Metsä Board Annual Review 2024

METSÄ BOARD Annual review 2024

2. Profitability 2.1 Segment information

Management’s judgement-based decisions Management’s judgement-based decisions that were made when applying the accounting principles and that have the greatest impact on the figures of the consolidated financial statements concern the following areas:

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

Item

Note

Nature of management’s judgement-based decisions

Financial instruments measured at fair value

4.3 Other investments

Accounting principle and valuation model applied to the shares of Pohjolan Voima Oyj

Accounting principles The Corporate Management Team is the chief operational decision-maker monitoring business operations performance based on the operating segments. Metsä Board’s business operations consist solely of folding boxboard, fresh fibre linerboard and market pulp businesses. Metsä Board reports on its financial performance in one reporting segment. Geographical sales are reported based on the location of the customer and assets and capital expenditure based on the location of the assets.

Strategy and financial targets

8

Value creation

Estimates and assumptions The Group’s key uncertainties related to assumptions and estimates that carry a significant risk of the book values of assets and liabilities changing during the following financial period include the following:

Financial development 10 Key figures 12

Item

Note

Nature of estimates and assumptions

Report of the Board of Directors

Pension obligations

3.4 Pension obligations

Actuarial assumptions used as the basis for determining the current value of pension obli- gations arising from defined benefit plans and the obligation items recognised as expenses during the financial period

20 20 37 70 89 96

• Sustainability statement

Geographical areas

General information

Property, plant and equipment and leases 4.2 Property, plant and equipment

Estimates of the useful lives of property, plant and equipment, and of lease extension options

External sales by location of customer

Non-current assets

E – Environment

Fair value measurement

4.3 Other investments

Estimates of key factors affecting cash flows in the valuation of Pohjolan Voima Oyj

Capital expenditure

EUR million

2024 136.4 125.3 124.9 94.9 94.8 75.9 107.3 52.1 20.8 167.7

2023 148.9 136.0 82.3 89.8 88.8 89.9 120.1 46.8 18.2 178.1 999.0

2024

2023

2024

2023

Inventories

4.4 Inventories

Estimates of the sales prices of products measured at net realisable value, the costs of comple- tion and the costs necessary for making the sale

S – Social responsibility

Germany

0.2 0.1

2.6 0.3

0.2 0.0

0.1 0.0

G – Governance

Provisions

4.9 Provisions

Estimates of the date and amount of costs from the obligation

Italy

Annexes to the Sustainability statement

Sweden Finland Spain France Poland

761.2

780.0

54.2 119.9

141.2 83.9

Income taxes

6. Income taxes

Estimates of the date and amount of tax liabilities arising in tax audits and deferred tax assets recognised for losses Estimates of the date and amount of costs from obligations related to disputes and legal proceedings

1,267.2

1,278.8

Legal obligations

8.1 Commitments and contingencies

0.1 0.3

0.1 0.4 1.3

0.0 0.0 0.1

0.0 0.2

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

1.1

1.1

The Netherlands

Belgium Other EU EU total

0.8

0.4

0.7

0.2

1,000.1

2,030.9

2,063.8

175.1

226.7

Turkey

90.7 96.2

56.2 106.1

0.0 4.2

0.0 4.9

United Kingdom

0.1

0.2

Norway

0.5

6.9

Other Europe and Middle East

35.5

33.2

USA

432.2

432.8 56.4 114.2 137.3

1.7

1.6

0.3

1.4

Canada

45.6 97.1

Asia

0.3 0.0

0.5 0.0

0.0

0.4

Other countries

140.6

Total

1,938.6

1,941.9

2,037.1

2,070.8

175.4

228.7

Non-current assets include all non-current assets with the exception of derivative financial instruments and deferred tax assets.

Personnel average

Personnel at year end

By country

2024 1,318

2023 1,303

By country

2024 1,267

2023 1,234

Finland Sweden Poland

Finland Sweden Poland

748 114

743 103

740 121

739 107

USA

73 17 17 52

70 32 28 54

USA

75 17 17 53

74 17 17 54

Belgium Germany

Belgium Germany

Other countries

Other countries

Total

2,339

2,333

Total

2,290

2,240

196 Remuneration report 201 Investor relations and investor information

Information on most important customers There were no customers with revenue exceeding 10% of total Group revenue in 2024 and 2023.

104

105

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024

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