Metsä Board Annual and sustainability report 2022

Operating environment supports growing demand for fresh fibre paperboards • Population growth, urbanisation and rising living standards drive packaging • Global e-commerce continues to grow • Availability and quality of recycled fibre is declining • Regulation and consumer preferences favour fossil free packaging materials • The requirements of the circular economy become more specific and drive the development of the industry

We invest in sustainable and profitable growth

Metsä Board has significant investments under- way and in the pipeline to achieve sustainable growth in fibre-based packaging materials. In line with our strategy, we are also renewing our industrial operations to further strengthen our competitiveness. By using the best available technology, we improve our production and resource efficiency and reduce the carbon footprint of our products. We will increase the annual production capac- ity of folding boxboard at the Husum integrated mill by some 200,000 tonnes and of white kraftliners at the Kemi paperboard mill by some 40,000 tonnes. We expect both investments to be completed in the second half of 2023. The new recovery boiler and turbine of the Husum pulp mill started up at the end of 2022. This increased the mill’s bioenergy production and considerably improved the integrate’s energy self-sufficiency. In the renewal’s second phase, during the 2020s, an investment decision will be made concerning the renewal of the mill’s fibre line. The renewal will strengthen the Husum integrate’s role as an efficient and sustainable platform for the long-term development of paperboard production and is an important step towards our target of entirely fossil free mills. In the autumn of 2022, we initiated a pre-engineering process for the new Kaskinen paperboard mill, with an annual capacity of 800,000 tonnes. A potential investment decision will be made in 2024 at the earliest. The planning of the new mill is based on fossil free production, world-class resource and production efficiency, and a product concept that reduces carbon footprint.

Our strategic programmes We implement our strategy through five strategic programmes that drive sustainable growth in fibre-based packaging materials and industrial efficiency.

Premium supplier

Effective innovation

Safe and efficient operations and organic growth

Leader in sustainability

Motivated people

Our financial targets

COMPARABLE RETURN ON CAPITAL EMPLOYED %

INTEREST-BEARING NET DEBT / COMPARABLE EBITDA

DIVIDEND / NET RESULT

2.5 2.0

60 50 40 30 20 10 0

Read more on Metsä Board’s investments at metsagroup.com/metsaboard/investors/metsa-board- as-an-investment/investments/

1.5 1.0 0.5 0 -0.5

18 19 20 21 22

Target > 12%

Target < 2.5

Target at least > 50%

Business operations and value creation | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022