UPM Annual Report 2022

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ACCOUNTS FOR 2022

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Board of Directors´ proposal for the distribution of profit

Adjusted share related indicators

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013

Earnings per share (EPS), EUR Comparable EPS, EUR Equity per share, EUR Dividend per share, EUR 1) Dividend to earnings ratio, % Dividend to operating cash flow, % Dividend to comparable EPS, %

2.86 3.09

2.41 2.22

1.05 1.37

1.99 2.07

2.80 2.24

1.82 1.88

1.65 1.65

1.72 1.38

0.96 1.20

0.63 0.91

The Board of Directors proposes to the Annual General Meeting of UPM-Kymmene Corporation to be held on 12 April 2023 that an aggregate dividend of EUR 1.50 per share be paid based on the balance sheet to be adopted for the financial year ending 31 December 2022, and that the remaining portion of the distributable funds be retained in the Company’s unrestricted shareholders’ equity. The Board proposes that the dividend be paid in two instalments. The first dividend instalment, EUR 0.75 per share, is proposed to be paid to shareholders registered in the Company’s register of shareholders maintained by Euroclear Finland Oy on the record date for the first dividend instalment 14 April 2023. The Board proposes that the payment date for the first dividend instalment would be on 21April 2023. The second dividend instalment, EUR 0.75 per share, is proposed to be paid to shareholders registered in the Company's register of shareholders maintained by Euroclear Finland Oy on the record date for the second dividend instalment 26 October 2023. The Board proposes that the payment date for the second dividend instalment would be on 2 November 2023.

If the payment of the dividend is prevented due to applicable law, regulation or unexpected circumstances, the Board will resolve, as soon as practically possible, on a new record date and payment date. On the date of the dividend proposal, 2 February 2023, the registered number of the Company’s shares is 533,735,699. The aforementioned number of shares includes 411,653 treasury shares which are not entitled to dividend. As a result, the proposed dividend would total EUR 800.0 million. On 31 December 2022, the distributable funds of the parent company were EUR 2,415,624,457.82. The loss of the parent company for the period was EUR 189,734,449.30. No material changes have taken place in respect of the Company's financial position after the balance sheet date. In the opinion of the Board Of Directors, the proposed distribution of profits does not risk the solvency of the Company.

23.44

20.34

17.53

18.87

18.36

16.24

15.43

14.89

14.02

14.08

1.50 52.4 158

1.30 53.9

1.30

1.30 65.4

1.30 46.4

1.15 63.0

0.95 57.6

0.75 43.6

0.70 72.9

0.60 95.2

123.7

55 59

69 95

38 63

52 58

42 61

30 58

34 54

30 58

43 66

Effective dividend yield, %

4.3

3.9

4.3

4.2

5.9 7.9

4.4

4.1

4.4

5.1

4.9

P/E ratio

12.2 0.95 800

13.9 2.34 693

29.0 1.89 693

15.5 3.46 693

14.2 2.74 613

14.1 3.16 507

10.0 2.22 400

14.2 2.33 373

19.5 1.39 317

Operating cash flow per share, EUR

2.49 693

Dividend distribution, EURm 1) Share price at 31 Dec., EUR

34.93 24.85 37.14 32.50

33.46 29.11 35.37 32.15

30.47 20.31 31.50 26.09

30.91 21.10 31.49 25.73

22.15 21.69 34.70 28.86

25.91 20.82 26.69 23.89

23.34 13.71 23.41 17.51

17.23 13.19 19.26 16.37 9,192 7,469

13.62 10.07 13.99 12.26 7,266 6,233

12.28

Lowest quotation, EUR Highest quotation, EUR

7.30

13.02

Average quotation for the period, EUR

9.42

Market capitalisation, EURm

18,629 17,845 16,250 16,485 11,813 13,818 12,452

6,497 5,308

Shares traded, EURm 2) Shares traded (1,000)

9,680

8,435

9,921

9,695

9,980

8,460

6,749

297,879 262,377 380,237 376,801 345,822 354,053 385,355 456,168 508,318 563,382

Shares traded, % of all shares Number of shares, average (1,000)

55.9

49.2

71.3

70.7

64.8

66.4

72.2

85.5

95.6

106.7

533,324 533,324 533,324 533,324 533,324 533,415 533,505 533,505 531,574 527,818 533,736 533,736 533,736 533,736 533,736 533,736 533,736 533,736 533,736 529,302

Number of shares at the end of period (1,000)

of which treasury shares (1,000)

412

231

Signatures of the annual accounts and the report of the Board of Directors for the year 2022

1) 2022 proposal 2) Trading on the Nasdaq Helsinki M ain Market. Treasury shares bought by the company are included in shares traded.

Helsinki, 2 February 2023

The definitions of adjusted share related indicators are described below

SHARE RELATED INDICATORS

DEFINITION

Björn Wahlroos Chair

Henrik Ehrnrooth

Topi Manner

Profit for the period attributable to owners of the parent company divided by adjusted average number of shares during the period excluding treasury shares.

Earnings per share (EPS), EUR

Comparable EPS, EUR

Earnings per share calculated in accordance with IFRS excluding items affecting comparability and their tax impact.

Equity per share, EUR

Equity attributable to the owners of the parent company in relation to the adjusted number of shares at the end of period.

Emma FitzGerald

Jari Gustafsson

Piia-Noora Kauppi

Dividend per share, EUR

Dividend distribution divided by adjusted number of shares at the end of period.

Dividend to earnings ratio, %

Dividend per share as a percentage of earnings per share.

Dividend to operating cash flow, %

Dividend per share as a percentage of operating cash flow per share.

Dividend to comparable EPS, %

Dividend per share as a percentage of comparable earnings per share

Marjan Oudeman

Martin à Porta

Kim Wahl

Effective dividend yield, %

Adjusted dividend per share as a percentage of adjusted share price at 31.12.

P/E ratio

Adjusted share price in relation to the earnings per share.

Operating cash flow per share, EUR

Operating cash flow divided by adjusted average number of shares during the period excluding treasury shares.

Jussi Pesonen President and CEO

Market capitalisation, EURm

Total number of shares (excluding those held as treasury shares) multiplied by the share price at the end of period.

Adjusted share price at the end of period

Share price at the end of period in relation to share issue coefficient.

Adjusted average share price

Total value of shares traded in relation to adjusted number of shares traded during the period.