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

1.5 Changes in accounting policies The Group has reviewed IFRS Accounting Standard amendments effective on periods starting January 1, 2025. The amendments as of January 1, 2025, did not have any impacts on the Group's financial statements. Amendments to IAS 21 - Lack of Exchangeability On January 1, 2025, the Group implemented the amendments to IAS 21 The effects of changes in foreign exchange rates. The Group has assessed the impact of implementation of amendments to IAS 21 and concluded that it has no effect on the Group financial statements as of January 1, 2025.

2. Business performance Sales

Comparable EBIT Comparable ROE

9,656 m

921 m

6.5 %

€

€

(€10,339m)

(€1,224m)

(8.3%)

2.1 Business areas UPM business portfolio consist of six competitive businesses with strong market positions. UPM reports financial information for the following business areas (segments): UPM Fibres, UPM Energy, UPM Adhesive Materials, UPM Specialty Papers, UPM Communication Papers, UPM Plywood and Other operations. UPM has production plants in 10 countries. The Group’s most important markets are Europe, North America and Asia.

Comparable EBIT, € million

600

400

200

0

Accounting policies

UPM business areas are reported consistently, with the internal reporting provided to UPM’s President and CEO who is responsible for allocating resources and assessing performance of the business areas. Internal reporting is prepared under the same basis as the consolidated accounts. Costs, revenues, assets and liabilities are allocated to business areas on a consistent basis. The sales transactions between business areas are based on market prices, and they are eliminated on consolidation.

UPM Fibres

UPM Energy

UPM Plywood

Other Operations

UPM Specialty Papers

UPM Adhesive Materials

UPM Communication Papers

2024 2025

Capital employed 31 Dec 2025 €14,129 million

Comparable ROCE, %

25

Other operations 23%

20

15

UPM Communication Papers 6% UPM Plywood 2%

10

UPM Fibres 45%

5

UPM Adhesive Materials 6% UPM Specialty Papers 5%

0

UPM Energy 17%

UPM Fibres

UPM Energy

UPM Plywood

UPM Specialty Papers

UPM Adhesive Materials

UPM Communication Papers

2024

2025

UPM Financial Report 2025

268

UPM Financial Report 2025

269

268

269

UPM Annual Report 2025

UPM Annual Report 2025