UPM annual report 2014

Finance lease liabilities – the present value of minimum lease payments

Bonds in interest-bearing liabilities

As of 31 December 2014 the contractual maturity of interest-bearing liabilities EURm 2015 2016 2017

2018

2019

2020+

Total

Interest rate % 7.450 3.550 5.625 6.625 5.500

Nominal value issued m

As at 31 Dec.

2014 EURm

2013 EURm

Bonds

As at 31 December

Fixed rate 1997–2027 2000–2030 2002–2014 2002–2017 2003–2018

Repayments

–

–

321

206

–

378 211 589

905 441

2014

2013

EURm

Interests

58 58

58 58

58

31

25 25

USD 375 JPY 10,000 USD 500

424

342

No later than 1 year

171

39

379

237

1,346

85

80

1–5 years

43 58

209

Loans from financial institutions Repayments

–

374 329 203

Later than 5 years

61

45

233

316

302

451

44

1,391

GBP

250

346 226

Committed facilities

–

–

–

–

– 2

– 1

–

Total

272

309

Interests

20 65 74 13 87

19

18

15

75

USD 250

252

334

317

453

45

1,466

Total at 31 Dec. Current portion

1,081 1,328

Pension loans

–

373 955

32 Other liabilities

Repayments

74 10 84

74

74

– – – 5 – 5

– – –

296

Non-current portion

1,081

Interests

6

3

32

As at 31 December

80

77

328

2014

2013

EURm

Finance lease liabilities Repayments

Fair value hedge of non-current interest-bearing liabilities Fair value hedge accounting results in a cumulative fair value adjustment totalling EUR 261 million (211 million), which has increased the carry- ing amount of the liabilities. Accordingly, the positive fair value of the hedging instruments, excluding accrued interests, amounts EUR 279 million (229 million) in assets, and negative fair value of EUR 0 million (1 million) in liabilities. The effect of the fair value hedge ineffectiveness on the income state- ment was profit EUR 1 million (2 million).

171

30

4 1 5 2 7 9

4 – 4 2 3 5 – 4 4

58

272

Derivative financial instruments

51 99

66 98

Interests

6

1

2

10

Other 1)

177

31

60

282

Total

150

164

Other loans

Repayments

2 7 9 – 4 4

2 7 9 – 3 3

1

148

157

1) Consists mainly of non-current advances received and a put liability that is not estimated to mature within 12 months.

Interests

10 11

62

96

210

253

Interest rate swaps (liabilities) Repayments

48

– 6 6

19 16 35

67 37

Interests

4

33 Trade and other payables

52

104

Current loans

As at 31 December

Repayments

74

74

2014

2013

EURm

Interests

–

–

74

74

Net interest-bearing liabilities

Advances received Trade payables

8

16

854 429 179

831 414

As at 31 December

Guarantees, repayments

5

5

Accrued expenses and deferred income

2014

2013 4,128

EURm

Non-current loans repayments excl. committed facilities

292

339

717

588

457

628

3,021

Derivative financial instruments

85 73

Other current liabilities

79

Total interest-bearing liabilities

3,464

Total

1,549

1,419

Interest-bearing financial assets Non-current Loan receivables

As of 31 December 2013 the contractual maturity of interest-bearing liabilities EURm 2014 2015 2016

Trade and other payables mature within 12 months.

2017

2018

2019+

Total

11

11

Bonds

Derivative financial instruments

281

212

Repayments

363

–

–

300

181

341 212 553

1,185

Other receivables

29

31

Interests

73

53 53

53 53

53

28

472

Main items included in accrued expenses and deferred income

321

254

436

353

209

1,657

Loans from financial institutions Repayments

Current

29

333

233

317

300

496

1,708

Loan receivables Other receivables

4

9

As at 31 December

Committed facilities

–

–

–

–

–

– 6

–

2014

2013

EURm

13 25

11 24

Interests

28 57 74 17 91

30

30

32

27

153

Derivative financial instruments Cash and cash equivalents

Personnel expenses Interest expenses

194

188

363

263

349

327

502

1,861

700 742

790 834

Pension loans

33

35

Repayments

74 13 87

74 10 84

74

74

– – –

370

Indirect taxes Other items 1)

8

8

Interests

6

3

49

Interest-bearing financial assets

1,063

1,088

194 429

183 414

80

77

419

Total

Finance lease liabilities Repayments

Net interest-bearing liabilities

2,401

3,040

39

171

30

4 1 5 2 6 8

4 1 5 1 3 4 4 2 6

61

309

Consists mainly of customer rebates.

1)

Interests

6

6

1

2

17

45

177

31

63

326

Other loans

Finance lease liabilities As at 31 December 2014 the Group has one sale and leaseback agree- ment and five finance lease agreements regarding power plant machinery. The Group uses the energy generated by these plants for its own produc- tion. The Group also has a finance lease arrangement over the usage of a waste water treatment plant. In addition, the Group leases certain pro- duction assets and buildings under long term arrangements.

Repayments

1 6 7

2 6 8

2 6 8

150

158

Interests

63

90

213

248

Interest rate swaps (liabilities) Repayments

19 –1 18

–

–

67

18 37 55

108

Interests

–1 –1

–1 –1

–

36

67

144

Current loans

Repayments

49

49

Interests

–

–

Finance lease liabilities – minimum lease payments

49

49

As at 31 December

Guarantees, repayments

5

5

2014

2013

EURm

Non-current loans repayments excl. committed facilities

506

580

339

697

560

1,048

3,730

No later than 1 year

177

45

Amounts are based on the exchange rates and interest rates on the reporting date. The difference between the above listed cash-based repayment amounts and the respective balance sheet values mainly arise from fair value adjustments to balance sheet items.

1–5 years

45 60

218

Later than 5 years

63

282 –10

326 –17

Future finance charges

Finance lease liabilities – the present value of minimum lease payments

272

309

CONTENTS

ACCOUNTS

113

114

UPM Annual Report 2014

UPM Annual Report 2014