UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

Our strategic direction

KEY ENABLERS

PEOPLE We are committed to enabling performance, engaging peo ple and creating a safe working environment while always acting with integrity. Diversity and inclusion, working con ditions, learning and development, responsible leadership and our respect for people are at the core of our work. Our long-term goal is to ensure high performance and continu ous professional development. PRODUCTIVITY We focus on leveraging advanced technologies, sustainable practices and strategic initiatives to improve efficiency and performance across our operations. We are taking active measures to improve productivity to ensure the competitive ness of our businesses and support our growth ambitions.

COMMERCIAL EXCELLENCE We focus on optimising commercial interfaces and support ing processes to ensure security of supply and an enhanced customer experience for our customers. This is part of our continuous drive to maintain and grow earnings. We con centrate on recognising growth opportunities and identifying the best means for commercial success. SUSTAINABILITY The UPM Code of Conduct underlines our commitment to integrity and responsible operations. Our strategy guides us to achieve our 2030 sustainability targets and contribute to the UN Sustainable Development Goals (SDGs). We create value from renewable and recyclable materials, reduce our environmental footprint, and enhance our positive societal impact. INNOVATION Sustainability, circular economy and our customers are at the heart of innovation at UPM. We harness new ideas and develop new business and products from renewable raw materials that contribute to the ever-growing need for more sustainable materials. We innovate climate-positive products and turn them into growing businesses.

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 will provide us with several attractive growth opportunities in the coming years.

Our recent USD 3.47 billion investment in the pulp business platform in Uruguay has reached nominal capacity and it is expected to significantly contribute to our earnings. In the coming years, we will seek further earnings growth in advanced materials and decarbonisation solutions and strive to seize opportunities in growth geographies.

In our pursuit of growth, we will maintain our disciplined capital allocation principles. We will select opportunities that offer strong returns, supported by robust demand growth outlook and structural competitive advantages. At the same time, we will remain committed to predictable and attractive dividends, which may be comple mented with share buybacks.

We are committed to creating value for our customers, using sustainable, renewable feedstocks, reducing our own environmental footprint and enhancing our positive societal impact. We are among the global sustainabili ty leaders. We comply with international standards and are committed to respected global initiatives. We raise the bar through science-based action and verify the results with third-party when possible.

UPM STRATEGY: PERFORM TO GROW

PERFORM

SCALE

• Decarbonisation solutions: - Biofuels: restore profitability - Biochemicals: start-up of Leuna - Energy: extract full value from the energy portfolio • Advanced materials: - improve profitability levels and capture growth • Renewable fibres: - Finland: restore competitiveness - Uruguay: capture full potential in Uruguay • Communication papers: Best in class cash generation

• Decarbonisation solutions: Consider expansion in biofuels and biochemicals • Advanced materials: Organic growth and targeted long-term opportunities • Renewable fibres: Explore long-term growth options

Our top priority is to further improve competitiveness. With timely and targeted actions, we are setting ourselves up to capture the recovery and future growth in our product markets.

COMMERCIAL EXCELLENCE

INNOVATION

SUSTAINABILITY

PRODUCTIVITY

PEOPLE

KEY ENABLERS

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024