the business area level, UPM targets top performance in their respective
markets. In 2015, out of our six business areas, UPM Biorefining, UPM Plywood
and UPM Energy exceeded their long-term return targets, and UPM Raflatac showed
good improvement, getting very close to its target. UPM is committed to
continuous improvement in its financial, social and environmental performance.
To expand the well-performing businesses with promising long term fundamentals, UPM is implementing focused growth projects. In 2016, several growth projects are ramping up and focus turns to reaping the benefits from the investments.
is seeking to develop its business portfolio in order to uncover and increase
its value. Increasing the share of highly profitable businesses with good
fundamentals for growth improves the company’s long-term profitability and boosts
the value of the shares.
UPM's expertise in renewable and recyclable materials, low-emission energy and resource efficiency is the key to developing new, sustainable business opportunities with high added value.
operating cash flow is important for UPM as it enables the realisation of
organic growth projects and new business development, as well as paying
attractive distribution to UPM shareholders.
The company aims to maintain a strong balance sheet to enable portfolio changes that increase UPM's shareholder value.
aims to pay an attractive dividend, 30-40% of the company’s annual operating
cash flow per share. The Board proposes a dividend of EUR 0.95 per share, representing 30% of operating cash flow per share.
Good governance, industry-leading environmental performance, responsible sourcing practices and a safe working environment are important sources of competitive advantage. Proactive corporate responsibility work also enables business impacts and risks to be efficiently identified and mitigated. UPM’s consistent efforts in this area continued to gain external recognition in 2016.