UPM annual report 2015

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UPM Annual Report 2015 UPM Annual Report 2015 123 124
contents accounts
IN BRIEF STRATEGY BUSINESSES STAKEHOLDERS GOVERNANCE ACCOUNTS
Bonds in interest-bearing liabilities
Fixed rate
Interest
rate
%
Nominal
value issued
m
As at 31 Dec.
2015
EURm
2014
EURm
1997–2027 7.450 USD 375 470 424
2000–2030 3.550 JPY 10,000 95 85
2002–2017 6.625 GBP 250 355 346
2003–2018 5.500 USD 250 245 226
Total at 31 Dec. 1,165 1,081
Current portion – –
Non-current portion 1,165 1,081
Fair value hedge of non-current interest-bearing
liabilities
Fair value hedge accounting results in a cumulative fair value adjust-
ment totalling EUR 256 million (261 million), which has increased the
carrying amount of the liabilities.
Accordingly, the positive fair value of the hedging instruments,
excluding accrued interests, amounts EUR 266 million (279 million) in
assets, and negative fair value of EUR 0 million (0 million) in liabilities.
The effect of the fair value hedge ineffectiveness on the income state-
ment was loss EUR 8 million (profit 1 million).
Net interest-bearing liabilities
As at 31 December
EURm 2015 2014
Total interest-bearing liabilities 3,066 3,464
Interest-bearing financial assets
Non-current
Loan receivables 10 11
Derivative financial instruments 278 281
Other receivables 30 29
318 321
Current
Loan receivables 5 4
Derivative financial instruments 9 25
Other receivables 8 13
Cash and cash equivalents 626 700
648 742
Interest-bearing financial assets 966 1,063
Net interest-bearing liabilities 2,100 2,401
Finance lease liabilities
As at 31 December 2015 the Group has one sale and leaseback
agreement and three finance lease agreements regarding power plant
machinery. The Group uses the energy generated by these plants for
its own production. The Group also has a finance lease arrangement
over the usage of a waste water treatment plant. In addition, the
Group leases certain production assets and buildings under long term
arrangements.
Finance lease liabilities – minimum lease payments
As at 31 December
EURm 2015 2014
No later than 1 year 37 177
1–5 years 152 45
Later than 5 years 24 60
213 282
Future finance charges –15 –10
Finance lease liabilities – the present value
of minimum lease payments 198 272
34 Financial instruments by category
2015
EURm
Balance sheet item
Financial assets/
liabilities at fair
value through
profit or loss
Loans and
receivables
Available
for sale
financial
assets
Derivatives
used for
hedging
Financial
liabilities
measured at
amortised
cost
Carrying
amounts
by balance
sheet item Fair values Note
Non-current financial assets
Available-for-sale investments – – 2,085 – – 2,085 2,085 22
Non-current financial assets
Loan receivables – 20 – – – 20 20 23
Derivative financial instruments 20 – – 292 – 312 312 23
332 332 23
Current financial assets
Trade and other receivables
Trade and other receivables – 1,614 – – – 1,614 1,614 26
Prepayments and accrued income – 134 – – – 134 134 26
Derivative financial instruments 49 – – 79 – 128 128 26
1,876 1,876
Carrying amount by category 69 1,768 2,085 371 – 4,293 4,293
Non-current financial liabilities
Non-current interest-bearing liabilities
Non-current interest-bearing
liabilities – – – – 2,726 2,726 2,755 31
Derivative financial instruments 30 – – 41 – 71 71 31
2,797 2,826 31
Other liabilities
Other liabilities – – – – 103 103 103 32
Derivative financial instruments 30 – – 41 – 71 71 32
174 174 32
Current financial liabilities
Current interest-bearing liabilities
Interest-bearing liabilities – – – – 248 248 248 31
Derivative financial instruments 21 – – – – 21 21 31
269 269 31
Trade and other payables
Trade and other payables – – – – 1,033 1,033 1,033 33
Accrued expenses and deferred
income – – – – 430 430 430 33
Derivative financial instruments 40 – – 116 – 156 156 33
1,619 1,619
Carrying amount by category 121 – – 198 4,540 4,859 4,888
Finance lease liabilities – the present value of minimum
lease payments
As at 31 December
EURm 2015 2014
No later than 1 year 32 171
1–5 years 144 43
Later than 5 years 22 58
Total 198 272
32 Other liabilities
As at 31 December
EURm 2015 2014
Derivative financial instruments 71 51
Other 1) 103 99
Total 174 150
1) Consists mainly of non-current advances received and a put liability that is not
estimated to mature within 12 months.
33 Trade and other payables
As at 31 December
EURm 2015 2014
Advances received 20 8
Trade payables 917 854
Accrued expenses and deferred income 430 429
Derivative financial instruments 156 179
Other current liabilities 96 79
Total 1,619 1,549
Trade and other payables mature within 12 months.
Main items included in accrued expenses and deferred income
As at 31 December
EURm 2015 2014
Personnel expenses 203 194
Interest expenses 35 33
Indirect taxes 4 8
Other items 1) 188 194
Total 430 429
1) Consists mainly of customer rebates.