UPM Annual Report 2019

SIGNIFICANCE

TARGET

OUR WAY

•Top performance drives value creation and mitigates risks related to the business environment •Top performance enables investments in growth, innovation and responsibility •Our product markets offer significant growth potential, driven by global consumer megatrends •We are in a unique position to open new

•Continuous improvement •Top performance in each business

•Operating model with separate business areas •High-performing people •Commercial excellence •Cost efficiency •Efficient use of assets and capital •Focus areas for growth: high value fibre, specialty packaging materials and molecular bioproducts •Clear return targets •Focused growth projects and transformative projects for earnings growth •Talent attraction

PERFORMANCE

•Earnings growth •Attractive returns

UPM STRATEGY – BEYOND FOSSILS

large markets by offering sustainable solutions to replace fossils

GROWTH

•Replacement of fossil- based materials with sustainable alternatives

•Boost growth •Boost competitiveness

•New businesses, products and technologies with a focus on bioeconomy •Developing products, services and processes •Developing capabilities •Extensive partner network

presents large opportunities for value creation

•Developing products,

We create value by seizing the limitless potential of bioeconomy Our portfolio consists of businesses with strong long-term fundamentals for demand growth and high barriers to entry We build on four strategic cornerstones: performance, growth, innovation and responsibility

services and processes is key to improving resource efficiency, sustainability and competitiveness

INNOVATION

•Global consumers present a large and growing demand for sustainable and safe solutions •Responsible operations and value chain mitigate risks and create opportunities related

•Provide solutions to global challenges, while creating value for our stakeholders •Competitive advantage

•Compliance •Responsible operations and value chain •Value-based leadership •Renewable, recyclable and safe products

RESPONSIBILITY

to changes in consumer choices and regulations

•Value creation is driven by performance within each business and synergies within the group •Long-term value creation is further driven by effective capital allocation and right choice of businesses

•Superior long-term shareholder returns

•Develop businesses with strong long-term fundamentals for demand growth and high barriers to entry •Disciplined and effective

PORTFOLIO

capital allocation and strong balance sheet

•Capitalise on corporate benefits and synergies

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OUR STRATEGY

OUR STRATEGY

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS