Debt Investor Presentation 4Q 2014 5.2. 2015 Mets Board Mets - PowerPoint PPT Presentation

Debt Investor Presentation 4Q 2014 5.2. 2015 Metsä Board Metsä Group

Net Debt Reduced to EUR 427 Million Thanks to Strong Cash Flow Net Debt EUR million 1000 827 ‒ Cash flow from operations EUR 83 million in 4Q and EUR 210 million in 2014 (EUR 127 million in 2013) 750 427 ‒ Gross debt EUR 684 million and net debt EUR 427 million at end 2014 500 ( EUR 597 million at end 2013) 250 ‒ Net gearing 51 % (70 %), equity ratio 39 % (41 %) and average 0 interest rate 4,0 % (4,8 %) at the end of 2014 2010 2011 2012 2013 2014 Net Debt / EBITDA 5 ‒ Net debt to EBITDA dropped to below 2 4 ‒ Strong liquidity position 2,7 3 1,8 2 ‒ Moody’s raised Metsä Board’s credit rating to B1 in 4Q 2014 1 0 2010 2011 2012 2013 2014 2 Metsä Board Metsä Group

Loans and Interest Rate At the end of 2014 ‒ Average maturity of long term loans 3,5 years ‒ Average interest rate of loans (including derivatives) 4,0 % ‒ Interest rate maturity of loans (including derivatives) 27 months ‒ Of the loans about 23 per cent was subject to variable interest rates and 77 per cent to fixed interest rates 3 Metsä Board Metsä Group

Diversified Funding Sources Long-Term Interest Bearing Liabilities 31.12. 2014 8 % 3 % 33 % Bonds Pension premium loans Loans from financial institutions 29 % Finance leases Other interest bearing liabilities 27 % Total 681 m € 4 Metsä Board Metsä Group

Interest Bearing Net Liabilities 31.12. 2014 m € ‒ Long-term 681 ‒ Short-term 4 Total interest bearing liabilities 684 ‒ Liquidity and interest bearing receivables 257 Interest bearing net liabilities 427 5 Metsä Board Metsä Group

Well Balanced Maturity Schedule Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 31.12.2014 m € 300 254 250 Long-term interest bearing liabilities Committed undrawn credit facilities 200 181 150 100 100 100 83 46 50 37 25 1 0 0 2015 2016 2017 2018 2019 2020 2021 >2021 6 Metsä Board Metsä Group

Balance Sheet Ratios Net Debt and Net Debt/EBITDA* Net Gearing Net debt, % Net debt/EBITDA EUR million 120 900 20 827 106 783 18 777 800 17,7 100 16 700 84 83 625 14 597 80 72 600 70 12 500 Target max. 70 % 51 427 10 60 400 8 300 40 6 200 4,4 4 3,4 20 2,9 2,7 100 2 1,8 0 0 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 7 Metsä Board *Excluding non-recurring items Metsä Group

Quarterly Balance Sheet Ratios Equity Ratio Net gearing % % 45 75 80 40,7 41,0 74 39,8 39,8 39,2 38,7 69 70 69 40 70 65 33,3 32,4 35 57 60 51 30 50 25 40 20 30 15 20 10 10 5 0 0 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 8 Metsä Board Metsä Group

Debt Programs 31.12.2014 The following table sets forth the significant debt securities issued and outstanding of Metsä Board as at Dec. 31, 2014 Average Long-term borrowings Total amount Outstanding Interest Rate *) Maturity (currency in millions) EUR 225 million Bond Issue 2014 EUR 225 EUR 225 4,5 % 2019 Syndicated credit facility 2014 EUR 250 EUR 150 4,0 % 2018 EUR 105 million bilateral loans EUR 105 EUR 105 3,5 % 2015-2017 EUR 23 million finance leases EUR 23 EUR 23 2,2 % 2015-2020 EUR 229 million pension loans EUR 229 EUR 184 3,8 % 2015–2020 *) The average interest rate take into account outstanding interest rate swaps and amortised arrangement fees. Average interest rate of all Metsä Board interest bearing liabilities including interest rate derivatives per 31.12.2014 is 4,0 %. The following table sets forth Metsä Board´s principal long-term liquidity reserves as at December 31, 2014: Average Liquidity reserves Total amount Outstanding Interest Rate *) Maturity (EUR in millions) Revolving Credit Facility 2014 EUR 100 EUR 0 – 2018 Pension loan facilities EUR 229 EUR 184 3,8 % - Short-term funding programmes Metsä Group internal short-term limit EUR 150 EUR 0 – 0-12 months Metsä Group Treasury funding programmes: EUR 150 million domestic CP-program EUR 150 EUR 0 – 0-12 months 9 Metsä Board Metsä Group

Ratings ’ History 2000 2007 Moody’s: Downgrade to B3, negative outlook S&P: Short term ratings lowered to A3, 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 Moody’s: Downgrade to Caa1, outlook negative stable outlook Moody’s: Long and short term ratings 2010 lowered to Baa3/P3, negative outlook S&P: Outlook to stable Moody’s: Outlook to stable 2003 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 Moody’s: Outlook to stable negative, ratings affirmed Moody’s: Downgrade to Ba2, stable outlook 2012 Moody’s: Outlook to positive 2005 S&P: Downgrade to BB, stable outlook 2013 Moody’s: Outlook changed from stable to negative, S&P: Outlook to positive Moody’s: Upgrade to B2, outlook stable ratings affirmed 2006 S&P: Upgrade to B, outlook stable Moody’s: Outlook to positive S&P: Downgrade to BB-, negative outlook Moody’s: Downgrade to Ba3, negative outlook 2014 Moody’s: Downgrade to B2, negative outlook S&P: Outlook to positive Moody’s: Upgrade to B1, outlook positive S&P: Downgrade to B+, negative outlook 10 Metsä Board Metsä Group

Standard & Poor’s Positive Rating Development Moody’s BB+ | Ba1 BB | Ba2 BB- | Ba3 Positive B+ | B1 Positive B | B2 B- | B3 CCC+ | Caa1 CCC | Caa2 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 11 Metsä Board Metsä Group

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