UPM Annual Report 2022

BEYOND FOSSILS

UPM

BUSINESSES

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2022

KEY FIGURES 2022

SALES BY MARKET

EUROPE 62%

ASIA 17%

NORTH AMERICA 15%

SALES 2022 EUR 11.7bn +19%

STRONG BALANCE SHEET

800m Dividend (proposal), EUR +15% ATTRACTIVE DIVIDEND

2,374m Net debt/EBITDA ratio 0.94 Net debt, EUR

REST OF THE WORLD 6%

PERFORMANCE

CASH FLOW

FOCUSED INVESTMENTS

Comparable EBIT, EUR Operating cash flow, EUR 2,096m 1,555m 508m Capital expenditure, EUR

AIMING FOR CONTINUOUS IMPROVEMENT

+42%

+5%

-59%

attractive returns with disciplined and effective investments

ACTIVE EMPLOYEES COMPLETED CODE OF CONDUCT TRAINING *

4.5Mt FOSSIL CO 2 EMISSIONS (SCOPE 1 AND 2)

EMPLOYEE ENGAGEMENT SCORE

Comparable ROE 14.0% +2.3pp PERFORMANCE

and unused credit facilities, EUR 6.4bn CASH FUNDS

Business areas achieved their financial targets 4/6 BUSINESS AREAS

97%

70 +2 points

-1pp

-11%

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

Engaged, high-performing people drive our 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

Sales 2022 EUR 11,720 million

Comparable EBIT 2022 EUR 2,096 million 18%

Capital employed 31 Dec 2022 EUR 17,913 million

88% 86% 5.9

2% 5%

21%

15% 6%

4% 5%

23%

10%

5% 4%

13%

UPM Communi cation Papers 37%

UPM Communi cation Papers 30%

UPM Fibres 36%

+2pp

+2pp

-18%

7%

1%

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.

27%

9%

21%

Unconsolidated

* New training for the updated Code of Conduct started in September 2022

Other operations

UPM Plywood

UPM Communication Papers

UPM Fibres

UPM Specialty Papers

UPM Raflatac

UPM Energy

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UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022