1. What are Metsä Board's main products and what are their typical end uses?
Metsä Board is a supplier of premium-quality paperboards. The company focuses on folding boxboards and linerboards made from fresh fibre, which are ideal for food, cosmetics, pharmaceutical and food service packaging, as well as various point-of-sale display solutions and retail packaging.
2. What are Metsä Board's vision, strategy and financial targets?
Metsä Board's vision is to be the preferred supplier of premium paperboards, creating value for customers globally. The company's strategic cornerstones are focus, growth and profitability. Read more about our strategy here.
Metsä Board's target for return on capital employed (ROCE) is at least 12 per cent and the ratio of interest-bearing net debt to comparable EBITDA is a maximum of 2.5. Metsä Board is a growth company. The company's goal is that the deliveries of its paperboard products grow faster than the average market growth. Global demand for high-quality paperboard made from fresh fibre is expected to grow by approximately 3–4 per cent a year. Read more about Metsä Board's financial targets here.
3. Who are Metsä Board's customers?
In folding boxboard, Metsä Board's main customers are brand owners, converters and merchants. In fresh fibre linerboard, the majority of Metsä Board's customers are corrugated packaging manufacturers.
4. Who are Metsä Board's main competitors?
Metsä Board's main competitors are other producers of folding boxboard and fresh fibre linerboard. Read more about the company's competitors here.
5. How many production units does Metsä Board have, and where are they located?
Metsä Board has eight production units, of which seven are in Finland and one is in Sweden. Read more about our mills and production capacities here.
6. What is Metsä Board's main market area?
Metsä Board's products are sold globally. The sales split in 2016 was EMEA 75%, Americas 17% and APAC 8%. In the coming years, we expect sales to the Americas to increase along with the new paperboard capacity from Husum.
7. What are the main growth drivers in the global packaging market and especially in fresh fibre paperboards?
Population growth, urbanization and web commerce are driving demand for all packaging materials. The annual growth rate for fresh fibre packaging materials is 3–4 per cent. The main drivers are globalization, technology, sustainability and consumption. Read more about the operating environment here.
8. What are the main benefits of Metsä Board's paperboards to customers?
Metsä Board's folding boxboard is the stiffest yet lightest paperboard grade. It can be as much as 30% lighter than competing grades (e.g. SBB, WLC). Metsä Board uses only fresh fibres in its production, which guarantees the purity and safety of the paperboard. Fresh fibre paperboard can be in direct contact with food without the risk of mineral oil migration. All of Metsä Board's paperboards are premium-quality paperboards with excellent printability and runnability.
9. What have been the main drivers for Metsä Board's profitability development in recent years?
The biggest contributor has been the transformation from the non-profitable paper business to the profitable paperboard business. Secondly, we have been able to improve our annual productivity (production capacity per employee) by roughly 5 per cent during the past ten years. Also, Metsä Board has been able to keep price levels for its main products healthy.
10. Is Metsä Board targeting growth or a high dividend yield?
Metsä Board seeks profitable growth above the market growth level together with a stable and rewarding dividend payment policy. The targeted average annual growth rate for paperboard deliveries is 13 per cent during 2015–2018. According to the dividend policy, Metsä Board aims to distribute at least 50 per cent of the result for the financial period as dividend every year.
11. How much is the annual maintenance capex, and what are the biggest growth investments?
Annual maintenance capex is EUR 40–60 million. In 2015–2016, the company's growth investments included the Husum investment programme (€170 million), an extrusion coating line (€38 million) and an equity investment in Metsä Fibre's bioproduct mill (€25 million).
12. What is Metsä Board's relationship with Metsä Fibre?
Metsä Fibre is a pulp company and, like Metsä Board, part of Metsä Group. Metsä Board owns 24.9 per cent of Metsä Fibre, which guarantees Metsä Board is self-sufficient in pulp. Read more about Metsä Group's structure here.
13. What is Metsä Board's total annual pulp balance?
Metsä Board's own annual pulp production is roughly 1.3 million tonnes, and Metsä Board's share Metsä Fibre's pulp production amounts to 600,000 tonnes. After the company's own pulp consumption, the annual net pulp balance is approximately 400,000 tonnes long. The majority of this market pulp is softwood pulp.
14. What is BCTMP?
The production of BCTMP (bleached chemi-thermomechanical pulp) is a combination of mechanical and chemical pulping method for removing the fibres. Folding boxboard has a the three-layer-structure of which two outer layers are chemical pulp and middle layer is BCTMP. BCTMP makes folding boxboard light but stiff.
15. Where are Metsä Board's shares listed, and what is the difference between the A and B shares?
Metsä Board's A and B series shares are listed on the Nasdaq Helsinki in the Large Cap segment. The difference between the A and B shares is in their voting rights. Each Series A share entitles its holder to twenty (20) votes at a general 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.
16. Who are the biggest shareholders of Metsä Board?
The largest shareholder is Metsäliitto Cooperative, with 42% share of total shares and 61% of total votes. You can find an updated list of Metsä Board's biggest shareholders here.
Do you have further questions? Please contact us!