UPM Annual Report 2016

162-163 / 176

ACCOUNTS
UPM Annual Report 2016 UPM Annual Report 2016 162 163
In brief Strategy Businesses Stakeholders Governance Accounts
CONTENTS
sions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may
cause the parent company or the group to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the finan-
cial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events so that
the financial statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business activities within the group to
express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance
of the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and
other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Other reporting requirements
Other information
The Board of Directors and the Managing Director are responsible
for the other information. The other information comprises information
included in the report of the Board of Directors and in the Annual
Report, but does not include the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above and,
in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained
in the audit, or otherwise appears to be materially misstated. With
respect to the report of the Board of Directors, our responsibility also
includes considering whether the report of the Board of Directors has
been prepared in accordance with the applicable laws and
regulations.
In our opinion
• the information in the report of the Board of Directors is consistent
with the information in the financial statements
• the report of the Board of Directors has been prepared in accor-
dance with the applicable laws and regulations.
If, based on the work we have performed, we conclude that there
is a material misstatement of the other information, we are required
to report that fact. We have nothing to report in this regard.
Other opinions
We support the proposal that the financial statements are adopted.
The proposal by the Board of Directors regarding the distribution of
profits is in compliance 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.
Helsinki 17 February 2017
PricewaterhouseCoopers Oy
Authorised Public Accountants
Merja Lindh
Authorised Public Accountant (KHT)
Information on shares
Disclosures below form part of the Report of the Board of Directors.
2016 2015 2014 2013 2012
Number of shares 1 January 533,735,699 533,735,699 529,301,897 526,124,410 524,972,838
Options exercised – – 4,433,802 3,177,487 1,151,572
Number of shares at 31 December 533,735,699 533,735,699 533,735,699 529,301,897 526,124,410
NUMBER OF
SHARES HOLDING %
IImarinen Mutual Pension Insurance Company 7,314,789 1.37
Varma Mutual Pension Insurance Company 6,074,488 1.14
The State Pension Fund 4,630,000 0.87
The Local Government Pensions Institution 4,121,749 0.77
ELO Mutual Pension Insurance Company 4,070,000 0.76
The Society of Swedish Literature in Finland 3,745,780 0.70
Mandatum Life Insurance Company Limited 3,685,320 0.69
Swiss National Bank 3,520,442 0.66
Kymin Osakeyhtiön 100-vuotissäätiö 1,696,230 0.32
The Social Insurance Institution of Finland 1,603,690 0.30
Nominees & registered foreign owners 367,265,573 68.81
Others 126,007,638 23.61
Total 533,735,699 100.00
2016 2015 2014 2013 2012
Companies 2.2 2.3 2.8 3.2 4.3
Financial institutions and insurance companies 3.1 3.4 4.3 4.1 5.4
Public bodies 5.8 6.0 8.0 7.8 7.9
Non-profit organisations 4.8 5.0 5.3 5.7 6.2
Households 15.3 15.8 17.2 18.7 19.9
Non-Finnish nationals 68.8 67.5 62.4 60.5 56.3
Total 100.0 100.0 100.0 100.0 100.0
SIZE OF SHAREHOLDINGS
NUMBER OF
SHAREHOLDERS
% OF
SHAREHOLDERS
NUMBER OF
SHARES, MILLION % OF SHARES
1 – 100 21,516 25.45 1.2 0.2
101 – 1,000 46,256 54.72 19.1 3.6
1,001 – 10,000 15,432 18.25 42.3 7.9
10,001 – 100,000 1,204 1.42 28.8 5.4
100,001 – 131 0.15 82.0 15.4
Total 84,539 100.00 173.4 32.5
Nominee-registered 360.1 67.5
Not registered as book entry units 0.2 0.0
Total 533.7 100.0
Under the provisions of the Securities Markets Act, changes in holdings must be disclosed when the holding reaches, exceeds or falls below 5,
10, 15, 20, 25, 30, 50 or 66.7 (2/3) per cent of the voting rights or the number of shares of the company. The stock exchange releases on
notifications of changes in holdings pursuant to Chapter 9, Section 5 of the Securities Market Act are available in UPM website:
Changes in number of shares
Major shareholders at 31 December 2016
Shareholders by category at 31 December, %
Share distribution at 31 December 2016