2010-10-27 11:00:00 CEST
2010-10-27 11:00:03 CEST
REGULATED INFORMATION
M-real - Interim report (Q1 and Q3)
M-real's operating result excluding non-recurring items for the third quarter of 2010 EUR 54 million
M-real Corporation Interim Report 27 October 2010 at 12 M-real's operating result excluding non-recurring items for the third quarter of 2010 EUR 54 million Result for January-September 2010 * Sales EUR 1,940 million (Q1-Q3/2009: 1,826) * Operating result excluding non-recurring items EUR 136 million (-157). Operating result including non-recurring items EUR 150 million (-215) * Result before taxes excluding non-recurring items EUR 72 million (-215). Result before taxes including non-recurring items EUR 70 million (-284) * Earnings per share from continuing operations excluding non-recurring items EUR 0.16 (-0.64) and including non-recurring items EUR 0.15 (-0.88) Result for the third quarter * Sales EUR 662 million (Q2/2010: 676) * Operating result excluding non-recurring items EUR 54 million (43). Operating result including non-recurring items EUR 66 million (35) * Result before taxes excluding non-recurring items EUR 33 million (24). Result before taxes including non-recurring items EUR 45 million (0) * Earnings per share from continuing operations excluding non-recurring items EUR 0.08 (0.05) and including non-recurring items EUR 0.12 (-0.03) Events during the third quarter of 2010 * The Alizay pulp mill was shut down permanently. * M-real continued to increase prices of all of its main products. * M-real plans to continue Simpele's speciality paper production at the Gohrsmühle mill. * Standard & Poor's and Moody's Investor Service upgraded M-real's credit rating. Events after the period * M-real decided to invest in the expansion of board production and sheeting operations at the Simpele mill. * M-real signed an agreement with Metsä Tissue Corporation on partial divestment of the Reflex mill. “Our profitability improved further, and the quarterly result was the best we have had in years. Annual contract negotiations with the biggest cartonboard customers, concerning price increases and additional deliveries, have proceeded as targeted. The demand outlook in cartonboard is excellent, and thus we have made significant investment decisions. The profit improvement measures related to the paper businesses will continue.” Mikko Helander, CEO -------------------------------------------------------------------------------- | KEY FIGURES | 2010 | 2010 | 2010 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | | Q3 | Q2 | Q1 | Q3 | Q1-Q3 | Q1-Q3 | | -------------------------------------------------------------------------------- | Sales, EUR million | 662 | 676 | 602 | 618 | 1,940 | 1,826 | 2,432 | -------------------------------------------------------------------------------- | EBITDA, EUR million | 95 | 61 | 82 | 27 | 238 | -44 | 88 | -------------------------------------------------------------------------------- | excl. non-recurring | 85 | 77 | 72 | 26 | 234 | -7 | 44 | | items, EUR million | | | | | | | | -------------------------------------------------------------------------------- | EBITDA, % | 14.4 | 9.0 | 13.6 | 4.4 | 12.3 | -2.4 | 3.6 | -------------------------------------------------------------------------------- | excl. Non-recurring | 12.8 | 11.4 | 12.0 | 4.2 | 12.1 | -0.4 | 1.8 | | items, % | | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 66 | 35 | 49 | -24 | 150 | -215 | -267 | | EUR million | | | | | | | | -------------------------------------------------------------------------------- | excl. non-recurring | 54 | 43 | 39 | -22 | 136 | -157 | -150 | | items, EUR million | | | | | | | | -------------------------------------------------------------------------------- | EBIT, % | 10.0 | 5.2 | 8.1 | -3.9 | 7.7 | -11.8 | -11.0 | -------------------------------------------------------------------------------- | excl. Non-recurring | 8.2 | 6.4 | 6.5 | -3.6 | 7.0 | -8.6 | -6.2 | | items, % | | | | | | | | -------------------------------------------------------------------------------- | Result before taxes | | | | | | | | -------------------------------------------------------------------------------- | from continuing | 45 | 0 | 25 | -72 | 70 | -284 | -358 | | operations, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | excl. non-recurring | 33 | 24 | 15 | -70 | 72 | -215 | -230 | | items, EUR million | | | | | | | | -------------------------------------------------------------------------------- | Result for the | | | | | | | | | period | | | | | | | | -------------------------------------------------------------------------------- | from continuing | 38 | -8 | 19 | -73 | 49 | -271 | -331 | | operations, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | from discontinued | 0 | 0 | 0 | -3 | 0 | -15 | -23 | | operations, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | Total, EUR million | 38 | -8 | 19 | -76 | 49 | -286 | -354 | -------------------------------------------------------------------------------- | Result per share | | | | | | | | -------------------------------------------------------------------------------- | from continuing | 0.12 | -0.03 | 0.06 | -0.22 | 0.15 | -0.83 | -1.02 | | operations, EUR | | | | | | | | -------------------------------------------------------------------------------- | from discontinued | 0.00 | 0.00 | 0.00 | -0.01 | 0.00 | -0.05 | -0.07 | | operations, EUR | | | | | | | | -------------------------------------------------------------------------------- | Total, EUR | 0.12 | -0.03 | 0.06 | -0.23 | 0.15 | -0.88 | -1.09 | -------------------------------------------------------------------------------- | Result per share | | | | | | | | -------------------------------------------------------------------------------- | excl. non-recurring | 0.08 | 0.05 | 0.03 | -0.22 | 0.16 | -0.64 | -0.66 | | items, EUR | | | | | | | | -------------------------------------------------------------------------------- | Return on equity, % | 15.5 | -3.1 | 7.9 | -27.2 | 6.8 | -29.7 | -28.6 | -------------------------------------------------------------------------------- | excl. non-recurring | 10.7 | 6.8 | 3.6 | -26.6 | 7.1 | -22.9 | -18.3 | | items, % | | | | | | | | -------------------------------------------------------------------------------- | Return on capital | 11.6 | 3.8 | 9.1 | -2.3 | 7.8 | -8.5 | -8.9 | | employed, % | | | | | | | | -------------------------------------------------------------------------------- | excl. non-recurring | 9.6 | 8.1 | 7.3 | -2.0 | 8.0 | -5.6 | -4.5 | | items, % | | | | | | | | -------------------------------------------------------------------------------- | Equity ratio at end | 31.8 | 31.1 | 32.7 | 28.5 | 31.8 | 28.5 | 29.6 | | of period, % | | | | | | | | -------------------------------------------------------------------------------- | Gearing ratio at end | 135 | 140 | 121 | 170 | 135 | 170 | 153 | | of period, % | | | | | | | | -------------------------------------------------------------------------------- | Net gearing ratio at | 81 | 89 | 86 | 121 | 81 | 121 | 84 | | end of period, % | | | | | | | | -------------------------------------------------------------------------------- | Interest-bearing net | 821 | 845 | 821 | 1,262 | 821 | 1,262 | 777 | | liabilities, EUR | | | | | | | | | million | | | | | | | | -------------------------------------------------------------------------------- | Gross investments, | 31 | 10 | 7 | 23 | 48 | 55 | 73 | | EUR million | | | | | | | | -------------------------------------------------------------------------------- | Deliveries, 1 000 | | | | | | | | | tonnes | | | | | | | | -------------------------------------------------------------------------------- | Paper businesses | 269 | 278 | 311 | 275 | 858 | 866 | 1,132 | -------------------------------------------------------------------------------- | Consumer Packaging | 353 | 372 | 321 | 315 | 1,046 | 885 | 1,212 | -------------------------------------------------------------------------------- | Personnel at the end | | | | | | | | | of period | | | | | | | | -------------------------------------------------------------------------------- | in continuing | 4,682 | 4,946 | 4,796 | 5,649 | 4,682 | 5,649 | 4,903 | | operations | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBITDA = Earnings before interest, taxes, depreciation and impairment | | charges | -------------------------------------------------------------------------------- Result for July-September compared with the previous quarter M-real's sales totalled EUR 662 million (Q2/2010: 676). Comparable sales were down 2.1 per cent. The operating result was EUR 66 million (35), and the operating result excluding non-recurring items was EUR 54 million (43). A net total of EUR 12 million was recognised as non-recurring items as follows: * EUR 11 million positive non-recurring item, of which EUR 8 million concerned the release of a cost provision and EUR 3 million the reversal of impairment loss in Speciality Papers business area as a result of partial divestment of the Reflex mill to Metsä Tissue and lower reorganisation expenses at Gohrsmühle * EUR 4 million additional cost provision in Market Pulp and Energy business area relating to the closure of the Alizay pulp mill * EUR 6 million capital gain related to patents sold to Sappi in Other operations In the previous quarter, the non-recurring items totalled EUR -8 million net related to the planned closure of two paper machines at the Reflex mill, reorganisation of Reflex and Gohrsmühle organisations and the agreed sale of the Kangas paper machine 2. The operating result excluding non-recurring items was up from the previous quarter, thanks to the implemented price increases in paper and board, higher price of pulp and implemented cost savings. The result was weakened by annual maintenance shutdowns at the board mills. In addition, the delivery volumes of Speciality Papers business area decreased. The operating result of the review period includes a capital gain of EUR 4 million from the sold Sappi shares booked in other operating income. Most of the Sappi shares, received in connection with the sale of Graphic Papers business area at the end of 2008, have been sold. The total paper business delivery volume in July-September was 269,000 tonnes (278,000). The deliveries of Consumer Packaging totalled 353,000 tonnes (372,000). Financial income and expenses totalled EUR -20 million (-17). Exchange differences from accounts receivable, trade payables, financial items and the valuation of currency hedging were EUR -1 million (0). Net interest and other financial income and expenses stood at EUR -19 million (-17). Other financial expenses include valuation gain of EUR 2 million on interest rate hedges (valuation gain of 0). In July-September, the result from continuing operations before taxes was EUR 45 million (0). The result from continuing operations before taxes and excluding non-recurring items was EUR 33 million (24). Income taxes, including the change in deferred tax liabilities, totalled EUR -7 million (-8). Earnings per share were EUR 0.12 (-0.03). Earnings per share from continuing operations, excluding non-recurring items, were EUR 0.08 (0.05). Return on equity was 15.5 per cent (-3.1), and 10.7 per cent (6.8) excluding non-recurring items. Return on capital employed was 11.6 per cent (3.8), and excluding non-recurring items, 9.6 per cent (8.1). Result for January-September compared with the corresponding period last year M-real's sales totalled EUR 1,940 million (1,826). Comparable sales were up 18.6 per cent. The operating result was EUR 150 million (-215), and the operating result excluding non-recurring items was EUR 135 million (-157). A net total of EUR 14 million was recognised as non-recurring items in the operating result for January-September, the most significant items being: * EUR 8 million net cost provision in Speciality Papers business area, related to the reorganisation of M-real Zanders and partial divestment of the Reflex mill to Metsä Tissue. The EUR 16 million provision booked in the second quarter was released by EUR 8 million. * EUR 3 million reversal of impairment loss concerning partial divestment of the Reflex mill to Metsä Tissue in Speciality Papers business area * EUR 10 million income item in operating profit in Other operations, as well as a EUR 2 million income item allocated to the result of discontinued operations, both of which were related to IT arrangements * EUR 8 million reversal of impairment loss in Other operations, concerning the agreed sale of the Kangas paper machine 2 * EUR 6 million capital gain related to patents sold to Sappi in Other operations * EUR 4 million additional cost provision in Market Pulp and Energy business area relating to the closure of the Alizay pulp mill The non-recurring items of the corresponding period in the previous year were EUR -58 million net. The operating result excluding non-recurring items compared with the corresponding period last year was improved by increased delivery volumes, higher pulp price, implemented price increases in board and paper, and cost savings. The investment shutdown at the Husum pulp mill, the stevedore strike in Finland, and the strengthening of the Swedish krona against the euro weakened the result. The operating result of the review period includes a capital gain of EUR 5 million from sold Sappi shares booked in other operating income. Most of the Sappi shares, received in connection with the sale of Graphic Papers business area at the end of 2008, have been sold. The total paper business delivery volume in January-September was 858,000 tonnes (866,000). The deliveries of Consumer Packaging totalled 1,046,000 tonnes (885,000). Financial income and expenses in the period totalled EUR -59 million (-55). The financial income of the corresponding period last year included a profit of some EUR 31 million from a partial repurchase of M-real's own bonds. In addition, last year's financial expenses included a loss of approximately EUR 30 million, which was due to premature repayment of the note issued to Sappi. Exchange differences from accounts receivable, trade payables, financial items and the valuation of currency hedging were EUR -7 million (4). Net interest and other financial income and expenses stood at EUR -52 million (-59). Other financial expenses include EUR 2 million of valuation gains on interest rate hedges (valuation gain of 9). The period's result from continuing operations before taxes was EUR 70 million (-284). The result includes an impairment loss of EUR -16 million, related to M-real's holding in Myllykoski Paper Oy, reported as a non-recurring item in Share of results in associated companies after the operating result. The result for the corresponding period last year included a non-recurring item of EUR -11 million in the line Share of results in associated companies from the Sunila pulp mill divested by Myllykoski Paper during the second quarter. The result from continuing operations before taxes, excluding non-recurring items, was EUR 72 million (-215). Income taxes, including the change in deferred tax liabilities, came to EUR -21 million (+13). Earnings per share were EUR 0.15 (-0.88). Earnings per share from continuing operations, excluding non-recurring items, were EUR 0.16 (-0.64). Return on equity was 6.8 per cent (-29.7), and excluding non-recurring items, 7.1 per cent (-22.9). Return on capital employed was 7.8 per cent (-8.5), and excluding non-recurring items, 8.0 per cent (-5.6). Personnel At the end of September, the company had 4,682 employees (31 December 2009: 4,903), of which 1,795 (1,824) worked in Finland. In January-September, M-real employed an average of 4,844 people (2009: 5,913). The head count in January-November 2009 included 30 per cent of Metsä-Botnia's employees. Investments Gross investments in January-September totalled EUR 48 million (2009: 55). In 2009, the January-September investments included a EUR 14 million share of Metsä-Botnia's investments, based on M-real's 30 per cent share of ownership and Metsä-Botnia's consolidation method used until 8 December 2009. Structural change M-real has concluded most of the actions related to the December 2009 announced EUR 80 million profit improvement programme for 2010. The most significant implemented measures are * permanent closure of the Alizay pulp mill in France * closure of two speciality paper machines at Reflex, Germany * streamlining of the organisation and management model in M-real Zanders * a new EUR 20 million internal profit improvement programme covering all business areas. In addition, the profit improvement programme includes EUR 22 million investment at the Husum mill to improve its energy efficiency. The investment is proceeding according to plan. The above mentioned measures and the profit improvement programmes implemented in the previous years are estimated to impact positively approximately EUR 100 million in 2010 divided as follows * the profit improvement programme of 2010 EUR 40 million * earlier implemented profit improvement programmes EUR 60 million The Reflex mill in Germany will be developed according to the Paper Park concept, the target being to find industrial partners to the mill site and thus create new jobs. In October 2010, M-real announced the first phase of the development, partial divestment of the Reflex mill to Metsä Tissue. The divestment is described further in section Events after the period below. The negotiations to reduce the headcount at M-real Zanders mills by 220 were concluded in June. In July, M-real exercised its option to purchase former Kangas paper mill real estate and land area from Sappi for a price of EUR 13 million. The deal was part of an agreement with which M-real and Sappi settled the issues still open related to the divestment of M-real's Graphic Papers business area in 2008. In September, the city of Jyväskylä decided to use its right of pre-emption based on law to purchase the Kangas mill real estate from M-real for an equivalent price of EUR 13 million. In September, M-real announced that in order to improve its profitability, the company is planning to continue Simpele's speciality paper production at the Gohrsmühle mill in Germany and to close the Simpele paper machine. The potential transfer of the production would improve M-real's annual operating result by approximately EUR 4 million. As a result of the planned closure of the Simpele paper mill, Consumer Packaging's Q4 result is expected to include a cost provision of EUR 12 million as a non-recurring item. The non-recurring cash costs, if any, will be determined once the statutory cooperation negotiations with employees have been completed, no later than on 5 November 2010. M-real's structural change from a paper company to become more clearly a packaging company has proceeded according to plan. The focus has increasingly shifted from restructuring to development, as is demonstrated by the Simpele and Kemiart Liners investments scheduled for 2011. Efforts to solve the problems of loss-making paper units are continued. Success in this area would further clearly improve M-real's profitability. The strategic review of the paper business continues. Financing At the end of September, M-real's equity ratio was 31.8 per cent (31 December 2009: 29.6) and the gearing ratio was 135 per cent (153). The net gearing ratio was 81 (84). 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 net gearing ratio at the end of September was approximately 63 per cent (63) and the equity ratio some 37 per cent (35). The change in the fair value of investments available for sale was approximately EUR 33 million, mainly based on the increase in the fair value of the Pohjolan Voima shares. At the end of September, net interest-bearing liabilities totalled EUR 821 million (777). Of these, foreign-currency-denominated loans accounted for 8 per cent, floating-rate loans for 83 per cent and fixed-rate loans for the rest. At the end of September, the average interest rate on loans was 5.0 per cent and the average maturity of long-term loans 2.8 years. The interest rate maturity was 7.3 months at the end of September. During the period, the interest rate maturity has varied between 6 and 10 months. Cash flow from operating activities amounted to EUR 38 million (Q1-Q3/2009: 35). Working capital was up by EUR 86 million (down 131). At the end of September, an average of 5.1 months of the net foreign currency exposure was hedged. The degree of hedging varied between 4 and 5 months during the period. Approximately 77 per cent of the non-euro-denominated equity was hedged at the end of September. Liquidity continues at a good level. At the end of September, liquidity was EUR 456 million, of which EUR 19 million consisted of undrawn pension premium (TyEL) loans and EUR 437 million of liquid assets and investments. EUR 232 million of the liquid assets and investments are assets deposited by other Metsäliitto Group's businesses in M-real's subsidiary Metsä Group Financial Services Oy. 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 about EUR 520 million. In January, M-real redeemed early a EUR 250 million item of the bond maturing in December 2010 at a 100 per cent redemption price, according to the terms of the bond. At the end of June, the company announced that it would redeem the remaining EUR 90 million. The early redemption took place on 30 July 2010 and the redemption price was 100 per cent of the par value according to the terms of the notes. In January-September 2010, M-real raised pension loans (TyEL) worth a total of EUR 135 million with a maturity of ten years. M-real has decided to centralise its employee pension insurance policies with Varma Mutual Pension Insurance Company. With these measures, M-real extended the maturity profile of its loans and strengthened its liquidity. In August, Standard & Poor's upgraded M-real's CCC+ credit rating to B-. The rating outlook remains stable. The upgrade has a positive impact of approximately EUR 1 million on M-real's annual financing costs. In September, Moody's Investors Service upgraded M-real's Caa1 rating to B3. The rating outlook was changed to positive. The upgrade has a positive impact of approximately EUR 1 million on M-real's annual financing costs. Shares In January-September, the highest price for M-real's B share on the NASDAQ OMX Helsinki was EUR 3.26, the lowest EUR 1.46, and the average price EUR 2.40. At the end of September, the price of the B share was EUR 2.93. At the end of 2009, the price of the B share was EUR 1.53, while the average price in 2009 was EUR 0.66. The trading volume of B shares was EUR 681 million, 97 per cent of the share capital. The market value of the A and B shares totalled EUR 972 million at the end of September. Metsäliitto Cooperative owned 38.8 per cent of the shares at the end of September. The voting rights conferred by these shares amounted to 60.5 per cent. International investors held 18 per cent of the shares. On 8 April 2010, the holdings of Norway's Central Bank (Norges Bank) in M-real dropped to 4.4 per cent of the share capital and 1.4 per cent of the voting rights. The company does not hold any of its own shares. Management remuneration CEO Mikko Helander takes part in the management ownership system of Metsäliitto Group's executive management, through which he indirectly owns shares in the company. The ownership system is a long-term remuneration system which for Helander's part replaced as of August 2010 the Company's earlier share bonus system. In August 2010, Helander invested approximately EUR 500,000 of his own capital in Metsäliitto's new management holding company, in which he is a co-owner together with other Metsäliitto Group executive management members. The holding company, Metsäliitto Management Ltd., purchase in August 2010 M-real's B-series shares using its own capital and additional debt capital obtained from Metsäliitto Cooperative on 30 September 2010. Altogether 881,933 B-shares purchased for the aggregate purchase price of approximately EUR 2.5 million have been allocated to the CEO. Mr Helander is tied to the holding company and, through that, to indirect ownership of M-real's shares until the end of 2013, at which time the management ownership system is terminated and dismantled on a preliminary basis. The system will, however, be extended for one year at a time if, in October-November 2013, 2014, 2015 or 2016, the stock exchange price of M-real's B share is lower than the average price at which Metsäliitto Management Ltd. originally acquired such B shares. Events after the period On 26 October 2010, M-real signed an agreement on partial divestment of the Reflex mill to Metsä Tissue Corporation for approximately EUR 10 million. The transaction will be closed in the beginning of November 2010. The agreement covers the paper machine 5 and related real estate, as well as certain infrastructure assets. Metsä Tissue will convert the paper machine to produce cooking papers. As part of the transaction, 74 employees will transfer to Metsä Tissue. M-real will book a positive non-recurring item of about EUR 15 million in the Speciality Papers business area's operating result related to transaction proceeds and partial reversal of personnel cost provisions announced earlier. EUR 8 million of this amount was booked in third quarter of 2010 and the rest will be booked in the fourth quarter. The cash impact will be approximately EUR 10 million positive, taking into account certain investments related to the Premium Papers production at the site. 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 in modernisation of the coating section at the Kemiart Liners mill. The total value of the investment is approximately EUR 16 million. This investment will also be carried out in 2011. Near-term outlook The demand for board is expected to remain good during the next few months. Annual contract negotiations in cartonboard are mainly completed and price increases are implemented according to plan. Profit impact of the implemented price increases in annual contracts will be visible from the beginning of 2011. After the implemented increases price level of M-real's folding boxboard and liner in Europe.will be more than 10 per cent higher compared to the beginning of 2010. The demand for uncoated fine paper seems to continue on good level. Efforts to increase prices will continue. The demand for speciality papers is expected to remain stable. No significant changes are expected in the price level. The average price of pulp is expected to be slightly lower in the fourth quarter compared with the third quarter. A significant decrease in the price of pulp is not foreseen, however. In December 2009, M-real launched EUR 80 million profit improvement programme for 2010. The combined positive impact of these measures and the profit improvement programmes implemented in previous years is expected to total approximately EUR 100 million in 2010. The decreasing trend in costs will have an impact on the business areas, as well as Other operations. The positive impact of the already implemented profit improvement measures is in 2011 expected to be approximately EUR 60 million compared to 2010. M-real is preparing a new profit improvement programme for 2011, which emphasis is on paper businesses. The average total costs for factors of production are not expected to change significantly by the end of 2010. However, the price pressure on wood raw material and certain chemicals in particular has increased. Certain taxes and tax-like payments will increase M-real's energy and logistics costs in Finland from 2011 onwards. M-real's 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. Near-term business risks Despite several positive signs, there is still a risk of the global economic recovery slowing down or coming to a standstill and of the demand for board and paper products, which has partially picked up, experiencing another downturn. M-real has announced significant price increases in its main grades. There is a risk of the company being unable to implement the increases as planned, or of a downswing in prices. There is a risk that the cost levels of production factors will increase, if, for example, the price of oil should increase or as a result of the political decisions planned in Finland that would increase the cost burden of the industrial sector. The company's short-term and mid-term financial position is secure. The credit and bond markets operations are limited in part, which may be due to the significant increase in regulation. This may hamper the company's ability to acquire long-term debt financing at a competitive price. Because the forward-looking estimates and statements about these financial statements are based on current plans and estimates, they contain risks and other uncertainty 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 of the euro. More information about long-term risk factors can be found on pages 37-38 of M-real's 2009 annual report. M-REAL CORPORATION Further information: Matti Mörsky, CFO, tel. 010 465 4913 Juha Laine, Vice President, Investor Relations and Communications, tel. 010 465 4335 More information available starting at 1 p.m. (EET) on 27 October 2010. A telephone conference for investors and analysts in English starts at 3 p.m. (EET). Conference call participants are requested to call 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 878801. Consumer Packaging business area -------------------------------------------------------------------------------- | | 2010 | 2010 | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | Consumer | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | | Packaging | | | | | | | | | -------------------------------------------------------------------------------- | Sales, EUR | 305 | 310 | 257 | 255 | 250 | 872 | 713 | 968 | | million | | | | | | | | | -------------------------------------------------------------------------------- | EBITDA, EUR | 48 | 51 | 52 | 50 | 51 | 151 | 90 | 140 | | million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 48 | 51 | 52 | 51 | 51 | 151 | 95 | 146 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 34 | 38 | 39 | 33 | 31 | 111 | 18 | 51 | | EUR million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 34 | 38 | 39 | 34 | 31 | 111 | 35 | 69 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Return on capital | 18.1 | 21.1 | 22.8 | 18.8 | 16.4 | 20.7 | 2.7 | 6.9 | | employed, % | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 18.1 | 21.1 | 22.8 | 19.2 | 16.4 | 20.7 | 5.6 | 9.4 | | non-recurring | | | | | | | | | | items, % | | | | | | | | | -------------------------------------------------------------------------------- | Deliveries, 1,000 | 353 | 372 | 321 | 327 | 315 | 1046 | 885 | 1,212 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Production, 1,000 | 353 | 363 | 342 | 342 | 323 | 1058 | 890 | 1,232 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Personnel at the | 1,54 | 1,76 | 1,52 | 1,53 | 1,54 | 1,544 | 1,545 | 1,533 | | end of period | 4 | 1 | 9 | 3 | 5 | | | | -------------------------------------------------------------------------------- Result for July-September compared with the previous quarter The operating result excluding non-recurring items for Consumer Packaging decreased from the previous quarter and was EUR 34 million (Q2/2010: 38). Demand continued to be strong. The annual maintenance shutdowns at the mills were mainly scheduled to occur during the third quarter, which weakened profitability compared with the previous quarter. The implemented price increases had a positive impact on the result. No non-recurring items were booked in the result. The result for the previous quarter did not include non-recurring items. The deliveries of European folding boxboard producers were 1 per cent lower compared with the previous quarter. Consumer Packaging's deliveries of folding boxboard were down 5 per cent. Result for January-September compared with the corresponding period last year The operating result excluding non-recurring items for the Consumer Packaging business area improved from the corresponding period last year and totalled EUR 111 million (35). The most significant factor contributing to the result was higher delivery volume resulting from the recovery in demand. The implemented price increases also had a positive impact on the result. The result does not include non-recurring items. The result for the corresponding period last year included non-recurring items of EUR -17 million, mainly related to the closure of Metsä-Botnia's Kaskinen mill. The deliveries of European folding boxboard producers increased by 11 per cent compared with the corresponding period last year. Consumer Packaging's deliveries of folding boxboard were up by 14 per cent. Office Papers business area -------------------------------------------------------------------------------- | | 2010 | 2010 | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | Office Papers | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | -------------------------------------------------------------------------------- | Sales, EUR | 164 | 153 | 160 | 132 | 133 | 477 | 411 | 543 | | million | | | | | | | | | -------------------------------------------------------------------------------- | EBITDA, EUR | 17 | 6 | 11 | 6 | 0 | 34 | -5 | 1 | | million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 17 | 6 | 11 | 13 | 0 | 34 | -5 | 8 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 9 | -4 | 0 | -54 | -15 | 5 | -50 | -104 | | EUR million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 9 | -4 | 0 | 0 | -13 | 5 | -48 | -48 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Return on capital | 8.5 | -4.0 | -0.1 | -47. | -13. | 1.5 | -14.0 | -21.1 | | employed, % | | | | 0 | 0 | | | | -------------------------------------------------------------------------------- | excl. | 8.5 | -4.0 | -0.1 | -0.1 | -11. | 1.5 | -13.5 | -9.8 | | non-recurring | | | | | 4 | | | | | items, % | | | | | | | | | -------------------------------------------------------------------------------- | Deliveries, 1,000 | 212 | 212 | 237 | 198 | 199 | 661 | 592 | 790 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Production, 1,000 | 228 | 209 | 235 | 213 | 181 | 672 | 582 | 795 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Personnel at the | 1,21 | 1,22 | 1,32 | 1,37 | 1,40 | 1,213 | 1,407 | 1,374 | | end of period | 3 | 5 | 0 | 4 | 7 | | | | -------------------------------------------------------------------------------- Result for July-September compared with the previous quarter The operating result excluding non-recurring items for Office Papers improved compared with the previous quarter and was EUR 9 million (Q2/2010: -4). The result improved thanks to a higher average selling price following price hikes as well as better operating rates. The result was weakened by higher price of fibre. The result for the previous quarter was burdened by+ the shutdown caused by the recovery boiler investment at the Husum pulp mill, as well as the maintenance shutdowns, strikes and short-fibre pulp availability problems at the Alizay paper mill. The result does not include non-recurring items. The result for the previous quarter did not include non-recurring items. Total deliveries by European uncoated fine paper producers were down by 8 per cent compared with the previous quarter. The delivery volume of Office Papers remained the same. Result for January-September compared with the corresponding period last year The operating result for Office Papers, excluding non-recurring items, improved from the corresponding period last year and totalled EUR 5 million (-48). The result improved thanks to higher delivery volumes resulting from the recovery in demand and higher average price as a result of implemented price increases. Increased fibre costs, in turn, weakened the result. The result does not include non-recurring items. A non-recurring item totalling EUR -2 million was recognised in the operating result for the corresponding period last year in connection with the profit improvement measures at the Husum mill. Total deliveries by European uncoated fine paper producers increased by 10 per cent compared with the corresponding period last year. The delivery volume of Office Papers increased by 12 per cent. Speciality Papers business area -------------------------------------------------------------------------------- | | 2010 | 2010 | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | Speciality Papers | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | | | | | | | | | | | -------------------------------------------------------------------------------- | Sales, EUR | 75 | 80 | 82 | 73 | 80 | 237 | 279 | 352 | | million | | | | | | | | | -------------------------------------------------------------------------------- | EBITDA, EUR | 5 | -18 | -4 | -8 | -7 | -17 | -57 | -65 | | million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | -3 | -2 | -4 | -2 | -8 | -9 | -29 | -31 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 4 | -21 | -6 | -78 | -10 | -23 | -73 | -151 | | EUR million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | -7 | -5 | -6 | -6 | -11 | -18 | -45 | -51 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Return on capital | 18.0 | -76. | -19. | -170 | -16. | -26.6 | -19.6 | -55.8 | | employed, % | | 3 | 6 | .3 | 0 | | | | -------------------------------------------------------------------------------- | excl. | -24. | -18. | -19. | -14. | -17. | -20.4 | -12.3 | -18.7 | | non-recurring | 5 | 8 | 6 | 1 | 6 | | | | | items, % | | | | | | | | | -------------------------------------------------------------------------------- | Deliveries, 1,000 | 57 | 66 | 74 | 68 | 76 | 197 | 274 | 342 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Production, 1,000 | 59 | 73 | 78 | 71 | 75 | 210 | 248 | 319 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Personnel at the | 1,32 | 1,35 | 1,37 | 1,38 | 1,56 | 1,329 | 1,563 | 1,389 | | end of period | 9 | 8 | 3 | 9 | 3 | | | | -------------------------------------------------------------------------------- Result for July-September compared with the previous quarter The operating result excluding non-recurring items for Speciality Papers decreased compared with the previous quarter and was EUR -6 million (Q2/2010: -5). The result was weakened by a lower operating rate and lower delivery volumes. The result was improved by the implemented price increases and cost savings. The result included a non-recurring income item of EUR 11 million, of which amount EUR 8 million concerned the release of a cost provision and EUR 3 million the reversal of impairment loss as a result of partial divestment of the Reflex mill to Metsä Tissue and lower reorganisation expenses at Zanders. A non-recurring item of EUR -16 million related to the planned closure of two paper machines at the Reflex mill and reorganisation of the Reflex and Gohrsmühle organisations was recognised in the operating result for the previous quarter. The delivery volume of Speciality Papers fell by 14 per cent. This figure includes the discontinuation of standard coated fine paper production. Result for January-September compared with the corresponding period last year The operating result excluding non-recurring items for Office Papers improved from the corresponding period last year and totalled EUR -18 million (-45). The result was improved by the implemented price increases and cost savings. It was weakened by clearly higher price of pulp. A non-recurring item of EUR -5 million net related to reorganisation of the Reflex and Gohrsmühle organisations and partial divestment of the Reflex mill to Metsä Tissue was recognised in the operating result. The result for the corresponding period last year included non-recurring items of EUR -29 million related to the closure of the Hallein paper mill. The delivery volume of Speciality Papers fell by 28 per cent. This figure includes the discontinuation of standard coated fine paper production. Market Pulp and Energy business area -------------------------------------------------------------------------------- | | 2010 | 2010 | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | Market Pulp and | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Sales, EUR | 107 | 126 | 95 | 126 | 132 | 328 | 382 | 508 | | million | | | | | | | | | -------------------------------------------------------------------------------- | EBITDA, EUR | 19 | 23 | 14 | -1 | -6 | 56 | -20 | -21 | | million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 23 | 23 | 14 | 2 | -6 | 60 | -19 | -17 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Operating result, | 12 | 16 | 9 | -39 | -15 | 37 | -52 | -91 | | EUR million | | | | | | | | | -------------------------------------------------------------------------------- | excl. | 16 | 16 | 9 | -9 | -14 | 41 | -45 | -54 | | non-recurring | | | | | | | | | | items | | | | | | | | | -------------------------------------------------------------------------------- | Return on capital | 7.6 | 11.4 | 5.9 | -22. | -7.3 | 8.0 | -10.3 | -12.2 | | employed, % | | | | 1 | | | | | -------------------------------------------------------------------------------- | excl. | 10.1 | 11.4 | 5.9 | -4.8 | -6.9 | 8.9 | -9.0 | -7.2 | | non-recurring | | | | | | | | | | items, % | | | | | | | | | -------------------------------------------------------------------------------- | Deliveries, 1,000 | 167 | 194 | 161 | 246 | 295 | 522 | 909 | 1,155 | | tonnes | | | | | | | | | -------------------------------------------------------------------------------- | Personnel at the | 24 | 24 | 24 | 18 | 19 | 24 | 19 | 18 | | end of period | | | | | | | | | -------------------------------------------------------------------------------- Result for July-September compared with the previous quarter The operating result excluding non-recurring items for Market Pulp and Energy was level with the previous quarter, totalling EUR 16 million (Q2/2010: 16). The result was improved by higher pulp prices. The result was weakened by maintenance shutdowns, lower delivery volume and higher wood costs. An additional cost provision of EUR -4 million was recognised relating to the closure of the Alizay pulp mill. The result for the previous quarter did not include non-recurring items. Result for January-September compared with the corresponding period last year The operating result of Market Pulp and Energy, excluding non-recurring items, improved from the corresponding period last year and totalled EUR 41 million (-45). The result improved especially thanks to higher pulp prices. Moreover, the comparable delivery volume increased considerably. Last year's deliveries included Metsä-Botnia's external deliveries. The result included an additional cost provision of EUR -4 million relating to the closure of the Alizay pulp mill. The result for the previous quarter did not include non-recurring items. The result for the corresponding period last year included, as non-recurring items, a total of EUR -7 million of cost provisions and write-downs relating to the closure of Metsä-Botnia's Kaskinen mill and the profit improvement actions at the Husum mill. -------------------------------------------------------------------------------- | Condensed consolidated statement of comprehensive | | | | | income | | | | -------------------------------------------------------------------------------- | | 2010 | 2009 | | 2009 | 2010 | 2010 | -------------------------------------------------------------------------------- | EUR million | Q1-Q | Q1-Q3 | Chan | | Q2 | Q3 | | | 3 | | ge | | | | -------------------------------------------------------------------------------- | Continuing operations | | | | | | | -------------------------------------------------------------------------------- | Sales | 1,94 | 1,826 | 114 | 2,432 | 676 | 662 | | | 0 | | | | | | -------------------------------------------------------------------------------- | Other operating income | 70 | 86 | -16 | 252 | 16 | 29 | -------------------------------------------------------------------------------- | Operating expenses | -1,8 | -1,95 | 128 | -2,597 | -654 | -618 | | | 28 | 6 | | | | | -------------------------------------------------------------------------------- | Share of results in | 56 | 0 | 56 | 2 | 23 | 22 | | associated companies *) | | | | | | | -------------------------------------------------------------------------------- | Depreciation and impairment | -88 | -171 | 83 | -356 | -26 | -29 | | losses | | | | | | | -------------------------------------------------------------------------------- | Operating result | 150 | -215 | 365 | -267 | 35 | 66 | -------------------------------------------------------------------------------- | % of sales | 7.7 | -11.8 | | -11.0 | 5.2 | 10.0 | -------------------------------------------------------------------------------- | Share of results in | -21 | -14 | -7 | -16 | -18 | -1 | | associated companies | | | | | | | -------------------------------------------------------------------------------- | Net exchange gains and | -7 | 4 | -11 | 5 | 0 | -1 | | losses | | | | | | | -------------------------------------------------------------------------------- | Other net financial items | -52 | -59 | 7 | -80 | -17 | -19 | -------------------------------------------------------------------------------- | Result before income tax | 70 | -284 | 354 | -358 | 0 | 45 | -------------------------------------------------------------------------------- | % of sales | 3.6 | -15.6 | | -14.7 | 0.0 | 6.8 | -------------------------------------------------------------------------------- | Income taxes | -21 | 13 | -34 | 27 | -8 | -7 | -------------------------------------------------------------------------------- | Result for the period from | 49 | -271 | 320 | -331 | -8 | 38 | | continuing operations | | | | | | | -------------------------------------------------------------------------------- | % of sales | 2.5 | -14.8 | | -13.6 | -1.2 | 5.7 | -------------------------------------------------------------------------------- | Discontinued operations | | | | | | | -------------------------------------------------------------------------------- | Result from discontinued | 0 | -15 | 15 | -23 | 0 | 0 | | operations | | | | | | | -------------------------------------------------------------------------------- | Result for the period | 49 | -286 | 335 | -354 | -8 | 38 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Other comprehensive income | | | | | | | -------------------------------------------------------------------------------- | Cash flow hedges | 0 | 24 | -24 | 26 | -5 | 10 | -------------------------------------------------------------------------------- | Available for sale | 33 | -93 | 126 | -115 | 4 | 13 | | financial assets | | | | | | | -------------------------------------------------------------------------------- | Translation differences | 7 | -10 | 17 | 5 | 4 | 1 | -------------------------------------------------------------------------------- | Share of results in | 2 | | 2 | | 1 | -1 | | associated companies | | | | | | | -------------------------------------------------------------------------------- | Income tax relating to | -2 | 22 | -24 | 27 | 2 | -4 | | components of other | | | | | | | | comprehensive income | | | | | | | -------------------------------------------------------------------------------- | Other comprehensive income, | 40 | -57 | 97 | -57 | 6 | 19 | | net of tax | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Total comprehensive income | 89 | -343 | 432 | -411 | -2 | 57 | | for the period | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Result for the period | | | | | | | | attributable to | | | | | | | -------------------------------------------------------------------------------- | Shareholders of parent | 50 | -289 | 339 | -358 | -8 | 39 | | company | | | | | | | -------------------------------------------------------------------------------- | Non-controlling interests | -1 | 3 | -4 | 4 | 0 | -1 | -------------------------------------------------------------------------------- | Total comprehensive income | | | | | | | | for the period attributable | | | | | | | | to | | | | | | | -------------------------------------------------------------------------------- | Shareholders of parent | 90 | -344 | 434 | -412 | -2 | 58 | | company | | | | | | | -------------------------------------------------------------------------------- | Non-controlling interests | -1 | 1 | -2 | 1 | 0 | -1 | -------------------------------------------------------------------------------- | Total | 89 | -343 | 432 | -411 | -2 | 57 | -------------------------------------------------------------------------------- | Earnings per share for | | | | | | | | result attributable to | | | | | | | | shareholders of parent | | | | | | | | company (EUR/share) | | | | | | | -------------------------------------------------------------------------------- | from continuing operations | 0.15 | -0.83 | 0.98 | -1.02 | -0.03 | 0.12 | -------------------------------------------------------------------------------- | from discontinued | 0.00 | -0.05 | 0.05 | -0.07 | 0.00 | 0.00 | | operations | | | | | | | -------------------------------------------------------------------------------- | Total | 0.15 | -0.88 | 1.03 | -1.09 | -0.03 | 0.12 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | *) 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 | | | | | | | -------------------------------------------------------------------------------- | | 30.9. | | 30.9. | | 31.12. | | -------------------------------------------------------------------------------- | EUR million | 2010 | % | 2009 | % | 2009 | % | -------------------------------------------------------------------------------- | ASSETS | | | | | | | -------------------------------------------------------------------------------- | Non-current assets | | | | | | | -------------------------------------------------------------------------------- | Goodwill | 13 | 0.4 | 51 | 1.4 | 13 | 0.4 | -------------------------------------------------------------------------------- | Other intangible assets | 29 | 0.9 | 43 | 1.2 | 32 | 1.0 | -------------------------------------------------------------------------------- | Tangible assets | 1,119 | 35.1 | 1,449 | 39.4 | 1,130 | 36.1 | -------------------------------------------------------------------------------- | Biological assets | 0 | 0.0 | 2 | 0.1 | 0 | 0.0 | -------------------------------------------------------------------------------- | Investments in | 246 | 7.7 | 49 | 1.3 | 210 | 6.7 | | associated companies | | | | | | | -------------------------------------------------------------------------------- | Available for sale | 321 | 10.1 | 329 | 8.9 | 316 | 10.1 | | investments | | | | | | | -------------------------------------------------------------------------------- | Other non-current | 68 | 2.2 | 11 | 0.3 | 64 | 2.0 | | financial assets | | | | | | | -------------------------------------------------------------------------------- | Deferred tax | 4 | 0.1 | 5 | 0.1 | 3 | 0.1 | | receivables | | | | | | | -------------------------------------------------------------------------------- | | 1,800 | 56.5 | 1,939 | 52.7 | 1,768 | 56.4 | -------------------------------------------------------------------------------- | Current assets | | | | | | | -------------------------------------------------------------------------------- | Inventories | 383 | 12.0 | 341 | 9.3 | 313 | 10.0 | -------------------------------------------------------------------------------- | Accounts receivables | 564 | 17.7 | 576 | 15.7 | 554 | 17.7 | | and other receivables | | | | | | | -------------------------------------------------------------------------------- | Cash and cash | 437 | 13.7 | 424 | 11.5 | 497 | 15.9 | | equivalents | | | | | | | -------------------------------------------------------------------------------- | | 1,384 | 43.4 | 1,341 | 36.5 | 1,364 | 43.6 | -------------------------------------------------------------------------------- | Assets classified as | 3 | 0.1 | 397 | 10.8 | | | | held for sale | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | -------------------------------------------------------------------------------- | Total assets | 3,187 | 100.0 | 3,677 | 100.0 | 3,132 | 100.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | SHAREHOLDERS' EQUITY AND | | | | | | | LIABILITIES | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity | | | | | | | -------------------------------------------------------------------------------- | Equity attributable | | | | | | | -------------------------------------------------------------------------------- | to shareholders of | 1,006 | 31.6 | 985 | 26.8 | 916 | 29.2 | | parent company | | | | | | | -------------------------------------------------------------------------------- | Non-controlling | 5 | 0.2 | 58 | 1.6 | 8 | 0.3 | | interests | | | | | | | -------------------------------------------------------------------------------- | Total equity | 1,011 | 31.8 | 1,043 | 28.4 | 924 | 29.5 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current liabilities | | | | | | | -------------------------------------------------------------------------------- | Deferred tax | 176 | 5.5 | 193 | 5.3 | 162 | 5.2 | | liabilities | | | | | | | -------------------------------------------------------------------------------- | Post-employment benefit | 80 | 2.5 | 92 | 2.5 | 89 | 2.8 | | obligations | | | | | | | -------------------------------------------------------------------------------- | Provisions | 56 | 1.7 | 48 | 1.3 | 60 | 1.9 | -------------------------------------------------------------------------------- | Borrowings | 1,009 | 31.7 | 1,387 | 37.7 | 943 | 30.1 | -------------------------------------------------------------------------------- | Other liabilities | 30 | 0.9 | 34 | 0.9 | 30 | 1.0 | -------------------------------------------------------------------------------- | | 1,351 | 42.3 | 1,754 | 47.7 | 1,284 | 41.0 | -------------------------------------------------------------------------------- | Current liabilities | | | | | | | -------------------------------------------------------------------------------- | Provisions | 13 | 0.4 | 24 | 0.7 | 44 | 1.4 | -------------------------------------------------------------------------------- | Current borrowings | 351 | 11.0 | 276 | 7.5 | 467 | 14.9 | -------------------------------------------------------------------------------- | Accounts payable and | 461 | 14.5 | 447 | 12.1 | 413 | 13.2 | | other liabilities | | | | | | | -------------------------------------------------------------------------------- | | 825 | 25.9 | 747 | 20.3 | 924 | 29.5 | -------------------------------------------------------------------------------- | Liabilities classified | | | | | | | | as | | | | | | | -------------------------------------------------------------------------------- | held for sale | | | 133 | 3.6 | | | -------------------------------------------------------------------------------- | Total liabilities | 2,176 | 68.2 | 2,634 | 71.6 | 2,208 | 70.5 | -------------------------------------------------------------------------------- | Total shareholders' | 3,187 | 100.0 | 3,677 | 100.0 | 3,132 | 100.0 | | equity and liabilities | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-current portion of derivative financial instruments have been | | transferred to non-current financial assets from accounts receivables and | | other receivables ( EUR 0 million 30 September 2009 and EUR 5 million 31 | | December 2009). Non-current portion of derivative financial instruments have | | been transferred to other non-current liabilities from accounts payable and | | other liabilities ( EUR 20 million 30 September 2009 and EUR 18 million 31 | | December 2009). | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Condensed consolidated cash flow statement | | | -------------------------------------------------------------------------------- | | 2010 | 2009 | 2009 | 2010 | -------------------------------------------------------------------------------- | EUR million | Q1-Q3 | Q1-Q3 | | Q3 | -------------------------------------------------------------------------------- | Result for the period | 49 | -286 | -354 | 38 | -------------------------------------------------------------------------------- | Total adjustments | 75 | 190 | 324 | 15 | -------------------------------------------------------------------------------- | Change in working capital | -86 | 131 | 140 | -15 | -------------------------------------------------------------------------------- | Cash flow arising from | 38 | 35 | 110 | 38 | | operations | | | | | -------------------------------------------------------------------------------- | Net financial items | -71 | -5 | -38 | -16 | -------------------------------------------------------------------------------- | Income taxes paid | -18 | 10 | 9 | -8 | -------------------------------------------------------------------------------- | Net cash flow arising from | -51 | 40 | 81 | 14 | | operating activities | | | | | -------------------------------------------------------------------------------- | Investments in intangible and | -48 | -55 | -73 | -31 | | tangible assets | | | | | -------------------------------------------------------------------------------- | Divestments of assets and other | 55 | 7 | 284 | 41 | -------------------------------------------------------------------------------- | Net cash flow arising from | 7 | -48 | 211 | 10 | | investing activities | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Changes in non-current loans | -15 | -91 | -344 | 47 | | and in other financial items | | | | | -------------------------------------------------------------------------------- | Dividends paid | -2 | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Net cash flow arising from | -17 | -91 | -344 | 47 | | financing activities | | | | | -------------------------------------------------------------------------------- | Changes in cash and cash | -61 | -99 | -52 | 71 | | equivalents | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 497 | 550 | 550 | 366 | | beginning of period | | | | | -------------------------------------------------------------------------------- | Translation difference in cash | 1 | -1 | -1 | 0 | | and cash equivalents | | | | | -------------------------------------------------------------------------------- | Changes in cash and cash | -61 | -99 | -52 | 71 | | equivalents | | | | | -------------------------------------------------------------------------------- | Assets held for sale | 0 | -26 | 0 | 0 | -------------------------------------------------------------------------------- | Cash and cash equivalents at | 437 | 424 | 497 | 437 | | end of period | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Statement of changes in shareholders' | | | | | | equity | | | | | -------------------------------------------------------------------------------- | | Equity attributable to shareholders of parent | | | | | company | | | -------------------------------------------------------------------------------- | EUR million | Shar | Shar | Tran | Fair | Retai | Total | Non-c | Total | | | e | e | s- | value | ned | | ontro | | | | ca | pr | l | and | e | | l-lin | | | | pita | e- | atio | other | arnin | | g | | | | l | m | n | rese | gs | | int | | | | | ium | di | rves | | | er- | | | | | acco | ffer | | | | e | | | | | unt | - | | | | sts | | | | | | en | | | | | | | | | | ces | | | | | | -------------------------------------------------------------------------------- | Shareholders | 558 | 667 | -9 | 259 | -146 | 1,329 | 57 | 1,386 | | ' equity, | | | | | | | | | | 1 | | | | | | | | | | January 2009 | | | | | | | | | -------------------------------------------------------------------------------- | Comprehensiv | | | | | | | | | | e income for | | | | | | | | | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Result for | | | | | -289 | -289 | 3 | -286 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | comprehensiv | | | | | | | | | | e income | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow | | | | 24 | | 24 | | 24 | | hedges | | | | | | | | | -------------------------------------------------------------------------------- | Available | | | | -93 | | -93 | | -93 | | for sale | | | | | | | | | | investments | | | | | | | | | -------------------------------------------------------------------------------- | Translation | | | -7 | | | -7 | -3 | -10 | | differences | | | | | | | | | -------------------------------------------------------------------------------- | Share of | | | | | | | | | | result in | | | | | | | | | | associated | | | | | | | | | | companies | | | | | | | | | -------------------------------------------------------------------------------- | Income tax | | | 4 | 18 | | 22 | | 22 | | relating to | | | | | | | | | | components | | | | | | | | | | of other | | | | | | | | | | comprehensiv | | | | | | | | | | e income | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 558 | 667 | -12 | 207 | -435 | 985 | 58 | 1,043 | | ' | | | | | | | | | | equity, | | | | | | | | | | 30 September | | | | | | | | | | 2009 | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 558 | 667 | 2 | 194 | -504 | 916 | 8 | 924 | | ' equity, | | | | | | | | | | 1 | | | | | | | | | | January 2010 | | | | | | | | | -------------------------------------------------------------------------------- | Comprehensiv | | | | | | | | | | e income for | | | | | | | | | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Result for | | | | | 50 | 50 | -1 | 49 | | the period | | | | | | | | | -------------------------------------------------------------------------------- | Other | | | | | | | | | | comprehensiv | | | | | | | | | | e income | | | | | | | | | -------------------------------------------------------------------------------- | Cash flow | | | | 0 | | 0 | | 0 | | hedges | | | | | | | | | -------------------------------------------------------------------------------- | Available | | | | 33 | | 33 | | 33 | | for sale | | | | | | | | | | investments | | | | | | | | | -------------------------------------------------------------------------------- | Translation | | | 7 | | | 7 | | 7 | | differences | | | | | | | | | -------------------------------------------------------------------------------- | Share of | | | 1 | 1 | | 2 | | 2 | | result in | | | | | | | | | | associated | | | | | | | | | | companies | | | | | | | | | -------------------------------------------------------------------------------- | Income tax | | | 7 | -9 | | -2 | | -2 | | relating to | | | | | | | | | | components | | | | | | | | | | of other | | | | | | | | | | comprehensiv | | | | | | | | | | e income | | | | | | | | | -------------------------------------------------------------------------------- | Related | | | | | | | | | | party | | | | | | | | | | transaction | | | | | | | | | -------------------------------------------------------------------------------- | Dividends | | | | | | | -2 | -2 | | paid | | | | | | | | | -------------------------------------------------------------------------------- | Shareholders | 558 | 667 | 17 | 219 | -454 | 1,006 | 5 | 1,011 | | ' | | | | | | | | | | equity, | | | | | | | | | | 30 September | | | | | | | | | | 2010 | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Key ratios | 2010 | 2009 | 2009 | 2010 | 2010 | -------------------------------------------------------------------------------- | | Q1-Q3 | Q1-Q3 | | Q2 | Q3 | -------------------------------------------------------------------------------- | Sales, EUR million | 1,940 | 1,826 | 2,432 | 676 | 662 | -------------------------------------------------------------------------------- | EBITDA, EUR million | 238 | -44 | 88 | 61 | 95 | -------------------------------------------------------------------------------- | excl. non-recurring items, | 234 | -7 | 44 | 77 | 85 | | EUR million | | | | | | -------------------------------------------------------------------------------- | EBITDA, % | 12.3 | -2.4 | 3.6 | 9.0 | 14.4 | -------------------------------------------------------------------------------- | excl. non-recurring items, | 12.1 | -0.4 | 1.8 | 11.4 | 12.8 | | EUR million | | | | | | -------------------------------------------------------------------------------- | Operating result, EUR million | 150 | -215 | -267 | 35 | 66 | -------------------------------------------------------------------------------- | excl. non-recurring items, | 136 | -157 | -150 | 43 | 54 | | EUR million | | | | | | -------------------------------------------------------------------------------- | EBIT, % | 7.7 | -11.8 | -11.0 | 5.2 | 10.0 | -------------------------------------------------------------------------------- | excl. non-recurring items, | 7.0 | -8.6 | -6.2 | 6.4 | 8.2 | | EUR million | | | | | | -------------------------------------------------------------------------------- | Result from continuing | | | | | | | operations | | | | | | -------------------------------------------------------------------------------- | before taxes, EUR million | 70 | -284 | -358 | 0 | 45 | -------------------------------------------------------------------------------- | excl. non-recurring items, | 72 | -215 | -230 | 24 | 33 | | EUR million | | | | | | -------------------------------------------------------------------------------- | Result for the period | | | | | | -------------------------------------------------------------------------------- | from continuing operations, | 49 | -271 | -331 | -8 | 38 | | EUR million | | | | | | -------------------------------------------------------------------------------- | from discontinued operations, | 0 | -15 | -23 | 0 | 0 | | EUR million | | | | | | -------------------------------------------------------------------------------- | Total, EUR million | 49 | -286 | -354 | -8 | 38 | -------------------------------------------------------------------------------- | Earnings per share | | | | | | -------------------------------------------------------------------------------- | from continuing operations, | 0.15 | -0.83 | -1.02 | -0.03 | 0.12 | | EUR | | | | | | -------------------------------------------------------------------------------- | from discontinued operations, | 0.00 | -0.05 | -0.07 | 0.00 | 0.00 | | EUR | | | | | | -------------------------------------------------------------------------------- | Total, EUR | 0.15 | -0.88 | -1.09 | -0.03 | 0.12 | -------------------------------------------------------------------------------- | Earnings per share, excl. | 0.16 | -0.64 | -0.66 | 0.05 | 0.08 | | non-recurring items, EUR | | | | | | -------------------------------------------------------------------------------- | Return on equity, % | 6.8 | -29.7 | -28.6 | -3.1 | 15.5 | -------------------------------------------------------------------------------- | excl. non-recurring items, % | 7.1 | -22.9 | -18.3 | 6.8 | 10.7 | -------------------------------------------------------------------------------- | Return on capital employed, % | 7.8 | -8.5 | -8.9 | 3.8 | 11.6 | -------------------------------------------------------------------------------- | excl. non-recurring items, % | 8.0 | -5.6 | -4.5 | 8.1 | 9.6 | -------------------------------------------------------------------------------- | Equity ratio at end of | 31.8 | 28.5 | 29.6 | 31.1 | 31.8 | | period, % | | | | | | -------------------------------------------------------------------------------- | Gearing ratio at end of | 135 | 170 | 153 | 140 | 135 | | period, % | | | | | | -------------------------------------------------------------------------------- | Net gearing ratio at end of | 81 | 121 | 84 | 89 | 81 | | period, % | | | | | | -------------------------------------------------------------------------------- | Shareholders' equity per | 3.06 | 3.00 | 2.79 | 2.89 | 3.06 | | share at end of period, EUR | | | | | | -------------------------------------------------------------------------------- | Interest-bearing net | 821 | 1,262 | 777 | 845 | 821 | | liabilities, EUR million | | | | | | -------------------------------------------------------------------------------- | Gross capital expenditure, | 48 | 55 | 73 | 10 | 31 | | EUR million | | | | | | -------------------------------------------------------------------------------- | Deliveries, 1 000 tonnes | | | | | | -------------------------------------------------------------------------------- | Paper business | 858 | 866 | 1,132 | 278 | 269 | -------------------------------------------------------------------------------- | Consumer Packaging | 1,046 | 885 | 1,212 | 372 | 353 | -------------------------------------------------------------------------------- | Personnel at the end of | | | | | | | period | | | | | | -------------------------------------------------------------------------------- | In continuing operations | 4,682 | 5,649 | 4,903 | 4,946 | 4,682 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | EBITDA = Earnings before interest, taxes, depreciation and impairment | | charges | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Securities and guarantees | 2010 | 2009 | 2009 | | -------------------------------------------------------------------------------- | EUR million | Q3 | Q3 | | | -------------------------------------------------------------------------------- | For own liabilities | 223 | 130 | 113 | | -------------------------------------------------------------------------------- | On behalf of associated companies | 0 | 1 | 0 | | -------------------------------------------------------------------------------- | On behalf of Group companies | 14 | 4 | 0 | | -------------------------------------------------------------------------------- | On behalf of others | 1 | 5 | 2 | | -------------------------------------------------------------------------------- | Total | 238 | 140 | 115 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Open derivative contracts | 2010 | 2009 | 2009 | | -------------------------------------------------------------------------------- | EUR million | Q3 | Q3 | | | -------------------------------------------------------------------------------- | Interest rate derivatives | 1,245 | 1,256 | 981 | | -------------------------------------------------------------------------------- | Currency derivatives | 2,079 | 3,033 | 2,806 | | -------------------------------------------------------------------------------- | Other derivatives | 151 | 300 | 183 | | -------------------------------------------------------------------------------- | Total | 3,475 | 4,589 | 3,970 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The fair value of open derivative contracts calculated at market | | | value at the end of the review period was EUR -32.6 million (EUR | | | -19.5 million 31 December 2009 and EUR -13.7 million 30 September | | | 2009). | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Also include other closed contracts to a total amount of EUR | | | 1,444.3 million (EUR 2,158.5 million 31 December 2009 and EUR | | | 2,544.8 million 30 September 2009). | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Commitments related to fixed | 2010 | 2009 | 2009 | | | assets | | | | | -------------------------------------------------------------------------------- | EUR million | Q3 | Q3 | | | -------------------------------------------------------------------------------- | Payments due in following 12 | 1 | 5 | 0 | | | months | | | | | -------------------------------------------------------------------------------- | Payments due later | 1 | 2 | 1 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Changes in property, plant and | 2010 | 2009 | 2009 | | | equipment | | | | | -------------------------------------------------------------------------------- | EUR million | Q3 | Q3 | | | -------------------------------------------------------------------------------- | Carrying value at beginning of | 1,130 | 1,808 | 1,808 | | | period | | | | | -------------------------------------------------------------------------------- | Capital expenditure | 48 | 52 | 70 | | -------------------------------------------------------------------------------- | Decreases | -9 | -9 | -454 | | -------------------------------------------------------------------------------- | Asset classified as held for sale | -3 | -245 | 0 | | -------------------------------------------------------------------------------- | Depreciation and impairment | -83 | -162 | -312 | | | charges | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Translation difference | 36 | 5 | 18 | | -------------------------------------------------------------------------------- | Carrying value at end of period | 1,119 | 1,449 | 1,130 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Assets classified as held for sale include EUR 4 million assets in Zanders' | | papermill Reflex to be sold Metsä Tissue and in previous year the property, | | plant and equipment of Metsä-Botnia's Uruguay business (based on M-real's 30 | | per cent share of ownership). | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Impairment charges made at closure of Kangas' papermachine 2 were partly | | reversed in June based on sales agreement of papermachine 2. Impairment | | charges made in Zanders' Reflex papermill were reversed (EUR 3 million) in | | September based on agreement to sell the mill partly to Metsä Tissue. | | Depreciation and impairment charges include these reversals (EUR 11 | | million). | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Related-party transactions | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Transactions and balances with parent and | 2010 | 2009 | 2009 | | sister companies | | | | -------------------------------------------------------------------------------- | EUR million | Q1-Q2 | Q1-Q2 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales | 28 | 21 | 22 | -------------------------------------------------------------------------------- | Other operating income | 4 | 3 | 37 | -------------------------------------------------------------------------------- | Purchases | 610 | 244 | 360 | -------------------------------------------------------------------------------- | Interest income | 7 | 3 | 1 | -------------------------------------------------------------------------------- | Interest expences | 1 | 2 | 2 | -------------------------------------------------------------------------------- | Non-current receivables | 53 | 5 | 53 | -------------------------------------------------------------------------------- | Current receivables | 76 | 66 | 107 | -------------------------------------------------------------------------------- | Non-current liabilities | 0 | 0 | 0 | -------------------------------------------------------------------------------- | Current liabilities | 313 | 187 | 106 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Transactions with associated companies | 2010 | 2009 | 2008 | -------------------------------------------------------------------------------- | EUR million | Q1-Q2 | Q1-Q2 | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales | 0 | 0 | 1 | -------------------------------------------------------------------------------- | Purchases | 0 | 3 | 4 | -------------------------------------------------------------------------------- | Non-current receivables | 0 | 1 | 0 | -------------------------------------------------------------------------------- | Current receivables | 8 | 7 | 7 | -------------------------------------------------------------------------------- | Current liabilities | 3 | 1 | 2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Transaction 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 2009. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The figures in the financial statement are | | | | | unaudited. | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Calculation of key ratios | | | | | | | -------------------------------------------------------------------------------- | | | | | | | | | | -------------------------------------------------------------------------------- | Return on | = | (Result from continuing | | | | | equity (%) | | operations before tax | | | | | | | - | | | | | | | direct taxes) per | | | | | | | (Shareholders' equity | | | | | | | (average)) | | | | -------------------------------------------------------------------------------- | | -------------------------------------------------------------------------------- | Return on | = | (Result from continuing operations | | | | capital | | before tax | | | | employed (%) | | + 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 | = | (Interest-bearing borrowings) | | | | ratio (%) | | per | | | | | | (Shareholders' equity) | | | -------------------------------------------------------------------------------- | | -------------------------------------------------------------------------------- | Net gearing | = | (Interest-bearing borrowings | | | | ratio (%) | | - | | | | | | liquid funds | | | | | | - interest-bearing | | | | | | receivables) | | | | | | per (Shareholders' | | | | | | equity) | | | -------------------------------------------------------------------------------- | | -------------------------------------------------------------------------------- | Earnings per | = | (Profit attributable to shareholders | | | | share | | of parent company) | | | | | | per (Adjusted | | | | | | number of shares (average)) | | | -------------------------------------------------------------------------------- | | -------------------------------------------------------------------------------- | Shareholders | = | (Equity attributable to shareholders | | | | ´equity per | | of parent company) | | | | share | | per (Adjusted | | | | | | number of shares at the end of | | | | | | period) | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Sales and result | | | | | | | | | | by segment | | | | | | | | | -------------------------------------------------------------------------------- | | 2010 | 201 | 201 | 2009 | 2009 | 2010 | 2009 | 2009 | | | | 0 | 0 | | | | | | -------------------------------------------------------------------------------- | EUR million | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | -------------------------------------------------------------------------------- | Consumer Packaging | 305 | 310 | 257 | 255 | 250 | 872 | 713 | 968 | -------------------------------------------------------------------------------- | Office Papers | 164 | 153 | 160 | 132 | 133 | 477 | 411 | 543 | -------------------------------------------------------------------------------- | Speciality Papers | 75 | 80 | 82 | 73 | 80 | 237 | 279 | 352 | -------------------------------------------------------------------------------- | Market Pulp and | 107 | 126 | 95 | 126 | 132 | 328 | 382 | 508 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Other operations | 53 | 44 | 46 | 59 | 56 | 143 | 130 | 189 | -------------------------------------------------------------------------------- | Internal sales | -42 | -37 | -38 | -39 | -33 | -117 | -89 | -128 | -------------------------------------------------------------------------------- | Sales | 662 | 676 | 602 | 606 | 618 | 1,940 | 1,826 | 2,432 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consumer Packaging | 48 | 51 | 52 | 50 | 51 | 151 | 90 | 140 | -------------------------------------------------------------------------------- | Office Papers | 17 | 6 | 11 | 6 | 0 | 34 | -5 | 1 | -------------------------------------------------------------------------------- | Speciality Papers | 5 | -18 | -4 | -8 | -7 | -17 | -57 | -65 | -------------------------------------------------------------------------------- | Market Pulp and | 19 | 23 | 14 | -1 | -6 | 56 | -20 | -21 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Other operations | 6 | -1 | 9 | 85 | -11 | 14 | -52 | 33 | -------------------------------------------------------------------------------- | EBITDA | 95 | 61 | 82 | 132 | 27 | 238 | -44 | 88 | -------------------------------------------------------------------------------- | % of sales | 14.4 | 9.0 | 13. | 21.8 | 4.4 | 12.3 | -2.4 | 3.6 | | | | | 6 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consumer Packaging | 34 | 38 | 39 | 33 | 31 | 111 | 18 | 51 | -------------------------------------------------------------------------------- | Office Papers | 9 | -4 | 0 | -54 | -15 | 5 | -50 | -104 | -------------------------------------------------------------------------------- | Speciality Papers | 4 | -21 | -6 | -78 | -10 | -23 | -73 | -151 | -------------------------------------------------------------------------------- | Market Pulp and | 12 | 16 | 9 | -39 | -15 | 37 | -52 | -91 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Other operations | 7 | 6 | 7 | 86 | -15 | 20 | -58 | 28 | -------------------------------------------------------------------------------- | Operating result | 66 | 35 | 49 | -52 | -24 | 150 | -215 | -267 | -------------------------------------------------------------------------------- | % of sales | 10.0 | 5.2 | 8.1 | -8.6 | -3.9 | 7.7 | -11.8 | -11.0 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Non-recurring items | | | | | | | | | -------------------------------------------------------------------------------- | Consumer Packaging | 0 | 0 | 0 | -1 | 0 | 0 | -17 | -18 | -------------------------------------------------------------------------------- | Office Papers | 0 | 0 | 0 | -54 | -2 | 0 | -2 | -56 | -------------------------------------------------------------------------------- | Speciality Papers | 11 | -16 | 0 | -72 | 1 | -5 | -28 | -100 | -------------------------------------------------------------------------------- | Market Pulp and | -4 | 0 | 0 | -30 | -1 | -4 | -7 | -37 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Other operations | 5 | 8 | 10 | 98 | 0 | 23 | -4 | 94 | -------------------------------------------------------------------------------- | Non-recurring | 12 | -8 | 10 | -59 | -2 | 14 | -58 | -117 | | items | | | | | | | | | | in operating | | | | | | | | | | result | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consumer Packaging | 48 | 51 | 52 | 51 | 51 | 151 | 95 | 146 | -------------------------------------------------------------------------------- | Office Papers | 17 | 6 | 11 | 13 | 0 | 34 | -5 | 8 | -------------------------------------------------------------------------------- | Speciality Papers | -3 | -2 | -4 | -2 | -8 | -9 | -29 | -31 | -------------------------------------------------------------------------------- | Market Pulp and | 23 | 23 | 14 | 2 | -6 | 60 | -19 | -17 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Other operations | 0 | -1 | -1 | -13 | -11 | -2 | -49 | -62 | -------------------------------------------------------------------------------- | EBITDA, excl. | 85 | 77 | 72 | 51 | 26 | 234 | -7 | 44 | | non-recurring items | | | | | | | | | -------------------------------------------------------------------------------- | % of sales | 12.8 | 11. | 12. | 8.4 | 4.2 | 12.1 | -0.4 | 1.8 | | | | 4 | 0 | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Consumer Packaging | 34 | 38 | 39 | 34 | 31 | 111 | 35 | 69 | -------------------------------------------------------------------------------- | Office Papers | 9 | -4 | 0 | 0 | -13 | 5 | -48 | -48 | -------------------------------------------------------------------------------- | Speciality Papers | -7 | -5 | -6 | -6 | -11 | -18 | -45 | -51 | -------------------------------------------------------------------------------- | Market Pulp and | 16 | 16 | 9 | -9 | -14 | 41 | -45 | -54 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Other operations | 2 | -2 | -3 | -12 | -15 | -3 | -54 | -66 | -------------------------------------------------------------------------------- | Operating | 54 | 43 | 39 | 7 | -22 | 136 | -157 | -150 | | result, | | | | | | | | | | excl. | | | | | | | | | | non-recurring items | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------------------- | % of sales | 8.2 | 6.4 | 6.5 | 1.2 | -3.6 | 7.0 | -8.6 | -6.2 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Return on capital | | | | | | | | | | employed % | | | | | | | | | -------------------------------------------------------------------------------- | Consumer Packaging | 18.1 | 21. | 22. | 18.8 | 16.4 | 20.7 | 2.7 | 6.9 | | | | 1 | 8 | | | | | | -------------------------------------------------------------------------------- | Office Papers | 8.5 | -4. | -0. | -47. | -13. | 1.5 | -14.0 | -21.1 | | | | 0 | 1 | 0 | 0 | | | | -------------------------------------------------------------------------------- | Speciality Papers | 18.0 | -76 | -19 | -170 | -16. | -26.6 | -19.6 | -55.8 | | | | .3 | .6 | .3 | 0 | | | | -------------------------------------------------------------------------------- | Market Pulp and | 7.6 | 11. | 5.9 | -22. | -7.3 | 8.0 | -10.3 | -12.2 | | Energy | | 4 | | 1 | | | | | -------------------------------------------------------------------------------- | Group | 11.6 | 3.8 | 9.1 | -8.7 | -2.3 | 7.8 | -8.5 | -8.9 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Capital employed, | | | | | | | | | | EUR million | | | | | | | | | -------------------------------------------------------------------------------- | Consumer Packaging | 749 | 746 | 691 | 676 | 744 | 749 | 744 | 676 | -------------------------------------------------------------------------------- | Office Papers | 490 | 423 | 442 | 431 | 479 | 490 | 479 | 431 | -------------------------------------------------------------------------------- | Speciality Papers | 94 | 105 | 116 | 134 | 225 | 94 | 225 | 134 | -------------------------------------------------------------------------------- | Market Pulp and | 659 | 601 | 568 | 567 | 830 | 659 | 830 | 567 | | Energy | | | | | | | | | -------------------------------------------------------------------------------- | Unallocated and | 380 | 415 | 298 | 526 | 541 | 380 | 541 | 526 | | eliminations | | | | | | | | | -------------------------------------------------------------------------------- | Group | 2,37 | 2,2 | 2,1 | 2,33 | 2,81 | 2,372 | 2,819 | 2,334 | | | 2 | 90 | 15 | 4 | 9 | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | The capital employed for a segment includes its assets: goodwill, other | | intangible goods, 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). | | Note: Capital employed figures for segments have been changed according to | | the renewed allocation of Metsä-Botnia beginning from Q4 2009. | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Deliveries | 2010 | 2010 | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | 1,000 tonnes | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | -------------------------------------------------------------------------------- | Consumer | 353 | 372 | 321 | 327 | 315 | 1,046 | 885 | 1,212 | | Packaging | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Office Papers | 212 | 212 | 237 | 198 | 199 | 661 | 592 | 790 | -------------------------------------------------------------------------------- | Speciality | 57 | 66 | 74 | 68 | 76 | 197 | 274 | 342 | | Papers | | | | | | | | | -------------------------------------------------------------------------------- | Paper business, | 269 | 278 | 311 | 266 | 275 | 858 | 866 | 1,132 | | total | | | | | | | | | -------------------------------------------------------------------------------- | Market Pulp | 167 | 194 | 161 | 246 | 295 | 522 | 909 | 1,155 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Production | 2010 | 2010 | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 | -------------------------------------------------------------------------------- | 1,000 tonnes | Q3 | Q2 | Q1 | Q4 | Q3 | Q1-Q3 | Q1-Q3 | Q1-Q4 | -------------------------------------------------------------------------------- | Consumer | 353 | 363 | 342 | 342 | 323 | 1,058 | 890 | 1,232 | | Packaging | | | | | | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Office Papers | 228 | 209 | 235 | 213 | 181 | 672 | 582 | 795 | -------------------------------------------------------------------------------- | Speciality | 60 | 73 | 78 | 71 | 75 | 211 | 248 | 319 | | Papers | | | | | | | | | -------------------------------------------------------------------------------- | Paper business, | 288 | 282 | 313 | 283 | 257 | 883 | 830 | 1,114 | | total | | | | | | | | | -------------------------------------------------------------------------------- | Metsä-Botnia | 160 | 164 | 164 | 203 | 219 | 488 | 660 | 863 | | pulp 1) | | | | | | | | | -------------------------------------------------------------------------------- | M-real pulp | 331 | 308 | 329 | 316 | 263 | 968 | 804 | 1,120 | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | 1) corresponds to M-real's ownership share of 30% in Metsä-Botnia | --------------------------------------------------------------------------------
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