Upm-kymmene Oyj · OMXHEX:UPM
Upm-kymmene Oyj — Q2 2026 Earnings Presentation
29 slides from Upm-kymmene Oyj's earnings presentation, Jul 23, 2026
Slide 1: UPM half year financial report 2026
UPM half year financial report 2026 CEO Massimo Reynaudo July 23, 2026
Slide 2: 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 3: Decarbonization solutions: strong results in Biofuels, ramp-up in Biochemicals, Energy improved y-o-y
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 4: 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 5: Renewable fibres: further improved results in Fibres South, challenging markets and maintenance 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 6: Communication Papers and Plywood: solid Q2 performance, graphic paper Joint Venture, plywood demerger plans progress
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 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 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 8: Definitive agreement signed and financing secured for the 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 9: With the portfolio initiatives, we change the company profile, increasing its 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 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: Continuing and discontinued operations, UPM total in the 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 12: Q2 2026 in numbers, continuing operations
Q2 2026 in numbers, continuing operations Sales and performance Comparable EBIT € million Sales Comparable EBIT 500 € million € million 2,355 212 450 400 350 +1% +71% 300 250 200 Comparable ROCE 150 % 6.0 100 50 0 +2.3pp 12 | © UPM
Slide 13: 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 13 | ©| © UPM UPM
Slide 14: H1 2026 operating cash flow temporarily impacted by working capital, items affecting comparability
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 15: 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 16: 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 17: Summary
Summary Improved Q2 results in all businesses, portfolio change progressing • Increased volumes, margin management and efficiency measures supported profitability in the inflationary business environment • Demerger plan announced for Plywood. The EGM to decide on the demerger plan will be held on Au
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Slide 19: 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 20: 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 21: 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 Q3/26 UPM Lappeenranta biorefinery • Maintenance costs • Production volumes Q3-Q4/26 Olkiluoto nuclear power plant unit OL3 • Operational
Slide 22: Maturity profile and liquidity
Maturity profile and liquidity € million 1 500 Liquidity on 30 June 2026 was €2.3 billion (cash funds and unused committed credit facilities) UPM’s committed credit facilities: 1 000 • €159 million rolling committed overdraft facility maturing 2027 • €500 million bilateral revolving credit facilitie
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
€/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 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 2021 2022 2023 2024 2025 H1 2026 profitability Comparable 270
Slide 26: 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 27: 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 28: 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 28 | © UPM
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