UPM Annual Report 2016

112-113 / 176

ACCOUNTS
UPM Annual Report 2016 UPM Annual Report 2016 112 113
In brief Strategy Businesses Stakeholders Governance Accounts
CONTENTS
EURm, OR AS INDICATED
UPM
BIOREFINING
UPM
ENERGY
UPM
RAFLATAC
UPM
SPECIALTY
PAPERS
UPM
PAPER
ENA
UPM
PLYWOOD
OTHER
OPERATIONS
ELIMINATIONS
AND RECONCI-
LIATIONS 2) GROUP
External sales 1,663 170 1,437 1,067 4,797 424 275 –22 9,812
Internal sales 542 187 – 206 21 20 11 –987 –
Total sales 2,206 357 1,437 1,273 4,818 444 285 –1,009 9,812
Comparable EBIT 406 116 133 123 280 58 14 12 1,143
Items affecting comparability in
operating profit – – – – –57 – 1 48 –7
Operating profit 406 116 134 123 223 58 15 60 1,135
Finance costs, net –56
Income taxes –200
Profit for the period 880
Operating assets 1) 3,586 2,283 666 1,121 2,287 304 1,691 –326 11,612
Deferred tax assets 446
Other non-operating assets 132
Other financial assets 1,721
Total assets 13,911
Operating liabilities 1) 245 34 165 137 505 43 179 –295 1,013
Deferred tax liabilities 457
Other liabilities 978
Other financial liabilities 3,226
Total liabilities 5,673
Other items
Change in fair value of forest
assets and wood harvested 29 – – – – – 59 – 88
Share of results of associates and
joint ventures 2 –1 – – 2 – 3 – 5
Depreciation and amortisation –171 –9 –33 –91 –164 –22 –13 1 –503
Impairment charges –1 – – – –49 – – 10 –41
Capital employed, 31 December 3,341 2,249 501 984 1,782 261 1,512 27 10,657
Average capital employed 3,231 2,340 524 1,012 1,964 259 1,541 –36 10,833
Capital expenditure 188 1 19 15 49 45 9 –1 325
Capital expenditure, excluding
acquisitions and shares 188 1 19 15 49 45 9 –1 325
Comparable ROCE, % 12.6 5.0 25.5 12.1 14.3 22.6 0.9 – 10.6
Personnel, 31 December 2,630 71 3,062 1,984 8,664 2,469 442 –12 19,310
1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings,
investments in associates and joint-ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received.
2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the consolidation of MPI as a joint operation.
In addition the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments are included in reconciliations.
In 2016, UPM has relabeled the previously referenced “excluding special items” non-GAAP financial measures with “comparable” performance
measures as published in » UPM’s stock exchange release on 14 April 2016.
» Refer Note 10.2, Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated
income statement and balance sheet prepared in accordance with IFRS.
EURm, OR AS INDICATED
UPM
BIOREFINING
UPM
ENERGY
UPM
RAFLATAC
UPM
SPECIALTY
PAPERS
UPM
PAPER
ENA
UPM
PLYWOOD
OTHER
OPERATIONS
ELIMINATIONS
AND RECONCI-
LIATIONS 2) GROUP
External sales 1,668 237 1,409 962 5,036 418 403 5 10,138
Internal sales 604 178 – 206 20 21 3 –1,032 –
Total sales 2,272 415 1,409 1,168 5,056 439 406 –1,027 10,138
Comparable EBIT 467 181 102 55 24 55 38 –6 916
Items affecting comparability in
operating profit –1 –26 –3 – 8 –2 268 –18 226
Operating profit 466 155 99 55 32 53 306 –24 1,142
Finance costs, net –67
Income taxes –159
Profit for the period 916
Operating assets 1) 3,384 2,425 697 1,200 2,637 284 1,720 –218 12,129
Deferred tax assets 466
Other non-operating assets 200
Other financial assets 1,398
Total assets 14,193
Operating liabilities 1) 197 12 140 141 435 31 145 –164 937
Deferred tax liabilities 456
Other liabilities 935
Other financial liabilities 3,921
Total liabilities 6,249
Other items
Change in fair value of forest
assets and wood harvested 21 – – – – – 331 – 352
Share of results of associates and
joint ventures 1 – – – 1 – 1 – 3
Depreciation and amortisation –169 –11 –35 –86 –190 –23 –13 3 –524
Impairment charges – – – – – – – – –
Capital employed, 31 December 3,187 2,413 557 1,059 2,202 253 1,575 –236 11,010
Average capital employed 3,191 2,716 581 1,012 2,289 263 1,483 –558 10,977
Capital expenditure 161 35 22 211 57 23 11 – 520
Capital expenditure, excluding
acquisitions and shares 159 3 22 211 57 23 11 – 486
Comparable ROCE, % 14.6 6.7 17.6 5.4 1.0 20.9 2.6 – 8.3
Personnel, 31 December 2,593 73 2,894 1,738 9,472 2,469 443 –104 19,578
1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, forest assets, energy shareholdings,
investments in associates and joint-ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received.
2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the consolidation of MPI as a joint operation.
In addition the changes in fair value of unrealised cash flow and commodity hedges that are not allocated to segments are included in reconciliations.
In 2016, UPM has relabeled the previously referenced “excluding special items” non-GAAP financial measures with “comparable” performance
measures as published in » UPM’s stock exchange release on 14 April 2016.
» Refer Note 10.2, Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated
income statement and balance sheet prepared in accordance with IFRS.
Business area information for the year ended 31 December 2016 Business area information for the year ended 31 December 2015