UPM Annual Report 2022

ACCOUNTS FOR 2022

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Global operations, strong market positions Our 17,200 people work in 44 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 • 12 factories and 24 slitting and distribution terminals in all continents Labelstock factories China: Changshu Finland: Tampere France: Nancy Germany : Hagenow and Kaltenkirchen 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 South Africa: Cape Town and Johannesburg South Korea: Suwon-Si Spain: Barcelona Thailand: Bangkok Turkey: Istanbul Ukraine: Kiev USA: Dallas, TX, Ontario, CA and Vancouver, WA Vietnam: Bien Hoa City

•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 (until the end of 2023) 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)

•High-end plywood and veneer products mainly for construction, vehicle flooring, LNG shipbuilding and parquet manufacturing as well as other industrial end uses • Active production capacity at the end of the year 805,000 cubic metres Plywood mills Estonia: UPM Otepää Finland: UPM Joensuu, UPM Pellos (3 mills, Ristiina, Mikkeli) and UPM Savonlinna Russia: UPM Chudovo (operations suspended)

Paper mills China: UPM Changshu

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

UPM FIBRES

UPM ENERGY

• A versatile range of chemical pulp for many growing end uses with annual production capacity of 5.8 million tonnes produced in Finland and in Uruguay •Annual capacities in tonnes by mills: UPM Paso de los Toros 2.1 million; UPM Fray Bentos 1.3 million; UPM Kymi 870,000 tonnes; UPM Pietarsaari 800,000 and UPM Kaukas 700,000 •504,800 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 generation in Finland consisting of hydro, nuclear and thermal power • The total electricity generation capacity is 1,471 MW, including UPM’s own hydropower plants and shareholdings in other energy companies •Approx. 31% share in the OL3 nuclear power plant unit through the shareholding in PVO • 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

Market position

High-quality office paper

segment in China #1

#1

High and mid segments in Europe

#1

LNG plywood globally

in Europe Market position #1

OTHER OPERATIONS

•UPM Forest: Purchasing wood and biomass in 17 countries, 522,000 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, glycols, 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 #3

Bleached market pulp globally

Biofuels Finland: UPM Lappeenranta Biorefinery

Biochemicals Germany: Biochemicals refinery, 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 2022

UPM ANNUAL REPORT 2022