Metsä Board Annual review 2023

METSÄ BOARD Annual review 2023

■ 5.4 Cash and cash equivalents

Changes in liabilities and current interest-bearing receivables reported in the cash flow from financing activities in 2023 Non-cash changes

EUR million

2023

2022

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

Acquired / Sold businesses

Changes in foreign exchange rates

Cash at hand and in bank

13.2

17.6

Accounting principles Cash and cash equivalents consist of cash and other short-term, highly liquid investments that can be easily converted into an amount of cash known in advance and that carry a minimal risk of value changes. Metsä Board has classified as cash and cash equivalents the short-term money market investments made in accordance with its treasury policy and interest-bearing receiv- ables comparable to cash funds and available immediately from Metsä Group’s internal bank Metsä Group Treasury Oy. When determining the impairment of monetary assets, a model based on expected credit losses is applied. The expected credit losses are reviewed for the following 12 months.

New finance

Deposits to Metsä Group Treasury Oy

278.4 291.6

338.6 356.2

EUR million

1 Jan 2023 Cash flows

leases Other changes 31 Dec 2023

Total

Non-current interest-bearing liabilities incl. Current portion Bonds

249.0 187.6

0.2 0.3

249.2 176.1

Loans from financial institutions

-11.8

Strategy and financial targets

Finance lease liabilities

15.9

-7.1 0.0

0.0

4.0

12.8

8

Value creation

Other

0.0

0.0

Total

452.6

-18.9

0.0

4.0

0.5

438.1

Financial development 10 Key figures 12

Non-current non-interest bearing liabilities

3.9 0.4

4.7

0.0 0.0 0.0

8.7

Current interest-bearing liabilities

-0.4

Total

456.9

-14.6

4.0

0.5

446.8

Report of the Board of Directors

20 72

• Sustainability statement • Sustainability statement assurance report

Changes in liabilities and current interest-bearing receivables reported in the cash flow from financing activities in 2022 Non-cash changes

74

Consolidated financial statements

Acquired / Sold businesses

Changes in foreign exchange rates

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

New finance

■ 5.5 Borrowings and net debt

EUR million

1 Jan 2022 Cash flows

leases Other changes 31 Dec 2022

Non-current interest-bearing liabilities incl. Current portion Bonds

248.8 182.3

0.2 0.3 0.7

249.0 187.6

Loans from financial institutions

5.0

Accounting principles Financial liabilities are categorised initially recognised at fair value. The Group has classified all financial liabilities under “Amortised cost”. Trans- action costs are included in the original book value of financial liabilities measured at amortised cost. Subsequently, all financial liabilities are measured at amortised cost using the effective interest method.

Finance lease liabilities

15.9

-25.1 -20.1

18.0 18.0

-0.5 -0.5

7.0 7.0

15.9

Total

447.0

1.1

452.6

Non-current non-interest bearing liabilities

1.5

2.4

-0.0

0.0 0.9 2.0

3.9 0.4

Current interest-bearing liabilities

0.0

-0.5 -18.1

0.0

0.0

0.0

Total

448.6

18.0

-0.5

7.0

456.9

Interest-bearing Liabilities

Interest-bearing assets

Other changes consists of Oy Hangö Stevedoring Ab’s liabilities transferred to assets held for sale in 2022 and of accrual of effective interest during the financial year on financial liabilities valued.

EUR million

2023

2022

EUR million

2023

2022

Non-current interest-bearing financial liabilities Bonds

Non-current interest-bearing financial assets Loan receivables

249.2 164.4

249.0 175.9

2.5

2.3

Loans from financial institutions

Current interest-bearing financial assets Cash at hand and in bank Deposits to Metsä Group Treasury Oy

Lease liabilities

7.5

9.5

Bonds

Total

421.0

434.4

13.2

17.6

278.4 291.6

338.6 356.2

EUR million 2017–2027

Interest % 2023

2022 249.0 249.0

Current interest-bearing financial liabilities Current portion of non-current debt

Total

2.75

249.2 249.2

17.1

18.2

Total

Current liabilities to group companies

0.4

Interest-bearing financial assets total

294.0

358.5

Total

17.1

18.6

Metsä Board Corporation issued in September 2017 a bond of EUR 250 million. The bond carries a fixed coupon rate of 2.75 per cent, and the maturity date is 29 September 2027. The bond ranks senior and is unsecured.

Interest-bearing net debt

144.0

94.5

Interest-bearing financial liabilities total

438.1

453.0

Metsä Board has classified interest-bearing receivables comparable to cash funds and available immediately from Metsä Group’s internal bank Metsä Group Treasury Oy as Cash and cash equivalents.

170 Remuneration report 174 Investor relations and investor information

106

107

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023

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