Debt Investor Presentation 2Q 2013 1.8. 2013 Mets Board Mets - - PowerPoint PPT Presentation

Metsä Group

Metsä Board

Debt Investor Presentation 2Q 2013

1.8. 2013

Metsä Group

Metsä Board

Financial Situation Continues Good

‒ Net debt 606 m€ ‒ Net gearing 74%, equity ratio 32.4% at end 2Q 2013 ‒ The 500 m€ term loans were drawn and the remaining 450 m€ of the 500 m€ eurobond was repaid in April ‒ Metsä Board’s cash about 130 m€ at end 2Q 2013 and a 100 m€ RCF available ‒ Average interest rate 3.9% at end 2Q 2013

Net Debt, m€

606 3693 2403 500 1000 1500 2000 2500 3000 3500 4000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2Q13

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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 2Q 2013 ‒ Average maturity of long term loans 2,5 years ‒ Average interest rate of loans (including derivatives) 3,9 % ‒ Interest rate maturity of loans (including derivatives) 11,5 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 738 m€ 30.6.2013

Long-T erm Interest Bearing Liabilities

22 % 7 % 4 % 67 % Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities

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Metsä Group

Metsä Board

Total 323 m€ 30.6.2013

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 30.6.2013

‒ Long-term 738 ‒ Short-term 323 Total interest bearing liabilities 1 061 ‒ Liquidity and other interest bearing receivables 455 Interest bearing net liabilities 606

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m€

Metsä Group

Metsä Board

Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 30.6.2013

27 184 70 366 22 21 20 28 100 48 50 100 150 200 250 300 350 400 2013 2014 2015 2016 2017 2018 2019 >2 019 Long-term interest bearing liabilities Committed undrawn credit facilities

m€

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Metsä Group

Metsä Board

Liquidity

Committed credit facilities Liquid funds

m€

9

100 200 300 400 500 600 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

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 June 30, 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 0 – – Global Medium-Term Note Program EUR 1 500 EUR 0 – – Bridge Financing Faciility 2012 EUR 150 EUR 150 6,3 % 2014 Term Loan Facility 2012 EUR 350 EUR 350 6,5 % 2016 EUR 58 million bilateral loans EUR 58 EUR 58 1,8 % 2013-2015 EUR 28 million finance leases EUR 26 EUR 26 2,4 % 2013–2020 EUR 210 million pension loans EUR 210 EUR 162 4,7 % 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 30.6.2013 is 3,9 %. The following table sets forth Metsä Board´s principal long-term liquidity reserves as at June 30, 2013: Average Liquidity reserves Total amount Outstanding I nterest Rate (1) Maturity (EUR in millions) Revolving Credit Facility 2012 EUR 100 EUR 0 – 2015 Pension loan facilities EUR 210 EUR 162 4,7 %

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

(currency in millions)

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 Moody’s: Upgrade to B2, outlook to stable

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Metsä Group

Metsä Board

Thank You!

www.metsaboard.com Juha Laine

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