UPM Annual Report 2016

Accounts

In brief

Strategy

Businesses

Stakeholders

Governance

13. Inventories

16. Provisions

EURm

2016

2015

EURm

RESTRUCTURING TERMINATION ENVIRONMENTAL

OTHER 1)

TOTAL

Provisions at 1 January 2016 Provisions made during the year Provisions utilised during the year Unused provisions reversed Changes due to restructurings Carrying value , at 31 December 2016 Provisions at 1 January 2015 Provisions made during the year Provisions utilised during the year

15

13

12

20

60

Raw materials and consumables Finished products and goods

132

203

–

1

– – –

154

155

22 19

80 31

–2

–2

–3 –1

–7 –2

Advance payments

–

–

Carrying value, at 31 December

174

314

–10

–6

–2

–17 153

–35 170

3

5

9

14. Current receivables

17

17

13

21

68

–

3

–

3

6

–2

–6 –1 13

–1

–3 –1 20

–12

RECEIVABLES FROM PARTICIPATING INTEREST COMPANIES

Unused provisions reversed

–

–

–2 60

RECEIVABLES FROM GROUP COMPANIES

Carrying value , at 31 December 2015

15

12

1) Other provisions are attributable to onerous contracts and fair value losses of financial derivatives. At the end of 2016 the fair value loss in other provisions of EUR 11 million was attributable to one group internal cross currency swap with nominal value of EUR 104 million and maturity in 2027. Changes in provisions are recognised in in personnel or other operating expenses, in sales, materials or financial items.

EURm

TOTAL

2016 Trade receivables Loan receivables 1)

437

400

11

1,495

1,495

–

Prepayments and accrued income Other current receivables

66 42

– 5

– –

17.

Non-current liabilities

Maturity in 2022 or later (in 2021 or later)

Carrying value, at 31 December

2,040

1,901

12

EURm

2016

2015

EURm Bonds

2016

2015

EURm Bonds

2016

2015

Prepayments and accrued income Energy taxes

2015 Trade receivables Loan receivables

593 568

991 911 135 161

356 170 526

421 160 581

21

38

228 783

83

10

Loans from financial institutions

Other non-current liabilities

Personnel expenses

2

4

783

–

Pension loans

68

Total

Interest income

33

39

Prepayments and accrued income Other current receivables

Other non-current liabilities

170

Derivative financial instruments

7 – 4

4

124

2 –

1 –

Carrying value, at 31 December

1,399

2,198

Income taxes Other items

37

82

2

Carrying value, at 31 December

1,217

868

11

Carrying value, at 31 December

66

124

Bonds

1) There were no loans granted to the company’s President and CEO and members of the Board of Directors at 31 December 2016 and 2015.

NOMINAL VALUE ISSUED, MILLION

CARRYING VALUE, 2016 EURm

CARRYING VALUE, 2015 EURm

INTEREST RATE,

FIXED RATE PERIOD

% CURRENCY

1997–2027 2000–2016 2002–2017 2003–2018

7.450 3.550 6.625 5.500

USD

375

356

344

15. Equity

JPY

10,000

–

76

GBP USD

250 250

292 237 885 292 593

341 230 991

RESERVE FOR INVESTED NON- RESTRICTED EQUITY

TOTAL SHAREHOLDER’S EQUITY

Carrying value, at 31 December

REVALUATION RESERVE

RETAINED EARNINGS

Current portion

–

EURm

SHARE CAPITAL

Non-current portion

991

Carrying value, at 1 January 2016

890

427

1,273

2,259

4,849

Profit for period

– – –

– –

– – –

255

255

Dividend distribution Changes in revaluations

–400

–400 –221 4,483

–221

–

Carrying value, at 31 December 2016

890

206

1,273

2,115

Carrying value, at 1 January 2015

890

463

1,273

2,088

4,714

Profit for period

– – – –

– –

– – – –

545

545

Dividend distribution Changes in revaluations

–373

–373

–36

–

–36

Other changes

–

–1

–1

Carrying value, at 31 December 2015

890

427

1,273

2,259

4,849

EURm

2016

2015

Distributable funds Reserve for invested non-restricted equity Retained earnings from previous years

1,273 1,860

1,273 1,715

Profit for the period

255

545

Total distributable funds at 31 December

3,388

3,533

CONTENTS

ACCOUNTS

156

157

UPM Annual Report 2016

UPM Annual Report 2016