Sappi (SAP) Partnership summary

Opening remarks and agenda

• Special investor call convened to discuss the proposed 50/50 joint venture between Sappi and UPM in the European graphic paper sector, with presentations and a Q&A session for participants.

• Announcement of a non-binding letter of intent to form the joint venture, aiming to sign definitive agreements in the first half of 2026 and close by year-end 2026.

Objectives of the partnership

• Establish a 50/50 joint venture to combine European graphic paper businesses, optimize assets, and create a complementary portfolio as an independent company.

• Target at least €100 million in annual synergies, reduce debt, and increase profits for shareholders.

• Address structural changes in the industry, reduce direct exposure to the declining graphic paper market, and reposition portfolios toward higher-growth segments.

• Secure long-term viability, competitiveness, and resilience for the European graphic paper industry.

Partner introductions and roles

• Both Sappi and UPM will contribute specific mills and assets, each holding a 50% share in the joint venture.

• Sappi will contribute four mills, including Kirkniemi, Ehingen, Maastricht, and Gratkorn, plus wood supply joint ventures.

• UPM will contribute eight communication paper mills across Finland, Germany, the UK, the USA, and other European locations.

• Both companies will provide operational and administrative support during the transition phase.