UPM annual report 2014

Notes to the parent company financial statements (All amounts in millions of euros unless otherwise stated.)

Balance sheet

As at 31 December

As at 31 December

2014

2013

EURm

Note

2014

2013

EURm

Note

Assets Non-current assets Intangible assets

Equity and liabilities Shareholders’ equity

11

4 Depreciation and value adjustments

Accounting policies The parent company financial statements are prepared in accordance with Finnish Accounting Standards. The main differences in accounting policies between the Group and the parent company relate to the mea- surement of derivative financial instruments and biological assets and the recognition of defined benefit obligations, revaluations and deferred income taxes. See Notes to the consolidated financial statements, Note 1.

7

Share capital

890 463

890 493

Intangible rights

5

5

Revaluation reserve

Year ended 31 Dec.

Other capitalised expenditure

198

219

Reserve for invested non-restricted equity

1,273 1,378

1,226 1,446

2014 2013

EURm

Advance payments

3

6

Retained earnings

Depreciation according to plan Intangible rights Other capitalised expenditure

Total intangible assets

206

230

Profit/loss for the financial period

710

251

2

3

Total equity

4,714

4,306

32 35

36 33

Tangible assets

8

Buildings

Appropriations Accumulated depreciation difference

Land and water areas

934 441 720

974 460 841

Machinery and equipment

151 160

Buildings

564

682

Other tangible assets

7

7

Machinery and equipment

1 Turnover

Total

227 239

Other tangible assets

38

41

Provisions

12

Provisions for pensions

17 51 68

17 46 63

Advance payments and construction in progress

Value adjustments Intangible and tangible assets

209

142

Other provisions Total provisions

Owing to the corporate structure of the Group, the turnover of the parent company has not been divided by segment and destination. See Notes to the consolidated financial statements, Note 4.

50

25

Total tangible assets

2,342

2,458

Total

277 264

Non-current liabilities

Investments

9

13

Holdings in Group companies Receivables from Group companies Holdings in participating interest companies Receivables from participating interest companies

4,648

4,922

Bonds

905

822

5 Extraordinary items

2 Other operating income

666

693

Loans from financial institutions

1,223

1,523

Pension loans Other liabilities

202 145

270 145

Year ended 31 Dec.

Year ended 31 Dec.

99

99

2014 2013

EURm

2014 2013

EURm

Total non-current liabilities

2,475

2,760

Extraordinary income Group contributions received

Gains on sale of non-current assets

163

94 15

6

5

70 70

35 35

Rental income

17

Other shares and holdings

582

562

Current liabilities

14

Total

– 6

1 3

Gains on sale of emission rights 1)

Other receivables

30

31

Bonds

363

Other

Total investments

6,031

6,312

Loans from financial institutions

16 68

8

Extraordinary expenses Group contributions paid

Total

186

113

Pension loans

68

–9 –9 61

–31 –31

Total non-current assets

8,579

9,000

Advances received

1

6

1) Emissions trading rights are accounted for on a net basis.

Total

Trade payables

280

303

Total extraordinary items

4

Current assets Inventories

Payables to Group companies Payables to participating interest companies

2,123

2,383

3 Personnel expenses and other operating costs and expenses

Raw materials and consumables Finished products and goods

229

236 110

6

7

6 Income taxes

77 38

Other liabilities

37

30

Advance payments

35

Accruals and deferred income

292

296

Year ended 31 Dec.

Year ended 31 Dec.

Total inventories

344

381

Total current liabilities

2,823

3,464

2014 2013

EURm

2014 2013

EURm

Wages and salaries President and CEO, and members of the Board of Directors 2)

Income taxes for the financial period

86 86

116 116

Current receivables

10

Total liabilities

5,298

6,224

Total

Trade receivables

121 953

155 969

3

3

Receivables from Group companies Receivables from participating interest companies

Other wages and salaries

358 369 361 372

Deferred income taxes Deferred income tax assets and liabilities of the parent company are not recorded on the balance sheet. Deferred tax liability mainly comprises depreciation differences, for which the deferred tax liability at 31 Decem- ber 2014 was EUR 113 million at 20% tax rate (136 million). Deferred tax liability is not stated separately for revaluations. The potential tax liability arising from the sale of revalued asset is EUR 124 million at 20% tax rate (131 million). Deferred tax asset mainly comprises provi- sions, for which the deferred tax asset at 31 December 2014 was EUR 14 million at 20% tax rate (13 million).

Total

11

13

2) See Notes to the consolidated financial statements, Note 7.

Loan receivables Other receivables

2

2

79 91

70

Year ended 31 Dec. 2014 2013 5,880 6,410

Prepayments and accrued income

109

Total current receivables

1,257

1,318

Average number of personnel

Cash and cash equivalents

464

576

Total current assets

2,065

2,275

Owing to the corporate structure of the Group, the average number of personnel has not been divided by segment. See Notes to the consolidated financial statements, Note 4. Year ended 31 Dec. EURm 2014 2013 Auditor's fees 0.8 1.0

Total assets

10,644 11,275

Total equity and liabilities

10,644 11,275

CONTENTS

ACCOUNTS

123

124

UPM Annual Report 2014

UPM Annual Report 2014

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