Metsä Board Annual review 2023

METSÄ BOARD Annual review 2023

Key characteristics of Performance based share incentive scheme 2017–2021 are summarised in the table below:

Key characteristics of Performance based share incentive scheme 2020–2024 are summarised in the table below:

Performance based share incentive scheme 2017–2021

Performance based share incentive scheme 2020–2024

Committing based share incentive plan 2020–2024

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

31 Dec 2023

2017–2019

2018–2020

2019–2021

Total

31 Dec 2023

2020–2022

2021–2023

2022–2024

2022–2024

Total

Key characteristics Shares allocated to the scheme, shares

Key characteristics Shares allocated to the scheme, shares

280,694

280,694

590,788

453,650

437,545

20,838

1,502,821

Strategy and financial targets

Grant date(s)

2.4.2019, 13.6.2019, 12.8.2019, 13.1.2022

Grant date(s)

27.1.2020, 18.6.2021 27.1.2021, 18.6.2021 31.1.2022, 8.11.2022

7.10.2022

Criteria

Equity ratio, ROCE ja EBIT

Equity ratio, ROCE ja EBIT

Equity ratio, ROCE ja EBIT

8

Value creation

Criteria

Equity ratio, ROCE ja EBIT

Personnel (31 December 2023)

29

Personnel (31 December 2023)

23

Factors used to determine fair value (EUR) 1)

Financial development 10 Key figures 12

Factors used to determine fair value (EUR) 1)

Share price at grant date Share fair value at grant date

5.46 4.66 0.27 8.26

8.93 8.15 0.27 7.19

9.44 8.21 0.41 7.19

7.74 6.68 0.53

Share price at grant date Share fair value at grant date

5.82 5.20 0.31 8.86

Report of the Board of Directors

Annual dividend assumption in fair value measurement Share price at payment date / balance sheet date

20 72

• Sustainability statement • Sustainability statement assurance report

Annual dividend assumption in fair value measurement Share price at payment date / balance sheet date

7.19

Fair value on balance sheet date

2,657,030

3,416,959

2,098,187

139,198

8,311,374

Fair value on balance sheet date

1,885,138

1,885,138

Effect on result and financial position (EUR)

Effect on result and financial position (EUR)

74

Consolidated financial statements

Expense in 2023, share-based payments settled as equity Share-based payments settled in cash, unpaid part, estimate

686,596

797,661

248,185 961,874

70,079 80,516

1,802,521 2,619,084

Expense in 2023, share-based payments settled as equity Share-based payments settled in cash, unpaid part, estimate

418,968

418,968

1,576,693

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

Number of shares 1 January 2023 2) Outstanding at the beginning of the period

Number of shares 1 January 2023 2) Outstanding at the beginning of the period

564,054

413,980

421,099

20,838

1,419,971

173,573

173,573

Changes during the year Shares forfeited

Changes during the year Shares exercised

1,574

4,689

6,263 50,021

173,573

173,573

Shares exercised Shares expired

50,021

933

933

Number of shares 31 December 2023 Outstanding at the end of the period

Number of shares 31 December 2023 Outstanding at the end of the period

513,100

412,406

416,410

20,838

1,362,754

1) The fair value of the share settled component at the grant date was the share price of Metsä Board Corporation’s B share less any dividends estimated by analyst consensus to be paid before the payment of the incentive. The fair value of the share based payment is recognised to the number of shares based on the best available estimate of the total incentive to which the participants are expected to be entitled. 2) The amounts in the table represent net amounts, i.e. the number of shares to be given based on the share based payment schemes. In addition, the payment will include a cash settled component used to cover taxes and tax-like charges.

1) The fair value of the share settled component at the grant date was the share price of Metsä Board Corporation’s B share less any dividends estimated by analyst consensus to be paid before the payment of the incentive. The fair value of the share based payment is recognised to the number of shares based on the best available estimate of the total incentive to which the participants are expected to be entitled. 2) The amounts in the table represent brutto amounts, i.e. the number of shares to be given based on the share based payment schemes. In addition, the payment will include a cash settled compo- nent used to cover taxes and tax-like charges.

170 Remuneration report 174 Investor relations and investor information

86

87

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2023

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