UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Our strategy

UPM in brief

Our businesses

Sustainability

We increase our growth focus through a streamlined business portfolio

We act on three fronts

In addition to the strategic portfolio projects, we will further improve competitiveness, increase capital efficiency and strengthen the balance sheet. We will capture focused growth opportunities. Following recent investments, UPM has a strong asset base to capture market potential in a capital-efficient way. We aim to develop a portfolio of world-class businesses.

In late 2025, UPM announced two strategic portfolio projects: the intended graphic paper Joint Venture between UPM and Sappi; and the strategic review of UPM Plywood (see page 27). Assuming the Joint Venture is formed, UPM would have a stronger growth profile, improved margins and lower leverage. There would be no direct sales exposure to the declining European and North American graphic paper markets. This would mark the beginning of a new era in our transfor mation. A focused material solutions company with a strong track record of growth Assuming the Joint Venture is formed, the future UPM would have an attractive busi ness portfolio focusing on renewable fibres, advanced materials and decarbonization solutions, all of which operate in growing markets. Across these businesses, UPM has a solid history of achieving growth rates consistently exceeding GDP growth over the past decade. Through the graphic paper Joint Venture, UPM aims to position the UPM Communi cation Papers business to create continued value for its customers in a way that benefits UPM shareholders. The intended Joint Ven ture is expected to close by the end of 2026, subject to regulatory approvals and other closing conditions. UPM Plywood is currently undergoing a strategic review to assess options for maxi mizing the long-term potential and value cre ation of the business. The review is expected to be concluded by the end of 2026. Strategic portfolio projects expected to be concluded in 2026

Decarbonization solutions

Improve competitiveness 1

2 Focused growth

3 World-class businesses

Advanced materials

• Improve performance through cost efficiency, streamlining and commercial excellence • Increase capital efficiency and cash flow following recent investments • Strengthen the balance sheet

• Strong asset base enables growth with low investment needs • Growth markets and faster-growing geographies • Competitive production platforms

• Portfolio of leading businesses in growing markets • World-class performance in each business • Planned graphic paper Joint Venture • Strategic review of UPM Plywood

Y

G

Renewable fibres

R

E

N

E

E

E

R

Sustainable, renewable feedstocks

F

S I L

S

O

F

UPM businesses

Market growth

Key enablers

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Decarbonization solutions: Large long-term growth potential with unique solutions

People We focus on performance, engagement, safety and integrity. Diversi ty and inclusion, learning, responsible leadership, and respect are at the core of our work. We aim for sustained excellence and continu ous professional growth. Productivity We use advanced technologies, sustainable practices and strategic initiatives to improve efficiency and productivity. This ensures the competitiveness of our businesses and supports our growth ambi tions. Commercial excellence We optimize commercial interfaces and processes to ensure secu rity of supply and enhance the customer experience. This supports our ongoing efforts to sustain and grow earnings.

Sustainability The UPM Code of Conduct underlines our commitment to integrity and responsible operations. We create value from renewable and recyclable materials, reduce our environmental footprint, and en hance our positive societal impact. Innovation Sustainability, the circular economy, and our customers are at the heart of our innovation. We innovate new materials and solutions to help our customers’ businesses become more sustainable. We innovate to make our operations and processes more efficient. We innovate to increase our employees’ productivity.

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Advanced materials: Focused capital-efficient growth

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Renewable fibres: Maximizing value creation from the existing assets

Communication papers: Focus on cash flow Form a graphic paper Joint Venture

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UPM Annual Report 2025

UPM Annual Report 2025