UPM Annual Report 2025

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Accounting Policy UPM consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted by the EU and IFRIC Interpretations. UPM has calculated the KPIs using the financial information presented in the Group consolidated financial statements 2025. In determining the eligible and aligned turnover, any specific fragments of production inputs, such as the use of sustainable raw material or energy, have not been included in the eligible turnover if the main activity is not included in the Taxonomy. However, for activities that are used both internally and, to some extent, to generate external turnover, the CapEx and OpEx are not split in relation to internal and external use but fully allocated to economic activity that leads to revenue. The definitions of CapEx and OpEx key performance indicators are based on definitions set out in the Disclosures Delegated Act. A clear reporting structure prevents double counting and ensures that turnover, CapEx, and OpEx related to assets or processes associated with Taxonomy aligned economic activities are counted only once. Whenever an individual investment is considered Taxonomy-aligned, this proportion of CapEx is not further allocated to a Taxonomy-aligned economic activity, to avoid double counting. Similarly, OpEx related to purchased outputs that are already considered under OpEx associated with Taxonomy aligned activities is not further counted. The Group has no economic activities contributing to multiple climate or environmental objectives. Turnover UPM has calculated turnover, as defined in the Disclosures Delegated Act, based on the same accounting principles that apply for revenue in IFRS Accounting Standards, i.e., covering all amounts derived from the sale of products and services during ordinary activities. Total turnover corresponds to total sales as reported in the Group consolidated financial statements. Refer to » Note 2.2. Sales in the consolidated financial statements, Accounting policies. Taxonomy-eligible and -aligned turnover includes only revenue from sales of products and services generated from activities that are included in the Taxonomy. In 2025, the numerator of the turnover KPI is defined as the turnover derived from products and services associated with Taxonomy-aligned economic activities: 3.6 “Manufacture of other low-carbon technologies” generates turnover from the sale of products of the new biorefinery in Leuna, Germany, as it started its first customer deliveries in late 2025. 4.5. “Electricity generation from hydropower” generates turnover from the sale of electricity generated by UPM's own or co-owned hydropower plants. 4.13. “Manufacture of biogas and biofuels for use in transport” generates turnover on sale of wood-based renewable diesel and naphtha for transport and petrochemicals. 4.27. "Construction and safe operation of new nuclear power plants" generates turnover from UPM's electricity sales to external customers related to nuclear power plant Olkiluoto 3. 4.28. "Electricity generation from nuclear energy in existing installations" generates turnover from UPM's electricity sales to external customers related to nuclear power plant Olkiluoto 1 and 2. Turnover from sale of wood and wood-based biomass such as logs, pulpwood and forest residues from UPM's own and leased forests to third party customers and sale of forestry services to private forest owners (1.3. “Forest management”) is Taxonomy-eligible but not Taxonomy-aligned.

CapEx UPM has included in CapEx, as defined in the Disclosures Delegated Act, additions to tangible and intangible assets, before any depreciation, impairments, amortization charges, and fair valuations during the financial year, as accounted for in accordance with IAS 16 Property, Plant and Equipment, IAS 38 Intangible assets, IAS 41 Agriculture and IFRS 16 Leases. CapEx corresponds to cash payments to acquire fixed and forest assets in the Consolidated cash flow statement adjusted with amounts accrued but not paid at the end of the reporting period. CapEx includes also acquisition of businesses and subsidiaries, excluding goodwill, and additions to leased assets. Refer to » line items Capital expenditure, Additions to forest assets and Acquisition of businesses and subsidiaries, net of cash acquired in consolidated cash flow statement, and Leases in Note 5.2. Net debt in the consolidated financial statements. Capital expenditure presented in the UPM Annual Report under » Other financial information differs from Taxonomy-CapEx as it excludes additions to forest assets and leased assets and includes investments in shares and goodwill acquired in business acquisitions. In 2025, the numerator consists of the following categories of Taxonomy-aligned CapEx: 3.6 “Manufacture of other low-carbon technologies” CapEx relates to investment in the new-generation biorefinery in Leuna, Germany. UPM is reporting all CapEx related to ongoing investment in new-generation biorefinery as Taxonomy-aligned CapEx. In reporting year 2024, UPM interpreted the Leuna investment as a Capex plan (1.1.2.2. (b) of Annex I) instead of capital expenditure relating to assets or processes already associated to environmentally sustainable economic activities, as the Leuna biorefinery was not yet in operational stage. In 2025, the Leuna biorefinery produced its first commercial products and thus reporting of its Taxonomy-eligible and -aligned Turnover was initiated. Therefore, in 2025, UPM reported the Leuna investment as capital expenditure instead of CapEx plan. The Leuna biorefinery is expected to reach full production in 2027 and total CapEx for the investment is estimated to be €1,335 million. 4.5. “Electricity generation from hydropower” CapEx includes refurbishment of hydropower plants. 4.13. “Manufacture of biogas and biofuels for use in transport” CapEx includes refurbishment of Lappeenranta biorefinery. CapEx related to investments on purchased and leased land for afforestation (1.1. “Afforestation”), and capitalized forest regeneration costs such as planting, growing of seedlings and operation of nurseries, (1.3. “Forest management”) is Taxonomy-eligible but not Taxonomy aligned. UPM is not reporting any CapEx related to the nuclear activities “4.27 "Construction and safe operation of new nuclear power plants" and 4.28 "Electricity generation from nuclear energy in existing installations", as due to the nature of its shareholding ownership in PVO, investments related to nuclear are not included in the total UPM's Capital expenditure as presented in the UPM Annual Report, Refer to » Note 4.3 Financial assets at FVOCI in the consolidated financial statements.

OpEx UPM has included in OpEx, as defined in the Disclosures Delegated Act, research and development costs as accounted for in accordance IAS 38 Intangible assets, short-term lease expenses as accounted for in accordance IFRS 16 Leases, and costs of day-to-day servicing (i.e., repairs and maintenance) of property, plant, and equipment as accounted for in accordance IAS 16. Costs of day-to-day servicing of property, plant, and equipment include direct salaries of maintenance personnel, maintenance materials, and maintenance services outsourced. In addition, as UPM owns a significant amount of forest assets, it considers forest management and support services as day-to-day servicing of assets as defined in the EU Disclosures Delegated Act. OpEx is included in the consolidated income statement line item Costs and expenses, Refer to » Note 2.3. Operating expenses and other operating income in the consolidated financial statements. In 2025, the numerator consists of the following categories of Taxonomy aligned OpEx: 3.6. “Manufacture of other low-carbon technologies” includes maintenance and R&D costs related to biochemicals biorefinery. 4.5. “Electricity generation from hydropower” OpEx includes maintenance costs of hydropower plants. 4.13. “Manufacture of biogas and biofuels for use in transport” OpEx includes maintenance costs of biofuels production facility in Lappeenranta and next generation biofuels refinery R&D costs. 4.27 "Construction and safe operation of new nuclear power plants" includes UPM's share of day-to-day servicing costs related to property, plant, and equipment in Olkiluoto 3. 4.28 "Electricity generation from nuclear energy in existing installations" includes UPM's share of day-to-day servicing costs related to property, plant, and equipment in Olkiluoto 1 and 2. OpEx related to forestry infrastructure maintenance, forest fire fighting, protection, and environmental activities (1.3. “Forest management”) is Taxonomy-eligible but not Taxonomy-aligned.

UPM Financial Report 2025

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UPM Financial Report 2025

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UPM Annual Report 2025

UPM Annual Report 2025