1. What are Metsä Board's main products and what are their typical end uses?
Metsä Board is a supplier of ecological and premium-quality paperboards. The company focuses on folding boxboards and white kraftliners made from fresh fibre, which are mainly used in consumer product packaging and for retail purposes. Approximately 50% of the end use of folding boxboard is in food and food service packaging, 40% in other consumer product packaging such as a cosmetics, pharmaceutical and electronics, and 10% in graphical end uses. Majority of Metsä Board's white kraftliners are used within various retail purposes, for example in point-of-sale display solutions, shelf-ready packaging and fresh fruit and vegetable boxes.
2. What are Metsä Board's mission, vision, strategy and financial targets?
Metsä Board is a leading European producer of premium fresh fibre paperboards and a forerunner in sustainability. The decision-making is guided by profitability targets and the ambition to increase shareholder value. The goal is to distribute a competitive dividend to owners and maintain the strong financial position.
Metsä Board's mission is to create packaging solutions that respect nature. This is based on company's three strategic cornerstones: focus, growth and profitability. Metsä Board's vision is to be the preferred supplier of innovative and sustainable fibre-based packaging solutions, creating value for customers globally. Read more about our strategy here.
Metsä Board's target for return on capital employed (ROCE) is at least 12% and the ratio of interest-bearing net debt to comparable EBITDA is a maximum of 2.5. 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 white kraftliners, the most important customers are corrugated packaging manufacturers.
4. Who are Metsä Board's main competitors?
Metsä Board's main competitors are other producers of high-quality paperboards: folding boxboards and white kraftliners. Read more about Metsä Board's market shares in 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 in here.
6. What is Metsä Board's main market area?
Metsä Board's products are sold to more than 100 countries. The sales split in 2020 was EMEA 68%, Americas 23% and APAC 9%. In recent years, growth has been fastest in the Americas region, especially in the USA, which today is Metsä Board's largest single country in terms of paperboard deliveries. Instead, the importance of the APAC region, and China in particular, is emphasised through the market pulp business and the business of associated company Metsä Fibre.
7. What are the main growth drivers in the global packaging market and especially in fresh fibre paperboards?
Demand for recyclable and ecological packaging materials – such as fresh fibre paperboard – is driven by population growth, urbanization, sustainability, product safety and growth of e-commerce. The annual growth rate for premium fresh fibre paperboards is roughly 2–3% globally. Read more about the operating environment in here.
8. What are the main benefits of Metsä Board's paperboards to customers?
Metsä Board's folding boxboards are stiff, yet light-weight. They 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. Less raw materials, water and energy is needed in the production of light-weight paperboards. Paperboard produced from fresh fibre can be in direct contact with food without the mineral oil absorbed into the food. All of Metsä Board's paperboards are premium-quality paperboards with excellent printability and runnability.
9. Is Metsä Board a growth company or a high dividend yield company?
Metsä Board focuses on profitable growth in cooperation with its customers. The cornerstone of growth is to offer the industry's best products and new innovative packaging solutions. Growth investments are guided by at least a return on investment of 12%. In accordance with its dividend policy, Metsä Board aims to distribute at least 50% of the result for the financial period as dividend every year.
10. How much is the annual maintenance capex, and what are the biggest growth and/or development investments?
Metsä Board's annual maintenance investments are roughly EUR 50–60 million. In 2020, total investments were EUR 166 million, of which maintenance investments were approximately 32% and development investments 68%. For 2021–2022, Metsä Board estimates its total investments to be around EUR 450–550 million, depending on the investment decision of FBB capacity increase in Husum.
The largest ongoing investment is the first phase of the renewal of the Husum pulp mill, which includes the new recovery boiler and turbine. The total investment value is approximately EUR 360 million, divided over the period of 2019–2022. The planned second phase of the investment, during 2020s, includes a new fibre line.
In February 2021, Metsä Board started a development programme for its Kemi paperboard mill. The investment value is approximately EUR 67 million, divided over the period of 2021–2023.
In addition, Metsä Board has started pre-engineering for increasing the production capacity of folding boxboard at the Husum mill in Sweden by approximately 200,000 tonnes/year. The readiness to make the final investment decision is expected to be achieved in the summer of 2021.
11. What is Metsä Board's relationship with Metsä Fibre?
Metsä Fibre is a producer of pulp and sawn timber, and, like Metsä Board, part of Metsä Group. Metsä Board owns 24.9% of Metsä Fibre, which guarantees Metsä Board's self-sufficiency in pulp. Read more about Metsä Group's structure in here.
12. What is Metsä Board's total annual pulp surplus?
Metsä Board's net annual surplus in pulp is roughly 0.4 million tonnes. A significant part of this surplus is long-fibre chemical pulp, which is sold to Europe and APAC region, especially in China.
Metsä Board's own annual pulp production (includes chemical pulp production at Husum mill and BCTMP production at Joutseno and Kaskinen mills) is roughly 1.4 million tonnes and the share of Metsä Fibre's pulp production is approximately 0.8 million tonnes (24.9% of Metsä Fibre's annual production of approximately 3.2 million tonnes). Norra Skog’s 30% ownership in Husum pulp mill decreases Metsä Board’s pulp surplus by approximately 0.2 million tonnes. Metsä Board uses approximately 1.6 million tonnes of pulp annually for its paperboard production.
13. What is BCTMP?
BCTMP (bleached chemi-thermomechanical pulp) means bleached chemical pulp. Its manufacture combines mechanical and chemical pulping processes for removing the fibres. The middle layer of folding boxboard's three-layer structure is BCTMP and the outer layers are chemical pulp. BCTMP makes the folding boxboard lightweight yet stiff.
14. 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.
15. Who are the biggest shareholders of Metsä Board?
The largest shareholder is Metsäliitto Cooperative, with 48% share of total shares and 67% of total votes. Monthly updated list of Metsä Board's biggest shareholders can be found in here.
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