UPM annual report 2014

UPM Annual Report 2014

135

136

CONTENTS

ACCOUNTS

Calculation of key indicators

Formulae for calculation of finan-

cial indicators

Return on equity, %:

Profit before tax – income taxes

x 100

Total equity (average)

Return on capital employed, %:

Profit before tax + interest expenses and

other financial expenses

x 100

Total equity + interest-bearing

liabilities

(average)

Equity to assets ratio, %:

Total equity

x 100

Balance sheet total – advances received

Net interest-bearing liabilities:

Interest-bearing liabilities – interest-bearing assets

Gearing ratio, %:

Net interest-bearing liabilities

x 100

Total equity

EBITDA:

Operating profit + depreciation + impairment

+/– change in value of biological assets

+/– share of results of associated companies and

joint ventures +/– special items

Return on capital employed (ROCE) for the

segments (operating capital), %:

Operating profit – special items

x 100

Non-current assets + inventories + trade

receivables – trade payables (average)

Formulae for calculation of adjust-

ed share-related indicators

Earnings per share:

Profit for the period attributable to owners

of the parent company

Adjusted average number of shares during the

period excluding treasury shares

Equity per share:

Equity attributable to owners of

the parent company

Adjusted number of shares at end of period

Dividend per share:

Dividend distribution

Adjusted number of shares at end of period

Dividend to earnings ratio, %:

Dividend per share

x 100

Earnings per share

Effective dividend yield, %:

Adjusted dividend per share

x 100

Adjusted share price at 31.12.

P/E ratio:

Adjusted share price at 31.12.

Earnings per share

Market capitalisation:

Total number of shares x share price at end of

period

Adjusted share price at end of period:

Share price at end of period

Share issue coefficient

Adjusted average share price:

Total value of shares traded

Adjusted number of shares traded during period

Operating cash flow per share:

Cash from operating activities

Adjusted average number of shares during the

period excluding treasury shares

Key exchange rates for the euro at end of period

31.12.2014 30.9.2014 30.6.2014 31.3.2014 31.12.2013 30.9.2013 30.6.2013 31.3.2013

USD

1.2141

1.2583

1.3658

1.3788

1.3791

1.3505

1.3080

1.2805

CAD

1.4063

1.4058

1.4589

1.5225

1.4671

1.3912

1.3714

1.3021

JPY

145.23

138.11

138.44

142.42

144.72

131.78

129.39

120.87

GBP

0.7789

0.7773

0.8015

0.8282

0.8337

0.8361

0.8572

0.8456

SEK

9.3930

9.1465

9.1762

8.9483

8.8591

8.6575

8.7773

8.3553

Auditor’s report

(Translation from the Finnish Original)

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the financial statements and the

report of the Board of Directors. The procedures selected depend on the

auditor’s judgment, including the assessment of the risks of material

misstatement, whether due to fraud or error. In making those risk assess-

ments, the auditor considers internal control relevant to the entity’s

preparation of financial statements and report of the Board of Directors

that give a true and fair view in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing

an opinion on the effectiveness of the company’s internal control. An

audit also includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by manage-

ment, as well as evaluating the overall presentation of the financial state-

ments and the report of the Board of Directors.

We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our audit opinion.

Opinion on the Consolidated Financial Statements

In our opinion, the consolidated financial statements give a true and fair view

of the financial position, financial performance, and cash flows of the group

in accordance with International Financial Reporting Standards (IFRS) as

adopted by the EU.

Opinion on the Company’s Financial Statements and

the Report of the Board of Directors

In our opinion, the financial statements and the report of the Board of

Directors give a true and fair view of both the consolidated and the parent

company’s financial performance and financial position in accordance with

the laws and regulations governing the preparation of the financial statements

and the report of the Board of Directors in Finland. The information in the

report of the Board of Directors is consistent with the information in the

financial statements.

Other Opinions

We support that the financial statements and the consolidated financial

statements should be adopted. The proposal by the Board of Directors

regarding the use of the profit shown in the balance sheet is in compliance

with the Limited Liability Companies Act. We support that the Members of

the Board of Directors and the Managing Director of the parent company

should be discharged from liability for the financial period audited by us.

To the Annual General Meeting of UPM-Kymmene Corporation

We have audited the accounting records, the financial statements, the report

of the Board of Directors and the administration of UPM-Kymmene Corpo-

ration for the year ended 31 December, 2014. The financial statements com-

prise the consolidated statement of financial position, income statement,

statement of comprehensive income, statement of changes in equity and

statement of cash flows, and notes to the consolidated financial statements, as

well as the parent company’s balance sheet, income statement, cash flow state-

ment and notes to the financial statements.

Responsibility of the Board of Directors and

the Managing Director

The Board of Directors and the Managing Director are responsible for the

preparation of consolidated financial statements that give a true and fair view

in accordance with International Financial Reporting Standards (IFRS) as

adopted by the EU, as well as for the preparation of financial statements and

the report of the Board of Directors that give a true and fair view in accor-

dance with the laws and regulations governing the preparation of the finan-

cial statements and the report of the Board of Directors in Finland. The

Board of Directors is responsible for the appropriate arrangement of the

control of the company’s accounts and finances, and the Managing Director

shall see to it that the accounts of the company are in compliance with the

law and that its financial affairs have been arranged in a reliable manner.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements, on the

consolidated financial statements and on the report of the Board of Directors

based on our audit. The Auditing Act requires that we comply with the

requirements of professional ethics. We conducted our audit in accordance

with good auditing practice in Finland. Good auditing practice requires that

we plan and perform the audit to obtain reasonable assurance about whether

the financial statements and the report of the Board of Directors are free

from material misstatement, and whether the members of the Board of

Directors of the parent company or the Managing Director are guilty of an

act or negligence which may result in liability in damages towards the compa-

ny or whether they have violated the Limited Liability Companies Act or the

articles of association of the company.

Helsinki 13 February 2015

PricewaterhouseCoopers Oy

Authorised Public Accountants

Merja Lindh

Authorised Public Accountant