2. CREATING VALUE THROUGHCOOPERATION

3. Cooperatives Efficient solution for wood mobilisation wealth generation in family forest ownership conditions Succesful examples - small & large scale local heat generation cooperatives –Using wood from young stand thinnings large scale forest industries –Metsäliitto Group –Södra

4. Tenth largest forest industry group in the world Sales EUR 9.3 billion Personnel 25 000 Production units and sales offices in 30 countries 130 000 owners of private forests in Finland: – 5.3 million hectares of forests – 48% of all private forests Metsäliitto Cooperative Wood Supply Wood Products Industry Sales EUR 3.5 billion Metsä-Botnia Pulp Sales EUR 1.3 billion M-real Paper and Board Sales EUR 5.6 billion Metsä Tissue Tissue and Cooking Paper Sales EUR 0.8 billion Metsäliitto Group

5. Focus in Europe Metsäliitto Group (incl. Moelven) production plants Metsäliitto Wood Products Industry (Finnforest) + Moelven Metsä-Botnia M-real Metsä Tissue Head offices, Espoo

6. Business idea Metsäliitto procures and markets wood raw material produced by its members as efficiently as possible Marketing Transport Supply Processing Customers Forest owners To increase the shareholder / forest owner value

7. Optimisation through data network Wireless transmission Sap R/3 Transport planning GPS GIS 400 harvesters 420 trucks 400 forwarders 100 mills 350 foremen

8. Group history 1934 1934 Metsäliitto Oy *1953 Metsäliiton Selluloosa Oy founded Purchase of Wärtsilä Selluloosa Oy’s capital stock 1947 1947 Metsäliitto Cooperative 1948-59* 1948-59* Metsäliitto Cooperative’s first industrialisation period 1973 Metsäliitto Group 1977 Metsä-Botnia 1986 Metsä-Serla 2001 → M-real 2001 Thomesto 2005→ Metsäliitto 1990 Finnforest 2006 → Metsäliitto 1997 Metsä Tissue

9. Wood purchases from private forests in Finland million m³

10. Wood utilisation in Finland 2005 Metsäliitto’s wood purchases Kemi2 400 Kaskinen Merikarvia 2 000 Rauma2 600 Äänekoski Suolahti2 600 Vilppula1 400 Kuopio600 Lohja Kirkniemi800 Renko600 Tampere Kyröskoski1 000 Joutseno Simpele Myllykoski Sunila 5 100 1 000 m 3 Eskola140 Kyrö 370 Lappeenranta520 Soinlahti440 Punkaharju 400 Exports160 Metsäliitto Group’s production units: 19.7 million m 3 Total: 24.1 million m 3

11. Cooperatives provide solutions Effective wood mobilisation Marketing channel for members’ wood Raw material use optimisation Councel and forest management services for forest owners Promotion of sustainable forestry Wealth creation from renewable source

12. It actually works!