UPM Annual Report 2019

16.

Provisions

18.

Current liabilities

PAYABLES TO PARTICIPAT- ING INTEREST COMPANIES

EURm

RESTRUCTURING TERMINATION ENVIRONMENTAL

OTHER 1)

TOTAL

PAYABLES TO GROUP COMPANIES

2019 Provisions at 1 January

3

4 1

8

85

101

EURm

TOTAL

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

— —

— —

—

1

2019 Advances received

-3

-50

-53

1

—

— —

3

3

8

35

49

Trade payables

293

51

Accrued expenses and deferred income

102

15

— — —

2018 Provisions at 1 January

Other current liabilities

1,717 2,112

1,636 1,703

3

5

9

49 37

65 37

Carrying value, at 31 December

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

— —

— -1

— —

EURm

2019

2018

—

-1

Accrued expenses and deferred income Personnel expenses

2018 Trade payables

3 101 1) Other provisions are attributable to onerous contracts and fair value losses of financial derivatives. At the end of 2019 the fair value loss in other provisions of EUR 7 million (11 million) was attributable to one group internal cross currency swap with nominal value of EUR 76 million (85 million) and maturity in 2027. Changes in provisions are recognised in sales, materials, personnel or other operating expenses or financial expenses. 4 8 85

78

77

324

56

1

Interest expenses

3

7

Accrued expenses and deferred income

Exchange gains and losses

21 —

51

137

18

— —

Other current liabilities

Other items

1

1,984 2,444

1,844 1,919

102

137

Carrying value, at 31 December

1

Carrying value, at 31 December

19.

Commitments

17.

Non-current liabilities

Maturity in 2025 (in 2024) or later

Pension commitments of the President and CEO and the members of the Group Executive Team » Refer Note 3.2 Key management personnel.

EURm

2019

2018

EURm Bonds

2019 334 172 506

2018

EURm Bonds

2019 334

2018 328 385 167 879

328 167 494

Mortgages As security against own debt

Other non-current liabilities

1

1

Payables to group companies Other non-current liabilities Carrying value, at 31 December

115 172 621

Guarantees Guarantees for loans on behalf of Group companies Other guarantees on behalf of Group companies Other commitments Leasing commitments, due within 12 months Leasing commitments, due after 12 months

Total

Related party transactions » Refer Note 8.3 Related party transactions.

13

1

67

37

Derivatives All financial derivative contracts of the group are made by the parent company. All contracts are made with external counterparties except for one cross currency swap used in managing foreign currency risk of the group internal assets. Hedge accounting is not applied. The fair value losses of financial derivatives are recognised through the income statement and presented as a provision in the balance sheet. Financial risks, fair values and maturities of the group external derivatives are disclosed in » Note 6.1 Financial risk management and in » Note 6.2 Derivatives and hedge accounting.

34 64 62

33 81 77

Bonds

Other commitments

Total

240

229

CARRYING VALUE

CARRYING VALUE

NOMINAL VALUE ISSUED, MILLION

2019 EURm

2018 EURm

FIXED RATE PERIOD

INTEREST RATE, % CURRENCY

1997–2027

7.450

USD

375

334 334 334

328 328 328

Carrying value, at 31 December

Non-current portion

208

209

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS

ACCOUNTS

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS