UPM is aiming higher in its financial performance
Top performance drives value creation and mitigates risk related to the business environment. Is also enables investments in growth, innovation and responsibility.
- Business areas target attractive long-term returns (ROCE %), which apply over investment and business cycles and enables value-creating growth investments.
At the group level, UPM is targeting comparable EBIT growth.
UPM aims to maintain a strong balance sheet. UPM’s financial policy on leverage is based on net debt/EBITDA ratio approximately 2 or less.
UPM aims for a 10% return on equity. ROE also takes into account the financing, taxation and capital structure of the group.
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 2018(%)||Actual 2017 (%)||Actual 2016 (%)|
|UPM Biorefining||ROCE %||14||26.6||18.2||12.6|
|UPM Energy||ROCE %**||6||5.3||4.0||5.0|
|UPM Raflatac||ROCE %||20||23.6||27.2||25.5|
|UPM Specialty Papers||ROCE %*||14||10.1||17.2||12.1|
|UPM Communication Papers||FCF/CE%*||14||15.3||24.3||31.0|
|UPM Plywood||ROCE %||18||18.4||23.1||22.6|
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
Comparable EBIT growth as a group-level target
|Measure||Target||Actual 2018 (EURm)||Actual 2017 (EURm)||Actual 2016 (EURm)|
Comparable ROE target
|Measure||Target (%)||Actual 2018(%)||Actual 2017 (%)||Actual 2016 (%)|
|Comprable ROE %||10.0||12.9||11.9||10.9|
A financial policy on leverage based on net debt/EBITDA
|Measure||Policy||Actual 2018||Actual 2017||Actual 2016|
|Net debt/EBITDA||approx. 2x or less||-0.17||0.11||0.73x|
Group financial performance
Here you find a summary of UPM’s latest results and a wide selection of UPM's financial figures
Reports and presentations
Here you will find UPM’s financial reports and presentations, as well as selected presentations as webcasts