UPM’s Board of Directors has approved the commencement of new plans for the period 2020–2022 within the company’s two long-term share incentive programmes: the Performance Share Plan and the Deferred Bonus Plan.

The long-term share incentive programmes consist of annually commencing new plans subject to the approval of the Board of Directors of UPM in each case.

The earning criterion for the earning period 2020–2022 of the Performance Share Plan is the total shareholder return during 2020–2022.

The earning criteria for the Deferred Bonus Plan are based on the Group and each business area’s EBITDA. The plan for the period 2020–2022 consists of a one-year earning period (2020) and a two-year restriction period following thereafter (2021–2022).

The share incentive plans for the period 2020–2022 cover in total 424 participants. In case all the set performance targets are met in full, the estimated total maximum number of shares to be delivered under these plans is approximately 1,035,000 shares. The above indicated estimate of the maximum share rewards represents the gross value of the rewards of which the applicable taxes will be deducted before the shares are delivered to the participants.

Share delivery will be executed by using already existing shares and the plans, therefore, have no dilutive effect. Besides the attainment of the performance criteria the share reward under both plans is subject to the continuation of the employment. The share rewards earned on the basis of the plans for the period 2020–2022 will be delivered in 2023.