Debt Investor Presentation 4Q 2011 M-real M-real 9.2. 2012 Mets - - PowerPoint PPT Presentation

Metsä Group

M-real M-real

Debt Investor Presentation 4Q 2011

9.2. 2012

Metsä Group

M-real M-real

Financial Situation Stable

‒ Net debt unchanged at 783 m€ ‒ Net gearing 106 %, equity ratio 27.4 %

‒ Clear headroom to the covenant levels

‒ ONWC decreased 95 m€ in 4Q 2011 and 110 m€ in 2011 ‒ Good cash position, M-real’s liquid funds about 200 m€ ‒ Average interest rate 6.1 % ‒ Refinancing negotiations ongoing

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Net Debt, m€

1867 2403 2205 3693 3482 3019 3109 2183 1254 777 827 783 500 1000 1500 2000 2500 3000 3500 4000 2 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 2 1 2 1 1

Metsä Group

M-real M-real

Loans and Interest Rate

At the end of 2011 ‒ Average maturity of long term loans 1,9 years ‒ Average interest rate of loans (including derivatives) 6,1 % ‒ Interest rate maturity of loans (including derivatives) 14,5 months ‒ Of the loans about 61 per cent was subject to variable interest rates and 39 per cent to fixed interest rates

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Metsä Group

M-real Total 1 023 m€ 31.12.2011

Long-term Interest Bearing Liabilities

67 % 5 % 3 % 5 % 20 % Bonds Pension premium loans Loans from financial institutions Finance leases Other interest bearing liabilities

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Metsä Group

M-real

Total 113 m€ 31.12.2011

Short-term Interest Bearing Liabilities

2 % 98 % Metsäliitto Group Short-term bank loans and other

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Metsä Group

M-real M-real

Interest Bearing Net Liabilities 31.12.2011 (m€)

‒ Long-term 1 023 ‒ Short-term 113 Total interest bearing liabilities 1 137 ‒ Liquidity and other interest bearing receivables 354 Interest bearing net liabilities 783

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Metsä Group

M-real M-real

Long-term Interest Bearing Liabilities 31.12.2011

166 554 121 71 21 20 70 100 200 300 400 500 600 2012 2013 2014 2015 2016 2017 >2 017

m€

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Metsä Group

M-real M-real

Liquidity

Committed credit facilities Liquid funds

m€ 100 200 300 400 500 600 I/10 II/10 III/10 IV/10 I/11 II/11 III/11 IV/11

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Metsä Group

M-real M-real

Debt Programs

The following table sets forth the significant debt securities issued and outstanding as at Dec. 31, 2011: Average Long-term borrowings Total amount Outstanding I nterest Rate (1) Maturity USD 350 million Private Note Issue USD 350 USD 224 7,9 % 2012–2014 EUR 500 million Bond Issue EUR 500 EUR 500 7,6 % 2013 Global Medium-Term Note Program EUR 1 500 EUR 0 million private placements EUR 0 – – EUR 98 million bilateral loans EUR 98 EUR 98 3,4 % 2012–2013 EUR 27 million finance leases EUR 27 EUR 27 2,1 % 2012–2020 EUR 230 million pension loans EUR 230 EUR 210 5,6 % 2012–2020 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 interest bearing liabilities including interest rate derivatives per 31.12.2011 is 6,1 %. (1) The average interest rates take into account outstanding interest rate swaps and amortised arrangement fees. (currency in millions) 9

Metsä Group

M-real M-real

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

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Metsä Group

M-real M-real

Thank You!

www.metsaboard.com Juha Laine

Head of IR +358 10 4654335 juha.laine@metsagroup.com

M-real

M-real