Slides
Page 1
Metsä Metsä Group's Half - year review H1 / 2026 Jussi Vanhanen President and CEO 6 August 2026
Page 2
Current issues The cooperative distributes income across Finland Near-term outlook Contents Financials
Page 3
Good safety development continued Focus on the safety of summer employees. Updated long-term safety roadmap supports continuous improvement. 12.1 10.6 8.7 8.1 6.7 6.1 5.2 4.0 3.8 195 170 137 133 107 96 82 62 0 50 100 150 200 0 5 10 15 20 Accident frequency (TRIF) TRIF, own personnel Number of accidents
Page 4
Q2/2026 profitability improved compared to previous year, and relative competitive position strengthened. Cost savings supported profitability despite the headwinds from the Middle East conflict. Mariestad tissue paper mill was inaugurated and the first Äänekoski Kerto LVL line reached commercial production. Q2 / 2026 Main events Q2/2026 main events
Page 5
5 KPMG assessment: Metsä Group’s strong impact extends across the domestic economy Value added that stays in Finland EUR 3.4bn EUR 930m Tax revenues create wellbeing Jobs across Finland 30,000+ The assessment is based on KPMG’s analysis of data from 2023–2025.
Page 6
A Group-wide AI acceleration programme ongoing Focus on productivity, operational excellence and customer value Strategic partnerships accelerate AI adoption Accelerating AI across Metsä
Page 7
Financials
Page 8
186 88 224 151 197 68 39 128 129 70 -13 113 33 81 -37 -72 -4 -3 -100 0 100 200 300 Q1/24 Q2 Q3 Q4 Q1/25 Q2 Q3 Q1/26 Q2 Comparable EBITDA Comparable operating result EBITDA and operating result improved year-on-year but remain far from target Sales EUR 2,741 million (H1/2025: 3 069) Operating result* EUR -7 million (H1/2025: 44) EBITDA* EUR 257 million (H1/2025: 265) *comparable EUR million
Page 9
9 EUR 300 million cost reductions on track to exceed the target EBITDA impact (run-rate, risk adjusted) of the actions implemented 0 100 200 300 400 EUR million Q4’25 Q1’26 Q2’26 Q3’261 Q4’261 Realised quarterly impact in EBITDA, EUR million (cum) Target of EUR 300 million (estimated to be reached in Q3 2026) 9 Main actions in Q2/2026: • Optimised raw material use and efficient product logistics and wood supply • Lower rates through supplier consolidation and increased competition in sourcing and logistics • Cutting fixed and discretionary costs
Page 10
Lower costs supported the result, headwinds from sales prices and exchange rates Cost savings and lower wood cost supported profitability despite cost pressures from the Middle East. Sales decreased by EUR 330 million due to lower sales prices. Exchange rates, higher depreciation and slightly lower volumes also weakened the result. Comparable operating result bridge H1/2026 (Actual vs. previous year actual) EUR million Negative impact on the result Positive impact on the result Changes in comparable operating result from H1/2026 to H1/2025 -171 -27 -61 106 -7 30 44 100 -24 -41 44 -7 -250 -200 -150 -100 -50 0 50 100
Page 11
80 100 120 140 160 Price development, indexed, 2022–2026 Europe USD FOEX PIX Europe EUR net price China EUR net price Source: Fastmarkets FOEX PIX, Metsä Fibre 11 Q2/2026 softwood pulp prices 15% lower than Q2/2025 Pulp price indexes no longer reflect actual prices Pulp prices indexed, 2022/01 = 100
Page 12
Cost savings partly offset by impacts of the Middle East conflict Comparable operating result bridge Q2/2026 (Actual vs. previous quarter actual) EUR million Negative impact on the result Positive impact on the result Cost improvement measures and lower wood costs had a positive effect. Oil-driven cost increases in logistics and raw material. Changes in comparable operating result from Q2/2026 to Q1/2026 -4 -23 2 5 26 -26 16 -3 -13 17 0 -3 -30 -25 -20 -15 -10 -5 0 5 10
Page 13
Cash flow was better than a year ago driven by lower investment activity Reduced investments and own cost improvement measures improved cash flow. Lower EBITDA generation and an increase in working capital weakened cash flow year-on-year. Free cash flow H1/2026 (Actual vs. previous year actual) EUR million
Page 14
56,2 56,8 55,8 0 10 20 30 40 50 60 70 2024 2025 H1/2026 Equity ratio % Strong equity ratio and stable level of debt is a solid foundation A solid equity ratio reflects a strong capital structure and resilience against market volatility. 1 236 1 288 1 564 -200 100 400 700 1 000 1 300 1 600 2024 2025 H1/2026 Interest-bearing net liabilities EUR million
Page 15
65,4 30,3 27,6 7,4 -1,8 -40 0 40 80 120 160 Metsä Fibre Metsä Board Metsä Tissue Metsä Forest Metsä Wood Comparable EBITDA , EUR, million Business area results: Profitability improved but remained insufficient Volume growth and efficiency measures turned Metsä Board’s result positive. Demand for pulp was weak. Joutseno mill temporary curtailment continued in Q2/2026. Mariestad mill was inaugurated, strengthening capacity and service in Scandinavia. One-third of wood was procured from FSC- certified or Metsä Group Plus managed forests. Major business transformation weighed on Metsä Wood, ad energy costs on Metsä Tissue.
Page 16
Forest owners’ cooperative provides wealth across Finland
Page 17
17 Owner-members received approximately EUR 112 million in wood trade income in Q2/2026 137 115 130 191 174 142 150 183 187 132 169 194 214 127 144 156 171 112 2 3 3 3 3 3 3 3 3 3 3 3 4 3 3 3 3 2 -1 1 3 5 7 9 11 13 15 0 50 100 150 200 250 Q1/22 Q2 Q3 Q4 Q1/23 Q2 Q3 Q4 Q1/24 Q2 Q3 Q4 Q1/25 Q2 Q3 Q4 Q1/26 Wood trade income Bonuses from wood trade EUR million Wood trade income 2025: EUR 641 million Wood trade income 2022: EUR 573 million Wood trade income 2023: EUR 649 million Wood trade income 2024: EUR 682 million EUR million Wood trade income H1: EUR 283 million
Page 18
18 Private forest wood supply declined year-on-year 500 1 000 1 500 2 000 2 500 1 2 3 4 5 6 7 8 9 10111213141516171819202122232425262728293031323334353637383940414243444546474849505152 1,000 m³ 2026 2025 2024 2023 Weekly wood purchase from private forests by members of the Finnish Forest Industries Federation, representing around 80% of all wood trade Source: Finnish Forest Industries
Page 19
• Impact of cost saving actions continues to ramp-up well, however, the Middle East conflict is putting pressure on logistics and chemical costs. • Extended production shutdowns, low operating rates and weak pulp markets weigh on pulp business. • Improving paperboard prices and demand support the operating environment in H2/2026. • Weak construction outlook in Europe continues constrain demand for wood products. • Tissue paper demand will remain stable but with some long-term growth. Outlook: Ongoing cost savings are essential as the geopolitical conflicts continue