UPM Specialty Papers to display new co-created recyclable packaging solutions at PACK EXPO International 2024

The Group's consolidated sales reached EUR 2,528.4 million and were therefore close to the previous year's level (2019: EUR 2,544.4 million). A volume-related increase in sales in the packaging division was offset by a price-related decrease in the cartonboard division. EBITDA increased by 2.4% or EUR 9.3 million to EUR 398.9 million (2019: EUR 389.6 million), the EBITDA margin to 15.8% (2019: 15.3%) ). At EUR 231.4 million, the operating result was 9.4% or EUR 23.9 million below the previous year (2019: EUR 255.3 million). Financial income of EUR 1.7 million (2019: EUR 1.4 million) was offset by financial expenses of EUR -7.9 million (2019: EUR -8.4 million). The “other financial result - net” changed to EUR -3.2 million (2019: EUR 2.8 million), primarily due to changes in the foreign currency result. At EUR 222.1 million, earnings before taxes were therefore 11.6% below the previous year (2019: EUR 251.1 million). Income taxes amounted to EUR 59.8 million (2019: EUR 60.9 million), resulting in an effective Group tax rate of 27.0% (2019: 24.3%).

Working closely with partners from across the food packaging value network, UPM Specialty Papers is co-creating transformative solutions that reimagine the future of sustainable packaging. A long-standing relationship with Henkel, a worldwide leader in industrial and consumer businesses, has now resulted in a recyclable, heat-sealable packaging material compatible with existing packaging lines. Pushing the performance of barrier papers to an unsurpassed level of grease resistance, it offers a tried and tested concept for converters. The plastic coating traditionally required for protection and heat-sealing renders the final product difficult to recycle. Inspired by a shared focus on creating sustainable alternatives, UPM Specialty Papers and Henkel have reinvented the concept to help brand owners and converters meet ever growing consumer and regulatory demands for easy to recycle packaging.

Q1-Q3 2022 in brief • Net sales increased 31% to EUR 3,375 million (EUR 2,575 million) • Comparable net sales growth at Group level was 18 % and 19% in emerging markets • The impact of currency movements on the Group’s net sales was EUR 186 million and EUR 16 million on EBIT • Capital expenditure was EUR 185 million (EUR 147 million) • Free cash flow was EUR -60 million (EUR 28 million)