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

13. Inventories

16. Provisions

EURm

2018

2017

EURm

RESTRUCTURING TERMINATION ENVIRONMENTAL

OTHER 1)

TOTAL

2018 Provisions at 1 January

Raw materials and consumables Finished products and goods

210

100

3 – – 3

5 –

9 – – 8

49 37

65 37 –1

27 29

27 15

Provisions made during the year Provisions utilised during the year Carrying value, at 31 December

Advance payments

–1

–

Carrying value, at 31 December

267

143

4

85

101

14. Current receivables

2017 Provisions at 1 January

3 – 3

5

9

153

170

Provisions utilised during the year Carrying value, at 31 December

–1

–1

–104

–105

5

9

49

65

RECEIVABLES FROM PARTICIPATING INTEREST COMPANIES

RECEIVABLES FROM GROUP COMPANIES

1) Other provisions are attributable to onerous contracts and fair value losses of financial derivatives. At the end of 2018 the fair value loss in other provisions of EUR 11 million (12 million) was attributable to one group internal cross currency swap with nominal value of EUR 85 million (95 million) and maturity in 2027. Changes in provisions are recognised in sales, materials, personnel or other operating expenses or financial expenses.

EURm

TOTAL

2018 Trade receivables Loan receivables 1) Prepayments and accrued income

564 650

529 650

5 –

17.

Non-current liabilities

30 46

1 –

– –

Other current receivables

Carrying value, at 31 December

1,290

1,180

5

EURm

2018

2017

EURm Bonds

2018

2017

Prepayments and accrued income Energy taxes

328 385 167 879

313 385 156 853

2017 Trade receivables Loan receivables 1) Prepayments and accrued income

6 1

6 2

Payables to group companies Other non-current liabilities

479 571

444 571

8 –

Personnel expenses

Interest income

10

13 22

Carrying value, at 31 December

Exchange gains and losses

7 4 3

48 23

1 –

– –

Income taxes Other items

– 5

Other current receivables

Carrying value, at 31 December

Carrying value, at 31 December

1,120

1,016

8

30

48

Maturity in 2024 or later (in 2023 or later)

1) There were no loans granted to the company’s President and CEO and members of the Board of Directors at 31 December 2018 and 2017.

EURm Bonds

2018

2017

328 167 494

313 156 468

Other non-current liabilities

Total

15. Equity

RESERVE FOR INVESTED NON- RESTRICTED EQUITY

TOTAL SHAREHOLDER’S EQUITY

REVALUATION RESERVE

RETAINED EARNINGS

Bonds

EURm

SHARE CAPITAL

2018 Carrying value, at 1 January

NOMINAL VALUE ISSUED, MILLION

CARRYING VALUE, 2018 EURm

CARRYING VALUE, 2017 EURm

INTEREST RATE,

890

165

1,273

2,467

4,794

FIXED RATE PERIOD

% CURRENCY

Profit for period

– – –

– –

– – –

780

780

Dividend distribution Changes in revaluations

–613

–613

1997–2027 2003–2018

7.450 5.500

USD USD

375 250

328

313 208 521 208 313

–23 142

–

–23

–

Carrying value, at 31 December

890

1,273

2,634

4,938

Carrying value, at 31 December

328

Current portion

–

2017 Carrying value, at 1 January

Non-current portion

328

890

206

1,273

2,115

4,483

Profit for period

– – –

– –

– – –

859

859

Dividend distribution Changes in revaluations

–507

–507

–41 165

–

–41

Carrying value, at 31 December

890

1,273

2,467

4,794

EURm

2018

2017

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

1,273 1,273 1,853 1,608

Profit for the period

780

859

Total distributable funds at 31 December

3,906 3,740

180

181

CONTENTS

ACCOUNTS

UPM ANNUAL REPORT 2018

UPM ANNUAL REPORT 2018