Upm-kymmene Oyj · OMXHEX:UPM
Upm-kymmene Oyj — Non-Deal Roadshow (July 2026)
56 slides from Upm-kymmene Oyj's roadshow presentation, July 2026
Slide 1: UPM – we renew the everyday
UPM – we renew the everyday Investor presentation July 2026
Slide 2: Our portfolio leverages competitive business platforms
Our portfolio leverages competitive business platforms • Decarbonization solutions Biochemicals, biofuels, CO2-free energy • Advanced materials Adhesive materials, specialty materials, plywood • Renewable fibres Pulp, other bioproducts • Communication papers 2 | © UPM
Slide 3: Portfolio initiatives change company profile, increasing growth potential and margins
With the portfolio initiatives, we change the company profile, increasing its growth potential and margins High growth potential and unique position Decarbonization solutions • Unique offering for new large electricity consumers, growth driven by electrification, datacenters and green industries • B
Slide 4: Definitive agreement signed for planned graphic paper Joint Venture
Definitive agreement signed and financing secured for the planned graphic paper Joint Venture • UPM Communication Papers and Sappi’s graphic paper business in Europe • Subject to merger control and other conditions • Expected to benefit customers and the entire industry by strengthening the resilien
Slide 5: UPM Plywood demerger plan to separate into new listed company
UPM Plywood demerger plan to separate it into a new independent listed company • WISA Group Plc to be listed on Nasdaq Helsinki in early November, with initially the same shareholder base as UPM • Demerger and listing prospectus available on www.upm.com/demerger • The EGM to decide on the demerger p
Slide 6: A focused portfolio to enable accelerated growth
A focused portfolio to enable accelerated growth in the coming years UPM sales UPM sales(*, excl. Communication Papers and Plywood €M €M 12 000 9 000 Consistent growth > GDP 11 000 8 000 10 000 7 000 9 000 6 000 8 000 5 000 7 000 4 000 6 000 3 000 (* unconsolidated 6 | © UPM
Slide 7: Our global business model has shown resilience
Our global business model has shown resilience By going more global we aim to accelerate growth UPM sales geographically, excl. Communication Papers and Plywood UPM sales in the future(* ROW Europe North America Asia Europe Asia ROW North America (* this is not a forecast 7 | © UPM
Slide 8: Our dedication to responsible business and environmental leadership will continue
Our dedication to responsible business and environmental leadership will continue 8 | © UPM
Slide 9: Our climate commitment
Our climate commitment WE ACT THROUGH WE ACT THROUGH WE ACT THROUGH FORESTS EMISSION REDUCTIONS PRODUCTS Committed to climate-positive -65% from owniCO2 emissions Innovative products forestry and enhancing -30% from CO2 emissions Scientifically verifying the biodiversity of supply chain climate impa
Slide 10: Innovation boosting performance and future growth
Innovation boosting performance and future growth R&D Investment (2025) Intellectual property: €404 million Over 5,000 patents accounting for Over 2,000 28.8% trademarks of operating cash flow Global research centers: 3 centers located in Finland, China, Germany 10 | © UPM
Slide 11: AI is being deployed at scale across our entire organization
AI is being deployed at scale across our entire organization Sales 25+ Logistics ongoing AI projects, cutting across UPM Operations Forests and plantations 11 | © UPM
Slide 12: Group financial performance and targets
Group financial performance and targets €m Comparable EBIT % Comparable ROE Net debt Net debt Net debt/ €m and leverage EBITDA (x) 14 3,0 2 200 5 000 2 000 12 4 500 2,5 1 800 Target: EBIT growth Target: 10% 4 000 1 600 10 Policy: ≤ 2x 3 500 2,0 1 400 8 3 000 1 200 1,5 2 500 1 000 6 2 000 800 1,0 4 1
Slide 13: Business area long-term return targets
Business area long-term return targets UPM UPM Adhesive UPM UPM UPM UPM Energy Materials Specialty Materials Fibres Communication Plywood Papers 30 30 30 30 30 30 28 ROCE % *) 28 ROCE % 28 ROCE% 28 ROCE % **) 28 FCF/CE % 28 ROCE % 26 26 26 26 26 26 24 24 24 24 24 24 22 22 22 22 22 22 20 20 20 20 20
Slide 14: 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 Operational investments 0
Slide 15: Consistently attractive dividend
Consistently attractive dividend Rewarding shareholders Dividend 10 years €/share % of comp. EPS Dividend policy UPM aims to pay attractive dividends, 1,60 100 targeting at least half of the comparable 1,40 90 earnings per share over time. 1,20 80 1,00 70 Dividend for the financial year 2025 0,80 60
Slide 16: Q2 2026 – improved results in all businesses, portfolio change progressing
Q2 2026 – improved results in all businesses, portfolio change progressing • Sales from continuing operations totaled €2,355 million (2,341 million in Q2 2025) • Comparable EBIT from continuing operations increased by 71% to €212 million, 9.0% of sales (124 million, 5.3%) • All businesses improved t
Slide 17: Continuing and discontinued operations in Half year financial report 2026
Continuing and discontinued operations, UPM total in the Half year financial report 2026 € million Q2 2026 Q2 2025 H1 2026 H1 2025 2025 Sales, continuing 2,355 2,341 4,781 4,914 9,392 • UPM Plywood is presented Sales, discontinued operations 84 59 164 132 264 as discontinued Sales, total 2,440 2,400
Slide 18: Decarbonization solutions: strong Biofuels, Biochemicals ramp-up, Energy improved
Decarbonization solutions: strong results in Biofuels, ramp-up in Biochemicals, Energy improved y-o-y Markets Actions Results €M UPM Energy % of sales 120 60 Comparable EBIT Electricity consumption growth Maximize value in the volatile Q2 2026 comparable EBIT 100 50 continued in Finland, +5% LTM mar
Slide 19: Advanced materials: robust sales growth and results
Advanced materials: robust sales growth and results UPM Adhesive Markets Actions Results €M Materials % of sales 80 20 Strong Q2 label materials Actions to sharpen Q2 2026 sales grew by 5% Comparable EBIT demand in Europe (+14% yoy) competitiveness comparable EBIT €44 million, 60 15 and Asia Pacific
Slide 20: Renewable fibres: improved Fibres South, challenging markets in Fibres North
Renewable fibres: further improved results in Fibres South, challenging markets and maintenance in Fibres North 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 -2% yoy in Apr-May
Slide 21: Communication Papers and Plywood: solid Q2 performance
Communication Papers and Plywood: solid Q2 performance, graphic paper Joint Venture, plywood demerger plans progress UPM Communication % of Markets Actions Results €M Papers sales 160 20 European demand for graphic UPM and Sappi signed a Q2 2026 comparable EBIT Comparable EBIT papers -3% yoy in Q2 d
Slide 22: Comparable EBIT in Q2 2026, continuing operations
Comparable EBIT in Q2 2026, continuing operations Q2 2026 vs. Q2 2025 Q2 2026 vs. Q1 2026 €M €M 400 400 350 350 300 300 259 10.7% 250 212 250 212 9.0% 9.0% 200 200 124 150 5.3% 150 100 100 50 50 0 0 22 | ©| © UPM UPM
Slide 23: H1 2026 operating cash flow temporarily impacted by working capital
H1 2026 operating cash flow temporarily impacted by working capital, items affecting comparability Cash flow (1 Operating cash flow (1 € million Q1-Q2 2026 Change yoy € million Comparable EBITDA 771 +93 800 Utilised provisions -67 -16 700 Other adjustments 5 -73 600 Change in working capital -339 -2
Slide 24: Solid financial position
Solid financial position Balance sheet Net debt and leverage (1 Net debt (1 Net debt Net debt/ € million June 30, 2026 € million EBITDA (x) 5 000 2,5 3,313 Net debt / EBITDA ratio 2.36 4 000 Policy: ≤ 2x 2,0 3 000 1,5 Cash funds 2 000 1,0 and unused credit facilities, € million 2,300 1 000 0 0,5 0,0
Slide 25: Foreign exchange exposure
Foreign exchange exposure Estimated 12-month net currency cash flow at the end of Q2 2026, before hedging, € million USD 1,380 • At the end of Q2 2026, UPM’s estimated net UYU -308 currency cash flows for the next 12 months GBP 141 totaled approximately €1,519 million JPY 108 • In addition, the earn
Slide 26: 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 27: Our businesses
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Slide 28: UPM’s electricity generation portfolio is clean and efficient
UPM Energy UPM’s electricity generation portfolio is clean and efficient to match the future needs UPM Energy electricity generation is 99% CO2-free Electricity demand is expected to grow significantly 250 200 CAGR +3-5% pa 12TWh 150 each year 100 50 Hydro Nuclear Thermal i 0 2010 2024 2045 Electric
Slide 29: 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 2021 2022 2023 2024 2025 H1 2026 profitability Comparable 270
Slide 30: UPM sharpens its focus on biofuels growth strategy
UPM Biofuels UPM sharpens its focus on biofuels growth strategy Feedstock Evaluating the technology potential development to to debottleneck enable the use the of additional Lappeenranta competitive and Biorefinery sustainable biomass i Qualification of CTO-derived UPM biofuels as Sustainable Aviati
Slide 31: Renewable fuels demand outgrows planned capacity as of 2030
UPM Biofuels Renewable fuels demand outgrows planned capacity as of 2030 Europe SAF, Mtoe Global sustainable fuels demand, Mtoe 12 Synthetic 42 52 Bio 47 21 4 Regulated demand increase accelerating as of 1 0 2030 ’26 ’30 ’20 ’25 ’30 ’35 ’26 ’30 50 32 Europe Road Renewable 31 36 Fuels, Mtoe 32 Synthe
Slide 32: UPM Biochemicals – multiple end-uses
UPM Biochemicals UPM Biochemicals – multiple end-uses Bio-Monoethylene Glycol (Bio-MEG) Renewable Functional Fillers (RFF) 32 | © UPM
Slide 33: Biobased chemicals are key to shifting away from high-CO2 materials
UPM Biochemicals Biobased chemicals are key to shifting away from high-CO2 materials Net-zero commitments of major global brands will The shift away from fossil feedstocks will rely on reflect on demand for sustainable chemicals bio-based solutions as first option to scale Scope 3: relative -55% by
Slide 34: UPM Biochemicals is a frontrunner in sustainable chemicals
UPM Biochemicals UPM Biochemicals is a frontrunner in sustainable chemicals offering a distinct product value add CO2 negative Strategic partnerships with leading High GHG reduction UPM Biochemicals from day one* players in various regions and industries confirm high demand for UPM products Renewabl
Slide 35: We address markets and segments with high future demand
UPM Biochemicals We address markets and segments with high future demand for sustainable solutions Global MEG market Global functional filler market Total demand 16 mt(2 Total demand >35 mt(1 Microsoft Excel Worksheet 25 kt 150 kt current renewable glycols supply renewable/recycled functional filler
Slide 36: After reaching full capacity, Leuna will focus on capacity increase and cost optimization
UPM Biochemicals After reaching full capacity, Leuna will focus on capacity increase, cost optimization and side stream valorization i 36 | © UPM
Slide 37: Competitive and sustainable fibre supplier for growing global everyday needs
UPM Fibres Competitive and sustainable fibre supplier for growing global everyday needs FINLAND NORTH AMERICA Pietarsaari Kymi • Competitive and sustainable operations in EUROPE Kaukas hardwood and softwood pulp CHINA • Global presence with strong market position: #1 multi-fibre and #3 market pulp s
Slide 38: Fibres South: world-class competitiveness
UPM Fibres Fibres South: world-class competitiveness Highly productive Best available Efficient plantations technologies logistics i of scale • Efficiencies • World-class • Continuous development in productivity outbound logistics .1 • Competitive mill concept Optimizing inbound • mt/a • Direct rail
Slide 39: Growth ambition in hardwood pulp
UPM Fibres Growth ambition in hardwood pulp UPM Pulp BEKP (eucalyptus) capacity Maximized competitiveness and debottlenecking Paso de los Toros ramped up to nominal capacity ~4 mt/a 3.4 mt/a Fray Bentos development & Fray Bentos debottlenecking acquired 1.1 mt/a 1.3 mt/a 2009 2019 2024 By 2030 Sourc
Slide 40: Fibres North: focus on profitability and value maximization
UPM Fibres Fibres North: focus on profitability and value maximization Well-maintained pulp Tight wood market Focus on capacity in Finland competitiveness • Nordic forest-based i industry is • Competitive business platform facing tight wood supply and and margin management are key 2.4 2.1 elevated w
Slide 41: Wood market prices in Finland
€/m3 30,00 40,00 50,00 60,00 70,00 80,00 90,00 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 2023/10 Source: Natural Resources Institute Finland, standing sales 2024/01 Logwood stumpage prices 2024/04 Birch 2024/07
Slide 42: Active forest strategy – forest assets increasingly productive and valuable
UPM Fibres Active forest strategy – UPM’s forest assets are increasingly productive and valuable 4 000 Uruguay plantations 3 500 “Fast turnover, low inventory” 3 000 • Value €1.7bn • Continuous productivity improvement (pulp tonnes/ha) 2 500 • Investing in strategic forest assets 2 000 Finland and o
Slide 43: Robust demand outlook for market pulp
UPM Fibres Robust demand outlook for market pulp Market pulp shipments trend Entry of market bleached pulp capacity 60 million tonnes 7 000 Additional capacity, 6 000 1000 tonnes/annum MARKET HARDWOOD PULP DEMAND 50 5 000 4 000 3 000 40 2 000 1 000 30 i 0 ? ? ? ? -1 000 MARKET SOFTWOOD PULP DEMAND 2
Slide 44: 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 45: The self-adhesive label stock market
UPM Adhesive Materials 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 Self-adhesive All labelling technologies All self adhesive materials labelsto
Slide 46: Entering attractive adjacent markets
UPM Adhesive Materials 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 UPM Adhesive Materials Self-adhesive labels Self- Self-
Slide 47: 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 Q2 2026: Q2 2026: +14% y-o-y 1300,0 +1% y-o-y +6% 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 48: Renewable, recyclable papers for labeling and packaging
UPM Specialty Materials Renewable, recyclable papers for labeling and packaging Sales 2025 EBITDA 2025 ROCE 2025 € million € million € million 1,485 204 20.9% LATAM Packaging NA Sales by market Sales by product Label & Release EMEIA Fine APAC 48 | © UPM
Slide 49: UPM Specialty Materials’ growth strategy
UPM Specialty Materials UPM Specialty Materials’ growth strategy Committed value creation Brand based value Face papers Office papers Special by Release base nature Graphic papers Focused, committed and agile papers Globally recognized leadership PACKAGING Packaging papers Co-creating remarkable pro
Slide 50: Entering attractive adjacent markets
UPM Specialty Materials Entering attractive adjacent markets • Flexible packaging entered through innovation & co- creation • Robust barrier paper product development pipeline • Further portfolio expansion in label & release papers Paper Glassine Global ? Global release flexible packaging materials
Slide 51: UPM Plywood focuses on three end use segments
UPM Plywood UPM Plywood focuses on three end use segments Construction Vehicle flooring LNG shipbuilding UPM’s position and direction UPM’s position and direction UPM’s position and direction • Leading position in high and medium • Leading position in Europe • Leading supplier in LNG plywood range s
Slide 52: UPM’s key markets are in the high and mid segments primarily in EMEA
UPM Plywood UPM’s key markets are in the high and mid segments primarily in EMEA region Strategic choices Sales Relevant market Low-end EMEA market Non-footprint by category ~5.1Mm3 market ~12Mm3 market 1. Demanding industrial applications Industrial 2. High and medium range applications standard pr
Slide 53: The market's widest range of graphic papers
UPM Communication Papers The market's widest range of graphic papers, for various end-uses and purposes Magazines Catalogues and Advertising and Office, manuals, arts brochures direct mail Newspapers and Books and education Envelopes and Fine papers supplements direct mail News & UMIO SC Coated mech
Slide 54: 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
Slide 55: Paper price vs. cash cost of marginal cost producer
Paper price vs. cash cost of marginal cost producer €/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 2026 Sources: UPM, PPI, Fastmarkets, AFRY 55 | © UPM
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