UPM Annual Report 2020

COUNTRY OF INCORPORATION

HOLDING % 2020

HOLDING % 2019

COUNTRY OF INCORPORATION

HOLDING % 2020

HOLDING % 2019

SUBSIDIARIES

SUBSIDIARIES

OOO UPM-Kymmene Chudovo PT UPM Raflatac Indonesia

RU

100.00 100.00 100.00 100.00

100.00 100.00 100.00 100.00

UPM-Kymmene Sp. z o.o.

PL

100.00 100.00 100.00

100.00 100.00 100.00

ID

UPM-Kymmene S.r.l.

IT

Rhein Papier GmbH

DE AT UY UY

Werla Insurance Company Ltd

MT

Steyrermühl Sägewerksgesellschaft m.b.H. Nfg KG

1) UPM AS's corporate form and legal company name has changed to UPM OÜ as of 1 September 2020.

Tebetur S.A.

91.00 91.00

91.00 91.00

COUNTRY OF INCORPORATION

HOLDING % 2020

HOLDING % 2019

Tile Forestal S.A.

JOINT OPERATIONS

UPM (China) Co., Ltd UPM (Vietnam) Ltd UPM Asia Pacific Pte. Ltd

CN VN SG

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00

Oy Alholmens Kraft Ab (Pohjolan Voima Oyj, G series) EEVG Entsorgungs- und Energieverwertungsgesellschaft m.b.H.

FI

29.77 50.00 50.00 54.00 76.00 50.00 71.95 —

27.88 50.00 50.00 50.00 54.00 76.00 50.00 71.95

AT

Järvi-Suomen Voima Oy Kainuun Voima Oy 1)

FI FI FI FI

UPM Biofuels S.A.

UY

UPM Communication Papers Oy

FI FI

Kaukaan Voima Oy (Pohjolan Voima Oyj, G9 series) Kymin Voima Oy (Pohjolan Voima Oyj, G2 series)

UPM Energy Oy UPM France S.A.S. UPM Fray Bentos S.A.

FR

Madison Paper Industries

US

UY DE BR

Rauman Biovoima Oy (Pohjolan Voima Oyj, G4 series)

FI

UPM GmbH

1) In 2020, UPM sold its 50% share in the joint operation Kainuun Voima Oy. Refer Note » 8.1 Business acquisitions and disposals.

UPM Manufatura e Comércio de Produtos Florestais Ltda

UPM OÜ 1)

EE

UPM Plywood Oy UPM Pulp Sales Oy

FI FI

8.3 Related party transactions The Board of Directors and the Group Executive Team There have not been any material transactions between UPM and its members of the Board of Directors or the Group Executive Team (key management personnel) or persons closely associated with these members or organisations in which these individuals have control or significant influence. There are no loans granted to any members of the Board of Directors or the Group Executive Team at 31 December 2020 and 2019. For information concerning shares held by members of the Board of Directors as well as remuneration to members of the Board of Directors and the Group Executive Team are disclosed in » Note 3.2. Key management personnel. Associates and joint ventures In Finland, the group organises its producer’s responsibility of recovered paper collection through Encore Ympäristöpalvelut Oy (until 1.1.2019 by name Paperinkeräys Oy). Austria Papier Recycling GmbH purchases recovered paper in Austria and L.C.I s.r.l. in Italy. ASD Altpapier Sortierung Dachau GmbH is a German recovered paper sorting company. The purchases from those four companies represented approximately 95% (93%) of total recovered paper purchase amount from associates and joint ventures. Transactions with associates and joint ventures are presented in the table below. The group has no individually material associates or joint ventures.

UPM Raflatac (China) Co., Ltd. UPM Raflatac (S) Pte Ltd UPM Raflatac (UK) Limited UPM Raflatac Chile SpA UPM Raflatac Co., Ltd UPM Raflatac Iberica S.A.

CN SG GB CL TH ES US MX NZ

Subsidiaries and joint operations » Refer Note 8.2 Principal subsidiaries and joint operations.

Pension Funds In Finland, the group has the pension foundation, UPM Sellutehtaiden eläkesäätiö, which is a separate legal entity. Pensions for about 19% (18%) of the group’s Finnish employees are arranged through the Foundation. In 2020, the contributions paid by UPM to the Foundation amounted to EUR 18 million (20 million). The Foundation manages and invests the contributions paid to the plan. The fair value of the Foundation’s assets at 31 December 2020 was EUR 563 million (537 million), of which 52% was in the form of equity instruments, 40% in the form of debt instruments and 8% was invested in property and money market. In the UK, the single UPM Pension Scheme operates under a Trust which is independent from the group. The Trust consists of various defined benefit sections, all of which are closed to future accrual and one common defined contribution section which is open to all UPM employees in the UK. The group made contributions of EUR 6 million (8 million) to the defined benefit sections of the Scheme in 2020. The fair value of the UK defined benefit fund assets at 31 December 2020 was EUR 515 million (491 million), of which 8% was invested in equity instruments, 21% in debt instruments, 66% in property and money market and 5% in other investments.

UPM Raflatac Inc.

UPM Raflatac Mexico S.A. de C.V.

UPM Raflatac NZ Limited UPM Raflatac Oy UPM Raflatac Pty Ltd UPM Raflatac s.r.l. UPM Raflatac SAS UPM Raflatac Sdn. Bhd.

FI

AU AR

FR

MY ZA

UPM Raflatac South Africa (Pty) Ltd

UPM Raflatac Sp. z o.o.

PL

UPM S.A.

UY DE

UPM Sales GmbH UPM Sales Oy UPM Silvesta Oy

FI FI FI FI

UPM Specialty Papers Oy

UPM Sähkönsiirto Oy

UPM-Kymmene (Korea) Ltd UPM-Kymmene (UK) Ltd UPM-Kymmene Austria GmbH

KO GB AT US IN

EURm

2020 2019

UPM-Kymmene Inc.

Dividends received

3

2

UPM-Kymmene India Private Limited

Purchases of raw materials and services

60

73

UPM-Kymmene Japan K.K.

JP

Loan receivables

6 1 7

5 1 6

UPM-Kymmene Kagit Urunleri Sanayi ve Ticaret Ltd. Sti.

TR EE ES

Trade and other receivables Trade and other payables

UPM-Kymmene Otepää OÜ

UPM-Kymmene S.A.

UPM-Kymmene Seven Seas Oy

FI

200

UPM ANNUAL REPORT 2020 UPM FINANCIAL REPORT 2020 85 201

UPM ANNUAL REPORT 2020

UPM FINANCIAL REPORT 2020 84