UPM Annual Report 2023

ACCOUNTS FOR 2023

UPM

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

Electricity business According to Electricity Market Act (588/2013), company is required to unbundle electricity business from other operations if the size of the electricity business is not considered minor. The Decree on the unbundling of electricity business of the Ministry of Economic Affairs and Employment of Finland (TEM 1305/2019) states that electricity business is not considered minor if the revenue exceeds 500 thousand euros. Electricity business refers to production and sales of electricity. The

electricity business of the parent entity exceeds the minimum requirement, therefore, the mentioned requirement is applicable to the company. Accounting policies The unbundled financial statement of electricity business is prepared in accordance with Electricity Market Act. Transactions and balance sheet items are recorded to income statement and balance sheet in accordance with the cause-and-effect principle. The transactions and balance sheet items which are not directly derived from the electricity business, are allocated based on the size of the business.

SUBSIDIARIES

COUNTRY OF INCORPORATION HOLDING %

UPM Communication Papers Oy

FI FI

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 27.80

UPM Energy Oy

UPM Kft.

HU

UPM Manufatura e Comércio de Produtos Florestais Ltda.

BR BE EE

UPM NV UPM OÜ

UPM Plywood Oy

FI FI FI

UPM Pulp Oy

UPM Pulp Sales Oy

UPM Raflatac Canada Holdings Inc.

CA NZ

Income statement EURm

UPM Raflatac NZ Limited

2023

2022

UPM Raflatac Oy UPM Raflatac S.r.l. UPM Romania S.R.L UPM Silvesta Oy

FI

Sales

11

40

AR RO

Other operating income

6

2

Materials and services Raw materials and consumables purchased

FI FI

-16 -16

-10 -10

UPM Specialty Papers Oy UPM Wood Materials (UK) Ltd

UK AT

Personnel expenses Salaries and fees

UPM Wood Materials Austria GmbH

—

—

UPM-Kymmene (HK) Ltd. UPM-Kymmene (Korea) Ltd

CN/HK

Indirect employee costs Pension costs

KR UK DK SE NL DE FR DE GR IN US SI

— — —

— — —

UPM-Kymmene (UK) Holdings Limited

Other indirect employee costs

UPM-Kymmene A/S UPM-Kymmene AB UPM-Kymmene B.V.

Depreciation, amortisation and impairment charges Depreciation and amortisation

-1

-1

UPM-Kymmene Beteiligungs GmbH

UPM-Kymmene d.o.o.

Other operating expenses Operating profit (loss)

-2 -3

-1

UPM-Kymmene Groupe S.A.

29

UPM-Kymmene Grundstücksverwaltung GmbH

UPM-Kymmene Hellas Ltd

Profit (loss) before closing entries and tax

-3

29

UPM-Kymmene India Private Limited UPM-Kymmene Investment Inc.

Closing entries Depreciation difference

1

1

UPM-Kymmene Japan K.K. UPM-Kymmene Pty Limited

JP

Income taxes

—

-6

AU

Profit (Loss) for the period

-2

24

UPM-Kymmene S.A. UPM-Kymmene S.r.l. UPM-Kymmene s.r.o.

ES

IT

CZ

UPM-Kymmene Seven Seas Oy UPM-Kymmene Slovakia s.r.o. Werla Insurance Company Ltd

FI

SK MT

PARTICIPATING INTEREST COMPANIES

COUNTRY OF INCORPORATION HOLDING %

Kiinteistö Oy Joutsan Rantatie 3

FI FI FI FI FI FI

25.43 23.95 38.65 33.33 28.41 34.32

Metsäteho Oy

Oy Keskuslaboratorio - Centrallaboratorium Ab

Perkaus Oy

Rönnäsin Kiinteistöhuolto Oy

Steveco Oy

Group subsidiaries and joint operations are disclosed in » Note 8.2.

234

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UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023

UPM FINANCIAL REPORT 2023

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UPM FINANCIAL REPORT 2023

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