UPM Annual Report 2020

4. Depreciation, amortisation and impairment charges

7. Intangible assets

All financial derivative contracts of the group are made by the parent company. All contracts are made with external counterparties except some internal derivatives which are used to manage foreign currency and interest rate exposure. Internal derivatives are one cross currency swap with nominal value of EUR 66 million (76 million) maturing in 2027 and foreign currency forwards with nominal value of EUR 462 million (0) maturing between 2021 and 2023. 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.

OTHER INTANGIBLE ASSETS

INTANGIBLE RIGHTS

ADVANCE PAYMENTS

EURm

TOTAL

EURm

2020 2019

2020 Accumulated costs

Intangible rights

2

2 6

19 -14

303 -244

3

325 -259

Other intangible assets

10 19 81

Accumulated amortisation and impairments

—

Buildings

19 80

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

5 5 2

59 13 29 -10 27 59

3

67 45 34 -13

Machinery and equipment

27

Other tangible assets

3

3

Additions

3

Total

116

111

1. Sales Sales by business area

Amortisation

-2

—

Reclassifications

—

-27

—

5. Other operating expenses

Carrying value, at 31 December

5

3

67

2019 Accumulated costs

EURm

2020 2019

EURm

2020 2019

18 -12

248 -236

27

293 -248

Rents and lease expenses

13

13

Accumulated amortisation and impairments

—

UPM Biorefining Other operations

1,448

1,876

Losses on sale of non-current assets

2

3

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

5 5 2

13 17

27 14 19

45 36 23

368

442

Maintenance expenses

100

84 92

Total

1,816

2,318

Other operating expenses 1)

67

Additions Disposals

2

Total

183 192 1) The research and development costs in operating expenses were EUR 9 million (24 million) and auditor’s fee EUR 2.0 million (1.4 million). In personnel expenses the research and development costs were EUR 17 million (16 million). 6. Income taxes

Sales by destination

—

—

-6

-6 -8

Amortisation

-2

-6

—

EURm Finland

2020 2019

Carrying value, at 31 December

5

13

27

45

1,785

2,275

Other EU countries

16 16

22 21

Other countries

8. Tangible assets

Total

1,816

2,318

ADVANCE PAYMENTS AND CONSTRUCTIO N IN

EURm

2020 2019

2. Other operating income

MACHINERY AND EQUIPMENT

OTHER TANGIBLE ASSETS

Tax expense for the period

8 8

43 43

LAND AND WATER AREAS BUILDINGS

Total

EURm

TOTAL

EURm

2020 2019

2020 Accumulated costs

15 10 18 44

5

Gains on sale of non-current assets

Deferred tax assets and liabilities 1)

420

613 -401

2,257 -1,677

145 -121

7

3,441 -2,199

10

Rental income

Accumulated amortisation and impairments

—

— —

3

Other Total

EURm

2020 2019

Revaluations

300 719 721

—

—

—

300

18

Deferred tax assets Provisions Share-based payments

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

212 230

579 601

24 25

7

1,541 1,599

37

10

22

3. Personnel expenses

1

2

Additions Disposals

1

1

43

2

3

50

Total

39

13

-2

—

-1

—

-2

-5

EURm

2020 2019

Depreciations Reclassifications

— —

-19

-80 16

-3

—

-102

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

Deferred tax liabilities Accumulated depreciation difference

—

—

-17

—

6

7

Carrying value, at 31 December

88 60

88 60

719

212

579

24

7

1,541

190

206

Other salaries and fees

2019 Accumulated costs

Revaluations of land areas

31

31

Pension costs

Total

148 148 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.

421

611 -381

2,200 -1,600

143 -118

22

3,398 -2,099

7

7

Other indirect employee costs

Accumulated amortisation and impairments

—

— —

Total

234

250

Revaluations

300 721 720

—

—

—

300

1) » Refer Note 3.2 K ey management personnel Personnel

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

230 244

601 645

25 25

22 11 20

1,599 1,646

Additions Disposals

2

7

28

3

59

-1

-3

—

—

— —

-4

EURm

2020 2019

Depreciations Reclassifications

— —

-19

-80

-3

-102

Total average

3,026

3,070

1

8

—

-9

—

Carrying value, at 31 December

721

230

601

25

22

1,599

208

UPM ANNUAL REPORT 2020 UPM FINANCIAL REPORT 2020 93 209

UPM ANNUAL REPORT 2020

UPM FINANCIAL REPORT 2020 92