UPM Annual Report 2020

BIOFORE STRATEGY Biofore strategy drives our transformation as a bioeconomy frontrunner. We seek sustainable growth. High performance, innovations and world leading responsibility are the cornerstones of our strategy. We enable our customers and consumers to make more sustainable choices. We create value by providing solutions for a future beyond fossils.

The Biofore strategy has driven our trans formation for more than 10 years and the change continues with accelerating pace. We have the right operating model and nurture a culture of high performance and integrity. In 2020, we succeeded in keeping our employees safe, serving our customers without interruptions and maintaining a satisfactory financial performance. We are the leading company in respon sibility. Our renewable and recyclable products respond to many global chal

lenges, such as climate change and resource scarcity. However, our ambition is even higher. With consistent innovation work, we provide our customer and consumers completely new solutions, creating new profitable growth businesses. Through effective capital allocation we have achieved a nearly debt-free balance sheet and improved our business portfolio. We are in an intensive phase of building a world-scale pulp mill in Uruguay and a next generation biochemicals refinery

in Germany. Combined, the investments amount to EUR 3.3 billion. They represent significant future earnings growth for us. We have also started the basic engineering phase of a new biofuels refinery that would scale up our highly successful biofuels business. We are in a great position to create value to our shareholders and the society, as a company and through our products and solutions. We create a future beyond fossils.

A FUTURE BEYOND FOSSILS

GROWTH

• We respond to megatrends and meet customers’ changing needs • Creating new markets and enabling sustainable choices

PERFORMANCE • Continuous improvement • Agile operating model

INNOVATION • Creating new business and competitive advantage • Replacing fossils with biomaterials

RESPONSIBILITY • Renewable & sustainable solutions • Responsible operations and value chain

PORTFOLIO

• Effective capital allocation • Investing in businesses with strong long-term fundamentals for growth and high barriers to entry

VALUES

Trust and be trusted

Achieve together

Renew with courage

Montevideo port, Uruguay

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UPM ANNUAL REPORT 2020

UPM ANNUAL REPORT 2020