Metsä Board (METSB) Investor presentation summary

Strategic positioning and market leadership

• Holds leading positions in folding boxboard and white kraftliners in Europe, and is the top global producer of coated white kraftliners.

• Focuses on premium, recyclable fresh fibre paperboards, mainly for consumer products and packaging alternatives to plastics.

• Main markets are Europe and North America, with growing demand driven by environmental awareness and regulatory trends favoring recyclable materials.

• Self-sufficiency in pulp and energy is secured through significant ownership in Metsä Fibre and high levels of internal energy generation.

• Long-term customer relationships span 100 countries, with a diversified base including brand owners and manufacturers.

Financial performance and targets

• H1 2024 sales were EUR 994 million, with a comparable operating margin of 3.1% and ROCE at 2.9%.

• Q2 2024 saw solid demand and stable prices for paperboards, but operating result was impacted by strikes and a gas explosion at the Kemi mill.

• Net debt at the end of H1 2024 was EUR 294 million, with a financial target of net debt to EBITDA below 2.5x.

• Dividend policy targets a payout ratio of at least 50% of net result.

• Near-term outlook expects continued solid demand, stable prices, and ongoing cost control, with some negative FX impact.

Investments and growth initiatives

• Major capacity expansions completed in Husum (FBB) and Kemi (WKL), with full market availability expected by 2025–2026.

• Ongoing renewal of Simpele board mill to improve quality, increase capacity, and enable fossil-free production, with EUR 60 million investment.

• Total investments in H1 2024 were EUR 53 million; 2024 capex expected around EUR 150 million.

• Future investments focus on competitiveness, sustainability, and new product development, with EUR 250 million planned for Simpele and Kyro mills over 10 years.