This is Metsä Board
Financial development in 2023 Our profitability was affected by weakened paperboard and pulp market. We completed our investments as planned and secured cash flow from operations through efficient management of working capital. Our balance sheet remained strong.
METSÄ BOARD Annual review 2023
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Focus on sustainable fresh fibre paperboards
Strong position in a growing market
SALES
COMPARABLE OPERATING RESULT EUR million % of sales
TOTAL INVESTMENTS
CASH FLOW FROM OPERATIONS
Strategy and financial targets
EUR million
EUR million
EUR million
We focus on premium and recyclable fresh fibre paperboards, that help our customers reduce their plastic use. Our paper- boards made from renewable wood fibre are mainly used in consumer packaging and retail packaging solutions.
We are a leading producer of folding boxboard and white kraftliners in Europe, and globally the biggest producer of coated white kraft- liners. In the USA, we are the largest supplier of folding boxboard. The global demand for paperboards is expected to grow faster than all packaging materials on average, at an annual rate of slightly over 4%. (Source: Smithers Information Ltd.).
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Value creation
2,500 2,000 1,500 1,000 500 0
600 500 400 300 200 100 0
30 25 20 15 10 5 0
350 300 250 200 150 100 50 0
350 300 250 200 150 100 50 0
Financial development 10 Key figures 12
Report of the Board of Directors
19 20 21 22 23
19 20 21 22 23
19 20 21 22 23
19 20 21 22 23
20 72
• Sustainability statement • Sustainability statement assurance report
A forerunner in sustainability
Investing in sustainable growth
74
Consolidated financial statements
SALES SPLIT BY PRODUCT % of sales
SALES SPLIT BY REGION % of sales
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
Our products support the circular economy and they have a smaller carbon footprint compared to many other packaging materials. Our future growth is based on more efficient use of resources and raw materials. Our target is fossil free production and products by the end of 2030.
Population growth, urbanisation and the replacement of plastic will increase the demand for fibre-based packaging material in the long term. We respond to this demand with sustainable investments and innovative packaging solutions. We have ambitious, science-based sustainability targets and mill-specific investment plans to achieve the targets.
Interest-bearing net debt/ comparable EBITDA
Folding boxboard ���������������� 59 White kraftliners ����������������� 24 Market pulp �������������������������� 13 Other �������������������������������������� 4
EMEA ������������������������������������ 66 Americas ������������������������������ 27 APAC ���������������������������������������� 7
0.7 Target <2.5
We are 2,300 Metsä Board employees in 17 countries
We have 8 production units in Finland and Sweden. Our main market areas are Europe and North America
Our customers include international brand owners, packaging converters, manufacturers of corrugated products and merchants
We are part of Metsä Group All our wood supply is handled by Metsä Group. The wood we use is sourced from sustainably managed forests, mainly from Finland and Sweden where renewal of forests and the biodiversity of nature is secured. Our ownership (24.9%) in Metsä Fibre secures self-sufficiency in pulp and enables the growth of paperboard business.
METSÄ GROUP
The parent company Metsäliitto Cooperative is composed of over 90,000 Finnish forest owners.
Sales EUR 6.1 billion
Comparable operating result EUR 488 million
Personnel 9,500
We are committed to the ambitious and science-based 2030 sustainability targets that enable fossil free production and products and help our customers to con- tribute to their own goals. Read more about sustainable development and our goals .
Paperboard capacity 2.3 million tonnes/year
Pulp and BCTMP capacity 1.7 million tonnes/year
170 Remuneration report 174 Investor relations and investor information
Wood Products
Wood Supply and Forest Services
Pulp and sawn timber
Paperboard
Tissue and greaseproof papers
METSÄ WOOD
METSÄ FIBRE
METSÄ BOARD
METSÄ TISSUE
END USE OF FOLDING BOXBOARD
END USE OF WHITE KRAFTLINERS
OWNERSHIP Metsäliitto Cooperative 100%
Metsäliitto Cooperative 100%
Metsäliitto Cooperative 50.1% Metsä Board 24.9% Itochu Corporation 25.0%
Metsäliitto Cooperative 52% (69% of votes) The company is listed on Nasdaq Helsinki
Metsäliitto Cooperative 100%
Various retail packaging solutions Other consumer product packaging E-commerce
Food and food service packaging Other consumer product packaging Graphical end use
METSÄ SPRING Innovation company
Source: Metsä Board
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| METSÄ BOARD ANNUAL REVIEW 2023
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