UPM-Biofore-Magazine-2-2014-EN

TEXT MATTI REMES

PHOTOGRAPHY UPM

Strong first half for UPM

The company visibly stepped up its performance between January and June.

UPM’s financial development and key figures can be conve- niently followed through a downloadable iPad applica- tion. The new analysis tool is particularly designed for inves- tors and analysts. The application provides UPM’s key financial figures, share prices, press releases, presenta- tions and reports in a compact and easy-to-use format. It also provides links to the organisa- tion’s investor webcasts, social media channels and the UPM Viewpoint blog. The application is called UPM IR APP and it is available for download on the Apple App Store free of charge. Follow UPM’s performance on iPad

UPM’s performance in the first half was significantly better compared to the same period last year. Operating profit excluding special items increased to EUR 382 million fromEUR 282 million in the first half of last year. Operating profit percentage rose up from 5.6% to 7.8%. UPMPresident and CEO Jussi Pesonen presented the Interim Report and stated that the strong performance was the result of the ongoing and successful profit improve- ment programme in particular. The programme was launched a year ago and has proceeded faster than expected. “With the improved profit, the cash flowwas strong and the balance sheet grew stronger still. This also helps us to pay a good dividend,” says Pesonen. Among UPM’s business areas, UPMPaper ENA (Europe and North America), UPMPaper Asia and UPM Plywood succeeded in improving their profitability. UPMEnergy’s profit remained steady. UPMBiorefining and

UPMRaftatac, on the other hand, did not achieve their targets completely. UPMBiorefining’s profit decreased due to lower hardwood pulp prices in the global market, maintenance shut- downs at plants and a prolonged start-up at the UPMKaukas pulpmill. According to Jussi Pesonen, the strategic projects that are designed to enable UPM’s growth are progressing as planned. UPM’s biorefinery that manu- factures biofuels in Lappeenranta has proceeded to its testing and commis- sioning stage. In addition, the projects to improve the production capacity of the pulp business as well as the new invest- ments into the UPMChangshumill in China are proceeding on schedule. According to Pesonen, UPM’s busi- ness outlook is steady. The budding rebound of the European economy might ease the declining demand for paper and wood products that has continued for two years. In emerging markets, on the other hand, a strong growth is anticipated – especially in Asia.

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