UPM Annual Report 2017

Accounts

In brief

Strategy

Businesses

Stakeholders

Governance

13. Inventories

16. Provisions

EURm

2017

2016

EURm

RESTRUCTURING TERMINATION ENVIRONMENTAL

OTHER 1)

TOTAL

2017 Provisions at 1 January

Raw materials and consumables Finished products and goods

100

132

3 – 3

5

9

153

170

27 15

22 19

Provisions utilised during the year Carrying value , at 31 December

–1

–1

–104

–105

Advance payments

5

9

49

65

Carrying value, at 31 December

143

174

2016 Provisions at 1 January

15

13

12

20

60

14. Current receivables

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

–

1

– – –

154

155

–2

–2

–3 –1

–7 –2

–

–

–10

–6

–2

–17 153

–35 170

RECEIVABLES FROM PARTICIPATING INTEREST COMPANIES

3

5

9

RECEIVABLES FROM GROUP COMPANIES

1) Other provisions are attributable to onerous contracts and fair value losses of financial derivatives. At the end of 2017 the fair value loss in other provisions of EUR 12 million (11 million) was attributable to one group internal cross currency swap with nominal value of EUR 104 million (104 million) and maturity in 2027 (2027). Changes in provisions are recognised in sales, materials, personnel or other operating expenses or financial expenses.

EURm

TOTAL

2017 Trade receivables Loan receivables 1)

479 571

444 571

8 –

Prepayments and accrued income Other current receivables

48 23

1 –

– –

17.

Non-current liabilities

Carrying value, at 31 December

1,120

1,016

8

EURm Bonds

2017

2016

EURm

2017

2016

2016 Trade receivables Loan receivables 1)

313

593 568

Prepayments and accrued income Energy taxes

437 994

400 994

11

Loans from financial institutions

– –

6 2

21

–

Pension loans

68

Personnel expenses

2

Prepayments and accrued income Other current receivables

Payables to group companies Other non-current liabilities Carrying value, at 31 December

385 156 853

314 170

Interest income

13 22

33

66 42

– 5

– –

Exchange gains and losses

7 4

1,713

Other items

5

Carrying value, at 31 December

Carrying value, at 31 December

48

66

1,539

1,400

12

1) There were no loans granted to the company’s President and CEO and members of the Board of Directors at 31 December 2017 and 2016.

Maturity in 2023 or later (in 2022 or later)

EURm Bonds

2017

2016

313 156 468

356 170 526

15. Equity

Other non-current liabilities

Total

RESERVE FOR INVESTED NON- RESTRICTED EQUITY

TOTAL SHAREHOLDER’S EQUITY

REVALUATION RESERVE

RETAINED EARNINGS

EURm

SHARE CAPITAL

Bonds

2017 Carrying value, at 1 January

890

206

1,273

2,115

4,483

NOMINAL VALUE ISSUED, MILLION

CARRYING VALUE, 2017 EURm

CARRYING VALUE, 2016 EURm

Profit for period

– – –

– –

– – –

859

859

INTEREST RATE,

Dividend distribution Changes in revaluations

–507

–507

FIXED RATE PERIOD

% CURRENCY

–41 165

–

–41

1997–2027 2002–2017 2003–2018

7.450 6.625 5.500

USD GBP USD

375 250 250

313

356 292 237 885 292 593

Carrying value, at 31 December

890

1,273

2,467

4,794

–

208 521 208 313

2016 Carrying value, at 1 January

Carrying value, at 31 December

890

427

1,273

2,259

4,849

Current portion

Profit for period

– – –

– –

– – –

255

255

Non-current portion

Dividend distribution Changes in revaluations

–400

–400 –221 4,483

–221

–

Carrying value, at 31 December

890

206

1,273

2,115

EURm

2017

2016

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

1,273 1,608

1,273 1,860

Profit for the period

859

255

Total distributable funds at 31 December

3,740

3,388

CONTENTS

ACCOUNTS

168

169

UPM Annual Report 2017

UPM Annual Report 2017