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UPM Annual Report 2014
UPM Annual Report 2014
97
98
CONTENTS
ACCOUNTS
Segment information for the year ended 31 December 2013
EURm
UPM
Biorefining
UPM
Energy
UPM
Raflatac
UPM
Paper
Asia
UPM
Paper
ENA
UPM
Plywood
Other
operations
Eliminations
and reconci-
liations
8)
Group
External sales
1,299
222 1,210
914 5,451
402
496
60
10,054
Internal sales
689
244
3
194
109
27
–6
–1,260
–
Total sales
1)
1,988
466 1,213 1,108 5,560
429
490
–1,200
10,054
Share of results of associates and joint ventures
1
–1
–
–
1
–
1
–
2
Operating profit
306
186
60
80
–59
21
–42
–4
548
Finance costs, net
–73
Income taxes
–140
Profit (loss) for the period
335
Special items in operating profit
2)
6
–
–15
–
–59
–
–67
–
–135
Operating profit excluding special items
300
186
75
80
–
21
25
–4
683
Assets
3)
2,946 2,984
616
937 3,013
299 1,677
–247
12,225
Unallocated assets
2,374
Total assets
14,599
Liabilities
4)
156
22
108
67
451
25
214
–196
847
Unallocated liabilities
6,297
Total liabilities
7,144
Other items
Depreciation and amortisation
152
11
33
81
229
22
13
–3
538
Impairment charge
–
–
3
–
4
–
–
–
7
Capital expenditure
5)
159
39
13
22
97
10
23
–1
362
Capital expenditure,
excluding acquisitions and shares
158
7
13
22
92
9
29
–1
329
Capital employed, 31 December
6)
2,790 2,962
508
870 2,562
274 1,463
154
11,583
Capital employed, average
2,825 2,882
532
882 2,672
286 1,533
–19
11,593
Return on capital employed,
excluding special items %
7)
10.6
6.5
14.1
9.1
–
7.3
1.6
21.1
6.0
Personnel at year end
2,376
92 2,869 1,457 11,081 2,455
735
–115
20,950
Personnel, average
2,539
95 2,905 1,510 11,695 2,507
760
–113
21,898
1)
The Group's sales comprise mainly of product sales.
2)
In 2013, special charges of EUR 2 million in the UPM Biorefining segment relate to restructuring measures and special income of EUR 8 million to a capital gain from a sale of
property, plant and equipment. In the UPM Raflatac segment special items of EUR 15 million relate to restructuring charges, including impairments of EUR 2 million. In the UPM
Paper ENA segment special items include charges of EUR 25 million related to the restructuring of the UPM Docelles mill in France and net charges of EUR 34 million mainly
related to the ongoing restructurings. In the Other operations special items of EUR 40 million relate to write-down of receivable due to the Finnish Customs’ decision to dismiss
UPM’s application for the statutory refund of energy taxes for the year 2012. In addition, special items include charges of EUR 27 million mainly related to the streamlining of
global functions.
3)
Segment assets include goodwill, other intangible assets, property, plant and equipment, investment property, biological assets and investments in associated companies and
joint ventures, available-for-sale investments, inventories and trade receivables.
4)
Segment liabilities include trade payables and advances received.
5)
Capital expenditure includes goodwill arising from business combinations, other intangible assets, property, plant and equipment, investment property, and investments in as-
sociated companies and joint ventures and other shares.
6)
Capital employed is segment assets less segment liabilities. Eliminations and reconciliations include unallocated assets and unallocated non-interest-bearing liabilities.
7)
Formulae for calculation of the return on capital employed; for segments: Operating profit excluding special items/Capital employed (average) x 100, for the Group: (Profit
before tax + interest expenses and other financial expenses–special items)/(Total equity+interest bearing liabilities (average)) x 100.
8)
Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the consolidation of MPI as a joint operation. In addition the changes
in fair value of unrealised commodity hedges that are not allocated to segments are included in reconciliations.
Geographical information
External sales by destination
Year ended 31 December
EURm
2014 2013
Germany
1,694 1,788
Finland
980 1,011
United Kingdom
919
915
France
414
454
Other EU countries
2,052 1,900
Other European countries
508
563
United States
1,006 1,077
Canada
50
50
China
637
715
Uruguay
41
43
Rest of world
1,567 1,538
Total
9,868 10,054
Total assets by country
As at 31 December
EURm
2014 2013
Germany
1,222 1,252
Finland
8,753 9,344
United Kingdom
250
294
France
67
152
Other EU countries
335
347
Other European countries
79
96
United States
464
421
Canada
11
20
China
913
767
Uruguay
1,790 1,626
Rest of world
311
280
Total
14,195 14,599
Capital expenditure by country
Year ended 31 December
EURm
2014 2013
Germany
59
52
Finland
236
242
United Kingdom
9
9
France
2
5
Poland
11
1
Other European countries
2
6
United States
5
7
China
77
21
Uruguay
8
17
Rest of world
2
2
Total
411
362
5 Acquisitions and disposals and notes
to the cash flow statement
Acquisitions
In 2014 and 2013, no acquisitions were made.
Disposals
In 2014, UPM had minor company disposals. In 2013, there were no
disposals.
Notes to the consolidated cash flow statement
Adjustments
Year ended 31 December
EURm
2014 2013
Change in fair value of biological assets and
wood harvested
–78
–68
Share of results of associated companies and
joint ventures
–3
–2
Depreciation, amortisation and impairment charges
658
545
Capital gains on sale of non-current assets, net
–117
–19
Finance costs, net
66
74
Taxes
155
140
Change in restructuring provisions
14
–13
Other adjustments
84
93
Total
779
750
Change in working capital
Year ended 31 December
EURm
2014 2013
Inventories
18
33
Current receivables
59
12
Current non-interest-bearing liabilities
–4 –173
Total
73 –128
The total amount of taxes paid in 2014 amounted to EUR 81 million
(161 million). In 2013, EUR 4 million of total taxes paid related to
investing activities.
6 Other operating income
Year ended 31 December
EURm
2014 2013
Gains on sale of non-current assets
62
19
Rental income, investment property
4
5
Rental income, other
11
10
Emission rights received (Note 7)
27
16
Derivatives held for trading
–53
32
Exchange rate gains and losses
23
–36
Other
17
14
Total
91
60
7 Costs and expenses
Year ended 31 December
EURm
2014 2013
Change in inventories of finished goods and
work in progress
–12
37
Production for own use
–6
–9
Materials and services
Raw materials, consumables and goods
5,559 5,801
Derivatives designated as cash flow hedges
47
13
External services and charges
1)
913 902
6,519 6,716