UPM annual report 2015

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

30 Provisions

As of 31 December 2015 the contractual maturity of interest-bearing liabilities

Restructuring provisions

Termination provisions

Environmental provisions

Emission rights provision

Other provisions

2016

2017

2018

2019

2020

2021+

Total

EURm Bonds

Total

EURm

At 1 Jan. 2015

50

109

26

12

17

214

Repayments

–

340

230

–

–

421 207 628

991 426

Additional provisions and increases to existing provisions

Interests

64 64

64

35

28 28

28 28

3 – 6

9 –

– – –

14

6

32 –2

404

265

1,417

Companies sold Reclassifications

– –

–2

Loans from financial institutions Repayments

–6

–

–

37

208

313

453

19

26

1,056

Committed facilities

–

–

–

– 2

– 1

– 1

–

Utilised during year

–8 –4 47

–55

–1 –1 24

–11

–2 –1 18

–77 –13 154

Interests

15 52 74 10 84

14

13

46

Unused amounts reversed

–6 51

–1 14

222

326

455

20

27

1,102

At 31 Dec. 2015

Pension loans

Repayments

74

74

– – – 6 1 7

– – –

– – –

222

Interests

6

3

19

At 1 Jan. 2014

50

93

20

9

17

189

80

77

241

Additional provisions and increases to existing provisions

Finance lease liabilities Repayments

15

76

8

11 –8

5

115 –78 –12 214

32

86

5 1 6 2 4 6 – 5 5

47

22

198

Utilised during year

–10

–55

–2

–3 –2 17

Interests

5

5

1

2

15

Unused amounts reversed

–5 50

–5

–

–

37

91

48

24

213

At 31 Dec. 2014

109

26

12

Other loans

Repayments

2 7 9 – 4 4

2 7 9

–

1 7 8 – 3 3

163

170

Interests

11 11

61

97

224

267

Interest rate swaps (liabilities) Repayments

28

– 6 6

12

40 32 72

Interests

5

9

33

21

Current loans

31 Interest-bearing liabilities

Provisions At 31 December 2015, restructuring provisions and termination provi- sions relate mainly to mill closures and operational restructuring in Finland and France. In Finland provisions include also unemployment arrangements and disability pensions. Unemployment pension provi- sions are recognised 2–3 years before the granting and settlement of the pension. In 2014, additions in provisions relate mainly to capacity closures in UPM Paper ENA. In November 2014, UPM announced the plan to permanently close four of its paper machines: PM3 at UPM Chapelle, PM1 at UPM Shotton, PM5 at UPM Jämsänkoski and PM2 at UPM Kaukas. In addition, the restructuring measures have started in the UPM Raflatac. Environmental provisions include expenses relating to closed mills and the remediation of industrial landfills. The Group takes part in government programmes aimed at reduc- ing greenhouse gas emissions. In 2015, the Group has recognised provisions amounting to EUR 14 million (12 million) to cover the obli- gation to return emission rights. The Group possesses emission rights worth EUR 52 million (43 million) as intangible assets.

Repayments

103

103

Interests

–

–

As at 31 December

103

103

2015

2014

EURm

Guarantees, repayments

4

4

Non-current interest-bearing liabilities Bonds

Non-current loans repayments excl. committed facilities

145

710

624

459

67

632

2,637

1,165 1,013

1,081 1,335

Loans from financial institutions

Pension loans

158 167

241 100

As of 31 December 2014 the contractual maturity of interest-bearing liabilities

Finance lease liabilities

Derivative financial instruments

71

99

2015

2016

2017

2018

2019

2020+

Total

EURm Bonds

Other loans

213

191

Other liabilities

10

11

Repayments

–

–

321

206

–

378 211 589

905 441

2,797

3,058

Interests

58 58

58 58

58

31

25 25

379

237

1,346

Current interest-bearing liabilities Current portion of non-current liabilities

Loans from financial institutions Repayments

144

290

45

233

316

302

451

44

1,391

Committed facilities

–

–

–

–

– 2

– 1

–

Derivative financial instruments

21

41 75

Interests

20 65 74 13 87

19

18

15

75

Other liabilities

104 269

252

334

317

453

45

1,466

406

Pension loans

Repayments

74 10 84

74

74

– – – 5 – 5

– – –

296

Total interest-bearing liabilities

3,066

3,464

Interests

6

3

32

80

77

328

Allocation between non-current and current provisions

Finance lease liabilities Repayments

As at 31 December

171

30

4 1 5 2 7 9

4 – 4 2 3 5 – 4 4

58

272

2015

2014

EURm

Interests

6

1

2

10

177

31

60

282

Non-current provisions

92 62

112 102 214

Other loans

Current provisions

Repayments

2 7 9 – 4 4

2 7 9 – 3 3

1

148

157

Total

154

Interests

10 11

62

96

210

253

Interest rate swaps (liabilities) Repayments

48

– 6 6

19 16 35

67 37

Interests

4

52

104

Current loans

Repayments

74

74

Interests

–

–

74

74

Guarantees, repayments

5

5

Non-current loans repayments excl. committed facilities

292

339

717

588

457

628

3,021

Amounts are based on the exchange rates and interest rates on the reporting date. The difference between the above listed cash-based repayment amounts and the respective balance sheet values mainly arise from fair value adjustments to balance sheet items.

contents

accounts

121

122

UPM Annual Report 2015

UPM Annual Report 2015