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UPM Annual Report 2015
UPM Annual Report 2015
121
122
contents
accounts
IN BRIEF
STRATEGY
BUSINESSES
STAKEHOLDERS
GOVERNANCE
ACCOUNTS
30 Provisions
EURm
Restructuring
provisions
Termination
provisions
Environmental
provisions
Emission rights
provision
Other
provisions
Total
At 1 Jan. 2015
50
109
26
12
17
214
Additional provisions and increases
to existing provisions
3
9
–
14
6
32
Companies sold
–
–
–
–
–2
–2
Reclassifications
6
–6
–
–
–
–
Utilised during year
–8
–55
–1
–11
–2
–77
Unused amounts reversed
–4
–6
–1
–1
–1
–13
At 31 Dec. 2015
47
51
24
14
18
154
At 1 Jan. 2014
50
93
20
9
17
189
Additional provisions and increases
to existing provisions
15
76
8
11
5
115
Utilised during year
–10
–55
–2
–8
–3
–78
Unused amounts reversed
–5
–5
–
–
–2
–12
At 31 Dec. 2014
50
109
26
12
17
214
As of 31 December 2015 the contractual maturity of interest-bearing liabilities
EURm
2016
2017
2018
2019
2020
2021+
Total
Bonds
Repayments
–
340
230
–
–
421
991
Interests
64
64
35
28
28
207
426
64
404
265
28
28
628
1,417
Loans from financial institutions
Repayments
37
208
313
453
19
26
1,056
Committed facilities
–
–
–
–
–
–
–
Interests
15
14
13
2
1
1
46
52
222
326
455
20
27
1,102
Pension loans
Repayments
74
74
74
–
–
–
222
Interests
10
6
3
–
–
–
19
84
80
77
–
–
–
241
Finance lease liabilities
Repayments
32
86
5
6
47
22
198
Interests
5
5
1
1
1
2
15
37
91
6
7
48
24
213
Other loans
Repayments
2
2
2
–
1
163
170
Interests
7
7
4
11
7
61
97
9
9
6
11
8
224
267
Interest rate swaps (liabilities)
Repayments
–
28
–
–
–
12
40
Interests
4
5
5
6
3
9
32
4
33
5
6
3
21
72
Current loans
Repayments
103
103
Interests
–
–
103
103
Guarantees, repayments
4
4
Non-current loans repayments excl. committed facilities
145
710
624
459
67
632
2,637
As of 31 December 2014 the contractual maturity of interest-bearing liabilities
EURm
2015
2016
2017
2018
2019
2020+
Total
Bonds
Repayments
–
–
321
206
–
378
905
Interests
58
58
58
31
25
211
441
58
58
379
237
25
589
1,346
Loans from financial institutions
Repayments
45
233
316
302
451
44
1,391
Committed facilities
–
–
–
–
–
–
–
Interests
20
19
18
15
2
1
75
65
252
334
317
453
45
1,466
Pension loans
Repayments
74
74
74
74
–
–
296
Interests
13
10
6
3
–
–
32
87
84
80
77
–
–
328
Finance lease liabilities
Repayments
171
30
4
4
5
58
272
Interests
6
1
1
–
–
2
10
177
31
5
4
5
60
282
Other loans
Repayments
2
2
2
2
1
148
157
Interests
7
7
7
3
10
62
96
9
9
9
5
11
210
253
Interest rate swaps (liabilities)
Repayments
–
–
48
–
–
19
67
Interests
4
3
4
4
6
16
37
4
3
52
4
6
35
104
Current loans
Repayments
74
74
Interests
–
–
74
74
Guarantees, repayments
5
5
Non-current loans repayments excl. committed facilities
292
339
717
588
457
628
3,021
Amounts are based on the exchange rates and interest rates on the reporting date.
The difference between the above listed cash-based repayment amounts and the respective balance sheet values mainly arise from fair value adjustments to balance sheet items.
Provisions
At 31 December 2015, restructuring provisions and termination provi-
sions relate mainly to mill closures and operational restructuring in
Finland and France. In Finland provisions include also unemployment
arrangements and disability pensions. Unemployment pension provi-
sions are recognised 2–3 years before the granting and settlement of
the pension.
In 2014, additions in provisions relate mainly to capacity closures
in UPM Paper ENA. In November 2014, UPM announced the plan to
permanently close four of its paper machines: PM3 at UPM Chapelle,
PM1 at UPM Shotton, PM5 at UPM Jämsänkoski and PM2 at UPM
Kaukas. In addition, the restructuring measures have started in the
UPM Raflatac.
Environmental provisions include expenses relating to closed mills
and the remediation of industrial landfills.
The Group takes part in government programmes aimed at reduc-
ing greenhouse gas emissions. In 2015, the Group has recognised
provisions amounting to EUR 14 million (12 million) to cover the obli-
gation to return emission rights. The Group possesses emission rights
worth EUR 52 million (43 million) as intangible assets.
Allocation between non-current and current provisions
As at 31 December
EURm
2015
2014
Non-current provisions
92
112
Current provisions
62
102
Total
154
214
31 Interest-bearing liabilities
As at 31 December
EURm
2015
2014
Non-current interest-bearing liabilities
Bonds
1,165
1,081
Loans from financial institutions
1,013
1,335
Pension loans
158
241
Finance lease liabilities
167
100
Derivative financial instruments
71
99
Other loans
213
191
Other liabilities
10
11
2,797
3,058
Current interest-bearing liabilities
Current portion of non-current liabilities
144
290
Derivative financial instruments
21
41
Other liabilities
104
75
269
406
Total interest-bearing liabilities
3,066
3,464