Metsä Board Annual and sustainability report 2022

BUSINESS OPERATIONS AND VALUE CREATION

SUSTAINABILITY REPORT

FINANCIAL DEVELOPMENT

GOVERNANCE

17. Financial Instruments

Financial derivatives 2022

Nominal value

Fair value

Fair value

Fair value through profit and loss

Fair value through fair value reserve 3,147,221.92 3,147,221.92

Derivative assets 3,147,221.92 3,147,221.92

Derivative liabilities

EUR

Total

Interest rate swaps

100,000,000.00 100,000,000.00

0.00 0.00

3,147,221.92 3,147,221.92

0.00 0.00

Total interest rate derivatives

Currency forward agreements Currency option agreements

1,790,092,903.51 281,267,579.22 2,071,360,482.73

31,341,614.74 25,038,675.12 6,302,939.62

1,378,520.10 4,924,419.66

2,200,385.60

137,976.17

2,062,409.43

0.00 2,062,409.43

Currency derivates total

33,542,000.34 25,176,651.29 8,365,349.05

1,378,520.10 6,986,829.09

Oil derivatives

27,484,187.40 32,698,452.00 60,182,639.40

538,987.95

3,877,616.12 -3,338,628.17

0.00 -3,338,628.17

Other commodity derivatives

6,195,460.90 1,164,398.84 5,031,062.06 6,734,448.85 5,042,014.96 1,692,433.89

2,089,620.00 2,941,442.06

Commodity derivatives

2,089,620.00

-397,186.11

Derivatives total

2,231,543,122.13

43,423,671.11

30,218,666.25 13,205,004.86

3,468,140.10 9,736,864.90

Financial derivatives 2021

Nominal value

Fair value

Fair value

Fair value through profit and loss

Fair value through fair value reserve

Derivative assets

Derivative liabilities 1,691,108.57 1,691,108.57

EUR

Total

Interest rate swaps

100,000,000.00 100,000,000.00

-1,691,108.57 -1,691,108.57

0.00 -1,691,108.43 0.00 -1,691,108.43

Total interest rate derivatives

Currency forward agreements Currency option agreements

1,066,871,526.94

2,033,435.72 18,507,293.72 -16,473,858.00

-157,510.75 -16,316,347.25

0.00

0.00

0.00

0.00

0.00

0.00

Currency derivates total

1,066,871,526.94

2,033,435.72 18,507,293.72 -16,473,858.00

-157,510.75 -16,316,347.25

Oil derivatives

17,103,868.80 14,030,062.80 31,133,931.60

3,658,212.43 23,229,041.72 26,887,254.15

4,129.93 3,654,082.50 78,346.70 23,150,695.02 82,476.63 26,804,777.52

0.00 3,654,082.50 0.00 23,150,695.02 0.00 26,804,777.52

Other commodity derivatives

Commodity derivatives

Derivatives total

1,198,005,458.54

28,920,689.87 20,280,878.92

8,639,810.95

-157,510.75

8,797,321.84

All derivative agreements of Metsä Board Oyj have been entered into for hedging purpose, and cash flow hedge accounting according to IFRS 9 has been applied in major part of the agreements within IFRS financial statements. Only the part of currency derivatives designated as hedges of accounts receivables and accounts payables is not directed to hedge ac- counting. Interest rate derivatives are interest rate swaps maturing in 1–3 years and entered into to hedge the floating rate interest payments. Currency derivatives contracts concluded to hedge currency cash flows mature fully during 2022. Commodity derivatives are natural gas forwards and fuel oil forwards directed to hedge the cash flows arising from purchases of these commodities. Commodity forwards mature fully during 2023. A more detailed description of financial risk management and the principles applied to derivative contracts is includ- ed in note 5.6 and 5.7 of the concolidated Group accounts.

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