UPM annual report 2015
IN BRIEF
STRATEGY
BUSINESSES
STAKEHOLDERS
GOVERNANCE
ACCOUNTS
Geographical information External sales by destination
7 Costs and expenses
Shareholdings (no. of shares) and fees of the Board of Directors Shareholdings Fees (EUR 1,000) 31 Dec. 2015 1) 2015 2014 Board members Björn Wahlroos, Chairman 254,442 175 175 Berndt Brunow, Deputy Chairman 303,578 120 120 Henrik Ehrnrooth 2,276 95 – Piia-Noora Kauppi 11,856 120 120 Wendy E. Lane 32,925 95 95 Ari Puheloinen 4,301 95 63 Veli-Matti Reinikkala 36,097 95 95 Suzanne Thoma 2,276 95 – Kim Wahl 14,075 95 95 Jussi Pesonen, President and CEO 220,275 – –
2015
EURm
Inventories
5
Year ended 31 December
Trade and other receivables Cash and cash equivalents
24
2015 2014
EURm
3
Year ended 31 December
Change in inventories of finished goods and work in progress
2015 2014 1,658 1,694
EURm
Provisions (Note 30)
–2
21 –5
–12
Trade and other payables
–22
Germany
Production for own use
–6
Net assets
8 3
Finland
900 916 421
980 919 414
Gain on disposals Total consideration
United Kingdom
Materials and services Raw materials, consumables and goods Derivatives designated as cash flow hedges
11
France
5,675 5,559
Other EU countries
2,103 2,052
93
47
Settled in cash and cash equivalents Cash in subsidiaries disposed Net cash arising from disposals
11 –3
Other European countries
436
508
External services and charges 1)
856 913 6,624 6,519
United States
1,253 1,006
8
Canada
57
50
Personnel expenses Salaries and fees
China
852
637
967 1,020
Uruguay
61
41
Former Board members Matti Alahuhta
Notes to the consolidated cash flow statement
Rest of world
1,481 1,567 10,138 9,868
Share-based payments (Note 37)
16
10
–
–
95
Total
Total
882,101
985 858
Adjustments
Indirect employee costs Pension costs, defined benefit plans (Note 29) Pension costs, defined contribution plans Other post-employment benefits (Note 29)
1) The above shareholdings include shares held by the Board members' closely as- sociated persons and controlled entities.
33
16
Year ended 31 December
Total assets by country
117
116
2015 2014
EURm
As at 31 December 2015 2014 1,148 1,222 8,524 8,753
–1
2
Change in fair value of biological assets and wood harvested Share of results of associated companies and joint ventures Depreciation, amortisation and impairment charges Capital gains on sale of non-current assets, net
Salaries, fees and other benefits of the Group Executive Team Year ended 31 December EUR 1,000 2015 2014 President and CEO Jussi Pesonen Salaries and benefits Salary 1,052 1,052 Incentives 856 627 Share rewards 824 – Benefits 27 27 Total 2,759 1,706 In 2015, costs under the Finnish statutory pension scheme for the President and CEO amounted to EUR 353,000 (303,000) and pay- ments under the voluntary pension plan were EUR 1,000,000 (682,000). In 2015, no premium was paid into the President and CEO´s voluntary group pension plan to cover past service pension liabilities (premium of EUR 268,000 was paid in 2014). Year ended 31 December EUR 1,000 2015 2014 Group Executive Team (excluding the President and CEO) 1) Salaries and benefits Salaries 3,455 3,457 Incentives 1,733 869 Share rewards 1,805 – Benefits 238 249 Total 7,231 4,575 1) 11 members in 2015 and in 2014. In 2015, costs under the Finnish and German statutory pension schemes for Group Executive Team members (excluding the President and CEO) amounted to EUR 900,000 (752,000) and payments under the voluntary pension plan were EUR 651,000 (686,000). The total remuneration of the President and CEO and the members of the Group Executive Team consists of base salary and benefits, short- term incentives, share-based long-term incentives and pension benefits. The short-term incentive plan for the President and CEO and the members of the Group Executive Team has been linked with achieve- ment of the predetermined financial targets of the Group or Business Areas and individual targets. The incentives amount to a total maxi- mum of 100% of annual base salary to the Business Area Executives and to a total maximum of 70% of annual base salary to the other members of the Group Executive Team. For the President and CEO the maximum annual incentive amounts to 150% of the annual base sal- ary. The expenses recognised in income statement in respect of share- based payments for the Group Executive Team were EUR 5.4 million (2.8 million).
EURm
Other indirect employee costs 2)
125 126 274 260
–352
–78
Germany
Other operating costs and expenses Rents and lease expenses
Finland
–3
–3
51 14
52 15
United Kingdom
211
250
524
658
Emission expenses (Note 6)
France
63
67
–18 –117
Losses on sale of non-current assets
2
4
Other EU countries
325
335
Finance costs, net
67
66
Other operating expenses 3)
876 846 943 917
Other European countries
71
79
Taxes
159 –62 134 449
155
United States
491
464
Change in restructuring provisions
14 84
Canada
–
11
Other adjustments
Costs and expenses, total
8,840 8,708
China
1,037
913
Total
779
Uruguay
2,004 1,790
1) External services and charges mainly comprise delivery costs of products sold.
Rest of world
319
311
2) Other indirect employee expenses primarily include other statutory social expenses, excluding pension expenses. 3) Other operating expenses include, among others, energy and maintenance expenses as well as expenses relating to services and the Group’s administration.
Total
14,193 14,195
Change in working capital
Year ended 31 December
2015 2014
EURm
Capital expenditure by country
Inventories
15
18 59 –4 73
Year ended 31 December
The research and development costs included in costs and expenses were EUR 37 million (35 million).
Current receivables
–30
2015 2014
EURm
Current non-interest-bearing liabilities
7
Germany
20
59
Total
–8
Finland
218
236
Government grants In 2015, the Group recognised government grants of EUR 0 million (3 million) as reduction of non-current assets. Government grants rec- ognised as deduction of costs and expenses totalled to EUR 6 million (7 million) in 2015. In addition, the Group received emission rights from governments, Note 17. Remuneration paid to members of the Board of Directors and the Group Executive Team The Annual General Meeting 2015 resolved that the annual fee to the Board Chairman is EUR 175,000, to the Board Deputy Chairman and Chairman of the Audit Committee EUR 120,000 and to other members of the Board EUR 95,000. Of the annual fee, 60% was paid in cash to cover withholding tax and 40% in company shares purchased on the Board members’ behalf. The company was to pay any costs and trans- fer tax related to the purchase of the shares. No annual fee was paid to the President and CEO for his role as a member of the Board. In 2015, 4,193 (5,595) company shares were paid to the Chair- man, 2,875 (3,836) shares to the Deputy Chairman and the Chairman of the Audit Committee respectively and 2,276 (3,037) shares to each of the other members of the Board.
United Kingdom
8 2 6
9 2
According to the consolidated cash flow statement the total amount of taxes paid in 2015 amounted to EUR 143 million (81 million), of which taxes of EUR 140 million (81 million) are included in operating activities and EUR 3 million in investing activities.
France Poland
11
Other European countries
18
2 5
United States
5
China
215
77
Uruguay
26
8 2
6 Other operating income
Rest of world
2
Total
520
411
Year ended 31 December
2015 2014
EURm
Gains on sale of non-current assets Rental income, investment property
20
62
5 Acquisitions and disposals and notes to the cash flow statement
4
4
Rental income, other
11 22
11 27
Emission rights received (Note 7) Derivatives held for trading Exchange rate gains and losses
–78
–53
Acquisitions In 2015 and 2014, no acquisitions were made. Disposals
18 16 13
23 17 91
Other
Total
In 2015, UPM sold 100% of its shares of Tilhill Forestry Ltd to BSW Timber Ltd in the United Kingdom. The following table summarises the amount of assets and liabilities related to disposal during 2015. In 2014, UPM had minor company disposals.
contents
accounts
107
108
UPM Annual Report 2015
UPM Annual Report 2015
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