UPM-Kymmene - Company Announcement

The plans 2016-2018 within UPM share incentive programmes

UPM-Kymmene Corporation   Stock Exchange Release   2 February 2016 at 12:30 EET

The plans 2016-2018 within UPM share incentive programmes

UPM's Board of Directors has approved the commencement of new plans for the
period 2016-2018 within the company's two long-term share incentive programmes:
the Performance Share Plan and the Deferred Bonus Plan.

The long-term share incentive programmes consist of annually commencing new
plans subject to the approval of the Board of Directors of UPM in each case.

The earning criterion for the earning period 2016-2018 of the Performance Share
Plan is the total shareholder return during 2016-2018.

The earning criteria for the Deferred Bonus Plan are based on the Group and each
business area's EBITDA. The plan for the period 2016-2018 consists of a one-year
earning period (2016) and a two-year restriction period following thereafter
(2017-2018).

The share incentive plans for the period 2016-2018 cover in total approximately
370 participants. In case all the set performance targets are met in full, the
estimated total maximum number of shares to be delivered under these plans is
approximately 1,565,000 shares. The above indicated estimate of the maximum
share rewards represents the gross value of the rewards of which the applicable
taxes will be deducted before the shares are delivered to the participants.

Share delivery will be executed by using already existing shares and the plans,
therefore, have no dilutive effect. Besides the attainment of the performance
criteria the share reward under both plans is subject to the continuation of the
employment. The share rewards earned on the basis of the plans for the period
2016-2018 will be delivered in 2019.


For further information please contact:
Riitta Savonlahti, Executive Vice President, Human Resources, tel.
+358 204 15 0048


UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations

UPM, Media Relations
9.00-16.00 EET
tel. +358 40 588 3284
media@upm.com

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UPM
Through the renewing of the bio and forest industries, UPM is building a
sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM
Raflatac, UPM Paper Asia, UPM Paper Europe and North America and UPM Plywood.
Our products are made of renewable raw materials and are recyclable. We serve
our customers worldwide. The group employs around 19,600 people and its annual
sales are approximately EUR 10 billion. UPM shares are listed on NASDAQ OMX
Helsinki. UPM - The Biofore Company - www.upm.com

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