UPM Annual Report 2021

ACCOUNTS FOR 2021

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

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 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 57 million (66 million) maturing in 2027 and foreign currency forwards with nominal value of EUR 356 million (462) maturing between 2022 and 2024. 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

2021 2020

2021 Accumulated costs

Intangible rights

2

2

21 -16

293 -247

11

325 -263

Other intangible assets

16 18 85

10 19 81

Accumulated amortisation and impairments

—

Buildings

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

5 5 2

46 59

11

62 67 13

Machinery and equipment

3 8

Other tangible assets

3

3

Additions Disposals

3

Total

124

116

1. Sales Sales by business area

—

—

— —

—

Amortisation

-2

-16 46

-18 62

5. Other operating expenses

Carrying value, at 31 December

5

11

2020 Accumulated costs

EURm

2021 2020

19 -14

303 -244

3

325 -259

EURm

2021 2020

Rents and lease expenses

13

13

Accumulated amortisation and impairments

—

UPM Biorefining Other operations

2,120

1,448

Losses on sale of non-current assets

—

2

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

5 5 2

59 13 29 -10 27 59

3

67 45 34 -13

434

368

Maintenance expenses

86 82

100

27

Total

2,554

1,816

Other operating expenses 1)

67

Additions

3

Total

180

183

Amortisation

-2

—

Sales by destination

1) The research and development costs in operating expenses were EUR 9 million (9 million) and auditor’s fee EUR 2.7 million (2.0 million). In personnel expenses the research and development costs were EUR 20 million (17 million). 6. Income taxes

Reclassifications

—

-27

—

Carrying value, at 31 December

5

3

67

EURm Finland

2021 2020

2,486

1,785

8. Tangible assets

Other EU countries

38 30

16 16

Other countries

Total

ADVANCE PAYMENTS AND CONSTRUCTION IN PROGRESS

2,554

1,816

EURm

2021 2020

MACHINERY AND EQUIPMENT

OTHER TANGIBLE ASSETS

2. Other operating income

LAND AND WATER AREAS BUILDINGS

Tax expense for the period

114

9

EURm

TOTAL

Tax expense for the previous periods

1

-1

2021 Accumulated costs

EURm

2021 2020

Total

115

8

419

599 -403

2,251 -1,737

145 -123

13

3,426 -2,263

10 10 37 57

15 10 18 44

Gains on sale of non-current assets

Accumulated depreciation and impairments

—

— —

Rental income

Deferred tax assets and liabilities 1)

Revaluations

299 718 719

—

—

—

299

Other Total

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

196 212

514 579

21 24

13

1,462 1,541

EURm

2021 2020

7

Deferred tax assets Provisions Share-based payments

3. Personnel expenses

Additions Disposals

1

3

11

—

19

33

92

37

-1

-2

—

-2 -3

— — —

-6

2 1

1 0

Depreciations

— — —

-18

-83

-104

EURm

2021 2020

Other temporary differences

Impairment

—

-1

—

-2

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

Total

95

39

5

6

Reclassifications

2

9

2

-12 13

—

Carrying value, at 31 December

206

190

Other salaries and fees

718

196

514

21

1,462

Deferred tax liabilities Accumulated depreciation difference

2020 Accumulated costs

31

31

Pension costs

83 60

88 60

7

7

Other indirect employee costs

420

613 -401

2,257 -1,677

145 -121

7

3,441 -2,199

Revaluations of land areas

Total

248

234

Accumulated depreciation and impairments

—

— —

Total

143

148

Revaluations

300 719 721

—

—

—

300

1) » Refer Note 3.2 K ey management personnel Personnel

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

212 230

579 601

24 25

7

1,541 1,599

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.

22

Additions Disposals

1

1

43

2

3

50

-2

—

-1

—

-2

-5

2021 2020

Depreciations Reclassifications

— —

-19

-80 16

-3

—

-102

Total average

2,815

3,026

—

—

-17

—

Carrying value, at 31 December

719

212

579

24

7

1,541

214

UPM FINANCIAL REPORT 2021 215 UPM ANNUAL REPORT 2021 215

UPM ANNUAL REPORT 2021

UPM FINANCIAL REPORT 2021 214