UPM Annual Report 2020

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COUNTRY OF INCORPORATION

HOLDING %

SUBSIDIARIES UPM-Kymmene AB UPM-Kymmene B.V.

SE NL DE

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 99.62

Auditor’s Report (Translation of the Finnish Original) To the Annual General Meeting of UPM-Kymmene Corporation

UPM-Kymmene Beteiligungs GmbH

UPM-Kymmene Comercializacao de Papel Lda

UPM-Kymmene d.o.o.

UPM-Kymmene Groupe S.A.

FR DE GR IN US

Report on the Audit of the Financial Statements Opinion In our opinion • the consolidated financial statements give a true and fair view of the group’s financial position and financial performance and cash flows in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU • the financial statements give a true and fair view of the parent company’s financial performance and financial position in accordance with the laws and regulations governing the preparation of the financial statements in Finland and comply with statutory requirements. Our opinion is consistent with the additional report to the Audit Committee. What we have audited We have audited the financial statements of UPM-Kymmene Corporation (business identity code 1041090-0) for the year ended 31 December 2020. The financial statements comprise: • the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in equity, cash flow statement and notes, including a summary of significant accounting policies • the parent company’s balance sheet, income statement, cash flow statement and notes. Basis for Opinion We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements. To the best of our knowledge and belief, the non-audit services that we have provided to the parent company and to the group companies are in accordance with the applicable law and regulations in Finland and we have not provided non-audit services that are prohibited under Article 5(1) of Regulation (EU) No 537/2014. The non-audit services that we have provided are disclosed in note 2.3 to the Financial Statements.

UPM-Kymmene Grundstücksverwaltung GmbH

UPM-Kymmene Hellas Ltd

UPM-Kymmene India Private Limited UPM-Kymmene Investment Inc.

UPM-Kymmene Japan K.K. UPM-Kymmene Pty Limited

UPM-Kymmene RUS Holdings Oy

UPM-Kymmene S.A. UPM-Kymmene S.r.l. UPM-Kymmene s.r.o.

UPM-Kymmene Seven Seas Oy UPM-Kymmene Slovakia s.r.o. Werla Insurance Company Ltd

SK MT

COUNTRY OF INCORPORATION

HOLDING %

PARTICIPATING INTEREST COMPANIES

Kiinteistö Oy Joutsan Rantatie 3

FI FI FI FI FI FI FI FI

25.43 23.95 36.60 38.65 33.33 28.41 33.33 34.32

Metsäteho Oy Oy Citotest Ab

Oy Keskuslaboratorio - Centrallaboratorium Ab

Perkaus Oy

Rönnäsin Kiinteistöhuolto Oy Selluloosan ruokalaosuuskunta

Steveco Oy

Group subsidiaries and joint operations are disclosed in » Note 8.2.

Our Audit Approach

Overview

• Overall group materiality: € 60 million, which represents approximately 5 % of the average of the profit before tax for the last three years.

• The group audit scope encompassed all significant group companies, as well as a number of smaller group companies in Europe, Asia, North America and South America covering the vast majority of revenue, assets and liabilities.

• Valuation of forest assets • Valuation of energy shareholdings

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain.