UPM annual report 2015

134-135 / 158

UPM Annual Report 2015 UPM Annual Report 2015 131 132
contents accounts
IN BRIEF STRATEGY BUSINESSES STAKEHOLDERS GOVERNANCE ACCOUNTS
As at 31 December
EURm Note 2015 2014
Equity and liabilities
Shareholders’ equity 11
Share capital 890 890
Revaluation reserve 427 463
Reserve for invested non-restricted equity 1,273 1,273
Retained earnings 1,714 1,378
Profit for the financial period 545 710
Total equity 4,849 4,714
Appropriations
Accumulated depreciation difference 608 564
Provisions 12
Provisions for pensions 13 17
Other provisions 47 51
Total provisions 60 68
Non-current liabilities 13
Bonds 991 905
Loans from financial institutions 911 1,223
Pension loans 135 202
Other liabilities 161 145
Total non-current liabilities 2,198 2,475
Current liabilities 14
Loans from financial institutions 13 16
Pension loans 68 68
Advances received 1 1
Trade payables 300 280
Payables to Group companies 1,489 2,123
Payables to participating interest
companies 3 6
Other liabilities 55 37
Accruals and deferred income 240 292
Total current liabilities 2,169 2,823
Total liabilities 4,367 5,298
Total equity and liabilities 9,884 10,644
Balance sheet
As at 31 December
EURm Note 2015 2014
Assets
Non-current assets
Intangible assets 7
Intangible rights 5 5
Other capitalised expenditure 178 198
Advance payments 4 3
Total intangible assets 187 206
Tangible assets 8
Land and water areas 891 934
Buildings 443 441
Machinery and equipment 868 720
Other tangible assets 37 38
Advance payments and construction
in progress 23 209
Total tangible assets 2,262 2,342
Investments 9
Holdings in Group companies 3,984 4,648
Receivables from Group companies 723 666
Holdings in participating interest
companies 93 99
Receivables from participating
interest companies 6 6
Other shares and holdings 614 582
Other receivables 7 30
Total investments 5,427 6,031
Total non-current assets 7,876 8,579
Current assets
Inventories
Raw materials and consumables 203 229
Finished products and goods 80 77
Advance payments 31 38
Total inventories 314 344
Current receivables 10
Trade receivables 135 121
Receivables from Group companies 868 953
Receivables from participating
interest companies 11 11
Loan receivables – 2
Other receivables 82 79
Prepayments and accrued income 121 91
Total current receivables 1,217 1,257
Cash and cash equivalents 477 464
Total current assets 2,008 2,065
Total assets 9,884 10,644
Notes to the parent company financial statements
(All amounts in millions of euros unless otherwise stated.)
Accounting policies
The parent company financial statements are prepared in accordance
with Finnish Accounting Standards. The main differences in accounting
policies between the Group and the parent company relate to the
measurement of derivative financial instruments and biological assets
and the recognition of defined benefit obligations, revaluations and de-
ferred income taxes. See Notes to the consolidated financial state-
ments, Note 1.
1 Sales
Owing to the corporate structure of the Group, the sales of the parent
company has not been divided by segment and destination. See Notes
to the consolidated financial statements, Note 4.
2 Other operating income
Year ended 31 Dec.
EURm 2015 2014
Gains on sale of non-current assets 148 163
Rental income 16 17
Other 5 6
Total 169 186
3 Personnel expenses and other operating
costs and expenses
Year ended 31 Dec.
EURm 2015 2014
Wages and salaries
President and CEO, and members of
the Board of Directors 1) 4 3
Other wages and salaries 359 358
Total 363 361
1) See Notes to the consolidated financial statements, Note 7.
Year ended 31 Dec.
2015 2014
Average number of personnel 5,747 5,880
Owing to the corporate structure of the Group, the average number of personnel has
not been divided by segment. See Notes to the consolidated financial statements,
Note 4.
Year ended 31 Dec.
EURm 2015 2014
Auditor's fees 0.8 0.8
4 Depreciation and value adjustments
Year ended 31 Dec.
EURm 2015 2014
Depreciation according to plan
Intangible rights 2 2
Other capitalised expenditure 24 32
Buildings 33 35
Machinery and equipment 155 151
Other tangible assets 6 7
Total 220 227
Value adjustments
Intangible and tangible assets – 50
Total 220 277
5 Extraordinary items
Year ended 31 Dec.
EURm 2015 2014
Extraordinary income
Group contributions received 4 70
Extraordinary expenses
Group contributions paid –6 –9
Total extraordinary items –2 61
6 Income taxes
Year ended 31 Dec.
EURm 2015 2014
Income taxes for the financial period 61 86
Total 61 86
Deferred income taxes
Deferred income tax assets and liabilities of the parent company are
not recorded on the balance sheet. Deferred tax liability mainly com-
prises depreciation differences, for which the deferred tax liability at
31 December 2015 was EUR 122 million at 20% tax rate (113 mil-
lion). Deferred tax liability is not stated separately for revaluations. The
potential tax liability arising from the sale of revalued asset is EUR 117
million at 20% tax rate (124 million). Deferred tax asset mainly com-
prises provisions, for which the deferred tax asset at 31 December
2015 was EUR 12 million at 20% tax rate (14 million).