Debt Investor Presentation 1Q 2013 7.5. 2013 Mets Board Mets - - PowerPoint PPT Presentation

Metsä Group

Metsä Board

Debt Investor Presentation 1Q 2013

7.5. 2013

Metsä Group

Metsä Board

Financial Situation Improved Further in 1Q 2013

‒ Net debt 578 m€ ‒ Net gearing 69%, equity ratio 33.3% ‒ Remaining USD 121 million private placement was prepaid in March which increased the financing costs in 1Q ‒ Metsä Fibre dividend 25 m€ was received in March ‒ Metsä Board’s cash about 140 m€ at end 1Q ‒ Average interest rate reduced to 4.1% ‒ After the reporting period in April the 500 m€ term loans were drawn and the remaining 450 m€ of the 500 m€ bond was repaid

Net Debt, m€

578 3693 2403 500 1000 1500 2000 2500 3000 3500 4000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q13

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Metsä Group

Metsä Board

Agreement on Metsä Board’s Refinancing Signed in May 2012

‒ 600 m€ term loan and revolving credit facility agreement with a syndicate of five banks and certain Finnish institutional investors ‒ This agreement was utilized to refinance the 500 m€ eurobond matured in April 2013 ‒ Facilities include a 100 m€ RCF available immediately and 500 m€ term loans available from late March 2013

‒ Maturity of RCF is three years ‒ 150 m€ of term loans matures at end June 2014 and 350 m€ at end March 2016

‒ The average financing cost of the facilities calculated for the entire loan period is 6.5 %

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Metsä Group

Metsä Board

Loans and Interest Rate

At the end of 1Q 2013 ‒ Average maturity of long term loans 0,8 years ‒ Average interest rate of loans (including derivatives) 4,1 % ‒ Interest rate maturity of loans (including derivatives) 12,3 months ‒ Of the loans about 75 per cent was subject to variable interest rates and 25 per cent to fixed interest rates

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Metsä Group

Metsä Board

Total 712 m€ 31.3.2013

Long-T erm Interest Bearing Liabilities

63 % 8 % 4 % 0 % 25 % Bonds Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities

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Metsä Group

Metsä Board

Total 313 m€ 31.3.2013

Short-T erm Interest Bearing Liabilities

1 % 99 % Metsä Group Short-term bank loans and other

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Metsä Group

Metsä Board

Interest Bearing Net Liabilities 31.3.2013

‒ Long-term 712 ‒ Short-term 313 Total interest bearing liabilities 1 025 ‒ Liquidity and other interest bearing receivables 447 Interest bearing net liabilities 578

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m€

Metsä Group

Metsä Board

Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 31.3.2013

500 29 72 22 21 21 20 28 150 100 350 20 100 200 300 400 500 600 2013 2014 2015 2016 2017 2018 2019 >2 019 Long-term interest bearing liabilities Committed undrawn credit facilities

m€

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After the reporting period in April the 500 m€ term loans were drawn and the remaining 450 m€ of the 500 m€ bond was repaid

Metsä Group

Metsä Board

Liquidity

Committed credit facilities Liquid funds

m€

100 200 300 400 500 600 1Q12 2Q12 3Q12 4Q12 1Q12

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Metsä Group

Metsä Board

Debt Programs

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The following table sets forth the significant debt securities issued and outstanding of Metsä Board as at March 31, 2013 Average Long-term borrowings Total amount Outstanding I nterest Rate (1) Maturity USD 350 million Private Note Issue USD 350 USD 0 – – EUR 500 million Bond Issue EUR 500 EUR 500 6,3 % 2013 Global Medium-Term Note Program EUR 1 500 EUR 0 – – EUR 66 million bilateral loans EUR 54 EUR 54 6,3 % 2013-2015 EUR 27 million finance leases EUR 26 EUR 26 2,2 % 2013–2020 EUR 230 million pension loans EUR 230 EUR 181 4,8 % 2013–2020 Short-term funding programmes EUR 350 million domestic CP-program EUR 350 EUR 0 – – EUR 150 milj. Belgian CP-program EUR 150 EUR 0 – – Average interest rate of all Metsä Board Group interest bearing liabilities including interest rate derivatives per 31.3.2013 is 4,1 %. The following table sets forth Metsä Board´s principal long-term liquidity reserves as at March 31, 2013: Average Liquidity reserves Total amount Outstanding I nterest Rate (1) Maturity (EUR in millions) Revolving Credit Facility 2012 EUR 100 EUR 0 – 2015 Bridge Financing Faciility 2012 EUR 150 EUR 0 – 2014 Term Loan Facility 2012 EUR 350 EUR 0 – 2016 Pension loan facilities EUR 230 EUR 181 4,8 %

• (1) The average interest rates take into account outstanding interest rate swaps and amortised arrangement fees.

(currency in millions)

After the reporting period in April the 500 m€ term loans were drawn and the remaining 450 m€ of the 500 m€ bond was repaid

Metsä Group

Metsä Board

Ratings’ History

2000 S&P: Short term ratings lowered to A3, Long term ratings placed to credit watch negative Moody’s: Long and short term ratings

• utlook changed from stable to negative

2001 S&P: Long term ratings lowered to BBB-, stable outlook Moody’s: Long and short term ratings lowered to Baa3/P3, negative outlook 2003 S&P: Downgrade to BB+, stable outlook Moody’s: Downgrade to Ba1, negative

• utlook

2004 S&P: Outlook changed from stable to negative, ratings affirmed Moody’s: Downgrade to Ba2, stable outlook 2005 S&P: Downgrade to BB, stable outlook Moody’s: Outlook changed from stable to negative, ratings affirmed 2006 S&P: Downgrade to BB-, negative outlook Moody’s: Downgrade to Ba3, negative outlook Moody’s: Downgrade to B2, negative outlook S&P: Downgrade to B+, negative outlook 2007 Moody’s: Downgrade to B3, negative outlook S&P: Downgrade to B, negative outlook S&P: Downgrade to B-, stable outlook 2008 S&P: Outlook to negative 2009 S&P: Downgrade to CCC+, negative outlook Moody’s: Downgrade to Caa1, outlook negative 2010 S&P: Outlook to stable Moody’s: Outlook to stable S&P: Upgrade to B-, stable outlook Moody’s: Upgrade to B3, outlook to positive 2011 S&P: Outlook to positive S&P: Outlook to stable Moody’s: Outlook to stable 2012 Moody’s: Outlook to positive 2013 S&P: Outlook to positive

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Metsä Group

Metsä Board

Thank You!

www.metsaboard.com Juha Laine

Headof IR +358 10 4654335 juha.laine@metsagroup.com