UPM Annual Report 2021

ACCOUNTS FOR 2021

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

12. Provisions

14. Current liabilities

PAYABLES TO PARTICIPATING INTEREST COMPANIES PAYABLES TO OTHERS

PAYABLES TO GROUP COMPANIES

OTHER 1)

EURm

RESTRUCTURING TERMINATION ENVIRONMENTAL

TOTAL

EURm

TOTAL

2021 Provisions at 1 January

2021 Trade payables

3

5 1

8 1

172

187

165

1

335

501 110

Provisions made during the year Provisions utilised during the year Unused provisions reversed Carrying value, at 31 December

— — —

13

15

12

— —

98

Accrued expenses and deferred income 1)

-2 -1

— —

—

-2

2,696 2,873

259 692

2,955 3,566

Other current liabilities

-47

-48

Carrying value, at 31 December

1

3

3

9

137

152

2020 Trade payables

40 18

1

247

288 101

2020 Provisions at 1 January

— —

83 36

Accrued expenses and deferred income 1)

3

3 4

8

35

49

1,963 2,021

2,000 2,390

Other current liabilities

Provisions made during the year Provisions utilised during the year Carrying value, at 31 December

— —

— —

141

145

Carrying value, at 31 December

1

368

-1

-5

-7

3

5

8

172

187

1) Accrued expenses and deferred income EURm

1) Other provisions are attributable to onerous contracts and fair value losses of financial derivatives. At the end of 2021 the fair value loss in other provisions of EUR 3 million (5 million) is attributable to one group internal cross currency swap and EUR 13 million (47 million) to group internal foreign currency forwards.

2021

2020

Personnel expenses Interest expenses

80

65

6

4

Exchange gains and losses

23

31

13. Non-current liabilities

Maturity in 2027 (in 2026) or later

Other items

1

1

Carrying value, at 31 December

110

101

EURm Bonds

2021 2020

EURm Bonds

2021 2020

15. Commitments

In addition, the parent company acts as a guarantor on behalf of other companies belonging to the group. Majority of such commitments relate to major investment projects and can end up payable by the parent company in case group companies are unable to manage their obligations. » Refer Note 4.1 Property, plant and equipment for information about major investment projects. Pension commitments of the President and CEO and the

1,581

1,056

1,581

1,056

Loans from financial institutions Payables to group companies Other non-current liabilities Carrying value, at 31 December

200 153 161

100 168 166

Loans from financial institutions Other non-current liabilities

123 161

77

166

EURm

2021

2020

Total

1,865

1,299

Guarantees Guarantees for loans on behalf of group companies Other guarantees on behalf of group companies Other commitments Leasing commitments, due within 12 months Leasing commitments, due after 12 months

2,095

1,490

1

—

36

26

members of the Group Executive Team » Refer Note 3.2 Key management personnel. Related party transactions » Refer Note 8.3 Related party transactions.

Bonds

11 39 53

26 45 49

CARRYING VALUE

CARRYING VALUE

Other commitments

NOMINAL VALUE ISSUED, MILLION

2021 EURm

2020 EURm

Total

140

148

INTEREST RATE, % CURRENCY

FIXED RATE PERIOD

1997–2027 2020–2028 2021-2031

7.450 0.125 0.500

USD EUR EUR

375 750 500

331 750 500

306 750

16. Shares and holdings owned by parent company

—

COUNTRY OF INCORPORATION

HOLDING %

Carrying value, at 31 December

1,581 1,581

1,056 1,056

Myllykoski Oyj SUBSIDIARIES

Non-current portion

FI FI FI FI

100.00 100.00

Repola Investment Oy Suurijärven Huolto Oy

65.44

Unicarta Oy

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

UPM (Vietnam) Limited

VN CH SG NL DE BG

UPM AG

UPM Asia Pacific Pte. Ltd.

UPM B.V.

UPM Biochemicals GmbH

UPM Bulgaria EOOD

UPM Communication Papers Oy

FI FI

UPM Energy Oy

218

UPM FINANCIAL REPORT 2021 219 UPM ANNUAL REPORT 2021 219

UPM ANNUAL REPORT 2021

UPM FINANCIAL REPORT 2021 218