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UPM Annual Report 2015
UPM Annual Report 2015
105
106
contents
accounts
IN BRIEF
STRATEGY
BUSINESSES
STAKEHOLDERS
GOVERNANCE
ACCOUNTS
Segment information for the year ended 31 December 2015
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
1,668
237 1,409
962 5,036
418
403
5
10,138
Internal sales
604
178
–
206
20
21
3
–1,032
–
Total sales
1)
2,272
415 1,409 1,168 5,056
439
406
–1,027
10,138
Share of results of associates and joint ventures
1
–
–
–
1
–
1
–
3
Operating profit
466
155
99
55
32
53
306
–24
1,142
Finance costs, net
–67
Income taxes
–159
Profit (loss) for the period
916
Special items in operating profit
2)
–1
–26
–3
–
8
–2
3
–
–21
Operating profit excluding special items
467
181
102
55
24
55
303
–24
1,163
Assets
3)
3,384 2,425
697 1,200 2,637
284 1,720
–218
12,129
Unallocated assets
2,064
Total assets
14,193
Liabilities
4)
197
12
140
141
435
31
145
–164
937
Unallocated liabilities
5,312
Total liabilities
6,249
Other items
Depreciation and amortisation
169
11
35
86
190
23
13
–3
524
Impairment charge
–
–
–
–
–
–
–
–
–
Capital expenditure
5)
161
35
22
211
57
23
11
–
520
Capital expenditure,
excluding acquisitions and shares
159
3
22
211
57
23
11
–
486
Capital employed, 31 December
6)
3,187 2,413
557 1,059 2,202
253 1,575
–236
11,010
Capital employed, average
3,191 2,716
581 1,012 2,289
263 1,483
–558
10,977
Return on capital employed,
excluding special items %
7)
14.6
6.7
17.6
5.4
1.0
20.9
20.4
–
10.5
Personnel at year end
2,593
73 2,894 1,738 9,472 2,469
443
–104
19,578
Personnel, average
2,640
78 2,891 1,729 10,020 2,504
491
–107 20,246
1)
The Group's sales comprise mainly of product sales.
2)
In 2015, special items of EUR 1 million in the UPM Biorefining relate to increase of pension obligations due to Finnish employee pension reform. In the UPM Energy special
items of EUR 7 million relate to restructuring charges regarding PVO Thermal closure and EUR 19 million relate to project expenses of Olkiluoto 4 nuclear power plant. In the
UPM Raflatac special items of EUR 3 million mainly relate to net restructuring charges. In the UPM Paper ENA special items include net income of EUR 10 million related to
restructurings and special charge of EUR 2 million related to increase of pension obligation due to Finnish employee pension reform. In the UPM Plywood special item of EUR 2
million relates to Lahti estate restructuring charges. In the Other operations special items include capital gains of EUR 3 million from the sale of Tilhill Forestry Ltd shares, capital
gains of EUR 3 million from the sale of other assets and EUR 3 million of restructuring charges.
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 cash flow and commodity hedges that are not allocated to segments are included in reconciliations.
Segment information for the year ended 31 December 2014
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
1,374
251 1,248
939 5,216
415
442
–17
9,868
Internal sales
563
213
–
185
68
25
5
–1,059
–
Total sales
1)
1,937
464 1,248 1,124 5,284
440
447
–1,076
9,868
Share of results of associates and joint ventures
1
–
–
–
1
–
1
–
3
Operating profit
223
202
69
108
–32
44
82
–22
674
Finance costs, net
–7
Income taxes
–155
Profit (loss) for the period
512
Special items in operating profit
2)
6
–
–11
–
–213
–
45
–
–173
Operating profit excluding special items
217
202
80
108
181
44
37
–22
847
Assets
3)
3,171 2,826
678 1,008 2,754
284 1,605
–246
12,080
Unallocated assets
2,115
Total assets
14,195
Liabilities
4)
170
8
125
86
451
26
188
–191
863
Unallocated liabilities
5,852
Total liabilities
6,715
Other items
Depreciation and amortisation
151
11
32
80
213
24
11
–2
520
Impairment charge
–1
–
3
–
136
–
–
–
138
Capital expenditure
5)
151
35
24
84
102
8
8
–1
411
Capital expenditure,
excluding acquisitions and shares
147
3
24
84
102
8
8
–1
375
Capital employed, 31 December
6)
3,002 2,818
553
922 2,303
257 1,417
–328
10,944
Capital employed, average
2,862 2,903
530
861 2,511
268 1,445
–117
11,263
Return on capital employed,
excluding special items %
7)
7.6
7.0
15.1
12.5
7.2
16.4
2.6
–
7.5
Personnel at year end
2,529
80 2,847 1,652 10,467 2,441
509
–111
20,414
Personnel, average
2,612
85 2,845 1,663 10,735 2,463
559
–110
20,852
1)
The Group's sales comprise mainly of product sales.
2)
In 2014, special income of EUR 5 million in the UPM Biorefining relate to a gain on sale of property, plant and equipment and income of EUR 1 million relate to restructuring
measures. In the UPM Raflatac special items of EUR 11 million relate to restructuring charges, including impairments of EUR 3 million. In the UPM Paper ENA special items
include write-offs totalling EUR 135 million and restructuring charges totalling EUR 73 million related to planned capacity closures and charges of EUR 5 million related to other
restructuring measures, mainly to the closure of the UPM Docelles mill in France, including impairment charges of EUR 1 million. In the Other operations special items relate to a
capital gain of EUR 45 million from the sale of forestland in the UK.
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 cash flow and commodity hedges that are not allocated to segments are included in reconciliations.