UPM has changed its business model from a vertically integrated forest
industry model into a company with six separate business areas, each targeting top perfromance in their respective markets.
The business areas are competitive, with strong market positions.
Five of them are operating on healthily growing markets.
UPM group aims to add value to its separate businesses and thereby to its stakeholders with:
Each business area is responsible for executing its own strategy and achieving targets. Group direction and support from global functions enable the businesses to capture benefits from UPM’s brand, scale and integration, while navigating the complex operating environment. Capital allocation decisions take place on the group level.
UPM’s top-line has been nearly constant at EUR 10 billion over recent years. However, sales in the graphic paper business UPM Paper ENA have decreased, while the five other business areas have grown significantly through focused investments.
UPM has achieved a clear improvement in its financial performance. Profitability has improved, shareholder returns have increased and the balance sheet has strengthened. At the same time, social and environmental performance has also improved.