UPM Annual Report 2017

In brief In brief

Strategy

Businesses

Stakeholders

Governance

Accounts

UPM leads the forest-based bioindustry into a sustainable, innovation-driven, and exciting future across six business areas. We provide sustainable and safe solutions to the growing global consumer demand. Our products are made of renewable and biodegradable raw materials and are recyclable.

Sales 2017 EUR 10,010 million

Comparable EBIT 2017 EUR 1,292 million

Capital employed 31 Dec 2017 EUR 9,777 million

Biofore Company UPM BIOREFINING UPM ENERGY UPM RAFLATAC

Other operations 3%

Other operations 2%

Other operations 12% UPM Plywood 3%

UPM Plywood 4%

UPM Plywood 5%

UPM Biorefining 23%

UPM Biorefining 32%

UPM Paper ENA 18%

UPM Biorefining 45%

UPM Paper ENA 16%

UPM Energy 3%

UPM Paper ENA 42%

UPM Specialty Papers 12%

UPM Raflatac 14%

UPM Specialty

Papers 9%

UPM Raflatac 5%

UPM Raflatac 10%

UPM Energy 23%

UPM Specialty Papers 12%

UPM Energy 7%

Unconsolidated

UPM SPECIALTY PAPERS UPM Specialty Papers manufactures label papers, release liners, office papers and flexible packaging for labelling, packing, wrapping and printing.

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, specialty paper, graphic papers and board. UPM Timber offers certified sawn timber for construction, joinery and furniture, for example. UPM Biofuels produces wood- based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in bioplastics.

UPM Energy creates value through cost competitive, low- emission electricity generation and through physical electricity, financial trading and optimi­ sation services for industrial consumers.

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

UPM Paper ENA offers an extensive product range of graphic papers for advertising and publishing as well as home and office uses.

UPM Plywood offers plywood and veneer products, mainly for construction, vehicle flooring and LNG shipbuilding as well as other manufacturing industries.

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 forestry services to forest owners and forest investors. UPM Biochemicals and UPM Biocomposites business units are also included in Other operations.

PULP 3%

TIMBER 2%

ELECTRICITY 1%

SELF-ADHESIVE LABELS 4%

LABEL PAPERS 4%

OFFICE PAPERS 4%

GRAPHIC PAPERS –4%

PLYWOOD, VENEER 3%

MARKET DEMAND GROWTH, % PA

BIOFUELS

STRONG GROWTH

CONTENTS

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UPM Annual Report 2017

UPM Annual Report 2017