Related Party Transactions

The Board of Directors has determined the principles applicable to the review and evaluation of business transactions with related parties. The Company’s business activities include contractual relationships with the parent entity Metsäliitto Cooperative and affiliated companies Metsä Fibre Oy and Metsä Tissue Corporation. The most significant of these include raw material (such as wood and pulp) sourcing and acting in jointly operated integrated mill sites. In situations where the Board of Directors addresses a business relationship or other contractual relationship or connection to Metsäliitto Cooperative or the Company’s affiliated companies, the Board of Directors shall, as a rule, act without those of its members who are dependent on Metsäliitto Cooperative or the relevant affiliated company. The Audit Committee follows up and analyses contractual relationships between the Company and its related parties.

To assess the independence and impartiality of the members of the Board of Directors, the members shall notify the Company of circumstances that may have an impact on the member’s ability to act without conflict of interest.

As at 31 December 2022, neither the Board members, nor the Company’s CEO or the Corporate Management Team members had monetary loans from the Company or its subsidiaries. No security arrangements or significant business relations existed between these persons (including their related parties as defined in IFRS) and the Company during 2022.