Metsä Board deepens its focuson paperboards

Mika Joukio, CEO, Metsä BoardDrupa press conference1 June, 2016

• About Metsä Board

• Market drivers and outlook

• Investments at Husum mill

• New Carta Dedica food

service boards

• Summary

3

My topics today:

About Metsä Board

• Leading European producer of lightweight folding

boxboards and white linerboards made from fresh

forest fibres

• Global sales network supporting customers,

including brand owners, converters and merchants

• Sales EUR 2.0 billion and approximately 2,600

employees (2015)

• Part of Metsä Group

• Listed on the Nasdaq Helsinki

5

Metsä Board in brief

• In consumer goods packaging perception and product safety are key differentiators

• In retail-ready packaging the focus is on colour and strength

• In food service packaging convenience and recyclability are essential

6

Our paperboards function for

consumers and at the point of sale

Our production units are

in Finland and Sweden

PAPERBOARD MILLS

• Husum, Sweden*400 000 t/a FBB

300 000 t/a linerboard

• Kemi, Finland410 000 t/a linerboard

• Kyro, Finland190 000 t/a FBB

100 000 t/a wallpaper base

• Simpele, Finland280 000 t/a FBB

• Tako, Finland210 000 t/a FBB

• Äänekoski, Finland240 000 t/a FBB

PULP MILLS

• Husum, Sweden750 000 t/a bleached kraft pulp

• Joutseno, Finland320 000 t/a BCTMP

• Kaskinen, Finland320 000 t/a BCTMP

* Paper production to be ceased in 2016

FBB = folding boxboard

HUSUM

ÄÄNEKOSKI

SIMPELE

TAKO

KYRO

JOUTSENO

KASKINEN

KEMI

Market drivers and outlook

GLOBALISATION TECHNOLOGY SUSTAINABILITY CONSUMPTION

Metsä Board is responding to changes in the

business environment

• Growing

importance of

logistics

• New innovations

utilising wood

fibre and other

biomaterials

• Greater

significance of

resource

efficiency

• Stronger

demand for

sustainable

packaging

Fresh forest fibre paperboards are in good demand

The global packaging market is USD 800 billion

10

Estimated average annual growth rate of fresh forest fibre paperboard

demand is 3–4% globally

Fresh forest fibre paperboard

Other wood fibre based materials

Non-fibre based materials 0

20

40

60

80

100

120

140

2013 2014 2015 2018E

US

D b

n

Sources: Metsä Board estimates and Smithers Pira

• Purity and safetyrequirements are keydrivers for fresh fibrepaperboards

• Fresh forest fibre is a renewable rawmaterial

Investments at Husum millin Sweden

• EUR 170 million investment programme at Metsä

Board Husum mill completed

• Capacity of the new BM1 is 400 000 t/a of folding

boxboard and food service board

– Full run-rate by the end of the year

• Volumes targeted at the Americas as well as at food

service end-uses globally

• New BM1 allows us to optimise production at our mills

in Finland improving overall availability

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The most modern folding boxboard

machine in Europe

• The main suppliers have been chosen and the project

is proceeding

• Coming on-line during the first half of 2017

• Value of the extrusion coating line and related

infrastructure approx. EUR 38 million

• Currently PE is the most common barrier against

moisture and grease in e.g. food and food service

packaging

• We continue development work on other barrier

solutions including bio-based materials

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Progressing with a new extrusion

coating line at Husum mill

New Carta Dedicafood service boards

• Busy lifestyles and changes in eating habits are

increasing demand for food service boards

• Carta Dedica product family developed for cups,

plates, bowls, trays and other food service

packaging

– A sustainable alternative to plastics

– Produced at our Husum mill in Sweden

• Available already as PE-coated

– Coated by external partners

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Carta Dedica food service boards

for the world on the move

Summary

• The new folding boxboard machine

at Husum completed Metsä Board’s

transfer to a true paperboard

company

• Now we concentrate solely on

paperboards made from pure fresh

forest fibres

• The rest of our paper production will

end in 2016

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A true paperboard

company