Upm-kymmene Oyj · OMXHEX:UPM
Upm-kymmene Oyj — Q4 2025 Earnings Presentation
33 slides from Upm-kymmene Oyj's earnings presentation, Feb 4, 2026
Slide 1: UPM Financial statements release 2025
UPM Financial statements release 2025 CEO Massimo Reynaudo February 4, 2026
Slide 2: Positive finish to the year: strong cash flow and decisive strategic actions
Positive finish to the year: strong cash flow and decisive strategic actions 2025: geopolitical and trade tensions • Tariffs, currency changes, lower consumer confidence and sales prices • We intensified actions to sharpen competitiveness and execute our portfolio strategy • Comparable EBIT €921 mil
Slide 3: Strategic actions in 2025
Strategic actions in 2025 Transform the company • Metamark acquisition • Sharpened the focus in biofuels growth strategy and discontinued the Rotterdam biorefinery development; profitability turnaround • Started commercial business in biochemicals • Strategic review of UPM Plywood • Graphic paper Jo
Slide 4: Decarbonization solutions
Decarbonization solutions: positive market developments, commercial business started in biochemicals Markets Actions Results €M UPM Energy % of sales 100 50 Comparable EBIT Finnish electricity consumption Maximize value in the volatile Q4 comparable EBIT €54 80 40 grew by 3% in 2025 electricity mark
Slide 5: Advanced materials
Advanced materials: resilient performance, growth faster than the markets in adhesive materials UPM Adhesive Markets Actions Results €M Materials % of sales 80 20 Comparable EBIT Resilient, growing (+2%) label Actions to sharpen Growth faster than materials demand in Europe competitiveness and restr
Slide 6: Renewable fibres
Renewable fibres: improved performance from the previous quarter, cost reduction continues Markets Actions Results €M UPM Fibres % of sales 240 30 Global hardwood pulp shipments Cost reduction continued in World-class low-cost platform Comparable EBIT 200 25 grew by 6% Jan-Nov/2025 2025, -$25/t from
Slide 7: Communication Papers and Plywood
Communication Papers and Plywood: solid Q4 in both businesses, planned Joint Venture and strategic review UPM Communication Markets Actions Results €M Papers % of sales 160 20 Tariff uncertainty impacted the Planned graphic paper Joint Q4 comparable EBIT €110 Comparable EBIT markets in 2025 Venture
Slide 8: UPM Plywood strategic review summary
UPM Plywood strategic review summary • Assess options for maximizing the long-term potential of the Plywood business, while also benefiting the value creation for UPM’s shareholders • Includes a range of possibilities, including a potential separation from UPM through for example a divestment, parti
Slide 9: Graphic paper Joint Venture summary
Graphic paper Joint Venture summary – non-binding letter of intent • New, independent graphic paper company, owned 50/50 by UPM and Sappi • Would include the UPM Communication Papers business and Sappi’s graphic paper business in Europe • Enterprise value of € 1.42 billion, excl. the value of synerg
Slide 10: Changing the company profile
With the portfolio initiatives, we aim to change the company profile, increasing its growth focus and improving margins UPM sales(*, excl. UPM businesses Market growth Communication Papers and Plywood €M Decarbonization solutions 9 000 +++ Consistent growth > GDP Large long-term growth potential wit
Slide 11: Q4 2025 results in brief
Q4 2025: positive finish to the year and strong cash flow €M 500 Comparable EBIT 400 Q4 2025 results in brief 300 • Sales decreased by 12% to €2,312 million 200 (€2,632 million in Q4 2024), impacted by lower 100 sales prices, volumes and changes in currencies 0 • Comparable EBIT decreased by 15% to
Slide 12: Comparable EBIT in Q4 2025
Comparable EBIT in Q4 2025 €M €M 450 418 450 15.9% 400 355 400 355 15.3% 15.3% 350 350 300 300 250 250 200 200 153 6.7% 150 150 100 100 50 50 0 0 12 | ©| © UPM UPM
Slide 13: Foreign exchange exposure
Foreign exchange exposure Estimated 12-month net currency cash flow at the end of 2025, before hedging, € million USD 1,310 • At the end of 2025, UPM’s estimated net UYU -305 currency cash flows for the next 12 months GBP 117 totaled approximately €1,456 million JPY 101 • In addition, the earnings o
Slide 14: 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 15: Solid financial position
Solid financial position Net debt and leverage Net debt Net debt/ €M EBITDA (x) • Net debt €3,004 million at the end of 2025 5 000 2,5 • Net debt / EBITDA 2.29 4 000 2,0 • Cash funds and committed credit facilities €2.7 Policy: ≤ 2x billion at the end of 2025 3 000 €M 1,5 • No financial covenants •
Slide 16: Low capital expenditure in 2026
Low capital expenditure in 2026 €M Capital expenditure Estimate 1 600 1 400 1 200 Strategic investments Capex 2025 • Capex excluding acquisitions was €409m 1 000 800 Capex estimate 2026 600 Depreciation • Capex excluding acquisitions €300m 400 • Operational investment needs consistently low 200 0 20
Slide 17: Attractive dividend
Attractive dividend €/share Dividend % of comparable EPS 1,60 110 1,40 100 Dividend policy 90 1,20 80 • UPM aims to pay attractive dividends, targeting at least half of the comparable earnings per 1,00 70 share over time 60 0,80 50 0,60 Dividend proposal for 2025 40 30 • €1.50 (1.50) per share 0,40
Slide 18: Summary
Summary • Q4 was a positive finish to the year 2025, with improving performance in most businesses and strong cash flow • Second quarter of decreasing net debt, while also paying the second instalment of dividend • We initiated decisive strategic actions to improve competitiveness and transform the
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Slide 20: 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) 2 200 14 3,0 5 000 2 000 12 4 500 2,5 1 800 Target: EBIT growth Target: 10% Policy: ≤ 2x 4 000 1 600 10 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 21: Business area long-term return targets
Business area long-term return targets UPM UPM UPM UPM Communication UPM UPM Adhesive Energy Fibres Specialty Papers Papers Plywood Materials 30 30 30 30 30 30 28 ROCE % *) 28 ROCE % **) 28 ROCE% 28 FCF/CE % 28 ROCE % 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 20
Slide 22: Reportable segments change: UPM Fibres
Change in reportable segments as of January 1, 2026 (1/2): UPM Forest business moved to UPM Fibres business area, as an integral and strategic part of Fibres North operations UPM Fibres UPM Fibres as published UPM Fibres restated Q1/25 Q2/25 Q3/25 Q4/25 2025 Q1/25 Q2/25 Q3/25 Q4/25 2025 Sales, € mil
Slide 23: Reportable segments change: Other operations
Change in reportable segments as of January 1, 2026 (2/2): UPM Forest moved from Other operations to UPM Fibres Other operations Other operations as published Other operations restated Q1/25 Q2/25 Q3/25 Q4/25 2025 Q1/25 Q2/25 Q3/25 Q4/25 2025 Sales, € million 166 192 149 187 693 166 192 149 187 693
Slide 24: 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 affected particularly UPM Fibres and UPM 46% Communication Papers in 2025 locally 54% imported • Indirectly, tariffs may impact demand and trade produced flows, cause hesitation among cus
Slide 25: 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 Q3-Q4/26 Olkiluoto nuclear power plant unit OL3 an impact on • Maintenance costs • Production volumes Q4/26 UPM Paso de los Toros pulp mill • Operation
Slide 26: Maturity profile and liquidity
Maturity profile and liquidity € million 1 500 Liquidity on December 31, 2025 was €2.7 billion (cash funds and unused committed credit facilities) 1 000 UPM’s committed credit facilities: • €159 million rolling committed overdraft facility maturing 2027 • €600 million bilateral revolving credit faci
Slide 27: 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 28: Wood market prices in Finland
€/m3 40,00 50,00 60,00 70,00 80,00 90,00 30,00 2020/01 2020/04 2020/07 2020/10 2021/01 2021/04 2021/07 Pine 2021/10 2022/01 2022/04 2022/07 2022/10 Spruce 2023/01 2023/04 2023/07 2023/10 Birch Logwood purchase prices 2024/01 2024/04 2024/07 Source: Natural Resources Institute Finland 2024/10 2025/01
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 2020 2021 2022 2023 2024 2025 profitability Comparable EBIT, 1
Slide 30: UPM Adhesive Materials: label materials demand
UPM Adhesive Materials: label materials demand European North American M m2 market shipments M m2 market shipments FY 2025: FY 2025: 2 200 +1% y-o-y +2% y-o-y 1 300 Q4 2025: Q4 2025: 2 000 -1% y-o-y +2% y-o-y -5% q-o-q -1% q-o-q 1 200 1 800 Total 1 100 1 600 Excl. Russia 1 000 1 400 and Belarus 1 20
Slide 31: 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 32: 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 Sources: UPM, PPI, Fastmarkets, AFRY 32 | © UPM
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