Interim Report 1 January-30 June 2009: Weak market

In the first half of the year, Botnia's sales fell by 28% compared to the
corresponding period last year, amounting to EUR 585.0 million (EUR 810.4
million January-June 2008). Pulp sales volume remained at the same level as
last year, i.e. 1,560,000 tonnes. 

Operating result excluding non-recurring items was EUR -89.5 million, falling
clearly short of the first half of 2008 (EUR 119.7 million). The rapid decline
of the market situation and the price of pulp had a considerable impact on the
decline of net sales and the result. The result was also weighed down by
production curtailment shutdowns at all Finnish mills. However the utilisation
rate of the Uruguay mill has remained high and the result of the mill slightly
positive. 

In the second quarter of 2009, Botnia's sales fell by almost 7% compared to the
first quarter, amounting to EUR 282.5 million (EUR 302.8 million in
January-March 2009). Botnia's operating result remained weak in the second
quarter at EUR -42.1 million (-47.4 in January-March 2009). Total net sales for
the second quarter of 2009 remained at the same level as in the previous
quarter. The currency-denominated market prices increased by 3% for softwood
pulp and decreased by 5% for hardwood pulp. The U.S. dollar weakened by almost
5% compared with the first quarter. 

The Fray Bentos mill reached its production target by producing a million
tonnes of pulp between May 2008 and April 2009. In total, the mill has now
produced over 1,300,000 tonnes of pulp, which equates to 57 shiploads from the
Port of Nueva Palmira to Europe and Asia. 

Global pulp inventory levels are normalising, and the recent price increases
suggest slight signs of positive profit development for the second half of the
year. Paper mill utilisation rates are, however, expected to remain low in
Europe. This means that no significant improvement is to be expected in the
market situation as far as Europe is concerned. 

>>Read more from complete interim report

• Sales EUR 585.0 million (EUR 810.4 million in January-June 2008)
• Operating profit excluding non-recurring items EUR -89.5 million (EUR 119.7
  million) Operating profit including non-recurring items EUR -164.5 million
  (EUR 119.7 
  million) 
• Profit before taxes and excluding non-recurring items EUR -104.0 million (EUR
  99.1 million) 
• Investments EUR 19,7 million (EUR 43.2 million)
• Return on capital employed excluding non-recurring items -8.5% (12.5%)
  Return on capital employed including non-recurring items -15.7% (12.5%)
• Equity ratio 61.0% (60.9%)
• Net gearing 42.7% (41.1%)
Interim Report 1 January-30 June 2009: Weak market situation reduces Botnia's net sales and result
