UPM Q1 Update

Solid Q1 result

UPM, a leading player in the pulp & paper industry, had an outstanding year in 2022. As the industry faces a challenging near future, UPM has diversified its business and remains in a strong position compared to competitors.

Industry Overview:

• Raw material prices are up

• Stocks are full

• Cyclical business

• Major pulp mills opening, including UPM Paso de los Toros and Metsä Group in Kemi

UPM - Key takeaways from Q1

• Two transformative projects were completed: OL 3 (nuclear power plant) and a new pulp giant in Paso de los Toros, Uruguay.

• Increased customer interest in biochemical products (biorefinery under construction in Leuna, Germany).

• Full exit from Russia and closing paper production in Austria and Germany.

Outlook for 2023

• Challenging outlook due to uncertainties in the European, Chinese, and global economy, Russia's war in Ukraine, lingering effects of the pandemic, energy prices, and regulations in Europe.

• Strong trust in UPM's ability to manage margins well - exceptional management.

Is the stock still worth it to own?

• The price action will not be anything spectacular during 2023. Stock is still wonderful to own, and the long-term outlook remains strong.

  UPM offers good dividends, exceptional value, and quality, making it a top choice in Finland.