■ 2.2 Sales
Geographical distribution of sales
Accounting principles Performance obligations arising from the Group’s sales contracts are mainly order-driven customer deliveries related to the sale of forest industry goods. Services mostly have an ancillary role in the Group’s business operations, or they complement deliveries of goods. The transaction price is the amount that the Group expects to receive in exchange for a fulfilled performance obligation. This amount, less sales-based value added taxes and sales taxes, is presented as the Group’s sales. The prices received by the Group are divided into a fixed part and a variable part. The variable part consists of various discounts based on, among other things, payment terms and purchased quantities, and is allocated by the Group as deductions from sales revenue in line with estimates of the extent of the discount the customer is deemed to be entitled to. The Group’s sales contracts mostly include obligations solely related to deliveries of goods, to which the allocation of the transaction price is uncomplicated. The terms of payment applied in the Group’s sales invoicing vary to some degree geographically and in different business areas, but the term of payment provided is nonetheless always clearly less than a year, when the financing component does not need to be separated. The Group recognises revenue from the sale of goods in the period during which the control of the delivered products passes to the customer, i.e. when the risks and benefits related to the sold products transfer to the customer. Services are recognised as income over time. Control to products transfers at the point of time when the products have been delivered in accordance with the agreed term of delivery. The Incoterms 2010 delivery terms most commonly applied by the Group and the corresponding times of sales income recognition are: D terms: Delivery of goods to the buyer at the agreed destina- tion at the agreed time C terms: Handing over the goods to be transported to the agreed destination by a carrier arranged for by the seller F terms: Handing over the goods to a carrier arranged for by the buyer The Group sees geographical distribution of sales as describing best the nature, amount, timing and uncertainty of sales revenue. Sales by geographical regions is presented below based on the location of customers.
EUR million
2022 209.8 174.6 108.6 137.5 99.5 117.3 41.9 112.0 104.4 121.4
2021 161.4 134.6 100.5 90.3 132.6 102.9 116.5
Germany
Italy
Sweden Turkey Finland
United Kingdom
Russia Spain France Poland Norway
79.6 77.5 91.7
8.1
3.3
The Netherlands
30.5 32.1
28.7 23.0
Belgium
Rest of EMEA
336.8
266.7
EMEA
1,634.5
1,409.3
USA
514.5
401.4
Canada
29.6
25.2 55.6
Rest of Americas
102.3 646.4 198.7
Americas
482.2 192.6
APAC Total
2,479.6
2,084.1
97
Consolidated financial statements | METSÄ BOARD ANNUAL AND SUSTAINABILITY REPORT 2022
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