UPM Board of Directors has approved a new dividend policy according to which the company aims to pay an attractive dividend, 30-40% of the company's annual operating cash flow per share.
The new policy is clear and transparent to the investors. Operating cash flow is one of UPM's key performance indicators. Consistently strong cash flow is also one of UPM's strengths.
In 2014, UPM introduced long term return targets for the six business areas. For the full year, four of the six businesses reached and exceeded their return targets. At the Group level, UPM's financial targets are based on return on equity and gearing. For the 2014, UPM's return on equity excluding special items was 8.3% and gearing 32% at the end of the year. Operating cash flow per share was EUR 2.33.
With good performance in the businesses, strong cash flow, and leading balance sheet in the industry, the company can simultaneously distribute an attractive dividend, implement focused growth projects and act on strategic opportunities.
In line with the new policy the Board proposes a dividend of EUR 0.70 for 2014 to the company's Annual General Meeting to be held on 9 April 2015. The proposed dividend represents 30% of the operating cash flow per share in 2014 and is 17% higher than the dividend for 2013.
