UPM Annual Report 2021

ACCOUNTS FOR 2021

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Business area information for the year ended 31 December 2020

Items affecting comparability

Total assets and capital expenditure by country

Assets

Capital expenditure

ELIMINATI ONS AND RECONCILI -ATIONS 2)

EURm

2021 2020

UPM SPECIALTY PAPERS

OTHER OPE RATIONS

EURm Finland

2021 2020 2021 2020

In operating profit Impairment charges Restructuring charges

UPM BIO REFINING

UPM ENERGY

UPM RAFLATAC

UPM COM PAPERS

UPM PLYWOOD

-52 11

-70

EURm, OR AS INDICATED

GROUP

9,889 1,521 4,046

9,050 1,218 2,575

83

131 136 604

-137

1,720

252 127 379 171

1,560

1,148

3,296

385

221

-1

8,580

External sales Internal sales

Germany Uruguay

204

Change in fair value of unrealised cash flow and commodity hedges Capital gains and losses on sale of non-current assets

463

—

176

37

21

4

-827 -828

—

1,159

-8

-3

Total sales

2,183

1,560

1,324

3,333

405

225

8,580

China

711 412 148 101 137 155

683 328 151 103 123 125

7 5 1 2 2

5 6 2 5 5 4 3 1

140

23

Comparable EBIT

166

214

199

180

33

-12

-2

948

United States

Items affecting comparability in operating profit

Total

91 91

-187 -187

United Kingdom

—

14

-9

6

-170

-23 10

-3

-3 -4

-187 761

Total in profit before tax

Austria Russia Poland Estonia France

Operating profit Finance costs, net

166

184

205

206

9

-15

In income taxes Taxes related to items affecting comparability

-24

12

21

16

-169 568

Income taxes

Changes in tax rates

—

-3

Profit for the period Operating assets 1) Deferred tax assets

51 33 53

53 43 48

1 1

Total

12

18

4,004

2,251

656

1,069

1,757

314

2,083

-235

11,898

Total in profit for the period

103

-169

421

Other EU countries Other European countries

—

—

82

Other non-operating assets

27

29

1 1

1 1

2,457

Other financial assets

Certain non-operational or non-cash valuation transactions with significant income statement impact are considered as items affecting comparability and reported separately to reflect the underlying business performance and to enhance comparability from period to period. In 2021, items affecting comparability relate mainly to UPM Communication Papers and include a capital gain on sale of shares of Shotton Mill Ltd amounting to EUR 133 million and impairment charges of newsprint related fixed assets amounting to EUR 50 million. In 2020, items affecting comparability in UPM Communication Papers include EUR 117 million restructuring charges and EUR 58 million impairment charges related to closure of UPM Chapelle paper mill and UPM Kaipola paper mill. In UPM Plywood business area, items affecting comparability include EUR 15 million restructuring charges and EUR 8 million impairment charges related to the closure of Jyväskylä plywood mill. Additionally, restructuring charges reported as items affecting comparability include prior capacity closures in UPM Communication Papers as well as restructuring costs related to the business functions of UPM Communications Papers and UPM Raflatac. Capital gains affecting the comparability comprise of a gain of EUR 12 million relating to sale of group's share in Kainuun Voima Oy as well as earnings of EUR 11 million on the sale of other non-current assets.

Rest of world

392

330

Total assets

14,858

Total

17,676

14,858

1,483

903

325

23

142

197

436

34

198

-220

1,135

Operating liabilities 1) Deferred tax liabilities

564

1,023 2,623 5,345

Other liabilities

Sales by destination country

Other financial liabilities

Total liabilities

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

EURm Finland

2021 2020

1,046 1,395 1,089

865

-8

—

—

—

—

—

-17

—

-25

Germany

1,304

2

—

—

—

—

—

1

— — —

3

United States

963 520 953 326 277 122 159 25

-176

-7 -3

-39

-74

-121

-27

-29

-472

United Kingdom

617

—

—

—

-58

-8

-1

-70

China France

1,058

Impairment charges

3,679 3,620

2,228 2,313

514 542

871 897

1,321 1,446

280 292

1,885 1,901

777 504

11,555 11,514

378

Capital employed, 31 December

Uruguay

63

Average capital employed

659

6

13

27

70

17

110

2

903

Poland Austria Russia

336 151 194

Capital expenditure

Capital expenditure, excluding acquisitions and shares

659

5

13

27

70

17

110 -0.6 649

1

902

4.6

7.4

39.5

22.2

12.4

11.2

— —

8.3

Comparable ROCE, % Personnel, 31 December

Other EU countries

1,651

1,495

2,695

70

3,087

1,932

7,281

2,301

18,014

Other European countries

352

298

Rest of world

1,482 9,814

1,272 8,580

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. » 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.

Total

162

UPM FINANCIAL REPORT 2021 163 UPM ANNUAL REPORT 2021 163

UPM ANNUAL REPORT 2021

UPM FINANCIAL REPORT 2021 162