UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Report of the Board of Directors

Sustainability Statement

Financial Statements

Auditor's Report

Sustainability Assurance Reports

118

Market environment in 2025

119

Results

123

Outlook for 2026

Report of the Board of Directors

124

Operations

133

Sustainability Statement 2025

250

Research and development

254

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. Our strong business portfolio in renewable fibres, advanced materials and decarbonization solutions provides several attractive growth opportunities. We will further improve competitiveness, increase capital efficiency, and strengthen our balance sheet. We will capture focused growth opportunities. Following recent investments, UPM has a strong asset base to capture market growth opportunities in a capital-efficient way. We aim to develop a portfolio of world-class businesses. 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 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

Outcomes

Group

Businesses

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

World-class businesses Competitive advantage Growth 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-driven 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 cooperation with our customers, suppliers and partners.

UPM FINANCIAL REPORT 2025

117

116

117

UPM Annual Report 2025

UPM Annual Report 2025