Inside information: UPM substantiates its positive outlook following the record strong Q3 2022 results

Stock Exchange Release 13.10.2022 20:00 EEST

UPM-Kymmene Corporation Stock Exchange Release (Inside information) 13 October 2022 at 20:00 EEST

Inside information: UPM substantiates its positive outlook following the record strong Q3 2022 results

UPM substantiates its positive outlook for 2022 following the record strong Q3 2022 results. UPM’s Q3 2022 sales grew by 36% to EUR 3,420 million (2,523 million), and comparable EBIT grew by 84% to EUR 779 million (424 million). UPM’s financial performance is expected to continue above last year’s level and comparable EBIT is expected to increase in 2022 from 2021.

Exceptionally high uncertainty continues in the business environment, as highlighted in UPM’s previous outlook. However, during Q3 2022 no major downside risks materialised and UPM reached record quarterly earnings.

In Q3 2022 good demand continued in most of UPM businesses, and sales prices offset the impact of continued increase in variable costs. Production and delivery volumes were back to normal and operational efficiency was on a good level.

The quarter was successful in all businesses. UPM Energy, UPM Specialty Papers, UPM Raflatac, UPM Communication Papers and UPM Biofuels all made new record quarterly results. In addition, UPM Fibres and UPM Plywood achieved strong results.

UPM will publish its Q3 Interim Report on 25 October 2022.

Table: Comparable EBIT by business area

Comparable EBIT, EURm	Q3 22	Q2 22	Q3 21	Q1-Q3/22	Q1-Q3/21	2021
Fibres	271	92	301	399	571	781
Energy	145	73	63	281	155	270
Raflatac	79	63	54	182	178	223
Specialty Papers	60	30	23	109	116	135
Communication Papers	151	126	-30	363	-23	-79
Plywood	23	32	22	99	42	72
Other operations	74	-14	8	21	10	113
Eliminations	-24	-15	-17	-12	-39	-42
Comparable EBIT, total	779	387	424	1,443	1,010	1,471
of sales	22.8%	15.1%	16.8%	17.0%	14.1%	15.0%

For reference, UPM’s previous outlook for 2022:

“UPM’s comparable EBIT is expected to increase in 2022 from 2021, and in H2 2022 from H2 2021.
Significant uncertainties remain in the outlook for 2022, related to the war in Ukraine, the ongoing pandemic, growth in the European and global economy, the energy prices and availability in Europe, the start-up of the OL3 power plant unit, and the tight raw material and logistics markets.

In the first half of the year, production was significantly affected by the strike at the Finnish units of UPM Pulp, UPM Biofuels, UPM Raflatac, UPM Specialty Papers and UPM Communication Papers. This no longer limits production and as a result, UPM’s delivery volumes are expected to increase in H2 2022 from H1 2022. In the full-year 2022 result, the estimated impact of the strike is not material.

Sales prices and variable costs are expected to be higher in H2 2022 than in H1 2022 in most of UPM businesses. UPM will continue to manage margins with product pricing, optimising its product and market mix, efficient use of assets as well as by taking measures to improve variable and fixed cost efficiency.”

UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Stakeholder Relations

UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media@upm.com

UPM
We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility, we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 17,000 people worldwide and our annual sales are approximately EUR 9,8 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.com