4-5 / 158
UPM Annual Report 2015
2
UPM’S BUSINESS
PORTFOLIO IN FIGURES
Sales 2015 EUR 10,138 million
UPM Biorefining 20%
Other operations 4%
UPM Plywood 4%
UPM Paper
ENA 45%
UPM
Energy
4%
UPM
Raflatac
13%
UPM Paper
Asia 10%
Unconsolidated
UPM Biorefining 45%
UPM Energy 14%
UPM Plywood 6%
Other operations -1%
UPM Paper
ENA 16%
UPM Raflatac
10%
UPM Paper
Asia 10%
EBITDA 2015 EUR 1,350 million
UPM Biorefining 29%
UPM Energy
22%
Capital employed 31 Dec 2015
EUR 11,010 million
UPM Raflatac 5%
UPM Paper
Asia 10%
UPM Paper
ENA 20%
UPM Plywood 2%
Other operations 12%
UPM Paper Asia
UPM Paper Asia serves growing markets with labelling
materials globally, fine papers in Asia and flexible packaging in Europe. The operations
consist of the UPM Changshu and UPM Tervasaari mills in China and Finland as well as
labelling and packaging materials production lines at the UPM Jämsänkoski mill in
Finland. The main customers are retailers, printers, publishers, distributors and paper
converters. UPM Paper Asia seeks growth in labelling materials globally and in high
quality office papers in Asia.
UPM Paper ENA
UPM Paper ENA produces magazine papers, newsprint
and fine papers for a wide range of end uses in 17 efficient paper mills in Europe
and the United States. The main customers are publishers, cataloguers, retailers, printers
and merchants. UPM has a global paper sales network and an efficient logistics system.
UPM Paper ENA focuses on cost leadership and improved profitability to maximise
cash flow.
UPM Plywood
UPM Plywood offers plywood and veneer products, mainly
for construction, vehicle flooring and LNG shipbuilding as well as other manufacturing
industries. UPM is the leading plywood supplier in Europe, with production in Finland,
Estonia and Russia. UPM Plywood aims to strengthen its market position in selected
end-use segments and to increase value and customer-oriented service offering.
Other operations
Wood Sourcing and Forestry secures competitive
wood and biomass for UPM businesses and manages UPM-owned and privately owned
forests. In addition, UPM offers a wide range of forestry services to forest owners
and forest investors who have purchased forestry land from UPM. UPM Biocomposites
and UPM Biochemicals business units are also included in Other operations.
IN BRIEF
GOVERNANCE
ACCOUNTS
STRATEGY
BUSINESSES
STAKEHOLDERS
UPM Biorefining
UPM Biorefining consists of pulp, timber
and biofuels businesses. UPM has three pulp mills in Finland and one mill
and plantation operations in Uruguay. UPM operates four sawmills in
Finland. UPM‘s biorefinery producing wood-based renewable diesel started
up in early 2015 in Finland.
The main customers for UPM Biorefining businesses are tissue, specialty
paper and board producers in pulp, joinery, packaging, distribution and
construction industries in timber and fuel distributors in biofuels. UPM aims
to grow as a reliable pulp supplier, intends to maintain full run operations
in timber and seeks growth in advanced biofuels.
UPM Energy
UPM Energy creates value through cost competitive,
low-emission electricity generation and through physical electricity and
financial trading. UPM Energy is the second largest electricity producer in
Finland and a frontrunner in reshaping the Nordic electricity market. UPM
Energy is an active shareholder in major Finnish electricity companies such
as Pohjolan Voima Oy (PVO), Teollisuuden Voima Oyj (TVO) (through PVO)
and Kemijoki Oy. As a shareholder UPM is actively seeking shareholder
value through decision making and asset management.
UPM Raflatac
UPM Raflatac manufactures self-adhesive label
materials for product and information labelling for label printers and brand
owners in the food, personal care, pharmaceutical and retail segments, for
example. UPM Raflatac is the second largest producer of self-adhesive label
materials worldwide. UPM Raflatac aims to advance in growth markets
and strengthen its position in film and special labelstock products.
UPM integrates bio and forest industries and
builds a sustainable future across six business
areas. Our products are made of renewable
raw materials and are recyclable.
In 2015, UPM’s sales totalled EUR 10.1 billion.
UPM has production plants in 13 countries
and a global sales network. UPM employs
approximately 19,600 employees worldwide.
UPM shares are listed on the NASDAQ Helsinki
stock exchange. At the end of 2015, UPM had
approximately 85,000 shareholders.
UPM
– The Biofore
Company
Vision
As the frontrunner of the new forest industry
UPM leads the integration of bio and forest industries
into a new, sustainable and innovation-driven future.
Cost leadership, change readiness, engagement and
safety of our people form the foundation of our success.
Purpose
We create value from renewable and recyclable
materials by combining expertise and technologies
within fibre-based, energy-related and engineered
materials businesses.
Values
Trust and be trusted
Achieve together
Renew with courage
contents