UPM annual report 2015

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

34 Financial instruments by category

Finance lease liabilities – the present value of minimum lease payments

Bonds in interest-bearing liabilities

Financial liabilities measured at amortised cost

Interest rate % 7.450 3.550 6.625 5.500

Nominal value issued m

As at 31 Dec.

Financial assets/ liabilities at fair value through profit or loss

Available for sale financial assets

Carrying amounts by balance sheet item Fair values

2015 EURm

2014 EURm

As at 31 December

2015 EURm Balance sheet item

Derivatives used for hedging

Fixed rate 1997–2027 2000–2030 2002–2017 2003–2018

2015

2014

EURm

Loans and receivables

USD 375 JPY 10,000

470

424

No later than 1 year

32

171

Note

95

85

1–5 years

144

43 58

Non-current financial assets Available-for-sale investments Non-current financial assets Loan receivables

GBP

250

355 245

346 226

Later than 5 years

22

–

–

2,085

–

–

2,085

2,085

22

USD 250

Total

198

272

Total at 31 Dec. Current portion

1,165 1,081

–

20

– –

–

– –

20

20

23 23 23

–

–

Derivative financial instruments

20

–

292

312 332

312 332

Non-current portion

1,165 1,081

32 Other liabilities

Current financial assets Trade and other receivables

As at 31 December

Fair value hedge of non-current interest-bearing liabilities Fair value hedge accounting results in a cumulative fair value adjust- ment totalling EUR 256 million (261 million), which has increased the carrying amount of the liabilities. Accordingly, the positive fair value of the hedging instruments, excluding accrued interests, amounts EUR 266 million (279 million) in assets, and negative fair value of EUR 0 million (0 million) in liabilities. The effect of the fair value hedge ineffectiveness on the income state- ment was loss EUR 8 million (profit 1 million).

2015

2014

EURm

Trade and other receivables

– –

1,614

– – –

– –

– – –

1,614

1,614

26 26 26

Derivative financial instruments

71

51 99

Prepayments and accrued income Derivative financial instruments

134

134 128

134 128

Other 1)

103 174

49

–

79

Total

150

1,876

1,876

1) Consists mainly of non-current advances received and a put liability that is not estimated to mature within 12 months.

Carrying amount by category

69

1,768

2,085

371

–

4,293

4,293

Non-current financial liabilities Non-current interest-bearing liabilities Non-current interest-bearing liabilities

33 Trade and other payables

As at 31 December

–

– –

– –

–

2,726

2,726

2,755

31 31 31 32 32 32

2015

2014

EURm

Derivative financial instruments

30

41

–

71

71

Net interest-bearing liabilities

Advances received

20

8

2,797

2,826

Trade payables

917 430 156

854 429 179

As at 31 December

Other liabilities

2015 3,066

2014

EURm

Accrued expenses and deferred income

Other liabilities

–

– –

– –

–

103

103

103

Derivative financial instruments

Derivative financial instruments

30

41

–

71

71

Total interest-bearing liabilities

3,464

Other current liabilities

96

79

174

174

Total

1,619

1,549

Interest-bearing financial assets Non-current Loan receivables

Current financial liabilities Current interest-bearing liabilities Interest-bearing liabilities

10

11

Trade and other payables mature within 12 months.

–

– –

– –

– –

248

248

248

31 31 31

Derivative financial instruments

278

281

Derivative financial instruments

21

–

21

21

Other receivables

30

29

269

269

318

321

Main items included in accrued expenses and deferred income As at 31 December EURm 2015 2014 Personnel expenses 203 194 Interest expenses 35 33 Indirect taxes 4 8 Other items 1) 188 194 Total 430 429

Trade and other payables

Current

Trade and other payables

–

–

–

–

1,033

1,033

1,033

33

Loan receivables

5 9 8

4

Accrued expenses and deferred income Derivative financial instruments

Derivative financial instruments

25 13

–

– –

– –

–

430

430 156

430 156

33 33

Other receivables

40

116

–

Cash and cash equivalents

626 648 966

700 742

1,619

1,619

Interest-bearing financial assets

1,063

Carrying amount by category

121

–

–

198

4,540

4,859

4,888

Net interest-bearing liabilities

2,100

2,401

Consists mainly of customer rebates.

1)

Finance lease liabilities As at 31 December 2015 the Group has one sale and leaseback agreement and three finance lease agreements regarding power plant machinery. The Group uses the energy generated by these plants for its own production. The Group also has a finance lease arrangement over the usage of a waste water treatment plant. In addition, the Group leases certain production assets and buildings under long term arrangements.

Finance lease liabilities – minimum lease payments

As at 31 December

2015

2014

EURm

No later than 1 year

37

177

1–5 years

152

45 60

Later than 5 years

24

213 –15

282 –10

Future finance charges

Finance lease liabilities – the present value of minimum lease payments

198

272

contents

accounts

123

124

UPM Annual Report 2015

UPM Annual Report 2015