UPM increases the IFRS fair value of its forests in Finland - Q3 2015 business performance in line with the company's outlook

UPM-Kymmene Corporation      Stock Exchange Release         12 October 2015 at 16:30 EET

UPM increases the IFRS fair value of its forests in Finland - Q3 2015 business performance in line with the company's outlook

UPM increases the fair value of its biological assets (growing trees) in Finland, due to adjusted long-term wood price estimates and change in the discount rate. The impact of these changes on the fair value of biological assets is EUR 265 million and will be included in Q3 2015 operating profit excluding special items under Other operations.

UPM continues to estimate a declining trend of real wood prices in Finland, although with a slightly slower rate than previously. In addition, the pre-tax discount rate used to determine the fair value of the Finnish forests has been lowered from 7.5% to 7%.

At the end of Q3 2015 the fair value of UPM's biological assets in the balance sheet was EUR 1,726 million. This includes the fair values of the company's forests in Finland (713,000 hectares) and the US (75,000 hectares), as well as the fast growing plantations in Uruguay (236,000 hectares).

UPM's business performance in Q3 2015 was in line with the company's outlook for 2015. Q3 2015 operating profit excluding special items and including the aforementioned fair value increase of the forest in Finland was about EUR 507 million.

For further information, please contact:
Mika Mikkola, Vice President, Investor Relations, tel. +358 2041 50376

UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations

UPM, Media Relations
9.00-16.00 EET
tel. +358 40 588 3284
media@upm.com

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Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 20,000 people and its annual sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX Helsinki. UPM - The Biofore Company - www.upm.com