UPM Annual Report 2025

We are UPM

Governance

Accounts and performance

Sustainability

UPM in brief

Our strategy

Our businesses

Our commitments

Creating value for people and society

In addition to income taxes, our various production inputs and outputs are subject to taxation, which we either pay (e.g., energy tax or property tax such as taxes on real estate) or collect (e.g., VAT, payroll tax, and social securi ty contributions). We paid taxes on real estate, equity, and similar properties in various coun tries, totaling €39 million (€31 million). The table on the right shows the corpo rate income tax and taxes on real estate, equity, and similar properties paid in our main countries of operation. Based on our corporate and operational structure, UPM mainly reports and pays its corporate in come tax in countries where production and innovating activity takes place. Corporate income taxes vary by country In Finland, we have significant production operations in our six business areas, as well as research and development operations. As a result, UPM is a significant taxpayer in Finland. UPM’s corporate income tax in Fin land in 2025 is estimated to be €66 million (€84 million), including taxes reported and paid by UPM-Kymmene Corporation and its Finnish subsidiaries. Good governance The Board of Directors’ Audit Committee super vises tax risk management as part of our risk management processes. UPM’s internal control and risk management function regularly reviews tax risks and updates the control framework in collaboration with the tax function. A more thorough review of customers' and suppliers' Regulatory compliance We pay taxes in accordance with local laws and regulations. We adhere to the principles and guidelines outlined in the UPM Tax Strategy, which is based on the standards of the UPM Code of Conduct. Ethical tax practices The location of our companies is determined by economic and business considerations. We do not transfer value created or invest in Our priorities

Contributing to society Our mills contribute to local employment, income tax, and purchasing power and partici pate in projects with local communities.

production or service operations in jurisdictions defined by the Council of the European Union as non-cooperative jurisdictions for tax purposes, or in any similar secrecy jurisdictions. Transparent reporting We are committed to transparent and respon sible tax reporting. We pay corporate income taxes in countries where added value is created, and profit is generated.

Cooperation with the authorities We aim to cooperate transparently and pro actively with the tax authorities. We also value dialogue with other important stakeholders on tax issues. In Finland, UPM cooperates with the Finnish Tax Administration.

In Uruguay, the government has granted several free-trade-zone permits for local and foreign investments. The Uruguayan govern ment has granted our pulp mills a permit to operate in a free-trade zone. Taxes in Uru guay therefore consist mainly of property and equity taxes, as well as annual tax-like charges paid to the Uruguayan government for the zone's development. In China, as a fine paper producer, UPM has qualified as a high-tech enterprise with a reduced corporate income tax rate of 15%. UPM also pays withholding tax on dividends in China. In countries such as Germany, where our companies use tax losses from previous years to offset the current year’s tax liability, limited corporate income tax is paid. See more A list of UPM's principal subsidiaries and joint operations, and their country of incor poration can be found on page 323. Third-party-verified EMAS reports on the environmental and societal responsibility of the pulp and paper mills can be found at upm.com/sustainability . tax practices is part of our counterparty risk management processes. The UPM Tax Strategy is supported by inter nal instructions and controls, and benchmark ing of best practices. Our tax function manages tax matters and is complemented by third-party tax services for local tax reporting, filing, and other requirements.

Contributing to society through taxes Our businesses play a significant role in contributing to the societal development of the surrounding communities by generating tax revenue.

Corporate income taxes paid and property taxes *) by country €m 2025 2024 Finland 74 96 Uruguay 27 25 China 16 20 Poland 6 4 United Kingdom 3 1 United States 2 21 Estonia 2 2 Germany 2 1 France 0 2 Other 5 3 Group total 136 176

The OECD, the G20 Forum, and the EU have addressed the tax challenges posed by global economic changes. These solutions aim to ensure that companies are taxed at a mini mum rate of 15% in their operating countries (Pillar Two) and introduce standardized public tax reporting. We have been transpar ent and responsible in our tax strategy for years. We welcome initiatives that promote standardized global tax reporting and fair and responsible tax payments. We monitor global tax developments, assessing their im pact on UPM and adjusting our tax reporting accordingly. In 2025, UPM’s effective tax rate was 28.9% (7.4%), and the cash tax rate was 14.1% (29.0%). The corporate income tax reported in 2025 was €200 million (€37 mil lion), and the corporate income tax paid was €97 million (€145 million).

Energy taxation at various levels of the value chain

Energy taxation is relevant to us not only as a significant electricity producer but also in our manufacturing processes and the taxation of end products, as well as taxation at various levels of the supply chain. Regardless of the sources used, the electricity we produce is subject to electricity taxation. The majority of our electricity generation is CO 2 -free hydropower and nuclear power. In addition, our renewable products (UPM BioVerno diesel and naphtha) are subject to energy taxation. However, energy tax rates for transportation fuels from renewable and sustainable sources such as UPM BioVerno, are lower than those for fossil fuels. Most of the energy used in our production processes is subject to energy taxation, with differ ent tax rates and exemptions, depending on the type of use. We also pay a significant amount of energy tax on fuels for logistics costs, particularly for road transportation. Within the EU, energy taxation laws allow member states to compensate for the taxes paid or apply lower tax rates for industrial production, and the countries where we have production facilities, such as Finland and Germany, offer such tax relief.

*) Property taxes include taxes on real estate, equity and similar properties paid by country

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UPM Annual Report 2025

UPM Annual Report 2025