Drytac launches award-winning Interlam Eco Anti-Graffiti film in North America

KEY HIGHLIGHTS *Sales volumes increased by 5% *Continued positive development of the ramp-up at Gruvön (KM7) *Cost and efficiency programme exceeding target *Strong operating cash flow *The Board of Directors proposes dividend of SEK 4.30 per share. Quarterly data *Net sales amounted to SEK 5 803 million (5 815). Excluding currency effects sales grew by 2% *Operating profit rose to SEK 163 million (103), including SEK 73 million revaluation gain in an associated company *Net profit from continuing operations was SEK 242 million (283)

Q2/2020 compared with Q2/2019 -Net sales decreased by 16.6% to EUR 621.5 million (745.1), mainly due lower delivery volumes -Comparable EBITDA decreased by 11.7% to EUR 74.0 million (83.8), representing 11.9% (11.2) of net sales, supported by variable and fixed costs reduction actions -Operating result of EUR 25.8 million (35.0). Q1-Q2/2020 compared with Q1-Q2/2019: -Net sales decreased by 10.9% to EUR 1,339.6 million (1,502.8), negatively impacted by price, product mix and volumes -Comparable EBITDA increased by 4.4% to EUR 165.7 million (158.8), representing 12.4% (10.6) of net sales, as lower variable costs more than offset lower selling prices and deliveries -Operating result of EUR 99.6 million (52.9), including a capital gain of EUR 32.0 million from the sale of the fine art paper business

The trials for newsprint paper production on the paper machine 6 at UPM Jämsänkoski paper mill as well as paper test runs at printing plants have been successful. As a consequence of this, the product portfolio of uncoated mechanical papers of the paper machine 6 will in the future be extended to cover also newsprint paper. “Our employees have invested a great deal of effort and development work in recent weeks to get to where we stand today. We have developed high-quality coldset paper grades especially for domestic newsprint customers and the feedback from our customers’ test runs has been extremely good. With those enlarged capabilities of Jämsänkoski PM 6 UPM is able to deliver newsprint qualities uninterruptedly to Finland. This is keeping our site flexible and competitive,” says Antti Hermonen, General Manager, UPM Jämsänkoski. A complete range of SC and newspaper grades can now be produced on site in Jämsänkoski, focusing on our Finnish and Nordic customers with high quality products for newspapers, magazines and advertising supplements.