UPM Annual Report 2025

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Maturity table of derivatives included in net debt and guarantees at the end of 2025

Net debt

5.2 Net debt Net debt is defined as the total of current and non-current debt less interest-bearing current and non-current financial assets. In 2025, net debt increased by €135 million. Net debt totaled €3,004 million (2,869 million) at the end of 2025. UPM has a €5 billion Euro Medium Term Note (EMTN) programme and a Green Finance Framework that aligns with the International Capital Markets Association (ICMA) Green Bond Principles. The framework has a second party opinion from S&P Global ratings with the highest "Dark green" overall shading. UPM has issued four Green Bonds, totaling €2,350 million. The proceeds from the Green Bonds have been allocated in accordance with the Green Finance Framework to eligible green projects and assets. The following framework categories have been used for the issued Green Bonds: sustainable forest and plantation management, climate-positive and circular bioeconomy adapted products and solutions, and renewable or CO 2 -free energy. The bonds do not have any financial covenants, and all issued euro bonds are listed on the Irish Stock Exchange plc, trading as Euronext Dublin.

€ million

2026

2027

2028

2029

2030

2031+

Total

€ million

2025

2024

Net settled interest rate swaps Net inflow

Bonds

2,594

2,642

9

9

—

—

—

—

18

Loans from financial institutions

123

154

Net outflow

-19

-20

-21

-1

-2

-17

-81

Lease liabilities

684

717

Gross settled derivatives Gross currency swaps Total inflow

Derivatives

111

84

Other loans

126

149

7

7

7

117

—

—

137

Non-current debt

3,638

3,747

Total outflow

-5

-5

-6

-168

—

—

-184

Repayments of non-current debt

31

36

Forward foreign exchange contracts Total inflow

Repayments of lease liabilities

88

115

811

—

—

—

—

—

811

Derivatives

3

14

Total outflow

-809

—

—

—

—

—

-809

Other liabilities

33

1

Guarantees

—

—

—

—

—

—

—

Current debt

156

166

Total debt

3,794

3,913

Maturity table of derivatives included in net debt and guarantees at the end of 2024

Loan receivables

2

2

Derivatives

14

21

€ million

2025

2026

2027

2028

2029

2030+

Total

Other receivables

16

15

Net debt

Net settled interest rate swaps Net inflow

Non-current interest-bearing assets

32

38

5

8

9

1

1

—

25

Loan receivables

1

1

Net outflow

-23

-17

-18

-19

—

—

-79

30

3,000

Derivatives

5

2

Gross settled derivatives Gross currency swaps Total inflow

25

Other receivables

35

110

2,500

Investment funds

1

1

20

8

8

8

8

133

—

163

Gearing ratio, %

2,000

Cash and cash equivalents

715

892

Total outflow

-5

-5

-5

-5

-168

—

-189

15

Current interest-bearing assets

758

1,006

Forward foreign exchange contracts Total inflow

1,500

Total interest-bearing assets

790

1,044

10

741

—

—

—

—

—

741

€ million

Net debt

3,004

2,869

1,000

Total outflow

-750

—

—

—

—

—

-750

5

Guarantees

—

—

—

—

—

—

—

500

0

Accounting policies

0

-5

2021

2022 2023 2024 2025

Debt Debt comprising of bonds, bank and pension loans, lease liabilities and other loans is recognized initially at fair value, net of transaction costs and subsequently measured at amortized cost using the effective interest method. Any difference between proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the estimated life of the borrowing. UPM classifies debt as non-current unless due for settlement within a year. Most of the debt is hedged in a fair value hedge relationship as described in » Note 6.1 Financial risk management .

UPM Financial Report 2025

300

UPM Financial Report 2025

301

300

301

UPM Annual Report 2025

UPM Annual Report 2025