Metsä Board Annual Review 2024

This is Metsä Board

METSÄ BOARD Annual review 2024

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

High-quality and lightweight fresh fibre paperboards

Strong position in a growing market

Financial development

Strategy and financial targets

SALES EUR million

COMPARABLE OPERATING RESULT EUR million % of sales

TOTAL INVESTMENTS EUR million

CASH FLOW FROM OPERATIONS EUR million

We focus on high-quality and recyclable fresh fibre board made of renewable wood fibre, which is mainly used in consumer packaging and retail packaging solutions. Good availability of Northern European wood fibre and high self-sufficiency in pulp and energy enable the growth and development of our paperboard business.

We are a leading producer of folding boxboard and white kraftliners in Europe, and globally the biggest producer of coated white kraft- liners. In the USA, we are the largest supplier of folding boxboard. The global demand for paperboards is expected to grow at an

8

Value creation

Financial development 10 Key figures 12

2,500 2,000 1,500 1,000 500 0

600 500 400 300 200 100 0

30 25 20 15 10 5 0

350 300 250 200 150 100 50 0

350 300 250 200 150 100 50 0

annual rate of slightly over 4%. (Source: Smithers Information Ltd.).

Report of the Board of Directors

20 20 37 70 89 96

• Sustainability statement

General information

E – Environment

20 21 22 23 24

20 21 22 23 24

20 21 22 23 24

20 21 22 23 24

Targeted investments for sustainable growth

Paperboards with low carbon footprint Our products promote the circular economy and help our customers to reduce the use of plastic. Lightweight paperboards produced resource- efficiently with mainly fossil-free energy enable reduction of the carbon footprint of packaging.

S – Social responsibility

G – Governance

INTEREST-BEARING NET DEBT/ COMPARABLE EBITDA

Annexes to the Sustainability statement

SALES SPLIT BY PRODUCT % of sales

SALES SPLIT BY REGION % of sales

Population growth, urbanisation and plastic replacement will increase the demand for fibre-based packaging materials in the long term. We respond to this demand with sustainable growth investments and innovative packaging solutions. With mill-specific investments we improve our competitiveness and accelerate our goal of fossil-free production and products by the end of 2030.

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

2.0 Target <2.5

Folding boxboard ���������������� 57 White kraftliners ����������������� 25 Market pulp �������������������������� 14 Other �������������������������������������� 4

EMEA ������������������������������������ 67 Americas ������������������������������ 27 APAC ��������������������������������������� 6

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We are part of Metsä Group Metsä Group is largest purchaser of wood in Finland and responsible for Metsä Board’s wood procurement. As part of Metsä Group, we are committed to the principles of regenerative forestry . Our self-sufficiency in pulp is secured by our 24.9% ownership in Metsä Fibre, the global leading producer of market softwood pulp.

We are 2,290 Metsä Board employees in 17 countries

We have 8 production units in Finland and Sweden. Our main market areas are Europe and North America

Our customers include international brand owners, packaging converters, manufacturers of corrugated products and merchants

tsagroup.com/sustainability/ d/regenerative-forestry/

METSÄ GROUP

The parent company Metsäliitto Cooperative is composed of more than 90,000 Finnish forest owners.

Sales EUR 5.7 billion

Comparable operating result EUR 203 million

Personnel 9,600

Wood Products

Wood Supply and Forest Services

Pulp and sawn timber

Paperboard

Tissue and greaseproof papers

We are committed to the ambitious and science-based 2030 sustainability targets that enable fossil free production and products and help our customers to con- tribute to their own goals. Read more about sustainable development and our goals .

Paperboard capacity 2.3 million tonnes/year

Pulp and BCTMP capacity 1.7 million tonnes/year

METSÄ WOOD

METSÄ FIBRE

METSÄ BOARD

METSÄ TISSUE

OWNERSHIP Metsäliitto Cooperative 100%

Metsäliitto Cooperative 100%

Metsäliitto Cooperative 50.1% Itochu Corporation 25.0% Metsä Board 24.9%

Metsäliitto Cooperative 52% (69% of votes) The company is listed on Nasdaq Helsinki

Metsäliitto Cooperative 100%

END USE OF FOLDING BOXBOARD

END USE OF WHITE KRAFTLINERS

SALES EUR 2.4 billion PERSONNEL 700

EUR 0.6 billion

EUR 2.3 billion

EUR 1.9 billion

EUR 1.2 billion

Various retail packaging solutions Other consumer product packaging E-commerce

Food and food service packaging Other consumer product packaging Graphical end use

196 Remuneration report 201 Investor relations and investor information

1,700

1,500

2,300

2,500

METSÄ SPRING Innovation company

Source: Metsä Board

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