UPM Annual Report 2016

Accounts

In brief

Strategy

Businesses

Stakeholders

Governance

Business area information for the year ended 31 December 2016

Business area information for the year ended 31 December 2015

UPM SPECIALTY PAPERS

UPM SPECIALTY PAPERS

UPM PAPER ENA

UPM PAPER ENA

ELIMINATIONS AND RECONCI- LIATIONS 2)

ELIMINATIONS AND RECONCI- LIATIONS 2)

UPM BIOREFINING

UPM ENERGY

UPM RAFLATAC

UPM BIOREFINING

UPM ENERGY

UPM RAFLATAC

UPM PLYWOOD

OTHER OPERATIONS

UPM PLYWOOD

OTHER OPERATIONS

EURm, OR AS INDICATED

GROUP

EURm, OR AS INDICATED

GROUP

External sales Internal sales

1,663

170 1,437

1,067 4,797

424

275

–22 9,812

External sales Internal sales

1,668

237 1,409

962 5,036

418

403

5 10,138

542

187

206

21

20

11

–987

604

178

206

20

21

3

–1,032

Total sales

Total sales

2,206

357 1,437

1,273 4,818 123 280

444

285

–1,009 9,812

2,272

415 1,409

1,168 5,056

439

406

–1,027 10,138

Comparable EBIT

Comparable EBIT

406

116

133

58

14

12 1,143

467

181

102

55

24

55

38

–6

916

Items affecting comparability in operating profit

Items affecting comparability in operating profit

–57

1

48

–7

–1

–26 155

–3 99

8

–2 53

268 306

–18

226

Operating profit Finance costs, net

406

116

134

123 223

58

15

60 1,135

Operating profit Finance costs, net

466

55

32

–24 1,142

–56

–67

Income taxes

–200

Income taxes

–159

Profit for the period

880

Profit for the period

916

Operating assets 1) Deferred tax assets

3,586 2,283

666

1,121 2,287

304

1,691

–326 11,612

Operating assets 1) Deferred tax assets

3,384 2,425

697

1,200 2,637

284

1,720

–218 12,129

446 132

466 200

Other non-operating assets

Other non-operating assets

Other financial assets

1,721 13,911

Other financial assets

1,398 14,193

Total assets

Total assets

Operating liabilities 1) Deferred tax liabilities

245

34

165

137 505

43

179

–295 1,013

Operating liabilities 1) Deferred tax liabilities

197

12

140

141 435

31

145

–164

937 456 935

457 978

Other liabilities

Other liabilities

Other financial liabilities

3,226 5,673

Other financial liabilities

3,921 6,249

Total liabilities

Total liabilities

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation and amortisation

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation and amortisation

29

59

88

21

331

352

2

–1 –9

2

3

5

1

1

1

3

–171

–33

–91 –164

–22

–13

1 –503

–169

–11

–35

–86 –190

–23

–13

3 –524

Impairment charges

–1

–49

10

–41

Impairment charges

Capital employed, 31 December

3,341 2,249 3,231 2,340

501 524

984 1,782 1,012 1,964

261 259

1,512 1,541

27 10,657 –36 10,833

Capital employed, 31 December

3,187 2,413 3,191 2,716

557 581

1,059 2,202 1,012 2,289

253 263

1,575 1,483

–236 11,010 –558 10,977

Average capital employed

Average capital employed

Capital expenditure

188

1

19

15

49

45

9

–1

325

Capital expenditure

161

35

22

211

57

23

11

520

Capital expenditure, excluding acquisitions and shares

Capital expenditure, excluding acquisitions and shares

188 12.6

1

19

15

49

45

9

–1

325 10.6

159 14.6

3

22

211 5.4

57 1.0

23

11

– –

486

Comparable ROCE, % Personnel, 31 December

5.0

25.5

12.1 14.3 1,984 8,664

22.6

0.9

Comparable ROCE, % Personnel, 31 December

6.7

17.6

20.9

2.6

8.3

2,630

71 3,062

2,469

442

–12 19,310

2,593

73 2,894

1,738 9,472

2,469

443

–104 19,578

1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings, investments in associates and joint-ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the consolidation of MPI as a joint operation. In addition the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments are included in reconciliations.

1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings, investments in associates and joint-ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the consolidation of MPI as a joint operation. In addition the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments are included in reconciliations.

In 2016, UPM has relabeled the previously referenced “excluding special items” non-GAAP financial measures with “comparable” performance measures as published in » UPM’s stock exchange release on 14 April 2016.

In 2016, UPM has relabeled the previously referenced “excluding special items” non-GAAP financial measures with “comparable” performance measures as published in » UPM’s stock exchange release on 14 April 2016.

» Refer Note 10.2 , Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS.

» Refer Note 10.2 , Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS.

CONTENTS

ACCOUNTS

112

113

UPM Annual Report 2016

UPM Annual Report 2016

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