UPM aims higher with renewed long-term financial targets

UPM renews its long-term financial targets. In the new targets,
• the business area return targets and the 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.

“Since adopting the current business model of six separate businesses in 2013, we have achieved a clear improvement in our financial performance. The set-up has simultaneously opened attractive growth opportunities for us, as well as enabled us to improve competitiveness in all of the businesses. Now, we are confident we can continue to aim higher,” says Jussi Pesonen, President and CEO of UPM.

Business area long-term return targets increased
On the business-area level, UPM has increased the long-term return targets for five of the six business areas.

“The new return targets reflect our increased ambition for business performance. They are credible and sustainable in the long term, over business and investment cycles,” says UPM’s CFO Tapio Korpeinen.

Growth target introduced for group comparable EBIT
A new target has been introduced on the group level: UPM aims to grow its comparable EBIT over the long term.

UPM has a portfolio of five businesses that operate on growing markets and one business that faces declining demand. All of our businesses are competitive and have strong market positions.

“We aim to grow the businesses with strong long-term fundamentals for growth and profitability. At the same time, we aim to maintain strong performance also in the European and North American paper business.

However, we prioritise earnings growth over top-line growth. We will invest in projects with attractive and sustainable returns, supported by a clear competitive advantage or barriers to entry. We also aim to capture opportunities to develop our business and product mix and further improve our cost competitiveness,” says Korpeinen.
more at:  http://www.upm.com/About-us/Newsroom/Releases/Pages/UPM-aims-higher-with-renewed-long-term-financial-targets-001-Tue-31-Jan-2017-10-12.aspx

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