UPM Annual Report 2018

UPM AT A GLANCE

STRATEGY

BUSINESSES

SOCIETY AND ENVIRONMENT

GOVERNANCE AND COMPLIANCE

REPORT OF THE BOARD OF DIRECTORS

FINANCIAL STATEMENTS

AUDITOR’S REPORT

OTHER FINANCIAL INFORMATION

Consolidated financial statements, IFRS

Financial Statements 2018

Consolidated income statement

Consolidated income statement and statement of comprehensive income

121 122 123 124 125

EURm Sales

NOTE

2018

2017

Consolidated balance sheet

2.1, 2.2

10,483

10,010

Consolidated statement of changes in equity

Other operating income

2.3 2.3 4.2

87

83

Costs and expenses

–8,710

–8,492

Consolidated cash flow statement

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

452

103

Notes to the consolidated financial statements

6

5

2.3, 4.1, 4.4

–422 1,895

–450 1,259

Operating profit

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

4.3 5.4 5.4

– 3

–3

–12 –57

5. Capital structure 5.1 Capital management

1. Basis for reporting 1.1 Corporate information 1.2 Basis of preparation 1.3 Consolidation principles 1.4 Foreign currency translation

Interest and other finance costs

–60

153

125 125 126

Profit before tax

1,839

1,186

5.2 Net debt 155 5.3 Financial assets and liabilities by category 157 5.4 Financial income and expenses 160 5.5 Share capital and reserves 161

Income taxes

7.1

–342 1,496

–212

126 1.5 New standards and amendments adopted 127

Profit for the period

974

Attributable to: Owners of the parent company

6. Risk management 6.1 Financial risk management

2. Business performance 2.1 Business areas

1,495

973

162 164

129 134 136

Non-controlling interests

1

1

6.2 Derivatives and hedge accounting

2.2 Sales

1,496

974

2.3 Operating expenses and other operating income 2.4 Earnings per share and dividend

7. Income tax 7.1 Tax on profit for the year

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

167 167

137

2.4 2.4

2.80 2.80

1.82 1.82

7.2 Deferred tax

Diluted earnings per share, EUR

3. Employee rewards 3.1 Employee costs

8. Group structure 8.1 Business acquisitions and disposals 168 8.2 Principal subsidiaries and joint operations 169 8.3 Related party transactions 170 8.4 Assets held for sale 170

138 138 139 140 144 146 146 147 150 151

3.2 Key management personnel 3.3 Share-based payments 3.4 Retirement benefit obligations 4. Capital employed 4.1 Property, plant and equipment

Consolidated statement of comprehensive income

EURm

NOTE

2018

2017

9. Unrecognised items 9.1 Commitments and contingencies

Profit for the period

1,496

974

171 171 172

4.2 Forest assets

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 Changes in fair value of energy shareholdings (IFRS 9) Items that may be reclassified to the income statement: Translation differences

9.2 Litigation

4.3 Energy shareholdings

9.3 Events after balance sheet date

4.4 Goodwill and other intangible assets

–

66

4.5 Provisions

183

–

10. Other notes 10.1 Forthcoming new standards, amendments 172 and accounting policy changes

4.6 Working capital

62

–270

Net investment hedge

–14

20

Cash flow hedges

13

122

Changes in fair value of energy shareholdings (IAS 39) Other comprehensive income for the period, net of tax

–

24

7.2

243

–37 937

Parent company accounts

174

Total comprehensive income for the period

1,739

Attributable to: Owners of the parent company

1,738

937

Non-controlling interests

1

1

1,739

937

The notes are integral part of these consolidated financial statements.

120

121

CONTENTS

UPM ANNUAL REPORT 2018

UPM ANNUAL REPORT 2018