UPM Annual Report 2023

BEYOND FOSSILS

UPM

BUSINESSES

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2023

KEY FIGURES 2023

SALES BY MARKET

SALES 2023 EUR 10.5bn -11%

STRONG BALANCE SHEET

800m Dividend (proposal), EUR +0% ATTRACTIVE DIVIDEND

EUROPE 58%

ASIA 22%

NORTH AMERICA 14%

2,432m Net debt/EBITDA ratio 1.55 Net debt, EUR

REST OF THE WORLD 6%

PERFORMANCE

CASH FLOW

FOCUSED INVESTMENTS

Comparable EBIT, EUR Operating cash flow, EUR 1,013m 1,122m 2,269m Capital expenditure, EUR

AIMING FOR CONTINUOUS IMPROVEMENT

-52%

-28%

EUR 508 million

attractive returns with disciplined and effective investments

ACTIVE EMPLOYEES COMPLETED CODE OF CONDUCT TRAINING

3.7Mt FOSSIL CO 2 EMISSIONS (SCOPE 1 AND 2)

EMPLOYEE ENGAGEMENT SCORE

Comparable ROE 6.2% -7.8pp PERFORMANCE

and unused credit facilities, EUR 3.6bn CASH FUNDS

Business areas achieved their financial targets 3/6 BUSINESS AREAS

98%

70 +0 points

+1pp

-17%

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 2023 EUR 10,460 million

Comparable EBIT 2023 EUR 1,013 million 18%

Capital employed 31 Dec 2023 EUR 14,916 million

89% 87% 5.2

-1%

17%

13% 5%

4% 7%

6%

5% 5%

17%

10%

13%

UPM Communi cation Papers 31%

UPM Communi cation Papers 46%

UPM Fibres 46%

2% 8%

+1pp

+1pp

-12%

10%

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.

12%

27%

Unconsolidated

Other operations

UPM Plywood

UPM Communication Papers

UPM Fibres

UPM Specialty Papers

UPM Raflatac

UPM Energy

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UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023