UPM Annual Report 2019

Business area information for the year ended 31 December 2019

Business area information for the year ended 31 December 2018

ELIMINATIONS AND RECONCI- LIATIONS 2)

ELIMINATIONS AND RECONCI- LIATIONS 2)

UPM SPECIALTY PAPERS

UPM COM PAPERS

UPM SPECIALTY PAPERS

UPM COM PAPERS

UPM BIO­ REFINING

UPM BIORE- FINING

UPM ENERGY

UPM RAFLATAC

UPM PLYWOOD

OTHER OPERATIONS

UPM ENERGY

UPM RAFLATAC

UPM PLYWOOD

OTHER OPERATIONS

EURm, OR AS INDICATED

GROUP

EURm, OR AS INDICATED

GROUP

External sales Internal sales

External sales Internal sales

2,096

180 237 417 185

1,555 1,203 4,516

427

258

4 10,238

2,223 109 1,488

1,213 4,664

458

321

7 10,483

617

— 209

36

24

6

-1,129

—

669 282

— 216

26

22

6

-1,220

—

Total sales

Total sales

2,712

1,555

1,412 4,552 120 383

450

264

-1,125 10,238

2,892 391 1,488 1,429 4,690

480

326

-1,214 10,483

Comparable EBIT

Comparable EBIT

544

126

36

-7

17 1,404

847 123

126

90 267

52

35

-26

1,513

Items affecting comparability in operating profit

Items affecting comparability in operating profit

— -1

-2

— -58 120 324

—

-4

5

-60

— -9

—

— 46

—

345 380

1

382

Operating profit Finance costs, net

Operating profit Finance costs, net

544

184

124

36

-10

21 1,344

847

114

126

90

312

52

-25 1,895

-37

-56

Income taxes

Income taxes

-234 1,073

-342

Profit for the period

Profit for the period

1,496

Operating assets 1) Deferred tax assets

Operating assets 1) Deferred tax assets

3,638 2,481

703

1,124 2,026

351

2,159

-362 12,121

3,540 2,506

701

1,158 2,228

353

1,847

-362 11,970

395

397

Other non-operating assets

Other non-operating assets

87

97

Other financial assets

Other financial assets

2,119

1,532

Total assets

Total assets

14,722

13,996

Operating liabilities 1) Deferred tax liabilities

Operating liabilities 1) Deferred tax liabilities

246

28

169

200 525

31

277

-338

1,139

288

45

172

265 624

51

183

-310

1,318

549 930

535 826

Other liabilities

Other liabilities

Other financial liabilities

Other financial liabilities

1,930 4,548

1,520 4,199

Total liabilities

Total liabilities

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures

-11

—

—

— — —

38

— 26

-12

—

—

— —

—

419

— 407

2

— -9

—

— 1 -73 -132 — -13 924 1,501 904 1,647

—

—

—

3

2

— -9

—

— 2 -77 -116 — — 892 1,604 889 1,602

—

2

—

6

Depreciation and amortisation

Depreciation and amortisation

-171

-40

-25

-27

— -476 — -13 468 11,474 -182 11,024 — 378

-155

-30

-23

-13

— -423

Impairment charges

Impairment charges

— —

—

—

—

— —

—

—

—

—

—

Capital employed, 31 December

Capital employed, 31 December

3,392 2,453 3,469 2,454

534 579

320 329

1,881 1,824

3,252 2,460 3,180 2,346

529 535

302 283

1,665 1,392

-130 10,575 -51 10,176 — 303

Average capital employed

Average capital employed

Capital expenditure

Capital expenditure

133

6

13

115

47

29

35

77

1

24

85

46

52

18

Capital expenditure, excluding acquisitions and shares

Capital expenditure, excluding acquisitions and shares

133 15.7

6

13

115

47

29

35

— 378 — 12.8

77

1

24

85

46

52

18

— 303 — 14.6

Comparable ROCE, % Personnel, 31 December

Comparable ROCE, % Personnel, 31 December

7.5 68

21.8

13.3 23.2

11.0

-0.4 622

26.6

5.3

23.6

10.1 16.7

18.4

2.5

2,739 — 18,742 1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings, investments in associates and joint ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments. » Refer Other financial information on Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS. 3,181 1,992 7,673 2,467

2,636 — 18,978 1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings, investments in associates and joint ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments. 63 3,244 2,000 7,929 2,502 604

» Refer Other financial information on Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS.

156

157

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS

ACCOUNTS

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS