Debt Investor Presentation 3Q 2013 6.11. 2013 Mets Board Mets - PowerPoint PPT Presentation

Debt Investor Presentation 3Q 2013 6.11. 2013 Metsä Board Metsä Group

Good Financial Situation Continues Net Debt, m€ ‒ Gross debt 748 m€, cash and interest bearing receivables 4000 3693 126 m€ and net debt 622 m€ 3500 ‒ 100 m€ RCF fully available 3000 2403 ‒ Metsä Board divested its 51% holding in 2500 Metsä Group Treasury to Metsäliitto Cooperative 2000 ‒ Net gearing 75%, equity ratio 38.4% at end 3Q 2013 1500 ‒ Average interest rate 5.5% at end 3Q 2013 1000 622 500 ‒ S&P upgraded Metsä Board’s credit rating from B- to B in August 0 3Q13 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2 Metsä Board Metsä Group

Agreement on Metsä Board’s Refinancing Signed in May 2012 ‒ 600 m€ term loan and revolving credit facility agreement with a syndicate of five banks and certain Finnish institutional investors ‒ This agreement was utilized to refinance the 500 m€ eurobond matured in April 2013 ‒ Facilities include a 100 m€ RCF available immediately and 500 m€ term loans available from late March 2013 ‒ Maturity of RCF is three years ‒ 150 m€ of term loans matures at end June 2014 and 350 m€ at end March 2016 ‒ The average financing cost of the facilities calculated for the entire loan period is 6.5 % 3 Metsä Board Metsä Group

Loans and Interest Rate At the end of 3Q 2013 ‒ Average maturity of long term loans 2,2 years ‒ Average interest rate of loans (including derivatives) 5,5 % ‒ Interest rate maturity of loans (including derivatives) 14,6 months ‒ Of the loans about 67 per cent was subject to variable interest rates and 33 per cent to fixed interest rates 4 Metsä Board Metsä Group

Long-T erm Interest Bearing Liabilities 7 % 4 % 22 % Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities 67 % Total 738 m€ 30.9.2013 5 Metsä Board Metsä Group

Interest Bearing Net Liabilities 30.9.2013 m€ ‒ Long-term 738 ‒ Short-term 10 Total interest bearing liabilities 748 ‒ Liquidity and interest bearing receivables 126 Interest bearing net liabilities 622 6 Metsä Board Metsä Group

Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 30.9.2013 m€ 400 366 Long-term interest bearing liabilities 350 Committed undrawn credit facilities 300 250 186 200 150 100 100 71 66 50 28 25 21 21 20 0 2013 2014 2015 2016 2017 2018 2019 >2 019 7 Metsä Board Metsä Group

Liquidity m€ Liquid funds Committed credit facilities 600 500 400 300 200 100 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13* *Divestment of 51 % in Metsä Group Treasury reduced the consolidated amount of cash at Metsä Board’s balance sheet 8 Metsä Board Metsä Group

Balance Sheet Ratios Equity Ratio Net gearing % % 38,7 40 120 33,2 103 33,3 32,4 35 31,2 31,1 100 27,9 30 75 74 73 73 70 69 80 25 20 60 15 40 10 20 5 0 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13* 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 *Divestment of 51 % in Metsä Group Treasury improved equity ratio by about 5 percentage points 9 Metsä Board Metsä Group

Debt Programs The following table sets forth the significant debt securities issued and outstanding of Metsä Board as at Sept. 30, 2013 Average Long-term borrowings Total amount Outstanding I nterest Rate (1) Maturity (currency in millions) USD 350 million Private Note Issue USD 350 USD 0 – – EUR 500 million Bond Issue EUR 500 EUR 0 – – Global Medium-Term Note Program EUR 1 500 EUR 0 – – Bridge Financing Faciility 2012 EUR 150 EUR 150 6,2 % 2014 Term Loan Facility 2012 EUR 350 EUR 350 6,5 % 2016 EUR 58 million bilateral loans EUR 58 EUR 58 1,8 % 2013-2015 EUR 28 million finance leases EUR 28 EUR 28 2,4 % 2013–2020 EUR 228 million pension loans EUR 228 EUR 162 4,7 % 2013–2020 Short-term funding programmes (Metsä Group Treasury) EUR 150 million domestic CP-program EUR 150 EUR 0 – – Average interest rate of all Metsä Board Group interest bearing liabilities including interest rate derivatives per 30.9.2013 is 5,5 %. The following table sets forth Metsä Board´s principal long-term liquidity reserves as at Sept. 30, 2013: Average Liquidity reserves Total amount Outstanding I nterest Rate (1) Maturity (EUR in millions) Revolving Credit Facility 2012 EUR 100 EUR 0 – 2015 Pension loan facilities EUR 228 EUR 162 4,7 % - (1) The average interest rates take into account outstanding interest rate swaps and amortised arrangement fees. 10 Metsä Board Metsä Group

Ratings’ History 2000 2007 S&P: Short term ratings lowered to A3, Moody’s: Downgrade to B3, negative outlook Long term ratings placed to credit watch S&P: Downgrade to B, negative outlook negative S&P: Downgrade to B-, stable outlook Moody’s: Long and short term ratings 2008 outlook changed from stable to negative S&P: Outlook to negative 2001 2009 S&P: Long term ratings lowered to BBB-, S&P: Downgrade to CCC+, negative outlook stable outlook Moody’s: Downgrade to Caa1, outlook negative Moody’s: Long and short term ratings 2010 lowered to Baa3/P3, negative outlook S&P: Outlook to stable 2003 Moody’s: Outlook to stable S&P: Downgrade to BB+, stable outlook S&P: Upgrade to B-, stable outlook Moody’s: Downgrade to Ba1, negative Moody’s: Upgrade to B3, outlook to positive outlook 2011 2004 S&P: Outlook to positive S&P: Outlook changed from stable to S&P: Outlook to stable negative, ratings affirmed Moody’s: Outlook to stable Moody’s: Downgrade to Ba2, stable outlook 2012 2005 Moody’s: Outlook to positive S&P: Downgrade to BB, stable outlook 2013 Moody’s: Outlook changed from stable to negative, S&P: Outlook to positive ratings affirmed Moody’s: Upgrade to B2, outlook stable 2006 S&P: Upgrade to B, outlook stable S&P: Downgrade to BB-, negative outlook Moody’s: Downgrade to Ba3, negative outlook Moody’s: Downgrade to B2, negative outlook S&P: Downgrade to B+, negative outlook 11 Metsä Board Metsä Group

Thank You! www.metsaboard.com Juha Laine Headof IR +358 10 4654335 juha.laine@metsagroup.com Metsä Board Metsä Group