Madison Paper Industries concluded the sale of its hydro power facilities in North America to Eagle Creek Renewable Energy

UPM supports EU’s ambition to become carbon neutral by 2050 and recognizes the need to set more ambitious targets already for 2030. While the revision will support industry’s transformation by setting more stringent targets, UPM is deeply concerned of the regulatory uncertainty the revision may create for the coming years as it may slow down much needed green growth investments. Therefore, the revision should be limited, fit for purpose, and focus on measures that support the increased ambition. Furthermore, UPM calls for policies that recognize the pivotal role of renewable raw materials in replacing the use of fossil resources. Renewability and circular material use in production and consumption open large potential for effective climate change mitigation. The use of sustainably sourced renewable materials offers a unique solution to replace fossil consumption. UPM is committed to “Climate Positive Forestry”, which focuses on increasing the biomass in the forests and their growth through economically, ecologically, and socially sustainable forest management. We make sure that our forests remain carbon sinks and thus support efforts to mitigate climate change.

UPM Plywood and the Industrial Union have signed a business specific collective labour agreement for UPM Plywood. The new agreement is valid for three years starting from 1.1.2022. The new agreement enables mills to continue production on all weekdays with terms that are satisfactory to both parties. The production output and the employees’ earnings will grow based on the new agreement. In addition, more people will be recruited to the mills. The agreement makes continuous seven-day shift model possible, and this means less working hours compared to the current discontinuous model, and the new agreement allows a shift model that is more employee-friendly. The agreement enables faster reaction to demand peaks thanks to flexible working hours, and it includes mutually agreed terms for production during holidays. Furthermore, a model for temporary work at other UPM Plywood mills was agreed on improving on-the-job learning and development as well as employees’ earnings.

Highlights • Robust financial performance with excellent cash generation ▪ Underlying EBITDA of €1,353 million, with margin of 20.3% ▪ Cash generated from operations of €1,485 million ▪ Strong balance sheet at 1.3x net debt to underlying EBITDA • Investing through-the-cycle with capital investment projects delivering growth, enhanced cost competitiveness and sustainability benefits • Delivered against our 2020 Growing Responsibly sustainability commitments and set new ones, the Mondi Action Plan 2030 (MAP2030) • Leveraging long-term trends of sustainability, e-commerce and enhancing our customers' brand value • Well-positioned with cost-advantaged asset base, strong balance sheet and unique portfolio of sustainable solutions