UPM Annual Report 2021

ACCOUNTS FOR 2021

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Net fair values of derivatives

Timing of nominal amounts of derivatives 2021

Within 1 year

Between 1–5 years

Later than 5 years

Total

Positive fair values

Negative fair

Positive fair values

Negative fair

EURm

2021

values Net fair values

values Net fair values

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

EURm

2021

2020

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

2,286

2,196

90

— — —

392 872

Net investment hedge Non-qualifying hedges Cross currency swaps Non-qualifying hedges Interest rate risk Interest rate swaps Fair value hedges Cross currency swaps Fair value hedges Interest rate futures Non-qualifying hedges

392 864

—

21

-53 -27 -13

-31 -25

83 12 29

-26

57 11

8

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

2

-1

11

-2

-27

2

161

—

—

161

—

-4

-4

1

—

1

Derivatives hedging foreign exchange risk

33

-97

-63

125

-54

71

1,081

—

—

1,081

Interest rate risk Interest rate swaps Fair value hedges

161

—

—

161

86

-23

63

113

— —

113

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

2

—

2

2

2

2,280

2,190

89

—

Commodity risk Electricity sales

40

— —

40

44

— — —

44

—

—

—

—

947

Cash flow hedges

612

335

— —

Derivatives hedging interest risk

128

-23

105

159

159

2

Non-qualifying hedges

—

2

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

Electricity purchase Cash flow hedges

505

397

108

—

—

-6

-6

1

-1

—

Other commodities Non-qualifying hedges

54

54

—

—

1

—

—

1

-1

—

Other commodities Non-qualifying hedges

Timing of nominal amounts of derivatives 2020

Within 1 year

Between 1–5 years

Later than 5 years

Total

—

-3 -9

-2 -8

1 2

—

— —

EURm

2020

Derivatives hedging commodity risk

1

-2

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

Total

162

-128

34

286

-56

230

2,445

2,004

441

— — —

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

228

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

228

—

1,319

1,318

1

Nominal amounts of derivatives

Net fair values of derivatives calculated by counterparty

20

20

—

—

EURm

2021 2,280 1,081 3,550

2020 2,391 1,056 3,992

POSITIVE FAIR VALUES

NEGATIVE FAIR VALUES

166

—

—

166

NET FAIR VALUES

Interest rate futures Interest rate swaps

Interest rate risk Interest rate swaps Fair value hedges

EURm

2021 2020

124 241

-90 -11

34

Forward foreign exchange contracts

1,056

— —

— —

1,056

230

—

20

Currency options

—

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

—

161

166 791

Cross currency swaps Commodity contracts

1,508

166

—

—

166

Cash collaterals pledged for derivative contracts totalled EUR 292 million of which EUR 291 million relate to commodity contracts and EUR 1 million to interest rate futures.

2,391

2,391

—

—

Commodity risk Electricity sales

478

Cash flow hedges

274

204

— —

6

Non-qualifying hedges Electricity purchase Cash flow hedges Other commodities Non-qualifying hedges

—

6

283

145

138

—

24

24

—

—

The nominals of cross currency swaps are included in both foreign exchange risk and interest rate risk.

200

UPM FINANCIAL REPORT 2021 201 UPM ANNUAL REPORT 2021 201

UPM ANNUAL REPORT 2021

UPM FINANCIAL REPORT 2021 200