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 statement of changes in equity

Consolidated balance sheet

EURm

NOTE

2018

2017

RESERVE FOR INVESTED NON- RESTRICTED EQUITY

EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT COMPANY

ASSETS Goodwill

4.4 4.4 4.1 4.2 4.3 5.3 7.2 3.4

236 295

231 294

NON- CONTROLLING INTERESTS

SHARE CAPITAL

TREASURY SHARES

TRANSLATION RESERVE

OTHER RESERVES

RETAINED EARNINGS

TOTAL EQUITY

Other intangible assets

EURm

Property, plant and equipment

4,186 1,945 2,159

4,281 1,600 1,974

Value, at 31 December 2017 Impact of adoption of IFRS 15 1) Impact of adoption of IFRS 2 amendment 1) Profit for the period Translation differences Cash flow hedges – reclassified to income statement, net of tax Value, at 1 January 2018 Cash flow hedges – changes in fair value, net of tax Energy shareholdings – changes in fair value, net of tax Actuarial gains and losses on defined benefit plans, net of tax Total comprehensive income for the period Share-based payments, net of tax Dividend distribution Total transactions with owners for the period Net investment hedge, net of tax

890

–2

184 1,564

1,273 4,752

8,660

4 8,663

Forest assets

Energy shareholdings

–

–

–

–

–

–3

–3

– –3

Other non-current financial assets

178 397

192 423

Deferred tax assets

–

–

–

26

–

–

26

–

26

Net retirement benefit assets

38 32 34

84 29 37

890

–2

184 1,590

1,273 4,750

8,684 1,495

4 8,687 1 1,496

Investments in associates and joint ventures

– –

– –

–

– –

– 1,495

Other non-current assets Non-current assets

61

–

–

61

–

62

9,501

9,144

Inventories

4.6

1,642 1,833

1,311 1,783

–

–

–

–13

–

–

–13

– –13

Trade and other receivables Other current financial assets Income tax receivables Cash and cash equivalents

4.6, 5.3

5.3

107

92 20

–

–

–

26

–

–

26

–

26

24

5.1, 5.3

888

716

–

–

–14

–

–

–

–14

– –14

Current assets

4,496

3,922

Assets classified as held for sale

–

1

–

–

–

183

–

–

183

– 183

Assets

13,996

13,067

–

–

–

–

–

–

–

–

–

EURm

NOTE

2018

2017

–

–

48

196

– 1,494

1,738

1 1,739

EQUITY AND LIABILITIES Share capital

5.5

890

890

– –

– –

– –

–8

–

–7

–16

– –16 – –613

Treasury shares

–2

–2

–

– –613

–613

Translation reserve

232

184

Other reserves

5.5 5.5

1,778 1,273 5,623 9,792

1,564 1,273 4,752 8,660

–

–

–

–8

– –621

–629

– –629

Reserve for invested non-restricted equity

Total equity at 31 December 2018

Retained earnings

890

–2

232 1,778

1,273 5,623

9,792

5 9,797

Equity attributable to owners of the parent company

Non-controlling interests

5

4

Value, at 1 January 2017

890

–2

433 1,416

1,273 4,225

8,234

3 8,237 1 974 – –270

Equity

9,797

8,663

Profit for the period Translation differences Cash flow hedges – reclassified to income statement, net of tax

– –

– –

–

– –

973

973

–269

–

–

–269

Deferred tax liabilities

7.2 3.4 4.5

535 679 126 753 101

458 736 177 789

Net retirement benefit liabilities

Provisions

–

–

–

28

–

–

28

–

28

Non-current debt

5.2, 5.3

Cash flow hedges – changes in fair value, net of tax

Other non-current financial liabilities

5.3

94

–

–

–

95

–

–

95

–

95

Non-current liabilities

2,194

2,254

Net investment hedge, net of tax

–

–

20

–

–

–

20

–

20

Current debt

5.2, 5.3 4.6, 5.3

25

324

Energy shareholdings – changes in fair value, net of tax Actuarial gains and losses on defined benefit plans, net of tax Total comprehensive income for the period Share-based payments, net of tax Dividend distribution Total transactions with owners for the period

Trade and other payables

1,881

1,765

–

–

–

24

–

–

24

–

24

Other current financial liabilities

5.3

78 22

34 26

Income tax payables Current liabilities

2,005 4,199

2,150 4,404

–

–

–

–

–

66

66

– 66

Liabilities

–

–

–249

147

– 1,039

937

– 937

Equity and liabilities

13,996

13,067

– –

– –

– –

1 –

–

–5

–4

– –4 – –507

– –507

–507

The notes are integral part of these consolidated financial statements.

–

–

–

1

– –512

–511

– –511

Total equity at 31 December 2017

890

–2

184 1,564

1,273 4,752

8,660

4 8,663

1) More information on changes in group's accounting policies is presented in » Note 1.5 New Standards and amendments adopted.

» Refer Note 5.5 Share capital and reserves, for further information.

122

123

CONTENTS

ACCOUNTS

UPM ANNUAL REPORT 2018

UPM ANNUAL REPORT 2018