Metsä Board Annual review 2023

Report of the Board of the Directors and financial statements

METSÄ BOARD Annual review 2023

Key figures

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

SALES

PAPERBOARD DELIVERIES

METSÄ BOARD’S MARKET PULP DELIVERIES 1) 1,000 tonnes

EUR million

1,000 tonnes

Contents

2,500 2,000 1,500 1,000 500 0

2,000

600 500 400 300 200 100 0

Strategy and financial targets

1,500

■ Report of the Board of Directors 

■ Parent company

8

Value creation

12

1,000

financial statements 

126

Sustainability statement

20 70 72

500

1) includes chemical pulp and high-yield pulp (BCTMP)

Financial development 10 Key figures 12

Annexes to the Sustainability statement Sustainability statement assurance report 

Parent company income statement Parent company balance sheet Parent company cash flow statement

126 127 128 129 129 130 130 130 130 131 131 131 132 134 135 136 137 137 137 138 139 140 140

0

19 20 21 22 23

19 20 21 22 23

19 20 21 22 23

Report of the Board of Directors

■ Consolidated financial statements 

74

20 72

• Sustainability statement • Sustainability statement assurance report

Notes to the parent company financial statements 

COMPARABLE EBITDA EUR million, % of sales

COMPARABLE OPERATING RESULT EUR million, % of sales

CAPITAL EMPLOYED, EUR million RETURN ON CAPITAL EMPLOYED, %

1

Accounting policies

Consolidated statement of comprehensive income 

74 75 76 77 78 78 80 80 81 82 82 83 83 83 85 89 92 92 95 98 99 99

2 3 4 5 6 7 8 9

Sales

Consolidated balance sheet

Exceptional items

74

Consolidated financial statements

Statement of changes in shareholders’ equity

600 500 400 300 200 100 0

30 25 20 15 10 5 0

600 500 400 300 200 100 0

30 25 20 15 10 5 0

2,500 2,000 1,500 1,000 500 0

25 20 15 10 5 0

Other operating income Operating expenses

Consolidated cash flow statement

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

Depreciation and impairment charges

Notes to the consolidated financial statements 

Financial income and expenses

1

Accounting policies

Income taxes

2

Profitability

Intangible and tangible assets

2.1 Segment information

19 20 21 22 23

19 20 21 22 23

19 20 21 22 23

10 Investments

2.2 Sales

11

Receivables

2.3 Other operating income 2.4 Operating expenses

12 Shareholders’ equity 13 Mandatory provisions

3

Remuneration

14 Deferred tax assets and liabilities

CASH FLOW FROM OPERATIONS

TOTAL INVESTMENTS

INTEREST-BEARING NET DEBT, EUR million INTEREST-BEARING NET DEBT / EBITDA, COMPARABLE

3.1 Employee costs

15 Non-current liabilities

3.2 The management’s salaries, remuneration and pension expenses

EUR million

EUR million

16 Current liabilities

17 Financial instruments

3.3 Share-based payment

350 300 250 200 150 100 50 0

350 300 250 200 150 100 50 0

400 300 200 100 0 -100

2.0 1.5 1.0 0.5 0 -0.5

18 Disputes, legal proceedings and commitments

3.4 Retirement benefit obligations

19 Shares and holdings

4

Capital employed

4.1 Intangible assets

The Board’s proposal to the Annual General Meeting for the distribution of funds

4.2 Property, plant and equipment

142 143

4.3 Other investments

Auditor’s report

19 20 21 22 23

19 20 21 22 23

19 20 21 22 23

4.4 Inventories

 Shares and shareholders *

4.5 Trade receivables and other receivables

147 151 152 153 155 156

4.6 Other liabilities

100 100 101 102 102 105 105 106 106 108 114 119 121 121 124 124 125 125 125

Ten years in figures

4.7 Trade payables and other liabilities

Taxes

4.8 Provisions

TOTAL COSTS 2023

PERSONNEL AT THE END OF PERIOD

TOTAL RECORDABLE INJURY FREQUENCY (TRIF) per million hours worked

Production capacities Calculation of key ratios *

5

Capital structure and financial risks

5.1 Shareholders’ equity

EUR 1.7 billion

Comparable performance measures *

5.2 Financial income and expenses 5.3 Other financial assets 5.4 Cash and cash equivalents 5.5 Borrowings and net debt 5.6 Management of financial risks

2,500 2,000 1,500 1,000 500 0

12

Wood ����������������������������� 17% Pulp * ���������������������������� 16% Logistics ���������������������� 15% Chemicals �������������������� 14% Personnel ��������������������� 12% Energy ��������������������������� 11% Other fixed ������������������ 10% Other variable ��������������� 4%

■ Corporate governance

9

157

170 Remuneration report 174 Investor relations and investor information

6

Corporate governance statement • Board of Directors of Metsä Board 

157 165 168 170 174

5.7 Classification and fair values of financial assets and liabilities

3

• Corporate Management Team of Metsä Board 

0

19 20 21 22 23

19 20 21 22 23

6 7

Income taxes Group structure

Remuneration report

Investor relations and investor information

7.1 Group companies

*) Pulp: Metsä Board purchases all external pulp from its associated company Metsä Fibre, of which Metsä Board owns 24.9%. Metsä Fibre’s pulp cost structure in 2023: Wood 56%, Chemicals 13%, Logistics 9%, Personnel 6%, Other 16%.

Development of key figures per share can be found on page 150.

7.2 Acquisitions and operations disposed of

7.3 Related party transactions

* part of the Report of the Board of Directors

8

Other notes

8.1 Contingent liabilities, assets and commitments

8.2 Events after the financial period

This PDF is not official ESEF report

10

11

Financial development | METSÄ BOARD ANNUAL REVIEW 2023

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