UPM Annual Report 2023

ACCOUNTS FOR 2023

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

4. Depreciation, amortisation and impairment charges

7. Intangible assets

except internal derivatives which are used to manage foreign currency and interest rate exposure.

OTHER INTANGIBLE ASSETS

Financial risks, fair values and maturities of the group external derivatives are disclosed in » Note 6.1 Financial risk management and in » Note 6.2 Derivatives and hedge accounting.

INTANGIBLE RIGHTS

ADVANCE PAYMENTS

EURm

TOTAL

EURm

2023 2022

2023 Accumulated costs

Intangible rights

2

2

22 -18

300 -273

26

348 -291

Other intangible assets

13 16 79

13 17 82

1. Sales Sales by business area

Accumulated amortisation and impairments

—

Buildings

Carrying value, at 31 December Carrying value, at 1 January

5 5 2

27 32

26 22

58 60 18

Machinery and equipment

Other tangible assets

3

3

Additions Disposals

8

8

Total

112

117

EURm

2023 2022

—

-5

— —

-5

UPM Fibres

2,075

1,973

Amortisation

-2

-13

-15

5. Other operating expenses

Other operations

509

440

Reclassifications

—

4

-4

—

Total

2,585

2,414

Carrying value, at 31 December

5

27

26

58

EURm

2023 2022

2022 Accumulated costs

Rents and lease expenses Maintenance expenses Other operating expenses 1)

15

13

Sales by destination

22 -18

293 -260

22

337 -278

146 188 349

118 159 289

Accumulated amortisation and impairments

—

EURm Finland

2023 2022

Carrying value, at 31 December Carrying value, at 1 January

5 5 2

32 46

22 11 12

60 62 13 -16 60

Total

2,515

2,342

Other EU countries

45 24

46 26

Additions

—

1) The research and development costs in operating expenses were EUR 32 million (25 million) and auditor’s fee EUR 3.2 million (2.9 million). In personnel expenses the research and development costs were EUR 16 million (16 million). 6. Income taxes

Other countries

Amortisation

-2

-13 32

—

Total

Carrying value, at 31 December

2,585

2,414

5

22

8. Tangible assets

2. Other operating income

ADVANCE PAYMENTS AND CONSTRUCTION IN PROGRESS

EURm

2023 2022

EURm

2023 2022

MACHINERY AND EQUIPMENT

OTHER TANGIBLE ASSETS

Tax expense for the period

9

74 10 84

Gains on sale of non-current assets

5 6

13

LAND AND WATER AREAS BUILDINGS

Tax expense for the previous periods

-10

Rental income

9

EURm

TOTAL

Total

-1

Other Total

92

59 81

2023 Accumulated costs

103

450

574 -408

2,268 -1,854

138 -120

26

3,456 -2,382

Deferred tax assets and liabilities 1)

Accumulated depreciation and impairments

—

— —

Revaluations

298 748 746

—

—

—

298

3. Personnel expenses

EURm

2023 2022

Carrying value, at 31 December Carrying value, at 1 January

166 178

414 453

18 19

26 21 23

1,372 1,418

Deferred tax assets Provisions Share-based payments

33

58

EURm

2023 2022

Additions Disposals

2

1

24

2

52

2

3

Salaries and fees of the President and CEO, and members of the Board of Directors 1)

— — —

—

—

—

— —

-1

7

7

Other temporary differences

24 60

176 236

Depreciations Reclassifications

-16

-79 15

-3

-97

Total

Other salaries and fees

191

187

2

—

-17 26

—

Pension costs 2)

36

-95

Carrying value, at 31 December

748

166

414

18

1,372

Deferred tax liabilities Accumulated depreciation difference

Other indirect employee costs

7

7

2022 Accumulated costs

Total

241

106

73 60

80 60

449

570 -392

2,230 -1,777

139 -120

21

3,409 -2,289

Revaluations of land areas

Accumulated depreciation and impairments

—

— —

1) » Refer Note 3.2 Key management personnel 2) Pension expenses in 2022 include pension fund excess return of EUR 123 million from UPM Sellutehtaiden eläkesäätiö. Personnel 2023 2022 Total average 2,932 2,765

Total

133

139

Revaluations

298 746 718

—

—

—

298

Carrying value, at 31 December Carrying value, at 1 January

178 196

453 514

19 21

21 13 18

1,418 1,462

1) The parent company has not recognised deferred tax assets and liabilities in the balance sheet. Deferred tax assets and liabilities are calculated based on temporary differences between the carrying and taxable values of assets and liabilities.

Additions Disposals

33

—

13

— —

66

-3

-2

-1

— —

-6

Depreciations Reclassifications

— —

-17

-82

-3

-102

1

9

— —

-10

—

Changes in revaluations

-2

—

—

—

-2

Carrying value, at 31 December

746

178

453

19

21

1,418

228

229

UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023

UPM FINANCIAL REPORT 2023

228

UPM FINANCIAL REPORT 2023

229