Metsä Board Annual review 2023

METSÄ BOARD Annual review 2023

■ 5.2 Financial income and expenses

■ 5.3 Other financial assets

Other comprehensive income after taxes 2023

Equity attributable to members of parent company

Non-con- trolling interest

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

Translation differences

Fair value and other reserves

Retained earnings

EUR million

2023

2022

Milj. euroa

Total

Total equity

Loan receivables

2.5 3.4 0.4 6.3

2.3 3.4 0.3 6.0

Accounting principles Interest income and expenses are recognised using the effective interest rate method. Dividend income is recognised when the right to receive a pay- ment is established. Borrowing costs are generally recognised as an expense in the period in which they are incurred. When an item of property, plant or equipment is involved in a major and long-term investment project, the borrowing costs directly due to the acquisition, construction or production of the asset are included in the asset’s acquisition cost. The Group presents net interest income and expenses related to defined benefit plans as financial income and expenses.

Items that will not be reclassified to profit or loss Actuarial gains/losses on defined benefit pension plans

Defined benefit pension plans (Note 3.5) Other receivables and accrued income

-1.0

-1.0

-1.0

Financial assets at fair value through other comprehensive income Share of profit from other comprehensive income of associated company

-87.8 -3.4 18.2 -72.9

-87.8 -3.4 18.5 -73.6

-87.8 -3.4 18.5 -73.6

Total

0.0 0.2 -0.7

Strategy and financial targets

Income tax relating to items that will not be reclassified

8

Value creation

Total

Items that may be reclassified to profit or loss Cash flow hedges Currency hedges Gains and losses recorded in equity

Financial development 10 Key figures 12

7.6 6.6

7.6 6.6

-0.7

6.8 6.6

Transferred to adjust Sales

Report of the Board of Directors

Interest hedges Gains and losses recorded in equity Commodity hedges Gains and losses recorded in equity Transferred to adjust purchases

20 72

• Sustainability statement • Sustainability statement assurance report

-1.7

-1.7

-1.7

-14.2 10.6

-14.2 10.6 -5.7 3.2 -1.9 -1.9 -1.8 -0.5

0.0 0.0

-14.3 10.7 -5.7 2.5 -2.8 -2.8

74

Consolidated financial statements

Share of profit from other comprehensive income of associated company

-5.7 3.2

Cahs flow hedges total Translation differences Translation differences total

-0.7 -0.8 -0.8 0.2 -1.4

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

-1.9 -1.9

EUR million

2023

2022

Exchange differences Commercial items

Income tax relating to items that may be reclassified

-1.8

-1.6 -1.9

1.5 1.3

5.8

Total

-1.9

1.4

Hedging, hedge accounting not applied

-10.1 -0.6 -5.0

Other items

-0.2

Other comprehensive income, net of tax

-1.9

-71.5

-0.7

-74.1

-1.4

-75.6

Exchange differences total

2.6

Other financial income Interest income on loans, other receivables and cash and cash equivalents

Other comprehensive income after taxes 2022

9.8

2.6

Equity attributable to members of parent company

Dividend income

0.0 9.9

0.3 3.0

Non-con- trolling interest

Other financial income total

Translation differences

Fair value and other reserves

Retained earnings

Milj. euroa

Total

Total equity

Other financial expense Interest expenses on financial liabilities carried at amortised cost using the effective interest method

Items that will not be reclassified to profit or loss Actuarial gains/losses on defined benefit pension plans

-12.0

-3.8

-4.7

-4.7

-4.7

Financial assets at fair value through other comprehensive income Share of profit from other comprehensive income of associated company

178.5

178.5

178.5

Other financial expenses

-0.4

-0.8 -4.7

3.0

0.0 1.8

3.0

3.0

Interest and other financial expenses, total

-12.4

Income tax relating to items that will not be reclassified

-35.7 145.8

-33.9 142.9

-33.9 142.9

Total

-2.9

Valuation of financial assets and liabilities and interest and other financial expenses, total

-12.4

-4.7

Items that may be reclassified to profit or loss Cash flow hedges Currency hedges Gains and losses recorded in equity

The Russian ruble-denominated translation differences accumulated since June 2022 as a consequence of the discontinuation of Russian business operations, amounting to EUR -0.3 million (-0.5), have been reported in other exchange rate differences in the income statement. Interest expenses have been capitalized as a part of the acquisition costs of invest- ments in the amount of EUR 2.0 million (8.3).

-63.0

-63.0

0.5 -0.1

-62.5

Transferred to adjust Sales

87.4

87.4

87.3

Interest hedges Gains and losses recorded in equity Transferred to adjust net financial items Commodity hedges Gains and losses recorded in equity

4.4

4.4

4.4

46.6 -78.6 22.4 19.1

46.6 -78.6 22.4 19.1 -42.6

0.8 -1.1

47.4

170 Remuneration report 174 Investor relations and investor information

Transferred to adjust purchases

-79.7 22.4 19.3 -56.3

Share of profit from other comprehensive income of associated company

Cahs flow hedges total Translation differences

0.2

-42.6

-13.7

Share of profit from other comprehensive income of associated company

5.8

5.8

5.8

Translation differences total

-36.9

-36.9

-13.7

-50.6

Income tax relating to items that may be reclassified

0.7

0.7

0.0

0.6

Total

-36.9

19.8

-17.1

-13.6

-30.6

Other comprehensive income, net of tax

-36.9

165.6

-2.9

125.8

-13.6

112.2

104

105

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023

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