AGM 2021

Mar 30, 2021

Slides

Welcome to UPMCuminez Virtual AGM. Sadly, it's virtual. We would, of course, very much rather have seen you all in person. But on the other hand, the virtuality gives us the opportunity to communicate with a somewhat broader audience in a somewhat different way. We meet for our Annual General Meeting under circumstances that are a bit complicated. But on the other hand, we meet under circumstances with a bit more clarity, I think, than we had a year ago. It is now clear that at least where the businesses of UPM Kymene are concerned, The implications of the pandemic have not, at least not in financial terms, been as dramatic as I think we feared a year ago. Partly, it's, of course, due to the fact that the pandemic has turned out to be somewhat different than we feared. And on the other hand, and here, I would like to express a very, very warm thank you to the whole organization of UPM Kymene, the company, its managers and its people have been able to adapt in an admirable way. What that means is that while we're not reporting on a record result for 2020, we're still producing a decent result, good even. And when I look towards the future, I think it looks very, very promising indeed. We are now actually at something of a top have an investment cycle. This used to be something which one wasn't really meant to tell one's shareholder in the old pulp and paper industry a quarter of a century ago because the moment you mentioned the word investments, people with good reason on the investor side became very concerned that once again the management of the companies were running wild investing their money left and right. As I'm sure you know, this is no longer the case. UPM Kumanet has been investing all along. We have upgraded our 3 pulp mills in Finland to fantastic status, to global competitiveness, and we have maintained that competitiveness in our Friventis pulp mill in Uruguay. While we have had to backtrack in paper to maintain the balance of supply and demand in the European market, primarily for printing papers. We have also made a number of smaller investments. And particularly at the moment, we are completely upgrading or actually building a new power unit in our Northland Papyr plant in Durpen in Germany. But the 2 most important investments underway, of course, is the world's largest pulp mill well underway being constructed at Paso de los Toros in Uruguay. It will be a 2 +1000000 tonne pulp mill, something the world has never seen before. And I'm very glad to report, as I'm sure Mr. Pessanen will do in greater detail, that it is on time. We admit to the fact that the railroad project probably will be running a bit behind schedule, but that doesn't really mean that there will be any problems with opening up the plant. Therefore, it's fascinating to see such a giant venture being on time in these very trying times with the pandemic and everything else affecting global commerce. It seems to us that the opening up of that plant, which we hope will occur, as I said, on schedule, will probably fit the pulp market rather well. We are seeing strengthening pulp prices, actually quite forcefully strengthening. And as a consequence, it now seems to us that that investment proposal and indeed its realization at Paso de los Torres is a really timely one and we have great hopes for the future. In a way, and even more interesting, primarily because it's a completely new area for UPM Kimere is the plant we're building in Leuna in Eastern Germany. We will be entering a very interesting new chemicals market where the thing that binds it to our root really is the raw material we will be working with lumber, with biological fibers as we do in most all of our businesses. Again, Jussi will, I'm sure, provide more on this investment, but it is fascinating to us on the board to see how we are moving in a new direction determined by the trends that we can see in our environment the most important trends away from petrochemical molecules away from carbon that's been dug out of the earth into recyclable carbon molecules where the raw material is growing either in woods or on fields. All this contains wonderful challenges and wonderful growth opportunities for UPM Kuehne. If you add to that, that we have very sizable businesses, of course most obviously our pulp business, but also our specialty papers business which to a large extent produce this release liner for the industry that is using them as back papers for labels. And then of course our label stock division, all of which are an important part of the global growth in e commerce. I think the challenges could not be more exciting going forward. So move. It is with some enthusiasm and a great degree of confidence that we're looking at the future add this AGM. The company is in really good shape and that is something I really want to thank all of its people, its managers and also personally its CEO for. You've all done a great job under difficult circumstances And we're seeing a road forward which is clearer in the case of UPMKU MENENET than it is in many, many other industries. We are in the midst of reshaping a traditional industry that used to be thought of as an industry of the past because it produced a medium which the demand for which is stably decreasing namely paper. We are converting it into an industry which is one of the key industries of the future, an industry that uses recyclable biological molecules to create almost anything. It is therefore a very wonderful moment really to bid you all welcome to the AGM and express on the behalf of the board and the whole company our thankfulness and our, should I say, a very warmest thanks for contributing by voting and by watching the presentations love this AGM. As I said in the early part of the message, I would dearly have liked to meet you all face to face in the traditional manner. Alas, there is no opportunity for that. The main thing, of course, is that the company is running well. The main thing is that the voice of its owners is being heard and let its board and management conduct their jobs, they rise to the challenges ahead a way which produces shareholder value. With that, I think it's a great moment to wish you all a great experience listening to the presentations of the AGM and once more say, welcome to the AGM, although you're not really here accept in a virtual sense just like myself. So welcome. The meeting has been open now, And we move on to item number 2. KOKOX and Jarest Stautomnen calling the meeting to order. I will endeavor to guide you through the meeting with comments in English as well. So, Sarmuria Helminen is called to act as the secretary of the meeting. Due to the COVID-nineteen pandemic, the Annual general meeting will be held as a remote meeting based on the temporary legislative act. It's not possible to attend the meeting in person, And the members of the Board of Directors as well as the Board candidates, the President and CEO and the company auditor will therefore not be present at the meeting. The formalities regarding the order of the meeting are set forth in the notice and applicable laws, and the formalities will be recorded in the meeting minutes, which will be available on the company's website latest on the 13th April this year. Due to the exceptional nature of the meeting, all formalities recorded in the meeting minutes will not be read out loud. We thank you very much for your cooperation and standing in making this meeting possible despite these extraordinary circumstances. And Karl Temecke will scrutinize the minutes and supervise the counting of votes. We note in the meeting in the minutes that the Annual General Meeting has been legally summoned and constitutes a quorum. Record the attendance at the meeting and adoption of the list of votes. As you can see, around 54.2% of all the shares and votes of the company are represented at this meeting. We can note that company has not been informed about technical or other issues related to the advanced voting or reduction of the list of votes, The shareholders' right to attend the meeting and the validity of the counting of votes have therefore been reliably ascertained. Is stated and we can note that the votes given in advance form a requirement majority for each matter on the agenda to support the proposals given by the Board of Directors and its committees. And I will and we will separately inform you about the voting results in each item on the agenda. The list of votes is hereby confirmed. The financial statements, the report of the Board of Directors and the auditors' report for the year 2020 will now be presented. President and CEO, Jose Pesonen, will now make his presentation. Force siliva by the 2 data. We'll now move to the auditors' report. We note in the minutes that the financial statements, annual report and auditors report have been presented to the Annual General Meeting. Resolution on the use of profit shown on the balance sheet and the payment of dividend. And we can see the proposal. Do. The proposal regarding the dividend has been approved and adopted. Solution of discharge of the members On the Board of Directors and the President and CEO from All Liability, Patus, on Uwakse Twelig, Vastova Pausmoernet. We note that the persons mentioned have been discharged from liability. Ittte Palakgecimis Raporte on Vahavis2. We note on basis on the advanced voting that the AGM has adopted a remuneration report for 2020. But I mean, resolution on remuneration of the members of the Board of Directors. We will note on the basis of the votes given will be a resolution on a number of members of the Board of Directors. I am Erotetan since Urekson, Varzinaiste, yes, and 9 members has been proposed. So this Proposal has been approved and adopted. And then valid, Siminen, election of 9 members of the Board of Directors. Take a look at the video introduction of directors director nominees. Yes. That's not we have only also new direct On the basis of the votes already given in advance, We can note that the proposal to the new composition of the Board of Directors has been approved. Solution and remuneration of the auditor. That's a Mella on Esitus. We are about to elect the auditor. And we can see the proposal. Authorizing the Board of Directors to decide on the issuance of shares and special rights entitled to shares. Jettas on TVsterme. Esitux system. Here's a summary of the proposal. Authorizing the Board of Directors to decide on the repurchase of the company's own shares. Here you can see We note in the minutes that the proposal has been approved and adopted. The last item on the agenda, authorizing Board of Directors to sign on You can see how the previous authorization has been used. We can note in the minutes that this proposal has been approved and adopted. Since all matters on the agenda have been handled by the meeting, I can conclude the meeting and thank the shareholders and the viewers, and wish you