UPM annual report 2014

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UPM Annual Report 2014 UPM Annual Report 2014 123 124
CONTENTS ACCOUNTS
As at 31 December
EURm Note 2014 2013
Equity and liabilities
Shareholders’ equity 11
Share capital 890 890
Revaluation reserve 463 493
Reserve for invested non-restricted equity 1,273 1,226
Retained earnings 1,378 1,446
Profit/loss for the financial period 710 251
Total equity 4,714 4,306
Appropriations
Accumulated depreciation difference 564 682
Provisions 12
Provisions for pensions 17 17
Other provisions 51 46
Total provisions 68 63
Non-current liabilities 13
Bonds 905 822
Loans from financial institutions 1,223 1,523
Pension loans 202 270
Other liabilities 145 145
Total non-current liabilities 2,475 2,760
Current liabilities 14
Bonds – 363
Loans from financial institutions 16 8
Pension loans 68 68
Advances received 1 6
Trade payables 280 303
Payables to Group companies 2,123 2,383
Payables to participating interest
companies 6 7
Other liabilities 37 30
Accruals and deferred income 292 296
Total current liabilities 2,823 3,464
Total liabilities 5,298 6,224
Total equity and liabilities 10,644 11,275
Balance sheet
As at 31 December
EURm Note 2014 2013
Assets
Non-current assets
Intangible assets 7
Intangible rights 5 5
Other capitalised expenditure 198 219
Advance payments 3 6
Total intangible assets 206 230
Tangible assets 8
Land and water areas 934 974
Buildings 441 460
Machinery and equipment 720 841
Other tangible assets 38 41
Advance payments and construction
in progress 209 142
Total tangible assets 2,342 2,458
Investments 9
Holdings in Group companies 4,648 4,922
Receivables from Group companies 666 693
Holdings in participating interest
companies 99 99
Receivables from participating
interest companies 6 5
Other shares and holdings 582 562
Other receivables 30 31
Total investments 6,031 6,312
Total non-current assets 8,579 9,000
Current assets
Inventories
Raw materials and consumables 229 236
Finished products and goods 77 110
Advance payments 38 35
Total inventories 344 381
Current receivables 10
Trade receivables 121 155
Receivables from Group companies 953 969
Receivables from participating
interest companies 11 13
Loan receivables 2 2
Other receivables 79 70
Prepayments and accrued income 91 109
Total current receivables 1,257 1,318
Cash and cash equivalents 464 576
Total current assets 2,065 2,275
Total assets 10,644 11,275
Notes to the parent company financial statements
(All amounts in millions of euros unless otherwise stated.)
Accounting policies
The parent company financial statements are prepared in accordance
with Finnish Accounting Standards. The main differences in accounting
policies between the Group and the parent company relate to the mea-
surement of derivative financial instruments and biological assets and
the recognition of defined benefit obligations, revaluations and deferred
income taxes. See Notes to the consolidated financial statements, Note 1.
1 Turnover
Owing to the corporate structure of the Group, the turnover of the
parent company has not been divided by segment and destination. See
Notes to the consolidated financial statements, Note 4.
2 Other operating income
Year ended 31 Dec.
EURm 2014 2013
Gains on sale of non-current assets 163 94
Rental income 17 15
Gains on sale of emission rights 1) – 1
Other 6 3
Total 186 113
1) Emissions trading rights are accounted for on a net basis.
3 Personnel expenses and other operating
costs and expenses
Year ended 31 Dec.
EURm 2014 2013
Wages and salaries
President and CEO, and members of
the Board of Directors 2) 3 3
Other wages and salaries 358 369
Total 361 372
2) See Notes to the consolidated financial statements, Note 7.
Year ended 31 Dec.
2014 2013
Average number of personnel 5,880 6,410
Owing to the corporate structure of the Group, the average number of personnel has
not been divided by segment. See Notes to the consolidated financial statements,
Note 4.
Year ended 31 Dec.
EURm 2014 2013
Auditor's fees 0.8 1.0
4 Depreciation and value adjustments
Year ended 31 Dec.
EURm 2014 2013
Depreciation according to plan
Intangible rights 2 3
Other capitalised expenditure 32 36
Buildings 35 33
Machinery and equipment 151 160
Other tangible assets 7 7
Total 227 239
Value adjustments
Intangible and tangible assets 50 25
Total 277 264
5 Extraordinary items
Year ended 31 Dec.
EURm 2014 2013
Extraordinary income
Group contributions received 70 35
Total 70 35
Extraordinary expenses
Group contributions paid –9 –31
Total –9 –31
Total extraordinary items 61 4
6 Income taxes
Year ended 31 Dec.
EURm 2014 2013
Income taxes for the financial period 86 116
Total 86 116
Deferred income taxes
Deferred income tax assets and liabilities of the parent company are not
recorded on the balance sheet. Deferred tax liability mainly comprises
depreciation differences, for which the deferred tax liability at 31 Decem-
ber 2014 was EUR 113 million at 20% tax rate (136 million). Deferred
tax liability is not stated separately for revaluations. The potential tax
liability arising from the sale of revalued asset is EUR 124 million at
20% tax rate (131 million). Deferred tax asset mainly comprises provi-
sions, for which the deferred tax asset at 31 December 2014 was
EUR 14 million at 20% tax rate (13 million).