HOW TO TRANSFORM A 10 BILLION COMPANY – CASE UPMJussi Pesonen, President and CEO, UPMNovember, 2015

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Materials and energy efficiencyRenewable and recyclable products

Innovation and new businesses

Resource scarcityPower shift in global economy

Climate changeDigitalisation

World is changing Biofore – growth and competitiveness

FOREST OF NEW OPPORTUNITIES

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wēi = threat jī = opportunity

crisis

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Building on your strengths and competencies, seeing the opportunities

bring UPM in the position to become the frontrunner in new biomass based innovations

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Access to biomass and energy1 Technology and

capabilities2 Synergisticindustrial platform3

• Innovation and intellectual property• Industrial processes• Bioenergy & infrastructure

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UPM TODAY

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UPM today

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TURNOVER EUR 10 BILLION • PERSONNEL 20,000 • SHAREHOLDERS 86,000

pulp, plantations, biofuels, timber

self-adhesive labels

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• Biofuels renewable drop-in diesel suitable for all diesel engines

• Biochemicals renewable drop-in alternatives for oil-based chemicals

• Biocomposites for injection moulding to replace oil-based raw materials

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100

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2009 2010 2011 2012 2013

Annual patent filings 2009–2013

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New businesses based on UPM’s development work

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UPM BIOFUELS

UPM BioVerno – Renewable diesel

RENEWABLE RAW MATERIAL

100 %CO2 EMISSIONS

(VS. FOSSIL FUEL)

–80 %COMPATIBLE WITHDIESEL VEHICLES

100 %

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Leadership focus

Confidential10

Value based and inspiring leadership

Safe workplace

Sharp commercial ambition and sales capabilities

Change readiness and agility in changing business environment

OPPORTUNITIES WITH OUR PRINT

CUSTOMERS

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Newsprint and printing & writing paper consumption and the Proliferation of Electronic Media in Western Europe

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1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

- Paper consumption, million t/a -

Newsprint

Printing and writing papers

Expansion of Internet/WWW

PCs

RadioCinemaTV

Laser PrintersCD-ROMs

MainframeComputers

ColourTV

Cable TVVCR

Satellite TVMini Computers

Source: Pöyry, UPM

BroadbandWiFi Smartphones

TabletsIpad

2014

Back to Table of Contents Public

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Print offers unique experiences – also for young!Digital content is an extension of print

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DIGI PRINT

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Biofore in paper stands for:

Efficient use of energy, water and raw materials

Fast and reliable deliveries

Innovations

Renewability

EfficiencyNew, sustainablepaper products

Recyclable paper products made of renewable raw material

MORE WITH BIOFORE

UPM paper – Your Smart Choice

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UPM Paper ENAOur promise

We are committed to paper –now and in the future.

Sustainability, safety and high environmental performance are at the heart of our operations. This is your chance to take full advantage of our approach.

Choose us and you have true paper professionals working with you. We make sure that with consistent quality, reliable deliveries and excellent service you will always have the right paper.

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