Interim report
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" y " Metsä Metsä Board Half - year financial report 1.1 . - 30.6.2026 -HUMAN BY METSA BOARD HUMAN 13:42 SPORTWATCH HUMAN BY METSA BOARD -HUMAN BY METSA BOARD HUMAN 13:42 HUMAN 13:42 SPORTWATCH SPORTWATCH DIYNINDAS ZVEL NYWH
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Page 2/32 Half-year financial report 1 January–30 June 2026 Profitability improvement on track January–June 2026 (compared to 1–6/2025) • Sales were EUR 825.6 million (940.9). • The comparable EBITDA was EUR 47.0 million (57.3), or 5.7% of sales (6.1). EBITDA was EUR 39.8 million (50.9). • The comparable operating result was EUR -7.7 mil- lion (0.1), or -0.9% of sales (0.0). Operating result was EUR -14.8 million (-25.5). • Comparable earnings per share were EUR -0.04 (-0.02), and earnings per share were EUR -0.06 (-0.08). • Comparable return on capital employed was -0.4% (0.2). • Net cash flow from operations was EUR -61.8 mil- lion (-38.1). April–June 2026 (compared to 4–6/2025) • Sales were EUR 431.9 million (460.1). • The comparable EBITDA was EUR 30.3 million (6.1), or 7.0% (1.3) of sales. EBITDA was EUR 26.9 million (7.1). • The comparable operating result was EUR 3.1 mil- lion (-22.7), or 0.7% (-4.9) of sales. Operating result was EUR -0.3 million (-21.7). • Comparable earnings per share were EUR -0.01 (-0.06), and earnings per share were EUR -0.02 (-0.06). • Comparable return on capital employed was 0.8% (-3.3). • Net cash flow from operations was EUR 8.7 million (-10.1). Events in April–June 2026 • Comparable operating result turned positive for the first time since early 2025. The Husum integrated mill remained loss-making. • Delivery volumes of paperboard increased com- pared with Q1/2026. • Seasonality and preparations for upcoming major shutdowns at the Husum and Kemi integrated mills increased paperboard production volumes. • By 30 June 2026, the transformation programme had delivered an annual run-rate EBITDA improve- ment of approximately EUR 135 million, with ap- proximately EUR 45 million realised in reported EBITDA. • The rise in oil prices caused by the conflict in Iran led to increased logistics costs in particular. • Cash flow from operations took a positive turn from the previous quarter, and working capital manage- ment remained a key focus of operational control. • Metsä Board concluded a binding loan agreement to secure the refinancing of its EUR 250 million bond maturing in September 2027. • Demand for market pulp and price levels remained subdued in Europe and China. The market-driven production curtailment at Metsä Fibre’s Joutseno mill continued throughout the second quarter. • Metsä Board expanded its climate targets to in- clude emissions from the end of its products’ life cycle and received SBTi validation for its targets. Metsä Board’s CEO Esa Kaikkonen: “Our profitability continued to improve in Q2/2026. Comparable operating result returned to a positive level for the first time since Q1/2025, amounting to EUR 3.1 million (Q2/2025: EUR -22.7 million). The result was supported by growing paperboard volumes and the sys- tematic implementation of efficiency improvement and cost-saving measures. The Husum integrated mill con- tinued to make a loss in the second quarter, and im- proving its profitability remains one of our top priorities. Demand for paperboard strengthened in Q2 compared with Q1, reflected in higher delivery volumes in both the Consumer Packaging and Retail Packaging busi- nesses. At the same time, our market share in folding boxboard increased slightly in Europe. The order inflow for both businesses at our Finnish mills was stronger than last year. Average prices for both folding boxboard and white kraftliners began to rise towards the end of the review period, which is a positive trend. Our transformation programme is making good pro- gress. By the end of June, the measures taken had re- sulted in an annual improvement in EBITDA (run-rate) of approximately EUR 135 million, which already repre- sents a significant portion of the EUR 200 million target for 2027. The effects of the programme’s commercial development projects are expected to begin showing gradually in the second half of the year. The cost environment during the second quarter was affected by rising oil prices resulting from the conflict in
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Page 3/32 Half-year financial report 1 January–30 June 2026 Iran, which led to an increase in logistics costs in partic- ular. The impact was broadly in line with our earlier ex- pectations, excluding the effect of the commercial measures implemented. However, our high level of en- ergy self-sufficiency and rigorous cost control supported our competitiveness even in this operating environment. Cash flow from operations strengthened, amounting to EUR 8.7 million in the second quarter (Q1/2026: -70.5; Q2/2025: -10.1). Effective management of working cap- ital remained a key focus of our operational manage- ment, and we expect the release of working capital to support cash flow in the second half of the year as well. Global demand for long-fibre market pulp and its price level have remained weak this year. The weak market conditions were also evident at Metsä Fibre’s Joutseno pulp mill, where production has been at a standstill since the end of March due to market conditions. Alt- hough the recovery in demand still appears to take time, production cuts and capacity closures in Europe may gradually help strengthen the market balance in the second half of the year. The outlook for the rest of the year is affected by long shutdown periods at the Husum and Kemi integrated mills, Metsä Fibre’s low utilisation rates and the contin- ued weak development of the pulp market. In addition, the effects of the conflict in Iran are placing upward pressure on logistics and chemical costs in particular. These factors are key to the company’s result develop- ment in the second half of the year. In the long term, the growing need for renewable and recyclable packaging solutions among consumers and brand owners, as well as increasingly stringent regula- tions, will support demand for fibre-based packaging. We are strengthening our competitive position by work- ing even closer with our customers and developing our supply chain, service capabilities and packaging inno- vations to better meet their needs. Examples include our new sheeting capacity in the Netherlands and pack- aging design studio in Milan. These measures are ex- pected to strengthen our market share and competitive position, as well as support long-term profitable growth in line with our Lead the Pack strategy.”
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Half-year financial report 1 January–30 June 2026 Page 4/32 Key figures 2026 2025 2026 2025 2025 Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 Sales, EUR million 431.9 460.1 825.6 940.9 1,775.7 EBITDA, EUR million 26.9 7.1 39.8 50.9 -3.9 comparable, EUR million 30.3 6.1 47.0 57.3 29.6 EBITDA, % of sales 6.2 1.5 4.8 5.4 -0.2 comparable, % of sales 7.0 1.3 5.7 6.1 1.7 Operating result, EUR million -0.3 -21.7 -14.8 -25.5 -169.5 comparable, EUR million 3.1 -22.7 -7.7 0.1 -80.2 Operating result, % of sales -0.1 -4.7 -1.8 -2.7 -9.5 comparable, % of sales 0.7 -4.9 -0.9 0.0 -4.5 Result before taxes, EUR million -5.0 -26.3 -24.4 -33.6 -186.9 comparable, EUR million -1.7 -27.2 -17.2 -7.9 -97.5 Result for the period, EUR million -5.6 -22.4 -22.3 -27.3 -164.6 comparable, EUR million -2.7 -23.2 -16.3 -6.7 -92.2 Earnings per share, EUR -0.02 -0.06 -0.06 -0.08 -0.44 comparable, EUR -0.01 -0.06 -0.04 -0.02 -0.24 Return on equity, % -1.4 -4.6 -2.6 -2.8 -9.0 comparable, % -0.6 -4.8 -1.9 -0.7 -5.0 Return on capital employed, % 0.2 -3.2 -1.0 -1.8 -6.9 comparable, % 0.8 -3.3 -0.4 0.2 -3.1 Equity ratio ¹⁾, % 58 63 58 63 60 Net gearing ¹⁾, % 21 22 21 22 15 Interest-bearing net liabilities/comparable EBITDA, 12 months roll- ing 17.7 2.9 17.7 2.9 8.6 Shareholders’ equity per share ¹⁾, EUR 4.18 4.94 4.18 4.94 4.48 Interest-bearing net liabilities ¹⁾, EUR million 340.8 429.8 340.8 429.8 254.8 Total investment, EUR million 10.7 19.0 24.3 35.1 139.5 Net cash flow from operations, EUR million 8.7 -10.1 -61.8 -38.1 239.6 Personnel ¹⁾ 1,961 2,374 1,961 2,374 1,939 ¹⁾ at the end of the period Delivery and production volumes 2026 2025 2026 2025 2025 1,000 tonnes Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 Delivery volumes Folding boxboard 222 240 427 488 890 White kraftliner 138 120 260 240 474 Metsä Board’s market pulp ¹⁾ 91 86 169 186 368 Metsä Fibre’s market pulp ²⁾ 181 148 362 369 720 Production volumes Folding boxboard 246 221 470 512 856 White kraftliner 166 97 280 236 464 Metsä Board’s pulp ¹⁾ 253 246 539 563 948 Metsä Fibre’s pulp ²⁾ 172 171 378 385 694 ¹⁾ Includes chemical pulp and high-yield pulp (BCTMP). ²⁾ Equal to Metsä Board’s 24.9% holding in Metsä Fibre.
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Half-year financial report 1 January–30 June 2026 Page 5/32 Sales and profitability April–June 2026 (compared with 4–6/2025) Sales for April–June 2026 were EUR 431.9 million (460.1). Folding boxboard accounted for 53% (57) of sales, while 30% (26) of sales came from white kraft- liner, 12% (12) from market pulp, and 4% (5) from other operations. The comparable operating result improved clearly and was EUR 3.1 million (-22.7), and the operating result was EUR -0.3 million (-21.7). Items affecting compara- bility totalled EUR -3.4 million. A more detailed break- down of these items can be found on page 23 of this in- terim report. The comparable operating result was boosted by higher production volumes of folding boxboard and white kraft- liners, as well as increased delivery volumes of white kraftliners. Delivery volumes of folding boxboard de- creased. Average prices for paperboard and market pulp were lower than in the comparison period, with folding box- board experiencing the greatest decline. Exchange rate fluctuations, including hedges, had a negative impact of around EUR 12 million on the oper- ating result. Lower costs for wood, chemicals and energy reduced variable costs. Fixed costs were significantly lower as a result of the ongoing transformation programme and the closure of the Tako mill. The maintenance costs of the mills were also lower than before. Unused emissions allowances were sold for a total of approximately EUR 5 million (5). The associated company Metsä Fibre accounted for EUR -5.5 million (-8.8) of Metsä Board’s comparable operating result in April–June. Metsä Fibre’s compara- ble operating result was weighed down by lower euro- denominated sales prices of market pulp. The impact was mitigated by lower costs and increased sales of by- products. Financial income and expenses totalled EUR -4.7 mil- lion (-4.5), including EUR -0.6 million (-0.6) of foreign exchange rate differences on trade receivables, trade payables, financial items and the valuation of currency hedging instruments. The result before taxes was EUR -5.0 million (-26.3). The comparable result before taxes was EUR -1.7 mil- lion (-27.2). Income taxes amounted to EUR -0.6 million (3.9). Earnings per share were EUR -0.02 (-0.06). Return on equity was -1.4% (-4.6), and the comparable return on equity -0.6% (-4.8). Return on capital employed was 0.2% (-3.2), and the comparable return on capital em- ployed 0.8% (-3.3). April–June 2026 in brief (compared with 1–3/2026) Sales in April–June were EUR 431.9 million (393.7), and the comparable operating result was EUR 3.1 mil- lion (-10.8). The comparable operating result was supported by higher production and delivery volumes of paperboard
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Page 6/32 Half-year financial report 1 January–30 June 2026 and the company’s own cost-saving and efficiency im- provement measures. Among variable costs, energy costs in particular fell, while logistics and wood costs rose due to higher fuel prices resulting from the conflict in Iran. Fixed costs were pushed up by seasonally higher personnel costs and annual mill maintenance. Metsä Fibre accounted for EUR -5.5 million (-5.3) of Metsä Board’s comparable operating result in April– June. January–June 2026 (compared with 1–6/2025) Metsä Board’s sales were EUR 825.6 million (940.9). Folding boxboard accounted for 54% (58) of the sales, while 30% (25) came from white kraftliner, 12% (12) from market pulp, and 4% (4) from other operations. The sales decreased mainly due to lower folding box- board deliveries and average prices, as well as weaker market pulp sales and adverse currency effects. The comparable operating result was EUR -7.7 million (0.1), and the operating result was EUR -14.8 million (-25.5). Items affecting comparability totalled EUR -7.1 million in the review period. A more detailed breakdown of these items can be found on page 23 of this interim report. Total paperboard deliveries in January–June were 687,000 tonnes (727,000), of which 60% (57) was deliv- ered to Europe, 26% (29) to the Americas, and 14% (14) to emerging markets. Market pulp deliveries were 169,000 tonnes (186,000), of which 66% (72) was deliv- ered to Europe, and 34% (28) to emerging markets. In the review period, the comparable operating result weakened especially due to lower delivery volumes and average prices of folding boxboard. The impact was greatest in the United States, where import tariffs re- duced demand. In contrast, delivery volumes of white kraftliners grew. Exchange rate fluctuations, including hedges, had a negative impact of around EUR 24 million on the oper- ating result compared with the comparison period. Among variable costs, the costs of wood and chemicals in particular decreased. Fixed costs were significantly lower as a result of the ongoing transformation pro- gramme and the closure of the Tako mill. The mainte- nance costs of the mills were also lower than in the comparison period. Unused emissions allowances were sold for approxi- mately EUR 10 million (10). The associated company Metsä Fibre’s share of Metsä Board’s comparable result for January–June was EUR -10.7 million (-3.3). Metsä Fibre’s comparable operating result was weighed down by lower euro-denominated sales prices of market pulp. This result was supported by lower wood costs, internal efficiency improvement measures and growth in the sales of by-products. Financial income and expenses totalled EUR -9.6 mil- lion (-8.0), including exchange rate differences on trade receivables, trade payables, financial items and the val- uation of currency hedges of EUR -1.4 million (-1.3). The result before taxes was EUR -24.4 million (-33.6). The comparable result before taxes was EUR -17.2 mil- lion (-7.9). Income taxes amounted to EUR 2.1 million (6.3). Earnings per share were EUR -0.06 (-0.08), and com- parable earnings per share were EUR -0.04 (-0.02). Re- turn on equity was -2.6% (-2.8), and the comparable re- turn on equity -1.9% (-0.7). Return on capital employed was -1.0% (-1.8), and the comparable return on capital employed -0.4% (0.2). Cost savings and profitability improvement (Transformation programme) On 31 July 2025, Metsä Board launched a transfor- mation programme aimed at increasing annual EBITDA by EUR 200 million on a run-rate basis by the end of 2027. In addition to cost savings, the programme fo- cuses on strengthening commercial capabilities as well as simplifying and improving operational efficiency. By 30 June 2026, the measures implemented under the transformation programme had achieved a combined annual run-rate EBITDA improvement of approximately EUR 135 million with approximately EUR 45 million re- alised in reported EBITDA. The improvements have primarily resulted from stream- lining mill cost structures, enhancing procurement effi- ciency, reducing logistics costs and permanently reduc- ing the number of work tasks. The impact is further sup- ported by profitability improvement measures at the as- sociated company Metsä Fibre and efficiency improve- ments in Metsä Group’s shared services. Commercial development initiatives are progressing according to plan, and their effects are expected to become gradu- ally visible from the second half of the year onwards, particularly through improvements in pricing, customer segmentation and service models. Annual cost savings are measured against the average cost structure of the period H2/2024–H1/2025. Profita- bility improvement is measured based on annualised EBITDA, calculated from the actual figures of the sec- ond and third quarters of 2025.
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Page 7/32 Half-year financial report 1 January–30 June 2026 Cash flow and investments 2026 2025 2026 2025 2025 EUR million Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 EBITDA 26.9 7.1 39.8 50.9 -3.9 Adjustments, net financials and income taxes -6.9 -0.9 -10.7 -11.0 12.2 Change in NWC -11.4 -16.3 -90.9 -78.0 231.3 Cash flow from operations 8.7 -10.1 -61.8 -38.1 239.6 Investments, disposals and other items -4.2 -15.3 -14.0 -22.3 -121.7 Cash flow after investing 4.5 -25.4 -75.8 -60.4 117.9 Net cash flow from operations in January–June 2026 was EUR -61.8 million (1–6/2025: -38.1). During the review period, working capital grew as a re- sult of increased inventory and a decrease in trade re- ceivables. Business activity was higher than in the com- parison period, which increased working capital com- mitment. Preparations for major production shutdowns planned for the end of the year in Husum and Kemi also contributed to the growing inventories. As part of the ongoing transformation programme, a to- tal of EUR 300 million in working capital was freed up in the second half of 2025. The management of working capital will continue to play a key role, and market- driven production cuts will continue unless the demand situation improves. Investments In January–June 2026, overall investments totalled EUR 24.3 million (1–6/2025: 35.1), with development investments such as business acquisitions accounting for some 45%, and maintenance investments for some 55%. Of total investments, the company’s own property, plant and equipment amounted to EUR 14.9 million (33.8), and leased property, plant and equipment to EUR 9.3 million (1.3). In 2021–2025, Metsä Board invested approximately one billion euros to strengthen its growth, competitive- ness and environmental efficiency. In line with its strat- egy, the company is now focusing on fully leveraging its investments, and no significant growth investments are expected during the current strategy period. Total in- vestments in 2026 are expected to be well below EUR 100 million, with maintenance and repair invest- ments accounting for approximately EUR 40–50 million. Balance sheet and financing At the end of the review period, Metsä Board’s equity ratio was 58% (31 December 2025: 60) and the net gearing ratio was 21% (15). The ratio of interest-bear- ing net liabilities to comparable EBITDA in the previous 12 months was 17.7 (8.6). Interest-bearing debt totalled EUR 637.7 million at the end of the period (31 December 2025: 564.5). Of the to- tal, 38.2% consisted of floating-rate debt and the rest was fixed-rate debt. The average interest rate on liabili- ties was 2.9 % (2.9), and the average maturity of non- current liabilities was 2.7 years (3.1). The interest rate maturity of loans was 13.9 months (18.3). During the review period, Metsä Board secured the refi- nancing of its bond maturing in September 2027 through a committed financing arrangement. The facility can be drawn if a new bond is not issued before the maturity date. Interest-bearing net liabilities totalled EUR 340.8 million (31 December 2025: 254.8). The available liquidity was EUR 546.5 million (31 De- cember 2025: 559.3), consisting of liquid assets and in- vestments of EUR 296.5 million and a syndicated credit facility (revolving credit facility) of EUR 250.0 million. Of the liquid assets, EUR 293.2 million consisted of short- term deposits with Metsä Group Treasury, and EUR 3.3 million consisted of cash funds and investments. In addition to items reported as liquidity, the liquidity re- serve is complemented by Metsä Group’s internal short-term credit facility of EUR 150 million and a EUR 200 million commercial paper programme currently un- used. The fair value of other non-current investments was EUR 113.4 million (31 December 2025: 186.2). The change in value was related to the change in the fair value of Pohjolan Voima Oyj’s shares. An average of 8.3 months of the net foreign currency exposure was hedged, including the hedging of the bal- ance sheet position of trade receivables and trade pay- ables. Metsä Board has investment grade credit ratings from S&P Global and Moody’s Investor Service. Metsä Board’s rating by S&P Global is BBB-, with a negative outlook. The company’s rating by Moody’s is Baa3, with a negative outlook.
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Half-year financial report 1 January–30 June 2026 Page 8/32 Employees At the end of June 2026, Metsä Board had 1,961 em- ployees (30 June 2025: 2,374), of whom 1,039 (1,333) were based in Finland. In January–June, Metsä Board employed 1,905 people on average (1–6/2025: 2,314). Personnel expenses in January–June totalled EUR 93.3 million (109.8). The decrease in the number of employees compared with the comparison period is a result of structural changes implemented during 2025. The closure of the Tako paperboard mill, along with the change negotia- tions conducted as part of the transformation pro- gramme, resulted in a reduction of more than 500 jobs in total. As a result of the changes, some of the person- nel found new positions within Metsä Board or Metsä Group. Due to weak market demand and the resulting adjust- ments to production, Metsä Board may implement tem- porary layoffs at all its mills in Finland in 2026, depend- ing on the demand situation. Market development The table below summarises the development of paperboard deliveries by Cepi members, as well as market prices for paperboard in Europe and the USA, in local currencies. PIX pulp price developments are reported in USD. European PIX price changes are based on gross prices and do not reflect discounts. All price changes are calculated based on average prices over the review period. Sources: Fastmarkets FOEX, Fastmarkets RISI, Pro Carton, CEPI Containerboard. H1/26 vs H1/25 Q2/26 vs Q1/26 Q2/26 vs Q2/25 Paperboard deliveries, Cepi members Folding boxboard, Europe decreased stable decreased White kraftliner, Europe stable decreased significantly decreased significantly Market price of paperboard in local currencies Folding boxboard, Europe decreased significantly increased decreased significantly White kraftliner, Europe stable increased significantly increased Solid bleached board, USA decreased significantly stable decreased significantly Food service board, USA stable stable stable -1% < stable < +1%, increased (decreased): +1…+3% (-1%...-3%), increased significantly (decreased significantly): > +3% (< -3%) Market prices of pulp, PIX¹⁾, USD Long-fibre pulp, Europe, gross, % 5 5 5 Short-fibre pulp, Europe, gross, % 15 13 16 Long-fibre pulp, China, net, % -12 -4 -12 Short-fibre pulp, China, net, % 6 4 9 ¹⁾ European PIX price changes are based on gross prices and do not reflect period-specific discounts, which impact realised net price development. Therefore, net price development may differ from that of gross prices.
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Half-year financial report 1 January–30 June 2026 Page 9/32 Business overview Metsä Board produces premium, recyclable fresh fibre paperboards, primarily used in packaging for consumer goods such as food and pharmaceuticals, as well as in retail packaging solutions. The company’s customers include international brand owners, packaging convert- ers and merchants, and its main market areas are Eu- rope and North America. Metsä Board is part of Metsä Group and owns 24.9% of its associate company Metsä Fibre, the world’s leading producer of softwood market pulp. Metsä Board is 90% energy self-sufficient, covering most of its electricity de- mand through its own generation as well as purchases from Metsä Fibre and Pohjolan Voima at cost price. Metsä Board’s business areas are Consumer Packag- ing, Retail Packaging and Market Pulp. Consumer Packaging comprises folding boxboard, with an annual capacity of approximately 1.4 million tonnes, while Re- tail Packaging covers white kraftliners, with a capacity of approximately 0.7 million tonnes per year. The Mar- ket Pulp business includes the production of chemical pulp and BCTMP, totalling approximately 1.7 million tonnes annually. The financial reporting of the business areas is conducted at the Group level. Consumer Packaging business In January–June, Metsä Board’s folding boxboard deliv- eries amounted to 427,000 tonnes (488,000), of which 62% (57) was delivered to Europe, 17% (23) to the Americas, and 20% (20) to emerging markets. In Europe, Metsä Board’s most important market, deliv- eries were lower during the review period than in the comparison period. However, demand picked up signifi- cantly in the second quarter compared with the first quarter. The market balance in Europe continued to be affected by increased paperboard imports from China and capacity growth in Europe. In the Americas, deliveries decreased by more than a third during the review period compared with the com- parison period, mainly due to lower food service paper- board deliveries. In the U.S., demand has been im- pacted by 10% import tariffs. Despite the changing mar- ket conditions, the company is taking proactive com- mercial measures to maintain its strong market position and close customer relationships in the United States. The average euro-denominated price of folding box- board remained below the comparison period level, partly due to the weaker U.S. dollar. However, prices started to increase towards the end of the review pe- riod. The total production volume of folding boxboard was 470,000 tonnes (512,000). Retail Packaging business In January–June, Metsä Board’s white kraftliner deliver- ies were 260,000 tonnes (240,000), of which 55% (56) was delivered to Europe, 42% (41) to the Americas, and 3% (2) to emerging markets. In Europe, deliveries increased from the comparison period, supported by a strong second quarter. Demand also strengthened in the Americas. The average euro-denominated price of white kraftliner remained below the comparison period, mainly due to the weaker U.S. dollar. However, prices started to in- crease towards the end of the review period. The total production volume of white kraftliners was 280,000 tonnes (236,000). Production during the com- parison period was limited by a lengthy maintenance shutdown at the Kemi bioproduct mill, which also halted the production of white kraftliners. Market Pulp business Metsä Board’s market pulp deliveries (including BCTMP) totalled 169,000 tonnes (186,000) in January– June. Europe’s share of deliveries was 80% (65), while emerging markets accounted for 20% (35). The associated company Metsä Fibre’s total pulp deliv- eries amounted to 1,453,000 tonnes (1,481,000). Demand and price trends for market pulp remained subdued in both Europe and China. In Europe, market pulp supply tightened due to several extended shut- downs among producers during H1 2026. The market- driven production curtailment at Metsä Fibre’s Joutseno mill, which began at the end of March, continued due to weak market conditions and a low order backlog in Asia. Metsä Board’s pulp and high-yield pulp production vol- umes totalled 539,000 tonnes (563,000). Strategy and financial targets 2026–2030 Metsä Board’s Lead the Pack strategy aims to strengthen the company’s position as a leading partner for consumer brands in sustainable packaging solu- tions. The strategy is implemented in two phases: first focusing on restoring profitability and cost competitive- ness, followed by a shift towards growth in resource-ef- ficient and recyclable consumer packaging solutions. Financial targets for the strategy period have been set for Consumer Packaging sales growth, return on capital employed, and the net debt to EBITDA ratio.
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Half-year financial report 1 January–30 June 2026 Page 10/32 Strategy execution The execution of the strategy is guided by four strategic pillars – Safe, Shift, Scale, and Streamline – each sup- ported by clearly defined KPIs that are regularly moni- tored and reported. Safe focuses on safety, quality and sustainability, with TRIF as the key metric. Shift drives capability develop- ment and organisational renewal, measured through the People Power Index. Scale supports customer- driven growth in selected end uses, with key KPIs in- cluding NPS and Consumer Packaging sales growth. Streamline aims to improve profitability and operational efficiency, with progress tracked through the optimisa- tion of operating working capital, the OEE metric for production efficiency, and EBITDA improvements deliv- ered through the transformation programme. Strategy KPIs and financial targets for 2026–2030 Actual H1 2026 Actual H1 2025 Actual FY2025 Target for the strategy period Key strategic KPI’s Total recordable incident frequency TRIF 5.8 4.3 4.8 0 People Power index (PPI)¹⁾ - - 69 78 Net promoter score (NPS) 43 45 45 55 OEE-%, paperboard production ²⁾ 68 73 71 85 Operating working capital, ONWC, EUR million ³⁾ 254 478 168 200 Financial targets Revenue growth (CAGR) of the Consumer Packaging business, % -19 - -11 >4% annually Comparable return on invested capital, % -0.4 0.2 -3.1 >8% in 2027–2028 and >12% from 2029 Net debt to comparable EBITDA (last 12 months), ³⁾ 17.7 2.9 8.6 <2.5 ¹⁾ reported annually ²⁾ OEE % = Time Efficiency % x Speed Efficiency % x Material Efficiency % ³⁾ end of period R&D The key focus areas in Metsä Board’s product develop- ment are further lightweighting of paperboard without compromising performance as well as the development of barrier solutions. The lightweight nature of paperboard, combined with the use of fossil-free energy, significantly reduces the products’ carbon footprint. The objective is that in the future, each tonne of paperboard produced will require less wood, energy and water than at present. The development of barrier solutions is guided by an ongoing programme aimed at offering customers paper- board-based alternatives that reduce plastic use and comply with EU regulatory requirements, including PPWR and EPR. Shares and trading Metsä Board has two series of shares. Each series A share entitles its holder to twenty (20) votes at a Gen- eral Meeting of Shareholders, and each series B share entitles the holder to one (1) vote. All shares carry the same right to receive a dividend. Metsä Board’s shares are listed on the Nasdaq Helsinki. At the end of June 2026, closing price of Metsä Board’s B share on the Nasdaq Helsinki was EUR 2.72. The share’s highest and lowest prices were EUR 3.27 and EUR 2.51, respectively. Correspondingly, the closing price of the A share was EUR 4.14; the share’s highest and lowest prices were EUR 5.72 and EUR 4.06, re- spectively. In January–June, the average daily trading volumes of the B and A shares on the Nasdaq Helsinki were around 449,900 shares and around 3,400 shares, re- spectively. The total trading volume of the B share was EUR 159 million, and the total trading volume of the A share was EUR 2 million. At the end of June 2026, the market value of all Metsä Board shares was EUR 1.0 billion, of which the market value of the B shares and the A shares accounted for EUR 0.9 billion and EUR 0.1 billion, respectively.
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Page 11/32 Metsä Board’s major shareholder Metsäliitto Coopera- tive holds approximately 52% of Metsä Board’s shares and approximately 69% of votes. As Metsä Board is an entity controlled by Metsäliitto Cooperative, Metsäliitto Cooperative's ownership also includes the 360,802 own shares held by Metsä Board. International and nominee-registered investors held ap- proximately 7% of all shares. (Source: Euroland) Sustainability Metsä Board produces premium, recyclable fresh fibre paperboard resource-efficiently, helping customers reduce the use of fossil-based materials and the carbon footprint of packaging. The company’s solutions meet tightening EU regula- tory requirements on recyclability, packaging waste reduction and raw material traceability. Metsä Board reports on key sustainability topics and metrics in its interim reports and publishes a more comprehensive sustainability report annually as part of the Board of Directors’ Report. Key sustainability figures 2026 2025 2026 2025 2025 Target Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 2030 Total recordable incident frequency TRIF¹⁾ 5.1 3.1 5.8 4.3 4.8 0 Women in leadership roles²⁾, % 23 24 23 25 25 >35 Share of certified wood fibre, % 91 92 90 93 92 100 Share of fossil free energy of total energy consump- tion³⁾, % - - - - 93 100 Direct fossil-based CO₂ emissions, tonnes, (Scope 1) 28,069 34,675 58,513 87,683 121,041 0 Indirect fossil-based CO₂ emissions⁴⁾, tonnes, (Scope 2) - - - - 211 0 Energy efficiency improvement⁵⁾, % -8.9 -1.5 - - -7.2 +10 Reduction in process water use⁵⁾, % -7.7 -12 - - -8.0 -35 ¹⁾ Per million hours worked. ²⁾ The metric covers demanding leadership and expert roles, including CEO, SVP, and VP roles, as well as certain other demanding roles. ³⁾ Reported annually. ⁴⁾ Market-based, reported annually. ⁵⁾ Change from the base year of 2018, per tonne produced, rolling 12 months. The following figures have been revised from the previously reported figures: Energy efficiency 4–6, 2025. The Kemi un- bleached pulp production line, which was transferred from Metsä Fibre to Metsä Board in 2024, has not been included in the energy efficiency and water use calculations. Occupational safety and diversity Metsä Board’s production units comply with the ISO 45001 management system and common occupational safety standards. Occupational safety is systematically developed through proactive safety work, training and investments. Diversity, equality and inclusion are pro- moted through the Metsä for all vision and monitored against defined targets. Greenhouse gas emissions The majority of Metsä Board’s greenhouse gas emis- sions arise from energy used in the production of pa- perboard, BCTMP and pulp. The company’s emission reduction targets are approved by the Science Based Targets initiative (SBTi) and are aligned with the 1.5°C target of the Paris Agreement. In May, Metsä Board up- dated its SBTi-validated targets to also cover end-of-life emissions. Wood procurement All wood used by Metsä Board originates from Northern European forests, where forest regeneration after har- vesting is a statutory requirement. Metsä Group pro- motes sustainable forest management and biodiversity in accordance with the principles of regenerative for- estry. Metsä Board, as part of Metsä Group, has pre- pared for the EU Deforestation Regulation (EUDR) and will comply with its requirements once they become ap- plicable. External ratings In May, Metsä Board received an A score in CDP’s Supplier Engagement Assessment, complementing its existing A ratings for climate change, forests, and water security. In addition, the company was selected for the
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Page 12/32 Half-year financial report 1 January–30 June 2026 Financial Times Europe’s Climate Leaders list. After the review period, in July, Metsä Board retained its Plati- num rating in the EcoVadis sustainability assessment, placing the company among the top 1% of manufactur- ers in the paper, paperboard and packaging sector. ESG rating Score (lowest-highest) CDP Climate A, Forests A, Water A (D−A) EcoVadis Platinum, 90/100 (platinum is the highest, 0−100) ISS ESG Rating Prime, B- (D- − A+) ISS QualityScore Environment 1, Social 2, Governance 7 (10−1) MSCI ESG Rating A (CCC−AAA) Sustainalytics Low risk, 13.4 (100−0) Near-term risks and uncertainties Uncertainty related to the geopolitical environment is expected to continue. This could further impact global trade, increase economic uncertainty and heighten vol- atility in financial markets. Tensions in the Middle East, particularly those involving Iran, increase the risk of volatility in energy prices and may raise costs, especially in transportation and certain chemicals. A prolonged or escalating conflict could slow economic growth, increase inflationary pressures and weaken demand. Tightening U.S. trade policy and a potential increase in protectionist measures may weaken the competitive- ness of Metsä Board’s products in the United States and negatively affect paperboard sales. The continuation of Russia’s war in Ukraine maintains uncertainty and keeps the wood market tight in the Bal- tic Sea region. Deterioration in wood availability or an increase in demand could raise wood prices, weaken profitability and potentially affect continuity of produc- tion. An imbalance between supply and demand in paper- board and pulp markets may weaken demand for and pricing of Metsä Board’s products. Competition is in- creasing particularly due to growing paperboard imports from China to the EMEA region, capacity additions in Europe and the potential redirection of deliveries from other markets to Europe. Metsä Board is self-sufficient in pulp through its 24.9% ownership stake in Metsä Fibre. Increasing competition and new capacity in global pulp markets, as well as weaker economic growth and growing domestic pulp production in China, may weaken pulp demand and price development. Efficiency and transformation programmes as well as development projects involve execution risks, including potential cost overruns, delays and risks related to the successful implementation of technological changes in production processes. Growth in the paperboard business and the launch of new products involve risks related to ramp-up of sales and production. A narrow product portfolio increases exposure to fluctuations in demand and changes in market conditions. Tightening regulatory and sustainability requirements, as well as changes in customers’ certification require- ments, may affect the competitiveness of fibre-based products. Labour market disturbances and disruptions in logistics may negatively affect production, deliveries and profita- bility. In addition, serious accidents, as well as disrup- tions and cyberattacks targeting information systems, may interrupt operations and cause significant financial losses. There are also uncertainties related to the avail- ability, scope and cost of insurance coverage. Significant or prolonged changes in market conditions may lead to impairments of long-term balance sheet items. Changes in business outlook or credit ratings may affect the availability and cost of financing. In addi- tion, a deterioration in customers’ financial position may increase the risk of credit losses. Sensitivity analyses The sensitivity analyses illustrate the impact of changes in wood and market pulp prices as well as exchange rates of the main currencies on Metsä Board’s annual operating result. The sensitivity analyses for wood and market pulp prices include Metsä Board’s 24.9% owner- ship in Metsä Fibre and the resulting indirect impact on the company’s earnings. The foreign exchange sensitivity analysis is presented against the euro and does not include the effects of hedging. Price increase of +10% Impact on operating result Wood EUR -60 million Market pulp EUR +40 million Currency appreciation of +10% Impact on operating result USD/EUR EUR +50 million SEK/EUR EUR -40 million GBP/EUR EUR +10 million The forward-looking statements included in this interim report are based on current plans and estimates and in- volve risks and uncertainties that may cause actual re- sults to differ materially from those expressed in such statements.
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Page 13/32 Half-year financial report 1 January–30 June 2026 Further information on longer-term risks is available on pages 19–21 of Metsä Board’s Annual Report 2025 and in the listing prospectus (in English) for the bond issued in 2025. Climate-related and other sustainability risks are described in more detail in the sustainability report included in the Annual Report. Near-term outlook Outlook for the operating environment, next 3–6 months Paperboard pricing and demand improved towards the end of H1 2026, providing support for the operating en- vironment in H2 2026. Global demand for market pulp continues to be con- strained by low utilisation rates in the paper and paper- board industry. In Europe, previous production curtail- ments may contribute to a gradual rebalancing of the market towards the end of 2026. Higher oil and natural gas prices resulting from the con- flict in Iran are increasing pressure on logistics and chemical costs in particular. The impact on the third- quarter operating result is expected to be broadly in line with the second quarter, although commercial measures may partly mitigate the effect. Exchange rate fluctuations, including hedging, are ex- pected to have a clearly negative effect on the result in 2026 compared with the previous year. In July–Septem- ber, the impact is expected to be slightly negative com- pared with April–June. Company-specific outlook for July– September 2026 (compared to 4–6/2026) Cash flow and working capital management will remain key priorities in Metsä Board’s operational manage- ment. Market-driven production adjustments will con- tinue as necessary, depending on demand. Cash flow from operations is expected to remain at the second-quarter level. Paperboard delivery volumes are expected to remain at the second-quarter level. The gradually improving pric- ing environment towards the end of the H1 is expected to support profitability. The extensive market-related shutdown in Husum in July will have a significant negative impact on the third- quarter operating result. Planned maintenance activity will be significantly higher than in the previous quarter. Measures implemented under Metsä Board’s transfor- mation programme are expected to further improve the company’s cost efficiency and streamline its cost struc- ture. Metsä Fibre’s share of the result is expected to remain negative, reflecting extensive maintenance activity and continued low pulp production utilisation rates. Annual maintenance shutdowns in 2026 Below is an estimate of the most significant planned an- nual maintenance shutdowns in 2026 and their timing by quarter. In addition to the planned annual maintenance shut- downs, a market-related production shutdown will take place at Husum throughout July. The annual maintenance shutdown at the Kemi inte- grated mill in the fourth quarter will be longer than nor- mal due to the renewal of the cooking process at Metsä Fibre’s Kemi bioproduct mill. As part of this work, Metsä Fibre has selected Andritz as the technology supplier for the chip feed process, supporting the mill’s full pro- duction capacity going forward. During the shutdown, Metsä Board’s white kraftliner production will be halted. As part of the transformation programme, Metsä Board has also focused cost-saving and efficiency measures on annual maintenance activities. As a result, the finan- cial impact of annual maintenance shutdowns in 2026 is expected to be lower than in the previous year. Major annual maintenance shutdowns 2026 Q1'2026 No planned annual maintenance Q2'2026 several Metsä Board's mills in Finland Q3'2026 Husum integrated mill, Metsä Fibre's Rauma and Äänekoski mills Q4'2026 Kemi integrated mill
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Page 14/32 Half-year financial report 1 January–30 June 2026 METSÄ BOARD CORPORATION Espoo, 6 August 2026 BOARD OF DIRECTORS Further information: Anssi Tammilehto, CFO, tel. +358 10 465 4913 Katri Sundström, VP, Investor Relations, tel. +358 10 462 0101 Webcast and conference call The webcast and the conference call for analysts and investors in English will be held on 6 August 2026 at 3:00 p.m. EEST. CEO Esa Kaikkonen and CFO Anssi Tammilehto will present the results. The webcast and conference call can be followed online on the company’s website at https://metsaboard.events.inderes.com/2026-q2. Participation in the conference call requires registration through the following link: https://events.in- deres.com/metsaboard/2026-q2/dial-in. After the regis- tration, the participant will be provided with a phone number, a User ID and a Conference ID to access the conference. By participating in the conference call, the participant agrees that personal information such as name and company name can be collected. The webcast presentation and conference call will be recorded and archived on the company’s website at https://www.metsagroup.com/metsaboard/investors/. Financial reporting in 2026 Financial Statements Bulletin for the year 2025: 5 Feb- ruary 2026 Interim Report for January–March 2026: 29 April 2026 Half-Year Financial Report January–June 2026: 6 Au- gust 2026 Interim Report for January–September 2026: 29 Octo- ber 2026
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Page 15/32 Half-year financial report 1 January–30 June 2026 Calculation of key ratios Operating result = Result before income tax, financial income and expenses, exchange gains and losses, and share of results from associated companies and joint ven- tures EBITDA = Operating result before depreciation, amortisation and impairment losses Return on equity (%) = (Result before income tax – income taxes) per (Shareholder’s equity (aver- age)) Return on capital employed (%) = (Result before income taxes + net exchange differences and other financial expenses) per (Balance total – non-interest bearing liabilities (average)) Equity ratio (%) = (Shareholder’s equity) per (Balance total – advance payments received) Net gearing ratio (%) = (Interest-bearing net liabilities) per (Shareholder’s equity) Interest-bearing net liabilities = Interest-bearing liabilities – cash and cash equivalents and interest-bearing re- ceivables Total investments = Investments in owned and leased fixed assets and investments in business combinations Earnings per share = (Profit attributable to shareholders of parent company) per (Adjusted number of shares (average)) Shareholders’ equity per share = (Equity attributable to shareholders of parent company) per (Adjusted number of shares at the end of the period) Adjusted average share price = (Total traded volume per share (EUR)) per (Average adjusted number of shares traded during the financial year) Market capitalisation = (Number of shares) x (market price at the end of period) Comparable key ratios According to the guidelines of the European Securities and Markets Authority (ESMA), alternative performance measures are key figures concerning historical or future financial performance, financial standing, or cash flows that are not determined by the financial reporting frame- work applied by the company. Metsä Board’s financial reporting framework consists of the IFRS standards in the form in which they were adopted by the EU in line with Regulation (EC) No. 1606/2002. With the excep- tion of earnings per share, which have been defined in standard IAS 33 (Earnings per Share), the key figures presented in this financial report meet the ESMA’s crite- ria for alternative performance measures. Metsä Board believes that the presentation of alterna- tive performance measures provides users of financial statements with a better understanding of the com- pany’s financial performance and standing, including its use of equity, operational profitability and ability to ser- vice debt. The reconciliation of the comparable key figures is pre- sented in this financial report. Metsä Board considers that the key figures derived in this manner improve the comparability of reporting periods. None of these key figures with items affecting compara- bility eliminated is a key figure used in IFRS reporting, and they cannot be compared to other companies’ key figures identified by the same names. Items affecting comparability include material gains and losses on dis- posals of assets, impairment and impairment reversals in accordance with IAS 36 “Impairment of Assets”, cor- porate divestments and acquisitions, adjustment measures and other restructuring measures and their adjustments, costs arising from extensive and unfore- seeable interruptions in production, and the compensa- tion received for them as well as items arising from le- gal proceedings. Metsä Board considers comparable key figures to bet- ter reflect its operational performance, as they eliminate the effect on the result of items and business transac- tions arising outside normal business operations.
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Page 16/32 Half-year financial report 1 January–30 June 2026 Unaudited condensed consolidated statement of profit and loss 2026 2025 2026 2025 2025 EUR million Note Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 Sales 2, 6 431.9 460.1 825.6 940.9 1,775.7 Change in stocks of finished goods and work in pro- gress 1.6 -23.5 37.9 22.4 -59.9 Other operating income 2, 6 11.7 10.5 22.6 21.0 48.1 Material and services 6 -324.4 -334.5 -667.3 -740.0 -1,353.0 Employee costs -48.0 -56.7 -93.3 -109.8 -214.5 Share of result of associated company 6 -6.7 -8.8 -12.4 -3.3 -37.4 Depreciation, amortisation and impairment losses -27.2 -28.8 -54.6 -76.4 -165.6 Other operating expenses -39.0 -40.1 -73.3 -80.4 -163.0 Operating result 2 -0.3 -21.7 -14.8 -25.5 -169.5 Share of results of associated companies and joint ven- tures 0.0 0.0 Net exchange gains and losses -0.6 -0.6 -1.4 -1.3 -1.2 Net financial items 2, 6 -4.2 -3.9 -8.2 -6.8 -16.1 Result before income tax -5.0 -26.3 -24.4 -33.6 -186.9 Income taxes 3 -0.6 3.9 2.1 6.3 22.3 Result for the period -5.6 -22.4 -22.3 -27.3 -164.6 Result for the period attributable to Shareholders of parent company -6.2 -21.7 -20.9 -28.7 -156.6 Non-controlling interests 0.5 -0.7 -1.4 1.4 -7.9 Total -5.6 -22.4 -22.3 -27.3 -164.6
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Page 17/32 Half-year financial report 1 January–30 June 2026 Consolidated statement of comprehensive income 2026 2025 2026 2025 2025 EUR million Note Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 Items that will not be reclassified to profit or loss Actuarial gains/losses on defined pension plans -0.1 0.2 0.0 0.4 -0.4 Financial assets valued at fair value through other com- prehensive income 8 2.4 1.6 -72.9 -16.9 -33.5 Income tax relating to items that will not be reclassified -0.7 -0.3 14.4 3.3 7.6 Total 1.6 1.5 -58.5 -13.2 -26.3 Items that may be reclassified to profit or loss Cash flow hedges -11.3 17.9 -13.3 58.9 21.5 Translation differences -10.2 -32.0 -17.2 15.6 40.0 Share of other comprehensive income of associated company -2.0 9.0 -4.3 18.8 6.8 Income tax relating to components of other comprehen- sive income 2.3 -3.6 2.7 -11.8 -4.3 Total -21.3 -8.7 -32.2 81.5 64.0 Other comprehensive income, net of tax -19.6 -7.2 -90.7 68.3 37.8 Total comprehensive income for the period -25.3 -29.5 -113.1 41.1 -126.8 Total comprehensive income for the period attribut- able to Shareholders of parent company -23.6 -24.2 -107.6 35.0 -128.4 Non-controlling interests -1.7 -5.4 -5.5 6.0 1.6 Total -25.3 -29.5 -113.1 41.1 -126.8 Earnings per share for result attributable to share- holders of parent company (EUR/share) -0.02 -0.06 -0.06 -0.08 -0.44
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Page 18/32 Half-year financial report 1 January–30 June 2026 Unaudited condensed balance sheet EUR million Note 30 Jun 2026 30 Jun 2025 31 Dec 2025 ASSETS Non-current assets Goodwill 19.4 12.2 12.2 Other intangible assets 32.3 37.2 32.8 Tangible assets 4 1,217.4 1,223.4 1,265.5 Investments in associated companies and joint ventures 470.1 532.9 486.8 Other investments 8 113.4 202.8 186.2 Other non-current assets 6, 8 4.1 4.2 3.5 Deferred tax receivables 2 5.9 5.3 6.0 1,862.6 2,018.1 1,993.1 Current assets Inventories 419.4 486.7 374.1 Trade receivables and other receivables 6, 8 276.5 323.0 249.3 Cash and cash equivalents 6, 8 296.5 234.3 309.3 992.4 1,044.0 932.7 Total assets 2,855.0 3,062.1 2,925.8 SHAREHOLDERS’ EQUITY AND LIABILITIES Shareholders' equity Equity attributable to shareholders of parent company 1,483.1 1,753.2 1,590.4 Non-controlling interests 160.8 170.8 166.3 Total equity 1,644.0 1,924.0 1,756.7 Non-current liabilities Deferred tax liabilities 70.5 123.6 92.8 Post-employment benefit obligations 2 7.8 7.9 8.7 Provisions 5 0.7 0.8 0.7 Borrowings 8 494.3 503.5 495.7 Other non-current liabilities 8 3.6 4.7 4.2 576.8 640.5 602.2 Current liabilities Provisions 5 0.2 1.2 3.3 Current borrowings 6, 8 143.4 160.7 68.8 Trade payables and other liabilities 6, 8 490.6 335.8 494.8 634.2 497.7 566.9 Total liabilities 1,211.0 1,138.1 1,169.1 Total shareholders’ equity and liabilities 2,855.0 3,062.1 2,925.8
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Page 19/32 Half-year financial report 1 January–30 June 2026 Unaudited consolidated statement of changes in shareholders’ equity EUR million Share capital Trans- lation diffe- rences Fair value and other reserves Reserve for in- vested unres- tricted equity Own shares Retained earnings Total Non-con- trolling interests Equity total Shareholders’ equity 1 Jan- uary 2025 557.9 -82.7 137.4 208.9 -3.7 925.2 1,742.9 164.7 1,907.7 Comprehensive income for the period Result for the period -28.7 -28.7 1.4 -27.3 Other comprehensive in- come net of tax total 11.0 52.4 0.4 63.7 4.6 68.3 Comprehensive income total 11.0 52.4 -28.3 35.0 6.0 41.1 Related party transac- tions Dividend -24.9 -24.9 -24.9 Disposal of own shares 1.0 -1.0 Share based payments 0.1 0.1 0.1 Shareholders’ equity 30 June 2025 557.9 -71.7 189.7 208.9 -2.8 871.2 1,753.2 170.8 1,924.0 EUR million Share capital Trans- lation diffe- rences Fair value and other reserves Reserve for in- vested unres- tricted equity Own shares Retained earnings Total Non-con- trolling interests Equity total Shareholders’ equity 1 Jan- uary 2026 557.9 -52.2 134.6 208.9 -2.8 744.0 1,590.4 166.3 1,756.7 Comprehensive income for the period Result for the period -20.9 -20.9 -1.4 -22.3 Other comprehensive in- come net of tax total -13.2 -73.3 -0.2 -86.7 -4.0 -90.7 Comprehensive income total -13.2 -73.3 -21.1 -107.6 -5.5 -113.1 Share based payments 0.3 0.3 0.3 Shareholders’ equity 30 June 2026 557.9 -65.3 61.3 208.9 -2.8 723.3 1,483.1 160.8 1,644.0
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Page 20/32 Half-year financial report 1 January–30 June 2026 Unaudited condensed consolidated cash flow statement 2026 2025 2025 2026 EUR million Note Q1–Q2 Q1–Q2 Q1–Q4 Q2 Result for the period -22.3 -27.3 -164.6 -5.6 Total adjustments 7 60.6 72.4 192.5 34.0 Change in working capital -90.9 -78.0 231.3 -11.4 Net financial items 7 -7.1 -9.4 -19.4 -5.8 Income taxes paid -2.1 4.2 -0.2 -2.5 Net cash flow from operations -61.8 -38.1 239.6 8.7 Business acquisitions 7 -9.3 -0.3 Investments in intangible and tangible assets -13.8 -33.8 -136.0 -8.7 Disposals and other items 6, 7 9.1 11.5 14.3 4.9 Net cash flow from investing -14.0 -22.3 -121.7 -4.2 Changes in non-current loans and in other financial items 6 67.2 134.5 27.5 31.1 Paid dividend 7 -24.9 -24.9 Net cash flow from financing 67.2 109.6 2.7 31.1 Changes in cash and cash equivalents -8.6 49.2 120.5 35.7 Cash and cash equivalents at beginning of period 6 309.3 182.6 182.6 264.2 Translation difference in cash and cash equivalents -4.2 2.5 6.2 -3.4 Changes in cash and cash equivalents -8.6 49.2 120.5 35.7 Cash and cash equivalents at end of period 6 296.5 234.3 309.3 296.5
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Half-year financial report 1 January–30 June 2026 Page 21/32 Appendices to unaudited report Note 1 – Background and basis of preparation Metsä Board Corporation and its subsidiaries comprise a forest industry group whose main product areas are fresh fibre cartonboards and linerboards. Metsä Board Corporation, the parent company, is domiciled in Hel- sinki and the company’s registered address is Revontu- lenpuisto 2, 02100 Espoo, Finland. Metsä Board’s ulti- mate parent company is Metsäliitto Cooperative. This financial report has been prepared in accordance with IAS 34, Interim Financial Reporting, and it should be read in conjunction with the 2025 IFRS financial statements. The effects of foreign exchange changes on the review period operating result vis-à-vis the com- parison period result have been calculated based on estimated review period net cash flows in relevant cur- rencies and taking the realised effects of foreign ex- change hedges into account. The same accounting policies have been applied as in the 2025 IFRS financial statements with the following exception: Depreciation of machinery and equipment during the fi- nancial year has been adjusted between the quarters when applicable to correspond with the distribution of the economic benefit of the asset between quarters. The standard changes applied in the 2026 financial year will not have a significant impact on the Group's fi- nancial statements. All amounts in the financial report are presented in mil- lions of euros, unless otherwise stated. This financial report was authorised for issue by the Board of Directors of Metsä Board on 6 August 2026. Key estimates and judgements The preparation of financial report requires the use of the management’s estimates, assumptions and judgement-based decisions that affect the amount of assets and liabilities, the presentation of contingent assets and liabilities in the finan- cial report, and the amount of income and expenses. Even though such estimates and assumptions are based on the management’s best knowledge at the time they were made, it is possible that the actual values differ from those used in the financial report. Management’s judgement-based decisions Item Nature of management’s judgement-based decisions Intangible assets, property, plant and equip- ment and leases Valuation model applied in impairment tests Financial instruments measured at fair value Accounting principle and valuation model applied to the shares of Pohjolan Voima Oyj
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Half-year financial report 1 January–30 June 2026 Page 22/32 Estimates and assumptions Item Nature of estimates and assumptions Intangible assets, property, plant and equip- ment and leases Estimates of key factors affecting cash flows in the valuation and expec- tations of economic benefits Property, plant and equipment and leases Estimates of the useful lives of property, plant and equipment Other investments / fair value measurement Estimates of key factors affecting cash flows in the valuation of Pohjolan Voima Oyj Inventories Estimates of the sales prices of products measured at net realisable value, the costs of completion and the costs necessary for making the sale Income taxes Estimates of the date and amount of tax liabilities arising in tax audits and deferred tax assets recognised for losses Note 2 – Segment information The Corporate Management Team is the chief opera- tional decision maker monitoring business operations performance based on the operating segments. Metsä Board’s business operations consist of Consumer Packaging, Retail Packaging and Market Pulp busi- nesses. Metsä Board reports on its financial perfor- mance in one reporting segment. Geographical distribution of sales 2026 2025 2026 2025 2025 EUR million Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 Europe 262.2 277.8 503.9 549.5 1,064.1 Americas 100.4 114.1 199.1 243.7 448.3 Emerging markets 69.3 68.3 122.6 147.8 263.3 Total 431.9 460.1 825.6 940.9 1,775.7
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Half-year financial report 1 January–30 June 2026 Page 23/32 Reconciliation of comparable figures 2026 2025 2026 2025 2025 EUR million Q2 Q2 Q1–Q2 Q1–Q2 Q1–Q4 Operating result -0.3 -21.7 -14.8 -25.5 -169.5 Depreciation, amortisation and impairment losses 27.2 28.8 54.6 76.4 165.6 EBITDA 26.9 7.1 39.8 50.9 -3.9 Items affecting comparability: Other operating income -0.4 0.0 -0.8 0.0 Write down of inventory 0.0 5.9 5.8 Employee benefits 0.3 0.0 0.8 0.5 15.0 Share of results of associated companies 1.2 0.0 1.6 0.0 4.4 Other operating expenses 2.3 -0.9 5.5 0.1 8.3 Total 3.4 -0.9 7.1 6.4 33.5 EBITDA, comparable 30.3 6.1 47.0 57.3 29.6 Depreciation, amortisation and impairment losses -27.2 -28.8 -54.6 -76.4 -165.6 Items affecting comparability: Depreciation on property, plant and equipment 0.0 0.0 Impairment charges and reversals of impairments 0.0 19.3 55.9 Operating result, comparable 3.1 -22.7 -7.7 0.1 -80.2 Share of results of associated companies and joint ven- tures 0.0 0.0 Net financial items -4.7 -4.5 -9.6 -8.0 -17.3 Items affecting comparability: Financial items 0.0 0.0 Result before income tax, comparable -1.7 -27.2 -17.2 -7.9 -97.5 Income taxes -0.6 3.9 2.1 6.3 22.3 Income taxes related to items affecting comparability -0.4 0.2 -1.1 -5.1 -17.1 Result for the period, comparable -2.7 -23.2 -16.3 -6.7 -92.2 Additional information about the reconciliation “+” sign items = expense affecting comparability ”-” sign items = income affecting comparability Items affecting operating result comparability: Q2/2026: Totalled EUR -3.4 million. The items con- sisted of the cost savings and profitability improvement programme EUR -2.6 million, items related to the clo- sure of the Tako mill EUR 0.4 million, and items related to the operations of the associated company Metsä Fi- bre EUR -1.2 million. Q1–Q2/2026: Totalled EUR -7.1 million. The items con- sisted of the cost savings and profitability improvement programme EUR -4.8 million, items related to the clo- sure of the Tako mill EUR -0.7 million, and items related to the operations of the associated company Metsä Fi- bre EUR -1.6 million. Q1–Q4/2025: Totalled EUR -89.4 million. The items consisted of EUR -27.3 million related to the impairment of the Tako mill, items of EUR -21 million related to the cost savings and performance improvement pro- gramme, EUR -35.0 million impairment of the renewal project of the enterprise resource planning (ERP) sys- tem, items related to the business of the associated company Metsä Fibre of EUR -4.4 million, and other items of EUR -1.7 million.
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Page 24/32 Half-year financial report 1 January–30 June 2026 Note 3 – Income taxes 2026 2025 2025 EUR million Q1–Q2 Q1–Q2 Q1–Q4 Taxes for the current period -2.4 -2.0 -6.8 Taxes for the prior periods 0.0 -0.2 -0.5 Change in deferred taxes 4.4 8.5 29.6 Total income taxes 2.1 6.3 22.3 Note 4 – Changes in property, plant and equipment 2026 2025 2025 EUR million Q1–Q2 Q1–Q2 Q1–Q4 Carrying value at beginning of period 1,265.5 1,248.4 1,248.4 Investments in owned property, plant and equipment 17.6 30.7 101.9 Investments in leased property, plant and equipment 6.3 1.3 3.1 Decreases -0.1 -2.7 -2.3 Depreciation, amortisation and impairment losses -53.8 -75.6 -129.0 Translation difference -18.1 21.3 43.4 Carrying value at end of period 1,217.4 1,223.4 1,265.5 The acquired businesses comprise the tangible fixed assets of the archiving and distribution centre located in Winschoten, the Netherlands. Note 5 – Provisions EUR million Restructuring Environmental obligations Other provisions Total 1 January 2026 0.8 0.7 2.6 4.1 Translation differences -0.1 -0.1 -0.2 Utilised during the year -0.3 -2.5 -2.8 Unused amounts reversed -0.1 -0.1 30 June 2026 0.2 0.7 0.0 0.9 Non-current 0.7 0.7 Current 0.2 0.2 Total 0.2 0.7 0.9 Non-current provisions are expected to be utilised within five years.
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Page 25/32 Half-year financial report 1 January–30 June 2026 Note 6 – Related party transactions Related parties include Metsä Board’s ultimate parent company Finnish Metsäliitto Cooperative, other subsidi- aries of Metsäliitto, associated companies and joint ventures. The members of the Board of Directors and Metsä Group's Executive Management Team and Metsä Board’s Corporate Management Team as well as their close family members are also included in related parties. Metsä Board enters into a significant number of trans- actions with related parties for the purchases of inven- tories, sale of goods, corporate services and financial transactions. Arm’s length pricing has been followed in product and service transactions undertaken, and inter- est rates set between Metsä Board and the related par- ties. Transactions of Metsä Board and its subsidiaries with Metsäliitto Cooperative and its subsidiaries, as well as with associated companies and joint ventures, are presented below. Transactions with parent and sister companies 2026 2025 2025 EUR million Q1–Q2 Q1–Q2 Q1–Q4 Sales 54.4 57.7 110.0 Other operating income 2.4 3.9 9.2 Purchases -358.3 -397.4 -691.0 Share of result from associated company -12.4 -3.3 -37.4 Interest income 2.8 0.0 4.6 Interest expenses -0.9 -1.1 -1.6 Investments Trade receivables and other receivables 25.4 73.2 31.3 Cash and cash equivalents 293.2 230.8 307.5 Trade payables and other liabilities 202.6 98.2 148.2 Metsä Fibre’s net result is included in the “Share of re- sult from associated company” operating result line item, and transactions with Metsä Fibre are included in transactions with sister companies. Cash and cash equivalents include interest-bearing re- ceivables comparable to cash funds and available from Metsä Group’s internal bank Metsä Group Treasury Oy. Transactions with associated companies and joint ventures 2026 2025 2025 EUR million Q1–Q2 Q1–Q2 Q1–Q4 Sales 0.4 0.6 Trade receivables and other receivables 0.0
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Page 26/32 Half-year financial report 1 January–30 June 2026 Note 7 – Notes to the consolidated cash flow statement Adjustments 2026 2025 2025 EUR million Q1–Q2 Q1–Q2 Q1–Q4 Taxes -2.1 -6.3 -22.3 Depreciation, amortisation and impairment charges 54.6 76.4 165.6 Share of result from associated companies and joint ventures 12.4 3.3 37.4 Gains and losses on sale of fixed assets -10.1 -9.5 -9.7 Finance costs, net 9.6 8.0 17.3 Pension liabilities and provisions -4.1 0.0 3.1 Other adjustments 0.3 0.5 1.0 Total 60.6 72.4 192.5 Disposals and other items Disposals and other items reported in 2026 were EUR 9.1 million in total. They consisted of proceeds amount- ing to EUR 10.0 million from emission right sales and other items amounting to EUR -0.9 million. Disposals and other items reported in 2025 were EUR 14.3 million in total. They consisted of proceeds amounting to EUR 10.0 million from emission right sales and other items amounting to EUR 4.3 million. Paid dividend The paid dividend in 2026 was EUR 0.0 million. The paid dividend in 2025 included dividends paid by the parent company of EUR -24.9 million. Note 8 – Acquired businesses Metsä Board acquired the Winschoten sheeting and distribution center’s entire share capital (now: Metsä Board Winschoten B.V.) in the Netherlands from Kon- vertia Group on 5 February 2026. The Winschoten sheeting and distribution centre is one of the largest and most modern facilities of its kind in Europe, with an annual capacity of approximately 100,000 tonnes, and employs around 20 people. The acquired entity’s prop- erty, plant and equipment and other balance sheet items are not significant. Based on a preliminary pur- chase price allocation, the acquisition is expected to re- sult in the recognition of goodwill amounting to EUR 7.2 million in the consolidated balance sheet of Metsä Board.
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Half-year financial report 1 January–30 June 2026 Page 27/32 Note 9 – Financial instruments Classification of financial assets and liabilities and their fair values Financial assets 30 June 2026 EUR million Fair value through profit and loss Fair value through other comprehen- sive income Amortised cost Total carrying amount Other non-current investments 1.5 111.9 113.4 Other non-current financial assets 1.1 1.1 Trade receivables and other receivables 235.6 235.6 Cash and cash equivalents 296.5 296.5 Derivative financial instruments 0.0 5.6 5.6 Total carrying amount 1.5 117.5 533.3 652.3 Total fair value 1.5 117.5 533.3 652.3 Financial liabilities 30 June 2026 EUR million Fair value through profit and loss Fair value through other comprehen- sive income Amortised cost Total carrying amount Non-current interest-bearing financial liabilities 494.3 494.3 Current interest-bearing financial liabilities 143.4 143.4 Trade payables and other financial liabilities 403.0 403.0 Derivative financial instruments 3.1 16.0 19.1 Total carrying amount 3.1 16.0 1,040.6 1,059.8 Total fair value 3.1 16.0 1,031.4 1,050.6
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Half-year financial report 1 January–30 June 2026 Page 28/32 Classification of financial assets and liabilities and their fair values Financial assets 30 June 2025 EUR million Fair value through profit and loss Fair value through other comprehen- sive income Amortised cost Total carrying amount Other non-current investments 1.4 201.4 202.8 Other non-current financial assets 0.7 0.7 Trade receivables and other receivables 234.0 234.0 Cash and cash equivalents 234.3 234.3 Derivative financial instruments 2.4 52.8 55.1 Total carrying amount 3.8 254.1 469.0 726.9 Total fair value 3.8 254.1 469.0 726.9 Financial liabilities 30 June 2025 EUR million Fair value through profit and loss Fair value through other comprehen- sive income Amortised cost Total carrying amount Non-current interest-bearing financial liabilities 503.5 503.5 Current interest-bearing financial liabilities 160.7 160.7 Trade payables and other financial liabilities 245.0 245.0 Derivative financial instruments 0.9 12.5 13.4 Total carrying amount 0.9 12.5 909.2 922.6 Total fair value 0.9 12.5 901.7 915.1 Trade receivables and other receivables do not include VAT receivables and prepayments and accrued in- come. Trade payable and other financial liabilities do not in- clude advance payments, VAT payables and accruals and deferred income. In Metsä Board, all interest-bearing liabilities are valued in the balance sheet at amortised cost based on the ef- fective interest method. Fair values in the table are based on the present value of the cash flow of each liability or assets calculated by market rate. The discount rates applied are between 1.7% and 4.4% (1.7 and 4.0). The fair values of trade receivables and other receivables and trade payables and other financial liabilities do not materially deviate from their carrying amounts in the balance sheet.
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Half-year financial report 1 January–30 June 2026 Page 29/32 Other non-current investments at fair value based on Level 3 2026 2025 2025 EUR million Q1–Q2 Q1–Q2 Q1–Q4 Carrying value at beginning of period 186.2 219.7 219.7 Total gains and losses in other comprehensive income Total gains and losses in other comprehensive income -72.9 -16.9 -33.5 Purchases 0.0 0.0 0.0 Disposals 0.0 0.0 Carrying value at end of the period 113.4 202.8 186.2 Financial assets and liabilities measured at fair value have been categorised in accordance with IFRS 7 Fi- nancial Instruments: Disclosures. Level 1 Fair value is based on quoted prices in active markets. Level 2 Fair value is determined using valuation techniques that use market information. Level 3 Fair value is not based on observable market data, but on the company’s own assumptions. The fair values of natural gas and fuel oil derivatives are determined using public price quotations in an ac- tive market (Level 1). The fair values of currency forwards and options as well as interest rate swaps are determined using the present value of expected payments supported by market inter- est rates and other market data on the closing date of the reporting period (Level 2). For financial instruments not traded on an active mar- ket, the fair value is determined by valuation tech- niques. Judgement is used when choosing the different techniques and making assumptions, which are mainly based on the circumstances prevailing in the markets on each closing date of the reporting period (Level 3). The valuation and measurement principles are de- scribed in more detail in the Annual Report. The most significant asset at fair value not traded on an active market is the investment in Pohjolan Voima Oyj shares classified as a financial asset at fair value through other comprehensive income. The value of the investment is determined based on the present value of discounted cash flows. The WACC used in the Pohjolan Voima Oyj share valu- ation was 6.43% (31 December 2025: 6.48). The acqui- sition cost of shares in Pohjolan Voima Oyj is EUR 28.2 million (28.2) and fair value EUR 111.9 million (184.8). The decrease in fair value was mainly due to the up- date of the new long-term electricity price forecast and Pohjolan Voima Oyj’s cost assumptions. The carrying value of other investments is expected to change by EUR -6.7 million (-6.5) and EUR 7.8 million (6.8) should the rate used for discounting the cash flows change by 0.5 percentage points from the rate es- timated by management. The carrying value of other in- vestments is expected to change by EUR 47.3 million (48.7) should the energy prices used in calculating the fair value differ by 10% from the prices estimated by management.
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Half-year financial report 1 January–30 June 2026 Page 30/32 Fair value hierarchy of financial assets and liabilities as of 30 June 2026 EUR million Level 1 Level 2 Level 3 Total Financial assets at fair value Other non-current investments 113.4 113.4 Derivative financial assets 2.9 2.7 5.6 Financial liabilities measured at fair value Derivative financial liabilities 0.5 18.6 19.1 Financial assets not measured at fair value Cash and cash equivalent 296.5 296.5 Financial liabilities not measured at fair value Non-current interest-bearing financial liabilities 485.3 485.3 Current interest-bearing financial liabilities 143.2 143.2 Fair value hierarchy of financial assets and liabilities as of 30 June 2025 EUR million Level 1 Level 2 Level 3 Total Financial assets at fair value Other non-current investments 202.8 202.8 Derivative financial assets 0.7 54.5 55.1 Financial liabilities measured at fair value Derivative financial liabilities 2.2 11.1 13.4 Financial assets not measured at fair value Cash and cash equivalent 234.3 234.3 Financial liabilities not measured at fair value Non-current interest-bearing financial liabilities 496.1 496.1 Current interest-bearing financial liabilities 160.5 160.5
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Half-year financial report 1 January–30 June 2026 Page 31/32 Derivatives 30 June 2026 EUR million Nominal value Fair value Fair value Derivative assets Derivative labilities Fair value net Fair value through profit and loss Fair value through other com- prehen- sive income Interest rate swaps 100.0 1.8 -1.8 -1.8 Interest rate derivatives 100.0 1.8 -1.8 -1.8 Currency forward contracts 829.9 2.7 16.6 -13.9 -1.3 -12.6 Currency option contracts 42.9 0.2 -0.2 -0.2 Currency derivatives 872.8 2.7 16.8 -14.0 -1.3 -12.8 Oil derivatives 19.4 1.9 0.5 1.4 1.4 Natural gas derivatives 3.6 1.0 1.0 1.0 Commodity derivatives 23.0 2.9 0.5 2.3 2.3 Derivatives total 995.8 5.6 19.1 -13.5 -3.1 -10.4 Derivatives 30 June 2025 EUR million Nominal value Fair value Fair value Derivative assets Derivative labilities Fair value net Fair value through profit and loss Fair value through other com- prehen- sive income Interest rate swaps 100.0 0.0 0.0 0.0 Interest rate derivatives 100.0 0.0 0.0 0.0 Currency forward contracts 1,479.7 46.1 11.1 35.0 1.1 33.9 Currency option contracts 337.3 8.4 8.4 8.4 Currency derivatives 1,817.0 54.5 11.1 43.4 1.1 42.3 Oil derivatives 18.3 0.0 1.8 -1.8 -1.8 Natural gas derivatives 2.4 0.6 0.5 0.2 0.4 -0.2 Commodity derivatives 20.8 0.7 2.2 -1.6 0.4 -2.0 Derivatives total 1,937.8 55.1 13.4 41.7 1.4 40.3
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Half-year financial report 1 January–30 June 2026 Page 32/32 Note 10 – Commitments and guarantees EUR million 30 Jun 2026 30 Jun 2025 31 Dec 2025 Guarantees and counterindemnities 5.1 0.7 5.0 Total 5.1 0.7 5.0 Purchase commitments related to intangible assets and property, plant and equipment EUR million 30 Jun 2026 30 Jun 2025 31 Dec 2025 Payments due in following 12 months 0.7 0.9 Payments due later 0.2 0.6 Total 0.9 1.5