UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

Our performance in 2024

SALES BY MARKET

6%

”We are confident in our ability to create value from our broad portfolio of attractive businesses and our recent large investments.”

SALES EUR 10.3bn -1%

800 Dividend (proposal), EURm +0% ATTRACTIVE DIVIDEND

2,869 Net debt/EBITDA ratio 1.66 Net debt, EURm STRONG BALANCE SHEET

15%

54% EUROPE

Europe Asia North America Rest of the world

25%

Comparable EBIT, EURm 1,224 +21% PERFORMANCE

Capital expenditure, EURm 550 attractive returns with disciplined and effective investments FOCUSED INVESTMENTS

and unused credit facilities, EUR 3.2bn CASH FUNDS

AIMING FOR CONTINUOUS IMPROVEMENT

Comparable ROE 8.3 +2.1pp PERFORMANCE

Operating cash flow, EURm 1,352 EUR 2.269 million CASH FLOW

Business areas achieved their financial targets 3/6 BUSINESS AREAS

99% The UPM Code of Conduct lays the foundation for responsible business operations and continuous improvement. +1pp ACTIVE EMPLOYEES COMPLETED CODE OF CONDUCT TRAINING *

EMPLOYEE ENGAGEMENT SCORE

3.4Mt Creating climate solutions and working towards carbon neutrality. -9% FOSSIL CO 2 EMISSIONS (SCOPE 1 AND 2)

70

Engaged, high-performing people drive our success. +0 points

Sales 2024 EUR 10,339 million

Comparable EBIT 2024 EUR 1,224 million

Capital employed 31 Dec 2024 EUR 15,452 million

SHARE OF SPEND COVERED BY OUR SUPPLIER CODE

88.5% SHARE OF CERTIFIED WOOD

TOTAL RECORDABLE INJURY FREQUENCY

4% 5%

EUR 181m

14% 6%

EUR 42m

16%

18%

91%

5.1

5% 5%

2% 7%

EUR 132m

EUR 273m

UPM Fibres 48%

UPM Fibres 33%

UPM Fibres EUR 533m

13%

26%

EUR 135m

+1.5pp

Ensuring a safe working environment for employees and everyone working for UPM. -0%

+2pp

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.

Unconsolidated

Other operations: EUR -52m

Other operations

UPM Plywood

UPM Communication Papers

UPM Fibres

UPM Specialty Papers

UPM Raflatac

UPM Energy

* excl. UPM Raflatac companies acquired in 2024.

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024