UPM Annual Report 2020

Board of Directors´ proposal for the distribution of profit

Adjusted share related indicators

2020 2019 2018 2017 2016 2015 2014 2013 2012 2011

Earnings per share (EPS), EUR Comparable EPS, EUR Equity per share, EUR Dividend per share, EUR 1) Dividend to earnings ratio, % Dividend to operating cash flow, %

1.05 1.37

1.99 2.07

2.80 2.24

1.82 1.88

1.65 1.65

1.72 1.38

0.96 1.20

0.63 0.91

–2.14

0.88 0.93

0.74

The Board of Directors proposes to the Annual General Meeting of UPM-Kymmene Corporation to be held on 30 March 2021 that a dividend of EUR 1.30 per share be paid based on the balance sheet to be adopted for the financial year ending 31 December 2020 and that the remaining portion of the distributable funds be retained in the Company’s unrestricted shareholders’ equity. The dividend will be paid to a shareholder who is registered in the Company’s shareholders’ register held by Euroclear Finland Ltd on the dividend record date of 1 April 2021. The Board of Directors proposes that the dividend be paid on 12 April 2021.

On the date of the dividend proposal, 28 January 2021, the Company’s registered number of shares is 533,735,699. The aforementioned number of shares includes 411,653 treasury shares which are not entitled to dividend. As a result, the proposed dividend would total EUR 693.3 million. EUR 248,543,044.65 profit for the period. No material changes have taken place in respect of the Company's financial position after the balance sheet date. In the opinion of the Board Of Directors, the proposed distribution of profits does not risk the solvency of the Company. On 31 December 2020, the distributable funds of the parent company were EUR 3,523,705,577.69 including

17.53

18.87

18.36

16.24

15.43

14.89

14.02

14.08

14.18

14.22

1.30

1.30 65.4

1.30 46.4

1.15 63.0

0.95 57.6

0.75 43.6

0.70 72.9

0.60 95.2

0.60 neg.

0.60 68.2

123.7

69

38

52

42

30

34

30

43

30

30

Effective dividend yield, %

4.3

4.2

5.9 7.9

4.4

4.1

4.4

5.1

4.9

6.8

7.1 9.7

P/E ratio

29.0 1.89 693

15.5 3.46 693

14.2 2.74 613

14.1 3.16 507

10.0 2.22 400

14.2 2.33 373

19.5 1.39 317

neg. 1.98 317 8.81 7.82

Operating cash flow per share, EUR

2.49 693

1.99 315 8.51 7.34

Dividend distribution, EURm 1) Share price at 31 Dec., EUR

30.47 20.31 31.50 26.09

30.91

22.15

25.91 20.82 26.69 23.89

23.34 13.71 23.41 17.51

17.23 13.19 19.26 16.37 9,192 7,469

13.62 10.07 13.99 12.26 7,266 6,233

12.28

Lowest quotation, EUR Highest quotation, EUR

21,10 21.69 31,49 34.70

7.30

13.02

10.98

15.73 11.17 4,466 8,835

Average quotation for the period, EUR

25.73

28.86

9.42

9.21

Market capitalisation, EURm

16,250 16,485 11,813 13,818 12,452

6,497 5,308

4,633 5,534

Shares traded, EURm 2) Shares traded (1,000)

9,921

9,695

9,980

8,460

6,749

380,237 376,801 345,822 354,053 385,355 456,168 508,318 563,382 600,968 790,967

Shares traded, % of all shares Number of shares, average (1,000)

71.3

70.7

64.8

66.4

72.2

85.5

95.6

106.7

114.4

151.5

533,324 533,324 533,324 533,415 533,505 533,505 531,574 527,818 525,434 521,965 533,736 533,736 533,736 533,736 533,736 533,736 533,736 529,302 526,124 524,973

Signatures of the annual accounts and the report of the Board of Directors for the year 2020

Number of shares at the end of period (1,000)

of which treasury shares (1,000)

412

412

412

412

231

231

231

231

231

211

1) 2020 proposal 2) Trading on the Nasdaq Helsinki Main Market. Treasury shares bought by the company are included in shares traded.

Helsinki, 28 January 2021

Berndt Brunow

Henrik Ehrnrooth

Björn Wahlroos Chair

The definitions of adjusted share related indicators are described below

SHARE RELATED INDICATORS Earnings per share (EPS), EUR

DEFINITION

Profit for the period attributable to owners of the parent company divided by adjusted average number of shares during the period excluding treasury shares. Earnings per share calculated in accordance with IFRS excluding items affecting comparability and their tax impact. Equity attributable to the owners of the parent company in relation to the adjusted number of shares at the end of period.

Piia-Noora Kauppi

Marjan Oudeman

Martin à Porta

Comparable EPS, EUR Equity per share, EUR

Dividend per share, EUR Dividend to earnings ratio, %

Dividend distribution divided by adjusted number of shares at the end of period. Dividend per share as a percentage of earnings per share. Dividend per share as a percentage of operating cash flow per share. Adjusted dividend per share as a percentage of adjusted share price at 31.12.

Ari Puheloinen

Veli-Matti Reinikkala

Emma FitzGerald

Dividend to operating cash flow, %

Effective dividend yield, %

P/E ratio

Adjusted share price in relation to the earnings per share.

Kim Wahl

Operating cash flow per share, EUR

Operating cash flow divided by adjusted average number of shares during the period excluding treasury shares. Total number of shares (excluding those held as treasury shares) multiplied by the share price at the end of period.

Market capitalisation, EURm

Adjusted share price at the end of period

Share price at the end of period in relation to share issue coefficient.

Adjusted average share price

Total value of shares traded in relation to adjusted number of shares traded during the period.

144

UPM ANNUAL REPORT 2020 UPM FINANCIAL REPORT 2020 29 145

UPM ANNUAL REPORT 2020

UPM FINANCIAL REPORT 2020 28