UPM-Kymmene (UPM) Partnership summary

Opening remarks and agenda

• Announcement of a non-binding letter of intent for a 50/50 joint venture between two major graphic paper businesses in Europe.

• The joint venture aims to combine UPM Communication Paper and Sappi's European graphics paper business.

Deal rationale and strategic fit

• Aims to address structural changes and declining demand in the European graphic paper industry by combining two major players' assets into a more resilient, efficient, and sustainable business.

• Seeks to ensure long-term supply security and commitment for graphic paper customers while supporting decarbonization and EU climate objectives.

• Enables both parties to focus on core growth markets and provides future divestment flexibility after three years.

Objectives of the partnership

• Transform long-term commitment to the graphic paper market into a concrete joint venture.

• Ensure reliable, sustainable supply for the graphic paper industry and its customers.

• Generate value for shareholders through synergies and operational efficiencies.