BUSINESS OPERATIONS AND VALUE CREATION
SUSTAINABILITY
FINANCIAL DEVELOPMENT
GOVERNANCE
Report of the Board of Directors 2021 ■ Metsä Board’s business
Pure and easily recyclable fresh fibre paperboards made from renewable
Metsä Board is a leading European producer of fresh fibre paperboards
raw materials replace non-renewable packaging materials like plastic. The
and a forerunner in sustainability. The company focuses on premium
coronavirus pandemic has shifted consumption from services to goods
lightweight fresh fibre paperboards, used primarily in consumer product
and accelerated the demand for consumer packaging across nearly all end
packaging and in the various packaging solutions of the retail sector. Metsä
uses. E-commerce has also grown significantly, especially in foodstuffs.
Board’s annual paperboard capacity is around 2 million tonnes. In addition,
Metsä Board expects global demand for premium fresh fibre paperboard
company produces chemical pulp and bleached high-yield pulp (BCTMP)
to grow by around 2–3% a year in the future.
for own use and to be sold as market pulp. The annual capacity for pulp and
In 2021, the deliveries and market prices of European producers of
BCTMP is roughly 1.4 million tonnes. In addition, Metsä Board owns 24.9
folding boxboard and white kraftliners increased from the previous year.
per cent of its associated company Metsä Fibre. Like Metsä Board, Metsä
Metsä Board’s share of the total deliveries by European folding boxboard
Fibre is part of Metsä Group, and is a leading producer of wood-based
producers was 34% (35), and 56% (57) of exports from Europe.
bioproducts such as pulp, sawn timber, biochemicals and bioenergy.
In the United States, the production of solid bleached boxboard for local
Metsä Board has sales to over 100 countries and has approximately 2,400
consumption was stable, while the production of food service paperboard
employees in 18 countries.
grew. The market prices of solid bleached boxboard and food service paperboards increased.
■ Strategy and financial targets
Market pulp
Metsä Board aims to grow in a controlled manner, accounting for the
Metsä Board and its associated company Metsä Fibre sell mainly softwood
prevailing market situation. This growth will be based on skilled people,
pulp to Europe, the Middle East, Africa and Asia. In the long run, demand
the industry’s leading products and innovative packaging solutions. The
for market pulp will be supported by the global growth in demand for
company expects global demand for premium fresh fibre paperboard to
packaging and hygiene products made from renewable materials.
grow by around 2–3% a year. Metsä Board’s decision-making is steered by profitability and sustai-
In Europe, demand for long-fibre pulp was supported particularly by the increased consumption of paperboard and the increase in the capacity
nability targets, and by the increase of shareholder value. The company
utilisation rates of printing paper mills. The market prices of pulp increased
focuses on the continuous improvement of cost-effectiveness and on cus-
in Europe.
tomer accounts which benefit from the high performance of the company’s
In China, the strong demand for market pulp during the first half of the
products and services. The objective is to distribute a competitive dividend
year weakened after the summer. The decline in demand was attributable
and retain a strong balance sheet.
to paper and paperboard mills’ extensive production shutdowns resulting
In 2021, Metsä Board’s financial targets and dividend policy remained
from state-imposed restrictions on energy use, lower-than-normal domes-
unchanged.
tic consumption and a decline in the exports of paper and paperboard
• The comparable return on capital employed (ROCE)
products, brought on by increased logistics costs. Demand picked up
is, at minimum, 12%.
towards the end of the year. Market prices of pulp increased in China.
Actual in 2021 was 18.7%. • A ratio of interest-bearing net liabilities to comparable EBITDA of, at maximum, 2.5.
■ Sales
Actual in 2021 was -0.2.
Metsä Board’s sales in 2021 were EUR 2,084.1 million (2020: 1,889.5). Sales increased due to higher prices of paperboard and market pulp as well
In accordance with its dividend policy, Metsä Board aims to distribute at
as higher delivery volumes of paperboard.
least 50% of the result for the financial period in dividends every year. The Board of Directors’ proposal to the Annual General Meeting on the dividend for the 2021 financial year corresponds to 50% of the result for
■ Result
the financial period.
The comparable operating result was EUR 386.6 million (221.2), and the operating result was EUR 375.9 million (227.3). Items affecting compara-
■ Operating environment
bility during the financial period totalled EUR 10.8 million and comprised the following items: a EUR 7.0 million capital gain from the sale of a land area unrelated to business operations; a EUR -6.9 million impairment
Paperboards
recognised in the assets of Metsä Fibre’s Kemi pulp mill; EUR -1.8 million
Global megatrends impact the operations of businesses and set require-
recognised in taxes as a result of the tax audit in Metsä Fibre’s subsidiary in
ments for the safety, quality, sustainability and recyclability of packaging.
Italy; a EUR -4.6 million impairment recognised in the current paperboard
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