UPM Annual Report 2023
ACCOUNTS FOR 2023
UPM
BEYOND FOSSILS
BUSINESSES
RESPONSIBILITY
GOVERNANCE
8.3 Related party transactions The Board of Directors and the Group Executive Team There have not been any material transactions between UPM and its members of the Board of Directors or the Group Executive Team (key management personnel) or persons closely associated with these members or organisations in which these individuals have control or significant influence. There are no loans granted to any members of the Board of Directors or the Group Executive Team at 31 December 2023 or 2022. For information concerning shares held by members of the Board of Directors as well as remuneration to members of the Board of Directors and the Group Executive Team are disclosed in » Note 3.2. Key management personnel. Associates and joint ventures Austria Papier Recycling GmbH purchases recovered paper in Austria and L.C.I s.r.l. in Italy. ASD Altpapier Sortierung Dachau GmbH is a German recovered paper sorting company. Transactions with associates and joint ventures are presented in the table below. The group has no individually material associates or joint ventures.
8.4 Assets held for sale Assets and liabilities classified as held for sale as at 31 December 2023 relate to agreement to sell 100% of the shares of Austrian subsidiary UPM-Kymmene Austria GmbH to the HEINZEL GROUP as announced in June 2022. The transaction comprises the UPM Steyrermühl site and the Steyrermühl sawmill operations. UPM Communication Papers ended the newspaper production at Steyrermühl paper mill in June 2023. The following assets and liabilities were reclassified as held for sale in relation to the sale of UPM-Kymmene Austria GmbH as of 31 December 2023. On 2 January 2024, UPM announced that it has completed the sale.
COUNTRY OF INCORPORATION
SUBSIDIARIES
HOLDING % 2023 HOLDING % 2022
UPM Raflatac (S) Pte Ltd UPM Raflatac (UK) Ltd. UPM Raflatac Chile SpA UPM Raflatac Co. Ltd. UPM Raflatac GmbH UPM Raflatac Iberica S.A. UPM Raflatac NZ Limited UPM Raflatac Oy UPM Raflatac Pty Ltd UPM Raflatac S.r.l. UPM Raflatac SAS UPM Raflatac Sdn.Bhd. UPM Raflatac Inc.
SG GB CL TH DE ES US MX NZ
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00
100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00
UPM Raflatac Mexico S.A. de C.V.
FI
AU AR
EURm
2023
FR
Other intangible assets
2
MY ZA
Property, plant and equipment
21
UPM Raflatac South Africa (Pty) Ltd
Leased assets
1 5
UPM Raflatac Sp. z o .o.
PL
Other non-current financial assets
UPM S.A.
UY DE
Deferred tax assets Non-current assets
13 41
UPM Sales GmbH
UPM Sales Oy
FI FI FI
Inventories
7
UPM Specialty Papers Oy
Trade and other receivables Other current financial assets Cash and cash equivalents
15
EURm
2023 2022
UPM Sähkönsiirto Oy
4
Dividends received
2
3
UPM Trading (Shanghai) Co
CN UY MT
39 65
Purchases of raw materials and services
37
57
93.55
Uruwood S.A.
93.25
Current assets
Loan receivables
5
5 1 7
100.00
Werla Insurance Company Ltd
100.00
Assets classified as held for sale Net retirement benefit liabilities
106
Trade and other receivables Trade and other payables
—
36
5
Provisions
1 2
1) In 2023, UPM completed acquisition of SunCoal Industries GmbH. » Refer to note 8.1. Business acquisitions and disposals.
Non-current debt
COUNTRY OF INCORPORATION
HOLDING % 2023
HOLDING % 2022
Non-current liabilities
39 17 17 56
JOINT OPERATIONS
Subsidiaries and joint operations » Refer Note 8.2 Principal subsidiaries and joint operations.
Trade and other payables
Oy Alholmens Kraft Ab (Pohjolan Voima Oyj, G series and direct ownership)
FI
50.00 50.00 50.00 54.00 76.00
50.00 50.00 50.00 54.00 76.00 50.00 71.95
Current liabilities
EEVG Entsorgungs- und Energieverwertungsgesellschaft m.b.H.
AT
Liabilities classified as held for sale
Järvi-Suomen Voima Oy
FI FI FI
Pension Funds In the UK, the single UPM Pension Scheme operates under a Trust which is independent from the group. The Trust consists of various defined benefit sections, all of which are closed to future accrual and one common defined contribution section which is open to all UPM employees in the UK. The group made contributions of EUR 0 million (6 million) to the defined benefit sections of the Scheme in 2023. The fair value of the UK defined benefit fund assets at 31 December 2023 was EUR 297 million (300 million), of which 16% was invested in equity instruments, 54% in debt instruments, 7% in property, 17% money market and 5% in other investments. Previously part of group´s Finnish employees were insured with TyEL foundation (UPM Sellutehtaiden eläkesäätiö) which was classified as a defined benefit plan. In 2022, TyEL foundation was replaced with defined contribution arrangement. The assets and liabilities of the plan were transferred to the insurance company and the group recognised EUR 69 million settlement loss in the income statement. The cash received on the settlement amounted to EUR 128 million.
Kaukaan Voima Oy (Pohjolan Voima Oyj, G9 series) Kymin Voima Oy (Pohjolan Voima Oyj, G2 series)
No assets or liabilities were classified as held for sale at the end of 2022.
Madison Paper Industries
US
—
Rauman Biovoima Oy (Pohjolan Voima Oyj, G4 series)
FI
71.95
Accounting policies Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell, if UPM will recover their carrying amount through a sale transaction which is considered highly probable. Non-current assets classified as held for sale, or included within a disposal group that is classified as held for sale, are not depreciated after the classification.
Non-controlling interests UPM has non-controlling interests mainly in Uruguay companies. Summarised financial information of Uruguay subsidiaries that have non-controlling interests is presented in the following table. The amounts disclosed are before inter-company eliminations.
EURm
2023
2022
Profit for the period
60
339
Other comprehensive income for the period Total comprehensive income for the period
3
2
63
341
Share of non-controlling interests
6
31
Non-current assets
3,449
3,100 1,034
Current assets
712 121 188
Non-current liabilities
29
Current liabilities
176
Net assets
3,852
3,929
Share of non-controlling interests
347
354
220
221
UPM ANNUAL REPORT 2023
UPM ANNUAL REPORT 2023
UPM FINANCIAL REPORT 2023
220
UPM FINANCIAL REPORT 2023
221
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