UPM annual report 2015

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UPM Annual Report 2015 UPM Annual Report 2015 125 126
contents accounts
IN BRIEF STRATEGY BUSINESSES STAKEHOLDERS GOVERNANCE ACCOUNTS
2014
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 – – 2,510 – – 2,510 2,510 22
Non-current financial assets
Loan receivables – 43 – – – 43 43 23
Derivative financial instruments 9 – – 282 – 291 291 23
334 334 23
Current financial assets
Trade and other receivables
Trade and other receivables – 1,562 – – – 1,562 1,562 26
Prepayments and accrued income – 143 – – – 143 143 26
Derivative financial instruments 53 – – 98 – 151 151 26
1,856 1,856
Carrying amount by category 62 1,748 2,510 380 – 4,700 4,700
Non-current financial liabilities
Non-current interest-bearing liabilities
Non-current interest-bearing
liabilities – – – – 2,959 2,959 3,037 31
Derivative financial instruments 50 – – 49 – 99 99 31
3,058 3,136 31
Other liabilities
Other liabilities – – – – 99 99 99 32
Derivative financial instruments 12 – – 39 – 51 51 32
150 150 32
Current financial liabilities
Current interest-bearing liabilities
Interest-bearing liabilities – – – – 365 365 365 31
Derivative financial instruments 41 – – – – 41 41 31
406 406 31
Trade and other payables
Trade and other payables – – – – 941 941 941 33
Accrued expenses and deferred
income – – – – 429 429 429 33
Derivative financial instruments 30 – – 149 – 179 179 33
1,549 1,549
Carrying amount by category 133 – – 237 4,793 5,163 5,241
Fair values of long-term loans, have been estimated as follows:
• The fair value of quoted bonds is based on the quoted market value as of 31 December. The fair value of fixed rate and market-based
floating rate loans is estimated using the expected future payments discounted at market interest rates and it is within level 2 of the fair
value hierarchy.
• The carrying amounts of current financial assets and liabilities approximate their fair value.
35 Derivative financial instruments
Net fair values of derivative financial instruments
2015 2014
EURm
Positive
fair
values
Nega-
tive fair
values
Net fair
values
Positive
fair
values
Nega-
tive fair
values
Net fair
values
Interest rate swaps
Cash flow hedges – –18 –18 – –23 –23
Fair value hedges 181 – 181 201 – 201
Held for trading 31 –2 29 31 –2 29
Forward foreign
exchange contracts
Cash flow hedges 17 –27 –10 49 –77 –28
Net equity hedges – –21 –21 – –30 –30
Held for trading 14 –14 – 24 –18 6
Currency options
Held for trading, bought – – – – – –
Held for trading, written – – – – – –
Cross currency swaps
Cash flow hedges – –23 –23 – –26 –26
Fair value hedges 85 – 85 78 – 78
Held for trading 16 –46 –30 6 –90 –84
Commodity Contracts
Cash flow hedges 88 –109 –21 52 –81 –29
Held for trading 8 –59 –51 1 –23 –22
Interest rate forward
contracts
Held for trading – – – – – –
Total 440 –319 121 442 –370 72
No derivative financial instruments are subject to offsetting in the
Group's financial statements. All derivative financial instruments are
under ISDA or similar master netting agreement.
Net fair values calculated by counterparty
As at 31 December 2015
EURm
Positive fair
values
Negative fair
values
Net fair
values
Derivative financial instruments 250 –129 121
Notional amounts of derivative financial instruments
As at 31 December
EURm 2015 2014
Interest rate forward contracts 1,906 2,310
Interest rate swaps 2,131 2,134
Forward foreign exchange contracts 2,949 4,465
Currency options 73 38
Cross currency swaps 669 617
Commodity contracts 400 442
Cash collaterals pledged for derivative contracts totalled EUR 7 million
of which EUR 5 million relate to commodity contracts and EUR 2 mil-
lion to interest rate forward contracts.
36 Principal subsidiaries and joint operations
as at 31 December 2015
Subsidiaries, country of incorporation
Group
holding %
Blandin Paper Company, US 100.00
Forestal Oriental S.A., UY 100.00
Gebrüder Lang GmbH Papierfabrik, DE 100.00
LLC UPM Ukraine, UA 100.00
MD Papier GmbH, DE 100.00
Nordland Papier GmbH, DE 100.00
NorService GmbH, DE 100.00
nortrans Speditionsgesellschaft mbH, DE 100.00
OOO UPM-Kymmene, RU 100.00
OOO UPM-Kymmene Chudovo, RU 100.00
PT UPM Raflatac Indonesia, ID 100.00
Rhein Papier GmbH, DE 100.00
Steyrermühl Sägewerksgesellschaft m.b.H. Nfg KG, AT 100.00
UPM (China) Co., Ltd, CN 100.00
UPM (Vietnam) Ltd, VN 100.00
UPM AS, EE 100.00
UPM Asia Pacific Pte. Ltd, SG 100.00
UPM France S.A.S., FR 100.00
UPM GmbH, DE 100.00
UPM Manufatura e Comércio de Produtos Florestais Ltda, BR 100.00
UPM Raflatac (Changshu) Co., Ltd, CN 100.00
UPM Raflatac (S) Pte Ltd, SG 100.00
UPM Raflatac Canada Holdings Inc., CA 100.00
UPM Raflatac Co., Ltd, TH 100.00
UPM Raflatac Iberica S.A., ES 100.00
UPM Raflatac Inc., US 100.00
UPM Raflatac Mexico S.A. de C.V., MX 100.00
UPM Raflatac NZ Limited, NZ 100.00
UPM Raflatac Oy, FI 100.00
UPM Raflatac Pty Ltd, AU 100.00
UPM Raflatac s.r.l., AR 100.00
UPM Raflatac Sdn. Bhd., MY 100.00
UPM Raflatac South Africa (Pty) Ltd, ZA 100.00
UPM Raflatac Sp.z.o.o., PL 100.00
UPM S.A., UY 91.00
UPM Sales GmbH, DE 100.00
UPM Sales Oy, FI 100.00
UPM Silvesta Oy, FI 100.00
UPM Sähkönsiirto Oy, FI 100.00
UPM-Kymmene (UK) Ltd, GB 100.00
UPM-Kymmene AB, SE 100.00
UPM-Kymmene Austria GmbH, AT 100.00
UPM-Kymmene B.V., NL 100.00
UPM-Kymmene Inc., US 100.00
UPM-Kymmene India Private Limited, IN 100.00
UPM-Kymmene Japan K.K., JP 100.00
UPM-Kymmene Kagit Urunleri Sanayi ve Ticaret Ltd. Sti, TR 99.99
UPM-Kymmene Otepää AS, EE 100.00
UPM-Kymmene Pty Limited, AU 100.00
UPM-Kymmene S.A., ES 100.00
UPM-Kymmene Seven Seas Oy, FI 100.00
UPM-Kymmene S.r.l., IT 100.00
UPM-Kymmene Wood Oy, FI 100.00
Werla Insurance Company Ltd, MT 100.00
Wisapower Oy, FI 100.00
The table includes subsidiaries with sales exceeding EUR 2 million.
Group
Joint operations, country of incorporation holding %
Oy Alholmens Kraft Ab (Pohjolan Voima Oy, G serie), FI 27.88
EEVG Entsorgungs- und Energieverwertungs-
gesellschaft m.b.H., AT 50.00
Järvi-Suomen Voima Oy, FI 50.00
Kainuun Voima Oy, FI 50.00
Kaukaan Voima Oy (Pohjolan Voima Oy, G9 serie), FI 54.00
Kymin Voima Oy (Pohjolan Voima Oy, G2 serie), FI 76.00
Madison Paper Industries, US 50.00
Rauman Biovoima Oy (Pohjolan Voima Oy, G4 serie), FI 71.95