UPM Annual Report 2023

ACCOUNTS FOR 2023

BEYOND FOSSILS

BUSINESSES

RESPONSIBILITY

GOVERNANCE

UPM

Global operations, strong market positions Our 16,600 people work in 43 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 paper and film products including label materials, graphics solutions and removable self-adhesive products label materials • 12 factories and 23 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 Canada: Toronto Chile: Santiago China: Guangzhou and Tianjin India: Bangalore and Navi Mumbai Indonesia: Jakarta Italy: Osnago México: Ciudad de México, Guadalajara and Rosarito New Zealand: Auckland South Africa: Cape Town and Johannesburg South Korea: Suwon-Si Slitting and distribution terminals Argentina: Buenos Aires Australia: Melbourne

•Magazine paper, newsprint and fine papers • Annual paper production capacity of 4.9 million tonnes, manufactured in 11 paper mills • Capacities: Annual production capacity of 2.4 million tonnes of magazine papers, 0.7 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 Finland: UPM Jämsänkoski (Jämsä), UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Rauma Germany: UPM Augsburg, UPM Ettringen, UPM Hürth, UPM Nordland Papier (Dörpen) 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 and LNG shipbuilding as well as other industrial end uses •Annual production capacity of 805,000 cubic metres Plywood mills Estonia: UPM Otepää Finland: UPM Joensuu, UPM Pellos 1, 2, 3 (Ristiina, Mikkeli) and UPM Savonlinna

Paper mills China: UPM Changshu

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

UPM FIBRES

UPM ENERGY

Veneer mill Finland: UPM Kalso (Vuohijärvi, Kouvola)

• 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 770,000 •474,000 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

• Cost competitive low-emission electricity generation in Finland consisting of hydro, nuclear and thermal power • The total electricity generation capacity is 1,951 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: Kallioinen (Sotkamo), Kaltimo (Joensuu), Katerma (Kuhmo), Keltti (Kouvola), Kuusankoski (Kouvola), Tyrvää (Sastamala), Voikkaa (Kouvola) and Äetsä

Market position

Labelling materials and release

liner base papers globally #1

Market position #1

High and mid segments in EMEA, LNG plywood globally

in Europe Market position #1

Pulp mills Finland: UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Pietarsaari

UPM BIOREFINING

•UPM Biofuels: Wood-based renewable diesel and naphtha with the annual production capacity of 130,000 t • UPM Biochemicals: Glycols, lignin products, 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 Biofuels Finland: UPM Lappeenranta Biorefinery (Lappeenranta)

Uruguay: UPM Fray Bentos, UPM Paso de los Toros and certified eucalyptus plantations Sawmills Finland: UPM Alholma (Pietarsaari), UPM Kaukas (Lappeenranta), UPM Korkeakoski (Juupajoki) and UPM Seikku (Pori)

Spain: Barcelona Thailand: Bangkok Turkey: Istanbul Ukraine: Kiev

in Finland Market position #2

USA: Vancouver, WA Vietnam: Bien Hoa City

Market position #3

#2 globally Market position

pulp globally

Biochemicals Germany: UPM Leuna Biorefinery (Leuna) (completed by the end of 2024)

Biomedicals Finland: Biomedicum research and educational centre, Helsinki and UPM Northern Europe Research Center (NERC), Lappeenranta

Biocomposites Finland: UPM Lahti Germany: UPM Bruchsal (Karlsruhe)

• UPM Forest: Purchasing wood and biomass in 15 countries, 523,000 ha of own forest land in Finland and 76,000 ha in the USA, offering forestry services to private forest owners in Finland OTHER OPERATIONS

Production plant Slitting and distribution terminal

Other business hubs Group Head Office

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UPM ANNUAL REPORT 2023

UPM ANNUAL REPORT 2023