Esa Laurinsilta

Director, Strategic Partnerships

May 9–11, 2014

Startup Weekend Helsinki

Sustainability and Bioeconomy

UPM – THE BIOFORE COMPANY

Novel bio-based forest products

| © UPM

UPM today

Sales 2013: EUR 10 billionPersonnel: 21,000

Shareholders: over 90,000

• Plywoodproducts

UPM Plywood

• Label materials

UPM Raflatac• Magazine papersin Europe and USA

• Newsprint and finepapers in Europe

UPM Paper ENA

• Fine papers in China and Asia Pacific

UPM Paper Asia

• Hydro, nuclear and condensing power

• Electricity production and trading

UPM Energy

• Pulp• Plantations• Biofuels• Sawmills

UPM Biorefining

UPM Biocomposites

UPM Biochemicals

May 20142

| © UPM3

The sixth industrial revolution

is bio-based

Inn

ovati

on 1. wave

Iron

Water power

Machines

Textile

Trade

2. wave

Steam engine

Railways

Steel

Cotton

3. wave

Electricity

Chemicals

Combustion

engine

6. wave

Sustainable

Bio economy

Renewable

energy

Green chemicals

Industrial ecology

Green

nanotechnology

1785 1845 1900 1950 1990 2020

4. wave

Petrochemicals

Aircrafts and

space

Electronics

5. wave

Digital web

Biotechnology

Information

technology

Source: Worldwatch Institute / State of the WorldMay 20143

| © UPM

Material and energy efficiency

Renewable and recyclable products

Innovations and new businesses

Resource scarcity

Change in economic gravity

Climate change

Digitalisation

The world

is changing

Biofore– growth and competitive advantage

THE FOREST OF NEW OPPORTUNITIES

4 | © UPM May 2014

| © UPM

Sustainable and bio-based solutions

for replacement of oil-based materials

• The sustainability of our products is important to us

- sustainability is also part of the production process

• 100% of all wood fibre sourced from sustainably managed forests

• 100% of UPM’s forests and plantations are FSC© and/or PEFC™

certified and managed according to UPM’s Biodiversity Programme

• We use eco-design and life-cycle analysis to identify opportunities to

further improve the environmental performance of our current and

future products

May 20145

| © UPM

Forest based biomass offers versatile product innovation andUPM new business opportunities

6

Bark and branches to

bioenergy and biofuels

Fibres to pulp

Lignin

to energy and biochemicals

Extractives

to biodiesel

or biochemicals

Logs for sawn goods

and plywood

Fibres to

biofibrils

Cellulose or hemicellulose

to biochemicals

Fibres to

biocomposites

May 2014

| © UPM

New business opportunities through

UPM platform extension

BIOMASS PLATFORM EXTENSION WIDE RANGE OF BIOPRODUCTS

UPM

PLATFORM

BIOCHEMICALS

BIOFIBRILS

BIOCOMPOSITES

NEW AREAS

RENEWABLE DIESEL

TODAY’S BIOPRODUCTS

May 20147

| © UPM

Biochemicals

• UPM Biochemicals add value to wood

based biomass by disintegrating

biomass into its components

ready for further processing:

– Modification of biomass components into

performance chemicals

– Conversion of biomass components into

chemical building blocks

• Mill scale concept development on-

going in Finland and Germany

May 20148

| © UPM

Wood components as starting

material for biochemicals

Performance

Chemicals

Lignin

Cellulose

Hemicellulose

Extractives

ChemicalBuilding Blocks

Biopolymer as basic structure

Unique performance

Application specific products

Intermediates to bioplastics

One-to-one replacement of

fossil based products

Waste

Streams

Forest

Plantation

UPM Biochemicals

BIOMASS COMPONENTS PRODUCTS

May 20149

| © UPM

Chemical Building Blocks

• Chemical Building Blocks are cost

competitive, one-to-one replacement of

fossil based monomers and chemicals

(e.g. intermediates to bioplastics ).

• UPM development is at pre-commercial

phase and UPM is actively developing

industrial scale process alternatives with

various partners:

- e.g. UPM signed a Joint Development

Agreement with Renmatix Inc. 2013

May 201410

| © UPM

Performance Chemicals –

Lignin applications

• Wood contains 20-30%

lignin, a natural

biopolymer that works

as a glue

• UPM Biochemicals

utilize the natural

characteristics of lignin

and develops

e.g. lignin based

adhesives and resins

• UPM develops lignin

applications in

Lappeenranta-Finland,

Augsburg-Germany and

globally with partners

Mo

dif

icati

on

Pro

cess

Mo

dif

icati

on

Pro

cess

UPM Lignin

May 201411

| © UPM

Performance Chemicals -

UPM Biofibrils

• UPM Biofibrils offers a range of possibilities

for shaping materials and giving them new

characteristics

• Made from wood fibres and forms a highly

viscous solution in water

• Potential applications

- high-performance additive e.g. in paints and

coatings, concrete, energy drilling fluids

- reinforcement element e.g. in paper and

packaging products

• Pre-commercial UPM Biofibrils pilot plant in

Espoo, Finland

• UPM has a co-operation agreement with

Ashland Inc. targeting to develop and

commercialize products containing UPM’s

Biofibrils technology

May 201412

| © UPM

UPM leads the integration of bio and forest

industries into a new, sustainable and

innovation-driven future.

Current businesses

&

competencies

New knowledge

&

new businesses

New

forest industry

May 201413

Thank you for your attention.