UPM-Kymmene (UPM) Investor presentation summary

Strategic business portfolio and growth platforms

• Portfolio spans decarbonization solutions, advanced materials, renewable fibres, and communication papers, leveraging sustainable, renewable feedstocks for market growth opportunities.

• Five-year average comparable EBIT (2020-2024) was €1,351m, with varying capital intensity and profitability across product groups.

• Sales in 2024 reached €10.3bn, with a balanced market presence in Europe, North America, Asia, and the rest of the world.

Financial performance, targets, and capital allocation

• Targeting EBIT growth and a 10% ROE, with net debt/EBITDA policy set at ≤2x; net debt at Q3 2025 was €3,218m and net debt/EBITDA at 2.36.

• Attractive dividend policy aims for at least half of comparable EPS; 2024 dividend was €1.50 per share, 86% of EPS.

• Major investment cycle is ending, with capex excluding acquisitions estimated at €400m for 2025 and consistently low operational investment needs.

Business area performance and strategic actions

• Fibres South achieved world-class low-cost platform status, while Fibres North faced profitability challenges due to high wood costs and maintenance shutdowns.

• Advanced materials focused on competitiveness, margin improvement, and growth in labels and packaging, with strategic review of plywood underway.

• Decarbonization solutions expanded CO2-free electricity supply and launched new biofuels and biochemicals businesses, targeting full production and positive EBIT by 2027.

• Communication papers implemented capacity reductions and cost savings, with Q3 2025 EBIT at €14m, impacted by weak demand and trade uncertainties.