UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

In focus

Award. It is designed to support UPM’s high-performance culture and recognize individuals and teams for their outstanding contributions, significant achievements and exceptional performance. We also have two main long-term incentive plans: the Performance Share Plan (PSP) for senior executives; and the

Deferred Bonus Plan (DBP) for other key employees.

Sustainability Statement, ESRS S1 Own workforce on page 208 A diverse and inclusive working culture on page 70 Safety and well-being on page 72

Extending safety thinking into digital interactions

Challenge In today’s world, cyber threats and in formation leaks are real and present dangers. These threats pose some of the most severe risks to businesses. In the worst case, they can funda mentally damage a company and its operations. We want our employees to stay safe, on and off work. Action We take digital safety seriously, and cybersecurity is integrated into our daily operations. The digital security rules adopted in 2025 include guide lines on topics such as the protection of personal data and the use of artificial intelligence. Digital safety is also included in the updated 2025 UPM Code of Conduct. All the rules, guidelines, and best practices are available on the UPM intranet and in local management systems. UPM employees play a critical role in protecting information and sys tems, because even the best techni cal measures might not be sufficient. Everyone can contribute to creating a digitally safe work environment. We train and encourage our personnel to understand potential risks, stay alert, and become cyber-smart. This protects our customers, operations, and employees. Impact Digital services, business informa tion, including personal data, and production automation systems are major assets that UPM has both an interest in and a responsibility to protect. Protecting these assets is es sential for UPM to conduct business successfully and without interrup tion, as well as to comply with legal requirements.

Our employees by region

5,866 Finland

3,133 Germany

2,585 Other Europe

858 North America

1,371 China

322 Other Asia

105 Rest of the world

We strengthen our leadership culture We aim to strengthen a leadership culture based on our values and the Aiming Higher mindset, which enables everyone to grow, per form and achieve business results. We invest in leadership development to ensure that lead ers throughout UPM have the capabilities to lead themselves, their teams and the business. Our leadership development programs are designed to achieve these long-term goals. Key themes include building high-performing teams, enabling leaders to perform in any situation and strengthening human-centric leadership.

We reward and recognize high performance

commerce, sourcing, finance, compliance, safety, leadership, communication and design thinking. We set forward-looking goals We aim to strengthen employees’ sense of belonging and meaningful work. This drives productivity, engagement and well-being. We set strategy-related goals for all employees worldwide. Regular one-to-one discussions between managers and their team members provide opportunities to ask for, give and receive feedback on perfor mance and individual development.

887 Uruguay

15,127 Total

Our rewards aim to attract, retain, and mo tivate employees. Our reward concepts are designed to provide all our employees with fair, equitable and competitive rewards. These concepts are based on business needs and our values, and they are differentiated by performance and impact. We use a total rewards approach, combining monetary and non-monetary elements. Monetary elements consist of base salary, benefits and incentives, which are determined by UPM’s global rules, local legislation, general agreements, local mar ket practices, position level and individual performance. Gender, age, ethnic origin and nationality play no role in determining monetary rewards. All employees belong to a unified annual Short-Term Incentive (STI) scheme, designed to encourage high performance, increase motivation and engagement, and recognize and reward employees for achieving targets. The scheme covers Group and business-level targets, as well as per sonal and team targets, to differentiate and reward high performance. We recognize significant individual or team success with a separate Achievement

UPM’s personnel by business area 2025

Part time 3% Fixed term 8%

Full time 97% Permanent 92%

Other operations 3% UPM Biorefining 3% UPM Plywood 10%

UPM Communi cation Papers 31%

UPM Fibres 18% UPM Specialty Papers 12% UPM Adhesive Materials 22% UPM Energy 1%

We regularly measure our progress Since 2007, the annual Employee Engagement Survey (EES) has invited all employees to eval uate various aspects of their work. The high participation rate of 78% (76%) demonstrates UPM employees’ interest in improving their workplace. The overall engagement score is 67 (70). In 2025, 81% (78%) of employees had documented development plans. In the EES, the score for the question about good opportunities to learn and grow at UPM was 65 (65). The annual incentives paid in 2025 for the 2024 Short-Term Incentive (STI) scheme amounted to €48.8 million. The estimated amount of annual incentives for the 2025 scheme is €35.9 million. Around 300 people participated in the apprenticeship programs in 2025.

UPM personnel in figures

2025

2024

2023

Employees

15,127

15,827

16,573

Turnover, %

13.1

13.6

11.1

Turnover, % (voluntary)

4.6

4.8

5.1

Average age

44.7

44.4

44.3

68

69

UPM Annual Report 2025

UPM Annual Report 2025