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 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

 
 

Group targets

 

Comparable EBIT growth as a group-level target

Measure ​Target Actual 2018 (EURm) Actual 2017 (EURm) ​Actual 2016 (EURm)
​Comparable EBIT ​Growth​ 1,513 ​1,292 ​1,143
 

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
​Gearing ​N/A -3% ​2% ​14%
 

Group financial performance

 

Comparable-EBIT_ROE_Net_debt_18_ENG.png

 

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