UPM annual report 2014

Annual General Meeting

Contents

UPM Group

UPM-Kymmene Corporation will hold its Annual General Meeting on Thursday 9 April 2015 at 14:00, at the Exhibition and Convention Centre, Messuaukio 1, 00520 Helsinki, Finland. Instructions for those wishing to attend are given in the notice to the meeting, which is available on the company’s website at www.upm.com . Dividend The Board of Directors has decided to propose to the Annual General Meeting that a dividend of EUR 0.70 per share be paid for the 2014 financial year. The dividend will be paid to the shareholders who are registered in the company’s shareholder register held by Euroclear Finland Ltd. on 13 April 2015, which is the record date for the dividend payment. The Board of Directors proposes that the dividend will be paid on 23 April 2015. Financial information in 2015

1 UPM in brief 3 Review by the President and CEO 5 Strategy 11 UPM as an investment 13 Financial targets and earnings sensitivities 14 Risk management

Businesses

15 UPM Biorefining 19 UPM Energy 21 UPM Raflatac

23 UPM Paper Asia 25 UPM Paper ENA 27 UPM Plywood 29 Innovations and R&D

UPM will publish the interim reports in 2015 as follows:

Stakeholders 31 Creating added value through stakeholder engagement 35 UPM’s tax policy promotes compliance, risk management, transparency and efficiency 37 Continuous collaboration with customers 39 Suppliers are an integral part of UPM value creation 41 People enable company transformation 44 Significant change in UPM’s safety culture Responsibility 45 Responsibility supports business development 49 Taking care of the entire lifecycle 50 Yesterday’s waste is today’s raw material 51 Energy efficiency improved and climate actions recognised 53 UPM ensures that all wood and wood fibre is sustainably sourced 54 Responsible use of water 55 UPM’s material balance 2014 57 GRI content index 59 Independent assurance report

The Interim Report for January–March (Q1) on 28 April 2015 The Interim Report for January–June (Q2) on 28 July 2015 The Interim Report for January–September (Q3) on 27 October 2015

FI / 28 / 003 Please collect used paper for recycling.

Corporate governance 60 Corporate governance 65 Board of Directors 67 Group Executive Team

UPM Annual Report 2014 has been awarded the EU Ecolabel for printed products. The printing process has to meet strict criteria in relation to chemicals, energy consumption, emissions to air and water and waste management. Also the paper used shall be EU Ecolabelled. UPM promotes sustainability of print media.

UPM does not publish a separate environmental and corporate responsibility report but has integrated the contents into this annual report. Various highlights from the year 2014 can be found under the sections for each business area. The GRI content index is on pages 57–58.

Accounts for 2014 69 Contents

137 Key financial information 2005–2014 139 Additional responsibility information 141 UPM businesses on a world map 144 Addresses 146 Annual General Meeting

To find out more about UPM’s responsibility agenda, please visit www.upm.com/responsibility.

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UPM Annual Report 2014

UPM Annual Report 2014