2016-04-14 08:30:35 CEST
2016-04-14 08:30:35 CEST
REGULATED INFORMATION
UPM-Kymmene - Company Announcement
Alternative performance measures (APMs) used in UPM's financial reporting
UPM-Kymmene Corporation Stock Exchange Release 14 April 2016 at 9:30 EET Alternative performance measures (APMs) used in UPM's financial reporting New ESMA (European Securities and Markets Authority) guidelines on Alternative Performance Measures (APMs) *) are effective for the financial year 2016. Accordingly, UPM publishes the explanation of use, definitions as well as reconciliations of its APMs to IFRS financial statements. UPM presents APMs to reflect the underlying business performance and to enhance comparability from period to period. APMs should not be considered as a substitute for measures of performance in accordance with the IFRS. From Q1 2016, UPM relabels the previously referenced "excluding special items" non-GAAP financial measures with "Comparable" performance measures. Comparable performance measures exclude the income statement impacts of certain non- operational or non-cash valuation items affecting comparability. The items affecting comparability and APMs used by UPM are defined below: Items affecting comparability: Certain non-operational or non-cash valuation transactions with significant income statement impact are considered as items affecting comparability, if they arise from: · asset impairments · restructuring measures · asset sales · fair value changes of biological assets resulting from changes in valuation parameters or estimates or · changes in legislation or legal proceedings. In the UPM Biorefining, UPM Paper Asia and UPM Paper ENA the transaction (income or expense) is considered to be significant, if the impact is one cent (EUR 0.01) after tax per share or more. In other business areas the impact is considered to be significant if it exceeds EUR 1 million pre-tax. In addition, the changes in fair value of unrealised cash flow and commodity hedges are classified as items affecting comparability. Comparable EBITDA: Operating profit - depreciation - impairment charges - change in fair value of biological assets and wood harvested - share of results of associated companies and joint ventures - items affecting comparability. Definition of Comparable EBITDA is unchanged. Comparable EBIT: Operating profit - items affecting comparability in operating profit Comparable profit: Profit - Items affecting comparability Comparable ROE, %: Profit before tax - income taxes - items affecting comparability x 100 Total equity (average) Comparable ROCE, %: Profit before tax - interest expenses and other financial expenses - items affecting comparability x 100 Total equity + interest-bearing liabilities (average) Comparable EPS: Profit attributable to owners of the parent company - items affecting comparability______________________________________ Adjusted average number of shares during the period excluding treasury shares From Q1 2016, changes in fair value of unrealised cash flow and commodity hedges and significant fair value changes of biological assets resulting from changes in valuation parameters or estimates with related tax effects are excluded from Comparable EBIT and Comparable profit. Otherwise the definitions are unchanged from the previously reported "Operating profit, excluding special items" and "Profit for the period, excluding special items". Corresponding prior year measures have been revised accordingly. This change has an effect also on Comparable EPS, Comparable ROE and Comparable ROCE of prior years. Net interest-bearing liabilities: Interest-bearing liabilities - interest-bearing financial assets Interest-bearing financial assets include loan receivables, interest-bearing derivative financial instruments, cash and cash-equivalents and other interest- bearing receivables. Definition of Net interest-bearing liabilities remains unchanged. In addition to above described APMs, UPM reports a number of key figures that are not defined under IFRS. The definitions and names of these measures remain unchanged and are published in Annual Report 2015. The tables below present the reconciliation of APMs to the most comparable IFRS measures Items affecting comparability EURm Q4/15 Q3/15 Q2/15 Q1/15 2015 2014 ------------------------------------------------------------------------------- Impairment charges - -1 1 - - -137 Restructuring charges -2 4 -6 -1 -5 -86 Change in fair value of unrealised cash flow and commodity hedges -22 2 8 -6 -18 -19 Capital gains and losses on sale of non-current assets - 3 3 - 6 50 Fair value changes of biological assets resulting from changes in estimates - 265 - - 265 - Other non-operational items -3 - -19 - -22 - ------------------------------------------------------------------------------- Total items affecting comparability in operating profit -27 273 -13 -7 226 -192 ------------------------------------------------------------------------------- Gain related to the sale of Metsä-Fibre Oy shares in 2012 - - - - - 66 ------------------------------------------------------------------------------- Total items affecting comparability in financial items - - - - - 66 ------------------------------------------------------------------------------- Total items affecting comparability in taxes 5 -54 3 2 -44 - ------------------------------------------------------------------------------- Total items affecting comparability -22 219 -10 -5 182 -126 ------------------------------------------------------------------------------- Comparable EBITDA EURm Q4/15 Q3/15 Q2/15 Q1/15 2015 2014 ------------------------------------------------------------------------------- Operating profit (loss) 220 513 206 203 1,142 674 Less: Depreciation, amortisation and impairment charges( 1)) 132 131 130 131 524 521 Change in fair value of biological assets and wood harvested (1)) -16 -24 -31 -16 -87 -78 Share of results of associated companies and joint ventures - -2 -1 - -3 -3 Items affecting comparability in operating profit 27 -273 13 7 -226 192 ------------------------------------------------------------------------------- Comparable EBITDA 363 345 317 325 1,350 1,306 ------------------------------------------------------------------------------- % of sales 14.1 13.6 12.4 13.1 13.3 13.2 (1) )excluding items affecting comparability Comparable EBIT EURm Q4/15 Q3/15 Q2/15 Q1/15 2015 2014 ------------------------------------------------------------------------------- Operating profit (loss) 220 513 206 203 1,142 674 Less: Items affecting comparability in operating profit 27 -273 13 7 -226 192 ------------------------------------------------------------------------------- Comparable EBIT 247 240 219 210 916 866 ------------------------------------------------------------------------------- % of sales 9.6 9.5 8.6 8.4 9.0 8.8 Comparable profit (loss) before tax EURm Q4/15 Q3/15 Q2/15 Q1/15 2015 2014 ------------------------------------------------------------------------------- Profit (loss) before tax 214 498 182 181 1,075 667 Less: Items affecting comparability in operating profit 27 -273 13 7 -226 192 Items affecting comparability in financial items - - - - - -66 ------------------------------------------------------------------------------- Comparable profit (loss) before tax 241 225 195 188 849 793 ------------------------------------------------------------------------------- Less: Interest expenses and other financial expenses 13 12 20 12 57 67 ------------------------------------------------------------------------------- 254 237 215 200 906 860 Capital employed, average 11,079 11,080 11,059 11,025 10,977 11,264 ------------------------------------------------------------------------------- Comparable ROCE, % 9.2 8.6 7.8 7.3 8.3 7.6 ------------------------------------------------------------------------------- Comparable profit (loss) for the period EURm Q4/15 Q3/15 Q2/15 Q1/15 2015 2014 ------------------------------------------------------------------------------- Profit (loss) for the period 193 408 160 155 916 512 Less: Items affecting comparability, total 22 -219 10 5 -182 126 ------------------------------------------------------------------------------- Comparable profit (loss) for the period 215 189 170 160 734 638 ------------------------------------------------------------------------------- Average number of shares basic (1000) 533,505 533,505 533,505 533,505 533,505 533,505 ------------------------------------------------------------------------------- Comparable EPS, EUR 0.41 0.35 0.32 0.30 1.38 1.20 ------------------------------------------------------------------------------- Total equity, average 7,944 7,788 7,718 7,642 7,712 7,468 ------------------------------------------------------------------------------- Comparable ROE, % 10.8 9.7 8.8 8.4 9.5 8.5 ------------------------------------------------------------------------------- Net interest-bearing liabilities EURm Q4/15 Q3/15 Q2/15 Q1/15 2015 2014 ------------------------------------------------------------------------------- Non-current interest-bearing liabilities 2,797 2,742 2,844 2,952 2,797 3,058 Current interest-bearing liabilities 269 461 537 350 269 406 ------------------------------------------------------------------------------- Interest-bearing liabilities 3,066 3,203 3,381 3,302 3,066 3,464 ------------------------------------------------------------------------------- Non-current interest-bearing financial assets 318 325 313 362 318 321 Cash and cash equivalents 626 394 409 469 626 700 Other current interest-bearing financial assets 22 19 24 52 22 42 ------------------------------------------------------------------------------- Interest-bearing financial assets 966 738 746 883 966 1,063 ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- Net interest-bearing liabilities 2,100 2,465 2,635 2,419 2,100 2,401 ------------------------------------------------------------------------------- *) Alternative performance measure (APM) = financial measure other than financial measure defined or specified in IFRSs For further information please contact: Mika Mikkola, VP, UPM Investor relations tel. +358 40 595 3202 UPM-Kymmene Corporation Pirkko Harrela Executive Vice President, Stakeholder Relations UPM, Media Relations 9.00-16.00 EET tel. +358 40 588 3284 media@upm.com www.twitter.com/UPM_News www.facebook.com/UPMGlobal www.linkedin.com/company/upm-kymmene UPM Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 19,600 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com [HUG#2003458]
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