We are focusing on premium paperboards and a high level of sustainability

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

Mika JoukioCEO, Metsä Board

The world is turbulent – and we are not immune

Safety of employees

Continuity of operations

Maintaininghigh customerservice level

Our focus is on premium paperboards

made from fresh fibres, where we have a leading

position

Sustainability is driving demand and making our business even

stronger

We are aiming for moderate growth, with a

strong focus on profitability

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Profitability guides our future growth Our commitment from 2018 CMD

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TOPICSWe are continuing to implement our strategy based on fresh fibre paperboard

1

2

3

We want to be a leader in sustainability

We are investing in innovation and collaboration with customers

today

z

z

We are focusing on premium fresh fibre paperboards and a high level of sustainability

Packaging solutions that respect nature

M I S S I O N

zPreferred supplier of innovative and sustainable fibre-based packaging

solutions, creating value for customers globally

V I S I O NFOCUSWe are the leader in sustainability, focusing on premium fresh fibre products for consumer and retail packaging. The high performance of our products is based on technical excellence and tailor-made, high-quality, Nordic pulps.

GROWTHWe grow globally together with our existing and new customers by offering sustainable, safe and high-performing products. Our growth is based on skilled people, industry-leading products and innovative packaging solutions.

PROFITABILITYOur profitability is based on the efficiency of our operations and prioritisation of businesses that benefit from the high performance of our products and services.

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Americas

Folding boxboard

57 %

White kraftlainers

25 %

Market pulp13 %

Other5 %

Sales split by product

FY 2019 figures

production sites

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EMEAAPAC

FBB, WKL coatedFBB, WKL, market pulp

FBB, WKL, market pulp

Annualpaperboard capacity

tonnes/year

Annualpulp surplus*

tonnes/year600,0002,000,000

*) includes the 24.9% holding in Metsä Fibre

Our production is near our main raw material but we sell worldwide

8%

71%21%

% of 2019 total sales

* based on Metsä Board’s own estimates

Demand for our premium fresh fibre paperboards is mainly driven by consumer and retail …End uses of Metsä Board’s FOLDING BOXBOARD*

End uses of Metsä Board’s WHITE KRAFTLINERS*

Food and food service packaging

Other consumer goods packaging

Graphic end-uses

Shelf-ready solutions, point-of-sale displays

Other consumer

goods packaging

E-commerce

…and this is how they support sustainable consumption

• Lightweight packaging helps customers to reduce carbon footprint

• Our fresh fibre paperboards support the circular economy

• All our paperboards* have industrial compostability certification

*excluding PE-coated grades

ZERO FOSSIL CO2 EMISSIONS

INDUSTRY-LEADING TARGET:

Fossil-free mills and raw materials by 2030

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How we will achieve our target of 100% fossil-free mills

Key projects subject to final investment decisions

Indicative timelines

-47-48

-50

2017 2018 2019

Reduction of fossil CO2emissions per product tonne, %

10,211,7 12,3

2017 2018 2019

Energy efficiency improvement per product tonne, %

-17-20

-29

2017 2018 2019

Reduction of process water use per product tonne, %

We have exceeded our targets for reducing fossil CO2emissions and process water use…

Target: -30% in 2009–2020 Target: -17% in 2010–2020 Target: +12% in 2009–2020

-47-48

-50

2017 2018 2019

Reduction of fossil CO2emissions per product tonne, %

10,211,7 12,3

2017 2018 2019

Energy efficiency improvement per product tonne, %

-17-20

-29

2017 2018 2019

Reduction of process water use per product tonne, %

...and we are now aiming for even higher targets by 2030

Target: -30% in 2009–2020 Target: -17% in 2010–2020 Target: +12% in 2009–2020

New target

-100%in 2018–2030

New target

-30%in 2018–2030

New target

+10%in 2018–2030

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Safety continues to be our #1 priority

15,1

12,6

10,2

6,8

2017 2018 2019 H1 2020

TRIFtotal recordable injury frequency

per million hours worked

6,47,5

5,5 5,1

2017 2018 2019 H1 2020

LTA1lost-time accident frequency

per million hours worked

Zero accidents

T A R G E T :

Maintaining shareholder value through good profitability and a healthy balance sheet

Comparable ROCE:Target at least 12%

11,2

14,410,4 10,7

2017 2018 2019 H1 2020

1,21,0 1,1 1,1

2017 2018 2019 H1 2020

Net debt/comparable EBITDA:Maximum level 2.5x

Target > 12%

Target< 2.5x

1414

76

50 5159

2016 2017 2018 2019

Dividend policy: Payout ratio at least 50% of net result

Long-term financial targets

Husum pulp mill renewal creates a solid platform to develop our paperboard business and is an

important step towards our goal of fossil-free mills

Husum pulp mill renewal –Estimated first phase schedule

2019 2020 2021 2022

Company expects to make the final investment decision

New recovery boiler and turbine expected to be in operation on H1 2022, at the earliest

Pre-engineering

phase launched

Q1 2020 Results16

Second phase: New fibre line. To be implemented during the 2020s after the first phase is fully completed

First phase: New recovery boiler and turbine. Investment value EUR 320 million, divided over 2019–2022

First investments made

Foundation work for new recovery boiler started

Future growth is sought through innovation

Our R&D focus areas

Lightweight paperboards

Barrier paperboards as alternatives to plastics

Close cooperation with customers in

product development and packaging design

Significant scale in INNOVATIONS+ =

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Strategy execution

intact - focuson premium paperboards

Excellent track record in

sustainability

Future growth is secured with

sustainableinvestments

and innovations

Summary

Q&A