22/10/2009 Metsä Tissue continues positive performance The sales of Metsä Tissue totalled EUR 661 million (695) and operating profit EUR 72 million (33) in January-September 2009. Sales declined by -5% compared to the previous year as a result of adverse exchange rates (-5%) and lower sales volumes (-2%). The sales volume of Metsä Tissue's own brands increased compared to the previous year; the Serla brand, in particular, continued to be strong. During the period, the company's Away-from-Home business increased its sales volumes after the slightly weaker first half of the year. The worldwide pandemic threat of H1N1 virus clearly increased the awareness of the importance of a good level of hygiene both at home and at work. Pulp prices began to rise after spring. The prices of pulp, other raw material and transport costs are expected to rise further. The availability of recovered fibre is more limited due to reduced paper consumption. Metsä Tissue announced its streamlined operating model and organisation, which now comprises three instead of the former five business areas. Today, Metsä Tissue's businesses are: Consumer, Away-from-Home and Baking & Cooking. The napkin category is seen as an area to be further developed and expanded as an integrated part of the Consumer and Away-from-Home businesses. “The organisational and structural simplification, followed by streamlined processes will increase the company's agility and free capacity to enhance performance and competences. Our aim is to see the positive results at the customer interface as well as in further strategic brand growth.” says Hannu Kottonen, CEO. The company invested in three additional napkin machines including printing and packaging equipment. The investment will further increase flexibility and supply reliability. New supply locations within the existing mill network are under evaluation. With the launch of the SAGA brand in September, the company unveiled its strategy targeted at the baking, cooking, food processing and food service segments. In future, the Metsä Tissue baking and cooking offering will be sold and marketed under the SAGA brand. SAGA communicates the multiple customer benefits to households, professional chefs as well as to paper converters. The company's Katrin brand released its new dispenser designs Silver and White, which include close to 40 new products to cover the complete washroom solution needs. Metsä Tissue's School Hygiene Report, based on a study made in seven European countries, revealed that school children suffer from school toilet phobia. The report gained much interest in the European media. Serla Herbal Sensitive, a Swan-labelled extra-gentle toilet tissue containing vitamin B5 and herbal balsam was launched in Finland and the four-ply Lambi Aloe Vera product was launched in Eastern Europe. The demand for tissue and cooking paper products is expected to remain stable regardless of the variations between different businesses and geographical areas. In spite of the recession, high quality consumer products have been the choice of European consumers as seen by the company's strong brand sales. Metsä Tissue's cash flow generation and liquidity is good. After intensive efficiency improvement programmes over the last couple of years, the company is oriented to seek growth via several development programmes. Tissue and Cooking Papers 1-9/09 1-9/08 Q3/09 Q3/08 Sales 661 695 226 235 EBITDA 103 74 42 26 - ” -, excl. non-recurring items 103 75 42 27 Depreciation and impairment -31 -42 -11 -13 Operating result 72 33 31 13 - ” -, excl. non-recurring items 72 34 31 14 Investments 18 17 8 7 Personnel at end of period 3 216 3 245 3 216 3 245