UPM's President and CEO Jussi Pesonen at the Annual General Meeting: UPM's growth businesses continue on steady course, economic environment tests structures in the European paper industry

UPM-Kymmene Corporation       Stock exchange release        April 4  2013 at 15:05 EET

UPM's President and CEO Jussi Pesonen stated his confidence in continued steady development of UPM’s growth businesses at the company's Annual General Meeting held today at the Helsinki Exhibition & Convention Centre, Finland. He also underlined the importance of improved margins and stringent cost control on Group level and in the mature European businesses to maximise the cash flow of the company.

“A solid balance sheet and healthy dividend continue to be the cornerstones of UPM. We are reshaping UPM’s business portfolio to increase UPM’s earnings and valuation for the benefit of all stakeholders,” said Pesonen.

Pesonen highlighted that since 2007, UPM’s Pulp, Energy, Label and Asian Paper Business have grown by 43 % in the topline. Despite the economic slowdowns during the period, these businesses have shown positive and profitable growth figures.

“UPM’s growth businesses’ sales today exceed EUR 4.4 billion and we have confidence in further profitable growth with measured steps. Our target is that more than half of our sales will derive from the well performing growth businesses on the latter half of this decade.”

 “Meanwhile sales of our mature businesses Paper, Timber and Plywood have come down by 11 % since 2007. During year 2012 we were able to achieve a small improvement in the EBITDA of our mature businesses but we will continue to focus on securing cash flow and competitiveness in these businesses.”

“While our growth businesses have a stable overall outlook, the price, volume and currency development will have a clear negative impact in the European paper business. We believe that the current economic environment will seriously test the structures of the whole of European paper industry. This pressure has lead and will continue to lead to structural changes which will be positive for the whole industry.”

UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
media@upm.com

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UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people and it has production plants in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com