UPM Annual Report 2017

Contents

UPM Group

4 UPM in brief 6 Year 2017 in brief 8 Review by the President and CEO

Strategy 10 UPM Strategy – Aiming higher 12 Moving forward 14 UPM aims higher with renewed long-term financial targets 15 UPM as an investment 16 Guided by the Biofore strategy – 2030 targets 18 Responsibility is good business 20 Megatrends drive demand for sustainable and safe solutions 22 Risks and opportunities 24 Performance improvement and transformation continued in 2017

Businesses 26 UPM Biorefining

30 UPM Energy 32 UPM Raflatac 34 UPM Specialty Papers 36 UPM Paper ENA 38 UPM Plywood 40 Innovations

Stakeholders

44 Our people 48 Driving continuous safety improvements 50 Our stakeholders 56 Value to customers globally 58 UPM’s value creation also generates tax revenues 60 Product stewardship 62 Committed to sustainable forestry 64 Co-operation with suppliers is the basis of a responsible supply chain 66 Resource-efficient production 68 Responsible water use 70 Climate actions and energy efficiency 72 Circular economy at UPM 74 Diving deeper into the societal impacts

Governance 76 Our governance 86 Board of Directors 88 Group Executive Team 90 GRI content index – short version 92 Independent Practitioner’s Assurance Report

Accounts for 2017 93 Contents

178 Financial information 2008–2017 180 More on resposibility 182 Competitive businesses, strong market positions 185 Addresses 187 Annual General Meeting