UPM Annual Report 2025
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Sustainability Statement
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Deferred tax assets and liabilities 1)
Derivatives Realized results of derivative contracts and negative fair value of open derivative contracts are recognized in the income statement. Negative fair value of open derivative contracts that are not settled in cash is recognized as a provision in the balance sheet. Hedge accounting is not applied. Income and expenses of balance sheet hedging and forward foreign exchange contracts hedging commercial foreign currency flow of all Group companies are recognized in financial items . Income and expenses of commodity derivatives are recognized in operating profit. Income and expenses of commodity derivative contracts of Group companies are recognized in financial items. The majority of financial derivative contracts of the Group are made by the parent company. All contracts are made with external counterparties except internal derivatives which are used to manage foreign currency and interest rate exposure. 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 .
3. Personnel expenses
€ million
2025
2024
€ million
2025
2024
Deferred tax assets Provisions Share-based payments Other temporary differences
Salaries and fees of the President and CEO, and members of the Board of Directors 1)
29
40
3
3
1 1
1
Other salaries and fees
193
203
2
Pension costs
33
35
Total
32
43
Other indirect employee costs
6
5
Total
234
247
Deferred tax liabilities Accumulated depreciation difference
1) Refer to » Note 3.2 Key management personnel
64 60
69 60
Revaluations of land areas
Personnel
Total
124
129
1) The parent company has not recognized 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.
2025
2024
Total average
2,775
2,933
7.
Intangible assets
4. Depreciation, amortization and impairment charges
1. Sales Sales by business area
Other intangible assets
Intangible rights
Advance payments
€ million
Total
€ million
2025
2024
2025 Accumulated costs
Intangible rights
8
2
€ million
2025
2024
38 -17
333
34
405 -310
Other intangible assets
12 12
15 14 70
UPM Fibres
1,861
2,043
Accumulated amortization and impairments
-292
—
Buildings
Other operations
609
556
Carrying value, at December 31 Carrying value, at January 1
21
41 21 13
34
96 67 75
Machinery and equipment
59
Total
2,470
2,599
5
41 13
Other tangible assets
2
2
Additions Disposals
49
Total
95
103
-24
—
— —
-24
Sales by destination
Amortization
-8
-12
-21
5. Other operating expenses
€ million
2025
2024
Reclassifications
—
19 41
-20
-1
Carrying value, at December 31
21
34
96
Finland
2,414
2,545
€ million
2025
2024
2024 Accumulated costs
Other EU countries
31
34 20
Rents and lease expenses Maintenance expenses Other operating expenses 1)
14
14 91
23
302 -281
41
367
Other countries
25
95
Accumulated amortization and impairments
-19
—
-300
Total
2,470
2,599
218 327
181
Carrying value, at December 31 Carrying value, at January 1
5 5 2
21
41
67 58 27 -17
Total
287
27
26
2. Other operating income
Additions
3
21
1) The research and development costs in operating expenses were €33 million (€28 million) and auditor’s fee €3.3 million (€2.6 million). In personnel expenses the research and development costs were €10 million (€20 million). 6. Income taxes
Amortization
-2
-15
—
Reclassifications
— 5
7
-7 41
—
€ million
2025
2024
Carrying value, at December 31
21
67
Gains on sale of non-current assets
44
10
Rental income
7
7
Other Total
66 116
62 79
€ million
2025
2024
Tax expense for the period
24
9 3
Tax expense for the previous periods
—
Total
24
12
UPM Financial Report 2025
334
UPM Financial Report 2025
335
334
335
UPM Annual Report 2025
UPM Annual Report 2025
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