President and CEO Ilkka Hämälä's presentation 10th of February 2022

2. 10 February 2022
Metsä Group’s Full Year Results 2021
Ilkka Hämälä
President and CEO

3. • Sales EUR 6,017 million (2020: EUR 5,055 million)
• Operating result* EUR 914 million (368)
• Operating result* 15.2% of sales (7.3)
• Return on capital employed* 16.2% (7.1)
• Sales and operating result in 2021 improved mainly due to higher
sales prices of pulp
• Result in 2020 was weakened by the strikes at the Finnish mills
• Exchange rate fluctuations had a negative result effect of
approximately EUR 125 million
• Metsä Group advanced its investment projects as planned. Cost
inflation in construction materials and steel raised the cost estimates
10 February 2022 3
Excellent result for Metsä Group
Metsä Group – Result 2021
*comparable

4. • The average prices of pulp were roughly at the level of the
previous quarter in Europe, while the prices in China declined
• Demand for paperboards remained strong and their average
prices increased
• Metsä Group launched a ten-year programme outside
commercial forests in Finland supporting development projects
improving biodiversity and the state of waters
• Metsä Board agreed on the divestment of the share capital of
Hangö Stevedoring to Euroports Finland
• The European Commission launched an investigation into
Metsä Fibre as part of a wider EU-level anti-trust investigation
of companies active in the wood pulp sector
10 February 2022 4
Events in the fourth quarter
Metsä Group – Result 2021

5. 10 February 2022 5
Sales
Metsä Group – Result 2021
EUR million
5,040
5,709
5,473
5,055
6,017
0
1000
2000
3000
4000
5000
6000
7000
2017 2018 2019 2020 2021

6. 10 February 2022 6
1,216 1,235 1,260
1,328
1,428
1,477
1,386
1,419 1,438
1,372 1,374
1,290
1,253
1,200
1,245
1,357
1,400
1,542 1,515
1,560
0
200
400
600
800
1 000
1 200
1 400
1 600
Q1/17 Q2 Q3 Q4 Q1/18 Q2 Q3 Q4 Q1/19 Q2 Q3 Q4 Q1/20 Q2 Q3 Q4 Q1/21 Q2/21 Q3/21 Q4/21
Sales quarterly
EUR million
Metsä Group – Result 2021

7. 10 February 2022 7
Comparable operating result
Metsä Group – Result 2021
EUR million
566
849
495
368
914
0
200
400
600
800
1000
2017 2018 2019 2020 2021

8. 10 February 2022 8
128
119
134
185
208 210
223
208
180
128
110
76
62
96
115
94
174
242
278
220
0
50
100
150
200
250
300
Q1/17 Q2 Q3 Q4 Q1/18 Q2 Q3 Q4 Q1/19 Q2 Q3 Q4 Q1/20 Q2 Q3 Q4 Q1/21 Q2/21 Q3/21 Q4/21
EUR million
Comparable operating result, quarterly
Metsä Group – Result 2021

9. 10 February 2022 9
Change in comparable operating result
EUR million
Comparable operating result Q1–Q4/2020 368
Sales prices 738
Sales volumes 83
Exchange rates (after hedging) -125
Change in wood raw material unit costs -17
Change in raw material, energy and other variable costs unit costs -165
Employee costs -64
Maintenance and other fixed costs 16
Change in inventories (including volume and valuation) 73
Depreciation and other 8
Comparable operating result Q1–Q4/2021 914
Metsä Group – Result 2021

10. 10 February 2022 10
Items affecting comparability
EUR million Q1–Q4/2021
OPERATING RESULT (IFRS) 874
Items affecting comparability:
Items related to the impairments of the existing Kemi pulp mill 38.2
Sale of a land area not related to Metsä Board’s business operations -7.0
Costs of the fire on the chip conveyor at Husum pulp mill 4.5
Impairment in the current paperboard production assets of Husum 4.6
Items affecting comparability, total 40.2
COMPARABLE OPERATING RESULT 914
Metsä Group – Result 2021

11. 12.3
16.8
9.6
7.1
16.2
0
4
8
12
16
20
2017 2018 2019 2020 2021
10 February 2022 11
Comparable ROCE
Metsä Group – Result 2021
%
Target > 12%

12. 10 February 2022 12
Equity ratio
45.0
53.1
56.2 57.2
61.1
0
10
20
30
40
50
60
2017 2018 2019 2020 2021
%
Metsä Group – Result 2021

13. 10 February 2022 13
Interest-bearing net liabilities
Metsä Group – Result 2021
993
463
374
168
-185
-300
0
300
600
900
1 200
1 500
2017 2018 2019 2020 2021
EUR million

14. 10 February 2022 14
Capital expenditure
631
274 260
401
994
0
200
400
600
800
1000
1200
2017 2018 2019 2020 2021
EUR million
Includes investments in leased fixed assets.
Metsä Group – Result 2021

15. 10 February 2022 15
Personnel
Metsä Group – Result 2021
9,126 9,310 9,265 9,213
9,533
0
3 000
6 000
9 000
12 000
2017 2018 2019 2020 2021

16. • In Finland, wood trade by private forest owners
in 2021 was clearly more active than in 2020
• The weather conditions for harvesting were good
• Deliveries to the customers were carried out well.
Metsä Group delivered 35.3 million m3
of wood (32.7)
• Strong demand for sawn timber increased the
price of logs. The price of pulpwood increased,
but returned to the level at the start of the year
• Ecological sustainability programme was
complemented by nature management of
commercial herb-rich forests
10 February 2022 16
Wood trade was active in Finland
Metsä Forest – Wood Supply and Forest Services
Sales and comparable operating result
EUR million
526
508
474 465
431
471
449
469
517 507 497 503
11.3
5.6
5.0
5.6
3.4
3.9
6.2
8.9
8.4
6.7
11.3
10.0
0
3
6
9
12
15
18
0
100
200
300
400
500
600
Q1/19 Q2 Q3 Q4 Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4
Sales Operating result
Comparable operating result, EUR million 2021 2020
36.4 22.4

17. • Metsä Wood’s sales and profitability increased, due
to the strong demand in all product categories and
main markets
• Sales prices of plywood and Kerto® LVL increased
• Increased raw material, energy and logistics prices
and challenges in the availability of birch logs
decreased profitability
• The market situation for the products of the UK
converting business weakened during Q4 2021
• Metsä Wood is planning a new Kerto LVL mill in
Äänekoski. The investment decision requires the
e.g. detailed plan for the area and the
environmental permit
10 February 2022 17
Profitability of the Wood Products Industry
improved from the previous year
Metsä Wood – Wood Products Industry
111
119
111
93
87
104
122
117
141
156
142 141
1.8
3.3 3.1
-1.1
-3.3
1.3
6.6
4.7
7.0 6.8
5.4
-0.7
-4
0
4
8
12
16
20
-30
0
30
60
90
120
150
Q1/19 Q2 Q3 Q4 Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4
Sales Operating result
Sales and comparable operating result
EUR million
Comparable operating result, EUR million 2021 2020
18.6 9.3

18. • Sales and operating result increased thanks to the
increase in the sales prices and delivery volumes of
both pulp and sawn timber
• Worldwide demand for market pulp declined com-
pared to the previous year, particularly in China. The
consumption grew in Europe
• Demand for sawn timber was good and the average
prices increased compared to the previous year
• Construction of the bioproduct mill in Kemi and the
sawmill in Rauma is progressing as planned
• The bioproduct mill investment’s cost estimate has
risen to around EUR 1.85 billion
10 February 2022 18
Excellent result for Pulp and Sawn Timber Industry
Metsä Fibre – Pulp and Sawn Timber Industry
623
556 567
490
412 428
459
528
561
652
693
722
122.4
83.1
33.2
9.9
-21.3
16.0 17.1
-8.0
72.1
168.0
225.9
182.3
-40
0
40
80
120
160
200
240
280
-100
0
100
200
300
400
500
600
700
Q1/19 Q2 Q3 Q4 Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4
Sales Operating profit
Sales and comparable operating result
EUR million
Comparable operating result, EUR million 2021 2020
648.2 3.9

19. • Operating result improved thanks to the increased
prices and delivery volumes for paperboards, and
the increased pulp prices
• Cost inflation was rapid. Raw material, energy and
logistics costs increased
• Exchange rate fluctuations had a negative result
impact of around EUR 56 million
• Renewal of Husum pulp mill recovery boiler and
turbine is progressing, the start-up is in Q3 2022
• Metsä Board invests EUR 210 million in increasing
its folding boxboard capacity in Husum
10 February 2022 19
The paperboard market continued very strong
Metsä Board – Paperboard Industry
487 477 489 478 472 473 471 473
494
556
516 518
61.8
41.0 42.5
39.1
33.8
60.5 62.5 64.5
88.8
102.5 104.0
91.3
0
20
40
60
80
100
120
0
100
200
300
400
500
600
Q1/19 Q2 Q3 Q4 Q1/20 Q2 Q3 Q4 Q1/21 Q2 Q3 Q4
Sales Operating result
Sales and comparable operating result
EUR million
Comparable operating result, EUR million 2021 2020
386.6 221.2

20. • Raw material and energy costs increased
significantly, especially late in the year
• In H1 2021, sales of tissue paper were clearly lower
as coronavirus restrictions reduced demand for
professional products. Sales picked up towards the
end of the year
• The sales of greaseproof papers grew from 2020
• A new production line for tissue papers was started-
up in Raubach, Germany
• The Mariestad investment project is progressing as
planned. The company is also planning to invest in a
tissue paper mill in the UK
10 February 2022
20
Tissue papers’ profitability decreased due to increased
costs and lower sales volumes
Metsä Tissue – Tissue and Greaseproof Papers
267 266 263 264
293
224
237
258
224 224
239
259
10.5
13.5
22.8
26.6
40.5
23.6 22.7
27.1
16.4
0.7
-3.7
23.2 -30
-15
0
15
30
45
60
75
90
-100
-50
0
50
100
150
200
250
300
Sales Operating result
Sales and comparable operating result
EUR million
Comparable operating result, EUR million 2021 2020
-9.7 113.8

21. • The demand for engineered wood products is expected to
remain good, as construction activities remain robust
• Demand for long-fibre pulp is expected to remain good in Europe
and to grow in Asia
• The demand for sawn timber is expected to strengthen in
the spring
• The demand for paperboards is expected to remain good. The
average prices of folding boxboard and white kraftliners are
expected to rise
• Demand for tissue papers is expected to increase as the
restrictions related to the pandemic are lifted
• Growth trend in greaseproof paper demand continues
• Cost inflation is expected to continue
Market outlook
10 February 2022
Summary

22. Metsä Group’s comparable operating result is
in January-March 2022 expected to be roughly
at the same level as in October-December
2021.
Near-term result outlook
10 February 2022
Summary

23. Your partner in sustainable growth