Metsa Group general brochure

FROM METSÄ TO the WORLD

METSÄ IS NEEDED EVERYWHERE

75%

75% of wood is sourced from Finland.

We make the products of the future.

Metsä Group creates the business of the future from northern wood. We manufacture products that millions of people throughout the world need. The world’s population is growing and prospering. Competition for energy and natural resources will become tighter, and resources must be used more efficiently. The changes in the operating environment are mainly positive for Metsä Group, as we use renewable and sustainably grown northern wood as the raw material for our products.

WOOD SUPPLY AND FOREST SERVICES

WOOD PRODUCTS

ROOTS IN FINLAND, ENDLESS GLOBAL OPPORTUNITIES

PULP

PAPERBOARD

We focus on tissue and cooking papers, fresh forest fibre paperboards, pulp, wood products, and wood supply and forest services. Our high-quality products combine renewable raw materials, customer-orientation, sustainable development and innovation.

TISSUE AND COOKING PAPERS

Metsä Group’s sales in 2014 totalled EUR 5.0 billion.

The Group employs approximately 10,500 people and operates in some 30 countries. Metsäliitto Cooperative is the parent company of Metsä Group and is owned by approximately 122,000 Finnish forest owners.

Demand for pulp, paperboard and tissue paper is continuously growing all over the world. The outlook for demand for wood products is good as well. We are also one of Finland’s leading bioenergy producers and users.

We are deeply rooted in Finnish forests and have endless global opportunities. Our business is based on renewable wood raw material which is managed, procured and processed responsibly. Our wood-based products are ecological, safe and recyclable.

86%

A total of 86% of the fuels used by us are wood-based.

WOOD SUPPLY AND FOREST SERVICES

Responsible expertise

We reliably serve forest owners and industry that uses wood.

Metsä Forest is responsible for Metsä Group’s wood supply and offers owner-members of Metsäliitto Cooperative comprehensive services in wood trade and forest and nature management as well as owner-member benefits.

We are a pioneer in developing the management of forest assets and profitability of forestry. We want to be a forest owner’s best partner. 98 per cent of our customers have recommended or would recommend our forest management services.

We are the market leader in wood supply and energy wood deliveries in Finland. We secure our industrial customers’ wood supply through competitive harvesting and logistics in cooperation with our subcontractors. We develop harvesting and forest management methods to utilise wood raw material as effectively as possible in manufacturing products and producing bioenergy.

We only source wood from sustainably managed forests, primarily from Finland. Metsäliitto Cooperative has approximately 122,000 members, who together own nearly half of the private forest area in Finland. Other wood procurement countries include Sweden, the Baltic countries and Russia. Our comprehensive tracking systems mean that we always know the origin of the wood we supply.

100% of our wood is traceable, and 84% is certified.

100%

WOOD PRODUCTS

Industrial efficiency in wood products

+31%

Metsä Wood’s work safety improved by 31%.

We produce wood products for customers in the construction, industry and distribution sectors.

Metsä Wood focuses on the industrial production and sale of high-quality wood products. Our most important products are sawn timber, plywood and Kerto® LVL. Aiming for industrial efficiency in all of our operations is at the core of our strategy. With regard to customer accounts, we emphasise commitment to key customers, reliability and high quality.

We use the world’s best renewable raw material – northern wood – which is always traceable to sustainably managed forests. Our production plants are located in the middle of these forests, ensuring a reliable supply of raw material.

Our wood products combine responsibility with strength, light weight and uniform quality. Moreover, northern wood has excellent acoustic properties and minimal thermal expansion. We continuously develop our production plants to improve our efficiency, and we never compromise quality, safety or environmental values.

We have a strong position in Europe and ambitious growth targets in Asia and the United States.

PULP

Bioproducts for growing markets

Our bleached softwood and birch pulp are specially developed for producing high-quality tissue and printing papers, specialty products and board.

Metsä Fibre’s aim is to be the first choice supplier of premiumquality bioproducts and services that support its customers’ operations. R&D projects with customers, technical services and fibre expertise improve our customers’ products, production and competitiveness. Thanks to our excellent Botnia products and services, we are one of the world’s leading suppliers of softwood pulp.

Metsä Fibre is a leader in the efficient production and use of bioenergy. Bioenergy produced at four mills in Finland is sold to the market as electricity, wood fuel and heat. Our production activities also generate tall oil and turpentine for the chemical industry’s specialty products and biofuels. Biochemicals and bioenergy account for over 10 per cent of our sales, and we aim to increase that proportion in the future.

Demand for softwood pulp is steadily growing across the world. The highest growth is taking place in Asia, where approximately 25 per cent of Botnia pulp produced by Metsä Fibre is delivered.

14,000 Metsä Fibre generates nearly 14,000 ideas per year.

PAPERBOARD

Profitable growth with premium paperboards

We are the leading European producer of folding boxboard and white fresh forest fibre linerboard.

Metsä Board focuses on high-quality lightweight paperboards made from fresh forest fibre. Companies that manufacture consumer products can replace conventional packaging materials with our lightweight, ecological and safe paperboard while improving the sustainability of their operations globally. Fresh forest fibre paperboard is particularly suitable for food packaging purposes and other demanding uses.

Quality leadership is an important growth factor for Metsä Board. We have high-quality fibre raw material, efficient pulp and paperboard mills, and world-class fibre and paperboard production expertise. We work with our customers and partners to develop new ways of further improving the quality, sustainability and safety of our products.

We are also seeking new applications to support profitable growth.

Growth in global demand for paperboard will continue to be strong. Metsä Board aims to strengthen its market position globally and is taking actions to significantly grow its paperboard business in the next few years.

30%

Metsä Board’s paperboards are up to 30% lighter than corresponding competing products.

TISSUE AND COOKING PAPERS

Well-being and hygiene

Our premium-quality tissue and cooking papers bring comfort into the daily lives of consumers, end users and customers.

Metsä Tissue is one of the leading tissue paper products suppliers to households and professionals in Europe, as well as the world’s leading supplier of baking and cooking papers.

We seek to be the best growth partner for our customers in all product groups. Understanding our customers’ business, meeting their needs and working in close collaboration with them to generate growth are the cornerstones of our strategy.

The product ranges of Metsä Tissue’s consumer brands Lambi, Serla, Mola and Tento are comprised of toilet tissues, kitchen towels and facial tissues, as well paper handkerchiefs and napkins. Katrin products and solutions are intended for use in public premises. SAGA cooking products are suitable for both home kitchens and professional use.

Increasing living standards, urbanisation, consumers’ pursuit of well-being and health, requirements for ecological products and increasing environmental awareness will increase the demand for tissue and cooking papers everywhere in the world.

Metsä Tissue is seeking growth in both the European tissue paper and global cooking paper markets.

Consumption of tissue paper has doubled since the early 1990s.

200%

METSÄ GROUP IS A RENEWING EMPLOYER Metsä Group utilises renewable raw material that is the best raw material in the world: wood. Success demands expertise, demanding yet fair management, a positive attitude and the will to renew and develop. Our values are important to us. Renewal, cooperation, reliability and responsible profitability are the foundation of our operations.

Metsä Tissue, Metsä Board, Metsä Fibre and Metsä Wood all offer job opportunities for chemical and mechanical industrial production, maintenance and process techno­ logy professionals. At Metsä Forest, the emphasis is on expertise in forest management and the wood trade.

We need professionals from a variety of fields. Experts in financial administration, sustainability, logistics, purchasing, legal affairs, HR, communications and IT, among others, can find a career at Metsä Group.

At Metsä Group, we value our employees. We invest in professional development, well-being and safety at work.

In return, we expect everyone at Metsä to develop their work and think about what they could do better and how to work for the common goals – every day.

Work at Metsä is demanding and challenging, yet it offers interesting opportunities. With the Metsä attitude, we achieve top results.

94% of our employees are in permanent positions.

94%

INTERNATIONAL Metsä Group

PRODUCTION SALES COMPANIES

For forest owners more than

100 service offices in Finland

35

Sales companies

Approximately

900

Wood deliveries by source country %

summer jobs and internships

Sales by market area

%

Finland Baltic countries Russia Sweden

75 10 8 7

Personnel by country

31 December 2015 %

Metsä Group Metsäliitto cooperative

SALES total

5.0

GROUP’S PARENT COMPANY

EUR BILLION

personnel total

10,500

OWNED BY 122,000 FINNISH FOREST OWNERS

Metsä Tissue

Metsä Board

Metsä Fibre

Metsä Wood

metsä forest

TISSUE AND COOKING PAPERS

PAPERBOARD

PULP

WOOD PRODUCTS

WOOD SUPPLY AND FOREST SERVICES

SALES EUR 1.0 BILLION

SALES EUR 2.0 BILLION

SALES EUR 1.3 BILLION

SALES EUR 0.9 BILLION

SALES EUR 1.6 BILLION

PERSONNEL 2,800

PERSONNEL 3,100

PERSONNEL 800

PERSONNEL 2,300

PERSONNEL 900

OWNERSHIP OF METSÄLIITTO COOPERATIVE 91%

OWNERSHIP OF METSÄLIITTO COOPERATIVE 42.53% (HOLDING OF VOTES 62.15%)

OWNERSHIP OF METSÄLIITTO COOPERATIVE 50.2%, Metsä Board 24.9%, Itochu Corporation 24.9%

OWNERSHIP OF METSÄLIITTO COOPERATIVE 100%

OWNERSHIP OF METSÄLIITTO COOPERATIVE 100%

Finland 49 Germany 16 Sweden 13 United Kingdom 5 Russia 5 Poland 4 Slovakia 3 France 1 Baltic countries 1 Rest of Europe 1 Other countries 1

Finland Germany United Kingdom Italy France Sweden Poland Norway Rest of Europe Other countries

19 13 10 5 5 5 3 2 18 20

Metsä Group P.O. Box 10 FI-02020 METSÄ Tel. +358 10 4601 www.metsagroup.com Cover: Carta Integra 210 g/m2, interior: Galerie Art Silk 170 g/m2. © Metsä Group 2015