UPM Interim Report Q3 2021

UPM delivers a record quarter in an exceptionally volatile global environment
Q3 2021 highlights
• Sales increased by 24% to EUR 2,523 million (2,028 million in Q3 2020)
• Comparable EBIT increased by 98% to EUR 424 million, 16.8% of sales (215 million, 10.6%)
• Operating cash flow was EUR 318 million (365 million)
• Demand for UPM’s products was good, and overall, price increases more than offset the rapid rise in input costs
• UPM completed the sale of the UPM Shotton newsprint mill in the UK
• The global sustainability ratings provider EcoVadis recognised UPM on the highest possible Platinum level for its responsible performance in 2021
• UPM was recognised as one of the world’s 37 most sustainable companies by the UN Global Compact
Q1–Q3 2021 highlights
• Sales increased by 12% to EUR 7,141 million (6,392 million in Q1–Q3 2020)
• Comparable EBIT increased by 45% to EUR 1,010 million (697 million), and was 14.1% (10.9%) of sales
• Operating cash flow was EUR 844 million (659 million)
• UPM’s transformative growth projects made good progress
• Net debt increased to EUR 667 million (89 million) and net debt to EBITDA ratio was 0.38 (0.06)
• Cash funds and unused committed credit facilities totalled EUR 2.5 billion at the end of September
• UPM started the basic engineering phase of a next-generation biofuels refinery in January
• UPM joined The Climate Pledge in February, committed to reach the targets of the Paris Agreement 10 years in advance

Jussi Pesonen, President and CEO, comments on the Q3 results:
“The third quarter of the year was the best-ever quarter for UPM. At the same time, we have been able to make good progress with our transformative investments. These achievements are remarkable in an exceptionally volatile and uncertain global business environment, and I want to thank all UPMers for the resilience and determination they have shown.

The demand for our products was good, particularly in Europe and North America, and sales prices increased in all our businesses. However, variable costs rose rapidly across the board as well. Most notably the energy markets have changed dramatically in a short period of time. Our operational efficiency was excellent despite the challenges in logistics and global supply chains.

Q3 sales increased by 24% to EUR 2,523 million. Comparable EBIT was up by 98% rising to EUR 424 million from the lockdown affected Q3 of last year. Comparable EBIT margin reached 16.8%. Operating cash flow was EUR 318 million and our financial position remains very strong. Net debt at the end of September was EUR 667 million, 0.38 times EBITDA, and our cash funds and unused committed credit facilities totalled EUR 2.5 billion.
details at: https://www.upm.com/siteassets/asset/investors/2021/upm-interim-report-q3-2021-en.pdf

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