METSÄ BOARD Annual review 2024
7.3 Associate companies and joint ventures
The carrying amount of associated companies at 31 December 2024 includes goodwill of EUR 45.2 million (45.2). None of the associate com- panies or joint ventures are listed companies. Transactions with associate companies and joint ventures are detailed in Note 7.3.
Book value EUR
Country
Holding, %
Number of shares
Subgroup in other countries Metsä Board Sverige Ab Husum Pulp Ab
Business operations and value creation 2 This is Metsä Board 4 CEO’s review 6
Accounting principles Associated companies include all companies over which the Group has considerable influence but no control. Significant influence is usually based on a shareholding conferring 20–50% of the voting rights. A joint venture is a joint arrangement in which the parties that have joint control of the arrangement have rights to its net assets. Investments in associates and joint ventures are accounted for using the equity method and are initially recognized at cost. The Group’s shares in associated companies and joint ventures also include the goodwill measured at the time of acquisition, less any impairment. The Group’s share of the profits or losses of associated compa- nies and joint ventures is recognised in the income statement as a separate line item above the operating result in case of associate company Metsä Fibre and below the operating result in case of other associate companies. Correspondingly, the Group’s share of other comprehensive income in associated companies and joint ventures is recognised in its items of other comprehensive income. A proportion corresponding to the Group’s shareholding is eliminated from unrealised profits between the Group and its associate companies and joint ventures. Unrealised losses arising from impairment are not eliminated. When necessary, the accounting principles applied by associated companies and joint ventures have been adjusted to comply with the Group’s principles.
Sweden
70.00
85,664
184,647,891.63
Financial information summary of essential associated companies
Material subsidiaries Metsä Board has two material subsidiaries:
According to management’s view, the only essential associated company is Metsä Fibre Group, which produces chemical pulp and sawn timber. Metsä Board owns 24.9% of Metsä Fibre. Metsä Board’s parent company, Metsäliitto Cooperative, owns 50.1%, and Itochu Corporation from Japan owns 25.0%. Metsä Fibre has operations primarily in Finland, and its production capacity is approximately 3.3 million tonnes of chemical pulp. In Addition Metsä Fibre has five sawmills in Finland.
Strategy and financial targets
8
Value creation
• Metsä Board Sverige AB Metsä Board Sverige AB is located in Örnsköldsvik, Sweden. Metsä Board Sverige AB produces folding boxboard and kraftliner. Metsä Board Sverige AB’s sales were EUR 437 million (396). The company’s capacity is 250,000 tonnes of liner and 600,000 tonnes of folding boxboard.
• Husum Pulp AB Husum Pulp AB produces pulp for Metsä Board Sverige Ab and to the market. The company’s sales were EUR 463 million (370) and capacity 730,000 tonnes of chemical pulp.
Financial development 10 Key figures 12
Report of the Board of Directors
20 20 37 70 89 96
• Sustainability statement
Summarised financial information for Metsä Fibre
General information
E – Environment
Metsä Fibre Group
7.2 Non-controlling interest’s shares
S – Social responsibility
EUR million
2024
2023
G – Governance
Sales
2,328.3
2,498.6
Annexes to the Sustainability statement
Result for the period
-35.2 -55.5 -90.7
78.7
Accounting principles Changes in the parent company’s ownership interest in a subsidiary that do not result in a loss of control are treated as equity transactions.
Other comprehensive income
-22.9
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
Total comprehensive income for the period
55.8
Dividend received
9.8
82.8
Non-current assets
3,270.6 982.2 1,278.1 1,089.2 1,885.4
3,467.3 980.9 1,378.4 1,054.3 2,015.5
Non-controlling interest’s shares Principal non-controlling interest’s shares
Current assets
Non-current liabilities
Current liabilities
Non-controlling interest Holding, %
Non-controlling interest Share of result, EUR million
Non-controlling interest Share of equity, EUR million
Investments in associate companies and joint ventures
Net assets
EUR million
Country Sweden
2024
2023
2024
2023
2024 164.7
2023 155.6
EUR million
2024 549.9
2023 614.2
Reconciliation of financial information for Metsä Fibre to the value recognised in consolidated balance sheet
Husum Pulp AB
30.0%
30.0%
14.1
6.8
Value 1 Jan
Share of results from associated companies and joint ventures Share of result from Metsä Fibre Share of results from other associated companies and joint ventures
EUR million
2024 469.5
2023 501.9
-8.8
24.2
Group's share of net assets
0.0
0.0
Goodwill
45.2
45.2
Dividends received
-9.8
-82.8
Other purchase price allocations at acquisition
3.5
4.1
Share of other comprehensive income from associated companies and joint ventures Translation differences and other changes in equity Investments in associated companies and joint ventures 31 Dec
Other adjustments
-0.6
-1.3
Carrying value of associated company in consolidated balance sheet
517.7
549.8
-13.8
-5.7
517.5
549.9
Metsä Fibre has been consolidated according to equity method based on its consolidated financial statements prepared under IFRS.
Amounts recognised in income statement
EUR million
2024
2023
Financial information summary of other than essential associated companies
Associate companies
-8.8 -8.8
24.2 24.2
Amounts recognised in income statement total
EUR million
2024
2023
Amounts recognised in balance sheet
Share of result from other associated compa- nies Carrying value in consolidated balance sheet
0.0
0.0
EUR million
2024 517.5 517.5
2023 549.9 549.9
0.2
0.2
Associate companies
Amounts recognised in balance sheet total
196 Remuneration report 201 Investor relations and investor information
146
147
Consolidated financial statements | METSÄ BOARD ANNUAL REVIEW 2024
Powered by FlippingBook