2011-05-04 11:02:09 CEST
2011-05-04 11:03:09 CEST
REGULATED INFORMATION
M-real - Interim report (Q1 and Q3)
M-real Corporation Interim report
M-real Corporation Interim report on 4 May 2011 at 12.00
M-real's operating result excluding non-recurring items EUR 43 million in 1Q
2011
Result for 1Q 2011
-- Sales EUR 685 million (Q4/2010: 665)
-- Operating result excluding non-recurring items EUR 43 million (37).
Operating result including non-recurring items EUR 46 million (-4).
-- Result before taxes excluding non-recurring items EUR 28 million (20).
Result before taxes including non-recurring items EUR 31 million (-22).
-- Earnings per share from continuing operations excluding non-recurring items
EUR 0.07 (0.07), and including non-recurring items EUR 0.08 (-0.06).
Events in 1Q 2011
-- M-real launched a EUR 70 million profit improvement programme for 2011.
-- M-real decided to expand the annual folding boxboard capacity at Äänekoski
and Kyröskoski by a total of 70,000 tonnes.
-- M-real announced price increases in liner, uncoated fine paper, and special
papers.
Events after the period
-- M-real signed a Memorandum of Understanding on the partial sale of the
Reflex mill to Lenk Paper's affiliate.
-- M-real plans to divest the entire Gohrsmühle mill in Germany or
alternatively parts of the mill separately based on a Paper Park concept.
At the same time M-real commences a process to discontinue the production
of uncoated fine paper and the unprofitable special papers at the
Gohrsmühle mill. If the closures would materialize, Gohrsmühle mill would
produce only cast coated label packaging products (CHROMOLUX).
-- M-real commences a public process to divest Alizay paper mill. If the sales
process turns out to be unsuccessful by the end September 2011, M-real
considers closing the production.
-- M-real is planning to discontinue the remaining operation, carbonless paper
converting, at Reflex mill in Germany.
“Profitability of our cartonboard business improved in the first quarter.
However, cost inflation has accelerated, which is why M-real needs to increase
the prices of board and paper in the future as well. M-real targets a
significant profitability improvement by developing the cartonboard business
according to its strategy and planning to either divest or alternatively close
the unprofitable paper units.”
CEO Mikko Helander
KEY FIGURES 2011 2010 2010 2010 2010 2010
Q1 Q4 Q3 Q2 Q1 Q1-Q4
-----------------------------------------
Sales, EUR million 685 665 662 676 602 2,605
--------------------------------------------------------------------------------
EBITDA, EUR million 77 74 95 61 82 312
excl. non-recurring items, EUR million 74 71 85 77 72 305
EBITDA, % 11.2 11.1 14.4 9.0 13.6 12.0
excl. non-recurring items, % 10.8 10.7 12.8 11.4 12.0 11.7
--------------------------------------------------------------------------------
Operating result, EUR million 46 -4 66 35 49 146
excl. non-recurring items, EUR million 43 37 54 43 39 173
EBIT, % 6.7 -0.6 10.0 5.2 8.1 5.6
excl. non-recurring items, % 6.3 5.6 8.2 6.4 6.5 6.6
--------------------------------------------------------------------------------
Result before taxes
from continuing operations, EUR 31 -22 45 0 25 48
million
excl. non-recurring items, EUR million 28 20 33 24 15 92
--------------------------------------------------------------------------------
Result for the period
from continuing operations, EUR 28 -22 38 -8 19 27
million
from discontinued operations, EUR 0 0 0 0 0 0
million
-----------------------------------------
Total, EUR million 28 -22 38 -8 19 27
--------------------------------------------------------------------------------
Result per share
from continuing operations, EUR 0.08 -0.06 0.12 -0.03 0.06 0.09
from discontinued operations, EUR 0.00 0.00 0.00 0.00 0.00 0.00
-----------------------------------------
Total, EUR 0.08 -0.06 0.12 -0.03 0.06 0.09
--------------------------------------------------------------------------------
Result per share
excl. non-recurring items, EUR 0.07 0.07 0.08 0.05 0.03 0.23
--------------------------------------------------------------------------------
Return on equity, % 10.8 -8.7 15.5 -3.1 7.9 2.8
excl. non-recurring items, % 9.5 8.7 10.7 6.8 3.6 7.6
--------------------------------------------------------------------------------
Return on capital employed, % 8.4 -0.7 11.6 3.8 9.1 5.7
excl. non-recurring items, % 7.8 6.3 9.6 8.1 7.3 7.6
--------------------------------------------------------------------------------
Equity ratio at end of period, % 33.6 32.1 31.8 31.1 32.7 32.1
Gearing ratio at end of period, % 125 135 135 140 121 135
Net gearing ratio at end of period, % 78 83 81 89 86 83
Interest-bearing net liabilities, EUR 799 827 821 845 821 827
million
Gross investments, EUR million 12 18 31 10 7 66
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paper businesses 301 297 269 278 311 1,155
Consumer Packaging 334 344 353 372 321 1,390
--------------------------------------------------------------------------------
Personnel at the end of period
in continuing operations 4,515 4,538 4,682 4,946 4,796 4,538
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
Result for January-March compared to the previous quarter
M-real's sales totalled EUR 685 million (Q4/2010: 665). Comparable sales were
up 3 per cent. The operating result was EUR 46 million (-4), and operating
result excluding non-recurring items was EUR 43 million (37).
In January-March, a gain of EUR 3 million was recognised in Other operations
from the sale of a plot in Jyväskylä. A net total of EUR -41 million was
recognised as non-recurring items in the operating result for October-December,
the most significant of them being:
-- EUR 28 million impairment of fixed assets in the Speciality Papers business
area
-- EUR 15 million impairment of fixed assets in the Market Pulp and Energy
business area
-- EUR 15 million impairment of fixed assets and cost provisions in the
Consumer Packaging business area related to the closure of the Simpele
paper machine
-- EUR 9 million reversal of impairment of fixed assets in the Office Papers
business area
-- EUR 7 million gain in the Speciality Papers business area related to the
partial divestment of the Reflex mill
Operating result excluding non-recurring items compared to the previous period
was in particular improved by the increase in the average sales prices of board
and office papers. However, the operating result was weakened by the higher
cost of production factors, especially the cost of wood, energy, chemicals and
transportation. In addition, the strengthening of the Swedish krona increased
the company's euro-denominated costs.
The total paper business delivery volume was 301,000 tonnes in January-March
(297,000). Deliveries by Consumer Packaging totalled 334,000 tonnes (344,000).
Financial income and expenses totalled EUR -15 million (-15). Foreign exchange
rate differences from trade receivables, trade payables, financial items and
the valuation of currency hedging were EUR 2 million (-2). Net interest and
other financial income and expenses amounted to EUR -17 million (-13). Other
financial expenses include
EUR 0 million of valuation gains on interest rate hedges (valuation gain of 1).
The result from continuing operations before taxes in January-March was EUR 31
million (-22). The result from continuing operations before taxes and excluding
non-recurring items was EUR 28 million (20). Income taxes, including the change
in deferred tax liabilities, were EUR -3 million (0).
Earnings per share were EUR 0.08 (-0.06). Earnings per share from continuing
operations excluding non-recurring items were EUR 0.07 (0.07). Return on equity
was 10.8 per cent
(-8.7), and 9.5 per cent (8.7) excluding non-recurring items. The return on
capital employed was 8.4 per cent (-0.7); 7.8 per cent (6.3) excluding
non-recurring items.
Result for January-March compared to the corresponding period last year
M-real's sales totalled EUR 685 million (Q1/2010: 602). Comparable sales were
up 14 per cent. Operating result was EUR 46 million (49), and operating result
excluding non-recurring items was EUR 43 million (39).
In January-March, a gain of EUR 3 million was recognised in Other operations
from the sale of a plot in Jyväskylä. In January-March 2010, a gain of EUR 10
million was recognised in operating result as a non-recurring item relating to
IT operations in Other operations. In addition, the arrangement allocated EUR 2
million to the result of discontinued operations.
Operating result excluding non-recurring items compared to the corresponding
period last year was improved by the higher average sales prices of board and
papers. The result was weakened by the increase in raw material prices. In
particular, the cost of wood, chemicals and energy was at a higher level than
the year before. In addition, the clear strengthening of the Swedish krona
weakened the result.
The total paper business delivery volume was 301,000 tonnes for January-March
2011 (311,000). Deliveries by Consumer Packaging totalled 334,000 tonnes
(321,000).
Financial income and expenses in the period totalled EUR -15 million (-22).
Foreign exchange rate differences from trade receivables, trade payables,
financial items and the valuation of currency hedging were EUR 2 million (-6).
Net interest and other financial income and expenses amounted to EUR -17
million (-16). Other financial expenses include EUR 0 million of valuation
gains on interest rate hedges (valuation gain of 0).
In the review period, the result from continuing operations before taxes was
EUR 31 million (25). The result from continuing operations before taxes and
excluding non-recurring items was EUR 28 million (15). Income taxes, including
the change in deferred tax liabilities, were EUR -3 million (-6).
Earnings per share were EUR 0.08 (0.06). Earnings per share from continuing
operations excluding non-recurring items were EUR 0.07 (0.03). Return on equity
was 10.8 per cent (7.9), and 9.5 per cent (3.6) excluding non-recurring items.
The return on capital employed was 8.4 per cent (9.1); 7.8 per cent (7.3)
excluding non-recurring items.
Personnel
The number of personnel was 4,515 at the end of March (31 December 2010:
4,538), of whom 1,773 (1,783) people worked in Finland. During the period,
M-real employed an average of 4,525 people (2010: 4,772).
Investments
Gross investments in January-March totalled EUR 12 million (Q1/2010: 7).
M-real will invest EUR 26 million in the Simpele mill to increase its annual
folding boxboard capacity by about 80,000 tonnes. The sheeting capacity will
also be expanded at the same time. The investments will be carried out in
summer 2011.
M-real will invest approximately EUR 30 million at the Äänekoski and Kyröskoski
mills in order to expand the folding boxboard capacity by a total of 70,000
tonnes. The Kyröskoski investment will be carried out at the end of 2011, and
the Äänekoski investment in the spring of 2012.
M-real also invests in the modernisation of the coating section at the Kemiart
Liners mill. The estimated total value of the investment is approximately EUR
16 million. This investment will also be carried out in 2011.
Hämeenkyrön Voima Oy, an affiliate of Pohjolan Voima Oy, decided in March to
build a biopower plant to M-real Kyro mill site. The plant is to produce
electricity and steam to M-real's Kyro mill as well as electricity and
municipal heating for Leppäkosken Sähkö Oy. The expected investment cost is in
total EUR 50 million. Investment by M-real is about EUR 11 million. The
permissions needed to build the plant were received in February 2011 and the
project is expected to be finalized during Autumn 2012.
Structural change
M-real's structural change from a paper company to a clearer packaging material
manufacturer has progressed according to the strategy. The focus of the
operations has increasingly shifted from restructuring to development, as
demonstrated by the investments in Simpele, Äänekoski, Kyröskoski and Kemiart
Liners scheduled for
2011-2012.
M-real announced in May new plans to eliminate losses of its paper business.
More information of the plans can be found in the chapter Events after the
reporting period of this report.
In January, M-real launched a EUR 70 million profit improvement programme for
2011. The programme focuses on improving the profitability of the paper
business operations as well as on decreasing the variable costs of all
businesses. The earlier-announced profit improvement impact of the cardboard
investments in Simpele and Kemi and the closure of speciality paper production
at Simpele are included in the new profit improvement programme. The full
effect of the programme on operating profit, EUR 70 million, is expected to be
reached from 2012 onwards. The result improvement in 2011 is expected to be
approximately EUR 30 million. Cost inflation is estimated to accelerate in
2011.
M-real's new profit improvement programme and the earlier programmes are
estimated to have a total positive impact of approximately EUR 90 million on
the 2011 result, which is believed to mainly offset the increased cost
inflation.
Financing
At the end of March, M-real's equity ratio was 33.6 per cent (31 December 2010:
32.1) and gearing ratio was 125 per cent (135). The net gearing ratio was 78
per cent (83). Some of M-real's loan agreements set a 120 per cent limit on the
company's net gearing ratio and a 30 per cent limit on the equity ratio.
Calculated as defined in the loan agreements, the gearing ratio at the end of
March was approximately 60 per cent (64) and equity ratio approximately 39 per
cent (38).
The change in the fair value of investments available for sale was
approximately EUR +2 million, mainly due to the increase in the value of the
Pohjolan Voima shares, during the period under review.
Net interest-bearing liabilities amounted to EUR 799 million at the end of
March (827). Foreign-currency-denominated loans accounted for 8 per cent; 83
per cent were floating-rate, and the rest were fixed-rate. At the end of March,
the average interest rate on loans was 5.1 per cent and the average maturity of
long-term loans 2.4 years. The interest rate maturity of loans was 7.7 months
at the end of March. During the period, the interest rate maturity varied
between seven and ten months.
Cash flow from operations amounted to EUR 10 million (Q1-Q4/2010: 49). Working
capital increased by EUR 36 million (86), mainly as a result of the increase in
delivery volumes and prices as well as preparation for Simpele investment
shutdown. In cash flow statement the net financial items for the period include
a dividend of EUR 45 million paid by Metsä-Botnia.
At the end of the period under review, an average of 5.1 months of the annual
net foreign currency exposure was hedged. The degree of hedging varied between
four and five months during the period. Approximately 26 per cent of the
non-euro-denominated equity was hedged at the end of the period under review.
Liquidity continues at a good level. At the end of the period under review,
liquidity was EUR 425 million, of which EUR 7 million consisted of undrawn
pension premium (TyEL) loans and EUR 418 million of liquid assets and
investments. In March Metsäliitto Cooperative made an early repayment of the
EUR 49 million vendor note received in connection to the restructuring of
Metsä-Botnia ownership in 2009. EUR 156 million of the liquid assets and
investments are assets deposited by other Metsäliitto Group businesses in
M-real's subsidiary Metsä Finance. To meet its short-term financing needs, the
Group also had at its disposal uncommitted domestic and foreign commercial
paper programmes and credit facilities amounting to EUR 517 million.
Standard & Poors raised the outlook of M-real's credit rating B- from stable to
positive.
Shares
In January-March, the highest price for M-real's A share on NASDAQ OMX Helsinki
Ltd. was EUR 3.34, the lowest EUR 2.60, and the average price EUR 3.09. At the
end of March, the price of the A share was EUR 3.09. At the end of 2010, the
price of the A share was EUR 2.85, while the average price in 2010 was EUR
2.85.
In January-March 2011, the highest price of M-real's B share was EUR 3.33, the
lowest EUR 2.50, and the average price EUR 2.96. At the end of March, the price
of the B share was EUR 3.08. At the end of 2010, the price of the B share was
EUR 2.54, while the average price in 2010 was EUR 2.44.
The trading volume of the A shares was EUR 3 million, or 1 per cent of the
share capital. The trading volume of the B shares was EUR 211 million, or 24
per cent of the share capital. The market value of the A and B shares totalled
EUR 1,011 million at the end of March.
At the end of March, Metsäliitto Cooperative owned 39 per cent of the shares,
and the voting rights conferred by these shares amounted to 61 per cent.
International investors held 14 per cent of the shares.
The company does not hold any treasury shares.
Reduction of the share premium account
The Annual General Meeting decided to reduce the share premium account in
operating capital, as stated on the parent company's balance sheet on 31
December 2010, by transferring all funds in the account, or EUR 663,812,052.56,
to the company's non-restricted equity reserve. The reduction of the share
premium account will take place without consideration and it does not impact
the company's number of shares, the rights conferred by the shares, or the
proportionate ownership of the shareholders. The reduction will become
effective after the completion of the creditor protection procedure referred to
in the Limited Liability Companies Act. The target of the reduction is to
restore the company's capability to pay dividend in the future.
Management changes
Sari Pajari was appointed as SVP, Business Development and a member of the
Corporate Management Team. She has a Master of Science degree in Engineering
(forest products technology). Her main responsibilities are business
development and Total Quality Management. Pajari starts in the new position on
1 April 2011 and reports to CEO Mikko Helander. Pajari joins M-real from the
position of SVP, CIO of the Metsäliitto Group, a position she held since 2009.
Before joining the Metsäliitto Group in 2007, she worked as a managing strategy
consultant at Pöyry, PwC Consulting, and IBM. Pajari will become a member of
M-real's senior management remuneration system approved by the Board of
Directors in December 2010.
Board of Directors and Auditors
The Annual General Meeting elected the following individuals as the members of
M-real's Board of Directors: Mikael Aminoff, M.Sc. (Forestry); Martti Asunta,
metsäneuvos (Finnish honorary title); Kari Jordan, vuorineuvos (Finnish
honorary title); Kirsi Komi, LL.M.; Kai Korhonen, M.Sc. (Eng); Liisa Leino, MA
(Education); Juha Niemelä, vuorineuvos (Finnish honorary title); Antti
Tanskanen, Minister; and Erkki Varis, M.Sc. (Eng). The term of office of the
Board members expires at the end of the next Annual General Meeting.
At its constitutive meeting, the Board of Directors elected Kari Jordan as its
Chairman and Martti Asunta as its Vice Chairman. The Board further resolved to
organise the Board committees as follows:
The members of the Auditing Committee are Kirsi Komi, Kai Korhonen, Antti
Tanskanen and Erkki Varis, and the members of the Nomination and Compensation
Committee are Mikael Aminoff, Martti Asunta, Kari Jordan, Liisa Leino and Juha
Niemelä.
Authorized Public Accountants PricewaterhouseCoopers Oy with Johan Kronberg,
Authorized Public Accountant, as Chief Auditor, were elected as the company's
auditors. The term of office of the auditor expires at the end of the next
Annual General Meeting.
Events after the period
M-real signed a letter of intent on the sale of the Premium Paper operations at
the Reflex mill to Papierwerke Lenk AG's affiliate. The agreement would cover
the Premium Paper operations and related properties as well as approximately
100 M-real employees. If the arrangement proceeds as planned, M-real will
recognise a EUR 12 million negative non-recurring item in the Specialty Papers
business area. The cash impact would be approximately EUR 1 million negative.
The divestment does not have a significant impact on M-real's operating result
excluding non-recurring items. It is estimated that the arrangement will become
final during the second quarter of 2011.
In May M-real announced plans to divest the entire Gohrsmühle mill or
alternatively parts of the mill separately based on a Paper Park concept. In
case the divestment would turn out to be unsuccessful M-real commences a
process to discontinue the uncoated fine and the unprofitable parts of the
speciality paper operations at Gohrsmühle mill. If the closures would
materialize, Gohrsmühle mill would produce only cast coated label and packaging
products (Chromolux). M-real is also planning to discontinue the remaining
operation, carbonless paper converting, at Reflex mill in Germany.
M-real has had several unsuccessful attempts with a number of candidates to
divest Alizay paper mill. M-real continues to search for alternatives to divest
the mill. M-real invites credible candidates to a public process which aims at
a divestment of the Alizay paper mill by the end of September 2011 at the
latest. Should M-real fail to find a credible buyer for the mill in the process
within the given time frame, M-real would be forced to consider closing the
Alizay paper mill.
If the measures are implemented as planned M-real's annual sales is expected to
reduce by about EUR 390 million and the operating result to increase by about
EUR 60 million based on actual performances in 2010. Most of the annual
financial impact is expected to be seen in 2012, full impact from 2013 onwards.
As a result from the planned measures M-real's annual paper production capacity
would reduce by about 500 000 tonnes of which about 430 000 tonnes would be
uncoated fine paper and 70 000 tonnes coated specialty papers. Implementations
of the planned measures are subject to finalisation of the information
consultation processes based on the local legislations. Implementations of the
planned measures are subject to finalisation of the consultation processes with
the employees based on the local legislations. Also other future alternatives
than closures will be investigated as part of the consultation processes. These
negotiations will be started at Gohrsmühle and Reflex as soon as possible.
Concerning Alizay the negotiations relating to possible closure will be
commenced in case the divestment process is unsuccessful. M-real will be
proactive in the mitigation of the planned measures' social impacts for the
employees.
In total the planned measures in Alizay, Gohrsmühle anf Reflex are
preliminarily expected to result in approximately EUR 170 million negative
non-recurring result impact. The estimated net cash costs are approximately EUR
50 million. Based on the planned measures Speciality Papers 2Q 2011 result is
expected to include approximately EUR 20 million non-recurring impairments and
cost provisions. Above estimates of the non-recurring financial impacts are
preliminary and they will be further determined when the final decisions for
the planned measures are taken.
Near-term outlook
Demand for board is expected to remain good also during the next few months.
M-real successfully increased the prices of liner in April. The production
downtime relating to the capacity increase investment of the Simpele folding
boxboard machine, to be carried out in May, will have a negative impact on the
result of Consumer Packaging in 2Q 2011.
Demand for and price level of uncoated fine paper and special paper seem to
continue unchanged. The euro-denominated average price of pulp in the second
quarter is estimated to remain at approximately the same level as in the first
quarter.
Cost inflation is estimated to accelerate in 2011. M-real launched a EUR 70
million profit improvement programme in January 2011. The new profit
improvement programme and the earlier programmes are estimated to have a total
positive impact of approximately EUR 90 million on the 2011 result, which is
believed to mainly offset the increased cost inflation.
M-real's 2Q 2011 operating result excluding non-recurring items is expected to
weaken slightly from 1Q 2011 due to the investment shutdown at Simpele mill and
the unfavorable exchange rate development.
Near-term business risks
There is still a risk of the economic recovery of the euro zone slowing down or
coming to a standstill and of the demand for board and paper products, which
has mainly already recovered, experiencing another downturn.
Should the demand for M-real's main products considerably decrease, there would
be a risk of prices declining.
M-real has a good opportunity to cover the increased cost inflation mainly with
its own profit improvement measures. However, there is a risk that the cost
levels of production factors will increase more than the current estimates,
which would have a negative impact on profitability.
M-real has announced new significant plans to eliminate losses of its paper
business. Implementing the reorganisation of operations carries a risk of not
being able to carry out the plans as planned.
The company's short-term and medium-term financial position is secure. As a
result of increasing regulation in the financial market, the operation of the
credit and bond markets may become more difficult, which may hamper the
company's ability to acquire long-term debt financing at a competitive price.
Because the forward-looking estimates and statements of these financial
statements are based on current plans and estimates, they contain risks and
other uncertain factors that may cause the results to differ from the
statements concerning them. In the short term, M-real's result will be
particularly affected by the price of and demand for finished products, raw
material costs, the price of energy, and the exchange rate development. More
information about longer-term risk factors can be found on pages 35-36 of
M-real's 2010 annual report.
M-REAL CORPORATION
Further information:
Matti Mörsky, CFO, tel. +358 (0)10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358
(0)10 465 4335
More information is available starting from 1 pm on 4 May 2011. A conference
call held in English for investors and analysts starts at 3 p.m. (EET).
Conference call participants are requested to dial in and register a few
minutes prior to the start of the conference call on the following numbers:
Europe: +44 (0)20 7162 0025
US: +1 334 323 6201
The conference ID is 891237.
Consumer Packaging
2011 2010 2010 2010 2010 2009 2010 2009
Consumer Packaging Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 299 303 305 310 257 255 1,175 968
EBITDA, EUR million 63 49 48 51 52 50 200 140
excl. non-recurring 63 52 48 51 52 51 203 146
items
Operating result, EUR 50 24 34 38 39 33 135 51
million
excl. non-recurring 50 38 34 38 39 34 149 69
items
excl. non-recurring 16.7 12.5 11.1 12.3 15.2 13.3 12.7 7.1
items, %
Return on capital 27.8 13.7 18.1 21.1 22.8 18.8 19.4 6.9
employed, %
excl. non-recurring 27.8 22.0 18.1 21.1 22.8 19.2 21.5 9.4
items, %
Deliveries, 1,000 tonnes 334 344 353 372 321 327 1,390 1,212
Production, 1,000 tonnes 344 362 353 363 342 342 1,420 1,232
Personnel at the end of 1,441 1,441 1,461 1,679 1,453 1,465 1,441 1,465
period
(Personnel figures of Kaskinen pulp mill have been moved to
Market Pulp and Energy's personnel)
Result for January-March compared to the previous quarter
Operating result excluding non-recurring items for the Consumer Packaging
business area improved from the previous quarter and was EUR 50 million
(Q4/2010: 38). The result was primarily improved by a higher average price due
to price increases. The result was weakened by an increase in energy costs. The
result does not include non-recurring items.
The result for the previous quarter includes EUR -14 million of non-recurring
items, of which the most significant was the impairment loss of EUR 15 million
from fixed assets as well as cost provisions relating to the closure of the
Simpele paper machine.
Deliveries by folding boxboard producers in Europe were up 1 per cent compared
to the previous quarter. Consumer Packaging's deliveries of folding boxboard
were also up 1 per cent.
Result for January-March compared to the corresponding period last year
Operating result excluding non-recurring items for the Consumer Packaging
business area improved compared to the corresponding period last year,
totalling EUR 50 million (Q1/10: 39). The most significant factor improving the
result was the average sales price of board which had increased due to the
price increases achieved. The result was weakened by the increased raw material
and energy prices.
The result does not include non-recurring items. The result for the
corresponding period last year also did not include non-recurring items.
The deliveries of European folding boxboard producers increased by 4 per cent
compared to the corresponding period last year. Consumer Packaging's deliveries
of folding boxboard were up 10 per cent.
Office Papers
2011 2010 2010 2010 2010 2009 2010 2009
Office Papers Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 184 181 164 153 160 132 658 543
EBITDA, EUR million 4 9 17 6 11 6 43 1
excl. non-recurring 4 10 17 6 11 13 44 8
items
Operating result, EUR -6 9 9 -4 0 -54 14 -104
million
excl. non-recurring -6 0 9 -4 0 0 5 -48
items
excl. non-recurring -3.3 0.0 5.5 -2.6 0.0 0.0 0.8 -8.8
items, %
Return on capital -4.4 6.5 8.5 -4.0 -0.1 -47.0 2.8 -21.1
employed, %
excl. non-recurring -4.4 0.0 8.5 -4.0 -0.1 -0.1 1.1 -9.8
items, %
Deliveries, 1,000 tonnes 241 248 212 212 237 198 909 790
Production, 1,000 tonnes 232 238 228 209 235 213 910 795
Personnel at the end of 1,190 1,208 1,213 1,252 1,320 1,374 1,208 1,374
period
Result for January-March compared to the previous quarter
Operating profit excluding non-recurring items for the Office Papers business
area weakened from the previous quarter and stood at EUR -6 million (Q4/2010:
0). The result was weakened by the higher cost of raw materials and energy as
well as the strengthening of the Swedish krona against the euro. The result was
improved by the higher average sales price following price increases.
The result does not include non-recurring items. The result for the previous
quarter included a non-recurring item of EUR 9 million from the reversal of
impairment loss from property, plant and equipment.
Total deliveries by European uncoated fine paper producers were up 8 per cent
compared to the previous quarter. The delivery volume of Office Papers fell by
3 per cent.
Result for January-March compared to the corresponding period last year
Operating result excluding non-recurring items for Office Papers weakened
compared to the corresponding period last year and totalled EUR -6 million
(Q1/2010: 0). The result was weakened by the higher prices of pulp and other
raw materials and energy as well as the strengthening of the Swedish krona
against the euro. The most significant factor improving the result was the
average sales price which had increased due to the price increases.
The result does not include non-recurring items. The result for the
corresponding period last year also did not include non-recurring items.
Total deliveries by European uncoated fine paper producers remained at the same
level as during the corresponding period last year. The delivery volume of
Office Papers increased by 2 per cent.
Speciality Papers
2011 2010 2010 2010 2010 2009 2010 2009
Speciality Papers Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 78 66 75 80 82 73 303 352
EBITDA, EUR million -7 0 5 -18 -4 -8 -17 -65
excl. non-recurring -7 -7 -3 -2 -4 -2 -16 -31
items
Operating result, EUR -9 -31 4 -21 -6 -78 -54 -151
million
excl. non-recurring -9 -8 -7 -5 -6 -6 -26 -51
items
excl. non-recurring -11.5 -12.1 -9.3 -6.3 -7.3 -8.2 -8.6 -14.5
items, %
Return on capital -50.1 -155.6 18.0 -76.3 -19.6 -170.3 -49.1 -55.8
employed, %
excl. non-recurring -50.1 -43.0 -24.5 -18.8 -19.6 -14.1 -23.6 -18.7
items, %
Deliveries, 1,000 60 49 57 66 74 68 246 342
tonnes
Production, 1,000 59 46 52 67 70 63 235 297
tonnes
Personnel at the end 1,006 1,007 1,132 1,165 1,176 1,194 1,007 1,194
of period
(Personnel figures of Hallein pulp mill have been moved to
Market Pulp and Energy's personnel)
Result for January-March compared to the previous quarter
Operating profit excluding non-recurring items for the Specialty Papers
business area decreased from the previous quarter and stood at EUR -9 million
(Q4/2010: -8). The result was weakened by the lower average sales price of
paper and the higher prices of raw materials. The result was improved by an
increase in delivery volumes.
The result does not include non-recurring items. The result of the previous
quarter included a total of EUR -23 million of non-recurring items, which
contained EUR -28 million of impairment losses, EUR 7 million of sales gain
from the partial sales of the Reflex mill, and EUR 2 million of other expenses.
The delivery volume of Specialty Papers increased by 22 per cent compared to
the previous quarter.
Result for January-March compared to the corresponding period last year
Operating result excluding non-recurring items for Specialty Papers weakened
compared to the corresponding period last year and totalled EUR -9 million
(Q1/2010: -6). The result was weakened by the higher prices of pulp and other
raw materials and the lower delivery volume of paper. The result was improved
by the implemented price increases and cost saving measures.
The result does not include non-recurring items. The result for the
corresponding period last year also did not include non-recurring items.
The delivery volume of Specialty Papers decreased by 19 per cent compared to
the corresponding period last year.
Market Pulp and Energy
2011 2010 2010 2010 2010 2009 2010 2009
Market Pulp and Energy Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 110 106 107 126 95 126 434 508
EBITDA, EUR million 13 19 19 23 14 -1 75 -21
excl. non-recurring items 13 19 23 23 14 2 79 -17
Operating result, EUR million 7 -1 12 16 9 -39 36 -91
excl. non-recurring items 7 12 16 16 9 -9 53 -54
excl. non-recurring items, % 6.4 11.3 15.0 12.7 9.5 -7.1 12.2 -10.6
Return on capital employed, % 4.7 -0.4 7.6 11.4 5.9 -22.1 6.0 -12.2
excl. non-recurring items, % 4.7 7.9 10.1 11.4 5.9 -4.8 8.9 -7.2
Deliveries, 1,000 tonnes 174 168 167 194 161 246 690 1,155
Personnel at the end of 302 301 304 297 299 294 301 294
period
(Personnel figures of Kaskinen and Hallein pulp mills have been included
in Market Pulp and Energy's personnel)
Result for January-March compared to the previous quarter
Operating result excluding non-recurring items for the Market Pulp and Energy
business area weakened compared to the previous quarter and stood at EUR 7
million (Q4/2010: 12). The result was weakened by the higher cost of wood,
chemicals, other raw materials and energy. The average selling price of pulp
was at the same level as in the previous quarter.
The result does not include non-recurring items. A total of EUR -13 million net
was recognised in the result of the previous quarter as non-recurring items, of
which impairment losses related to the Hallein mill accounted for EUR -15
million and other non-recurring items EUR +2 million.
Result for January-March compared to the corresponding period last year
Operating result for the Market Pulp and Energy business area, excluding
non-recurring items, weakened compared to the corresponding period last year
and totalled EUR 7 million (Q1/2010: 9). The result was weakened by the higher
cost of wood, chemicals, other raw materials and energy. The result was
improved by the higher selling price of pulp and the higher delivery volumes.
The result does not include non-recurring items. The result for the
corresponding period last year also did not include non-recurring items.
Condensed consolidated statement of comprehensive income
2011 2010 2010 2010
EUR million Q1 Q1 Change Q1-Q4 Q4
--------------------------------------------------------------------------------
Continuing operations
Sales 685 602 83 2,605 665
Other operating income 22 25 -3 108 38
Operating expenses -651 -556 -95 -2,479 -651
Share of results in associated companies *) 21 11 10 78 22
Depreciation and impairment losses -31 -33 2 -166 -78
--------------------------------------------------------------------------------
Operating result 46 49 -3 146 -4
% of sales 6.7 8.1 5.6 -0.6
Share of results in associated companies 0 -2 2 -24 -3
Net exchange gains and losses 2 -6 8 -9 -2
Other net financial items -17 -16 -1 -65 -13
--------------------------------------------------------------------------------
Result before income tax 31 25 6 48 -22
% of sales 4.5 4.2 1.8 -3.3
Income taxes -3 -6 3 -21 0
--------------------------------------------------------------------------------
Result for the period from continuing 28 19 9 27 -22
operations
% of sales 4.1 3.2 1.0 -3.3
Discontinued operations
Result from discontinued operations 0 0 0 0 0
--------------------------------------------------------------------------------
Result for the period 28 19 9 27 -22
--------------------------------------------------------------------------------
Other comprehensive income
Cash flow hedges -3 -5 2 10 10
Available for sale financial assets 2 16 -14 28 -5
Translation differences 0 2 -2 12 5
Share of results in associated companies 0 2 -2 2 0
Income tax relating to components of other 0 0 0 -2 0
comprehensive income
--------------------------------------------------------------------------------
Other comprehensive income, net of tax -1 15 -16 50 10
Total comprehensive income for the period 27 34 -7 77 -12
Result for the period attributable to
Shareholders of parent company 28 19 9 28 -22
Non-controlling interests 0 0 0 -1 0
--------------------------------------------------------------------------------
Total comprehensive income for the period
attributable to
Shareholders of parent company 27 34 -7 78 -12
Non-controlling interests 0 0 0 -1 0
--------------------------------------------------------------------------------
Total 27 34 -7 77 -12
Earnings per share for result attributable to
shareholders of parent company (EUR/share)
from continuing operations 0.08 0.06 0.02 0.09 -0.06
from discontinued operations 0.00 0.00 0.00 0.00 0.00
--------------------------------------------------------------------------------
Total 0.08 0.06 0.02 0.09 -0.06
*) Metsä-Botnia's net result is included from 8.12.2009 on in operating result
at row "Share of results in associated companies"
Condensed consolidated balance sheet
31.3. 31.3. 31.12.
EUR million 2011 % 2010 % 2010 %
--------------------------------------------------------------------------------
ASSETS
Non-current assets
Goodwill 13 0.4 13 0.4 13 0.4
Other intangible assets 35 1.2 40 1.4 26 0.8
Tangible assets 1,047 34.2 1,123 38.3 1,063 34.1
Investments in associated companies 240 7.8 221 7.5 265 8.5
Available for sale investments 317 10.4 328 11.2 314 10.1
Other non-current financial assets 11 0.4 63 2.1 67 2.1
Deferred tax receivables 4 0.1 3 0.1 3 0.1
------------------------------------------
1,667 54.5 1,791 61.0 1,751 56.1
Current assets
Inventories 391 12.8 331 11.3 391 12.6
Accounts receivables and other 582 19.0 651 22.2 567 18.2
receivables
Cash and cash equivalents 418 13.7 162 5.5 408 13.1
------------------------------------------
1,391 45.5 1,144 39.0 1,366 43.9
--------------------------------------
Total assets 3,058 100.0 2,935 100.0 3,117 100.0
--------------------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Equity attributable
to shareholders of parent company 1,021 33.3 950 32.4 994 31.9
Non-controlling interests 5 0.2 6 0.2 5 0.2
------------------------------------------
Total equity 1,026 33.5 956 32.6 999 32.1
Non-current liabilities
Deferred tax liabilities 180 5.9 167 5.7 179 5.8
Post-employment benefit obligations 85 2.8 88 3.0 85 2.7
Provisions 15 0.5 52 1.8 35 1.1
Borrowings 1,009 33.0 949 32.3 1,016 32.6
Other liabilities 22 0.7 31 1.0 26 0.8
------------------------------------------
1,311 42.9 1,287 43.8 1,341 43.0
Current liabilities
Provisions 21 0.7 28 1.0 7 0.2
Current borrowings 273 8.9 209 7.1 334 10.7
Accounts payable and other 427 14.0 455 15.5 436 14.0
liabilities
------------------------------------------
721 23.6 692 23.6 777 24.9
Total liabilities 2,032 66.5 1,979 67.4 2,118 67.9
--------------------------------------------------------------------------------
Total shareholders' equity and 3,058 100.0 2,935 100.0 3,117 100.0
liabilities
--------------------------------------------------------------------------------
Condensed consolidated cash flow statement
2011 2010 2010 2010
EUR million Q1 Q1 Q1-Q4 Q4
--------------------------------------------------------------------------------
Result for the period 27 19 27 -22
Total adjustments 19 22 108 33
Change in working capital -36 -68 -86 0
--------------------------------------------------------------------------------
Cash flow arising from operations 10 -27 49 11
--------------------------------------------------------------------------------
Net financial items 27 -12 -102 -31
Income taxes paid -2 -4 -16 2
--------------------------------------------------------------------------------
Net cash flow arising from operating activities 35 -43 -69 -18
--------------------------------------------------------------------------------
Investments in intangible and tangible assets -12 -7 -66 -18
Divestments of assets and other 54 6 86 31
--------------------------------------------------------------------------------
Net cash flow arising from investing activities 42 -1 20 13
--------------------------------------------------------------------------------
Changes in non-current loans and in other financial -67 -290 -39 -24
items
Dividends paid 0 -2 -2 0
--------------------------------------------------------------------------------
Net cash flow arising from financing activities -67 -292 -41 -24
--------------------------------------------------------------------------------
Changes in cash and cash equivalents 10 -336 -90 -29
--------------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 408 497 497 437
Translation difference in cash and cash equivalents 0 1 1 0
Changes in cash and cash equivalents 10 -336 -90 -29
------------------------
Cash and cash equivalents at end of period 418 162 408 408
Net financial items for the period include dividend of EUR 45 million paid by
Metsä-Botnia
Net financial items for the period include some EUR 17 million payments related
to equity hedging
(Q1/2010 some EUR one million). Net financial items of financial year 2010
include some EUR 27
million payments related to equity hedging and some EUR 10 million for October
December.
Statement of changes in shareholders' equity 2010
Equity attributable to shareholders of parent
company
EUR million Share Share Trans- Fair Retain Total Non-co Total
capita pre- lation value ed ntrol-
l mium differ and earnin ling
accoun - other gs inter-
t ences reserv ests
es
--------------------------------------------------------------------------------
Shareholders' 558 667 2 194 -504 916 8 924
equity,
1 January 2010
--------------------------------------------------------------------------------
Comprehensive
income for the
period
Result for the 19 19 0 19
period
Other
comprehensive
income
Cash flow hedges -5 -5 -5
Available for sale 16 16 16
investments
Translation 2 2 0 2
differences
Share of other 2 0 2 2
comprehensive
income of
associated
companies
Income tax 3 -3 0 0
relating to
components of
other
comprehensive
income
-------------------------------------------------------------
Other 7 8 0 15 0 15
comprehensive
income total
-------------------------------------------------------------
Comprehensive 7 8 19 34 0 34
income total
Related party
transaction
Dividends paid -2 -2
--------------------------------------------------------------------------------
Shareholders' 558 667 9 202 -485 950 6 956
equity, 31 March
2010
--------------------------------------------------------------------------------
Statement of changes in shareholders' equity 2011
Equity attributable to shareholders of parent
company
EUR million Share Share Trans- Fair Retain Total Non-co Total
capita pre- lation value ed ntrol-
l mium differ and earnin ling
accoun - other gs inter-
t ences reserv ests
es
--------------------------------------------------------------------------------
Shareholders' 558 667 23 223 -476 994 5 999
equity,
1 January 2011
--------------------------------------------------------------------------------
Comprehensive
income for the
period
Result for the 28 28 0 28
period
Other
comprehensive
income
Cash flow hedges -3 -3 -3
Available for sale 2 2 2
investments
Translation 0 0 0
differences
Share of other 0 0 0 0
comprehensive
income of
associated
companies
Income tax 0 0 0 0
relating to
components of
other
comprehensive
income
-------------------------------------------------------------
Other 0 -1 0 -1 -1
comprehensive
income total
-------------------------------------------------------------
Comprehensive 0 -1 28 27 0 27
income total
Related party
transaction
Dividends paid 0 0
--------------------------------------------------------------------------------
Shareholders' 558 667 23 222 -448 1,021 5 1,026
equity, 31 March
2011
--------------------------------------------------------------------------------
Key ratios 2011 2010 2010 2010
Q1 Q1 Q4 Q4
--------------------------------------------------------------------------------
Sales, EUR million 685 602 2,605 665
EBITDA, EUR million 77 82 312 74
excl. non-recurring items, EUR million 74 72 305 71
EBITDA, % 11.2 13.6 12.0 11.1
excl. non-recurring items, EUR million 10.8 12.0 11.7 10.7
--------------------------------------------------------------------------------
Operating result, EUR million 46 49 146 -4
excl. non-recurring items, EUR million 43 39 173 37
EBIT, % 6.7 8.1 5.6 -0.6
excl. non-recurring items, EUR million 6.3 6.5 6.6 5.6
--------------------------------------------------------------------------------
Result from continuing operations
before taxes, EUR million 31 25 48 -22
excl. non-recurring items, EUR million 28 15 92 20
--------------------------------------------------------------------------------
Result for the period
from continuing operations, EUR million 28 19 27 -22
from discontinued operations, EUR million 0 0 0 0
---------------------------
Total, EUR million 28 19 27 -22
--------------------------------------------------------------------------------
Earnings per share
from continuing operations, EUR 0.08 0.06 0.09 -0.06
from discontinued operations, EUR 0.00 0.00 0.00 0.00
---------------------------
Total, EUR 0.08 0.06 0.09 -0.06
--------------------------------------------------------------------------------
Earnings per share, excl. non-recurring items, EUR 0.07 0.03 0.23 0.07
--------------------------------------------------------------------------------
Return on equity, % 10.8 7.9 2.8 -8.7
excl. non-recurring items, % 9.5 3.6 7.6 8.7
--------------------------------------------------------------------------------
Return on capital employed, % 8.4 9.1 5.7 -0.7
excl. non-recurring items, % 7.8 7.3 7.6 6.3
--------------------------------------------------------------------------------
Equity ratio at end of period, % 33.6 32.7 32.1 32.1
Gearing ratio at end of period, % 125 121 135 135
Net gearing ratio at end of period, % 78 86 83 83
--------------------------------------------------------------------------------
Shareholders' equity per share at end of period, EUR 3.11 2.90 3.03 3.03
Interest-bearing net liabilities, EUR million 799 821 827 827
Gross capital expenditure, EUR million 12 7 66 18
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paper business 301 311 1,155 297
Consumer Packaging 334 321 1,390 344
--------------------------------------------------------------------------------
Personnel at the end of period
In continuing operations 4,515 4,796 4,538 4,538
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
Securities and guarantees 2011 2010 2010
EUR million Q1 Q1 Q1-Q4
--------------------------------------------------------------------------------
For own liabilities 191 116 192
On behalf of associated companies 0 0 0
On behalf of Group companies 14 0 13
On behalf of others 3 1 1
--------------------------------------------------------------------------------
Total 208 117 206
--------------------------------------------------------------------------------
Open derivative contracts 2011 2010 2010
EUR million Q1 Q1 Q1-Q4
--------------------------------------------------------------------------------
Interest rate derivatives 1,305 999 1,248
Currency derivatives 1,939 2,769 2,149
Other derivatives 77 169 83
--------------------------------------------------------------------------------
Total 3,321 3,937 3,480
--------------------------------------------------------------------------------
The fair value of open derivative contracts calculated at market value at
the end of the review period was EUR -0.1 million (EUR -15.4 million 31
December 2010).
Also include other closed contracts to a total amount of EUR 1,816.0
million (EUR 1,787.2 million 31 December 2010).
Commitments related to fixed assets 2011 2010 2010
EUR million Q1 Q1 Q1-Q4
--------------------------------------------------------------------------------
Payments due in following 12 months 0 0 0
Payments due later 2 1 2
Changes in property, plant and equipment 2011 2010 2010
EUR million Q1 Q1 Q1-Q4
--------------------------------------------------------------------------------
Carrying value at beginning of period 1,063 1,130 1,130
Capital expenditure 12 7 65
Decreases 0 0 -16
Depreciation and impairment charges -29 -32 -159
Translation difference 1 18 43
--------------------------------------------------------------------------------
Carrying value at end of period 1,047 1,123 1,063
Related-party transactions
Transactions and balances with parent and sister companies 2011 2010 2010
EUR million Q1 Q1 Q1-Q4
--------------------------------------------------------------------------------
Sales 16 9 39
Other operating income 1 1 14
Purchases 214 174 839
Dividend income 45
Interest income 1 3 8
Interest expences 1 0 1
Non-current receivables 4 53 53
Current receivables 74 164 82
Non-current liabilities 0 0 0
Current liabilities 233 127 277
Transactions with associated companies 2011 2010 2010
EUR million Q1 Q1 Q1-Q4
--------------------------------------------------------------------------------
Sales 0 0 0
Purchases 0 0 2
Non-current receivables 0 0 0
Current receivables 8 8 8
Current liabilities 3 2 2
Transactions with Metsä-Botnia include in transaction with sister
companies from 8.12.2009 on.
Accounting policies
The financial statements were prepared in accordance with accounting policies
set out in International Accounting Standard 34 and in the M-real´s Annual
Report for 2010.
The figures in the financial statement are unaudited.
Calculation of key ratios
Return on equity (%) = (Result from continuing operations before tax
- direct taxes) per (Shareholders' equity
(average))
Return on capital employed (%) = (Result from continuing operations before tax
+ interest expenses,net exchange gains/losses
and other financial expenses) per
(Shareholders' equity
+ interest-bearing borrowings (average))
Equity ratio (%) = (Shareholders' equity) per (Total assets -
advance payments received)
Gearing ratio (%) = (Interest-bearing borrowings)
per (Shareholders' equity)
Net gearing ratio (%) = (Interest-bearing borrowings
- liquid funds
- interest-bearing receivables)
per (Shareholders' equity)
Earnings per share = (Profit attributable to shareholders of
parent company)
per (Adjusted number of shares (average))
Shareholders´equity per share = (Equity attributable to shareholders of parent company)
per (Adjusted number of shares at the end of
period)
Sales and result by segment
2011 2010 2010 2010 2010 2009 2010 2009
EUR million Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Consumer Packaging 299 303 305 310 257 255 1,175 1,175
Office Papers 184 181 164 153 160 132 658 543
Speciality Papers 78 66 75 80 82 73 303 352
Market Pulp and Energy 110 106 107 126 95 126 434 508
Other operations 57 55 53 44 46 59 198 189
Internal sales -43 -46 -42 -37 -38 -39 -163 -128
--------------------------------------------------------------------------------
Sales 685 665 662 676 602 606 2,605 2,432
Consumer Packaging 63 49 48 51 52 50 200 140
Office Papers 4 9 17 6 11 6 43 1
Speciality Papers -7 0 5 -18 -4 -8 -17 -65
Market Pulp and Energy 13 19 19 23 14 -1 75 -21
Other operations 4 -3 6 -1 9 85 11 33
--------------------------------------------------------------------------------
EBITDA 77 74 95 61 82 132 312 88
% of sales 11.2 11.1 14.4 9.0 13.6 21.8 12.0 3.6
Consumer Packaging 50 24 34 38 39 33 135 51
Office Papers -6 9 9 -4 0 -54 14 -104
Speciality Papers -9 -31 4 -21 -6 -78 -54 -151
Market Pulp and Energy 7 -1 12 16 9 -39 36 -91
Other operations 4 -5 7 6 7 86 15 28
--------------------------------------------------------------------------------
Operating result 46 -4 66 35 49 -52 146 -267
% of sales 6.7 -0.6 10.0 5.2 8.1 -8.6 5.6 -11.0
Non-recurring items in
operating result
Consumer Packaging 0 -14 0 0 0 -1 -14 -18
Office Papers 0 9 0 0 0 -54 9 -56
Speciality Papers 0 -23 11 -16 0 -72 -28 -100
Market Pulp and Energy 0 -13 -4 0 0 -30 -17 -37
Other operations 3 0 5 8 10 98 23 94
--------------------------------------------------------------------------------
Group 3 -41 12 -8 10 -59 -27 -117
Consumer Packaging 63 52 48 51 52 51 203 146
Office Papers 4 10 17 6 11 13 44 8
Speciality Papers -7 -7 -3 -2 -4 -2 -16 -31
Market Pulp and Energy 13 19 23 23 14 2 79 -17
Other operations 1 -3 0 -1 -1 -13 -5 -62
--------------------------------------------------------------------------------
EBITDA, excl. non-recurring 74 71 85 77 72 51 305 44
items
% of sales 10.8 10.7 12.8 11.4 12.0 8.4 11.7 1.8
Consumer Packaging 50 38 34 38 39 34 149 69
Office Papers -6 0 9 -4 0 0 5 -48
Speciality Papers -9 -8 -7 -5 -6 -6 -26 -51
Market Pulp and Energy 7 12 16 16 9 -9 53 -54
Other operations 1 -5 2 -2 -3 -12 -8 -66
--------------------------------------------------------------------------------
Operating result, 43 37 54 43 39 7 173 -150
excl. non-recurring items
% of sales 6.3 5.6 8.2 6.4 6.5 1.2 6.6 -6.2
2011 2010 2010 2010 2010 2009 2010 2009
Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Operating result, excl. non-recurring
items, % of sales
Consumer Packaging 16.7 12.5 11.1 12.3 15.2 13.3 12.7 7.1
Office Papers -3.3 0.0 5.5 -2.6 0.0 0.0 0.8 -8.8
Speciality Papers -11.5 -12.1 -9.3 -6.3 -7.3 -8.2 -8.6 -14.5
Market Pulp and Energy 6.4 11.3 15.0 12.7 9.5 -7.1 12.2 -10.6
--------------------------------------------------------------------------------
Group 6.3 5.6 8.2 6.4 6.5 1.2 6.6 -6.2Metsä-Botnia's net result is included in operating result at row "Share of
results in associated companies" from 8.12.2009 on, before that Metsä-Botnia
was consolidated on proportionate basis line by line.
Return on capital
employed %
Consumer Packaging 27.8 13.7 18.1 21.1 22.8 18.8 19.4 6.9
Office Papers -4.4 6.5 8.5 -4.0 -0.1 -47.0 2.8 -21.1
Speciality Papers -50.1 -155.6 18.0 -76.3 -19.6 -170.3 -49.4 -55.8
Market Pulp and Energy 4.7 -0.4 7.6 11.4 5.9 -22.1 6.0 -12.2
--------------------------------------------------------------------------------
Group 8.4 -0.7 11.6 3.8 9.1 -8.7 5.7 -8.9
Capital employed, EUR
million
Consumer Packaging 739 711 749 746 691 676 711 676
Office Papers 539 557 490 423 442 431 557 431
Speciality Papers 69 64 94 105 116 134 64 134
Market Pulp and Energy 631 627 659 601 568 567 627 567
Unallocated and 330 390 380 415 298 526 390 526
eliminations
--------------------------------------------------------------------------------
Group 2,308 2,349 2,372 2,290 2,115 2,334 2,349 2,334
The capital employed for a segment includes its assets (goodwill, other
intangible assets, tangible assets, biological assets, investments in
associates, inventories, accounts receivables, prepayments and accrued income
(excluding interest and taxes)), less the segment's liabilities (accounts
payable, advance payments, accruals and deferred income (excluding interest and
taxes)).
Deliveries 2011 2010 2010 2010 2010 2009 2010 2009
1,000 tonnes Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------------------------------
Consumer Packaging 334 344 353 372 321 327 1,390 1,212
Office Papers 241 248 212 212 237 198 909 790
Speciality Papers 60 49 57 66 74 68 246 342
Paper business, total 301 297 269 278 311 266 1,155 1,132
-----------------------------------------------------------------------
Market Pulp 174 168 167 194 161 246 690 1,155
Production 2011 2010 2010 2010 2010 2009 2010 2009
1,000 tonnes Q1 Q4 Q3 Q2 Q1 Q4 Q1-Q4 Q1-Q4
-----------------------------------------------------------------------
Consumer Packaging 344 362 353 363 342 342 1,420 1,232
Office Papers 232 238 228 209 235 213 910 795
Speciality Papers 59 46 52 67 70 63 235 297
Paper business, total 291 284 280 276 305 276 1,145 1,092
-----------------------------------------------------------------------
Metsä-Botnia pulp 1) 164 164 160 164 164 203 652 863
M-real pulp 340 327 331 308 329 316 1,295 1,120
1) corresponds to M-real's ownership share of 30% in Metsä-Botnia
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