UPM Annual Report 2023

ACCOUNTS FOR 2023

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Business area information for the year ended 31 December 2023

Business area information for the year ended 31 December 2022

ELIMINATI ONS AND RECONCILI -ATIONS 2)

ELIMINATI ONS AND RECONCILI -ATIONS 2)

UPM SPECIALTY PAPERS

OTHER OPE RATIONS 3)

UPM SPECIALTY PAPERS

OTHER OPE RATIONS

UPM FIBRES

UPM ENERGY

UPM RAFLATAC

UPM COM PAPERS

UPM PLYWOOD

UPM FIBRES

UPM ENERGY

UPM RAFLATAC

UPM COM PAPERS

UPM PLYWOOD

EURm, OR AS INDICATED

GROUP

EURm, OR AS INDICATED

GROUP

External sales Internal sales

2,052

343 390 734 381

1,981

1,423

4,792

518

608

2

11,720

External sales Internal sales

2,452

486 141 628 182

1,485

1,300

3,570

402

768

-3

10,460

652

—

254

73

21

26

-1,416 -1,415

—

592

—

185

28

20

34

-1,000 -1,003

—

Total sales

2,704

1,982

1,677

4,866

539 109

634

11,720

Total sales

3,044

1,485

1,485

3,598

422

802

10,460

Comparable EBIT

570

214

153

619

81

-31

2,096

Comparable EBIT

116

103

98

462

56

-14

8

1,013

Items affecting comparability in operating profit

-53

—

-11

—

12

-65 44

-16 64

13 -18

-122

Items affecting comparability in operating profit

—

—

-22

—

-288

-6

-87

-2

-405

Operating profit Finance costs, net

517

381

203

153

631

1,974

Operating profit Finance costs, net

116

182

81

98

174

50

-101

6

608 -144

-30

Income taxes

-388

Income taxes

-71

Profit for the period Operating assets 1) Deferred tax assets

1,556

Profit for the period Operating assets 1) Deferred tax assets

394

6,888

4,068

995

1,316

2,245

297

3,153

-657

18,304

7,314

2,624

831

1,022

1,619

276

3,374

-411

16,648

485

431

Other non-operating assets

82

Other non-operating assets

62

Other financial assets

3,336

Other financial assets

1,332

Total assets

22,207

Total assets

18,473

Operating liabilities 1) Deferred tax liabilities

510

240

201

379

649

47

448

-596

1,878

Operating liabilities 1) Deferred tax liabilities

419

116

144

219

377

29

431

-408

1,328

636 733

616 832

Other liabilities

Other liabilities

Other financial liabilities

6,081 9,329

Other financial liabilities

4,166 6,942

Total liabilities

Total liabilities

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation and amortisation

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation and amortisation

11

—

—

—

—

—

2

—

12

-20

—

—

—

—

—

-82

—

-103

3

—

—

—

3

—

-2

— — —

4

2

—

—

—

-1

—

-2

—

-1

-187

-7

-37

-77

-81

-23 -43

-45 -19

-457

-270

-7

-43

-74

-78

-21

-44

— —

-538 -123

Impairment charges

—

—

-4

—

1

-65

Impairment charges

-2

—

-4

—

-117

—

—

Capital employed, 31 December

6,378 5,867 1,005

3,827 3,286

793 681 175

937 889

1,596 1,506

250 247

2,705 2,577

1,426

17,913 15,836

Capital employed, 31 December

6,895 6,839

2,508 3,042

687 737

803 875

1,242 1,424

246 254

2,943 2,922

-408 321

14,916 16,414

Average capital employed

784

Average capital employed

Capital expenditure

8

18

57

9

283

1

1,555

Capital expenditure

616

3

26

23

50

15

388

—

1,122

Capital expenditure, excluding acquisitions and shares

Capital expenditure, excluding acquisitions and shares

1,005

8

18

18

57

9

283

1

1,399

616

3

26

23

50

15

361

—

1,094

Comparable ROCE, % Personnel, 31 December

9.7

11.6

31.5

17.2

41.1

44.3

3.1

— —

13.6

Comparable ROCE, % Personnel, 31 December

1.7

6.0

14.0

11.2

32.4

22.2

-0.5

— —

6.4

2,688

79

3,319

1,959

6,289

1,982

921

17,236

2,775

81

3,100

1,963

6,005

1,634

1,015

16,573

1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings, investments in associates and joint ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments. » Refer Other financial information on Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS Accounting Standards.

1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings, investments in associates and joint ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments. » Refer Other financial information on Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS Accounting Standards.

174

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UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023

UPM FINANCIAL REPORT 2023

174

UPM FINANCIAL REPORT 2023

175