METSÄ BOARD Annual review 2023
The carrying amount of associated companies at 31 December 2023 includes goodwill of EUR 45.2 million (45.2). None of the associate com- panies or joint ventures are listed companies. Transactions with associate companies and joint ventures are detailed in Note 7.3.
Book value EUR
Country
Holding, %
Number of shares
Accounting principles Associated companies include all companies over which the Group has considerable influence but no control. Significant influ- ence is usually based on a shareholding conferring 20–50 per cent of the voting rights. A joint venture is a joint arrangement in which the parties that have joint control of the arrangement have rights to its net assets. Investments in associates and joint ven- tures are accounted for using the equity method and are initially recognized at cost. The Group’s shares in associated companies and joint ventures also include the goodwill measured at the time of acquisition, less any impairment. The Group’s share of the profits or losses of associated compa- nies and joint ventures is recognised in the income statement as a separate line item above the operating result in case of associate company Metsä Fibre and below the operating result in case of other associate companies. Correspondingly, the Group’s share of other comprehensive income in associated companies and joint ventures is recognised in its items of other comprehensive income. A proportion corresponding to the Group’s shareholding is eliminated from unrealised profits between the Group and its associate companies and joint ventures. Unrealised losses arising from impairment are not eliminated. When necessary, the accounting principles applied by associated companies and joint ventures have been adjusted to comply with the Group’s principles.
Subgroup in other countries Metsä Board Sverige Ab Husum Pulp Ab
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Sweden
70.00
85,664
190,688,553.55
Financial information summary of essential associated companies
According to management’s view, the only essential associated company is Metsä Fibre Group, which produces chemical pulp and sawn timber. Metsä Board owns 24.9 per cent of Metsä Fibre. Metsä Board’s parent company, Metsäliitto Cooperative, owns 50.1 per cent, and Itochu Corporation from Japan owns 25.0 per cent. Metsä Fibre has operations primarily in Finland, and its production capacity is approximately 3.3 million tonnes of chemical pulp. In Addition Metsä Fibre has five sawmills in Finland.
Strategy and financial targets
Material subsidiaries Metsä Board has two material subsidiaries:
8
Value creation
Financial development 10 Key figures 12
• Metsä Board Sverige AB Metsä Board Sverige AB is located in Örnsköldsvik, Sweden. Metsä Board Sverige AB produces folding boxboard and kraftliner. Metsä Board Sverige AB’s sales were EUR 396 million (642). The company’s capacity is 250,000 tonnes of liner and 600,000 tonnes of folding boxboard.
• Husum Pulp AB Husum Pulp AB produces pulp for Metsä Board Sverige Ab and to the market. The company’s sales were EUR 370 million (560) and capacity 730,000 tonnes of chemical pulp.
Report of the Board of Directors
20 72
• Sustainability statement • Sustainability statement assurance report
Summarised financial information for Metsä Fibre
Metsä Fibre Group
74
Consolidated financial statements
EUR million
2023
2022
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
Sales
2,498.6
3,070.7
Non-controlling interest’s shares Principal non-controlling interest’s shares
Result for the period
78.7
664.7 125.1 789.8
Other comprehensive income
-22.9
Total comprehensive income for the period
55.8
Non-controlling interest Holding, %
Non-controlling interest Share of result, EUR million
Non-controlling interest Share of equity, EUR million
Dividend received
82.8
58.8
EUR million
Country
2023
2022
2023
2022
2023 155.6
2022
Non-current assets
3,467.3 980.9 1,378.4 1,054.3 2,015.5
2,976.9
Husum Pulp AB
Sweden
30.0%
30.0%
6.8
51.4
173.2
Current assets
835.6 781.0 739.6
Non-current liabilities
Investments in associate companies and joint ventures
Current liabilities
Net assets
2,291.8
EUR million
2023 614.2
2022 479.0
Value 1 Jan
Reconciliation of financial information for Metsä Fibre to the value recognised in consolidated balance sheet
Share of results from associated companies and joint ventures Share of result from Metsä Fibre Share of results from other associated companies and joint ventures
24.2
163.1
EUR million
2023 501.9
2022 570.7
0.0
0.0
Group's share of net assets
Dividends received
-82.8
-58.8
Goodwill
45.2
45.2
Share of other comprehensive income from associated companies and joint ventures Fair value reserve
Other purchase price allocations at acquisition
4.1
4.6
Other adjustments
-1.3
-6.5
25.4
Carrying value of associated company in consolidated balance sheet
549.8
614.0
Translation differences and other changes in equity Investments in associated companies and joint ventures 31 Dec
-5.7
5.6
549.9
614.2
Metsä Fibre has been consolidated according to equity method based on its consolidated financial statements prepared under IFRS.
Amounts recognised in income statement
EUR million
2023
2022 163.1 163.1
Financial information summary of other than essential associated companies
Associate companies
24.2 24.2
170 Remuneration report 174 Investor relations and investor information
Amounts recognised in income statement total
EUR million
2023
2022
Amounts recognised in balance sheet
Share of result from other associated compa- nies Carrying value in consolidated balance sheet
0.0
0.0
EUR million
2023 549.9 549.9
2022 614.2 614.2
0.2
0.2
Associate companies
Amounts recognised in balance sheet total
122
123
Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023
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