UPM Biochemicals and URSA, one of the leading producers of glass wool and mineral wool in Europe, today announced the development of more environmentally friendly building insulation that will help to reduce energy consumption and lower CO2 emissions. URSA will produce sustainable glass wool made from an innovative, binder based on UPM BioPiva™ lignin. It will be one of the most natural insulation material available on the market. The new binder implemented by Ursa is based on the proprietary lignin-resin technology developed by UPM Biochemicals. URSA and UPM Biochemicals have closely collaborated in optimizing binder composition for best physical characteristics of the new insulation material and smooth runnability on URSA’s production lines.

• Sales increased by 22.6% to EUR 2 592 (2 114) million, due to higher deliveries and prices. Sales excluding Paper increased by 28.4%. • Operational EBIT increased to EUR 364 (178) million, due to higher prices and volumes, especially in Biomaterials, Wood Products, and Packaging Materials. Operational EBIT excluding Paper increased to EUR 413 (216) million. • Operational EBIT margin increased to 14.0% (8.4%). Excluding Paper, the operational EBIT margin was 19.1% (12.9% • The value of forest assets, including leased land and Stora Enso's share of Tornator, increased to EUR 7.4 (5.4) billion. The forest valuation method was changed in Q4/2020 to market based valuation in Sweden. • Strong cash flow from operations amounted to EUR 463 (363) million. Cash flow after investing activities was EUR 339 (239) million. • Net debt decreased by EUR 314 million to EUR 2 975 (3 289) million.

UPM Raflatac and WWF Poland have renewed their contract to build a smarter future beyond fossils together. During the new three-year contract period the collaboration will focus on promoting circular economy including waste management as well as sustainable forestry practices. To increase the engagement and support for both of these important initiatives facing today’s challenges, this three-year contract is also set to engage UPM Raflatac’s internal and external stakeholders. “As part of UPM The Biofore Company, we are committed to building a sustainable, innovation-driven future and want to share our expertise and assets with the communities we operate in. UPM Raflatac is part of the packaging value chain and labels can play a key role in enabling circular economy in this value chain. Given the resource needs today, promoting sustainable forestry supports our journey beyond fossils,” says Vera Bartsch, UPM Raflatac.