UPM Annual Report 2023

ACCOUNTS FOR 2023

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Consolidated statement of changes in equity

Consolidated cash flow statement

EQUITY ATTRIBU TABLE TO OWNERS OF THE PARENT COMPANY

EURm

2023

2022

RESERVE FOR INVESTED NON RESTRICTED EQUITY

Cash flows from operating activities Profit for the period

394

1,556

TRANS LATION RESERVE

NON CONTROLLING INTERESTS

Adjustments 1) Interest received

1,760

35

SHARE CAPITAL

TREASURY SHARES

OTHER RESERVES

RETAINED EARNINGS

TOTAL EQUITY 12,879

37

8

EURm

Interest paid

-116

-43

Value at 1 January 2023

890

-2

449

2,460

1,273

7,433

12,502

376

Dividends received

3

3

— —

— —

—

— —

— —

388

388 -108

6

394 -120

Profit for the period Translation differences

Other financial items, net

-44

-52

-108

—

-13

Income taxes paid 4)

-181 417

-313 -687 508

Cash flow hedges - reclassified to income statement, net of tax Cash flow hedges - reclassified to PPE, net of tax Cash flow hedges - change in fair value, net of tax Net investment hedge, net of tax Energy shareholdings - changes in fair value, net of tax Actuarial gains and losses on defined benefit plans, net of tax Total comprehensive income for the period Share-based payments, net of tax Contributions by non-controlling interests Total transactions with owners for the period Total equity at 31 December 2023 Cash flow hedges - reclassified to income statement, net of tax Cash flow hedges - reclassified to PPE, net of tax Cash flow hedges - change in fair value, net of tax Net investment hedge, net of tax Energy shareholdings - changes in fair value, net of tax Actuarial gains and losses on defined benefit plans, net of tax Total comprehensive income for the period Share-based payments, net of tax Contributions by non-controlling interests Total transactions with owners for the period Total equity at 31 December 2022 Dividend distribution Other items Value at 1 January 2022 Profit for the period Translation differences Dividend distribution Other items

Change in working capital 3)

—

—

—

94

—

—

94

—

94

Operating cash flow

2,269

—

—

—

1

—

—

1

—

1

Cash flows from investing activities Capital expenditure

— —

— —

—

444

— —

— —

444

— —

444

-1,026

-1,398

6

—

6

6

Additions to forest assets

-54 -20

-79

—

—

—

-1,350

—

-1

-1,351

—

-1,351

Acquisition of businesses and subsidiaries, net of cash acquired

-138

Proceeds from sale of property, plant and equipment and intangible assets, net of tax 4)

7

41

—

—

—

—

—

-10

-10

—

-10

Proceeds from sale of forest assets, net of tax 4)

10

7

— — — —

— — — —

-102

-811

— — — —

377

-536

-7

-542

Proceeds from disposal of businesses and subsidiaries and advances received

1 1 0

15 11

— — —

6

-11

-5

—

-5

Proceeds from disposal of shares in associates and joint ventures

— —

-800

-800

-35

-835

Proceeds from disposal of energy shareholdings Net cash flows from net investment hedges

2

—

—

—

—

10

-47

Change in other non-current assets

-5

3

—

—

—

—

—

—

—

35

35

Investing cash flow

-1,076

-1,585

—

—

—

6

—

-811

-805

—

-805

Cash flows from financing activities Proceeds from non-current debt

890

-2

347

1,655

1,273

6,998

11,161

370

11,531

100

4,402 -2,550

Payments of non-current debt

-1,506

890

-2

329

1,938

1,273

6,419 1,526

10,846

261

11,106

Lease repayments

-99

-91

— —

— —

—

— —

— —

1,526

31 14

1,556

Change in current liabilities Net cash flows from derivatives

-260

439

136

—

136

150

6

20

Dividends paid to owners of the parent company Dividends paid to non-controlling interests Contributions paid by non-controlling interests

-799

-693

—

—

—

376

—

—

376

—

376

-36 35

-27 97 99

—

—

—

25

—

—

25

2

27

Change in investment funds Other financing cash flow

0

— —

— —

—

-932

— —

— —

-932

-2

-934

-14

-9

-15

—

-15

—

-15

Financing cash flow

-2,573

1,687

—

—

—

1,050

—

1

1,051

—

1,051

Change in cash and cash equivalents

-1,379

610

—

—

—

—

—

192

192

—

192

Cash and cash equivalents at the beginning of the period Exchange rate effect on cash and cash equivalents

2,067

1,460

— — — —

— — — —

121

519

— — — —

1,718

2,358

45

2,403

-16

-3

— — —

3

-10

-7

—

-7

Change in cash and cash equivalents

-1,379

610

— —

-693

-693

-27

-721

Cash and cash equivalents classified as held for sale (Note 8.4) Cash and cash equivalents at the end of the period

-39

0

-1

-1

—

-1

632

2,067

—

—

—

—

—

—

—

98

98

—

—

—

3

—

-704

-701

70

-631

890

-2

449

2,460

1,273

7,433

12,502

376

12,879

» Refer Note 5.5 Share capital and reserves, for further information.

166

167

UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023

UPM FINANCIAL REPORT 2023

166

UPM FINANCIAL REPORT 2023

167