Exceptional circumstances highlight the strength of our product portfolioJussi NoponenCFO, Metsä Board

M E T S Ä B O A R D C A P I T A L M A R K E T S D A Y 2 0 2 0

The current market environment is favourable for our profitability

We aim to maintain

balanced capital allocation and a strong financial

position

Profitability has improved at

Husum

2

Delivering solid performance in profitabilityOur commitment from 2018 CMD

3

TOPICSWe have delivered good profitability1

2

3

Our financial position continues to be strongtoday

Life after COVID-19 brings new business opportunities

4

0

200

400

600

800

1000

1200

0

50

100

150

200

250

300

2015 2016 2017 2018 2019 LTM

Metsä Board's comparable operating result European SW pulp PIX price, 12 months avg.

Good development in paperboard but negative impact from declining market pulp pricesProfitability improvement target in Husum 2016–2019 fully achieved

EUR million

USD/ tonne

69 62 34

5941

60

6443

60

39

0

50

100

150

200

250

2018 2019 2020

Strong demand in paperboards and cost efficiencyhave supported profitability in 2020…

Sales, quarterly EUR million

492 487 472

519 477 473

475 489

458 478

0

500

1000

1500

2000

2018 2019 2020

5

Comparable operating result, quarterlyEUR million and % of sales

EUR

milli

on

EUR

milli

on

FY 2018EUR 252 million margin: 13.0%

FY 2019EUR 184 million

margin: 9.5%

FY 2018EUR 1,944

million

FY 2019EUR 1,932

million

Operating margin:H1 2020: 10.0%H1 2019: 10.7%

Q4

Q3

Q2

Q1

Q4

Q3

Q2

Q1

0

50

100

150

200

250

2020 2021-2024 2025 2027

Bonds Loans from financial institutionsPension loans Finance lease liabilities

6

… and we have a healthy financial position

Maturity of interest-bearing debtMetsä Board’s credit ratings are investment grade:

S&P Global: BBB-/stable, Moody’s: Baa3/stable

EUR

milli

on

Debt and liquidity• Total interest-bearing debt

EUR 462 million • Liquidity EUR 353 million +

EUR 340 million1)

1) Liquid funds and investments of EUR 153 million and undrawn RCF of EUR 200 million, maturing in 2025, complemented by Metsä Group’s internal undrawn credit facility of EUR 150 million and pension premium funds of EUR 190 million

Husum investment financing • EUR 225 million in agreements signed before COVID-19 on very competitive terms • Most drawdowns after final investment decision

7

We are investing in sustainability

Planned investments for fossil-free mills

0

50

100

150

200

250

2015 2016 2017 2018 2019 2020E 2021E

Capex for growth and developmentMaintenance capexDepreciation

Capital expenditure and depreciation

FBB production line in Husum, 2015-2016

Pulp mill renewal in Husum 2019->

COVID-19 will impact consumer and corporate behaviour and create new business opportunities

Baseline:2-3% growth of premium paperboard packaging globally

COVID-19 pandemic is leading to lower growth of consumer purchasing power due to unemployment, higher taxes and higher savings rate

2020

E-COMMERCE IS GROWING and setting higher requirements for packaging strength

CONCERNS ABOUT SAFETY & HYGIENE remain, favouring packaging

SECURING SUPPLYCHAINS, driven by automation, shifts packaging demand partly back to Europe and North America

Accelerated decline of graphic papers and increasing e-commerce REDUCE THE AVAILABILITY OF RECYCLED FIBRES

8

COVID-19 will impact consumer and corporate behaviour and create new business opportunities

2-3% growth

2020

E-COMMERCE IS GROWING

CONCERNS ABOUT SAFETY & HYGIENE

SECURING SUPPLYCHAINS

REDUCED AVAILABILITY OF RECYCLED FIBRES

9

Solid paperboard

business and strong

financial position

We invest to maintain our

leadership in sustainability

Exceptional business

environment creates

challenges and opportunities

Summary