (Q3/09: 188), and the operating    
result was EUR 11 million (Q3/09: -3). The operating result excluding           
non-recurring items totalled EUR 5 million (-3).                                

Following an increase in the first half of the year, the price of sawn timber   
began to level off in the third quarter. The increase in the price of raw       
material for sawn timber did not weigh down earnings as much as in the previous 
quarter.                                                                        

The demand for processed products remained slack. At the Kaskinen and Kolho     
processing units, preparations were made to adjust production to changes in the 
market situation.                                                               

The construction market picked up in the Nordic region in particular, which     
boosted the demand for Kertopuu and other construction projects. In Central     
Europe, however, construction volumes remained low.                             

The transport equipment industry has started to pick up, which had a positive   
impact on the demand for birch plywood.                                         

Pulp                                                                            
Metsä-Botnia's sales in January-September increased by more than 60 per cent    
year-over-year, amounting to EUR 1,000 million (614). The operating result      
excluding non-recurring items totalled EUR 281 million (-125). The considerable 
improvement in sales and operating result compared with the previous year came  
about from the market picking up and the pulp price rising steeply.             
Metsä-Botnia's sales volumes were up 8 per cent year-over-year.                 

Foreign-currency-denominated market prices for softwood pulp were, on average,  
48 per cent higher compared with the corresponding period last year. The average
prices of hardwood pulp increased by 60 per cent. Pulp prices decreased slightly
in the third quarter, following the steady rise during the first half of the    
year. At the beginning of July, softwood pulp was selling at USD 980 per tonne  
and at the end of September, at USD 970 per tonne. The corresponding figures for
hardwood pulp were USD 920 and USD 870.                                         

The utilisation rate of Metsä-Botnia's mills in the third quarter was very good.
The Äänekoski and Rauma mills, among others, set new monthly production records 
in August. The third-quarter sales were EUR 344 million (Q3/09: 219), and the   
operating result excluding non-recurring items was EUR 115 million (Q3/09: -20).
The operating result represented 33 per cent of sales.                          

The annual maintenance shutdown of the Kemi plant was carried out in September  
with a corresponding shutdown at the Rauma mill in October.                     

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 result figures presented 
above for 2009.                                                                 

Board and Paper                                                                 
The sales of Board and Paper totalled EUR 1,940 million (1,826), and the        
operating result excluding non-recurring items was EUR 136 million (-157).      

Net non-recurring items in January-September amounted to EUR 14 million (-58),  
EUR 2 million of which was already recognised during the first half of the year.

Non-recurring items totalled EUR 12 million net in the third quarter.           
Approximately EUR 11 million of the non-recurring income arose from the         
reduction in depreciation and in the provision for the reorganisation of        
M-real's Reflex and Gohrsmühle mills. Approximately EUR 6 million resulted from 
patents sold to Sappi. A non-recurring expense item of EUR 4 million was        
recognised relating to the closure of the Alizay pulp mill.                     

The operating result excluding non-recurring items improved from the            
corresponding period last year due to increased delivery volumes, the higher    
selling price of pulp, the implemented increases in the price of board and      
paper, and cost savings. The investment shutdown at the Husum pulp mill, the    
stevedore strike in Finland, and the strengthening of the Swedish krona against 
the euro weakened the result. The operating result for the review period        
includes a sales gain of EUR 5 million from the sale of the Sappi shares, which 
is recognised as other business income. The majority of the Sappi shares,       
acquired in connection with the divestment of M-real's Graphic Papers business  
completed at the end of 2008, have been sold.                                   

The third-quarter sales were EUR 662 million (Q3/09: 618), and the operating    
result excluding non-recurring items was EUR 54 million (Q3/09: -22).           

The operating result including non-recurring items totalled EUR 150 million     
(-215) in January-September. Net interest and other financial expenses amounted 
to EUR 52 million (59).                                                         

The share of results in associates amounted to EUR -21 million (-14). 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 -7 million (4).                  

The result before tax was EUR 70 million (-284), earnings per share were EUR    
0.15 (-0.83) and return on capital employed was 7.8 per cent (-8.5). Excluding 
non-recurring items, the result before tax was EUR 72 million (-215), earnings  
per share were EUR 0.16 (-0.64) and the return on capital employed was 8.0 per  
cent (-5.6).                                                                    

At the end of September, the equity ratio was 31.8 per cent and net gearing was 
81 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 net gearing ratio and 
a 30 per cent limit on the equity ratio. At the end of September, net gearing   
calculated in the manner defined in the borrowing agreements was approximately  
63 per cent, and the equity ratio approximately 37 per cent.                    

In September, M-real announced that in order to improve its profitability, the  
company is planning to transfer the Simpele speciality paper production to the  
Gohrsmühle mill in Germany and to close the Simpele paper machine. The potential
transfer of the production would improve M-real's operating result by           
approximately EUR 4 million. As a result of the planned closure of the Simpele  
paper mill, the fourth-quarter operating result is estimated to include a       
non-recurring expense of EUR 12 million.                                        

Tissue and Cooking Papers                                                       
Metsä Tissue's sales in January-September totalled EUR 692 million (661). The   
operating result excluding non-recurring items totalled EUR 45 million (72). The
operating result including non-recurring items was EUR 36 million (72). A       
non-recurring item of EUR 2 million related to the reorganisation of the Mänttä 
mill was recognised in the third quarter. A total of EUR 7 million was          
recognised as non-recurring provisions and write-downs related to the           
reorganisation of the Polish operations in the second quarter.                  

The third-quarter sales were EUR 236 million (Q3/09: 226), and the operating    
result excluding non-recurring items was EUR 13 million (Q3/09: 31).            

The operating result was burdened by the steep rise in the prices of pulp and   
recycled paper. The pulp price has increased by some 40 per cent since the end  
of 2009, and the price of recycled paper has almost doubled in Europe. However, 
successful hedging and price increases partially alleviated the negative effect.

After the reporting period, Metsä Tissue concluded the negotiations on the      
purchase of a speciality paper machine (PM5) and the related infrastructure     
assets from M-real's Reflex mill in Düren, Germany. The negotiations were
concluded in accordance with the letter of intent on the purchase signed in
June. The company 
intends to start the production of SAGA products at the Düren mill in the first 
half of 2011. In connection with the transaction, a total of 74 employees will  
transfer to Metsä Tissue.                                                       

In connection with the capacity increase in Germany, the company also launched  
statutory labour negotiations at the Mänttä mill. The negotiations were         
concluded in August and will result in a headcount reduction of 117 at the mill.
Production on PM7 will continue at the Mänttä mill, but otherwise the entire    
production of Baking & Cooking products and all converting will be transferred  
to Germany. The older machine, PM5, will be shut down.                          

Management remuneration                                                         
Members of the Metsäliitto Group Executive Management Team have established a   
company named Metsäliitto Management Oy. Through the company, the management has
invested EUR 3,850,000 of their own funds in M-real's B shares. In addition,    
some of the investments of the company in M-real's B shares have been financed  
by a EUR 15,400,000 loan granted by Metsäliitto Cooperative in August. The      
management themselves shoulder the ownership risk for the investment they make  
in the system. The purpose of the system is to encourage members of the         
Executive Management Team to acquire and own M-real Corporation's B shares and, 
through this, to increase the shareholder value of Metsäliitto Group in the long
term and support the achievement of the Group's strategic objectives.           

The system will remain in force until the end of 2013 and beginning of 2014, at 
which time the intention is to dismantle the system in a manner to be decided   
later. The system will be extended one year at a time if, in October-November   
2013, 2014, 2015 or 2016, the stock exchange price of M-real's B share is lower 
than the average price at which Metsäliitto Management acquired M-real's B      
shares it owns. The loan granted by Metsäliitto will be repaid in its entirety  
by 31 March 2014. If the validity of the system is continued one year at a time 
in 2013, 2014, 2015 or 2016, the loan period will be extended correspondingly.  

As of August 2010, the share ownership system replaces the previous share       
compensation system, under which the other management continues. Members of the 
Executive Management Team are not entitled to a potential share reward according
to the old share compensation system for the financial period 2010. If a member 
of the Executive Management Team resigns before the dismantling of the system,  
he/she is repaid the funds invested, but not any potential increase in value. If
the system shows a loss, a resigning member of the Executive Management Team    
only receives a calculated share of the capital.                                

A total of 6,790,887 M-real's B shares have been acquired through Metsäliitto   
Management, of which the President and CEO indirectly owns 1,763,867 shares and 
the other members of the Executive Management Team indirectly own 5,027,020     
shares.                                                                         

Metsäliitto Management Oy has been consolidated as a subsidiary in the financial
statements of Metsäliitto Group as from 30 September 2010.                      

Events after the period                                                         
On 26 October 2010, M-real and Metsä Tissue Corporation signed an agreement on  
the partial divestment of M-real's Reflex mill to Metsä Tissue for approximately
EUR 10 million. The deal will take effect at the beginning of November 2010. The
agreement covers paper machine 5 and related real estate, as well as certain    
infrastructure assets. Metsä Tissue will convert the paper machine to produce   
cooking papers.                                                                 

M-real will book a positive non-recurring item of approximately EUR 15 million  
in its operating result related to transaction proceeds and the partial reversal
of the personnel cost provisions announced earlier. EUR 8 million of this amount
was already booked in the third quarter of 2010. The EUR 7 million sales gain   
booked by M-real in the fourth quarter will be eliminated in Metsäliitto Group's
financial statements.                                                           

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.                                     

Near-term outlook                                                               
Metsäliitto continues to actively buy all timber grades. Purchases of stands    
marked for winter felling also started in October. Artificial regeneration is a 
highly topical issue in areas affected by storm damage in particular.           

The operating result of the Wood Products Industry, excluding non-recurring     
items, is expected to remain at the same level as in the previous quarter.      
Uncertainty has nevertheless increased in the demand for end products.          

The pulp mills shut down after the Chilean earthquake are back in production,   
and the supply of pulp will increase by the year-end as old pulp capacity will  
be brought back online in Canada. The market price for pulp is expected to      
decrease, and the profitability is weakened also by the exchange rate of the US 
dollar. The market situation is, however, expected to remain relatively stable, 
and Metsä-Botnia is expected to report a good result also for the last quarter  
of the year.                                                                    

The growth in the demand for tissue and cooking papers is expected to continue. 
High pulp prices, rapid increases in the price of recycled paper and the rise in
other production costs will cause major cost pressure also in the future.       

The demand for board is expected to also remain good within the next few months.
The annual agreement negotiations for board have mainly been concluded for 2011,
with the targeted price increases successfully pushed through. The impact of the
increases on the result will be visible from the beginning of 2011. The price   
levels of M-real's folding boxboard and liners have increased more than 10 per  
cent compared to the beginning of the year after increasing the prices in       
Europe.                                                                         

The demand for office paper is likely to remain good, and further efforts will  
be made to increase prices. While the demand for speciality papers is expected  
to remain stable, no major changes are expected in the price level.             

Metsäliitto Group estimates that the operating result of the fourth quarter     
excluding non-recurring items will be lower than in the third quarter due to    
seasonal fluctuation and the strengthening of the euro against the US dollar.   


Espoo, 27 October 2010                                                          

Metsäliitto Group                                                               
Board of Directors                                                              





Further information:                                                            
Vesa-Pekka Takala, Group CFO, Metsäliitto Group, tel. +358 10 465 4260          
Anne-Mari Achrén, Group CCO, Metsäliitto Group, tel. +358 10 465 4541           

Unaudited                                                                       

METSÄLIITTO GROUP                                                               
--------------------------------------------------------------------------------
| Condensed consolidated     |  2010 |  2009 | Change |  2010 |  2009 |   2009 |
| statement                  |   1-9 |   1-9 |        |    Q3 |    Q3 |   1-12 |
| of comprehensive income,   |       |       |        |       |       |        |
| EUR mill.                  |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Continuing operations      |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Sales                      | 3 986 | 3 647 |    339 | 1 345 | 1 155 |  4 837 |
--------------------------------------------------------------------------------
| Other operating income     |    98 |   115 |    -17 |    51 |    31 |    353 |
--------------------------------------------------------------------------------
| Operating expenses         |    -3 |    -3 |    211 |    -1 |    -1 | -4 858 |
|                            |   461 |   672 |        |   157 |   103 |        |
--------------------------------------------------------------------------------
| Depreciation and           |  -207 |  -277 |     70 |   -70 |   -76 |   -501 |
| impairment losses          |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Operating result           |   415 |  -186 |    602 |   170 |     7 |   -169 |
--------------------------------------------------------------------------------
| Share of results in        |   -14 |   -11 |     -3 |    -1 |    -1 |    -16 |
| associated companies       |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Exchange gains and losses  |    -6 |     1 |     -7 |    -6 |     4 |      2 |
--------------------------------------------------------------------------------
| Other net financial items  |  -103 |  -113 |     11 |   -35 |   -63 |   -147 |
--------------------------------------------------------------------------------
| Result before income tax   |   293 |  -310 |    603 |   128 |   -53 |   -329 |
--------------------------------------------------------------------------------
| Income taxes               |  -102 |    19 |   -121 |   -39 |    -6 |     10 |
--------------------------------------------------------------------------------
| Result for the period      |   191 |  -291 |    482 |    89 |   -59 |   -318 |
| from continuing operations |       |       |        |       |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Discontinued operations    |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Result from discontinued   |     0 |   -15 |     15 |     0 |    -2 |    -23 |
| operations                 |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Result for the period      |   191 |  -306 |    497 |    89 |   -61 |   -342 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Other comprehensive income |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Cash flow hedges           |     6 |    24 |    -18 |     7 |    10 |     35 |
--------------------------------------------------------------------------------
| Available for sale         |    37 |  -101 |    138 |    13 |    27 |   -103 |
| financial assets           |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Currency translation       |    17 |   -25 |     42 |    -1 |   -22 |    -15 |
| differences                |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Other items                |     0 |     0 |      0 |     0 |     0 |      0 |
--------------------------------------------------------------------------------
| Income tax relating to     |    -6 |    23 |    -29 |    -5 |    -8 |     23 |
| components                 |       |       |        |       |       |        |
| of other comprehensive     |       |       |        |       |       |        |
| income                     |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Other comprehensive        |    54 |   -78 |    133 |    14 |     7 |    -60 |
| income,                    |       |       |        |       |       |        |
| net of tax                 |       |       |        |       |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Total comprehensive income |   245 |  -384 |    630 |   103 |   -55 |   -402 |
| for the period             |       |       |        |       |       |        |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result attributable to:    |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Members of parent company  |   139 |  -140 |    279 |    61 |   -20 |   -116 |
--------------------------------------------------------------------------------
| Non-controlling interests  |    52 |  -166 |    218 |    28 |   -41 |   -226 |
--------------------------------------------------------------------------------
|                            |   191 |  -306 |    497 |    89 |   -61 |   -342 |
--------------------------------------------------------------------------------
| Total comprehensive income |       |       |        |       |       |        |
| attributable to:           |       |       |        |       |       |        |
--------------------------------------------------------------------------------
| Members of parent company  |   167 |  -178 |    345 |    64 |   -22 |   -150 |
--------------------------------------------------------------------------------
| Non-controlling interests  |    79 |  -206 |    285 |    39 |   -33 |   -252 |
--------------------------------------------------------------------------------
|                            |   245 |  -384 |    630 |   103 |   -55 |   -402 |
--------------------------------------------------------------------------------
Unaudited                                                                       
--------------------------------------------------------------------------------
| Condensed consolidated balance sheet     |      2010 |      2009 |      2009 |
|                                          |      30.9 |      30.9 |    31.12. |
--------------------------------------------------------------------------------
| ASSETS                                   |           |           |           |
--------------------------------------------------------------------------------
| Non-current                              |           |           |           |
--------------------------------------------------------------------------------
| Goodwill                                 |       506 |       168 |       493 |
--------------------------------------------------------------------------------
| Other intangible assets                  |       244 |        73 |       245 |
--------------------------------------------------------------------------------
| Tangible assets                          |     2 346 |     2 110 |     2 428 |
--------------------------------------------------------------------------------
| Biological assets                        |         8 |         5 |         7 |
--------------------------------------------------------------------------------
| Investments in associated companies      |        81 |       101 |        98 |
--------------------------------------------------------------------------------
| Available for sale investments           |       346 |       355 |       356 |
--------------------------------------------------------------------------------
| Non-current financial assets             |        17 |        10 |        12 |
--------------------------------------------------------------------------------
| Deferred tax receivables                 |        63 |        70 |        58 |
--------------------------------------------------------------------------------
|                                          |     3 611 |     2 892 |     3 697 |
--------------------------------------------------------------------------------
| Current                                  |           |           |           |
--------------------------------------------------------------------------------
| Inventories                              |       772 |       619 |       669 |
--------------------------------------------------------------------------------
| Accounts receivables and other           |       893 |       800 |       797 |
| receivables                              |           |           |           |
--------------------------------------------------------------------------------
| Cash and cash equivalents                |       473 |       470 |       558 |
--------------------------------------------------------------------------------
|                                          |     2 138 |     1 889 |     2 024 |
--------------------------------------------------------------------------------
| Assets classified as held for sale       |        13 |       722 |         9 |
--------------------------------------------------------------------------------
| Total assets                             |     5 762 |     5 503 |     5 730 |
--------------------------------------------------------------------------------
| MEMBERS' FUNDS AND LIABILITIES           |           |           |           |
--------------------------------------------------------------------------------
| Members' funds                           |           |           |           |
--------------------------------------------------------------------------------
| Members' funds                           |     1 089 |       834 |       927 |
--------------------------------------------------------------------------------
| Non-controlling interests                |       524 |       478 |       471 |
--------------------------------------------------------------------------------
|                                          |     1 614 |     1 312 |     1 399 |
--------------------------------------------------------------------------------
| Non-current liabilities                  |           |           |           |
--------------------------------------------------------------------------------
| Deferred tax liabilities                 |       403 |       258 |       382 |
--------------------------------------------------------------------------------
| Post-employment benefit obligations      |       113 |       124 |       122 |
--------------------------------------------------------------------------------
| Provisions                               |        72 |        54 |        76 |
--------------------------------------------------------------------------------
| Borrowings                               |     1 650 |     2 373 |     1 976 |
--------------------------------------------------------------------------------
| Other liabilities                        |        39 |        45 |       134 |
--------------------------------------------------------------------------------
|                                          |     2 278 |     2 854 |     2 689 |
--------------------------------------------------------------------------------
| Current liabilities                      |           |           |           |
--------------------------------------------------------------------------------
| Provisions                               |        25 |        28 |        52 |
--------------------------------------------------------------------------------
| Current borrowings                       |       827 |       327 |       798 |
--------------------------------------------------------------------------------
| Accounts payable and other liabilities   |     1 018 |       747 |       787 |
--------------------------------------------------------------------------------
|                                          |     1 870 |     1 102 |     1 637 |
--------------------------------------------------------------------------------
| Liabilities classified as held for sale  |         - |       235 |         6 |
--------------------------------------------------------------------------------
| Total liabilities                        |     4 148 |     4 191 |     4 331 |
--------------------------------------------------------------------------------
| Total members' funds and liabilities     |     5 762 |     5 503 |     5 730 |
--------------------------------------------------------------------------------
Non-current portion of derivative financial instruments have been transferred to
non-current financial assets from accounts receivables and other receivables    
(QIII/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 (QIII/09: EUR 29 mill. and QIV/09: EUR 19
mill.).                                                                         




Unaudited		                    Equity attributable to members of parent company 
--------------------------------------------------------------------------------
| Change in        | Membe | Shar | Tra |  Fair | Retai | Tota | Non-co | Tota |
| members' funds   |   rs' |    e | ns- | value |  ned  |    l | ntroll |    l |
| EUR million      | capit | prem | lat |   and | earni |      |   ing  |      |
|                  |    al |  ium | ion | other |  ngs  |      | intere |      |
|                  |       | acco | dif | reser |       |      |    sts |      |
|                  |       |  unt | fer |   ves |       |      |        |      |
|                  |       |      |   - |       |       |      |        |      |
|                  |       |      | enc |       |       |      |        |      |
|                  |       |      |  es |       |       |      |        |      |
--------------------------------------------------------------------------------
| Members' funds   |   585 |   30 |  -5 |   165 |   329 |    1 |    682 |    1 |
| 1.1.2009         |       |      |     |       |       |  104 |        |  786 |
--------------------------------------------------------------------------------
| Result for the   |       |      |     |       |  -140 | -140 |   -166 | -306 |
| period           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Other            |       |      |     |       |       |      |        |      |
| comprehensive    |       |      |     |       |       |      |        |      |
| income           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Cash flow hedges |       |      |     |    10 |       |   10 |     15 |   24 |
--------------------------------------------------------------------------------
| Available for    |       |      |     |   -44 |       |  -44 |    -57 | -101 |
| sale financial   |       |      |     |       |       |      |        |      |
| assets           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Currency         |       |      | -14 |       |       |  -14 |    -10 |  -25 |
| translation      |       |      |     |       |       |      |        |      |
| differences      |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
|  Other items     |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Income tax       |       |      |   1 |     9 |       |   10 |     13 |   23 |
| relating to      |       |      |     |       |       |      |        |      |
| components       |       |      |     |       |       |      |        |      |
| of other         |       |      |     |       |       |      |        |      |
| comprehensive    |       |      |     |       |       |      |        |      |
| income           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions     |       |      |     |       |       |      |        |      |
| with owners      |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
|  Dividends paid  |       |      |     |       |   -34 |  -34 |     -1 |  -35 |
--------------------------------------------------------------------------------
| Change in        |   -59 |      |     |       |       |  -59 |        |  -59 |
| members' capital |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Change in share  |       |      |     |       |       |      |        |      |
| premium account  |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Transfer from    |       |      |     |       |       |      |        |      |
| unrestricted to  |       |      |     |       |       |      |        |      |
| restricted       |       |      |     |       |       |      |        |      |
| equity           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Business         |       |      |   2 |    -2 |       |    0 |      4 |    4 |
| arrangements     |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Members' funds   |   526 |   30 | -15 |   138 |   155 |  834 |    478 |    1 |
| 30.9.2009        |       |      |     |       |       |      |        |  312 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Members' funds   |   484 |   30 |   9 |   221 |   184 |  927 |    471 |    1 |
| 1.1.2010         |       |      |     |       |       |      |        |  399 |
--------------------------------------------------------------------------------
| Result for the   |       |      |     |       |   139 |  139 |     52 |  191 |
| period           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Other            |       |      |     |       |       |      |        |      |
| comprehensive    |       |      |     |       |       |      |        |      |
| income           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Cash flow hedges |       |      |     |     5 |       |    5 |      1 |    6 |
--------------------------------------------------------------------------------
| Available for    |       |      |     |    15 |       |   15 |     22 |   37 |
| sale financial   |       |      |     |       |       |      |        |      |
| assets           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Currency         |       |      |  11 |       |       |   11 |      6 |   17 |
| translation      |       |      |     |       |       |      |        |      |
| differences      |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
|  Other items     |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Income tax       |       |      |   1 |    -5 |       |   -4 |     -2 |   -6 |
| relating to      |       |      |     |       |       |      |        |      |
| components       |       |      |     |       |       |      |        |      |
| of other         |       |      |     |       |       |      |        |      |
| comprehensive    |       |      |     |       |       |      |        |      |
| income           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Transactions     |       |      |     |       |       |      |        |      |
| with owners      |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
|  Dividends paid  |       |      |     |       |   -29 |  -29 |     -4 |  -33 |
--------------------------------------------------------------------------------
| Change in        |    29 |      |     |       |       |   29 |        |   29 |
| members' capital |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Change in share  |       |    1 |     |       |       |    1 |        |    1 |
| premium account  |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Transfer from    |       |      |     |     9 |    -9 |    0 |        |    0 |
| unrestricted to  |       |      |     |       |       |      |        |      |
| restricted       |       |      |     |       |       |      |        |      |
| equity           |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Business         |       |      |     |       |    -6 |   -6 |    -22 |  -28 |
| arrangements     |       |      |     |       |       |      |        |      |
--------------------------------------------------------------------------------
| Members' funds   |   514 |   31 |  21 |   245 |   279 |    1 |    524 |    1 |
| 30.9.2010        |       |      |     |       |       |  089 |        |  614 |
--------------------------------------------------------------------------------



Unaudited			                                                                    
--------------------------------------------------------------------------------
| Condensed consolidated cash flow          |     2010 |      2009 |      2009 |
| statement                                 |      1-9 |       1-9 |      1-12 |
--------------------------------------------------------------------------------
| Result for the period                     |      191 |      -306 |      -342 |
--------------------------------------------------------------------------------
| Total adjustments                         |      348 |       339 |       469 |
--------------------------------------------------------------------------------
| Change in working capital                 |     -150 |       173 |       231 |
--------------------------------------------------------------------------------
| Cash flow arising from operations         |      388 |       206 |       359 |
--------------------------------------------------------------------------------
| Net financial items                       |     -110 |        -9 |       -84 |
--------------------------------------------------------------------------------
| Income taxes paid                         |      -24 |         6 |         0 |
--------------------------------------------------------------------------------
| Net cash flow arising from operating      |      255 |       204 |       275 |
| activities                                |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Acquisitions                              |      -21 |        -4 |      -496 |
--------------------------------------------------------------------------------
| Investments in tangible and               |      -89 |      -112 |      -152 |
| intangible assets                         |          |           |           |
--------------------------------------------------------------------------------
| Divestments of assets and other           |       69 |       346 |       940 |
--------------------------------------------------------------------------------
| Net cash flow arising from investing      |      -42 |       229 |       291 |
| activities                                |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Change in members' funds                  |       29 |       -59 |       -57 |
--------------------------------------------------------------------------------
| Change in other equity                    |        4 |           |           |
--------------------------------------------------------------------------------
| Change in long-term loans                 |     -293 |      -438 |      -530 |
| and other financial items                 |          |           |           |
--------------------------------------------------------------------------------
| Dividends paid                            |      -40 |       -40 |       -40 |
--------------------------------------------------------------------------------
| Net cash flow arising from financing      |     -299 |      -536 |      -626 |
| activities                                |          |           |           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Changes in cash and cash equivalents      |      -87 |      -103 |       -60 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Cash and cash equivalents at beginning of |      558 |       619 |       619 |
| period                                    |          |           |           |
--------------------------------------------------------------------------------
| Translation difference                    |        2 |        -1 |        -1 |
--------------------------------------------------------------------------------
| Changes in cash and cash equivalents      |      -87 |      -103 |       -60 |
--------------------------------------------------------------------------------
| Cash and cash equivalents                 |        0 |       -45 |        -1 |
| in assets classified as held for sale     |          |           |           |
--------------------------------------------------------------------------------
| Cash and cash equivalents at end of       |      473 |       470 |       558 |
| period                                    |          |           |           |
--------------------------------------------------------------------------------

Unaudited                                                                       
BUSINESS SEGMENTS                                                               
--------------------------------------------------------------------------------
| Wood Supply              |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales                    |     988 |     809 |     318 |      232 |    1 101 |
--------------------------------------------------------------------------------
| EBITDA                   |      20 |      11 |       4 |        0 |       -5 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      20 |      11 |       4 |        0 |       16 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |      -3 |      -3 |      -1 |       -1 |       -4 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |      17 |       8 |       3 |       -1 |       -9 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      17 |       8 |       3 |       -1 |       12 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |       2 |       1 |       2 |        1 |        2 |
--------------------------------------------------------------------------------
| Personnel at end of      |   1 071 |     951 |   1 071 |      951 |      945 |
| period                   |         |         |         |          |          |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Wood Products Industry   |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales                    |     678 |     613 |     231 |      188 |      806 |
--------------------------------------------------------------------------------
| EBITDA                   |      48 |      -9 |      20 |        7 |       -2 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      42 |      -9 |      13 |        7 |       -2 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |     -27 |     -29 |      -9 |      -10 |      -45 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |      21 |     -38 |      11 |       -3 |      -47 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      16 |     -38 |       5 |       -3 |      -41 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |      12 |       7 |       6 |        4 |       10 |
--------------------------------------------------------------------------------
| Personnel at end of      |   2 784 |   3 124 |   2 784 |    3 124 |    3 110 |
| period                   |         |         |         |          |          |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Pulp Industry            |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales                    |   1 000 |     898 |     344 |      313 |    1 195 |
--------------------------------------------------------------------------------
| EBITDA                   |     328 |     -13 |     131 |       25 |      366 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     337 |       5 |     131 |       25 |       71 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |     -45 |    -149 |     -17 |      -23 |     -173 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |     283 |    -162 |     114 |        2 |      193 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     281 |     -87 |     114 |        2 |      -43 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |       8 |      45 |       4 |       26 |       53 |
--------------------------------------------------------------------------------
| Personnel at end of      |     936 |   1 633 |     936 |    1 633 |    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 |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales                    |   1 940 |   1 826 |     662 |      618 |    2 432 |
--------------------------------------------------------------------------------
| EBITDA                   |     238 |     -44 |      95 |       27 |       88 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     234 |      -7 |      85 |       26 |       44 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |     -88 |    -171 |     -29 |      -50 |     -356 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |     150 |    -215 |      66 |      -24 |     -267 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     136 |    -157 |      54 |      -22 |     -150 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |      48 |      55 |      31 |       23 |       73 |
--------------------------------------------------------------------------------
| Personnel at end of      |   4 682 |   5 649 |   4 682 |    5 649 |    4 903 |
| period                   |         |         |         |          |          |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Tissue and Cooking       |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
| Papers                   |         |         |         |          |          |
--------------------------------------------------------------------------------
| Sales                    |     692 |     661 |     236 |      226 |      890 |
--------------------------------------------------------------------------------
| EBITDA                   |      70 |     103 |      21 |       42 |      135 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      75 |     103 |      23 |       42 |      135 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |     -34 |     -31 |     -10 |      -11 |      -42 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |      36 |      72 |      11 |       31 |       93 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      45 |      72 |      13 |       31 |       93 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |      18 |      18 |       7 |        8 |       35 |
--------------------------------------------------------------------------------
| Personnel at end of      |   3 105 |   3 213 |   3 105 |    3 213 |    3 150 |
| period                   |         |         |         |          |          |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Other operations         |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales                    |       3 |     167 |       1 |        3 |      170 |
--------------------------------------------------------------------------------
| EBITDA                   |      -6 |      49 |      -2 |        2 |       69 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      -5 |      21 |      -1 |        2 |       21 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |      -1 |     -10 |       0 |        0 |      -11 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |      -7 |      39 |      -3 |        2 |       59 |
--------------------------------------------------------------------------------
| - ” -, excl.             |      -6 |      11 |      -1 |        2 |       11 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |      22 |      22 |      20 |        0 |      516 |
--------------------------------------------------------------------------------
| Personnel at end of      |     450 |     395 |     450 |      395 |      378 |
| period                   |         |         |         |          |          |
--------------------------------------------------------------------------------
Other operations include Vapo Group (49.9%) until June 24, 2009 and             
Metsäliitto's service and holding functions as well as Metsäliitto Management   
Oy.                                                                             

--------------------------------------------------------------------------------
| Internal sales           |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
| and eliminations         |         |         |         |          |          |
--------------------------------------------------------------------------------
| Sales                    |  -1 314 |  -1 327 |    -446 |     -425 |   -1 758 |
--------------------------------------------------------------------------------
| EBITDA                   |     -75 |      -7 |     -29 |      -19 |     -319 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     -74 |       0 |     -30 |      -18 |      -40 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |      -9 |     117 |      -3 |       18 |      129 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |     -84 |     110 |     -32 |        0 |     -190 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     -83 |      72 |     -32 |        1 |       45 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| Metsäliitto Group        |  1-9/10 |  1-9/09 |   Q3/10 |    Q3/09 | QI-IV/09 |
--------------------------------------------------------------------------------
| Sales                    |   3 986 |   3 647 |   1 345 |    1 155 |    4 837 |
--------------------------------------------------------------------------------
| EBITDA                   |     623 |      90 |     239 |       83 |      332 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     630 |     124 |     227 |       84 |      246 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Depreciation and         |    -207 |    -277 |     -70 |      -76 |     -501 |
| impairment               |         |         |         |          |          |
--------------------------------------------------------------------------------
| Operating result         |     415 |    -186 |     170 |        7 |     -169 |
--------------------------------------------------------------------------------
| - ” -, excl.             |     405 |    -119 |     155 |        9 |      -75 |
| non-recurring items      |         |         |         |          |          |
--------------------------------------------------------------------------------
| Capital expenditure      |     110 |     116 |      69 |       42 |      648 |
--------------------------------------------------------------------------------
| Personnel at end of      |  13 028 |  13 708 |  13 028 |   13 708 |   13 592 |
| period                   |         |         |         |          |          |
--------------------------------------------------------------------------------

EBITDA = Operating result before depreciation and impairment losses.            
Unaudited                                                                       
--------------------------------------------------------------------------------
| Quarterly data          | 2010 | 2010 | 2010 |  2009 |  2009 |  2009 |  2009 |
|                         | QIII |  QII |   QI |   QIV |  QIII |   QII |    QI |
--------------------------------------------------------------------------------
| Sales                   |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
|  Wood Supply            |  318 |  337 |  333 |   292 |   232 |   251 |   327 |
--------------------------------------------------------------------------------
|  Wood Products Industry |  231 |  256 |  192 |   193 |   188 |   224 |   202 |
--------------------------------------------------------------------------------
|  Pulp Industry          |  344 |  368 |  288 |   297 |   313 |   282 |   303 |
--------------------------------------------------------------------------------
| Board and Paper         |  662 |  676 |  602 |   606 |   618 |   585 |   623 |
| Industry                |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Tissue and Cooking      |  236 |  231 |  225 |   229 |   226 |   217 |   218 |
| Papers                  |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
|  Other operations       |    1 |    2 |    0 |     4 |     3 |    72 |    92 |
--------------------------------------------------------------------------------
| Internal sales and      | -446 | -454 | -415 |  -431 |  -425 |  -418 |  -487 |
| eliminations            |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Sales total             |    1 |    1 |    1 | 1 190 | 1 155 | 1 213 | 1 278 |
|                         |  345 |  416 |  224 |       |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating result        |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
|  Wood Supply            |    3 |    8 |    7 |   -17 |    -1 |     4 |     5 |
--------------------------------------------------------------------------------
|  Wood Products Industry |   11 |   11 |   -2 |    -9 |    -3 |   -10 |   -25 |
--------------------------------------------------------------------------------
|  Pulp Industry          |  114 |  112 |   57 |   355 |     2 |   -42 |  -122 |
--------------------------------------------------------------------------------
| Board and Paper         |   66 |   35 |   49 |   -52 |   -24 |   -73 |  -117 |
| Industry                |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Tissue and Cooking      |   11 |    5 |   19 |    21 |    31 |    22 |    19 |
| Papers                  |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
|  Other operations       |   -3 |   -2 |   -2 |    20 |     2 |    27 |    10 |
--------------------------------------------------------------------------------
|  Eliminations           |  -32 |  -29 |  -23 |  -300 |     0 |    16 |    94 |
--------------------------------------------------------------------------------
| Operating result total  |  170 |  141 |  105 |    18 |     7 |   -56 |  -137 |
--------------------------------------------------------------------------------
|    - % of sales         | 12.6 | 10.0 |  8.6 |   1.5 |   0.6 |  -4.6 | -10.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share of results in     |   -1 |   -7 |   -6 |    -4 |    -1 |    -8 |    -2 |
| associated companies    |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Exchange gains and      |   -6 |    2 |   -2 |     2 |     4 |    -1 |    -2 |
| losses                  |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Other net financial     |  -35 |  -34 |  -34 |   -34 |   -63 |   -30 |   -20 |
| items                   |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Result before income    |  128 |  102 |   64 |   -18 |   -53 |   -95 |  -163 |
| tax                     |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Income tax              |  -39 |  -40 |  -24 |    -9 |    -6 |     7 |    19 |
--------------------------------------------------------------------------------
| Result from continuing  |   89 |   62 |   40 |   -27 |   -59 |   -88 |  -144 |
| operations              |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Result from             |    0 |    0 |    0 |    -9 |    -2 |    -3 |   -10 |
| discontinued operations |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Result for the period   |   89 |   62 |   40 |   -36 |   -61 |   -91 |  -153 |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| Operating result excl.  | QIII | QII/ | QI/1 | QIV/0 | QIII/ | QII/0 | QI/09 |
| non-rec. items          |  /10 |   10 |    0 |     9 |    09 |     9 |       |
--------------------------------------------------------------------------------
|  Wood Supply            |    3 |    8 |    7 |     4 |    -1 |     4 |     5 |
--------------------------------------------------------------------------------
|  Wood Products Industry |    5 |   11 |    0 |    -3 |    -3 |   -10 |   -25 |
--------------------------------------------------------------------------------
|  Pulp Industry          |  114 |  110 |   57 |    44 |     2 |   -42 |   -47 |
--------------------------------------------------------------------------------
| Board and Paper         |   54 |   43 |   39 |     7 |   -22 |   -70 |   -65 |
| Industry                |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Tissue and Cooking      |   13 |   12 |   19 |    21 |    31 |    22 |    19 |
| Papers                  |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Other operations &      |  -34 |  -31 |  -25 |   -28 |     3 |    35 |    46 |
| eliminations            |      |      |      |       |       |       |       |
--------------------------------------------------------------------------------
| Operating result total  |  155 |  154 |   96 |    44 |     9 |   -61 |   -67 |
--------------------------------------------------------------------------------

Unaudited                                                                       
--------------------------------------------------------------------------------
| Change in tangible assets              | QI-III/10 |  QI-III/09 |   QI-IV/09 |
--------------------------------------------------------------------------------
| Book value at beginning of period      |     2 428 |      2 958 |      2 958 |
--------------------------------------------------------------------------------
| Business acquisitions                  |         - |          1 |        472 |
--------------------------------------------------------------------------------
| Investments                            |        88 |        105 |        143 |
--------------------------------------------------------------------------------
| Decrease                               |       -14 |       -256 |       -772 |
--------------------------------------------------------------------------------
| Assets classified as held for sale     |       -11 |       -434 |         -3 |
--------------------------------------------------------------------------------
| Depreciation and impairment charges    |      -195 |       -262 |       -449 |
--------------------------------------------------------------------------------
| Translation differences and other      |        50 |         -2 |         78 |
| changes                                |           |            |            |
--------------------------------------------------------------------------------
| Book value at end of period            |     2 346 |      2 110 |      2 428 |
--------------------------------------------------------------------------------

In September 2010, assets classified as held for sale include part of the former
equipment of Metsä-Botnia's Kaskinen pulp mill, shut down in 2009.              

In September 2010, depreciation and impairment charges include the 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; the reversal of the impairment loss (EUR -3 million)
related to the machine in M-real Zander's Reflex mill based on the agreed       
partial sale of the mill to Metsä Tissue. Depreciation and impairment charges   
also include the write-down related to the reorganisation of Metsä Tissue's     
Polish operations (EUR 4 million).                                              

In September 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           
battenboard mill.                                                               

--------------------------------------------------------------------------------
| Commitments                            |   QIII/10 |    QIII/09 |     QIV/09 |
--------------------------------------------------------------------------------
| On own behalf (incl. leasing           |       567 |        344 |        456 |
| liabilities)                           |           |            |            |
--------------------------------------------------------------------------------
| On behalf of associated companies      |         4 |          5 |          6 |
--------------------------------------------------------------------------------
| On behalf of others                    |         3 |          6 |          4 |
--------------------------------------------------------------------------------
| Total                                  |       575 |        354 |        466 |
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
| Open derivative contracts              |   QIII/10 |    QIII/09 |     QIV/09 |
--------------------------------------------------------------------------------
| Interest rate derivatives              |       988 |        974 |        831 |
--------------------------------------------------------------------------------
| Currency derivatives                   |     1 640 |      2 010 |      1 766 |
--------------------------------------------------------------------------------
| Other derivatives                      |       217 |        379 |        254 |
--------------------------------------------------------------------------------
| Total                                  |     2 844 |      3 363 |      2 850 |
--------------------------------------------------------------------------------
The market value of open derivative contracts at the end of the review period   
was EUR -41 million (QIV/09: EUR -28 million). Open derivative contracts also   
include closed contracts to a total amount of EUR 422 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 employed (%) |    = | (Result from continuing operations   |
|                                |      | before tax + 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)                     |
--------------------------------------------------------------------------------

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