Metsä Board Annual review 2023

METSÄ BOARD Annual review 2023

5. Capital structure and financial risks

Reserve for invested unrestricted equity The reserve for invested unrestricted equity fund includes other invest- ments of an equity nature and the subscription price of the shares to the extent that it is not recognised to the share capital according to the specific decision.

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

■ 5.1 Shareholders’ equity

Changes in share capital

Share capital

Strategy and financial targets

EUR million 1 Jan 2022

Series A

Series B

Total 557.9

EUR million

2023

2022

51.5

506.4

8

Value creation

Reserve for invested unrestricted equity

208.9

208.9

Conversion of A shares into B shares 31 Dec 2022 Conversion of A shares into B shares 31 Dec 2023

51.5

506.4

557.9

Financial development 10 Key figures 12

Treasury shares

51.5

506.4

557.9

Each series A share confers to its holder twenty (20) votes at the General Meeting of Shareholders, and each series B share confers to the holder one (1) vote. All shares carry the same right to receive a dividend. Metsä Board’s A shares can be converted to B shares if shareholder or representative of the nominee registered shares makes a written request for the conversion to the company. No monetary consideration is paid for the conversion.

Report of the Board of Directors

Accounting principles When treasury shares are acquired, the equity belonging to the owners of the parent company is reduced by an amount that consists of the consideration paid, including immediate transac- tion costs after taxes, until the treasury shares are canceled or reissued. If the purchased treasury shares are reissued, the con- sideration received, less transaction costs after taxes, is recorded in the equity belonging to the owners of the parent company.

20 72

• Sustainability statement • Sustainability statement assurance report

74

Consolidated financial statements

Number of shares

Outstanding shares

Treasury shares

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

shares

Series A

Series B

Total

Series B

Total

1 Jan 2022

32,802,175

322,710,571 -1,000,000 321,710,571

355,512,746 -1,000,000 354,512,746

355,512,746

Acquisition of treasury shares

1,000,000 1,000,000 -298,785 701,215

31 Dec 2022

32,802,175

355,512,746

At the end of the year, the group held 701,215 treasury shares (1,000,000), which corresponds to 0.2% (0.3) of the number of shares. The average purchase price of the shares was 7.82 euros (7.82) per share.

Disposal of treasury shares

298,785

298,785

31 Dec 2023

32,802,175

322,009,356

354,811,531

355,512,746

The share has no nominal value. All shares have been paid in full. The weighted average number of shares, which does not include Metsä Board Oyj’s treas- ury shares, is 354 750 822 (355,359,331) pieces.

Shares

Shares

EUR million

2023

2023

2022

2022

Treasury shares 1.1. Acquisition of treasury shares

-7.8 1,000,000

Fair value and other reserves

Translation differences Translation differences include translation differences arising from trans- lation of subsidiaries in other currencies than euro and gains and losses arising on hedging of net investments in these subsidiaries less deferred tax, when requirements of hedge accounting have been fulfilled. Net invest- ments were not hedged in Metsä Board Group in 2023 or in 2022.

-7.8 1,000,000

2.3 -298,785

Disposal of treasury shares

EUR million

2023 207.4

2022 282.2

-5.5

701,215

-7.8 1,000,000

Treasury shares 31.12.

Fair value reserve

Legal reserve and reserves stipulated by the Articles of Association

1.7

1.7

Total

209.1

283.9

Dividend Dividends payable by the company are recorded as deductions to equity in the period during which the shareholders in a general meeting have declared the dividend. The Board of Directors has proposed that a dividend of EUR 0.25 per share be distributed for the 2023 financial year.

Fair value reserve Fair value changes in derivatives designated as cash flow hedges are recorded to fair value reserve deducted by deferred tax effect. Additionally, the fair value change of Pohjolan Voima Oyj shares recognised by the Group as other investments is moved to the reserve with deferred tax effect deducted. Legal reserve and reserves stipulated by the Articles of Association Legal reserve and reserves stipulated by the Articles of Association have been created and accumulated on resolutions by the General Meeting of Shareholders.

Translation differences in other comprehensive income

Cumulative translation

EUR million

2023 -74.7

2022 -77.5

2023

2022 -49.9

SEK

2.8

RUB *

7.0 6.5

USD GBP

8.3 0.4 -0.1

13.1 -0.6

-4.7 0.2 -0.2 -1.9

-0.5 -0.1

Others

1.0

170 Remuneration report 174 Investor relations and investor information

Total

-66.0

-64.0

-36.9

* RUB denominated translation difference arises mostly from associate company Metsä Fibre.

In June 2022, as a consequence of the discontinuation of Russian business operations, the Group recognised an expense of EUR 0.6 million for accu- mulated Russian ruble-denominated translation differences. The Russian ruble-denominated translation differences accumulated since June 2022 have been reported in the financial items in the income statement. Since March 2022, the rate used for the Russian ruble is the closing rate for EUR/ RUB published by Refinitiv.

102

103

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023

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