Our purpose is to create value by seizing the limitless potential of bioeconomy. It means numerous profitable business opportunities, which are providing safe and sustainable solutions for growing global consumer demand.
UPM as an investment
UPM has constantly improved its financial, social and environmental performance. Over the coming years, we can allocate more capital to growing and transforming the company while simultaneously distributing attractive dividend to our shareholders and maintaining headroom in our strong balance sheet.
UPM Biofore strategy - Beyond fossils
Spearheads for growth
Demand growth for our businesses is supported by global megatrends. We aim to invest in businesses that offer attractive long-term fundamentals for profitability and growth, as well as opportunities to achieve a sustainable competitive advantage.
In the coming years UPM seeks significant growth in high-value fibre, specialty packaging materials and molecular bioproducts. The key factors these three sprearheads have in common are significant growth potential and UPM's competitive advantage based on deep knowhow and high barrier to entry. Innovation is at the core of our strategy for future growth.
Strategic focus areas
UPM is committed to continuous improvement in its financial, social and environmental performance. Top performance enables investing in value-enhancing growth, innovation and responsibility and is a key to the long-term earnings growth. A strong cash flow underpins our ability to provide attractive dividends to our shareholders.
UPM invests in growing businesses with strong long-term fundamentals for profitability and growth, where it has a clear competitive advantage. This enables attractive returns for invested capital both in short and longer term. Earnings growth is prioritised over sales growth.
UPM’s expertise in renewable and recyclable materials, low-emission energy and resource efficiency is the key to developing new, sustainable businesses with high added value and unique competitive advantage.
UPM's responsible operations and value chain, and drive in finding new sustainable solutions mitigate risks, create competitive advantages, open new growth opportunities and help in answering some of the global challenges.
Increasing the share of sustainable growth businesses improves the company’s long-term profitability and boosts the value of the shares. UPM's growth businesses have three times higher margins on average than the mature graphic paper business.
Shareholder value at the core
Creating shareholder value is at the core of our strategy, and we believe this also benefits other stakeholders and society on the long term.
Generating strong cash flow
Strong cash flow enables focused growth investments, focused M&A, new business development as well as attractive dividends to UPM shareholders.
Industry leading balance sheet
An industry-leading balance sheet mitigates risks and enables UPM to accelerate its business portfolio transformation, when the opportunity and timing are right.
