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UPM – we renew the everyday Investor presentation October 2025
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Our portfolio leverages competitive business platforms • Decarbonization solutions biochemicals biofuels, CO2-free energy • Advanced materials adhesive materials, specialty papers, plywood • Renewable fibres pulp, other bioproducts • Communication papers 2 | © UPM
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Attractive growth opportunities 3 | © UPM 5-year comparable EBIT % 32% 11% 15% 8% (*) UPM average comparable EBIT 2020–2024 was €1,351m 423 +++ ++ + - Market trend growth 5-year average comparable EBIT (*) by product group 276 384 427 291 - Capital intensity High Low High
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4 | © UPM Our balanced portfolio provides opportunities for growth 5-year average € 1,351 Total sales 2024 Decarbonization solutions Advanced materials Communication papers Renewable fibres Other 5-year average € 10,183 Sales Comparable EBIT Europe Asia North America Rest of the World €10,3bn Sales by market 5-year average Total sales 2024
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We seek profitable growth through performance and capitalizing on our major investments 5 | © UPM Decarbonization solutions Advanced materials Renewable fibres Communication papers UPM comparable EBIT* *) The graphs are illustrative, not a forecast Europe Americas Asia RoW UPM sales*
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-0,5 0,0 0,5 1,0 1,5 2,0 2,5 3,0 -1 000 -500 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 5 000 2012 2014 2016 2018 2020 2022 2024 Net debt/ EBITDA (x) Net debt and leverage Net debt EURm Group financial performance and targets 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2 200 2012 2014 2016 2018 2020 2022 2024 EURm Comparable EBIT 0 2 4 6 8 10 12 14 2012 2014 2016 2018 2020 2022 2024 % Comparable ROE Target: 10%Target: EBIT growth Policy: ≤ 2x 6 | © UPM LTM LTM Q3/25
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Business area long-term return targets 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 *) Shareholdings in UPM Energy valued at fair value Long-term return target UPM Specialty Papers UPM Communication Papers UPM Plywood UPM Adhesive Materials UPM Energy UPM Fibres 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 **) Year 2021 restated , UPM Biofuels moved into Other Operations as of 1 January 2022. FCF/CE %ROCE % *) ROCE % **) ROCE% ROCE % ROCE % 7 | © UPM
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0 200 400 600 800 1 000 1 200 1 400 1 600 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Depreciation Major investment cycle coming to an end 8 | © UPM Estimate Strategic investments Operational investments • Capex excluding acquisitions €400m • Operational investment needs consistently low €M Capital expenditure Capex 2025 estimate
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Dividend Attractive dividend Dividend policy • UPM aims to pay attractive dividends, targeting at least half of the comparable earnings per share over time Dividend for 2024 • EUR 1.50 (1.50) per share • 86% of 2024 comparable EPS 9 | © UPM 20 30 40 50 60 70 80 90 100 0,00 0,20 0,40 0,60 0,80 1,00 1,20 1,40 1,60 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 EUR per share % of comparable EPS
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1 2 3 We act on three fronts 10 | © UPM Improve competitiveness Focused growth World-class businesses
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Renewable fibres – capture the full potential in Fibres South, restore profitability in Fibres North Fibres South Fibres North World-class businessesImprove competitiveness Focused growth • Strategic partnership with Versowood to strengthen pulp wood supply in Finland • Flexible operating mode at all mills, fixed cost reductions • 2.4m tonnes, mainly softwood pulp • Q3 2025 EBIT of €-37m, impacted by the shutdown and maintenance at UPM Kaukas (approx. €-30m), low pulp prices and high wood costs • Optimization of wood sourcing and inbound logistics, as the plantations increasingly reach maturity by 2027 • 3.4m tonnes euca pulp • World-class low-cost platform • Q3 2025 EBIT of €80m, 22% of sales, low cycle pulp prices • 2025 is the first year at nominal capacity • Planning capex-efficient debottlenecking to unlock further potential 11 | © UPM
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Advanced materials – sharpen competitiveness and capture focused growth, Plywood strategic review 12 | © UPM World-class businessesImprove competitiveness Focused growth • Decreased variable costs, efficiency measures • #1 globally • Q3 2025 EBIT of €34m, 11% of sales. Resilient performance on slowing labeling markets, slow fine paper market in China • Flexible paper-based packaging development • Normal production • #1 in Europe, globally in LNG • Q3 2025 EBIT of €11m, 10% of sales. Good performance on stable markets • Strategic review initiated • Actions to sharpen competitiveness, improve margins, including plan to discontinue production in Nancy, France • #2 globally • Q3 2025 EBIT of €33m, 8% of sales. Resilient performance on slowing labeling markets (Q3: Europe +5%, NA +0% y-o-y) Adhesive Materials Specialty Papers Plywood • Investments to grow in advanced labels in the U.S. and to strengthen asset base in Southeast Asia • Building position in graphics following recent acquisitions
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i 13 | © UPM < European market leader with an attractive position across the value chain Unique product offering of premium materials Resilient financial profile through market cycles • Market leader in mid-to-high end European plywood and in LNG globally • Attractive end market dynamics • Well-invested asset base of 4 spruce plywood and 3 birch plywood mills, annual production capacity 805,000 m3 • Well-built warehouse and sales network • Comprehensive premium offering through WISA® Plywood brand • Strong customer partnerships • High quality service • Consistent performance and cash generation over time • Commercial and operational excellence • Proven management team and experienced operational personnel EBITDA 2024: €65m 2023: €77m Sales 2024: €430m 2023: €422m ROCE 2024: 17% 2023: 22% UPM Plywood: strong customer-focused business, with clear strategy and resilient performance through cycles
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Decarbonization solutions – business launch, focused growth, maximize value 14 | © UPM World-class businessesImprove competitiveness Focused growth • Decreased variable costs • Improved efficiency • 130,000 tonnes of advanced renewable fuels • Profitability improvement and recovering markets • Capex-efficient debottlenecking • Qualification process for SAF • Proprietary feedstock technologies development • Sales of industrial sugars and lignin-based products in 2025, glycols in H1 2026 • 220,000 tonnes of pioneering renewable chemicals • Full production and positive EBIT during 2027 • Entry to new business • Commercial interest confirmed • Gather learnings for next steps • Maximize value in the volatile electricity markets • #2 in Finland, 12 TWh of CO2-free electricity, baseload and flexibility • Q3 2025 EBIT €37m, 25% of sales • Capability to supply CO2-free electricity to meet growing demand from electrification, data centers, green transition Energy Biofuels Biochemicals
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Communication papers – focus on performance and cash flow 15 | © UPM Communication Papers World-class businessesImprove competitiveness • Decision to close paper production at UPM Kaukas (300,000t) in Finland by the end of 2025 • Plan to close the UPM Ettringen paper mill (270,000t) in Germany and streamline operations • Combined capacity reduction: 13% of capacity • Planned annual fixed cost savings €70m • Sold the earlier closed Plattling paper mill site, Germany, in October, contributing to Q4 2025 cash flow • #1 in Europe • Reliable provider of sustainable communication papers, cost- efficient operations • Q3 2025 EBIT €14m, 2% of sales. Business affected by the trade uncertainty and weaker U.S. dollar. Q3 demand declined both in Europe (-7% y-o-y) and the U.S.
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Q3 2025 in brief • Sales totaled €2,298 million (€2,521 million in Q3 2024) • Comparable EBIT decreased by 47% to 153 million, 6.7% of sales (€291 million, 11.5%) • Initiated a strategic review of UPM Plywood to assess options for maximizing its long-term potential • Signed a strategic partnership with Versowood to strengthen pulp wood supply in the tight Finnish markets • UPM Adhesive Materials plans to discontinue production in Nancy, France, invests to grow in the U.S., Malaysia, Vietnam • Decided to end paper production at UPM Kaukas, Finland, sold the earlier-closed Plattling paper mill site, Germany • Started the first core process of the Leuna biorefinery, achieving stability and industrial-scale production Q3 2025: UPM business portfolio delivered resilient performance in weak markets 0 100 200 300 400 500 600 700 800 €M Comparable EBIT 16 | © UPM
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17 | © UPM Q3 2025 brought some clarity to the terms of global trade, but consumer demand remained subdued North America Consumer demand growth slowed down, influencing advanced materials Low pulp prices Weak demand for communication papers Trade uncertainties affected customers’ decisions Europe Slow consumer demand, stable demand for advanced materials Low pulp prices Weak demand for communication papers Solid electricity consumption, increased prices in Finland Stable plywood demand Improving market for renewable fuels Asia Cautious consumers, stable demand for advanced materials Low pulp prices Pulp demand normalized after weak Q2 Fine paper markets seasonally slow Paper pricing under pressure
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Comparable EBIT in Q3 2025 0 50 100 150 200 250 300 0 50 100 150 200 250 300 €M €M 126 5.2% 291 11.5% 153 6.7% 153 6.7% 18 | © UPM
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Comparable EBIT by business area 0 3 6 9 12 15 18 21 24 0 10 20 30 40 50 60 70 80 -5 0 5 10 15 20 25 30 35 40 -40 0 40 80 120 160 200 240 280 320 0 3 6 9 12 15 18 21 24 0 10 20 30 40 50 60 70 80 -5 0 5 10 15 20 25 -60 0 60 120 180 240 300 % of sales UPM Specialty Papers % of sales UPM Communication Papers % of sales % of sales UPM Adhesive Materials % of sales€M % of salesUPM Fibres *) 0 10 20 30 40 50 60 70 80 0 20 40 60 80 100 120 140 160 UPM Energy 0 5 10 15 20 25 30 0 10 20 30 40 50 UPM Plywood€M €M €M €M €M 19 | © UPM *) Year 2021 restated, UPM Biofuels moved to Other Operations as of January 1, 2022
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| © UPM • Net debt €3,218 million at the end of Q3 2025 • Net debt / EBITDA 2.36 • Cash funds and committed credit facilities €2.7 billion at the end of Q3 2025 • No financial covenants • UPM repurchased 6 million shares for a total of approximately €160 million in H1 2025 • The first dividend instalment for year 2024 (€397m) was paid on April 8, 2025, the second will be paid on November 7 (€395m) Solid financial position -0,5 0,0 0,5 1,0 1,5 2,0 2,5 3,0 -1 000 0 1 000 2 000 3 000 4 000 5 000 Net debt/ EBITDA (x) Net debt €M Net debt and leverage Policy: ≤ 2x 20 | © UPM
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| © UPM • Profit guidance: UPM’s comparable EBIT in H2 2025 is expected to be approximately in the range of €425-650 million (€413 million in H1 2025, and €709 million in H2 2024). • Outlook: In H2 2025, compared with H1 2025, UPM’s performance is expected to benefit from lower variable costs, including the timing of the annual energy refunds in Q4, and potentially from moderate fair value change of forest assets in Q4. Performance is expected to be resilient in the advanced materials businesses. Pulp prices have started the second half of the year at a lower level than the realized prices during the first half of the year. • In H2 2025, compared with H2 2024, UPM’s performance is expected to be held back by lower sales margins for pulp, lower deliveries of communication papers, and higher maintenance activity. Performance is expected to improve in the advanced materials businesses. • The U.S. dollar has been weaker in H2 2025 than during the comparison periods. Outlook (* 21 | © UPM (* see UPM Half Year Financial Report 2025 for the full Guidance and Outlook
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Indirect impact of the trade uncertainties have been more significant than the direct impact of tariffs UPM and tariffs – global trade uncertainties • Global trade uncertainties and the weaker U.S. dollar have affected particularly UPM Fibres and UPM Communication Papers • Indirectly, tariffs may impact demand and trade flows, cause hesitation among customers and weaken consumer confidence. Such indirect impacts are possible in markets outside the U.S., too • Direct impact of tariffs has been relatively limited • UPM produces self-adhesive label materials and communication papers in the U.S. • UPM exports communication papers, specialty papers and some eucalyptus pulp to the U.S. Current tariffs on these deliveries range between 0%, 10% and 15% 22 | © UPM 14% of UPM sales in 2024 was to the U.S. 40% locally produced 60% imported
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UPM hedges an average of 50% of the estimated net currency cash flow on a rolling basis for the next 12 months Foreign exchange exposure • At the end of Q3 2025, UPM’s estimated net currency cash flows for the next 12 months totaled approximately € 1,483 billion • In addition, the earnings of UPM’s foreign subsidiaries are translated to euros in reporting. UPM has significant foreign subsidiaries in Uruguay, the U.S. and China • Currency fluctuations could impact UPM’s cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions 23 | © UPM USD 1,216 UYU -293 GBP 205 CNY 100 JPY 98 Others 159 Total 1,483 Estimated 12-month net currency cash flow at the end of Q3 2025, before hedging, € million
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i Leading position in sustainability, leading global standards 24 | © UPM
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i Innovative products Scientifically verifying the climate impact of all our products Committed to climate-positive forestry and enhancing biodiversity -65% from own CO2 emissions -30% from CO2 emissions of supply chain Our climate commitment WE ACT THROUGH EMISSION REDUCTIONS WE ACT THROUGH PRODUCTS WE ACT THROUGH FORESTS 25 | © UPM
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i 26 | © UPM Towards net-zero emissions (UPM 2023) Research partners: LUKE, SYKE, IFEU
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UPM Forest Action WATERCLIMATE BIODIVERSITY The UPM Forest Action program takes a holistic view, covering the five fundamentals of responsible forestry: 27 | © UPM SOIL SOCIAL CONTRIBUTION
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28 | © UPM Uruguay plantations “Fast turnover, low inventory” • Value €1.8bn • Continuous productivity improvement (pulp tonnes/ha) • Investing in strategic forest assets Finland and other northern forests “Slow turnover, high inventory” • Value €1.8bn (+42% since 2008, EUR/ha +140%) • Decreased area (-41% since 2008), focusing on forests close to mills • Improved growth (m3/ha) • Trend price (EUR/m3) Active forest strategy – UPM’s forest assets are increasingly productive and valuable 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 Land, forest Trees, forest Land, plantation (* Trees, plantation *) leased land included from 2019
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i 0 5 10 15 20 25 30 35 40 45 50 2016 2018 2020 2022 2024 2026e 2028e 2030e -4 000 -3 000 -2 000 -1 000 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 Entry of market bleached pulp capacity Exits New mill/line Other expansion 29 Robust demand growth outlook for market pulp, limited net capacity addition in the coming years Note: including BHKP, BSKP, excluding fluff and dissolving ? Decided projects ? Net additional capacity, 1000 tonnes/annum ? Source: AFRY, PPPC, UPM analysis MARKET HARDWOOD PULP DEMAND million tonnes MARKET SOFTWOOD PULP DEMAND Market pulp demand trend OUTLOOK ACTUAL2023-2030 CAGR: ~2% 2023-2030 CAGR: ~1% | +850kt/a | +250kt/a Typical construction period ~3 years 5-year-average market pulp exit rate UPM Fibres 29 | © UPM
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Competitive and sustainable fibre supplier for growing global everyday needs • Competitive and sustainable operations in hardwood and softwood pulp • Global presence with strong market position: #1 multi-fibre and #3 market pulp supplier • Confidence on strong returns over the business and market cycles due to high Uruguay platform competitiveness • Target ROCE > 14% • Biostreams generated as part of pulp production can provide raw materials for new UPM businesses URUGUAY Pietarsaari Kymi KaukasEUROPE CHINA FINLAND NORTH AMERICA • 5 modern pulp mills with annual production capacity of 5.8 million tonnes of hardwood and softwood pulp • Over 500 000 hectares of plantations in Uruguay under UPM management • Over 520 000 hectares of forests owned by UPM in Finland Fray Bentos Paso de los Toros UPM Fibres 30 | © UPM
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i Uruguay: world-leading competitiveness Best available technologies Efficient logistics • Continuous development in plantation productivity • Optimizing inbound logistics • Efficiencies of scale • Competitive mill concept • Biostreams development potential • World-class outbound logistics • Direct rail connection • Own port terminal Competitiveness UPM BEKP cash cost development Actual Outlook Average annual cost reduction 2009-2023 nearly -6% Real USD/t, (2022=100) Highly productive plantations UPM Fibres 31 | © UPM
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i 32 Finland: focus on profitability and value maximization Tight wood market Focus on competitiveness • Nordic forest-based industry is facing tight wood supply and elevated wood costs • Absence of Russian wood imports and peers’ investments created a structurally tight wood market • Competitive business platform and margin management are key • UPM has a strong track record in business turnaround 2009 2024 2.4 mt/a2.1 mt/a Well-maintained pulp capacity in Finland UPM Fibres 32 | © UPM
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2009 2019 2024 By 2030 2035+ Growth ambition in hardwood pulp Source: UPM UPM Pulp BEKP (eucalyptus) capacity Maximized competitiveness and debottlenecking Further long-term organic growth under consideration Fray Bentos development & debottlenecking Paso de los Toros ramped up to nominal capacity 1.1 mt/a Fray Bentos acquired 1.3 mt/a 3.4 mt/a ~4 mt/a UPM Fibres 33 | © UPM
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34 | © UPM UPM Fibres: Chemical pulp market prices 300 500 700 900 1100 1300 1500 1700 $/tonne BHKP, Europe NBSK, Europe BHKP, China NBSK, China 300 500 700 900 1100 1300 1500 1700 €/tonne BHKP, Europe, EUR NBSK, Europe, EUR BHKP, China, EUR NBSK, China, EUR Pulp market prices, U.S. dollarsPulp market prices, euros Source: FOEX Indexes Ltd
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The self-adhesive label stock market • >EUR 10bn global market • ~3-4% p.a. growth • Private consumption driven • Largest of the labelling technologies • <25% of total self-adhesive materials markets 35 All labelling technologiesSelf-adhesive labelstock market Other producers UPM Adhesive Materials Other producers Other labelling technologies All self adhesive materials Other producers Other self adhesive materials UPM Adhesive Materials UPM Adhesive Materials Self adhesive labelstock Self adhesive labelstock UPM Adhesive Materials 35 | © UPM
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European market shipments UPM Adhesive Materials: Label materials demand has recovered above pre-covid level 36 | © UPM North American market shipments 1 000 1 200 1 400 1 600 1 800 2 000 2 200 800 900 1 000 1 100 1 200 1 300 Total Excl. Russia and Belarus Source: FINAT M m2 M m2 Source: TLMI Q3 2025: +5% y-o-y -3% q-o-q Q3 2025: +0% y-o-y -1% q-o-q
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Entering attractive adjacent markets • Graphics solutions market entry through AMC acquisition • Expanded product and technology portfolio through Grafityp and Metamark acquisitions • Further potential in specialty tapes Self-adhesive labels Others Self- adhesive materials Self- adhesive labels Other self-adhesive materials UPM Adhesive Materials UPM Adhesive Materials 37 | © UPM
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Renewable, recyclable papers for labeling and packaging Sales 1,467 M€ in 2024 EBITDA 208 M€ in 2024 ROCE 17.1% in 2024 Sales by market* APAC EMEIA North America & LATAM Sales by product* Fine Label & release Packaging *2021 figures UPM Specialty Papers 38 | © UPM
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UPM Specialty Papers growth strategy Release base papers Face papers Office papers Graphic papers PACKAGING Packaging papers Co-creating remarkable products Brand based value Globally recognized leadership Committed value creation Special by nature Focused, committed and agile UPM Speciaty Papers 39 | © UPM
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Glassine Other liners Entering attractive adjacent markets • Flexible packaging entered through innovation & co-creation • Further portfolio expansion in label & release papers Global release materials Global flexible packaging Paper Plastics ? UPM Specialty Papers 40 | © UPM
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UPM’s position and direction • Leading position in high and medium range standard products in Europe through well established distribution network providing easy access to WISA® plywood • Uncompromised sustainability, certified products and operations • New growth sought by strengthening position in selected emerging markets UPM’s position and direction • Leading supplier in LNG plywood • Competitive edge based on right quality and accurate on-time deliveries • Long term commitment and benchmark service level • Focus to secure leading position in LNG carriers and to extend offering into related applications using the same technologies (e.g. land storage tanks) UPM’s position and direction • Leading position in Europe • Competitive edge built on smoothly running operations and needs-based product design creating value to both vehicle manufacturers and operators • Growth sought by expanding to new markets and related end use segments LNG shipbuildingConstruction Vehicle flooring 41 UPM Plywood focuses on three end use segments UPM Plywood 41 | © UPM
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UPM’s key markets are in the high and mid segments primarily in EMEA region Strategic choices 1. Demanding industrial applications 2. High and medium range standard products 3. Selected customers 4. EMEA region and LNG business globally Low-end market Non-footprint market Global plywood market ~90Mm3 EMEA plywood market ~12Mm3 UPM Plywood sales ~500tm3 Relevant market ~5.1Mm3 EMEA market ~12Mm3 Sales by category 90120.5 Industrial applications Construction / Panel Trading UPM Plywood 42 | © UPM
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i 43 • Flexible hydro power crucial to balance the volatile energy system • Reliable nuclear power to support the electrification of the society UPM Energy UPM’s electricity generation portfolio is clean and efficient to match the future needs • Near term: electric heating (large scale electric boilers and heat pumps), data centers and traffic • Longer term: industrial decarbonization and electrification UPM Energy electricity generation is 99% CO2-free Electricity demand is expected to grow significantly (*) Statistics Finland, Fingrid predictions and UPM analysis UPM Energy Hydro Nuclear Thermal 12TWh each year 0 50 100 150 200 250 CAGR +3-5% pa 2045 2024 2010 Electricity demand growth requires reliable CO2-free baseload 43 | © UPM
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44 | © UPM UPM Energy: Electricity market prices 0 20 40 60 80 100 120 140 160 180 200 220 240 2020 2021 2022 2023 2024 2025 €/MWh Market electricity prices vs UPM sales price Helsinki Front Year System Front Year UPM average sales price UPM Energy profitability 2020 2021 2022 2023 2024 2025 YTD Comparable EBIT, EURm 171 270 381 182 181 97 % of sales 45.0 51.3 52.0 29.0 28.9 22.0
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Renewable fuels demand outgrows planned capacity as of 2030 20 ’25 ’30 29 34 ’25 ’30 23 38 Global sustainable fuels demand, Mtoe ’25 ’30 44 66 Bio- / e-SAF HVO / e-diesel Road Other (Biodiesel, Ethanol) 1) Including Norway and UK; Road demand 2030 estimate including upside from RED III implementation – current regulations ~12 Mtoe demand ’25 ’30 37 20 ’20 ’25 ’30 ’40 ’50 0 1 5 24 41 ’20 ’25 ’30 ’40 ’50 3 4 18 36 29 EU SAF1, Mtoe EU Road Renewable Fuels1, Mtoe Synthetic Bio Synthetic Bio Regulated demand increase accelerating as of 2030 RED III driven demand until 2030 and fleet mix will require low-GHG fuels until well beyond 2050 Source: UPM Analysis based on Bloomberg NEF, Goldman Sachs Research, IEA, McKinsey, Neste, Wood Mackenzie UPM Biofuels 45 | © UPM
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46 | © UPM UPM Biofuels differentiation comes from competitive feedstock base and proprietary technology UPM Biofuels Addressing markets with 7,3 Gt* GHG emissions p/a Proven technology High value products Strategic access to competitive biomass * UPM Analysis based on World Resources Institute, 2020 & International Energy Agency, 2020 ** Share of global GHG emissions
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i 47 | © UPM UPM sharpens its focus on biofuels growth strategy Evaluating the potential to debottleneck the Lappeenranta Biorefinery Feedstock technology development to enable the use of additional competitive and sustainable biomass Qualification of CTO-derived UPM biofuels as Sustainable Aviation Fuel (SAF) 47 | © UPM UPM Biofuels
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UPM Biochemicals – multiple end-uses Bio-Monoethylene Glycol (Bio-MEG) Renewable Functional Fillers (RFF) 48 | © UPM
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Scope 3: relative -55% by 2030 Scope 3: -30% by 2030 2040 2038 2039 2060 Scope 3: -25% by 2030 2050 2040 95% non-fossil ingredients by 2030 2039 2040 Biobased chemicals are key to shifting away from high-CO2 materials The shift away from fossil feedstocks will rely on bio-based solutions as first option to scale Net-zero commitments of major global brands will reflect on demand for sustainable chemicals Biobased chemicals PtX Recycled chemicals Fossil feedstock 2030 2050 2040 UPM Biochemicals 49 | © UPM
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UPM Biochemicals is a frontrunner in sustainable chemicals offering a distinct product value add Strategic partnerships with leading players in various regions and industries confirm high demand for UPM products * Considering the biogenic carbon from our feedstock & purchasing 100% green electricity UPM Biochemicals value add CO2 negative from day one* High GHG reduction Renewable carbon Certified, sustainable biomass Fully certified and traceable, non-food feedstocks Regional value chains Enhanced product performance Additional technical performance 100% biogenic feedstock Supply security and credible social sustainability Average sustainable chemical UPM Biochemicals 50 | © UPM
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Microsoft Excel Worksheet We address markets and segments with high future demand for sustainable solutions Leverage strong future need for sustainable materials in automotive, packaging, textiles Valorise strong advantage of negative CO2 product footprint, weight-reduction etc. in various applications, from automotive to packaging Global functional filler market Total demand >35 mt(1 1 Source: OrbiChem 360 demand database 2 Source: Notch Consulting: Carbon Black World data book 150 kt renewable/recycled functional filler supply Global MEG market 25 kt current renewable glycols supply Total demand 16 mt(2 UPM Biochemicals 51 | © UPM
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i 52 | © UPM After reaching full capacity, Leuna will focus on capacity increase, cost optimization and side stream valorization UPM Biochemicals Commis- sioning and start-up ongoing 100% capacity utilization as of 2027 Positive EBIT in 2027
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The market's widest range of graphic papers, for various end-uses and purposes Newspapers and supplements Envelopes and direct mail Office, manuals, arts Books and education Advertising and direct mail Catalogues and brochures Magazines Fine papers News & UMIO SC Coated mechanical UPM Communication Papers 53 | © UPM
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54 | © UPM UPM Communication Papers: Graphic paper prices 300 400 500 600 700 800 900 1000 1100 1200 1300 News SC LWC WFC WFU €/t Europe $/t $/t ChinaNorth America 500 600 700 800 900 1000 1100 1200 1300 1400 WFC r (100% chemical pulp) Uncoated Woodfree Reels (100% chemical pulp) 500 600 700 800 900 1000 1100 1200 1300 1400 1500 1600 1700 News SC LWC WFC WFU Sources: PPI, RISI
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55 | © UPM Paper price vs. cash cost of marginal cost producer 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 EUR/tonne Sources: UPM, PPI, Fastmarkets, AFRY Price Cash cost of a marginal producer