UPM annual report 2015

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IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

35 Derivative financial instruments Net fair values of derivative financial instruments 2015

36 Principal subsidiaries and joint operations as at 31 December 2015

Financial liabilities measured at amortised cost

Financial assets/ liabilities at fair value through profit or loss

Available for sale financial assets

Carrying amounts by balance sheet item Fair values

2014 EURm Balance sheet item

Derivatives used for hedging

Loans and receivables

Group holding %

2014

Note

Subsidiaries, country of incorporation

Positive fair values

Nega- tive fair values

Positive fair values

Nega- tive fair values

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

Blandin Paper Company, US Forestal Oriental S.A., UY

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00 99.99

Net fair values

–

2,510

–

2,510

EURm

Gebrüder Lang GmbH Papierfabrik, DE

Interest rate swaps Cash flow hedges Fair value hedges Forward foreign exchange contracts Cash flow hedges Net equity hedges Held for trading

LLC UPM Ukraine, UA MD Papier GmbH, DE

– 9

– –

–

– –

23 23 23

– –18 –18

– –23 –23

Derivative financial instruments

–

282

291 334

181

– 181 201

– 201

Nordland Papier GmbH, DE

31 –2 29 31 –2 29

NorService GmbH, DE

Current financial assets Trade and other receivables

nortrans Speditionsgesellschaft mbH, DE

OOO UPM-Kymmene, RU

Trade and other receivables

– –

1,562

– – –

– –

– – –

1,562

26 26 26

17 –27 –10 49 –77 –28

OOO UPM-Kymmene Chudovo, RU PT UPM Raflatac Indonesia, ID

Prepayments and accrued income Derivative financial instruments

143

143 151

– –21 –21

– –30 –30

–

Held for trading

14 –14

– 24 –18

Rhein Papier GmbH, DE

1,856

Currency options Held for trading, bought Held for trading, written Cross currency swaps Cash flow hedges

Steyrermühl Sägewerksgesellschaft m.b.H. Nfg KG, AT

– –

UPM (China) Co., Ltd, CN UPM (Vietnam) Ltd, VN

Carrying amount by category

1,748

2,510

380

–

4,700

UPM AS, EE

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

– –23 –23

– –26 –26

UPM Asia Pacific Pte. Ltd, SG

Fair value hedges Held for trading

–

85 78

–

UPM France S.A.S., FR

16 –46 –30

6 –90 –84

UPM GmbH, DE

–

– –

–

2,959

3,037

31 31 31 32 32 32

Commodity Contracts Cash flow hedges

UPM Manufatura e Comércio de Produtos Florestais Ltda, BR

Derivative financial instruments

–

88 –109 –21 52 –81 –29

UPM Raflatac (Changshu) Co., Ltd, CN

3,058

3,136

Held for trading

8 –59 –51

1 –23 –22

UPM Raflatac (S) Pte Ltd, SG

Other liabilities

Interest rate forward contracts Held for trading

UPM Raflatac Canada Holdings Inc., CA

Other liabilities

–

– –

–

99 51

UPM Raflatac Co., Ltd, TH UPM Raflatac Iberica S.A., ES

Derivative financial instruments

–

150

UPM Raflatac Inc., US

Total

440 –319 121 442 –370 72

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

UPM Raflatac Mexico S.A. de C.V., MX

UPM Raflatac NZ Limited, NZ

No derivative financial instruments are subject to offsetting in the Group's financial statements. All derivative financial instruments are under ISDA or similar master netting agreement.

–

– –

365

31 31 31

UPM Raflatac Oy, FI

Derivative financial instruments

–

UPM Raflatac Pty Ltd, AU UPM Raflatac s.r.l., AR UPM Raflatac Sdn. Bhd., MY

406

Trade and other payables

UPM Raflatac South Africa (Pty) Ltd, ZA

Trade and other payables

–

941

Net fair values calculated by counterparty

UPM Raflatac Sp.z.o.o., PL

Accrued expenses and deferred income Derivative financial instruments

As at 31 December 2015

UPM S.A., UY

–

– –

–

429

429 179

33 33

Positive fair values

Negative fair values

Net fair values

UPM Sales GmbH, DE UPM Sales Oy, FI UPM Silvesta Oy, FI

149

–

EURm

1,549

Derivative financial instruments

250

–129

121

UPM Sähkönsiirto Oy, FI UPM-Kymmene (UK) Ltd, GB

Carrying amount by category

133

–

237

4,793

5,163

5,241

Notional amounts of derivative financial instruments

UPM-Kymmene AB, SE

As at 31 December

UPM-Kymmene Austria GmbH, AT

2015 1,906 2,131 2,949

2014 2,310 2,134 4,465

EURm

Fair values of long-term loans, have been estimated as follows: • The fair value of quoted bonds is based on the quoted market value as of 31 December. The fair value of fixed rate and market-based floating rate loans is estimated using the expected future payments discounted at market interest rates and it is within level 2 of the fair value hierarchy. • The carrying amounts of current financial assets and liabilities approximate their fair value.

UPM-Kymmene B.V., NL UPM-Kymmene Inc., US

Interest rate forward contracts

Interest rate swaps

UPM-Kymmene India Private Limited, IN

Forward foreign exchange contracts

UPM-Kymmene Japan K.K., JP

Currency options

UPM-Kymmene Kagit Urunleri Sanayi ve Ticaret Ltd. Sti, TR

Cross currency swaps Commodity contracts

669 400

617 442

UPM-Kymmene Otepää AS, EE UPM-Kymmene Pty Limited, AU

UPM-Kymmene S.A., ES

UPM-Kymmene Seven Seas Oy, FI

Cash collaterals pledged for derivative contracts totalled EUR 7 million of which EUR 5 million relate to commodity contracts and EUR 2 mil- lion to interest rate forward contracts.

UPM-Kymmene S.r.l., IT

UPM-Kymmene Wood Oy, FI

Werla Insurance Company Ltd, MT

Wisapower Oy, FI 100.00 The table includes subsidiaries with sales exceeding EUR 2 million. Group Joint operations, country of incorporation holding % Oy Alholmens Kraft Ab (Pohjolan Voima Oy, G serie), FI 27.88 EEVG Entsorgungs- und Energieverwertungs- gesellschaft m.b.H., AT 50.00 Järvi-Suomen Voima Oy, FI 50.00 Kainuun Voima Oy, FI 50.00 Kaukaan Voima Oy (Pohjolan Voima Oy, G9 serie), FI 54.00 Kymin Voima Oy (Pohjolan Voima Oy, G2 serie), FI 76.00 Madison Paper Industries, US 50.00 Rauman Biovoima Oy (Pohjolan Voima Oy, G4 serie), FI 71.95

contents

accounts

125

126

UPM Annual Report 2015

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