UPM Annual Report 2016

164-165 / 176

ACCOUNTS
UPM Annual Report 2016 UPM Annual Report 2016 164 165
In brief Strategy Businesses Stakeholders Governance
CONTENTS
Accounts
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Earnings per share (EPS), EUR 1.65 1.72 0.96 0.63 –2.14 0.88 1.08 0.33 –0.35 0.16
Comparable EPS, EUR 1.65 1.38 1.20 0.91 0.74 0.93 0.99 0.11 0.42 1.00
Equity per share, EUR 15.43 14.89 14.02 14.08 14.18 14.22 13.64 12.67 11.74 13.21
Dividend per share, EUR 1) 0.95 0.75 0.70 0.60 0.60 0.60 0.55 0.45 0.40 0.75
Dividend to earnings ratio, % 57.6 43.6 72.9 95.2 neg. 68.2 50.9 136.4 neg. 468.8
Dividend to operating cash flow, % 30 34 30 43 30 30 29 19 33 44
Effective dividend yield, % 4.1 4.4 5.1 4.9 6.8 7.1 4.2 5.4 4.4 5.4
P/E ratio 14.1 10.0 14.2 19.5 neg. 9.7 12.2 25.2 neg. 86.4
Operating cash flow per share, EUR 3.16 2.22 2.33 1.39 1.98 1.99 1.89 2.42 1.21 1.66
Dividend distribution, EURm 1) 507 400 373 317 317 315 286 234 208 384
Share price at 31 Dec., EUR 23.34 17.23 13.62 12.28 8.81 8.51 13.22 8.32 9.00 13.82
Lowest quotation, EUR 13.71 13.19 10.07 7.30 7.82 7.34 7.37 4.33 8.15 13.01
Highest quotation, EUR 23.41 19.26 13.99 13.02 10.98 15.73 13.57 9.78 13.87 20.59
Average quotation for the period, EUR 17.51 16.37 12.26 9.42 9.21 11.17 10.43 7.06 11.32 17.30
Market capitalisation, EURm 12,452 9,192 7,266 6,497 4,633 4,466 6,874 4,326 4,680 7,084
Shares traded, EURm 2) 6,749 7,469 6,233 5,308 5,534 8,835 8,243 5,691 10,549 16,472
Shares traded (1,000) 385,355 456,168 508,318 563,382 600,968 790,967 790,490 805,904 932,136 952,300
Shares traded, % of all shares 72.2 85.5 95.6 106.7 114.4 151.5 152.0 155.0 180.1 182.1
Number of shares, average (1,000) 533,505 533,505 531,574 527,818 525,434 521,965 519,970 519,955 517,545 522,867
Number of shares at the end of period (1,000) 533,736 533,736 533,736 529,302 526,124 524,973 519,970 519,970 519,970 512,569
of which treasury shares (1,000) 231 231 231 231 231 211 – – 16 –
1) Proposal
2) Trading on the Nasdaq Helsinki Main Market. Treasury shares bought by the company are included in shares traded.
SHARE RELATED INDICATORS DEFINITION
Earnings per share (EPS), EUR Profit for the period attributable to owners of the parent company divided by adjusted average number
of shares during the period excluding treasury shares.
Comparable EPS, EUR Earnings per share calculated in accordance with IFRS excluding items affecting comparability and their
tax impact.
Equity per share, EUR Equity attributable to the owners of the parent company in relation to the adjusted number of shares
at the end of period.
Dividend per share, EUR Dividend distribution divided by adjusted number of shares at the end of period.
Dividend to earnings ratio, % Dividend per share as a percentage of earnings per share.
Dividend to operating cash flow, % Dividend per share as a percentage of operating cash flow per share.
Effective dividend yield, % Adjusted dividend per share as a percentage of adjusted share price at 31.12.
P/E ratio Adjusted share price in relation to the earnings per share.
Operating cash flow per share, EUR Operating cash flow divided by adjusted average number of shares during the period excluding treasury
shares.
Market capitalisation Total number of shares (excluding those held as treasury shares) multiplied by the share price at the end
of period.
Adjusted share price at the end of period Share price at the end of period in relation to share issue coefficient.
Adjusted average share price Total value of shares traded in relation to adjusted number of shares traded during the period.
Adjusted share-related indicators Financial information 2007–2016
EURm, OR AS INDICATED 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Income statement
Sales 9,812 10,138 9,868 10,054 10,492 10,068 8,924 7,719 9,461 10,035
Comparable EBITDA 1) 1,560 1,350 1,306 1,161 1,325 1,383 1,343 1,062 1,206 1,546
% of sales 15.9 13.3 13.2 11.5 12.6 13.7 15.0 13.8 12.7 15.4
Operating profit 1,135 1,142 674 548 1,318 459 755 135 24 483
% of sales 11.6 11.3 6.8 5.5 –12.6 4.6 8.5 1.7 0.3 4.8
Comparable EBIT 1,143 916 866 683 556 682 731 270 513 835
% of sales 11.6 9.0 8.8 6.8 5.3 6.8 8.2 3.5 5.4 8.3
Profit before tax 1,080 1,075 667 475 –1,271 417 635 187 –201 292
% of sales 11.0 10.6 6.8 4.7 –12.1 4.1 7.1 2.4 –2.1 2.9
Comparable profit before tax 1,089 849 793 610 471 573 611 107 282 644
% of sales 11.1 8.4 8.0 6.1 4.5 5.7 6.8 1.4 3.0 6.4
Profit for the period 880 916 512 335 –1,122 457 561 169 –180 81
% of sales 9.0 9.0 5.2 3.3 –10.7 4.5 6.3 2.2 –1.9 0.8
Comparable profit for the period 879 734 638 479 390 487 516 58 218 504
% of sales 9.0 7.2 6.5 4.8 3.7 4.8 5.8 0.8 2.3 5.0
Exports from Finland and foreign operations 8,930 9,268 8,923 9,089 9,565 9,252 8,139 7,054 8,515 9,170
Exports from Finland 4,918 4,714 4,340 4,118 4,248 4,313 3,882 3,442 4,371 4,546
Balance sheet
Non-current assets 9,715 10,259 10,269 10,487 11,066 11,412 10,557 10,581 10,375 10,639
Inventories 1,346 1,376 1,356 1,327 1,388 1,429 1,299 1,112 1,354 1,342
Other current assets 2,850 2,558 2,570 2,785 2,489 2,548 1,956 1,912 2,052 1,972
Total assets 13,911 14,193 14,195 14,599 14,943 15,389 13,812 13,605 13,781 13,953
Total equity 8,237 7,944 7,480 7,455 7,461 7,477 7,109 6,602 6,120 6,783
Non-current liabilities 3,364 4,328 4,717 5,019 5,430 5,320 4,922 5,432 5,816 4,753
Current liabilities 2,309 1,921 1,998 2,125 2,052 2,588 1,781 1,571 1,828 2,417
Total equity and liabilities 13,911 14,193 14,195 14,599 14,943 15,389 13,812 13,605 13,781 13,953
Capital employed at year end 10,657 11,010 10,944 11,583 11,603 12,110 11,087 11,066 11,193 11,098
Capital expenditure 325 520 411 362 357 1,179 257 913 551 708
% of sales 3.3 5.1 4.2 3.6 3.4 11.7 2.9 11.8 5.8 7.1
Capital expenditure excluding acquisitions
and shares 325 486 375 329 347 340 252 229 532 683
% of sales 3.3 4.8 3.8 3.3 3.3 3.4 2.8 3.0 5.6 6.8
Cash flow and net debt
Operating cash flow 1,686 1,185 1,241 735 1,040 1,041 982 1,259 628 867
Free cash flow 1,424 750 994 438 968 910 787 1,045 96 442
Net debt 1,131 2,100 2,401 3,040 3,210 3,592 3,286 3,730 4,321 3,973
Key figures
Return on capital employed (ROCE), % 10.5 10.3 6.5 4.8 neg. 4.4 6.6 3.2 0.2 4.3
Comparable ROCE, % 10.6 8.3 7.6 6.0 4.2 5.2 6.4 2.5 4.6 7.4
Return on equity (ROE), % 10.9 11.9 6.9 4.5 neg. 6.3 8.2 2.8 neg. 1.2
Comparable ROE, % 10.9 9.5 8.5 6.4 4.2 6.7 7.5 1.0 3.4 7.4
Gearing ratio, % 14 26 32 41 43 48 46 56 71 59
Net debt to EBITDA 0.73 1.56 1.84 2.62 2.42 2.60 2.45 3.51 3.58 2.57
Equity to assets ratio, % 59.4 56.1 52.7 51.1 50.0 48.6 51.5 48.6 44.5 48.8
Personnel
Personnel at year end 19,310 19,578 20,414 20,950 22,180 23,909 21,869 23,213 24,983 26,352
Deliveries
Pulp (1,000 t) 3,419 3,224 3,287 3,163 3,128 2,992 2,919 1,759 1,982 1,927
Electricity (GWh) 8,782 8,966 8,721 8,925 9,486 8,911 9,426 8,865 10,167 10,349
Papers, total (1,000 t) 9,613 9,771 10,028 10,288 10,871 10,615 9,914 9,021 10,641 11,389
Plywood (1,000 m3) 764 740 731 737 679 656 638 567 806 945
Sawn timber (1,000 m3) 1,751 1,731 1,609 1,661 1,696 1,683 1,729 1,497 2,132 2,325
1) EBITDA 2007–2011 includes change in fair value of unrealised cash flow and commodity hedges.
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. Corresponding 2015 and 2014 measures have been adjusted accordingly.
» Refer Note 10.2 Alternative performance measures, for definitions of key figures.
The definitions of share related indicators are described below: