Metsä Board Annual review 2023

METSÄ BOARD Annual review 2023

Bond and debentures

17. Financial Instruments

Bond

Nominal value Interest %

2023

2022

2017–2027

250,000,000.00

2.75

249,685,345.02

249,601,391.02

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

Financial derivatives 2023

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.

Nominal value

Fair value

Fair value

Fair value through profit and loss

Fair value through fair value reserve 1,547,458.52 1,547,458.52 21,021,185.08 1,892,820.81 22,914,005.89 -494,445.93 -3,485,682.38 -3,980,128.31

Derivative assets 1,547,458.52 1,547,458.52

Derivative liabilities

EUR

Total

Non-current liabilities and repayment

Interest rate swaps

50,000,000.00 50,000,000.00

1,547,458.52 1,547,458.52

Strategy and financial targets

Total interest rate derivatives

8

Value creation

Loans from financial institutions

Liabilities to group companies

Other loans

Currency forward agreements Currency option agreements

1,138,276,907.69 488,687,782.86 1,626,964,690.55

27,654,017.14 2,191,276.94

5,735,017.85 21,918,999.29

897,814.21

Bonds

Total

298,456.13

1,892,820.81

2024 2025 2026 2027 2028

Financial development 10 Key figures 12

Currency derivates total

29,845,294.08 6,033,473.98 23,811,820.10

897,814.21

11,764,705.88 111,764,705.88 11,764,705.88 11,764,705.88 29,411,764.72 176,470,588.24

11,764,705.88 111,764,705.88 261,450,050.90 11,764,705.88 29,411,764.72 426,155,933.26

Oil derivatives

18,709,442.40 10,770,062.40 29,479,504.80

150,751.44

645,197.37

-494,445.93

249,685,345.02

Report of the Board of Directors

Other commodity derivatives

3,485,682.38 -3,485,682.38 4,130,879.75 -3,980,128.31

20 72

• Sustainability statement • Sustainability statement assurance report

Commodity derivatives

150,751.44

2029–

Total

249,685,345.02

Derivatives total

1,706,444,195.35

31,543,504.04 10,164,353.73 21,379,150.31

897,814.21

20,481,336.10

74

Consolidated financial statements

Financial derivatives 2022

EUR

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

Nominal value

Fair value

Fair value

Fair value through profit and loss

Fair value through fair value reserve 3,147,221.92 3,147,221.92

16. Current liabilities

Derivative assets 3,147,221.92 3,147,221.92

Derivative liabilities

EUR

Total

Liabilities from Group companies Borrowings

Interest rate swaps

100,000,000.00 100,000,000.00

3,147,221.92 3,147,221.92

30,000,000.00 52,695,613.31 12,006,352.53 94,701,965.84

Total interest rate derivatives

Trade payables

56,142,768.77 32,753,317.50 88,896,086.27

Accruals and deferred income

Currency forward agreements Currency option agreements

1,790,092,903.51 281,267,579.22 2,071,360,482.73

31,341,614.74 25,038,674.98 6,302,939.76

1,378,520.10 4,924,419.66

Total

2,200,385.60

137,976.17

2,062,409.43 8,365,349.19

2,062,409.43

Currency derivates total

33,542,000.34 25,176,651.15

1,378,520.10 6,986,829.09

Liabilities from other Return loans from occupational pension insurance institutions

11,764,705.88 4,687,512.48 122,711,978.74 6,832,689.40 58,777,075.75 204,773,962.25

11,764,705.88 3,756,180.63 175,417,664.49

Oil derivatives

27,484,187.40 32,698,452.00 60,182,639.40

538,987.95

3,877,616.12 -3,338,628.17

-3,338,628.17

Advance payment

Other commodity derivatives

6,195,460.90 1,164,398.84 5,031,062.06 6,734,448.85 5,042,014.96 1,692,433.89

2,089,620.00 2,941,442.06

Trade payables Other liabilities

Commodity derivatives

2,089,620.00

-397,186.11

7,699,014.97

Accruals and deferred income

65,809,346.27 264,446,912.24

Derivatives total

2,231,543,122.13

43,423,671.11

30,218,666.11

13,205,005.00

3,468,140.10 9,736,864.90

Total

Total current liabilities

299,475,928.09

353,342,998.51

All derivative agreements of Metsä Board Oyj have been entered into for hedging purpose, and cash flow hedge accounting has been applied in major part of the agreements. Only the part of currency derivatives designated as hedges of trade receivables and trade payables is not directed to hedge accounting. Interest rate derivatives are interest rate swaps maturing in 1–2 years and entered into to hedge the floating rate interest payments. Currency derivatives contracts concluded to hedge currency cash flows mature fully during 2024. Commodity derivatives are natural gas forwards and fuel oil forwards directed to hedge the cash flows arising from purchases of these commodities. Commodity forwards mature fully during 2024. A more detailed description of financial risk management and the principles applied to derivative contracts is included in note 5.6 and 5.7 of the concolidated Group accounts.

Accruals and deferred income to group companies, current, specification Derivatives

10,164,353.73 1,841,998.80 12,006,352.53

30,218,666.25 2,534,651.25 32,753,317.50

Others

Total

Accruals and deferred income, current, external Personnel expenses

22,384,791.06 11,529,875.20 14,866,702.16 2,914,301.17 4,536,157.78 2,545,248.38 58,777,075.75

26,666,808.07 20,622,684.87 16,000,244.15 2,275,783.41

Accruals of purchases

Discounts Interests

Taxes

224,929.41 18,896.36

170 Remuneration report 174 Investor relations and investor information

Others

Total

65,809,346.27

138

139

Parent company financial statements | METSÄ BOARD ANNUAL REVIEW 2023

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