UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Financial Statements

Report of the Board of Directors

Sustainability Statement

Auditor's Report

Sustainability Assurance Reports

Sales by destination country

External sales by major products

€ million

2025

2024

Business area

Business

2025

2024

Finland

1,350

1,306

€ million UPM Fibres

Germany

899

1,073

UPM Pulp, UPM Timber

2,908

3,108

United States

1,263

1,408

UPM Energy

UPM Energy

480

487

United Kingdom

506

513

UPM Adhesive Materials

UPM Adhesive Materials

1,655

1,562

China

1,515

1,744

UPM Specialty Papers

UPM Specialty Papers

1,108

1,272

France

356

386

UPM Communication Papers

UPM Communication Papers

2,459

2,920

Uruguay

99

100

UPM Plywood

UPM Plywood

389

409

Poland

288

304

Other operations

UPM Forest, UPM Biofuels, UPM Biochemicals

659

582

Other EU countries

1,604

1,577

Eliminations and reconciliations

-2

-1

Other European countries

346

402

Total

9,656

10,339

Rest of world

1,430

1,527

Total

9,656

10,339

BUSINESS

PRODUCT RANGE

UPM Pulp

Softwood, birch and eucalyptus pulp

2.2

Sales

UPM Timber

Standard and special sawn timber

UPM Energy

Electricity and related services

Sales by business area

UPM generates revenue mainly from the sale of goods, i.e. several types of products. The majority of UPM’s revenue comes from sales of graphic and specialty papers to publishers, retailers, printing houses, merchants and distributors, converters and label stock manufacturers; sales of self adhesive label materials to label printers and brand owners and sales of pulp products to tissue, board, specialty and graphic paper producers. The revenue comprises also sales of energy, biofuels, sawn timber and plywood products and a very limited amount of services not related to sale of goods. UPM sells a proportion of its products to several major customers. The largest customer in terms of sales represented approximately 3% (2%) of UPM’s sales and the ten largest customers represented approximately 12% (13%) of such sales. The Group disaggregates its external sales by business area, because this depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Sales by 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. The goods and services included in sales revenue of each business area are presented in below tables.

UPM Adhesive Materials

Self-adhesive paper and film label stock

€ million

2025

2024 Change %

UPM Specialty Papers

Labeling materials, release base papers, flexible packaging materials, office papers, graphic papers

UPM Fibres

3,407

3,728

-9 %

UPM Communication Papers

Graphic papers for various end-uses

UPM Energy

615

627

-2 %

UPM Plywood

Plywood and veneer products

UPM Adhesive Materials

1,655

1,562

6 %

UPM Forest

Wood and wood-based biomass (logs, pulpwood, chips, forest residues etc.), full forestry service offering

UPM Specialty Papers

1,315

1,467

-10 %

UPM Biofuels

Wood-based renewable diesel for transport and renewable naphtha for transport and petrochemicals

UPM Communication Papers

2,493

2,953

-16 %

UPM Biochemicals

Lignin products for industrial use

UPM Plywood

409

430

-5 %

Other operations

693

623

11 %

Accounting policies

Eliminations

-932

-1,051

—

relating to goods is recorded at the time of loading and the portion of revenue relating to delivery services over time when the service has been performed. UPM sells energy to NordPool electricity market. Revenue is recognized when electricity is transmitted over time. Sales of services UPM provides forest expertise and contracting services to woodland and forestry owners and freight services (free space on Group’s vessels sold as freight services). Revenues from services are recorded over time when the service has been performed. Sales of services is very limited and thus the Group does not report it separately. Revenue recognition The Group recognizes revenue as an amount equal to the price specified in the customer contract net of any sales taxes, cash flow hedging results of sales in foreign currency, hedges of energy sales and variable consideration, when applicable. Variable consideration is defined as any

Sales of goods UPM’s performance obligation in the contracts with customers consists of providing the goods specified in the contracts. Revenue from UPM’s product sales is recognized when performance obligation is satisfied, which takes place at a point in time when control of the goods has been transferred to the customer. In UPM’s customer contracts the transfer of control and thus timing of revenue recognition is largely dependent on delivery terms. Group terms of delivery are based on Incoterms 2020, the official rules for interpretation of trade terms issued by the International Chamber of Commerce. A major part of the sales contracts is on delivery terms basis, whereby delivery is not a promised service to the customer, as the control of a good does not transfer to the customer before shipment. Revenue and the corresponding receivable are recorded at the point in time when the product is delivered to the destination point for terms designated Delivered Duty Paid (“DDP”) or Delivered at Place (“DAP”). For sales transactions designated free of carriage (FCA), revenue is recorded at the time of shipment. For sales transactions designated as Carriage paid to (CPT) or Carriage and Insurance Paid to (CIP), the portion of revenue

Total

9,656

10,339

-7 %

Refer to » Note 2.1 Business areas for information on UPM products .

UPM Financial Report 2025

274

UPM Financial Report 2025

275

274

275

UPM Annual Report 2025

UPM Annual Report 2025