Metsä Board Annual Review 2024

METSÄ BOARD Annual review 2024

7. Group structure

Deferred tax assets and liabilities 2024

Charged to other comprehensive income

Charged to income statement

Translation differences

EUR million

1 Jan 2024

31 Dec 2024

7.1 Group companies

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

Deferred tax assets Rental agreements

4.1 3.5 4.8

0.0

-1.5 0.3

2.6 3.1

Pension obligations and provisions

-0.8 -2.8 -3.3 5.6 -1.0 -2.4

0.1

Accounting principles

the income statement and the distribution of comprehensive income in the statement of comprehensive income. The non-controlling interests’ share of equity is presented as a separate item under equity on the balance sheet. Joint operations A joint operation is a joint arrangement in which parties who have joint control in the arrangement have rights concerning the assets related to the arrangement and obligations concerning liabilities. The Group consolidates its proportion of the assets, liabilities, income and expenses of the joint operation in its financial statements.

Intercompany margins

0.1

2.1

Unused tax loss carry-forwards

29.7

-0.9

25.5

Subsidiaries The financial statements include all of the companies controlled by the Group. Intra-Group shareholding is eliminated using the acquisition method. Intra-Group business transactions, receivables, liabilities and unrealised gains, as well as internal distribution of profits, are elimi- nated on consolidation. Unrealised losses arising from impairment are not eliminated. When necessary, the accounting principles applied by subsidiaries have been adjusted to comply with the Group’s principles. The parent company’s owners’ and non-controlling interests’ shares of the result for the period and comprehensive income are presented in

Strategy and financial targets

Financial instruments

0.0

5.6 2.5

Other temporary differences

3.8

-0.3 -2.3 -2.1 -4.5

8

Value creation

Total

45.9 -36.4

0.1

41.4

Netting against liabilities

2.4 0.0

-36.2

Financial development 10 Key figures 12

Deferred tax assets in balance sheet

9.5

0.1

5.2

Deferred tax liabilities Rental agreements Pension obligations

Report of the Board of Directors

3.9 0.3

0.3 0.1 4.1

-1.5 0.4 -2.3

2.7 0.4

-0.3

20 20 37 70 89 96

• Sustainability statement

Depreciation differences and appropriations Other investments recognised at fair value

114.1 44.7

115.8

General information

-6.9 -7.8

37.8 -1.6

E – Environment

Financial instruments

5.9

0.3 0.2 -0.1 4.9 2.4 7.3

Net investments in foreign operations

-0.2 -2.3 -5.9 -2.1 -8.1

S – Social responsibility

Other temporary differences

6.6

4.2

G – Governance

Total

175.5 -36.4 139.2

-15.1

159.4 -36.2 123.2

Annexes to the Sustainability statement

Subsidiaries and joint operations 31 December 2024

Netting against receivables

Deferred tax liabilities in balance sheet

-15.1

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

Metsä Board Plc holdings in Group companies

Book value EUR

Deferred tax assets and liabilities 2023

Country

Holding, %

Number of shares

Charged to other comprehensive income

Holdings in parent company Metsäliitto Cooperative

Charged to income statement

Translation differences

Finland

-

716 041

716,041.03

EUR million

1 Jan 2023

31 Dec 2023

Deferred tax assets Rental agreements

Subsidiary shares In Finland Metsä Board International Oy

2.3 3.5 8.2 0.8 2.6 17.3 -7.9 9.4

1.8

0.0 0.2

4.1 3.5 4.8

Pension obligations and provisions

-0.4 -3.2 28.0

0.2

Finland

100.00

10,000

23,347,464.13

Intercompany margins

-0.2

Unused tax loss carry-forwards Other temporary differences

1.0 0.2 1.2

29.7

in other countries Metsa Board Americas Corporation 1) Metsä Board Benelux n.v./s.a 1) Metsä Board Deutschland GmbH

1.0

3.8

USA

99.00

17,820

12,209,018.39

Total

27.2

0.2

45.9 -36.4

Belgium Germany

0.08

2

0.00 0.00

Netting against liabilities

-26.8

-1.6 -0.4

100.00

1

Deferred tax assets in balance sheet

0.4

0.2

9.5

Metsa Board Ibéria S.A . 1) Metsä Board Sverige Ab

Spain

1.00

100

1,561.63

Sweden

100.00

10,000,000

750,358,228.09 785,916,272.24 786,632,313.27

Deferred tax liabilities Rental agreements Pension obligations

Subsidiary shares total

2.5 0.1

1.4 0.1

3.9 0.3

Shares and holdings in Group companies

-0.1

0.2 3.9

Depreciation differences and appropriations Other investments recognised at fair value

79.0 62.9

31.2

114.1 44.7

1) Total Group holding 100.0%

-18.2

Subgroup in Finland Metsä Board International Oy Metsä Board Benelux n.v./s.a 1)

Financial instruments

3.9 9.0

-0.2

1.6

0.5 -3.1

5.9 6.6

Other temporary differences

0.7

Total

157.4

33.6

-16.7

1.2

175.5 -36.4 139.2

Belgium

99.92

2,919 8,211

140,001.71 418,951.75 155,316.78

Netting against receivables

-7.9

-26.8

-1.6 -0.4

Metsä Board France SAS Metsa Board Ibéria S.A. 1) Metsa Board Italia S.r.l.

France Spain

100.00 99.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

Deferred tax liabilities in balance sheet

149.5

6.8

-16.7

147,771

Italy

100,000 742,105

1,250,691.84 214,000.00

Metsa Board (Middle East & Africa) Ltd

Cyprus Poland

The Group has recognised deferred tax assets from tax losses of EUR 22.6 million (0.0) in Sweden and EUR 2.2 million (0.0) in Finland and EUR 0.9 million (0.7) in other countries. Management estimates that the Group will accrue taxable income in the coming years, from which losses can be deducted. Tax losses do not expire except in Finland, where the expiration period is 10 years. The tax losses, the amount or use of which is uncertain and therefore not recognised as a deferred tax asset, amounted to approximately EUR 90 (93) million in Germany and the United Kingdom. The deferred tax asset unrecognised from these tax losses is approximately EUR 29 (29) million. Tax losses do not expire.

Metsä Board Polska Sp. Z o.o. Metsa Board Singapore Pte Ltd

232

54,458.58 4,036.51

Singapore

10,000

Metsa Board Singapore Pte Ltd Indian Branch

India

-

-

Metsa Board Turkey LLC

Turkey

400

2,303.66

Metsa Board UK Ltd

United Kingdom

2,400

264,172.02 4,435.15 41,827.54 2,550,195.54

Metsa Board Americas Corporation 1)

USA

1.00

180

Metsa Board Australia and New Zealand Pty Ltd

Australia

100.00

1

196 Remuneration report 201 Investor relations and investor information

Total

1) Total Group holding 100.0%

144

145

Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024

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