UPM annual report 2015

UPM Annual Report 2015

143

144

contents

accounts

IN BRIEF

STRATEGY

BUSINESSES

STAKEHOLDERS

GOVERNANCE

ACCOUNTS

Calculation of key indicators

Formulae for calculation of financial

indicators

Return on equity, %:

Profit before tax – income taxes

x 100

Total equity (average)

Return on capital employed, %:

Profit before tax + interest expenses and

other financial expenses

x 100

Total equity + interest-bearing liabilities

(average)

Equity to assets ratio, %:

Total equity

x 100

Balance sheet total – advances received

Net interest-bearing liabilities:

Interest-bearing liabilities – interest-bearing assets

Gearing ratio, %:

Net interest-bearing liabilities

x 100

Total equity

EBITDA 2012-2015:

Operating profit + depreciation + impairment charges

+/– change in fair value of biological assets and

wood harvested

+/– change in fair value of unrealised cash flow and

commodity hedges

+/– share of results of associated companies and joint

ventures

+/– special items

EBITDA 2006–2011:

Operating profit + depreciation + impairment charges

+/– change in fair value of biological assets and

wood harvested

+/– share of results of associated companies and joint

ventures

+/– special items

Return on capital employed (ROCE) for the

segments (operating capital), %:

Operating profit – special items

x 100

Non-current assets + inventories + trade

receivables – trade payables

(average)

Formulae for calculation of adjusted

share-related indicators

Earnings per share:

Profit for the period attributable to owners

of the parent company

Adjusted average number of shares during the period

excluding treasury shares

Equity per share:

Equity attributable to owners

of the parent company

Adjusted number of shares at end of period

Dividend per share:

Dividend distribution

Adjusted number of shares at end of period

Dividend to earnings ratio, %:

Dividend per share

x 100

Earnings per share

Effective dividend yield, %:

Adjusted dividend per share

x 100

Adjusted share price at 31.12.

P/E ratio:

Adjusted share price at 31.12.

Earnings per share

Market capitalisation:

Total number of shares x share price

at end of at period

Adjusted share price at end of period:

Share price at end of period

Share issue coefficient

Adjusted average share price:

Total value of shares traded

Adjusted number of shares traded during period

Operating cash flow per share:

Cash from operating activities

Adjusted average number of shares during the period

excluding treasury shares

Key exchange rates for the euro at end of period

31.12.2015 30.9.2015 30.6.2015 31.3.2015 31.12.2014 30.9.2014 30.6.2014 31.3.2014

USD

1.0887

1.1203

1.1189

1.0759

1.2141

1.2583

1.3658

1.3788

CAD

1.5116

1.5034

1.3839

1.3738

1.4063

1.4058

1.4589

1.5225

JPY

131.07

134.69

137.01

128.95

145.23

138.11

138.44

142.42

GBP

0.7340

0.7385

0.7114

0.7273

0.7789

0.7773

0.8015

0.8282

SEK

9.1895

9.4083

9.2150

9.2901

9.3930

9.1465

9.1762

8.9483

Auditor’s report

(Translation from the Finnish Original)

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the financial statements and the

report of the Board of Directors. The procedures selected depend on

the auditor’s judgment, including the assessment of the risks of material

misstatement, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the enti-

ty’s preparation of financial statements and report of the Board of

Directors that give a true and fair view in order to design audit proce-

dures that are appropriate in the circumstances, but not for the purpose

of expressing an opinion on the effectiveness of the company’s internal

control. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of accounting esti-

mates made by management, as well as evaluating the overall presen-

tation of the financial statements and the report of the Board of Direc-

tors.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

Opinion on the Consolidated Financial Statements

In our opinion, the consolidated financial statements give a true and

fair view of the financial position, financial performance, and cash

flows of the group in accordance with International Financial Reporting

Standards (IFRS) as adopted by the EU.

Opinion on the Company’s Financial Statements and the

Report of the Board of Directors

In our opinion, the financial statements and the report of the Board of

Directors give a true and fair view of both the consolidated and the

parent company’s financial performance and financial position in

accordance with the laws and regulations governing the preparation

of the financial statements and the report of the Board of Directors in

Finland. The information in the report of the Board of Directors is

consistent with the information in the financial statements.

Other Opinions

We support that the financial statements and the consolidated financial

statements should be adopted. The proposal by the Board of Directors

regarding the use of the profit shown in the balance sheet is in compli-

ance with the Limited Liability Companies Act. We support that the

Members of the Board of Directors and the Managing Director of the

parent company should be discharged from liability for the financial

period audited by us.

To the Annual General Meeting of UPM-Kymmene Corporation

We have audited the accounting records, the financial statements, the

report of the Board of Directors and the administration of UPM-

Kymmene Corporation for the year ended 31 December, 2015. The

financial statements comprise the consolidated statement of financial

position, income statement, statement of comprehensive income, state-

ment of changes in equity and statement of cash flows, and notes to

the consolidated financial statements, as well as the parent company’s

balance sheet, income statement, cash flow statement and notes to the

financial statements.

Responsibility of the Board of Directors and

the Managing Director

The Board of Directors and the Managing Director are responsible for

the preparation of consolidated financial statements that give a true

and fair view in accordance with International Financial Reporting

Standards (IFRS) as adopted by the EU, as well as for the preparation

of financial statements and the report of the Board of Directors that

give a true and fair view in accordance with the laws and regulations

governing the preparation of the financial statements and the report of

the Board of Directors in Finland. The Board of Directors is responsible

for the appropriate arrangement of the control of the company’s ac-

counts and finances, and the Managing Director shall see to it that the

accounts of the company are in compliance with the law and that its

financial affairs have been arranged in a reliable manner.

Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements,

on the consolidated financial statements and on the report of the Board

of Directors based on our audit. The Auditing Act requires that we

comply with the requirements of professional ethics. We conducted our

audit in accordance with good auditing practice in Finland. Good

auditing practice requires that we plan and perform the audit to obtain

reasonable assurance about whether the financial statements and the

report of the Board of Directors are free from material misstatement,

and whether the members of the Board of Directors of the parent com-

pany or the Managing Director are guilty of an act or negligence

which may result in liability in damages towards the company or

whether they have violated the Limited Liability Companies Act or the

articles of association of the company.

Helsinki 18 February 2016

PricewaterhouseCoopers Oy

Authorised Public Accountants

Merja Lindh

Authorised Public Accountant