UPM annual report 2015

Contents

UPM Group

1 UPM in brief 3 Review by the President and CEO

Strategy 5 Grow with Biofore – UPM’s strategic focus areas 7 Performance improvement and transformation continued in 2015 9 Responsibility is good business 11 Key performance indicators and financial targets 13 UPM as an investment 15 Changing operating environment 17 Risks and opportunities, earnings sensitivities

Businesses

19 UPM Biorefining 23 UPM Energy 25 UPM Raflatac

27 UPM Paper Asia 29 UPM Paper ENA 31 UPM Plywood 33 Innovations and R&D

Stakeholders 35 New responsibility targets for 2030 37 Our people – Growing with Biofore 41 Continued development in UPM’s safety culture and performance 43 Creating added value through stakeholder engagement 47 UPM pays corporate income taxes where added value is created 49 Collaboration with customers 51 Prioritising product stewardship 52 Sustainable forestry and fibre sourcing the cornerstones of UPM’s business 54 Responsible sourcing throughout the entire value chain 57 Controlled and resource efficient production 61 UPM direct value creation 2015

Governance

63 Governance 71 Board of Directors 73 Group Executive Team

75 GRI content index – short version 77 Independent assurance report

Accounts for 2015 78 Contents

145 Key financial information 2006–2015 147 More responsibility information 149 UPM businesses on a world map 152 Addresses 154 Annual General Meeting