UPM introduces a new cash flow based dividend policy

Stock Exchange Release 3.2.2015 9:38 EET

UPM-Kymmene Corporation Stock exchange release February 3, 2015 at 9:38 EET

UPM introduces a new cash flow based dividend policy

UPM Board of Directors has approved a new dividend policy according to which the company aims to pay an attractive dividend, 30-40% of the company's annual operating cash flow per share.

The new policy is clear and transparent to the investors. Operating cash flow is one of UPM's key performance indicators. Consistently strong cash flow is also one of UPM's strengths.

In 2014, UPM introduced long term return targets for the six business areas. For the full year, four of the six businesses reached and exceeded their return targets. At the Group level, UPM's financial targets are based on return on equity and gearing. For the 2014, UPM's return on equity excluding special items was 8.3% and gearing 32% at the end of the year. Operating cash flow per share was EUR 2.33.

With good performance in the businesses, strong cash flow, and leading balance sheet in the industry, the company can simultaneously distribute an attractive dividend, implement focused growth projects and act on strategic opportunities.

In line with the new policy the Board proposes a dividend of EUR 0.70 for 2014 to the company's Annual General Meeting to be held on 9 April 2015. The proposed dividend represents 30% of the operating cash flow per share in 2014 and is 17% higher than the dividend for 2013.

For further information please contact: Tapio Korpeinen, CFO, tel: +358 20 415 0004.

Notes to the editor: According to the earlier policy the dividend was at least one third of net cash flow from operating activities less operational capital expenditure. The cash flow was calculated as an average over three years.

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

UPM, Media Desk
9.00-16.00 EET
tel. +358 40 588 3284


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