M-real Corporation Stock Exchange Release, 4 February 2010 at 12
M-real's operating result excluding non-recurring items for 2009 EUR -150
million, final quarter positive
Full year result for 2009
· Sales EUR 2,432 million (2008: 3,236)
· Operating result excluding non-recurring items EUR -150 million (-35).
Operating result including non-recurring items EUR -267 million (-61).
· Result before taxes excluding non-recurring items EUR -230 million
(-178). Result before taxes including non-recurring items EUR -358 million
(-204).
· Earnings per share from continuing operations excluding non-recurring
items EUR -0.66 (-0.48), and including non-recurring items EUR -1.02 (-0.55)
Result for October-December
· Sales EUR 606 million (Q3/2009: 618)
· Operating result excluding non-recurring items EUR 7 million (-22).
Operating result including non-recurring items EUR -52 million (-24).
· Result before taxes excluding non-recurring items EUR -15 million
(-70). Result before taxes including non-recurring items EUR -74 million (-72).
· Earnings per share from continuing operations excluding non-recurring
items EUR -0.02 (-0.22), and including non-recurring items EUR -0.19 (-0.22)
Events during the fourth quarter
· The transaction regarding the new ownership structure of Metsä-Botnia
and the divestment of operations in Uruguay was closed.
· A new EUR 80 million profit improvement programme was launched,
including plans to close down the Alizay pulp mill and two speciality paper
machines at the Reflex mill.
· A decision was made on an energy efficiency investment totalling EUR
22 million at Husum.
· A new three-year IT service contract was signed with Tieto.
· M-real announced that it will redeem prematurely a EUR 250 million lot
of its bond maturing in 2010.
· Based on the annual impairment testing, impairment losses of EUR 113
million were booked in the result for the fourth quarter.
"M-real reached a positive operating result excluding non-recurring items during
the final quarter of the year. The internal profit improvement measures and the
gradual recovery of the market situation support the continuation of our
positive profit development. The divestment of Metsä-Botnia's operations in
Uruguay significantly improved our balance sheet structure and financial
position. M-real's structural change to become more clearly a packaging material
producer has proceeded as planned."
Mikko Helander, CEO, M-real Corporation
KEY FIGURES 2009 2008 2009 2009 2009 2009 2008
Q1-Q4 Q1-Q4 Q4 Q3 Q2 Q1 Q4
--------------------------------------------------------------------------------
Sales, EUR million 2,432 3,236 606 618 585 623 722
--------------------------------------------------------------------------------
EBITDA, EUR million 88 254 132 27 -23 -48 -18
excl. non-recurring items, EUR
million 44 192 51 26 -20 -13 4
--------------------------------------------------------------------------------
Operating result, EUR million -267 -61 -52 -24 -73 -118 -161
excl. non-recurring items, EUR
million -150 -35 7 -22 -70 -65 -51
--------------------------------------------------------------------------------
Result before taxes
from continuing operations, EUR
million -358 -204 -74 -72 -97 -115 -197
excl. non-recurring items, EUR
million -230 -178 -15 -70 -83 -62 -87
--------------------------------------------------------------------------------
Result for the period
from continuing operations, EUR
million -331 -170 -60 -73 -93 -105 -163
from discontinued operations, EUR
million -23 -338 -8 -3 -2 -10 -62
-------------------------------------------
Total, EUR million -354 -508 -68 -76 -95 -115 -225
--------------------------------------------------------------------------------
Result per share
from continuing operations, EUR -1.02 -0.55 -0.19 -0.22 -0.29 -0.32 -0.50
from discontinued operations, EUR -0.07 -1.03 -0.02 -0.01 -0.01 -0.03 -0.19
-------------------------------------------
Total, EUR -1.09 -1.58 -0.21 -0.23 -0.30 -0.35 -0.69
--------------------------------------------------------------------------------
Result per share
excl. non-recurring items, EUR -0.66 -0.48 -0.02 -0.22 -0.24 -0.18 -0.17
--------------------------------------------------------------------------------
Return on equity, % -28.6 -10.4 -24.3 -27.2 -32.1 -32.0 -43.3
excl. non-recurring items, % -18.3 -9.0 -1.4 -26.6 -27.2 -17.6 -14.5
--------------------------------------------------------------------------------
Return on capital employed, % -8.9 -1.3 -8.7 -2.3 -10.2 -13.4 -19.7
excl. non-recurring items, % -4.5 -0.5 0.4 -2.0 -8.3 -7.0 -6.2
--------------------------------------------------------------------------------
Equity ratio at end of period, % 29.6 30.8 29.6 28.5 29.4 30.3 30.8
Gearing ratio at end of period, % 153 152 153 170 168 151 152
Net gearing ratio at end of period,
% 84 90 84 121 116 101 90
Interest-bearing net liabilities,
EUR million 777 1,254 777 1,262 1,276 1,243 1,254
Gross investments, EUR million 73 128 18 23 16 16 39
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paper businesses 1,132 1,761 266 275 269 321 393
Consumer Packaging 1,212 1,345 327 315 296 274 304
--------------------------------------------------------------------------------
Personnel at the end of period
in continuing operations 4,903 6,546 4,903 5,649 6,080 6,314 6,546
Divident proposed
by the Board of Directors 0.00 0.00
EBITDA = Earnings before interest, taxes, depreciation and impairment charges
The consolidation method of the Metsä-Botnia shareholding was changed to the
associated company method in accordance with IAS 28 on 8 December 2009.
Result for 2009 compared to 2008
M-real's sales totalled EUR 2,432 million (3,236). Comparable sales were up 2.8
per cent. The operating result was EUR -267 million (-61), and the operating
result excluding non-recurring items was EUR -150 million (-35).
The non-recurring items recognised in the operating result amounted to EUR -117
million net, the most significant being:
· EUR 134 million profit related to the Metsä-Botnia arrangement, of
which EUR 18 million is allocated to Market Pulp and Energy and EUR 116 million
to Other operations.
· An impairment loss of EUR 113 million according to IAS 36, of which
EUR 66 million is allocated to Speciality Papers and EUR 47 million to Office
Papers. Of this, EUR 33 million was recognised in goodwill.
· EUR 48 million write-downs and cost provisions in the Market Pulp and
Energy business area connected to the plan to permanently close down the Alizay
pulp mill.
· EUR 28 million cost provisions and write-downs in the Speciality
Papers business area connected to the closure of the Hallein paper mill.
· EUR 22 million cost provisions and write-downs associated with the
closure of the Metsä-Botnia Kaskinen mill. This total consists of EUR 16 million
related to the Consumer Packaging business area and EUR 6 million to the Market
Pulp and Energy business area.
· EUR 12 million cost provision in Other operations associated with the
terminated IT contract.
· EUR 11 million cost provision related to profit improvement measures
of the Husum mill, of which EUR 9 million in the Office Papers business area and
EUR 2 million in the Market Pulp and Energy business area.
· EUR 5 million cost provision associated with the profit improvement
programme of the Speciality Papers business area.
· EUR 12 million net in other non-recurring items, of which EUR 2
million in Consumer Packaging and EUR 1 million in Speciality Papers and EUR 9
million in Other operations.
The non-recurring items recognised in the operating result for 2008 amounted to
EUR -26 million net, the most significant being:
· EUR 86 million impairment charges under IAS 36, of which EUR 66
million were allocated to Other Papers, EUR 16 million to Office Papers and EUR
4 million to Consumer Packaging. Of these, EUR 20 million was recognised in
goodwill.
· EUR 74 million recognised as realised fair value and capital gains
from the sale of Pohjolan Voima shares in Market Pulp and Energy.
· EUR 23 million positive effect in the Speciality Papers business area
related to the sale of the New Thames mill and being freed from the pension
liabilities of industrial operations in the UK, as well as the removal of other
responsibilities related to the closure of the Sittingbourne mill.
· EUR 14 million cost provision for streamlining M-real's structure to
reflect the divestment of Graphics Papers business in Other operations.
· EUR 13 million cost for the Pont Sainte Maxence (PSM) mill divested in
June 2006 for a guarantee issued to the mill's energy supplier and for the
write-down of receivables from PSM in Other operations.
· EUR 10 million cost provision and write-down for the closure of New
Thames mill's cut-size operations in Office Papers.
Compared to the previous year, the operating result excluding non-recurring
items was weakened by the reduced delivery volumes caused by weakened demand and
lower average selling prices of office papers. The result was improved by the
implemented price increases, especially in board, and the implemented cost
savings.
The total delivery volume of paper businesses in 2009 was 1,132,000 tonnes
(1,761,000). The deliveries by Consumer Packaging totalled 1,212,000 tonnes
(1,345,000).
Financial income and expenses totalled EUR -75 million (-142). Foreign exchange
gains and losses from accounts receivable, accounts payable, financial income
and expenses and the valuation of currency hedging were EUR 5 million (13). Net
interest and other financial income and expenses amounted to EUR -80 million
(-155). Other financial income and expenses included EUR 10 million of valuation
gains on interest rate derivatives (valuation gain of 0). Additionally, the
financial income included a gain of approximately EUR 31 million related to
repurchases of the EUR 400 million bond maturing in December 2010 and financial
expenses included a loss of EUR 30 million related to early repayment of the
vendor note by Sappi.
In the review year, the result from continuing operations before taxes was EUR
-358 million (-204). The result from continuing operations before taxes,
excluding non-recurring items, was EUR -230 million (-178). Income taxes,
including the change in deferred tax liabilities, were EUR 27 million positive
(34).
Earnings per share were EUR -1.09 (-1.58). Earnings per share from continuing
operations excluding non-recurring items were EUR -0.66 (-0.48). Return on
equity was -28.6 per cent (-10.4), and -18.3 per cent (-9.0) excluding
non-recurring items. Return on capital employed was -8.9 per cent (-1.3);
excluding non-recurring items -4.5 per cent (-0.5).
Result for October-December compared with the previous quarter
M-real's sales totalled EUR 606 million (Q3/2009: 618). Comparable sales were
down 0.6 per cent. The operating result was EUR -52 million (-24), and the
operating result excluding non-recurring items was EUR 7 million (-22).
A net total of EUR -59 million was recognised as non-recurring items in the
operating result for October-December, the most significant of them being:
· EUR 134 million profit related to the Metsä-Botnia arrangement, of
which EUR 18 million is allocated to Market Pulp and Energy and EUR 116 million
to Other operations.
· An impairment loss of EUR 113 million according to IAS 36, of which
EUR 66 million is allocated to Speciality Papers and EUR 47 million to Office
Papers. Of these, a total of EUR 33 million was recognised in goodwill.
· EUR 48 million write-down and cost provisions in Market Pulp and
Energy for the plan to permanently close down the Alizay pulp mill.
· EUR 12 million cost provision in Other operations associated with the
terminated IT contract.
· EUR 8 million cost provision related to profit improvement measures of
the Husum mill, comprising EUR 7 million in Office Papers and EUR 1 million in
Market Pulp and Energy.
· EUR 5 million cost provision associated with the profit improvement
programme of the Speciality Papers business area
· EUR 7 million net in other non-recurring items, of which EUR 1 million
in Consumer Packaging and EUR 1 million in Speciality Papers and EUR 5 million
in Other operations.
The non-recurring items for the previous quarter totalled EUR -2 million net due
to the implemented profit improvement measures.
The operating result excluding non-recurring items compared with the previous
quarter was improved by increased average operating rates in spite of the
seasonally low delivery volumes in December, implemented cost savings and higher
pulp price.
The total delivery volume of the paper businesses in October-December was
266,000 tonnes (275,000). Consumer Packaging's deliveries amounted to 327,000
tonnes (315,000).
Financial income and expenses in the period totalled EUR -20 million (-47).
Foreign exchange gains and losses from accounts receivable, accounts payable,
financial income and expenses and the valuation of currency hedging were EUR 1
million (2). Net interest and other financial income and expenses stood at EUR
-21 million (-49). Other financial income and expenses include EUR 1 million of
valuation gains on interest rate derivatives (valuation gain of 0). A loss of
EUR -30 million was booked in the financial expenses due to the early repayment
of the vendor notes issued to Sappi in third quarter.
The result from continuing operations for the review period before taxes was EUR
-74 million (-72). The result from continuing operations before taxes, excluding
non-recurring items, was EUR -15 million (-70). Income taxes, including the
change in deferred tax liabilities, came to EUR 14 million (-1).
Earnings per share were EUR -0.21 (-0.23). Excluding non-recurring items,
earnings per share from continuing operations were EUR -0.02 (-0.22). Return on
equity was -24.3 per cent (-27.2); excluding non-recurring items -1.4% (-26.6).
Return on capital employed was -8.7 per cent (-2.3); excluding non-recurring
items, 0.4 per cent (-2.0).()
Personnel
The number of personnel was 4,903 on 31 December 2009 (31 December
2008: 6,546), of which 2,047 (2,258) worked in Finland. In 2009, M-real employed
an average of 5,913 people (2008: 9,087). The figure for the end of 2009 no
longer includes the share of Metsä-Botnia personnel due to the change in the
consolidation method (the figure for 2008 included 30 per cent of Metsä-Botnia
personnel, or 553 people).
Investments
Gross investments in 2009 totalled EUR 73 million (2008: 128), including a EUR
16 million share of Metsä-Botnia's investments (30). Metsä-Botnia's investment
share is based on M-real's 30 per cent share of ownership and the consolidation
method of Metsä-Botnia until 8 December 2009.
Structural change
In February 2009, M-real launched a new profit improvement programme with an
annual target of EUR 80 million. The improvement actions concerned the business
areas and streamlining the support functions to reflect the changed company
structure. The full annual effect of the programme will be visible from 2011.
A separate EUR 60 million programme to improve the 2009 cash flow was also
launched in February. The actions included, e.g., the reduction of net working
capital and cuts in investments.
Both programmes proceeded better than expected, and therefore the target of the
profit improvement programme was increased to EUR 90 million and the target of
the cash flow improvement programme to EUR 80 million in October 2009.
In 2008, M-real announced it was planning the discontinuation of standard coated
fine paper production at the Hallein and Gohrsmühle mills based on earlier
examined strategic options. Both mills had been loss-making for a long period of
time. At Hallein, paper production was discontinued at the end of April 2009. At
the Gohrsmühle mill, standard coated fine paper production was discontinued in
April. At Gohrsmühle, the production of speciality papers as well as uncoated
fine paper reels and folio sheets has been expanded.
The organisation of M-real was revised following the closure of the Hallein
paper mill and the discontinuation of standard coated fine paper production at
the Gohrsmühle mill. The Other Papers business area was renamed Speciality
Papers. The new structure took effect on 17 June 2009.
In October 2009, M-real's associated company Oy Metsä-Botnia Ab and its owners,
M-real Corporation, Metsäliitto Cooperative and UPM-Kymmene Oyj, signed an
agreement on the divestment of the pulp mill and forests located in Uruguay, to
UPM. The transaction was closed in December 2009, and as a result Metsä-Botnia
became Metsäliitto Cooperative's subsidiary. M-real changed the consolidation
method of Metsä-Botnia in its consolidated financial accounts and processes its
ownership in Metsä-Botnia as an associated company according to IAS 28 instead
of a joint venture (IAS 31). Previously, Metsä-Botnia had been consolidated line
by line based on the ownership. Starting from 8 December 2009, M-real will
disclose its share of the profits of Metsä-Botnia on the line Share of profits
of associated companies under operating result, and on the line Investments in
associates on the balance sheet. As a result of the transaction, M-real's net
debt decreased by approximately EUR 500 million compared to the end of the third
quarter of 2009 when taking into account the cash consideration of EUR 300
million, the market priced receivable of EUR 50 million from Metsäliitto and the
change in the consolidation method of Metsä-Botnia for M-real's consolidated
financial statements. M-real will use the funds to pay off its debts. The
transaction and the change in the consolidation method of Metsä-Botnia will
decrease M-real's annual sales by approximately EUR 250 million. As a result of
the transaction and the change in the consolidation method, M-real's
shareholders' equity increased by approximately EUR 58 million.
In December 2009, M-real announced that it will start a new profit improvement
programme for 2010, with the most significant actions being plans to permanently
shut down the Alizay pulp mill in France and two speciality paper machines at
Reflex, Germany, the plan to streamline the organisation and management model in
M-real Zanders, a EUR 22 million investment at the Husum mill to improve its
energy efficiency and a new EUR 20 million internal profit improvement programme
covering all of M-real's business areas. Once implemented, the planned measures
are expected to improve M-real's annual operating result by EUR 80 million with
full effect from 2011 onwards. The result improvement of the new planned
measures in 2010 is expected to be EUR 40 million. The combined profit impact of
the new planned measures and the previous years' profit improvement programmes
is expected to be approximately EUR 100 million positive in 2010.
M-real's structural change from a paper company to become more clearly a
packaging material producer has proceeded according to plans. The strategic
review of the paper business continues.
Management changes
Matti Mörsky started as M-real's CFO on 4 May 2009.
On 17 June 2009, Heikki Husso was appointed Head of the Speciality Papers
business area, and Soili Hietanen was appointed Head of the Market Pulp and
Energy business area. Hietanen is also responsible for contract manufacturing
between M-real and Sappi.
Mika Joukio, Head of the Consumer Packaging business area, was appointed as
Deputy to the CEO of M-real in addition to his current position as of 15
September 2009.
Financing
At the end of 2009, M-real's equity ratio was 29.6 per cent (31 December
2008: 30.8) and the gearing ratio 153 per cent (152). The net gearing ratio was
84 (90). Some of M-real's loan agreements set a 120 per cent limit on the
company's net gearing ratio and a 30 per cent limit on the equity ratio.
Calculated as defined in the loan agreements, the net gearing ratio at the end
of September was approximately 63 per cent (74) and the equity ratio some 35 per
cent (36).
The change in the fair value of investments available for sale was approximately
EUR -97 million in 2009 based mainly on the decrease in the value of the
Pohjolan Voima shares.
At the end of the year, net interest-bearing liabilities totalled EUR 777
million (1,254). Foreign-currency-denominated loans accounted for 8 per cent;
84 per cent were floating-rate and the rest were fixed-rate. At the end of
2009, the average interest rate on loans was 6.0 per cent and the average
maturity of long-term loans 2.4 years. The interest rate maturity of loans was
6.4 months at the end of the year. During the period, the interest rate maturity
has varied between 2 and 7 months.
Cash flow from operations amounted to EUR 110 million in 2009 (2008: 118).
Working capital was down by EUR 140 million (down 7).
At year-end, an average of 4.9 months of the net foreign currency exposure was
hedged. The degree of hedging varied between 3 and 5 months during the period.
Approximately 99 per cent of the non-euro-denominated equity was hedged at the
end of the review period.
Liquidity continues at a good level. At the end of the year, liquidity was EUR
776 million, of which EUR 279 million consisted of committed credit facilities
and EUR 497 million of liquid assets and investments. The amount of committed
credit facilities decreased after the EUR 500 million syndicated revolving
credit facility ended due to being cancelled by the company in October 2009. The
revolving credit facility would have been due in December 2009. In addition, the
Group had other interest-bearing receivables totalling EUR 137 million. To meet
its short-term financing needs, the Group also had at its disposal uncommitted
domestic and foreign commercial paper programmes and credit facilities amounting
to about EUR 530 million. In connection with the restructuring of Metsä-Botnia's
ownership and the divestment of the operations in Uruguay, M-real received a
cash payment of EUR 300 million in December. In addition, M-real sold a three
per cent share of Metsä-Botnia to Metsäliitto. Metsäliitto paid its share
purchase with a market priced vendor note of EUR 50 million, having a maturity
of 3 years.
In connection with the divestment of Graphic Papers in December 2008, M-real
received EUR 220 million in interest-bearing vendor notes from Sappi. In August,
M-real agreed with Sappi that Sappi will repay the vendor notes at the price of
86.5 per cent of their nominal value. The cash payment of EUR 190 million
received by M-real from Sappi in August strengthened the Group's liquidity. This
early repayment resulted in an approximately EUR 30 million loss that was booked
in M-real's financial expenses in the third quarter of 2009.
In the second quarter, M-real drew a EUR 60 million pension premium (TyEL) loan.
After this drawdown, M-real still has a total of about EUR 279 million of
undrawn pension premium (TyEL) loans.
In the first quarter, M-real repurchased its own bonds (EUR 400 million bond due
in December 2010) with a nominal value of EUR 59.95 million. A gain of
approximately EUR 31 million from the purchases was recorded in the first
quarter result. In December, M-real announced that it will exercise its right to
partial early redemption of the above-mentioned floating rate notes. The total
par value of redemption was EUR 250 million. The early redemption took place on
25 January 2010 and the redemption price was 100 per cent of the par value
according to the terms of the notes. After the redemption, the par value of all
outstanding notes is approximately EUR 90 million.
Shares
In 2009, the highest price for M-real's B share on the NASDAQ OMX Helsinki was
EUR 1.57, the lowest EUR 0.19, and the average price EUR 0.66. At the end of the
year, the price of the B share was EUR 1.53.
The trading volume of B shares was EUR 321 million, 171 per cent of the share
capital. The market value of the A and B shares totalled EUR 517 million at the
end of the year.
At the end of the year, Metsäliitto Cooperative owned 38.6 per cent of the
shares, and the voting rights conferred by these shares amounted to 60.5 per
cent. International investors' holdings increased to 19 per cent.
On 5 February 2009, Financier de l'Echiquier SA's holding in M-real decreased to
4.8 per cent of the share capital and 1.6 per cent of the voting rights.
The company does not hold any of its own shares.
Distributable funds and dividend
The distributable funds of the parent company as of 31 December 2009 were EUR
-342,787,654.55 of which the result for the financial year is EUR
-120,580,449.73. The company therefore has no distributable funds. In its
meeting on 4 February 2010, the Board of Directors decided to propose to the
Annual General Meeting in spring 2010, to be held on 24 March 2010, that no
dividend is paid for the financial year 2009.
Board of Directors and Auditors
The Annual General Meeting of March 2009 confirmed the number of members of the
M-real Board of Directors as nine (9). The Annual General Meeting elected as
members of the Board of Directors Martti Asunta, M. Sc. (Forestry); Kari Jordan,
President and CEO of Metsäliitto Group; Erkki Karmila, LL.M.; Kai Korhonen,
M.Sc. (Eng); Liisa Leino, M.Edu; Runar Lillandt, Counsellor of Agriculture; Juha
Niemelä, Honorary Counsellor; Antti Tanskanen, Minister and Erkki Varis, M.Sc.
(Eng). The term of office of the Board members expires at the end of the next
Annual General Meeting.
At its organising meeting, the Board of Directors elected Kari Jordan as its
Chairman and Martti Asunta as its Vice Chairman. The Board further resolved to
organise the Board committees as follows: The members of the Audit Committee are
Erkki Karmila (Chairman), Kai Korhonen, Antti Tanskanen and Erkki Varis. The
members of the combined Nomination and Compensation Committee are Kari Jordan
(Chairman), Martti Asunta, Liisa Leino, Runar Lillandt and Juha Niemelä.
The Annual General Meeting elected Authorised Public Accountants
PricewaterhouseCoopers Oy as M-real's auditor. The term of office of the auditor
expires at the end of the next Annual General Meeting.
The Annual General Meeting instructed the Board of Directors to investigate
possibilities and the related terms to merge the company's series A and B
shares. The results of the investigation were instructed to be presented to the
next General Meeting.
Events after the reporting period
The company has no information about any material events after the reporting
period.
Near-term outlook
The demand for board is expected to remain good during the first quarter.
Folding boxboard and liner prices are slightly increasing as a result of price
increase measures.
The improvement of the uncoated fine paper demand continued during the fourth
quarter. The demand seems to continue at a good level also during the first
quarter of 2010. M-real has announced price increases of eight per cent across
all main markets. The price increases will take effect at the beginning of
March.
The demand for speciality papers is still below the normal level but it is
expected to improve during the first quarter. The prices of speciality papers
have mainly remained stable, and no significant changes in the average price are
expected.
In December 2009, M-real launched a new EUR 80 million profit improvement
programme for 2010. The result improvement of the new planned measures in 2010
is expected to be EUR 40 million. The combined profit impact of the new planned
measures and the previous years' profit improvement programmes is expected to be
approximately EUR 100 million positive in 2010. In addition to business areas
the decreasing cost trend is visible also in Other operations.The average total
production input costs are not expected to change materially during 2010.
In M-real's main products, the prerequisites for profitable business have
improved further. The operating result excluding non-recurring items in the
first quarter of 2010 is forecast to be better than in the last quarter of
2009. The operating result excluding non-recurring items for 2010 is expected to
be positive, provided that no material weakening takes place in the operating
environment.
Near-term business risks
In spite of several signs of improvement, there is still the risk that the
slowdown of the global economy will be prolonged and that the demand for
paperboard and paper products, which has already partially revived, can
experience another downturn.
The company's strategic review has proceeded consistently in phases. Together
with successful cost saving programmes, the company has achieved significant
savings and rationalisation of operations. It has been announced that the
strategic review of the paper business, cost cuts and streamlining of operations
will continue. If the measures to be implemented are unable to reach the desired
effect on costs, there is the risk of continued weak profitability of the paper
business.
There is a risk of a strengthening euro in relation to the US dollar and the
British pound. This would have a negative impact on operating conditions in the
European paper and board industry.
Possible industrial actions related to labour market negotiations in Finland
might if implemented negatively impact M-real's profitability.
Because the forward-looking estimates and statements of these financial
statements are based on current plans and estimates, they contain risks and
other uncertain factors that may cause the results to differ from the statements
concerning them.
In the short term, M-real's result will be particularly affected by the price
of, and demand for, finished products, raw material costs, the price of energy,
and the exchange rate development of the euro.
More information about longer-term risk factors can be found on pages 37-38 of
M-real's 2008 annual report.
M-REAL CORPORATION
Further information:
Matti Mörsky, CFO, tel. +358 10 465 4913
Juha Laine, Vice President, Investor Relations and Communications, tel. +358
10 465 4335
More information available starting from 1 pm on 4 February 2010. A telephone
conference for investors and analysts in English starts at 3 pm.
M-real's annual report, including financial statements, report of the Board of
Directors and auditor's report, will be available on the company's website
www.m-real.com <http://www.m-real.com/> at the latest on 2.3.2010.
BUSINESS AREAS AND MARKET TRENDS
2009 2009 2009 2009 2008 2008 2009 2008
Consumer Packaging Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 255 250 237 226 248 274 968 1,061
EBITDA, EUR million 50 51 24 15 11 37 140 108
excl. non-recurring items 51 51 25 19 11 37 146 109
Operating result, EUR million
33 31 4 -17 -13 17 51 24
excl. non-recurring items 34 31 5 -1 -9 17 69 29
Return on capital employed, %
20.5 16.4 2.1 -8.8 -6.0 8.3 7.5 3.2
excl. non-recurring items, %
21.0 16.4 2.5 -0.4 -4.0 8.3 10.2 3.8
Deliveries, 1,000 tonnes 327 315 296 274 303 348 1212 1,345
Production, 1,000 tonnes 342 323 275 292 293 347 1232 1,336
Personnel at the end of period 1,533 1,545 1,690 1,535 1,541 1,576 1,533 1,541
Year 2009 compared to 2008
The Consumer Packaging business area's operating result, excluding non-recurring
items, improved compared to the last year and totalled EUR 69 million (29).
Price increases, the implementation of cost-saving measures and the
strengthening of the US dollar improved the result. The most significant factor
weakening the result was the general decline in demand.
The result includes non-recurring items of EUR -18 million related to the
closure of Metsä-Botnia's Kaskinen mill and personnel cuts. The result for the
previous year included non-recurring items of EUR -5 million.
The deliveries of European folding boxboard producers decreased by 11 per cent
compared to the previous year. Consumer Packaging's deliveries of folding
boxboard were down by 8 per cent.
Result for October-December compared with the previous quarter
The operating result excluding non-recurring items for the Consumer Packaging
business area improved from the previous quarter and was EUR 34 million
(Q3/2009: 31). The result was improved by an increase in the delivery volumes.
The result includes a EUR 1 million non-recurring item related to personnel
cuts. The result for the previous quarter did not include non-recurring items.
The deliveries of European folding boxboard producers were 1 per cent higher
compared with the previous quarter. Consumer Packaging's deliveries of folding
boxboard were down by 2 per cent.
2009 2009 2009 2009 2008 2008 2009 2008
Office Papers Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 132 133 131 147 174 203 543 804
EBITDA, EUR million 6 0 -3 -2 -3 11 1 35
excl. non-recurring items 13 0 -3 -2 -1 11 8 37
Operating result, EUR million
-54 -15 -18 -17 -38 -6 -104 -53
excl. non-recurring items 0 -13 -18 -17 -14 -6 -48 -29
Return on capital employed, %
-47.5 -13 -13.7 -12.4 -25.6 -3.2 -21.2 -7.4
excl. non-recurring items, %
0.0 -11.4 -13.7 -12.4 -9.2 -3.2 -9.8 -3.8
Deliveries, 1,000 tonnes 198 199 190 203 237 270 790 1,081
Production, 1,000 tonnes 213 181 202 199 177 226 795 905
Personnel at the end of period 1,374 1,407 1,428 1,454 1,495 1,518 1,374 1,495
Year 2009 compared with year 2008
The operating result for Office Papers, excluding non-recurring items, weakened
compared to the last year and totalled EUR -48 million (-29). The result was
weakened by the lower average selling prices and the reduced demand for
products. The result was improved by lower raw material costs and implemented
cost savings measures.
The result includes a non-recurring item of EUR -56 million, of which EUR 47
million was an impairment charge according to IAS 36 and a EUR 9 million cost
provision related to the profit improvement measures at the Husum mill.
The result for the previous year included non-recurring items of EUR -24
million.
Total deliveries by European uncoated fine paper manufacturers were down by 12
per cent compared to the previous year. The delivery volume of Office Papers
fell by 27 per cent. This figure includes the impact of the divestment of the
New Thames mill.
Result for October-December compared with the previous quarter
The operating result excluding non-recurring items for Office Papers improved
compared to the previous quarter and was EUR 0 million (Q3/2009: -13). The
result was improved by lower production costs.
The result includes non-recurring items of a total of EUR -54 million, of which
EUR 47 million was an impairment charge according to IAS 36 and EUR 7 million a
cost provision related to the profit improvement measures at the Husum mill.
The result for the previous quarter included non-recurring items of EUR -2
million.
Total deliveries by European uncoated fine paper producers were up by 5 per cent
compared to the previous quarter. The delivery volume of Office Papers remained
at the same level as the previous quarter.
2009 2009 2009 2009 2008 2008 2009 2008
Speciality Papers Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Sales, EUR million 73 80 82 117 147 153 352 622
EBITDA, EUR million -8 -7 -17 -33 -1 7 -65 45
excl. non-recurring items -2 -8 -16 -5 1 7 -31 23
Operating result, EUR million
-78 -10 -23 -40 -75 -3 -151 -59
excl. non-recurring items -6 -11 -22 -12 -8 -3 -51 -15
Return on capital employed, %
-215.3 -16.0 -32.2 -43.4 -63.5 -2.3 -62.1 -14.3
excl. non-recurring items,
% -16.5 -17.6 -30.4 -12.5 -5.8 -2.3 -20.3 -3.4
Deliveries, 1,000 tonnes 68 76 80 118 157 168 342 680
Production, 1,000 tonnes 71 75 74 99 160 170 319 705
Personnel at the end of
period 1,389 1,563 1,742 1,971 1,965 2,009 1,389 1,965
Year 2009 compared with year 2008
The operating result excluding non-recurring items for Speciality Papers
weakened compared to the last year and totalled EUR -51 million (-15). The
result was weakened by a sharp decline in the demand for the products, decrease
in delivery volumes and the costs associated with discontinuation of coated fine
paper production, accounting for approximately half of the losses for the year.
The result was improved by higher average selling prices and implemented cost
savings measures.
The result includes total EUR -100 million in non-recurring items as follows.
· EUR 66 million impairment charge according to IAS 36
· EUR 28 million cost provisions and write-downs related to the closure
of the Hallein paper mill
· EUR 5 million cost provision associated with the profit improvement
programme of the business area
· EUR 1 million other non-recurring items
The result for the previous year included non-recurring items of EUR -44
million.
The delivery volume of Speciality Papers fell by 50 per cent; this figure
includes the discontinuation of standard coated fine paper production.
Result for October-December compared with the previous quarter
The operating result excluding non-recurring items for the Speciality Papers
business area improved compared to the previous quarter and was EUR -6 million
(Q3/2009: -11). The result was improved by higher selling prices and the
implemented cost-saving measures. The result was weakened by seasonal decrease
in delivery volumes.
The result includes EUR -72 million in non-recurring items as follows.
* EUR 66 million impairment charge according to IAS 36
* EUR 5 million cost provision associated with the profit improvement
programme of the business area
* EUR 1 million other non-recurring items
The result for the previous quarter includes a non-recurring income item of EUR
1 million connected to the closure of the Hallein paper mill.
The delivery volume of Speciality Papers fell by 11 per cent; this figure
includes the discontinuation of standard coated fine paper production.
2009 2009 2009 2009 2008 2008 2009 2008
Market Pulp and Energy Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
-----------------------------------------------------------------------------
Sales, EUR million 126 132 116 134 150 172 508 644
EBITDA, EUR million -1 -6 -10 -4 8 23 -21 148
excl. non-recurring items 2 -6 -10 -3 8 23 -17 73
Operating result, EUR million -39 -15 -19 -18 -2 12 -91 106
excl. non-recurring items -9 -14 -19 -12 -2 12 -54 32
Return on capital employed, % -22.8 -7.3 -9.2 -8.4 -1.3 5.1 -12.8 12.6
excl. non-recurring items, % -5.2 -6.9 -9.2 -5.8 -1.3 5.1 -7.7 3.6
Deliveries, 1,000 tonnes 246 295 327 287 264 291 1155 1,115
Year 2009 compared to 2008
The operating result of the Market Pulp and Energy business area, excluding
non-recurring items, weakened compared to the corresponding period last year and
totalled EUR -54 million (32). The result was weakened by the lower selling
price of pulp and the production curtailments of pulp mills due to low demand.
The result was improved by lower wood costs.
The result includes total EUR -37 million net in non-recurring items as follows:
· EUR 48 million write-downs and provisions associated with the plan to
close the Alizay pulp mill down permanently
· EUR 18 million gain related to Metsä-Botnia's divestment of PVO shares
· EUR 6 million cost provisions and write-downs associated with the
closure of the Metsä-Botnia Kaskinen mill
· EUR 1 million cost provisions related to the profit improvement
measures at the Husum mill.
The result for the corresponding period last year included EUR +74 million
non-recurring items related to M-real's divestment of PVO shares.
Result for October-December compared with the previous quarter
The operating result excluding non-recurring items for the Market Pulp and
Energy business area improved compared with the previous quarter and was EUR -9
million (Q3/2009: -14). The result was improved by higher selling prices of pulp
and an increase in delivery volumes due to the pick-up in demand. The decrease
in the total volume of deliveries is due to the divestment of Metsä-Botnia's
Uruguay mill, which was realised on 8 December 2009. The delivery volumes of all
remaining units increased compared to the third quarter.
The result includes total EUR -30 million net in non-recurring items as follows:
· EUR 48 million write-downs and provisions associated with the plan to
close the Alizay pulp mill down permanently
· EUR 18 million gain related to Metsä-Botnia's divestment of PVO shares
A non-recurring item totalling EUR -1 million was recognised in the operating
result for the previous quarter in connection with the profit improvement
measures at the Husum mill.
Condensed consolidated statement of comprehensive income
2009 2008 2009 2009
EUR million Q1-Q4 Q1-Q4 Change Q3 Q4
--------------------------------------------------------------------------------
Continuing operations
Sales 2,432 3,236 -804 618 606
Other operating income 252 182 70 25 166
Operating expenses -2,597 -3,164 567 -616 -641
Share of results in associated companies 2 0 2 0 2
Depreciation and impairment losses -356 -315 -41 -51 -185
--------------------------------------------------------------------------------
Operating result -267 -61 -206 -24 -52
% of sales -11.0 -1.9 -3.9 -8.6
Share of results in associated companies -16 -1 -15 -1 -2
Net exchange gains and losses 5 13 -8 2 1
Other net financial items -80 -155 75 -49 -21
--------------------------------------------------------------------------------
Result before income tax -358 -204 -154 -72 -74
% of sales -14.7 -6.3 -11.7 -12.2
Income taxes 27 34 -7 -1 14
--------------------------------------------------------------------------------
Result for the period from continuing
operations -331 -170 -161 -73 -60
% of sales -13.6 -5.3 -11.8 -9.9
Discontinued operations
Result from discontinued operations -23 -338 315 -3 -8
--------------------------------------------------------------------------------
Result for the period -354 -508 154 -76 -68
--------------------------------------------------------------------------------
Other comprehensive income
Cash flow hedges 26 -41 67 12 2
Available for sale financial assets -115 87 -202 27 -22
Translation differences 5 11 -6 -13 15
Income tax relating to components of
other comprehensive income 27 -19 46 -6 5
--------------------------------------------------------------------------------
Other comprehensive income, net of tax -57 38 -95 20 0
Total comprehensive income for the period -411 -470 59 -56 -68
Result for the period attributable to
Shareholders of parent company -358 -517 159 -77 -69
Minority interest 4 9 -5 1 1
--------------------------------------------------------------------------------
Total comprehensive income for the period
attributable to
Shareholders of parent company -412 -481 69 -55 -68
Minority interest 1 11 -10 -1 0
--------------------------------------------------------------------------------
Total -411 -470 59 -56 -68
Earnings per share for result attributable
to shareholders of parent company
(EUR/share)
from continuing operations -1.02 -0.55 -0.47 -0.22 -0.19
from discontinued operations -0.07 -1.03 0.96 -0.01 -0.02
--------------------------------------------------------------------------------
Total -1.09 -1.58 0.49 -0.23 -0.21
*) Metsä Botnia's netresult includes from 8.12.2009 on in operating result's
row "Share of results in associated companies"
Condensed consolidated balance sheet
31.12. 31.12.
EUR million 2009 % 2008 %
-----------------------------------------------------------------------
ASSETS
Non-current assets
Goodwill 13 0.4 51 1.1
Other intangible assets 32 1.0 51 1.1
Tangible assets 1,130 36.1 1,808 40.1
Biological assets 0 0.0 57 1.3
Investments in associated companies 210 6.7 63 1.4
Available for sale investments 316 10.1 440 9.8
Other non-current financial assets 59 1.9 232 5.2
Deferred tax receivables 3 0.1 5 0.1
---------------------------
1,763 56.3 2,707 60.1
Current assets
Inventories 313 10.0 505 11.2
Accounts receivables and other receivables 559 17.8 743 16.5
Cash and cash equivalents 497 15.9 550 12.2
---------------------------
1,369 43.7 1,798 39.9
-----------------------------------------------------------------------
Total assets 3,132 100.0 4,505 100.0
-----------------------------------------------------------------------
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity
Equity attributable
to shareholders of parent company 916 29.2 1,329 29.5
Minority interest 8 0.3 57 1.3
---------------------------
Total equity 924 29.5 1,386 30.8
Non-current liabilities
Deferred tax liabilities 162 5.2 232 5.1
Post-employment benefit obligations 89 2.8 98 2.2
Provisions 104 3.3 99 2.2
Borrowings 943 30.1 1,568 34.8
Other liabilities 12 0.4 18 0.4
---------------------------
1,310 41.8 2,015 44.7
Current liabilities
Current borrowings 468 15.0 538 11.9
Accounts payable and other liabilities 430 13.7 566 12.6
---------------------------
898 28.7 1,104 24.5
Total liabilities 2,208 70.5 3,119 69.2
-----------------------------------------------------------------------
Total shareholders' equity and liabilities 3,132 100.0 4,505 100.0
-----------------------------------------------------------------------
Condensed consolidated cash flow statement
2009 2008 2009
EUR million Q1-Q4 Q4
---------------------------------------------------------------------------
Result for the period -354 -508 -68
Total adjustments 324 619 134
Change in working capital 140 7 9
---------------------------------------------------------------------------
Cash flow arising from operations 110 118 75
---------------------------------------------------------------------------
Net financial items -38 -193 -33
Income taxes paid 9 -22 -1
---------------------------------------------------------------------------
Net cash flow arising from operating activities 81 -97 41
---------------------------------------------------------------------------
Investments in intangible and tangible assets -73 -128 -18
Divestments of assets and other 284 483 277
---------------------------------------------------------------------------
Net cash flow arising from investing activities 211 355 259
---------------------------------------------------------------------------
Share issue, minority interest 0 2 0
Changes in non-current loans and in other financial items -344 -71 -253
Dividends paid 0 -20 0
---------------------------------------------------------------------------
Net cash flow arising from financing activities -344 -89 -253
---------------------------------------------------------------------------
Changes in cash and cash equivalents -52 169 47
---------------------------------------------------------------------------
Cash and cash equivalents at beginning of period 550 380 424
Translation difference in cash and cash equivalents -1 1 0
Changes in cash and cash equivalents -52 169 47
Assets held for sale 0 0 26
-----------------
Cash and cash equivalents at end of period 497 550 497
Statement of changes in shareholders' equity
Equity attributable to shareholders of parent
company
---------------------------------------------------
Fair
Share Trans- value Minor-
pre- lation and ity
Share mium differ- other Retained inter-
EUR million capital account ences reserves earnings Total est Total
--------------------------------------------------------------------------------
Shareholders'
equity,
1 January 2008 558 667 -11 225 391 1,830 52 1,882
--------------------------------------------------------------------------------
Dividends paid -20 -20 -20
Metsä-Botnia
restructuring
in Uruguay -6 -6
Comprehensive
income
for the period 2 34 -517 -481 11 -470
--------------------------------------------------------------------------------
Shareholders'
equity, 31
December 2008 558 667 -9 259 -146 1,329 57 1,386
--------------------------------------------------------------------------------
Shareholders'
equity,
1 January 2009 558 667 -9 259 -146 1,329 57 1,386
--------------------------------------------------------------------------------
Metsä-Botnia
restructuring
in Uruguay -50 -50
Comprehensive
income
for the period 11 -65 -358 -412 1 -411
--------------------------------------------------------------------------------
Shareholders'
equity, 31
December 2009 558 667 2 194 -504 916 8 924
--------------------------------------------------------------------------------
Key ratios 2009 2008 2009
Q4
--------------------------------------------------------------------------------
Sales, EUR million 2,432 3,236 606
EBITDA, EUR million 88 254 132
excl. non-recurring items, EUR million 44 192 51
--------------------------------------------------------------------------------
Operating result, EUR million -267 -61 -52
excl. non-recurring items, EUR million -150 -35 7
--------------------------------------------------------------------------------
Result from continuing operations
before taxes, EUR million -358 -204 -74
excl. non-recurring items, Eur million -230 -178 -15
--------------------------------------------------------------------------------
Result for the period
from continuing operations, EUR
million -331 -170 -60
from discontinued operations, EUR
million -23 -338 -8
--------------------------------------
Total, EUR million -354 -508 -68
--------------------------------------------------------------------------------
Earnings per share
from continuing operations, EUR -1.02 -0.55 -0.19
from discontinued operations, EUR -0.07 -1.03 -0.02
--------------------------------------
Total, EUR -1.09 -1.58 -0.21
--------------------------------------------------------------------------------
Earnings per share, excl. non-recurring
items, EUR -0.66 -0.48 -0.02
--------------------------------------------------------------------------------
Return on equity, % -28.6 -10.4 -24.3
excl. non-recurring items, % -18.3 -9.0 -1.4
--------------------------------------------------------------------------------
Return on capital employed, % -8.9 -1.3 -8.7
excl. non-recurring items, % -4.5 -0.5 0.4
--------------------------------------------------------------------------------
Equity ratio at end of period, % 29.6 30.8 29.6
Gearing ratio at end of period, % 153 152 153
Net gearing ratio at end of period, % 84 90 84
--------------------------------------------------------------------------------
Shareholders' equity per share at end of
period, EUR 2.79 4.05 2.79
Interest-bearing net liabilities, EUR
million 777 1,254 777
Gross capital expenditure, EUR million 73 128 18
--------------------------------------------------------------------------------
Deliveries, 1 000 tonnes
Paper business 1,132 1,761 266
Consumer Packaging 1,212 1,345 327
--------------------------------------------------------------------------------
Personnel at the end of period
In continuing operations 4,903 6,546 4,903
EBITDA = Earnings before interest, taxes, depreciation and
impairment charges
Securities and guarantees 2009 2008
EUR million
--------------------------------------------------------------------------------
For own liabilities 113 61
On behalf of associated companies 0 1
On behalf of Group companies 0 5
On behalf of others 2 2
--------------------------------------------------------------------------------
Total 115 69
--------------------------------------------------------------------------------
Open derivative contracts 2009 2008
EUR million
--------------------------------------------------------------------------------
Interest rate derivatives 981 1,286
Currency derivatives 2,806 2,805
Other derivatives 183 185
--------------------------------------------------------------------------------
Total 3,970 4,276
--------------------------------------------------------------------------------
The fair value of open derivative contracts calculated at market value at the
end of the review period was EUR -19.5 million (EUR 15.0 million 31 December
2008)
Also include other closed contracts to a total amount of EUR 2,158.5 million
(EUR 2,068.8 million 31 December 2008).
Commitments related to fixed assets 2009 2008
EUR million
--------------------------------------------------------------------------------
Payments due in following 12 months 0 0
Payments due later 1 1
Changes in property, plant and
equipment 2009 2008
EUR million
--------------------------------------------------------------------------------
Carrying value at beginning of period 1,808 2,820
Capital expenditure 70 128
Decreases -454 -670
Depreciation and impairment charges -312 -282
related to discontinued operations 0 -149
Translation difference 18 -39
--------------------------------------------------------------------------------
Carrying value at end of period 1,130 1,808
Depreciation and impairment losses related to discontinued operations include
Graphic Papers business.
Related-party transaction
Transaction and balances with parent and
sister companies 2009 2008
EUR million
--------------------------------------------------------------------------------
Sales 22 34
Other operating income 37 3
Purchases 201 571
Interest income 1 7
Interest expences 2 4
Non-current receivables 53 5
Current receivables 107 49
Non-current liabilities 0 0
Current liabilities 106 228
Transaction with associated companies 2009 2008
EUR million
--------------------------------------------------------------------------------
Sales 1 0
Purchases 35 4
Non-current receivables 0 0
Current receivables 7 7
Current liabilities 2 2
Accounting policies
The financial statements were prepared in accordance with accounting policies
set out in International Accounting Standard 34 and in the M-real´s Annual
Report for 2008.
The Group has adopted the following standards: IAS 1 (revisited), Presentation
of Financial Statements. The revisited standard is aimed at improving users'
ability to analyse and compare the information given in financial statements
by separating changes in equity of an entity arising from transactions with
owners from other changes in equity. The Group presents non-owner changes in
equity in the statement of comprehensive income.
IFRS 8, Operating Segments. The new standard replaces IAS 14. The new standard
requires a 'management approach', under which segment information is presented
on the same basis as that used for internal reporting purposes. The operating
segments are the same as in 2008 according to IAS 14 or Consumer Packaging,
Office Papers, Speciality Papers and Market Pulp and Energy.
The figures in the financial statement are unaudited.
Calculation of key ratios
(Result from continuing
operations before tax
Return on equity (%) = - direct taxes) per
(Shareholders' equity
(average))
(Result from continuing operations before
tax
Return on capital employed (%) = + interest expenses,net exchange
gains/losses and other financial
expenses) per (Shareholders' equity
+ interest-bearing borrowings (average))
Equity ratio (%) = (Shareholders' equity) per (Total assets
- advance payments received)
Gearing ratio (%) = (Interest-bearing borrowings)
per (Shareholders' equity)
(Interest-bearing borrowings
Net gearing ratio (%) = - liquid funds
- interest-bearing receivables)
per (Shareholders' equity)
(Profit attributable to shareholders of
Earnings per share = parent company)
per (Adjusted number of shares (average))
(Equity attributable to shareholders of
Shareholders´equity per share = parent company)
per (Adjusted number of shares at the end
of period)
Sales and result by
segment
2009 2009 2009 2009 2008 2008 2009 2008
EUR million Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
--------------------------------------------------------------------------------
Consumer Packaging 255 250 237 226 248 274 968 1,061
Office Papers 132 133 131 147 174 203 543 804
Speciality Papers 73 80 82 117 147 153 352 622
Market Pulp and
Energy 126 132 116 134 150 172 508 644
Other operations 59 56 40 34 57 77 189 323
Internal sales -39 -33 -21 -35 -54 -53 -128 -218
--------------------------------------------------------------------------------
Sales 606 618 585 623 722 826 2,432 3,236
Consumer Packaging 50 51 24 15 11 37 140 108
Office Papers 6 0 -3 -2 -3 11 1 35
Speciality Papers -8 -7 -17 -33 -1 7 -65 45
Market Pulp and
Energy -1 -6 -10 -4 8 23 -21 148
Other operations 85 -11 -17 -24 -33 -29 33 -82
--------------------------------------------------------------------------------
EBITDA 132 27 -23 -48 -18 49 88 254
% of sales 21.8 4.4 -3.9 -7.7 -2.5 5.9 3.6 7.8
Consumer Packaging 33 31 4 -17 -13 17 51 24
Office Papers -54 -15 -18 -17 -38 -6 -104 -53
Speciality Papers -78 -10 -23 -40 -75 -3 -151 -59
Market Pulp and
Energy -39 -15 -19 -18 -2 12 -91 106
Other operations 86 -15 -17 -26 -33 -28 28 -79
--------------------------------------------------------------------------------
Operating result -52 -24 -73 -118 -161 -8 -267 -61
% of sales -8.6 -3.9 -12.5 -18.9 -22.3 -1.0 -11.0 -1.9
Non-recurring items
Consumer Packaging -1 0 -1 -16 -4 0 -18 -5
Office Papers -54 -2 0 0 -24 0 -56 -24
Speciality Papers -72 1 -1 -28 -67 0 -100 -44
Market Pulp and
Energy -30 -1 0 -6 0 0 -37 74
Other operations 98 0 -1 -3 -14 -11 94 -27
--------------------------------------------------------------------------------
Non-recurring items
in operating result -59 -2 -3 -53 -110 -11 -117 -26
Consumer Packaging 51 51 25 19 11 37 146 109
Office Papers 13 0 -3 -2 -1 11 8 37
Speciality Papers -2 -8 -16 -5 1 7 -31 23
Market Pulp and
Energy 2 -6 -10 -3 8 23 -17 73
Other operations -13 -11 -16 -22 -15 -18 -62 -50
--------------------------------------------------------------------------------
EBITDA, excl.
non-recurring items 51 26 -20 -13 4 60 44 192
% of sales 8.4 4.2 -3.4 -2.087 0.6 7.3 1.8 5.9
Consumer Packaging 34 31 5 -1 -9 17 69 29
Office Papers 0 -13 -18 -17 -14 -6 -48 -29
Speciality Papers -6 -11 -22 -12 -8 -3 -51 -15
Market Pulp and
Energy -9 -14 -19 -12 -2 12 -54 32
Other operations -12 -15 -16 -23 -18 -17 -66 -52
--------------------------------------------------------------------------------
Operating result,
excl. non-recurring
items 7 -22 -70 -65 -51 3 -150 -35
% of sales 1.2 -3.6 -12.0 -10.43 -7.1 0.4 -6.2 -1.1
Return on capital
employed %
Consumer Packaging 20.5 16.4 2.1 -8.8 -6 8.3 7.5 3.2
Office Papers -47.5 -13 -13.7 -12.4 -25.6 -3.2 -21.2 -7.4
Speciality Papers -215.3 -16 -32.2 -43.4 -63.5 -2.3 -62.1 -14.3
Market Pulp and
Energy -22.8 -7.3 -9.2 -8.4 -1.3 5.1 -12.8 12.6
--------------------------------------------------------------------------------
Group -8.7 -2.3 -10.2 -13.4 -19.7 -0.5 -8.9 -1.3
Capital employed, EUR
million
Consumer Packaging 556 744 771 774 801 839 556 801
Office Papers 420 479 501 517 556 645 420 556
Speciality Papers 65 225 241 312 415 518 65 415
Market Pulp and
Energy 550 830 822 876 899 929 550 899
Unallocated and
eliminations 743 541 611 609 822 -12 743 822
--------------------------------------------------------------------------------
Group 2,334 2,819 2,946 3,088 3,493 2,919 2,334 3,493
The capital employed for a segment included its assets: goodwill, other
intangible goods, tangible assets, biological assets, investments in
associates, inventories, accounts receivables, prepayments and accrued income
(excluding interest and taxes), less the segment's liabilities (accounts
payable, advance payments, accruals and deferred income (excluding interest
and taxes).
Deliveries 2009 2009 2009 2009 2008 2008 2009 2008
1,000 tonnes Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
-----------------------------------------------------------------------
Consumer Packaging 327 315 296 274 303 348 1,212 1,345
Office Papers 198 199 190 203 237 270 790 1,081
Speciality Papers 68 76 80 118 157 168 342 680
-----------------------------------------------
Paper business, total 266 275 270 321 394 438 1,132 1,761
Market Pulp 246 295 327 287 264 291 1,155 1,115
Production 2009 2009 2009 2009 2008 2008 2009 2008
1,000 tonnes Q4 Q3 Q2 Q1 Q4 Q3 Q1-Q4 Q1-Q4
-----------------------------------------------------------------------
Consumer Packaging 342 323 275 292 293 347 1,232 1,336
Office Papers 213 181 202 199 177 226 795 905
Speciality Papers 71 75 74 99 160 170 319 705
-----------------------------------------------
Paper business, total 257 257 276 298 337 396 1,114 1,610
Metsä-Botnia pulp (1)) 203 219 210 231 235 270 863 990
M-real pulp 316 263 264 277 303 377 1,120 1,486
(1)) corresponds to M-real's ownership share of 30% in Metsä-Botnia
[HUG#1380556]
M-real's operating result excluding non-recurring items for 2009 EUR -150 million, final quarter positive
| Source: Metsä Board Oyj
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