UPM's Board of Directors has revised the company's dividend policy to be based on earnings instead of cash flow. This aligns the dividend policy with the company's transformative growth strategy. The new dividend policy is: “UPM aims to pay attractive dividends, targeting at least half of the comparable earnings per share over time.”.

The previous dividend policy was: “UPM aims to pay attractive dividends, targeting a dividend of 30-40% of the operating cash flow per share.”. Effective capital allocation is key to attractive long-term returns, as well as developing the business portfolio in areas with the best long-term value creation potential. At UPM, capital allocation decisions take place at the corporate level.

Dividends are an integral part of capital allocation. UPM plans to allocate capital to: Invest to grow the company and its earnings. UPM invests in sustainable businesses with strong long-term fundamentals for demand growth and a clear competitive advantage or high barrier to entry for superior returns.

UPM targets growth in comparable EBIT and comparable return on equity exceeding 10%. Each business area has its own return targets. Pay attractive dividends.

UPM aims to pay attractive dividends, targeting at least half of the comparable earnings per share over time. The targeted earnings growth drives dividend growth over time.Maintain a strong balance sheet. According to UPM's leverage policy, net debt to EBITDA ratio is to be less than 2. An investment grade rating is an important element in the financing strategy.

Share buybacks. They are a complementing tool that may be used relative to investment opportunities and company valuation.