Upm-kymmene Oyj · OMXHEX:UPM
Upm-kymmene Oyj — Q3 2025 Earnings Presentation
29 slides from Upm-kymmene Oyj's earnings presentation, Oct 29, 2025
Slide 1: UPM Interim Report Q3 2025
UPM Interim Report Q3 2025 CEO Massimo Reynaudo October 29, 2025
Slide 2: Q3 2025: UPM business portfolio delivered resilient performance in weak markets
Q3 2025: UPM business portfolio delivered resilient performance in weak markets Comparable EBIT Q3 2025 in brief €M • Sales totaled €2,298 million (€2,521 million in Q3 2024) 800 • Comparable EBIT decreased by 47% to 153 million, 700 6.7% of sales (€291 million, 11.5%) • Initiated a strategic review
Slide 3: Q3 2025 brought some clarity to the terms of global trade, but consumer demand remained subdued
Q3 2025 brought some clarity to the terms of global trade, but consumer demand remained subdued North America Europe Asia Consumer demand Slow consumer demand, Cautious consumers, growth slowed down, stable demand for stable demand for influencing advanced advanced materials advanced materials mater
Slide 4: Comparable EBIT by business area
Comparable EBIT by business area €M UPM Fibres *) % of sales €M UPM Communication Papers % of sales €M UPM Specialty Papers % of sales 320 40 300 25 80 24 280 35 70 21 240 20 240 30 60 18 200 25 50 15 180 15 160 20 40 12 120 15 120 10 30 9 80 10 20 6 60 5 40 5 10 3 0 0 0 0 0 0 -40 -5 -60 -5 €M UPM E
Slide 5: Comparable EBIT in Q3 2025
Comparable EBIT in Q3 2025 €M €M 291 300 11.5% 300 250 250 200 200 153 153 6.7% 6.7% 150 150 126 5.2% 100 100 50 50 0 0 5 | © |UPM © UPM
Slide 6: Solid financial position
Solid financial position Net debt and leverage Net debt Net debt/ €M EBITDA (x) • Net debt €3,218 million at the end of Q3 2025 3,0 5 000 • Net debt / EBITDA 2.36 2,5 • Cash funds and committed credit facilities €2.7 4 000 2,0 billion at the end of Q3 2025 3 000 Policy: ≤ 2x • No financial covenants
Slide 7: Outlook
Outlook (* • 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, in
Slide 8: We act on three fronts
We act on three fronts 1 2 3 Improve Focused World-class competitiveness growth businesses 8 | © UPM
Slide 9: Communication papers – focus on performance and cash flow
Communication papers – focus on performance and cash flow Improve competitiveness World-class businesses • Decision to close paper production at UPM Kaukas (300,000t) in • #1 in Europe Finland by the end of 2025 • Reliable provider of sustainable • Plan to close the UPM Ettringen paper mill (270,000
Slide 10: Renewable fibres – capture the full potential in Fibres South, restore profitability in Fibres North
Renewable fibres – capture the full potential in Fibres South, restore profitability in Fibres North Improve competitiveness Focused growth World-class businesses • Optimization of wood sourcing • 2025 is the first year at nominal • 3.4m tonnes euca pulp and inbound logistics, as the capacity • Worl
Slide 11: Advanced materials – sharpen competitiveness and capture focused growth, Plywood strategic review
Advanced materials – sharpen competitiveness and capture focused growth, Plywood strategic review Improve competitiveness Focused growth World-class businesses • Actions to sharpen • Investments to grow in advanced • #2 globally competitiveness, improve margins, labels in the U.S. and to strengthen
Slide 12: UPM Plywood: strong customer-focused business, with clear strategy and resilient performance through cycles
UPM Plywood: strong customer-focused business, with clear strategy and resilient performance through cycles European market leader with Unique product offering of Resilient financial profile an attractive position across premium materials through market cycles the value chain < • Market leader in mi
Slide 13: Decarbonization solutions – business launch, focused growth, maximize value
Decarbonization solutions – business launch, focused growth, maximize value Improve competitiveness Focused growth World-class businesses • Maximize value in the volatile • Capability to supply CO2-free • #2 in Finland, 12 TWh of CO2-free electricity markets electricity to meet growing electricity,
Slide 14: Summary
Summary • Q3 brought some clarity to the terms of international trade, but consumer demand remained subdued • Q3 2025 comparable EBIT increased by 22% from Q2, but decreased by 47% from last year • Our advanced materials and decarbonization solutions businesses showed resilience and improved their Q
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Slide 16: Our business portfolio, leveraging competitive business platforms
Our business portfolio, leveraging competitive business platforms • Decarbonization solutions biochemicals, biofuels, CO2-free energy • Advanced materials adhesive materials, specialty papers, plywood • Renewable fibres pulp, other bioproducts • Communication papers 16 | © UPM
Slide 17: Major investment cycle coming to an end
Major investment cycle coming to an end Capital expenditure Estimate Capex 2025 estimate €M 1 600 1 400 • Capex excluding acquisitions €400m 1 200 Strategic investments • Operational investment 1 000 needs consistently low 800 600 Depreciation 400 200 Operational investments 0 2009 2010 2011 2012 20
Slide 18: UPM Leuna biorefinery: first of the three main processes reached stability and industrial scale production
UPM Leuna biorefinery: first of the three main processes reached stability and industrial scale production 18 | © UPM
Slide 19: UPM and tariffs – global trade uncertainties
UPM and tariffs – global trade uncertainties 14% of UPM sales in 2024 was to the U.S. • Global trade uncertainties and the weaker U.S. dollar have affected particularly UPM Fibres and UPM 40% Communication Papers locally 60% imported • Indirectly, tariffs may impact demand and trade produced flows,
Slide 20: Foreign exchange exposure
Foreign exchange exposure Estimated 12-month net currency cash flow at the end of Q3 2025, before hedging, € million USD 1,216 • At the end of Q3 2025, UPM’s estimated net UYU -293 currency cash flows for the next 12 months GBP 205 totaled approximately € 1,483 billion CNY 100 • In addition, the ear
Slide 21: Maintenance shutdowns in 2025
Maintenance shutdowns in 2025 Timing Unit Q1-Q2 25 Olkiluoto nuclear power plant OL3 Q2 25 Olkiluoto nuclear power plant OL1 and OL2 Maintenance shutdowns have UPM Paso de los Toros pulp mill an impact on UPM Kymi pulp mill • Maintenance costs Q3 25 UPM Kaukas pulp mill • Production volumes • Operat
Slide 22: Maturity profile and liquidity
Maturity profile and liquidity € million 2 000 Liquidity on September 30, 2025 was €2.8 billion (cash funds and unused committed credit facilities) 1 500 UPM’s committed credit facilities: • €159 million rolling committed overdraft facility maturing 2026 1 000 • €300 million bilateral revolving cred
Slide 23: UPM Fibres: Chemical pulp market prices
UPM Fibres: Chemical pulp market prices Pulp market prices, euros Pulp market prices, U.S. dollars €/tonne $/tonne 1700 1700 1500 1500 1300 1300 1100 1100 900 900 700 700 500 500 300 300 BHKP, Europe, EUR NBSK, Europe, EUR BHKP, Europe NBSK, Europe BHKP, China, EUR NBSK, China, EUR BHKP, China NBSK,
Slide 24: Wood market prices in Finland
Wood market prices in Finland Pulpwood purchase prices Log purchase prices 40 90 80 35 70 30 60 €/m3 €/m3 25 50 20 40 15 30 10 20 Pine Spruce Birch Pine Spruce Birch 24 | © UPM Source: Natural Resources Institute Finland
Slide 25: UPM Energy: Electricity market prices
UPM Energy: Electricity market prices Market electricity prices vs UPM sales price €/MWh 240 220 200 180 160 140 120 100 80 60 40 20 0 2020 2021 2022 2023 2024 2025 Helsinki Front Year System Front Year UPM average sales price UPM Energy 2020 2021 2022 2023 2024 2025 YTD profitability Comparable EBI
Slide 26: UPM Adhesive Materials: Label materials demand has recovered above pre-covid level
UPM Adhesive Materials: Label materials demand has recovered above pre-covid level European North American M m2 market shipments M m2 market shipments 2 200 1 300 2 000 Q3 2025: Q3 2025: +5% y-o-y +0% y-o-y -3% q-o-q 1 200 -1% q-o-q 1 800 Total 1 100 1 600 Excl. Russia 1 000 1 400 and Belarus 1 200
Slide 27: UPM Communication Papers: Graphic paper prices
UPM Communication Papers: Graphic paper prices Europe North America China €/t $/t $/t 1300 1700 1400 1200 1600 1300 1500 1100 1200 1400 1000 1300 1100 900 1200 1000 800 1100 900 700 1000 900 800 600 800 700 500 700 400 600 600 300 500 500 WFC r (100% chemical pulp) News SC LWC WFC WFU News SC LWC WF
Slide 28: Paper price vs. cash cost of marginal cost producer
Paper price vs. cash cost of marginal cost producer EUR/tonne Price Cash cost of a marginal producer 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sources: UPM, PPI, Fastmarkets, AFRY 28 | © UPM
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