UPM Annual Report 2021

BEYOND FOSSILS

UPM

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2021

KEY FIGURES 2021

SALES BY MARKET

EUROPE 63%

ASIA 19%

NORTH AMERICA 12%

SALES 2021 EUR 9.8bn +14%

647m Net debt/EBITDA ratio 0.35 Net debt, EUR INDUSTRY-LEADING BALANCE SHEET

693m Dividend (proposal), EUR +0% ATTRACTIVE DIVIDEND

REST OF THE WORLD 6%

PERFORMANCE

CASH FLOW

FOCUSED INVESTMENTS

Comparable EBIT, EUR Operating cash flow, EUR 1,471m 1,483m 1,250m Capital expenditure, EUR

AIMING FOR CONTINUOUS IMPROVEMENT

+55%

+64%

+24%

attractive returns with disciplined and effective investments

ACTIVE EMPLOYEES COMPLETED CODE OF CONDUCT TRAINING

EMPLOYEE ENGAGEMENT SCORE

5.0m t FOSSIL CO 2 EMISSIONS (SCOPE 1 AND 2)

Comparable ROE 11.7% +4.2pp PERFORMANCE

and unused credit facilities, EUR 2.5bn CASH FUNDS

Business areas achieved their financial targets 5/6 BUSINESS AREAS

98%

68 *

-1pp

9 points below global benchmark

-8%

The UPM Code of Conduct lays the foundation for responsible business operations and continuous improvement.

Engaged, high-performing people drive short- and long-term success.

Creating climate solutions and working towards carbon neutrality.

SHARE OF SPEND COVERED BY OUR SUPPLIER CODE

SHARE OF CERTIFIED WOOD

TOTAL RECORDABLE INJURY FREQUENCY

Capital employed 31 Dec 2021 EUR 13,759 million

Sales 2021 EUR 9,814 million

Comparable EBIT 2021 EUR 1,471 million

86% 84% 7.2

EUR 270m

EUR 76m EUR 72m EUR -79m

20%

15% 5%

4% 3%

21%

7% 4%

EUR 223m

14%

+2pp

+1pp

+16%

UPM Communi cation Papers 33%

UPM Biorefining EUR 817m

UPM Biorefining 37%

2%

EUR 135m

Transparent supplier requirements form the basis of responsible sourcing throughout the entire supply chain.

Forest certification is an excellent tool for ensuring sustainable forestry. Chain-of-Custody requirements ensure 100% supply from controlled sources.

Ensuring a safe working environment for employees and everyone working for UPM.

8%

27%

Unconsolidated

* Results not comparable to previous year due to change in method

Other operations UPM Plywood

UPM Communication Papers UPM Biorefining

UPM Specialty Papers UPM Raflatac

UPM Energy

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UPM ANNUAL REPORT 2021

UPM ANNUAL REPORT 2021