Upm-kymmene Oyj · OMXHEX:UPM
Upm-kymmene Oyj — Q3 2026 Earnings Presentation
27 slides from Upm-kymmene Oyj's earnings presentation, Oct 28, 2026
Slide 1: UPM Interim Report Q3 2026
UPM Interim Report Q3 2026 CEO Massimo Reynaudo October 28, 2026
Slide 2: Q3 2026 – strong cash flow in a challenging quarter
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
Slide 3: Comparable EBIT in Q3 2026, continuing operations
Comparable EBIT in Q3 2026, continuing operations Q3 2026 vs. Q3 2025 Q3 2026 vs. Q2 2026 €M €M Prices increased in most businesses, 300 300 decreased in Energy and Fibres 250 250 Approx. 50% directly 212 or indirectly related to 9.0% energy and fuel prices 200 200 142 6.4% 131 131 150 5.9% 150 5.9%
Slide 4: Q1-Q3 2026 operating cash flow temporarily impacted by seasonal working capital
Q1-Q3 2026 operating cash flow temporarily impacted by seasonal working capital, items affecting comparability Cash flow (1 Operating cash flow (1 € million Q1-Q3 2026 Change yoy € million Comparable EBITDA 1,048 +119 800 Utilised provisions -102 -33 700 Other adjustments -41 -71 600 Change in worki
Slide 5: Solid financial position
Solid financial position Balance sheet Net debt and leverage (1 Net debt (1 Net debt Net debt/ € million September 30, 2026 € million EBITDA (x) 5 000 2,5 2,993 Net debt / EBITDA ratio 2.09 4 000 Policy: ≤ 2x 2,0 3 000 1,5 Cash funds 2 000 1,0 and unused credit facilities, € million 2,600 1 000 0 0,
Slide 6: Outlook
Outlook (* • 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. • Outl
Slide 7: Decarbonization solutions: strong markets and attractive long-term outlook
Decarbonization solutions: strong markets and attractive long-term outlook Markets Actions Results €M UPM Energy % of sales 120 60 Comparable EBIT Electricity consumption growth Maximize value in the Q3 2026 comparable EBIT 100 50 continued in Finland, +5% LTM transforming markets €22 million, 17% o
Slide 8: Leuna biorefinery integrated production expected to start in Q2 2027
Leuna biorefinery integrated production is expected to start in Q2 2027, nominal capacity to be reached in early part of 2028 Commercial volumes in production Production to start in Q2 2027 Production in Q4 2026 and qualification at customers Status of core processes and outputs Process tested, in p
Slide 9: Biochemicals business ramp-up continues
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 Le
Slide 10: UPM Energy is a strong partner for data centers
UPM Energy is a strong partner for data centers 12 TWh ~4 GW(* ~1 GW(* Reliable CO₂-free electricity Suitable sites Renewables and battery production, #2 in Finland for data centers development portfolio Able to offer long-term power Ready to build: Ready to build: purchase agreements (PPAs) ~1 GW w
Slide 11: Advanced materials: significant customer destocking impacted Q3 performance
Advanced materials: significant customer destocking impacted Q3 performance UPM Adhesive Markets Actions Results €M Materials % of sales 80 20 Weak Q3 label materials Investments to grow in higher- Q3 2026 sales grew by 1% Comparable EBIT demand in Europe (-5% yoy), margin products in the U.S. compa
Slide 12: Renewable fibres: improved performance
Renewable fibres: improved performance Markets Actions Results €M Fibres South % of sales 150 30 Global hardwood pulp shipments Optimization of wood sourcing World-class competitiveness Comparable EBIT 125 25 -3% yoy in Jan-Aug/2026 and inbound logistics, as the plantations reach maturity Q3 slightl
Slide 13: Communication Papers: slower demand, increased energy-related costs
Communication Papers: slower demand, increased energy- related costs UPM Communication % of Markets Actions Results €M Papers sales 125 20 European demand for graphic Preparations continue for Q3 sales margin lower due to Comparable EBIT 100 16 papers weakened, -7% yoy in Q3 planned the graphic pape
Slide 14: Summary
Summary Strong cash flow in a challenging quarter, transformative projects continue • 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 co
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Slide 16: Low capital expenditure after the major investment cycle
Low capital expenditure after the major investment cycle Capital expenditure € million Estimate 1 600 1 400 Capex estimate for 2026 Strategic investments excl. acquisitions, € million 1 200 300 1 000 800 600 Depreciation Operational investment 400 needs consistently low 200 0 Operational investments
Slide 17: Demerger of Plywood business
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 W
Slide 18: Graphic paper Joint Venture update
Graphic paper Joint Venture update • 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 Afri
Slide 19: Foreign exchange exposure
Foreign exchange exposure Estimated 12-month net currency cash flow at the end of Q3 2026, before hedging, € million USD 1,301 • At the end of Q3 2026, UPM’s estimated net UYU -311 currency cash flows for the next 12 months GBP 128 totaled approximately €1,453 million JPY 126 • In addition, the earn
Slide 20: Maintenance shutdowns in 2026 and 2027
Maintenance shutdowns in 2026 and 2027 Timing Unit Q2/26 Olkiluoto nuclear power plant units OL1 and OL2 UPM Pietarsaari pulp mill Q3/26 UPM Lappeenranta biorefinery Maintenance shutdowns have an impact on Q3-Q4/26 Olkiluoto nuclear power plant unit OL3 • Maintenance costs • Production volumes Q4/26
Slide 21: Maturity profile and liquidity
Maturity profile and liquidity € million 1 500 Liquidity on 30 September 2026 was €2.6 billion (cash funds and unused committed credit facilities) 1 000 UPM’s committed credit facilities: • €159 million rolling committed overdraft facility maturing 2027 • €500 million bilateral revolving credit 500
Slide 22: 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 23: Wood market prices in Finland 2020–2026
€/m3 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 Pine 2022/04 2022/07 2022/10 2023/01 2023/04 Spruce 2023/07 Source: Natural Resources Institute Finland 2023/10 2024/01 Logwood purchase prices 2024/04 Birch 2024/07 2024/10 2025/01 2025/04 2025/07 2025
Slide 24: UPM Energy: Electricity market prices
UPM Energy: Electricity market prices Market electricity prices vs UPM sales prices €/MWh 280 260 240 220 200 180 160 140 120 100 80 60 40 20 0 2021 2022 2023 2024 2025 2026 UPM average sales price Helsinki Spot UPM Energy 2021 2022 2023 2024 2025 YTD 2026 profitability Comparable EBIT, 270 381 182
Slide 25: UPM Adhesive Materials: label materials demand
UPM Adhesive Materials: label materials demand European North American M m2 market shipments M m2 market shipments 2 200 Q3 2026: Q2 2026: -5% y-o-y 1300,0 +1% y-o-y -20% q-o-q +2% q-o-q 2 000 1200,0 1 800 Total 1100,0 1 600 Excl. Russia 1000,0 1 400 and Belarus 1 200 900,0 1 000 800,0 Source: FINAT
Slide 26: UPM Communication Papers: Graphic paper prices
UPM Communication Papers: Graphic paper prices Europe North America China €/t $/t $/t 1300 1800 1400 1700 1200 1300 1600 1100 1500 1200 1000 1400 1100 900 1300 1200 1000 800 1100 900 700 1000 800 600 900 800 700 500 700 400 600 600 300 500 500 WFC r (100% chemical pulp) News SC LWC WFC WFU News SC L
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