UPM annual report 2015

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

Quarterly figures 2014–2015

Financial indicators 2006–2015

2015

2014 2013 2012 2011 2010 2009 2008 2007 2006

EURm

Sales

10,138 9,868 10,054 10,492 10,068 8,924 7,719 9,461 10,035 10,022 1,350 1,306 1,161 1,325 1,383 1,343 1,062 1,206 1,546 1,678

EBITDA

EURm Sales

Q4/15 Q3/15 Q2/15 Q1/15 Q4/14 Q3/14 Q2/14 Q1/14 Q1–Q4/15 Q1–Q4/14 2,574 2,530 2,548 2,486 2,531 2,415 2,441 2,481 10,138 9,868

% of sales

13.3

13.2 847 8.6 674 6.8 667 6.8 512 5.2

11.5 12.6 13.7 15.0 13.8 12.7 15.4 16.7

Operating profit, excluding special items

1,163

683

556

682

731 8.2 755 8.5 635

270 3.5 135

513 5.4

835

725

Other operating income

–29

10

25

7

61

14

9

7

13

91

% of sales

11.5

6.8

5.3

6.8

8.3

7.2

Costs and expenses

–2,209 –2,186 –2,270 –2,175 –2,286 –2,082 –2,161 –2,179 –8,840 –8,708

Operating profit

1,142

548 –1,318 5.5 –12.6 475 –1,271 4.7 –12.1 335 –1,122 3.3 –10.69

459 4.6 417 4.1 457

24

483

536

Change in fair value of biological assets and wood harvested Share of results of associated companies and joint ventures Depreciation, amortisation and impairment charges

% of sales

11.3

1.7

0.3

4.8

5.3

16 289

31

16

32

17

17

12

352

78

Profit (loss) before tax

1,075

187 –201

292

367 3.7 338

% of sales

10.6 916

7.1

2.4

–2.1

2.9

–

2

1

–

–

1

2

–

3

3

Profit (loss) for the period

561 6.3

169 –180

81

–132 –132 –129 –131 –267 –129 –132 –130 –524

–658

% of sales

9.0

4.5

2.2

–1.9

0.8

3.4

Operating profit (loss)

220 513

206 203

71 236 176 191 1,142

674

Exports from Finland and foreign operations

9,268 8,923 9,089 9,565 9,252 8,139 7,054 8,515 9,170 9,102 4,714 4,340 4,118 4,248 4,313 3,882 3,442 4,371 4,546 4,644

Gains on available-for-sale investments, net Exchange rate and fair value gains and losses

–

– –

–

–

– 3

–

–

59 –3

– 1

59 –4

Exports from Finland

11

–3

–7

–3

–1

Interest and other finance costs, net

–17 –15 214 498 –21 –90 193 408

–21 –15 –17 –19 –16 –10

–68

–62 667

Non-current assets

10,259 10,269 10,487 11,066 11,412 10,557 10,581 10,375 10,639 11,355 1,376 1,356 1,327 1,388 1,429 1,299 1,112 1,354 1,342 1,255 2,558 2,570 2,785 2,489 2,548 1,956 1,912 2,052 1,972 1,859 14,193 14,195 14,599 14,943 15,389 13,812 13,605 13,781 13,953 14,469 7,944 7,480 7,455 7,461 7,477 7,109 6,602 6,120 6,783 7,289 4,328 4,717 5,019 5,430 5,320 4,922 5,432 5,816 4,753 4,770 1,921 1,998 2,125 2,052 2,588 1,781 1,571 1,828 2,417 2,410 14,193 14,195 14,599 14,943 15,389 13,812 13,605 13,781 13,953 14,469

Profit (loss) before tax

182 181

57 214 159 237 1,075

Inventories

Income taxes

–22 –26 –49 –32 –30 –44 –159

–155

Other current assets

Profit (loss) for the period Attributable to: Owners of the parent company

160 155

8 182 129 193

916

512

Assets, total

193 408

160 155

8 182 129 193

916

512

Total equity

Non-controlling interest

Non-current liabilities

–

–

–

–

–

–

–

–

–

–

Current liabilities

193 408 0.36 0.77 0.36 0.77 0.37 0.76

160 155

8 182 129 193

916 1.72 1.72 1.75

512 0.96 0.96 1.17

Total equity and liabilities

Basic earnings per share, EUR Diluted earnings per share, EUR

0.30 0.29 0.01 0.34 0.25 0.36 0.30 0.29 0.01 0.34 0.25 0.36 0.33 0.29 0.32 0.32 0.26 0.27

Capital employed at year end

11,010 10,944 11,583 11,603 12,110 11,087 11,066 11,193 11,098 11,634

Earnings per share, excluding special items, EUR Average number of shares basic (1,000) Average number of shares diluted (1,000) Special items in operating profit (loss) Operating profit (loss), excl. special items

Return on equity, %

11.9 10.3

6.9 6.5

4.5 neg. 4.8 neg.

6.3 4.4

8.2 6.6

2.8 neg.

1.2 4.3

4.6 4.7

533,505 533,505 533,505 533,505 532,916 531,932 531,932 529,514 533,505 531,574 533,505 533,505 533,505 533,505 532,202 532,114 532,201 529,777 533,505 531,574

Return on capital employed, % Cash flow from operating activities

3.2

0.2

1,185 1,241

735 1,040 1,041

982 1,259

628

867 1,215

–5

6

–21

–1 –159

1 –10

–5

–21

–173 847

Equity to assets ratio, %

56.1

52.7

51.1 50.0 48.6 51.5 48.6 44.5 48.8 50.4

225 507 8.7 20.0

227 204 230 235 186 196 1,163

Gearing ratio, %

26

32

41

43

48

46

56

71

59

56

% of sales

8.9 8.2

9.1

9.7

7.6

7.9 66 61

11.5

8.6

Net interest-bearing liabilities

2,100 2,401 3,040 3,210 3,592 3,286 3,730 4,321 3,973 4,048

Special items in financial items

–

– 6

–

–

–

–

–

–

66

Capital expenditure

520

411 4.2 375 3.8

362

357 1,179

257

913 11.8 229

551

708

699

Special items before tax

–5

–21

–1 –159

1 –10

–21

–107

% of sales

5.1

3.6

3.4

11.7 340

2.9

5.8

7.1

7.0

Profit (loss) before tax, excl. special items

219 492 8.5 19.4

203 182 216 213 169 176 1,096

774 7.8 –4 8.3 7.5

Capital expenditure excluding acquisitions

486

329

347

252

532

683

631 6.3

% of sales

8.0

7.3 8.5 8.8 6.9

7.1

10.8

% of sales

4.8

3.3

3.3

3.4

2.8

3.0

5.6

6.8

Impact on taxes from special items Return on equity, excl. special items, %

1

–1

5

1

–6 9.2

11

4 –13

6

Personnel at year end

19,578 20,414 20,950 22,180 23,909 21,869 23,213 24,983 26,352 28,704

9.9 20.7 8.4 18.2 363 345 14.1 13.6

9.1 8.1

8.1

9.1

7.3

7.7

12.1 10.5

Formulae for calculating indicators are given on page 143.

Return on capital employed, excl. special items, %

7.0 8.2 8.0 6.5 6.6

EBITDA

317 325 334 344 305 323 1,350 1,306

% of sales

12.4 13.1 13.2 14.2 12.5 13.0

13.3

13.2

Deliveries

Sales by segment UPM Biorefining

584 554 110 112 363 353 284 286

601 533 484 480 477 496 2,272 1,937

Deliveries

415

464

UPM Energy UPM Raflatac

94

99 115 113 112 124

351 342 330 312 306 300 1,409 1,248 300 298 288 274 285 277 1,168 1,124

2015

2014 2013 2012 2011 2010 2009 2008 2007 2006

UPM Paper Asia UPM Paper ENA

1,311 1,279 1,210 1,256 1,361 1,303 1,286 1,334 5,056 5,284

3,224 3,287 3,163 3,128 2,992 2,919 1,759 1,982 1,927 8,966 8,721 8,925 9,486 8,911 9,426 8,865 10,167 10,349 9,771 10,028 10,288 10,871 10,615 9,914 9,021 10,641 11,389 10,988

Pulp (1,000 t)

UPM Plywood

102 105

113 119 107 101 118 114 119 114 113 102 113 119

439 406

440 447

Electricity (GWh)

Other operations

76

97

Papers, total (1,000 t) Plywood (1,000 m 3 ) Sawn timber (1,000 m 3 )

Internal sales

–248 –239 –219 –267 –248 –248 –241 –263 –973 –1,000

740

731

737

679

656

638

567

806

945

931

Eliminations and reconciliations

–8 –17

–21

–8 –19 –22 –15 –20

–54

–76

1,731 1,609 1,661 1,696 1,683 1,729 1,497 2,132 2,325 2,457

Sales, total

2,574 2,530 2,548 2,486 2,531 2,415 2,441 2,481 10,138 9,868

Operating profit (loss) excl.special items by segment UPM Biorefining

130 122

118

97 38 21 22

67 57 22 27 30 14 19 –6

63 43 21 29 62

31 46 17 27 47 12

56 56 20 25 42 11 –2

467 181 102

217 202

UPM Energy UPM Raflatac

58 28 10 18 12

45 29 12

40 24 11 –8 13 20

80

UPM Paper Asia UPM Paper ENA

55 24 55

108 181

9

5

UPM Plywood

11

19

7

44 37

7

14 –4

6 –

303 1)

Other operations

–3 279 1)

Eliminations and reconciliations

–28

–

9

–5

–12

–24

–22 847

Operating profit (loss) excl. special items, total

225 507 8.7 20.0

227 204 230 235 186 196 1,163

% of sales

8.9 8.2

9.1

9.7

7.6

7.9

11.5

8.6

1) Includes a fair value increase of biological assets in Finland totalling EUR 265 million, due to adjusted long-term wood price estimates and a change in the discount rate.

contents

accounts

141

142

UPM Annual Report 2015

UPM Annual Report 2015