UPM Annual Report 2017

Accounts

In brief

Strategy

Businesses

Stakeholders

Governance

Board of Director’s proposal for the distribution of profits

Consolidated financial statements, IFRS Consolidated income statement

EURm Sales

NOTE

2017

2016 9,812

2.1, 2.2

10,010

Other operating income

2.3 2.3 4.2

83

140

Costs and expenses

–8,492

–8,365

Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation, amortisation and impairment charges

103

88

The Board of Directors proposes to the Annual General Meeting of UPM-Kymmene Corporation to be held on 5 April 2018 that a dividend of EUR 1.15 per share be paid based on the balance sheet to be adopted for the financial year ending 31 December 2017 and that the remaining portion of the distributable funds be retained in the Company’s unrestricted shareholders’ equity. The dividend will be paid to a shareholder who is registered in the Company’s shareholders’ register held by Euroclear Finland Ltd on the dividend record date of 9 April 2018. The Board of Directors proposes that the dividend be paid on 19 April 2018.

On the date of the dividend proposal, 31 January 2018, the Company’s registered number of shares is 533,735,699. The aforementioned number of shares includes 411,653 treasury shares which are not entitled to dividend. As a result, the proposed dividend would total EUR 613.3 million. On 31 December 2017, the distributable funds of the parent company were EUR 3,739,614,044.37 including EUR 859,161,250.56 profit for the period. No material changes have taken place in respect of the Company’s financial position after the balance sheet date. In the opinion of the Board of Directors, the proposed distribution of profits does not risk the solvency of the Company.

5

5

2.3, 4.1, 4.4

–450 1,259

–545 1,135

Operating profit

Gains on sale of energy shareholdings, net Exchange rate and fair value gains and losses

4.3 5.4 5.4

–3

1

–12 –57

–7

Interest and other finance costs

–49

Profit before tax

1,186

1,080

Income taxes

7.1

–212

–200

Profit for the period

974

880

Attributable to: Owners of the parent company

973

879

Non-controlling interests

1

1

974

880

Earnings per share for profit attributable to owners of the parent company Basic earnings per share, EUR

2.4 2.4

1.82 1.82

1.65 1.65

Diluted earnings per share, EUR

Consolidated statement of comprehensive income

Signatures of the annual accounts and the report of the Board of Directors for the year 2017

EURm

NOTE

2017

2016

Profit for the period

974

880

Other comprehensive income for the period, net of tax Items that will not be reclassified to the income statement: Actuarial gains and losses on defined benefit plans Items that may be reclassified to the income statement: Translation differences

Helsinki, 31 January 2018

66

–97

–270

–14

Net investment hedge

20

–1 73

Björn Wahlroos

Berndt Brunow

Henrik Ehrnrooth

Cash flow hedges

122

Chairman

Gains and losses on energy shareholdings

24

–144

–102

–87

Other comprehensive income for the period, net of tax

7.2

–37

–184

Total comprehensive income for the period

937

696

Piia-Noora Kauppi

Wendy E. Lane

Jussi Pesonen President and CEO

Attributable to: Owners of the parent company

937

695

Non-controlling interests

1

1

937

696

Ari Puheloinen

Veli-Matti Reinikkala

Suzanne Thoma

The notes are integral part of these consolidated financial statements

Kim Wahl

CONTENTS

ACCOUNTS

110

111

UPM Annual Report 2017

UPM Annual Report 2017