Report (upm interim report q3 2026 en)

Q3 2026 highlights, continuing operations

• Sales totaled €2,202 million (2,226 million in Q3 2025)

• Comparable EBIT decreased by 8% to €131 million, 5.9% of sales (142 million, 6.4%)

• Q3 performance impacted by lower deliveries during customer destocking, and increased variable costs

• Actions to improve working capital efficiency resulted in strong operating cash flow at € 420 million (218 million)1)

• The Extraordinary General Meeting in August decided on the demerger plan, WISA Group plc to start trading on Nasdaq Helsinki in November

• Preparations continued for the planned graphic paper Joint Venture. The transaction is subject to merger control approvals

  Q1-Q3 2026 highlights, continuing operations

• Sales totaled €6,983 million (7,140 million in Q1-Q3 2025)

• Comparable EBIT increased by 10% to €601 million, 8.6 % of sales (545 million, 7.6 %)

• Strong performance in Decarbonization solutions businesses (UPM Energy and UPM Biofuels)

• Stable performance in Advanced materials businesses (UPM Adhesive Materials and UPM Specialty Materials), and in UPM Fibres

• Operating cash flow was €645 million (685 million)1)

• The first installment of the dividend for the year 2025 was paid in April, totaling €395 million

• Net debt was 2,993€ million at the end of September (3,218 million) and net debt to EBITDA ratio was 2.09 (2.36)1)

1) Operating cash flow, net debt and net debt to EBITDA ratio include continuing and discontinued operations.

On August 31, 2026, the Extraordinary General meeting resolved on the partial demerger of UPM in accordance with the demerger plan approved by the Board of Directors of UPM on April 29, 2026, and approved a demerger plan. According to the demerger plan, the Plywood business is separated into an independent company to be named as WISA Group Plc. As a result of the planned demerger, the Plywood business is presented as a discontinued operation in accordance with IFRS 5. Unless otherwise stated, the commentary in this report relates to UPM's continuing operations. More information in Financial statement information Note 10 assets and liabilities classified as held for distribution to owners and discontinued operations.

UPM presents certain measures of performance, financial position and cash flows, which are alternative performance measures in accordance with the guidance issued by the European Securities and Markets Authority (ESMA). The definitions of alternative performance measures are presented in UPM's » Annual Report 2025

The financial information presented for the discontinued operations is not representative of the historical or future profitability of the UPM Plywood business area as a standalone business. Information on UPM Plywood's performance is presented in segment information. WISA Group Plc's demerger and listing prospectus is published at https://www.upm.com/demerger.

"This was a softer quarter following a strong first half. The broader global uncertainty and persistently high energy costs were visible in more cautious customer activity. In some of our markets, we saw significant destocking among customers, resulting in lower deliveries. Together with higher variable costs, this weighed on performance, although we were able to partly offset the impact through pricing actions. A clear highlight for the quarter was the strong cash flow, supported by improved working capital efficiency.

We continued our work to shape UPM for the future as a more focused company - built around businesses with strong positions in structurally growing markets. The separation of our Plywood business is just days away from completion and will result in the establishment of WISA Group as an independent listed company.

Operational preparations for the planned graphic paper Joint Venture with Sappi have progressed well. In early October, however, the European Commission restated its serious concerns about the transaction. We believe in the strength of our arguments in addressing the concerns raised. At the same time, we have opened discussions on potential remedies.

Since quarter-end, we have also inaugurated our new biorefinery in Leuna, Germany. Leuna brings our biochemical science and technology to industrial scale and will open up new markets and opportunities for us and our customers. We have now reached production readiness of Renewable Functional Fillers, and qualification volumes for customers will be produced in Q4. This means that two of the three core processes have been tested and are in production. Our customer deliveries now range from industrial sugars, through lignin-derived specialty chemicals to RFF.

During commissioning of the third and final process turning sugars to glycols, we have identified specific modifications that are required. We now expect to start integrated production of the refinery in Q2 2027 - approximately six months later than previously anticipated - and to reach nominal capacity in early 2028.

During the third quarter, sales from our continuing operations were €2,202 million, and comparable EBIT was €131 million, down 8% year on year. At the same time, our year-to-date performance remains clearly ahead of 2025: comparable EBIT increased by 10% to €601 million and the comparable EBIT margin improved to 8.6% from 7.6%.

Cash generation was particularly strong in the quarter. Actions to improve working capital efficiency contributed to operating cash flow of €420 million. Net debt at the end of the quarter was lower, at €2,993 million, and the net debt to EBITDA ratio improved to 2.09. Strengthening cash flow and maintaining a strong balance sheet remain clear priorities for us.

Our decarbonization solutions businesses continued to perform well, supported by good demand and pricing for renewable fuels. UPM Energy reported broadly stable performance during the summer quarter, which included the maintenance shutdown of the OL3 nuclear power unit. Strong demand for electricity continued, and new data center projects were announced during the quarter in Finland.

With our existing 12 TWh CO2-free production capacity and a multi-gigawatt pipeline consisting of suitable data center sites and renewable energy and battery development projects, we are well positioned to serve data centers and other large electricity consumers.

In our advanced materials businesses, UPM Adhesive Materials and UPM Specialty Materials, earnings were impacted

by lower delivery volumes. Both businesses saw heavy customer destocking, particularly in Europe. On the positive side, we were able to maintain stable margins in both businesses, despite input cost increases.

UPM Fibres' results improved. Fibres South continued to deliver strong profitability, while Fibres North returned to positive comparable EBIT. After a seasonally slower summer, demand and market prices increased moderately. Production was curtailed at the Kaukas pulp mill in Finland for eight weeks to optimize production and wood sourcing, and to ensure profitability in the challenging softwood pulp markets. In the final quarter, we will curtail production at the Pietarsaari mill for five weeks.

UPM Communication Papers had a challenging quarter, further underlining the structural pressures facing the graphic paper markets. Market demand weakened, and the prevailing overcapacity limited our ability to pass through the sharp increase in energy-related costs during the quarter. These market realities reaffirm the rationale for the planned Joint Venture with Sappi and the need to strengthen the long-term competitiveness of the business.

Looking ahead, while there continues to be uncertainty in the operating environment, there are also positive factors that underpin our performance. Demand continues to be strong in our decarbonization solutions businesses. In addition, we are entering a seasonally stronger period in the Energy and Fibres businesses. In our advanced materials businesses, unit margins are healthy. Destocking is still going on in some markets but is temporary by nature. Finally, following the increase in variable costs we will continue margin management actions across our businesses.

We remain focused on protecting margins, improving cash flow and working capital efficiency, and maintaining disciplined capital allocation. These priorities support our ongoing transformation towards a more focused UPM, centered on businesses with stronger growth characteristics and higher value creation."

UPM's comparable EBIT in H2 2026 from continuing operations is expected to be approximately in the range of €375-575 million (€479 million in H2 2025, and €471 million in H1 2026). These figures exclude UPM Plywood, which is classified as discontinued operations.

There continue to be significant uncertainties in geopolitics and trade.

In H2 2026, compared with H1 2026, UPM's delivery volumes are expected to be lower. UPM's performance is expected to be supported by moderately higher sales prices. Variable costs are expected to increase. Energy refunds are expected to support UPM Communication Papers' result in Q4. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs moderately.

In H2 2026, compared with H2 2025, UPM's performance is expected to benefit from higher sales prices. Variable costs are expected to increase. Fair value change of forest assets is expected to have a significantly smaller impact on comparable EBIT in H2 2026 than in H2 2025 (€131 million). The energy refunds to be booked in UPM Communication Papers in Q4 are anticipated to have a somewhat smaller positive impact than in 2025. Maintenance activity is expected to increase from the comparison period. The production ramp-up at UPM Leuna is expected to increase costs.

UPM's comparable EBIT is sensitive to pulp and electricity prices. The figures below represent group earnings sensitivities on annual level.

UPM is a large producer and consumer of chemical pulp. A

€50/tonne change in average pulp price would impact annual comparable EBIT by approximately €180 million (net impact: assuming no correlation between pulp and paper prices) to approximately €270 million (gross impact: assuming paper pricing would match changes in pulp costs).

UPM is a large producer and consumer of electricity in Finland and separately hedges part of its electricity sales and purchases. Based on UPM's estimated unhedged net electricity sales position in Finland in 2026, a €10/MWh change in average electricity market price in Finland would impact annual comparable EBIT by approximately €40 million.

Fluctuations in monetary policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions could influence currency exchange rates. These currency fluctuations could impact UPM's cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.

The Group's policy is to hedge an average of 50% of its estimated net currency cash flows on a rolling basis over the next 12-month period. At the end of Q3 2026, UPM's estimated net currency cash flows for the next 12 months totaled approximately €1.5 billion. USD was the largest exposure at approximately €1.3 billion, followed by UYU, GBP, JPY and CNY.

In addition, the earnings of UPM's foreign subsidiaries are translated to euros in reporting. UPM has significant foreign subsidiaries in Uruguay, the U.S. and China. Foreign exchange risks are discussed in UPM's Annual Report 2025 on pages 313-314.

Q1-Q2/2025 Olkiluoto nuclear power plant unit OL3

Q2/2025 Olkiluoto nuclear power plant units OL1 and OL2 UPM Paso de los Toros pulp mill UPM Kymi pulp mill

Q3/2025 UPM Kaukas pulp mill

Q4/2025 UPM Fray Bentos pulp mill

Q2/2026 Olkiluoto nuclear power plant units OL1 and OL2 UPM Pietarsaari pulp mill

Q3/2026 UPM Lappeenranta biorefinery

Q3-Q4/2026 Olkiluoto nuclear power plant unit OL3 Q4/2026 UPM Paso de los Toros pulp mill

Q2/2027 Olkiluoto nuclear power plant units OL1 and OL2 UPM Fray Bentos pulp mill

UPM Kymi pulp mill UPM Lappeenranta biorefinery turnaround

Q3/2027 UPM Kaukas pulp mill

100

€ million

50

0

UPM Energy

UPM Adhesive Materials

UPM Specialty Materials

UPM Fibres

UPM Plywood

Other operations

-50

Comparable EBIT

Q3 2026 Q3 2025

Q3 2026 sales totaled €2,202 million, 1% lower than the €2,226 million in Q3 2025. Lower delivery volumes in most businesses had a somewhat larger negative impact on sales than the positive impact of increased sales prices. Sales decreased in most businesses, with the exception of UPM Adhesive Materials and Other operations.

The comparable EBIT decreased by 8% to €131 million, which was 5.9% of sales (142 million, 6.4%). Comparable EBIT increased in UPM Fibres and remained at the same level in UPM Adhesive Materials, and decreased in the other businesses compared to last year.

Sales price increased in most businesses, on group level more than offsetting the impact of increased variable costs. Changes in delivery volumes had a small positive impact on comparable EBIT. Fixed costs decreased by €16 million.

UPM Communication Papers

Changes in currencies, net of hedging, had a negative impact on the results.

Comparable EBIT, continuing operations

Depreciation, amortization and impairment charges

400

€ million

300

200

100

0

Q1 Q2

25 25

Q3 Q4 Q1

25 25 26

20

15

10

5

0

Q2 Q3

26 26

excluding items affecting comparability totaled €125 million (122 million), including depreciation of leased assets totaling €23 million (22 million). The change in the fair value of forest assets net of wood harvested in comparable EBIT was €-12 million

(28 million).

Operating profit was €112 million (47 million). Items affecting comparability in operating profit totaled €-19 million in the period (-94 million). More information on items affecting comparability in Financial statement information Note 2 Quarterly information by business area.

% of sales

Net interest and other finance income and costs were €-22 million (-27 million). The exchange rate and fair value gains and losses were €-11 million (-1 million). Items affecting comparability in finance costs totaled €0 million (0 million). Income taxes were

800

700

600

€ million

500

400

300

200

100

0

Operating cash flow *

2.00

1.50

1.00

0.50

0.00

€-2 million (-7 million). Items affecting comparability in taxes totaled €5 million (13 million).

Profit for Q3 2026 was €78 million (12 million), and comparable profit was €91 million (93 million).

The comparable EBIT decreased by 38% to €131 million, which was 5.9% of sales (212 million, 9.0%).

Comparable EBIT decreased mainly due to significantly higher variable costs, across most input categories and businesses. Sales prices increased, but only offset part of the

increase in variable costs.

€ per share

Q1 Q2 Q3 Q4

25 25 25 25

Q1 Q2 Q3

26 26 26

Delivery volumes decreased in most businesses, and had a negative impact on comparable EBIT. Fixed costs decreased by

€39 million, partially due to seasonal fluctuations and partially

3,500

3,000

2,500

2,000

Net debt and net debt to EBITDA *

2.40

Net debt to EBITDA

2.00

1.60

1.20

0.80

0.40

0.00

due to lower maintenance activity than in the previous quarter.

Depreciation, amortization and impairment charges excluding items affecting comparability, totaled €125 million (122 million). The change in the fair value of forest assets net of wood harvested in comparable EBIT was €-12 million (-24 million).

Operating profit was €112 million (208 million). Items affecting comparability in the operating profit totaled €-19 million for the period (-4 million). More information on items affecting comparability in Financial statement information Note 2 Quarterly information by business area.

€ million

1,500

1,000

500

0

Q1 Q2 Q3

25 25 25

Q4 Q1

25 26

Q2 Q3

26 26

.

*Operating cash flow, net debt and net debt to EBITDA ratio Include continuing and discontinued operations.

In Q1-Q3 2026 sales were €6,983 million, 2% lower than the

€7,140 million in Q1-Q3 2025. Sales decreased in UPM Fibres, UPM Communication Papers and UPM Specialty Materials, but increased in UPM Energy and UPM Adhesive Materials business areas, and in the Other operations segment.

Comparable EBIT increased by 10% to €601 million, 8.6 % of sales (545 million, 7.6%). Variable costs decreased, whereas changes in sales prices at group level were neutral to the results. Delivery volumes increased moderately. Fixed costs decreased by €73 million.

Depreciation, amortization and impairment charges excluding items affecting comparability, totaled €369 million (390 million) including depreciation of leased assets totaling

€66 million (67 million). The change in the fair value of forest assets net of wood harvested was €-31 million (41 million).

Operating profit totaled €565 million (343 million). Items affecting comparability in operating profit totaled €-36 million in the period (-202 million). More information on items affecting comparability in Financial statement information Note 2 Quarterly information by business area.

Net interest and other finance costs were €-67 million (-75 million). The exchange rate and fair value gains and losses were

€-10 million (0 million). Items affecting comparability in finance costs totaled €0 million (-1 million). Income taxes totaled €-53 million (-49 million).

Profit for Q1-Q3 2026 was €435 million (220 million), and comparable profit was €458 million (398 million).

The following information includes both continuing and discontinued operations.

In Q1-Q3 2026, capital expenditure excluding investments in shares from continuing operations totalled €164 million (279 million), which was 2.3% of sales. There were no investments in shares during the period. In Q1-Q3 2025, capital expenditure including investment in shares from continuing operations amounted to €462 million, which was 6.5% of sales. Capital expenditure does not include additions to leased assets.

In 2026 capital expenditure from continuing operations excluding investments in shares, is expected to be about €300 million.

In January 2020, UPM announced that it would invest in a 220,000 tonne next-generation biochemicals biorefinery in Leuna, Germany. The total investment estimate is €1,370 million.

UPM Adhesive Materials has ongoing production capacity investments in Mills River, North Carolina, U.S., and in Johor Bahru, Malaysia. The business area is also opening new slitting and distribution terminals near Hanoi, Vietnam, and near New Delhi, India.

UPM Energy invests over €20 million in the extensive modernization of the Tyrvää hydropower plant in Finland, including the refurbishment of both turbine-generator units. The modernization is expected to be fully completed by the end of 2030.

In Q1-Q3 2026, UPM had an average of 14,920 employees (15,974). At the beginning of the year, the number of employees was 15,127 and at the end of Q3 it was 14,606.

Continuing operations had an average of 13,449 employees (14,465). At the beginning of the year, the number of employees was 13,676 and at the end of the Q3 it was 13,144.

Discontinued operations had an average of 1,472 employees (1,509). At the beginning of the year, the number of employees

Q1- Q1- Q1-

€ million

Q3/26 Q3/25 Q3/26 Q3/25 Q4/25

Operating cash flow Net debt at the end of period

Net debt to EBITDA (last 12 m)

Gearing ratio %

218

3,218

2.36

31

685 1,405

3,218 3,004

2.36 2.29

31 29

was 1,451 and at the end of the Q3 it was 1,462.

On May 28, 2026, UPM announced it had signed a definitive agreement to form a graphic paper Joint Venture with Sappi,

In Q1-Q3 2026, the cash flow from operating activities before capital expenditure and financing totaled €645 million (685 million in 2025). Working capital increased by €63 million (increased by €25 million).

Net debt was €2,993 million at the end of Q3 2026 (3,218 million at the end of Q3 2025). The gearing ratio as of September 30, 2026 was 29% (31%). The net debt to EBITDA ratio, based on the last 12 months' EBITDA, was 2.09 at the end of the period (2.36).

On September 30, 2026, UPM's cash funds and unused committed credit facilities totaled €2.6 billion. The total amount of committed credit facilities was €1.9 billion of which €159 million will mature in 2027 and €1.8 billion will mature in 2029 or beyond.

For the 2025 financial year, the dividend of €1.50 per share is paid in two equal installments. The first installment of €0.75 per share (totaling €395 million) was paid on April 21, 2026, and the second installment of €0.75 per share will be paid on November 6, 2026 (totaling €395 million).

and the parties had secured financing arrangements that will provide a robust financial standing for the Joint Venture. A non-binding letter of intent (LOI) on the transaction was signed on December 4, 2025.

The Joint Venture will include the entire UPM Communication Papers business and Sappi's graphic paper business in Europe. The Joint Venture will be owned 50/50 by UPM and Sappi. It will operate as an independent company, managing its own operations, resources, and decisions within agreed shareholder boundaries.

Until the closing of the intended Joint Venture according to the satisfaction of all legal and regulatory requirements, UPM Communication Papers and Sappi's European graphic paper business will continue to operate as separate and independent companies.

The Joint Venture is expected to create annual synergies estimated at about €100 million through asset and logistics optimizations, product portfolio rationalization, sourcing efficiency improvements and operational efficiencies.

Financing secured for the Joint Venture:

• The parties have secured €600 million of external financing for the transaction as well as a committed revolving credit facility of €100 million to finance the Joint Venture's

  operational liquidity needs, both facilities fully underwritten by Citi and Nordea.

• At the closing of the transaction, the Joint Venture will raise the agreed debt to fund the cash consideration payable to UPM and Sappi respectively. To ensure adequate equity and balance sheet for the Joint Venture, the parties have agreed that a part of the purchase prices will be financed through shareholder loans as explained below in further detail.

• Except for the shareholder loans, the Joint Venture will be independently financed following the closing, and to the extent it would require additional funding, such financing shall be without any recourse to the shareholders.

  Based on the definitive agreement:

• UPM and Sappi will contribute their respective businesses and assets to the Joint Venture with a combined enterprise value of €1,420 million, excluding the value of expected synergy benefits. UPM Communication Papers business is valued at €1,100 million (enterprise value). Sappi's European business is valued at €320 million (enterprise value).

• As consideration for its assets contributed to the planned Joint Venture, at closing UPM will receive cash proceeds of

  €475 million, a receivable for a shareholder loan on preferential terms valued at €88 million, a receivable for an additional shareholder loan valued at €10 million and 50% of the equity of the Joint Venture equal to a book value of

  €167 million. As part of the transferring business perimeter,

  €411 million of net pension and other liabilities based on year-end 2025 balance sheet will transfer to the Joint Venture.

• Sappi will receive cash proceeds of €90 million, a receivable of a shareholder loan valued at €10 million and 50% of the equity of the Joint Venture equal to a book value of €167 million.

The purchase prices, cash proceeds and financial impact of the transaction are estimates at the time of the definitive agreement, and subject to customary purchase price adjustments.

The Joint Venture will first repay its shareholder loans to its two shareholders and thereafter distribute dividends according to its financial performance and standing. The parties have agreed that UPM has an option to sell to Sappi half of any outstanding preferential terms shareholder loan two years after closing.

The establishment of the Joint Venture would create a sustainable standalone business that ultimately will provide divestment flexibility for both shareholders. Three years after closing, with the Joint Venture expected to have completed the integration and realized the synergies, either shareholder may initiate a divestment of their shareholdings.

Securing long-term resilience and sustainability

The transaction would create a more efficient, adaptable and sustainable graphic paper business. It would create a structurally competitive cost base and supply security for the European and global customers.

By strategic reallocation of production volumes to the most efficient paper machines, the Joint Venture would achieve more sustainable capacity utilization and stronger operational performance, while continuing to serve customers with a broad portfolio of graphic paper products.

Overall, the Joint Venture would rationalize supply in an industry burdened by declining demand, structural overcapacity and high energy costs. It would contribute to a more balanced and resilient European market, and make the industry better

positioned to withstand market challenges and increasing imports to Europe.

UPM Communication Papers has already today an ambitious climate action roadmap to reduce product emissions by up to 70% by 2030, supporting customers in achieving their climate targets. The Joint Venture would further enhance these opportunities. By optimizing capacity utilization, enhancing operational efficiencies and continuing to invest in decarbonization, the Joint Venture could reduce its overall climate impact, helping to advance the EU's Clean Industrial Deal objectives.

Impact of the transaction on UPM financials

The financial benefit for UPM at closing will consist of the €475 million cash payment to UPM by the Joint Venture, the €98 million shareholder loan receivable and UPM's share (50%) of the Joint Venture. In addition, €411 million of net pension and other liabilities will transfer to the Joint Venture as part of the transferring business perimeter.

The ownership in the Joint Venture will be accounted for using the equity method, below operating profit.

The transaction is expected to have a positive impact on UPM's profitability margins (EBIT % of sales), balance sheet and leverage. UPM would also achieve a more focused business portfolio operating on growth markets and would no longer have direct sales exposure to the declining European and North American graphic paper markets.

Transaction subject to merger control and other conditions The transaction requires among other conditions merger control approvals, and most jurisdictions, including China, South Africa and the U.S., have approved the transaction. The European

Commission's final decision is expected by year-end or shortly thereafter. The Joint Venture would become operational upon closing.

On October 5, 2026, UPM announced that it and Sappi had received a Letter of Facts from the European Commission which stated that the Commission continues to have serious concerns about the proposed graphic paper Joint Venture. UPM disagrees with the Commission's preliminary assessment and will continue to engage with the review process. UPM continues to believe that the proposed Joint Venture would support the long-term competitiveness, sustainability and resilience of the European graphic paper industry. To address the Commission's concerns, the parties have opened discussion for specific remedies, but given the rationale of the transaction, not divestments.

On April 29, 2026, the Board of Directors approved a demerger plan concerning a partial demerger of UPM. According to the demerger plan, UPM will demerge so that all assets and liabilities of UPM relating to the UPM Plywood business area, or mainly serving the UPM Plywood business area, are transferred to WISA Group Plc ("WISA Group"), a company to be established in the demerger (the "Demerger"). The Demerger was approved by UPM's Extraordinary General Meeting held on August 31, 2026. The planned completion date of the Demerger is October 31, 2026. A demerger and listing prospectus was published on July 16, 2026.

UPM has applied for admitting the shares of WISA Group for trading on the official list of Nasdaq Helsinki Ltd ("Nasdaq Helsinki"). Upon the completion of the Demerger, WISA Group would initially have the same shareholder structure as UPM.

Strategic rationale of the Demerger

According to the assessment of the Board of Directors of UPM, the separation of the Plywood business area into a new publicly listed company would increase shareholder value by creating an integrated platform focused solely on pursuing the strategic priorities and growth opportunities of the Plywood business area. The separation will also simplify governance and decision-making structures, foster more direct accountability, and enhance UPM's focus on its core businesses. It will also provide increased visibility to investors into key value drivers specific to the Plywood business area, which can facilitate the fair valuation of the business and provide more flexibility for accessing external capital. The separation further allows the Plywood business area to attract new investors who are interested in investing directly in an independent company focused on high value-added end-use segments, including construction, LNG shipbuilding and vehicle flooring solutions. This also benefits the value creation for UPM's current shareholders.

Overview of the Demerger

The Demerger will be executed as a partial demerger, as set out in the Finnish Companies Act (624/2006, as amended, the "Finnish Companies Act"). The shareholders of UPM will receive as demerger consideration one new share in WISA Group for each share they hold in UPM (the "Demerger Consideration"), that is, the Demerger Consideration will be issued to the shareholders of UPM in proportion to their existing shareholdings with a ratio of 1:1. No action will be required from UPM shareholders to receive the Demerger Consideration.

UPM's shareholders will retain their shareholdings in UPM.

The planned completion date of the Demerger pursuant to the demerger plan is October 31, 2026. Trading in the shares of WISA Group on Nasdaq Helsinki is currently expected to commence on or about November 2, 2026, or as soon as possible thereafter. UPM presents the UPM Plywood business area as discontinued operations in its financial reporting in accordance with the IFRS 5 standard starting from the second quarter of 2026.

In January 2020, UPM announced that it would invest in a 220,000 tonne next-generation biochemicals refinery in Leuna, Germany. The investment estimate is €1,370 million.

Commercial ramp-up of the Biochemicals business is advancing well. In the production ramp-up of the Leuna refinery, clearly defined additional modification works are needed in one process before full integrated production of the unit can commence. This represents an approximately six months delay.

Commercial interest in the biochemicals products is strong The long-term biochemicals business case, including attractive growth and profitability outlook is intact, and supported by confirmed customer interest.

Commercial interest in the main products and side-streams is strong, with confirmed customer contracts and a sales and customer qualification pipeline that exceeds multiple times the annual capacity of the refinery.

Since the final investment decisions, the portfolio of high-value products and materials has grown, particularly through the development of lignin-derived specialty chemicals and additional grades of Renewable Functional Fillers (RFF). This opens promising new commercial opportunities.

With the strategic acquisition of the intellectual property behind Avantium's Ray Technology® in May 2026, we have broadened our technology options for the conversion of sugars to glycols, creating a basis for future technology and optimization pathways.

Two of the three core processes tested and running

Wood-to-lignin-and-sugar: Enzymatic hydrolysis was started up in Q4 2025 and commercial deliveries of industrial sugars have reached substantial volumes. The production of lignin-derived specialty chemicals has also reached stable operation, and we are ramping up sales into attractive growth markets such as battery and construction materials.

Lignin-to-RFF: We have reached technical readiness to produce Renewable Functional Fillers and are progressing towards commercial sales. RFF production will ramp up in Q4 2026. We will immediately start qualifying the final product at our customers and subsequently start sales across RFF application areas in tyres, mechanical rubber goods and plastics.

Additional modification works required in the final core process Sugars-to-glycols: The third and final process step, the conversion of sugars to glycols, is a first of its kind process and comprises a number of complex technologies required to

convert biomass-based sugars. During commissioning, we have identified smaller technological challenges that require modifications to certain pieces of equipment. We expect the modifications and technological upgrades to be completed, and the process to reach technological readiness in Q1 2027, with integrated production starting in Q2 2027.

Required additional investment for the modifications is minor.

Financial impact of the ramp-up

Production of the refinery is expected to reach nominal capacity in the early part of 2028, which is the prerequisite for EBIT positive operation.

On this basis, the EBIT impact for the full year 2027 is expected to be on broadly similar level as in 2026.

Renewable fuels and renewable chemicals are the central elements of UPM's long-term growth in decarbonization solutions. UPM is focusing on three targeted growth areas in its biofuels business:

• Evaluating the potential to debottleneck the Lappeenranta biorefinery in order to capture low CAPEX expansion opportunities and further leverage the strong market performance of CTO-derived biofuels.

• Enabling the qualification of CTO-derived UPM biofuels as sustainable aviation fuel (SAF). This strategic direction is supported by successful SAF trials conducted with the Austrian aircraft manufacturer Diamond Aircraft using Austro Engine propulsion and by continued progress in the technical acceptance process at the American Society for Testing and Materials (ASTM). Results from these trials and stakeholder reviews have been consistently positive.

• Continuing feedstock technology development to qualify and enable the use of additional competitive and sustainable biomass. This will support the cost-efficient production of high-quality biofuels for both road and aviation applications.

  Change in the composition of reportable segments

  The Group has changed its reportable segments composition by moving UPM Forest business into UPM Fibres business area as of January 1, 2026. The vast majority of wood used by UPM in Finland is consumed within the UPM Fibres business, and the Finnish forests are therefore considered an integral operational and strategic part of UPM Fibres North operations. In addition, the change improves consistency with UPM Fibres operations in Uruguay, where forest assets have already been reported as part of the UPM Fibres South operations. Until the end of 2025, UPM Forest was included in Other operations.

  UPM Biorefining, consisting of UPM Biochemicals and UPM Biofuels and reported as part of Other operations, was renamed UPM Next Generation Renewables as of January 1, 2026.

  Following these changes, Other Operations includes UPM Next Generation Renewables, wood sourcing, Group services and Technology and forest assets in the U.S.

  The change impacts KPIs of UPM Fibres reportable segment and Other Operations. The comparative periods are restated according to the new reporting principles. The reporting change has had no impact on Group financial result or balance sheet.

  Refer to Financial Statement information Note 9 Change in the composition of reportable segments in Financial statement information.

  Events during the reporting period

  On January 12, 2026, UPM received leadership scores in CDP 2025 assessment for climate change, forests and water security, reaffirming UPM's leading position in sustainability.

  On February 4, 2026, UPM announced plans for the period 2026-2028 within the company's two long-term share incentive arrangements.

  On March 5, 2026, UPM Energy announced an investment of over €20 million in the extensive modernization of the Tyrvää hydropower plant.

  On March 30, 2026, UPM Adhesive Materials announced an expansion of its footprint in India with a new slitting and distribution terminal near New Delhi.

  On April 9, 2026, UPM-Kymmene Corporation held its Annual General Meeting. Decisions of the AGM are presented elsewhere in this report.

  On April 28, 2026, the EU Commission announced the opening of a Phase II investigation into the planned graphic paper Joint Venture.

  On April 29, 2026, the Board of Directors of UPM approved a demerger plan concerning the separation of the Plywood business into a new listed company.

  On May 4, 2026, UPM announced that it has been included as the only company in its sector in the Dow Jones World and European Sustainability Indices (DJSI) for 2025-2026.

  On May 28, 2026, UPM and Sappi signed a definitive agreement on the graphic paper Joint Venture.

  On June 18, 2026, UPM announced the temporary shutdown of the UPM Kaukas pulp mill as of August 3, 2026, for approx. six weeks, and a potential temporary shutdown of the UPM Pietarsaari pulp mill in October.

  On July 2, 2026, EcoVadis, a leading provider of corporate sustainability ratings, awarded UPM Platinum recognition, the highest possible rating held by only the top one percent of rated companies.

  On July 16, 2026, The Finnish Financial Supervisory Authority approved WISA Group Plc's demerger and listing prospectus.

  WISA Group Plc's Group Leadership Team was appointed.

  On August 31, 2026, UPM held an Extraordinary General Meeting, which resolved on the partial demerger of the Company and, as part of the demerger resolution and conditional upon the completion of the demerger, on the establishment of a new independent company to be named WISA Group Plc ("WISA"), the composition of the Board of Directors of WISA, and the authorization of the Board of Directors of WISA to issue shares and special rights entitling to shares in WISA and to decide on the acquisition of WISA's own shares. The Extraordinary General Meeting resolved, conditional upon the completion of the demerger, on the remuneration of the Board of Directors, the election and remuneration of the auditor of WISA.

  On September 23, WISA Group held its first Capital Markets Day.

  Events after the balance sheet date

  On October 5, 2026, UPM announced it and Sappi had received a Letter of Facts from the European Commission stating that it continues to have serious concerns about the proposed graphic paper Joint Venture. UPM disagrees with the Commission's preliminary assessment and will continue to engage with the review process. UPM continues to believe that the proposed Joint Venture would support the long-term competitiveness, sustainability and resilience of the European graphic paper industry. To address the Commission's concerns, the parties are planning to submit proposals for specific remedies, but given the rationale of the transaction, not divestments.

  On October 22, 2026, UPM filed a listing application with Nasdaq Helsinki Ltd ("Nasdaq Helsinki") for the admission to trading of WISA Group's shares on the regulated market of Nasdaq Helsinki. The completion of the Demerger is expected to be registered in the Finnish Trade Register on or about October 31, 2026, and trading in WISA Group's shares is expected to commence on or about November 2, 2026, under the trading code "WISA". The ISIN code of WISA Group's shares will be FI4000603345. In connection with the completion of the Demerger, the new ISIN code for UPM's shares will be FI4000603337 and the share trading code will continue to be "UPM".

  UPM Energy

  UPM Energy generates cost competitive, zero-carbon electricity. Operations also include physical electricity and financial portfolio management as well as services to industrial electricity consumers. UPM Energy is the second largest electricity producer in Finland. UPM's power generation capacity consists of hydropower, nuclear power and thermal power.

  120

  € million

  90

  60

  30

  0

  Comparable EBIT

  60

  % of sales

  45

  30

  15

  0

  Q1 Q2

  25 25

  Q3 Q4 Q1

  25 25 26

  Q2 Q3

  26 26

  	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1- Q1/25 Q3/26		Q1-Q3/25	Q1-Q4/25
  Sales, € million	129	141	252	176	149	118	173	522	439	615
  Comparable EBITDA, € million	23	26	102	56	39	12	51	151	102	158
  % of sales	18.0	18.2	40.5	31.8	25.9	10.2	29.6	28.9	23.1	25.6
  Depreciation, amortization and impairment charges, € million	-2	-2	-2	-2	-2	-2	-2	-5	-5	-7
  Operating profit, € million	22	24	100	54	37	10	49	146	97	151
  % of sales	16.7	17.0	39.8	30.7	24.7	8.7	28.7	27.9	22.0	24.5
  Items affecting comparability in operating profit, € million (Financial statements information Note 2)	-	-	-	-	-	-	-	-	-	-
  Comparable EBIT, € million	22	24	100	54	37	10	49	146	97	151
  % of sales	16.7	17.0	39.8	30.7	24.7	8.7	28.7	27.9	22.0	24.5
  Capital employed (average), € million	2,759	2,532	2,416	2,647	2,698	2,555	2,514	2,569	2,589	2,603
  Comparable ROCE, %	3.1	3.8	16.6	8.2	5.5	1.6	7.9	7.6	5.0	5.8
  Electricity deliveries, GWh	2,714	2,628	3,140	3,161	2,829	2,409	2,743	8,481	7,980	11,141

• Finnish power demand was seasonally lower during the summer quarters, but past 12-month realized demand was at highest levels seen since 2008

• The OL3 maintenance shutdown started in September and is expected to end in the first week of November

  Results Q3 2026 compared with Q3 2025

  The comparable EBIT for UPM Energy decreased due to lower nuclear volumes and lower sales prices.

  UPM's average electricity sales price decreased by 10% to

  €44.0/MWh (€48.8/MWh).

  Q3 2026 compared with Q2 2026

  The comparable EBIT decreased slightly. Nuclear volumes increased compared to Q2 when OL1 and OL2 were in maintenance outage. Sales prices were lower.

  UPM's average electricity sales price decreased by 9% to

  €44.0/MWh (€48.5/MWh).

  January-September 2026 compared with January-September 2025

  Comparable EBIT increased due to increased electricity deliveries and higher prices.

  UPM's average electricity sales price increased by 14% to

  €56.5/MWh (€49.4/MWh).

  Market environment

• Nordic hydrological balance was well below the long-term average at the end of September. In Finland, the hydrological balance was above the long-term average.

• The CO₂ emissions daily future price of €84.6/tonne at the end of Q3 2026, was higher than at the end of Q2 2026 (€79.1/tonne) and at the end of Q3 2025 (€75.4/tonne).

• The average Finnish area spot price on the Nordic electricity exchange in Q3 2026 was €37.7/MWh, 24% lower than in Q2 2026 (€49.3/MWh) and 7% lower than in Q3 2025 (€40.4/MWh).

• The front-year forward electricity price for the Finnish area closed at €61.5/MWh in September, 27% higher than at the end of Q2 2026 (€48.5/MWh).

  Sources: The Norwegian Water Resources and Energy Directorate, Svensk Energi, Finnish Environment Institute, Nord Pool, Euronext, ICE, UPM

  UPM Adhesive Materials

  UPM Adhesive Materials offers high-quality self-adhesive paper and film products including label materials, graphics solutions and removable self-adhesive products. UPM Adhesive Materials is the second-largest producer of self-adhesive label materials worldwide.

  Comparable EBIT

  60 15

  % of sales

  € million

  40 10

  20 5

  0

  Q1 Q2

  25 25

  Q3 Q4 Q1

  25 25 26

  0

  Q2 Q3

  26 26

  	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1- Q1/25 Q3/26		Q1- Q1- Q3/25 Q4/25
  Sales, € million	413	448	414	391	405	425	434	1,274	1,264 1,655
  Comparable EBITDA, € million	45	56	45	33	46	49	49	146	143 176
  % of sales	10.9	12.5	10.9	8.4	11.2	11.5	11.3	11.5	11.3 10.7
  Depreciation, amortization and impairment charges, € million	-14	-12	-13	-22	-13	-14	-13	-38	-39 -61
  Operating profit, € million	29	41	25	-6	4	28	27	95	59 53
  % of sales	6.9	9.3	6.1	-1.6	1.1	6.5	6.3	7.5	4.7 3.2
  Items affecting comparability in operating profit, € million (Financial statements information Note 2)	-4	-2	-7	-26	-28	-7	-9	-13	-44 -70
  Comparable EBIT, € million	33	44	33	20	33	35	36	109	104 124
  % of sales	7.9	9.8	7.9	5.1	8.1	8.2	8.3	8.5	8.2 7.5
  Capital employed (average), € million	891	867	842	864	891	900	787	867	859 860
  Comparable ROCE, %	14.6	20.1	15.5	9.2	14.8	15.4	18.4	16.8	16.1 14.4

• Coater investment ramp-up at the Mills River mill, North-Carolina

• UPM Intercoat™ was introduced, a new value label material line balancing customer needs in bulk with cost efficiency

  Results Q3 2026 compared with Q3 2025

  The comparable EBIT for UPM Adhesive Materials was stable. The positive impact of increased sales prices and more favorable sales mix was offset by increased variable costs and lower deliveries due to customer destocking.

  Q3 2026 compared with Q2 2026

  The comparable EBIT decreased due to significant customer destocking and increased variable costs. These negatives were partly offset by increased prices and changes in sales mix.

  January-September 2026 compared with January-September 2025

  The comparable EBIT increased slightly. Delivery volumes, sales prices and mix had a positive impact on the result, while variable costs had a negative impact.

  Market environment

• In Q3 2026, European markets were weighed down by a sharp drawdown of customer inventories built up in the previous quarter. Markets in the Asia-Pacific region picked up, and the highly competed North American markets continued to be soft.

  Sources: UPM, FINAT, TLMI

  UPM Specialty Materials

  UPM Specialty Materials offers labelling and packaging materials as well as office and graphic papers for labelling, commercial siliconizing, packaging, office use and printing. The production plants are located in China, Finland and Germany.

  Comparable EBIT

  60 20

  % of sales

  € million

  45 15

  30 10

  15 5

  0

  Q1 Q2 Q3

  25 25 25

  Q4 Q1

  25 26

  0

  Q2 Q3

  26 26

  Q1- Q1- Q1-

  Q3/26 Q2/26 Q1/26 Q4/25 Q3/25 Q2/25 Q1/25

  Q3/26 Q3/25 Q4/25

  Sales, € million	303	341	332	309	304	328	374	976	1,006 1,315
  Comparable EBITDA, € million	37	51	52	53	45	48	59	140	151 204
  % of sales	12.3	14.9	15.6	17.1	14.8	14.6	15.7	14.3	15.1 15.5
  Depreciation, amortization and impairment charges, € million	-12	-11	-12	-13	-11	-17	-16	-35	-44 -57
  Operating profit, € million	26	40	43	38	34	30	43	108	106 144
  % of sales	8.5	11.7	12.9	12.4	11.2	9.1	11.4	11.1	10.6 11.0
  Items affecting comparability in operating profit, € million (Financial statements information Note 2)	-	-	3	-2	-	-1	-	3	-1 -3
  Comparable EBIT, € million	26	40	40	40	34	31	43	105	107 147
  % of sales	8.5	11.7	12.0	13.0	11.1	9.4	11.4	10.8	10.7 11.2
  Capital employed (average), € million	692	676	670	686	693	705	739	679	712 706
  Comparable ROCE, %	14.8	23.5	23.8	23.4	19.5	17.5	23.1	20.7	20.1 20.9
  Paper deliveries, 1000 t	319	367	367	354	333	343	368	1,053	1,044 1,398

  Results Q3 2026 compared with Q3 2025

  The comparable EBIT for UPM Specialty Materials decreased due to lower sales volumes and higher variable costs. These negatives were partially offset by higher sales prices.

  Q3 2026 compared with Q2 2026

  The comparable EBIT decreased. Customer destocking had a negative impact on sales volumes, while variable costs increased. Sales prices were higher and fixed costs lower.

  January-September 2026 compared with January-September 2025

  The comparable EBIT decreased. The negative impact on earnings from lower sales prices outweighed the positive impact of higher sales volumes and reduced variable costs.

  Market environment

• In Q3 2026, the label and release base paper markets in Europe experienced significant destocking towards the end of the quarter.

• In Q3 2026, the markets for specialty papers in Asia were relatively stable. The fine paper market remained highly competitive..

Sources: UPM, RISI, AFRY, AWA

UPM Fibres consists of pulp, timber and forest businesses. UPM Pulp offers a versatile range of responsibly-produced pulp grades suitable for a wide range of end-uses. UPM Timber offers certified sawn timber. UPM has two pulp mills and plantation operations in Uruguay (Fibres South) as well as three pulp mills, three sawmills and forest operations in Finland (Fibres North).

200

€ million

150

100

50

0

Comparable EBIT

20

% of sales

15

10

5

0

Q1 Q2 Q3

25 25 25

Q4 Q1

25 26

Q2 Q3

26 26

1) 2025 reporting is restated according to the change in the composition of UPM Fibres reporting segment and Other operations Financial Statements information Note 9 Change in the composition of reportable segments

Pulp mill maintenance shutdowns: Q2 2026 UPM Pietarsaari, Q4 2025 UPM Fray Bentos, Q3 2025 UPM Kaukas, Q2 2025 UPM Paso de los Toros and UPM Kymi.

1) Geographical information is excluding administration, development and other Fibres' operations.

• The Kaukas pulp mill, in Finland, curtailed production during Q3. Decision to curtail production at the Pietarsaari pulp mill, in Finland, starting in October and lasting for 5 weeks.

  Results Q3 2026 compared with Q3 2025

  The comparable EBIT for UPM Fibres increased as prices were higher. In addition, lower wood costs in Finland and lower maintenance activity reduced costs.The change in the fair value of net forest assets and wood harvested was € -12 million (28 million).

  The average price in euros for UPM's pulp deliveries increased by 8%.

  Q3 2026 compared with Q2 2026

  The comparable EBIT increased. Results were positively impacted by lower maintenance activity and negatively by fuel and chemicals prices. The change in the fair value of net forest assets and wood harvested in Q3 was € -12 million (-24 million).

  The average price in euros for UPM's pulp deliveries decreased by 1%.

  January-September 2026 compared with January-September 2025

  The comparable EBIT was stable. Earnings were supported by higher volumes and lower variable and fixed costs, whereas sales prices and currencies developed unfavorably. The change in the fair value of net forest assets and wood harvested in was € -31 million (41 million).

  The average price in euros for UPM's pulp deliveries decreased by 4.5%.

  Market environment

• In Q3 2026, global pulp deliveries increased compared to Q2, changes in market prices varied by market and grade.

• In Europe, the average market price of northern bleached softwood kraft pulp (NBSK) in euros was flat in Q3 compared to Q2 2026 and the price of bleached hardwood kraft pulp (BHKP) 2% higher.

• In China, the average market price of northern bleached softwood kraft pulp (NBSK) in dollars decreased by 2% in Q3 compared to Q2 2026 and the price of bleached hardwood kraft pulp (BHKP) decreased by 5%.

  Sources: FOEX, UPM

  UPM Communication Papers

  UPM Communication Papers offers an extensive product range of sustainably produced graphic papers for advertising and publishing as well as home and office uses. The business has extensive low-cost operations consisting of 8 efficient paper mills in Europe and the United States, a global sales network and an efficient logistic system. The main customers are publishers,

  Comparable EBIT

  20

  % of sales

  15

  10

  5

  0

  -5

  120

  100

  80

  60

  40

  20

  0

  -20

  € million

  catalogers, retailers, printers and merchants.

  Q1 Q2 Q3

  25 25 25

  Q4 Q1

  25 26

  Q2 Q3

  26 26

  	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1/25 Q Q1- 3/26		Q1- Q1- Q3/25 Q4/25
  Sales € million	608	594	613	580	619	630	664	1,815	1,913 2,493
  Comparable EBITDA,€ million	8	47	27	127	28	21	65	82	115 241
  % of sales	1.3	7.9	4.4	21.8	4.6	3.4	9.8	4.5	6.0 9.7
  Share of results of associated companies and joint ventures, € million	-	-	-	-	-	-	-	-	- -
  Depreciation, amortization and impairment charges, € million	-16	-12	-17	-17	-49	-20	-23	-45	-92 -109
  Operating profit, € million	-7	35	6	183	-53	-2	-22	34	-76 107
  % of sales	-1.2	5.9	1.0	31.5	-8.5	-0.3	-3.3	1.9	-4.0 4.3
  Items affecting comparability in operating profit, € million (Financial statements information Note 2)	1	3	-7	73	-67	-7	-74	-3	-148 -75
  Comparable EBIT, € million	-8	32	13	110	14	5	52	37	72 181
  % of sales	-1.3	5.4	2.1	18.9	2.3	0.8	7.9	2.0	3.7 7.3
  Capital employed (average), € million	864	881	898	937	991	1,033	1,109	881	1,044 1,018
  Comparable ROCE, %	-3.6	14.6	5.6	46.9	5.6	2.1	18.9	5.6	9.1 17.8
  Paper deliveries, 1000 t	708	700	726	690	733	740	731	2,134	2,203 2,893

• Preparations for the potential graphic paper join venture with Sappi continued, management team was nominated

The comparable EBIT for UPM Communication Papers decreased due to lower sales volumes and increased variable costs across the board. Higher sales prices and lower fixed costs supported earnings.

The average price in euros for UPM's paper deliveries increased by 1.5%.

The comparable EBIT decreased. The negative impact of variable costs was significantly larger than the positive impact of increased prices and volumes and reduced fixed costs.

The average price in euros for UPM's paper deliveries increased by 1%.

The comparable EBIT decreased. Earnings were negatively impacted by sales volumes and prices, as well as by increased variable costs.

The average price in euros for UPM's paper deliveries decreased by 2%.

• In Q3 2026, demand for graphic papers in Europe was 7% lower than in Q3 2025. Demand declined by 3% for newsprint, while magazine papers declined by 9% and fine papers by almost 9%.

• In Q3 2026, publication paper prices in Europe were 2% higher compared to Q3 2025 and 1% higher compared to Q2 2026. Fine paper prices in Europe increased by 1% compared to Q3 2025 and increased by 1% compared to Q2 2026.

• In Q3 2026, demand for magazine and coated wood free papers in North America was at the same level as in Q3 2025. In Q3 the average price in North America for magazine and coated wood free papers was 3% higher than in Q3 2025 and 1% higher than in Q2 2026.

  Sources: PPI/RISI, Euro-Graph, PPPC

  UPM Plywood

  UPM Plywood offers high quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications.

  As a result of the planned demerger, UPM presents the UPM Plywood business area as discontinued operations in accordance with the IFRS 5 Non-current assets held for sale and discontinued operations starting from the second quarter of

  Comparable EBIT

  20 25

  % of sales

  € million

  15 20

  15

  10

  10

  5 5

  0 0

  2026. More information in Financial statement information Note 10 assets and liabilities classified as held for distribution to owners and discontinued operations.

  Q1 Q2 Q3

  25 25 25

  Q4 Q1

  25 26

  Q2 Q3

  26 26

  	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1/25 Q Q1- 3/26		Q1- Q1-Q3/25 Q4/25
  Sales, € million	105	121	119	104	113	89	103	345	305 409
  Comparable EBITDA, € million	8	18	17	20	16	7	12	44	35 55
  % of sales	8.1	15.0	14.5	19.5	14.2	8.3	11.4	12.7	11.5 13.6
  Depreciation, amortization and impairment charges, € million (1	-	-2	-5	-4	-5	-5	-6	-6	-16 -20
  Operating profit, € million	-5	16	12	16	7	2	6	23	15 31
  % of sales	-4.6	13.4	10.0	15.3	6.4	2.1	5.9	6.8	5.0 7.6
  Items affecting comparability in operating profit, € million (Financial statements information Note 2)	-13	-	-1	-	-4	-	-	-14	-4 -4
  Comparable EBIT, € million	9	16	12	16	11	2	6	37	19 35
  % of sales	8.2	13.6	10.4	15.4	10.0	2.3	5.9	10.9	6.4 8.7
  Capital employed (average), € million	214	235	240	228	223	226	244	230	231 230
  Comparable ROCE, %	16.1	28.0	20.6	27.9	20.3	3.6	10.0	21.7	11.2 15.4
  Plywood deliveries, 1000 m3	117	138	131	112	128	99	120	385	346 458

  1) Due to UPM Plywood business area's classification as discontinued operations, the depreciation and amortization was ceased during Q2 2026.

• The listing prospectus of WISA Group was approved in July, the EGM approved the demerger in August

• WISA Group held its first CMD in September

• Maintenance shutdowns completed successfully at all mills during Q3

  Results Q3 2026 compared with Q3 2025

  The comparable EBIT for UPM Plywood decreased. Deliveries were lower than during the post-strike backlog last year. Variable costs increased and fixed costs were elevated due to maintenance and demerger preparation. In accordance with IFRS 5, no depreciation was recognized in Q3.

  Q3 2026 compared with Q2 2026

  The comparable EBIT decreased. Deliveries decreased seasonally and variable costs increased. In accordance with IFRS 5, no depreciation was recognized from May onwards. Due to the preparations for the IT separation from UPM some sales were shifted from Q3 to Q2. The planned IT separation was completed successfully.

  January-September 2026 compared with January-September 2025

  The comparable EBIT increased. The positive impact of higher deliveries was partially offset by higher fixed costs. Fixed costs in the comparison period were lower due to industrial action. In 2026, the preparation for the demerger increased fixed costs.

  Market environment

• In Q3 2026, markets for plywood were seasonally slower.

• Vehicle flooring demand remained at a good level. Markets in panel trading and construction end-use became more challenging.

• Demand in the LNG end-use was strong.

  Source: UPM

  Other operations

  Other Operations includes UPM Next Generation Renewables (UPM Biofuels and UPM Biochemicals business units) and Group services. UPM Biofuels produces wood-based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in petrochemical industry. UPM Biochemicals offers wood-based renewable biochemicals to replace fossil-based raw materials in various applications such as packaging, PET

  30

  € million

  0

  -30

  -60

  Comparable EBIT

  bottles, cosmetics, pharmaceuticals, textiles, detergents, rubbers and resins. UPM operates one biofuels refinery in Finland and one biochemicals refinery in Germany.

  Q1 Q2 Q3

  25 25 25

  Q4 Q1

  25 26

  Q2 Q3

  26 26

  	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1-Q1/25 Q3/26		Q1- Q1-Q3/25 Q4/25
  Sales, € million	162	208	185	187	149	192	166	555	506 693
  Comparable EBITDA, € million	-25	-7	-15	-44	-21	-33	-37	-46	-91 -136
  Share of results of associated companies and joint ventures, € million	-	1	-	-2	-	-	-	1	-1 -2
  Depreciation, amortization and impairment charges, € million	-13	-16	-12	-10	-10	-11	-14	-40	-34 -44
  Operating profit, € million	-47	-29	-35	-64	-31	-47	-54	-112	-133 -197
  Items affecting comparability in operating profit, € million (Financial statements information Note 2)	-10	-11	-9	-9	-	-3	-5	-29	-8 -17
  Comparable EBIT, € million	-37	-19	-26	-55	-31	-44	-50	-82	-125 -180
  Capital employed (average), € million	1,447	1,458	1,405	1,358	1,315	1,334	1,198	1,437	1,282 1,301
  Comparable ROCE, %	-10.3	-5.1	-7.5	-16.2	-9.6	-13.2	-16.6	-7.6	-13.0 -13.8

  * 2025 reporting is restated according to the change in the composition of UPM Fibres reporting segment and Other operations Financial Statement information Note 9 Change in the composition of reportable segments

• A strong quarter of good volumes and elevated prices for UPM Biofuels

• Stable production of lignin-derivatives at the Leuna biorefinery, technical readiness to produce RFF reached in Q3 and progress made towards commercial sales

The comparable EBIT for Other operations decreased. Biofuels volumes and sales prices were clearly higher and variable costs lower. Ramp-up costs of the Leuna biorefinery were higher.

The comparable EBIT decreased. September volumes of biofuels were impacted by a maintenance shutdown at the Lappeenranta biorefinery. Ramp-up costs of the Leuna biorefinery were slightly higher.

The comparable EBIT increased due to the significantly improved performance of UPM Biofuels. Ramp-up costs of the Leuna biorefinery were higher.

• In Q3 2026, demand and prices for advanced biofuels in European markets remained at good levels, supported by continued geopolitical pressures on fuel prices.

Source: UPM

The main uncertainties in UPM's earnings relate to the sales prices and customer demand of the Group's products, as well as changes to the main input cost items and currency exchange rates. Most of these items depend on general economic developments.

In 2026, tensions and uncertainties related to geopolitics and trade relations continue.

Currently significant uncertainty in the global business environment relates to the conflict in the Middle East. Significant part of global supply of oil, LNG and many other commodities has been disrupted, which has increased their global market prices. It is uncertain how long the conflict will last, what the outcome will be, and how long will it take for the global business environment to normalize.

Higher fossil fuel prices may have an increasing impact on UPM's energy costs, logistics costs and many raw material costs.

Uncertainty has increased related to global logistics and supply chains. This may increase logistics costs, but it may also disrupt trade flows and supply chains and possibly impact the supply-demand dynamics of various globally traded products and commodities in different markets. Bottlenecks in global logistics could impact the delivery of UPM's products, the sourcing of raw materials for UPM's businesses and the delivery of equipment for UPM's investments projects.

On the global macro level, the situation may lead to decreased economic growth, decreased private consumption, increased inflation and higher interest rates. This may indirectly affect demand for UPM products.

On the mitigating side, UPM's business portfolio includes an energy business, a biofuels business and a new biochemicals business, all of which provide alternatives for fossil energy and fossil-based materials. In other businesses UPM has production units in different geographic locations, which may provide opportunities to optimize operations.

Russia's war in Ukraine continues, and political ambitions by the U.S. continue to cause uncertainty in the operating environment, which may impact economic growth, private consumption, inflation and trade. The potential escalation in global geopolitical and trade tensions and the resulting impacts on the global economy may all affect UPM's operations and the supply chain, demand, supply and pricing of UPM's products, inputs or resources, or the progress of UPM's large investment projects.

There continues to be uncertainty related to the trade tensions between major economies, particularly to the tariffs introduced by the U.S. on imports from nearly all countries in the world, and the potential countermeasures introduced by the other countries.

It is possible that widely applied tariffs could have indirect impacts on UPM, for example impacting demand and supply of various products or raw materials, or redirect trade flows between countries and regions, which could impact deliveries and pricing of UPM's products or cost of raw materials on markets relevant to UPM. For example, in Q2 2025 the tariffs between the U.S. and China were momentarily very high. This uncertainty indirectly impacted even trading of goods in China from third countries and not under tariffs, such as pulp. Lower pulp buying, even if temporary, negatively impacted pulp prices.

A part of UPM's business is directly impacted by the U.S tariffs. In 2025, approximately 13% of UPM's sales had the U.S. as destination. Approximately 46% of UPM sales to the U.S. market was produced locally within the U.S. and approximately 54% was imported, mainly from the EU. The imports consisted mainly of communication papers, specialty papers, and eucalyptus pulp. Part of the raw materials used by UPM in the U.S. were also

imported and may be subject to tariffs. It is estimated that the

U.S. market demand exceeds local production for many of the products that UPM exports to the U.S. However, even in such cases, tariffs could affect demand of such products, or relative competitiveness of various suppliers. For example, demand for imported communication papers in the U.S. could be negatively impacted by tariffs.

The halting of wood imports from Russia, combined with investments by competitors have impacted the wood markets in the Baltic Rim. It is possible that wood raw material costs in Finland could stay elevated even if product markets were slow to recover.

Fluctuations in monetary and fiscal policies and economic conditions can significantly impact the value of various currencies, which in turn may affect UPM. Additionally, the escalation of global trade tensions, or political pressure on key central banks could influence currency exchange rates. These currency changes could impact UPM's cash flow, earnings, or balance sheet, and may also affect the relative competitiveness between different currency regions.

UPM's business operations depend on the availability of supporting information systems and network services. Unplanned interruptions in critical information system services can cause disruptions to the continuity of operations. The information systems may be exposed to a cyber-intrusion that could cause leaks of sensitive information, violation of data privacy regulations, theft of intellectual property, AI-generated misinformation or disinformation, production outages or damage to reputation.

In Germany, UPM is in the commissioning and start-up of the next-generation biochemicals refinery in Leuna. The commissioning and start up has made good progress, and there is a good pipeline of commercial interest for the products. Due to the pioneering nature of the project, there are uncertainties how quickly or whether the project will reach the targeted returns. The project is subject to the risks related to product development, innovation, IPR and large investment projects discussed in the Annual Report 2025, on pages 130-132.

In Finland, UPM indirectly owns approximately 31% of the new nuclear power plant unit, Olkiluoto 3 EPR (OL3), through its shareholdings in Pohjolan Voima Oyj. Pohjolan Voima Oyj is a majority shareholder of Teollisuuden Voima Oyj (TVO), holding 58.5% of its shares.

TVO supplies electricity to its shareholders on a cost-price principle (Mankala principle), which is widely applied in the Finnish energy industry. Under the Mankala principle electricity and/or heat is supplied to shareholders in proportion to ownership, and each shareholder is, pursuant to the specific stipulations of the respective articles of association, responsible for its respective share of the production costs of the energy company concerned.

TVO procured OL3 as a fixed-price turnkey project from a consortium (Plant Supplier) formed by Areva GmbH, Areva NP SAS and Siemens AG. As stipulated in the Plant Contract, the consortium companies have joint and several liability for the contractual obligations.

TVO has announced that even though there have been few interruptions to electricity generation at OL3 following the conclusion of the test operation program, there are uncertainties related to the availability of OL3 during the first operating cycles due to the possibility of unexpected events. These uncertainties are managed by means of systematic maintenance and monitoring of the plant unit.

According to TVO, if OL3 fails to achieve the planned load factor or operating cost structure, the Finnish national grid limits its power level, or the costs incurred by TVO due to grid load limitation make it unprofitable to operate at full power, there is a risk of production costs exceeding TVO's target.

The Group's cost structure is presented on page 276 of the UPM Annual Report 2025. Risks and opportunities are discussed on pages 31-33, risks and risk management are presented on pages 128-132, and material sustainability risks and opportunities are presented on pages 148-152, 158, 189, 209, 223 and 230 as part of the UPM Sustainability Statement. Financial risk management, including foreign exchange and interest rate risks, is discussed on pages 313-318. Shareholdings in Pohjolan Voima Oyj are discussed on page 129 of the UPM Annual Report 2025.

The EU Packaging and Packaging Waste Regulation (PPWR) entered into force in August 2026. The regulation aims to reduce packaging waste, enhance packaging recyclability and harmonize packaging requirements. Under the PPWR, final responsibility for compliance lies with the company that places the packaging on the EU market. UPM provides packaging and product compliance information and documentation. PPWR-specific details have been added to UPM's Product Safety Declaration of Compliance documents, and a Declaration of Conformity (DoC) has been prepared for the relevant packaging.

UPM Specialty Materials has expanded the application of PPWR-compliant specialty papers by extending its barrier paper technology to label end uses. The new label face paper is designed for applications, where grease protection is needed, such as on olive oil bottles. It delivers grease resistance without the use of per- and polyfluoroalkyl substances (PFAS), helping customers meet the requirements of the PPWR.

During the quarter, UPM Forest completed a materiality screening and impact prioritization of its direct operations in Finland, in line with the Science Based Targets Network (SBTN) Framework and Version 1.1 guidance. The assessment identified the most material impacts on nature, mapped their occurrence and prioritized areas and locations where action could yield the largest positive outcomes. The assessment supports setting future targets and allocating resources effectively. UPM is among a limited number of companies globally that have disclosed validated progress under the SBTN framework.

In January-September 2026, UPM shares worth a total of € 5,689 million (5,702) were traded on the Nasdaq Helsinki stock exchange. This is estimated to represent approximately 70% of the total trading volume in UPM shares. The highest listing was

€27.94 in February and the lowest was €22.12 in July.

The Annual General Meeting held on April 9, 2026, authorized the Board of Directors to resolve on the repurchase of a maximum of 50,000,000 of the Company's own shares. The authorization will be valid for 18 months from the date of the AGM's resolution.

The Annual General Meeting authorized the Board of Directors to resolve on the issuance of new shares, transfer of treasury shares and issuance of special rights entitling to shares in proportion to the shareholders' existing holdings in the Company, or in a directed share issue, deviating from the shareholder's pre-emptive subscription right. The Board of Directors may also resolve on a share issue without payment to the Company itself. The aggregate maximum number of new shares that may be issued and treasury shares that may be transferred is 25,000,000 including also the number of shares that can be received on the basis of the special rights. The authorization is valid for 18 months from the date of the AGM resolution.

Aside from the above, the Board of Directors has no current

authorization to issue shares, convertible bonds or share options.

The number of shares entered in the Trade Register on September 30, 2026 was 527,735,699. Through the issuance authorization, the number of shares may increase to a maximum of 552,735,699.

On September 30, 2026, the Company held 411,653 of its own shares, representing approximately 0.08% of the total number of Company shares and voting rights. The Board of Directors may decide to retain, transfer or cancel the treasury shares.

The Group's management is not aware of any significant litigation at the end of Q3 2026.

CDP Climate A; Forest A-; Water A- (A is the highest) DJSI Indices World and Europe (only constituent)

Ecovadis Platinum (highest level)

ISS ESG Quality Governance 1 ; Environment 1; Social 1 (1 best) ISS ESG Rating B (A+ best)

MSCI AAA (highest level)

Helsinki, October 28, 2026 UPM-Kymmene Corporation Board of Directors

The following information includes both continuing and discontinued operations.

1) Adjustments

1. Basis of preparation and accounting policies

   This unaudited interim report has been prepared in accordance with the accounting policies set out in International Accounting Standard 34 on Interim Financial Reporting and Group's consolidated statements for 2025.

   Alternative performance measures presented in this report should not be considered as a substitute for measures of performance in accordance with the IFRS Accounting Standards and may not be comparable to similarly titled amounts used by other companies.

   Figures presented in this report have been rounded and therefore the sum of individual figures might deviate from the presented total figure. Key figures have been calculated using exact figures.

   Non-current assets and liabilities held for sale and discontinued operations

   Non-current assets (or disposal groups) are classified as assets held for sale and stated at the lower of carrying amount and fair value less costs to sell, if UPM will recover their carrying amount through a sale transaction which is considered highly probable. Non-current assets classified as held for sale or included within a disposal group that is classified as held for sale, are not depreciated or amortized after the classification as held for sale. Assets and liabilities classified as held for sale are presented separately as current items in the consolidated balance sheet.

   Discontinued operation is a component of an entity representing major line of business or geographical area of operations that is disposed of or classified as held for sale. Discontinued operations are excluded from the results of continuing operations and are presented as a single amount as profit or loss from discontinued operations in the consolidated income statement. Cash flows from discontinued operations are included in the consolidated statement of cash flows and are disclosed separately in Note 10 Assets and liabilities classified as held for distribution to owners and discontinued operations.

   Geopolitical developments and trade environment

   The Group has assessed the impact of ongoing geopolitical developments and changes in the global trade environment, particularly the conflict in the Middle East between the U.S., Israel and Iran. Higher fossil fuel prices may have an increasing impact on UPM's energy costs, logistics costs and many raw material costs.

   The Group expects to continue operating and meeting its liabilities as they fall due. UPM has a solid balance sheet and a broad geographic presence. As of September 30, 2026, UPM's cash funds and unused committed credit facilities totaled €2.6 billion.

2. Quarterly information by business area

   € million, or as indicated	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1- Q1/25 Q3/26		Q1- Q1- Q3/25 Q4/25
   Sales
   UPM Energy	129	141	252	176	149	118	173	522	439 615
   UPM Adhesive Materials	413	448	414	391	405	425	434	1,274	1,264 1,655
   UPM Specialty Materials	303	341	332	309	304	328	374	976	1,006 1,315
   UPM Fibres	793	885	876	825	797	870	1,039	2,554	2,706 3,531
   UPM Communication Papers	608	594	613	580	619	630	664	1,815	1,913 2,493
   UPM Plywood	105	121	119	104	113	89	103	345	305 409
   Other operations	162	208	185	187	149	192	166	555	506 693
   Internal sales	-243	-297	-283	-258	-239	-251	-305	-823	-795 -1,053
   Eliminations and reconciliations	-1	-1	-1	-1	-	-1	-	-3	-1 -2
   Sales, total	2,270	2,440	2,505	2,312	2,298	2,400	2,646	7,214	7,344 9,656
   Sales, discontinued operations	67	84	80	60	72	59	73	231	204 264
   Sales, continuing operations	2,202	2,355	2,425	2,252	2,226	2,341	2,573	6,983	7,140 9,392
   Comparable EBITDA
   UPM Energy	23	26	102	56	39	12	51	151	102 158
   UPM Adhesive Materials	45	56	45	33	46	49	49	146	143 176
   UPM Specialty Materials	37	51	52	53	45	48	59	140	151 204
   UPM Fibres	182	181	178	140	105	149	227	541	481 621
   UPM Communication Papers	8	47	27	127	28	21	65	82	115 241
   UPM Plywood	8	18	17	20	16	7	12	44	35 55
   Other operations	-25	-7	-15	-44	-21	-33	-37	-46	-91 -136
   Eliminations and reconciliations	-3	5	-12	-2	-6	3	-5	-10	-8 -10
   Comparable EBITDA, total	277	376	395	382	251	257	421	1,048	929 1,311
   Comparable EBITDA, discontinued operations	10	20	20	21	16	7	13	49	36 57
   Comparable EBITDA, continuing operations	267	356	375	361	235	250	408	999	894 1,254
   Operating profit
   UPM Energy	22	24	100	54	37	10	49	146	97 151
   UPM Adhesive Materials	29	41	25	-6	4	28	27	95	59 53
   UPM Specialty Materials	26	40	43	38	34	30	43	108	106 144
   UPM Fibres	100	86	113	172	62	83	155	299	299 472
   UPM Communication Papers	-7	35	6	183	-53	-2	-22	34	-76 107
   UPM Plywood	-5	16	12	16	7	2	6	23	15 31
   Other operations	-47	-29	-35	-64	-31	-47	-54	-112	-133 -197
   Eliminations and reconciliations	-1	4	-9	-3	-6	4	-6	-5	-8 -11
   Operating profit, total	116	217	255	390	55	107	198	588	359 749
   % of sales	5.1	8.9	10.2	16.9	2.4	4.5	7.5	8.2	4.9 7.8
   Operating profit, discontinued operations	4	9	10	13	7	2	7	23	16 30
   % of sales	5.7	11.1	12.8	22.4	10.3	2.9	9.8	10.1	8.0 11.3
   Operating profit, continuing operations	112	208	245	376	47	105	191	565	343 719
   % of sales	5.1	8.8	10.1	16.7	2.1	4.5	7.4	8.1	4.8 7.7
   Items affecting comparability
   UPM Energy	-	-	-	-	-	-	-	-	- -
   UPM Adhesive Materials	-4	-2	-7	-26	-28	-7	-9	-13	-44 -70
   UPM Specialty Materials	-	-	3	-2	-	-1	-	3	-1 -3
   UPM Fibres	-	-1	-	-	-	-	-	-1	- -
   UPM Communication Papers	1	3	-7	73	-67	-7	-74	-3	-148 -75
   UPM Plywood	-13	-	-1	-	-4	-	-	-14	-4 -4
   Other operations	-10	-11	-9	-9	-	-3	-5	-29	-8 -17
   Eliminations and reconciliations 1)	2	-1	2	-1	1	-	-1	2	-1 -1
   Items affecting comparability in operating profit, total	-25	-13	-18	35	-99	-19	-89	-56	-207 -171
   Items affecting comparability in operating profit, discontinued operations	-6	-9	-5	-4	-4	-	-	-20	-4 -8
   Items affecting comparability in operating profit, continuing operations	-19	-4	-14	39	-94	-19	-89	-36	-202 -163

   € million, or as indicated	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1/25	Q1-Q3/26	Q1-Q3/25	Q1-Q4/25
   Comparable EBIT
   UPM Energy	22	24	100	54	37	10	49	146	97	151
   UPM Adhesive Materials	33	44	33	20	33	35	36	109	104	124
   UPM Specialty Materials	26	40	40	40	34	31	43	105	107	147
   UPM Fibres	100	87	113	172	62	83	155	300	300	472
   UPM Communication Papers	-8	32	13	110	14	5	52	37	72	181
   UPM Plywood	9	16	12	16	11	2	6	37	19	35
   Other operations	-37	-19	-26	-55	-31	-44	-50	-82	-125	-180
   Eliminations and reconciliations	-2	5	-11	-2	-6	3	-5	-8	-8	-10
   Comparable EBIT, total	141	230	274	355	153	126	287	644	566	921
   % of sales	6.2	9.4	10.9	15.3	6.7	5.2	10.8	8.9	7.7	9.5
   Comparable EBIT, discontinued operations	10	18	15	17	12	2	7	43	21	38
   % of sales	14.6	21.4	19.0	28.8	16.0	3.2	9.8	18.6	10.1	14.4
   Comparable EBIT, continuing operations	131	212	259	337	142	124	280	601	545	883
   % of sales	5.9	9.0	10.7	15.0	6.4	5.3	10.9	8.6	7.6	9.4

   1) Eliminations and adjustments includes changes in fair value of unrealized cash flow and commodity hedges.

   Items affecting comparability

   Certain non-operational or non-cash valuation transactions with significant income statement impact are considered as items affecting comparability and reported separately to reflect the underlying business performance and to enhance comparability from period to period.

   In 2026, items affecting comparability include €7 million restructuring charges to improve operations' competitiveness and efficiency and €5 million addition to restructuring charges related to the closure of Kaltenkirchen factory in UPM Adhesive Materials,

   €7 million restructuring charges to improve end-to-end efficiency,

   €1 million reversal of restructuring charges related to the closure of Ettringen paper mill in Germany and €7 million addition to prior restructuring charges. In addition, items affecting comparability include €6 million capital gain on sale of non-current assets in Kaukas site in UPM Communication Papers and €38 million capital gain on sale of non-current assets in Other operations and in UPM Specialty Materials. Other non-operational items include

   €20 million charges related to the strategic review of UPM Plywood Business Area and €54 million charges related to the announced definite agreement related to joint venture transaction between Sappi and UPM in the graphic paper business. Items affecting comparability in financial items include financial expenses and income related to the strategic review of UPM Plywood Business Area.

   In 2025, items affecting comparability include restructuring and impairment charges related to the closure of Ettringen paper mill in Germany, the exercise of a put option concerning the Kraftwerk Plattling power plant company, the closure of Kaukas paper machine 1 in Finland in UPM Communication Papers, the discontinuation of label materials' production at Nancy factory in France in UPM Adhesive Materials, the closure of UPM Biomedicals business, and the discontinuation of Rotterdam refinery project in Other operations. In addition, they include other restructuring and impairment charges in UPM Adhesive Materials, UPM Specialty Materials, UPM Communication Papers, UPM Plywood and Other operations. Items affecting comparability include €46 million capital gain on sale of Plattling paper mill site and another €7 million capital gain on sale of non-current assets in UPM Communication Papers. Other non-operational items include acquisition charges related to Metamark acquisition and charges related to the strategic review of UPM Plywood Business Area and to the announced definite agreement related to joint venture transaction between Sappi and UPM in the graphic paper business. Items affecting comparability in taxes include the impact of the future corporate income tax rate change in Germany. The legislation was enacted in 2025.

   € million	Q3/26	Q2/26	Q1/26	Q4/25	Q3/25	Q2/25	Q1/25 Q Q1- 3/26		Q1- Q1- Q3/25 Q4/25
   Comparable profit for the period, continuing operations	91	163	203	286	93	87	217	458	398 684
   Items affecting comparability, Group total
   Impairment charges	-1	-	-3	-10	-35	-3	-11	-4	-49 -59
   Restructuring charges	-6	-2	-13	9	-71	-16	-72	-21	-159 -151
   Change in fair value of unrealized cash flow and commodity hedges	2	-1	2	-1	1	-	-1	2	-1 -1
   Capital gains and losses on sale of non-current assets	7	24	14	48	7	-	-	45	7 55
   Other non-operational items	-26	-34	-18	-10	-	-	-4	-78	-4 -15
   Total items affecting comparability in operating profit, Group total	-25	-13	-18	35	-99	-19	-89	-56	-207 -171
   Items affecting comparability in financial items	-	-6	-	-	-	-1	-	-6	-1 -1
   Changes in tax rates	1	-1	-	-68	-	-	3	-	3 -65
   Taxes relating to items affecting comparability	5	8	6	-10	14	3	7	19	23 13
   Items affecting comparability in taxes	6	7	6	-77	14	3	10	19	26 -51
   Items affecting comparability, total	-19	-11	-13	-42	-85	-17	-79	-43	-182 -224
   Items affecting comparability, discontinued operations	-5	-11	-4	-3	-3	-	-	-20	-3 -6
   Items affecting comparability, continuing operations	-14	-	-9	-39	-82	-17	-79	-23	-178 -217
   Profit (loss) for the period, continuing operations	78	163	195	246	12	70	138	435	220 466

   Items affecting comparability by business area

   Business area Items affecting comparability 1)

UPM Energy There are no items affecting comparability in 2026 or 2025.

In Q3 2026, items affecting comparability include €1 million gain on sale on non-current assets, €2 million addition to charges to improve operations' competitiveness and efficiency, €1 million charges related to the operations in a region impacted by geopolitical uncertainties and €2 addition to prior restructuring charges. In Q2 2026, items affecting comparability include €2 million addition to restructuring charges related to the closure of Kaltenkirchen factory. In Q1 2026, items affecting comparability include €5 million restructuring charges to improve operations' competitiveness and efficiency and €2 million

UPM Adhesive Materials

UPM Specialty Materials

UPM Fibres

UPM Communication Papers

addition to restructuring charges related to the closure of Kaltenkirchen factory.

In 2025, items affecting comparability include €30 million restructuring charges to improve operations' competitiveness and efficiency, €28 million restructuring charges related to the discontinuation of label materials' production at Nancy factory in France, €6 million addition to impairment charges and €2 million reversal of restructuring charges related to the closure of Kaltenkirchen factory, €3 million charges related to Metamark acquisition and a €1 million addition to charges related to Adhesive Materials factory which was impacted by Hurricane Helene and €3 million addition to prior restructuring charges.

In Q3 and Q2 2026, there are no items affecting comparability. In Q1 2026, items affecting comparability include €2 million restructuring charges to improve end-to-end efficiency and €5 million gain on sale of non-current assets.

In 2025, items affecting comparability relate to restructuring measures.

In Q3 2026 there were no items affecting comparability. In Q2 2026, items affecting comparability include €1 million non-operational costs. In Q1 2026, there are no items affecting comparability.

In 2025, items affecting comparability include €1 million restructuring charges and €1 million capital gain on sale on Korkeakoski saw mill.

In Q3 2026, items affecting comparability include €6 million gain on sale of non-current assets related to the Kaukas paper machine 1 closure and €6 million addition to prior restructuring charges. In Q2 2026, items affecting comparability include €1 million addition to restructuring charges related to prior restructurings, €1 million income on sale of current assets related to the Kaukas paper machine 1 closure and €3 million impairment reversal of non-current assets. In Q1 2026, items affecting comparability include €5 million restructuring charges to improve end-to-end efficiency, €1 million reversal of restructuring charges related to the closure of Ettringen paper mill in Germany and €3 million impairment of non-current assets.

In 2025, items affecting comparability include €42 million restructuring charges and €10 million impairment charges related to the closure of Ettringen paper mill in Germany, €36 million restructuring charges and €36 million impairment charges of fixed assets related to the closure of Kaukas paper machine 1 in Finland, €14 million reversal of restructuring charges related to the closure of Plattling paper mill in 2023, €9 million restructuring charges in UPM Communication Papers to improve mills' operations' efficiency, €4 million restructuring charges and €4 million impairment charges resulting from the exercise of a put option concerning the Kraftwerk Plattling power plant company, € 46 million capital gain on sale of Plattling paper mill site, €7 million capital gain on sale of non-current assets and €1 million addition to prior restructuring charges.

UPM Plywood

Other operations

In Q3 2026, items affecting comparability include €13 million charges related to strategic review of UPM Plywood business area. In Q2 2026, there are no items affecting comparability. In Q1 2026, items affecting comparability include €1 million charges related to strategic review of UPM Plywood Business Area.

In 2025, items affecting comparability relate to earlier restructuring measures.

In Q3 2026, items affecting comparability include €7 million recharge from UPM Plywood related to strategic review of UPM Plywood Business Area and €17 million charges related to the announced definite agreement related to joint venture transaction between Sappi and UPM in the graphic paper business. In Q2 2026, items affecting comparability include €8 million charges related to strategic review of UPM Plywood Business Area, €23 million charges related to the announced definite agreement related to joint venture transaction between Sappi and UPM in the graphic paper business, €3 million impairment charges of non-current assets and €24 million capital gain on sale of non-current assets. In Q1 2026, items affecting comparability include €4 million charges related to strategic review of UPM Plywood Business Area, €13 million charges related to the announced definite agreement related to joint venture transaction between Sappi and UPM in the graphic paper business, and €9 million capital gain on sale on non-current assets.

In 2025, items affecting comparability include €10 million charges related to strategic review of UPM Plywood Business Area and to the announced definite agreement related to joint venture transaction between Sappi and UPM in the graphic paper business, €3 million restructuring charges and €1 million impairment charges related to the closure of the UPM Biomedicals business, €1 million reversal of restructuring charges related to the closure of UPM Biocomposites business, €2 million restructuring charges related to discontinuation of Rotterdam refinery project and €1 million impairment of residual goodwill in Other operations.

1) For the current year, the descriptions of items affecting comparability reflect events accumulated on a quarter-to-date basis and for the prior year, the description of items affecting comparability reflect events accumulated on a year-to-date basis and reflect the full year. The year 2026 includes events occurring in July-September 2026, April-June 2026 and January-March 2026, and the year 2025 includes events occurring in January-December 2025.

1. External sales by major products

   Business area Business Q3/2026 Q3/2025 Q1-Q3/2026 Q1-Q3/2025 Q1-Q4/2025

€ million

1) Operations in UPM Biomedicals have been terminated in Q3 2025.

UPM Energy Electricity and related services

UPM Adhesive Materials Self-adhesive paper, film and graphic materials

UPM Specialty Materials Labelling materials, release base papers, flexible packaging materials, office papers, graphic papers UPM Pulp Softwood, birch and eucalyptus pulp

UPM Timber Standard and special sawn timber

UPM Forest Wood and wood-based biomass (logs, pulpwood, chips, forest residues etc.), full forestry service offering UPM Communication Papers Graphic papers for various end uses

UPM Plywood Plywood and veneer products

UPM Biofuels Wood-based renewable diesel for transport and renewable naphtha for transport and petrochemicals

UPM Biochemicals Lignin products for industrial use

1. Changes in property, plant and equipment

   € million	Q1-Q3/2026	Q1-Q3/2025	Q1-Q4/2025
   Book value at beginning of period	6,459	7,085	7,085
   Reclassification to assets held for distribution to owners, net	-110	-	-
   Reclassification to assets held for sale, net	-	-24	-
   Capital expenditure	164	277	400
   Companies acquired	0	4	4
   Decreases	-4	-1	-53
   Depreciation	-288	-320	-421
   Impairment charges	-1	-31	-40
   Impairment reversal	2	-	-
   Reclassifications	-1	-1	-2
   Translation difference and other changes	142	-517	-515
   Book value at end of period	6,362	6,472	6,459

   Capital expenditure in 2026 and 2025 mainly relate to the construction of the new biorefinery in Germany. Reclassification to assets held for distribution to owners relate to the demerger of UPM Plywood. Please refer to Note 10 Assets and liabilities classified as held for distribution to owners and discontinued operations for more information.

   Impairment charges in 2025 mainly relate to the closure of the Ettringen paper mill in Germany, the closure of paper machine 1 at the Kaukas mill in Finland and to the closure of Kaltenkirchen factory in Germany. Companies acquired in 2025 mainly relate to the acquisition of Metamark. In Q1-Q3 2025, the assets held for sale relate to the sale of Korkeakoski sawmill to Versowood. In Q1-Q4 2025, the decreases relate to the sale of Korkeakoski sawmill to Versowood and to the sale of the Plattling paper mill site in Germany.

2. Financial assets and liabilities Financial assets and liabilities measured at fair value

   € million SEP 30, 2026 SEP 30, 2025 DEC 31, 2025
   	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
   Financial assets
   Investment funds	-	1	-	1	-	1	-	1	-	1	-	1
   Derivatives non-qualifying hedges	-	7	-	7	-	9	-	9	-	8	-	8
   Derivatives under hedge accounting	1	102	-	103	-	70	-	70	-	85	-	85
   Financial assets at FVOCI	-	-	2,580	2,580	-	-	2,482	2,482	-	-	2,193	2,193
   Total	1	110	2,580	2,691	-	80	2,482	2,562	-	94	2,193	2,287
   Financial liabilities
   Derivatives non-qualifying hedges	-	7	-	7	-	8	-	8	-	6	-	6
   Derivatives under hedge accounting	-	317	-	317	1	125	-	126	-	150	-	150
   Total	-	324	-	324	1	133	-	134	-	155	-	155

   There have been no transfers between levels.

   Specific valuation techniques used to value financial instruments at level 2 include the following methods:

   Interest forward rate agreements (FRAs) are fair valued based on quoted market rates on the balance sheet date. Forward foreign exchange contracts are fair valued based on the contract forward rates at the balance sheet date.

   Foreign currency options are fair valued based on quoted market rates and market volatility rates on the balance sheet

   date by using the Black&Scholes option valuation model. Interest and currency swap instruments are fair valued as present value of the estimated future cash flows based on observable yield curves. Commodity swaps are fair valued based on forward curve quotations received from service providers. Valuation of investment funds is based on quoted prices (unadjusted) for identical assets in markets that are not active.

   Fair value measurements using significant unobservable inputs, Level 3

   € million	Financial assets at FVOCI Q1-Q3/2026 Q1-Q3/2025		Q1-Q4/2025
   Book value at beginning of period	2,193	2,247	2,247
   Additions	-	-	29
   Fair value changes recognised in other comprehensive income	387	236	-83
   Book value at end of period	2,580	2,482	2,193

   The majority of financial assets at FVOCI consists of energy shareholdings. The strategic partnership agreement between UPM and Versowood, which became effective on December 31, 2025, increased financial assets measured at FVOCI by €29 million.

   Fair valuation of energy shareholdings in UPM Energy (Pohjolan Voima Oyj's A, B and B2 shares, Kemijoki Oy shares, and Länsi-Suomen Voima Oy shares) is based on the discounted cash flows model. As of June 30, 2025, UPM has no ownership in Pohjolan Voima Oyj's C shares. The electricity price estimate is based on future electricity forward prices and a simulation of the Finnish area electricity price. A change of 5% in the electricity price

   used in the model would change the total value of the assets by approximately €360 (320 in Q3 2025) million.

   The discount rate of 6.73% (7.10% in Q3 2025) used in the valuation model of energy shareholdings is determined using the weighted average cost of capital method. A change of 0.5 percentage points in the discount rate would change the total value of the assets by approximately €240 (240 in Q3 2025) million.

   The increase in fair value during the reporting period was mainly due to the decrease in the discount rate and the increase in forecasted electricity market prices.

   Fair value of financial assets and liabilities measured at amortized cost

   € million	SEP 30, 2026 Carrying amount	SEP 30, 2026 Fair value	SEP 30, 2025 Carrying amount	SEP 30, 2025 Fair value	DEC 31, 2025 Carrying amount	DEC 31, 2025 Fair value
   Bonds	2,567	2,452	2,602	2,510	2,594	2,507
   Other non-current debt excl. derivative financial instruments and lease liabilities	234	232	273	274	249	247
   Total	2,800	2,684	2,875	2,784	2,844	2,754

   The carrying amounts are not significantly different from fair values due to hedges. The fair values of all other financial assets and liabilities approximate their carrying amount.

3. Commitments and contingencies

   The following information includes both continuing and discontinued operations.

   € million	SEP 30, 2026	SEP 30, 2025	DEC 31, 2025
   Other own commitments
   Commitments related to off-balance sheet short-term leases	1	1	1
   Other commitments	140	123	128
   Total	141	125	129

   Capital commitments

   AFTER
   			BY December		September 30,
   € million	Completion	Total cost	31, 2025	Q1-Q3/2026	2026
   New biorefinery / Germany	Q2 2027	1,370	1,293	36	41
   Advanced label material capacity increase / Mills River, NC	Q3 2026	13	4	9	-
   Capability enhancement and capacity increase / Malaysia	Q4 2026	12	2	7	3
   Tyrvää hydropower plant modernization / Finland	Q3 2030	19	4	-	15

4. Notional amounts of derivative financial instruments

   The following information includes both continuing and discontinued operations.

   € million	SEP 30, 2026	SEP 30, 2025	DEC 31, 2025
   Interest rate futures	1,421	1,285	1,319
   Interest rate swaps	1,680	1,671	1,668
   Forward foreign exchange contracts	3,044	3,188	3,192
   Currency options, bought	-	-	-
   Currency options, written	-	-	-
   Cross currency swaps	118	121	114
   Commodity contracts	720	482	401

   € million Restructuring	Termination	Environmental	Emissions	Other	Total
   Value at January 1, 2026 70	89	29	63	30	280
   Provisions made during the year 11	17	-	58	14	100
   Provisions utilized during the year -29	-54	-	-49	-18	-151
   Unused provisions reversed -7	-2	-	-1	-3	-14
   Reclassification to liabilities held for -	-1	-12	-	-1	-14
   Translation differences -	-	-	1	-	1
   Value at September 30, 2026 44	49	17	71	21	202

5. Provisions

   distribution to owners

6. Change in the composition of reportable segments

   The Group has changed its reportable segments composition by moving UPM Forest business into UPM Fibres business area as of January 1, 2026. The vast majority of wood used by UPM in Finland is consumed within the UPM Fibres business, and the Finnish forests are therefore considered an integral operational and strategic part of UPM Fibres North operations. In addition, the change improves consistency with UPM Fibres operations in Uruguay, where forest assets have already been reported as part of the UPM Fibres South operations. Until the end of 2025, UPM Forest was included in Other operations.

   UPM Biorefining, consisting of UPM Biochemicals and UPM Biofuels and reported as part of Other operations, was renamed UPM Next Generation Renewables as of January 1, 2026.

   Following these changes, Other Operations includes UPM Next Generation Renewables, Wood sourcing, Group services and Technology and forest assets in the U.S.

   The change impacts KPIs of UPM Fibres reportable segment and Other Operations. The comparative periods have been restated according to the new reporting principles. The reporting change has had no impact on Group financial result or balance sheet.

   UPM Fibres

   UPM Fibres as published UPM Fibres restated Q1- Q1- Q4/25 Q3/25 Q2/25 Q1/25 Q4/25 Q4/25 Q3/25 Q2/25 Q1/25 Q4/25
   Sales, € million	781	777	838	1,010	3,407	825	797	870	1,039	3,531
   Comparable EBITDA, € million	102	88	119	202	511	140	105	149	227	621
   % of sales	13.1	11.4	14.1	20.0	15.0	17.0	13.1	17.2	21.8	17.6
   Change in fair value of forest assets and wood harvested, € million	31	22	9	2	65	103	28	6	6	144
   Share of results of associated companies and joint ventures, € million	-	1	1	1	2	-	1	1	1	2
   Depreciation, amortization and impairment charges, € million	-72	-72	-72	-79	-295	-72	-72	-73	-79	-295
   Operating profit, € million	62	39	55	126	282	172	62	83	155	472
   % of sales	8.0	5.1	6.6	12.4	8.3	20.9	7.8	9.5	14.9	13.4
   Items affecting comparability in operating profit, € million 1)	-	-	-	-	-	-	-	-	-	-
   Comparable EBIT, € million	62	39	56	126	283	172	62	83	155	472
   % of sales	8.0	5.1	6.6	12.4	8.3	20.9	7.8	9.6	14.9	13.4
   Capital employed (average), € million	6,464	6,539	6,680	7,298	6,745	8,294	8,349	8,482	9,099	8,556
   Comparable ROCE, %	3.9	2.4	3.3	6.9	4.2	8.3	3.0	3.9	6.8	5.5

   Other Operations

   Other operations as published Other operations restated Q1- Q1- Q4/25 Q3/25 Q2/25 Q1/25 Q4/25 Q4/25 Q3/25 Q2/25 Q1/25 Q4/25
   Sales, € million	187	149	192	166	693	187	149	192	166	693
   Comparable EBITDA, € million	-6	-5	-2	-12	-25	-44	-21	-33	-37	-136
   Change in fair value of forest assets and wood harvested, € million	72	6	-3	4	80	-	-	-	-	-
   Share of results of associated companies and joint ventures, € million	-2	-	-	-	-2	-2	-	-	-	-2
   Depreciation, amortization and impairment charges, € million	-10	-10	-11	-14	-45	-10	-10	-11	-14	-44
   Operating profit, € million	46	-9	-20	-25	-8	-64	-31	-47	-54	-197
   Items affecting comparability in operating profit, € million 1)	-9	-	-3	-5	-17	-9	-	-3	-5	-17
   Comparable EBIT, € million	55	-9	-16	-21	9	-55	-31	-44	-50	-180
   Capital employed (average), € million	3,188	3,125	3,136	2,999	3,112	1,358	1,315	1,334	1,198	1,301
   Comparable ROCE, %	6.9	-1.1	-2.1	-2.7	0.3	-16.2	-9.6	-13.2	-16.6	-13.8

7. Assets and liabilities classified as held for distribution to owners and discontinued operations

   On September 23, 2025 UPM announced a strategic review of the UPM Plywood business area to assess options for maximizing its long-term potential in an evolving market environment. On April 29 2026, UPM's Board of Directors approved a demerger plan concerning the separation of UPM Plywood business area into a new independent listed company, to be named WISA Group Plc.

   On August 31, 2026, the Extraordinary General meeting resolved on the partial demerger of UPM in accordance with the demerger plan approved and signed by the Board of Directors of UPM on April 29, 2026, and approved a demerger plan. The planned completion date of the demerger is October 31, 2026. A demerger and listing prospectus was published on July 16, 2026.

   Based on the strategic review, the Board of Directors of UPM has approved a demerger plan concerning a partial demerger of UPM. According to the demerger plan, UPM will demerge so that all assets and liabilities of UPM relating to the UPM Plywood business area, or mainly serving the UPM Plywood business area, are transferred to WISA Group Plc ("WISA Group"), a company to be established in the demerger (the "Demerger").

   UPM has applied for admitting the shares of WISA Group for trading on the official list of Nasdaq Helsinki Ltd ("Nasdaq Helsinki"). Upon the completion of the Demerger, WISA Group would initially have the same shareholder structure as UPM.

   As a result of the demerger plan approval, UPM presents the UPM Plywood business area as discontinued operations in accordance with the IFRS 5 Non-current assets held for sale and discontinued operations starting from the second quarter of 2026.

   In accordance with IFRS 5 standard, the profit (loss) for the period from discontinued operations is presented in the consolidated income statement separately from the income and expenses of continuing operations, and assets and liabilities related to the discontinued operations are presented separately as assets and liabilities classified as held for distribution to owners in the consolidated balance sheet. The comparison periods have been adjusted accordingly in the consolidated income statement. The consolidated balance sheet has not been adjusted.

   The presented discontinued operations include revenue and expenses directly related to the UPM Plywood business area, as well as other income and expenses related to continuing operations that are not expected to continue after the Demerger or that would have been avoided without the proposed Demerger. The balance sheet items that are presented as held for distribution to owners include, in addition to the balance sheet items in UPM Plywood business area, the balance sheet items that will not be part of UPM as a result of the Demerger. As a result of the classification of the disposal group as held for distribution to owners in accordance with IFRS 5, depreciation and amortization of the related non-current assets is ceased.

   Due to the reasons described above, the financial information presented for the discontinued operations is not representative of the historical or future profitability of the UPM Plywood business area as a standalone business.

   The tables below include additional information about UPM Plywood as discontinued operations.

   Income statement, discontinued operations

   € million	Q3/2026	Q3/2025	Q1-Q3/2026	Q1-Q3/2025 Q1-Q4/2025
   Sales (Note 3) Other operating income Costs and expenses Depreciation, amortization and impairment charges	67 - -64 -	72 - -60 -5	231 - -202 -6	204 264 - 3 -173 -218 -15 -19
   Operating profit (loss)	4	7	23	16 30
   Interest and other finance costs, net	-	-	-6	- -
   Profit (loss) before tax from discontinued operations	4	7	18	16 30
   Income taxes	3	-1	-1	-3 -5
   Profit (loss) for the period from discontinued operations	7	6	16	13 24
   Attributable to: Owners of the parent company Non-controlling interests	7 -	6 -	16 -	13 24 - -
   	7	6	16	13 24
   Earnings per share for profit attributable to owners of the parent company Basic earnings per share from discontinued operations, € Diluted earnings per share from discontinued operations, €	0.01 0.01	0.01 0.01	0.03 0.03	0.02 0.05 0.02 0.05

   There are no items in other comprehensive income for the periods related to discontinued operations and therefore UPM will not present a separate table for Comprehensive income for the period for discontinued operations.

   Consolidated balance sheet, discontinued operations

   € million	SEP 30, 2026	SEP 30, 2025 DEC 31, 2025
   ASSETS
   Goodwill	13	13 13
   Other intangible assets	8	8 8
   Property, plant and equipment	110	110 109
   Leased assets	6	5 7
   Non-current assets	137	136 137
   Inventories	82	63 79
   Trade and other receivables	44	43 32
   Income tax receivables	2	2 1
   Cash and cash equivalents	14	2 3
   Current assets	142	110 115
   Assets	280	246 252
   LIABILITIES
   Deferred tax liabilities	7	9 11
   Provisions	14	14 14
   Non-current debt	4	3 5
   Non-current liabilities	25	26 29
   Current debt	2	1 2
   Trade and other payables	48	49 46
   Provisions	-	1 1
   Income tax payables	-	2 -
   Current liabilities	50	53 48
   Liabilities	75	79 77

   Consolidated cash flow statement, discontinued operations

   € million	Q3/2026	Q3/2025	Q1-Q3/2026	Q1-Q3/2025 Q1-Q4/2025
   Operating cash flow	11	3	18	8 11
   Investing cash flow	-4	-3	-6	-6 -8
   Financing cash flow	-	-	-1	-1 -1
   Change in cash and cash equivalents	8	-	11	1 1

8. Assets and liabilities classified as held for sale