Investor Presentation 3Q 2010 - M Real

Contents
Investment highlights and update 2 Investment Highlights 3 Strategy 17 Financial Targets 19 3Q 2010 Results & Outlook 33 Price Development 35 Dividend 38 Investments Funding and debt information 41 Divestments 42 Funding and Debt 48 Credit Facilities 49 Rating History General presentation 50 General Info 57 Business Portfolio 66 Operations 72 Deliveries 74 Sourcing 82 Owners 85 Market Position
1 27.10.2010 Investor presentation 3Q 2010
Investment Highlights
Strong core in high-quality cartonboards
M-real the European market leader in folding boxboard Good growth potential
Turn-around in profitability Significant net debt reduction in recent years Strategic review ongoing
M-real the forerunner in paper merchanting and coated papers industry restructuring in Europe Asset divestments Extensive cost savings and cash flow improvement programmes
Strategy
Consistent Strategic Direction Since 2006

Cartonboards for consumer packaging the strategic core business Divestment of underperforming paper businesses Major cost savings through complexity reduction Responsible and proactive approach to increase prices
Packaging Is One of the Biggest and Fastest Growing Businesses in the World
One of the most important well-being drivers in the world Product safety issues are crucial Branding and information sharing increasingly important Criticism against bad packaging increasing
Flexible plastics 20 % Board 31 %
Global Packaging Market ($634 Billion)

Metal 15 % Glass 7 % Others 6%
Rigid plastics 21 %
Virgin fibre cartonboard ~7% of total
Sources: Pira & M-real
Several Megatrends Supporting Good Packaging

Demand for good packaging heavily increasing Good packaging is environmentally sustainable
Made out of renewable raw material and recyclable High energy self-sufficiency in production Low carbon footprint Lightweight
Good packaging is safe

Durable No migration Good printing surface
Good packaging is economical
Virgin Fibre Board Is the Best Example of Good Packaging Lowest Carbon Footprint
Virgin fibre based lightweight cartonboards the most environmentally sound packaging material Wood fibre based products replace non-renewable materials like plastic and aluminium Virgin fibre board replaces also recycled fibre based packaging materials
Cartonboard has the lowest carbon footprint

14000 12000 10000 kg/tonne 8000 6000 4000 2000 0 M-real's Carta Solida HDPE PET PLA (Biobased polymer) Aluminium
Source: M-real and Sustainable Packaging Coalition - SPC
Watch Your Weight!

For an order of 50.000 sheets (520 x 720 mm) you will need 18.720 m2 of board:
~13 mNm CD stiffness, ~500 m thickness
SBB WLC
(white lined chipboard)
Average FBB
(folding boxboard)
M-real lightweight paperboard
(solid bleached board)
M-real Targets Growth in Its Core Business Packaging

Huge growth potential in wood fibre based packaging applications when replacing non-sustainable packaging materials M-real a strong producer of virgin fibre based cartonboard and white top linerboard as well as packaging related speciality papers Access to wood raw material, superior fibre knowhow and pulp self-sufficiency M-reals important competitive advantages
M-real Well Equipped for Expansion of Cartonboard Business

Excellent potential to increase the output of current machines with modest investments
Significant amount of excess pulp currently
New investments were announced by M-real in 3Q 2010 Investigations ongoing to benefit growth potential in Russia, Eastern Europe or Asia
Alone and together with the best selected local partners
M-real is Investing in Its Cartonboard Business

26 M investment in 80 kton/a capacity expansion at Simpele
Simpeles cartonboard machine the most efficient in Europe Simpele mills sheeting capacity will be expanded To be completed in summer 2011
16 M investment in Kemiart Liners to modernize the coating section

Increased share of high value added coated products To be completed in autumn 2011
Evaluations regarding further development steps in cartonboard business continue
M-real Strategic Review

- M-reals Response to the Changes in Business Environment In March 2006, M-real's Board of Directors initiated a strategic review M-real was the first major paper company to emphasize the need for industry consolidation and extensive restructuring M-real took the leading role in European paper merchanting restructuring in 2007 M-real also took the leading role in European coated paper industry restructuring in 2008 Extensive internal profit improvement programmes
Strategic Review of the Paper Business Proceeds

M-real in strong position in participating restructuring of the European uncoated fine paper business M-real Zanders is a leading European speciality paper producer Potentially, also separate divestments of the non-profitable units
M-real the Forerunner in Re-Engineering of European Paper and Board Industry

New Mets-Botnia ownership structure and divestment Uruguay pulp mill 2009 Pulp self-sufficiency 2008 Divestment of Graphic Papers, 2008 Divestment of Map Merchant Group 2007 Most extensive efficiency improvements in European paper and board industry 2006-2010 Need of structural change And new strategic direction 2005
2011 Result Expected to Be Boosted by 60 M vs. 2010 Due to Own Already Implemented Measures
Cumulative Profit impact vs. 2009, m 1 Profit improvement programme 2010 2 Rollover impact of 2009 programme 3 Rollover impact of 2008 programme Total total target 80 60 20 160 2010 40 50 10 100 2011 80 60 20 160
M-real Is a Responsible Company

Completed closures in 2007
Sittingbourne: coated fine paper Gohrsmhle PM6 and PM7: coated fine paper Wifsta: uncoated fine paper Tako BM2: folding boxboard 210 ktons/a 100 ktons/a 175 ktons/a 70 ktons/a
Closures in 2008
Kangas PM2: coated magazine paper Lielahti: BCTMP New Thames: uncoated fine paper (divestment, grade conversion) 100 ktons/a 105 ktons/a 230 ktons/a
Closures in 2009
Hallein paper mill: coated fine paper Gohrsmhle: standard coated fine paper * 310 ktons/a 250 ktons/a
Closures in 2010
Two machines in Reflex: Speciality paper Alizay pulp mill: Chemical pulp 80 ktons/a 310 ktons/a
Total paper capacity Total board capacity Total pulp (incl. BCTMP) capacity
1 465 ktons/a 70 ktons/a 415 ktons/a
*In Gohrsmhle the speciality paper and uncoated fine paper reel and folio sheet production expanded after the discontinuation of the standard coated fine paper production.
Financial Targets
Financial Targets
ROCE target set at a minimum of 10% on average over the business cycle Net gearing not to exceed 100%
Minimum ROCE 10%*
13,5% 10,2% 7,6% 6,2%
Maximum net gearing 100%

184%
8,0% Minimum target of 10%
145%
2,8% 2,1%1,6% 0,9% 0,5%

83%
137% 119%
126% 99% 90% 84% 81%
95% 82% Maximum level of 100%
-0,5% -5,6%
99 00 01 02 03 04 05 06 07 08 09 1-3Q 10
99 00 01 02 03 04 05 06 07 08 09 3Q 10
* Excluding non-recurring items

3Q 2010 results and Outlook
Key Events in 3Q 2010

Good profitability trend continued Strong demand in all main grades M-real continued to implement price increases Investments in Simpele and Kemi were announced Operative performance of Alizay paper mill improved Partial divestment of Reflex mill Credit rating upgrades by both Moodys and S&P
Key Figures Quarterly

Sales
M M
75 50
Operating result excl. non-rec. items
1000
750 859 829 826
25 0 14 I -1 II 3 III IV -51 I -65 II -70 -22 III 7 IV
39 I
43
54
500
722
623 585 618 606 602
676 662
-25 -50
II
III
250 I II III IV I II III IV I II III
-75
Result before taxes excl. non-rec. items

M 50
25 0 -25 -50 -75 -100 I

15 -21 -36 -34 -87 -62 -83 -70 -15
24
33
2008
II III IV I II III IV I II III
2009
2010
Operating Cash Flow Turned Positive in 3Q

3Q 2010 1-3Q 2010
EBITDA, excluding non-recurring items Change in ONWC Net investments Net financial costs Operating cash flow
+85 -24 +10 -20 +51
+234 -132 +7 -59 +50
Good Progress in Price Increases in Consumer Packaging

M
Sales
In comparison to 2Q 2010 profitability was negatively impacted by scheduled maintenance shut downs at all board mills resulting in lower deliveries Profitability improved due to implemented price increases Demand continues strong. 4Q deliveries negatively impacted by seasonality Price increases implemented to annual contracts as planned, result impact mainly from 1Q 2011 onwards Long delivery times and fully booked capacity in FBB still a challenge for daily business
New capacity increases announced
400 300 200 100 0

2Q 2010
M
310
305
3Q 2010
EBIT, excl non-recurring items

50 40 30 20 10 0
2Q 2010 3Q 2010
38
34
Office Papers Result Improved Clearly

M
Sales
Profitability improved due to implemented price increases and better operating rates Result was weakened by higher fibre price Demand expected to continue strong, 4Q deliveries negatively impacted by seasonality Alizays operative performance improved by the permanent closure of the pulp mill Husums energy efficiency investments proceeding as planned
New turbine in place in 1Q 2011, additional annual savings of about 12 m
200 150 100 50 0

2Q 2010
M
153
164
3Q 2010

30 20 10 9 0 -10
-4
2Q 2010 3Q 2010
Extensive Profit Improvement Actions Continued in Speciality Papers

M
Result was weakened by lower operating rates and decreased delivery volumes. Continued high pulp price maintains profitability challenges Result was improved by price increases and implemented cost savings Demand expected to remain stable Positive price development continued in speciality grades Full result impact of agreed productivity improvements from 1Q 2011 onwards. New measures are in the pipeline Share of coated speciality grades still too low in Gohrsmhle
Simpele speciality grades planned to be moved to Gohrsmhle Intensive actions to find new volumes continue
Sales
100 75 50 25 0
2Q 2010
M
80
75
3Q 2010

20 10 0 -10 -20
2Q 2010 3Q 2010
-5
-7
Market Pulp and Energys Profitability Stable

M
Sales
Profitability improved by increased pulp price Profitability was negatively impacted by lower operating rates due to maintenance shutdowns, lower delivery volumes and higher wood costs Demand expected to continue strong, 4Q deliveries negatively impacted by seasonality Good progress in technical sales actions to allocate more Kaskinen BCTMP volumes to Europe Pulp price is expected to be slightly lower in 4Q than in 3Q
No radical decreases in sight
200 150 100 50 0

2Q 2010
M
126 93
3Q 2010

25 20 15 10 5 0
2Q 2010 3Q 2010
16
16
M-real Is Showing Market Leadership

Board price increased slightly in 3Q and annual contract negotiations are proceeding well
After agreed increases FBB and liner prices in excess of 10% higher than in the beginning of 2010 Result impact of new annual FBB contracts mainly from 1Q 2011
WFU prices were again increased in 3Q

This year prices have increased in excess of 15 % in total Further price increases are necessary to maintain profitability, however, possibilities seem limited
Carbonless and one-side coated speciality paper prices increased in 3Q

Some potential for further increases exist, but no material changes in price levels are expected
Pulp price is somewhat lower in 4Q vs. 3Q, no material further decreases in sight
Estimates are based on current sales mix and currency rates

M-real is Growing Its Cartonboard Business

26 M investment in 80 kton/a capacity expansion at Simpele
Simpeles cartonboard machine the most efficient in Europe Simpele mills sheeting capacity will be expanded To be completed in summer 2011
16 M investment in Kemiart Liners to modernize the coating section

Increased share of high value added coated products To be completed in autumn 2011
Evaluations regarding further development steps in cartonboard business continue
Recent Improvement Measures in Office Papers

Major complexity reduction in recent years including closures and divestments of uncompetitive capacity Actions implemented in 2010 improve results by over 30 M, fully from 2011
Energy efficiency investment worth 22 M under implementation in Husum Personnel reduction of 200 in Husum Closure of Alizay pulp mill
Streamlining of product portfolio

Focus on high value added products First deliveries of the new product SAVE! in September
Price increases
Recent Improvement Measures in Speciality Papers

In recent years significant efficiency improvements and closures of uncompetitive capacity Discontinuation of Gohrsmhles former main business, standard WFC, in 2009 Intensive development of new speciality products to Gohrsmhle Actions implemented in 2010 improve results by about 18 M, fully from 2011
Closure of two speciality paper machines at Reflex, product offering and business volume unchanged Personnel reduction of 220 in M-real Zanders
Planned continuation of Simpele speciality paper production in Gohrsmhle Partial divestment of the Reflex mill as part of the Paper Park concept
Promising Further Profit Improvement Potential

All opportunities for new price increases will be utilised Continue profitable growth in cartonboard business New extensive profit improvement programme MRP11 focusing on paper units under construction Potential divestments of non-profitable assets Next steps in implementation of Reflex Paper Park Paper business strategic review continues
Profitability Outlook
M-reals fourth quarter 2010 operating result, excluding non-recurring items, is expected to be temporarily weaker than in the third quarter due to unfavourable exchange rate development as well as seasonality
Folding Boxboard Market Price in Europe 2000 9/2010

EUR / tn Three month moving average
1200
1000
800
600
400 2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Source: M-real
Paper and Pulp Market Price in Europe 1998 9/2010

EUR / tn EUR/USD
1100 1000 900 800 700 600
1,7 1,6 1,5 1,4 1,3 1,2 1,1 1
500 400 1998
0,9 0,8
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Coated magazine paper LWC (60g) Softwood pulp NBSK

Uncoated fine paper (B-copy, 80 g) Coated fine paper (100 g) EUR/USD Source: Foex, Reuters
Dividend
Dividend Policy
Future dividends will take into account the need to achieve and maintain sufficient financial flexibility The Company remains committed to an attractive and competitive dividend M-real's dividend policy is stable and rewarding to shareholders, and aims at paying a dividend of at least 1/3 of the Company's EPS on average over the business cycle, nonetheless taking into account the Company's gearing target
Dividend Yield
3 2,5 2 5,6% 5,5% 1,5 4,1% 3,3%
1,09 1,13
12 % 8,6% 6,9%
1,85
10 % 7,2% 8% 4,3% 2,8% 2,1% 1,4% 1,3%

0,06
6% 4% 2% 0,0% 0,0% 0,00 0,00 0% 2006

-1,21 -0,59
per share
1 0,5 0 -0,5 -1 -1,5 -2
0,23 0,14
0,50 0,26
0,37
0,38
0,51 0,460,51
0,51 0,30
0,25 -0,43
0,12
0,12 -0,25
0,06
1996
1997
1998
1999
2000
2001
2002
2003
2004
-0,79
2005
2007
2008
2009 -2 %
-1,09
-4 % -6 % -8 %
-1,58
Earnings per share
Dividend per share
Dividend yield
Dividend yield calculated from annual average B-share volume weighted price
Dividend yield, %
Investments
Capital Investments about 70 m in 2010 Capital Investments

2 500
2 000 1 500
Disposals
1 000 Million
Acquisitions
500
0 -500
-1 000 -1 500
Capital expenditure on fixed assets

96 99 02 03 05 98 97 00 01 04 06 07 08 09 20 10 20 E
19
19
20
20
20
20
19
19
20
20
20
20
20
*Indicative level for 2010
Funding and debt information
Significant Divestments - EUR 3.4 billion in assets divested since 2001

Year
2009 2008 2008 2008 2007 EUR millions 2007 2007 2005 2005 2005 2004 2002 2001 2001
Divestiture
Graphic Papers 100 000 B2 shares in PVO New Thames mill Map Merchant Group Folding carton plants Botnia (9%) Botnia (8%) Forestia (95%) Savon Sellu Mets Tissue Papierfabrik Albbruck MD Papier Noviant (19%)
Enterprise Value
300* 750 80 82** 382 60 240 164 163 20 570 235 300 41 3,387
Mets-Botnias Uruguayn operations
* Cash portion **Incl. pension liabilities
Loans and Interest Rate

At the end of 3Q 2010 Average maturity of long term loans Average interest rate of loans (including derivatives) Interest rate maturity of loans (including derivatives)
2,8 years 5,0 % 7,9 months
Of the loans about 83 per cent was subject to variable interest rates and 17 per cent to fixed interest rates
Long-term Interest Bearing Liabilities

3% 5% 7% 5%
MTN Programme Bonds Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities
20 %
60 %
Total 1 123 m 30.9.2010

Short term interest bearing liabilities Short-term Interest Bearing Liabilities

2%
Metsliitto Group Short-term bank loans and other
98 %
Total 237 m 30.9.2010

Interest bearing net liabilities 31.12.2003 Interest Bearing Net Liabilities 30.9.2010
Long-term Short-term Total interest bearing liabilities Liquidity and other interest bearing receivables Interest bearing net liabilities 1 123 237 1 360 539 821
Long-term Interest Bearing Liabilities 30.9.2010

EUR, million
700 600 600 500 400 300 200 100 33 0 2010 2011 2012 2013 2014 2015 2016 >2 016 98
158 117 81 18 18
Liquidity
M
1400 1200 1000 800 600 400 200 0 I/09 II/09 III/09 IV/09 I/10 II/10 III/10
Liquid funds Committed credit facilities
Debt Programs
The following table sets forth the significant debt securities issued and outstanding of M-real as at Sept. 30, 2010:
Average Long-term borrowings USD 350 million Private Note Iss ue E UR 500 mil lion Bond Issue E UR 400 mil lion Bond Issue G lobal Medium-Term Note Program EUR 52 million private placements E UR 131 mil lion bilateral loans E UR 29 mil lion finance leases E UR 245 mil lion pension loans Short-term funding programmes E UR 350 mil lion domestic CP-program E UR 150 mil j. Belgian CP-program EUR 350 EUR 150 EUR 0 EUR 0 Total amount USD 350 EUR 500 EUR 400 EUR 1 500 EUR 52 EUR 131 EUR 29 EUR 245 EUR 131 EUR 29 EUR 226 3,3 % 1,5 % 5,0 % 5.4% (1) 2011 20102013 20102014 20102020 Outstanding USD 224 EUR 500 EUR 0 Interest Rate 5.7% (1) 7.0% (1) Maturity 20122014 2013 2010 (currency in millions)
Average interest rate of all M-real Group interes t bearing liabilities including interest rate derivatives per 30.9.2010 is 5,0 %. (1) The average interest rates take into account outstanding i nterest rate swaps and amortised arrangement fees.
Ratings History
2000 S&P: Short term ratings lowered to A3, Long term ratings placed to credit watch negative Moodys: Long and short term ratings outlook changed from stable to negative 2001 S&P: Long term ratings lowered to BBB-, stable outlook Moodys: Long and short term ratings lowered to Baa3/P3, negative outlook 2003 S&P: Downgrade to BB+, stable outlook Moodys: Downgrade to Ba1, negative outlook 2004 S&P: Outlook changed from stable to negative, ratings affirmed Moodys: Downgrade to Ba2, stable outlook 2008 S&P: Outlook to negative 2009 S&P: Downgrade to CCC+, negative outlook Moodys: Downgrade to Caa1, outlook negative 2010 S&P: Outlook to stable Moodys: Outlook to stable S&P: Upgrade to B-, stable outlook Moodys: Upgrade to B3, outlook to positive 2007 Moodys: Downgrade to B3, negative outlook S&P: Downgrade to B, negative outlook S&P: Downgrade to B-, stable outlook 2005 S&P: Downgrade to BB, stable outlook Moodys: Outlook changed from stable to negative, ratings affirmed 2006 S&P: Downgrade to BB-, negative outlook Moodys: Downgrade to Ba3, negative outlook Moodys: Downgrade to B2, negative outlook S&P: Downgrade to B+, negative outlook
General presentation
M-real in Brief
Annual sales about EUR 2.5 billion. Approximately 4,900 employees. Present in over 70 countries. 13 production units in 5 European countries. Part of Metsliitto Group and listed on the NASDAQ OMX Helsinki Ltd. Metsliitto Group is one of the largest forest industry groups in the world, owned by a cooperative of 130.000 private Finnish forest owners.
Sales breakdown 2009
Consumer Packaging 40% Paper 40% Market pulp and energy 20%
Offering for Consumer Packaging, Communications and Advertising

Cartonboards and white-top kraftliners for packaging beautycare, healthcare, cigarettes, food, consumer durables etc. Graphic boards e.g. for book covers, postcards, greeting cards, CD or DVD covers Office papers from high-volume copying and printing to highquality color presentations Speciality papers for advertising and corporate materials, flexible packaging, creative designs, labeling, self-adhesive laminates and for wallcovering industry
M-reals Customers
Publishers
Office product resellers
Brand owners
Paper merchants
Printers and converters
Office paper users
Advertising and design agencies
Focus on Core Businesses

1995 Sales 2.3 billion
9% 6% 3% 17 %
2009 Sales 2.4 billion
40 %
12 %
40 %
8 Businesses
32 %
3 Businesses
9% 12 % Paper Paperboard Tissue Merchanting
20 %
Pulp Packaging Mechanical Forest Products Chemicals
M-real Restructuring Story

Acquisitions
Modo Paper Biberist Paper Mill Kyro Board Mill Zanders UK Paper Kemiart Liners (53 %)
Simpele Mill
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
PSM
2007
2008 2009
Map
Sawn Goods & Building Materials
Chemicals Business
Botnia Wood
Corrugated Packaging
MD Papier
Albbruck
Mets Tissue
Savon Sellu
8% in Botnia
9% in Botnia
New Thames
Graphic Papers MB Uruguay
Forestia
Divestments
Carton plants
100 000 B2 shares in PVO
Annual Sales Development

EUR, million
8000 7000 6000 5000 4044 4000 3014 3000 2000 1000 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2313 3319 3236 2432 5898 6923 6564 6044 5460 5624 5241 4440
Business Portfolio
Business Portfolio
Consumer Packaging Office Papers Speciality Papers Market Pulp and Energy
Consumer Packaging
Mainly Folding Boxboard and Linerboard
Fibre-based high value-added packaging solutions for global brand owners in beautycare, healthcare, cigarette, food and consumer electronics industries as well as for graphical end-uses Relatively high earnings stability High segment consolidation Competitive folding boxboard mills with end use specified production
No. 1 Folding Boxboard Producer in Europe
M-real Stora Enso Mayr-Melnhoff Careo IP 0% 5% 10 % 9% 8% 10 % 15 % 20 % Capacity Share (%) 25 % 30 % 35 % 25 % 32 %
Office Papers
Mainly Uncoated Fine Paper
High quality uncoated fine papers for printing and photocopying as well as for forms, envelopes, manuals and communication purposes Diversified customer base, e.g. merchants, retail chains, office equipment manufacturers and corporations Leading European office paper brands like DataCopy and Evolve
No. 5 Uncoated Fine Paper Producer in Europe
Portucel Stora Enso Mondi UPM-Kymmene M-real 0% 5% 11 % 10 % 9% 10 % 15 % 14 % 14 %
Capacity Share (%)
Speciality Papers
Leading European speciality paper producer with strong focus on packaging applications Packaging specialities
Flexible packaging Luxury packaging Labels Speciality paper sales
Graphical specialities
Premium fine papers Carbonless papers Digital imaging papers
Packaging specialities 50% Graphical specialities 30% WFU 20%
Uncoated fine papers
Sales by Business Area

M
350 300 250 200 150 100 80 50 0 Consumer Packaging Office Papers Speciality Papers Market Pulp and Energy 75 153 164 126 107 310
305
2Q 2010
3Q 2010
Operating Result by Business Area*

M
50 40 38 30 20 10 9 0 -10 -20 Consumer Packaging Office Papers Speciality Papers Market Pulp and Energy -4 -5 -7 16 16 34
2Q 2010
3Q 2010
* excl. non-recurring items
Sales by Business Area

M
1000 900 800 700 600 500 400 300 200 100 0 Consumer Packaging Office Papers Speciality Papers Market Pulp and Energy 279 237 477 411 382 328 713 872
1-3Q 2009
1-3Q 2010
Operating Result by Business Area*

M
120 100 80 60 40 20 0 -20 -40 -60 Consumer Packaging Office Papers Speciality Papers Market Pulp and Energy -48 -45 -18 -45 35 5 41 111
1-3Q 2009
1-3Q 2010
* excl. non-recurring items
Operations
Production Capacity
1000 tons/a
2 000 1 800 1 600 1 400 1 200 1 000 1 800 800 600 400 200 0 Paper Board Pulp and BCTMP 1 200 2 100
M-real Production Locations

Consumer Packaging: Simpele nekoski board and paper Kyro Tako Kemi Joutseno Office Papers: Alizay Husum paper and pulp Speciality Papers: Gohrsmhle Reflex Market Pulp and Energy: Kaskinen Hallein
Gohrsmhle and Reflex Alizay Hallein
Kemi Husum Kaskinen Kyro Tako nekoski Simpele Joutseno
Paper and Board Capacity by Grade

(1000 t/a)
BOARD M ILLS Board Mill Tampere Kyrskoski nekoski Simpele Kemi Total PAPER MILLS Paper Mill Country Machines Coated Magazine Paper nekoski Simpele Kyrskoski Bergisch Gladbach Dren Husum Alizay Total Finland Finland Finland Germany Germany Sweden France 1 1 1 2 2 3 1 11 275 275 180 435 310 925 260 180 Coated Fine Paper 180 55 105 80 20 Uncoated Fine Paper Specialty Paper Total 180 55 105 260 20 710 310 1640 Country Finland Finland Finland Finland Finland Machines 2 1 1 1 1 6 795 Folding Boxboard 205 160 210 220 375 375 Liner Total 205 160 210 220 375 1170
Pulp Capacity
(1000 t/a)
PULP MILLS Pulp Mill H usum H allein Joutseno Kas kinen Total BOTNIA * Mill nekoski Kemi Rauma Joutseno Total * M-real share is 30% of the capacity Country Finland Finland Finland Finland Chemical Pulp 500 590 630 650 2370 Total 500 590 630 650 2370 Country Sweden Austria Finland Finland 850 Chemical Pulp 690 160 280 300 580 BCTMP Total 690 160 280 300 1430
Personnel Development
25000 22237 21070 20372 20000 17351 16490 15572 15000 12637 11463 10000 9508 6546 4903 5000 4682 13885 15154 14125
0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 3Q10
Deliveries
Annual Deliveries*
Cartonboard
18 %
Uncoated fine paper

1% 5% 8%
6% 44 %
32 %
86 %
Western- Europe
* Indicative numbers
Eastern- Europe
Americas
Asia & Pacific
Sourcing
M-real Cost Structure 2009*

(total annual costs in industrial operations ~ EUR 2 Billion)
Other fixed 13 %
Fixed costs
Delivery costs 16 %
Personnel 18 %
Wood 21 %
Variable costs
Other variables 7% Energy 10 %
Chemicals, pigments and fillers 15 %
* Percentage of annual costs in industrial operations

Electricity Sourcing 2009 (total 3 400 GWh)

Purchased energy 26 % Own generation 43 %
Associated company (PVO) 29 %
Outsourced generation 2%
Fuels Used 2009 (total 19,6 TWh)

Peat Hydropower Oil 4% 1% 4% Nuclear power 9% Coal 9%
Natural gas 13 %
Woodbased 60 %
Wood Sourcing by Country

1 000 m3 2009
Finland Sweden Russia France Austria Latvia Estonia Lithuania

Total
3488 2272 563 133 524 228 204 47

7459
Development of Softwood Pulpwood

Cost at Mill, Wood for Chemical Pulping
1980 2Q 2010
60 EUR/m sob, nominal
3
50
Finland, south, pine Sweden, south, pine Germany, south, pine Chile, radiata pine USA South, SYP Canada East, SPF
40
30
20
10
0
19 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 2099 2000 2001 2002 2003 2004 2005 2006 2007 0 20 20 8 10 09 q 2
Source: Pyry
Development of Softwood Pulpwood

Cost at Mill, Wood for Mechanical Pulping
1980 2Q 2010
70 60 50 40 30 20 10 0 EUR/m sob, nominal
3
Finland, south, spruce

Sweden, south, spruce
Germany, south, spruce
Austria, spruce
Canada East, S PF
US A Great Lakes, spruce
19 1 98 0 1 98 1 1 98 2 1 98 3 1 9 84 19 85 19 86 19 87 19 88 19 89 19 9 0 1 99 1 1 99 2 1 99 3 1 99 4 1 99 5 1 99 6 1 99 7 1 99 8 2 09 9 2 00 0 2 0 01 20 02 20 03 20 04 20 05 20 06 20 0 7 20 2 00 8 10 09 q 2
Source: Pyry
Development of Hardwood Pulpwood

Cost at Mill, Wood for Chemical Pulping
1980 2Q 2010
EUR/m sob, nominal 60
3
50
Finland, south, birch Sweden, south, birch Portugal, E. globulus
Brazil, E. grandis South Africa, E. grandis USA South, mixed hw
40
30
20
10
19 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 2099 2000 2001 2002 2003 2004 2005 2006 2007 20 2008 10 09 q 2
Source: Pyry
Owners
M-real Shareholders 30.9.2010

Non-profitmaking organizations; 3 %
Non-Finnish nationals; 18 %
Financial and insurance institutions; 4% Public communities; 7 %
Other companies; 5 %
Households; 24 %
Metsliitto; 39 %
M-real Voting Rights 30.9.2010

Non-profitmaking Non-Finnish nationals; organizations; 4 % 6% Other companies; 2 %
Financial and insurance institutions; 2% Public communities; 14 %
Households; 12 %
Metsliitto; 61 %
Market Position
Folding Boxboard Capacities in Europe

BIG-5 = 84% of total
M-real
32%
Stora Enso
25% 10%
Mayr-Melnhof Careo
9%
IP
8% 8% 8% Capacity: tons/year (million)
Holmen
Others 0 100 200
300
400
500
600
700
800
900
Source: Pyry Forest Industry Consulting
Uncoated Fine Paper Capacities in Europe

BIG-5 = 57% of total
14% 14% 11% 10% 8% 8% 3% 3% Capacity: tons/year (million) 28%
Portucel Stora Enso Mondi UPM M-real International Paper Arctic Paper Sappi Others 0
Source: Pyry Forest Industry Consulting, M-real 87 27.10.2010 Investor presentation 3Q 2010
500
1000
1500
2000
2500
3000
3500
Thank you
www.m-real.com

Investor Presentation 3Q 2010 - M Real

Загружено:

Сведения о документе

Исходное описание:

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

Investor Presentation 3Q 2010 - M Real

Загружено:

Авторское право:

Доступные форматы

Contents

1 27.10.2010 Investor presentation 3Q 2010

Consistent Strategic Direction Since 2006

4 27.10.2010 Investor presentation 3Q 2010

Global Packaging Market ($634 Billion)

Virgin fibre cartonboard ~7% of total

Sources: Pira & M-real

5 27.10.2010 Investor presentation 3Q 2010

Several Megatrends Supporting Good Packaging

Good packaging is safe

Good packaging is economical

6 27.10.2010 Investor presentation 3Q 2010

Cartonboard has the lowest carbon footprint

Source: M-real and Sustainable Packaging Coalition - SPC

7 27.10.2010 Investor presentation 3Q 2010

Watch Your Weight!

M-real lightweight paperboard

(solid bleached board)

M-real Targets Growth in Its Core Business Packaging

9 27.10.2010 Investor presentation 3Q 2010

M-real Well Equipped for Expansion of Cartonboard Business

10 27.10.2010 Investor presentation 3Q 2010

M-real is Investing in Its Cartonboard Business

16 M investment in Kemiart Liners to modernize the coating section

Evaluations regarding further development steps in cartonboard business continue

11 27.10.2010 Investor presentation 3Q 2010

M-real Strategic Review

12 27.10.2010 Investor presentation 3Q 2010

Strategic Review of the Paper Business Proceeds

13 27.10.2010 Investor presentation 3Q 2010

M-real the Forerunner in Re-Engineering of European Paper and Board Industry

15 27.10.2010 Investor presentation 3Q 2010

M-real Is a Responsible Company

1 465 ktons/a 70 ktons/a 415 ktons/a

16 27.10.2010 Investor presentation 3Q 2010

Maximum net gearing 100%

8,0% Minimum target of 10%

2,8% 2,1%1,6% 0,9% 0,5%

126% 99% 90% 84% 81%

95% 82% Maximum level of 100%

* Excluding non-recurring items

3Q 2010 results and Outlook

Key Events in 3Q 2010

20 27.10.2010 Investor presentation 3Q 2010

Key Figures Quarterly

Operating result excl. non-rec. items

750 859 829 826

25 0 14 I -1 II 3 III IV -51 I -65 II -70 -22 III 7 IV

623 585 618 606 602

250 I II III IV I II III IV I II III

Result before taxes excl. non-rec. items

25 0 -25 -50 -75 -100 I

15 -21 -36 -34 -87 -62 -83 -70 -15

Operating Cash Flow Turned Positive in 3Q

+85 -24 +10 -20 +51

+234 -132 +7 -59 +50

22 27.10.2010 Investor presentation 3Q 2010

Good Progress in Price Increases in Consumer Packaging

400 300 200 100 0

EBIT, excl non-recurring items

23 27.10.2010 Investor presentation 3Q 2010

Office Papers Result Improved Clearly

200 150 100 50 0