UPM-Kymmene (UPM) Investor Presentation summary

Strategic business portfolio and growth

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

• Five-year average comparable EBIT by product group highlights strong performance in advanced materials and renewable fibres, with total average EBIT of €1,351m (2020–2024).

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

• Major investment cycle is ending, with 2025 capex estimated at €400m, focusing on operational efficiency.

• Attractive dividend policy targets at least half of comparable EPS, with a 2024 dividend of €1.50 per share (86% payout ratio).

Sustainability and climate leadership

• Recognized for sustainability with top ratings from Dow Jones, MSCI, CDP, and Ecovadis, and a 77/100 CSA score.

• Committed to climate-positive forestry, -65% own CO2 emissions, -30% supply chain emissions, and science-based targets.

• Net-zero strategy includes carbon sinks, emission reductions, and product innovation, with significant avoided emissions through fossil substitution.

• Forest Action program covers climate, biodiversity, water, soil, and social contribution.

Financial performance and outlook

• Comparable EBIT for Q2 2025 was €126m (5.2% of sales), down 31% year-on-year, with sales at €2.4bn.

• Net debt at end of Q2 2025 was €3,310m, with net debt/EBITDA at 2.12; cash funds and credit facilities totaled €2.7bn.

• H2 2025 EBIT expected between €425–650m, benefiting from lower variable costs and resilient advanced materials, but facing lower pulp prices and higher maintenance.

• 14% of 2024 sales were to the U.S.; trade uncertainties and currency fluctuations have indirect impacts on demand and supply chains.