Board of Directors’ Report ............................................................................................................................................................... | |
Financial year 2024 ......................................................................................................................................................................... | |
Corporate Governance Statement ................................................................................................................................................ | |
Sustainability statement ................................................................................................................................................................. | |
General information ...................................................................................................................................................................... | |
E - Environmental information ..................................................................................................................................................... | |
S - Social information .................................................................................................................................................................... | |
G - Governance information ........................................................................................................................................................ | |
Annexes to the Sustainability statement .................................................................................................................................... | |
Shares and shareholders ............................................................................................................................................................... | |
Key figures ........................................................................................................................................................................................ | |
Board of Directors’ proposal on the use of profit .......................................................................................................................... | |
Consolidated financial statements, IFRS ...................................................................................................................................... | |
Consolidated statement of income ............................................................................................................................................... | |
Consolidated statement of comprehensive income ................................................................................................................... | |
Consolidated balance sheet .......................................................................................................................................................... | |
Consolidated statement of changes in shareholders’ equity .................................................................................................... | |
Consolidated statement of cash flows ......................................................................................................................................... | |
Notes to the Consolidated financial statements ......................................................................................................................... | |
1.Group performance .............................................................................................................................................. | |
2.Operational assets and liabilities ....................................................................................................................... | |
3.Intangible assets and property, plant, and equipment .................................................................................... | |
4.Capital structure and financial instruments ...................................................................................................... | |
5.Consolidation ........................................................................................................................................................ | |
6.Other notes ............................................................................................................................................................ | |
Financial Statements of the Parent Company, FAS .................................................................................................................... | |
Signatures of the Board of Directors’ Report and Financial Statements ................................................................................. | |
Auditor's report ................................................................................................................................................................................... | |
Assurance report on the Sustainability statement ...................................................................................................................... | |
Auditor's report on ESEF ................................................................................................................................................................. |
EUR million | 2024 | 2023 | Change % |
Orders received | 5,140 | 5,252 | -2 |
Orders received by services business | 2,881 | 2,955 | -3 |
% of orders received | 56 | 56 | – |
Order backlog | 3,046 | 2,951 | 3 |
Sales | 4,863 | 5,390 | -10 |
Sales by services business | 2,824 | 2,891 | -2 |
% of sales | 58 | 54 | – |
Adjusted EBITA | 804 | 887 | -9 |
% of sales | 16.5 | 16.5 | – |
Operating profit | 727 | 805 | -10 |
% of sales | 15.0 | 14.9 | – |
Earnings per share, continuing operations, EUR | 0.59 | 0.65 | -9 |
Earnings per share, total, EUR | 0.40 | 0.66 | -39 |
Cash flow from operations | 576 | 550 | 5 |
Gearing, % | 44.9 | 33.8 | – |
Personnel at end of period | 16,832 | 17,134 | -2 |
EUR million, % | Aggregates | Minerals | Total |
2023 | 1,274 | 3,978 | 5,252 |
Organic growth in constant currencies, % | -5 | 1 | 0 |
Impact of changes in exchange rates, % | -1 | -3 | -2 |
Structural changes, % | 2 | 0 | 1 |
Total change, % | -3 | -2 | -2 |
2024 | 1,231 | 3,909 | 5,140 |
EUR million, % | Aggregates | Minerals | Total |
2023 | 1,346 | 4,044 | 5,390 |
Organic growth in constant currencies, % | -12 | -7 | -8 |
Impact of changes in exchange rates, % | -1 | -3 | -2 |
Structural changes, % | 2 | 0 | 1 |
Total change, % | -10 | -10 | -10 |
2024 | 1,207 | 3,656 | 4,863 |
EUR million | 2024 | 2023 | Change % |
Orders received | 1,231 | 1,274 | -3 |
Orders received by services business | 431 | 442 | -3 |
% of orders received | 35 | 35 | – |
Order backlog | 439 | 453 | -3 |
Sales | 1,207 | 1,346 | -10 |
Sales by services business | 419 | 434 | -3 |
% of sales | 35 | 32 | – |
Adjusted EBITA | 198 | 232 | -14 |
% of sales | 16.4 | 17.2 | – |
Operating profit | 179 | 214 | -16 |
% of sales | 14.8 | 15.9 | – |
EUR million | 2024 | 2023 | Change % |
Orders received | 3,909 | 3,978 | -2 |
Orders received by services business | 2,450 | 2,513 | -3 |
% of orders received | 63 | 63 | – |
Order backlog | 2,607 | 2,498 | 4 |
Sales | 3,656 | 4,044 | -10 |
Sales by services business | 2,405 | 2,458 | -2 |
% of sales | 66 | 61 | – |
Adjusted EBITA | 640 | 707 | -10 |
% of sales | 17.5 | 17.5 | – |
Operating profit | 548 | 627 | -13 |
% of sales | 15.0 | 15.5 | – |
Pieces | 2024 | 2023 |
Invention disclosures | 175 | 235 |
Patent applications (including utility models) | 2,116 | 2,096 |
Individual granted patents in force, as of December 31 | 7,924 | 7,829 |
Inventions protected by patents, as of December 31 | 1,058 | 1,031 |
Share, % | |
Europe | 33 |
North and Central America | 14 |
South America | 25 |
Asia Pacific and Greater China | 14 |
Africa, Middle East and India | 14 |
Total | 100 |
Metso agenda theme | ESRS topic | ESRS subtopic | Materiality | Value chain element | Target set |
Environmental efficiency in own operations Metso Plus offering and innovations for our customers | E1 Climate change | Climate change adaptation Climate change mitigation Energy | Impact and financial Impact and financial Impact and financial | Own operations Supply chain and Customers | Yes Yes Yes |
Environmental efficiency in own operations Metso Plus offering and innovations for our customers | E3 Water and resources | Water (in own operations) Water (in customer operations) | Impact Impact and financial | Own operations and Customers | Yes No |
Metso Plus offering and innovations for our customers | E4 Biodiversity and ecosystems | Direct impact drivers of biodiversity loss: Land-use change, fresh water-use change, sea- use change Impacts on the extent and condition of ecosystems Impacts and dependencies on ecosystem services | Impact Impact Impact | Customers | No No No |
Metso's people and culture | S1 - Own workforce | Working conditions: - Health and safety - Working time - Discrimination and harassment - Freedom of association and collective bargaining Equal treatment and opportunities for all: - Diversity - Training and skills development | Impact and financial Impact Impact Impact Impact Impact | Own operations | Yes Yes Yes Yes Yes Yes |
Responsible supply chain | S2 - Workers in the value chain | Working conditions: - Health and safety - Working time - Adequate wages - Secure employment - Work-life balance - Discrimination and harassment - Forced labor - Freedom of association and collective bargaining | Impact Impact Impact Impact Impact Impact Impact Impact | Supply chain | Yes Yes Yes Yes No Yes Yes Yes |
Responsible business conduct | G1 - Business conduct | Corporate culture Corruption and bribery - Prevention and detection, including training - Incidents Protection of whistle- blowers Management of relationships with suppliers, including payment practices | Impact and financial Impact and financial Impact Impact | Own operations and Supply chain | Yes Yes Yes No |
Category | 2024 | 2023 | 2022 | ||
Board of Directors | Non-executive members | 9 | 9 | 9 | |
Independent of the company | 100% | 100% | 100% | ||
Women to men ratio | 0.5 : 1 | 0.5 : 1 | 0.5 : 1 | ||
Leadership Team | Executive members | 9 | 9 | 9 | |
Non-executive members | 0 | 0 | 0 | ||
Women to men ratio | 1.25 : 1 | 0.8 : 1 | 0.8 : 1 | ||
How we engage? | Key topics and concerns discussed in 2024 | Actions in 2024 |
CUSTOMERS | ||
Metso has active discussions with many of its customers to support them in reaching their sustainability targets and works with customers to make improvements to their processes, products and own operations. Metso collaborates with customers in developing new sustainable technologies. More details about engagement are available under each relevant standard (E1 Climate Change, E3 Water and E4 Biodiversity). | - Supply chain emissions - Supplier (Metso's suppliers) sustainability performance - Code of conduct and human rights- related topics - Products and services with sustainability benefits - Health and safety at Metso and in the supply chain, as well as product safety | 2024 key actions are described in detail under each relevant standard (E1 Climate change, E3 Water and E4 Biodiversity). |
SUPPLIERS | ||
Metso’s approach to responsible supply chain management is rooted in due diligence. Key to this effort are the signed Supplier Code of Conduct and frequent internal and third-party supplier sustainability audits, especially in ESG high-risk regions, and encouraging suppliers to set their own ambitious climate targets. More details about engagement under sections 3.2.5.-3.2.7. Responsible supply chain processes, remediation, metrics and actions. | - Climate change-related initiatives - Logistics and supply chain emissions - Scope 3 emissions data collection - Human rights through audits - Health and safety | In 2024, Metso renewed its Supplier Code of Conduct and put more focus on the topic of human rights in the supply chain. Key actions are described in more detail under section 3.2.7. Responsible supply chain metrics and actions. |
EMPLOYEES | ||
Metso engages actively with employees locally through various formal and informal channels: townhall meetings between management and employees, various union and works council meetings in various countries, European works council meetings, etc. All employees have the opportunity to also give anonymous feedback to the company through the employee engagement survey. More details about engagement under S1 Own workforce. | - Safety, health and wellbeing at work - Diversity and inclusion - Proportion of women in the workforce - Psychological safety - Inclusive talent acquisition - Safety culture - Developing Metso's leaders - Internal collaboration - Scarcity of talent in particular expertise areas - Blue-collar engagement | Metso conducted four employee engagement surveys in 2024: two full surveys for all employees, and two shorter pulse surveys for white-collar workers. The results are discussed, and actions agreed within teams quarterly. Key actions in 2024 are described in more detail in sections 3.1.7-3.1.8. Metso's people and culture, and Health and safety actions. |
SHAREHOLDERS | ||
Metso follows the principle of equality in its investor communications by providing accurate, sufficient, and timely information to all market participants through releases, in conference calls, meetings and Capital Market Days. This includes sustainability-related information. | - Metso's strategy - Organic and inorganic growth opportunities - Competitive environment - Financial and sustainability performance - Sustainable offering and value to customers - Shareholder returns | Key actions in 2024 included releases, interim reports, analyst calls, investor roadshows and other meetings, investor seminars and conferences, site visits and investor website. |
MEDIA | ||
Regarding media strategy, Metso aims to provide easy access to clear, accurate information, case studies, and expert views through various channels. The company focuses on trade media for press coverage and maintains both local and global interactions with media representatives and established trade media outlets. Metso's experts regularly meet trade press representatives at exhibitions and conferences. | - Metso's strategy and sustainability initiatives - Product offering and expansion of service and manufacturing capabilities | 2024 actions included e.g. CEO interviews with Finnish and international media, subject matter interviews with trade media and local media, as well as media visits to Metso locations. |
NON-GOVERNMENTAL ORGANIZATIONS | ||
Metso collaborates with several non- governmental organizations. Metso’s sponsorships and donations primarily focus on environmental protection and conservation, safety programs, and natural disaster relief. These priorities are set in the Sponsorships and Donations Policy. | - Green steel | 2024 actions included actively working to assess the technical viability of green steel and to help the development of this new sector, including engagement with steel mills and customers. Metso's participation in the Climate Leadership Coalition continued in 2024. |
LOCAL COMMUNITIES | ||
As a responsible corporate citizen Metso works closely with local communities around its operating sites and creates social value to local communities by providing employment opportunities and supporting corporate social responsibility projects that bring measurable benefits to them. Community projects are based on local needs, defined through discussions with local communities, and aim to integrate volunteer work. Metso also collaborates with its customers on co-funded community projects. | - Education for children and vocational education - School partnerships - Volunteer work - Support for local communities and indigenous people | Metso is committed to being socially accountable in the areas where it operates. In 2024, Metso had various corporate social responsibility (CSR) programs and Metso Volunteers activities ongoing around the world, managed and sponsored by Metso's local organizations. |
AUTHORITIES, REGULATORS AND GOVERNMENTS | ||
Research and development collaboration with stakeholders occurs primarily through EU programs, Business Finland, and the EIT Raw Materials Knowledge and Innovation Community. | - Sustainable minerals and aggregates processing - Green energy transition and electrification - Resource efficiency - Automation and digitalized process optimization - Safety |
UNIVERSITIES AND RESEARCH INSTITUTES | ||
This collaboration takes various forms, including projects, school visits, apprenticeship training, internships, and dissertation positions. | Tightening collaboration with select technical universities; university and student collaboration is seen important in tackling talent challenges such as: - Shortage of workforce - Acquiring new diverse skills - Increasing gender diversity | 2024 actions centered around identifying the main universities for collaboration in key talent markets and creating global guidelines for university and student collaboration. |
2024 | Substantial contribution criteria | DNSH criteria (’Does Not Significantly Harm’) | |||||||||||||||||
Economic activities | Code(s) | Absolute turnover (EUR million) | Proportion of turnover (%) | Climate change mitigation (Y; N; N/ EL) | Climate change adaptation (Y; N; N/ EL) | Water (Y; N; N/EL) | Pollution (Y; N; N/EL) | Circular economy (Y; N; N/EL) | Biodiversity (Y; N; N/EL) | Climate change mitigation (Y/N) | Climate change adaptation (Y/N) | Water (Y/N) | Pollution (Y/N) | Circular economy (Y/N) | Biodiversity (Y/N) | Minimum safeguards (Y/N) | Taxonomy Aligned (A.1) or Eligible (A.2) proportion of turnover, 2023 (%) | Cate- gory (enab- ling activity) (E) | Category (transi- tional activity) (T) |
A. TAXONOMY-ELIGIBLE ACTIVITIES 1) | |||||||||||||||||||
A.1 Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Manufacture of other low carbon technologies | CCM 3.6 | 357.8 | 7% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 8% | E | |
Manufacture of iron and steel 2) | CCM 3.9 | 436.0 | 9% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 10% | T | |
Close to market research, development and innovation | CCM 9.1 | 236.2 | 5% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 3% | E | |
Repair, refurbishment and remanufacturing 3) | CE5.1 | 2.3 | 0% | N/EL | N/ EL | N/ EL | N/ EL | Y | N/ EL | Y | Y | Y | Y | Y | Y | Y | NA | ||
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 1,032.0 | 21% | 21% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 20% | |||
Of which enabling | 594.0 | 12% | 12% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 11% | E | ||
Of which transitional | 438.3 | 9% | 9% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 10% | T | ||
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
EL; N/EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | ||||||||||||||
Manufacture of other low carbon technologies | CCM 3.6 | 3,179.3 | 65.0% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 67.0% | |||||||||
Manufacture of iron and steel 2) | CCM 3.9 | 34.2 | 0.7% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 0.5% | |||||||||
Close to market research, development and innovation | CCM 9.1 | 29.9 | 0.6% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 0.9% | |||||||||
Demolition and wrecking of buildings and other structures 3) | CE3.3 | 0.3 | 0% | N/EL | N/ EL | N/ EL | N/ EL | EL | N/ EL | 0% | |||||||||
Repair, refurbishment and remanufacturing 3) | CE5.1 | 0.0 | 0% | N/EL | N/ EL | N/ EL | N/ EL | EL | N/ EL | 0.2% | |||||||||
Turnover of Taxonomy- eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 3,243.8 | 67.0% | 67.0% | 0% | 0% | 0% | 0.0% | 0% | 69.0% | ||||||||||
Total (A.1 + A.2) | 4,276.0 | 88.0% | 88.0% | 0% | 0% | 0% | 0.0% | 0% | 89.0% | ||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
Turnover of Taxonomy- non-eligible activities (B) | 586.6 | 12% | 11% | ||||||||||||||||
Total (A+B) | 4,862.5 | 100% | 100% | ||||||||||||||||
2024 | Substantial contribution criteria | DNSH criteria (’Does Not Significantly Harm’) | |||||||||||||||||
Economic activities | Code(s) | Absolute CapEx (EUR million) | Proportion of CapEx (%) | Climate change mitigation (Y; N; N/ EL) | Climate change adaptation (Y; N; N/EL) | Water (Y; N; N/EL) | Pollution (Y; N; N/EL) | Circular economy (Y; N; N/EL) | Biodiversity (Y; N; N/EL) | Climate change mitigation (Y/N) | Climate change adaptation (Y/N) | Water (Y/N) | Pollution (Y/N) | Circular economy (Y/N) | Biodiversity (Y/N) | Minimum safeguards (Y/N) | Taxonomy aligned (A.1) or eligible (A.2) proportion of CapEx, 2023 (%) | Cate- gory (enab- ling activity) (E) | Category (transitional activity) (T) |
A. TAXONOMY-ELIGIBLE ACTIVITIES 1) | |||||||||||||||||||
A.1 Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Manufacture of other low carbon technologies | CCM 3.6 | 6.9 | 3% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 2% | E | |
Manufacture of iron and steel 2) | CCM 3.9 | 15.8 | 6% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 10% | T | |
Close to market research, development and innovation | CCM 9.1 | 5.8 | 2% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 1% | E | |
Repair, refurbishment and remanufacturing 3) | CE5.1 | 0.1 | 0% | N/ EL | N/ EL | N/ EL | N/ EL | Y | N/ EL | Y | Y | Y | Y | Y | Y | Y | NA | ||
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 28.6 | 11% | 11% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 13% | |||
Of which enabling | 12.7 | 5% | 5% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 3% | E | ||
Of which transitional | 15.9 | 6% | 6% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 10% | T | ||
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | ||||||||||||||
Manufacture of other low carbon technologies | CCM 3.6 | 134.7 | 54% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 43% | |||||||||
Manufacture of iron and steel 2) | CCM 3.9 | 1.2 | 0% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 1% | |||||||||
Close to market research, development and innovation | CCM 9.1 | 0.7 | 0% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 0.4% | |||||||||
Demolition and wrecking of buildings and other structures 3) | CE3.3 | 0.0 | 0% | N/ EL | N/ EL | N/ EL | N/ EL | EL | N/ EL | 0% | |||||||||
Repair, refurbishment and remanufacturing 3) | CE5.1 | 0.0 | 0% | N/ EL | N/ EL | N/ EL | N/ EL | EL | N/ EL | 0.1% | |||||||||
CapEx of Taxonomy- eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 136.7 | 55% | 55% | 0% | 0% | 0% | 0% | 0% | 44% | ||||||||||
Total (A.1 + A.2) | 165.3 | 66% | 66% | 0% | 0% | 0% | 0% | 0% | 57% | ||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
CapEx of Taxonomy-non- eligible activities (B) | 84.6 | 34% | 43% | ||||||||||||||||
Total (A+B) | 249.9 | 100% | 100% | ||||||||||||||||
2024 | Substantial contribution criteria | DNSH criteria (’Does Not Significantly Harm’) | |||||||||||||||||
Economic activities | Code(s) | Absolute OpEx (EUR million) | Proportion of OpEx (%) | Climate change mitigation (Y; N; N/ EL) | Climate change adaptation (Y; N; N/EL) | Water (Y; N; N/EL) | Pollution (Y; N; N/EL) | Circular economy (Y; N; N/EL) | Biodiversity (Y; N; N/EL) | Climate change mitigation (Y/N) | Climate change adaptation (Y/N) | Water (Y/N) | Pollution (Y/N) | Circular economy (Y/N) | Biodiversity (Y/N) | Minimum safeguards (Y/N) | Taxonomy- aligned (A.1) or eligible (A.2) proportion of OpEx, 2023 (%) | Cate- gory (enab- ling activity) (E) | Category (transitio- nal activity) (T) |
A. TAXONOMY-ELIGIBLE ACTIVITIES 1) | |||||||||||||||||||
A.1 Environmentally sustainable activities (Taxonomy-aligned) | |||||||||||||||||||
Manufacture of other low carbon technologies | CCM 3.6 | 72.2 | 46% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 38% | E | |
Manufacture of iron and steel 2) | CCM 3.9 | 18.9 | 12% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 8% | T | |
Close to market research, development and innovation | CCM 9.1 | 7.9 | 5% | Y | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | Y | Y | Y | Y | Y | Y | Y | 6% | E | |
Repair, refurbishment and remanufacturing 3) | CE5.1 | 0.1 | 0% | N/EL | N/ EL | N/ EL | N/ EL | Y | N/ EL | Y | Y | Y | Y | Y | Y | Y | NA | ||
OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) | 99.1 | 64% | 64% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 52% | |||
Of which enabling | 80.1 | 51% | 51% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 44% | E | ||
Of which transitional | 19.0 | 12% | 12% | 0% | 0% | 0% | 0% | 0% | Y | Y | Y | Y | Y | Y | Y | 8% | T | ||
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) | |||||||||||||||||||
EL; N/EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | EL; N/ EL | ||||||||||||||
Manufacture of other low carbon technologies | CCM 3.6 | 38.7 | 25% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 42% | |||||||||
Manufacture of iron and steel 2) | CCM 3.9 | 1.0 | 1% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 0.3% | |||||||||
Close to market research, development and innovation | CCM 9.1 | 0.2 | 0% | EL | N/ EL | N/ EL | N/ EL | N/ EL | N/ EL | 1% | |||||||||
Demolition and wrecking of buildings and other structures 3) | CE3.3 | 0.0 | 0% | N/EL | N/ EL | N/ EL | N/ EL | EL | N/ EL | 0% | |||||||||
Repair, refurbishment and remanufacturing 3) | CE5.1 | 0.0 | 0% | N/EL | N/ EL | N/ EL | N/ EL | EL | N/ EL | 0.1% | |||||||||
OpEx of Taxonomy- eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) | 39.9 | 26% | 26% | 0% | 0% | 0% | 0% | 0% | 43% | ||||||||||
Total (A.1 + A.2) | 138.9 | 89% | 89% | 0% | 0% | 0% | 0% | 0% | 95% | ||||||||||
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES | |||||||||||||||||||
OpEx of Taxonomy-non- eligible activities (B) | 16.6 | 11% | 5% | ||||||||||||||||
Total (A+B) | 155.5 | 100% | 100% | ||||||||||||||||
Nuclear energy-related activities | ||
1 | The undertaking carries out, funds or has exposures to the research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | No |
2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | No |
3 | The undertaking carries out, funds or has exposures to the safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | No |
Fossil gas-related activities | ||
4 | The undertaking carries out, funds or has exposures to the construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | No |
5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. | No |
6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. | No |
Impacts | Risks | Opportunities | Key management methods |
CLIMATE CHANGE MITIGATION | |||
Future sustainability-related requirements will influence market expectations and lead to completely new or alternative technology solutions and processes. Metso and Metso’s customer industries create CO2 emissions and have an environmental impact. | Inability to meet these requirements threatens business continuity in the long term. | New services and products across the value chain will help the mining and metals industries respond to a more volatile environment with increasing demand for sustainability solutions. This will create new business opportunities for Metso. | - Metso Plus offering – over 100 products and services that are more energy-efficient than an industry benchmark or a previous-generation product in the market. Metso aims to keep expanding and improving this offering to have the sustainable alternative in every part of its customers’ value chain. - All Metso’s R&D projects must have sustainability targets. Furthermore, 80% of R&D spend should be on products that are likely to be included in the Metso Plus portfolio. |
Climate change will impact the physical and business environment; emerging technologies and the transition to a lower carbon economy may change business models and customer demand. Shifts in customer demand and general market requirements may challenge companies to adapt to these changes. Metso provides solutions for this transition. | Inability to meet the new demand is a threat to business. Increased volatility may result in supply chain challenges. | Electrification will increase the demand for certain metals, such as copper and other battery metals, which will strengthen the demand for minerals and hence the outlook for mining and Metso’s business. | |
CLIMATE CHANGE ADAPTATION | |||
Access to water, responding to higher temperatures, and heatwaves will require adaptations in Metso’s own operations and therefore additional resources. Increasing levels of CO2 emissions will lead to increasing temperatures in Metso’s locations globally. | A high-level analysis of direct climate impacts on Metso’s manufacturing locations as well as the Group’s ability to adapt to changes now and in the coming 5-10 years. | ||
CLIMATE CHANGE ENERGY | |||
Metso uses energy and its production generates greenhouse gas emissions (Scope 1 and Scope 2) | Availability of energy, especially clean energy, will become increasingly important. However, affordable access to clean energy might be restricted, particularly in remote customer locations, and with significant differences between countries. This can increase operating costs and decrease profitability. | Companies developing and offering clean energy solutions and demonstrating increased energy efficiency will have a competitive edge in countries that are still developing their green energy sectors. | - Metso has a net-zero target and a transition plan to achieve the target, as described in more detail in section 2.3.5. Environmental efficiency in own operations. - Metso has solutions to track and reduce energy consumption of Metso’s products in customer operations. |
Sustainability topic | Target for 2024 | Long-term goal | 2024 | 2023 | Progress |
CO2e emissions: Scope 1 & 2 (market based) | Decrease CO2e emissions by 72% compared to 2019 baseline | Net zero by 2030 | 40,978 tCO2e | 40,140 tCO2e | 2% (-66%2)) |
CO2e emissions: Scope 1 & 2 (market based), with use of GAS-RECs | Decrease CO2e emissions by 72% compared to 2019 baseline | Net zero by 2030 | 33,799 tCO2e | 31,463 tCO2e | 7% (-72%2)) |
CO2e emissions: Logistics | Decrease CO2e emissions by 20% compared to 2019 baseline | Decrease CO2e emissions from logistics by 20% by 2025 | 152,000 tCO2e | 168,000 tCO2e | -10% (-13%2)) |
Suppliers with CO2 targets | 25% of direct procurement spend is with suppliers that have set an SBTi approved CO2 emission target 3) | 30% of direct procurement spend is with suppliers that have a science-based CO2 emission target (SBTi- approved) by 2025 | 31.6% | 24.3% | Above target |
Metso Plus portfolio1) | Grow sales of Metso Plus portfolio faster than overall sales | Grow sales of Metso Plus portfolio faster than overall sales | EUR 1,261 million | EUR 1,515 million | Below target |
R&D projects with sustainability targets1) | 100% of R&D project spend on projects with energy efficiency, emissions, circularity, water or safety target | 100% of R&D project spend on projects with energy efficiency, emissions, circularity, water or safety target | 97.5% | 99.8% | Below target |
R&D spend on Metso Plus portfolio development1) | 80% of R&D product development spend on Metso Plus portfolio | 80% of R&D product development spend on Metso Plus portfolio by 2030 | 78.1% | 79.0% | In progress |
Accumulated reduction of GHG emissions, tCO2e | 2024 | 2023 | 2022 | |
Reduction of emissions Scope 1, tCO2e | 16,641 | 15,301 | 9,059 | |
Reduction of emissions Scope 1, tCO2e with use of GAS-RECS | 23,820 | 23,979 | 10,547 | |
Reduction of emissions Scope 2, tCO2e | 60,723 | 70,181 | 88,333 | |
Category | Description | Financial impact | Time horizon |
Transitional risks | |||
Technology | Future sustainability-related requirements will influence market expectations and lead to completely new or alternative technology solutions and processes. The inability to meet these requirements threatens business continuity in the long term. | High | Medium – Long |
Non-optimal choices in R&D expenditure may affect the speed and quality of the development of Metso’s product and services offering. Inability to develop the innovations needed for the increasing commodity supply required for the energy transition is a risk. | Intermediate | Medium | |
Market | Climate change will impact the physical and business environment. Emerging technologies and the transition to a lower-carbon economy may change business models and customer demand. Shifts in customer demand and general market requirements may challenge companies to adapt to these changes. The inability to meet the new demand is a threat to business. Increased market volatility may result in supply chain challenges. | High | Short – Medium |
The Metso Plus portfolio may be more sensitive to the business cycle than the overall portfolio, which may result in loss of value during industry downturns. | Intermediate | Short – Medium | |
The availability of energy, especially low-carbon energy, will become increasingly important. However, access to affordable low-carbon energy might be restricted, particularly in remote customer locations and with significant differences between countries. This can increase operating costs and decrease profitability. | Intermediate | Medium | |
Reputation | Stigmatization of the industry and a negative perception of companies may adversely affect Metso’s or its customers’ reputation and social acceptance. | Intermediate | Medium |
Metso’s or the industry’s negative reputation can adversely impact investors’ decisions. This may affect industry structures and Metso’s ability to serve carbon- intensive segments. | Intermediate | Medium | |
Policy & Legal | Climate change concerns are likely to generate new, stricter regulations and legislation. Environmental and emissions reporting obligations will increase. | Intermediate | Short |
Physical risks | |||
Chronic | Customers’ access to inputs, e.g. water, can be hindered by chronic changes in the environment. For some customers, this may result in reduced business and, consequently, decreased sales. The increasingly visible impacts of climate change may lead to social and political disruption, which may affect Metso’s customers’ ability to operate. | Intermediate | Medium – Long |
Chronic risks, e.g. access to water, responding to higher temperatures and heatwaves, will require adaptations in Metso’s own operations. | Low | Short – Medium | |
Acute | Increased frequency and severity of various natural hazards (floods, storms, heatwaves, etc.), including the follow-on social impacts. May cause disruption at Metso locations. | Low | Short |
Category | Description | Financial impact | Time horizon |
Products and services | New services and products across the value chain will help the mining and metals industries respond to a more volatile business environment with increasing demand for sustainability solutions. This will create new business opportunities. | High | Medium |
Continuous development of new environmentally efficient products or services, and optimizing existing products and services for increased energy, carbon and/or water efficiencies through R&D and innovation to meet customers’ future needs. | High | Short – Medium | |
Resilience | Global operations, with sufficient presence in all key regions, and strong business development capabilities enable a solid foundation to adapt to and profit from changes in the market environment. | Intermediate | Short – Medium |
Being the preferred partner with a good reputation and wide social acceptance will improve customer and investor confidence and financing opportunities. | Low | Medium | |
Energy source | Companies developing and offering clean energy solutions and demonstrating increased energy efficiency will have a competitive edge in countries that are still developing their green energy sectors. | Low | Short – Medium |
Market | Electrification will increase the demand for certain metals, such as copper and other battery metals, which will strengthen the demand for minerals and, consequently, the outlook for the mining industry and Metso’s business. | High | Short – Medium |
More stringent regulatory development may increase the demand for Metso Plus solutions. | Intermediate | Medium | |
Resource efficiency | Environmental efficiency, for example low-carbon raw materials and/or a small footprint in own operations, will become increasingly important and can add to the attractiveness of Metso’s technologies. | Low | Medium |
Energy consumption and mix | 2024 | 2023 | 2022 | |
(1) Fuel consumption from coal and coal products (MWh) | 0 | 0 | 0 | |
(2) Fuel consumption from crude oil and petroleum products (MWh) | 40,721 | 44,339 | 43,739 | |
(3) Fuel consumption from natural gas (MWh) | 117,585 | 131,595 | 151,495 | |
(4) Fuel consumption from other fossil sources (MWh) | Not applicable | Not applicable | Not applicable | |
(5) Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) | 30,417 | 27,769 | 29,344 | |
(6) Total fossil energy consumption (MWh) (calculated as the sum of lines 1 to 5) | 188,724 | 203,704 | 224,578 | |
Share of fossil sources in total energy consumption (%) | 52% | 51% | 51% | |
(7) Consumption from nuclear sources (MWh) | 10,179 | 18,533 | 22,191 | |
Share of consumption from nuclear sources in total energy consumption (%) | 3% | 5% | 5% | |
(8) Fuel consumption for renewable sources, including biomass (also comprising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh) | 1,865 | 7,920 | 6,924 | |
(9) Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) | 155,894 | 164,563 | 178,482 | |
(10) The consumption of self-generated non-fuel renewable energy (MWh) | 6,384 | 5,177 | 3,906 | |
(11) Total renewable energy consumption (MWh) (calculated as the sum of lines 8 to 10) | 164,143 | 177,660 | 189,312 | |
Share of renewable sources in total energy consumption (%) | 45% | 44% | 43% | |
Total energy consumption (MWh) (calculated as the sum of lines 6, 7 and 11) | 363,046 | 399,897 | 436,081 | |
2024 | 2023 | % Change | ||
Energy intensity based on net revenue1), MWh / EUR million (associated with activities in high climate impact sectors) | 87.6 | 78.6 | 11% | |
Retrospective | Milestone and target years | ||||||
2024 | 2023 | 2019 | % Change | 2025 | 2030 | Annual % target / Base year | |
Scope 1 GHG emissions | |||||||
Gross Scope 1 GHG emissions tCO2e | 37,670 | 36,912 | 37,870 | 2% | Decrease Scope 1 & 2 CO2 emissions by 76% compared to 2019 | Net Zero Scope 1 & 2 | 13% |
Percentage of Scope 1 GHG emissions from regulated emission trading schemes (%) | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable | Not applicable |
Scope 2 GHG emissions | |||||||
Gross location-based Scope 2 GHG emissions (tCO2e) | 75,652 | 76,956 | 78,483 | -2% | Not applicable | Not applicable | Not applicable |
Gross market-based Scope 2 GHG emissions (tCO2e) | 3,308 | 3,229 | 83,338 | 2% | Decrease Scope 1 & 2 CO2 emissions by 76% compared to 2019 | Net Zero Scope 1 & 2 | 13% |
Significant scope 3 GHG emissions | |||||||
Total Gross indirect (Scope 3) GHG emissions (tCO2e) | 4,012,000 | 4,064,000 | 2,551,000 | -1% | Not applicable | Not applicable | Not applicable |
Purchased goods and services | 746,000 | 821,000 | 688,000 | -9% | Not applicable | Not applicable | Not applicable |
Fuel energy-related activities (not included in Scope 1 or Scope 2) | 30,000 | 30,000 | 19,000 | 0% | Not applicable | Not applicable | Not applicable |
Business travel | 27,000 | 27,000 | 29,000 | 0% | Not applicable | Not applicable | Not applicable |
Upstream transportation | 94,000 | 124,000 | 127,000 | -24% | Decrease logistics CO2 emissions by 20% compared to 2019 | Not applicable | 3% |
Downstream transportation | 58,000 | 44,000 | 47,000 | 32% | Decrease logistics CO2 emissions by 20% compared to 2019 | Not applicable | 3% |
Use of sold products | 3,057,000 | 3,018,000 | 1,641,000 | 1% | Not applicable | Not applicable | Not applicable |
Total GHG emissions | |||||||
Total GHG emissions (location- based) (tCO2e) | 4,125,322 | 4,177,868 | 2,667,353 | -1% | Not applicable | Not applicable | Not applicable |
Total GHG emissions (market- based) (tCO2e) | 4,052,978 | 4,104,140 | 2,672,208 | -1% | Not applicable | Not applicable | Not applicable |
GHG intensity per net revenue | 2024 | 2023 | % Change | |
GHG intensity based on net revenue1) tCO2e / EUR million (location- based) | 848 | 775 | 10% | |
GHG intensity based on net revenue1) tCO2e / EUR million (market- based) | 834 | 761 | 10% | |
Impacts | Risks | Opportunities | Key management methods |
WATER USE IN METSO'S OPERATIONS | |||
Several of Metso’s locations are situated in water-scarce areas in India, China, Chile and Mexico, which increases demand for local water resources. Restrictions on water usage may affect production. | - Eight of Metso’s locations are located in water-scarce areas. Metso’s operations are designed to minimize water withdrawal. Each location has water management action plans in place to decrease water consumption. - Process development and the adoption of new technologies reduces water use and increases water recycling in the production process, decreasing the need to withdraw more raw water. | ||
WATER USE AT CUSTOMER SITES | |||
Customers’ access to inputs, e.g. water, can be hindered by chronic climate changes in the environment. | For some customers, this may mean reduced business and therefore decreased sales. | Water scarcity may result in increased demand for water- efficient technologies. | - The Metso Plus offering has around 40 solutions that address water-related challenges and that are considered better than the market benchmark or previous-generation product. Metso aims to keep expanding and improving this offering to be able to offer water-efficient technologies to its customers. - All Metso’s R&D projects must have sustainability targets, and Metso targets 80% of the R&D spend is on Metso Plus portfolio development by 2030. |
Water management is a growing challenge for mines because they are often located in water-scarce areas. In addition, energy transition and battery metals tend to be water-intensive to produce. | As the demand for these metals grows, the demand for water will also increase. The ability to access water can in some cases be at least as important as the quality and grade of the ore body. | ||
Mines located in areas subject to heavy rainfall and flooding are at risk of leakage from tailings ponds. Leakage from tailings ponds may cause environmental issues and damage to the surrounding areas. This may damage Metso’s reputation, if Metso equipment is used in those mines. | - Metso offers water- and energy-efficient products for dry tailings stacking and tailings dewatering by filtration. - Metso water treatment solutions help to keep process and effluent waters free of toxic elements. | ||
Sustainability topic | Target for 2024 | Long-term goal | 2024 | 2023 | Progress |
Water use index | To reduce annual water consumption per employee by 5% in water-scarce locations, compared to 2021 baseline (34.4m3 per employee) | To reduce annual water consumption per employee by 15% in water- scarce locations, compared to 2021 baseline (34.4m3 per employee) | 26.8 | 24.0 | 12% (-22%1)) |
2024 | 2023 | 2022 | ||
Total water consumption, m3 | 322,231 | 372,823 | 381,932 | |
Total water consumption in areas at water risk, including areas of high water stress, m3 | 122,057 | 109,096 | 121,198 | |
Total water recycled and reused in m3 | 49,637 | 41,361 | 41,022 | |
Water intensity based on net revenue1), m3 / EUR million | 66.3 | 69.1 | 76.8 | |
Impacts | Risks | Opportunities | Key management methods |
DIRECT IMPACT DRIVERS OF BIODIVERSITY LOSS (LAND-USE CHANGE, FRESH WATER-USE CHANGE AND SEA- USE CHANGE) IMPACTS ON THE EXTENT AND CONDITION OF ECOSYSTEMS IMPACTS AND DEPENDENCIES ON ECOSYSTEM SERVICES | |||
Metso’s production generates greenhouse gases that cause global warming, and other emissions that may have local biodiversity impacts. In addition, Metso’s operations generate waste. | Climate change-related risks and opportunities are discussed in sections 2.3.1. Material impacts, risks and opportunities and 2.3.7. Anticipated financial effects – risks and opportunities. | - Metso has targets in place for sites to reduce water use and waste to landfill. - Management methods for climate change are discussed in section 2.3.1. Material impacts, risks and opportunities. | |
The operations of Metso’s customers in the aggregates and mining industries typically have significant land footprints, often in environmentally sensitive areas, where land disturbance and pollution can impact habitats and species. If not properly manufactured, used and maintained, Metso’s products have the potential to harm the biodiversity surrounding its customers’ sites. If the impacts are not well managed, Metso’s customers may be limited in their ability to operate in ecologically sensitive areas in future. | - Metso designs and sells products and processes and collaborates with customers to develop new technologies to minimize the release of effluents and atmospheric emissions. - In addition, Metso’s solutions include products and services that may reduce the risk of negative impact on biodiversity in customer operations. | ||
Tailings dam failures can have large impacts on biodiversity. Due to an increase in demand and reductions in ore grades, the footprint of copper and other energy transition materials is likely to increase rapidly. Decreasing ore grades will require larger operational footprints, resulting in larger amounts of tailings. This is partially offset by innovations, such as dry tailings, and the regulation of tailings dam design, resulting in fewer tailings dam failures. The increasing focus on biodiversity is likely to increase the market for more sustainable tailings management products. | - Metso’s solutions include dry processing, which reduces the risk of contamination and the resulting impacts on biodiversity. - Metso offers efficient solid- liquid separation with pressure filtration, which is needed to recover more water and increase the solid content of tailings streams. | ||
Sustainability topic | Target for 2024 | Long-term goal | 2024 | 2023 | Progress |
Biodiversity | No target, evaluation of own operations’ dependencies and impacts on biodiversity | To set up a biodiversity framework in own operations and for products sold to Metso customers | - | - | Not applicable |
Impacts, risks and opportunities | |||
Impacts | Risks | Opportunities | Key management methods |
Fair employment (working conditions): Working time, discrimination and harassment, freedom of association and collective bargaining The following impacts, risks and opportunities are reported for employees | |||
Actions promoting fair employment practices, such as working time, prevention of discrimination and harassment, freedom of association and collective bargaining, have a positive impact on employees’ engagement, wellbeing and ability to work. As a result, good employment conditions also strengthen Metso’s reputation and employer brand, enabling Metso to retain and attract the best talent, which has a positive impact on business performance. Inadequate employment conditions could weaken Metso’s employees’ quality of life, increase inequality, as well as reduce job satisfaction and commitment, resulting in a weakening in Metso’s employer brand and performance and a negative impact on customer relations. Potential discrimination, harassment, and violations of workers' rights could result in legal action against the company. | - Local legislation is followed in all operating countries - Human Rights Policy - Code of Conduct - Diversity & Inclusion Strategy - Environment, Health & Safety Policy - Whistleblower channel available to all employees | ||
Diversity and inclusion | |||
If diversity and inclusion is embedded into the company culture, fostered and promoted, it increases engagement, promotes employee wellbeing, and can have a positive impact on Metso’s performance. If diversity and inclusion is not integrated into the company culture, it could have a negative impact on employee engagement and wellbeing. It can impact hiring decisions, leading to a non-diverse workforce. It may also adversely impact a person’s willingness to join Metso. Consequently, this could weaken Metso’s innovativeness, performance, competitiveness, and employer brand. | - Diversity & Inclusion as a priority area in Metso’s People and Culture agenda - Diversity and Inclusion Strategy - Target and KPI to increase the number of women in middle and senior management roles - Global inclusive talent acquisition practices - Inclusive talent acquisition training provided to all leaders | ||
Training and development | |||
If Metso doesn’t provide training and development opportunities, it can impact employees’ learning, growth and career development negatively. It can also impact Metso’s innovation and growth capabilities, and competitiveness. A lack of learning and development opportunities can lead to dissatisfaction among employees, and people may be more likely to seek job opportunities outside the company. If training and development opportunities are available, employees can learn and grow, take on new responsibilities, and develop their careers inside the company. | - Internal hiring for open positions is promoted - Job rotation is provided and supported - Metso Academy offers Technical, Sales and Business, Distributor, Customer and People training - Learning Council - Growth dialogues between employee and manager | ||
Corporate culture | |||
If corporate culture is a strategic priority, it is managed and developed systematically. Employees are more engaged in a culture where they are supported and encouraged to perform their best. | Dissatisfied employees are more likely to leave the company, resulting in higher turnover rates. Dissatisfied employees often result in lower customer satisfaction, which can negatively affect business outcomes. A negative corporate culture makes it more challenging to attract top talent to the company. | Engaged employees are more likely to perform well and remain with the company. There is a strong correlation between engaged employees and satisfied customers, both correlate to good business results. A good corporate culture attracts top talent. | - Performance culture is a top priority in Metso's strategy. - Engagement surveys are conducted four times a year, their results are discussed, and actions agreed within teams quarterly. - Metso tracks the employee Net Promoter Score (eNPS) and has set the long-term target to be in the top 10% of the industry benchmark. |
Health and safety | |||
Metso operates in an industry where there are high safety risks. Inadequate health and safety conditions could lead to fatalities or serious incidents that can negatively impact employees’ physical and mental health. | Inadequate health and safety conditions can seriously impact job satisfaction, psychological safety and commitment, as well as weaken performance and Metso’s image as a responsible employer. | Good safety management and active promotion of health and safety at the workplace can positively impact employees’ physical and mental health and working conditions. As a result, this can strengthen Metso’s image as a responsible employer and improve Metso’s performance. | - Environment, Health & Safety Policy - Safe working behavior model Modus Operandi - Fatality prevention program - Life-Saving Rules training program - Safety directives - ISO 45001 (health and safety) standard certification in key units - Long- and short-term safety targets - Global safety reporting tool and practices - Audits, inspections and management reviews |
Metso continuously develops the Metso Plus products and new technologies, and modernizes and upgrades older equipment. For R&D, factory workers, engineers and field services, this means upskilling and reskilling. | If Metso does not have skilled workers, development and production may face quality problems and delays. | - Metso Academy – an umbrella learning hub for training and learning in Technical, Sales, Business and People areas, etc. - Strategic capability initiatives to identify critical skills needed for long-term business success - Local university collaboration and own trainee program | |
Sustainability topic | Target for 2024 | Long-term goal | 2024 | 2023 | Progress |
Health and safety | Continuous improvement in lost-time incident frequency rate (LTIF) 1) | Zero harm | 1.4 | 1.2 | Below target |
Continuous improvement in total recordable injury frequency rate (TRIF) 1) | Zero harm | 2.7 | 2.9 | Below target | |
Engagement | Employee Net Promoter Score (eNPS) to be in top 10% of the industry benchmark | Employee Net Promoter Score (eNPS) score in top 10% of the industry benchmark | Top 5% | Top 10% | Above target |
Inclusion | Only long-term target | Inclusion score in top 10% of the industry benchmark | Top 5% | Top 5% | Above target |
Gender split | Only long-term target | Gender ratio in middle and senior management to reach 30% female / 70% male by the end of 2030 | 18/82% | 17/83% | In progress |
Gender | Number of employees (headcount) |
Male | 13,410 |
Female | 3,422 |
Other | 0 |
Not reported | 0 |
Total employees | 16,832 |
Number of employees (headcount) | |||
Country | 2024 | 2023 | 2022 |
Finland | 2,881 | 2,790 | 2,431 |
Chile | 1,909 | 2,353 | 2,818 |
India | 1,778 | 1,659 | 1,420 |
Brazil | 1,664 | 1,696 | 1,630 |
China | 1,113 | 1,058 | 1,013 |
Reporting period 2024 | ||||
FEMALE | MALE | OTHER1) | NOT DISCLOSED | TOTAL |
Number of employees (headcount) | ||||
3,422 | 13,410 | 0 | 0 | 16,832 |
Number of permanent employees (headcount) | ||||
3,058 | 12,238 | 0 | 0 | 15,297 |
Number of temporary employees (headcount) | ||||
364 | 1,172 | 0 | 0 | 1,536 |
Number of non-guaranteed hours employees (headcount) | ||||
0 | 7 | 0 | 0 | 7 |
Number of full-time employees (headcount) | ||||
3,250 | 13,197 | 0 | 0 | 16,447 |
Number of part-time employees (headcount) | ||||
172 | 206 | 0 | 0 | 378 |
Turnover | Number of employees |
Leavers | 3,441 |
Turnover rate | 20% |
2024 | 2023 | 2022 | |
Workers who are not employees | 3,720 | 4,776 | 4,774 |
Collective Bargaining Coverage | Social dialogue | ||
Coverage rate | Employees-EEA1) (For countries with >50 employees representing >10% total employees) | Employees-Non EEA1) (Estimate for regions with >50 employees representing >10% total employees) | Workplace representation (EEA1) only) (For countries with >50 employees representing >10% total employees) |
0–19% | Asia, Middle East, India (1%) North and Central America (13%) | ||
20–39% | South America (39%) | ||
40–59% | Rest of EEA (58%) | ||
60–79% | |||
80–100% | Finland (96%) | Asia Pacific (88%) | Finland |
Category | Indicator | 2024 | 2023 | 2022 | |
Board of Directors | By gender | ||||
Female | Number | 3 | 3 | 3 | |
% of total | 33% | 33% | 33% | ||
Male | Number | 6 | 6 | 6 | |
% of total | 67% | 67% | 67% | ||
By age group | |||||
<30 | Number | 0 | 0 | 0 | |
% of total | 0% | 0% | 0% | ||
30-50 | Number | 1 | 1 | 0 | |
% of total | 11% | 11% | 0% | ||
>50 | Number | 8 | 8 | 9 | |
% of total | 89% | 89% | 100% | ||
Executive team | By gender | ||||
Female | Number | 5 | 4 | 4 | |
% of total | 56% | 44% | 44% | ||
Male | Number | 4 | 5 | 5 | |
% of total | 44% | 56% | 56% | ||
By age group | |||||
<30 | Number | 0 | 0 | 0 | |
% of total | 0% | 0% | 0% | ||
30-50 | Number | 4 | 4 | 5 | |
% of total | 44% | 44% | 56% | ||
>50 | Number | 5 | 5 | 4 | |
% of total | 56% | 56% | 44% | ||
Employees | By gender | ||||
Female | Number | 3,422 | 3,267 | 3,006 | |
% of total | 20% | 19% | 18% | ||
Male | Number | 13,410 | 13,867 | 13,699 | |
% of total | 80% | 81% | 82% | ||
By age group | |||||
<30 | Number | 2,527 | 2,685 | 2,602 | |
% of total | 15% | 16% | 16% | ||
30-50 | Number | 10,930 | 10,738 | 10,531 | |
% of total | 65% | 63% | 63% | ||
>50 | Number | 3,375 | 3,711 | 3,572 | |
% of total | 20% | 22% | 21% | ||
Category | 2024 | 2023 | 2022 | |
By gender | Female | 98% | 97% | 95% |
Male | 96% | 98% | 95% | |
Other | - | - | - | |
By employee category | Professional | 95% | 97% | 94% |
Middle management | 99% | 99% | 97% | |
Senior management | 100% | 98% | 99% | |
Category | 2024 | 2023 | 2022 | |
By gender | Female | 9.77 | 7.15 | 5.07 |
Male | 10.46 | 9.89 | 5.34 | |
Other | - | - | - | |
By employee category | Blue collar | 4.95 | 4.81 | 2.85 |
Professional | 12.73 | 11.55 | 6.84 | |
Middle management | 12.01 | 11.97 | 5.38 | |
Senior management | 7.97 | 9.56 | 4.10 | |
Total average hours | 10.32 | 9.38 | 5.29 | |
Number of employees and external workers | % of employees | |
Covered by an occupational health and safety management system | 20,736 | 100% |
Covered by an occupational health and safety management system that has been internally audited | 20,736 | 100% |
Covered by an occupational health and safety management system that has been audited or certified by an external party | 12,586 | 61% |
Fatalities | 2024 | 2023 | 2022 | |
Number of fatalities | 0 | 0 | 0 |
Recordable injury rate (TRIF) | 2024 | 2023 | 2022 | |
By region | Europe | 1.9 | 2.2 | 2.3 |
North and Central America | 4.8 | 2.1 | 5.4 | |
South America | 1.9 | 1.7 | 1.6 | |
Asia Pacific | 3.4 | 5.5 | 2.1 | |
Africa, Middle East and India | 1.5 | 1.2 | 0.5 | |
Total | 2.4 | 2.3 | 2.3 | |
Number of recordable injuries | 2024 | 2023 | 2022 | |
By region | Europe | 20 | 23 | 24 |
North and Central America | 20 | 9 | 22 | |
South America | 17 | 16 | 13 | |
Asia Pacific | 15 | 22 | 8 | |
Africa, Middle East and India | 7 | 5 | 2 | |
Total | 79 | 75 | 69 | |
Number of days lost | 2024 | 2023 | 2022 | |
By region | Europe | 311 | n/a | n/a |
North and Central America | 1,000 | n/a | n/a | |
South America | 640 | n/a | n/a | |
Asia Pacific | 31 | n/a | n/a | |
Africa, Middle East and India | 46 | n/a | n/a | |
Total | 2,028 | n/a | n/a | |
Lost-time incident frequency (LTIF) | 2024 | 2023 | 2022 | |
By region | Europe | 1.0 | 1.0 | 1.3 |
North and Central America | 3.3 | 1.1 | 1.5 | |
South America | 1.1 | 0.8 | 0.7 | |
Asia Pacific | 0.5 | 1.2 | 0.3 | |
Africa, Middle East and India | 0.9 | 0.5 | 0.3 | |
Total | 1.3 | 0.9 | 0.9 | |
Fatalities | 2024 | 2023 | 2022 | |
Number of fatalities | 0 | 0 | 0 |
Recordable injury rate (TRIF) | 2024 | 2023 | 2022 | |
By region | Europe | 4.1 | 7.6 | 8.6 |
North and Central America | 6.6 | 12.9 | 13.3 | |
South America | 9.0 | 5.8 | 4.1 | |
Asia Pacific | 2.4 | 15.0 | 6.8 | |
Africa, Middle East and India | 2.2 | 3.4 | 1.9 | |
Total | 3.9 | 5.3 | 4.2 | |
Number of recordable injuries | 2024 | 2023 | 2022 | |
By region | Europe | 5 | 12 | 14 |
North and Central America | 1 | 2 | 2 | |
South America | 12 | 9 | 6 | |
Asia Pacific | 1 | 6 | 3 | |
Africa, Middle East and India | 9 | 16 | 8 | |
Total | 28 | 45 | 33 | |
Number of days lost | 2024 | 2023 | 2022 | |
By region | Europe | 30 | n/a | n/a |
North and Central America | 21 | n/a | n/a | |
South America | 119 | n/a | n/a | |
Asia Pacific | 0 | n/a | n/a | |
Africa, Middle East and India | 377 | n/a | n/a | |
Total | 547 | n/a | n/a | |
Lost-time incident frequency (LTIF) | 2024 | 2023 | 2022 | |
By region | Europe | 0.8 | 3.2 | 3.7 |
North and Central America | 6.6 | 0.0 | 0.0 | |
South America | 6.0 | 4.5 | 2.7 | |
Asia Pacific | 0.0 | 5.0 | 0.0 | |
Africa, Middle East and India | 1.0 | 1.0 | 1.4 | |
Total | 1.9 | 2.2 | 2.0 | |
Country | Percentage of employees entitled to take family-related leave | Percentage of employees that took family-related leave |
Finland | 100% | 7% |
Chile | 100% | 3% |
India | 100% | 4% |
Brazil | 100% | 4% |
China | 100% | 1% |
United States | 100% | 6% |
Australia | 96% | 31% |
Peru | 100% | 5% |
Mexico | 100% | 2% |
Sweden | 100% | 16% |
Canada | 100% | 3% |
South Africa | 100% | 3% |
United Kingdom | 100% | 3% |
Germany | 100% | 2% |
Lithuania | 100% | 71% |
France | 100% | 23% |
Indonesia | 100% | 3% |
Kazakhstan | 100% | 3% |
Saudi Arabia | 100% | 5% |
Poland | 100% | 3% |
Türkiye | 100% | 15% |
Norway | 100% | 2% |
Ghana | 100% | 2% |
Czech Republic | 100% | 7% |
Austria | 100% | 3% |
Spain | 100% | 0% |
United Arab Emirates | 100% | 10% |
Blue collar | Professional | Middle management | Senior management | |
Finland | 0.95 | 0.97 | 0.95 | 1.01 |
Brazil | 1.19 | 0.95 | 0.71 | |
China | 0.81 | 1.00 | 0.78 | |
Chile | 0.77 | 0.92 | 0.69 | |
India | 0.92 | 0.92 |
Total remuneration ratio | 35.3 |
Impacts, risks and opportunities | |||
Impacts | Risks | Opportunities | Key management methods |
Health and safety | |||
Considering the nature of the industry, working at customer sites may expose workers to multiple health and safety risks. In many of the countries where Metso has suppliers, the enforcement of health and safety laws is poor, unsafe conditions are common, and the rate of accidents high. Especially among lower tiers of the supply chain, poor implementation of health and safety measures is common, as are unsafe conditions, lack of personal protective and safety equipment, inadequate knowledge, limited training, and poor hygiene. Inadequate health and safety requirements or their implementation may negatively affect the suppliers’ and customer’s employees’ physical and mental health, as well as increase accidents. Metso’s safety requirements and practices can positively impact the health and work environment of suppliers’ employees | - The Supplier Code of Conduct includes requirements for health and safety. Suppliers are expected to provide a safe and healthy working environment and to take all reasonable steps to prevent injuries, safety incidents, and health hazards. - Supplier sustainability audits - The Product Compliance Management process ensures that products designed and supplied by Metso worldwide meet all applicable safety requirements throughout the product life cycle. - Metso’s Quality Policy | ||
Working conditions: Working time, Adequate wages, Secure employment, Work-life balance, Discrimination and harassment, Forced labor, Freedom of association and collective bargaining | |||
A violation of work-related rights in Metso’s supply chain may cause human suffering and inequality. In some instances, Metso may unknowingly support operations that do not align with its values, principles and Supplier Code of Conduct, which may result in weaker working conditions, job satisfaction and commitment to Metso on the part of suppliers’ employees. Metso’s requirements for its suppliers and the control mechanisms in place may have a positive impact on the working conditions of suppliers’ employees. | - Metso’s Supplier Code of Conduct includes requirements for fair employment practices. - Compliance with the Supplier Code of Conduct is ensured, e.g. through supplier sustainability audits and assessments. - The Human Rights Policy sets out Metso’s commitment to human rights. - The supplier onboarding process includes a range of internal controls, e.g. suppliers are required to sign the Supplier Code of Conduct. - Anonymous whistleblower channel | ||
Metso's supply chain extends to many low-income countries. Expansions of sourcing to low-income countries to improve cost-efficiency may increase the risk for wages that are not adequate. Workers in the supply chain might be required to work long shifts to meet production demands, and workers based in remote locations may be more vulnerable to exploitative practices, such as long working hours without sufficient rest, as these are subject to less oversight from inspection and monitoring. Metso purchases components from suppliers in some countries where there is a risk of forced labor. There is also a risk of child labor relating to procuring natural rubber in certain countries in Southeast Asia. | |||
Sustainability topic | Target for 2024 | Long-term goal | 2024 | 2023 | Progress |
Supplier Code of Conduct | 96% of procurement spend with suppliers that have signed the Supplier Code of Conduct | Continuous improvement and alignment with sustainable procurement initiatives | 93% | 94% | Below target |
Responsible supply chain | 182 supplier sustainability audits per year conducted in higher-risk areas | Continuous improvement and alignment with sustainable procurement initiatives | 179 | 172 | Below target |
Corrective action closure rate based on supplier sustainability audits | 70% | To close all corrective actions identified in supplier sustainability audits | 61% | 59% | Below target |
Impacts, risks and opportunities | |||
Impacts | Risks | Opportunities | Key management methods |
Business conduct and corruption and bribery | |||
Insufficient processes and control mechanisms for preventing corruption and bribery could lead to non- compliance with Metso’s Code of Conduct and applicable laws. | Corruption and bribery may have significant financial consequences and weaken Metso’s reputation and brand. | When stakeholders perceive Metso as a responsible and trusted partner, it improves Metso’s reputation, brand and competitiveness. | - Metso’s Code of Conduct, Supplier Code of Conduct, and Anti-Corruption Policy - A range of internal controls - Metso’s internally and externally available whistleblower channel - Mandatory and yearly Code of Conduct training |
Management of relationships with suppliers and payment practices | |||
If Metso is not seen as a responsible partner its relationships with its suppliers may suffer and therefore lead to loss of some of the long- term partnerships. Whereas Metso’s reputation as a sustainable and responsible partner improves cooperation with suppliers and can lead to long-term partnerships with financial benefits. Because of uncertainty in global supply chains, the financial position of suppliers may be at risk and could also lead to challenges with on- time deliveries. If Metso’s suppliers are unable to deliver and the company is unable to find alternative sources in the time required, it may lead to contractual penalties and/or obligations for Metso. | - Supplier Code of Conduct - Supplier sustainability audits - Compliance checks on customers, suppliers, and other business partners are conducted using third-party screening tools and data portals - All sales agents, distributors and other representatives are required to confirm their compliance with the company’s Supplier Code of Conduct requirements | ||
Sustainability topic | Target for 2024 | Long-term goal | 2024 | 2023 | Progress |
Code of Conduct training | All active employees, including blue-collar workers, trained in Code of Conduct. Excludes external workforce | All active employees, (including blue-collar workers) trained in Code of Conduct every year | 99.0% | 99.4% | On target |
Average realized payment terms in days | With purchase order | Without purchase order |
Non-SME | 51 | 38 |
SME | 57 | 34 |
Total | 54 | 37 |
ESRS | Disclosure requirement | Location | Additional information | |||
ESRS 2 General disclosures | ||||||
BP-1 | General basis for preparation of the Sustainability statement | 1.2. Basis for preparation 1.3.2. Business model | ||||
BP-2 | Disclosures in relation to specific circumstances | 1.2. Basis for preparation 1.2.1. Disclosures in relation to specific circumstances | ||||
GOV-1 | The role of the administrative, management and supervisory bodies | 1.4.1. Roles and responsibilities 1.4.2. Sustainability expertise of the Board, its committees and Metso Leadership Team 1.4.3. Sustainability focus areas in 2024 1.4.5. Internal controls over sustainability 1.4.6. Risk management systems and policies 1.4.7. Due diligence at Metso | ||||
GOV-2 | Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies | 1.4.1. Roles and responsibilities 1.5. Stakeholder engagement | ||||
GOV-3 | Integration of sustainability- related performance in incentive schemes | 1.4. 4. Integration of sustainability-related performance in incentive schemes 3.1.4.1. Policies - People and culture | ||||
GOV-4 | Statement on due diligence | 1.4.7. Due diligence at Metso | ||||
GOV-5 | Risk management and internal controls over sustainability reporting | 1.4.5. Internal controls over sustainability 1.4. 6. Risk management systems and policies | ||||
SBM-1 | Strategy, business model and value chain | 1.3.1. Strategy 1.3.2. Business model 1.3.3. Value creation and value chain 1.3.4. Revenue breakdown | ||||
SBM-2 | Interests and views of stakeholders | 1.4.2. Sustainability expertise of the Board, its committees and Metso Leadership Team 1.5. Stakeholder engagement | ||||
SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 1.1. Material sustainability- related impacts, risks and opportunities 1.3. Metso’s strategy, business model and value creation 1.3.1. Strategy 1.3.2. Business model 1.3.3. value creation and value chain | ||||
IRO-1 | Description of the process to identify and assess material impacts, risks and opportunities | 1.1. Material sustainability- related impacts, risks and opportunities 1.2.1. Disclosures in relation to specific circumstances 1.4.5. Internal controls over sustainability 1.4.6. Risk management systems and policies 1.4.7. Due diligence at Metso 2.3.3. Targets and progress on targets 3.2.3. Targets and progress on targets | ||||
IRO-2 | Disclosure Requirements in ESRS covered by the undertaking’s sustainability statement | 5.1. ESRS Content index 5.2. ESRS Appendix B index | ||||
E1 Climate change | ||||||
E1-1 | Transition plan for climate change mitigation | 2.3. Climate change 2.3.3. Targets and progress on targets 2.3.6. Actions 2.3.5. Environmental efficiency in own operations 2.2. EU Taxonomy | ||||
E1-2 | Policies related to climate change mitigation and adaptation | 2.3.4. Policies | ||||
E1-3 | Actions and resources in relation to climate change policies | 2.3.6. Actions 2.3.5. Environmental efficiency in own operations 2.3.9. Metrics | ||||
E1-4 | Targets related to climate change mitigation and adaptation | 2.3.3. Targets and progress on targets 2.3.9. Metrics 2.3.7. Anticipated financial effects – risks and opportunities | E1-4 34e, 16a) Metso's greenhouse gas emission reduction targets are not derived using a sectoral decarbonization pathway. E1-4 34 f; 16b) The overall quantitative contributions of decarbonization levers on the achievement of GHG emission reduction targets have not been assessed. Metso is planning on developing this assessment in 2025. | |||
E1-5 | Energy consumption and mix | 2.3.9. Metrics 2.3.10. Reporting principles | ||||
E1-6 | Gross Scopes 1, 2, 3 and Total GHG emissions | 2.3.9. Metrics 2.3.10. Reporting principles | E1-6 48 b) Metso does not engage in regulated emission trading schemes. | |||
E1-9 | Anticipated financial effects from material physical and transition risks and potential climate-related opportunities | 2.3.7. Anticipated financial effects – risks and opportunities | More information will be reported in the upcoming years. | |||
E1-GOV-3 | Integration of sustainability- related performance in incentive schemes | 2.3.8. Integration of sustainability-related performance in incentive schemes | ||||
E1-SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 2.3.1. Material impacts, risks and opportunities 2.3.7. Anticipated financial effects – risks and opportunities | ||||
E1-IRO-1 | Description of the processes to identify and assess material climate-related impacts, risks and opportunities | 2.3.2. Processes to identify and assess material impacts, risks and opportunities 2.3.7. Anticipated financial effects – risks and opportunities | ||||
E3 Water and marine resources | ||||||
E3-1 | Policies related to water and marine resources | 2.4.4. Policies | Metso has a QEHS Policy that covers water management at a general level. No policy specifically for water management exists. | |||
E3-2 | Actions and resources related to water and marine resources | 2.4.5. Environmental efficiency in own operations - actions 2.4.6. Water-efficient offering to customers - actions | ||||
E3-3 | Targets related to water and marine resources | 2.4.3. Targets and progress on targets 2.4.4. Policies | E3-3 23 a) Target not based on conclusive scientific evidence. E3-3 25) Metso's water- related target is not based on legislation. | |||
E3-4 | Water consumption | 2.4.7. Metrics 2.4.8. Reporting principles | ||||
E3-IRO-1 | Processes to identify and assess material water and marine resources-related impacts, risks and opportunities | 2.4.2. Processes to identify and assess material impacts, risks and opportunities 2.4.1. Material impacts, risks and opportunities | E3-IRO-1 8 b) Metso has not conducted consultations with affected communities on water and marine resources. | |||
E4 Biodiversity and ecosystems | ||||||
E4-1 | Transition plan and consideration of biodiversity and ecosystems in strategy and business model | 2.5. Biodiversity and ecosystems | E4-1 13 a) A study on the resilience of Metso’s business model and strategy in relation to biodiversity and ecosystems is planned for 2025-2026. | |||
E4-2 | Policies related to biodiversity and ecosystems | 2.5.4. Policies | E4-2 23 b, c) The Biodiversity Policy's relation to material biodiversity and ecosystems-related impacts, dependencies and material physical and transition risks and opportunities will be evaluated in 2025/26. E4-2 23 d) Metso does not currently have traceability of products, components and raw materials with significant actual or potential impacts on biodiversity and ecosystems along the value chain. Scoping work is planned for 2025-2026 for suitable supply chain transparency IT solutions. E4-2 23 f) Metso Biodiversity Policy currently does not address social consequences of biodiversity and ecosystems-related impacts. Further investigation on the topic is required as part of the biodiversity framework establishment for Metso. | |||
E4-3 | Actions and resources related to biodiversity and ecosystems | 2.5.5. Environmental efficiency in own operations - actions 2.5.6. Metso Plus offering and innovations to customers - actions | ||||
E4-4 | Targets related to biodiversity and ecosystems | 2.5.3. Targets and progress on targets | Metso is in the evaluation stage for biodiversity targets. Progress is expected in 2025. | |||
E4-5 | Impact metrics related to biodiversity and ecosystems change | 2.5.5. Environmental efficiency in own operations - actions | E4-5 38) Opening new sites and closing sites may have an impact on land-use change. In 2024, Metso closed factory operations in Trelleborg, Sweden, and a foundry that is located near a Natura 2000- classified area in Prerov, Czech Republic. The ecosystem impact of the closings has not been assessed. | |||
E4-SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 2.5.1. Material impacts, risks and opportunities | E4-SBM-3 16 b, c) Metso has not identified material negative impacts related to land degradation, desertification or soil sealing, or impacts of its own operations on threatened species. E4-SBM-3 17 a, b) Identification and assessment of actual and potential impacts and dependencies on biodiversity and ecosystems and their services at own site locations and in the value chain is in progress. | |||
E4-IRO-1 | Description of processes to identify and assess material biodiversity and ecosystem- related impacts, risks and opportunities | 2.5.2. Processes to identify and assess material impacts, risks and opportunities 2.5.5. Environmental efficiency in own operations - actions | E4-IRO-1 17 c, d) A high- level biodiversity assessment was done in 2023 but Metso recognizes the need for further investigation of transitional and physical risks and opportunities related to biodiversity and ecosystems and systemic risks to Metso's own business model and to society. | |||
S1 Own workforce | ||||||
S1-1 | Policies related to own workforce | 3.1.4. Policies | ||||
S1-2 | Processes for engaging with own workers and workers' representatives about impacts | 3.1.5. Processes for engaging with own workers and workers’ representatives | S1-2 27 d) Metso currently has no Global Framework Agreements in place. | |||
S1-3 | Processes to remediate negative impacts and channels for own workers to raise concerns | 3.1.6. Remediating negative impacts and feedback channels for own workers | ||||
S1-4 | Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions | 3.1.7. Metso’s people and culture – actions 3.1.8. Health and safety – actions | ||||
S1-5 | Targets relating to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 3.1.3. Targets and progress on targets | ||||
S1-6 | Characteristics of the undertaking’s employees | 3.1.9 Metrics 3.1.10. Reporting principles | ||||
S1-7 | Characteristics of non- employee workers in the undertaking’s own workforce | 3.1.9. Metrics 3.1.10. Reporting principles | For reporting year 2024, only the number of non- employees is reported. Other information regarding non-employees will be reported for reporting year 2025. | |||
S1-8 | Collective bargaining coverage and social dialogue | 3.1.9. Metrics | Information regarding non-employees will be reported in 2025. | |||
S1-9 | Diversity metrics | 3.1.9. Metrics 3.1.10. Reporting principles | ||||
S1-10 | Adequate wages | 3.1. Own workforce - Metso's people and culture 3.1.9. Metrics 3.1.10. Reporting principles | Metso pays salaries through local payrolls; in each country, it is the responsibility of HR to ensure compliance with all legislation stipulating minimum salary levels. S1-10 71) Information regarding non-employees will be reported in 2025. | |||
S1-13 | Training and skills development metrics | 3.1.9. Metrics 3.1.10. Reporting principles | ||||
S1-14 | Health and safety metrics | 3.1.9. Metrics 3.1.10. Reporting principles | S1-14 88 b) The number of fatalities reported as a result of ill health will be reported in 2025. S1-14 88 c) The number of work-related accidents due to ill health will be reported in 2025. S1-14 88 d) The number of cases of recordable work-related ill health of employees will be reported in 2025. S1-14 88 e) Number of days lost to work-related ill health and fatalities from ill health related to employees will be reported in 2025. | |||
S1-15 | Work-life balance metrics | 3.1.9. Metrics 3.1.10. Reporting principles | ||||
S1-16 | Compensation metrics (pay gap and total compensation) | 3.1.9. Metrics 3.1.10. Reporting principles | ||||
S1-17 | Incidents, complaints and severe human rights impacts | 3.1.9. Metrics | ||||
S1-SBM-2 | Interests and views of stakeholders | 1.5. Stakeholder engagement | ||||
S1-SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 3.1.1. Material impacts, risks and opportunities | ||||
S2 Workers in the value chain | ||||||
S2-1 | Policies related to value chain workers | 3.2.4. Policies | ||||
S2-2 | Processes for engaging with value chain workers about impacts | 3.2.5. Processes for engaging with value chain workers about impacts | S2-2 22 a, c, e) Information currently not available. Plan to obtain information during coming years. S2-2 22 d) Metso currently has no Global Framework Agreements in place. S2-2 23) Perspectives of value chain workers that may be particularly vulnerable to impacts and/or marginalized are currently being evaluated. | |||
S2-3 | Processes to remediate negative impacts and channels for value chain workers to raise concerns | 3.2.6. Remediating negative impacts and feedback channels for value chain workers | S2-3 28) There is currently no process in place to assess whether value chain workers are aware of and trust structures or processes as a way to raise their concerns or needs and have them addressed. For a description of protection for individuals using the whistleblower channel, see section "Business conduct and prevention and detection of corruption and bribery". | |||
S2-4 | Taking action on material impacts, and approaches to mitigating material risks and pursuing material opportunities related to value chain workers, and effectiveness of those actions and approaches | 3.2.6. Remediating negative impacts and feedback channels for value chain workers 3.2.7. Responsible supply chain – metrics and actions | S2-4 34 b) Material opportunities in relation to value chain workers have not been systematically assessed. Work expected to commence in the coming years. S2-4 35) Potential material negative impacts of own practices on value chain workers have not been systematically assessed. Work expected to commence in the coming years. S2-4 38) Metso has not allocated resources to manage material impacts. Topic will be evaluated in 2025. S2-4 AR 43) Metso currently has no measures in place to integrate managing materials risks into existing risk management processes. Topic will be evaluated in the coming years. | |||
S2-5 | Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities | 3.2.3. Targets and progress on targets | S2-5 42) Metso is currently addressing the IT infrastructure required for supply chain data collection. | |||
S2-SBM-2 | Interests and views of stakeholders | 1.5. Stakeholder engagement | ||||
S2-SBM-3 | Material impacts, risks and opportunities and their interaction with strategy and business model | 3.2.1. Material impacts, risks and opportunities | S2-SBM-3 13) Metso is planning an evaluation of for example security firms that survey our premises for human rights topics. | |||
G1 Business conduct | ||||||
G1-1 | Business conduct policies and corporate culture | 4.1.4. Policies 4.1.1. Material impacts, risks and opportunities 4.1.6. Responsible business conduct and prevention and detection of corruption and bribery | G1-1 10 h) Metso has not defined functions at risk with respect to corruption and bribery. | |||
G1-2 | Management of relationships with suppliers | 4.1.8. Management of relationships with suppliers and payment practices 4.1.1. Material impacts, risks and opportunities | ||||
G1-3 | Prevention and detection of corruption and bribery | 4.1.6. Responsible business conduct and prevention and detection of corruption and bribery | G1-3 21 b) Metso Code of Conduct training is compulsory for all Metso employees regardless of function. | |||
G1-4 | Incidents of corruption or bribery | 4.1.7. Incidents of corruption or bribery | ||||
G1-6 | Payment practices | 4.1.8. Management of relationships with suppliers and payment practices | ||||
G1-GOV-1 | Role of the administrative, management and supervisory bodies | 4.1.5. The role of Metso’s administrative, management and supervisory bodies | ||||
G1-IRO-1 | Description of the processes to identify and assess material impacts, risks and opportunities | 4.1.2. Processes to identify and assess material impacts, risks and opportunities | ||||
Metso's entity-specific indicators | ||||||
Metso topic | Disclosure | Location | ||||
Metso Plus portfolio | Metso Plus sales R&D spend on Metso Plus portfolio development Percentage of R&D projects that include a sustainability target | 2.1. Metso Plus offering and innovations to our customers 2.3.3. Targets and progress on targets 2.3.10. Reporting principles | ||||
Disclosure requirement and related datapoint | SFDR reference | Pillar 3 reference | Benchmark regulation reference | EU Climate Law reference | Location |
ESRS 2 GOV-1 Board's gender diversity paragraph 21 (d) | Indicator number 13 of Table #1 of Annex 1 | Commission Delegated Regulation (EU) 2020/1816, Annex II | 1.4. Sustainability governance, Management diversity |
ESRS 2 GOV-1 Percentage of board members who are independent paragraph 21 (e) | Delegated Regulation (EU) 2020/1816, Annex II | 1.4. Sustainability governance, Management diversity | |||
ESRS 2 GOV-4 Statement on due diligence paragraph 30 | Indicator number 10 Table #3 of Annex 1 | 1.4.7. Due diligence at Metso | |||
ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities paragraph 40 (d) i | Indicator number 4 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 (6) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk | Delegated Regulation (EU) 2020/1816, Annex II | Not material | |
ESRS 2 SBM-1 Involvement in activities related to chemical production paragraph 40 (d) ii | Indicator number 9 Table #2 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II | 1.3.4. Sector revenue | ||
ESRS 2 SBM-1 Involvement in activities related to controversial weapons paragraph 40 (d) iii | Indicator number 14 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/181829, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | Not material | ||
ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv | Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II | Not material | |||
ESRS E1-1 Transition plan to reach climate neutrality by 2050 paragraph 14 | Regulation (EU) 2021/1119, Article 2(1) | 2.3. Climate change 2.3.6. Actions 2.3.5. Environmental efficiency in own operations | |||
ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation(EU) 2020/1818,Article1 2.1 (d) to (g),and Article 12.2 | 1.3.4. Revenue breakdown |
ESRS E1-4 GHG emission reduction targets paragraph 34 | Indicator number 4 Table #2 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 6 | 2.3.3. Targets and progress on targets 2.3.9. Metrics, Gross Scopes 1, 2, 3 and Total GHG emissions | |
ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 | Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1 | 2.3.9. Metrics, Energy consumption and mix | |||
ESRS E1-5 Energy consumption and mix paragraph 37 | Indicator number 5 Table #1 of Annex 1 | 2.3.9. Metrics, Energy consumption and mix | |||
ESRS E1-5 Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 | Indicator number 6 Table #1 of Annex 1 | 2.3.9. Metrics, Energy intensity based on net revenue | |||
ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions paragraph 44 | Indicators number 1 and 2 Table #1 of Annex 1 | Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity | Delegated Regulation (EU) 2020/1818, Article 5(1), 6 and 8(1) | 2.3.9. Metrics, Gross Scopes 1, 2, 3 and Total GHG emissions | |
ESRS E1-6 Gross GHG emissions intensity paragraphs 53 to 55 | Indicator number 3 Table #1 of Annex 1 | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics | Delegated Regulation (EU) 2020/1818, Article 8(1) | 2.3.9. Metrics, GHG intensity based on net revenue emissions | |
ESRS E1-7 GHG removals and carbon credits paragraph 56 | Regulation (EU) 2021/1119, Article 2(1) | Not material | |||
ESRS E1-9 Exposure of the benchmark portfolio to climate- related physical risks paragraph 66 | Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II | ESRS E1-9 will be reported in the coming years according to requirements. |
ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c). | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book - Climate change physical risk: Exposures subject to physical risk. | ESRS E1-9 will be reported in the coming years according to requirements. | |||
ESRS E1-9 Breakdown of the carrying value of its real-estate assets by energy- efficiency classes paragraph 67 (c). | Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraph 34; Template 2:Banking book - Climate change transition risk: Loans collateralized by immovable property - Energy efficiency of the collateral | ESRS E1-9 will be reported in the coming years according to requirements. | |||
ESRS E1-9 Degree of exposure of the portfolio to climate- related opportunities paragraph 69 | Delegated Regulation (EU) 2020/1818, Annex II | ESRS E1-9 will be reported in the coming years according to requirements. | |||
ESRS E2-4 Amount of each pollutant listed in Annex II of the E PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 | Indicator number 8 Table #1 of Annex 1, Indicator numbers 1, 2 and 3 Table #2 of Annex 1 | Not material | |||
ESRS E3-1 Water and marine resources paragraph 9 | Indicator number 7 Table #2 of Annex 1 | 2.4.4. Policies | |||
ESRS E3-1 Dedicated policy paragraph 13 | Indicator number 8 Table #2 of Annex 1 | 2.4.1. Material impacts, risks and opportunities 2.4.4. Policies | |||
ESRS E3-1 Sustainable oceans and seas paragraph 14 | Indicator number 12 Table #2 of Annex 1 | Not material | |||
ESRS E3-4 Total water recycled and reused paragraph 28 (c) | Indicator number 6.2 Table #2 of Annex 1 | E3 Water and marine resources, Water consumption | |||
ESRS E3-4 Total water consumption in m3 per net revenue of own operations paragraph 29 | Indicator number 6.1 Table #2 of Annex 1 | 2.4.7. Metrics, Water consumption |
ESRS 2- SBM 3 - E4 paragraph 16 (a) i | Indicator number 7 Table #1 of Annex 1 | 2.5.5. Environmental efficiency in own operations - actions | |||
ESRS 2- SBM 3 - E4 paragraph 16 (b) | Indicator number 10 Table #2 of Annex 1 | 2.5.2. Processes to identify and assess material impacts, risks and opportunities | |||
ESRS 2- SBM 3 - E4 paragraph 16 (c) | Indicator number 14 Table #2 of Annex 1 | 2.5.2. Processes to identify and assess material impacts, risks and opportunities | |||
ESRS E4-2 Sustainable land/ agriculture practices or policies paragraph 24 (b) | Indicator number 11 Table #2 of Annex 1 | Not material | |||
ESRS E4-2 Sustainable oceans/seas practices or policies paragraph 24 (c) | Indicator number 12 Table #2 of Annex 1 | Not material | |||
ESRS E4-2 Policies to address deforestation paragraph 24 (d) | Indicator number 15 Table #2 of Annex 1 | Not material | |||
ESRS E5-5 Non- recycled waste paragraph 37 (d) | Indicator number 13 Table #2 of Annex 1 | Not material | |||
ESRS E5-5 Hazardous waste and radioactive waste paragraph 39 | Indicator number 9 Table #1 of Annex 1 | Not material | |||
ESRS 2- SBM3 - S1 Risk of incidents of forced labor paragraph 14 (f) | Indicator number 13 Table #3 of Annex I | Not material | |||
ESRS 2- SBM3 - S1 Risk of incidents of child labor paragraph 14 (g) | Indicator number 12 Table #3 of Annex I | Not material | |||
ESRS S1-1 Human rights policy commitments paragraph 20 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I | 1.4.7. Due diligence at Metso 2.2.4. Minimum social safeguards 3.1. Own workforce - Metso's people and culture | |||
ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 21 | Delegated Regulation (EU) 2020/1816, Annex II | 3.1.4. Policies |
ESRS S1-1 processes and measures for preventing trafficking in human beings paragraph 22 | Indicator number 11 Table #3 of Annex I | 3.1.4. Policies 3.2.4. Policies | |||
ESRS S1-1 workplace accident prevention policy or management system paragraph 23 | Indicator number 1 Table #3 of Annex I | 3.1.4.2. Policies, Health and safety | |||
ESRS S1-3 grievance/ complaints handling mechanisms paragraph 32 (c) | Indicator number 5 Table #3 of Annex I | 3.1.6. Remediating negative impacts and feedback channels for own workers | |||
ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) | Indicator number 2 Table #3 of Annex I | Delegated Regulation (EU) 2020/1816, Annex II | 3.1.9. Metrics 3.1.10. Reporting principles | ||
ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) | Indicator number 3 Table #3 of Annex I | 3.1.9. Metrics 3.1.10. Reporting principles | |||
ESRS S1-16 Unadjusted gender pay gap paragraph 97 (a) | Indicator number 12 Table #1 of Annex I | Delegated Regulation (EU) 2020/1816, Annex II | 3.1.9. Metrics, Remuneration metrics (pay gap and total remuneration) | ||
ESRS S1-16 Excessive CEO pay ratio paragraph 97 (b) | Indicator number 8 Table #3 of Annex I | 3.1.9. Metrics, Remuneration metrics (pay gap and total remuneration) | |||
ESRS S1-17 Incidents of discrimination paragraph 103 (a) | Indicator number 7 Table #3 of Annex I | 3.1.9. Metrics, Incidents, complaints and severe human rights impacts | |||
ESRS S1-17 Non- respect of UNGPs on Business and Human Rights and OECD Guidelines paragraph 104 (a) | Indicator number 10 Table #1 and Indicator n. 14 Table #3 of Annex I | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art 12 (1) | 3.1.9. Metrics, Incidents, complaints and severe human rights impacts | ||
ESRS 2- SBM3 – S2 Significant risk of child labor or forced labor in the value chain paragraph 11 (b) | Indicators number 12 and 13 Table #3 of Annex I | 3.2.1. Material impacts, risks and opportunities | |||
ESRS S2-1 Human rights policy commitments paragraph 17 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 | 3.2.4. Policies | |||
ESRS S2-1 Policies related to value chain workers paragraph 18 | Indicator numbers 11 and 4 Table #3 of Annex 1 | 3.2.4. Policies |
ESRS S2-1 Non- respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 19 | Indicator number 10 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | 3.2.4. Policies | ||
ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19 | Delegated Regulation (EU) 2020/1816, Annex II | 3.2.4. Policies | |||
ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 | Indicator number 14 Table #3 of Annex 1 | 3.2.6. Remediating negative impacts and feedback channels for value chain workers | |||
ESRS S3-1 Human rights policy commitments paragraph 16 | Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 | Not material | |||
ESRS S3-1 non- respect of UNGPs on Business and Human Rights, ILO principles or OECD guidelines paragraph 17 | Indicator number 10 Table #1 Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | Not material | ||
ESRS S3-4 Human rights issues and incidents paragraph 36 | Indicator number 14 Table #3 of Annex 1 | Not material | |||
ESRS S4-1 Policies related to consumers and end-users paragraph 16 | Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 | Not material | |||
ESRS S4-1 Non- respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 | Indicator number 10 Table #1 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art 12 (1) | Not material | ||
ESRS S4-4 Human rights issues and incidents paragraph 35 | Indicator number 14 Table #3 of Annex 1 | Not material | |||
ESRS G1-1 United Nations Convention against Corruption paragraph 10 (b) | Indicator number 15 Table #3 of Annex 1 | 4.1.6. Responsible business conduct and prevention and detection of corruption and bribery | |||
ESRS G1-1 Protection of whistleblowers paragraph 10 (d) | Indicator number 6 Table #3 of Annex 1 | 4.1.6. Responsible business conduct and prevention and detection of corruption and bribery |
ESRS G1-4 Fines for violation of anti- corruption and anti- bribery laws paragraph 24 (a) | Indicator number 17 Table #3 of Annex 1 | Delegated Regulation (EU) 2020/1816, Annex II) | 4.1.7. Incidents of corruption or bribery | ||
ESRS G1-4 Standards of anti- corruption and anti- bribery paragraph 24 (b) | Indicator number 16 Table #3 of Annex 1 | 4.1.7. Incidents of corruption or bribery |
Listed on | Nasdaq Helsinki |
Trading code | METSO |
ISIN code | FI0009014575 |
Industry | Industrials |
Number of shares on December 31, 2024 | 828,972,440 |
Share capital on December 31, 2024 | EUR 107,186,442.52 |
Market value on December 31, 2024 | EUR 7,444.2 million |
Listing date | October 10, 2006 |
2024 | 2023 | |
Share capital, at the end of year, EUR million | 107 | 107 |
Number of shares, at the end of year, pcs | ||
Number of outstanding shares, pcs | 827,351,330 | 826,328,191 |
Own shares held by the Parent Company, pcs | 1,621,110 | 2,644,249 |
Total number of shares, pcs | 828,972,440 | 828,972,440 |
Average number of outstanding shares, pcs | 827,100,625 | 826,216,292 |
Average number of diluted shares, pcs | 827,984,984 | 827,145,340 |
Earnings/share, basic, EUR | 0.40 | 0.66 |
Earnings/share, diluted, EUR | 0.40 | 0.66 |
Net operative cash flow/share, EUR | 0.40 | 0.37 |
Dividend/share 1), EUR | 0.38 | 0.36 |
Dividend 1), EUR million | 314 | 297 |
Dividend/earnings 1), % | 96 | 55 |
Effective dividend yield 1), % | 4.2 | 3.9 |
P/E ratio | 22.5 | 13.9 |
Equity/share, EUR | 3.14 | 3.16 |
2024 | 2023 | |
Closing price, December 31, EUR | 8.98 | 9.17 |
Market capitalization, December 31, EUR million | 7,444.2 | 7,601.7 |
Trading volume, NASDAQ OMX Helsinki Ltd, shares | 333,947,455 | 396,469,728 |
% of shares 1) | 40.30% | 47.83% |
Trading volume, NASDAQ OMX Helsinki Ltd, EUR million | 3,225.1 | 3,975.6 |
Average daily trading volume, pieces | 1,330,468 | 1,579,560 |
Relative turnover, % | 0.2% | 0.2% |
Share performance, % | -2.1% | -4.6% |
Highest share price, EUR | 11.95 | 11.61 |
Lowest share price, EUR | 7.93 | 7.89 |
Weighted average share price, EUR | 9.66 | 10.03 |
Owner | Shares and votes | % of total shares and voting rights | |
1 | Solidium Oy | 123,477,168 | 14.90 |
2 | Varma Mutual Pension Insurance Company | 33,097,359 | 3.99 |
3 | Ilmarinen Mutual Pension Insurance Company | 26,617,665 | 3.21 |
4 | Elo Mutual Pension Insurance Company | 12,919,000 | 1.56 |
5 | Nordea Funds | 9,883,252 | 1.19 |
Nordea Pro Finland Fund | 2,212,331 | 0.27 | |
Nordea Finnish Stars Fund | 1,431,245 | 0.17 | |
Nordea Bank ABP | 1,236,273 | 0.15 | |
Nordea Finnish Passive Fund | 972,832 | 0.12 | |
Nordea Premium Asset Management Balanced Fund | 700,339 | 0.08 | |
Nordea Life Assurance Finland Ltd. | 648,371 | 0.08 | |
Nordea Premium Asset Management Moderate Fund | 611,398 | 0.07 | |
Nordea Nordic Fund | 507,000 | 0.06 | |
Nordea Savings 50 Fund | 475,679 | 0.06 | |
Nordea Savings 75 Fund | 338,214 | 0.04 | |
Nordea Premiun Asset Management Growth Fund | 332,951 | 0.04 | |
Nordea Säästö 30 Fund | 305,721 | 0.04 | |
Nordea Säästö 15 Fund | 29,501 | 0.00 | |
Nordea Global Passive Fund | 27,908 | 0.00 | |
Nordea World Passive Fund | 21,330 | 0.00 | |
Nordea Premiun Asset Management Conservative Fund | 20,715 | 0.00 | |
Nordea European Passive Fund | 11,444 | 0.00 | |
6 | OP-Finland Funds | 9,612,077 | 1.16 |
OP-Finland Fund | 4,974,426 | 0.60 | |
OP Life Assurance Ltd. | 2,376,336 | 0.29 | |
OP-Finland Index Fund | 1,632,768 | 0.20 | |
OP Nordic Countries Index Fund | 456,770 | 0.06 | |
OP-Europe Index Fund | 87,780 | 0.01 | |
OP-POHJOLA-Group Personnel Fund | 65,037 | 0.01 | |
OP World Index Fund | 18,960 | 0.00 | |
7 | The State Pension Fund | 7,900,000 | 0.95 |
8 | Aktia Funds | 3,513,955 | 0.42 |
Aktia Capital | 2,301,682 | 0.28 | |
Aktia Nordic Small Cap | 300,000 | 0.04 | |
Aktia Secura | 300,000 | 0.04 | |
Aktia Nordic | 275,000 | 0.03 | |
Aktia Europe Fund | 270,000 | 0.03 | |
Aktia Solida Fund | 50,000 | 0.01 | |
Aktia Livförsäkring AB | 17,273 | 0.00 | |
9 | Danske Invest Finnish Equity Fund | 2,596,807 | 0.31 |
10 | Sigrid Jusélius Foundation | 2,566,598 | 0.31 |
11 | Säästöpankki Kotimaa Fund | 2,528,248 | 0.30 |
12 | Veritas Pension Insurance Company Ltd. | 2,143,937 | 0.26 |
13 | Samfundet folkhälsan i Svenska Finland rf | 2,143,764 | 0.26 |
14 | Oy Etra Invest Ab | 2,000,000 | 0.24 |
Owner | Shares and votes | % of total shares and voting rights | |
15 | OMX Helsinki 25 Exchange Traded Fund | 1,987,198 | 0.24 |
16 | S-Bank Fenno Equity Fund | 1,963,252 | 0.24 |
17 | Mandatum Life Insurance Company Limited | 1,904,745 | 0.23 |
18 | The Finnish Cultural Foundation | 1,739,102 | 0.21 |
19 | The Social Insurance Institution of Finland, KELA | 1,704,158 | 0.21 |
20 | Evli Finland Select Fund | 1,660,000 | 0.20 |
20 largest owner groups in total | 251,958,285 | 30.39 | |
Nominee-registered holders | 412,869,115 | 49.80 | |
Other shareholders | 164,110,812 | 19.80 | |
In the joint book-entry account | 34,228 | 0.00 | |
Total | 828,972,440 | 100.00 |
Number of shares | Shareholders | % of shareholders | Total number of shares and votes | % of total shares and voting rights |
1–100 | 23,643 | 26.46 | 1,073,997 | 0.13 |
101–1,000 | 43,322 | 48.51 | 18,267,871 | 2.20 |
1,001–10,000 | 20,304 | 22.74 | 57,612,305 | 6.95 |
10,001–100,000 | 1,864 | 2.09 | 45,326,829 | 5.47 |
100,001–1,000,000 | 141 | 0.16 | 42,084,536 | 5.08 |
1,000,001 and above | 24 | 0.04 | 251,703,559 | 30.36 |
Total | 89,309 | 100.00 | 416,069,097 | 50.19 |
Nominee-registered shares | 11 | 0.00 | 412,869,115 | 49.80 |
In the joint book-entry account | 0 | 0.00 | 34,228 | 0.00 |
Number of shares issued | 828,972,440 | 100.00 |
Share, % | 2024 | 2023 |
Nominee-registered and non-Finnish holders | 52% | 58% |
Solidium Oy | 15% | 15% |
Private investors | 21% | 13% |
Finnish institutions, companies, and foundations | 12% | 14% |
Total | 100% | 100% |
EUR million | 2024 | 2023 | 2022 | 2021 | 2020 |
Sales | 4,863 | 5,390 | 4,970 | 4,236 | 3,319 |
Operating profit (EBIT) | 727 | 805 | 490 | 425 | 239 |
% of sales | 15.0% | 14.9% | 9.9% | 10.0% | 7.2% |
Profit before taxes | 648 | 724 | 426 | 386 | 201 |
% of sales | 13.3% | 13.4% | 8.6% | 9.1% | 6.1% |
Profit for the period for continuing operations | 486 | 537 | 318 | 294 | 149 |
% of sales | 10.0% | 10.0% | 6.4% | 6.9% | 4.5% |
Profit for the period for discontinued operations | -156 | 8 | -18 | 48 | -11 |
Profit for the period | 330 | 546 | 301 | 342 | 138 |
% of sales | 6.8% | 10.1% | 6.0% | 8.1% | 4.2% |
Profit attributable to shareholders of the company | 329 | 543 | 301 | 342 | 138 |
Amortization of intangible assets | 66 | 65 | 63 | 72 | 85 |
Depreciation of tangible assets | 56 | 53 | 51 | 51 | 41 |
Depreciation of right-of-use assets | 38 | 35 | 35 | 38 | 30 |
Depreciation and amortization, total | 160 | 153 | 149 | 161 | 157 |
% of sales | 3.3% | 2.8% | 3.0% | 3.8% | 4.7% |
EBITA | 793 | 869 | 553 | 498 | 324 |
% of sales | 16.3% | 16.1% | 11.1% | 11.7% | 9.8% |
EBITDA | 887 | 957 | 643 | 587 | 396 |
% of sales | 18.3% | 17.8% | 12.9% | 13.8% | 11.9% |
Finance income and expenses, net | 80 | 80 | 63 | 39 | 38 |
% of sales | 1.6% | 1.5% | 1.3% | 0.9% | 1.2% |
Interest expenses | 84 | 78 | 44 | 23 | 30 |
% of sales | 1.7% | 1.4% | 0.9% | 0.6% | 0.9% |
Interest cover | 11.1x | 11.9x | 10.1x | 14.9x | 10.4x |
Gross capital expenditure | 198 | 169 | 113 | 91 | 86 |
% of sales | 4.1% | 3.1% | 2.3% | 2.1% | 2.6% |
Net capital expenditure | 181 | 165 | 104 | 69 | 83 |
% of sales | 3.7% | 3.1% | 2.1% | 1.6% | 2.5% |
Net cash flow from operating activities before financial items and taxes | 576 | 550 | 322 | 608 | 587 |
Cash conversion, % | 65% | 57% | 50% | 104% | 148% |
Research and development | 103 | 66 | 55 | 66 | 56 |
% of sales | 2.1% | 1.2% | 1.1% | 1.6% | 1.7% |
EUR million | 2024 | 2023 | 2022 | 2021 | 2020 |
Balance sheet total | 7,015 | 7,156 | 6,754 | 5,830 | 5,567 |
Equity attributable to shareholders | 2,601 | 2,608 | 2,342 | 2,250 | 2,037 |
Total equity | 2,611 | 2,618 | 2,350 | 2,251 | 2,040 |
Interest-bearing liabilities | 1,606 | 1,528 | 1,293 | 952 | 1,345 |
Net working capital (NWC) | 1,045 | 990 | 596 | 254 | 413 |
% of sales | 21.5% | 18.4% | 12.0% | 6.0% | 12.5% |
Capital employed | 4,156 | 4,078 | 3,643 | 3,173 | 3,437 |
Return on equity (ROE), % | 12.7% | 21.8% | 13.1% | 16.0% | 8.3% |
Return on capital employed (ROCE) before taxes, % | 13.0% | 22.3% | 13.8% | 14.1% | 8.6% |
Return on capital employed (ROCE) after taxes, % | 10.8% | 17.0% | 10.5% | 11.7% | 6.5% |
Net debt | 1,173 | 884 | 684 | 470 | 799 |
Gearing, % | 44.9% | 33.8% | 29.1% | 20.9% | 39.2% |
Equity to asset ratio, % | 41.5% | 40.2% | 39.2% | 43.2% | 39.5% |
Debt to capital, % | 35.9% | 35.0% | 33.3% | 26.7% | 37.2% |
Debt to equity, % | 56.1% | 53.9% | 50.0% | 36.4% | 59.1% |
Orders received | 5,140 | 5,252 | 5,623 | 5,605 | 4,340 |
Order backlog, December 31 | 3,046 | 3,238 | 3,902 | 3,990 | 2,233 |
Personnel at end of year | 16,832 | 17,134 | 16,705 | 15,630 | 15,466 |
Earnings before finance expenses, net, taxes and amortization, adjusted (adjusted EBITA) | = | Operating profit + adjustment items + amortization | |
Earnings per share, basic | = | Profit attributable to shareholders | |
Average number of outstanding shares during the year | |||
Earnings per share, diluted | = | Profit attributable to shareholders | |
Average number of diluted shares during the year | |||
Interest cover | = | EBITDA | |
Finance income and expenses, net | |||
Cash conversion, % | = | Net cash flow from operating activities before financial items and taxes | x 100 |
EBITDA | |||
Return on equity (ROE), % | = | Profit for the year | x 100 |
Total equity (average for the period) | |||
Return on capital employed (ROCE) before taxes, % | = | Profit before tax + finance expenses | x 100 |
Capital employed (average for the period) | |||
Return on capital employed (ROCE) after taxes, % | = | Profit for the period + finance expenses | x 100 |
Capital employed (average for the period) | |||
Gearing, % | = | Net interest-bearing liabilities | x 100 |
Total equity | |||
Equity to assets ratio, % | = | Total equity | x 100 |
Balance sheet total - advances received | |||
Debt to capital, % | = | Interest-bearing liabilities – lease liabilities | x 100 |
Total equity + interest-bearing liabilities – lease liabilities | |||
Debt to equity, % | = | Interest-bearing liabilities – lease liabilities | x 100 |
Total equity | |||
Interest-bearing liabilities | = | Interest-bearing liabilities, non-current and current + lease liabilities, non-current and current | |
Net interest-bearing liabilities | = | Interest-bearing liabilities - Non-current financial assets - loan and other interest- bearing receivables (current and non-current) - liquid funds | |
Gross capital expenditure | = | Investments in intangible assets and property, plant, and equipment, associated companies, and joint ventures | |
Net capital expenditure | = | Gross capital expenditure less divestment of intangible assets and property, plant, and equipment, associated companies, and joint ventures | |
Net working capital (NWC) | = | Inventories + trade receivables + other non-interest-bearing receivables + customer contract assets and liabilities, net - trade payables - advances received - other non-interest-bearing liabilities | |
Capital employed | = | Net working capital + intangible assets and tangible assets + right-of-use assets + non-current investments + interest-bearing receivables + liquid funds + tax receivables, net + interest payables, net | |
Net cash flow from operating activities | = | Net income + depreciation and amortization and other non-cash items - change in net working capital - interests and other financial items paid (net) - taxes paid | |
Net cash flow from operating activities / share, EUR | = | Net cash flow from operating activities | |
Outstanding shares at end of period | |||
Effective dividend yield, % | = | Dividend per share | x 100 |
Trading price at the end of the year | |||
Price / earnings ratio (P/E) | = | Trading price at the end of the year | |
Earnings per share | |||
Equity / share | = | Equity attributable to shareholders | |
Number of outstanding shares at the end of the period | |||
Invested non-restricted equity fund | EUR | 435,804,850.76 |
Own shares | EUR | -13,380,644.79 |
Retained earnings | EUR | 432,674,350.92 |
Net profit for the year | EUR | 230,788,011.43 |
Distributable equity, total | EUR | 1,085,886,568.32 |
Dividend payment | EUR | 314,393,505.40 |
Distributable equity after dividend payment | EUR | 771,493,062.92 |
EUR million | Note | 2024 | 2023 |
Sales | 1.1, 1.2 | ||
Cost of sales | 1.5, 3.4 | - | - |
Gross profit | |||
Selling and marketing expenses | 1.3, 1.5, 3.4 | - | - |
Administrative expenses | 1.3, 1.5, 3.4 | - | - |
Research and development expenses | 1.3, 1.5, 3.4 | - | - |
Other operating income | 1.4 | ||
Other operating expenses | 1.4 | - | - |
Share of results of associated companies | 5.3 | ||
Operating profit | |||
Finance income | 1.7 | ||
Foreign exchange gains/losses | 1.7 | ||
Finance expenses | 1.7 | - | - |
Finance income and expenses, net | - | - | |
Profit before taxes | |||
Income taxes | 1.8 | - | - |
Profit for the year for continuing operations | |||
Profit from discontinued operations | 5.5 | - | |
Profit for the year | |||
Profit attributable to | |||
Shareholders of the Parent company | |||
Non-controlling interests | |||
Profit from continuing operations attributable to | |||
Shareholders of the Parent company | |||
Non-controlling interests | |||
Profit from discontinued operations attributable to | |||
Shareholders of the Parent company | - | ||
Non-controlling interests | |||
Earnings per share, EUR 1) | 1.9 | ||
Earnings per share, continuing operations, EUR 1) | 1.9 | ||
Earnings per share, discontinued operations, EUR 1) | - |
EUR million | Note | 2024 | 2023 |
Profit for the year | |||
Other comprehensive income | |||
Cash flow hedges, net of tax | 1.8, 4.4, 4.8 | - | |
Currency translation on subsidiary net investment | 1.8, 4.4 | - | - |
Items that may be reclassified to profit or loss in subsequent periods | - | - | |
Defined benefit plan actuarial gains and losses, net of tax | 1.8, 2.7 | - | |
Items that will not be reclassified to profit or loss | - | ||
Other comprehensive income total | - | - | |
Total comprehensive income | |||
Total comprehensive income attributable to | |||
Shareholders of the Parent company | |||
Non-controlling interests | |||
Total comprehensive income from continuing operations attributable to | |||
Shareholders of the Parent company | |||
Non-controlling interests | |||
Total comprehensive income from discontinued operations attributable to | |||
Shareholders of the Parent company | - | ||
Non-controlling interests |
EUR million | Note | 2024 | 2023 |
Non-current assets | |||
Goodwill and intangible assets | 3.1, 3.4 | ||
Goodwill | |||
Intangible assets | |||
Total goodwill and intangible assets | |||
Property, plant and equipment | 3.2, 3.4 | ||
Land and water areas | |||
Buildings | |||
Machinery and equipment | |||
Assets under construction | |||
Total property, plant and equipment | |||
Right-of-use assets | 3.3, 3.4 | ||
Other non-current assets | |||
Investments in associated companies | 5.3 | ||
Non-current financial assets | 4.2 | ||
Loan receivables | 4.2 | ||
Derivative financial instruments | 4.8 | ||
Deferred tax assets | 1.8 | ||
Other non-current receivables | 2.3, 4.2 | ||
Total other non-current assets | |||
Total non-current assets | |||
Current assets | |||
Inventories | 2.4 | ||
Trade receivables | 2.2 | ||
Customer contract assets | 1.2 | ||
Loan receivables | 4.2 | ||
Derivative financial instruments | 4.8 | ||
Income tax receivables | 1.8 | ||
Other current receivables | 2.3 | ||
Liquid funds | 4.3 | ||
Total current assets | |||
Assets held for sale | 5.5 | ||
TOTAL ASSETS |
EUR million | Note | 2024 | 2023 |
Equity | 4.4 | ||
Share capital | |||
Share premium fund | |||
Cumulative translation adjustments | - | - | |
Fair value and other reserves | |||
Retained earnings | |||
Equity attributable to shareholders | |||
Non-controlling interests | |||
Total equity | |||
Liabilities | |||
Non-current liabilities | |||
Borrowings | 4.2, 4.5 | ||
Lease liabilities | 4.2, 4.5 | ||
Post-employment benefit obligations | 2.7 | ||
Provisions | 2.6 | ||
Derivative financial instruments | 4.8 | ||
Deferred tax liabilities | 1.8 | ||
Other non-current liabilities | 2.5 | ||
Total non-current liabilities | |||
Current liabilities | |||
Borrowings | 4.2, 4.5 | ||
Lease liabilities | 4.2 | ||
Trade payables | 2.5 | ||
Provisions | 2.6 | ||
Advances received | 1.2 | ||
Customer contract liabilities | 1.2 | ||
Derivative financial instruments | 4.8 | ||
Income tax liabilities | 1.8 | ||
Other current liabilities | 2.5 | ||
Total current liabilities | |||
Total non-current and current liabilities | |||
Liabilities held for sale | 5.5 | ||
TOTAL EQUITY AND LIABILITIES |
EUR million | Share capital | Share premium fund | Cumulative translation adjustments | Fair value and other reserves | Retained earnings | Equity attributable to share- holders | Non- controlling interests | Total equity |
Jan 1, 2024 | - | |||||||
Profit for the year | ||||||||
Other comprehensive income | ||||||||
Cash flow hedges, net of tax | ||||||||
Currency translation on subsidiary net investments | - | - | - | |||||
Defined benefit plan actuarial gains (+) / losses (-), net of tax | ||||||||
Total comprehensive income | - | |||||||
Dividends | - | - | - | |||||
Share-based payments, net of tax | - | - | - | |||||
Other items | ||||||||
Changes in non- controlling interests | - | |||||||
Dec 31, 2024 | - | |||||||
EUR million | Share capital | Share premium fund | Cumulative translation adjustments | Fair value and other reserves | Retained earnings | Equity attributable to share- holders | Non- controlling interests | Total equity |
Jan 1, 2023 | - | |||||||
Profit for the year | ||||||||
Other comprehensive income | ||||||||
Cash flow hedges, net of tax | - | - | - | |||||
Currency translation on subsidiary net investments | - | - | - | |||||
Defined benefit plan actuarial gains (+) / losses (-), net of tax | - | - | - | |||||
Total comprehensive income | - | - | ||||||
Dividends | - | - | - | |||||
Share-based payments, net of tax | - | |||||||
Other items | - | |||||||
Dec 31, 2023 | - |
EUR million | Note | 2024 | 2023 |
Operating activities | |||
Profit for the period, continuing operations | |||
Profit for the period, discontinued operations | - | ||
Adjustments | |||
Depreciation and amortization | 3.4 | ||
Finance expenses, net | 1.7 | ||
Income taxes | 1.8 | ||
Other items | |||
Change in net working capital | 2.1 | - | - |
Net cash flow from operating activities before financial items and taxes | |||
Interests paid | - | - | |
Interests received | |||
Other financing items, net | |||
Finance income and expenses paid, net | - | - | |
Income taxes paid | 1.8 | - | - |
Net cash flow from operating activities | |||
Investing activities | |||
Capital expenditures on intangible assets and property, plant, and equipment | 3.1, 3.2 | - | - |
Proceeds from sale of intangible assets and property, plant, and equipment | 3.1, 3.2 | ||
Proceeds from financial assets | 4.6 | ||
Business acquisitions, net of cash acquired | 5.4 | - | - |
Proceeds from sale of businesses, net of cash sold | 5.4, 5.5 | - | |
Cash received from liquidation of associated companies | 5.3 | ||
Increase in loan receivables | 4.6 | - | |
Decrease in loan receivables | 4.6 | ||
Net cash flow from investing activities | - | - | |
Financing activities | |||
Dividends paid | - | - | |
Proceeds from increases in non-current debt | 4.6 | ||
Repayment of non-current debt | 4.6 | - | |
Proceeds from and repayment of current debt, net | 4.6 | - | - |
Repayment of lease liabilities | 4.6 | - | - |
Net cash flow from financing activities | - | - | |
Net change in liquid funds | - | ||
Effect from changes in exchange rates | - | ||
Liquid funds equivalents at beginning of year | 4.3, 4.6 | ||
Liquid funds at end of year | 4.3, 4.6 |
Consolidated financial statements have been prepared in accordance with IFRS Accounting Standards IFRIC Interpretations as adopted by the European Union. The Consolidated financial statements have been prepared on a historical cost basis, except for financial assets and liabilities classified as at fair value through profit and loss accounts. Metso has classified certain businesses to be as held for sale. On March 29, 2023, Metso announced its decision to initiate the divestment of the Metals & Chemical Processing and Ferrous & Heat Transfer businesses, and these have been classified as discontinued operations. Consequently, the figures related to the consolidated statement of income are presented separately from the continuing operations as well as the assets and liabilities held for sale have been transferred to separate lines in the consolidated balance sheet. More information is disclosed under note 5.5 Discontinued operations. The financial statements are presented in euros, which is the Parent company’s functional currency and Metso’s presentation currency. The figures presented have been rounded; consequently, the sum of individual figures might differ from the presented total figure. |
The preparation of financial statements, in conformity with the IFRS, requires management to make estimates and assumptions and to exercise its judgment in the process of applying the Group’s accounting policies. These affect the reported amounts of balance sheet items, the presentation of contingent assets and liabilities, and the income and expenses for the financial year. Actual results may differ from the estimates made. The assets and liabilities involving a higher degree of judgment or complexity, or areas where the assumptions and estimates are significant to Metso’s Consolidated financial statements, are disclosed in the following notes: Note 1.2. Sales Note 2.7. Post-employment obligations Note 1.6. Share-based payments Note 3.1. Goodwill and intangible assets Note 1.8. Income taxes Note 3.2. Property, plant, and equipment Note 2.2. Trade receivables Note 3.3. Right-of-use assets Note 2.3. Other receivables Note 5.4. Acquisitions and business disposals Note 2.4. Inventory Note 5.5. Discontinued operations Note 2.6. Provisions Metso has reviewed the estimates and assumptions used in the preparation of the Consolidated financial statements for the possible impacts of climate change. Metso has performance share plans which have an earning criteria based on sustainable development (Note 1.6. Share-based payments). |
Reportable segments of Metso are based on end customer groups, which are differentiated by both offering and business model: Aggregates and Minerals. The segments are reported in a manner consistent with the internal reporting provided to the Board of Directors, Metso’s chief operating decision-maker responsible for allocating resources and assessing the performance of the segments, deciding on strategy, selecting key employees, as well as deciding on major development projects, business acquisitions, investments, organizational structure and financing. The accounting principles applied to segment reporting are the same as those used in preparing the Consolidated financial statements. Segment performance is measured with operating profit/loss (EBIT). In addition, Metso uses alternative performance measures to reflect the underlying business performance and to improve comparability between financial periods: earnings before interest, tax and amortization (EBITA), adjusted and net working capital. Adjustment items comprise capacity adjustment costs, acquisition costs, gains and losses on business transactions as well as Metso transaction and integration costs. Their nature and net effect on cost of goods sold, selling, general and administrative expenses, as well as other income and expenses are presented in the segment information. Alternative performance measures, however, should not be considered as a substitute for measures of performance in accordance with the IFRS. |
2024 | ||||
EUR million | Aggregates | Minerals | Group Head Office and Other | Total |
Sales, external | 1,207 | 3,656 | 0 | 4,863 |
Sales, total | 1,207 | 3,656 | 0 | 4,863 |
Earnings before interest, tax and amortization (EBITA) | 195 | 598 | 1 | 793 |
% of sales | 16.2 | 16.3 | – | 16.3 |
Adjusted EBITA | 198 | 640 | -34 | 804 |
% of sales | 16.4 | 17.5 | – | 16.5 |
Adjustment items and amortization of intangible assets | ||||
Adjustment items total | -3 | -42 | 34 | -11 |
Amortization of other intangible assets total | -16 | -49 | -1 | -66 |
Operating profit / loss | 179 | 548 | 0 | 727 |
% of sales | 14.9 | 15.0 | – | 15.0 |
Finance income and expenses, total | – | – | -80 | -80 |
Income before taxes | 179 | 548 | -80 | 648 |
EUR million | Aggregates | Minerals | Group Head Office and Other | Total |
Inventories | 663 | 1,236 | 0 | 1,900 |
Trade receivables | 232 | 668 | 0 | 900 |
Other non-interest bearing receivables | 53 | 170 | 91 | 314 |
Customer contract assets and liabilities, net | 10 | 12 | 0 | 22 |
Trade payables | -150 | -396 | -35 | -581 |
Advances received | -91 | -404 | 0 | -495 |
Other non-interest-bearing liabilities | -166 | -678 | -172 | -1,015 |
Net working capital | 551 | 609 | -115 | 1,045 |
EUR million | 2024 | 2023 |
Capacity adjustment costs | -42 | -27 |
Acquisition costs | -1 | -2 |
Profits on disposals, net | -4 | 1 |
Wind down of Russian business 1) | 35 | 9 |
Adjustments items, total | -11 | -18 |
2023 | ||||
EUR million | Aggregates | Minerals | Group Head Office and Other | Total |
Sales, external | 1,346 | 4,044 | 0 | 5,390 |
Sales, total | 1,346 | 4,044 | 0 | 5,390 |
Earnings before interest, tax and amortization (EBITA) | 228 | 675 | -34 | 869 |
% of sales | 17.0 | 16.7 | 0.0 | 16.1 |
Adjusted EBITA | 232 | 707 | -52 | 887 |
% of sales | 17.2 | 17.5 | 0.0 | 16.5 |
Adjustment items and amortization of intangible assets | ||||
Adjustment items total | -4 | -32 | 17 | -18 |
Amortization of other intangible assets total | -15 | -48 | -2 | -65 |
Operating profit / loss | 214 | 627 | -36 | 805 |
% of sales | 15.9 | 15.5 | 0.0 | 14.9 |
Finance income and expenses, total | – | – | -80 | -80 |
Income before taxes | 214 | 627 | -116 | 724 |
EUR million | Aggregates | Minerals | Group Head Office and Other | Total |
Inventories | 674 | 1,277 | – | 1,951 |
Trade receivables | 230 | 624 | 1 | 855 |
Other non-interest bearing receivables | 63 | 203 | 74 | 340 |
Customer contract assets and liabilities, net | 2 | -15 | 0 | -14 |
Trade payables | -161 | -494 | -20 | -675 |
Advances received | -63 | -262 | – | -325 |
Other non-interest-bearing liabilities | -169 | -798 | -175 | -1,143 |
Net working capital | 576 | 535 | -121 | 990 |
Metso presents the geographical distribution of the segments’ sales by location of customers. Non-current assets and gross capital expenditure are presented by location of assets. |
EUR million | 2024 | 2023 |
Finland | 144 | 122 |
Europe | 739 | 939 |
North and Central America | 1,081 | 1,260 |
South America | 1,139 | 1,142 |
APAC | 1,018 | 1,086 |
Africa, Middle East & India | 740 | 840 |
Sales | 4,863 | 5,390 |
EUR million | 2024 | 2023 |
Europe | 418 | 566 |
North and Central America | 227 | 357 |
South America | 230 | 223 |
APAC | 404 | 485 |
Africa, Middle East & India | 382 | 382 |
Total | 1,661 | 2,014 |
EUR million | 2024 | 2023 |
Finland | 230 | 173 |
Europe | 108 | 118 |
North and Central America | 242 | 205 |
South America | 121 | 97 |
APAC | 142 | 127 |
Africa, Middle East & India | 120 | 115 |
Non-allocated | 1,682 | 1,665 |
Total | 2,644 | 2,500 |
EUR million | 2024 | 2023 |
Finland | 64 | 36 |
Europe | 12 | 16 |
North and Central America | 45 | 29 |
South America | 47 | 33 |
APAC | 20 | 37 |
Africa, Middle East & India | 11 | 19 |
Total | 198 | 169 |
Metso applies IFRS 15 Revenue from Contracts with Customers. The principle is that sales are recognized at an amount that reflects the consideration which Metso expects to receive in exchange for transferring goods or services to a customer. Sales are recognized when the control of goods or services is transferred to a customer. Control is transferred either at a point in time or over time. When Metso provides standardized equipment and wear or spare parts to customers, sales are recognized at a point in time when control for the goods is transferred, typically at the delivery of the goods or after commissioning. Sales to distributors are recognized at delivery, when the distributor is not acting as an agent. If the distributor is acting as an agent, sales are recognized only when delivered to an ultimate client. When Metso provides customized engineered system deliveries, where the asset produced does not have alternative use and Metso has enforceable right to payment for the performance completed to date, sales are recognized over time. Sales recognition is based on estimated sales, costs and profit. Metso measures the progress using the cost-to-cost method, where sales and profits are recorded after considering the ratio of accumulated costs to estimated total costs to complete each contract. This method is considered to best reflect the satisfaction of the performance obligation. The estimated sales, costs and profit, together with the planned delivery schedule of the contract are subject to regular revisions as the contract progresses to completion. Revisions in profit estimates as well as any projected potential loss on contract are charged through the profit and loss account in the period in which they become known. Sales from providing services are recognized when the performance obligation is satisfied. For long-term fixed price service contracts, sales are recognized over time, because the customer simultaneously receives and consumes the services provided by Metso. The measure of the progress is based on costs of actual services provided as a proportion of the costs of total services to be rendered. The estimated sales, costs and profit, together with the planned delivery schedule of the contract are subject to regular revisions as the contract progresses to completion. Revisions in contract estimates as well as any projected potential loss on contract are charged through the profit and loss account in the period in which they become known. For short-term service contracts with hourly fee based on valid price list, sales are recognized to the extent Metso has the right to invoice the customer, and for service contracts with fixed hourly fee agreed in the contract, sales are recognized based on invoicing. Customer contracts may include promises such as volume-based rebates and liquidated damages attributable to, for instance, delayed delivery or non-performance. The impact of these promises on the final consideration will be estimated when recognition is started and systematically during the contract period. Sales will be recognized to the extent that Metso is entitled to the consideration. Also, creditworthiness of the client and collectability of the consideration is assessed throughout the contract period. Extended warranties are treated as a separate performance obligation and an appropriate transaction price is allocated to them and recognized in sales when occurred. Metso often requires advance payments from customers. Applying IFRS 15, advances received do not include a financing component, because the payment schedule of them follows closely the timing of performance obligations to be satisfied. |
Sales recognized at a point in time may require judgement on facts and circumstances when the control is considered to have passed to the client, affecting on timing of sales to be recognized. Transfer of the control is assessed mainly based on terms of delivery in the contract and local legislation. Customer contracts including clauses on rebates, late delivery penalties, right to return promises or extended warranties requires management judgement on the probability of such clauses to have an effect on contracts sales. Judgements are based on earlier experience and market practice when available. Sales recognized over time is based on cost-to-cost method, which requires management to be able to estimate total sales, costs, margin, and cash flow to complete the project. The assessment of the progress and margin to be recognized as well as the total costs estimated to complete the contracts requires judgments by management throughout the contract period. The most critical judgments are needed in case of a loss-making contract when estimating the performance needed to be able to satisfy the contract. Changes in general market conditions and the possible impact on the contracts needs to be predicted as well. The credit worthiness of the customer is verified, and collectability of the consideration assessed before entering a contract. However, a risk of non-payment might arise afterwards, and it requires management judgement on the impact on final sales recognition. |
Hedging of foreign currency denominated firm commitments Metso hedging policy requires business units to hedge their foreign currency risk when they become engaged in a firm commitment denominated in a currency other than their functional currency. Treasury Policy specifies certain currencies and certain legal units, where the open exposures are left unhedged. Similarly open exposures below certain euro nominated amount are left unhedged. When a firm commitment qualifies for over time recognition, the business unit applies hedge accounting and recognizes the effect of the hedging instruments in other comprehensive income (OCI) until the commitment is recognized. Though Metso has defined the characteristics triggering a firm commitment, the final realization of the unrecognized commitment depends also on factors beyond management control, which cannot be foreseen when initiating the hedging relationship. Such factors can be a change in the market environment causing the other party to postpone or cancel the commitment. To the extent possible, management strives to include clauses in its contracts that reduce the impact of such adverse events on its results. |
2024 | |||
EUR million | Aggregates | Minerals | Total |
Sales of services | 419 | 2,405 | 2,824 |
Sales of projects, equipment and goods | 788 | 1,251 | 2,039 |
Sales total | 1,207 | 3,656 | 4,863 |
2023 | |||
EUR million | Aggregates | Minerals | Total |
Sales of services | 434 | 2,458 | 2,891 |
Sales of projects, equipment and goods | 913 | 1,586 | 2,499 |
Sales total | 1,346 | 4,044 | 5,390 |
2024 | |||
EUR million | Aggregates | Minerals | Total |
At a point in time | 1,175 | 2,859 | 4,033 |
Over time | 32 | 797 | 829 |
Sales total | 1,207 | 3,656 | 4,863 |
2023 | |||
EUR million | Aggregates | Minerals | Total |
At a point in time | 1,317 | 2,990 | 4,306 |
Over time | 30 | 1,054 | 1,084 |
Sales total | 1,346 | 4,044 | 5,390 |
2024 | |||
EUR million | Aggregates | Minerals | Total |
Finland | 23 | 121 | 144 |
Europe | 324 | 416 | 739 |
North and Central America | 460 | 622 | 1,081 |
South America | 86 | 1,053 | 1,139 |
APAC | 174 | 844 | 1,018 |
Africa, Middle East & India | 140 | 600 | 740 |
Sales total | 1,207 | 3,656 | 4,863 |
2023 | |||
EUR million | Aggregates | Minerals | Total |
Finland | 14 | 108 | 122 |
Europe | 381 | 558 | 939 |
North and Central America | 539 | 721 | 1,260 |
South America | 83 | 1,060 | 1,142 |
APAC | 174 | 912 | 1,086 |
Africa, Middle East & India | 156 | 684 | 840 |
Sales total | 1,346 | 4,044 | 5,390 |
EUR million | 2024 | 2023 |
Trade receivables | 911 | 855 |
Customer contract assets | 279 | 308 |
Customer contract liabilities | 257 | 322 |
Advances received | 495 | 325 |
Costs and expenses of different income statement items are assigned by the nature and relationship of the cost incurred. Cost of goods sold are either directly or indirectly linked to recognized or expected sales. Direct cost includes e.g. materials, subcontracted engineering and logistics related to specific customer contracts. Indirect cost carries the capacity cost of delivery resources as well as manufacturing units. Marketing and selling expenses consist of cost related to activity of generating new sales and marketing of the company and its product portfolio. As an example cost of regional sales organizations are reported under this item. Research and development expenses arise from research and development activities related to new products and technologies. Research and development expenses comprise salaries, administration costs, digital investments, and depreciation and amortization of property, plant, and equipment and intangible assets and are mainly recognized as incurred. Grants received are netted from the costs. When material development costs meet certain capitalization criteria under IAS 38, they are capitalized and amortized over the expected useful life of the underlying technology. Administrative expenses cover cost of company’s administrative activities such as general management as well as support and group functions. |
EUR million | 2024 | 2023 |
Marketing and selling expenses | -426 | -438 |
Research and development expenses, net | -103 | -66 |
Administrative expenses | -356 | -372 |
Selling, general and administrative expenses | -885 | -875 |
EUR million | 2024 | 2023 |
Research and development expenditure, total | -103 | -62 |
Capital expenditure | 12 | 8 |
Grants received | 2 | 2 |
Depreciation and amortization | -14 | -13 |
Research and development expenses, net | -103 | -66 |
Other operating income and expenses comprise income and expenses that do not directly relate to the operating activity of businesses within Metso, or which arise from unrealized and realized changes in fair value of foreign currency denominated financial instruments related to operations, including forward exchange contracts. Such items include costs related to significant restructuring programs, gains and losses on disposal of assets, and foreign exchange gains and losses, excluding those qualifying for hedge accounting and those, which are reported under finance income and expenses, net. Additionally, non-recoverable foreign taxes, which are not based on taxable profits, are reported in other operating income and expenses, net. In particular, these include foreign taxes and such like payments not based on Double Taxation Treaties in force. |
EUR million | 2024 | 2023 |
Other operating income | ||
Gain on sale of intangible and tangible assets | 12 | 7 |
Rental income | 0 | 1 |
Foreign exchange gains | 155 | 264 |
Other income | 35 | 10 |
Other operating income total | 202 | 282 |
Other operating expenses | ||
Loss on disposed businesses | -5 | -2 |
Loss on sale of intangible and tangible assets | -4 | -2 |
Impairment of intangible and tangible assets | -9 | -4 |
Foreign exchange losses | -182 | -278 |
Other expenses | -15 | -20 |
Other operating expenses total | -215 | -306 |
Other operating income and expenses, net | -14 | -25 |
EUR million | 2024 | 2023 |
Salaries and wages | -844 | -894 |
Pension costs, defined contribution plans | -73 | -38 |
Pension costs, defined benefit plans 1) | -6 | -9 |
Other post-employment benefits 1) | -1 | -1 |
Share-based payments 2) | -6 | -13 |
Other indirect employee costs | -139 | -120 |
Total | -1,069 | -1,075 |
2024 | 2023 | |
Personnel at end of the year | 16,832 | 17,134 |
Average number of personnel during the year | 17,081 | 16,960 |
EUR thousand | 2024 | 2023 |
Serving Board members December 31, 2024: | ||
Kari Stadigh | -196 | -185 |
Klaus Cawén | -116 | -109 |
Brian Beamish | -95 | -90 |
Terhi Koipijärvi | -100 | -93 |
Niko Pakalén | -93 | -82 |
Ian W. Pearce | -105 | -105 |
Reima Rytsölä | -99 | -91 |
Emanuela Speranza | -103 | -96 |
Arja Talma | -115 | -107 |
Former Board members | ||
Christer Gardell 1) | – | -4 |
Antti Mäkinen 1) | – | -4 |
Total | -1,022 | -966 |
2024 | |||||
EUR | Salary | Fringe benefits | Performance bonus paid | Share-based payment | Total |
President and CEO 1) | 911,713 | 6,219 | 807,937 | 2,736,437 | 4,462,306 |
Other Leadership Team members | 2,700,184 | 69,299 | 1,230,575 | 4,634,490 | 8,634,548 |
Total | 3,611,897 | 75,518 | 2,038,512 | 7,370,927 | 13,096,854 |
2023 | |||||
EUR | Salary | Fringe benefits | Performance bonus paid | Share-based payment | Total |
President and CEO Pekka Vauramo | 897,468 | 3,417 | 773,107 | 2,829,126 | 4,503,118 |
Other Executive Team members | 2,681,897 | 69,264 | 1,561,335 | 4,398,002 | 8,710,498 |
Total | 3,579,365 | 72,681 | 2,334,442 | 7,227,128 | 13,213,616 |
Shares (pcs) | 2024 |
Kari Stadigh | 81,343 |
Klaus Cawén | 44,962 |
Brian Beamish | 4,564 |
Terhi Koipijärvi | 9,778 |
Niko Pakalén | 2,826 |
Ian W. Pearce | 32,553 |
Reima Rytsölä | 6,220 |
Emanuela Speranza | 8,226 |
Arja Talma | 37,564 |
Total | 228,036 |
Shares (pcs) | 2024 |
Sami Takaluoma | 124,112 |
Eeva Sipilä | 250,355 |
Claudia Genin | 0 |
Carita Himberg | 37,235 |
Piia Karhu | 41,614 |
Saso Kitanoski | 12,998 |
Nina Kiviranta | 72,813 |
Heikki Metsälä | 23,621 |
Markku Simula | 91,851 |
Total | 654,599 |
Metso has share-based incentive plans for its key personnel. The equity-settled share awards are valued based on the market price of the Metso share on the grant date and recognized as an employee benefit expense over the vesting period with a corresponding entry in other reserves of the equity. The historical development of the Metso shares, and the expected dividends have been taken into account when calculating the fair value. The entire share incentive, including the cash-for-taxes portion, is recognized in equity. Also the value of the cash portion is based on the grant date value. As a market condition, total shareholder return of the Performance Share Plans will be taken into account when determining the fair value at grant, and it will not be changed during the plan. The fair value of the cost estimate of the Performance Share Plans will only be changed when service or non-market conditions are concerned. At each balance sheet date, Metso revises its estimates on the amount of share-based payments that are expected to vest. The impact of a revision to a previous estimate is accrued as an employee benefit expense with a corresponding entry to equity. The historical development of Metso share price and the expected dividends have been taken into account when calculating the fair value. |
At each balance sheet date, management reviews its estimates for the number of shares that are expected to vest. As part of this evaluation, Metso takes into account changes in the forecasted performance of the Group and its reporting segments, expected turnover of the personnel benefiting from the incentive plan, and other pertinent information impacting the number of shares to be vested. |
December 31, 2024 | Beneficiaries total | Shares total |
Plan PSP 2021–2023 | ||
Granted 2024 | 144 | 984,288 |
Plan RSP 2021–2023 | ||
Granted 2024 | 18 | 38,851 |
EUR million | 2024 | 2023 |
Plan PSP and DSP 2020–2022 | – | -1 |
Plan PSP and RSP 2021–2023 | -1 | -6 |
Plan PSP and RSP 2022–2024 | -2 | -3 |
Plan PSP 2023–2025 | -2 | -3 |
Plan PSP 2024–2026 | -2 | – |
Total | -6 | -13 |
EUR million | 2024 | 2023 |
Finance income | ||
Dividends received | 0 | 0 |
Interest income | 19 | 11 |
Other finance income | 2 | 6 |
Finance income | 22 | 17 |
Foreign exchange gains/losses | 4 | 4 |
Finance expenses | ||
Interest expenses from financial liabilities at amortized cost | -79 | -72 |
Interest expenses on lease liabilities | -5 | -5 |
Other finance expenses | -21 | -25 |
Finance expenses | -105 | -101 |
Finance income and expenses, net | -80 | -80 |
Income taxes in the consolidated income statement include taxes of subsidiaries and the parent company based on taxable income for the current period, tax adjustments for previous periods, and the changes in deferred taxes. The other comprehensive income statement (OCI) includes taxes on items presented in the OCI. Deferred taxes are determined for temporary differences arising between the tax base of assets and liabilities and their financial statement carrying amounts, measured using substantially enacted tax rates. |
Metso is subject to income tax in its operating countries. Metso’s management is required to make certain assumptions and estimates in preparing the annual tax calculations for which the ultimate tax consequence is uncertain. Annually, Metso has tax audits ongoing in several subsidiaries and recognizes tax liabilities for anticipated tax audit issues based on an estimate of whether additional taxes will be due. Where the final outcome of these issues is different from the estimated amounts, the difference will impact the income tax in the period in which such determination is made. |
EUR million | 2024 | 2023 |
Income taxes for current year | -195 | -218 |
Income taxes for prior years | 7 | -2 |
Change in deferred tax asset and liability | 27 | 33 |
Income taxes | -162 | -187 |
EUR million | 2024 | 2023 |
Profit before taxes | 648 | 724 |
Income tax at Finnish statutory tax rate of 20.0% | -130 | -145 |
Effect of different tax rates in foreign subsidiaries | -27 | -27 |
Non-deductible expenses | -17 | -15 |
Tax exempt income or tax incentives | 8 | 11 |
Foreign non-creditable withholding taxes | -5 | -13 |
Deferred tax liability on undistributed earnings | -5 | -3 |
Income tax for prior years | 7 | -2 |
Other | 8 | 7 |
Income taxes | -162 | -187 |
2024 | 2023 | |||||
EUR million | Before taxes | Deferred taxes | After taxes | Before taxes | Deferred taxes | After taxes |
Cash flow hedges | 5 | -1 | 4 | -3 | 1 | -2 |
Defined benefit plan actuarial gains (+) / losses (-) | 0 | 0 | 0 | -5 | 1 | -4 |
Currency translation on subsidiary net investments | -37 | – | -37 | -27 | – | -27 |
Total comprehensive income (+) / expense (‑) | -33 | -1 | -33 | -36 | 2 | -33 |
The deferred tax asset or liability is determined for temporary differences arising between the tax bases of assets and liabilities and their financial statement carrying amounts using the substantially enacted tax rates expected to apply in future years. Typical temporary differences arise from provisions, depreciation and amortization expense, inter-company inventory margins, defined benefit plans, and tax loss carry-forwards. Deferred tax liabilities are recognized in the balance sheet in full, and the deferred tax assets are only recognized if it is probable there will be taxable income in the future against which deferred tax assets can be used. Deferred tax assets are offset against deferred tax liabilities if they relate to taxes levied by the same taxation authority on the same taxable entity. |
In determining deferred tax assets and liabilities, Metso is required to make certain assumptions and estimates on, in particular, future operating performance and the taxable income of subsidiaries, recoverability of tax loss carry-forwards and potential changes in tax laws in jurisdictions where Metso operates. A deferred tax liability based on foreign subsidiaries’ undistributed earnings has been provided only where Metso’s management has elected to distribute such earnings in the coming years and the distribution is subject to taxation. Because tax consequences are difficult to predict, deferred tax assets and liabilities may need to be adjusted in future financial years, which may have an impact in the period in which such determination is made. |
EUR million | ||||||
2024 | Jan 1 | Charged to income statement | Charged to shareholders’ equity | Acquisitions and disposals | Translation differences and Group items | Dec 31 |
Deferred tax assets | ||||||
Tax losses carried forward | 7 | 39 | – | – | 2 | 48 |
Intangible assets and property, plant and equipment | 20 | -5 | – | – | 0 | 15 |
Inventory | 91 | -5 | – | – | 0 | 86 |
Provisions | 59 | -3 | – | – | -3 | 53 |
Accruals | 49 | -8 | – | – | 0 | 41 |
Pension related items | 6 | 0 | 0 | – | 0 | 5 |
Right-of-use assets | 28 | 3 | – | 2 | 0 | 32 |
Other | 18 | 7 | -1 | – | -4 | 20 |
Total deferred tax assets | 276 | 27 | -1 | 2 | -5 | 300 |
Offset against deferred tax liabilities | -28 | – | – | – | -5 | -33 |
Assets held for sale | -14 | 7 | – | – | – | -7 |
Net deferred tax assets | 234 | 34 | -1 | 2 | -10 | 259 |
Deferred tax liabilities | ||||||
Purchase price allocations | 160 | -12 | – | 8 | 0 | 156 |
Intangible assets and property, plant and equipment | 16 | 0 | – | – | 0 | 15 |
Right-of-use assets | 29 | 3 | – | 2 | 0 | 34 |
Other | 30 | 15 | 0 | – | -22 | 22 |
Total deferred tax liabilities | 234 | 6 | 0 | 10 | -23 | 227 |
Offset against deferred tax assets | -28 | – | – | – | -5 | -33 |
Liabilities held for sale | -24 | 2 | – | – | – | -22 |
Net deferred tax liabilities | 182 | 8 | 0 | 10 | -28 | 172 |
Deferred tax assets (+) / liabilities (-), net | 51 | 27 | -2 | -8 | 18 | 87 |
EUR million | ||||||
2023 | Jan 1 | Charged to income statement | Charged to shareholders’ equity | Acquisitions and disposals | Translation differences and Group items | Dec 31 |
Deferred tax assets | ||||||
Tax losses carried forward | 2 | 2 | 0 | 0 | 1 | 7 |
Intangible assets and property, plant and equipment | 31 | -11 | – | 0 | 0 | 20 |
Inventory | 79 | 12 | – | – | 0 | 91 |
Provisions | 61 | -3 | – | 0 | 0 | 59 |
Accruals | 32 | 18 | – | – | -1 | 49 |
Pension related items | 6 | -1 | 1 | – | 0 | 6 |
Right-of-use assets | 27 | 0 | – | 0 | – | 28 |
Other | 5 | 14 | 1 | 0 | -1 | 18 |
Total deferred tax assets | 244 | 32 | 3 | 1 | -2 | 276 |
Offset against deferred tax liabilities | -19 | – | – | – | -10 | -28 |
Assets held for sale | – | 3 | – | – | -17 | -14 |
Net deferred tax assets | 225 | 35 | 3 | 1 | -29 | 234 |
Deferred tax liabilities | ||||||
Purchase price allocations | 166 | -11 | – | 6 | 0 | 160 |
Intangible assets and property, plant and equipment | 15 | 0 | – | 0 | -1 | 16 |
Right-of-use assets | 28 | 0 | – | 0 | – | 29 |
Other | 3 | 28 | 0 | 0 | -1 | 30 |
Total deferred tax liabilities | 212 | 17 | 0 | 6 | -1 | 234 |
Offset against deferred tax assets | -19 | – | – | – | -10 | -28 |
Liabilities held for sale | – | -15 | – | – | -8 | -24 |
Net deferred tax liabilities | 193 | 2 | 0 | 6 | -19 | 182 |
Deferred tax assets (+) / liabilities (-), net | 31 | 33 | 3 | -6 | -10 | 51 |
2024 | 2023 | |
Profit attributable to shareholders of the company, EUR million | 329 | 543 |
Weighted average number of shares issued and outstanding (in thousands) | 827,101 | 826,216 |
Earnings per share, basic, EUR | 0.40 | 0.66 |
2024 | 2023 | |
Profit attributable to shareholders of the company, continuing operations, EUR million | 485 | 535 |
Weighted average number of shares issued and outstanding (in thousands) | 827,101 | 826,216 |
Earnings per share, basic, EUR | 0.59 | 0.65 |
2024 | 2023 | |
Profit attributable to shareholders of the company, EUR million | 329 | 543 |
Weighted average number of shares issued and outstanding (in thousands) | 827,101 | 826,216 |
Adjustment for potential shares distributed (in thousands) | 884 | 929 |
Weighted average number of diluted shares issued and outstanding (in thousands) | 827,985 | 827,145 |
Earnings per share, basic, diluted, EUR | 0.40 | 0.66 |
Balance sheet value | Cash flow effect | |||
EUR million | 2024 | 2023 | 2024 | 2023 |
Inventories | 1,900 | 1,951 | 41 | -192 |
Trade receivables | 900 | 855 | -65 | -90 |
Other non-interest bearing receivables | 314 | 340 | -20 | -20 |
Customer contract assets and liabilities, net | 22 | -14 | 6 | -129 |
Trade payables | -581 | -675 | -111 | -72 |
Advances received | -495 | -325 | 173 | 57 |
Other non-interest bearing liabilities | -1,015 | -1,143 | -142 | -3 |
Net working capital | 1,045 | 990 | -119 | -449 |
EUR million | 2024 | 2023 |
Net working capital | 1,045 | 990 |
Intangible assets | 1,927 | 1,886 |
Property, plant and equipment | 549 | 472 |
Right-of-use assets | 136 | 114 |
Non-current investments | 5 | 5 |
Interest bearing receivables | 2 | 6 |
Liquid funds | 431 | 638 |
Tax payables and receivables, net | 68 | -27 |
Interest payables, net | -8 | -7 |
Capital employed | 4,156 | 4,078 |
Trade receivables are invoiced receivables from customers related to Metso’s ordinary business transactions. General payment terms are typically from 30 days to 90 days, and they are non-interest-bearing receivables. Trade receivables are initially recognized at transaction price and subsequently valued at amortized cost. If, exceptionally an over 360 day payment term was offered to a client, the invoiced amount is discounted to its fair value. |
In measuring expected credit losses, Metso applies the IFRS 9 simplified approach, which uses a lifetime expected loss allowance to be assessed and recognized regularly. Credit loss risk related to customer contract assets is covered mainly by the advance payments received from the clients. Based on an analysis of the previous year’s credit losses by aging category and nature, as well as the macroeconomic outlook in the near future, Metso recognizes a credit loss allowance from 0.1% to 5% on trade receivables undue or less than 180 days overdue. For trade receivables more than 180 days overdue, the impairment is assessed individually, but without any credit guarantee, collateral, or similar assurance on the recoverability, a minimum credit loss provision of 25% (over 180 days overdue) and 100% (over 360 days overdue) will be recognized. Trade receivables are written off when there is no reasonable expectation of recovery. Probability of bankruptcy, other financial reorganization, or a similar situation indicating insolvency of the client triggers a final write-off. |
Estimates on expected credit losses and credit loss provisions to be recognized are based on management’s best judgment. The judgment is based on experience with past years’ credit losses, current economic outlook, and client segment and location information. Trade receivables are collected actively, and possible impairment analyzed regularly by the businesses and Metso legal units, and the necessary actions to secure receivables are made by management. When a credit loss provision of a trade receivable is assessed individually, collateral, credit guarantees, financial position of the client, and earlier payment behavior are taken into consideration. |
EUR million | 2024 | 2023 |
Trade receivables | 890 | 845 |
Trade receivables for sale | 10 | 10 |
Total | 900 | 855 |
Classified as held for sale | ||
Non-current | 7 | – |
Current | 13 | 15 |
Total | 920 | 870 |
2024 | 2023 | |||
EUR million | Trade receivables, gross | of which provided | Trade receivables, gross | of which provided |
Undue | 609 | 7 | 616 | 3 |
Overdue 1–30 days | 131 | 0 | 98 | 0 |
Overdue 31–180 days | 152 | 2 | 134 | 3 |
Overdue 181–360 days | 27 | 5 | 23 | 6 |
Overdue over 360 days | 52 | 37 | 50 | 39 |
Total, gross | 972 | 52 | 921 | 52 |
Total, net | 920 | 870 | ||
EUR million | 2024 | 2023 |
Accumulated provision, January 1 | 52 | 100 |
Impact of exchange rates | -1 | -2 |
Acquisitions | 0 | – |
Additions to reserve | 3 | 2 |
Used reserve and other changes | -3 | -47 |
Accumulated provision, December 31 | 52 | 52 |
Other non-interest-bearing receivables are recognized in the balance sheet at original fair value which can be subsequently written down due to impairment. The impairment is expensed under selling, general and administrative expenses. |
The group policy is to calculate an impairment loss based on the best estimate of the amounts that are potentially uncollectable at the balance sheet date. Metso management actively monitors the amount of receivables past due globally and initiates action as necessary. |
2024 | 2023 | |||||
EUR million | Non- current | Current | Total | Non- current | Current | Total |
Derivative instruments | 9 | 34 | 43 | 10 | 36 | 46 |
Deferred tax assets | 259 | – | 259 | 234 | – | 234 |
Income tax receivables | – | 61 | 61 | – | 107 | 107 |
Other receivables | ||||||
Prepaid expenses and accrued income | – | 64 | 64 | – | 69 | 69 |
VAT, payroll tax and social charge receivables | – | 143 | 143 | – | 174 | 174 |
Pension assets | 4 | – | 4 | 3 | – | 3 |
Other receivables | 23 | 37 | 60 | 20 | 31 | 50 |
Other receivables total | 27 | 245 | 272 | 22 | 273 | 295 |
Non-interest-bearing receivables total | 295 | 339 | 634 | 266 | 417 | 682 |
Inventories are valued at the lower of historical cost calculated or net realizable value. Costs are measured on a weighted average cost basis and include purchase costs as well as transportation and processing costs. The costs of finished goods include direct materials, wages, and salaries plus employer social contributions, subcontracting and other direct costs, as well as a portion of production and project administration overheads. Net realizable value is the estimated amount that can be realized from the sale of the asset in the normal course of business less costs to sell. Inventories are shown net of a provision for obsolete and slow-moving inventories. Metso's policy is to maintain a provision for slow-moving and obsolete inventory based on the best estimate of such amounts at the balance sheet date. An obsolescence provision is charged to income statement in the period in which the obsolescence is determined. Estimates are based on a systematic, on-going review and evaluation of inventory balance. |
Inventory valuation requires management to make estimates and judgments particularly relating to obsolescence and expected selling prices and sales costs in different market conditions. It also entails management's assessment of the general market trends in global markets. |
EUR million | 2024 | 2023 |
Materials and supplies | 292 | 294 |
Work in process | 620 | 615 |
Finished products | 1,047 | 1,095 |
Total | 1,959 | 2,004 |
Classified as held for sale | -59 | -53 |
Inventories | 1,900 | 1,951 |
EUR million | 2024 | 2023 |
Balance at beginning of year | 93 | 99 |
Impact of exchange rates | -1 | -2 |
Additions charged to expense | 24 | 26 |
Used reserve | -11 | -2 |
Deductions / other additions | 5 | -27 |
Classification as held for sale | – | 0 |
Balance at end of year | 110 | 93 |
The fair values and carrying amounts of trade and other payables are considered to be the same, due to the short-term maturities. The maturities of the current non-interest-bearing liabilities rarely exceed six months. The maturities of trade payables are largely determined by trade practices and individual agreements between Metso and its suppliers. Accrued personnel costs, including holiday pay, are settled in accordance with local laws and regulations. |
2024 | 2023 | |||||
EUR million | Non-current | Current | Total | Non-current | Current | Total |
Trade payables | – | 581 | 581 | – | 675 | 675 |
Classified as held for sale | – | 16 | 16 | – | 29 | 29 |
Total | – | 598 | 598 | – | 704 | 704 |
Derivative instruments | 13 | 68 | 80 | 18 | 28 | 45 |
Other payables | ||||||
Accrued interests | – | 8 | 8 | – | 8 | 8 |
Accrued personnel costs | – | 172 | 172 | – | 207 | 207 |
Accrued project costs | – | 251 | 251 | – | 298 | 298 |
VAT, payroll tax and social charge payables | – | 53 | 53 | – | 89 | 89 |
Other payables | 5 | 102 | 107 | 7 | 109 | 116 |
Other payables | 5 | 587 | 592 | 7 | 711 | 717 |
Classified as held for sale | – | 26 | 26 | – | 54 | 54 |
Total | 5 | 612 | 617 | 7 | 764 | 771 |
EUR million | 2024 | 2023 |
Carrying amount of trade payables that are part of a supplier finance arrangement | 103 | 144 |
Of which suppliers have received payment | 97 | 111 |
Provisions are recognized when the Group has a legal or constructive obligation as a result of a past event, and it is probable that financial benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions, for which settlement is expected to occur more than one year after the initial recognition, are discounted to their present value and adjusted in subsequent closings for the time effect. |
Warranty and guarantee provisions Metso issues various types of contractual product warranties under which it generally guarantees the performance levels agreed in the sales contract, the performance of products delivered during an agreed warranty period and services rendered for a certain period or term. The provision for estimated warranty costs is based on historical realized warranty costs for deliveries of standard products and services in the past. The typical warranty period is 12 months from the accepted delivery. The adequacy of provisions is assessed periodically on a case by case basis. |
Restructuring and capacity adjustment costs A provision for restructuring and capacity adjustment costs is recognized only after management has approved, committed to and started to implement a formal plan. Employee termination benefits are recognized after the representatives of employees or individual employees have been informed of the intended measures in detail and the related compensation packages can be reliably measured. The costs included in a provision for capacity adjustment are those costs that are either incremental or incurred as a direct result of the plan or as the result of a continuing contractual obligation with no continuing economic benefit to Metso or a penalty incurred to cancel the contractual obligation. Restructuring and capacity adjustment expenses are recognized in either cost of goods sold or in selling, general and administrative expenses depending on the nature of the restructuring expenses. Restructuring costs can also include other costs, which are recorded under other operating income and expenses, net, incurred as a result of the plan, such as asset write-downs. |
Environmental remediation costs Metso recognizes provisions associated with environmental remediation obligations when there is a present obligation as a result of past events, an outflow of resources is considered probable, and the obligation can be estimated reliably. Such provisions are adjusted as further information develops or circumstances change. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed virtually certain. |
Provision for loss making projects A provision for loss making projects is booked when the costs needed to settle the performance obligations of the contract exceed the consideration to be received. Such a provision for the unrecognized portion of the loss is recognized immediately when these conditions have been met and is revised according to the progress of the project. |
Provisions booked require management to estimate the future costs needed to settle the obligations and to estimate the possible outcomes of claims or lawsuits. The outcome depends on future development and events, so the final costs needed and the timing to settle the obligation may differ from the initial provision estimated. For larger and long-term delivery projects and sales involving new technology, additional warranty provisions can be established on a case by case basis to take into account the potentially increased risk. |
2024 | 2023 | |||||
EUR million | Non-current | Current | Total | Non-current | Current | Total |
Warranty and guarantee provision | 1 | 126 | 126 | 0 | 97 | 98 |
Project loss provisions | 27 | 33 | 61 | 27 | 67 | 94 |
Restructuring provision | 3 | 5 | 8 | 1 | 8 | 9 |
Environmental remedial provision | 0 | 0 | 0 | 0 | 1 | 1 |
Russia wind-down provision | – | 2 | 2 | – | 32 | 32 |
Other provisions 1) | 30 | 36 | 66 | 34 | 30 | 64 |
Total | 62 | 201 | 263 | 63 | 235 | 298 |
2024 | |||||||
EUR million | Warranty and guarantee provision | Project loss provisions | Restructuring provision | Environmental remediation provision | Russia wind- down provision | Other provisi ons | Total |
Carrying value at January 1 | 98 | 94 | 9 | 1 | 32 | 64 | 298 |
Impact of exchange rates | 0 | 0 | 0 | 0 | – | -8 | -7 |
Addition charged to expense | 53 | 14 | 6 | – | – | 15 | 88 |
Used reserve | -15 | -34 | -4 | 0 | – | -6 | -58 |
Reversal of reserve / other changes | -12 | -13 | -3 | -1 | -30 | -3 | -61 |
Classification as held for sale | 2 | -1 | 0 | 0 | – | 2 | 4 |
Carrying value at December 31 | 126 | 61 | 8 | 0 | 2 | 66 | 263 |
Metso has several different pension schemes in accordance with local regulations and practices in countries where it operates. In certain countries, the pension schemes are defined benefit plans with retirement, disability, death, and other post-retirement benefits, such as health services, and termination income benefits. The retirement benefits are usually based on the number of service years and the salary levels of the final service years. Metso has both defined contribution and defined benefit schemes. The schemes are generally funded through payments to insurance companies or to trustee- administered funds. Other arrangements are unfunded with benefits being paid directly by Metso as they fall due. All arrangements are subject to local tax and legal restrictions in their respective jurisdictions. In the case of defined benefit plans, the liability recognized from the plan is the present value of the defined benefit obligation as of the balance sheet date less the fair value of the plan assets. Independent actuaries calculate the defined benefit obligation by applying the projected unit credit method under. The present value of the defined benefit obligation is determined by discounting the estimated future cash flows using the interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid and having maturity approximating to the terms of the related pension obligation. The cost of providing retirement and other post-retirement benefits to personnel is charged to profit and loss concurrently with the service rendered by personnel. Net interest is recorded through finance income and expenses in the income statement. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized through OCI in shareholders' equity in the period in which they arise. Past service costs, gains and losses on curtailments or settlements are recognized immediately in the income statement. The contributions to defined contribution plans and multi-employer and insured plans are charged to profit and loss concurrently with the payment obligations. |
The present value of the pension obligations is based on annual actuarial calculations, which use several assumptions such as the discount rate and expected return on assets, salary and pension increases and other actuarial factors. As a result, the liability recorded on Metso's balance sheet and cash contributions to funded arrangements are sensitive to changes. Where the actuarial experience differs from those assumptions gains and losses result, which are recognized in OCI. Sensitivity analyses on the present value of the defined benefit obligation have been presented in the tables. Assets of Metso's funded arrangements are managed by external fund managers. The allocation of assets is reviewed regularly by those responsible for managing Metso’s arrangements based on local legislation, professional advice and consultation with Metso, based on acceptable risk tolerances. |
2024 | 2023 | |||||
EUR million | Pension benefits | Other post- employment benefits | Total | Pension benefits | Other post- employment benefits | Total |
Present value of funded obligations | 83 | – | 83 | 89 | – | 89 |
Fair value of plan assets | -85 | – | -85 | -90 | – | -90 |
Total | -2 | – | -2 | 0 | – | 0 |
Present value of unfunded obligations | 68 | 27 | 96 | 68 | 30 | 98 |
Unrecognized asset | 0 | – | 0 | 0 | – | 0 |
Total | 66 | 27 | 94 | 68 | 30 | 98 |
Amounts in the balance sheet | ||||||
Liabilities | 69 | 27 | 96 | 70 | 30 | 100 |
Assets | -3 | – | -3 | -2 | – | -2 |
Net liability | 66 | 27 | 93 | 68 | 30 | 98 |
EUR million | 2024 | 2023 |
Net liability at beginning of year | 98 | 96 |
Net expense recognized in the income statement | 9 | 9 |
Employer contributions | -12 | -11 |
Gain (-) / loss (+) recognized through OCI | -2 | 5 |
Translation differences | 0 | -1 |
Net liability at end of year | 93 | 98 |
2024 | 2023 | |||||
EUR million | Pension benefits | Other post- employment benefits | Total | Pension benefits | Other post- employment benefits | Total |
Employer's current service cost | 1 | 2 | 3 | 1 | 3 | 4 |
Net interest on net surplus (+) / deficit (-) | 2 | 2 | 4 | 2 | 1 | 4 |
Settlements | – | 0 | 0 | – | – | – |
Gain (-) / loss (+) recognized in income statement | 1 | 0 | 1 | 1 | 0 | 0 |
Administration costs paid by the scheme | 1 | – | 1 | 1 | – | 1 |
Expense (+) / income (-) recognized in income statement | 5 | 4 | 9 | 5 | 4 | 9 |
2024 | 2023 | |||||
EUR million | Pension benefits | Other post- employment benefits | Total | Pension benefits | Other post- employment benefits | Total |
Return on plan assets, excluding amounts included in interest expense (+) / income (-) | 6 | – | 6 | 0 | – | 0 |
Actuarial gain (-) / loss (+) on liabilities due to change in financial assumptions | -7 | 0 | -7 | 3 | 1 | 4 |
Actuarial gain (-) / loss (+) on liabilities due to change in demographic assumptions | 0 | – | 0 | -2 | – | -2 |
Actuarial gain (-) / loss (+) on liabilities due to experience | – | – | – | 4 | 0 | 4 |
Gain (-) / loss (+) as result of asset ceiling | 0 | – | 0 | -1 | – | -1 |
Total gain (-) / loss (+) recognized through OCI | -1 | 0 | -2 | 4 | 1 | 5 |
2024 | 2023 | |||||
EUR million | Pension benefits | Other post- employment benefits | Total | Pension benefits | Other post- employment benefits | Total |
Defined benefit obligation at beginning of year | 158 | 30 | 187 | 154 | 29 | 183 |
Employer's current service cost | 1 | 2 | 3 | 1 | 3 | 4 |
Interest cost | 6 | 2 | 8 | 6 | 1 | 7 |
Settlements gain (-) / loss (+) | – | 0 | 0 | 0 | – | 0 |
Actuarial gain (-) / loss (+) due to change in financial assumptions | -7 | 0 | -7 | 3 | 1 | 4 |
Actuarial gain (-) / loss (+) on liabilities due to change in demographic assumptions | 0 | – | 0 | -2 | – | -2 |
Actuarial gain (-) / loss (+) due to experience | 1 | 0 | 1 | 4 | – | 4 |
Benefits paid from the arrangement | -6 | – | -6 | -6 | – | -6 |
Benefits paid direct by employer | -4 | -5 | -9 | -4 | -4 | -8 |
Translation differences | 3 | -1 | 2 | 1 | 0 | 1 |
Defined benefit obligation at end of year | 151 | 27 | 178 | 158 | 30 | 187 |
2024 | 2023 | |
EUR million | Pension and other post-employment benefits total | |
Fair value of assets at beginning of year | 90 | 89 |
Interest income on assets | 4 | 4 |
Return on plan assets excluding interest income | -6 | 0 |
Assets distributed on settlements | – | 0 |
Employer contributions | 12 | 11 |
Benefits paid from the arrangements | -6 | -6 |
Benefits paid direct by employer | -9 | -8 |
Administration expenses paid from the scheme | -1 | -1 |
Translation differences | 3 | 1 |
Fair value of assets at end of year | 85 | 90 |
2024 | 2023 | |||||
Quoted | Unquoted | Total | Quoted | Unquoted | Total | |
Equity securities | 2% | 0% | 2% | 5% | 0% | 5% |
Bonds | 9% | 0% | 9% | 4% | 0% | 4% |
Cash | 7% | 0% | 7% | 6% | 0% | 6% |
Insurance contracts | 0% | 64% | 64% | 0% | 63% | 63% |
Other | 3% | 16% | 19% | 8% | 15% | 23% |
Total | 20% | 80% | 100% | 23% | 77% | 100% |
% | 2024 | 2023 |
Benefit obligation | ||
Discount rate | 4.40% | 4.09% |
Rate of salary increase | 3.10% | 3.37% |
Rate of pension increase | 2.47% | 2.49% |
Expense in income statement | ||
Discount rate | 4.09% | 4.15% |
Rate of salary increase | 3.37% | 3.18% |
Rate of pension increase | 2.49% | 2.58% |
2024 | 2023 | |||
Life expectancy at age of 65 for a male member, who is | currently aged 65 | currently aged 45 | currently aged 65 | currently aged 45 |
Germany | 20.9 | 23.6 | 20.8 | 23.5 |
United States | 20.8 | 22.3 | 20.7 | 22.2 |
United Kingdom | 21.6 | 22.2 | 21.7 | 22.2 |
Canada | 22.1 | 23.1 | 22.1 | 23.1 |
2024 | 2023 | |||||
% | Pension | Other | Total | Pension | Other | Total |
Discount rate | ||||||
Increase of 0.25% | -4.2 | -0.6 | -4.8 | -4.5 | -0.6 | -5.1 |
Decrease of 0.25% | 4.4 | 0.6 | 5.0 | 4.7 | 0.6 | 5.3 |
Salary increase rate | ||||||
Increase of 0.25% | – | 0.2 | 0.2 | – | 0.1 | 0.1 |
Decrease of 0.25% | – | -0.2 | -0.2 | – | -0.1 | -0.1 |
Pension increase rate | ||||||
Increase of 0.25% | 1.3 | n/a | 1.3 | 1.5 | n/a | 1.5 |
Decrease of 0.25% | -1.3 | n/a | -1.3 | -1.5 | n/a | -1.5 |
Medical cost trend | ||||||
Increase of 1.00% | n/a | 0.8 | 0.8 | n/a | 0.9 | 0.9 |
Decrease of 1.00% | n/a | -0.7 | -0.7 | n/a | -0.8 | -0.8 |
Life expectancy | ||||||
Increase of one year | 5.6 | 0.8 | 6.4 | 6.3 | 0.9 | 7.2 |
Decrease of one year | -5.5 | -0.9 | -6.4 | -6.2 | -0.9 | -7.1 |
2024 | 2023 | |||||
In years | Pension | Other | Total | Pension | Other | Total |
On December 31 | 11.7 | 9.1 | 11.3 | 12.0 | 9.2 | 11.6 |
Goodwill and intangible assets with an indefinite useful life Goodwill represents the excess of acquisition costs over the fair value of net identified assets acquired and liabilities assumed and the fair values of previously owned interests and non-controlling interests. Goodwill is allocated to cash generating units (CGUs), which are the reportable segments Aggregates and Minerals. If Metso reorganizes its reporting structure, goodwill is reallocated to the cash generating units affected based on their relative fair values at the time of the reorganization. The carrying value of goodwill is tested with the CGU’s value in use or the CGU’s fair value less costs of disposal, when appropriate. Previously recognized impairment losses on goodwill are not reversed. Intangible assets with an indefinite useful life, such as brand values, are not amortized. Currently, such assets are tested for impairment annually as part of the appropriate CGU tested for impairment. Previous losses on impairment are only reversed to the extent that the new carrying amount of the assets does not exceed the carrying amount the asset would have had, if the asset had not been impaired. |
Intangible assets Intangible assets with a definite useful life, mainly trademarks, patents, licenses, IT software, or acquired order backlog are measured at costs less accumulated amortization and impairment losses. |
Amortization of intangible assets Amortization of intangible assets with a definite useful life is calculated on a straight-line basis over the useful life of the assets as follows: Patents and licenses 5–10 years Computer software 3–5 years Technology 3–20 years Customer relationships 3–20 years Other intangible assets < 1–20 years The probable useful lives of assets are reviewed annually. If material deviations from previous estimates arise, the useful lives are reassessed. The carrying value of intangible assets subject to amortization is reviewed for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. A previously recognized impairment loss may be reversed if there is a significant improvement of the circumstances having initially caused the impairment, but not to a higher value than the carrying amount, that would have been recorded had there been no impairment in prior years. Research and development expenses comprise salaries, administration costs, depreciation, and amortization of property, plant, and equipment and intangible assets, and they are mainly recognized as incurred. When material development costs meet certain capitalization criteria under IAS 38, they are capitalized and amortized during the expected useful life of the underlying technology. |
2024 | |||||
EUR million | Goodwill | Patents and licenses | Capitalized software | Other intangible assets | Goodwill and intangible assets total |
Acquisition cost at beginning of year | 1,138 | 103 | 29 | 1,108 | 2,379 |
Translation differences | -1 | 0 | -1 | 1 | -1 |
Business acquisitions | 28 | 1 | – | 32 | 61 |
Capital expenditure | – | 4 | 9 | 34 | 47 |
Reclassifications | – | -1 | 1 | 0 | 0 |
Other changes | – | -4 | 0 | -9 | -13 |
Acquisition cost at end of year | 1,165 | 103 | 38 | 1,166 | 2,472 |
Accumulated depreciation at beginning of year | – | -81 | -13 | -317 | -411 |
Translation differences | – | 0 | 1 | -1 | 0 |
Business acquisitions | – | 0 | – | – | 0 |
Other changes | – | 2 | 2 | 9 | 13 |
Impairment losses | – | – | 0 | – | 0 |
Amortization charges for the year | – | -3 | -3 | -60 | -66 |
Accumulated depreciation at end of year | – | -82 | -14 | -369 | -465 |
Classified as held for sale | -41 | -4 | 0 | -35 | -80 |
Net book value at end of year | 1,123 | 17 | 24 | 763 | 1,927 |
2023 | |||||
EUR million | Goodwill | Patents and licenses | Capitalized software | Other intangible assets | Goodwill and intangible assets total |
1,128 | 102 | 16 | 1,079 | 2,326 | |
Translation differences | -4 | -2 | 0 | -3 | -9 |
Business acquisitions | 14 | – | 0 | 23 | 37 |
Capital expenditure | – | 4 | 12 | 16 | 32 |
Reclassifications | – | 0 | 3 | -3 | 0 |
Other changes | – | -2 | -2 | -4 | -7 |
Acquisition cost at end of year | 1,138 | 103 | 29 | 1,108 | 2,379 |
Accumulated depreciation at beginning of year | – | -79 | -13 | -261 | -353 |
Translation differences | – | 2 | 0 | 2 | 4 |
Other changes | – | 0 | 2 | 1 | 3 |
Impairment losses | – | 0 | 0 | 0 | 0 |
Amortization charges for the year | – | -4 | -1 | -60 | -65 |
Accumulated depreciation at end of year | – | -81 | -13 | -317 | -411 |
Classified as held for sale | -41 | -3 | 0 | -37 | -81 |
Net book value at end of year | 1,097 | 19 | 16 | 754 | 1,886 |
Goodwill and other intangible assets with an indefinite useful life are tested for impairment annually. The testing of goodwill and other intangible assets with an indefinite useful life is performed at the cash generating unit level. If the carrying value of goodwill exceeds the recoverable value, an impairment is recognized in the income statement under depreciation and amortization. Impairment losses on goodwill are not reversed. Currently, Metso’s management has defined two separate CGUs: Aggregates and Minerals, to which goodwill has been allocated. The recoverable amounts of CGUs are based on value in use calculations, where the estimated future cash flows of CGUs are discounted to their present value. The cash flows are derived from the current year’s last-quarter estimate, the following year’s budget, and the approved strategy for the next four years, beyond which cash flows are calculated using the terminal value method. The terminal growth rate used is based on management’s judgment of average long-term growth. Cash flows include only normal maintenance investments and exclude any potential investments that enhance the CGU’s performance and acquisitions. |
Value in use calculations are inherently judgmental and highly susceptible to change from period to period because they require management to make assumptions about future supply and demand related to its individual business units, future sales prices, profit margins, and achievable efficiency savings over time. The value of benefits and savings expected from the efficiency improvement programs are inherently subjective. As part of the future business assessments, management also evaluates business risks and the possible impact on future cash flows. The possible effects of climate change on Metso’s business is assessed as part of this overall risk assessment. Due to impact of uncertainties related to impact assessment, in the Board of Directors’ report the possible effects of climate change on the company’s operating environment and business have been described in more detail with scenarios. Metso management estimates sales growth rate and EBITDA development for the testing period as well as the discount factor used. The present value of the cash generating units is discounted using the CGU’s weighted average cost of capital (WACC) calculated by Metso. WACC calculations include judgments regarding, among other things, relevant beta factors, peer companies, and capital structure to use. Metso performs impairment testing annually, or whenever there is an indication of impairment. Typical triggering events are material deterioration in the global economy or political environment, observed significant under-performance relative to projected future performance, and significant changes in Metso’s strategy. Expected useful lives and remaining amortization periods for other intangible assets are reviewed annually by management. Acquisitions, disposals, and restructuring actions typically generate a need for reassessment of recoverable amounts and remaining useful lives of assets. When other intangible assets are measured at fair value, less costs of disposal, the selling price, incremental costs, and selling costs need to be estimated by management. Metso assesses the effects of the climate change to the future cash flows while performing the impairment calculations. Upon initial acquisition, Metso uses readily available market values to determine the fair values of acquired net assets to be allocated. However, when this is not possible, the valuation is based on past performance of such an asset and expected future cash generating capacity, which requires management to make estimates and assumptions of the future performance and use of these assets. Any change in Metso’s future business priorities may affect the recoverable amounts. |
EUR million | 2024 | 2023 |
Balance at the beginning of year | 1,097 | 1,128 |
Translation differences | -1 | -4 |
Allocation to discontinued operations | – | -41 |
Acquisitions and disposals | 28 | 14 |
Balance at the end of year | 1,123 | 1,097 |
EUR million | Minerals | Aggregates | Total |
Balance at the end of year | 888 | 235 | 1,123 |
% | Minerals | Aggregates |
Sales growth in four years estimate period | 10.5% | 11.5% |
EBITDA % range in four years estimate period | 19.1%–21.6% | 16.8%–19.0% |
Growth rate in the terminal period | 2.0% | 2.0% |
WACC after tax | 9.0% | 9.0% |
WACC before tax | 11.0% | 10.9% |
% | WACC increase by 2 p.p. | Terminal growth from 2% to 1.5% |
Minerals | -23% | -5% |
Aggregates | -26% | -6% |
Property, plant, and equipment (PPE) are stated at historical cost, less accumulated depreciation, and write-downs, if any. The property, plant, and equipment of acquired subsidiaries are measured at their fair value at the acquisition date. Depreciation is calculated on a straight-line basis over the expected useful lives of the assets as follows: Buildings 15–40 years Machinery and equipment3–20 years Land and water areas are not depreciated. Expected useful lives are reviewed at each balance sheet date and, if they differ significantly from previous estimates, the remaining depreciation periods are adjusted accordingly. Subsequent improvement costs related to an asset are included in the carrying value of such asset or recognized as a separate asset, as appropriate, only when the future economic benefits associated with the costs are probable and the related costs can be separated from normal maintenance costs. Metso reviews tangible assets to be held and used by the company for impairment whenever events and changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Gains and losses on the disposal of property, plant, and equipment and possible impairments are recognized in other operating income and expenses. A previously recognized impairment loss may be reversed if there is a significant improvement in the circumstances having initially caused the impairment, however not to a higher value than the carrying amount that, would have been recorded had there been no impairment in prior years. Metso reviews the climate change related matters which may affect the estimated residual value, expected useful lives of |
Capitalized interests Interest expenses of self-constructed property, plant, and equipment are capitalized in Metso's financial statements. The capitalized interest expense is amortized over the estimated useful life of the underlying asset. |
Government Government grants relating to additions to property, plant, and equipment are deducted from the acquisition cost of the asset and they reduce the depreciation charge of the related asset. Other government grants are deferred and recognized as profit and presented as a net of expenses concurrently with the costs they compensate. |
Acquisitions, disposals and restructuring actions typically generate a need for reassessment of the recoverable values and remaining useful lives of assets. When property, plant, and equipment are valued at fair value less costs of disposal, the selling price, incremental costs and selling costs need to be estimated by management. |
2024 | |||||
EUR million | Land and water areas | Buildings | Machinery and equipment | Assets under construction | PPE total |
Acquisition cost at beginning of year | 39 | 252 | 658 | 91 | 1,041 |
Translation differences | 0 | -1 | -19 | -6 | -26 |
Business acquisitions | – | 0 | 8 | – | 9 |
Capital expenditure | – | 12 | 52 | 88 | 152 |
Reclassifications | 0 | 30 | 22 | -52 | 0 |
Divestments and other changes | -1 | -20 | -69 | -1 | -92 |
Acquisition cost at end of year | 38 | 273 | 652 | 119 | 1,083 |
Accumulated depreciation at beginning of year | – | -121 | -447 | – | -568 |
Translation differences | – | 0 | 13 | – | 13 |
Business acquisitions | – | 0 | -5 | – | -5 |
Divestments and other changes | 0 | 22 | 63 | -2 | 84 |
Write-downs | – | -5 | -4 | – | -9 |
Depreciation charges for the year | – | -11 | -45 | – | -56 |
Accumulated depreciation at end of year | 0 | -115 | -425 | -2 | -541 |
Classification as held for sale | – | – | 1 | 6 | 7 |
Net book value at end of year | 38 | 159 | 228 | 124 | 549 |
2023 | |||||
Acquisition cost at beginning of year | 40 | 233 | 624 | 57 | 954 |
Translation differences | -1 | -4 | -8 | 0 | -12 |
Business acquisitions | 1 | 4 | 4 | – | 8 |
Business disposals | – | 0 | 0 | – | 0 |
Capital expenditure | – | 17 | 57 | 64 | 138 |
Reclassifications | – | 9 | 19 | -28 | 0 |
Divestments and other changes | -1 | -7 | -37 | -2 | -47 |
Acquisition cost at end of year | 39 | 252 | 658 | 91 | 1,041 |
Accumulated depreciation at beginning of year | – | -116 | -431 | – | -547 |
Translation differences | – | 2 | 5 | – | 7 |
Business acquisitions | – | – | -2 | – | -2 |
Business disposals | – | – | 0 | – | 0 |
Divestments and other changes | – | 6 | 33 | – | 39 |
Write-downs | – | -3 | -8 | – | -11 |
Depreciation charges for the year | – | -9 | -45 | – | -54 |
– | -121 | -447 | – | -568 | |
Classification as held for sale | 0 | 0 | 0 | – | -1 |
Net book value at end of year | 39 | 131 | 211 | 91 | 473 |
Metso recognizes a right-of-use asset in the balance sheet for lease agreements which give the right to use the asset during the lease period and the lease liability based on the lease payment obligation. The right-of-use assets and corresponding lease liabilities are recognized at present value. Lease liabilities include the following payments: • fixed payments, less any lease incentives provided by the lessor; • variable payments that depend on an index or a rate; • expected payments under residual value guarantees; • the exercise price of purchase options when exercise is estimated to be reasonably certain; and • penalties for terminating the lease if the lease term reflects the exercise of a termination option. Lease payments are discounted by using the implicit interest rate in the lease to the extent it can be readily determined. Otherwise the currency specific incremental borrowing rate is used as the discount rate. Interest expenses are recognized in the income statement as finance expense. Right-of-use assets are measured at cost. The cost comprises the following: • lease liability; • lease payments made at or before the commencement of the lease, less lease incentives received; • initial direct costs; and • estimated dismantling and restoration costs. Subsequently, right-of-use assets are measured at cost and depreciated over the shorter of estimated useful life and the lease term. Metso’s right-of-use assets consist primarily of operative and office premises in the category of buildings, and cars, operative machinery, and equipment in the category of machinery and equipment. The depreciation of right-of-use assets are recognized in the in the income statement in cost of sales and selling and administrative expenses. Metso uses practical expedients provided for leases. Lease payments for leases of low value assets and short-term leases (shorter than twelve months) are expensed on a straight-line basis. Low value assets comprise IT equipment and other small office items. The lease payments are presented in the cash flow from financing activities, and the interest related to leases are presented in the cash flow from operating activities. Lease payments related to short-term leases and low-value assets are presented in the cash flow from operating activities. Modifications to lease agreements may result in adjustments to existing right-of-use assets and lease liabilities. A gain or loss arising from a modification, or a termination of a lease agreement is recognized as other operating income or other operating expenses in the income statement. A number of lease contracts include extension and termination options. Such options have been taken into account when determining the lease term. A period covered by Metso’s option to extend the lease is included in the lease term if such option is sufficiently likely to be exercised. Further, a period covered by Metso’s option to terminate the lease is included in the lease term if it is reasonably certain that such option will not be exercised. |
The most significant management judgment relates to lease agreements that include extension or early termination options for Metso. For these contracts, management needs to assess the probability of exercising such option, which may significantly affect the estimated length of the lease term, and consequently, the amounts of right-of-use asset and lease liability, as well as the related depreciation and interest expense. Management judgment is also applied in defining the incremental borrowing rate used to calculate the present value of the future lease payments. |
2024 | ||||
EUR million | Land and water areas | Buildings | Machinery and equipment | Right-of-use assets total |
Acquisition cost at beginning of year | 5 | 171 | 36 | 212 |
Translation differences | 0 | 1 | -1 | 0 |
Business acquisitions | – | 10 | – | 10 |
Additions | – | 37 | 14 | 51 |
Derecognition | 0 | -28 | -6 | -34 |
Acquisition cost at end of year | 5 | 192 | 43 | 240 |
Accumulated depreciation at beginning of year | 0 | -81 | -15 | -97 |
Translation differences | 0 | 0 | 0 | 0 |
Accumulated depreciations for derecognized contracts | 0 | 27 | 6 | 33 |
Depreciation charges for the year | 0 | -28 | -10 | -38 |
Accumulated depreciation at end of year | 0 | -83 | -19 | -102 |
Classification as held for sale | – | 0 | -1 | -1 |
Net book value at end of year | 5 | 109 | 23 | 136 |
2023 | ||||
EUR million | Land and water areas | Buildings | Machinery and equipment | Right-of-use assets total |
Acquisition cost at beginning of year | 5 | 167 | 27 | 199 |
Translation differences | 0 | -3 | 0 | -3 |
Business acquisitions | – | 2 | 0 | 2 |
Additions | 0 | 25 | 17 | 41 |
Derecognition | 0 | -19 | -8 | -27 |
Acquisition cost at end of year | 5 | 171 | 36 | 212 |
Accumulated depreciation at beginning of year | 0 | -70 | -14 | -84 |
Translation differences | – | 1 | 0 | 2 |
Accumulated depreciations for derecognized contracts | 0 | 15 | 7 | 22 |
Depreciation charges for the year | 0 | -28 | -9 | -37 |
Accumulated depreciation at end of year | 0 | -81 | -15 | -97 |
Classification as held for sale | – | -1 | 0 | -1 |
Net book value at end of year | 5 | 89 | 21 | 114 |
EUR million | 2024 | 2023 |
Operating profit | ||
Depreciation expense on right-of-use assets | -38 | -37 |
Rental expense relating to leases of low-value assets | -2 | -1 |
Rental expense relating to leases of short-term assets | -6 | -4 |
Finance expenses | ||
Interest expense on lease liabilities | -5 | -5 |
Total amount recognized in profit and loss | -51 | -46 |
EUR million | 2024 | 2023 |
Intangible assets | ||
Intangible assets from acquisitions | -54 | -49 |
Other intangible assets | -12 | -15 |
Property, plant and equipment | ||
Buildings | -11 | -9 |
Machinery and equipment | -45 | -44 |
Right-of-use assets | ||
Land areas | 0 | 0 |
Buildings | -28 | -26 |
Machinery and equipment | -10 | -9 |
Total | -160 | -153 |
EUR million | 2024 | 2023 |
Cost of goods sold | -85 | -88 |
Selling, general and administrative expenses | -75 | -64 |
Total | -160 | -153 |
2024 | 2023 | |||||
EUR million | <1 year | 1–5 years | > 5 years | <1 year | 1–5 years | > 5 years |
Long-term debt | ||||||
Repayments | – | 948 | 360 | – | 813 | 368 |
Interests | – | 123 | 14 | – | 162 | 35 |
Short-term debt | ||||||
Repayments | 165 | – | – | 245 | – | – |
Interests | 52 | – | – | 56 | – | – |
Trade payables | 581 | – | – | 675 | – | – |
Total | 798 | 1,071 | 374 | 976 | 975 | 403 |
EUR million | 2024 | 2023 |
Effects in | ||
Income statement | +/-4.1 | +/-4.4 |
Equity | +/-0.0 | +/-0.0 |
EUR million | 2024 | 2023 |
Operational items | 566 | 529 |
Financial items | 1,140 | 838 |
Hedges | -1,682 | -1,414 |
Total exposure | 25 | -47 |
2024 | 2023 | ||||
EUR million | USD | CHF | Other | Total | Total |
Effects in | |||||
Income statement | +/-17.8 | +/-6.5 | +/-3.6 | +/-14.9 | +-24.7 |
Equity | +/-5.1 | +/-0.0 | +/-1.8 | +/-3.3 | +/-0.3 |
2024 | 2023 | |||||
EUR million | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 |
Assets | ||||||
Financial assets at fair value through profit and loss | ||||||
Derivatives not under hedge accounting | – | 25 | – | – | 33 | – |
Financial assets at fair value through other comprehensive income | ||||||
Derivatives under hedge accounting | – | 18 | – | – | 12 | – |
Total | – | 43 | – | – | 46 | – |
Liabilities | ||||||
Financial liabilities at fair value through profit and loss | ||||||
Derivatives not under hedge accounting | – | 58 | – | – | 36 | – |
Financial liabilities at fair value through other comprehensive income | ||||||
Derivatives under hedge accounting | – | 23 | – | – | 9 | – |
Total | – | 80 | – | – | 45 | – |
Under IFRS 9, Metso classifies financial assets and liabilities in measurement categories according to contractual terms of the cash flows and Metso’s business model to manage the investment at the inception. Reclassification of the categories will be made only if the business model for managing those assets changes. Financial assets and liabilities are classified as non- current items when the remaining maturity exceeds 12 months and as current items when the remaining maturity is 12 months or less. Financial assets and liabilities are classified as follows: At amortized cost |
Financial assets Financial assets valued at amortized cost are investments in debt instruments or receivables, that are held to maturity and for the collection of contractual cash flows, where those cash flows are solely payments of principal and/or interest. These are recognized at fair value, less transaction costs, and subsequently measured at amortized cost using the effective interest method. Interest income is recognized in finance income in the income statement. Financial assets at amortized cost include deposits, commercial papers, interest-bearing loans and receivables, trade receivables, and non-interest-bearing receivables. Impairment is assessed regularly, and when the carrying value exceeds the recoverable value of discounted cash flows, the appropriate impairment is recognized in the income statement. For trade receivables, Metso applies the IFRS 9 simplified method, which requires expected lifetime losses to be recognized from the initial recognition of the receivables. See more in note 2.2. Trade receivables. |
Financial liabilities Issued bonds and withdrawn loan facilities from financial institutions as well as trade and other liabilities are valued at fair value, net transaction costs, and subsequently measured at amortized cost using the effective interest method. Trade and other receivables are non-interest-bearing short-term unpaid debts. The difference between the debt amount, net transaction costs of bonds and loans from financial institutions and the redemption amount is recognized in the income statement as an interest expense over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized in the income statement as other finance expenses over the period of the facility, or, if withdrawal of the loan is probable, as part of the transaction cost. |
At fair value through other comprehensive income (FVOCI) Financial assets Financial assets valued at fair value through other comprehensive income are debt instruments or receivables, which are held for collection of contractual cash flows or held for selling the assets, and where contractual cash flows are solely payments of principal and/or interest. Interest income is recognized in the income statement using the effective interest method. Change in fair value is recognized in other comprehensive income (OCI). At derecognition, the cumulative previously booked gains and losses in OCI are released from equity to the income statement. Metso includes in this measurement category derivatives under hedge accounting, trade receivables for sale, and security investments with a maturity of less than three months. |
At fair value through profit and loss (FVPL) Financial assets Financial assets valued at fair value through profit and loss are equity investments, investments in funds, derivatives used in fair value hedging and derivatives not under hedge accounting. Change in fair value and gain or loss at derecognition will be recognized in the income statement. The change in fair value includes the valuation of impairment risk as well. The fair value of listed equity shares or investments in funds is the quoted market price on the balance sheet date. Unlisted shares are valued at cost less impairment, if any. Financial liabilities Financial liabiities valued at fair value through profit and loss include derivatives used in fair value hedging and derivatives not under hedge accounting. Change in fair value and gains or losses at derecognition are recognized in the income statement. |
2024 | At fair value through profit and loss | At fair value through other comprehensive income | At amortized cost | Carrying value | Fair value |
EUR million | |||||
Non-current financial assets | |||||
Equity investments | 2 | – | – | 2 | 2 |
Derivatives financial instruments | 9 | – | – | 9 | 9 |
Other receivables | – | – | 23 | 23 | 23 |
Total | 11 | – | 23 | 34 | 34 |
Current financial assets | |||||
Trade receivables | – | – | 927 | 927 | 927 |
Trade receivables, for sale | – | 10 | – | 10 | 10 |
Loan receivables | – | – | 2 | 2 | 2 |
Derivatives financial instruments | 24 | 10 | – | 34 | 34 |
Deposits and securities, maturity three months or less | – | – | 43 | 43 | 43 |
Cash on hand and in bank accounts | – | – | 388 | 388 | 388 |
Total | 24 | 20 | 1,360 | 1,404 | 1,404 |
Non-current liabilities | |||||
Bonds 1) | – | – | 892 | 892 | 894 |
Loans from financial institutions | – | – | 408 | 408 | 408 |
Lease liabilities | – | – | 99 | 99 | 99 |
Derivatives financial instruments | 13 | – | – | 13 | 13 |
Other liabilities | – | – | 5 | 5 | 5 |
Total | 13 | – | 1,405 | 1,417 | 1,420 |
Current liabilities | |||||
Current portion of non-current debt | – | – | 128 | 128 | 128 |
Loans from financial institutions | – | – | 7 | 7 | 7 |
Commercial papers | – | – | 29 | 29 | 29 |
Lease liabilities | – | – | 42 | 42 | 42 |
Trade payables | – | – | 581 | 581 | 581 |
Derivatives financial instruments | 58 | 10 | – | 68 | 68 |
Total | 58 | 10 | 788 | 856 | 856 |
2023 | At fair value through profit and loss | At fair value through other comprehensive income | At amortized cost | Carrying value | Fair value |
EUR million | |||||
Non-current financial assets | |||||
Equity investments | 2 | – | – | 2 | 2 |
Derivatives financial instruments | 10 | – | – | 10 | 10 |
Other receivables | – | – | 20 | 20 | 20 |
Total | 12 | – | 20 | 31 | 31 |
Current financial assets | |||||
Trade receivables | – | – | 845 | 845 | 845 |
Trade receivables, for sale | – | 10 | – | 10 | 10 |
Loan receivables | – | – | 6 | 6 | 6 |
Derivatives financial instruments | 23 | 12 | – | 36 | 36 |
Deposits and securities, maturity three months or less | – | – | 194 | 194 | 194 |
Cash on hand and in bank accounts | – | – | 445 | 445 | 445 |
Total | 23 | 22 | 1,490 | 1,535 | 1,535 |
Non-current liabilities | |||||
Bonds 1) | – | – | 886 | 886 | 876 |
Loans from financial institutions | – | – | 281 | 281 | 281 |
Lease liabilities | – | – | 86 | 86 | 86 |
Derivatives financial instruments | 18 | – | – | 18 | 18 |
Other liabilities | – | – | 7 | 7 | 7 |
Total | 18 | – | 1,260 | 1,278 | 1,267 |
Current liabilities | |||||
Current portion of non-current debt | – | – | 203 | 203 | 202 |
Loans from financial institutions | – | – | 39 | 39 | 39 |
Lease liabilities | – | – | 32 | 32 | 32 |
Trade payables | – | – | 675 | 675 | 675 |
Derivatives financial instruments | 19 | 9 | – | 28 | 28 |
Total | 19 | 9 | 950 | 978 | 976 |
Cash and cash equivalents consist of cash on hand and bank accounts, deposits, and interest-bearing investments, which can be readily converted into a known amount of cash. Cash on hand, bank accounts, deposits, and interest-bearing investments are measured at amortized cost. Impairment on cash on hand, bank accounts, deposits, and interest-bearing investments is assessed regularly, but deemed minor because of their high investment grade and short duration. |
EUR million | 2024 | 2023 |
Cash and cash equivalents | ||
Deposits and securities, maturity three months or less | 43 | 194 |
Cash on hand and bank accounts | 388 | 445 |
Cash and cash equivalents total | 431 | 638 |
Liquid funds total | 431 | 638 |
% | 2024 | 2023 |
With maturity three months or less | 9.91% | 5.19% |
Issue of new shares and own shares Transaction costs directly attributable to the issue of new shares or options are shown net of their tax effect in equity as a deduction from the proceeds. Own shares held by the Parent company valued at the historical acquisition price are deducted from equity. Should such shares be subsequently sold or reissued, the consideration received, net of any directly attributable transaction costs and related income tax, is recorded in equity. |
Translation differences The translation differences arising from subsidiary net investments and non-current subsidiary loans without agreed settlement dates are recognized through Other Comprehensive Income (OCI) to cumulative translation adjustments under equity. When Metso hedges the net investment of its foreign subsidiaries with foreign currency loans and with financial derivatives, the translation difference is adjusted by the currency effect of the hedging instruments which has been recorded, net of taxes, through OCI in equity. When a foreign entity is disposed of, the respective accumulated translation difference, including the effect from qualifying hedging instruments, is reversed through OCI and recognized in the consolidated statements of income as part of the gain or loss on the sale. If the equity of a subsidiary denominated in a foreign currency is reduced by a return of capital, the translation difference relating to the reduction is reversed through OCI and recognized in the consolidated statements of income. |
Dividends Dividends proposed by the Board of Directors are not recognized in the financial statements until they have been approved by the shareholders in the Annual General Meeting. |
2024 | 2023 | |
Number of outstanding shares at beginning of year | 826,328,191 | 825,635,935 |
Shares granted from share ownership plans | 1,023,139 | 692,256 |
Number of outstanding shares at end of year | 827,351,330 | 826,328,191 |
Own shares held by the Parent Company | 1,621,110 | 2,644,249 |
Total number of shares at end of year | 828,972,440 | 828,972,440 |
EUR million | Treasury shares | Hedge reserve | Fair value reserve | Legal reserve | Other reserves | Total |
January 1, 2024 | -23 | -3 | 22 | 0 | 1,134 | 1,131 |
Cash flow hedges | ||||||
Fair value gains (+) / losses (-), net of tax | – | -9 | – | – | – | -9 |
Transferred to profit and loss, net of tax | ||||||
Sales | – | 2 | – | – | – | 2 |
Cost of goods sold / Administrative expenses | – | 10 | – | – | – | 10 |
Share-based payments, net of tax | 9 | -8 | 1 | |||
Other | – | – | – | 0 | 2 | 2 |
December 31, 2024 | -13 | 1 | 14 | 0 | 1,136 | 1,137 |
EUR million | Treasury shares | Hedge reserve | Fair value reserve | Legal reserve | Other reserves | Total |
January 1, 2023 | -28 | -1 | 18 | 0 | 1,133 | 1,122 |
Cash flow hedges | ||||||
Fair value gains (+) / losses (-), net of tax | – | -16 | – | – | – | -16 |
Transferred to profit and loss, net of tax | ||||||
Sales | – | 0 | – | – | – | 0 |
Cost of goods sold / Administrative expenses | – | 14 | – | – | – | 14 |
Share-based payments, net of tax | 5 | – | 4 | – | – | 10 |
Other | – | – | – | 0 | 1 | 1 |
December 31, 2023 | -23 | -3 | 22 | 0 | 1,134 | 1,131 |
EUR million | 2024 | 2023 |
Cumulative translation adjustment at beginning of year | -177 | -150 |
Currency translation, change | -37 | -27 |
Cumulative translation adjustment at end of year | -215 | -177 |
Long-term debt is initially recognized at fair value, net of transaction costs incurred, and subsequently measured at amortized cost using the effective interest method. The difference between the debt amount recognized and the redemption amount is recognized in the income statement as an interest expense over the period of the borrowings. The fair value changes in borrowings covered by fair value hedge are, in respect of hedged risk, recognized through profit and loss. A portion of long-term debt is classified as short-term debt when the settlement of the liability is due within 12 months from the balance sheet date. Borrowings are derecognized only if the contractual obligation is discharged, cancelled, or expired. |
Fees paid on the establishment of loan facilities are recognized in the income statement as other finance expenses over the period of the facility, or, if withdrawal of the loan is probable, as part of the transaction cost. Transaction costs arising from modification to debt instruments are included in the carrying value of the debt and amortized using the effective interest method over the remaining period of the modified liability, provided that the new conditions obtained through the modification do not substantially differ from those of the original debt. Modification gains or losses are recognized in the income statement at the time of non-substantial modification. |
2024 | 2023 | |||
EUR million | Carrying values | Fair values | Carrying values | Fair values |
Long-term interest-bearing debt | ||||
Bonds | 892 | 894 | 886 | 876 |
Loans from financial institutions | 408 | 408 | 281 | 281 |
Other long-term debt | – | – | 0 | – |
Total long-term borrowings | 1,300 | 1,303 | 1,167 | 1,157 |
Lease liabilities | 99 | 99 | 86 | 86 |
Total long-term interest-bearing debt | 1,399 | 1,402 | 1,253 | 1,243 |
Short-term borrowings | ||||
Bonds, current portion | – | – | 194 | 193 |
Loans from financial institutions, current portion | 128 | 128 | 9 | 9 |
Loans from financial institutions | 7 | 7 | 39 | 39 |
Commercial papers | 29 | 29 | – | – |
Total short-term borrowings | 165 | 165 | 243 | 241 |
Lease liabilities | 42 | 42 | 32 | 32 |
Total short-term interest-bearing debt | 207 | 207 | 275 | 274 |
Total interest-bearing debt | 1,606 | 1,609 | 1,528 | 1,517 |
2024 | ||||
EUR million | Nominal interest rate | Effective interest rate | Outstanding original loan amount | Outstanding carrying value |
Public bond 2020–2028 | 0.875% | 1.04% | 300 | 287 |
Public bond 2022–2027 | 4.875% | 4.98% | 300 | 302 |
Public bond 2023–2030 | 4.375% | 4.54% | 300 | 303 |
Bonds total | 900 | 892 | ||
2023 | ||||
EUR million | Nominal interest rate | Effective interest rate | Outstanding original loan amount | Outstanding carrying value |
Public bond 2017–2024 | 1.125% | 1.92% | 197 | 194 |
Public bond 2020–2028 | 0.875% | 1.04% | 300 | 282 |
Public bond 2022–2027 | 4.875% | 4.98% | 300 | 300 |
Public bond 2023–2030 | 4.375% | 4.54% | 300 | 304 |
Bonds total | 1,097 | 1,081 |
2024 | ||||
EUR million | Borrowings | Repayments | Interests | Lease liabilities 1) |
2025 | 217 | 165 | 52 | 47 |
2026 | 267 | 218 | 49 | 36 |
2027 | 433 | 393 | 40 | 23 |
2028 | 339 | 318 | 20 | 15 |
2029 | 33 | 19 | 14 | 12 |
Later | 374 | 360 | 14 | 24 |
Total | 1,662 | 1,473 | 189 | 157 |
2023 | ||||
EUR million | Borrowings | Repayments | Interests | Lease liabilities 1) |
2024 | 301 | 245 | 56 | 36 |
2025 | 209 | 158 | 51 | 27 |
2026 | 63 | 18 | 45 | 20 |
2027 | 363 | 318 | 45 | 15 |
2028 | 339 | 318 | 21 | 10 |
Later | 403 | 368 | 35 | 24 |
Total | 1,678 | 1,426 | 252 | 132 |
EUR million | 2024 | 2023 |
Borrowings, non-current 1) | 1,428 | 1,371 |
Lease liabilities 2) | 141 | 118 |
Borrowings, current | 37 | 39 |
Loan receivables | -2 | -6 |
Liquid funds | -431 | -638 |
Net interest-bearing liabilities | 1,173 | 884 |
2024 | Other non-cash movements | |||||
EUR million | Balance at beginning of year | Cash flows | Acquisitions | Translation differences | Balance at end of year | |
Borrowings, non-current | 1,371 | 37 | 5 | 0 | 16 | 1,428 |
Lease liabilities | 118 | -38 | 10 | 1 | 50 | 141 |
Borrowings, current | 39 | -16 | 13 | – | – | 37 |
Loan receivables | -6 | 4 | 0 | 0 | – | -2 |
Liquid funds | -638 | 208 | -1 | – | – | -431 |
Net interest-bearing liabilities | 884 | 195 | 27 | 2 | 66 | 1,173 |
2023 | Other non-cash movements | |||||
EUR million | Balance at beginning of year | Cash flows | Acquisitions | Translation differences | Balance at end of year | |
Borrowings, non-current | 998 | 347 | – | 0 | 25 | 1,371 |
Lease liabilities | 118 | -37 | 2 | -2 | 37 | 118 |
Borrowings, current | 176 | -139 | 4 | -2 | – | 39 |
Loan receivables | -8 | 5 | 0 | 0 | -3 | -6 |
Liquid funds | -601 | -42 | -5 | 10 | – | -638 |
Net interest-bearing liabilities | 684 | 134 | 1 | 5 | 59 | 884 |
Guarantees have been given for obligations arising in the ordinary course of business of Metso Group companies. Guarantees have been given by financial institutions or by Metso Corporation on behalf of Group companies. These guarantees have typically been given to secure a customer’s advance payments or to secure commercial contractual obligations, or given as counter guarantees to banks, which have given commercial guarantees to a Group company. |
The repurchase commitments represent engagements whereby Metso agrees to purchase back equipment sold to customer. The conditions triggering the buy-back obligation are specific to each sales contract. |
EUR million | 2024 | 2023 |
Guarantees | ||
External guarantees given by parent and group companies | 1,470 | 1,608 |
Other commitments | ||
Other contingencies | 0 | 0 |
Total | 1,470 | 1,608 |
Derivatives are initially recognized in the balance sheet at fair value and subsequently measured at their fair value at each balance sheet date. Derivatives are designated at inception either as hedges of firm commitments or forecasted transactions (cash flow hedge) or as hedges of fixed-rate debt (fair value hedge), or as hedges of net investment in a foreign operation (net investment hedge), or as derivatives at fair value through profit and loss that do not meet the hedge accounting criteria. In hedge accounting, Metso documents at inception the relationship between the hedging instruments and the hedged items in accordance with its risk management strategy and objectives. Metso also tests the effectiveness of the hedge relationships at hedge inception, and quarterly, both prospectively and retrospectively. Derivatives are classified as non-current assets or liabilities when the remaining maturities exceed 12 months and as current assets or liabilities when the remaining maturities are less than 12 months. Cash flow Metso applies cash flow hedge accounting to certain interest rate swaps, foreign currency forward contracts and to electricity forwards. Metso designates only the currency component of the foreign currency forward contracts as the hedging instrument to hedge foreign currency-denominated firm commitments. The interest component is recognized under other operating income and expenses, net. The gain or loss relating to the effective portion of the currency forward contracts is recognized in the income statement concurrently with the underlying in the same line item. The effective portion of foreign currency forwards hedging sales and purchases is recognized in the sales and the cost of goods sold, respectively. The gain or loss relating to the effective portion of interest rate swaps hedging variable rate borrowings is reversed from the hedge reserve through other comprehensive income (OCI) to the income statement within financial items concurrently with the recognition of the underlying liability. Both at hedge inception and at each balance sheet date, an assessment is performed to ensure the continued effectiveness of the designated component of the derivatives in offsetting changes in the fair values of the cash flows of hedged items. The effective portion of the derivatives is recognized through OCI in the hedge reserve under equity and reversed through OCI to be recorded through profit and loss concurrently with the underlying transaction being hedged. The gain or loss relating to the ineffective portion of the derivatives is reported under other operating income or expenses, net or under financial items when contracted to hedge variable rate borrowings. Should a hedged transaction no longer be expected to occur, any cumulative gain or loss previously recognized under equity is reversed through OCI to profit and loss. |
Fair value hedge Metso applies fair value hedge accounting to certain fixed-rate loans. The change in fair value of the interest rate swap hedging the loan is recognized through profit and loss concurrently with the change in value of the underlying. Both at inception and quarterly, the effectiveness of the derivatives is tested by comparing their change in fair value against those of the underlying instruments. Derivatives at fair value through profit and loss Certain derivative instruments do not qualify for hedge accounting. These instruments, which have been contracted to mitigate risks arising from operating and financing activities, comprise foreign exchange forward contracts, currency and interest rate options and interest rate swaps. Changes in the fair value of interest rate swaps are recognized in interest expenses. Changes in the fair value of foreign exchange forward contracts are mainly recognized in other operating income and expenses. However, when the foreign exchange forwards have been contracted to mitigate the exchange rate risks arising from foreign currency-denominated cash and from financial instruments used for cash management, the changes in fair value of the derivatives are recognized in finance income and expenses. Changes in the fair value of other derivative instruments, such as commodity instruments, are recognized in other operating income and expenses. Fair value estimation of derivative instruments The fair value of the foreign currency forward contracts is determined using forward exchange market rates at the balance sheet date. The fair value of the interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves. The fair value of options is determined using the Black-Scholes valuation model. |
2024 EUR million | Notional amount | Fair value, assets | Fair value, liabilities | Fair value, net |
Forward exchange contracts 1) | 3,515 | 34 | 68 | -34 |
Interest rate swaps | 505 | 9 | 13 | -4 |
Total | 4,020 | 43 | 80 | -37 |
2023 EUR million | Notional amount | Fair value, assets | Fair value, liabilities | Fair value, net |
Forward exchange contracts 1) | 3,269 | 36 | 26 | 9 |
Interest rate swaps | 605 | 10 | 19 | -9 |
Total | 3,874 | 46 | 45 | 0 |
2024 | 2023 | |||
EUR million | Assets | Liabilities | Assets | Liabilities |
Interest rate swaps - cash flow hedges | 1 | – | – | – |
Interest rate swaps - fair value hedges | 7 | 13 | 8 | 19 |
Interest rate swaps - non-qualifying hedges | 1 | – | 1 | – |
Interest rate swaps total | 9 | 13 | 10 | 19 |
Forward exchange contracts - cash flow hedges | 10 | 10 | 12 | 9 |
Forward exchange contracts - non-qualifying hedges | 24 | 58 | 23 | 17 |
Forward exchange contracts total | 34 | 68 | 36 | 26 |
Derivatives total | 43 | 80 | 46 | 45 |
2024 | |||||
EUR million | 2025 | 2026 | 2027 | 2028 | 2029 and later |
Forward exchange contracts | 3,470 | 45 | – | – | – |
Interest rate swaps | – | – | 150 | 150 | 205 |
2024 EUR million | Notional amount | Fair value, assets | Fair value, liabilities | Fair value, net |
Forward exchange contracts | 751 | 10 | 10 | 0 |
Interest rate swaps | 480 | 8 | 13 | -5 |
Total | 1,231 | 18 | 23 | -5 |
2023 EUR million | Notional amount | Fair value, assets | Fair value, liabilities | Fair value, net |
Forward exchange contracts | 911 | 36 | 26 | 9 |
Interest rate swaps | 580 | 8 | 19 | -11 |
Total | 1,491 | 44 | 45 | -1 |
2024 EUR million | Notional amount | Hedging gain / loss recognized in OCI, net of tax | Amount reclassified from OCI to P/L | Cost of hedging recognized in P/L |
3,515 | 4 | -2 | 2 |
Notional amount of loan, EUR million | Hedge ratio | Maturity date of loan | Fair value of loan, EUR million | Notional amount of interest rate swap | Maturity date of interest rate swap | Fair value of interest rate swap, EUR million |
300 | 50% | December 7, 2027 | -2 | 150 | December 7, 2027 | 2 |
300 | 50% | May 26, 2028 | 11 | 150 | May 26, 2028 | -13 |
300 | 43% | November 22, 2030 | -6 | 130 | November 22, 2030 | 5 |
Ownership | ||
Country | Company name | 2024 |
Algeria | Metso Algerie EURL | 100.0% |
Argentina | Metso Argentina SA | 100.0% |
Australia | Brouwer Engineering Pty Ltd | 100.0% |
Jindex Pty Ltd | 100.0% | |
Metso Australia Ltd | 100.0% | |
Outotec Pty. Ltd. | 100.0% | |
Austria | Metso Austria GmbH | 100.0% |
Brazil | Metso Brazil Indústria e Comércio Ltda | 100.0% |
Outotec Tecnologia Brazil Ltda | 100.0% | |
Bulgaria | Metso Bulgaria EOOD | 100.0% |
Canada | McCloskey International Limited | 100.0% |
Metso Canada Inc. | 100.0% | |
Chile | Metso Chile SpA | 100.0% |
Metso Industrial Services SpA | 100.0% | |
Outotec Servicios Industriales Ltda. | 100.0% | |
China | Metso (Tianjin) Investment Co., Ltd. | 100.0% |
Metso Heavy Industries (Quzhou) Co., Ltd. | 100.0% | |
Metso Heavy Industries (Tianjin) Co., Ltd. | 100.0% | |
Metso Machinery Heavy Industries (Suzhou) Co., Ltd. | 100.0% | |
Metso Outotec New Material Technology (Shanghai) Co., Ltd. | 100.0% | |
Powertrack Machinery (Jiangsu) Co., Ltd | 100.0% | |
Shaorui Heavy Industries (Guangdong) Co. Ltd | 100.0% | |
SISUPER Machinery Heavy Industry (Suzhou) Co Ltd | 100.0% | |
Czechia | Metso Czech Republic s.r.o. | 100.0% |
Ecuador | Metso Ecuador S.A. | 100.0% |
Egypt | Metso Outotec Egypt Company LLC | 100.0% |
Finland | Ab A. Häggblom Oy | 100.0% |
International Project Services Ltd. Oy | 100.0% | |
Metso (Ceramics) Oy | 100.0% | |
Metso Finland Oy | 100.0% | |
Metso Metals Oy | 100.0% | |
Outotec International Holdings Oy | 100.0% | |
Rauma Oy | 100.0% | |
France | Metso France SAS | 100.0% |
Germany | Metso Germany GmbH | 100.0% |
Outotec Deutschland GmbH | 100.0% | |
Outotec FHT GmbH | 100.0% | |
Outotec GmbH & Co KG | 100.0% | |
Outotec Holding GmbH | 100.0% | |
Ghana | Metso Ghana Ltd | 100.0% |
Outotec (Ghana) Limited | 100.0% | |
Greece | Metso Greece IKE | 100.0% |
Hong Kong | Metso International (Hong Kong) Co. Ltd | 100.0% |
India | Metso Outotec India Private Ltd | 100.0% |
Metso Outotec Metals India Private Limited | 100.0% | |
Outotec India Private Ltd. | 100.0% | |
Indonesia | PT Metso Technology Solutions 1) | 99.9% |
PT Outotec Technology Solutions | 100.0% | |
Iran | Outotec Iranian Minerals and Metals Processing 2) | 100.0% |
Italy | Metso Italy Srl | 100.0% |
Japan | Metso Japan Godo-Kaisha | 100.0% |
Kazakhstan | Metso Kazakhstan LLP | 100.0% |
Metso Management LLP | 100.0% |
Ownership | ||
Country | Company name | 2024 |
Lithuania | Metso Global Business Services UAB | 100.0% |
Metso Lithuania UAB | 100.0% | |
Macedonia | Metso Dooel Skopje | 100.0% |
Malaysia | Metso Outotec Malaysia Sdn Bhd | 100.0% |
Morocco | Metso Minerals Morocco LLC | 100.0% |
Metso Outotec Morocco LLC | 100.0% | |
Mexico | Metso Mexico SA de CV | 100.0% |
Mongolia | Metso Mongolia LLC | 100.0% |
Namibia | Metso Technologies Namibia (Pty) Ltd | 100.0% |
Netherlands | Metso Netherlands B.V. | 100.0% |
Outotec B.V. | 100.0% | |
Norway | Metso Norway A/S | 100.0% |
Panama | Metso Central America SA | 100.0% |
Papua New Guinea | Metso PNG Limited | 100.0% |
Peru | Metso Perú SA | 100.0% |
Poland | Metso Poland Sp. z o.o. | 100.0% |
Portugal | Metso Portugal, Lda | 100.0% |
Qatar | Outotec Trading & Contracting WLL 3) | 49.0% |
Russia | OOO Metso Outotec 2) | 100.0% |
Romania | Metso Romania S.R.L. | 100.0% |
Saudi Arabia | Metso LLC | 100.0% |
Outotec Technology Saudi LLC | 100.0% | |
Serbia | Metso d.o.o. Beograd | 100.0% |
Singapore | Metso Outotec Asia Pacific Pte Ltd | 100.0% |
South Africa | Metso South Africa Pty Ltd | 74.9% |
Metso South Africa Sales Pty Ltd | 100.0% | |
Outotec Africa Holdings (Pty) Ltd | 100.0% | |
Outotec Biomin (Pty) Ltd | 100.0% | |
Spain | Metso Espana SA | 100.0% |
Sweden | AB P. J. Jonsson och Söner | 100.0% |
Häggblom Sverige AB | 100.0% | |
Larox AB | 100.0% | |
Metso Outotec Metals Sweden AB | 100.0% | |
Metso Sweden AB | 100.0% | |
Thailand | Metso Outotec (Thailand) Limited | 100.0% |
Türkiye | Metso Maden Teknolojileri Anonim Sirketi | 100.0% |
United Arab Emirates | Metso DMCC | 100.0% |
United Kingdom | McCloskey International Ltd | 100.0% |
Metso Captive Insurance Limited | 100.0% | |
Metso UK Ltd | 100.0% | |
Tedd Engineering Ltd | 100.0% | |
Tesab Engineering Ltd | 100.0% | |
United States | DZ Grinders LLC | 100.0% |
Metso McCloskey USA LLC | 100.0% | |
Metso USA Inc | 100.0% | |
Outotec USA Inc | 100.0% | |
Screen Machine Industries LLC | 100.0% | |
Uzbekistan | FE Metso LLC | 100.0% |
Vietnam | Metso Vietnam Co. Ltd | 100.0% |
Zambia | Metso Zambia Ltd | 100.0% |
Outotec (Zambia) Limited | 100.0% |
The equity method of accounting is used for investments in associated companies in which the investment provides Metso the ability to exercise significant influence over the operating and financial policies of the investee company. Such influence is presumed to exist for investments in companies in which Metso’s direct or indirect shareholding is between 20 and 50 percent of the voting rights or if Metso is able to exercise significant influence. Investments in associated companies are initially recognized at cost after which Metso’s share of their post-acquisition retained profits and losses is included as part of investments in associated companies in the consolidated balance sheets. Under the equity method, the share of profits and losses of associated companies and joint ventures is presented separately in the consolidated statements of income. A joint arrangement is an arrangement in which two or more parties have joint control. Within Metso, all the joint arrangements are joint ventures. Investments in joint ventures in which Metso has the power to jointly govern the financial and operating activities of the investee company are accounted for using the equity method. Investments in joint ventures in which Metso has control over the financial and operating activities of the investee company are fully consolidated and a non- controlling interest is recognized. |
2024 | 2023 | |||
Company | Ownership | Carrying value | Ownership | Carrying value |
Enefit Outotec Technology Oü | 40.0% | 3 | 40.0% | 3 |
Sidvin Outotec Engineering Private Ltd | 25.1% | 1 | 25.1% | 1 |
Total | 3 | 3 | ||
EUR million | 2024 | 2023 |
Investments in associated companies and joint ventures | ||
Acquisition cost as of January 1 | 2 | 10 |
Liquidation | – | -7 |
Acquisition cost as of December 31 | 2 | 2 |
Equity adjustments in investments in associated companies and joint ventures | ||
Equity adjustments as of January 1 | 1 | -3 |
Share of results | 1 | 2 |
Dividends received | -1 | – |
Liquidation | – | 3 |
Equity adjustments as of December 31 | 1 | 1 |
Shares classified as held for sale | -3 | -3 |
Carrying value at end of year | 1 | 1 |
EUR million | 2024 | 2023 |
Assets | 4 | 4 |
Liabilities | 0 | 0 |
Sales | 2 | 2 |
Profit | 1 | 2 |
EUR million | 2024 | 2023 |
Sales | 1 | 0 |
Purchases | -2 | -1 |
Receivables | 0 | – |
Payables | – | – |
EUR million | 2024 |
Fixed assets | 45 |
Inventory | 23 |
Receivables | 3 |
Liquid funds | 1 |
Liabilities | -40 |
Net identifiable assets acquired at fair value | 32 |
Goodwill | 28 |
Purchase consideration | 60 |
EUR million | 2024 |
Cash consideration paid | -60 |
Cash and cash equivalents acquired | 1 |
Net cash flow for the year | -60 |
Cash considerations, total | -60 |
EUR million | 2023 |
Fixed assets | 32 |
Inventory | 10 |
Receivables | 7 |
Liquid funds | 5 |
Liabilities | -29 |
Net identifiable assets acquired at fair value | 26 |
Goodwill | 14 |
Purchase consideration | 40 |
EUR million | 2023 |
Cash consideration paid | -34 |
Cash and cash equivalents acquired | 5 |
Net cash flow for the year | -29 |
Contingent consideration | -6 |
Cash considerations, total | -35 |
Discontinued operations is a component of an entity that either has been disposed of or is classified as held for sale and represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations, or is a subsidiary acquired exclusively with a view to resale. The result from discontinued operations is shown separately in the consolidated statement of income, and the comparative figures are restated accordingly. |
Non-current assets and assets and liabilities related to discontinued operations are classified as held for sale if their carrying amounts are expected to be recovered primarily through sale rather than through continuing use. Classification as held for sale requires that the following criteria are met: the sale is highly probable, the asset is available for immediate sale in its present condition – subject to usual and customary terms, the management is committed to the sale, and the sale is expected to be completed within one year from the date of classification. |
Prior to classification as held for sale, the assets or assets and liabilities related to a disposal group in question are measured according to the respective IFRS standards. From the date of classification, non-current assets held for sale are measured at the lower of the carrying amount and the fair value, less costs to sell, and the recognition of depreciation and amortization is discontinued. Non-current assets held for sale are presented in the statement of financial position separately from other items. The comparative figures for statement of financial position are not restated. |
2024 | 2024 | 2024 | |
EUR million | Continuing operations | Discontinued operations | Metso total |
Sales | 4,863 | 214 | 5,076 |
Cost of sales | -3,237 | -163 | -3,400 |
Gross profit | 1,626 | 51 | 1,677 |
Selling and marketing expenses | -426 | -19 | -445 |
Administrative expenses | -356 | -13 | -369 |
Research and development expenses | -103 | -6 | -109 |
Other income and expenses, net | -14 | -244 | -257 |
Share of results of associated companies | 0 | 1 | 1 |
Operating profit | 727 | -230 | 497 |
Finance income and expenses, net | -80 | – | -80 |
Profit before taxes | 648 | -230 | 417 |
Income taxes | -162 | 74 | -88 |
Profit for the period | 486 | -156 | 330 |
Profit attributable to | |||
Shareholders of the Parent Company | 485 | -156 | 329 |
Non-controlling interests | 1 | – | 1 |
Earnings per share, EUR | 0.59 | -0.19 | 0.40 |
2024 | 2024 | 2024 | |
EUR million | Continuing operations | Discontinued operations | Metso total |
Non-current assets | 2,913 | 92 | 3,005 |
Inventories | 1,900 | 58 | 1,958 |
Trade and other receivables | 1,496 | 125 | 1,621 |
Cash and cash equivalents | 431 | – | 431 |
Total assets | 6,739 | 276 | 7,015 |
Non-current liabilities | 1,739 | 30 | 1,769 |
Current liabilities | 2,451 | 184 | 2,635 |
Total liabilities | 4,190 | 214 | 4,405 |
2024 | 2024 | 2024 | |
EUR million | Continuing operations | Discontinued operations | Metso total |
Profit for the period | 486 | -156 | 330 |
Adjustments to profit for the period | 441 | -76 | 365 |
Change in net working capital | -64 | -55 | -119 |
Cash flow from operations | 864 | -287 | 576 |
Financing items, net | -62 | – | -62 |
Income taxes paid | -180 | -2 | -183 |
Net cash flow from operating activities | 622 | -290 | 332 |
Net cash flow from investing activities | -225 | 1 | -224 |
Net cash flow from financing activities | -315 | 0 | -315 |
Net change in liquid funds | 82 | -288 | -207 |
2023 | 2023 | 2023 | |
EUR million | Continuing operations | Discontinued operations | Metso total |
Sales | 5,390 | 357 | 5,747 |
Cost of sales | -3,687 | -301 | -3,987 |
Gross profit | 1,703 | 56 | 1,759 |
Selling and marketing expenses | -438 | -12 | -449 |
Administrative expenses | -372 | -17 | -389 |
Research and development expenses | -66 | -9 | -75 |
Other income and expenses, net | -25 | 2 | -23 |
Share of results of associated companies | 0 | 1 | 2 |
Operating profit | 805 | 21 | 825 |
Finance income and expenses, net | -80 | – | -80 |
Profit before taxes | 724 | 21 | 745 |
Income taxes | -187 | -12 | -199 |
Profit for the period | 537 | 8 | 546 |
Profit attributable to | |||
Shareholders of the Parent Company | 535 | 8 | 543 |
Non-controlling interests | 2 | – | 2 |
Earnings per share, EUR | 0.65 | 0.01 | 0.66 |
2023 | 2023 | 2023 | |
EUR million | Continuing operations | Discontinued operations | Metso total |
Non-current assets | 2,744 | 97 | 2,841 |
Inventories | 1,951 | 53 | 2,004 |
Trade and other receivables | 1,585 | 87 | 1,673 |
Cash and cash equivalents | 638 | – | 638 |
Total assets | 6,919 | 238 | 7,156 |
Non-current liabilities | 1,614 | 33 | 1,647 |
Current liabilities | 2,756 | 136 | 2,892 |
Total liabilities | 4,369 | 169 | 4,539 |
2023 | 2023 | 2023 | |
EUR million | Continuing operations | Discontinued operations | Metso total |
Profit for the period | 537 | 8 | 546 |
Adjustments to profit for the period | 420 | 32 | 453 |
Change in net working capital | -372 | -76 | -449 |
Cash flow from operations | 585 | -35 | 550 |
Financing items, net | -17 | – | -17 |
Income taxes paid | -227 | -4 | -231 |
Net cash flow from operating activities | 341 | -39 | 302 |
Net cash flow from investing activities | -180 | 2 | -178 |
Net cash flow from financing activities | -76 | – | -76 |
Net change in liquid funds | 84 | -37 | 47 |
Average rates | Year-end rates | ||||
2024 | 2023 | 2024 | 2023 | ||
USD | (US dollar) | 1.0826 | 1.0816 | 1.0389 | 1.1050 |
SEK | (Swedish krona) | 11.4226 | 11.4563 | 11.4590 | 11.0960 |
GBP | (Pound sterling) | 0.8469 | 0.8702 | 0.8292 | 0.8691 |
CAD | (Canadian dollar) | 1.4820 | 1.4606 | 1.4948 | 1.4642 |
BRL | (Brazilian real) | 5.8500 | 5.4128 | 6.4253 | 5.3618 |
CNY | (Chinese yuan) | 7.7793 | 7.6589 | 7.5833 | 7.8509 |
AUD | (Australian dollar) | 1.6424 | 1.6297 | 1.6772 | 1.6263 |
EUR million | 2024 | 2023 |
Audit services | -3.7 | -3.8 |
Assurance services | -0.4 | 0.0 |
Tax services | -0.1 | 0.0 |
Other services | 0.0 | -0.1 |
Total | -4.3 | -3.9 |
EUR | Note | 2024 | 2023 |
Sales | 24,505,603.90 | 24,754,086.88 | |
Other operating income | 2 | 336,788.03 | 3,493,569.16 |
Personnel expenses | 3 | -23,687,086.59 | -25,636,945.07 |
Depreciation and amortization | 4 | -193,391.48 | -371,464.80 |
Other operating expenses | 5 | -23,648,007.85 | -30,092,851.61 |
Operating profit / loss | -22,686,093.99 | -27,853,605.44 | |
Financial income and expenses, net | 7 | 116,227,188.84 | 160,876,187.53 |
Profit before appropriations and taxes | 93,541,094.85 | 133,022,582.09 | |
Appropriations | 8 | 166,000,000.00 | 260,000,000.00 |
Profit before taxes | 259,541,094.85 | 393,022,582.09 | |
Income taxes | 9 | ||
Current tax expense | -28,852,161.65 | -43,473,972.16 | |
Change in deferred taxes | 99,078.24 | -299,040.60 | |
Profit for the year | 230,788,011.44 | 349,249,569.33 |
Assets | |||
EUR | Note | 2024 | 2023 |
Non-current assets | |||
Intangible assets | 10 | 233,793.55 | 421,471.02 |
Tangible assets | 10 | 218,363.42 | 225,904.91 |
Investments | 11 | ||
Shares in Group companies | 1,250,466,871.28 | 1,245,231,528.75 | |
Other investments | 897,757,775.84 | 510,594,929.87 | |
Total non-current assets | 2,148,676,804.09 | 1,756,473,834.55 | |
Current assets | |||
Long-term receivables | 13 | 9,151,779.39 | 9,786,290.55 |
Short-term receivables | 13 | 1,078,783,840.99 | 1,110,398,075.46 |
Securities | – | 159,000,000.00 | |
Bank and cash | 205,060,310.91 | 248,911,504.97 | |
Total current assets | 1,292,995,931.29 | 1,528,095,870.98 | |
Total assets | 3,441,672,735.38 | 3,284,569,705.53 | |
Shareholders' equity and liabilities | |||
EUR | Note | 2024 | 2023 |
Shareholders' equity | 14 | ||
Share capital | 107,186,442.52 | 107,186,442.52 | |
Share premium fund | 20,180,000.00 | 20,180,000.00 | |
Treasury shares | -13,380,644.79 | -22,514,857.99 | |
Invested non-restricted equity fund | 435,804,850.76 | 434,272,229.86 | |
Reserve for cash hedges | 482,261.00 | – | |
Retained earnings | 432,674,350.92 | 381,257,274.03 | |
Profit for the year | 230,788,011.44 | 349,249,569.33 | |
Total shareholders' equity | 1,213,735,271.85 | 1,269,630,657.75 | |
Liabilities | |||
Long-term liabilities | 15 | 1,302,408,965.27 | 1,184,800,070.66 |
Current liabilities | 16 | 925,528,498.26 | 830,138,977.12 |
Total liabilities | 2,227,937,463.53 | 2,014,939,047.78 | |
Total shareholders' equity and liabilities | 3,441,672,735.38 | 3,284,569,705.53 | |
EUR thousand | 2024 | 2023 |
Cash flows from operating activities | ||
Profit for the year | 230,788 | 349,250 |
Adjustments to profit for the year | ||
Depreciation and amortization | 193 | 370 |
Impairment | – | 5,002 |
Unrealized exchange gains and losses | 1,026 | -3,741 |
Financial income and expenses | -116,227 | -166,076 |
Gains / losses on sale | -7 | -3,197 |
Group contributions | -166,000 | -260,000 |
Taxes | 28,753 | 43,773 |
Other non-cash items | 2,816 | 3,194 |
Total adjustments to profit for the year | -249,444 | -380,674 |
Increase / decrease in short-term non-interest-bearing trade receivables | -28,084 | 25,670 |
Increase / decrease in short-term non-interest-bearing debt | 57,804 | -45,869 |
Change in working capital | 29,720 | -20,199 |
Interest paid | -66,495 | -68,264 |
Other financial expenses paid | -14,673 | -11,988 |
Dividends received | 122,161 | 186,118 |
Interest received | 15,942 | 5,183 |
Income taxes paid | -43,021 | -54,682 |
Net cash provided by operating activities | 24,977 | 4,744 |
Cash flows from investing activities | ||
Divestments in tangible and intangible assets | 8 | – |
Investments in subsidiary shares | -5,235 | -5,632 |
Decrease in subsidiary shares | – | 3,203 |
Long-term loans granted | -785,757 | -886,908 |
Repayments of long-term loans | 343,877 | 640,134 |
Short-term loans granted | -532,715 | -667,730 |
Repayments of short-term loans | 563,641 | 536,139 |
Withdrawals and repayments of short-term loans, net | -53,664 | 9,112 |
Purchase of other investments | 159,000 | -109,000 |
Interest received from investments | 60,382 | 47,632 |
Net cash used in investing activities | -250,463 | -433,049 |
Cash flows from financing activities | ||
Invested non-restricted equity fund | 603 | – |
Sales from treasury shares to subsidiaries | 7,850 | 4,228 |
Changes of short term loans, net | 29,464 | -79,643 |
Withdrawal of long-term loans | 374,314 | 347,288 |
Repayments of long-term loans | -336,593 | – |
Dividends paid | -298,012 | -247,748 |
Change in Group pool accounts | 144,009 | 146,100 |
Group contributions | 260,000 | 200,000 |
Net cash provided by / used in financing activities | 181,635 | 370,224 |
Net increase / decrease in bank and cash | -43,851 | -58,081 |
Bank and cash on Jan 1 | 248,912 | 306,993 |
Bank and cash on Dec 31 | 205,060 | 248,912 |
EUR thousand | 2024 | 2023 |
Gain on disposal of subsidiary shares | – | 3,197 |
Gain on sale of fixed assets | 7 | – |
Other | 330 | 296 |
Total | 337 | 3,494 |
EUR thousand | 2024 | 2023 |
Salaries and wages | -20,584 | -21,615 |
Pension costs | -2,706 | -3,507 |
Other indirect employee costs | -397 | -516 |
Total | -23,687 | -25,637 |
EUR thousand | ||
Chief Executive Officer | -4,462 | -4,503 |
Board members | -1,022 | -966 |
Total | -5,484 | -5,469 |
2024 | 2023 | |
Personnel at end of year | 145 | 143 |
Average number of personnel during the year | 144 | 138 |
EUR thousand | 2024 | 2023 |
Capitalized software | -173 | -204 |
Other intangible assets | -14 | -132 |
Machinery and equipment | -6 | -35 |
Total | -193 | -371 |
EUR thousand | 2024 | 2023 |
Foreign exchange losses | -1,081 | -5,568 |
Other | -22,567 | -24,525 |
Total | -23,648 | -30,093 |
EUR thousand | 2024 | 2023 |
Audit | -578 | -840 |
Assurance services | -436 | – |
Other services | – | -54 |
Total | -1014 | -894 |
EUR thousand | 2024 | 2023 |
Dividends received from | ||
Group companies | 122,161 | 186,118 |
Total | 122,161 | 186,118 |
Interest income from investments from | ||
Group companies | 60,382 | 47,627 |
Others | – | 5 |
Total | 60,382 | 47,632 |
Other interest and financial income from | ||
Group companies | 34,796 | 33,633 |
Others | 12,373 | 13,550 |
Interest and financial income, total | 229,712 | 280,933 |
Interest expenses to | ||
Group companies | -13,137 | -15,812 |
Others | -84,931 | -86,339 |
Other financial expenses | ||
Fair value change in derivatives | -743 | -720 |
Exchange rate differences | -7,929 | -4,710 |
Impairment loss on non-current assets | – | -5,198 |
Others | -6,745 | -7,278 |
Interest and other financial expenses, total | -113,485 | -120,057 |
Financial income and expenses, net | 116,227 | 160,876 |
EUR thousand | 2024 | 2023 |
Group contributions received | 166,000 | 260,000 |
EUR thousand | 2024 | 2023 |
Income taxes on operating activities | -29,458 | -43,125 |
Income taxes for prior years | 606 | -349 |
Change in deferred taxes | 99 | -299 |
Total | -28,753 | -43,773 |
2024 | |||||||||
EUR thousand | Patents and licenses | Capitalized software | Other intangible assets | Intangible assets total | Land areas | Buildings and structures | Machinery and equipment | Tangible assets total | Total |
Acquisition cost Jan 1 | 1,539 | 2,374 | 289 | 4,203 | 156 | 733 | 334 | 1,223 | 5,425 |
Decreases | – | – | – | – | – | – | -201 | -201 | -201 |
Acquisition cost Dec 31 | 1,539 | 2,374 | 289 | 4,203 | 156 | 733 | 133 | 1,022 | 5,225 |
Accumulate d depreciatio n Jan 1 | -1,539 | -1,967 | -275 | -3,781 | – | -733 | -264 | -997 | -4,778 |
Accumulate d depreciatio n of decreases | – | – | – | – | – | – | 199 | 199 | 199 |
Depreciatio n for the period | – | -173 | -14 | -188 | – | – | -6 | -6 | -193 |
Accumulate d depreciation Dec 31 | -1,539 | -2,140 | -289 | -3,969 | – | -733 | -70 | -804 | -4,772 |
Net carrying value Dec 31 | – | 234 | – | 234 | 156 | – | 63 | 218 | 452 |
2023 | |||||||||
EUR thousand | Patents and licenses | Capitalized software | Other intangible assets | Intangible assets total | Land areas | Buildings and structures | Machinery and equipment | Tangible assets total | Total |
Acquisition cost Jan 1 | 1,539 | 2,374 | 1,150 | 5,063 | 156 | 733 | 974 | 1,863 | 6,926 |
Decreases | – | – | -860 | -860 | – | – | -641 | -641 | -1,501 |
Acquisition cost Dec 31 | 1,539 | 2,374 | 289 | 4,203 | 156 | 733 | 334 | 1,223 | 5,425 |
Accumulate d depreciation Jan 1 | -1,539 | -1,780 | -986 | -4,305 | – | -733 | -869 | -1,602 | -5,908 |
– | – | 859 | 859 | – | – | 641 | 641 | 1,500 | |
Depreciatio n for the period | – | -187 | -148 | -335 | – | – | -35 | -35 | -370 |
Accumulate d depreciation Dec 31 | -1,539 | -1,967 | -275 | -3,781 | – | -733 | -264 | -997 | -4,778 |
Net carrying value Dec 31 | – | 407 | 14 | 421 | 156 | – | 70 | 226 | 647 |
2024 | ||||
EUR thousand | Shares in Group companies | Other shares | Receivables from Group companies | Other investments total |
Acquisition cost at Jan 1 | 1,245,232 | 594 | 510,001 | 510,595 |
Additions | 5,235 | – | 1,122,925 | 1,122,925 |
Decreases | – | – | -735,762 | -735,762 |
Net carrying value at Dec 31 | 1,250,467 | 594 | 897,164 | 897,758 |
2023 | ||||
EUR thousand | Shares in Group companies | Other shares | Receivables from Group companies | Other investments total |
Acquisition cost at Jan 1 | 1,244,705 | 594 | 346,578 | 347,172 |
Additions | 10,632 | – | 803,306 | 803,306 |
Decreases | -10,105 | – | -639,884 | -639,884 |
Net carrying value at Dec 31 | 1,245,232 | 594 | 510,001 | 510,595 |
Subsidiary | Domicile | Ownership, % |
International Project Services Ltd. Oy | Finland | 44.50 |
Metso Canada Inc. | Canada | 100.00 |
Metso Captive Insurance Limited | United Kingdom | 100.00 |
Metso Chile S.A. | Chile | 24.75 |
Metso Finland Oy | Finland | 100.00 |
Metso France SAS | France | 100.00 |
Metso Metals Oy | Finland | 100.00 |
Metso Mexico SA de CV | Mexico | 10.10 |
Metso Outotec Morocco LLC | Morocco | 100.00 |
Metso Outotec New Material Technology (Shanghai) Co., Ltd. | China | 100.00 |
Metso Ecuador S.A. | Ecuador | 99.90 |
Metso Perú SA | Peru | 10.18 |
Metso Poland Sp. z o.o. | Poland | 46.30 |
Metso South Africa Pty Ltd | South-Africa | 15.30 |
Metso USA Inc | United States | 100.00 |
Outotec Africa Holdings (Pty) Ltd | South-Africa | 100.00 |
Outotec Holding GmbH | Germany | 100.00 |
Outotec International Holdings Oy | Finland | 100.00 |
Rauma Oy | Finland | 100.00 |
EUR thousand | 2024 | 2023 |
Deferred tax asset | 193 | 94 |
Derivatives | 8,959 | 9,692 |
Long-term receivables total | 9,152 | 9,786 |
EUR thousand | 2024 | 2023 |
Trade receivables from | ||
Group companies | 50,179 | 42,422 |
Others | 1,445 | – |
Total | 51,624 | 42,422 |
Loan receivables from | ||
Group companies | 745,854 | 706,173 |
Total | 745,854 | 706,173 |
Prepaid expenses and accrued income from | ||
Group companies | 227,969 | 311,237 |
Others | 51,634 | 50,021 |
Total | 279,603 | 361,257 |
Other receivables | ||
VAT receivable | 1,676 | 6 |
Other receivables | 27 | 539 |
Total | 1,702 | 545 |
Short-term receivables total | 1,078,784 | 1,110,398 |
EUR thousand | 2024 | 2023 |
Prepaid expenses and accrued income from Group companies | ||
Group contribution receivables | 166,000 | 260,000 |
Accrued interest income | 34,289 | 22,615 |
Accrued derivatives | 26,682 | 24,408 |
Other accrued items | 997 | 4,214 |
Total | 227,969 | 311,237 |
Prepaid expenses and accrued income from others | ||
Accrued interest income | – | 627 |
Accrued derivatives | 33,500 | 35,808 |
Other accrued items | 18,134 | 13,585 |
Total | 51,634 | 50,021 |
EUR thousand | 2024 | 2023 |
Share capital on Jan 1 | 107,186 | 107,186 |
Share capital on Dec 31 | 107,186 | 107,186 |
Share premium fund on Jan 1 | 20,180 | 20,180 |
Share premium fund on Dec 31 | 20,180 | 20,180 |
Treasury shares on Jan 1 | -22,515 | -27,935 |
Change | 9,134 | 5,420 |
Treasury change on Dec 31 | -13,381 | -22,515 |
Invested non-restricted equity fund on Jan 1 | 434,272 | 433,377 |
Change | 1,533 | 895 |
Invested non-restricted equity fund on Dec 31 | 435,805 | 434,272 |
Reserve for cash hedges on Jan 1 | – | – |
Change | 482 | – |
Reserve for cash hedges on Dec 31 | 482 | – |
Retained earnings on Jan 1 | 730,507 | 629,156 |
Dividend distribution | -297,832 | -247,898 |
Retained earnings on Dec 31 | 432,674 | 381,257 |
Profit for the year | 230,788 | 349,250 |
Total shareholders' equity on Dec 31 | 1,213,735 | 1,269,631 |
EUR thousand | 2024 | 2023 |
Invested non-restricted equity fund | 435,805 | 434,272 |
Treasury shares | -13,381 | -22,515 |
Retained earnings | 432,674 | 381,257 |
Profit for the year | 230,788 | 349,250 |
Total distributable funds | 1,085,887 | 1,142,264 |
EUR thousand | 2024 | 2023 |
Bonds | 892,165 | 886,344 |
Loans from financial institutions | 397,540 | 280,909 |
Deferred tax liability | 121 | – |
Derivatives | 12,584 | 17,547 |
Total | 1,302,409 | 1,184,800 |
EUR thousand | 2024 | 2023 |
Bonds | 300,000 | 300,000 |
Loans from financial institutions | 50,000 | 68,182 |
Total | 350,000 | 368,182 |
EUR thousand | 2024 | 2023 |
Current portion of long-term liabilities | ||
Bonds | – | 195,349 |
Loans from financial institutions | 127,682 | 10,465 |
Total | 127,682 | 205,814 |
Short-term interest-bearing debt | ||
Loans from financial institutions | 29,464 | – |
Group pool accounts | 369,639 | 239,470 |
Total | 399,102 | 239,470 |
Trade payables to | ||
Group companies | 28,310 | 23,878 |
Others | 2,466 | 3,123 |
Total | 30,776 | 27,001 |
Accrued expenses and deferred income to | ||
Group companies | 33,292 | 37,484 |
Others | 80,005 | 51,871 |
Total | 113,298 | 89,355 |
Other short-term non-interest-bearing debt to | ||
Group companies | 253,576 | 267,148 |
Others | 1,095 | 1,351 |
Total | 254,670 | 268,499 |
Short-term liabilities total | 925,528 | 830,139 |
Short-term liabilities to Group companies total | 684,817 | 567,980 |
EUR thousand | 2024 | 2023 |
Accrued expenses and deferred income to Group companies | ||
Accrued interest expenses | 7,682 | 1,369 |
Accrued derivatives | 25,126 | 35,193 |
Other accrued items | 484 | 923 |
Total | 33,292 | 37,484 |
Accrued expenses and deferred income to others | ||
Accrued interest expenses | 7,599 | 7,799 |
Accrued derivatives | 67,664 | 26,269 |
Accrued salaries, wages and social costs | 4,535 | 6,977 |
Other accrued items | 208 | 10,826 |
Total | 80,005 | 51,871 |
EUR thousand | 2024 | 2023 |
Guarantees on behalf of group companies | 1,278,183 | 1,373,689 |
EUR thousand | 2024 | 2023 |
Payments in the following year | 224 | 127 |
Payments later | 10,775 | 133 |
Total | 10,998 | 260 |
EUR thousand | 2024 | 2023 |
Net fair values | ||
Contracts made with financial institutions | ||
Foreign exchange forward contracts | -33,807 | 9,487 |
Interest rate swaps | -3,625 | -9,229 |
Contracts made with subsidiaries | ||
Foreign exchange forward contracts | 2,361 | -10,962 |
Total | -35,071 | -10,704 |
Nominal values | ||
Contracts made with financial institutions | ||
Foreign exchange forward contracts | 3,515,028 | 3,268,945 |
Interest rate swaps | 505,000 | 605,000 |
Contracts made with subsidiaries | ||
Foreign exchange forward contracts | 2,403,483 | 2,748,165 |
Total | 6,423,511 | 6,622,110 |
Account book | Voucher class |
General journal and general ledger | |
Bank vouchers | 16,26,43 / DZ, KZ, SB |
Sales invoices | RV,10,11,17 / DR, DA, NZ |
Purchase invoices | KR,20,27,69 / KR, KA, NZ, SR |
Payroll accounting with vouchers | 33 / 21 |
Journal entries | 01,02,03,04,05,10,21,22,23,30,32,39,54,55,60,64,76,79 / AA, AF, DA, 21, 22, 23, AB, 32, M6, S5, SR, UE |
Journal entries | 34,35, 36, SR |
Notes vouchers |
Key Audit Matter | How our audit addressed the Key Audit Matter |
Revenue recognition over time, including valuation of project receivables and project loss provisions The accounting principles and disclosures about revenue, project receivables and project loss provisions are included in Note 1.2, Note 2.2 and Note 2.6. Metso delivers to its customers customized engineered solutions, where the signing of a delivery contract and the final acceptance of a delivery by the customer may take place in different financial periods. In accordance with Metso’s accounting principles, revenue from such projects is recognized over time. The recognition of revenue and the estimation of the outcome of a project require significant management judgment, in particular with respect to estimating the stage of completion and cost to complete. Significant judgment is also required to assess the recoverability of project receivables and particularly to determine the project loss provision when it is expected that the total costs will exceed the total revenues from the delivery contract. Based on above, revenue recognition over time, including valuation of project receivables and project loss provisions, was a key audit matter. This matter was also a significant risk of material misstatement referred to in EU Regulation No 537/2014, point (c) of Article 10(2). | Our audit procedures to address the risk of material misstatement in respect of the revenue recognition over time, including valuation of project receivables and project loss provisions, included, among others: • Assessment of the Group’s accounting policies over revenue recognition over time and valuation of project receivables and project loss provisions. • Inspection of the project documentation such as contracts, legal opinions and other written communication. • Evaluation of financial development and current status of projects by • analyzing the changes in assumptions relating to estimated revenues and costs, receipts of project payments and loss provisions, and • discussions with different levels of the organization including project management and group management. • Evaluation of the appropriateness of the Group’s disclosures in respect of revenue recognition over time and valuation of projects receivables and project loss provisions. |
Key Audit Matter | How our audit addressed the Key Audit Matter |
Valuation of goodwill The accounting principles and disclosures about goodwill are included in Note 3.1. As of balance sheet date December 31, 2024, the value of goodwill in continuing operations amounted to 1 123 million euros representing 16 % of the total assets and 43 % of the total equity. The annual impairment testing of goodwill was based on the management’s estimate about the value-in-use of the cash generating units. There are a number of assumptions used to determine the value-in-use of the cash generating units, including revenue growth, margins and the discount rate applied on net cash-flows. The estimated value-in-use may vary significantly when underlying assumptions are changed and the changes in above-mentioned individual assumptions may result in an impairment of goodwill. The valuation of goodwill was a key audit matter because the annual impairment testing included management judgment with respect to the key assumptions used and because of the significance of goodwill to the financial statements. | Our audit procedures in respect of valuation of goodwill included, among others: • Evaluation of the determination of cash generating units and the goodwill allocated to those units. • Involvement of our valuation specialists to assist us in evaluating the key assumptions used in impairment testing by comparing the management’s assumptions to externally derived data and to our independently calculated industry averages, in particular those relating to • the forecasted revenue growth, • the forecasted margin and • the weighted average cost of capital used to discount the net cash-flows. • Testing of the accuracy of the impairment calculations prepared by the management and comparison of the sum of discounted cash flows against Metso’s market capitalization. • Evaluation of the adequacy of the disclosures of the impairment testing results. |