UPM Annual Report 2025

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Governance

Accounts and performance

Financial Statements

Report of the Board of Directors

Sustainability Statement

Auditor's Report

Sustainability Assurance Reports

Consolidated statement of changes in equity

Consolidated cash flow statement

€ million

2025

2024

Reserve for invested non restricted equity

Equity attributable to owners of the parent company

Cash flows from operating activities Profit for the period

Trans lation reserve

491 743

463

Share capital

Treasury shares

Other reserves

Retained earnings

Non-controlling interests

Total equity

Adjustments 1) Interest received

€ million

1,223

19

31

Value at January 1, 2025

890

-2

657

1,678

1,273

6,644

11,139

401

11,540

-126

-133

Interest paid

Profit for the period

— —

— —

—

— —

— —

480

480

11

491

Dividends received

8

4

Translation differences

-679

—

-679

-45

-724

Other financial items, net

-24 -96 391

-13

Cash flow hedges - reclassified to income statement, net of tax Cash flow hedges - change in fair value, net of tax Net investment hedge, net of tax Financial assets at FVOCI - changes in fair value, net of tax Actuarial gains and losses on defined benefit plans, net of tax Total comprehensive income for the period Share-based payments, net of tax Acquisition of treasury shares Cancellation of treasury shares

—

—

—

-68

—

—

-68

—

-68

Income taxes paid 3)

-144

Change in working capital 2)

-80

— —

— —

—

106

— —

— —

106

— —

106

Operating cash flow

1,405

1,352

37

—

37

37

Cash flows from investing activities Capital expenditure

—

—

—

-87

—

—

-87

—

-87

-364 -64 -124

-543

—

—

—

—

—

31

31

—

31

Additions to forest assets

-53 -28

Acquisition of businesses and subsidiaries, net of cash acquired

— — — —

— —

-642

-49

— — — —

511

-180

-34

-214

Proceeds from sale of property, plant and equipment and intangible assets, net of tax 3)

84 20

10 19 16

— — —

-7

3

-4

— — —

-4

Proceeds from sale of forest assets, net of tax 3)

-160

— —

—

-160

-160

— — 0

Proceeds from disposal of businesses and subsidiaries and advances received Proceeds from disposal of shares in associates and joint ventures

160

-160

—

—

1

Dividend distribution Return of capital to non controlling interests

—

—

—

—

—

-792

-792

-23

-816

Proceeds from disposal of financial assets at FVOCI

5

Net cash flows from net investment hedges

20

-1

— —

— —

— —

— —

— —

— -1

— -1

-8

-8

0

-10

Change in other non-current assets

Other items

—

-1

Investing cash flow

-428

-586

Acquisition of shares from non controlling interests Total transactions with owners for the period Total equity at December 31, 2025

—

—

—

—

—

—

—

-2

-2

Cash flows from financing activities Proceeds from non-current debt

—

—

—

-7

—

-950

-957

-34

-991

65

600

Payments of non-current debt

-148 -112

-23

890

-2

15

1,622

1,273

6,205

10,001

333

10,335

Lease repayments

-105 -182

Change in current liabilities Net cash flows from derivatives Acquisition of treasury shares

32 14

Value at January 1, 2024

890

-2

347

1,655

1,273

6,998

11,161

370

11,531

-5

Profit for the period

— —

— —

—

— —

— —

436

436 322

27 23

463 346

-160 -792

—

Translation differences

322

—

Dividends paid to owners of the parent company Dividends paid to non-controlling interests Return of capital to non-controlling interest

-801

Cash flow hedges - reclassified to income statement, net of tax Cash flow hedges - change in fair value, net of tax Net investment hedge, net of tax Financial assets at FVOCI - changes in fair value, net of tax Actuarial gains and losses on defined benefit plans, net of tax Total comprehensive income for the period Share-based payments, net of tax

-23

-19

—

—

—

6

—

—

6

—

6

-8

—

Other financing cash flow

-1

-10

— —

— —

—

72

— —

— —

72

— —

72

Financing cash flow

-1,135

-544

-13

—

-13

-13

—

—

—

-51

—

4

-47

—

-47

Change in cash and cash equivalents

-158

222

—

—

—

—

—

4

4

—

4

Cash and cash equivalents at the beginning of the period Exchange rate effect on cash and cash equivalents

892

632

-19

-2

— — — —

— — — —

309

27 -4

— — — —

444

781

50

831

Change in cash and cash equivalents

-158

222

— — —

2

-2

—

-2

Cash and cash equivalents classified as held for sale (Note 8.1) Cash and cash equivalents at the end of the period

—

39

Dividend distribution

— —

-800

-800

-19

-819

715

892

-1

-1

—

-1

Other items

Total transactions with owners for the period Total equity at December 31, 2024

—

—

—

-4

—

-799

-803

-19

-822

890

-2

657

1,678

1,273

6,644

11,139

401

11,540

Refer to » Note 5.5 Share capital and reserves , for further information.

UPM Financial Report 2025

262

UPM Financial Report 2025

263

262

263

UPM Annual Report 2025

UPM Annual Report 2025