Metsä Board Annual and sustainability report 2022

Hedging of foreign exchange transaction exposure 31.12.2022

Annual transaction exposure

EUR million

USD

GBP

SEK

AUD

CAD Other long Other short

Total

Transaction exposure, net (mill. currency units) Transaction exposure, net (EUR million) Transaction exposure hedging (EUR million) Hedging at the end of the year (months)

1,069 1,003 -698

96

-5,941

33 23

108 -69

-534 462 10.4

9 0

0 0

1,676 -1,242

-12 6.6 5.5

8.4 8.0

7.7 7.8

8.9 8.5

Average hedging in 2022 (months)

9.8

Average rate of hedging at the end of the year

1.0403

0.8709

10.7134

Hedging of foreign exchange transaction exposure 31.12.2021

Annual transaction exposure

EUR million

USD 920

GBP

SEK

AUD

CAD Other long Other short

Total

Transaction exposure, net (mill. currency units) Transaction exposure, net (EUR million) Transaction exposure hedging (EUR million) Hedging at the end of the year (months)

80 95

-5,296

11

37 26

812

-517 400

7 0

3 0

0 0

1,460 -980

-520

-59

0

7.7

7.5 7.6

9.3

0.0 1.3

0.0 1.0

8.1 7.9

Average hedging in 2021 (months)

6.9

10.0

Average rate of hedging at the end of the year

1.1655

0.8550

10.2117

Net investments in a foreign entity 31.12.2022

Equity exposure

EUR million

USD

GBP

SEK

Others

Total

Equity exposure (mill. currency units)

109 103

3 4

7,769

Equity exposure (EUR million)

699

3

808

Net investments in a foreign entity 31.12.2021

Equity exposure

EUR million

USD

GBP

SEK

Others

Total

Equity exposure (mill. currency units)

112 99

8

5,892

Equity exposure (EUR million)

10

575

3

685

Interest rate risk / duration and re-pricing structure of loans (incl. interest rate derivatives) 31.12.2022

31 Dec 2022 Re-pricing structure of interest rates of loans

Loan amount (EUR million)

Average interest rate (%)

Interest rate sensitivity 1) (EUR million)

Duration (months)

1–4/2023

5–8/2023

9–12/2023

2024

2025

2026

>2026

453

36.1

2.2

-2.3

54

8

2

14

63

14

299

Interest rate risk / duration and re-pricing structure of loans (incl. interest rate derivatives) 31.12.2021

31 Dec 2021 Re-pricing structure of interest rates of loans

Loan amount (EUR million)

Average interest rate (%)

Interest rate sensitivity 1) (EUR million)

Duration (months)

1–4/2022

5–8/2022

9–12/2022

2023

2024

2025

>2025

449

45.3

2.3

-5.0

-97

9

157

76

35

84

377

1) Interest rate sensitivity is an estimate of the effect of an interest rate change of one percent in one direction on net interest cost based on year end exposure

Hedging of electricity price risk exposure

GWh

31 Dec 22

31 Dec 21

Electricity exposure, net

288

555 135

Electricity hedging

Hedging at the end of the year (%)

24

Average price of hedging at the end of the year (e/MWh)

32.07

Electricity price risk is hedged based on defined risk management policy by physical contracts or by financial contracts. The net electricity exposure has been calculated by taking into account the own and associated companies´ electricity production. The company abandoned electricity hedging and the hedging derivatives matured in 2022.

125

Consolidated financial statements | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022

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