UPM Annual Report 2021

ACCOUNTS FOR 2021

UPM

BEYOND FOSSILS

STRATEGY

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Global operations, strong market positions Our 17,000 people work in 46 countries across six continents. With our head office in Finland, our most important markets are in Europe, Asia and North America.

UPM RAFLATAC

UPM SPECIALTY PAPERS

UPM COMMUNICATION PAPERS

UPM PLYWOOD

•Labelling materials, release liner base papers, flexible packaging papers, office and graphic papers •Total annual production capacity of 2.0 million tonnes

•Self-adhesive label materials for promotion, information and functional product and information labelling •10 factories and 28 slitting and distribution terminals in all continents

•Magazine paper, newsprint and fine papers for a wide range of end uses •Annual paper production capacity of 6.0 million tonnes, manufactured in 13 paper mills •Capacities: Annual production capacity of 3.2 million tonnes of magazine papers, 1.0 million tonnes of newsprint and 1.8 million tonnes of fine papers •The combined heat and power (CHP) plants operating on paper mill sites included in the business area Paper mills Austria: UPM Steyrermühl Finland: UPM Jämsänkoski (Jämsä), UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Rauma Germany: UPM Augsburg, UPM Ettringen, UPM Hürth, UPM Nordland Papier (Dörpen), UPM Plattling and UPM Schongau United Kingdom: UPM Caledonian Paper (Irvine) USA: UPM Blandin (Grand Rapids, MN)

•Plywood and veneer products mainly for construction, vehicle flooring and LNG shipbuilding as well as other industrial end uses •Production capacity: 960,000 cubic metres •Production in 8 mills in Finland, Estonia and Russia Plywood mills Estonia: UPM Otepää Finland: UPM Joensuu, UPM Pellos (3 mills, Ristiina, Mikkeli) and UPM Savonlinna Russia: UPM Chudovo

Paper mills China: UPM Changshu

Labelstock factories China: Changshu Finland: Tampere

Germany: UPM Nordland Papier (Dörpen) Finland: UPM Jämsänkoski (Jämsä) and UPM Tervasaari (Valkeakoski)

France: Nancy Malaysia: Johor Poland: Kobierzyce (Wroclaw) and Nowa Wieś (Wroclaw) United Kingdom: Scarborough USA: Mills River, NC; Fletcher, NC and Dixon, IL Slitting and distribution terminals Argentina: Buenos Aires Australia: Adelaide, Brisbane and Melbourne Chile: Santiago China: Guangzhou and Tianjin India: Bangalore and Navi Mumbai Indonesia: Jakarta Italy: Osnago México: Ciudad de México and Guadalajara New Zealand: Auckland Russia: Moscow, St Petersburg and Chelyabinsk South Africa: Cape Town and Johannesburg South Korea: Suwon-Si Spain: Barcelona Thailand: Bangkok Turkey: Istanbul Ukraine: Kiev USA: Dallas, TX, Ontario, CA and Seattle, WA Vietnam: Bien Hoa City

UPM ENERGY

UPM FIBRES

•A versatile range of chemical pulp for many growing end uses with annual production capacity of 3.7 million tonnes produced in Finland and in Uruguay •Annual capacities in tonnes by mills: UPM Fray Bentos 1.3 million; UPM Pietarsaari 800,000; UPM Kaukas 770,000 and UPM Kymi 870,000 tonnes •466,000 ha of own and leased plantations in Uruguay •Certified sawn timber with annual capacity of 1.4 million cubic metres, produced at four sawmills in Finland Pulp mills Finland: UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Pietarsaari Uruguay: UPM Fray Bentos, UPM Paso de los Toros (completed in Q1 2023) and certified eucalyptus plantations Sawmills Finland: UPM Alholma (Pietarsaari), UPM Kaukas (Lappeenranta), UPM Korkeakoski (Juupajoki) and UPM Seikku (Pori)

•Cost competitive low-emission electricity genera tion in Finland consisting of hydro, nuclear and thermal power •The total electricity generation capacity is 1,468 MW, including UPM’s own hydropower plants and shareholdings in other energy companies •Market agility and optimisation services for industrial consumers •Largest shareholdings: – 47.69% of Pohjolan Voima Oy (PVO), which is a majority shareholder (58.5%) in Teollisuuden Voima Oyj (TVO) – 19% of Kemijoki Oy’s hydropower shares Hydropower plants: Finland: Harjavalta, Kallioinen (Sotkamo), Kaltimo (Joensuu), Katerma (Kuhmo), Keltti (Kouvola), Kuusankoski (Kouvola), Tyrvää (Sastamala), Voikkaa (Kouvola) and Äetsä

Market position

Veneer mill Finland: UPM Kalso (Vuohijärvi, Kouvola)

Labelling materials and release liner base papers globally

#1

High-quality office paper

segment in China #1

Market position

#1

High and mid segments in EMEA

#1

LNG plywood globally

in Europe Market position #1

OTHER OPERATIONS

•UPM Forest: Purchasing wood and biomass in 11 countries, 516,000 ha of own forest land in Finland and 76,000 ha in the USA, offering forestry services to private forest owners in Finland •UPM Biofuels: Wood-based renewable diesel and naphtha with the annual capacity of 130,000 t produced •UPM Biochemicals: glycols, lignin products, renewable functional fillers •UPM Biomedicals: Wood-based biomedical products for medical and life science applications •UPM Biocomposites: UPM ProFi decking materials made of recycled plastic waste and UPM Formi composite material to replace fossil-based plastics

in Finland Market position #2

#2 globally Market position

Market position #8

Pulp globally

Biofuels Finland: UPM Lappeenranta Biorefinery

Biochemicals Germany: Biochemicals biorefinery, Leuna (completed in 2023) Biomedicals Finland: Biomedicum research and educational centre, Helsinki

Biocomposites mills Finland: UPM Lahti Germany: UPM Bruchsal (Karlsruhe)

Production plant Slitting and distribution terminal

Other business hubs Group Head Office

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UPM ANNUAL REPORT 2021

UPM ANNUAL REPORT 2021