Metsä Board (METSB) Investor presentation summary

Strategic direction and market positioning

• Focus on premium, recyclable fresh fibre paperboards for consumer and retail packaging, with strong positions in Europe and North America.

• Transformation programme targets €200m annual EBITDA improvement by end of 2027, with €135m already achieved by Q2 2026.

• Major capex phase completed; future investments to remain structurally lower, supporting capital efficiency.

• Self-sufficiency in pulp and high fossil-free energy use underpin cost and sustainability advantages.

• Regulatory trends and consumer preferences drive demand for recyclable, plastic-free packaging.

Financial performance and outlook

• H1 2026 sales declined 12% year-on-year to €826m, with comparable operating result at €-8m.

• Q2 2026 saw a return to positive EBIT (€3m) and improved cash flow, despite continued losses at Husum and weak pulp markets.

• Transformation programme delivered significant cost savings, offsetting adverse FX and lower volumes.

• Strong liquidity of €547m and secured refinancing; net debt at €341m, leverage elevated due to weak EBITDA.

• Near-term outlook expects stable paperboard volumes, improved pricing, but Q3 earnings to be impacted by maintenance shutdowns.

Operational highlights

• Paperboard deliveries increased in Q2 2026, with folding boxboard market share rising in Europe.

• White kraftliner deliveries grew 8% year-on-year, driven by European demand.

• Market pulp demand remained weak; production curtailments continued.

• Operational excellence initiatives improved supply chain agility and service, especially in Europe and the US.

• Cost structure improvements included mill closures and procurement optimisation.