UPM Annual Report 2020

Net fair values of derivatives

Timing of nominal amounts of derivatives 2020

Positive fair values

Negative fair

Positive fair values

Negative fair

values Net fair values

values Net fair values

Between 1–5 years

Later than 5 years

Within 1 year

Total

EURm

2020

2019

EURm

2020

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

83 12 29

-26

57 11

11

-21

-10

2,445

2,004

441

— — —

Net investment hedge Non-qualifying hedges Cross currency swaps Non-qualifying hedges

-1

1 6

-1 -7

—

228

Net investment hedge Non-qualifying hedges Currency options Non-qualifying hedges Cross currency swaps Non-qualifying hedges

228

—

-27

2

-1

1,319

1,318

1

1

—

1

7

—

7

20

20

—

—

Derivatives hedging foreign exchange risk

125

-54

71

25

-29

-4

Interest rate risk Interest rate swaps Fair value hedges

166

—

—

166

Interest rate risk Interest rate swaps Fair value hedges

113

— —

113

103

— —

103

Non-qualifying hedges Cross currency swaps Fair value hedges Non-qualifying hedges

2

2

1

1

1,056

— —

— —

1,056

—

Non-qualifying hedges Cross currency swaps Fair value hedges Interest rate futures Non-qualifying hedges

—

44

— — —

44

51

— — —

51

—

—

—

—

166

—

—

166

Derivatives hedging interest risk

159

159

156

156

Commodity risk Electricity sales Cash flow hedges Electricity purchase Cash flow hedges

2,391

2,391

—

—

Commodity risk Electricity sales

1

-1

—

1

-5

-4

478

Cash flow hedges

274

204

— —

1

-1

—

23

-2

21

6

Non-qualifying hedges

—

6

Other commodities Non-qualifying hedges

Electricity purchase Cash flow hedges

1 2

—

— —

2

—

2

283

145

138

—

Derivatives hedging commodity risk

-2

26

-7

19

Other commodities Non-qualifying hedges

Total

286

-56

230

206

-36

170

24

24

—

—

No derivatives are subject to offsetting in the group’s financial statements. All derivatives are under ISDA or similar master netting agreement.

Notional amounts of derivatives

Net fair values of derivatives calculated by counterparty

EURm

2020 2,391 1,056 3,992

2019 1,729

POSITIVE FAIR VALUES

NEGATIVE FAIR VALUES

NET FAIR VALUES

Interest rate futures Interest rate swaps

EURm

334

2020 2019

241 188

-11 -17

230 171

2,491

Forward foreign exchange contracts

20

24

Currency options

166 791

172 913

Cross currency swaps Commodity contracts

Cash collaterals pledged for derivative contracts totalled EUR 66 million of which EUR 65 million relate to commodity contracts and EUR 1 million to interest rate forward contracts.

194

UPM ANNUAL REPORT 2020 UPM FINANCIAL REPORT 2020 79 195

UPM ANNUAL REPORT 2020

UPM FINANCIAL REPORT 2020 78