Metsä Board (METSB) Investor presentation summary

Strategic focus and market position

• Specializes in premium, recyclable fresh fibre paperboards for food, pharma, and cosmetics, offering alternatives to plastics.

• Holds leading market positions: #1 in folding boxboard and white kraftliners in Europe, and #1 globally in coated white kraftliners.

• Main markets are Europe and North America, with growing demand driven by sustainability trends and regulatory changes.

• Investments in sustainable growth, including recent capacity expansions and ongoing technology upgrades.

• Part of a larger group structure ensuring high self-sufficiency in pulp and energy.

Financial performance and targets

• FY2024 sales reached EUR 1.9 billion, with a comparable operating result of EUR 69 million (3.6% margin).

• Q1 2025 sales were EUR 481 million, with a comparable operating result of EUR 23 million (4.7% margin).

• Return on capital employed (ROCE) for Q1 2025 was 4%, below the >12% target.

• Dividend policy targets a pay-out ratio of at least 50% of net result.

• Solid financial standing with net debt at EUR 402 million and liquidity of EUR 371 million as of March 2025.

Operational highlights and investments

• Paperboard deliveries increased to 367,000 tonnes in Q1 2025, though still below total capacity.

• Ongoing and planned investments include capacity expansions at Kemi and Husum, and a major renewal at Simpele mill.

• Closure of Tako mill by end of H2 2025 to improve profitability, with production transferred to other mills.

• Annual EBITDA improvement of ~EUR 30 million expected mainly from Q4 2025 onwards.