UPM Annual Report 2025

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Business area information for the year ended December 31, 2024

Items affecting comparability

In 2024, items affecting comparability included €373 million impairment on assets in Biochemicals refinery in Leuna, €5 million impairment of UPM Biochemicals goodwill, and €113 million impairment of Pulp operations Finland goodwill. Other items affecting comparability included €10 million restructuring charges and €26 million impairment charges of fixed assets related to closure of UPM Adhesive Materials' Kaltenkirchen factory in Germany, €40 million of restructuring and impairment charges related to the closure of Hürth newsprint mill in Germany, €54 million restructuring and impairment charges related to the closure of Nordland fine paper machine 3 in Germany, €4 million write down of inventory at the UPM Adhesive Materials' mill, located in Western North Carolina, U.S., which was impacted by Hurricane Helene, €12 million restructuring and impairment charges related to the closure of the UPM Biocomposites business, a €21 million capital gain on the sale of UPM Kymmene Austria GmbH to HEINZEL GROUP, €9 million capital gain on the sale of other non-current assets, €12 million other restructuring costs and €8 million restructuring costs related to prior capacity closures.

Eliminati ons and reconcili ations 2)

€ million

2025

2024

UPM Adhesive Materials

UPM Specialty papers

In operating profit Impairment charges

UPM Energy

UPM Com papers

UPM Plywood

Other operations

€ million, or as indicated

UPM Fibres

Group

-59

-549

External sales Internal sales

3,108

487 139 627

1,562

1,272

2,920

409

582

-1

10,339

Restructuring charges

-151

-103

621

—

195

33

21

40

-1,049 -1,051

—

Change in fair value of unrealized cash flow and commodity hedges Capital gains and losses on sale of non-current assets

Total sales

3,728

1,562

1,467

2,953

430

623 -52

10,339

-1

7

Comparable EBIT

533

181

132

135

273

42

-20

1,224

Items affecting comparability in operating profit

55

29

-114

—

-44

-3

-83

0

-382

7

-620

Other non-operational items

-15

-4

Operating profit Finance costs, net

419

181

88

132

190

42

-434

-13

604 -104

Total

-171

-620

Income taxes

-37

In finance costs

-1

-3

Profit for the period Operating assets 1) Deferred tax assets

463

Total in profit before tax

-173

-623

7,772

2,562

862

1,036

1,500

275

3,331

-332

17,005

In income taxes Taxes related to items affecting comparability

526

13

133

Other non-operating assets

62

Accounting policies

Changes in tax rates

-65

—

Other financial assets

1,502

Total assets

19,096

Total

-51

133

Certain non-operational or non-cash valuation transactions with significant income statement impact are considered as items affecting comparability and reported separately to reflect the underlying business performance and to enhance comparability from period to period. The Group applies relevant IFRS Accounting Standards to such transactions. Transactions (incomes or expenses) are considered to be significant, hence reported as items affecting comparability, in all business areas if the impact exceeds €1 million pre-tax. In addition, business acquisition costs are classified as items affecting comparability regardless of amount.

Operating liabilities 1) Deferred tax liabilities

422

34

149

274

376

34

394

-308

1,375

Total in profit for the period

-224

-490

673 603

Other liabilities

In 2025, items affecting comparability include €52 million restructuring and impairment charges related to the closure of Ettringen paper mill in Germany, €72 million restructuring and impairment charges of fixed assets related to the closure of Kaukas paper machine 1 in Finland, €14 million reversal of restructuring charges related to the closure of Plattling paper mill in 2023, €9 million restructuring charges in UPM Communication Papers to improve mills' operations' efficiency, €8 million restructuring and impairment charges resulting from the exercise of a put option concerning the Kraftwerk Plattling power plant company in UPM Communication Papers, €28 million restructuring charges related to the discontinuation of label materials' production at Nancy factory in France, €30 million restructuring charges to improve operations' competitiveness and efficiency in UPM Adhesive Materials, €6 million addition to impairment charges and €2 million reversal of restructuring charges related to the closure of Kaltenkirchen factory, €2 million restructuring charges related to discontinuation of Rotterdam refinery project, €4 million restructuring and impairment charges related to the closure of the UPM Biomedicals business in Other operations, €46 million capital gain on sale of Plattling paper mill site, €7 million capital gain on sale of non current assets. Additionally, items affecting comparability include other restructuring charges related to UPM Communication Papers, UPM Specialty Papers, UPM Adhesive Materials, UPM Plywood, UPM Fibres and Other operations. Other non-operational items include acquisition charges related to Metamark acquisition and charges related to strategic review of UPM Plywood Business Area and to the announced non-binding joint venture transaction between Sappi and UPM in the graphic paper business. Items affecting comparability in taxes include €65 million impact of the future corporate income tax rate change in Germany. The legislation was enacted in 2025.

Other financial liabilities

4,906 7,556

Total liabilities

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation and amortization

11

—

—

—

—

—

68

—

80

2

—

—

—

—

—

-1

—

1

Total assets and capital expenditure by country

-316

-7

-45 -26 713 722

-71

-68 -32

-23

-47

— —

-576 -562

Impairment charges

-121

—

-2

—

-380 2,937 3,129

Assets

Capital expenditure

Capital employed, December 31

7,350 7,153

2,527 2,426

762 789

1,125 1,151

241 243

-201 -428

15,452 15,184

€ million

2025

2024 2025

2024

Average capital employed

Finland

8,102

8,776

258

100

Capital expenditure

93

4

46

19

37

16

335

—

550

Germany

2,158

2,128

242

335

Capital expenditure, excluding acquisitions and shares

93

4

23

19

37

16

335

—

527

Uruguay

5,437

6,213

24

58

Comparable ROCE, % Personnel, December 31

7.5

7.5

18.3

17.1

23.8

17.1

-1.7

— —

8.2

China

453

603

7

6

2,740

91

3,224

1,945

5,190

1,598

1,039

15,827

United States

516

554

8

16

1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, leased assets, forest assets, financial assets at FVOCI, investments in associates and joint ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and the changes in fair value of unrealized cash flow and commodity hedges that are not allocated to segments. Refer to » Other financial information on Alternative performance measures , f or definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS Accounting Standards .

United Kingdom

187

111

65

3

Malaysia

24

22

3

0

Poland

137

135

2

2

Estonia

45

51

1

4

Other EU countries

111

113

9

24

Other European countries

39

36

0

0

Rest of the world

323

355

1

2

Total

17,532

19,096

621

550

UPM Financial Report 2025

272

UPM Financial Report 2025

273

272

273

UPM Annual Report 2025

UPM Annual Report 2025