2008-12-12 08:01:00 CET
2008-12-12 08:01:02 CET
REGULATED INFORMATION
UPM-Kymmene - Company Announcement
Historical financial information for UPM's new business structure
UPM-Kymmene Corporation Stock Exchange Release 12 December 2008 at 09:00
As of 1 December 2008, UPM has been applying its new business structure.
The company consists of three Business Groups, which are Energy and pulp,
Paper, and Engineered materials. Under the new business structure, UPM will
report financial information for the following segments: Energy, Pulp,
Forest and timber, Paper, Label, Plywood, and Other operations. The
following historical information includes also current capacities for
the Energy, Pulp and Paper segments.
HISTORICAL FINANCIAL INFORMATION FOR Q1/2007 - Q3/2008
The following tables set out the sales, EBITDA, and operating profit of the
Group and the reporting segments in the quarters from 1 January 2007 to
30 September 2008.
The Group
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 2,358 2,378 2,410 2,512 2,467 2,537 2,519 10,035
EBITDA, EUR million 1) 378 313 337 351 366 411 418 1,546
% of sales 16.0 13.2 14.0 14.0 14.8 16.2 16.6 15.4
Share of results of 35 21 22 2 14 6 21 43
associated companies
and joint ventures,
EUR million
Depreciation, -462 -199 -199 -236 -206 -567 -215 -1,224
amortisation and
impairment charges,
EUR million
Operating profit, -40 157 193 142 195 -75 221 483
EUR million
% of sales -1.7 6.6 8.0 5.7 7.9 -3.0 8.8 4.8
Special items, EUR -256 2 5 -52 - -300 - -352
million 2)
Operating profit 216 155 188 194 195 225 221 835
excl. special items,
EUR million
% of sales 9.2 6.5 7.8 7.7 7.9 8.9 8.8 8.3
1) EBITDA is operating profit before depreciation, amortisation and impairment
charges, excluding the change in value of biological assets and wood harvested,
excluding the share of results of associated companies and joint venture, and
special items.
2) Detailed information under the segments.
Energy
The Energy segment includes UPM's hydropower plants and shares in energy
companies, mainly in the associated company Pohjolan Voima Oy, and in Kemijoki
Oy. Combined heat and power (CHP) plants operating on paper mill sites are
included in the Paper segment.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 129 103 105 112 89 81 97 379
EBITDA, EUR million 58 34 39 43 24 20 31 118
% of sales 45.0 33.0 37.1 38.4 27.0 24.7 32.0 31.1
Share of results of -8 -2 -5 -4 -6 -8 1 -17
associated companies
and joint ventures,
EUR million
Depreciation, -1 -1 -1 -1 -1 -1 -3 -6
amortisation and
impairment charges,
EUR million
Operating profit, 49 31 33 38 17 11 29 95
EUR million
% of sales 38.0 30.1 31.4 33.9 19.1 13.6 29.9 25.1
Special items, EUR - - - - - - - -
million
Operating profit 49 31 33 38 17 11 29 95
excl. special
items, EUR million
% of sales 38.0 30.1 31.4 33.9 19.1 13.6 29.9 25.1
Power generation capacity of own power plants and through shareholdings
Nominal MW
Own hydropower 174
Hydro (through 493
shareholdings)
Nuclear (through 541
shareholdings)
Condensing (through 418
shareholdings)
Total in Energy segment 1,626
CHP in Paper segment 913
Total UPM 2,539
Pulp
The Pulp segment includes the Group's pulp mills and shares in the associated
company Oy Metsä-Botnia Ab.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 228 247 269 187 208 208 205 808
EBITDA, EUR million 38 35 57 19 50 57 62 188
% of sales 16.7 14.2 21.2 10.2 24.0 27.4 30.2 23.3
Share of results of 44 20 26 6 19 12 21 58
associated companies
and joint ventures,
EUR million
Depreciation, -22 -17 -16 -16 -13 -58 -14 -101
amortisation and
impairment charges,
EUR million
Operating profit, 60 38 67 9 56 11 69 145
EUR million
% of sales 26.3 15.4 24.9 4.8 26.9 5.3 33.7 17.9
Special items, EUR - - - - - -43 - -43
million 2)
Operating profit 60 38 67 9 56 54 69 188
excl. special items,
EUR million
% of sales 26.3 15.4 24.9 4.8 26.9 26.0 33.7 23.3
2) Special items in the second quarter of 2007 include a goodwill impairment
charge of EUR 43 million.
Pulp production capacity
1,000 t/a
Kaukas 740
Pietarsaari 800
Kymi 540
Own production 2,080
capacity, total *)
Entitlement to 1,750
associated company's
capacity corresponding
to UPM's shareholding
Total 3,830
*) Excluding Tervasaari pulp mill (closure 31 December 2008).
Forest and timber
The Forest and timber segment includes forests, wood procurement, and sawmills
with an annual production capacity of 2.4 million cubic metres.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 475 518 508 537 490 514 498 2,039
EBITDA, EUR million -4 4 4 33 22 53 51 159
% of sales -0.8 0.8 0.8 6.1 4.5 10.3 10.2 7.8
Change in fair 4 20 28 47 21 14 -3 79
value of biological
assets and wood
harvested, EUR million
Share of results of - - 1 - - 1 - 1
associated companies
and joint ventures,
EUR million
Depreciation, -36 -7 -7 -26 -5 -7 -6 -44
amortisation and
impairment charges,
EUR million
Operating profit, -38 17 25 60 38 61 42 201
EUR million
% of sales -8.0 3.3 4.9 11.2 7.8 11.9 8.4 9.9
Special items, EUR -33 - -1 -13 - - - -13
million 2)
Operating profit -5 17 26 73 38 61 42 214
excl. special items,
EUR million
% of sales -1.1 3.3 5.1 13.6 7.8 11.9 8.4 10.5
2) Special items in the third quarter of 2008 include an impairment charge of
EUR 30 million related to fixed assets of the Finnish sawmills. In the fourth
quarter of 2007, special items include impairment charges of EUR 19 million
related mainly to Miramichi's forestry and sawmilling operations and a gain of
EUR 6 million on sale of estate assets.
Forests owned by UPM
1,000 hectares
Finland 918
United Kingdom 3
United States 79
Canada 17
Total 1,017
Paper
The Paper segment includes the Group's paper mills, producing magazine papers,
newsprint, fine papers, and speciality papers. This segment also includes the
CHP plants at paper mill sites.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 1,761 1,727 1,773 1,864 1,856 1,815 1,793 7,328
EBITDA, EUR million 271 216 209 221 240 248 230 939
% of sales 15.4 12.5 11.8 11.9 12.9 13.7 12.8 12.8
Share of results of - - - - - - - -
associated companies
and joint ventures,
EUR million
Depreciation, -388 -156 -159 -169 -167 -487 -172 -995
amortisation and
impairment charges,
EUR million
Operating profit, -114 60 51 -19 73 -249 58 -137
EUR million
% of sales -6.5 3.5 2.9 -1.0 3.9 -13.7 3.2 -1.9
Special items, EUR -227 - 1 -71 - -328 - -399
million 2)
Operating profit 113 60 50 52 73 79 58 262
excl. special items,
EUR million
% of sales 6.4 3.5 2.8 2.8 3.9 4.4 3.2 3.6
2) Special items in the third quarter of 2008 include a goodwill impairment
charge of EUR 230 million. Special items of fourth quarter of 2007 include
personnel expenses of EUR 44 million and other costs of EUR 36 million related
to the Miramichi paper mill, and an income of EUR 8 million related to other
restructuring measures. Special items for the second quarter of 2007 include a
goodwill impairment charge of EUR 307 million, an impairment charge of EUR 22
million and personnel costs of EUR 10 million related to the Miramichi paper
mill, and income of EUR 11 million related to impairment reversals.
Paper production capacity
1,000 t/a
Magazine papers *) 4,690
Newsprint *) 2,440
Fine papers 3,355
Label papers 525
Packaging papers 305
Total 11,315
*) Excluding Kajaani paper mill (closure 31 December 2008).
Label
The Label segment includes labelstock factories and slitting and distribution
terminals.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 239 245 242 242 245 255 256 998
EBITDA, EUR million 9 15 11 16 19 23 27 85
% of sales 3.8 6.1 4.5 6.6 7.8 9.0 10.5 8.5
Share of results of - - - - - - - -
associated companies
and joint ventures,
EUR million
Depreciation, -8 -7 -8 -8 -7 -7 -7 -29
amortisation and
impairment charges,
EUR million
Operating profit, 1 8 3 12 12 16 20 60
EUR million
% of sales 0.4 3.3 1.2 5.0 4.9 6.3 7.8 6.0
Special items, EUR - - - 4 - - - 4
million 2)
Operating profit 1 8 3 8 12 16 20 56
excl. special items,
EUR million
% of sales 0.4 3.3 1.2 3.3 4.9 6.3 7.8 5.6
2) Special items in the fourth quarter of 2007 include an income of EUR 4
million related to restructuring measures.
Plywood
The Plywood segment includes plywood mills. The segment's annual production
capacity is 1.1 million cubic metres.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 121 150 157 154 126 150 161 591
EBITDA, EUR million 3 22 26 20 8 20 23 71
% of sales 2.5 14.7 16.6 13.0 6.3 13.3 14.3 12.0
Share of results of - - - - - - - -
associated companies
and joint ventures,
EUR million
Depreciation, -5 -6 -5 -5 -5 -5 -6 -21
amortisation and
impairment charges,
EUR million
Operating profit, -2 19 21 15 3 15 17 50
EUR million
% of sales -1.7 12.7 13.4 9.7 2.4 10.0 10.6 8.5
Special items, EUR - 3 - - - - - -
million 2)
Operating profit -2 16 21 15 3 15 17 50
excl. special items,
EUR million
% of sales -1.7 10.7 13.4 9.7 2.4 10.0 10.6 8.5
2) Special items in the second quarter of 2008 include reversals of provisions
related to the disposed Kuopio plywood mill.
Other operations
Other operations include development units (the wood plastic composite unit
ProFi, RFID tags, and biofuels) and corporate administration.
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Sales, EUR million 52 66 48 80 83 160 127 450
EBITDA, EUR million 3 -13 -9 -1 3 -10 -6 -14
% of sales 5.8 -19.7 -18.8 -1.3 3.6 -6.3 -4.7 -3.1
Share of results of -1 3 - - 1 1 -1 1
associated companies
and joint ventures,
EUR million
Depreciation, -2 -5 -3 -11 -8 -2 -7 -28
amortisation and
impairment charges,
EUR million
Operating profit, 4 -16 -7 27 -4 60 -14 69
EUR million
% of sales 7.7 -24.2 -14.6 33.8 -4.8 37.5 -11.0 15.3
Special items, EUR 4 -1 5 28 - 71 - 99
million 2)
Operating profit 0 -15 -12 -1 -4 -11 -14 -30
excl. special items,
EUR million
% of sales 0.0 -22.7 -25.0 -1.3 -4.8 -6.9 -11.0 -6.7
2) Special items for the first quarter of 2008 include adjustment to sales of
disposals in 2007. Other special items in 2008 relate to restructuring
measures. In the fourth quarter, special items include a capital gain of EUR 58
million on the sale of port operators Rauma Stevedoring and Botnia Shipping, a
compensation charge of E 12 million related to class-action lawsuits in the US,
and other impairment charges and restructuring costs of EUR 18 million. Special
items for the second quarter of 2007 include capital gains of EUR 42 million
related to the sale of UPM-Asunnot and EUR 29 million related to the sale of
Walki Wisa.
OTHER INFORMATION
The following table sets out the capital employed and the personnel information
of the reporting segments for the year 2007.
Capital Return on Personnel
employed, EUR capital 1)
million employed, %
31.12. average Q1-Q4/ 31.12. average
2007 2007 2007 2007 2007
Energy 975 994 9.6 26 28
Pulp 1,472 1,423 13.2 1,186 1,309
Forest and timber 1,774 1,679 12.7 3,510 3,628
Paper 6,865 7,317 3.6 14,538 15,145
Label 448 420 13.4 2,568 2,569
Plywood 299 300 16.7 3,945 4,063
Other operations 133 217 -14.2 579 1,504
Reconciliations -868 -984 - - -
Group total 11,098 11,366 7.4 26,352 28,246
1) Excluding special items.
THE GROUP'S KEY FIGURES BY SEGMENT
Sales by segment, EUR million
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/ Q1-Q4/
08 08 08 07 07 07 07 07
Energy 129 103 105 112 89 81 97 379
Pulp 228 247 269 187 208 208 205 808
Forest and timber 475 518 508 537 490 514 498 2,039
Paper 1,761 1,727 1,773 1,864 1,856 1,815 1,793 7,328
Label 239 245 242 242 245 255 256 998
Plywood 121 150 157 154 126 150 161 591
Other operations 52 66 48 80 83 160 127 450
Internal sales 1) -647 -678 -692 -664 -630 -646 -618 -2,558
Group sales, total 2,358 2,378 2,410 2,512 2,467 2,537 2,519 10,035
1) Internal sales, EUR million
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/ 08 08 08 07 07 07 07 07
Energy 84 83 90 87 79 73 81 320
Pulp 211 229 247 179 198 199 197 773
Forest and timber 278 278 275 284 248 237 249 1,018
Paper 62 70 69 65 59 59 64 247
Label 1 1 1 - - 1 - 1
Plywood 10 11 10 11 8 9 8 36
Other operations 1 6 - 38 38 68 19 163
Internal sales, total 647 678 692 664 630 646 618 2,558
EBITDA, EUR million
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Energy 58 34 39 43 24 20 31 118
Pulp 38 35 57 19 50 57 62 188
Forest and timber -4 4 4 33 22 53 51 159
Paper 271 216 209 221 240 248 230 939
Label 9 15 11 16 19 23 27 85
Plywood 3 22 26 20 8 20 23 71
Other operations 3 -13 -9 -1 3 -10 -6 -14
Group EBITDA, total 378 313 337 351 366 411 418 1,546
Operating profit, EUR million
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Energy 49 31 33 38 17 11 29 95
Pulp 60 38 67 9 56 11 69 145
Forest and timber -38 17 25 60 38 61 42 201
Paper -114 60 51 -19 73 -249 58 -137
Label 1 8 3 12 12 16 20 60
Plywood -2 19 21 15 3 15 17 50
Other operations 4 -16 -7 27 -4 60 -14 69
Group operating -40 157 193 142 195 -75 221 483
profit, total
Operating profit, excluding special items, EUR million
Q3/ Q2/ Q1/ Q4/ Q3/ Q2/ Q1/Q1-Q4/
08 08 08 07 07 07 07 07
Energy 49 31 33 38 17 11 29 95
Pulp 60 38 67 9 56 54 69 188
Forest and timber -5 17 26 73 38 61 42 214
Paper 113 60 50 52 73 79 58 262
Label 1 8 3 8 12 16 20 56
Plywood -2 16 21 15 3 15 17 50
Other operations 0 -15 -12 -1 -4 -11 -14 -30
Group operating 216 155 188 194 195 225 221 835
profit, excluding
special items, total
For further information, please contact:
Mr Olavi Kauppila, Senior Vice President, Investor Relations,
tel. +358 204 15 0658
Mr Jyrki Salo, Executive Vice President and CFO, tel. +358 204 15 0011
UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
communications@upm-kymmene.com
UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications
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