UPM annual report 2014

Contents

UPM Group

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

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

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

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