Metsä Board Annual Review 2024

METSÄ BOARD Annual review 2024

2.2 Sales

2.3 Other operating income

2.4 Operating expenses

EUR million

2024

2023

EUR million

2024

2023

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

Materials and services Raw materials and consumables

Gains on disposal Rental income Service revenue

35.2

59.9

Geographical distribution of sales

Accounting principles Metsä Board’s sales are mainly generated from the sale of forest industry goods, such as the sale of folding boxboard and white kraftliners to branded product manufacturers, packaging proces- sors and wholesalers, as well as the sale of pulp to manufacturers of cardboard, tissue, printing and specialty papers. Performance obligations arising from the Group’s sales contracts are mainly order-driven customer deliveries related to the sale of forest industry goods. Services mostly have an ancillary role in the Group’s business operations, or they complement deliveries of goods. The transaction price is the amount that the Group expects to receive in exchange for a fulfilled performance obligation. This amount, less sales-based value added taxes and sales taxes, is presented as the Group’s sales. The prices received by the Group are divided into a fixed part and a variable part. The variable part consists of various discounts based on, among other things, payment terms and purchased quantities, and is allocated by the Group as deductions from sales revenue in line with estimates of the extent of the discount the customer is deemed to be entitled to. The Group’s sales contracts mostly include obligations solely related to deliveries of goods, to which the allocation of the trans- action price is uncomplicated. The terms of payment applied in the Group’s sales invoicing vary to some degree geographically and in different business areas, but the term of payment provided is nonetheless always clearly less than a year, when the financing component does not need to be separated. The Group recognises revenue from the sale of goods in the period during which the control of the delivered products passes to the customer, i.e. when the risks and benefits related to the sold products transfer to the customer. Services are recognised as income over time. Control to products transfers at the point of time when the products have been delivered in accordance with the agreed term of delivery. The Incoterms 2010 delivery terms most commonly applied by the Group and the corresponding times of sales income recognition are: D terms: Delivery of goods to the buyer at the agreed destina- tion at the agreed time C terms: Handing over the goods to be transported to the agreed destination by a carrier arranged for by the seller F terms: Handing over the goods to a carrier arranged for by the buyer The Group sees geographical distribution of sales as describing best the nature, amount, timing and uncertainty of sales revenue. Sales by geographical regions is presented below based on the location of customers.

1.3 5.1

1.3 5.5 7.5 0.2 5.4

Purchases during the financial year

-1,179.7

-1,074.1

EUR million

2024 136.4 125.3 124.9 90.7 94.9 96.2 94.8 75.9 107.3

2023 148.9 136.0 82.3 56.2 89.8 106.1 88.8 89.9 120.1

Change in inventories

50.6

-33.6

Government grants and allowances

30.2

Germany

External services Logistics cost

Scrap and waste sale

0.3 5.7

Italy

Strategy and financial targets

-269.8

-243.6

Other Total

Sweden Turkey Finland

Other external services

-92.8

-78.1

77.8

79.9

8

Value creation

Total

-1,491.7

-1,429.5

United Kingdom

Financial development 10 Key figures 12

Depreciation, amortisation and impairment charges total

Spain France Poland Norway

Gains on disposal

-113.6

-93.8

EUR million

2024

2023

Employee costs total

-201.6

-199.5

Report of the Board of Directors

0.5

6.9

Emission rights

35.0

55.0

The Netherlands

52.1 20.8

46.8 18.2

Non-business related land area

2.7 2.2

20 20 37 70 89 96

• Sustainability statement

Other operating expenses Rents and other real estate expenses

Belgium

Other Total

0.2

General information

-19.3 -94.8

-20.0 -86.8

Rest of EMEA

280.2

299.5

35.2

59.9

Purchased services

E – Environment

EMEA

1,300.0

1,289.4

Losses on sale of non-current assets

-2.0

-0.8

USA

432.2

432.8

S – Social responsibility

The government grants and compensation relate to the compensation for training, healthcare and research costs, insurance indemnities and energy aid. For more information on government grants, see Note 4.2 and information on emission allowances, see Note 4.1. In 2024, The government grants and compensation include insurance compensations received related to the explosion at the Kemi bioproduct mill for a total of EUR 17.5 million.

Other operating expenses

-45.1 -161.3

-37.9

Canada

45.6 51.1

56.4 26.8

G – Governance

Total

-145.4

Rest of Americas

Annexes to the Sustainability statement

Americas

528.9 109.6

516.0 136.5

Employee costs are reported in Note 3.1, and nformation on depreciation, amortisation and impairment charges in Notes 4.1 and 4.2. For more infor- mation on research and development costs, see Note 4.1. Other operating expenses include e.g. energy costs, real estate costs, marketing and advertising costs and administrative costs. Research and development expenses excluding depreciations were EUR -7.4 (-7.3) million.

APAC Total

1,938.6

1,941.9

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

Auditor fees

The fees of the group’s auditor KPMG

EUR million

2024

2023

Audit

-0.5 -0.1

-0.5

Auditors' opinions 1)

0.0

Tax services Other services

0.0 -0.7

0.0

Total

-0.6

1) Includes audit fees for the 2024 Sustainability Report Non-auditing services for KPMG were EUR 0.0 (0.0) million.

196 Remuneration report 201 Investor relations and investor information

106

107

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024

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