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

Non-controlling interests UPM has non-controlling interests mainly in Uruguay companies. Summarised financial information of Uruguay subsidiaries that have non controlling interests is presented in the following table. The amounts disclosed are before inter-company eliminations.

common defined contribution section which is open to all UPM employees in the UK. The group made contributions of EUR 0 million (0 million) to the defined benefit sections of the Scheme in 2024. The fair value of the UK defined benefit fund assets at 31 December 2024 was EUR 274 million (297 million), of which 18% was invested in equity instruments, 51% in debt instruments, 8% in property, 18% money market and 5% in other investments. 8.4 Assets held for sale No assets or liabilities were classified as held for sale at the end of 2024. Assets and liabilities classified as held for sale as at 31 December 2023 relate to agreement to sell 100% of the shares of Austrian subsidiary UPM-Kymmene Austria GmbH to the HEINZEL GROUP as announced in June 2022. The transaction comprises the UPM Steyrermühl site and the Steyrermühl sawmill operations. UPM Communication Papers ended the newspaper production at Steyrermühl paper mill in June 2023. On 2 January 2024, UPM announced that it has completed the sale.

HOLDING % 2024

HOLDING % 2023

COUNTRY OF INCORPORATION

SUBSIDIARIES

UPM Raflatac GmbH

DE ES US MX NZ

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00 —

100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 91.00

UPM Raflatac Iberica S.A.

UPM Raflatac Inc.

UPM Raflatac Mexico S.A. de C.V.

UPM Raflatac NZ Limited UPM Raflatac Oy UPM Raflatac Pty Ltd UPM Raflatac S.r.l. UPM Raflatac SAS UPM Raflatac Sdn.Bhd.

EURm

2024

2023

FI

Profit for the period

298

60

AU AR

Other comprehensive income for the period Total comprehensive income for the period

3

298

63

FR

Share of non-controlling interests

27

6

MY ZA

UPM Raflatac South Africa (Pty) Ltd

Non-current assets

3,632

3,449

UPM Raflatac Sp. z o .o.

PL

Current assets

965 270 132

712 121 188

UPM S.A.

UY

Non-current liabilities

UPM Sähkönsiirto Oy UPM Sales GmbH

FI

Current liabilities

DE

Net assets

4,195

3,852

UPM Sales Oy

FI FI

Share of non-controlling interests

378

347

UPM Specialty Papers Oy UPM Trading (Shanghai) Co UPM-Kymmene (Korea) Ltd

CN KO GB

Accounting policies

8.3 Related party transactions The Board of Directors and the Group Executive Team There have not been any material transactions between UPM and its members of the Board of Directors or the Group Executive Team (key management personnel) or persons closely associated with these members or organisations in which these individuals have control or significant influence. There are no loans granted to any members of the Board of Directors or the Group Executive Team at 31 December 2024 or 2023. For information concerning shares held by members of the Board of Directors as well as remuneration to members of the Board of Directors and the Group Executive Team are disclosed in » Note 3.2. Key management personnel. Associates and joint ventures Transactions with associates and joint ventures are presented in the table below. The group has no individually material associates or joint ventures.

UPM-Kymmene (UK) Ltd

Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell, if UPM will recover their carrying amount through a sale transaction which is considered highly probable. Non-current assets classified as held for sale, or included within a disposal group that is classified as held for sale, are not depreciated after the classification.

UPM-Kymmene Austria GmbH 2)

AT US IN

UPM-Kymmene Inc.

UPM-Kymmene India Private Limited

UPM-Kymmene Japan K.K.

JP

UPM-Kymmene Kagit Urunleri Sanayi ve Ticared Ltd. Sti.

TR EE

UPM-Kymmene Otepää OÜ

UPM-Kymmene S.r.l.

IT FI

UPM-Kymmene Seven Seas Oy

UPM-Kymmene Sp.z o.o.

PL

Uruwood S.A.

UY MT

93.55

93.55

Werla Insurance Company Ltd

100.00

100.00

Above list includes UPM's principal subsidiaries. 1) In 2024, UPM acquired Grafityp. » Refer to note 8.1. Business acquisitions and disposals. 2) Steyrermühl Sägewerksgesellschaft m.b.H. Nfg KG. and UPM-Kymmene Austria GmbH sold in 2024. » Refer to note 8.1. Business acquisitions and disposals.

EURm

2024 2023

HOLDING % 2024

HOLDING % 2023

COUNTRY OF INCORPORATION

JOINT OPERATIONS

Dividends received

2

2

Purchases of raw materials and services

28 13

37

Oy Alholmens Kraft Ab (Pohjolan Voima Oy, G series and direct ownership) EEVG Entsorgungs- und Energieverwertungsgesellschaft m.b.H. 1)

FI

50.00

50.00 50.00 50.00 54.00 76.00 71.95

Loan receivables

5

AT

Trade and other receivables Trade and other payables

1 4

Järvi-Suomen Voima Oy

FI FI FI FI

50.00 54.00 76.00 71.95 50.00

5

Kaukaan Voima Oy (Pohjolan Voima Oy, G9 series) Kymin Voima Oy (Pohjolan Voima Oy, G2 series) Rauman Biovoima Oy (Pohjolan Voima Oy, G4 series)

Subsidiaries and joint operations » Refer Note 8.2 Principal subsidiaries and joint operations.

Phyla UPM JVCO Limited 2)

GB

1) EEVG Entsorgungs- und Energieverwertungsgesellschaft m.b.H. sold in 2024 as part of sales of Steyrermühl mill and sawmill operations. 2) In 2024, UPM established a joint operation Phyla UPM JVCO Limited.

Pension Funds In the UK, the single UPM Pension Scheme operates under a Trust which is independent from the group. The Trust consists of various defined benefit sections, all of which are closed to future accrual and one

UPM FINANCIAL REPORT 2024

316

UPM FINANCIAL REPORT 2024

317

316

317

UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024

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