04/02/2010 Metsä Tissue's sales for January-December 2009 totalled EUR 890 million Metsä Tissue's sales for January-December 2009 totalled EUR 890 million (930), with operating profit amounting to EUR 93 million (42). Sales declined by -4% on the previous year as a result of adverse exchange rates (-3%) and lower sales volumes (-1%). The sales volumes of Metsä Tissue's own brands - notably Lambi and Serla - showed an increase on the previous year. After a decline in demand in the first two quarters, the company's Away-from-Home business increased its sales volumes during the latter half of the year. “The worldwide pandemic threat of the H1N1 virus clearly increased public awareness of the importance of especially good hand hygiene, which had a positive impact on sales, “comments Hannu Kottonen, CEO. “Pulp prices continued to climb in the second half of the year. By the end of the year they were 25% higher than at the end of spring. The prices of pulp and other raw materials as well as transport costs are expected to rise further in 2010. Recovered paper is in growing demand both in Europe and as an export to Asia, which is likely to limit its availability and push up prices”, Kottonen continues. Metsä Tissue continued to invest heavily in its branded business. One example was the launch of the Lambi Limited Collection of design-patterned household and toilet papers in all its main markets during the first quarter. The company's mainstream brands Serla, Mola and Tento were upgraded during the year with new product categories, designs and product features such as balms and fragrances. The increased consumer preference and sales growth gained by Metsä Tissue's enhanced Serla products are among the positive outcomes of recent investment in the company's Mariestad and Mänttä mills. In September, Metsä Tissue launched the SAGA brand targeted at the baking, cooking, food processing and food service segments. From now on, the company's baking and cooking offering will be marketed under the SAGA brand. The Away-from-Home business and its Katrin brand launched a Hand Care Programme for workplaces. Other recent launches include a new line of specialty wipes for industrial cleaning and wiping. In addition, Katrin released a new range of dispenser designs to complement its offering of professional washroom solutions. Metsä Tissue attracted a great deal of interest in the European media upon release of its School Hygiene Report based on an earlier study conducted in seven European countries. During the second quarter, Metsä Tissue announced the rebuild of paper machine 10 at the Mänttä mill. The rebuild will take place during the first half of 2010. Construction of new warehouses for finished goods was completed at the company's Zilina mill, and these efficient new premises were inaugurated during the spring. In September, Metsä Tissue announced its streamlined operating model and organisation, which now comprises three instead of five business areas. Metsä Tissue's three businesses are: Consumer, Away-from-Home and Baking & Cooking. The napkin category is to be developed further and expanded as an integrated part of the Consumer and Away-from-Home businesses. The company invested in three napkin machines and ancillary printing and packaging equipment. This investment will further increase flexibility and supply reliability. Metsä Tissue's strategy was crystallised and its enhanced internal communication and implementation were launched during the second half of the year. Metsä Tissue has newly upgraded its website to more effectively serve the company's business targets. Action plans were drawn up and implemented on the basis of a job satisfaction survey carried out earlier in the year. Human Resources completed SAP rollout and the European Works Council (EWC) agreement was renewed. Metsä Tissue has continued to improve its energy efficiency and sustainability through systematic development of its operations. Following an energy efficiency audit, Metsä Tissue's Finnish and German operations were granted Energy Efficiency Management certificates. Several plants continued to decrease their consumption of fresh water during the year, the Warsaw plant in Poland by as much as 30%. The demand for tissue and cooking paper products is expected to remain relatively stable. Raw material and transport costs are meanwhile expected to continue climbing. Metsä Tissue's cash flow generation and liquidity is good. Investments for the entire year totalled 35 million euros. Following up intensive efficiency improvement programmes completed over the last couple of years, the company has expressed its intention to seek growth via development projects and programmes. Tissue and Cooking Papers Q4/09 Q4/08 1-12/09 1-12/08 Sales, MEUR 229 234 890 930 EBITDA, MEUR 31 24 135 98 - ” -, excl. non-recurring items, MEUR 31 25 135 99 Depreciation and impairment, MEUR 11 14 42 56 Operating result, MEUR 21 10 93 42 - ” -, excl. non-recurring items, MEUR 21 10 93 43 Investments, MEUR 17 16 35 33 Personnel at end of period 3 152 3 222 3 152 3 222