Metsä BoardInvestor presentationJanuary-September 2016

1-9/20162

ContentsInvestment highlights 3

Strategic cornerstones and financial targets 12

Operating environment and market position 22

Q3/2016 results and outlook 33

Balance sheet and funding 42

Investments 50

Production, capacities and sourcing 57

Sustainability 65

Owners 69

Appendix 72

Contact information 78

Investment highlights

• Market leader in folding boxboard in Europe andglobal market leader in coated white top kraftliner

• Strong fibre know-how and self-sufficiency in pulp• Sales in 2015 EUR 2.0 billion and comparable

operating result EUR 180 million• 2,600 employees in 23 countries• Global sales to over 100 countries and eight

production units in Finland and Sweden

1-9/20164

Metsä Board in briefSales split 2015

Paperboard*

Paper

Sales by region 2015

EMEA

Americas

APAC

*) Includes market pulp

5

High-performance packaging materialsFolding boxboards, white-top kraftliners and fully bleached linerboards

Consumer goods Retail-ready Food service

1-9/2016

• Lightweightness– Even 30% lighter than competing grades (e.g. SBB, WLC)

• Excellent printability and runnability

• Purity and safety

• Bioenergy– More than 60% of the energy Metsä Board uses comes from

renewable resources

• Wood from known origin– Fibres used in production are sourced from sustainably

managed northern forests

6

Benefits of Metsä Board paperboards

Metsä Board’s folding boxboards areproduced from BCTMP or mechanicalpulp, which is used in the middle layer (3)to make the board bulky and light. Thetwo outer fibre layers (2 and 4) are madeof chemical pulp, which maximizes thestrength of the board.

Folding boxboard is the stiffest yet lightestpaperboard grade

1-9/2016

1-9/20167

Comparable EBITDA development

180 185208

236

283

7,2 %

8,8 %10,3 %

11,8 %

14,1 %

0%

2%

4%

6%

8%

10%

12%

14%

16%

0

50

100

150

200

250

300

2011 2012 2013 2014 2015

EU

Rm

illion

Strong profitability developmentComparable ROCE-%

1-9/20168

Comparable EBIT-%

3,4

4,8

6,4

9,1

11,3

0

2

4

6

8

10

12

2011 2012 2013 2014 2015

%

2,4

3,6

5,2

6,8

9,0

0

2

4

6

8

10

2011 2012 2013 2014 2015%

Target over 12% from 2017

1-9/20169

Strong continuing improvement in productivity

1000

1100

1200

1300

1400

1500

1600

1700

1800

1900

2000

1 000

1 300

1 600

1 900

2 200

2 500

2 800

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E

Production capacity/employee Number of employees

Production capacity (tonnes) / employee at current millsNo. ofemployees

Productioncapacity/employee

• High investment costs

• Limited availability of high yield pulp (e.g. BCTMP)

• Leading global consumer goods companies and corrugated boxmanufacturers not willing to change paperboard supplierseasily in the high-quality segments

– High speed packaging lines very quality sensitive– Requirements for uniform brand look and feel globally– Sustainability and product safety aspects

• Skilled people and organizations a crucial success factor

1-9/201610

High threshold for new producersto enter high-quality paperboardsegment

Vaihda kuvalaadukas kartonki

1-9/201611

Metsä Board’s paperboard business profitability(EBIT-%) and its’ peers

Strategic cornerstones andfinancial targets

Values

• Responsible profitability• Reliability• Cooperation• Renewal

Strategic cornerstones

• Focus• Growth• Profitability

1-9/201613

Metsä Board’s vision is to be the preferred supplierof premium paperboards creating value forcustomers globally

Focus on premium fresh fibre paperboards forconsumer and retail packaging

This means to us:• We focus on serving customers whose quality

expectations require our high quality, light and strongpackaging materials

• Our paperboards are produced from fresh fibres• Our products are used for packages at the store and

from the store to the consumer

1-9/201614

Focus

Profitability is based on superior cost efficiency andhealthy sales prices driven by high-quality pulps andunique technical know-how

This means to us:• Our superior cost efficiency will be achieved by further

developing productivity and efficiency of our mills,operations and people

• We will continue to drive down purchasing costs in allareas

• Our self-sufficiency in high-quality pulps together withunique paperboard making expertise helps us to improveour market position further and maintain healthy pricelevels

1-9/201615

Profitability

Grow profitably together with brand owner, converterand merchant customers globally in businesses thatbenefit from our safe and sustainable paperboards

This means to us:• We grow in end-uses where our product is best suited to

protecting our customers’ products and promoting theirbrands and businesses

• Our customer base is global, including brand owner,private label, converter and merchant customers

• By selecting businesses that benefit from our paperboardswe can generate value for our customers and growprofitably with them

1-9/201616

Growth

Financial targets

Comparable ROCE, %

1-9/201617

Net gearing, %

3,4

4,8

6,4

9,1

11,3

2011 2012 2013 2014 2015

106

72 70

51

32

2011 2012 2013 2014 2015

• Return on capital employed (ROCE) a minimum of 12% from 2017 onwards• Net gearing maximum 70%

• Metsä Board’s dividend payout target is at least 1/3 of EPS• Average pay-out ratio during 2012–2015 has been 40%

1-9/201618

Dividend

0,060,09

0,12

0,17

00,020,040,060,080,1

0,120,140,160,180,2

2012 2013 2014 2015

1-9/201619

Targeted average annual growth rate exceedsclearly the market growth rate 3-5% p.a.

0

250

500

750

1 000

1 250

1 500

1 750

2 000

2011 2012 2013 2014 2015 2018 targetFresh fibre linerboard Folding boxboard

1,000 tonnes Paperboard deliveries

1-9/201620

Most important growth area is Americas

0

50

100

150

200

250

300

2011 2012 2013 2014 2015 2018 target

Folding boxboard Fresh fibre linerboard

300

250

1,00

0to

nnes

Actual and targeted deliveries to Americas

• Grow the paperboard businesses profitably globally

• Ensure successful sales of new capacity

• Secure good price levels

• Keep best in class product quality and improve supply

chain

• Develop new products for existing and new end uses

• Continue productivity improvements and cost savings

1-9/201621

Main priorities and actions toachieve financial targets

Operating environmentand market position

Demand is based on global trends

Globalisation Technology Sustainability Consumption

• Increasing role of retailand harmonisation ofglobal brands

• Growing importance oflogistics

• Consolidation of cartonconverters

• New innovationsutilising wood fibre andother biomaterials

• Continuousdevelopment ofproductiontechnologies

• Digitisation andautomatisation changebusiness dynamics

• Greater significance ofresource efficiencydrives circulareconomy and life-cyclethinking

• Increasing regulationbrings additionalobligations

• Social responsibilitythrough value chain

• Growing consumptionand consumers’increasing qualityneeds globally

• Stronger demand forsustainable packaging

• Digital services changepurchasing behavior

The global fresh fibre paperboardpackaging market is about USD 110 billion

The total packaging market is USD 800 billion

1-9/201624

Estimated average annual growth rateof fresh fibre paperboard is 3–4%

Fresh fibre paperboardOther wood fibre based materials

Non-fibre based materials0

20

40

60

80

100

120

140

2013 2014 2015 2018E

USD bn

Source: Metsä Board estimates

1-9/201625

Global folding boxboard market is about 9 Mt/aTotal cartonboard market is about 36 Mt/a*

Source: Metsä Board estimates

*) Excluding liquid packaging board, cup & plate stock, linerand uncoated recycled board.

APAC20 Mt/a

EMEA8 Mt/a

NorthAmerica

6 Mt/a

Lat. Am.2 Mt/a

Folding boxboard

Other fresh fibre grades

Recycled grades

Avg. growth rate forpremium cartonboards is

3–4%/a

1-9/201626

Global food service board market is 3.5 Mt/a*

Source: Metsä Board estimates*) Base board only, excl. other laminate materialssuch as aluminium and PE.

Cups

Plates

Cartons

Avg. growth rate for foodservice board is

3–5%/a

APAC1.0 Mt/a

EMEA0.9 Mt/a

Americas1.6 Mt/a

500

600

700

800

900

1000

1100

2009 2010 2011 2012 2013 2014 2015 2016

Taivekartonki Valkopintainen kraftlaineri

Market price development in folding boxboardand white-top kraftliner in Europe

Sources: Pöyry Management Consulting ja FOEX Indexes Ltd

EUR/ tn

Folding boxboard White-top kraftliner

27 1-9/2016

Pulp price development (PIX)

350

400450

500

550

600650

700

750

800850

900

950

10001050

'10 '11 '12 '13 '14 '15 '16350

400450

500

550

600650

700

750

800850

900

950

10001050

Source: Foex Indexes Ltd

Softwood, USD

Softwood, EUR

Hardwood, EUR

Hardwood, USD

USDEUR

28 1-9/2016

Metsä Board has a strong position in Europe

Largest Folding BoxboardProducers in EuropeTotal capacity: 3.7M tons

1-9/201629

Largest White Fresh Fibre LinerboardProducers in EuropeTotal capacity: 2.2M tons

Sources: Company information, Pöyry Management Consulting Oy

16%

7%

9%

11%

21%

36%

0 300 600 900 1200 1500

Others

International Paper

Mayr-Melnhof

Kotkamills

Stora Enso

Metsä Board

15%

7%

10%

13%

22%

32%

0 200 400 600 800

Others

SCA

BillerudKorsnäs

Mondi

Smurfit Kappa

Metsä Board

Production capacities in tons Production capacities in tons

• Target is to grow steadily above the market growthlevel

• The biggest growth drivers are– strong and long-term customer relationships– innovative high-performance product portfolio to replace

other packaging materials– best-in class customer service concept

• In Europe, Metsä Board’s paperboard sales volumegrew 12% in 2015 compared to 2014

1-9/201630

Metsä Board is the marketleader in folding boxboard and whitefresh fibre linerboard in Europe

Metsä Board uses only freshfibres from sustainablymanaged northern forests

• Americas is Metsä Board’s main growth market• The biggest growth drivers are

– Limited local supply in high-quality paperboards– Due to strong consolidation, converters without own

paperboard production are looking for alternatives• In folding cartons their share is 40–50%

– Strong demand in food service board– Growing environmental awareness

• In Americas, Metsä Board’s paperboard sales volumegrew 16% in 2015 compared to 2014

1-9/201631

Metsä Board has a significantfoothold in North America

Paperboard offers asustainable optionfor plastics such asstyrofoam in food serviceapplications.

• Metsä Board is the paperboard quality benchmark inAsia

• Responsible consumer goods companies promotegood packaging– Sustainability– Traceable raw materials– Product safety

• Due to the local overcapacity in Asia, the timing is notgood for aggressive growth

1-9/201632

Focus on the high-qualitysegment in APAC

Global consumer goodscompanies not willingto change paperboardsuppliers easily in thehigh-quality segments

Q3/2016 resultsand outlook

1-9/201634

Performance in Q3/2016

• Healthy market situation in fresh fibrepaperboards

• Growing delivery and production volumes• Fine paper production ended in July and

wallpaper base production in September• Solid performance in Finnish mills, Husum

impacted profitability negatively• Cash flow from operations was clearly

positive

1-9/201635

Key financials

Q3/16 Q2/16ChangeQ3/16

vs. Q2/161-9/16 1-9/15

Change1-9/16

vs. 1-9/15

Sales € million 440 423 4% 1,299 1,545 -16%

EBITDA, comparable € million 59 61 -3% 178 224 -20%

% of sales % 13,5 14,4 13,7 14,5

Operating result, comparable € million 34 36 -6% 105 145 -28%

% of sales % 7,7 8,5 8,1 9,4

Result before taxes, comparable € million 27 27 84 120 -30%

Earnings per share € 0.07 0.07 0,21 0,27 -22%

ROCE, comparable % 8.0 8.5 8,3 12,1

Gross investments € million 16 48 -67% 119 117 2%

Cash flow from operations € million 67 -22 23 181 -87%

Paperboard deliveries grew due to the healthy demand

CAGR% in deliveries in 2011–2015 has been 9% / year

197 210 203 204 213 224 224 227 250 266

110120 111 130 141 137 131 142

148 148

0

60

120

180

240

300

360

420

Q2/14 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

Folding boxboard Fresh fibre linerboard

1,00

0to

nnes

Note! Figures do not include wallpaper deliveries

Change in paperboarddeliveries:

+4% Q3/16 vs.Q2/16

+15% Q3/16 vs.Q3/15

36 1-9/2016

Sales increased, EBIT still impacted by Husum

Sales,EUR million

1-9/201637

Comparable EBIT,EUR million

514 499 526 522 498 462 436 423 4400

100

200

300

400

500

600

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

35 37 43 47 55 35 35 36 340

10

20

30

40

50

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16____________

Q1-Q3/2015:1,545 M€

____________

Q1-Q3/2016:1,299 M€

____________

Q1-Q3/2015:145 M€

____________

Q1-Q3/2016:105 M€

Profitability development

Comparable ROCE, % Comparable operating profit of sales, %

6,4

9,1

11,3

13,0

8,3 8,5 8,0

0

2

4

6

8

10

12

14

2013 2014 2015 Q3/15 Q1/16 Q2/16 Q3/16

5,2

6,8

9,0

11,0

8,08,5

7,7

0

2

4

6

8

10

12

2013 2014 2015 Q3/15 Q1/16 Q2/16 Q3/16

Target over 12% from 2017

38 1-9/2016

Decrease in working capital and smaller investmentsturned the cash flows clearly positive

51 74 33 56 93 66

-22 -22

6746 56 9 8 45 8

-76-50

49

157

198

250

214

256 247

193

11589

110

155188

119 11870

-15

-73 -69-100

-50

0

50

100

150

200

250

300

Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q3/16

Cash flow from operations, quarterly Free cash flow, quarterlyCash flow from operations, rolling 12 months Free cash flow, rolling 12 months

EUR million

39 1-9/2016

• Positive market situation in fresh fibre paperboard– Stable or increasing market prices

• Metsä Board’s paperboard delivery volumes expectedto remain stable

• Healthy price level in the order intake of Husum’s newFBB, but long lead time postpones the profit impact

• Extended annual maintenance shutdown in Husum inQ4 increases costs

• Revised estimate for total investments in 2016 is€165 million

Near-term outlook

40 1-9/2016

Metsä Board’s comparableoperating result in the fourthquarter of 2016 is expected toremain roughly on the same levelas in the third quarter of 2016.

Profit guidancefor Q4/2016

41 1-9/2016

Balance sheet and funding

1-9/201643

Strong balance sheet

Equity ratio, %

33%

41% 39%

47% 48%

0%

10%

20%

30%

40%

50%

2012 2013 2014 2015 9/16

73% 70%

51%

32%

49%

0%

10%

20%

30%

40%

50%

60%

70%

80%

2012 2013 2014 2015 9/16

Net gearing, %

625 597 427 333 488

3,4

2,9

1,81,2

2,1

0

1

2

3

4

0

200

400

600

2012 2013 2014 2015 9/16

Net debt, EUR millionNet debt/EBITDA (rolling 12m)

Net debt, EUR million andNet debt/EBITDA

Debt structure and liquidity30 September 2016

222

199

144

20

108Bonds

Loans fromfinancial institutions

Pension loans

Finance leases andother loans

Other short-termloans

202

100

65Cash and cashequivalentsRevolving creditfacility

Unraised pensionloans

Debt structure,total EUR 693 million

Available liquidity,total EUR 367 million

Average maturity of long-term loans at 30 September in 2016 was 2.4 years.44 1-9/2016

1-9/201645

Debt programmes 30 September 2016Long-term borrowings Total amount, EUR million Outstanding, EUR million Average interest rate*, % Maturity

EUR 225 million bond Issue 2014 225 225 4.5 2019

Syndicated credit facility 2014 250 150 2.9 2020

EUR 101 million bilateral loans 101 101 1.7 2016–2020

EUR 20 million finance leases 20 20 1.9 2016–2022

EUR 209 million pension loans 209 144 4.5 2016–2020

Long-term borrowings Total amount, EUR million Outstanding, EUR million Average interest rate*, % Maturity

Revolving credit facility 2014 100 0 - 2020

Pension loan facilities 209 144 4.5 -

Short-term funding programmes

Metsä Group internal short-term limit 150 0 - 0–12 months

Metsä Group Treasury funding programmes

EUR 150 million domestic CP programme 150 0 - 0–12 months

Metsä Board’s significant debt securities issued and outstanding at 30 September 2016

* The average interest rate take into account outstanding interest rate swaps and amortised arrangement feesThe average interest rate of all Metsä Board interest bearing net liabilities incl. interest rate derivatives per 30 September 2016 is 3.3 %

Metsä Board’s principal long-term liquidity reserves at 30 September 2016

1-9/201646

Maturity schedule in long-term IB debt

17

155

34

256

173

100

65

0

50

100

150

200

250

300

2016 2017 2018 2019 2020 2021 >2021

Long-term interest bearing debt (total EUR 488 million) andcommitted undrawn credit facilities 30 September 2016

Long-term interest bearing liabilities Committed undrawn credit facilities

EUR million

1-9/201647

Steadily decreasing net financial costs

47 56 39 32 21

5,2

4,6

4,2

3,8

3,3

3,0

3,5

4,0

4,5

5,0

5,5

0

20

40

60

2012 2013 2014 2015 Q1-3/16

Net financial costs, EUR million

Average interest rate at the end of period, %

EUR million %

• Net financials in Q3 were -7 M€(Q2/16: EUR -9 M€)

• Net exchange gains and lossesamounted to -1 M€ (-2M€)

• Total FX impact in Q3 2016 vs. Q2 2016 was slightly positive

• Hedging duration of the main foreign currency flows is currently 5-6 months

48

FX exposure and sensitivities

58 %32 %

6 %4 % USD

SEK

GBP

Othercurrencies

FX exposure by currencyAnnual gross amount EUR 1.1 billion

Annual FX sensitivitiesto Group EBIT before hedges

10 % strengthening of foreign currency vs. EURwill have an impact on Metsä Board’s EBIT of

Currency Next 12 months

USD, $ EUR +60 million

GBP, £ EUR +5 million

Swedish krona EUR -30 million

1-9/2016

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Q1/2016

49

Metsä Board 's credit rating

Moody’sStandard & Poor’s

BB+ | Ba1

Stable

Positive

BB | Ba2

BB- | Ba3

B+ | B1

B | B2

B- | B3

CCC+ | Caa1

CCC | Caa2

1-9/2016

Investments

• Estimated total capex in 2016 was revisedfrom €135 to €165 million due to a costoverrun in Husum investment programmeand changes in capex allocations betweenyears of the extrusion coating line

• In Jan–Sep 2016 total capex was €119million

• Main growth capexes in 2016 includeHusum investment programme, extrusioncoating line and equity investment in MetsäFibre’s bioproduct mill

Estimated total capex in 2016 has been revisedto €165 million

0

30

60

90

120

150

180

2010 2011 2012 2013 2014 2015 2016E

Capex Growth capex Depreciation

€ million

51 1-9/2016

1-9/201652

Husum investment programme

Folding boxboard production

• Capacity approximately 400,000 t/a• Deliveries mainly to Americas and

Food service globally

Linerboard production

• Capacity approximately 300,000 t/a• Deliveries to Europe and Americas

Capacity changes 2014 vs. 2016:

• Paperboard capacity +700,000 tn/a

• Paper capacity -600,000 tn/a

• Launched at the end of 2014• Two paper machines were shut down in 2015• One paper machine converted to produce linerboard (BM2)• New folding boxboard machine (BM1), start-up on February 2016• Enhancements to the pulp mill and the mill site’s own port

• Delays in customer approvals in Q3 due to the– Bottlenecks in the finishing area (Q2/2016)– Leak in the pulp mill’s recovery boiler (Jun-Jul/2016)

• Efficiency improvement programme is progressing asplanned

• Investment programme targets– Full capacity of FBB machine is reached by end of 2016– Annual EBIT improvement of €50 million from 2018 onwards

• Healthy price level in order intake, but long lead time willpostpone positive profit impact

1-9/201653

Update on the ramp-up phase of foldingboxboard machine in Husum after Q3 2016

0

200

400

600

800

1000

1200

1400

Production (packed net) 7 days rolling average Monthly/Quarterly average

Steadily increasing production volumes

Q1/2016Q2/2016

Q3/2016

July August September

Daily production volumes in Husum’s new FBB machine, tonnes

tonn

es

54 1-9/2016

1-9/201655

Ambitious growth targets for new paperboardvolume from Husum mill

250150

150

0

500

1 000

1 500

2 000

Deliveries in 2015 Folding boxboard toAmericas

Food service boardglobally

Linerboard toEurope andAmericas

Targeted deliveriesin 2018

A total of 400,000 tonnesof new FBB capacity

1,00

0to

nnes

Incremental capacityin linerboard*)

*) until July 2016 the paperboard machine (BM2) produced simoultenously fine paper reels.

• Net capacity increase at the site is approximately 800,000 t/a– Investment cost of approximately EUR 1.2 billion– Start up in Q3 2017

• Capital invested by Metsä Board will be EUR 24,9 million– Metsä Board has no other financial commitments in the project

• Metsä Board’s holding in Metsä Fibre remains unchanged at24.9 per cent

• All in all, Metsä Board’s pulp balance is expected to be500,000–600,000 t/a long from 2018 onwards

– Majority of the market pulp is softwood chemical pulp– Reserve to grow paperboard business further in the future while

maintaining self-sufficiency in pulp

1-9/201656

Metsä Board’s associated companyMetsä Fibre builds a bioproduct mill

Food service packaging requires barrier featurese.g. moisture and fat resistance

• Investment value EUR 38 million• Will be implemented at Husum mill• Start-up in H1/2017 with capacity of 100,000 t/a• In 2015–2016 Metsä Board’s paperboards are coated by

external converter• The company continues to develop other barrier solutions

1-9/201657

Metsä Board expands its offering infood and food service paperboardsby investing in extrusion coating

Production, capacities andsourcing

Paperboard mills• Husum (FBB and linerboard)• Kemi (linerboard)• Kyro (FBB)• Tako (FBB)• Simpele (FBB)• Äänekoski (FBB)

Pulp mills• Husum (chemical pulp)• Joutseno (BCTMP)• Kaskinen (BCTMP)

1-9/201659

Production locations

Äänekoski

Simpele

Joutseno

Tako

Kyro

KaskinenHusum

Kemi

1-9/201660

Paperboard capacity

Town Country Machines Foldingboxboard

White freshfibre

linerboard

WallpaperBase* Total

Tampere (Tako) Finland 2 210 210

Kyröskoski (Kyro) Finland 2 190 100 290

Äänekoski Finland 1 240 240

Simpele Finland 1 280 280

Kemi Finland 1 410 410

Husum Sweden 2 400 300 700

Total 9 1,320 710 100 2,130

*) Production ended in September 2016

1-9/201661

Pulp capacityMetsä Board pulp mills Country Chemical pulp BCTMP Total

Husum Sweden 750 750

Joutseno Finland 320 320

Kaskinen Finland 320 320

Total 750 640 1,390

Metsä Fibre pulp mills Country Chemical pulp BCTMP Total

Äänekoski Finland 530 530

Kemi Finland 590 590

Rauma Finland 650 650

Joutseno Finland 690 690

Total 2,460 2,460

Deliveries by region in 2015

Folding Boxboard

1-9/201662

Fresh fibre linerboard

50%

26%

14%

11%

Western Europe

Eastern Europe

Americas

Asia and Pacific

61%

6%

32%

1%

• The amount of certified wood was75%

• A new supply chain managementtarget was launched: to audit 100% ofrisk rated key material suppliersagainst sustainability criteria by end2015

89% of all Metsä Board purchases,excluding wood, come from countrieswhere we have own production

Raw materials and supply chain management 2015

1-9/201663

Metsä Board purchases by country, %(excl. wood supply)

68

17

74 3 1

FinlandSwedenOther EUGermanyOutside EuropeOther

Owngeneration

20,90%

Through PVOshareholding

29,60%

Purchasedenergy49,50%

Wood-based58%

Nuclearpower22%

Naturalgas8%

Hydro5%

Coal4%

Oil2%

Other1%

Sweden39%

Finland25%

Baltic countries20%

Russia15%

Sourcing 2015Electricity sourcing

(total 2,533 GWh)

1-9/201664

Primary energy used(total 12.3 TWh)

Wood sourcing by country(total 5.0 million cubic metres)

1-9/201665

Cost structure in 2015Delivery costs

16%

Wood26%

Chemicals, pigmentsand fillers

14%

Energy10%

Other variables4%

Personnel14%

Other fixed16%

Fixedcosts

Variablecosts

Sustainability

SUPPLY CHAINRISK-RATEDKEY MATERIAL SUPPLIERSAUDITED

100%SAFETYLOST-TIME ACCIDENTSANNUALLYPERFORMANCE 2015 11,1

0ENERGYENERGY EFFICIENCYIMPROVEMENT10PERFORMANCE 2015 10%

12% *) -17%

RESOURCE EFFICIENCYPROCESS WATER USE PERPRODUCT TONNE

PERFORMANCE 2015 - 16%

*) Target has been brought up from 10% to 12%

1-9/201667

Metsä Board’s sustainability targets (2020 vs. 2009)

> 80%

WOODTHE AMOUNT OFCERTIFIED WOODPERFORMANCE 2015 75%

-30%

CLIMATEFOSSIL CO2 EMISSIONSPER PRODUCT TONNEPERFORMANCE 2015 -42%

<3%

WELL-BEINGSICKNESS ABSENTEEISMPERFORMANCE 2015 4,1%

BIOENERGY SHARE OF TOTALPURCHASED ENERGY 81%

1-9/201668

Many advantages of lightweight and safe cartonboardFresh forest fibre is a pureand safe raw material.

Lightweight boards useless raw material, waterand energy and lowertransported weights.

Consistent qualityenables trouble-freerunnability in convertingand packing lines.

Strong packaging stays in shape in logistics.

High quality packagingattracts at the point-of-sale.

Lightweight boards generate lesswaste. They are recyclable andcompostable.

Ensured consumer safety.

69

Metsä Board is a world leaderfor corporate action on climatechange

• Metsä Board was awarded a position onthe Climate A List by CDP

• Only 9% of corporations participating to beawarded on the list

• In 2015 a position on the Water A List and aleadership status in Forest programme

• Investments in bioenergy, as well as energy andmaterial efficiency

• Fossil CO2 emissions have decreased by 42%since 2009

• More than 80% of the fuels used are bio-based.1-9/2016

Owners

Market cap and foreign owners30 September 2016

Ownership distribution30 September 2016

Market cap and ownership distribution

0

4

8

12

16

20

24

0

500

1 000

1 500

2 000

2 500

2012 2013 2014 2015 9/2016

Market cap, EUR million

Share of foreign owners, %

42 %

25 %

18 %

15 % MetsäliittoCooperative

Domestic institutionalinvestors

Domestic privateinvestors

Foreign owners

EUR million

*) Metsäliitto Cooperative has 62% of the voting rights

*)

71

%

1-9/2016

1-9/201672

Ownership structure on 30 September 2016

42 %

15 %

18 %

12 %

7 %

3 % 3 %MetsäliittoCooperative

Foreign owners*

Households

Public sectororganisations

Finance andinsurancecompaniesNon-profitorganisations

Other companies

62 %15 %

11 %

5 %

4 % 2 %1 % Metsäliitto

Cooperative

Public sectororganisations

Households

Foreign owners*

Non-profitorganisations

Finance andinsurance companies

Other companies

Shares, %(total no. of shares 355,512,746)

Votes, %(total no. of votes 1,037,530,115)

* incl. nominee registeredSource: Euroland

Appendix

METSÄ BOARD

Paperboard

Sales:EUR 2.0 billionPersonnel:2,600-METSÄLIITTO COOPERATIVE’SOWNERSHIP 42,53%(HOLDING OF VOTES 62,15%)

METSÄ WOOD

Wood products

Sales:EUR 0.9 billionPersonnel:2,000

METSÄLIITTO COOPERATIVE’SOWNERSHIP 100%

METSÄ FOREST

Wood supply andforest services

Sales:EUR 1.5 billionPersonnel:900

METSÄLIITTO COOPERATIVE’SOWNERSHIP 100%

METSÄ TISSUE

Tissue andcooking papers

Sales:EUR 1.0 billionPersonnel:2,800

METSÄLIITTO COOPERATIVE’SOWNERSHIP 91%

METSÄ GROUP | Sales EUR 5.0 billion | Personnel 9,600

METSÄLIITTO COOPERATIVE | Group’s parent company | Owned by 116,000 Finnish forest owners

METSÄ FIBRE

Pulp

Sales:EUR 1.4 billionPersonnel:850METSÄLIITTO COOPERATIVE’SOWNERSHIP 50,2%METSÄ BOARD 24,9%ITOCHU CORP. 24,9%

1-9/201674

Metsä Board is part of Metsä Group & listed in Nasdaq Helsinki

2005 Structural change startsPaper businesses over 80% of salesDecision to exit paper business

2006 Strategic review launchedRestructuring and focused investment programme initiated,focus on paperboard

2007–2013 Streamlining and focused investmentsPaper capacity reduction from about 5 million to 0.8 million annual tonnesMajor divestments incl. Graphic Papers and Map MerchantsPaperboard capacity increases

2013 Strategic review completedClear focus on paperboardPaper production about a quarter of sales

2015 Strong position and growingEurope’s leading producer of folding boxboardThe world’s leading manufacturer of coated white-top kraftliners

2016 Final exits from non-core businessesFine paper production ended at Husum mill and wallpaper base production at Kyro millPaperboard capacity 2 million t/a

1-9/201675

True success story

1-9/201676

5241 5624 4440 3236 2432 2605 2485 2108 2019 2008 2008

0,1 0,8 1,1 -1,1

-6,2

6,6

2,43,6

5,26,8

9,0

-10,0

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

6,0

8,0

10,0

-6000

-4000

-2000

0

2000

4000

6000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Sales, million EUR EBIT-%

%

Sales and EBIT-% development

1-9/201677

M&A activity 1997-2015

100 000 B2shares in

PVO

Acquisitions

Divestments

Biberist Paper Mill

UK Paper

Modo Paper

Zanders

ChemicalsBusiness

BotniaWood

CorrugatedPackaging

MD Papier MetsäTissue

Albbruck SavonSellu

Forestia

KemiartLiners (53 %)

8% inBotnia

PSM

9% inBotnia

Cartonplants

Map

NewThames

MBUruguay

GraphicPapers

Part ofReflex

Halleinmill

1997 20001998 1999 2001 2002 2003 2004 2005 2006 2007 20092008 2010 2011

Rest ofReflex

0.5% inPVO

2012

7.3 % in Metsä Fibre

2013 2014

Alizaymill Lielahti

real estate

2015

Gohrsmühlemill

Simpele Mill

Year Divestiture Enterprise Value, EUR million

2015 Gohrsmühle mill in Germany neg.

2014 Lielahti real-estate 32

2013 Alizay property and other estates 22

2012 7.3% stake in Metsä Fibre 138

2012 0.5% stake in PVO 64

2011 Hallein 34

2009 Metsä-Botnia’s Uruguayan operations 300*

2008 Graphic Papers 750

2008 100,000 shares in PVO 80

2008 New Thames mill 82**

2007 Map Merchant Group 382

2007 Folding carton plants 60

2007 Botnia (9%) 240

2005 Botnia (8%) 164

2005 Savon Sellu 20

2005 Forestia (95%) 163

2004 Metsä Tissue 570

2002 Papierfabrik Albbruck 235

2001 MD Papier 300

2001 Noviant (19%) 41

3,679

1-9/201678

Significant DivestmentsEUR 3.7 billion in assets divested since 2001

* Cash portion**Incl. pension liabilities

Katri SundströmVice President, Investor relations

Tel +358 400 976 333katri.sundstrom@metsagroup.comwww.metsaboard.com

1-9/201679

Contact information