- Metsä Group's sales and operating result increased in Q1 2022 particularly due to higher pulp prices. The demand for paperboard, sawn timber, LVL and plywood remained strong.
- The profitability of tissue paper suffered from high energy costs. Investment projects progressed on schedule despite high cost inflation.
- Metsä Group discontinued Russian operations and divested holdings in Finsilva and Hangö Stevedoring. Veolia will build a methanol plant using bioproduct mill side streams.
- Market demand is expected to remain strong for pulp, paperboard, sawn timber and LVL, but cost inflation and uncertainties from Ukraine war and China pandemic create risks. Metsä Group
@9999965857 🫦 Sexy Desi Call Girls Karol Bagh 💓 High Profile Escorts Delhi 🫶
Metsä Group's interim report Q1/2022
1. 28 April 2022
Metsä Group Interim report
Q1/2022
President and CEO Ilkka Hämälä
2. • Sales EUR 1,594 million (Q1/2021: EUR 1,400 million)
• Operating result* EUR 244 million (174)
• Operating result* 15.3% of sales (12.4)
• Return on capital employed* 15.8% (12.6)
• Sales and operating result increased particularly due to the higher
sales prices of pulp
• The paperboard market continued to strengthen. The demand for
sawn timber, LVL and plywood remained good
• The profitability of tissue paper business suffered from the cost
inflation caused by energy prices
• The investment projects progressed as planned, although cost
pressure remains high
28 April 2022 2
Very strong result for Metsä Group
Metsä Group – Q1/2022
*Comparable
3. • Metsä Group discontinued wood sourcing and sawn timber
production in Russia, as well as paperboard and tissue paper
sales to Russia and Belarus
• Metsä Group divested its holding in Finsilva
• Metsä Board sold the entire share capital of Hangö Stevedoring
to Euroports Finland
• Veolia announced to build a crude methanol refinery at the
Äänekoski bioproduct mill site, utilising the mill’s side streams
3
Events during the first quarter
Metsä Group – Q1/2022
28 April 2022
6. 6
Change in comparable operating result
EUR million
Comparable operating result Q1/2021 174
Sales prices 205
Sales volumes -11
Exchange rates (after hedging) 3
Change in wood raw material unit costs -19
Change in raw material, energy and other variable costs unit costs -115
Employee costs -10
Maintenance and other fixed costs -6
Change in inventories (including volume and valuation) 19
Depreciation and other 5
Comparable operating result Q1/2022 244
Metsä Group – Q1/2022
28 April 2022
7. 28 April 2022 7
Items affecting comparability
EUR million Q1/2022
OPERATING RESULT (IFRS) 341
Items affecting comparability:
Divestment of the holding in Finsilva Oyj -78
Sale of the share capital of Oy Hangö Stevedoring Ab -19
Adjustment measures concerning Kemi Shipping Oy 1
Items affecting comparability, total -97
COMPARABLE OPERATING RESULT 244
Metsä Group – Q1/2022
13. • Wood trade in private forests in Finland was weaker
than during Q1/2021
• The price of logs increased, and the price of
pulpwood was at the same level as Q1/2021
• Harvesting and transport conditions were excellent
• Deliveries to customers were carried out well,
excluding birch logs. A total of 9.0 million m3 (9.6) of
wood was delivered
• Ecological sustainability programme was expanded.
Rare natural broadleaved trees will not be felled in
the future
• Metsä Group pays a double bonus on thinned trees
purchased from members between May and August
2022
13
Wood deliveries were good
Metsä Forest – Wood Supply and Forest Services
Sales and comparable operating result
EUR million
431
471
449
469
517
507
497
503
517
3.4
3.9
6.2
8.9
8.4
6.7
11.3
10.0
5.6
0
3
6
9
12
15
18
380
400
420
440
460
480
500
520
540
Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4 Q1/22
Sales Operating result
28 April 2022
14. • Delivery volumes decreased but sales prices
increased clearly in all product categories
• Higher raw material, energy and logistics prices and
challenges in the availability of birch logs affected
profitability negatively
• The weak market situation for products of the UK
upgrading business continued
• Change negotiations were conducted at the plywood
mills for adjusting the birch plywood production
• The planning of Kerto LVL® mill in Äänekoski is
progressing. The local administrative court’s
decision on the local detailed plan is expected
during 2022
14
Profitability of Wood Products Industry improved
Metsä Wood – Wood Products Industry
87
104
122
117
141
156
142 141
170
-3.3
1.3
6.6
4.7
7.0 6.8
5.4
-0.7
9.1
-4
0
4
8
12
16
20
24
-30
0
30
60
90
120
150
180
Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4 Q1/22
Sales Operating result
Sales and comparable operating result
EUR million
28 April 2022
15. • The result was improved by the higher sales prices
of pulp and sawn timber compared to Q1/2021
• The demand for softwood market pulp has remained
strong in Europe and at a good level also in China
• In sawn timber, demand remained good in Europe
and North Africa
• Metsä Fibre announced plans to end sawn timber
production in Kyrö
• The investment projects are progressing as
planned, although cost pressure continued. The
Rauma sawmill will start-up in Q3/2022
• The operations at the Svir sawmill in Russia
were discontinued
Strong performance of the Pulp and Sawn Timber
Industry continued
Metsä Fibre – Pulp and Sawn Timber Industry
412 428
459
528
561
652
693
722
673
-21.3
16.0 17.1
-8.0
72.1
168.0
225.9
182.3
155.4
-40
0
40
80
120
160
200
240
280
320
-100
0
100
200
300
400
500
600
700
800
Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4 Q1/22
Sales Operating result
Sales and comparable operating result
EUR million
28 April 2022 15
16. • The operating result improved especially due to
higher paperboard prices
• The increased price level of market pulp improved
profitability as well
• Cost inflation continued and profitability was
strained by the increased prices of chemicals,
energy and logistics, in particular
• The investments in Husum and Kemi are
progressing as planned. The recovery boiler and
turbine of the Husum pulp mill will be in use in
Q3/2022
16
The paperboard market continued very strong
Metsä Board – Paperboard Industry
472 473 471 473
494
556
516 518
582
33.8
60.5 62.5 64.5
88.8
102.5 104.0
91.3
121.5
0
20
40
60
80
100
120
140
0
100
200
300
400
500
600
Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4 Q1/22
Sales Operating profit
Sales and comparable operating result
EUR million
28 April 2022
17. • The raw material and energy costs increased
significantly. The implemented tissue paper price
increases did not adequately offset the higher costs
• The sales volumes of tissue paper increased from
Q1/2021, especially in products for professional use,
as the pandemic restrictions were lifted
• The sales of greaseproof papers were slightly short
of the previous year’s figures
• The environmental permit of Mariestad investment
project is expected to be issued in H2/2022
17
Heavy cost inflation burdens the result of Tissue and
Greaseproof Papers
Metsä Tissue – Tissue and Greaseproof Papers
293
224
237
258
224 224
239
259 255
40.5
23.6 22.7
27.1
16.4
0.7
-3.7
-23.2
-18
-30
-15
0
15
30
45
60
75
90
-100
-50
0
50
100
150
200
250
300
Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4 Q1/22
Sales Operating profit
Sales and comparable operating result
EUR million
28 April 2022
18. • The war in Ukraine and the pandemic in China create uncertainties
in the market
• The demand for Kerto LVL and plywood remains good, as
construction remains robust
• The demand for softwood pulp is expected to remain good
• Sawn timber demand is expected to remain at a good level in
Europe, North Africa and Japan
• Paperboard demand is expected to remain good. The average
prices of folding boxboard and white kraftliners are expected to rise
• Tissue paper sales are expected to remain stable or increase
slightly, barring new pandemic restrictions
• Cost inflation is expected to continue
Market outlook
Summary
28 April 2022
19. Metsä Group’s comparable operating result
is in April–June 2022 expected to improve
from January–March 2022
Near-term result outlook
Summary
28 April 2022