UPM annual report 2015

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

Consolidated financial statements, IFRS Consolidated income statement

Board of Directors’ proposal for the distribution of profits

The Board of Directors proposes to the Annual General Meeting of UPM-Kymmene Corporation to be held on 7 April 2016 that a divi- dend of EUR 0.75 per share be paid based on the balance sheet to be adopted for the financial year ending 31 December 2015 and that the remaining portion of the distributable funds be retained in the Compa- ny's unrestricted shareholders' equity. The dividend will be paid to a shareholder who is registered in the Company's shareholders' register held by Euroclear Finland Ltd on the dividend record date of 11 April 2016. The Board of Directors pro- poses that the dividend be paid on 21 April 2016.

On the date of the dividend proposal, 2 February 2016, the Company's registered number of shares is 533,735,699. The afore- mentioned number of shares includes 230,737 treasury shares which are not entitled to dividend. As a result, the proposed dividend would total EUR 400.1 million. On 31 December 2015, the distributable funds of the parent com- pany were EUR 3,532,842,453.74 including EUR 545,045,922.15 profit for the period. No material changes have taken place in respect of the Company’s financial position after the balance sheet date. In the opinion of the Board of Directors, the proposed distribution of profits does not risk the solvency of the Company.

Year ended 31 December

2015

2014

EURm

Note

Sales

4 6 7 8 9

10,138

9,868

Other operating income

13

91

Costs and expenses

–8,840

–8,708

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

352

78

3

3

10

–524 1,142

–658

Operating profit (loss)

4

674

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

11 12 12

– 1

59 –4

Interest and other finance costs, net

–68

–62 667

Profit (loss) before tax

1,075

Income taxes

13

–159

–155

Profit (loss) for the period

916

512

Attributable to:

Owners of the parent company

916

512

Non-controlling interests

–

–

916

512

Earnings per share for profit (loss) attributable to owners of the parent company Basic earnings per share, EUR

14 14

1.72 1.72

0.96 0.96

Diluted earnings per share, EUR

Signatures of the annual accounts and the report of the Board of Directors for the year 2015

Consolidated statement of comprehensive income

Helsinki, 2 February 2016

Year ended 31 December

2015

2014

EURm

Note

Björn Wahlroos

Berndt Brunow

Henrik Ehrnrooth

Chairman

Profit (loss) for the period

916

512

Other comprehensive income for the period, net of tax: Items that will not be reclassified to income statement: Actuarial gains and losses on defined benefit obligations Items that may be reclassified subsequently to income statement: Translation differences

Piia-Noora Kauppi

Wendy E. Lane

Jussi Pesonen President and CEO

113

–181

221 –28

291 –41

Net investment hedge

Cash flow hedges

24

–107 –164

Ari Puheloinen

Veli-Matti Reinikkala

Suzanne Thoma

Available-for-sale investments

–405 –188

–21

13, 27

Other comprehensive income for the period, net of tax

–75 841

–202

Total comprehensive income for the period

310

Kim Wahl

Total comprehensive income attributable to: Owners of the parent company

841

310

Non-controlling interests

–

–

841

310

The income tax relating to each component of other comprehensive income is disclosed in Note 13. Disclosure of components of other comprehensive income is presented in Note 27. The notes are an integral part of these consolidated financial statements.

contents

accounts

89

90

UPM Annual Report 2015

UPM Annual Report 2015