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
We aim for continuous improvement in our financial performance. We make good use of commercial strategies, tight cost control, materials and energy efficiency, effective capital allocation and efficient use of assets. We capture opportunities provided by our operating model, while capitalising on corporate synergies.
Consumer megatrends drive the demand growth for most of our products. This is further supported by the increasing need for sustainable alternatives for fossil based materials and energy. We invest in growing businesses with strong long-term fundamentals for profitability and growth, where we have a clear competitive advantage. This underpins attractive returns for invested capital both in short and longer term.
We anable our customers and consumers maker more sustainable choices. We protect our intellectual property. Our innovations create new attractive business opportunities with high added valeu and a unique competitive advantage in molecular bioproducts or specialty packaging material, for example.
Sustainability is an important driver for growth and competitiveness for us. We aim to capture the opportunities presented by the increasingly responsible consumer choices and tightening regulation in mitigating climate change and answering the plastics challenge, for example. Responsible operations and value chain help to mitigate risks.
Increasing our share of sustainability-driven growth businesses with higher magins improves our long-term profitability and boosts the value of our shares. UPM's growth businesses have three times higher EBIT 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 our shareholders.
Industry leading balance sheet
Our industry-leading balance sheet mitigates risks and enables us to implement our growth projects also during uncertain times, such as 2020.
Here you find interactive tools for UPM's share price performance and key figures comparisons