UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Report of the Board of Directors

Sustainability Statement

Financial Statements

Auditor's Report

Sustainability Assurance Reports

Report of the Board of Directors

112 113 115 116 125 246 250

Market environment in 2024

Results

Outlook for 2025

Operations

Sustainability Statement 2024 Research and development

Information on shares

UPM introduction and business model We are a material solutions company and provide renewable alternatives to fossil-based materials used in everyday life. We seek profitable, sustainable growth through performance and capitalising on our major investments. Our strong and balanced business portfolio in renewable fibres, advanced materials and decarbonisation solutions provides us with several attractive growth opportunities. Our innovative products enable customers and consumers to make more sustainable choices. We are committed to creating value for our customers, using sustainable, renewable feedstocks, reducing our own environmental footprint and enhancing our positive societal impact. Our leading position in sustainability is based on world-leading standards, commitment to respected global initiatives and third-party verification.

UPM builds on corporate synergies, adding value to the businesses and stakeholders with: • Competitive and sustainable wood sourcing, forestry and plantation operations • Efficient and responsible global functions • Technology development and intellectual property rights • Global business platform • Disciplined and effective capital allocation • Compliance, UPM Code of Conduct and strong UPM brand

Clear roles and responsibilities Group

Businesses

Outcomes

Portfolio strategy Capital allocation Business targets Code of Conduct Sustainability targets

Business area strategies Commercial excellence Operational excellence Cost competitiveness Preparation and implementation of projects Innovation

Top performance Competitive advantage Value creation Stakeholder and societal value License to operate

Our businesses in various parts of the bio and forest industry value chain operate as separate market-facing entities, both in terms of customers and suppliers. This enables agility in a fast-changing business environment, higher efficiency, differentiated commercial strategies, optimal sourcing, the right incentives, wider product development opportunities and effective capital allocation.

The UPM Code of Conduct underlines our commitment to business integrity and responsible business operations and manifests the company’s guiding principles. We promote responsible practices throughout the value chain and are active in finding sustainable solutions, in co-operation with our customers, suppliers and partners.

UPM FINANCIAL REPORT 2024

111

110

111

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024