UPM annual report 2014

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UPM BIOREFINING UPM businesses on a world map Our 20,000 people work in 45 countries across six continents. With head office in Finland, our most important markets are in Europe, North America and Asia, China in particular. UPM ENERGY

UPM RAFLATAC

UPM PAPER ASIA

UPM PAPER ENA

• A versatile range of chemical pulp for many growing end uses with annual production capacity of 3.4 million tonnes produced at three pulp mills in Finland and one in Uruguay • Annual capacities by mills: UPM Fray Bentos 1.3 million; UPM Pietarsaari 800,000; UPM Kaukas 740,000 and UPM Kymi 600,000 tonnes • Certified sawn timber with annual capacity of 1.5 million cubic metres, produced at four sawmills in Finland • Wood-based renewable diesel with the annual capacity of 120 million litres produced in Finland Pulp mills Finland: UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Pietarsaari Uruguay: UPM Fray Bentos Sawmills Finland: UPM Alholma (Pietarsaari), UPM Kaukas (Lappeenranta), UPM Korkeakoski (Juupajoki) and UPM Seikku (Pori)

• Cost competitive low-emission power generation in Finland consisting of hydropower, nuclear power, condensing power and wind power • The total electricity generation capacity is 1,610 MW, including UPM’s own hydropower plants and shareholdings in energy companies • Largest shareholdings: – 44.3% of Pohjolan Voima Oy (PVO), which is a majority shareholder (58.5%) in Teollisuuden Voima Oyj (TVO) – 19% of Kemijoki Oy’s hydropower shares Hydropower plants: Finland: Harjavalta, Kallioinen (Sotkamo), Kaltimo (Joensuu), Katerma (Kuhmo), Keltti (Kouvola), Kuusankoski (Kouvola), Tyrvää (Sastamala), Voikkaa (Kouvola) and Äetsä

• Self-adhesive label materials for product and information labelling • 11 factories and 24 slitting and distribution terminals in all continents

• Labelling materials for global markets and fine papers for Asian markets • Annual production capacity of 0.8 million tonnes of fine papers and 0.6 million tonnes of labelling and packaging materials

• Magazine papers, newsprint and fine papers for a wide range of end uses • Annual paper production capacity of 9.4 million tonnes, manufactured in 17 paper mills • Capacities: 4.8 million tonnes of magazine papers, 2.4 million tonnes of newsprint and 2.2 million tonnes of fine papers annually • The combined heat and power (CHP) plants operating on paper mill sites included in the business area Finland: UPM Jämsä River Mills (Jämsänkoski and Kaipola), UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Rauma France: UPM Chapelle Darblay (Grand-Couronne) Germany: UPM Augsburg, UPM Ettringen, UPM Hürth, UPM Nordland Papier (Dörpen), UPM Plattling, UPM Schongau and UPM Schwedt United Kingdom: UPM Caledonian Paper (Irvine), UPM Shotton Paper USA: UPM Blandin (Grand Rapids, MN) and UPM Madison (Madison, ME) (50%) Paper mills Austria: UPM Steyrermühl

Labelstock factories Brazil: Rio de Janeiro

Paper mills China: UPM Changshu Finland: UPM Jämsänkoski (Jämsä) and UPM Tervasaari (Valkeakoski)

China: Changshu Finland: Tampere

France: Nancy Malaysia: Johor Poland: Kobierzyce (Wroclaw) and Nowa Wies´ (Wroclaw) United Kingdom: Scarborough USA: Mills River, NC; Fletcher, NC and Dixon, IL Slitting and distribution terminals Argentina: Provincia de Buenos Aires Australia: Adelaide, Brisbane and Melbourne Brazil: Jaguariúna China: Guangzhou and Tianjin India: Bangalore and Navi Mumbai Indonesia: Jakarta Italy: Osnago México: Ciudad de México and Guadalajara New Zealand: Auckland Russia: Moscow and St Petersburg South Africa: Cape Town and Pinetown Spain: Barcelona Thailand: Bangkok Turkey: Istanbul Ukraine: Kiev USA: Ontario, California Vietnam: Binh Thang Ward Di An District

Biorefinery Finland: UPM Lappeenranta Biorefinery (Lappeenranta)

UPM PLYWOOD

• Plywood and veneer products, mainly for construction, vehicle flooring, LNG shipbuilding and other manufacturing industries • Annual plywood and veneer production capacity: approximately one million cubic metres • Production in 7 mills in Finland, Estonia and Russia Plywood mills Estonia: UPM Otepää Finland: UPM Joensuu, UPM Jyväskylä, UPM Pellos (Ristiina) and UPM Savonlinna Russia: UPM Chudovo

UPM’s sales by market 2014 EUR 9,868 million

OTHER OPERATIONS

Asia North America

Germany

United Kingdom Finland

Other Europe

Rest of the world

France

Other EU

• Wood Sourcing and Forestry: wood and biomass purchases in approx. 17 countries, 840,000 ha of own forests in Finland and in the USA • UPM Biocomposites producing UPM ProFi outdoor products and UPM Formi composite material for injection moulding and extrusion • UPM Biochemicals developing wood-based building blocks, performance chemicals and biofibril

0 17%

20 9%

40 21% 10% 4%

80 11% 16%

100

UPM’s personnel by area 31.12.2014 20,414

North America 1)

Veneer mill Finland: UPM Kalso (Kouvola)

Other Europe Asia

United Kingdom France Other EU

Germany

Rest of the world

Finland

Biocomposites mills Finland: UPM Lahti Germany: UPM Bruchsal (Karlsruhe)

39%

40 22%

5% 4% 4% 8%

6% 8%

100