UPM.COM

Financial targets

UPM aims higher with renewed long-term financial targets

In January 2017 UPM decided on new long-term financial targets:

  • ​Business area long-term return targets have been increased. 
  • Comparable ROE target have been increased.
  • Comparable EBIT growth has been introduced as a new group-level target.
  • A new financial policy on leverage based on net debt/EBITDA has been introduced.
  • The cash flow-based dividend policy remains unchanged. UPM aims to pay an attractive dividend: 30-40% of the company's annual operating cash flow per share.

 

Business area targets

 

Business area long-term return targets

Business Area Measure Target (%) Actual 2017 (%) Actual 2016 (%) Actual 2015 (%)
​UPM Biorefining ​​ROCE % ​14 ​18.2 ​12.6 ​14.6
​UPM Energy ​​​​​ROCE %** ​6 ​4.0 ​5.0 ​6.7
​UPM Raflatac ​​​​ROCE % ​20 ​27.2 ​25.5 ​17.6
​UPM Specialty Papers ​​​​ROCE %* ​14 ​17.2 ​12.1 ​5.5
​UPM Communication Papers ​FCF/CE%* ​14 ​24.3 ​31.0 ​4.7
​UPM Plywood ​​​​ROCE % ​18 ​23.1 ​22.6 ​20.9

ROCE % = Return of capital employed excluding items affecting comparability.
* Free cash flow after investing activities (investments and/or divestments) and restructuring costs.
**UPM Energy assets valued at fair value. ​​

Business area targets compared with realised returns

 
 

Group targets

 

Comparable EBIT growth as a group-level target

Measure ​Target Actual 2017 (EURm) ​Actual 2016 (EURm) ​Actual 2015 (EURm)
​Comparable EBIT ​Growth​ ​1,292 ​1,143 ​916
 

Comparable ROE target

Measure ​Target (%) Actual 2017 (%) ​Actual 2016 (%) ​Actual 2015 (%)
Comprable ROE % ​10.0 ​11.9 ​10.9 ​9.5
 

A financial policy on leverage based on net debt/EBITDA

Measure ​Policy Actual 2017 ​Actual 2016 ​Actual 2015 
Net debt/EBITDA ​approx. 2x or less ​0.11 ​0.73x ​1.56x
​Gearing ​N/A ​2% ​14% ​26%
 

Group financial performance

 

GRAPH SIZE!!

 

Investor Relations: +358 (0)204 15 0033, ir@upm.com