The Board of Directors ("Board") of Metsä Board Corporation ("Metsä Board") has made a decision on Metsä Board's and its subsidiaries' (collectively "Group") management's performance- and share-based incentive scheme ("Performance-based Scheme") and the key employees' share-based incentive scheme ("Incentive Scheme"), both for 2026-2030.

Management's long term performance-based scheme 2026-2030

The purpose of the Performance-based Scheme is to align the interests of the key employees and the shareholders to increase the company's value in the long-term, to commit key employees to implement the company's strategy and objectives and to offer a competitive incentive plan based on earning and accumulating shares in the company.

The Performance-based Scheme 2026-2030 consists of three performance periods, covering the financial years 2026-2028, 2027-2029 and 2028-2030 respectively. Each performance period is followed by a one-year restriction period during which the shares received as a reward cannot be sold, transferred, pledged or otherwise assigned. The Board of Directors will resolve annually on the commencement and details of the performance period.

In the plan, the target group has an opportunity to earn Metsä Board's B shares based on performance. The performance criteria for the performance period 2026-2028 of the plan are tied to Metsä Board's and Metsä Group's Return on Capital Employed (ROCE), cost savings and profitability improvement programme targets, as well as sustainability targets. The Board of Directors decides on the performance criteria and their threshold values separately for each performance period. The potential rewards from the plan will be paid after the end of each performance period.

Based on current information, the rewards paid based on the earnings period 2026-2028 are estimated to be approximately EUR 2.5 million at the target level, and EUR 5.2 million at the maximum level. The share of the rewards paid in shares for the earnings period 2026-2028 is currently estimated to approximately 900,000 shares overall at the target level, and approximately 1.8 million shares at the maximum level, including the share paid in cash. The target group in the performance period 2026-2028 consists of approximately 25 key employees, including the members of the Corporate Leadership Team and the CEO. The Board of Directors may reduce the confirmed reward if the confirmed reward exceeds the level determined by the Board of Directors.

The potential reward will be paid partly in Metsä Board's B shares and partly in cash. The cash component of the reward is intended to cover taxes and statutory social security contributions arising from the reward to the key employee. As a rule, no reward will be paid if the key employee's employment or director contract terminates before the reward payment. As a rule, a key employee is not entitled to a reward if the key employee's employment or director contract terminates before the end of the restriction period.

Key employees' long term share-based Incentive scheme 2026-2030

The Incentive Scheme will be established as part of the Group's key employees' incentive and engagement scheme. The purpose of the Incentive Scheme is to incentivise key employees to implement the Group's shared strategy and offer them a competitive reward scheme based on shareholding, and to align the key employees' and the shareholders goals in increasing the value of the Group in the long term.

The Incentive Scheme offers the key employees in its target group the opportunity to receive Shares as rewards while their employment or executive employment relationship is valid and they continue to engage in work until the end of the restriction period. The Board determines the key employees belonging to the target group during the validity of the Incentive Scheme and determines their rewards. The Incentive Scheme consists of restriction periods that last a minimum of twelve (12) months and a maximum of thirty-six (36) months. The Board decides on the starting date and duration of the restriction period for each key employee.

The reward paid according to the Incentive Scheme consists of a share paid in Shares and a share paid in cash. The share paid in Shares is defined as the net reward after the share in cash has covered the taxes and other expenses incurred to the key employee due to the reward. The Rewards of the Incentive Scheme are paid when the restriction period ends. The Incentive Scheme does not have any particular earnings criteria for the rewards. However, the person's employment relationship must remain valid until the end of the restriction period for them to be eligible for the reward. If the key employee terminates their employment or executive employment agreement with a company belonging to the Group, or if the key employee's employment or executive employment agreement is collectively agreed to be terminated before the reward is paid, the key employee is not eligible for rewards paid according to the scheme, as a rule.

The Board determines the Group's key employees to be covered by the Incentive Scheme according to their discretion.

METSÄ BOARD CORPORATION