METSÄ BOARD Annual review 2024
Change in defined benefit pension obligations in 2024
Change in defined benefit pension obligations in 2023
Sensitivity of benefit obligation to changes in essential weighted assumptions 2024 Impact on benefit obligation, % Increase 2024 Decrease 2024 Increase 2023
The most considerable risks related to Defined benefit plans are as follows:
Present value of obligation
Present value of obligation
Changes in the return on bonds Liabilities arising from the arrangements have been calculated using a dis- count rate based on the return on high-quality corporate bonds. A decline in the discount rate increases the arrangements’ liabilities. Inflation risk The plan’s benefit obligations are linked to inflation and a higher inflation will lead to increased obligation. Life expectancy The majority of the arrangement obligations arises from generating life- time benefits for members, so the expected increase in life expectancy will increase the arrangement obligations. The contribution made to post-employment defined benefit plans is expected to be EUR -1.6 million in 2025. The weighted average duration of the defined benefit obligation is 10.6 years (10.9).
Fair value of plan assets Total
Fair value of plan assets Total
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
EUR million
EUR million
Decrease 2023
1 Jan 2024
43.8
-37.3
6.5 0.4 0.0 0.5
1 Jan 2023
44.1
-37.3
6.9 0.6 0.2 0.7
Current service cost
0.4 1.7 2.2
Current service cost
0.6 1.9 2.4
Discount rate, 0.5%-points Salary growth rate, 0.5%-points Pension growth rate, 0.5%-points
-4.2
4.3
-4.5
5.0
Interest expense (+) or interest income (-) Total amount recognised in profit and loss
-1.7 -1.7
Interest expense (+) or interest income (-) Total amount recognised in profit and loss
-1.7 -1.7
0.3 3.9 3.4
-0.2 -3.8 -3.4
0.5 4.2 2.9
-0.4 -4.0 -2.9
Life expectancy, 1 year
Strategy and financial targets
Remeasurements in other comprehensive income Return on plan assets, excluding amounts included in interest income or expense Gains (-) and losses (+) from change in demographic assumptions Gains (-) and losses (+) from change in financial assumptions
Remeasurements in other comprehensive income Return on plan assets, excluding amounts included in interest income or expense Gains (-) and losses (+) from change in demographic assumptions Gains (-) and losses (+) from change in financial assumptions
8
Value creation
The aforementioned sensitivity analyses are based on a situation where all other assumptions remain unchanged when one assumption changes. The sensitivity of a defined benefit obligation to changes in significant actuarial assumptions has been calculated using the same method as is used in calculating the pension obligation recognised in the balance sheet.
-2.1
-2.1
0.7
0.7
Financial development 10 Key figures 12
-0.1
-0.1
-0.5
-0.5
-0.3
-0.3
0.0
0.0
Report of the Board of Directors
Experience gains (-) and losses (+)
0.6
0.6
Experience gains (-) and losses (+)
0.4
0.4
20 20 37 70 89 96
• Sustainability statement
Total remeasurements in other comprehensive income
Total remeasurements in other comprehensive income
0.2
-2.1
-1.9
-0.1
0.7
0.7
General information
Plan assets are comprised as follows:
E – Environment
Translation differences
1.2
-1.4
-0.2
Translation differences
0.5
-0.6
-0.1
2024 EUR million
2024 %
2023 EUR million
2023 %
Contributions Employers
Contributions Employers
S – Social responsibility
-0.6
-0.6
-0.3
-0.3
Qualifying insurance policies Cash and cash equivalents
39.6
99% 36.5
98%
G – Governance
Plan participants
0.0
0.0
0.0
Plan participants
0.0
0.0
0.3 0.3
1% 1%
0.6 0.2
2% 1%
Annexes to the Sustainability statement
Payments from plans Benefit payments
Payments from plans Benefit payments
Investment funds
-3.3 44.0
2.9
-0.5
-2.9 -0.3 43.8
2.3
-0.6 -0.8
Total
40.2 100%
37.3 100%
31 Dec 2024
-40.2
3.8
Settlements
-0.5 -37.3
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
31 Dec 2023
6.5
Defined benefit pension obligation and plan assets by country in 2024
EUR million
Germany United Kingdom
Finland Other countries
Total 44.0 -40.2
Present value of obligation Fair value of plan assets
7.9
24.9 -28.3
7.8
3.4
-2.4
-6.8
-2.7
Total
5.6
-3.4
1.0
0.7
3.8
Defined benefit pension obligation and plan assets by country in 2023
EUR million
Germany United Kingdom
Finland Other countries
Total 43.8 -37.3
Present value of obligation Fair value of plan assets
7.5
24.4 -27.8
8.6 -7.1 1.5
3.3
-2.4 0.9
Total
7.5
-3.4
6.5
Significant actuarial assumptions 2024
Germany United Kingdom
Finland
Belgium
Discount rate, %
3.30 3.00 2.00
5.15
3.26
3.00 3.10 2.10
Salary growth rate, % Pension growth rate, %
3.05
2.21
Significant actuarial assumptions 2023
Germany United Kingdom
Finland
Belgium
Discount rate, %
3.17 3.00 2.00
5.10
3.13
3.60 3.30 2.30
Salary growth rate, % Pension growth rate, %
3.05
2.42
196 Remuneration report 201 Investor relations and investor information
114
115
Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024
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