UPM Annual Report 2022

ACCOUNTS FOR 2022

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Financial Statements 2022

Consolidated financial statements, IFRS Consolidated income statement

159 160 161 162 164 192 192 195 200 203 203 205 205 207 211 211 211 213 213 214 216 216 216 216 216 217

Consolidated income statement and statement of comprehensive income

Consolidated balance sheet

EURm

NOTE

2022

2021 9,814

Consolidated statement of changes in equity

Sales

2.1, 2.2

11,720

Consolidated cash flow statement

Other operating income

2.3 2.3 4.2

231

254

Notes to the consolidated financial statements

Costs and expenses

-9,470

-8,104

Change in fair value of forest assets and wood harvested Share of results of associated companies and joint ventures Depreciation, amortisation and impairment charges

12

111

1. Basis for reporting 1.1 Corporate information 1.2 Basis of preparation 1.3 Consolidation principles 1.4 Foreign currency translation 1.5 Changes in accounting policies

5. Capital structure 5.1 Capital management

164 164 164 165 166 166 167 167 172 173 175 176 176 176 177 179 182 183 185 185 187 189 190

4

2

2.3, 4.1, 4.4

-522

-515

Operating profit

1,974

1,562

5.2 Net debt

5.3 Financial assets and liabilities by category

Exchange rate and fair value gains and losses

5.4 5.4

25 -55

-3

5.4 Financial income and expenses 5.5 Share capital and reserves

Interest and other finance costs, net

-12

Profit before tax

1,944

1,548

2. Business performance

6. Risk management

Income taxes

7.1

-388

-240

2.1 Business areas

6.1 Financial risk management

Profit for the period

1,556

1,307

2.2 Sales

6.2 Derivatives and hedge accounting

2.3 Operating expenses and other operating income

Attributable to: Owners of the parent company

1,526

1,286

7. Income tax

2.4 Earnings per share and dividend

Non-controlling interests

8.1

31

22

7.1 Tax on profit for the year

1,556

1,307

3. Employee rewards

7.2 Deferred tax

3.1 Employee costs

Earnings per share for profit attributable to owners of the parent company Basic earnings per share, EUR

8. Group structure

3.2 Key management personnel 3.3 Share-based payments 3.4 Retirement benefit obligations

2.4 2.4

2.86 2.86

2.41 2.41

8.1 Business acquisitions and disposals 8.2 Principal subsidiaries and joint operations

Diluted earnings per share, EUR

8.3 Related party transactions

4. Capital employed

8.4 Assets held for sale

Consolidated statement of comprehensive income

4.1 Property, plant and equipment

9. Unrecognised items

4.2 Forest assets

EURm

NOTE

2022 1,556

2021 1,307

4.3 Energy shareholdings

9.1 Commitments and contingencies

Profit for the period

4.4 Goodwill and other intangible assets

9.2 Litigation

Other comprehensive income for the period, net of tax Items that will not be reclassified to income statement: Actuarial gains and losses on defined benefit plans

4.5 Provisions

9.3 Events after balance sheet date

4.6 Working capital

192

96

10. Other notes

217 217

Changes in fair value of energy shareholdings

1,051

632

10.1 Forthcoming new standards, amendments and accounting policy changes

Items that may be reclassified subsequently to income statement: Translation differences

150

337

Net investment hedge

-15

-21

Cash flow hedges

-531 847

-127 918

218

Parent company accounts

Other comprehensive income for the period, net of tax

7.2

Total comprehensive income for the period

2,403

2,225

Attributable to: Owners of the parent company

2,358

2,194

Non-controlling interests

45

31

2,403

2,225

The notes are integral part of these consolidated financial statements.

158

159

UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022

UPM FINANCIAL REPORT 2022

158

UPM FINANCIAL REPORT 2022

159