UPM THE BIOFORE COMPANY

Transcription

1 UPM THE BIOFORE COMPANY 2012

2 UPM today 24,000 employees Sales exceed 10 billion euros in 2011 Production in 16 countries, world-wide sales network Listed in the NASDAQ OMX Helsinki stock exchange Energy and pulp 4,200 employees Paper Engineered materials 14,000 employees 5,200 employees Hydro, nuclear and condensing power Biofuels Pulp mills Plantation operations in Uruguay UPM Timber and UPM Living Forestry and biomass businesses Wood sourcing Magazine papers Fine papers Newsprint Selected speciality papers Label Plywood UPM ProFi 2 UPM

3 Focus on profitability and reshaping the portfolio Energy and pulp Paper Engineered materials Expand in cost competitive lowemission energy Develop secondgeneration biofuels Grow in competitive pulp market Focus on European profitability Consolidation within Europe Growth in China and other developing markets Profitable growth in self-adhesive label materials Plywood renewal Drive product renewal Value from renewable and recyclable raw materials 3 UPM

4 Total sales EUR 10 billion in 2011 Biggest markets Europe 69 %, Asia 14 % and North America 11 % Sales by business group Sales by area Engineered materials 15 % Plywood 4 % Label 11 % Paper 69 % Magazine papers Fine papers Newsprint Speciality papers Asia 14 % Rest of the world 6 % Germany 18 % Energy and pulp 15 % Forest and Timber 8 % Energy 2% Pulp 5 % Other operations 1 % North America 11 % Other Europe 6 % Other EU 20 % France 6 % UK 11 % Finland 8 % 4 UPM

5 Personnel by area Total personnel 24,000: EU 80 %, Europe 85 % Rest of the world 3 % Asia 7 % North America 5 % Other Europe 5 % Other EU 7 % Finland 40 % France 5 % United Kingdom 6 % Germany 22 % 5 UPM

6 UPM worldwide Production plant Sales company or agent Group Head Office 6 UPM

7 Vision Purpose Values The Biofore Company UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future cost leadership and change readiness engagement and safety of our people Value creation from renewable and recyclable materials fibre-based energy-related engineered materials businesses Trust and be trusted Achieve together Renew with courage 7 UPM

8 Creating added value for forest biomass Fibril cellulose Biochemicals Biofuels for transport Bioenergy heat and electricity Labels and composites Pulp, paper, plywood and wood products Wood and biomass procurement and logistics 8 UPM

9 Exploring new business opportunities UPM Grada UPM ProFi UPM BioVerno UPM Fibril Cellulose UPM ForMi UPM Living 9 UPM

10 OUR BUSINESSES

11 Energy Generates low-emission electricity within Finland using hydropower, nuclear power, condensing power and wind power The total electricity generation capacity is 1,714 MW Shares in the associated energy company Pohjolan Voima Oy and in Kemijoki Oy UPM aims to grow in the Nordic and European CO 2 emission-free energy market Share of the Group 2011 sales* 2 % capital employed 8 % personnel <1 % * Sales % represents external sales 11 UPM

12 Pulp Produces 3.2 million tonnes of chemical pulp from modern, efficient mills for global markets. Uruguay: one pulp mill eucalyptus hardwood pulp eucalyptus plantations, nurseries and competence centre Finland: three pulp mills Northern softwood and hardwood pulp Share of the Group 2011 sales* 5 % capital employed 21 % personnel 6 % * Sales % represents external sales 12 UPM

13 Wood and Biomass Wood and Biomass Sourcing Secures the sustainable supply of competitive wood and biomass supply sustainably to all UPM businesses Sourcing areas: Central and Northern Europe and overseas Forestry Business Forest services to forest owners according to their needs Managing UPM forests Operating areas: Finland and the UK Biomass Business Sales of biomass to external customers Operating area: Europe Share of the Group 2011 sales* 8 % capital employed 15 % personnel 11 % * Sales % represents external sales 13 UPM

14 UPM Timber Produces FSC- and PEFC-certified sawn redwood and whitewood timber products for construction and woodworking industries The second-largest sawn redwood timber manufacturer in Europe Sawmills Finland (Lappeenranta, Kajaani, Pietarsaari, Korkeakoski and Pori) Russia (Pestovo) Austria (Steyrermühl) Sales network in Europe and Asia Annual sawn timber production capacity 2.3 million m³ 14 UPM

15 UPM Living Produces wood based consumer products from sustainable and certified raw materials Main product segments Home and Garden Interior design and terrace & pergola products Production in three countries Finland (Aureskoski, Pietarsaari, Heinola, Lappeenranta & Pori) France (Aigrefeuille) Russia (Pestovo) Sales network in Europe and Asia 15 UPM

16 Paper Produces magazine paper, newsprint, fine and speciality papers for a wide range of enduses. Annual paper production capacity: 12.7 million tonnes Manufactured in 23 modern and sustainable paper mills in Finland, Germany, UK, France, Austria, China and USA Combines heat and power (CHP) plants operating on paper mill Share of the Group 2011 sales* 69 % capital employed 47 % personnel 58 % * Sales % represents external sales 16 UPM

17 Label Share of the Group 2011 sales* 11 % capital employed 4 % personnel 11 % * Sales % represents external sales Manufactures self-adhesive label materials for product and information labelling. 12 factories and approximately 20 slitting terminals covering all main markets Products are sold worldwide through a global network Typical customers small and mediumsized label printers End-uses range from food and beverage labelling to retail and logistics 17 UPM

18 Plywood Plywood is a composite product made of renewable raw materials with unique strength-to-weight properties. The main customers are within construction, transport vehicle building and parquet industries Annual plywood and veneer capacity approximately one million m 3 UPM sells its plywood and veneer products under the registered WISA trademark Formable UPM Grada Plywood is the first application of UPM s new technology to manufacture layered composites Share of the Group 2011 sales* 4 % capital employed 2 % personnel 11 % * Sales % represents external sales 18 UPM

19 New opportunities 19 UPM

20 NEW OPPORTUNITIES R&D and developing businesses UPM aims to complement its existing businesses with innovative products and high added value Approximately half of UPM s R&D input is targeted towards developing new technologies and biobased materials Recent achievements Launched a new biocomposite, UPM ForMi Started pre-commercial production of fibril cellulose Identified significant energy savings of up to 30% in mechanical pulping 20 UPM

21 NEW OPPORTUNITIES UPM ProFi High-quality composite made from recycled paper and plastic Main raw material is surplus from UPM s Label production Production plants in Finland and Germany Used for outdoor, indoor and industrial applications (terraces, floors, etc.) 21 UPM

22 NEW OPPORTUNITIES UPM BioVerno Sustainably produced biodiesel with properties identical to fossil diesel Meets the EN590 quality standard requirements for fossil diesel when sold to customers Can be blended with fossil diesel by up to 30% Fully compatible with current diesel motors and fuel distribution network UPM innovation that reduces greenhouse gas emissions of transportion by as much as 80% compared to fossil fuels 22 UPM

23 NEW OPPORTUNITIES UPM ForMi A new, high-quality and durable biocomposite for injection moulding. Enables designers to realise the boldest of ideas Made from pulp and plastic Recyclable and odourless Ideal for both industrial and consumer end-uses 23 UPM

24 NEW OPPORTUNITIES UPM Fibril Cellulose UPM Fibril Cellulose offers a range of possibilities for shaping materials and giving them new characteristics. Can be used as a high-performance additive e.g. in paints and coatings, concrete, oil drilling fluids Forms highly viscous solutions in water Can also be used as a reinforcement element e.g. in paper and packaging products Made from wood fibres and water 24 UPM

25 RESPONSIBILITY IN ACTION 25 UPM

26 RESPONSIBILITY IN ACTION Safety first Occupational safety is a top priority in UPM s operations. UPM has launched a company-wide safety initiative Step change in safety Targets: no fatal accidents at UPM sites and a world class safety results in the frequency of accidents UPM s Safety principles 1. Safety first 2. Safety starts with me 3. We can prevent all accidents 26 UPM

27 RESPONSIBILITY IN ACTION Co-operation operation based on continuous dialogue Suppliers Communities Government and regulations Media Employees Customers NGO s Investors 27 UPM

28 RESPONSIBILITY IN ACTION UPM s five environmental key areas Low-emission energy Certified fibre from sustainably managed forests Sustainable, recyclable and reusable products Reusing waste Minimising the impact to local water systems 28 UPM

29 RESPONSIBILITY IN ACTION UPM s ecodesign concept 8 New concept development 7 Optimization end-of-life system 6 Optimization initial lifetime Kuva sivulta 72, voi olla suurikin, laitamme speaker noteseja 1 Selection low impact materials 2 Reduction material usage 5 Reduction impact during use 3 Optimization production techniques 4 Optimization distribution systems 29 UPM

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