UPM Annual Report 2024

WE ARE UPM

GOVERNANCE

ACCOUNTS AND PERFORMANCE

Our strategy

Our businesses

Sustainability

Global operations, strong market positions

UPM FOREST UPM Forest secures competitive wood and biomass for UPM’s businesses and manages UPM-owned and privately owned forests in Northern Europe. UPM Forest also provides forestry services to forest owners, from private forest owners to forest investors. • Wood and biomass sourcing in 15 countries, 522,000 hectares of own forest land in Finland, offering forestry services to private forest owners in Finland UPM BIOMEDICALS UPM Biomedicals develops and supplies wood-based biomedical products for wound care, cell therapy and 3D bioprinting. The main ingredient of our high-quality products is nanocellulose, extracted from birch. • Wood-based biomedical products for medical and life science applications Finland: Biomedicum research and educational centre, Helsinki and UPM Northern Europe Research Center (NERC), Lappeenranta COMMUNICATION PAPERS UPM COMMUNICATION PAPERS UPM Communication Papers offers a wide range of magazine papers, newsprint and fine papers for advertising and publishing, as well as for home and office use. The business has extensive low-cost operations in Europe and the USA, a global sales network and an efficient logistics system. Its main customers are publishers, cataloguers, retailers, printers and merchants. • Annual paper production capacity of 4.3 million tonnes, produced in 10 paper mills • Capacities: Annual production capacity of 2.3 million tonnes of magazine papers, 0.5 million tonnes of newsprint and 1.5 million tonnes of fine papers • The combined heat and power (CHP) plants at the paper mill sites included in the business area • Owns 76,000 hectares of forest land in the USA Paper mills Finland: UPM Jämsänkoski (Jämsä), UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Rauma Germany: UPM Augsburg, UPM Ettringen, UPM Nordland Papier (Dörpen) and UPM Schongau United Kingdom: UPM Caledonian Paper (Irvine) USA: UPM Blandin (Grand Rapids, MN) Market position in Europe #1 OTHER OPERATIONS

UPM’s strong and balanced business portfolio in renewable fibres, advanced materials and decarbonisation solutions will provide us with a number of attractive growth opportunities in the coming years. With our head office in Finland, our main markets are in Europe, Asia and North America.

RENEWABLE FIBRES

ADVANCED MATERIALS

UPM FIBRES UPM Fibres consists of pulp and timber businesses. UPM Pulp offers a versatile range of pulp grades suitable for many end uses such as tissue, specialty papers, packaging papers, graphic papers and board. UPM Timber offers certified sawn timber for joinery, packaging, furniture, planing and construction. • The annual pulp production capacity of 5.8 million tonnes produced at two pulp mills in Uruguay and three pulp mills in Finland • Annual capacity in tonnes by mill: UPM Paso de los Toros 2.1 million tonnes; UPM Fray Bentos 1.3 million tonnes; UPM Kymi 870,000 tonnes; UPM Pietarsaari 800,000 tonnes and UPM Kaukas 700,000 tonnes • 492,000 hectares of owned and leased plantations in Uruguay • Certified sawn timber with an annual capacity of 1.4 million cubic metres, produced in four sawmills in Finland • UPM RaumaCell, annual capacity of 100,000 tonnes of fluff pulp, produced in Rauma, Finland

UPM RAFLATAC UPM Raflatac offers high-quality self-adhesive paper and film products, including label materials, graphic solutions and removable self-adhesive products. • 14 factories and 20 slitting and distribution terminals on all continents China: Changshu Finland: Tampere France: Nancy Germany: Hagenow and Kaltenkirchen Malaysia: Johor Poland: Kobierzyce (Wroclaw) and Nowa Wieś (Wroclaw) United Kingdom: Scarborough and Lancaster USA: Mills River, NC; Fletcher, NC and Dixon, IL China: Guangzhou India: Navi Mumbai Indonesia: Jakarta Italy: Osnago México: Ciudad de México, Guadalajara and Rosarito New Zealand: Auckland South Africa: Johannesburg South Korea: Suwon-Si Spain: Barcelona Thailand: Bangkok Turkey: Istanbul Ukraine: Kiev USA: Vancouver, WA Vietnam: Bien Hoa City Labelstock factories Belgium: Houthalen Slitting and distribution terminals Argentina: Buenos Aires Australia: Melbourne Canada: Toronto Chile: Santiago

UPM SPECIALTY PAPERS UPM Specialty Papers offers specialty packaging materials for flexible packaging, labelling and industrial release liners, as well as office and graphic papers in the Asia-Pacific region. • Total annual production capacity of 2.0 million tonnes

Paper mills China: UPM Changshu Finland: UPM Jämsänkoski (Jämsä) and UPM Tervasaari (Valkeakoski) Germany: UPM Nordland Papier (Dörpen)

DECARBONISATION SOLUTIONS

Market position

UPM ENERGY UPM Energy generates carbon-free electricity in its own and co-owned power plants. The business also trades electricity and its derivatives on the market and explores opportunities in energy transformation. UPM Energy is the second largest electricity producer in Finland. • The total electricity generation capacity is 1,951 MW, including UPM’s own hydropower plants and shareholdings in other energy companies • Approx. 31% share in the OL3 nuclear power plant unit through the shareholding in Pohjolan Voima Oyj (PVO) • Market flexibility and optimisation services • Largest shareholdings: – 49.8% of Pohjolan Voima Oy (PVO), which is the majority shareholder (58.5%) in Teollisuuden Voima Oyj (TVO) – 19% of Kemijoki Oy’s hydropower shares Hydropower plants: Finland: Kallioinen (Sotkamo), Kaltimo (Joensuu), Katerma (Kuhmo), Keltti (Kouvola), Kuusankoski (Kouvola), Tyrvää (Sastamala), Voikkaa (Kouvola) and Äetsä

UPM BIOREFINING UPM Biochemicals offers wood-based renewable biochemicals to replace fossil-based raw materials in various applications such as textiles, PET bottles, packaging, cosmetics, pharmaceuticals, detergents, rubbers and resins. UPM Biofuels produces wood-based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in the petrochemical industry. • UPM Leuna Biorefinery: Annual production capacity of 220,000 tonnes of wood-based, renewable glycols, renewable functional fillers and industrial sugars • UPM Lappeenranta Biorefinery: Annual production capacity of 130,000 tonnes of wood-based renewable diesel and naphtha Biorefineries Germany: UPM Leuna Biorefinery (commercial production to start in H2 2025) Finland: UPM Lappeenranta Biorefinery

Labelling materials and release

liner base papers globally #1

UPM PLYWOOD UPM Plywood offers high-quality WISA ® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. • Annual production capacity of 805,000 cubic metres Plywood mills Estonia: UPM Otepää Finland: UPM Joensuu, UPM Pellos 1, 2, 3 (Mikkeli) and UPM Savonlinna

Pulp mills Finland: UPM Kaukas (Lappeenranta), UPM Kymi (Kouvola) and UPM Pietarsaari

Uruguay: UPM Fray Bentos, UPM Paso de los Toros and certified eucalyptus plantations

Sawmills Finland: UPM Alholma (Pietarsaari), UPM Kaukas (Lappeenranta), UPM Korkeakoski (Juupajoki) and UPM Seikku (Pori)

Veneer mill Finland: UPM Kalso (Kouvola)

Market position

pulp globally #3

Market position

High and mid segments in EMEA #1 LNG plywood globally #1

Market position

#2 globally

Market position

in Finland #2

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UPM ANNUAL REPORT 2024

UPM ANNUAL REPORT 2024