Good afternoon, and welcome to the presentation of Metsä Board's first quarter results and strategy. My name is Katri Sundström.

I'm responsible for Investor Relations here in Metsä Board, and will be hosting this event today. We have a live audience here today, which is a great pleasure.

Obviously, a majority of our audience will be online, either now, or then afterwards through the recording. Warm welcome to you all.

Let me briefly walk you through today's agenda. We will first go through the Q1 results by CEO Esa Kaikkonen and CFO Anssi Tammilehto.

After that, we will have the Q&A session. Then we will have a short 5-minute break, and after that, we will move on to our strategy part, and then we will welcome more management team members here on stage.

Regarding the questions, you here on-site, please wait until you will be handed a microphone before asking. Then of course, the conference call and the open lines will be available both after the Q1 results as well as the strategy.

Two Q&A parts. Then of course, you can always submit questions using the chat function, and I will then present them here to the presenters.

Then we are aiming to finish at 5:00 p.m. and continue an informal networking here on-site.

Here are the greetings from our legal department. Now, I will hand over to Esa and Anssi.

Please.

Thank you. Thank you, Katri, and welcome also on my behalf to the live audience and the online audience as well.

Welcome to the results review of January-March '26, first quarter. Let's say with one sentence, I would say that we are pleased about the actions that we have taken, but at the same time, the circumstances stay pretty, let's say, loaded on negative issues.

I will be kind of going through those and the business environment, generally speaking, is not very supportive currently. Of course, looking at the first quarter new strategy, it of course sharpens our business focus and provides a solid platform for future growth.

That's something that we have been preparing for a while with the Board of Directors, and now it's launched in the 19th of March when we had an AGM at the same time. Then having said that I'm pleased about the actions that we have taken last year and also during the first quarter, you see that the transformation program is progressing well, with the 50% of the targeted EBITDA improvement achieved on run-rate basis already at this stage, remembering that it's a €200 million program which is extending to the end of '27 and the full impact then '28 on annual counts.

Then seasonally, we see that higher activity levels at the beginning of year has impacted the working capital and cash flow, of course, tying more operative networking capital, but that was anticipated already and we highlighted that in the annual report as well. Then our focus on a daily basis is of course, in a strategy execution, but at the same time, operational steering remains on the cash flows and continuing tight capital discipline.

Those are the themes of today. Looking at these actions a little bit more in details.

Financial targets, I will be discussing those more today in a latter part of the program. The top line and profitability in Q1, those are the issues we are mainly covering today in this result review.

They were burdened by the lower FBB volumes predominantly to the US, and then adverse FX effects and lower paperboard prices, and also lower contribution from Metsä Fibre. Having said this, at the same time, we have been doing some transformation actions that will be then run through by Anssi later on.

Working capital, we discussed already, and actions on this. We have said that Husum has been a headache last year, remains to be a headache still in this year, and actions are focused on Husum site mostly.

Then to support the commercial actions, we have been acquiring sheeting capacity in the Netherlands to allocate the resources and volumes to European market. Having said this, since Q3 '25, which was the bottom number in the EBITDA, we have been kind of getting into the plus numbers, plus 17 in the first quarter, having seen this, of course, we have to be happy on the actions that we have taken.

Then, at the same time, I said that the business environment is not too supportive currently. We see this Iran conflict that escalated in the first quarter having an limited impact on the Q1, no material disruptions to production or deliveries at that point of time, but at the same time, over time, we will see an higher oil and natural gas prices impacting negatively to our logistics and transportation, generally speaking, and also selected raw material that are based partly on the fossil energy.

What we do, of course, from our part, and relative terms to some of the European competition is that we are currently 90% energy self-sufficient through our Metsä Fibre ownership and also through our own Husum energy generation. In that sense, we are in a relative terms in a better position.

Then having said this, 93% of energy that we are using is actually fossil-free, and that will be elaborated today more by Laura in her presentation. This is, of course, supporting the competitiveness of ours, but at the same time, we have to act swiftly in this situation.

That means that we'll have to kind of open discussions with the customers as well regarding the price increases. Then, if needed, we take the curtailments and further cost cutting as well, and we're seeking all the time new initiatives.

That goes without saying. Top line, having said this, roughly €90 million down, impacted by FBB volumes, and there, US was the biggest negative volume contributor here, and those were, of course, due to the tariffs.

If I then slice it up a bit further, the food service board that we have been discussing earlier as well has been the half of that loss that we had in the US market. Currently, we see that we actually experienced that in the last year during the three quarters.

Now the demand is stabilizing on the FBB in the US, and we see that we can be competitive in some of these, let's say, packaging segments that we are aiming for. Then I will be handing over to Anssi.

Please, Anssi.

Thank you, Esa. Happy to go through the operating result bridge for Q1 year-over-year.

We started from plus €23 million in '25. Then obviously, as was mentioned by Esa, the volume decrease was substantial compared to that.

If we only take the net sales into account, minus €90 million, but of course, the result impact is also quite visible. Also in the price side of things, both in the US and in EU, we came down compared to the previous year's corresponding period.

Last but not least, the negative side on market, in a way, is the FX where the US dollar depreciation basically impacted our result, and this includes hedges also. Then to the positive items, meaning the variable costs and fixed costs, where the transformation program is starting to be visible.

Of course, we have a long way ahead of us. It's a 10-quarter program, but nevertheless, the three quarters that we now have behind us are showing promising results.

Also, what is good to know that the variable cost is a net impact of both decreasing wood costs and also higher electricity costs. It was a quite cold winter this Q1 '26.

In the fixed costs, the majority of those savings are from the personnel-related actions taken on the second half of '25. Metsä Fibre portion of the result that comes to the Metsä Board company is quite sizable also.

This is also related to the market circumstances, as mentioned before. If we take then the bridge from Q4 to Q1, the situation is a bit different.

We can see an uptick in the sales volumes, quite substantial one. Of course, the actual sales volumes are a bit less compared to this graph, but this includes also part of the cost absorption to the inventories as we are preparing for the maintenance season then in Q2, Q3, and Q4.

Some decrease in the price, but also then taking into account the FX impact, as we said in our full-year results, that the €20 million impact is expected to come from foreign exchange rates, including hedges, and this is now it, minus €19 million, quite nicely in line with that. The variable costs compared to Q4, we have lower maintenance activities now in Q1, and then in fixed costs point of view, in a way, same thing, less maintenance activities, and also the transformation program results visible.

Metsä Fibre then again gaining from the high electricity costs, selling electricity to the market, and we get our share of that. In the other, the red column that is last in the slide, is then consisting mostly of the insurance compensation that we had in Q4 related to the Kemi incident, leading us to minus 11.

If we then take a closer look at the transformation program, I think it's actually proceeding quite well. Happy to say that we exceeded already €100 million run rate after Q1, very good work being done.

The target is to diligently pursue towards the end target, €200 million by end of '27, and we have full confidence that this will be met. We are on very good track there.

Already €30 million in the bottom line visible by end of Q1. This is about certain elements that we chase very rigorously, both related to mill level, of course, improving the efficiency there, optimizing the raw material base, but also buying less and buying more smart.

Basically, being better at negotiating, and all the category-related topics in our procurement have been really taken under scrutiny in this approach. Of course, logistics remains a key ingredient in all of this, and the transportation modes and routes has been optimized all the time, and we will find also benefits from that going forward.

Maybe something to note is also, you will hear today a bit more on the commercial side of things, of course, the commercial excellence is a key role. How do we price?

How do we categorize our customers? How do we provide services?

Cash flow, very good job being done in second half of '25 in freeing capital from the supply chain, finding different ways how to improve cash flow there. Of course, now in Q1, we are increasing our inventories going to the maintenance period, this has a direct impact on the cash flow.

We expect it to decrease in Q2, we will see a decline in our inventories. Of course, we have also in Q3, the Husum, and in Q4, Kemi maintenance shutdowns, which means that we will see elevated levels of inventories also going forward, but towards the end of the year, we will free up capital, and this remains a high focus area for us all.

What does this all mean from a balance sheet point of view? I think also relating to the different conflicts in the world and the Iran case, I think it's good to know that we have a solid balance sheet, and we are, of course, very happy about it.

The high leverage ratio that can be seen in the graph is basically driven by low profitability. We have now the tools to improve profitability, and of course, if the market also turns, the situation is a bit better.

We have over half a billion euros of liquidity in the current arrangements, and of course, this provides also comfort in us being able to execute on the strategy. There we go, Esa.

Back to the outlook.

Thank you. Very busy slide, but I will be highlighting some of the items because maybe those issues I will be stressing that have been changing ever since we last time saw each other.

I was saying already that this US demand, now we see that there's a 10 10% tariffs, and in some of the segments, we have been stabilizing the situation with the customer base, and I think that we will be heading back to the growth path gradually with some of the key customers. Then also what I'm seeing here in comparison to the last reports that we have had, this oil and natural gas prices linked to Middle East conflict, and we have been then quantifying that to €10 million roughly in Q2 as a negative impact, so that's the kind of a change from the earlier.

Then the company-specific outlook, as I stated already before, cash flow-based operational steering remains as a priority. Then the cash flows are strengthening in Q2 because of the fact that we will be then releasing capital from our operative networking capital.

At the same time, we see higher activity in the market. Then we are, of course, in H2, we said that we have an mill-specific shutdowns for maintenance purposes in Husum and Kemi.

Kemi is related also to a shutdown of our sister company's pulp mill in there, so that will having an impact on how we build our inventories that we can serve the customers still. Then, as I said, volumes expected to increase in the paperboard side, and energy and wood costs expected to decline in comparison to the Q1.

Fixed costs up due to the maintenance and higher employee costs as well on seasonal basis. Then transformation program measures to further ease the cost structure, of course, and as said, further activities will be taken during the quarter as well.

Those are the company-specific. This is something that we have been keeping our deck for a while because of Husum being in the spotlight because of its losses last year and also in the first quarter, so that's why we're saying that this is a focus area to us in a leadership team, also explaining that there is a clear upside potential by this cost-saving initiatives under the program.

At the same time, we have been increasing the capability of Husum to deliver the European customer base as well with the new sheeted materials through this sheeting hub in Netherlands. Those are the sensitivities that you see that it's pretty sensitive on a currency as well at these wood prices and market pulp price, you can see clearly that it's a big contributor of our profitability currently either to better or worse.

Then what we have been going through the focus areas, I will not go through anymore the summaries, and we jump into the Q&A soon, but just saying that we launched also this new strategy, and Erja will be telling some of the issues on our selection on the customer side. I think that they are very clear in that sense and are already, in my mind, paying off what we have been doing, but in the future as well is an great potential ahead of us.

Husum, we discussed that. Middle East, we have said that we are preparing to do the commercial actions and also, of course, we're discussing with the suppliers on this cost increases and how they can be mitigated in the supply chain.

We are not accepting all the increases and announcements from the supplier side either, we will be challenging them as well and renegotiating as much as possible to mitigate these cost pressures. Then preparing to upcoming mill shutdowns, as I said, it will be tying the capital for the second half of the year.

With these words, thank you for your attention. We will move on to the Q&A, and I think that we will taking first questions from the live audience, if any, and then we jump into the online channel.

If there are any questions from the audience, please.

Joni Sandvall from Nordea. Maybe starting with the overall demand situation.

Have you seen any sequential changes on underlying demand? How you view the current supply-demand in the European space with Husum volumes?

You have to put in the more in the European market, and then you have also Stora Enso ramping up the Stora. Any comments on that?

Yes, well, that's a topical issue. Of course, what we were saying also in the quarterly report was that we see an let's say, increased demand, but that's in seasonal and restocking nature, we don't see any big change in the sentiment of the market as such.

What we are seeing, of course, as I say, in relative terms, I say that our competitiveness is pretty good, and I think that the potential of Husum to be placing better or higher volumes in Europe is pretty good in comparison to the competition that we have in the market. Having said this, you can anticipate that we will not be expecting any, let's say, major boom on the demand or then in the prices either.

The sentiment is staying pretty much the same.

Okay. I think you answered also the pricing question.

Maybe going on the transformation progress, which has been relatively swift now in the early stages. Have you taken the easy wins now, and should we expect maybe moderation of the speed of the progress now going forward?

Thank you very much for the question. I think that it always goes first that, or let's say this way, that there are no low-hanging fruits in this industry.

I think that we have had a pretty disciplined way of working already earlier. Of course, it goes first that you take the lowest-hanging fruits first, and then you will be kind of ending up with a more fragmented base of the initiatives as well and more demanding.

Now we are actually moving into the commercial excellence side of the things as well, and that requires a lot of groundwork and fieldwork with the customers in order then to kind of reshuffle and optimize the mix and customer base.

Okay. Then a question on given Metsä Fibre is taking downtime in Joutseno, how does this affect your CTMP production on that side?

We have been testing it, and we are running also Joutseno while the pulp mill is standing, and it's an efficient mill even without the pulp mill.

Okay. Maybe lastly on the downtimes for H2.

At least on the report, you were speaking about extended maintenance there. Any more flavor of the duration of these maintenance breaks?

I will not go into the details. They are, in that sense, ordinary.

The only thing is that we will have an summer break in Husum, which is an kind of not an normal way of operating a mill, but that is saving costs and actually safeguarding the efficiencies of the mill better that we do it in this way. That means that we have to now build up the stock in Husum, but generally speaking, they are pretty normal.

Okay. I will give floor for others.

Antti Viljakainen from Inderes. I assume that Central European recycled-grade producers are feeling the heat as well from rising energy prices and they most likely need to do something on pricing front.

My question is, do you see any room to take market share from recycled-grade grades during the next 12 months with your FBB product?

Antti, can we do that way that we are coming back to this in the strategy session? It's a really good question because we are actually highlighting and casting some light on how we see the target market, and that answers perfectly to your question.

Erja heard that as well, we'll be answering to that later on.

That would be great. Thank you.

Yes. Yeah.

Any

Joni Sandvall still. Maybe one follow-up question on the sequential impact of the pulpwood expenses.

You are saying €10 million headwind from the logistics and chemicals, should we expect variable costs to decline going into Q2?

I think as mentioned in the outlook and the guidance, I think the €10 million is the impact that we get from the increasing, for example, logistics costs. We don't guide the variable costs per se.

I think the main elements are the impacts from the Iran conflict and the rising energy prices and chemical costs, but also the fact that we are progressing with the transformation program, which should lower the variable costs. At the same time, we have to see how the different maintenance activities that we say that are going to happen in Finland will impact the overall variable costs.

I don't guide the variable costs per se, but I think it's a net impact from these.

Maybe continuing what you were saying is like that if you're looking just in statistics and seeing that the record-high level of prices of wood was last summer, Q2 will for us year-on-year be a bit different in that respect, and you can anticipate that

we are not

worse than a market.

That's right.

Are we having any questions on conference call?

We do have some questions here in chat box. Let's start with commodity containerboard prices are rising sharply at the moment.

How are you seeing the price attempts in your niche virgin containerboard grades? Is it looking harder to achieve?

No,

I suppose the trend has been also if we're looking at the historical kind of a trend, it's like that first the recycled materials go up and then followed by the virgin side, and I don't anticipate that there is any changes in the pattern as such. In that sense, I would anticipate that the prices will increase also in the virgin side.

In a longer term, I will be also discussing this pricing logic a bit in my presentation. Minna is not today here, Minna is a CLT member of ours responsible for the retail packaging, and she's on a sick leave.

I will be covering her part, I will address this later on in my strategy presentation.

Good stuff. Then we have, do you expect to gain market share in European FBB market in coming quarters when shifting volumes from Husum more towards European market?

I think Erja will be covering this topic as well in her presentation, shall we leave that to the?

I can just briefly let's say, manage expectations already. In that sense, of course, at this time, I said that our relative competitiveness is improving against the WLC in a general terms and FBB as well.

Those players that are actually exposed more on the energy side than we are. Of course, at this time, we're testing the market as well that can we grow faster in there.

We have an issue in Husum, that's why we are also in this situation using this fully in our advantage. Then

on costs. We see some upward move in pulpwood in Finland statistics recently.

Are you seeing this as well, or at least at the end of the downward move? If so, when would the pulpwood tailwind stop in your P&L given lags?

The lag is 4 to 6 months on the prices. I'm not kind of commenting on the forward-looking prices of wood either, so that's in kind of a market to determine what will be the price of wood.

At the same time, that is the lag that we have, 4 to 6 months

to our kind of

P&L. Then

you mentioned chemical and logistics, the €10 million in Q2. Is there any lag effect?

Should we expect more headwind into Q3? What grades can you increase prices to offset any future cost inflation?

You have been following very, very closely. We have been following, of course, very closely

with

the Iran control tower, but maybe this is something that you could take, Anssi.

Thanks for the question. I think it's a very good one.

Of course, if we see the Iran conflict continuing and the high oil price and, of course, gas price continuing, it will, of course, have an impact on the operations of this company as well, and we, of course, do our best to safeguard the margin and ensure profitability. This is what we would do anyway, but I think this puts a bit of speed into the machine, in a way.

If we continue to see 100, 110, even above oil prices USD per barrel, of course, it has an impact on the relative cost side compared to, for example, last year. One thing I still note, your question on the variable costs, of course, electricity price remains a key ingredient in the variable costs as well as Q1 was quite elevated through that, Q2 probably not as much.

We don't have any more questions here on chat. Just 5-minute break, and we will be back soon, don't go anywhere.

Thank you.

Thank you.

Thank you, all. Thank you, all.

Welcome back, everyone. Roughly 1 week ago, Metsä Board launched its new Lead the Pack strategy, and today, we will have the first broader public presentation of it.

Here's how we're going to go it through. CEO Esa Kaikkonen will first start framing the strategy, explain about the backgrounds, and also the key priorities of this strategy.

Next, we will have Laura Remes responsible for production and supply chain, and Laura will explain more that how our asset base and supply chain will help executing the strategy. Next, we will move on to the business areas, starting with Erja Hyrsky responsible for commercial operations, and she will be concentrating more on growth.

How are we going to grow in consumer packaging, and how are we increasing more value to our customers? Next, we move on to the retail packaging, where the focus is more on profitability through partnerships.

Unfortunately, our SVP Containerboard Minna Björkman was unable to attend today, but Esa Kaikkonen will do her share. Then finally, CFO Anssi Tammilehto will go through the financial targets of the strategy and how this execution going to translate into shareholder value.

After all this, we will have a joint Q&A here. Again, questions from the audience are welcomed, and then also we have the conference call and open lines.

Again, remember, you can submit questions via the chat throughout the whole event. Now, without any further ado, I hand over to Esa.

Thank you, Katri. Thank you very much, and welcome again to this session, live audience and also people online.

Rather big headline in here, "How to win in permanently changing world." I would maybe translate it in "How to win in a permanently changing packaging world."

Maybe that's and better. This is a maybe too big and covering by Metsä Board's strategy.

Anyway, Metsä Board, as you all know, we are a part of Metsä Group and we haven't looking at the, let's say, history of this company. We have been the past 10 years, we have been expanding and actually building a focused and competitive industrial platform, and this is an strategy where we are about to leverage these investments also going forward.

Seeing that Metsä Group really has invested over €6 billion and we in that been investing something like a little bit less than €2 billion to enlarge our capacity to make it more competitive, make it fossil-free. Laura is explaining how it's all affecting to our numbers and performance on this from climate perspective.

Going through very briefly the current sales. Sales roughly amounting to €1.8 billion.

Emerging markets 15%, Europe being the main market with a 60%, and Americas 25% based on the last year's numbers. Those are the capacity numbers that we have in here.

We have been earlier basing our story on being the biggest and with the capacity and leader based on the capacity that we have. I think that in this world, it's a bit changing.

I think that the leadership has to be assumed from different kind of actions than just building the capacity. We have to be closer to the customers.

We have to move on in the value chain, being more relevant to our key customers, and that's the way to assume the leadership position in the future. This is something that is also explaining today, or my team is explaining, that we are really in a target market of premium paper packaging market, and that's the aim where we are aiming at.

We're not kind of selling everything to everyone, but we are targeting to the premium brand segments, and this is something that you have to take into account throughout the whole presentation. We are secured.

I was explaining already earlier on the energy side, but at the same time, through this sustainably managed forests of our ultimate owners of Metsä Group, we are well secured by the wood supply as well, which is actually giving, in this changing world, also a competitive edge in my mind. Then I'm moving on.

In '25, when we saw that what is happening with our profitability, we moved on and started to implement the transformation program that we have been discussing quite a bit. Working capital management also released some €300 million of cash from our operative networking capital.

We discontinued the investment program, and then we renewed already commercial strategy last year, we have taking all the actions. At the same time, we have been closing some of these capacities that we have in end of the lifecycle, Tako mill was permanently closed in a mid last year.

We have been improving, and those we have been explaining pretty well and seeing that this with all of these actions that we have done, we have turned this EBITDA back to the black numbers. We're happy about the development.

Of course, we have miles to go to be a profitable and less cyclical business with a less cyclical business model, but I will come back to the details is a bit later. This is something that the headline of this my presentation was pointing out that the world is really changing fast.

You have all heard about that the world is turning to be more transactional going forward, and it is. It is, of course, impacting to us very significantly how we are also perceiving our position in the market, and this is something to understand that the supply chains will be more fragmented.

Also these geographical, let's say, nuances that we have had in the business, they come much more important that we are serving those customers that are actually appreciating our value proposition going forward, not that we would be serving all of the customers globally that we have been doing earlier. We have to be very selective when we go out from our core markets, we have to be growing with the key customers.

This transactional world has been, of course, resulting that we have seen an high wood cost when the border of Finland with Russia closed. We had an severe impact on the wood costs in the Nordic countries.

Then we have lost rather significant volumes in Russia as well on the sales side. At the same time, we have seen lately these tariffs impacting negatively to our growth efforts in US.

All of this, and I don't see that this will be kind of going or vanishing or evaporating anytime soon, this will be remaining for quite some time, and this, looking at the historical perspective, I would see that this de-escalation is pretty far away still. Then, while the situation and the world is turbulent, we need a map, of course, and strategy is our map.

Having said this, the DNA of the company, the culture of the company, is also very, very important when we are building the strategy. I have been actually elaborating these earlier as well with you, saying that we really have, even though that we have had to actually cut significantly our employee base and our, let's say, human resources in a last year or so, we still have very committed and highly skilled personnel, and that's a starting point on everything that we do.

Even there are big machines and shiny machines, we need people, and people in Metsä Board, they are committed and they are very, very skilled in what they do. That is, of course, having a great positive impact to our future.

Then we have an long-term customer relationships and really good customer base with the really good selection of key customers as well that we can build the value proposition with. There are a lot of things that we can still safeguard, and I will get back to this a little bit later, but there is a lot of value in the supply chain that we can actually squeeze out together, working closely and being close to the customers.

We can really, really squeeze out a lot of value in my mind. Then I was referring earlier to the investments that we have had.

Based on the investments that we have done, we have an paperboard expertise based on the recent investments and really good, let's say, sustainability performance as well with the unique value chain. No one else has this value chain that I was referring already, that we have a resource base which is close to our mills and in the supply chain where we can really safeguard and retain the supply in all circumstances while we have this resource base on fibers and also affordable energy.

Those are the basis for being competitive. Then why I'm saying that I believe really in this, let's say, business, the packaging business, the fiber-based packaging, and I think that all of the relevant, let's say, arguments that you need are in this slide.

In Europe, we just carried with the Pro Carton, the Association of the Carton Producers in Europe, consumer survey this year, and 85% of the consumers in Europe, they prefer paperboard over plastics. There is an growing demand for a new plastic-free packaging solutions, and that is exactly what we are providing them with the future.

This is something that I'm sure that these pictures that people have seen in the schools, and young generations have seen in the schools, that there is a microplastics everywhere, and you have been actually overloaded all of these concerns, so that has an impact on the market, which we see clearly on this consumer surveys as well. Then we have a Packaging and Packaging Waste Regulation as well advancing in August, taking the effect, and that drives shift to fiber-based and recyclable packaging.

We have an all packaging that has to be recyclable by 2030, and you see that if you compare the plastics, and now again, I'm referring to the target market that will be explaining later on, but if you see the rigid plastic market that will be suffering mostly on this one because there will be some bans even introduced, and then there are, let's say, recycling obligations that are very, very difficult to actually fulfill because of the fact that the plastics are circulating only in Europe in the amount of 40% roughly, while the fiber-based packaging is actually circulating in the packaging or in recyclability loops with the recyclable rate by 80%. That's really, really much, much better performance.

Thus, we see that, for instance, major brand owners covering 20% of the plastic packaging commits already to cut the use of plastics. We have seen like Nestlé has informed that already in 2019 that they are investing to the packaging solutions, have been actually indicating that they have been investing 50 people in Switzerland just to study the packaging solutions in order to be compliant, in order to be efficient, in order to be future-proof for the consumers.

I think it's a good kind of let's say, argument for us to pursue our goals of being providing those packaging solutions that these brand owners don't have to think about the packaging. It's our task to think about the packaging, not those brand owners that are their, let's say, core business is somewhere else.

This is our ambition. First, of course, and foremost, is an immediate profitability turnaround, and that is on the way already with a transformation towards a premium packaging solution company.

It already started, let's say, 2025, and it continues '26, and profitability turnaround and Husum in there is our core of our transformation, of course. Later on, and I will come back to this at the end of my presentation at the end of the session, that we become a premium packaging solution company being a leading partner for premium consumer brand packaging, and that's our aim.

This is everything that I covered on the strategy, how we are doing things. This is where we play as well.

Consumer packaging, we will cover this 56 56% of our business. We are targeting organic growth and inorganic growth as well.

Retail packaging, we are improving the profitability with the value creation through partnerships. We are not aiming to go in the value chain higher.

We want to be a partner with the existing containerboard companies and those that are manufacturing those packages for their customers. Then market pulp, we are having currently an high exposure, and that is also resulting a cyclical business model that we have.

Our cash flows goes up and down pretty much with the pulp market, and this is something that we want to decrease this volatility and stable our cash flows and decrease the exposure of market pulp. For a strategy which is then explained more by my team, we will also follow with the market and with the capital markets also the development of this strategy through strategic KPIs that we have been indicating here.

This is a first call, but there will be a follow-up of our progress in a strategy front. Now, I went a bit over with my time, but I will be squeezing that later on because I have got an second opportunity still today.

Laura, please.

Thank you, Esa. Nice to meet you all.

Laura Remes, and responsible of production and supply chain. I will discuss here now our well-invested assets and our agile supply model for our customers.

We have very strong fundamentals in place, and my organization is focusing on these two strategy execution pillars, safe and streamline. Everything starts with a safety-first culture, and that is a measure which also tells about the top-level production and world-class production.

We have made a very good progress in safety, and we continue to put focus on the safety-first culture. We continue to be the forerunner in sustainability, and the premium quality what we want to produce will increase added value for our customers.

In streamline execution, the key is really in profitability turnaround, which has been discussed here few times. The cost savings, efficiency is the core in our production and supply and logistics.

Continuous improvement is our mindset overall. We have invested over €1 billion over the five past years, and in addition to that, as Esa mentioned, Metsä Fibre has invested €2.4 million euros into Kemi and Äänekoski mills.

That, additional to our €1 billion investment, will also support our energy efficiency, raw material efficiency, and improve in that way also our profitability. Going forward, our plan is to have a tight CapEx allocation.

Where our target is that we will keep our investments below €100 million in annual level, both maintenance investments as well as strategic investments. Future investments will be selective and targeted with focus on energy efficiency and overall operational efficiency.

We have minimal fossil fuel exposure, which in this world situation reduces the volatility and operational risk. 93% of Metsä Board's energy use is fossil-free.

Here you can see the line, which is Paris Agreement alignment 1.5-degree reference level. Ever since 2019, we have already reduced 79% of our emissions, Scope 1 and 2.

The target for us has been minus 52 by end of 2030, we are well ahead of this agreement, and we are very proud of that. In the current situation, as mentioned many times, that the Iran crisis and the increasing oil prices and all that, that will support our competitiveness going forward.

This is a picture where I try to illustrate our continuous operational excellence. Our paperboard production footprint, as we know, is in Finland and Sweden, close to our raw material, wood, and we have this high energy self-sufficiency.

Going forward, we will start measuring more and more our OEE in production, so that's the key metric for us, OEE. We have still some room to improve in OEE, and we have also calculated that that will have a clear impact on our profitability when we go forward and improve our OEE.

In supply, the key measure is on-time in-full, OTIF measure, and that's what the customers really value. We have directly asked that, and that's the measure what we also take in order to be customer-centric also in our supply model.

Earlier this year, we announced the sheeting investment in the Netherlands, as also described already today, and that will improve our business position clearly in Europe. With this very fast sheeting, we send the reels from our operations in Finland and Sweden especially now to Central Europe, and there we can sheet the reels very fast and modify them to our customers.

That has been already started, and we have delivered the first sheets to our customers. Then if we have a look on the US, our supply model, we have a supply as a service for our customers, and that has been very highly valued by our customers.

Our model is very reliable and fast, and with this kind of model what we have in place, we are as a local player for our customers. We are in this kind of circumstances in the world, we can still be reliable supplier, and that's our strength in that market.

This is a traditional way of looking industry competitiveness. We are well-positioned here, the bubbles are the mills in FBB, folding boxboard machines, and then WLC machines in Europe.

This is showing the capacity and then technical age. However, how we see this traditional way is that, as mentioned many times, we have well-invested, well-maintained assets.

Technical age becomes less relevant. Our assets are well-positioned here.

What we can notice here also, these red bubbles, is that industry capacity has also declined, especially now in the WLC. Around 700,000 tonnes of WLC capacity has been closed in Europe.

As we know, these are the mills which are quite heavily run by the fossil fuels, and they will also, going forward, face the pressure of the cost increases. This brings us a very good position in Europe to take a lead here.

We also have closed the Tako mill, as said, and as we know, last year, there's also our Tako mill red bubbles. While this perspective is informative, we see product portfolio, competitiveness, and the premium quality as much more critical factor going forward.

This is the more relevant view in our perspective, and this is also the more relevant view for customers. Our offering is not commodities.

They are specialized, differentiated brands. This picture illustrates our folding boxboard business with the promotion, which is measured by the brightness of the product, the printing quality, the look of the product.

Then we have the another axis here, the protection, which is measured normally with the stiffness of the product. How well we are able to protect the prime product, which the packaging is doing.

Our production units have differentiated technical capabilities and also quality characteristics. Of course, we want to maintain some flexibility between the lines and between the products, or between the mills, but the multi-mill concept is not our core strategy.

We want to deliver exactly the needs what the customers need, and we are also making those specifications to our lines. The flexibility to some extent is needed in a volatile world when some unexpected occasions happen.

As a result here, we see a very loyal customer base who really value this characteristic of our products. Just to summarize this, in this spectrum, we hold very strong position in cartonboard.

Our products can often substitute, for example, this WLC, which is now facing pretty high cost pressure and is struggling in Europe, as well as we can substitute SBS products. Where does that come from is that we can be seen as lightweighted, and our material efficiency more or less, and also our carbon footprint because of this lightweighting is much stronger than in this competing products.

That leads to that one that making reverse substitution is difficult, but we can substitute these other grades because of the promotion and protection premium. I will now welcome Erja Hyrsky now to talk more about the growth.

Welcome, Erja.

Thank you, Laura. I am Erja Hyrsky, and I'm heading the commercial operations.

Over the next minutes, I will walk you through on how we're positioning our consumer packaging business for growth, expanding our addressable market, sharpening our focus on the right segments and customers, increasing the value we create together with our partners. I will also share a concrete example to bring our strategy to life.

From our 4S strategy that Esa was introducing, I will be focusing on the scale pillar, which is all about growth through customer-centricity. The total packaging market that Laura also illustrated by the previous example is very large.

Up until now, we have been competing mainly in FBB and FSB, which is roughly a 20 million tonne market. With our new strategy, we are significantly expanding our target market.

We see real share-gaining potential, particularly from rigid plastics, where roughly 15% of the volumes could be replaced with fiber-based solutions, and from white lined chipboard, where our FBB grades offer clear performance advantages, especially in demanding end uses and especially in food packaging. This addressable market represents a step change in our growth ambition.

We have now defined our target end-use segments being food, food service, and healthcare, where we see strong, long-term structural growth potential. These segments, they benefit from trends in sustainability, regulation, and consumer preferences.

As Esa was also bringing out earlier, that 84% of European consumers, they prefer fiber-based packaging over plastics. Equally important, we have worked on our model to win with our key customers.

This means deeper partnerships with our customers, joint innovation, and sharper commercial approach that links our capabilities directly to the strategic priorities of the brands that we serve. Then looking from a regional perspective.

Europe is our biggest market. It's accounting for 59% of our consumer packaging deliveries in 2025.

As mentioned before, we are strengthening our European service capability now with concrete investments like Winschoten, our new sheeting hub, that really enables faster deliveries that we have been able to do before, and opens up also then the Husum mill in sheets to European market. We are also now working to open during the summer a new design studio in Milan, Italy, which will accelerate then the co-creation and packaging innovation together with our customers.

Those are the big things for Europe. In the Americas, which is then 22% of our deliveries, we are really focused on growth in the premium segments.

As Esa said, the US market remains important despite of the current tariff headwinds for us, and we continue to see demand for our high-quality grades in food and healthcare in in particular across the US US market. Then the emerging markets, and by emerging markets, we mean APAC and Middle East and Africa.

That region accounts 19% of our deliveries. Currently, we have quite modest market share in that area, it opens significant growth potential with key customers in this region.

We also have worked closely with our customers, really listening to them, and then working to crystallize the value proposition that we have, especially around supply chain security, climate leadership, quality excellence, and then regulatory readiness and long-term business continuity. Those are the key of our value proposition.

With a live case example, I will then illustrate how this come to life in practice. Mondelēz International is a global leader in snacking.

They currently hold number one position globally in biscuits and number two position in chocolate. Brands like Oreo, Milka, and Cadbury would be it would be quite big brands that we also recognize, as well as all the other consumers around the world.

This is the type of customer where our value proposition is most powerful: a global brand owner with ambitious sustainability targets, complex supply chain, and a need for packaging partner who can deliver both performance and innovation at scale. Now then to the concrete example of how our strategy then creates additional value to Mondelēz.

For global brand owners like Mondelēz, the key challenge today is building resilient, cost-efficient, and future-ready packaging solutions in this volatile environment while, at the same time, progressing on Scope 3 emissions and material efficiency. This is exactly where we can add value.

Our collaboration is focused on four scalable value drivers, which are here on the slide. First, supply chain security and resilience.

Our integrated Nordic value chain and close joint planning together with the customer ensures reliable availability for launches and promotions. Second, CO2 and material reduction through safe lightweighting.

Laura was also talking about the lightweighting. Our boards enable customers to reduce material use while maintaining performance, delivering cost, emissions, and efficiency benefits at the same time.

Third, plastic reduction through innovation. We support fiber-based alternatives and packaging design innovations that enable our customers move from plastic to fiber where suitable.

Finally, fourth, the operational efficiency and waste reduction. The high and consistent quality of our boards then support the stable converting and packaging operations, which then creates less waste.

It's really critical that the boards run smoothly in the operation and the lines that run really, really fast. For Mondelēz, this collaboration supports three priorities simultaneously: first, improving Scope 3 emissions; reducing material-related costs and regulatory exposure; and finally, securing a long-term supply reliability.

For us, the takeaway is clear: we're not just selling board. We're delivering value models that combine sustainability, cost efficiency, and resilience, which is then fully aligned with our Lead the Pack strategy.

Thank you for this, and then I will be handing over back to Esa.

Thank you, Erja. Thank you, Erja.

Excellent presentation from my team so far. Let's see that how I will be then covering up Minna.

Do I look good today? Yes.

Best regards to Minna. I know that you are there also following this.

Maybe get well soon. This is again, growth and customer-centricity, scale part of of this, and measured by the NPS from the key customers and and also the growth.

Our retail packaging business is really niche and also aimed to be a, let's say, partner in brand packaging. You see on the left of this picture, you see a commodity containerboard, and in comparison to this application that you see on the right, you see also that there's a big difference in this.

We are in the in an external layer of these products, what you see in in there on the retail-ready shelf display. This niche market that I'm explaining, we are a market leader, and we have been we have been seen as a market leader with our capacity of 700,000 700,000 tonnes roughly.

The whole market in the containerboard is huge, it's 200 million tonnes altogether. Out of that, the premium white kraftliner niche market, this premium segment, is 4.5 million, and then you take our capacity currently.

That explains our position currently. We have two good assets in Husum, BM2, and then Kemi paperboard mill that is delivering to this market markets.

The driver in here is that, of course, the brands, I've been maybe referring to this earlier as well, but the brands as such, I think that you see that there is a polarization in the world in many places like that you have in a politics, left and right, and there is no one in the middle. You see it also in here that you have high-value brands and then low-value brands, and there is nothing in the middle.

This is where we come into the picture, and we are aiming, of course, to this high-end segment with the value brands. This is how we see that the brands in the shelves and also seeing that you have a discounters and club stores that are actually offering this space for marketing in this retail-ready shelf displays and retail-ready packaging, generally speaking.

That's an excellent, let's say, marketing space for the brands, and that's why they use it fully in the growing segments. We see that there is a faster growth in this linerboards on the premium segment than in the commodity grades, and there is much fierce competition in this commodity segment.

Currently, we see in Europe, steady growth 1%, and structurally higher growth in the US because of the club store concepts that are growing pretty steadily in the US market. This is where we come into play, and this market of ours in WKL is predominantly in the US.

I have this very, very briefly, but this is our concept as well. Our customers have been also asking many times that whether we are moving to be a packaging solution partner in here.

No, we are not. We want to see the converters as a strategic partners and go through them.

Of course, we have to be closer to the brand owners as well, explaining the value of this, let's say, marketing surfaces that are in the displays and the impact of that when you are turning into the coated materials. The appearance is totally different.

I've been touring around quite a bit of, let's say, retailers by myself in the US and in Europe as well. You really can see the difference between the coated material and uncoated material.

The appearance is much better when you are speaking of a brand packaging. We go through the brand owners and retail.

We are, of course, in a place where we want to kind of build the demand together, pull from the market based on the performance and through that, also higher margins because of, of course, we have to leverage this better visual appearance as well and better, let's say, sustainability results of our products as well. Our aim is to scale through fully dedicated white top kraftliner production, which is really focused after our recent investments in Kemi as well.

Now I took my time, let's say, a little bit that I was spending a bit too much earlier. Now I hand over to Anssi who will then walking through the, let's say, profitability and transformation as a whole.

Welcome, Anssi, again.

Thank you. Quite nicely put so far.

I think it's time to look at the financials and how do we create value with this strategy. A bit more than a month ago, we announced the new financial targets.

Some of them are old and some of them are new. We are starting with the one on the left-hand side.

As mentioned by my colleagues, we are in a growth market. We have a target of over 4% revenue growth annually in consumer packaging segment.

That is a target in this strategy period. Then, of course, we don't just want to sell for the sake of it, but we also need to make profit out of it.

The middle part remains very, very crucial. It's a staged approach, first we will reach, in a way, mid-layer, basically over 8% is the return on capital employed target for '27, '28.

Then from '29 onwards, up to over 12% in return of capital employed. The growth, the profitability, but also taking care of the balance sheet and having a balanced approach.

Of course, we want to take our leverage net debt to EBITDA below 2.5, so that is an existing target. The dividend policy, we haven't changed, but good to know it also that our target is to distribute a dividend of at least 50% of the result for the financial period.

This strategy is divided into two bits. It's obvious that we need to make a turnaround.

We need to make a turnaround quite swiftly. As you can see, the profits are not nearly where we would like them to be, we have a lot of work ahead of us.

We have rolled up our sleeves, and the work is being initiated and actually going quite nicely, as you can see. I've divided this turnaround now into five different buckets where the first two rows have already been largely executed.

Of course, they remain in high focus, but nevertheless, good to make a notion on those anyways. Last year, we were able to reduce our working capital significantly and initiate quite strict capital discipline in the company.

As Esa was mentioning already in the beginning, significant reduction in CapEx, but also in working capital. We will continue on that front.

Then, of course, the personnel costs has been a big contributor in this program, and of course, we will keep that in mind. The three other ones, basically procurement.

I said in the earnings section today that we are basically buying less and more smartly, this is exactly it. Obviously, it's a lot about the mill-level actions, the logistics, and also consolidation of the vendors.

Whether it's IT or different services we buy, of course, we need to be able to manage our suppliers very well, and this is what we are on ongoing basis doing as we speak, actually. Very interesting stuff going on there.

At the site level, it's not only about optimizing the cost base, and of course, we need to reduce the raw materials and increase the OEE where waste is, of course, an important element, but it's also about streamlining and simplifying. We have a lot of complexity built around our complex network in serving the customers.

Now we want to see what is really crucial and focus on that. Of course, without forgetting the customers, I think it's actually creating value for the customer when we focus on the right things.

Then, of course, the commercial excellence, as described by Erja. Really growing in the selected segments and optimizing the margins for the ones we want to deal with and improve the service level.

Goes without saying, our main market, Europe, North America, we want to be even stronger there. This is not only a program, obviously.

We need to turn this into a continuous improvement item, and I think in our strategy, we are elaborating this in the two columns: we have shift and streamline. We want to change the way how do we operate, how do we take use of the new technology.

Of course, we have embedded actions that include AI and new technology, as mentioned, but also the streamline topics. We need to be fostering a culture where we always improve and thrive for better performance and take a significant amount of costs out all the time.

We need to be better, we need to run just in order to stay put. I said go forward, and I will go forward.

I said this in the earnings section also, the transformation program is proceeding very well, and we will continue to execute the program diligently and professionally going forward. It's a 10-quarter marathon, we will have to find, of course, the last savings here and there.

Of course, the beginning is a bit more easy, as mentioned, or nothing is easy, but it's a bit more straightforward. I think we have a very solid plan, and we will execute.

Then if we take a bit of a look at the past, that how have we allocated capital in the past five years. There has been strong operative cash flow, the market conditions have been favorable for us, at least to large extent.

There hasn't been, in a way, major incremental debt during those five years, but there has been a lot of investments. As was mentioned in the beginning, we've invested over €1 billion within these five years in Metsä Board.

Of course, these investments have been made to be competitive and to grow in selected markets. The leverage has been, of course, under 2.5 during those conditions, and there's been room to also invest and also to distribute dividends.

Dividends also plays a major share in this capital allocation previously. Then if we take a look at the capital allocation, how we look at it during this strategy period.

We will focus on the operative cash flow. Obviously, the transformation program and the improvement items are a proof of that, and this is really to maximize cash flow.

Also, you can see the working capital graph in the left-hand side of the slide, putting a lot of focus on working capital. This is really something that we do with Laura, with Erja, with Minna, with all the colleagues and their teams.

You can see the blue line showing the operative networking capital going down. Of course, we have quite an uptick on Q1, but we will manage through that.

Important to know it's also that the turnover rate has been positive for us, and we've been more efficient longer for going onwards from here. I think the new operating model has to be efficient also, and this is something we pay a lot of attention.

That's the operative cash flow, how do we bring cash in. Then we have invested a lot, as mentioned, now we digest.

As mentioned, the maintenance CapEx is only approximately €50 million a year, that's in a way, the committed CapEx. We haven't, of course, made decisions on maintenance going forward, but that's, in a way, roughly the order of magnitude that we need to keep the machines up and running in top notch.

Then we will make strategic investments if the returns meet at least the return on capital employed target going forward. I think that's business case by business case.

Of course, we have good opportunities here and there, and we will then see how it goes. Then we will distribute dividends, of course, if the situation is improving from profitability point of view, because our dividend is really to pay dividends based on the profits.

If we look at the digesting mode where we are currently, I think the current financial base and funding structure actually supports that phase quite well. If we look at the liquidity, which is over half a billion billion euros, consisting of the RCF, 250, and then the other liquid assets and investments, 264, that's already a, I think, a good, in a way, baseline.

On top of that, we have the CP program over €200 million, and then undrawn credit facility from the group, which is already 150, giving us lots of, in a way, room to maneuver if we needed to. From the debt side of things, the maturity is as follows: so basically, in '27, we have one bond out maturing in '27, and then in 2031.

If we then look at the total shareholder value, how do we see things currently? If we look at the history from the left-hand side of the slide, of course, the history hasn't been good.

We all know that. For certain reasons, and of course, decisions are made in time, and the market hasn't been supporting in that sense.

Then if we look at the future, how do we see it? I think the platform is built.

We don't need investments apart from maintenance, as mentioned, and the selected investments, and we have a solid strategy to build on. I will now talk a bit about the, in a way, building blocks of how do we create value in the future.

I think the bedrock is the cost savings in this company, and as mentioned, that's already progressing quite nicely. If we take a look at the €200 million transformation program, we have now met 100 approximately €100 million of the EBITDA improvement, and out of that, of course, costs play a huge role.

That's the, in a way, beginning. Then, as mentioned, we are in a growth market, 4% CAGR until the end of this strategy period.

This will, of course, have an impact on our possibilities to grow, and this is our target to really capture the market opportunities. Then the transformation program really entails also commercial excellence, and also the streamlining and simplifying our operations, which is also one other building block that we can see creating value throughout the strategy period.

Then if there would be tailwind from the market, that is, of course, something we cannot influence in, including the wood costs, but it is, of course, something that would impact this platform that we have now built in the past and continue to build in the strategy period. That concludes my part, and I think we are ready to take questions.

Come everybody to the stage

so

we take the joint Q&A. Maybe this time we can now first check that whether there are any questions online, can we please open the conference call lines?

Clear. Any questions here in the audience?

Did you, Antti, already get an answer to your?

Yes, I think that I got, but I have some others as well. Market hasn't really grown during the last years in FBB side due to various reasons, but you are still keeping the growth rate expectations somewhat similar to history.

How confident are you that these growth rate estimates will hold this time, and if they don't, what do you need to change in your strategy execution?

That's an very good question, and I think that we have been hammering this question quite a bit with the BOD as well, Board of Directors, and with the team as well. I think that this is something that with the new business model, we have to be really closer to the customers.

We have to understand the customer, let's say, pains better, we have to understand the, let's say, the situation, what kind of solutions they are seeking, and then provide solutions that would be fit for the purpose. This is something that we are really committed to do as well.

We have to also create this market. We have been discussing quite a bit on the sustainability statements, and we have been discussing on the sustainability, and we haven't been actually able to commercialize our commitments on the sustainability.

Now we have to have bulletproof data to our customers to show the value, the true value, what comes to the materials and what comes to the climate and what comes to the overall efficiency and sellability of these products as well. It's our task to create the business model with this, let's say, elements that we have been discussing today, which is actually, let's say, growing the market as well for our materials, but packaging solutions, generally speaking.

We have been partly discussing as well that how committed we are. Of course, currently, we have to sell the FBB and the mills full, that's for sure.

At the same time, in a longer term, looking at the packaging solutions, I think that we have to be open for other materials as well that are partly maybe even cannibalizing what we're doing currently, but at the same time, growing and providing those solutions to the market. That's in a longer horizon.

I'm sure we are 100% committed to this strategy and 100% sure that we can do this.

Okay. Secondly, regarding the Husum mill that was loss-making last year in Q1, you have three production lines in Husum.

Correct me if I'm wrong, but I assume that all of these three lines are loss-making. Which one of these lines is most difficult to turn first to break-even and second to the sufficient profitability level?

That's a really good question. In a way, if I would have an crystal ball, I would be immediately answering to you that which is the, but it depends really on the market.

Of course, all of these have a different reasons for this, like pulp side, pulp mill is in difficulties because what we see in the market, that it's in decline currently, and then we have the wood situation, which is kind of burdening the profitability of our pulp. Pulp actually, there is a four business lines there because there are in a market pulp, there is hardwood and softwood, both of them.

Then BM2, which is then WKL, and then BM1, which is a FBB. For different reasons, they are where they are.

The, let's say, the most important thing is that we get the volumes up, and that's we are committed to do. That's where these, let's say, levers that I was talking, the sensitivities that we were discussing, actually leveraging the kind of a good profitability going forward.

It has been actually providing rather handsome cash earlier years to this company. Selling Husum full is the most important thing that we have at the table currently.

Thank you.

Yes, thanks. Joni Sandvall from Nordea.

Maybe starting from the European market, I know that European producers have traditionally been using exports to balance the market situation. You were quite much speaking about trade barriers and this situation to hold.

What needs to happen? Do you need export markets where I think it's more Chinese volumes flowing on those?

Should something change before supply-demand can to be more normal in Europe?

Of course, it has been for FBB producers and folded products producers important to have this emerging markets as well, and especially Middle East, Turkey have been the markets that we have been placing volumes. For us, the most important overseas market has been US, and it stays that way.

Then through these, let's say, brand owners that are then present elsewhere, that's our route to market. We are not seeking any, let's say, easy solutions here, and we have to really work with the existing brand owner customers to actually grow the market, which is healthier than it was earlier.

It is not easy.

Okay. Then maybe follow-up on that.

Have you seen any changes on demand for, let's say, security over the price, if you are thinking customers? You are speaking quite a lot of key customers, do you need some changes in the customer base before you can start growing on the top line?

I don't think so. It is like that we see in many customers, and I think that Erja could follow this as well, follow up with me later on.

The fact is that if I'm looking at the customers and when we are discussing with the customers, the most important, let's say, KPI that they are following is on-time in-full. We are not measured by euros per tonne, we're measured by the on-time in-full that we are reliably delivering what we have been promising and what we have been agreeing.

That's the key customers, and with the key customers, I'm sure, and we have seen it as well, that many of these customers earlier, they had, in some of the, let's say, geographies, they had a global supplier base. Now we see a consolidation and more fragmented supplier base, and in these markets where we are, let's say, present and in those places where we can really supply without the barriers, I think that we can have a better share of wallet from these key customers going forward based on our reliability.

Maybe, Erja, you can take it from there if you have.

I think from key customers' point of view, that's exactly the point. I think the strength that Esa mentioned in the beginning, the long-standing, strong customer relationships that we have, and I've been touring quite a bit in different markets, seeing different customers, and I've been super happy to see that, and really proud of the team how well established many of the relationships are.

I might still add that we're always also looking for new opportunities, whether it's about new customers, new brand owners, new converters, or even new markets. Okay.

Maybe question on the M&A front. I'm a bit surprised that you have it in the strategy, what are you lagging currently on, let's say, production or supply side?

Of course, in this situation where everybody's a bit suffering on different reasons, some are not competitive, and some are seeing that this partly supply-demand balances are having an impact on the demand, in that sense, on our side, it is something that we are looking for and opportunities in that, that if there are opening avenues for improved situation of the company and value creation, then we are taking, of course, those opportunities and elaborating whether these are actually creating a value for Metsä Board's owners. Then excluding these kind of things in these kind of turbulent times would be, I think, that it wouldn't be very wise.

That's why we have been opening this avenue. Then

lastly maybe to Anssi about the '27 bond. Are you currently expecting tapping on the bond market or how to deal with this?

Thanks. That's an excellent and topical question.

We haven't made any decisions yet, but of course, we are planning and preparing for that topic, but nothing to add in that sense.

Thanks.

In the meanwhile, I could take a couple questions here from the chat, and Anssi, the first one, I would point to you. This is regarding the transformation program as well.

Actually, two questions, I will put this together. First one is that what are the key risks that could prevent this €100 million EBITDA improvement that we just reported run-rate savings from fully translating into reported earnings?

Then another question related to program was that what's your volume assumption behind the €200 million euro EBITDA run rate?

Good questions. In the baseline, we have H2 and H1, H2 in '24 and H1 in '25, so that's the baseline where we calculate everything.

Of course, the volume is a bit different there, so that creates a, in a way, difference into this world where we are currently. Of course, our volumes are lower, for example.

This is something that we take into account in the execution of the program, and of course, we don't just, in a way, stop there. We need to find more opportunities.

We have over 400 initiatives, and we are constantly seeking for more. We will reach the €200 million target no matter what, and this is, of course, highly on the agenda, and I don't see any, in a way, huge risks.

Maybe I would highlight, however, the Iran case. Of course, we need to adjust here and there, and the turbulence in the market, namely the conflict in Middle East, of course, changes a bit how do we see things progressing, but of course, we have different mitigating actions, and I am sure we can pull that off.

Good question.

Absolutely, yes. Then quite many questions regarding US and our FBB sales in there.

Starting that how do our prices in FBB compare with SBS prices in US? Has it changed over the recent years?

How much of the Husum mill was exported before, and how much do you think that this will fall in the future as you react to the tariffs?

I can first regarding these pricing issues and so forth. I think that in a price point-wise, SBS and FBB are bit different because of the fact that the lightweight material that we are delivering there is differing from the cost base and from the performance point of view as well.

In that sense, but generally speaking, of course, folded materials are trend-wise, they're following the SBS pricing as such, and we have seen that if I'm not speaking of a future prices again, but I would say that it has been flattening this SBS prices, and thus our prices have been also pretty flat in a recent times. This is something that we have seen now that because of the US SBS assets aging, we have seen some closures as well there, so that actually improves the balance going forward.

I'm sure, again, our target is to do customer-specific and key customer work in there, and I said that we are heading to a growth path with the key customers going forward, and I'm sure that the prices will be set in a basis that we can grow. I can't say anything more.

Absolutely. Then

regarding to the question on Husum and how much is then for the Americas market, I think we have shared that before, that Husum has been in particular important for the US market, and that's why now Europe is a sheet market, and we haven't had any capabilities in Husum to sell our paperboard in sheets. That's why we're all talking about the Winschoten sheeting hub, because that opens up then the European market from Husum, which, of course, gives us then a leverage.

We will still continue delivering from Husum to US, for sure.

Absolutely.

Absolutely.

As well as to the emerging markets, full global approach from Husum. Okay.

Then

other questions as well related to that. Are you coming up against new SBS volumes from Sappi in the US, and how do you see them as competitors?

What are your landed costs for FBB sales to the US now, and how does that compare with the prices offered by SBS peers?

I think that that question is, let's say, we are selling our value based on the FBB, and we do our customer work only in that way. In that way, also comparing us to the SBS or hearing too much of SBS, that we don't actually hear too much because when we are discussing with the customers, we are discussing about our value proposition, and clearly, our lightweighting and sustainability story is resonating with the premium brands.

I can't say anything more regarding this. I don't kind of know what Sappi is doing, or that it would be of my matter.

I think competition is always good. It keeps us on the toes

and

developing on our front, so.

Yes. Absolutely.

What would you do if your US margins are negative for an extended period, and what markets could take these volumes? Maybe I start again in a way saying that we have been in the market even with a worse situation with the US dollar exchange rate, for instance, and a difficult situation what comes to the energy and energy crisis that happened in '22, etc.

In that sense, I don't see that we have been there for decades, and I don't see that there would be anything that would change that in any way going forward. We are allocating more resources there as we speak, and put an effort on growth path.

Erja, maybe you can follow.

I think it's it's also it's all about the basics also, doing the the customer work, continuing the the long-standing work with the customers that we've have already served for for quite many years, but then focusing really on the premium premium brand owners and and finding also new opportunities, which would be healthy opportunities for us going going onwards, so. Those are those are probably a couple of things I would lift up.

Okay. Then, what is the magnitude of OEE improvement potential identified,

and

how much of that can be realized without CapEx? This goes to Laura.

Yes. Thank you.

Very good question. I can promise that that's the number what I look every single day for every single mill, every single line.

We have promised to reveal the OEE numbers later on, and at this point, we will not give them precisely. If I have a look on now the OEE numbers, there is room to improve for sure, and we have been internally calculating how much even 1 percentage point improvement means in a profitability.

That's work what we are doing currently, and maybe some point, we will reveal some numbers as well.

Okay. Then one very short and very popular question here to the end.

This is the last one, at least in here. Under what circumstances would you close another mill?

What an ending! In no circumstances.

Good ending. Any more questions here in the audience?

Joni, please.

Maybe one question still, given the tightening ETS market in the Europe, and you have invested on lowering the CO2 emissions. Could you open up a little bit if this is something that could open up competitive advantage for you compared to, let's say, European competitors?

Maybe I go first and then then you can you can follow it up. The fact is that the ETS1 ended for this year, and this year, we will not receive any any free allocation as such.

We have an old allocation of ETSs,

and

we are selling them. In a first quarter, we did it with the €5 million, and we we still can continue this year.

Having said this, ETS is an highly political animal as we speak, and it's kind of on the table of the European Commission, it's really difficult to make any projections that how it all kind of unfolds in in that sense. At the same time, we see, of course, clearly that while the competition and generally speaking the European if if that holds, let's take that as a as a assumption that all all of this legislation all of these laws that are applicable, this ETS scheme, stays as they are, I think that it, of course, gives us an and no free allocation will be or reallocation will be done.

In that sense, it would, of course, increase our or improve improves our competitiveness against those that haven't been doing these reductions on the fossil fossil energy. We have we have been really forerunner in this industry for doing that.

Of course, every CO2 actually emission so that that you have to buy actually kind of lowers your profitability and competitiveness against us while we have a kind of 93% of of our energy is fossil-free. Anything else that?

I think it covers it quite well.

Of course, we have made the investment decisions, and this is one, in a way, element in those calculations that we have taken into account. Difficult to speculate, as you mentioned, but of course, we build our business cases around the facts and our own projections of the scheme future.

Thanks.

Okay. I think we're going to conclude this Q&A session, and before we're going to end the whole event, we still take Esa's final closing remarks.

At this point, I want to thank on my behalf, for very good and active participation, excellent questions. As always, we at Investor Relations are very happy to continue the dialogue.

The next live event what we will have or webcast event will be beginning of August when we will publish our half-year results. Now, I will Esa to conclude the event.

Thank you, Katri. Thank you, and thank you for the live audience and people online as well for being a good attention to this presentation.

For the last slide, I wanted to just kind of show a bit and illustrate a bit for vision of ours going forward, being a leading partner for premium consumer brand packaging, and our purpose being packaging a positive future. Why is that?

I think that that makes all of my leadership teams to tick in everyday and come to the work and being enthusiastic on delivering what we have been promising. I was stating that earlier, we were discussing on the topic that what is the leadership going forward?

Leadership is not based in the future on the capacity that you own. You have to own and respect of the customers and be close to the customers.

We were discussing on the future or the premium brands, that there are big, let's say, polarization going on, that the premium brands will be even more premium going forward, and you have a kind of other end is an low-value brands, and we are delivering for the premium consumer brand packaging, and that's our aim as per our vision. The leadership for us in the future means that we are a category leader, meaning that we know the packaging.

The customers don't need to actually invest to the packaging solutions. We are the ones that know this best, and we have all the data that is available to have these proof points on the value as well going forward.

Then quality leader means that we will be providing our brand owners with the transparency on the product data and clear evidence of the impact, the value impact that we were discussing as well. At the same time, we see great kind of opportunity on being a tech leader as well going forward.

We have seen that the startups are collecting already quite good money on these packaging solutions in the markets. The only thing that they are lacking is the value chain data.

They already do pretty good graphic designs and also structural designs for the packaging, but they don't have that evidence on how the packaging is performing, what comes to the sellability, compostability, and recyclability of the packaging materials, and where to procure those. Our ecosystem, we really know all the players in the market, and we can pull all the kind of solutions that our customers are in need, and that can be done all in the tech basis.

Currently, we have a system and service kind of offering that is providing the services to the customers when they want to design a new packaging for their products and secure the sellability, but that's based on different kind of manual work and mockups, etc. In the future, I'm pretty sure that that can be done based on the data that we have at hand with the technologies that are of the future.

With these words, our aim is to actually win in the market, be the leader in the market, and lead the pack going forward, and really according to the purpose, packaging a positive future. Thank you.