Debt Investor Presentation 3Q 2013 6.11. 2013 Mets Board Mets - - PowerPoint PPT Presentation

Metsä Group

Metsä Board

Debt Investor Presentation 3Q 2013

6.11. 2013

Metsä Group

Metsä Board

Good Financial Situation Continues

‒ Gross debt 748 m€, cash and interest bearing receivables 126 m€ and net debt 622 m€ ‒ 100 m€ RCF fully available ‒ Metsä Board divested its 51% holding in Metsä Group Treasury to Metsäliitto Cooperative ‒ Net gearing 75%, equity ratio 38.4% at end 3Q 2013 ‒ Average interest rate 5.5% at end 3Q 2013 ‒ S&P upgraded Metsä Board’s credit rating from B- to B in August

Net Debt, m€

622 3693 2403 500 1000 1500 2000 2500 3000 3500 4000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 3Q13

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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 3Q 2013 ‒ Average maturity of long term loans 2,2 years ‒ Average interest rate of loans (including derivatives) 5,5 % ‒ Interest rate maturity of loans (including derivatives) 14,6 months ‒ Of the loans about 67 per cent was subject to variable interest rates and 33 per cent to fixed interest rates

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Metsä Group

Metsä Board

Total 738 m€ 30.9.2013

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

Interest Bearing Net Liabilities 30.9.2013

‒ Long-term 738 ‒ Short-term 10 Total interest bearing liabilities 748 ‒ Liquidity and interest bearing receivables 126 Interest bearing net liabilities 622

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m€

Metsä Group

Metsä Board

Long-term Interest Bearing Liabilities and Committed Undrawn Credit Facilities 30.9.2013

25 186 71 366 21 21 20 28 100 66 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€

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

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*Divestment of 51 % in Metsä Group Treasury reduced the consolidated amount of cash at Metsä Board’s balance sheet

Metsä Group

Metsä Board

33,3 32,4 38,7 27,9 31,1 31,2 33,2 5 10 15 20 25 30 35 40

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13*

75 74 69 73 70 73 103 20 40 60 80 100 120

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13

Balance Sheet Ratios

Equity Ratio Net gearing

% %

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*Divestment of 51 % in Metsä Group Treasury improved equity ratio by about 5 percentage points

Metsä Group

Metsä Board

Debt Programs

10 The following table sets forth the significant debt securities issued and outstanding of Metsä Board as at Sept. 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 6,2 % 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 28 EUR 28 2,4 % 2013–2020 EUR 228 million pension loans EUR 228 EUR 162 4,7 % 2013–2020 Short-term funding programmes (Metsä Group Treasury) EUR 150 million domestic CP-program EUR 150 EUR 0 – – Average interest rate of all Metsä Board Group interest bearing liabilities including interest rate derivatives per 30.9.2013 is 5,5 %.

The following table sets forth Metsä Board´s principal long-term liquidity reserves as at Sept. 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 228 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 stable S&P: Upgrade to B, outlook 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