Mets Board Corporation Investor presentation January September 2019 - - PowerPoint PPT Presentation
Mets Board Corporation Investor presentation January September 2019 Contents This is Mets Board 3 January- September 2019 Results .. 32 Planned investments .. 14
January–September 2019
This is Metsä Board ………………………… 3 January-September 2019 Results …….. 32 Planned investments ……………………….. 14 Sustainability ………………………………. 45 Profitability drivers ………………………….. 19 R&D ………………………………………… 56 Operating environment …………………….. 27 Owners, management, contacts ……….... 67
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Folding boxboard 56% White kraftlainer 26% Market pulp 18%
FY 2018: EUR 1,944m
EMEA 74% Americas 19% APAC 8%
FY 2018: EUR 1,944m
Sales split by product Sales split by region Year 2018: Sales EUR 1.9bn, comparable operating result EUR 252m, ROCE 14.4%, Capex EUR 70m, Personnel 2,352 Total paperboard capacity
2Mt/a
Net pulp balance
+600,000t/a
STRONG MARKET POSITION
#1 in folding boxboard and white kraftliner in Europe #1 in coated white kraftliner globally Largest European importer of folding boxboard to US
MAIN CUSTOMERS
Brand-owners, converters, merchants and manufacturers of corrugated products TOP10 customers: ~25% of sales Largest customer: <5% of sales
production units in Finland and Sweden
METSÄ BOARD IS PART OF METSÄ GROUP (Metsäliitto Cooperative)
Metsä Board owns 24.9% of its associated company Metsä Fibre Metsäliitto Cooperative, owned by 103,000 Finnish forest owners, holds 45% of Metsä Board’s shares and 63% of votes
Total paperboard capacity 2Mt, of which 2/3 folding boxboard and 1/3 white kraftliners Folding boxboards and Food service boards
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White kraftliners, coated and uncoated
Food and Food service Other consumer goods (e.g. pharma, cosmetics) Graphical end-uses
Folding boxboard end-uses*
Shelf-ready and Point-of-sale (food, beverages, cosmetics) Other consumer goods (e.g. electronics) E-commerce
White kraftliner end-uses*
*) all data is indicative and based on Metsä Board’s own estimates
SUSTAINABILITY
We use only renewable fresh fibres from sustainably managed northern forests
FOOD SAFETY
We have good control of raw materials, which guarantees purity and safety in food contact uses
E-COMMERCE
Our paperboards
promotion and branding experience
GLOBALISATION AND URBANISATION
We offer recyclable products that are ideal for the circular economy
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Folding boxboard in Europe
Total capacity 3.8m tonnes
White kraftliner in Europe
Total capacity 2.1m tonnes
Metsä Board #1
#2 #3 #4 #5 Others
Metsä Board #1
#2 #3 #4 #5 Others
paperboard deliveries (2018):
quality FBB segment
importer of FBB to US
kraftliners globally
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Husum, SWE
400,000 t/a FBB 250,000 t/a WKL 730,000 t/a Pulp
Kemi
425,000 t/a WKL 610,000 t/a Pulp*
Kaskinen
370,000 t/a BCTMP
Kyro
190,000 t/a FBB
Äänekoski
255,000 t/a FBB 1.3 million t/a Pulp*
Simpele
290,000 t/a FBB
Joutseno
330,000 t/a BCTMP 690,000 t/a Pulp*
Tako
210,000 t/a FBB
Wood sourced from Finland, Sweden, Baltics and Russia.
*Metsä Fibre mill
Our net balance in pulp in 2019, including the 24.9% ownership in Metsä Fibre, is 600,000 t/a Total paperboard capacity: Folding boxboard (FBB): 1,345,000 t/a White kraftliner (WKL): 675,000 t/a
Wood products Paperboard
METSÄ TISSUE METSÄ FOREST
Wood supply and forest services
METSÄ FIBRE
Pulp and sawn timber
METSÄ WOOD METSÄ BOARD
Tissue and greaseproof papers Group’s parent company, owned by 103,000 Finnish forest owners METSÄLIITTO COOPERATIVE METSÄ GROUP
METSÄ BOARD OWNS 24.9%
Through Metsä Fibre’s ownership Metsä Board’s annual net pulp balance is 600,000 tonnes long in 2019
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763 801 865 988 1144 1215 373 444 539 580 658 615 500 1 000 1 500 2 000 500 1 000 1 500 2 000 2013 2014 2015 2016 2017 2018
White kraftliner deliveries Folding boxboard deliveries Total paperboard capacity
Metsä Board’s annual paperboard deliveries and current capacity, 1,000 tonnes
* During 2013-2017 the demand growth for FBB and WKL was ~3%/year
1,000 tonnes
Total paperboard capacity 2 million tonnes
Investments in growth 2011–2018:
2019 New sheeting line in Äänekoski 2018 New baling line in Kaskinen BCTMP mill: 30,000 new BCTMP capacity 2017 New extrusion coating line in Husum: 100,000 t/a PE coating capacity 2015–16 New folding boxboard production line in Husum: 400,000 t/a of FBB and linerboard production line conversion: 250,000 t/a of WKL 2011–12 Debottlenecking in Simpele, Äänekoski and Kyro mills: total 150,000 t/a of FBB
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30 60 90 120 150 180 2011 2012 2013 2014 2015 2016 2017 2018 2019E Maintenance capex Growth capex Depreciation
Capital expenditure and depreciation
EUR million
Note! Estimated 2019 capex includes the first instalments related to Husum pulp mill renewal
Comparable ROCE: At least 12%
11.3 8.1 11.2 14.4 11.8 2015 2016 2017 2018 LTM 1.2 2.0 1.2 1.0 1.2 2015 2016 2017 2018 LTM
Net debt/comparable EBITDA: Maximum level 2.5x
> 12% < 2.5x
11 11
44 76 50 51 2015 2016 2017 2018
Dividend policy: Payout ratio at least 50% of net result
> 50% LTM = last twelve months
Enterprise value, EUR million
500 1000 1500 2000 2500 3000 3500
2012 2013 2014 2015 2016 2017 2018 9/2019
Net debt Market capitalization, EUR million
Dividend, EUR and payout ratio, %
0% 25% 50% 75% 100% 0,00 0,05 0,10 0,15 0,20 0,25 0,30 2012 2013 2014 2015 2016 2017 2018 Dividend, EUR Dividend/EPS, %
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CAGR in dividend
+30%
in 2012–2018
Note! Year 2018 total distribution consists of a dividend of EUR 0.10 and other distribution of equity of EUR 0.19 per share
20 40 60 80
50 100 150 200 2013 2014 2015 2016 2017 2018 LTM FCF, EUR million FCF/EBITDA,%
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EUR million %
Free cash flow in EUR million and % of EBITDA
Comparable EBITDA, LTM, EUR 301 million
FCF=Cash flow from operations after investments
LTM = 10/2018–09/2019
– EUR 103 million dividend paid in April – Capex: Estimated EUR 90-100 million, including the first instalments of Husum pulp mill renewal
Husum pulp mill renewal going forward
– Capex EUR 320 million in 2019-2022
capex split to be communicated when the timing of the environmental permit is known – Financing mainly through incremental debt – cost <1% p.a. and P&L impact EUR 2 million/year from start-up – Dividend policy unchanged
Renewal of MetsäBoard Husumpulp mill New bioproduct mill and a sawmill line by MetsäFibre
Metsä Board: Husum, SWE Renewal of the pulp mill
EUR 320 million (first phase)
Metsä Fibre: Kemi, FIN New bioproduct mill
EUR ~1.5 billion
Metsä Fibre: Rauma, FIN New pine sawmill line
EUR ~200 million
The aim is to further improve the competitiveness of pulp and energy production and move towards fossil-free mills
Metsä Board owns 24.9% of Metsä Fibre
2019 2020 2021 2022
Final investment decision expected to be made in Q2 2020, at the earliest New recovery boiler and turbine expected to be in
Prefeasibility study on the renewal concluded Company to apply for an environmental permit
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The renewal of the pulp mill would:
➢ Create a solid foundation to increase paperboard capacity in the integrate in the future ➢ Secure cost efficient pulp and energy production ➢ Enable the company to reach its ambitious target of fossil-free mills by 2030
* The second phase of the investment would include the replacement the old fibre lines with one new line and take place during the 2020s after the first phase is fully completed
The first phase* of the investment Investment value is EUR 320 million, divided over 2019–2022
decided that the planned new recovery boiler will require an amendment to the environmental permit
caused by the permit process and will make financial commitments up to EUR 100 million2) before the final investment decision
receiving the environmental permit, estimated in Q2 2020, at the earliest
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Announced after the review period on 31 October
1) Competent authority in Sweden 2) Included in the total investment value of EUR 320 million
40% to over 80%*
– Extended intervals between planned shutdowns – Reduced duration of the planned shutdowns → Increased pulp and paperboard production
30 million EBITDA improvement and EUR 5 million lower capex
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*) Annual increase in electricity production about 330 GWh, resulting in cost
savings at current electricity prices of approximately EUR 12 million
New bioproduct mill* in Kemi, Finland
several other bioproducts
– environmental permit application filed in September 2019
New sawmill line in Rauma, Finland
line in the world
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*) would replace the existing pulp mill in Kemi, with
annual capacity of 630,000 tonnes of chemical pulp
Component Unit Change Impact on EBIT Folding boxboard Price +/- 10% > EUR 100 million White kraftliners Price +/- 10% ~ EUR 50 million FX USD/EUR +/- 10% EUR 65 million SEK/EUR +/- 10% EUR 40 million Pulp PIX price of SW/HW per tonne +/- 10% EUR 25 million Wood Cost, delivered to Finnish mills +/-10% EUR 40 million* Cost, delivered to Husum +/-10% EUR 20 million
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* incl. ownership in Metsä Fibre
In 2018, Metsä Board sourced 5.5 million m3 wood, of which 37% from Sweden, 28% Finland, 20% Baltics and 15% Russia. Including the 24.9% share from Metsä Fibre, the total sourcing was 8.5 million m3
USD 57 % SEK 34 % GBP 7 % Others 2 % Annual FX transaction exposure total EUR 1.1 billion
Wood 28% Logistics 16% Chemicals 15% Energy 14% Personnel 13% Other fixed 14%
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Metsä Board’s cost split in 2018
Metsä Board’s total costs in 2018: EUR 1.7 billion (2017: EUR 1.6 billion) Cost component Estimated development in 2019 vs. 2018 Wood Rapid rise in 2018. Stabilised but high price level in 2019 leads to slightly higher costs year-on-year. Small decline in Baltics at the end of H1. Logistics Stable Chemicals Stable or slightly lower Energy Lower costs year-on-year. Offsets the increase in wood costs. Personnel Stable or slightly lower Other fixed In line with or below general cost inflation
500 600 700 800 900 1000 1100 1200 500 600 700 800 900 1000 1100 1200 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Folding boxboard White-top kraftliner
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EUR/ tonne Sources: Fastmarkets RISI & Fastmarkets FOEX EUR/ tonne
350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19
350 400 450 500 550 600 650 700 750 800 850 900 950 1000 1050 1100 1150 1200 1250 Source: Fastmarkets Foex
USD or EUR USD or EUR
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Long-fibre, USD
Long-fibre, EUR
Short-fibre, EUR Short-fibre, USD
Pulpwood roadside prices in Finland, EUR/m3 Pulpwood roadside prices in Sweden*, SEK/m3
Sources: Luke (Natural Resources Institute Finland) and Skogsstyrelsen (The Swedish Forest Agency)
20 22 24 26 28 30 32 34 36 38 40 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Spruce Birch Pine 150 170 190 210 230 250 270 290 310 330 350 370 390 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Spruce Birch Pine
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EUR/USD
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EUR/SEK
1,08 1,1 1,12 1,14 1,16 1,18 1,2 1,22 1,24 1,26 9,6 9,8 10 10,2 10,4 10,6 10,8 11
The total packaging market is USD 850 billion Average annual growth rate of paperboard packaging USD 300 bn
USD bn
Source: Smithers Pira
50 100 150 200 250 300 350 2012 2013 2014 2015 2016 2017 2022F +3% per year 2017–2022
Other fibre- based Plastic Metal Glass
36%
10% 34% 13% 7%
Paperboard
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10000 20000 30000 40000 50000 60000 70000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 1000 metric tonnes Asia 2.5%/a
Containerboard growth forecast Cartonboard growth forecast
Source: RISI Paper Packaging Forecasts
25 50 75 100 125 150 175 200 225 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Million metric tonnes
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Cartonboard White linerboard Cartonboard White linerboard Cartonboard White linerboard Total annual demand: 10 million tonnes 3 million tonnes 10 million tonnes 5 million tonnes 22 million tonnes 3 million tonnes
Americas EMEA APAC
FSB FBB Other fresh fibre grades Recycled grades CWKL WKL White testliner FSB FBB Other fresh fibre grades Recycled grades CWKL WKL White testliner FSB FBB Other fresh fibre grades Recycled grades WKL White testliner
FSB = food service board, FBB = folding boxboard, SBS & CUK = other fresh fibre grades, WLC = recycled grades WKL = uncoated white kraftliner, CWKL=coated white kraftliner
28% 77% 41% 38% 36% Source: Metsä Board research based on several sources, e.g. CEPI Cartonboard and Containerboard, RISI
Total containerboard market 170Mt Linerboards 102Mt
White linerboard 11Mt
White kraftliner 4Mt White coated kraftliner 1Mt White uncoated kraftliner 3Mt White testliner 7Mt
Brown linerboard 91 Mt
Brown kraftliner 24Mt Brown testliner 67Mt
Fluting 68Mt
Fresh fibre fluting 8Mt Recycled fluting 60Mt
Global annual demand in containerboards totals 170 million tonnes
Source: Metsä Board’s own estimate based on several sources
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AMERICAS 23% EMEA 70% APAC 7%
and increased purchasing power support demand for paperboard
cartonboard
high-quality segment
customers operate with low stocks
and regulations support demand for sustainable packaging materials
cartonboard supply
paper into containerboard production
Share of Metsä Board’s total paperboard deliveries in 2018:
SBS/FSB and declined imports from China
coated WKL
key words
– Increasing branding of the packaging – Trend towards shipping the product in its own container – Personalisation of boxes, supported by advanced technology in digital printing
20% per year on average, increasing its share of the retail trade from 10% to 18% in 2017–2021
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Sources: eMarketer, Smithers Pira
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Q3/19 Q3/18 Change Q3/19 vs. Q3/18 Q1-Q3 2019 Q1-Q3 2018 Change Q1–3/19 vs. Q1–3/18 FY 2018 Sales
EUR, m
489 475 3% 1,453 1,486
1,944 EBITDA*
EUR, m
62 84
220 263
344 Operating result*
EUR, m
43 64
145 192
252 % of sales*
%
8.7 13.4 10.0 12.9 13.0 Metsä Fibre’s share of
EUR, m
6 34
44 92
124 Earnings per share
EUR
0.09 0.16
0.36 0.43
0.57 ROCE*
%
9.7 15.0 11.0 14.7 14.4 Capex
EUR, m
18 11 67% 42 36 16% 70 Cash flow from operations
EUR, m
44 54
111 121
151 IB Net debt, at end of period
EUR, m
352 344 2% 352 344 2% 335
*comparable
– Higher paperboard volumes, stable price levels and lower costs compared to Q2 2019
negative impact on the result
Husum integrates Planned renewal of Metsä Board’s Husum pulp mill
prior to the final investment decision
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Announced after the review period on 30 October:
265 304 299 276 297 328 297 293 302 299 305 163 173 170 152 171 161 149 134 138 146 161
100 200 300 400 500
Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019
White kraftliner Folding boxboard
447 1,000 tonnes
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1,000 tonnes Q1-Q3 2018 total: 1,405k tonnes Q1-Q3 2019 total: 1,352k tonnes 445 466
+4% +5%
Biggest deviations in WKL in EMEA and FBB in APAC
Folding boxboard (FBB) deliveries in tonnes January–September 2019 (1–9/2018)
EMEA 645,000 (637k) Americas 185,000 (192k) APAC 77,000 (92k) EMEA 290,000 (344k) Americas 147,000 (134k) APAC 7,000 (3k)
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White kraftliner (WKL) deliveries in tonnes January–September 2019 (1–9/2018) 71% 20% 9% 65% 33%
Total FBB deliveries 1–9/2019: 907,000 tonnes (1–9/2018: 922,000) Total WKL deliveries 1–9/2019: 445,000 tonnes (1–9/2018: 481,000)
2%
69 62 59 41 64 43 8.0% 10.5% 13.0% 12.9% 10.0% 0,0 3,0 6,0 9,0 12,0 15,0 60 120 180 240 300 2016 2017 2018 Q1–Q3 2018 Q1–Q3 2019
January–September 2019 (1-9/2018)
Sales
EUR million 492 487 519 477 475 489 400 800 1200 1600 2000 2016 2017 2018 Q1–Q3 2018 Q1–Q3 2019
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Comparable operating result
EUR million and % of sales
EUR million EUR million
Operating result, % of sales: Q3/19: 8.7% Q2/19: 8.6% Q1/19: 12.7%
Q3 Q2 Q1 Q3 Q2 Q1 1,486 1,453 192 145
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Q3 2019: EUR 43 million (EUR 41 million) Positive: + favourable development in paperboard business + lower costs + lower depreciation Negative:
Q1–Q3 2018: EUR 145 million (EUR 192 million) Positive: + higher prices in FBB and WKL + FX Negative:
Comparable operating result
Comparable operating result
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Pulp price (PIX) development in Europe and China
roughly 30% in Europe and by 40% in China from their highest levels in 2018
approaching each other
increases in China
decreased but are are still high
Long-fibre pulp, Europe Long-fibre pulp, China (net)
Source: Fastmarkets Foex Note! The specifications of PIX China Net index were renewed in the beginning of 2017. Earlier data not comparable with new USD/tonne USD/tonne
200 400 600 800 1 000 1 200 1 400 200 400 600 800 1 000 1 200 1 400 2013 2014 2015 2016 2017 2018 2019
68 106 30 36 54 30 36 31 44 59 79 20 23 43
29 13 26
50 100 150 200 250
50 100 150 200 250 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Cash flow from operations, quarterly Free cash flow, quarterly Cash flow from operations, rolling 12 months Free cash flow, rolling 12 months
EUR million
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Free cash flow = cash flow from operations − investments
EUR million
437 358 335 388 344 335 297 380 352 1.7 1.2 1.1 1.2 1.0 1.0 0.9 1.2 1.2
0,0 0,5 1,0 1,5 2,0 2,5 3,0 100 200 300 400 500
600
9/2017 12/2017 3/2018 6/2018 9/2018 12/2018 3/2019 6/2019 9/2019
Net debt, EUR million Net debt to comparable EBITDA (last 12 months)
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Net debt / EBITDA target level: <2.5 EUR million
On 30 September, Metsä Board signed a financing facility with sustainability targets consisting of EUR 150 million term loan and EUR 200 million RCF to replace existing loan (EUR 50 million) and RCF (EUR 150 million)
50 100 150 200 250 2019 2020 2022–26 2027
Bonds Loans from financial institutions Pension loans Other loans
2)
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Long-term interest-bearing debt maturity profile as per 30 September 2019
EUR million
facility consisting of five-year term loan of EUR 150 million1) and five-year RCF of EUR 200 million to replace the drawn loan of EUR 50 million2) and undrawn RCF of EUR 150 million
(30.9.2018: EUR 469 million)
Rating agency Rating and
Last update S&P Global BBB- stable 02/2018 Upgrade from BB+ Moody‘s Investor Services Baa3 stable 01/2019 Upgrade from Ba1 Metsä Board’s both credit ratings are investment grade
In addition, Metsä Board has unraised pension loans of EUR 166 million
1) drawn and booked after the review period 2) earlier drawn loan that would have expired on 2020
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expected to decline from Q3 levels due to seasonally slower December
in Q4 compared to Q3
result for the fourth quarter of 2019 is expected to remain roughly at the same level as in the third quarter of 2019
Origin and transparency of materials, renewability, resource efficiency and recylability
reducing their carbon footprints: Lighter packaging reduces CO2 emissions across the value chain
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“Our comprehensive approach to reducing our environmental impact means looking at all aspects of our business, how they intersect and how we can integrate new solutions to create meaningful and sustained change.” – Starbucks website “We want low-carbon to become the new normal, so we’re taking action to reduce GHG emissions throughout our value chain.” – Unilever website
willingness to pay more for it
value for the paperboard cartons
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A detailed consumer study with cherry tomatoes was carried out in Finland by Sense N Insight, Luke (Natural Resources Institute Finland) and Metsä Board
Replacing fossil- based materials, i.e. plastics The solution: renewable and biodegradable wood fibre Increased waste generation due to urbanisation The solution: Paperboard is recyclable – and widely recycled Reducing carbon footprint The solution: renewable energy, efficient energy and water usage in production Ensuring food safety The solution: pure and safe fresh fibres in food packaging Fresh fibre paperboards offer solutions to major challenges
Less energy, water and raw material consumed Less transport weight Less waste generated
Finland and Sweden (65%)
from sustainably managed forest sources ensuring the bio-diversity and recreational use
21% from controlled forest sources)
is certified by 2030
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MILLION M3
Annual growth of Finnish forests is
Forests grow more than they are used, annual harvesting 72 million m3 (2017) Four seedlings are planted for each harvested tree Over 20% of the Finnish export comes from forest-based products
The area of Finland
Cities, villages and roads Fields and agricultural use Lakes and rivers Forest
10% 10% 75% 5%
surface water in its processes
in processes several times
back to the close-by waterways after thorough purification
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Own generation 21% Through PVO shareholding 32% Purchased electricity 44% Outsourced generation 3%
Electricity sourced in 2018 (total 2.4 TWh)
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Renewable, mainly wood-based 55% Nuclear power 27% Fossil-based 18%
Primary energy used in 2018
(total 12.0 TWh)
electricity in Finland
− Including the electricity used in Husum mill, self-sufficiency will be nearly 80%
− Fair value as per 31 December 2018 was EUR 266 million
1) Olkiluoto Nuclear Power Plant 2) Pohjolan Voima Oyj is a non-listed public limited liability company.
It supplies electricity and heat for its shareholders at cost price
3) Out of 44% share of purchased energy, 14% is from Metsä Fibre
3)
Fossil free mills
0 tCO2 (Scope 1) Fossil-free purchased energy
0 tCO2 (Scope 2) Resource efficient production
100%
product ton (m3/t) – 30% vs. 2018
improvement >10% vs. 2018
WE WORK FOR A BETTER CLIMATE AND ENVIRONMENT WE OFFER SUSTAINABLE CHOICES WE CREATE WELL-BEING WE BRING THE FOREST TO YOU
Certified wood fibre
Increasing the amount of carbon stored in forests and products
management of young stands +30% vs. 2018
products (t) +30% vs. 2018 Safeguarding biodiversity
decayed wood: high biodiversity stumps in 90% of thinnings and retention trees in all regeneration logging sites Responsible corporate culture
Accident-free work environment
Fossil free raw materials
materials 100% Sustainable supply chain
materials 100%
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Metsä Board was awarded “Prime” status in ISS ESG corporate responsibility rating in May 2018. Metsä Board scored the highest recognition level “Gold” in EcoVadis’ CSR ranking in 2018, and is included in the top 1% of suppliers assessed across all categories. Metsä Board has been included on the CDP Water A List every year since 2015 and on the CDP Climate A List since 2016. In addition, Metsä Board has scored A- in the CDP Forest programme since 2015, and is included on the Supplier Engagement leader board in 2019 for its efforts to address climate change. Metsä Board as a part of Metsä Group is committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, environment and anti-corruption. Metsä Board also supports the UN’s Sustainable Development Goals, the SDGs. Metsä Board is committed to Science Based Targets initiative to reduce its GHG emissions in line with the goal of the Paris Agreement. In 2018, Metsä Board received a rating of AAA (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment. Metsä Board has an overall ESG score of 86/100 and is considered a Leader in Sustainalytics’ assessment in May 2018.
SUSTAINALYTICS SCIENCE BASED TARGETS
Link to MSCI Terms and Conditions
Metsä Board’s ESG performance was rated “Advanced” in Vigeo Eiris ESG assessment in July 2019.
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Unique opportunities for sustainability and yield gains through lightweighting and raw material efficiency Enhanced and balanced visual properties that enable highly demanding printing and finishing techniques for premium looks
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PROMOTION
Brightness
PROTECTION
Stiffness
Folding boxboard (FBB) White lined chipboard (WLC)
Metsä Board’s folding boxboard
Coated unbleached kraft (CUK)
Solid bleached board (SBB)
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Three-layer structure of Folding Boxboard
Light weight
→ better yield and sustainability
High strength and bending stiffness
→ secure protection
High brightness and smoothness
→ excellent printability
Consistent quality
→ improved production efficiency
SBS (100% chemical pulp) Metsä Board FBB (up to 70% BCTMP, 30% chemical pulp )
5 m3 of wood per tonne of pulp 3.4 m3 of wood per tonne of pulp
= =
Excellence Centre, to be operational in 2020
– Combines packaging design and R&D excellence under the same roof – Enables to organise packaging design workshops and innovation days together with customers and partners
collaboration with Metsä Spring, Metsä Group’s innovation company
Metsä Group’s business operations, products and innovation activities
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A unique bioeconomy ecosystem in Äänekoski, Finland
LIGHTWEIGHTING
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BARRIER BOARDS
Metsä Board lightweight paperboard Average FBB – Folding boxboard SBB – Solid bleached board WLC – White lined chipboard
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The weights equal to a print job of 30 000 sheets on a standard size printing press
In April 2019, we announced of our new, improved FBB portfolio, that answers to increasing demands for sustainability, product safety and brand promotion
– Further opportunities for lightweighting – Enhanced visual properties – Industry-leading quality consistency – Improved supply security and availability
Enabled by our improved high-yield BCTMP and full R&D focus on paperboard
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Metsä Board has developed a new plastic-free eco-barrier paperboard for food and food service purposes Medium barrier for grease and moisture Can be recycled in paper or paperboard streams
END-USES: Food service, fresh, dry and frozen food and
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✓ Plastic-free ✓ Easily recyclable ✓ Protective with medium barrier for grease and moisture ✓ Safe for direct food contact – no fluorochemicals or
✓ Brightest OBA-free board on the market, with excellent printability on both sides
HIGH
WVTR < 15 g/m²/d
PE barrier boards
MEDIUM
15 ≤ WVTR < 100
MetsäBoard Prime FBB EB
MODERATE
100 ≤ WVTR < 250
NONE
WVTR > 250 g/m²/d
Paperboards without barrier
MetsäBoard Prime FBB EB1
NONE
< 10 min
MODERATE
10 min ≤ OGR < 6 h
MEDIUM
6 h ≤ OGR < 72 h
HIGH
OGR > 72 h
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Oil and grease resistance (flat sample) Moisture resistance
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NON-BIOBASED BIODEGRADABLE BIOBASED NON-BIODEGRADABLE PLA (polylactide): often based on corn starch PVA (polyvinyl alcohol) PBS (polybutylene succinate) Green PE: made from biomaterials PE: made from fossil raw materials, used in extrusion coating
Examples of materials used in coating
Note! Biobased material = Renewable material ≠ Compostable ≈ Biodegradable
Market cap and foreign owners
30 September 2019
Ownership distribution
30 September 2019
Metsä Board shares are listed on Nasdaq Helsinki
5 10 15 20 25 500 1 000 1 500 2 000 2 500 3 000
12/2014 12/2015 12/2016 12/2017 12/2018 9/2019
Market cap, EUR million Share of foreign owners, %
Metsäliitto Cooperative 45% Domestic institutional investors 21% Domestic private investors 21% Foreign
13%
EUR million
71
%
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Mika Joukio
CEO Chairman of CMT since 2014 MG employee since 1990 Share ownership: 297,700
Jussi Noponen
CFO Member of CMT since 2016 MG employee since 2000 Share ownership: 73,000
Sari Pajari
SVP, Marketing and Sales Member of CMT since 2011 MG employee since 2007 Share ownership: 66,075
Ari Kiviranta
SVP, Development Member of CMT since 2014 MG employee since 1993 Share ownership: 50,000
Harri Pihlajaniemi
SVP, Production Member of CMT since 2017 MG employee in 2001-2004 and since 2017 Share ownership: no ownership
Camilla Wikström
SVP, HR Member of CMT since 2019 MG employee since 2001 Share ownership: 17,807 Share ownerships are B-shares.
MG = Metsä Group
Katri Sundström Vice President, Investor relations Tel +358 10 462 0101 katri.sundstrom@metsagroup.com Metsä Board Corporation P.O. Box 20 02020 Metsä, Finland www.metsaboard.com
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This presentation includes forward-looking statements. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “will,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or any similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are
believe that the expectations reflected in these forward-looking statements are reasonable, actual results may differ, even materially, from those expressed or implied by these forward-looking statements. We urge presentation participants not to place undue reliance on such statements. The information and views contained in this presentation are provided as at the date of this presentation and are subject to change without notice. Metsä Board does not undertake any obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required. Viewers should understand that this presentation does not constitute, and should not be construed as, an offer to buy or subscribe for Metsä Board’s securities anywhere in the world or an inducement to enter into any investment activity relating to the same. No part of this presentation should form the basis of, or be relied on in connection with, any contract
themselves with Metsä Board’s annual accounts, interim reports and stock exchange releases as well as other information published by Metsä Board to form a comprehensive picture of the company and its securities. Metsä Board publishes inside information according to Market Abuse Regulation (MAR) and rules of the Nasdaq Helsinki.
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