UPM Annual Report 2016

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ACCOUNTS
UPM Annual Report 2016 UPM Annual Report 2016 152 153
In brief Strategy Businesses Stakeholders Governance Accounts
CONTENTS
EURm 2016 2015
Cash flow from operating activities
Profit before closing entries and tax 379 652
Financial income and expenses –6 –168
Adjustments to operating profit 1) 42 66
Change in working capital 2) –219 108
Interest received 24 12
Interest paid –52 –60
Dividends received 81 182
Other financial items 9 –25
Income taxes paid –17 –90
Operating cash flow 241 677
Cash flow from investing activities
Investments in tangible and intangible assets –137 –180
Acquisition of shareholdings – –69
Proceeds from sale of intangible and tangible assets 130 135
Proceeds from disposal of shareholdings 4 818
Change in other non-current receivables 408 –56
Investing cash flow 405 648
Cash flow from financing activities
Payments of non-current liabilities –505 –386
Change in current liabilities 693 –614
Dividends paid –400 –373
Group contributions, net –2 61
Financing cash flow –214 –1,312
Change in cash and cash equivalents 431 13
Cash and cash equivalents at the beginning of period 477 464
Change in cash and cash equivalents 431 13
Cash and cash equivalents at the end of period 908 477
1) Adjustments to operating profit
EURm 2016 2015
Depreciation, amortisation and impairment charges 172 220
Capital gains on sale of non-current assets, net –124 –146
Change in provisions –7 –8
Total 42 66
2) Change in working capital
EURm 2016 2015
Inventories 21 30
Current receivables –361 27
Current non-interest-bearing liabilities 121 51
Total –219 108
Cash flow statement
Accounting policies
The financial statements of the parent company are prepared in
accordance with Finnish Accounting Standards, FAS.
The main differences in accounting policies of the group and the
parent company relate to the measurement of forest assets and finan-
cial derivatives and recognition of defined benefit obligations and
deferred income taxes.
EURm 2016 2015
UPM Biorefining 1,560 1,555
UPM Energy 135 376
UPM Specialty Papers 240 488
UPM Paper ENA 668 1,490
Other operations and eliminations 208 –611
Total 2,811 3,298
EURm 2016 2015
Finland 2,697 685
Other EU countries 27 2,330
Other countries 87 283
Total 2,811 3,298
2. Other operating income
EURm 2016 2015
Gains on sale of non-current assets 133 148
Rental income 15 16
Other 4 5
Total 152 169
3. Materials and services
EURm 2016 2015
Raw materials and consumables 1,888 1,992
Change in inventories 9 26
Delivery costs and other external charges 4 38
Total 1,901 2,056
Notes to the parent company financial statements
2016 2015
Total on average 4,277 5,747
5. Depreciation, amortisation and
impairment charges
EURm 2016 2015
Intangible rights 3 2
Other intangible assets 19 24
Buildings 26 33
Machinery and equipment 119 155
Other tangible assets 6 6
Total 172 220
6. Other operating expenses
EURm 2016 2015
Rents and lease expenses 17 24
Losses on sale of non-current assets 4 1
Maintenance expenses 99 135
Other operating expenses 1) 58 108
Total 178 268
1) The research and development costs in operating expenses were EUR 24
million (27 million) and auditor’s fee EUR 0.8 million (0.8 million).
The financial statements are presented in millions of euros and
rounded and therefore the sum of individual figures might deviate
from the presented total figure.
1. Sales
Sales by business area
Sales by destination Personnel
4. Personnel expenses
Salaries, fees and other personnel expenses
EURm 2016 2015
Salaries and fees to the President and CEO,
and members of the Board of Directors 1) 6 4
Other salaries and fees 273 359
Pension costs 47 64
Other indirect employee costs 17 18
Total 343 445
1) Refer Note 3.2 Key management personnel.