Metsä Board Annual Review 2024

We create value and well-being for several stakeholders

METSÄ BOARD Annual review 2024

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

Strategy and financial targets

We are continuously looking for opportunities to grow profitably and sustainably, and to generate value for our stakeholders with our operations. We help our customers achieve their sustainability targets with our paperboards and our expert services that support the circular economy.

Value creation

Financial development 10 Key figures 12

Report of the Board of Directors

Resources

Business model

Outputs

Impacts

20 20 37 70 89 96

• Sustainability statement

General information

E – Environment

We produce resource-efficient fresh fibre paperboards from renewable raw materials, which support the principles of the circular economy and offer an alternative to fossil-based packaging materials. We are part of Metsä Group, and benefit from its unique value chain, from pure northern fibre to premium end products. We have high energy self-sufficiency, and our holding in our associated company Metsä Fibre ensures our over self-sufficiency in pulp. Our production is located in Finland and Sweden, and we have sales around the world. Our main markets are Europe and North America.

S – Social responsibility

People and partnerships

Products and services

Customers

G – Governance

• Around 2,300 employees in 17 countries • 60 apprentices, around 270 summer employees, thesis workers and trainees • Active cooperation with local communities and educational institutions

• 1.5 million tonnes of premium fresh fibre paperboards • 1.1 million tonnes of pulp and BCTMP • 5 service entities that generate benefits throughout the packaging value chain (360 Services) • Common stock service improves availability and enables fast delivery to the customer

• Recyclable products with low carbon footprint 1) • Innovative and material-efficient packaging solutions that help reduce the use of plastic • Customer satisfaction NPS (Net Promoter Score) 33

Annexes to the Sustainability statement

98 Consolidated financial statements 102 Notes to the consolidated financial statements 150 Parent company financial statements 153 Notes to the parent company financial statements 166 The Board’s proposal to the Annual General Meeting for the distribution of funds 167 Auditor’s Report 171 Sustainability statement assurance report 173 Shares and shareholders 177 Ten years in figures 178 Taxes 179 Production capacities 181 Calculation of key ratios and comparable performance measures Corporate governance 183 Corporate governance statement 190 • Board of Directors of Metsä Board 194 • Corporate Management Team of Metsä Board

Suppliers

Production and supply chain

• EUR 1.7 billion purchases from suppliers • 99% of suppliers are committed to the Supplier Code of Conduct • 24% of target group suppliers have set their own SBTi targets 2) Personnel • EUR 202 million paid to employees as wages and benefits • 99% of the personnel have completed the Code of Conduct training

Emissions and waste

• Approximately 3,100 suppliers • 8 production units in Finland and Sweden • Deliveries to around 90 countries

• 277,087 tonnes of greenhouse gas emissions from our own operations (Scope 1, Scope 2 market-based) • 1,789,138 tonnes of greenhouse gas emissions from the value chain • 95% of the used water is returned to the waterbodies. All process water is treated carefully • 167,000 tonnes of by-products and waste most of which is used as materials or energy

OUR SALES IN 2024 EUR 1,939 million

Natural resources • 6.8 million m 3 of sourced wood of which 92% is certified • Total energy consumption 8.3 TWh of which 89% is fossil-free • Water withdrawals 106 million m 3 • 335,000 tonnes of purchased pigments, binders, other raw materials and packaging materials

OTHER 4% (of sales) MARKET PULP 14% (of sales) FOLDING BOXBOARD 57% (of sales) WHITE KRAFTLINERS 25% (of sales)

Shareholders

• A sustainable investment; several recognitions from ESG evaluations conducted by third parties • EUR 25 million distributed to shareholders of the parent company as dividends 3) • 3.2% comparable return on capital employed

Intangible assets

• R&D expenditure EUR 7.4 million • An Excellence Centre in Äänekoski, Finland, and a satellite centre in Norwalk, the United States • Recognition for premium quality paperboards

Common value creation

1) based on third-party verified EPD reports, life cycle database values for alternative packaging materials and a series of life cycle and carbon footprint calculations carried out for customers in 2024.

• Taxes paid EUR 23 million • Total investments EUR 175 million • Aiming for 100% fossil-free products and production, with science-based targets

Economic capital

• Capital invested EUR 2.4 billion • Approximately 64,000 shareholders in B series and 11,000 in A series

2) 70% of our non-fibre suppliers and the logistics operators related to our customer deliveries, measured as a share of our total purchases, set themselves targets in accordance with the SBTi by 2024.