Debt Investor Presentation 2Q 2013 1.8. 2013 Metsä Board Metsä Group
Financial Situation Continues Good Net Debt, m€ ‒ Net debt 606 m€ 4000 3693 3500 ‒ Net gearing 74%, equity ratio 32.4% at end 2Q 2013 3000 ‒ The 500 m€ term loans were drawn and the remaining 2403 2500 450 m€ of the 500 m€ eurobond was repaid in April 2000 ‒ Metsä Board’s cash about 130 m€ at end 2Q 2013 and a 100 m€ RCF available 1500 ‒ Average interest rate 3.9% at end 2Q 2013 1000 606 500 0 2Q13 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2 Metsä Board Metsä Group
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 % 3 Metsä Board Metsä Group
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 4 Metsä Board Metsä Group
Long-T erm Interest Bearing Liabilities 7 % 4 % 22 % Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities 67 % Total 738 m€ 30.6.2013 5 Metsä Board Metsä Group
Short-T erm Interest Bearing Liabilities 1 % Metsä Group Short-term bank loans and other 99 % Total 323 m€ 30.6.2013 6 Metsä Board Metsä Group
Interest Bearing Net Liabilities 30.6.2013 m€ ‒ Long-term 738 ‒ Short-term 323 Total interest bearing liabilities 1 061 ‒ Liquidity and other interest bearing receivables 455 Interest bearing net liabilities 606 7 Metsä Board Metsä Group
Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 30.6.2013 m€ 400 366 Long-term interest bearing liabilities 350 Committed undrawn credit facilities 300 250 200 184 150 100 100 70 48 50 28 27 22 21 20 0 2013 2014 2015 2016 2017 2018 2019 >2 019 8 Metsä Board Metsä Group
Liquidity m€ Liquid funds Committed credit facilities 600 500 400 300 200 100 0 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 9 Metsä Board Metsä Group
Debt Programs 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 (currency in millions) 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. 10 Metsä Board Metsä Group
Ratings’ History 2000 2006 S&P: Short term ratings lowered to A3, S&P: Downgrade to BB-, negative outlook Long term ratings placed to credit watch Moody’s: Downgrade to Ba3, negative outlook negative Moody’s: Downgrade to B2, negative outlook Moody’s: Long and short term ratings S&P: Downgrade to B+, negative outlook outlook changed from stable to negative 2007 2001 Moody’s: Downgrade to B3, negative outlook S&P: Long term ratings lowered to BBB-, S&P: Downgrade to B, negative outlook stable outlook S&P: Downgrade to B-, stable outlook Moody’s: Long and short term ratings 2008 lowered to Baa3/P3, negative outlook S&P: Outlook to negative 2003 2009 S&P: Downgrade to BB+, stable outlook S&P: Downgrade to CCC+, negative outlook Moody’s: Downgrade to Ba1, negative Moody’s: Downgrade to Caa1, outlook negative outlook 2010 2004 S&P: Outlook to stable S&P: Outlook changed from stable to Moody’s: Outlook to stable negative, ratings affirmed S&P: Upgrade to B-, stable outlook Moody’s: Downgrade to Ba2, stable outlook Moody’s: Upgrade to B3, outlook to positive 2005 2011 S&P: Downgrade to BB, stable outlook S&P: Outlook to positive Moody’s: Outlook changed from stable to negative, S&P: Outlook to stable ratings affirmed 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 11 Metsä Board Metsä Group
Thank You! www.metsaboard.com Juha Laine Headof IR +358 10 4654335 juha.laine@metsagroup.com Metsä Board Metsä Group
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