UPM Annual Report 2022

BUSINESSES

UPM

BEYOND FOSSILS

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2022

ADVANCING INNOVATIONS UPM BIOREFINING - UPM BIOMEDICALS UPM Biomedicals is at the forefront of innovation and commercialisation, with a particular focus on life science and clinical applications.

THE BEST IN CLASS UPM BIOREFINING - UPM BIOCOMPOSITES UPM Biocomposites is creating circular economy solutions through the manufacture of innovative composite materials and decking products. The materials are based on our own R&D.

ing, to support our customers and product development team. GrowInk™ is a range of bioinks for 3D bi oprinting, used in areas like cancer research, where models of tumours can be printed to test their response to different treatments. The ultimate goal is to print organs or tissues that could, in the future, be trans planted into patients. In 2022, we continued to supply nanocellulose to Cellink. In the clinical field , many Finnish healthcare professionals and hospitals already use our CE-marked FibDex® wound dressings. The products are also being pi loted in selected university hospitals in the Nordic countries and in Germany. In 2022, we launched a new clinical investigation for superficial dermal burns led by experienced plastic surgeons in the university hospitals of Uppsala and Linköping in Sweden.

similar products made from fossil-based materials. The composite materials are suitable for various end uses, including kitchenware, personal care and acous tic devices. Products comply with food safety standards and other similar quality requirements. Business growth continued in 2022 with our customers launching new products on the market, from storage boxes to design objects. Together with new and existing cus tomers, we developed and piloted new end-use areas for the material. Commercial interest was reflected in the strong demand for almost 100% biobased UPM Formi EcoAce.

We actively collaborate with universi ties, research centres and key industrial partners in the fields of high-throughput drug screening, personalised medicine, cell therapies, 3D bioprinting, tissue engineer ing and advanced wound care. More than 520 patents and patent applications protect our existing and future products. In life sciences , our main products are GrowDex®, a range of hydrogels for 3D cell culturing, and GrowDase™, an enzyme to release living cells from the gel. The nano cellulose ensures excellent compatibility with even the most demanding cells, such as stem cells and patient-derived cells. In 2022, we completed a pilot study of GrowDex use in a cell-based model of a liver. Liver models are used in testing the toxicity of almost every new pharmaceuti cal candidate. We also opened UPM's own cell laboratory, where the first mini-livers and other mini-organs are currently grow

posite decking is manufactured. The UPM ProFi Piazza product range is made with up to 75% recycled materials and offers best-in-class performance. We are a member of the EU Circular Plastics Alliance, which aims to increase the EU market for recycled plastics to 10 million tonnes by 2025. In 2022, the end of the COVID-19 pandemic lockdowns and the uncertainty surrounding construction, as well as contin ued consumer uncertainty, were reflected in UPM ProFi’s sales. However, we man aged to increase market shares in Central Europe, where we stand out thanks to the responsibility and recyclability of our locally produced products. The UPM ProFi Piazza product range was expanded. UPM Formi creates and manufactures wood-based biocomposites, enabling a re duction in the carbon footprint of the end product by up to 80% when compared to

PLANNED ACTIONS FOR 2023 • Compliance with the Medical Device Regulation (MDR) in the EU and alignment with the Food and Drug Administration (FDA) regulations in the USA • Extend indication areas of FibDex® wound dressing • Scale up and transfer the technology for cell-based liver models in pharma in collaboration with the Karolinska Institute, Sweden (two-year trial)

PLANNED ACTIONS FOR 2023 • Raise awareness of the unique UPM ProFi recycling and UPM Formi fossil substituting cases • Continue to focus on effectiveness • Grow with UPM Formi in chosen end-use areas • Gain market share with UPM ProFi best-in class decking solutions • Continue actions to reduce our carbon footprint in business-related value chains

UPM ProFi utilises European post-con sumer plastic waste and post-industrial label waste to manufacture high quality composite decking. The label production side streams come from UPM Raflatac and its customers, with the waste collected and delivered to Germany where the com

UPM Biomedicals develops and supplies innovative and sustainable wood-based biomedical products for medical and life science applications. The main component in our products is high-quality nanocellu lose, refined from birch wood. All products are animal-free.

www.upmprofi.com www.upmformi.com

www.upmbiomedicals.com

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UPM ANNUAL REPORT 2022

UPM ANNUAL REPORT 2022