UPM Annual Report 2019

Notes to the parent company financial statements

7.

Financial income and expenses

9.

Income taxes

EURm

2019

2018

EURm

2019

2018

Accounting policies The financial statements of the parent company are prepared in accordance with Finnish Accounting Standards, FAS. The main differences in accounting policies of the group and the parent company relate to the measurement of financial derivatives and forest assets and recognition of defined benefit obligations, lease agreements and deferred income taxes. The financial statements are presented in millions of euros and rounded and therefore the sum of individual figures might deviate from the presented total figure.

Income on non-current assets Dividend income from group companies Interest income from group companies Other interest and financial income Other interest income from group companies Other interest income from other companies Other financial income from group companies Other financial income from other companies

Tax expense for the period

43 43

122 122

534

328

Total

6

6

540

334

Deferred tax assets and liabilities 1)

40

32

1

EURm

2019

2018

— —

13

Deferred tax assets Provisions Share-based payments

2

10

20

41

47

2

2

2

Value adjustments

13

23

Total

1. Sales Sales by business area

4.

Personnel expenses

Interest and other financial expenses Interest expenses to group companies Interest expenses to other companies Other financial expenses to group companies Other financial expenses to other companies

Deferred tax liabilities Accumulated depreciation difference

-13 -16

-12 -13

88 60

89 60

Revaluations of land areas

-3

Total 149 1) The parent company has not recognised deferred tax assets and liabilities in the balance sheet. Deferred tax assets and liabilities are calculated based on temporary differences between the carrying and taxable values of assets and liabilities. 148

-32 -65 516

-46 -71 312

EURm

2019 1,876

2018

EURm

2019

2018

Salaries and fees of the President and CEO, and members of the Board of Directors 1)

UPM Biorefining Other operations

2,005

Total

7

7

442

479

Other salaries and fees

206

194

2,318

2,484

Total

Pension costs

31

35

Other indirect employee costs

7

7

8.

Closing entries

Total

250

242

Sales by destination

EURm

2019

2018

1) » Refer Note 3.2 Key management personnel

Change in accumulated depreciation difference

-6 — -6

-9

EURm

2019

2018

Group contributions granted

6

Personnel

Finland

2,275

2,432

-3

Total

Other EU countries

22 21

27 25

Other countries

2019

2018

2,318

2,484

Total

3,070

2,990

Total on average

10. Intangible assets

5.

Depreciation, amortisation and impairment charges

OTHER INTANGIBLE ASSETS

2.

Other operating income

INTANGIBLE RIGHTS

ADVANCE PAYMENTS

EURm

TOTAL

2019 Accumulated costs

18

248

27

293

EURm

2019

2018

EURm

2019

2018

Accumulated amortisation and impairments

-12

-236

-248

Intangible rights

2 6

2 8

Gains on sale of non-current assets

5

140

5 5 2

13 17

27 14 19

45 36 23

Carrying value, at 31 December Carrying value, at 1 January

Other intangible assets

Rental income

10

12

Buildings

19 80

20 83

Other Total

3

2

Additions Disposals

2

Machinery and equipment

18

154

— -2

— -6 13

-6 —

-6 -8

Other tangible assets

3

4

Amortisation

111

117

Total

5

27

45

Carrying value, at 31 December

2018 Accumulated costs

3.

Materials and services

6.

Other operating expenses

16

249

14 — 14 12 -5 — -1 14 8

279

Accumulated amortisation and impairments

-11

-232

-243

EURm

2019

2018

EURm

2019

2018

5 5 2

17 23

36 35 15

Carrying value, at 31 December Carrying value, at 1 January

Raw materials and consumables

1,460

1,599

Rents and lease expenses

13

7 1

Change in inventories

45

-109

Losses on sale of non-current assets

3

Additions Disposals

1

Delivery costs and other external charges

5

5

Maintenance expenses

84 92

95 97

— -2 —

— -8

-5

1,510

1,494

Other operating expenses 1)

Total

Amortisation

-10

Total 200 1) The research and development costs in operating expenses were EUR 24 million (21 million) and auditor’s fee EUR 1.4 million (0.7 million). In personnel expenses the research and development costs were EUR 16 million (16 million). 192

Reclassifications

1

5

17

36

Carrying value, at 31 December

204

205

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS

ACCOUNTS

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS

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