Upm-kymmene Oyj · OMXHEX:UPM
Upm-kymmene Oyj — Q1 2026 Earnings Presentation
28 slides from Upm-kymmene Oyj's earnings presentation, Apr 29, 2026
Slide 1: UPM Interim Report Q1 2026
UPM Interim Report Q1 2026 CEO Massimo Reynaudo April 29, 2026
Slide 2: Q1 2026 – good start to the year
Q1 2026 – good start to the year • Comparable EBIT was €274 million, 10.9% of sales (287 million, 10.8%) • Excellent performance in decarbonization solutions • Resilient performance in advanced materials • Underlying improvement in renewable fibres • UPM announced a demerger plan concerning the sepa
Slide 3: Decarbonization solutions: record Q1 results in Energy, strong in Biofuels
Decarbonization solutions: record Q1 results in Energy, strong in Biofuels, ramp-up continues in Biochemicals Markets Actions Results €M UPM Energy % of sales 120 60 Comparable EBIT Record Q1 electricity Maximize value in the volatile Record Q1 results: comparable 100 50 consumption in Finland, mark
Slide 4: Advanced materials: resilient performance
Advanced materials: resilient performance UPM Adhesive Markets Actions Results €M Materials % of sales 80 20 Solid Q1 label materials demand Actions to sharpen Q1 comparable EBIT €33 Comparable EBIT in Europe (+2% yoy) and Asia competitiveness continued million, 8% of sales 60 15 Pacific Investments
Slide 5: Renewable fibres: steady performance in Fibres South, wood costs decreased in Fibres North
Renewable fibres: steady performance in Fibres South, wood costs decreased in Fibres North Markets Actions Results €M Fibres South % of sales 150 30 Global hardwood pulp shipments Optimization of wood sourcing World-class low-cost platform Comparable EBIT 125 25 flat yoy in Jan-Feb/2026 and inbound
Slide 6: Communication Papers and Plywood: solid Q1, planned Joint Venture and demerger plan
Communication Papers and Plywood: solid Q1, planned Joint Venture and demerger plan UPM Communication % of Markets Actions Results €M Papers sales 160 20 European demand for graphic Planned graphic paper Joint Optimizing energy consumption Comparable EBIT papers -4% yoy in Q1 Venture with Sappi in c
Slide 7: UPM Plywood demerger plan to separate it into a new independent listed company
UPM Plywood demerger plan to separate it into a new independent listed company • WISA Group Plc to be listed on Nasdaq Helsinki, with initially the same shareholder base as UPM • Increase shareholder value by → WISA Group solely pursuing the strategic priorities and growth opportunities of the plywo
Slide 8: Preparations continue for the planned graphic paper Joint Venture
Preparations continue for the planned graphic paper Joint Venture • UPM Communication Papers and Sappi’s graphic paper business in Europe • Subject to definitive agreements and approval of merger authorities • Expected to benefit customers and the entire industry by strengthening the resilience of E
Slide 9: With the portfolio initiatives, we aim to change the company profile
With the portfolio initiatives, we aim to change the company profile, increasing its growth potential and margins High growth potential and unique position • Unique offering for new large electricity consumers, growth driven by electrification, datacenters and green industries • Biofuels and Biochem
Slide 10: A focused portfolio to enable accelerated growth in the coming years
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 10 | © UPM
Slide 11: Q1 2026 in numbers
Q1 2026 in numbers Sales and performance Comparable EBIT € million Sales Comparable EBIT 500 € million € million 2,505 274 450 400 350 -5% -5% 300 250 200 Operating cash flow 150 € million 89 100 50 0 11 | © UPM
Slide 12: Comparable EBIT in Q1 2026
Comparable EBIT in Q1 2026 Q1 2026 vs. Q1 2025 Q1 2026 vs. Q4 2025 €M €M 450 450 400 400 355 15.3% 350 350 287 274 274 300 10.8% 300 10.9% 10.9% 250 250 200 200 150 150 100 100 50 50 0 0 12 | ©| © UPM UPM
Slide 13: Outlook
Outlook (* • Profit guidance: UPM’s comparable EBIT in H1 2026 is expected to be approximately in the range of €325-525 million (€413 million in H1 2025, and €508 million in H2 2025). • Outlook: in H1 2026, compared with H2 2025, UPM’s performance is expected to benefit from moderately higher sales
Slide 14: Solid financial position
Solid financial position Balance sheet Net debt and leverage Net debt Net debt Net debt/ € million March 31, 2026 € million EBITDA (x) 5 000 2,5 2,962 Net debt / EBITDA ratio 2.30 4 000 Policy: ≤ 2x 2,0 3 000 1,5 Cash funds 2 000 1,0 and unused credit facilities, € million 2,400 1 000 0 0,5 0,0 No f
Slide 15: 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 16: Summary
Summary Good start to the year • Excellent performance in decarbonization solutions • Demerger plan announced for Plywood • Preparations continue for the planned graphic paper Joint Venture • With the portfolio initiatives, we aim to change the company profile, increasing its growth potential and ma
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Slide 18: Foreign exchange exposure
Foreign exchange exposure Estimated 12-month net currency cash flow at the end of Q1 2026, before hedging, € million USD 1,395 • At the end of Q1 2026, UPM’s estimated net UYU -299 currency cash flows for the next 12 months GBP 136 totaled approximately €1,569 million JPY 102 • In addition, the earn
Slide 19: UPM and tariffs
UPM and tariffs 13% of UPM sales in 2025 was to the U.S. • Global trade uncertainties and the weaker U.S. dollar 46% affected particularly UPM Fibres and UPM locally Communication Papers in 2025 produced 54% imported • Indirectly, tariffs may impact demand and trade flows, cause hesitation among cus
Slide 20: Maintenance shutdowns in 2026
Maintenance shutdowns in 2026 Timing Unit Q2/26 Olkiluoto nuclear power plant units OL1 and OL2 UPM Pietarsaari pulp mill Maintenance shutdowns have an impact on Q3-Q4/26 Olkiluoto nuclear power plant unit OL3 • Maintenance costs • Production volumes • Operational efficiency Q4/26 UPM Paso de los To
Slide 21: Maturity profile and liquidity
Maturity profile and liquidity € million 1 500 Liquidity on 31 March 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 faci
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: Market prices for wood in Finland have decreased
€/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 Pine 2022/01 2022/04 2022/07 2022/10 Spruce 2023/01 2023/04 2023/07 2023/10 Logwood purchase prices Birch 2024/01 2024/04 Source: Natural Resources Institute Finland 2024/07 2024/10 2025/01
Slide 24: 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 Q1 2026 profitability Comparable 270
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 Q1 2026: Q1 2026: +2% y-o-y 1 300 -2% y-o-y 2 000 +13% q-o-q +5% q-o-q 1 200 1 800 Total 1 100 1 600 Excl. Russia 1 000 1 400 and Belarus 1 200 900 1 000 800 Source: FINAT Source:
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
Slide 27: 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 2026 Sources: UPM, PPI, Fastmarkets, AFRY 27 | © UPM
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