UPM Annual Report 2016

In brief

Strategy

Businesses

Stakeholders

Governance

Accounts

Sales 2016 EUR 9,812 million

Comparable EBIT 2016 EUR 1,143 million

Capital employed 31 Dec 2016 EUR 10,657 million

Other operations 1%

Other operations 3%

Other operations 14%

UPM Plywood 5%

UPM Plywood 4%

UPM Biorefining 20%

UPM Biorefining 31%

UPM Plywood 3%

UPM Biorefining 36%

UPM Paper ENA 25%

UPM integrates bio and forest industries and builds a sustainable future across six business areas. Our products are made of renewable raw materials and are recyclable.

UPM Energy 3%

UPM Paper ENA 17%

UPM Paper ENA 45%

UPM Raflatac 13%

UPM Specialty

UPM Specialty

Papers 11%

UPM Energy 21%

UPM Energy 10%

Papers 9%

UPM Specialty Papers 12%

UPM Raflatac 5%

UPM Raflatac 12%

Unconsolidated

Biofore Company

VALUES Trust and be trusted Achieve together Renew with courage

UPM BIOREFINING

UPM ENERGY

UPM RAFLATAC

UPM SPECIALTY PAPERS

UPM PAPER ENA

UPM PLYWOOD

OTHER OPERATIONS

UPM Biorefining consists of pulp, timber and biofuels businesses. UPM Pulp offers versatile range of sustainably produced pulp grades suitable for a wide range of end-uses such as tissue, spe­ cialty papers, graphic papers and board. UPM Timber offers certified sawn timber for construc­ tion and furniture, for example. UPM Biofuels produces wood- based renewable diesel that is suitable for all diesel engines.

UPM Energy creates value through cost competitive, low-emission electricity gener­ ation and through physical electricity and financial trading. UPM Energy is an active share­ holder in major Finnish electric- ity companies. UPM’s power generation capacity consists of hydropower, nuclear power and condensing power.

UPM Raflatac manufactures self-adhesive label materials for product and information labelling for label printers and brand owners in the food, personal care, pharmaceutical and retail segments, for example.

UPM Paper ENA is the world’s leading producer of graphic papers, offering an extensive product range for advertising, magazine and newspaper publishing as well as home and office uses. UPM Paper ENA has 15 efficient paper mills in Europe and the United States as well as a global sales network with excellent service.

UPM Plywood offers plywood and veneer products, mainly for construction, vehicle flooring and LNG shipbuilding as well as other manufacturing industries. With production facilities in Finland, Estonia and Russia, UPM Plywood is the leading supplier in demanding end-use segments.

Wood Sourcing and Forestry secures competitive wood and biomass for UPM businesses and manages UPM-owned and privately owned forests in North Europe. In addition, UPM offers a wide range of forestry services to forest owners and forest investors. UPM Biocomposites and UPM Biochemicals business units are also included in Other operations.

UPM Specialty Papers serves growing global markets with label papers and release liners, office papers in Asia and flexible packaging in Europe. With extensive distribution network and strong brands, UPM Specialty Papers is the market leader in labelling materials globally and in office paper in Asia Pacific region.

HIGH-END OFFICE PAPERS 4%

PULP 3%

TIMBER 2%

SELF-ADHESIVE LABELS 4%

LABEL PAPERS 4%

GRAPHIC PAPERS –4%

PLYWOOD, VENEER 3%

ELECTRICITY 1%

ANNUAL MARKET GROWTH

BIOFUELS STRONG GROWTH

CONTENTS

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UPM Annual Report 2016

UPM Annual Report 2016