UPM-Kymmene (UPM) SEB Nordic Large Cap Seminar presentation summary

Financial performance and profitability

• All business segments achieved year-on-year improvement in results, supported by increased volumes, margin management, and efficiency measures in an inflationary environment.

• Q2 2026 sales from continuing operations reached €2,355 million, with comparable EBIT up 71% year-on-year to €212 million.

• Comparable EBITDA margin for continuing operations improved to 15.1% in Q2 2026, up from 10.7% a year earlier.

• Operating cash flow for H1 2026 was €225 million, temporarily impacted by working capital outflows and restructuring costs.

• Net debt stood at €3,313 million with a net debt/EBITDA ratio of 2.36, maintaining a solid financial position.

Strategic portfolio changes and growth initiatives

• Signed a definitive agreement with Sappi for a 50/50 graphic paper joint venture, expected to strengthen industry resilience and improve profitability.

• Board approved the demerger of the Plywood business, with WISA Group Plc to be listed independently, aiming for sales over €550 million and 13% EBIT margin by 2030.

• Portfolio initiatives focus on renewable fibres, decarbonization solutions, and advanced materials to drive growth and margin expansion.

• Consistent sales growth above GDP is targeted by focusing on higher-margin, high-growth segments and regions.

Impact and outlook

• Portfolio changes are designed to increase growth potential and margins, enhancing value creation and cash flow.

• The graphic paper joint venture is anticipated to generate €100 million in annual synergies and improve balance sheet metrics.

• Demerger of Plywood business will allow both entities to pursue independent strategies and unlock shareholder value.

• Expansion in advanced materials and renewable solutions positions the company for healthy, predictable, and profitable growth.