Metsä Board Annual and sustainability report 2022

BUSINESS OPERATIONS AND VALUE CREATION

SUSTAINABILITY REPORT

FINANCIAL DEVELOPMENT

GOVERNANCE

Deferred tax assets and liabilities 2022

Charged to other comprehensive income

Charged to income statement

Translation differences Sold subsidiaries

EUR million

1 Jan 2022

31 Dec 2022

Deferred tax assets Pension obligations and provisions

3.8 3.4 4.8 2.2

-0.2

0.0

3.5 8.2 0.8 2.6 15.1 -5.7

Intercompany margins

4.9

-0.2

Unused tax loss carry-forwards Other temporary differences

-3.9

-0.1

0.3 1.2

0.1

Total

14.2 -5.8

-0.1 2.3 2.2

Netting against liabilities

-2.2 -1.0

Deferred tax assets in balance sheet

8.4

9.4

Deferred tax liabilities Pension obligations

3.3

0.0 19.1

-3.0

-0.2 -2.8

0.1

Depreciation differences and appropriations Other investments recognised at fair value

62.6 27.2

79.0 62.9

35.7 -0.5

Financial instruments

4.8

0.4 3.1 5.3

-0.7 -3.1 -0.1 -6.7

3.9

Net investments in foreign operations

Other temporary differences

4.1

-0.1 32.1

9.0

Total

102.0

27.8 -2.2 25.6

155.2

Netting against receivables

-5.8 96.2

2.3

-5.7

Deferred tax liabilities in balance sheet

32.1

-4.4

149.5

Deferred tax assets and liabilities 2021

Charged to other comprehensive income

Charged to income statement

Translation differences Sold subsidiaries

EUR million

1 Jan 2021

31 Dec 2021

Deferred tax assets Pension obligations and provisions

4.2 4.5 0.6 2.4

-0.2

0.0

0.0

-0.2

3.8 3.4 4.8 2.2

Intercompany margins

-1.2

0.1

Unused tax loss carry-forwards Other temporary differences

4.2

0.0 0.1 0.2 0.1 0.2

-0.3 2.5 -1.6

0.0 -0.1 0.0 0.0

Total

11.8 -4.3

-0.2

14.2 -5.8

Netting against liabilities

Deferred tax assets in balance sheet

7.5

0.9

-0.2

8.4

Deferred tax liabilities Pension obligations

1.3

-0.1 2.4

2.0

0.1

3.3

Depreciation differences and appropriations Other investments recognised at fair value

61.2 28.4

-0.6

-0.4

62.6 27.2

-1.2 -2.2

Financial instruments

6.7

0.3 0.1 -0.1 2.6 -1.6

0.0 -0.1 0.0 -0.6

4.8

Net investments in foreign operations

Other temporary differences

4.2

0.0 -1.4 0.0 -1.4

4.1

Total

101.8

-0.4

102.0

Netting against receivables

-4.3 97.5

0.1

-5.8 96.2

Deferred tax liabilities in balance sheet

1.0

-0.6

-0.4

The Group has recognised deferred tax assets related to operating loss carry-forwards for EUR 0.8 million in Germany. Management assesses that taxable profit will be available against which loss carry-forward can be utilised. The taxable loss carry-forwards of business operations, for which deferred tax assets have not been recognised due to uncertainty of amount or utilisation possibilities, amounted approximately to EUR 91 million (90) in Germany. The unrecognised deferred tax assets for these loss carry forwards is about EUR 29 million (29). Loss carry-forwards do not expire.

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