METSÄ BOARD Annual review 2024
Net investments in a foreign entity 31.12.2024
Financial covenants of external loans In Metsä Board`s certain financial contracts the financial covenants have been set regarding financial performance and capital structure. Other covenants in the company’s loan agreements are customary terms and conditions including for example a negative pledge, restrictions on major asset disposals, limitations on subsidiary indebtedness, restrictions on changes of business and mandatory prepayment obligations upon a change of control of the Group. Metsä Board loan agreements and credit facility agreement include a financial covenant that is related to net gearing. Metsä Board has been in compliance with its covenant during the financial periods 2024 and 2023. In case the company could not meet its obligations as defined in financial contracts and in order to avoid a breach of contract that could have an adverse effect on the company’s financial position, it would need to renegotiate its financial arrangements, payback its loans or get its debtors to give up their claims to meet these obligations.
EUR million
2024
2023
Equity exposure
Interest-bearing net liabilities/comparable EBITDA
2.0
0.7
Net gearing ratio, % 1)
18
7
EUR million
USD
GBP
SEK
Others
Total
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Equity (million currency units)
100
5 6
8,661
Interest-bearing borrowings
527.4 182.6
438.1 291.6
Equity (EUR million)
96
756
2
860
./. Liquid funds
./.Interest-bearing receivables Net interest bearing liabilities
0.0
2.5
Net investments in a foreign entity 31.12.2023
344.9
144.0
Equity exposure
Strategy and financial targets
Equity attributable to shareholders of parent company
EUR million
USD
GBP
SEK 7,745
Others
Total
1,743.0
1,897.0
8
Value creation
Equity (million currency units)
124 112
4 4
+ Non-controlling interest
164.7
155.6
Equity (EUR million)
698
3
817
Total Equity
1,907.7
2,052.6
Financial development 10 Key figures 12
Interest rate risk / duration and re-pricing structure of loans (incl. interest rate derivatives) 31.12.2024
Operating profit
62.3 113.6 175.9
120.8 93.8 214.6
Depreciations and impairments
Report of the Board of Directors
EBITDA
Re-pricing structure of interest rates of loans
Loan amount (EUR million)
Average interest rate (%)
Interest rate sensitivity 1) (EUR million)
20 20 37 70 89 96
Other operating income
2.7
• Sustainability statement
Duration (months)
1–4/2025
5–8/2025
9–12/2025
2026
2027
2028
>2028
Share of result
1.4 0.5
-4.1
General information
528
19.8
2.7
-0.5
200
8
8
12
265
15
21
Other operating expenses
E – Environment
Comparable EBITDA
175.0
216.0
S – Social responsibility
Interest rate risk / duration and re-pricing structure of loans (incl. interest rate derivatives) 31.12.2023
REPAYMENT OF NON-CURRENT LOANS EUR million
BREAKDOWN OF CURRENCY EXPOSURE %
1) Net gearing ratio = Interest-bearing net liabilities / Shareholders’ equity
G – Governance
Re-pricing structure of interest rates of loans
Annexes to the Sustainability statement
Loan amount (EUR million)
Average interest rate (%)
Interest rate sensitivity 1) (EUR million)
Duration (months)
1–4/2024
5–8/2024
9–12/2024
2025
2026
2027
>2027
438
30.6
2.6
-1.8
53
7
7
64
14
262
30
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
300 250 200 150 100 50 0
USD�����������������������������������54% SEK�����������������������������������36% GBP������������������������������������� 8% Others��������������������������������� 2%
1) Interest rate sensitivity is an estimate of the effect of an interest rate change of one percent in one direction on net interest cost based on year end exposure
25 26 27 28 29 30-
Hedging of natural gas price risk exposure
Hedging of logistics oil price risk exposure
Tons
31 Dec 2024 31 Dec 2023
Tons
31 Dec 2024 31 Dec 2023
Oil exposure, net
51,072 36,119
65,322 39,660
Natural Gas exposure, net
377 307
377 211
Oil hedging
Natural Gas hedging
Hedging at the end of the year (%)
71
61
Hedging at the end of the year (%)
81
56
Average price of hedging at the end of the year (€/tons)
Average price of hedging at the end of the year (€/tons)
467.13
468.84
36.32
51.09
Hedging of foreign exchange transaction exposure 31.12.2024
Logistic oil price risk is hedged based on defined risk management policy by financial contracts. Metsä Board logistic oil exposure includes positions with bunker clause. Metsä Board is hedging gas oil, heavy fuel oil and marine fuel oil purchases.
Natural Gas price risk is hedged based on defined risk management policy by financial contracts. Metsä Board position is hedged using TTF financial contracts.
Annual transaction exposure
EUR million
USD 888 855 -557
GBP
SEK
AUD
CAD Other long Other short
Total
Transaction exposure, net (mill. currency units) Transaction exposure, net (EUR million) Transaction exposure hedging (EUR million) Hedging at the end of the year (months)
99
-6,569
5 3
45 30 -15 6.0 6.0
119 -72 7.2 6.3
-573 399
2
-2
1,584 -1,043
7.8 7.1
8.4 8.4
7.9 7.4
Average hedging in 2024 (months)
Average rate of hedging at the end of the year
1.0931
0.8485
11.4789
Hedging of foreign exchange transaction exposure 31.12.2023
Annual transaction exposure
Total
EUR million
USD
GBP
SEK
AUD
CAD Other long Other short
Transaction exposure, net (mill. currency units) Transaction exposure, net (EUR million) Transaction exposure hedging (EUR million) Hedging at the end of the year (months)
763 691
102 117
-4,969
5 3
37 25
-448
5
1,289
-427
59
316 8.5 8.8
-12 6.0 6.0
-814
7.4 6.8
6.0 6.0
7.6 7.4
Average hedging in 2023 (months)
Average rate of hedging at the end of the year
1.0900
0.8715
11.6318
196 Remuneration report 201 Investor relations and investor information
134
135
Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024
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