Metsä Board Annual review 2023

We create value and well-being for several stakeholders

METSÄ BOARD Annual review 2023

Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6

Strategy and financial targets

We are continuously looking for opportunities to grow profitably and sustainably, and to generate value for our stakeholders with our operations. We help our customers achieve their sustainability targets with our paperboards and our expert services that support the circular economy.

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Value creation

Financial development 10 Key figures 12

Report of the Board of Directors

Resources

Business model

Outputs

Impacts

20 72

• Sustainability statement • Sustainability statement assurance report

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We produce resource-efficient fresh fibre paperboards from renewable raw materials, which support the principles of the circular economy and offer an alternative to fossil-based packaging materials. We are part of Metsä Group, and benefit from its unique value chain, from pure northern fibre to premium end products. We have high energy self-sufficiency, and our holding in our associated company Metsä Fibre ensures our over self-sufficiency in pulp. Our production is located in Finland and Sweden, and we have sales around the world. Our main markets are Europe and North America.

Consolidated financial statements

People and partnerships

Sustainable products and services

Customers

78 Notes to the consolidated financial statements 126 Parent company financial statements 129 Notes to the parent company financial statements 142 The Board’s proposal to the Annual General Meeting for the distribution of funds 143 Auditor’s Report 147 Shares and shareholders 151 Ten years in figures 152 Taxes 153 Production capacities 155 Calculation of key ratios and comparable performance measures Corporate governance 157 Corporate governance statement 165 • Board of Directors of Metsä Board 168 • Corporate Management Team of Metsä Board

• 2,300 employees in 17 countries • 36 apprentices • Active cooperation with local communities and educational institutions

• 1.3 million tonnes of premium fresh fibre paperboards • 1.0 million tonnes of pulp and BCTMP • 5 service entities that generate benefits throughout the packaging value chain (360 Services) • Common stock service improves availability and enables fast delivery to the customer

• Recyclable and sustainably produced products with a smaller carbon footprint 1) • Innovative and material-efficient packaging solutions that help reduce the use of plastic • Customer satisfaction NPS (Net Promoter Score) 40

Production and supply chain

Suppliers

• More than 3,400 suppliers • 8 production units in Finland and Sweden • Deliveries to approximately 100 countries

Emissions and side streams

• EUR 1.6 billion purchases from suppliers • 99% of suppliers are committed to the Supplier Code of Conduct • 19% of target group suppliers have set their own SBTi targets Personnel • EUR 200 million paid to employees as wages and benefits • 98% of the personnel have completed the Code of Conduct training

• 184,713 tonnes of fossil-based carbon dioxide emissions (Scope 1 + Scope 2 market-based) • 96% of the used water is returned to the waterbodies after treatment • 149,000 tonnes of by-products and waste most of which used as materials or energy

OUR SALES IN 2023 EUR 1,942 million

Natural resources • 6,3 million m 3 of sourced wood of which 91% is certified • Total energy consumption 7.6 TWh of which 90% is fossil free • Water intake 102 million m 3 • 254,000 dry tonnes of purchased pigments, adhesives and other raw materials

FOLDING BOXBOARD 59% (of sales) WHITE KRAFTLINERS 24% (of sales)

Shareholders

Intangible assets

• A sustainable investment; several recognitions from ESG evaluations conducted by third parties • EUR 89 million distributed to shareholders of the parent company as dividends • 5.1% comparable return on capital employed

MARKET PULP 13% (of sales)

• R&D expenditure EUR 7.3 million • An Excellence Centre in Äänekoski, Finland, and a satellite centre in Norwalk, the United States • Recoqnition for premium quality paperboards

170 Remuneration report 174 Investor relations and investor information

OTHER 4% (of sales)

Common value creation

Economic capital

• Taxes paid EUR 65 million • Total investments EUR 229 million • Aiming for 100% fossil free products and production, with science-based targets

• Capital invested EUR 2.5 billion • Approximately 62,000 shareholders in B series and 10,000 in A series

Further information on taxes on p. 152

1) based on third-party verified EPD reports, life cycle database values for alternative packaging materials and a series of life cycle and carbon footprint calculations carried out for customers in 2023

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Business operations and value creation | METSÄ BOARD ANNUAL REVIEW 2023

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