UPM Annual Report 2023

ACCOUNTS FOR 2023

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Net fair values of derivatives

Timing of nominal amounts of derivatives 2023

Within 1 year

Between 1–5 years

Later than 5 years

Total

Positive fair values

Negative fair values

Positive fair values

Negative fair values

EURm

2023

Net fair values

Net fair values

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

EURm

2023

2022

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

1,735

8

— — —

1,743

Net investment hedge Non-qualifying hedges Cross currency swaps Non-qualifying hedges Interest rate risk Interest rate swaps Fair value hedges Cross currency swaps Fair value hedges Interest rate futures Non-qualifying hedges

287

—

287

25

-12

13

67

-34

33

1,263

15

1,278

Net investment hedge Non-qualifying hedges Cross currency swaps Non-qualifying hedges

3

-2 -5

1

2

-2

— —

19

14

16

-15

—

—

134

134

—

-31 -50

-31

—

-16 -68

-16 18

Derivatives hedging foreign exchange risk

47

-3

85

—

1,089

—

1,089

Interest rate risk Interest rate swaps Fair value hedges

—

—

134

134

24

-94

-69

30

-137

-107

Non-qualifying hedges Cross currency swaps Fair value hedges Non-qualifying hedges

—

-4

-4

—

-2

-2

1,691

—

—

1,691

Commodity risk Electricity sales

27

— —

27

31

— —

31

—

—

—

—

Cash flow hedges

381

60

— —

442

Derivatives hedging interest risk

51

-97

-46

62

-139

-77

Non-qualifying hedges

—

—

—

Commodity risk Electricity sales

Electricity purchase Cash flow hedges

35

2

— —

37

Cash flow hedges

12

-26

-14

19

-54

-35

Non-qualifying hedges Other commodities Non-qualifying hedges

1

—

1

Non-qualifying hedges Electricity purchase Cash flow hedges Other commodities Non-qualifying hedges

—

—

—

—

-2

-2

111

—

—

111

4

—

4

12

-11

1

Timing of nominal amounts of derivatives 2022

Within 1 year

Between 1–5 years

Later than 5 years

Total

—

-6

-6

1

-1

—

EURm

2022

Derivatives hedging commodity risk

16

-32

-16 -66

32

-69

-36

Foreign exchange risk Forward foreign exchange contracts Cash flow hedges

Total

114 -96 No derivatives are subject to offsetting in the group’s financial statements. All derivatives are under ISDA or similar master netting agreement, which are applied on conditional terms, such as case of breach of contract or bankruptcy. The values of derivatives are recognised as gross on the balance sheet and a breakdown by category of instruments is presented in » Note 5.3 Financial assets and liabilities by category. Nominal amounts of derivatives Net fair values of derivatives calculated by counterparty -180 179 -275

2,597

18

— — —

2,615

Net investment hedge Non-qualifying hedges Cross currency swaps Non-qualifying hedges Interest rate risk Interest rate swaps Fair value hedges Cross currency swaps Fair value hedges Interest rate futures Non-qualifying hedges

365 928

—

365 934

5

—

—

149

149

EURm

2023 1,691 1,089 3,308

2022 1,969 1,102 3,913

POSITIVE FAIR VALUES

NEGATIVE FAIR VALUES

NET FAIR VALUES

Interest rate futures Interest rate swaps

EURm

—

352

750

1,102

2023 2022

55 88

-121 -185

-66 -96

Forward foreign exchange contracts

—

—

149

149

Currency options

—

—

Cross currency swaps Commodity contracts

134 591

149

1,969

—

—

1,969

1,744

Commodity risk Electricity sales

Cash collaterals pledged mainly for exchange traded contracts totalled EUR 185 (500) million of which EUR 184 (498) million relate to commodity contracts and EUR 1 (2) million to interest rate futures. The open market value of exchange traded contracts on the balance sheet is minor. Cash collaterals are included in Other receivables. » Refer Note 4.6 Working capital.

Cash flow hedges

968

393

— —

1,361

Non-qualifying hedges

5

1

6

Electricity purchase Cash flow hedges

244

40

— —

283

Non-qualifying hedges Other commodities Non-qualifying hedges

—

—

—

93

—

—

93

The nominals of cross currency swaps are included in both foreign exchange risk and interest rate risk.

214

215

UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023

UPM FINANCIAL REPORT 2023

214

UPM FINANCIAL REPORT 2023

215