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UPM Annual Report 2016
3
Governance
Accounts
UPM Annual Report 2016
2
Strategy
Businesses
Stakeholders
In brief
ANNUAL MARKET GROWTH
VALUES
Trust and be trusted
Achieve together
Renew with courage
Biofore
Company
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.
OTHER
OPERATIONS
Wood Sourcing and Forestry
secures competitive wood and
biomass for UPM businesses and
manages UPM-owned and
privately owned forests in North
Europe. In addition, UPM offers
a wide range of forestry services
to forest owners and forest
investors. UPM Biocomposites
and UPM Biochemicals business
units are also included in Other
operations.
UPM
BIOREFINING
UPM Biorefining consists of pulp,
timber and biofuels businesses.
UPM Pulp offers versatile range
of sustainably produced pulp
grades suitable for a wide range
of end-uses such as tissue, spe
cialty papers, graphic papers
and board. UPM Timber offers
certified sawn timber for construc
tion and furniture, for example.
UPM Biofuels produces wood-
based renewable diesel that is
suitable for all diesel engines.
UPM
ENERGY
UPM Energy creates value
through cost competitive,
low-emission electricity gener
ation and through physical
electricity and financial trading.
UPM Energy is an active share
holder in major Finnish electric-
ity companies. UPM’s power
generation capacity consists
of hydropower, nuclear power
and condensing power.
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
SPECIALTY
PAPERS
UPM Specialty Papers serves
growing global markets with
label papers and release liners,
office papers in Asia and flexible
packaging in Europe. With
extensive distribution network
and strong brands, UPM
Specialty Papers is the market
leader in labelling materials
globally and in office paper in
Asia Pacific region.
UPM
PAPER ENA
UPM Paper ENA is the world’s
leading producer of graphic
papers, offering an extensive
product range for advertising,
magazine and newspaper
publishing as well as home and
office uses. UPM Paper ENA
has 15 efficient paper mills in
Europe and the United States as
well as a global sales network
with excellent service.
UPM
PLYWOOD
UPM Plywood offers plywood
and veneer products, mainly for
construction, vehicle flooring and
LNG shipbuilding as well as other
manufacturing industries. With
production facilities in Finland,
Estonia and Russia, UPM Plywood
is the leading supplier in
demanding end-use segments.
PULP
3%
TIMBER
2%
BIOFUELS
STRONG GROWTH
ELECTRICITY
1%
SELF-ADHESIVE LABELS
4%
LABEL PAPERS
4%
HIGH-END
OFFICE PAPERS
4%
GRAPHIC PAPERS
–4%
PLYWOOD, VENEER
3%
UPM Biorefining
31%
Other operations 14%
UPM Plywood 3%
UPM Paper ENA
17%
UPM Energy 21%
UPM Raflatac 5%
UPM Specialty
Papers 9%
Capital employed 31 Dec 2016
EUR 10,657 million
UPM Biorefining 20%
Other operations 3%
UPM Plywood 4%
UPM Energy 3%
UPM Raflatac
13%
UPM Specialty
Papers 12%
Sales 2016
EUR 9,812 million
Unconsolidated
UPM Paper ENA
45%
UPM Biorefining
36%
Other operations 1%
UPM Plywood 5%
UPM Paper
ENA 25%
UPM Energy 10%
UPM Raflatac 12%
UPM Specialty
Papers 11%
Comparable EBIT 2016
EUR 1,143 million
CONTENTS