UPM Annual Report 2023

BUSINESSES

UPM

BEYOND FOSSILS

RESPONSIBILITY

GOVERNANCE

ACCOUNTS FOR 2023

Sakari Röyskö / Helsinki Music Centre Foundation

ADVANCING INNOVATIONS UPM BIOREFINING - UPM BIOMEDICALS

BEST IN CLASS UPM BIOREFINING - UPM BIOCOMPOSITES

UPM Biomedicals is at the forefront of innovation, with a particular focus on sustainable biomaterials for life science and clinical applications.

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.

to Cellink and signed a distribution agreement for GrowInk™ bioinks with Brinter. GrowInk™ is a range of bioinks for 3D bioprinting used in areas such as 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 transplanted into patients. In the clinical field , many Finnish healthcare professionals and hospitals in the Nordic countries already use our CE marked FibDex ® wound dressings for skin graft donor sites. The one-time applicable products were also successfully piloted with good wound healing results in selected university hospitals in Germany. In 2023, we started the clinical investigation for superficial dermal burns at Uppsala Univer sity Hospital in Sweden.

rials. The composite materials are suitable for various end uses, including kitchenware, personal care and acoustic devices. Prod ucts comply with food safety standards and other similar quality requirements. In 2023, the new organ's facade pipes are made of wood-based UPM Formi 3D biocomposite at the Helsinki Music Centre (page 61). As an example of material efficiency, we introduced new trays made of UPM Formi composite to Finnish ABC service stations (page 98). In 2023, the European Food Safety Authority re-evaluated the safety of wood-based fibres in contact with food and made its criteria more stringent. UPM takes the safety of its products seriously and is compliant with the updated regulatory requirements.

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. In life sciences , our main products are GrowDex ® , a range of hydrogels for 3D cell culturing, GrowInk™ a range of bioinks for 3D bioprinting and GrowDase™, an enzyme to re lease living cells from the gel. The nanocellu lose ensures excellent compatibility with even the most demanding cells, such as stem cells and patient-derived cells. We also continued to study the use of GrowDex ® in a cell-based model of a liver. Liver models are used to test the toxicity of almost every new pharmaceu tical candidate. The mini-livers and other mi ni-organs are grown in our own cell laboratory in Helsinki. In 2023, we opened a new sales office and cell laboratory in Basel, Switzerland. In 2023, we continued to supply nanocellulose

to Germany where the composite 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. Demand for UPM ProFi products declined in 2023, with consumer and renovation/construction uncertainty being reflected in sales. At the same time, competi tion in the main markets intensified owing to imports from outside Europe. A storm in Au gust broke the roof of the Bruchsal mill, and production did not restart until November. UPM Formi creates and manufactures wood-based biocomposites, enabling the carbon footprint of the end product to be reduced by up to 80% compared with simi lar products made from fossil-based mate

PLANNED ACTIONS FOR 2024 • Scale up the GrowDex ® business • Continue to scale up the technology for cell-based liver models in collaboration with AstraZeneca and the Karolinska Institute in Sweden (two-year trial) • Continue geographic expansion of the FibDex ® business • Continue clinical investigation on patients with superficial dermal burns • Develop a medical grade hydrogel for new clinical applications

PLANNED ACTIONS FOR 2024 • Raise awareness of the unique UPM ProFi recycling-based and UPM Formi fossil substituting solutions • Continue to focus on cost efficiency and competitiveness • Grow with UPM Formi in chosen end-uses • Seek new customers for UPM ProFi decking solutions in the main central European markets • Continue actions to reduce carbon footprint in raw materials, energy consumption and logistics

UPM ProFi uses European post-consumer 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 being collected and delivered

UPM Biomedicals develops and supplies in novative and sustainable wood-based prod ucts for medical and life science applica tions. The main component in our products is nanocellulose, 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 2023

UPM ANNUAL REPORT 2023