Metsä Board Annual review 2023

METSÄ BOARD Annual review 2023

7. Group structure

Deferred tax assets and liabilities 2023

Charged to other comprehensive income

Charged to income statement

Translation differences

EUR million

1 Jan 2023

31 Dec 2023

■ 7.1 Group companies

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

Deferred tax assets Rental agreements

2.3 3.5 8.2 0.8 2.6 17.3 -7.9 9.4

1.8

0.0 0.2

4.1 3.5 4.8

Pension obligations and provisions

-0.4 -3.2 28.0

0.2

Accounting principles

The parent company’s owners’ and non-controlling interests’ shares of the result for the period and comprehensive income are presented in the comprehensive income statement. The non-controlling interests’ share of equity is presented as a separate item under equity on the balance sheet. Joint operations A joint operation is a joint arrangement in which parties who have joint control in the arrangement have rights concerning the assets related to the arrangement and obligations concerning liabilities. The Group consolidates its proportion of the assets, liabilities, income and expenses of the joint operation in its financial statements.

Intercompany margins

-0.2

Unused tax loss carry-forwards Other temporary differences

1.0 0.2 1.2

29.7

Subsidiaries The financial statements include all of the companies controlled by the Group. Intra-Group shareholding is eliminated using the acquisition method. Intra-Group business transactions, receivables, liabilities and unrealised gains, as well as internal distribution of profits, are elimi- nated on consolidation. Unrealised losses arising from impairment are not eliminated. When necessary, the accounting principles applied by subsidiaries have been adjusted to comply with the Group’s principles.

Strategy and financial targets

1.0

3.8

Total

27.2

0.2

45.9 -36.4

8

Value creation

Netting against liabilities

-26.8

-1.6 -0.4

Deferred tax assets in balance sheet

0.4

0.2

9.5

Financial development 10 Key figures 12

Deferred tax liabilities Rental agreements Pension obligations

2.5 0.1

1.4 0.1

3.9 0.3

Report of the Board of Directors

-0.1

0.2 3.9

Depreciation differences and appropriations Other investments recognised at fair value

79.0 62.9

31.2

114.1 44.7

20 72

• Sustainability statement • Sustainability statement assurance report

-18.2

Financial instruments

3.9 9.0

-0.2

1.6

0.5 -3.1

5.9 6.6

Other temporary differences

0.7

74

Consolidated financial statements

Total

157.4

33.6

-16.7

1.2

175.5 -36.4 139.2

Netting against receivables

-7.9

-26.8

-1.6 -0.4

Subsidiaries and joint operations 31 December 2023

Deferred tax liabilities in balance sheet

149.5

6.8

-16.7

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

Metsä Board Oyj’s holdings in Group companies

Deferred tax assets and liabilities 2022

Book value EUR

Country

Holding, %

Number of shares

Charged to other comprehensive income

Holdings in parent company Metsäliitto Cooperative

Charged to income statement

Translation differences

EUR million

1 Jan 2022

31 Dec 2022

Finland

-

674 892

674,892.00

Deferred tax assets Rental agreements

2.5 3.8 3.4 4.8 2.1

-0.2 -0.2

2.3 3.5 8.2 0.8 2.6 15.1 -7.9 9.4

Subsidiary shares in Finland Kotimaiset Metsä Board International Oy

Pension obligations and provisions

-0.2

0.0

Intercompany margins

4.9

-0.2

Finland

100.00

10,000

23,347,464.13

Unused tax loss carry-forwards Other temporary differences

-3.9

-0.1

0.3 1.2

0.1

in other countries Metsa Board Americas Corporation 1) Metsä Board Benelux n.v./s.a 1) Metsä Board Deutschland GmbH

Total

14.2 -8.3

-0.2

-0.1 2.3 2.2

USA

99.00

17,820

12,209,018.39

Netting against liabilities

-2.0 -1.0

Belgium Germany

0.08

2

0.00 0.00

Deferred tax assets in balance sheet

8.4

-0.2

100.00

1

Metsa Board Ibéria S.A . 1) Metsä Board Sverige Ab

Spain

1.00

100

1,561.63

Deferred tax liabilities Rental agreements Pension obligations

Sweden

100.00

10,000,000

493,721,059.95 529,279,104.10 529,953,996.10

2.9 3.3

-0.4 0.0 19.1

2.5 0.1

Subsidiary shares total

-3.0

-0.2 -2.8

Shares and holdings in Group companies

Depreciation differences and appropriations Other investments recognised at fair value

62.6 27.2

79.0 62.9

1) Total Group holding 100.0%

35.7 -0.5 -0.1 32.1

Financial instruments

4.8 3.7

0.4 5.5

-0.7 -0.1 -6.7 2.3 -4.4

3.9 9.0

Subgroup in Finland Metsä Board International Oy Metsä Board Benelux n.v./s.a 1)

Other temporary differences

Total

102.0

27.8 -2.0 25.6

155.2

Belgium

99.92

2,919

140,001.71

Netting against receivables

-8.3 96.2

-7.9

OOO Metsä Board Rus Metsä Board France SAS Metsa Board Ibéria S.A. 1) Metsa Board Italia S.r.l.

Russia France Spain

100.00 100.00 99.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

1

0.00

Deferred tax liabilities in balance sheet

32.1

149.5

8,211

418,951.75 155,316.78

147,771

The Group has recognised deferred tax assets related to operating loss carry-forwards for EUR 0.7 million (0.8) in Germany. Management assesses that taxable profit will be available against which loss carry-forward can be utilised. Taxable loss carry-forwards do not expire. The taxable loss carry-forwards of business operations, for which deferred tax assets have not been recognised due to uncertainty of amount or utilisation possibilities, amounted approximately to EUR 93 million (91) in Germany. The unrecognised deferred tax assets for these loss carry forwards is about EUR 29 million (29). Taxable loss carry-forwards do not expire.

Italy

100,000 742,105

1,250,691.84 214,000.00

Metsa Board (Middle East & Africa) Ltd

Cyprus Poland

170 Remuneration report 174 Investor relations and investor information

Metsä Board Polska Sp. Z o.o. Metsa Board Singapore Pte Ltd

232

54,458.58 4,036.51

Singapore

10,000

Metsa Board Singapore Pte Ltd Indian Branch

India

-

-

Metsa Board Turkey LLC

Turkey

400

1,201.25

Metsa Board UK Ltd

United Kingdom

2,400

264,172.02 4,435.15 41,827.54 2,549,093.13

Metsa Board Americas Corporation 1)

USA

1.00

180

Metsa Board Australia and New Zealand Pty Ltd

Australia

100.00

1

Total

120

121

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023

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