WISA Group (WISA) investor relations material

Separation and investment case

• UPM shareholders approved the partial demerger in Aug 2026; each was set to receive one share, with a Helsinki listing planned for Nov 2026.

• Independence aims to sharpen strategic focus, reveal standalone value drivers and support growth and fair valuation; unlike UPM’s communication-paper JV rationale, the plywood separation sought to unlock value potential.

• Premium plywood, high entry barriers, sticky customers and cost control underpin resilience and cash generation; growth targets were considered achievable using existing mill capacity without major near-term investment.

• Standalone preparation included building independent functions and moving off UPM SAP; higher fixed costs were expected, alongside continuing UPM agreements for wood sourcing and logistics.

Markets and product portfolio

• Focus markets totaled 4.6m m³ and €3.1bn in value; management forecast 5.3% annual growth to €4.3bn by 2030, led by panel trading and construction.

• LNG vessel demand was forecast to grow ~9% annually through 2030; certification, technical standards, supply scale and customer trust create high entry barriers.

• Demand drivers include LNG carrier growth, construction recovery and renovation, vehicle flooring demand, and regulations favoring lower-carbon products.

• Four focus end uses are panel trading and construction, vehicle flooring, LNG shipbuilding and parquet manufacturing; turnover mix was 58%, 12%, 14% and 4%, respectively, with birch and spruce sales split ~50/50.

• Premium positioning rests on product quality, tailored service and value-based pricing; existing birch and spruce capacity was expected to capture market growth.

Strategy and growth plans

• Strategy prioritizes premium applications, customer partnerships, birch and spruce product lines, operational efficiency, continuous improvement and cost control.

• Commercial priorities include growing share of wallet with existing customers, winning strategic accounts and expanding in underrepresented markets through value-based pricing.

• Operational priorities include productivity, yield, quality, higher-margin output, preventive maintenance and greater production from the existing fixed-cost base.

• Targeted automation, debottlenecking and digital tools support improvements; the Mill Data Platform launched at production sites, and AI-based quality sorting was being tested at Otepää.

• Potential upside includes next-generation products, wood modification, geographic expansion, selected strategic investment and strategy-aligned M&A in a fragmented European market.