UPM Annual Report 2024
WE ARE UPM
GOVERNANCE
ACCOUNTS AND PERFORMANCE
Report of the Board of Directors
Sustainability Statement
Financial Statements
Auditor's Report
Sustainability Assurance Reports
Other financial information Alternative performance measures
Reconciliation of key figures to IFRS (Quarterly key figures are unaudited) EURm, OR AS INDICATED
Q1– Q4/24
Q1– Q4/23
Q4/24 Q3/24 Q2/24 Q1/24 Q4/23 Q3/23 Q2/23 Q1/23
Items affecting comparability Impairment charges
-516
11
-44 -83
0 2
-1
-113 -132
-2
-1
-549 -103
-117 -199
UPM presents certain performance measures of historical performance, financial position and cash flows, which in accordance with the “Alternative Performance Measures” guidance issued by the European Securities and Markets Authority (ESMA) are not accounting measures defined or specified in IFRS Accounting Standards and are therefore considered as alternative performance measures. These alternative performance measures are described below:
-18
-3
-15
-15
-37
Restructuring charges
Change in fair value of unrealised cash flow and commodity hedges Capital gains and losses on sale of non-current assets
8 1 0 3
12
-10
-3
-10
-5
8 3 0 0 1 4 0 -5
5
7
-2
0 0
5 0 0
22
0
2 0 0
-6
29
0
0 0
-86
0 0
0
-86
Fair value changes of forest assets
-6
0
-4
0
Other non-operational items
ALTERNATIVE PERFORMANCE MEASURE DEFINITION Operating profit
-523
14
-132
21
-113
-249
-38 -67
-620
-405
Total items affecting comparability in operating profit Items affecting comparability in financial items
Profit before income tax expense, finance expenses and finance income and net gains on sale of energy shareholdings as presented on the face of the IFRS income statement. Gains on sale of energy shareholdings are not recorded to the income statement from 2018 onwards.
0
0
-3
0 0
0
1
-3
-65
100 -423
-3
37 -98
26 -87
71
8
133 -490
109 -361
Items affecting comparability in taxes Items affecting comparability, total
11
21
-177
-97
Comparable EBIT Comparable EBITDA
Operating profit adjusted for items affecting comparability.
Comparable EBITDA Operating profit (loss)
Operating profit before depreciation, amortisation and impairments, change in fair value of forest assets and wood harvested, share of results of associates and joint ventures and items affecting comparability.
-105
305
50
354
211
-29
108
318
604
608
Depreciation, amortisation and impairment charges excluding items affecting comparability Change in fair value of forest assets and wood harvested excluding items affecting comparability
Comparable profit before tax Comparable profit for the period
Profit before income tax expense excluding items affecting comparability. Profit for the period excluding items affecting comparability and their tax impact.
147
144
151
147
152
152
125
114
590
543
-130
16
27
8 1
-10
5 0
16
5 1
-80
17
Comparable EPS, EUR
Earnings per share calculated in accordance with IFRS excluding items affecting comparability and their tax impact. Total of current and non-current debt less cash and cash equivalents and interest-bearing current and non-current financial assets. Certain non-operational or non-cash valuation transactions with significant income statement impact are considered as items affecting comparability, if they arise from asset impairments, restructuring measures, asset sales, fair value changes of forest assets resulting from changes in valuation parameters or estimates or changes in legislation or legal proceedings. In addition, the changes in fair value of unrealised cash flow and commodity hedges and business acquisition costs are classified as items affecting comparability. Numerical threshold for items to be considered as significant is EUR 1 million pre-tax in all business areas.
0
-1
-1
0
0 5
-1
1
Share of result of associates and joint ventures Items affecting comparability in operating profit
Net debt
523 436 16.5 -105 523 418 15.9
-14
132 359 14.1
-21
113 465 18.4 211 113 323 12.8
249 376 14.6
38
620
405
Comparable EBITDA
450 17.9
489 18.5
255 10.0
477 17.1
1,734
1,573
Items affecting comparability
16.8
15.0
% of sales
Comparable EBIT Operating profit (loss)
305
50
354
-29
108
318
604 620
608 405
-14
132 182
-21
249 220
5
38
Items affecting comparability in operating profit
Comparable EBIT
291 11.5
333 12.6
114
356 12.8
1,224
1,013
Free cash flow
Cash generated from operations after cash used for investing activities. Profit for the period as a percentage of average equity. Return on equity (ROE) excluding items affecting comparability.
7.2
8.5
4.5
11.8
9.7
% of sales
Return on equity (ROE), %
Comparable profit before tax Profit (loss) before tax
Comparable ROE, %
-131 523
271
28
332
180 113
-52
96
239
500 620
464 405
-14
132
-21
249
5
38 67
Items affecting comparability in operating profit Items affecting comparability in financial items
Return on capital employed (ROCE), %
Profit before taxes, interest expenses and other financial expenses as a percentage of average capital employed.
0
0
3
—
—
-1
-1
3
65
Comparable ROCE, %
Return on capital employed (ROCE) excluding items affecting comparability.
Comparable profit before tax Comparable ROCE, % Comparable profit before tax
392
257
163
311
293
196
101
344
1,123
934
Capital employed
Group total equity and total debt.
Business area’s comparable ROCE, %
Business area’s operating profit adjusted for items affecting comparability as a percentage of business area’s average capital employed. Business area’s operating assets less its operating liabilities. 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. Capitalised investments in property, plant and equipment, intangible assets including goodwill arising from business combinations, energy shareholdings and other shares, associates and joint ventures.
392
257
163
311
293
196
101
344
1,123
934 112
31
37
29
28
40
33
22
17
126
Interest expenses and other financial expenses
Business area’s capital employed
423
294
192
339
333
229
123
361
1,249
1,046
15,262 14,831 14,809 14,972 15,044 15,246 15,900 17,196 15,184 16,414
Capital employed, average Comparable ROCE, %
Capital expenditure
11.1
7.9
5.2
9.1
8.9
6.0
3.1
8.4
8.2
6.4
Comparable profit for the period Profit (loss) for the period Items affecting comparability, total Comparable profit for the period Comparable EPS, EUR Comparable profit for the period
Capital expenditure excluding acquisitions and shares
Capital expenditure excluding investments in shares and participations.
-95
246
33 98
279
161
-28
77
183
463 490 953
394 361 755
423 328
-11
-21
87
177 149
—
97
Operating cash flow per share, EUR
Operating cash flow divided by adjusted average number of shares during the period excluding treasury shares.
236
131
258
248
77
281
Gearing ratio, % Net debt to EBITDA
Net debt as a percentage of total equity Net debt divided by comparable EBITDA
328
236
131
258
248
149
77
281
953
755
-4
-10
-6
-7
-1
2
1
-7
-27
-6
Profit attributable to non-controlling interest
Equity to assets ratio, %
Equity expressed as a percentage of total assets less advances received.
324
226
125
251
246
151
78
273
926
749
533,324 533,324 533,324 533,324 533,324 533,324 533,324 533,324 533,324 533,324
Average number of shares basic (1,000)
Comparable EPS, EUR
0.61 328
0.42 236
0.23 131
0.47 258
0.46 248
0.28 149
0.15
0.51 281
1.74 953
1.40 755
Comparable profit for the period
77
11,356 11,134 11,451 11,669 11,670 11,751 12,290 12,883 11,535 12,205
Total equity, average Comparable ROE, %
11.5
8.5
4.6
8.9
8.5
5.1
2.5
8.7
8.3
6.2
UPM FINANCIAL REPORT 2024 350
350
UPM FINANCIAL REPORT 2024
351
351
UPM ANNUAL REPORT 2024
UPM ANNUAL REPORT 2024
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