UPM Annual Report 2018

UPM AT A GLANCE

STRATEGY

BUSINESSES

SOCIETY AND ENVIRONMENT

GOVERNANCE AND COMPLIANCE

REPORT OF THE BOARD OF DIRECTORS

FINANCIAL STATEMENTS

AUDITOR’S REPORT

OTHER FINANCIAL INFORMATION

UPM BIOREFINING UPM Biorefining consists of pulp, timber and biofuels businesses. UPM Pulp offers a versatile range of responsibly-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. 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 petrochemical industry, for example.

UPM Biofore – Beyond fossils

We lead the forest-based bioindustry into a sustainable, innovation-driven and exciting future beyond fossils. We deliver renewable and responsible solutions to the growing global consumer demand across six business areas. The competence, integrity and drive of our people make us unique.

UPM ENERGY UPM Energy creates value through cost competitive, low-emission electricity generation and through physical and financial electricity trading as well as energy optimisation services for industrial consumers.

UPM RAFLATAC 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 SPECIALTY PAPERS UPM Specialty Papers offers labelling materials and release liners, office and graphic papers as well as packaging papers for labelling, commercial siliconising, flexible packaging, wrapping and printing.

BIOFORE COMPANY

UPM COMMUNICATION PAPERS UPM Communication Papers offers an extensive product range of graphic papers for advertising and publishing as well as home and office uses.

UPM PLYWOOD UPM Plywood offers plywood and veneer products, mainly for construction, vehicle flooring and LNG shipbuilding as well as other industrial applications.

OTHER OPERATIONS 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.

Comparable EBIT 2018 EUR 1,513 million

Capital employed 31 Dec 2018 EUR 10,575 million

Sales 2018 EUR 10,483 million

Other operations 1% UPM Plywood 3%

Other operations 3%

Other operations 15%

UPM Plywood 4%

UPM Biorefining 25%

UPM Communication Papers 18%

UPM Plywood 3%

UPM Biorefining 31%

UPM Biorefining 56%

UPM Communication Papers 15%

UPM Specialty Papers 6%

UPM Communication Papers 40%

UPM Energy 3%

UPM Raflatac 8%

UPM Raflatac 13% UPM Specialty Papers 12%

UPM Specialty

Papers 8%

UPM Energy 8%

UPM Energy 23%

UPM Raflatac 5%

Unconsolidated

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CONTENTS

UPM ANNUAL REPORT 2018

UPM ANNUAL REPORT 2018