(UPM, Helsinki, 12 June 2012 at 14.30 EET) – Jussi Pesonen, UPM’s President and CEO, stated his confidence in the company’s growth businesses during its Capital Markets Day in London. He also underlined the importance of improved margins in the mature European businesses to maximise the cash flow of the company.
“UPM’s growth businesses sales today exceed EUR 4.0 billion and we have confidence in further growth going forward. More than 50% of our sales will derive from these solid performing growth businesses on latter half of this decade,” said Pesonen.
Pesonen highlighted that since 2007, UPM’s Energy, Pulp, Label and Asian Paper business have grown by 40 % in the topline. “Despite the two economic slowdowns during this period, all these businesses have been not only growing but also well profitable.”
As future sources of top line growth, he identified Paper in China, an expanding Pulp business, continued Label expansion in the emerging markets, biofuels and nuclear power generation - where UPM has a significant holding through the Finnish energy company TVO.
“Our first investment in biofuels will add a totally new dimension to the business portfolio and growth outlook,” said Pesonen. “In the longer term, biocomposites, biofibrils and biochemicals will also complement the business portfolio.”
“While other businesses have grown, sales of our mature Paper, Timber and Plywood businesses have come down by 10 % since 2007. However, these businesses have a pivotal role in our growth strategy. We are expanding in growth businesses with the cash flow generated by the mature businesses. Improving margins for strong cash flow and releasing capital from our mature businesses is crucial. To this end, further consolidation in the industry is needed,” said Pesonen.
“A solid balance sheet and healthy dividend continue to be the cornerstones for UPM. With measures to reshape UPM’s business portfolio we aim to increase UPM’s earnings and valuation for the benefit of our shareholders,” said Pesonen.
For more information on the Capital Markets Day, please contact after 14:30 CET:
Mika Mikkola, Vice President, Investor Relations, UPM, tel. +358 40 595 3202
Download the Capital Markets Day presentations at: http://www.upm.com/EN/INVESTORS/Reports-and-Presentations/2012/Pages/default.aspx
UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284