METSÄ BOARD Annual review 2023
■ 4.6 Other non-current liabilities
■ 4.8 Provisions
Case-specific impairments and impairments determined by applying the model based on expected credit losses deducted from trade receivables are as follows:
EUR million
2023
2022
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Advance payments received
8.2
1.1
Accounting principles A provision is recognised when, as a result of an earlier event, the Group has a legal or actual obligation, the realisation of a payment obligation is likely, and the amount of the obligation can be reliably estimated. Any reimbursement from a third party is presented as an asset separate from the provision if it is practically certain that reimbursement will be received. Restructuring A restructuring provision is recorded when the Group has incurred a legal or constructive obligation to make a payment. Termination payments are recorded when a detailed plan has been made for the restructuring and the Group has raised valid expectations in those affected that it will carry out the restructuring by starting to implement that plan or announcing its main features to those affected by it. If the Group makes an offer to employees concerning voluntary resignation against benefits determined in the offer, the liability arising from this is recorded when the Group can no longer withdraw its offer. The obligation arising from such an offer is based on the number of employees that the Group expects to accept the offer. Benefits falling due in twelve months’ time or later are measured at their present value.
Environmental obligations Costs arising from environmental remediation that do not increase present or future revenue are recorded as expenses. An environmen- tal obligation is recognised if, based on the current interpretation of environmental legislation, an obligation has likely arisen and its amount can be reliably estimated. The obligation is recorded at the current value of estimated future expenses. A sum corresponding to the obligation is also recognised in property, plant and equipment. Other provisions Other provisions mainly consist of provisions arising from estimated cost of future restoration of leased sites. Key estimates and judgements The determination of the criteria for the recognition of provisions involves the management’s judgement. The amounts recognised as provisions are based on the management’s best assessment of the expenses required to handle the obligation. As the timing and amount of these expenses are not fully certain, the actual expenses may differ significantly from the original estimate. The book value of provisions is regularly reviewed and adjusted as required, taking into account changes in cost assessments, regulation, technology and conditions.
EUR million
2023
2022
Subsidies
2.4 0.5 3.9
Value 1 Jan
1.2 0.6 -1.2 0.6
2.5 0.6 -1.9
Accruals and deferred income
0.5 8.7
Increase Decrease
Total
Value 31 Dec
1.2
Strategy and financial targets
■ 4.7 Trade payables and other liabilities
8
Value creation
Credit losses recognised were EUR 0.1 million (0.2).
EUR million
2023
2022
Financial development 10 Key figures 12
Advance payments received
5.4
5.1
Trade payables
206.5
223.0
Age distribution of trade receivables less impairments
Trade payables, Supply Chain Finance schemes
55.3 13.1
91.0 28.1
Report of the Board of Directors
Other liabilities
EUR million Not overdue
2023 153.8
2022 251.2
Accruals and deferred income Customer discounts
20 72
• Sustainability statement • Sustainability statement assurance report
20.4 20.8 31.6 24.3 377.5
23.2 46.3 31.7 34.2
Overdue
Purchase-related items
Less than 30 days
25.0
17.3
Employee costs
Between 31 and 60 days Between 61 and 90 days Between 91 and 180 days
8.0 0.5 0.2 2.2
2.1
74
Consolidated financial statements
Other accrued expenses
-0.3
Total
482.7
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
Over 180 days
1.0
With financing banks, Metsä Group has established Supply Chain Finance (SCF) schemes aimed at a few key suppliers. In the schemes, the suppliers are offered the option of selling their Metsä Group receivables to a bank providing the SCF scheme. The SCF schemes partly replace the earlier advance payment arrangements, and their aim is not to cause a significant deviation from Metsä Group’s normal payment terms.
Total
189.7
271.4
Provisions
EUR million
Restructuring
Environmental
Other
Total
1 Jan 2023
4.9
2.0 0.0 0.0
0.0
6.9 0.0 0.0 -3.8
Translation differences
Increases
Utilised during the year
-3.8
31 Dec 2023
1.1
2.0
0.0
3.2
Non-current
1.7
0.0
1.7 1.4 3.2
Current
1.1 1.1
0.3 2.0
Total
0.0
1 Jan 2022
0.2 0.0 4.9
2.7
0.0 0.0
3.0 0.0 4.9 -0.7 -0.3
Translation differences
Increases
Utilised during the year Unused amounts reversed
-0.7 -0.1 2.0
0.0
-0.2
31 Dec 2022
4.9
0.0
6.9
Non-current
2.0
0.0
2.0 4.9 6.9
170 Remuneration report 174 Investor relations and investor information
Current
4.9 4.9
Total
2.0
0.0
Provisions are estimated to be utilised within five years. The Group companies have environmental responsibilities related to former industrial activities at sites that have since been closed, sold or leased, and from decommissioned landfill sites. Provisions for the costs of land rehabilitation work have been made in cases where it has been possible to measure the Group’s liability for land contamination and any post-treatment obligations.
100
101
Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023
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