Slides
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UPM Interim Report Q3 2026 CEO Massimo Reynaudo October 28, 2026
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2 | © UPM Q3 2026 – strong cash flow in a challenging quarter amid destocking and cost inflation • Sales from continuing operations totaled €2,202 million (2,226 million in Q3 2025) • Comparable EBIT from continuing operations decreased by 8% to €131 million, 5.9% of sales (142 million, 6.4%) • Q3 performance impacted by lower deliveries during customer destocking, and increased variable costs • Actions to improve working capital efficiency resulted in strong operating cash flow at € 420 million (218 million) • Transformative projects continued UPM Plywood is presented as discontinued operations
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Comparable EBIT in Q3 2026, continuing operations 0 50 100 150 200 250 300 0 50 100 150 200 250 300 €M €M 142 6.4% 131 5.9% 3 | © UPM Q3 2026 vs. Q2 2026Q3 2026 vs. Q3 2025 212 9.0% 131 5.9% Approx. 50% directly or indirectly related to energy and fuel prices Low volumes, destocking Prices increased in most businesses, decreased in Energy and Fibres Fair value of forest assets
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| © UPM4 Q1-Q3 2026 operating cash flow temporarily impacted by seasonal working capital, items affecting comparability Operating cash flow (1Cash flow (1 0 100 200 300 400 500 600 700 800 € million€ million Q1-Q3 2026 Change yoy Comparable EBITDA 1,048 +119 Utilised provisions -102 -33 Other adjustments -41 -71 Change in working capital -63 -38 Finance costs, taxes -196 -16 Operating cash flow 645 -40 Investing cash flow -182 +210 Free cash flow 462 +170 (1 includes continuing and discontinued operations 420 218
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Solid financial position 5 | © UPM Net debt (1 2,993 Net debt / EBITDA ratio 2.09 € million September 30, 2026 Cash funds and unused credit facilities, € million 2,600 No financial covenants Net debt and leverage (1Balance sheet Policy: ≤ 2x 0,0 0,5 1,0 1,5 2,0 2,5 0 1 000 2 000 3 000 4 000 5 000 Net debt/ EBITDA (x) Net debt € million (1 includes continuing and discontinued operations
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| © UPM • Profit guidance: UPM’s comparable EBIT in H2 2026 from continuing operations is expected to be approximately in the range of €375-575 million (€479 million in H2 2025, and €471 million in H1 2026). These figures exclude UPM Plywood, which is classified as discontinued operations. • Outlook: In H2 2026, compared with H1 2026, UPM’s delivery volumes are expected to decrease. UPM’s performance is expected to be supported by moderately higher sales prices. Variable costs are expected to increase. Energy refunds are expected to support UPM Communication Papers' result in Q4. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs moderately. • In H2 2026, compared with H2 2025, UPM’s performance is expected to benefit from higher sales prices. Variable costs are expected to increase. Fair value change of forest assets is expected to have a significantly smaller impact on comparable EBIT in H2 2026 than in H2 2025 (€131 million). The energy refunds to be booked in UPM Communication Papers in Q4 are anticipated to have a somewhat smaller positive impact than in 2025. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs. Outlook (* 6 | © UPM (* see UPM Interim Report Q3 2026 for the full Guidance, Outlook and sensitivities
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Decarbonization solutions: strong markets and attractive long-term outlook 7 | © UPM Markets Actions Results 0 10 20 30 40 50 60 0 20 40 60 80 100 120 UPM Energy Maximize value in the transforming markets 12 TWh of clean baseload electricity offering ~1 GW of new renewable energy development pipeline ~4 GW of sites suitable for data centers, other industrial actors Q3 2026 comparable EBIT €22 million, 17% of sales 9M 2026 comparable EBIT €146 million, 28% of sales OL3 maintenance shutdown in September-October Good demand and healthy bio- premiums for advanced renewable fuels Elevated fossil fuel prices Robust demand and sales pipeline for biochemicals products Biofuels posted strong results Lappeenranta refinery maintenance in Q3 Biochemicals ramp-up ongoing Capex-efficient debottlenecking Qualification process for SAF Proprietary feedstock technologies development Leuna: two of three core processes in production. Third to start in Q2 2027 Production at nominal capacity to be reached in early 2028 Energy Next Generation Renewables Comparable EBIT % of sales€M Electricity consumption growth continued in Finland, +5% LTM to September Q3 followed normal seasonality Electrification, data centers and green transition drive growth New data center projects announced in Finland during Q3
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Leuna biorefinery integrated production is expected to start in Q2 2027, nominal capacity to be reached in early part of 2028 8 | © UPM Process tested, in production Production to start in Q2 2027 Commercial customer volumes Commercial volumes in production Production to start in Q2 2027 Commercial volumes in production Production in Q4 2026 and qualification at customers Status of core processes and outputs
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9 | © UPM Biochemicals business ramp-up continues Biochemicals long-term business case, including attractive growth and profitability outlook is intact • Commercial interest in the main products and side- streams is strong • High-value product range and technology options have been widened further • At the Leuna refinery, two of three core processes have been tested and are in production • Third process requires a certain modification, to be completed in Q1 2027 • Integrated production is expected to start in Q2 2027, nominal capacity to be reached in early 2028. This is the prerequisite for EBIT positive operation • On this basis, the EBIT impact for the full year 2027 is expected to be on broadly similar level as in 2026
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UPM Energy is a strong partner for data centers 10 | © UPM 12 TWh Reliable CO₂-free electricity production, #2 in Finland Able to offer long-term power purchase agreements (PPAs) Trading and balancing services ~4 GW(* Suitable sites for data centers Ready to build: ~1 GW within 2 years ~3 GW within 5 years ~1 GW(* Renewables and battery development portfolio Ready to build: within 2 years Reliable and responsible industrial operator (* Pending grid allocation and finalization of permitting Additional longer-term potential for both sites and renewables, depending on grid development Extensive expertise in permitting and projects in Finland Finland’s second-largest landowner
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0 5 10 15 20 0 20 40 60 80 Advanced materials: significant customer destocking impacted Q3 performance 11 | © UPM Markets Actions Results Weak Q3 label materials demand in Europe (-5% yoy), impacted by heavy destocking More stable markets in Asia Pacific Slow demand in North America Investments to grow in higher- margin products in the U.S. Investments in higher-growth regions, Southeast Asia, India Building position in graphics following recent acquisitions Q3 2026 sales grew by 1% comparable EBIT €33 million, 8% of sales Q3 performance impacted by lower volumes, amid destocking 9M 2026 comparable EBIT €109 million, 9% of sales Low Q3 demand for label, release base and packaging papers in Europe, impacted by significant destocking The U.S. markets were soft Specialty paper markets in Asia were good, fine paper markets competitive Q3 2026 sales decreased by 3%, comparable EBIT €26 million, 9% of sales Q3 performance impacted by lower volumes, amid destocking 9M 2026 comparable EBIT €105 million, 11% of sales Barrier papers' product development continued Capacity to grow with low investments Adhesive Materials Specialty Materials UPM Adhesive Materials 0 5 10 15 20 0 20 40 60 80 Comparable EBIT Comparable EBIT UPM Specialty Materials % of sales€M % of sales€M
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0 5 10 15 20 25 30 0 25 50 75 100 125 150 Renewable fibres: improved performance 12 | © UPM Markets Actions Results % of sales€M Global hardwood pulp shipments -3% yoy in Jan-Aug/2026 Q3: demand seasonally slow in the summer, improved towards the end of the quarter Hardwood pulp market prices decreased slightly in Q3 Optimization of wood sourcing and inbound logistics, as the plantations reach maturity Planning capex-efficient debottlenecking World-class competitiveness Q3 slightly lower sales price vs. Q2, lower deliveries ahead of Paso de los Toros maintenance Q3 2026 comparable EBIT €94 million, 23% of sales 9M 2026 comparable EBIT €281 million, 23% of sales Global softwood pulp shipments -2% yoy in Jan-Aug/2026 Low softwood pulp market prices continued Pulpwood market prices in Finland have been broadly stable during 2026, having decreased approx. 30% from H1 2025 Q3: slightly lower sales price vs. Q2, deliveries lower due to curtailments, no maintenance Q3 2026 comparable EBIT €11 million, 3% of sales 9M 2026 comparable EBIT €35 million, 3% of sales Production curtailments during H2 2026 to optimize production and wood sourcing, and ensure profitability 8 weeks at the Kaukas mill 5 weeks at the Pietarsaari mill Fibres South Fibres North Fibres South Comparable EBIT -5 0 5 10 15 20 25 -25 0 25 50 75 100 125 Fibres North Comparable EBIT % of sales€M
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0 5 10 15 20 0 10 20 30 40 -4 0 4 8 12 16 20 -25 0 25 50 75 100 125 Communication Papers: slower demand, increased energy- related costs 13 | © UPM Markets Actions Results European demand for graphic papers weakened, -7% yoy in Q3 North American demand for magazine and coated wood free papers in Q3 was flat yoy Preparations continue for planned the graphic paper Joint Venture The transaction is subject to merger control approvals Lower fixed costs, following the closures in Q4 2025 Q3 sales margin lower due to sharp increase in energy-related costs Q3 2026 comparable EBIT €-8 million, -1% of sales 9M 2026 comparable EBIT €37 million, 2% of sales Q3 demand in construction end- uses in Europe slowed down somewhat Demand for plywood in industrial end-uses was good Demand for LNG birch plywood was strong Q3 2026 comparable EBIT €9 million, 8% of sales 9M 2026 comparable EBIT €37 million, 11% of sales EGM decided on the demerger plan on August 31, 2026 Demerger to be completed on October 31 WISA Group will start trading on Nasdaq Helsinki on November 2 UPM Communication Papers UPM Plywood Comparable EBIT Comparable EBIT Communication Papers Plywood % of sales€M % of sales€M UPM Plywood is presented as discontinued operations
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Summary • Q3 impacted by significant customer destocking and increased variable costs, driven by the energy and fuel market situation • Operating cash flow was strong and net debt decreased • Biochemicals business ramp-up continues, with a six-month delay of integrated production • UPM Energy is a strong partner for data centers • WISA Group will start trading on Nasdaq Helsinki on November 2 • Graphic paper JV subject to merger control – discussion opened for specific remedies 14 | © UPM Strong cash flow in a challenging quarter, transformative projects continue
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0 200 400 600 800 1 000 1 200 1 400 1 600 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Depreciation Low capital expenditure after the major investment cycle 16 | © UPM Estimate Strategic investments Operational investments € million Capex estimate for 2026 excl. acquisitions, € million 300 Operational investment needs consistently low Capital expenditure
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One of the leading European plywood producers Demerger of Plywood business • WISA Group Plc to be established October 31 • Share of WISA planned to start trading November 2 • UPM shareholders will receive one (1) new share of WISA for each share owned in UPM • No action required from the UPM shareholder • Improved value creation potential for WISA as an independent company › A leading player in premium categories › Resilient track record through business cycles › Ability to pursue strategic growth opportunities › Increased visibility into key value drivers › Experienced leadership team 17 | © UPM
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18 | © UPM Graphic paper Joint Venture update Mills UPM + Sappi 8+4 Anticipated synergies € million annually 100 Independent graphic paper company • Definitive agreement with Sappi signed • Financing agreements secured • Experienced leadership team nominees appointed • Carve-out preparations proceeding well • Subject to merger control – most jurisdictions have approved the transaction, incl. China, South Africa and the U.S. • European Commission restated its serious concerns about the planned Joint Venture on October 5 • The parties have opened discussion for specific remedies, but not divestments • The European Commission’s final decision is expected by year-end or shortly thereafter
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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 2026, UPM’s estimated net currency cash flows for the next 12 months totaled approximately €1,453 million • 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 19 | © UPM USD 1,301 UYU -311 GBP 128 JPY 126 CNY 85 Others 122 Total 1,453 Estimated 12-month net currency cash flow at the end of Q3 2026, before hedging, € million
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Maintenance shutdowns in 2026 and 2027 20 | © UPM Timing Unit Q2/26 Olkiluoto nuclear power plant units OL1 and OL2 UPM Pietarsaari pulp mill Q3/26 UPM Lappeenranta biorefinery Q3-Q4/26 Olkiluoto nuclear power plant unit OL3 Q4/26 UPM Paso de los Toros pulp mill Q2/27 Olkiluoto nuclear power plant units OL1 and OL2 UPM Fray Bentos pulp mill UPM Kymi pulp mill UPM Lappeenranta biorefinery turnaround Q3/27 UPM Kaukas pulp mill Maintenance shutdowns have an impact on • Maintenance costs • Production volumes • Operational efficiency
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Maturity profile and liquidity Liquidity on 30 September 2026 was €2.6 billion (cash funds and unused committed credit facilities) UPM’s committed credit facilities: • €159 million rolling committed overdraft facility maturing 2027 • €500 million bilateral revolving credit facilities maturing 2029 • €1,250 million committed syndicated revolving credit facility maturing 2031 No financial covenants0 500 1 000 1 500 26 27 28 29 30 31 32 33 34 35 36 37+ € million Unused committed credit facilities €1,909 million Leases €732 million Bonds €2,680 million Loans €268 million
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22 | © 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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23 | © UPM Wood market prices in Finland 2020–2026 Source: Natural Resources Institute Finland 30 40 50 60 70 80 90 2020/01 2020/04 2020/07 2020/10 2021/01 2021/04 2021/07 2021/10 2022/01 2022/04 2022/07 2022/10 2023/01 2023/04 2023/07 2023/10 2024/01 2024/04 2024/07 2024/10 2025/01 2025/04 2025/07 2025/10 2026/01 2026/04 2026/07 €/m3 Logwood purchase prices Pine Spruce Birch 10 15 20 25 30 35 40 2020/01 2020/05 2020/09 2021/01 2021/05 2021/09 2022/01 2022/05 2022/09 2023/01 2023/05 2023/09 2024/01 2024/05 2024/09 2025/01 2025/05 2025/09 2026/01 2026/05 2026/09 €/m3 Pulpwood purchase prices Pine Spruce Birch
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24 | © UPM UPM Energy: Electricity market prices 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 2021 2022 2023 2024 2025 2026 €/MWh Market electricity prices vs UPM sales prices UPM average sales price Helsinki Spot UPM Energy profitability 2021 2022 2023 2024 2025 YTD 2026 Comparable EBIT, € million 270 381 182 181 151 146 % of sales 51,3 52,0 29,0 28,9 24,5 27,9
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European market shipments UPM Adhesive Materials: label materials demand 25 | © UPM North American market shipments 1 000 1 200 1 400 1 600 1 800 2 000 2 200 800,0 900,0 1000,0 1100,0 1200,0 1300,0 Total Excl. Russia and Belarus Source: FINAT M m2 M m2 Source: TLMI Q3 2026: -5% y-o-y -20% q-o-q Q2 2026: +1% y-o-y +2% q-o-q
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26 | © 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 1800 News SC LWC WFC WFU Sources: PPI, RISI