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UPM Annual Report 2014
UPM Annual Report 2014
121
122
CONTENTS
ACCOUNTS
40 Events after the balance sheet date
On 12 January 2015, UPM announced that the UPM Lappeenranta
Biorefinery had started commercial production. The production process
works as planned and the high quality end product, UPM BioVerno
diesel, fulfils customer specifications.
The UPM Lappeenranta Biorefinery is the world’s first wood-based
renewable diesel biorefinery, and is based on a hydrotreatment process
developed by UPM. It is capable of producing approximately 120 mil-
lion litres of renewable UPM BioVerno diesel each year.
On 20 January 2015, UPM announced that it will permanently close
down paper machine 2 at UPM Kaukas and paper machine 5 at UPM
Jämsänkoski in Finland, along with paper machine 1 at the UPM Shot-
ton mill in the UK. Production will be ceased by the end of March 2015
at the latest. Employee consultation processes concerning the closing
plans were concluded in mid-January 2015. The number of positions is
reduced by 114 at the Kaukas mill in Lappeenranta, by 138 at the Jämsä
River Mills and by 121 at Shotton. Along with the closures, UPM
reduces its coated and uncoated magazine paper capacity by approxi-
mately 460,000 tonnes and its newsprint capacity by 215,000 tonnes.
Income statement
Year ended 31 Dec.
EURm
Note
2014 2013
Turnover
1 3,395 3,715
Change in inventories of finished goods and work
in progress
–33
–4
Production for own use
5
7
Other operating income
2 186 113
Materials and services
Materials and consumables
Purchases during the financial period
–2,079 –2,377
Change in inventories
–7
17
External services
–36 –107
–2,122 –2,467
Personnel expenses
3
Wages and salaries
–361 –372
Social security expenses
Pension expenses
–59 –68
Other social security expenses
–22 –20
–442 –460
Depreciation and value adjustments
4
Depreciation according to plan
–227 –239
Value adjustments to goods held as
non-current assets
–50 –25
–277 –264
Other operating costs and expenses
3 –499 –432
Operating profit
213 208
Financial income and expenses
Income from investments held as non-current assets
Dividends from Group companies
559
2
Interest income from Group companies
8
10
Other interest and financial income
Other interest income from Group companies
3
4
Other interest income from other companies
11
–
Other financial income from Group
companies
8
94
Other financial income from other companies
1
30
Value adjustments on investments
–10
–
Interest and other financial expenses
Interest expenses to Group companies
–37 –39
Interest expenses to other companies
–37 –39
Other financial expenses to other companies
–101
–3
Total financial income and expenses
405
59
Profit before extraordinary items
618 267
Extraordinary items
5
Extraordinary income
70
35
Extraordinary expenses
–9 –31
Total extraordinary items
61
4
Profit before appropriations and taxes
679 271
Appropriations
Increase or decrease in accumulated
depreciation difference
117
96
Income taxes
6 –86 –116
Profit/loss for the financial period
710 251
Cash flow statement
Year ended 31 Dec.
EURm
Note
2014 2013
Operating activities
Profit before extraordinary items
618 267
Financial income and expenses
–405 –59
Adjustments to operating profit
1 384 305
Change in working capital
2
99 227
Interest paid
–75 –78
Dividends received
560
2
Interest received
23
19
Other financial items
25
1
Income taxes paid
3 –63 –140
Net cash generated from operating activities
1,166 544
Investing activities
Investments in tangible and intangible assets
–181 –199
Proceeds from sale of tangible and intangible
assets
100
79
Investments in shares and holdings
–29 –36
Proceeds from sale of shares and holdings
59
4
Increase in other investments
–9 –11
Decrease in other investments
39 265
Net cash used in investing activities
–21 102
Financing activities
Increase in non-current liabilities
– 527
Decrease in non-current liabilities
–766 –244
Increase or decrease in current liabilities
–223 –337
Share options exercised
47
20
Dividends paid
–319 –317
Group contributions received and paid
4 –70
Net cash used in financing activities
–1,257 –421
Cash and cash equivalents
Cash and cash equivalents at beginning of year
576 351
Change in cash and cash equivalents
–112 225
Cash and cash equivalents at end of year
464 576
Notes to the cash flow statement
1 Adjustments to operating profit
Depreciation
227 239
Gains and losses on sale of non-current assets
102
46
Value adjustments on non-current assets
50
25
Change in provisions
5
–5
Total
384 305
2 Change in working capital
Inventories
37 –15
Current receivables
77 236
Current non-interest-bearing liabilities
–15
6
Total
99 227
3 Taxes from sales of non-current assets are reported here on a net basis.
Parent company accounts
(Finnish Accounting Standards, FAS)