UPM Annual Report 2019

UPM BIOREFINING UPM Biorefining consists of pulp, timber and biofuels businesses. UPM Pulp offers a versatile range of responsibly-produced pulp grades suitable for a wide range of end uses such as tissue, speciality papers, graphic papers and board. UPM Timber offers certified sawn timber for construction, joinery and furniture. UPM Biofuels produces wood-based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in the petrochemical industry. UPM ENERGY UPM Energy creates value through cost-competitive, zero-carbon electricity generation and through physical and financial electricity trading, as well as energy optimisation services for industrial electricity consumers. UPM RAFLATAC UPM Raflatac offers innovative and sustainable labelling materials for branding and promotion, information and functional labelling in the food, beverage, personal care, pharmaceutical and retail segments, for example. UPM SPECIALTY PAPERS UPM Specialty Papers offers labelling materials and release liner base papers, flexible packaging papers as well as office and graphic papers for labelling, commercial siliconising, packaging, office use and printing. UPM COMMUNICATION PAPERS UPM Communication Papers offers an extensive product range of graphic papers for advertising and publishing as well as home and office uses. UPM PLYWOOD UPM Plywood offers high quality WISA ® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. OTHER OPERATIONS UPM Forest secures competitive wood and biomass for UPM businesses and manages UPM-owned and privately-owned forests in North Europe. In addition, UPM offers forestry services to forest owners and forest investors. UPM Biochemicals, UPM Biomedicals and UPM Biocomposites business units are also included in Other operations.

BIOFORE COMPANY

We lead the forest-based bioindustry into a sustainable, innovation- driven and exciting future beyond fossils. We deliver renewable and responsible solutions to the growing global consumer demand across six business areas. The competence, integrity and drive of our people make us unique.

Sales 2019 EUR 10,238 million Other operations 2% UPM Plywood 4% UPM Biorefining 24% UPM Specialty Papers 12% UPM Raflatac 14% UPM Energy 4%

Comparable EBIT 2019 EUR 1,404 million

Capital employed 31 Dec 2019 EUR 11,474 million

Other operations 1% UPM Plywood 3% UPM Communication Papers 27% UPM Specialty Papers 9%

Other operations 16% UPM Plywood 3% UPM Communication Papers 13% UPM Specialty Papers 8%

UPM Communi- cation Papers 40%

UPM Biorefining 39%

UPM Biorefining 30%

UPM Raflatac 9% UPM Energy 13%

UPM Raflatac 5% UPM Energy 21%

Unconsolidated

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OUR BUSINESSES

OUR BUSINESSES

UPM ANNUAL REPORT 2019

UPM ANNUAL REPORT 2019

CONTENTS