UPM-Kymmene - Company Announcement

UPM’s President and CEO Jussi Pesonen at the Annual General Meeting: UPM’s growth businesses continue on steady course

- economic environment tests structures in the European paper industry

UPM-Kymmene Corporation       Stock exchange release        April 4  2013 at
15:05 EET 

UPM's President and CEO Jussi Pesonen at the Annual General Meeting:

”UPM's growth businesses continue on steady course - economic environment tests
structures in the European paper industry” 

UPM's President and CEO Jussi Pesonen stated his confidence in continued steady
development of UPM's growth businesses at the company's Annual General Meeting
held today at the Helsinki Exhibition & Convention Centre, Finland. He also
underlined the importance of improved margins and stringent cost control on
Group level and in the mature European businesses to maximise the cash flow of
the company. 

“A solid balance sheet and healthy dividend continue to be the cornerstones of
UPM. We are reshaping UPM's business portfolio to increase UPM's earnings and
valuation for the benefit of all stakeholders,” said Pesonen. 

Pesonen highlighted that since 2007, UPM's Pulp, Energy, Label and Asian Paper
Business have grown by 43 % in the topline. Despite the economic slowdowns
during the period, these businesses have shown positive and profitable growth
figures. 

“UPM's growth businesses' sales today exceed EUR 4.4 billion and we have
confidence in further profitable growth with measured steps. Our target is that
more than half of our sales will derive from the well performing growth
businesses on the latter half of this decade.” 

 “Meanwhile sales of our mature businesses Paper, Timber and Plywood have come
down by 11 % since 2007. During year 2012 we were able to achieve a small
improvement in the EBITDA of our mature businesses but we will continue to
focus on securing cash flow and competitiveness in these businesses.” 

“While our growth businesses have a stable overall outlook, the price, volume
and currency development will have a clear negative impact in the European
paper business. We believe that the current economic environment will seriously
test the structures of the whole of European paper industry. This pressure has
lead and will continue to lead to structural changes which will be positive for
the whole industry.” 

UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications

UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
media@upm.com

**

UPM leads the integration of bio and forest industries into a new, sustainable
and innovation-driven future. Our products are made of renewable raw materials
and are recyclable. UPM consists of three Business Groups: Energy and pulp,
Paper, and Engineered materials. The Group employs around 22,000 people and it
has production plants in 17 countries. UPM's annual sales exceed EUR 10
billion. UPM's shares are listed on the Helsinki stock exchange. UPM - The
Biofore Company - www.upm.com