​​​​​​​​​​​​​​​​​​​​​​Financial targets

UPM aims higher with renewed long-term financial targets

In January 2017 UPM decided on new long-term financial targets:

  • ​Business area long-term return targets have been increased.
  • Comparable ROE target have been increased.
  • Comparable EBIT growth has been introduced as a new group-level target.
  • A new financial policy on leverage based on net debt/EBITDA has been introduced.
  • The cash flow-based dividend policy remains unchanged. UPM aims to pay an attractive dividend: 30-40% of the company's annual operating cash flow per share.

​Business area targets

Business area long-term return targets increased

​​Business Area​Measure​Previous target (%)​New target (%)​Actual 2016 (%)​Actual 2015 (%)​Actual 2014 (%)
​UPM Biorefining​​ROCE %​10-12​14​12.6​14.6​7.6
​UPM Energy​​​​​ROCE %**​6​6​5.0​6.7​6.9
​UPM Raflatac​​​ROCE %​18​20​25.5​17.6​15.0
​UPM Specialty Papers​​​ROCE %*​10-12​14​12.1​5.5​12.6
​UPM Paper ENA​FCF/CE%*​10-12​14​31.0​4.7​12.9
​UPM Plywood​​​ROCE %​10-12​18​22.6​20.9​16.5

 

ROCE % = Return of capital employed excluding items affecting comparability.
* Free cash flow after investing activities (investments and/or divestments) and restructuring costs.
**UPM Energy assets valued at fair value. ​​

New business area targets compared with realised returns​​

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Group targets

Comparable EBIT growth has been introduced as a new group-level target​

Measure​New target​Actual 2016 (EURm)​Actual 2015 (EURm)​Actual 2014 (EURm)
​Comparable EBIT​Growth​​1,143​916​866

 

Comparable ROE target have been increased​

Measure​Previous target​New target (%)​Actual 2016 (%)​Actual 2015 (%)​Actual 2014 (%)
​Comprable ROE %​5pp over a 10-year risk-free rate​10.0​10.9​9.5​8.5

 

A new financial policy on leverage based on net debt/EBITDA has been introduced​

Measure​Previous limit​New policy​Actual 2016​Actual 2015 ​Actual 2014
​Net debt/EBITDA​N/A​approx. 2x or less​0.73x​1.56x​1.84x
​Gearing​<90%​N/A​14%​26%​32%

Group financial performance​

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Responsibility targets

UPM has determined responsibility principles and targets

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Investor Relations: +358 (0)204 15 0033, ir@upm.com