UPM Half Year Financial Report 2023: 
Strong downturn in markets pushed Q2 results to exceptional lows - transformation continues

Q2 2023 highlights 

• Sales were EUR 2,558 million (2,562 million in Q2 2022)
• Comparable EBIT decreased by 71% to EUR 114 million, 4.5% of sales (387 million, 15.1%)
• Delivery volumes were impacted by destocking in various product value chains
• Pulp and energy prices decreased to cyclical bottom levels
• Operating cash flow was EUR 459 million (-879 million), supported by cash inflow from energy hedges
• UPM Paso de los Toros pulp mill in Uruguay ramping up production according to the plan
• The OL3 nuclear power plant unit began regular commercial electricity production
• Permanent closures of PM6 at UPM Schongau, Germany and PM4 at UPM Steyrermühl, Austria

H1 2023 highlights

• Sales increased by 5% to EUR 5,345 million (5,069 million in H1 2022)
• Comparable EBIT decreased by 29% to EUR 470 million (664 million), and was 8.8% (13.1%) of sales
• Operating cash flow was EUR 1,173 million (-867 million), supported by cash inflow from energy hedges
• Net debt decreased to EUR 2,557 million (2,688 million) and the net debt to EBITDA ratio was 1.07 (1.42)
• Cash funds and unused committed credit facilities totalled EUR 6.4 billion at the end of Q2 2023
• UPM finalised its full exit from Russia
• UPM Leuna biochemicals refinery project schedule updated, start-up expected by the end of 2024 and investment estimate is EUR 1,180 million