1. COMPANY OWNED N2K AREA UPM – Metsähallitus Partnership in Management of Repovesi area Workshop on Forests and Natura 2000 - 23 May, 2013

2. | © UPM UPM today Global operator - Sales operations in 67 countries, production in 17 countries Sales 10,4 billion euros in 2012 22,000 employees Listed in the NASDAQ OMX Helsinki stock exchange 2 Engineered materials 5,300 employees Paper 12,600 employees Hydro, nuclear and condensing power Biofuels Pulp Forestry and biomass businesses Plantation operations Wood sourcing UPM Timber Focus on graphic and printing papers Label Plywood UPM ProFi Energy and pulp 3,700 employees May 23, 2013

3. | © UPM Sales network and production plants 67 production plants in 17 countries: - Europe: 55 - USA5 - Brazil1 - Uruguay1 - China2 - Australia1 - Malaysia1 - South-Africa1 Global sales network

4. | © UPM Our businesses EnergyPulp Forest & Timber PaperLabelPlywood 4 May 23, 2013

5. | © UPM Repovesi National park and the Griffin’s forest In 2002 UPM-Kymmene donated 560 ha’s of land to the state of Finland enabling to establish the Repovesi National Park together with 900 hectares of state owned land. At the same time UPM also established voluntarily protection area of 1 400 hectares surrounding the donated area. This area remains under UPM ownership and it carries name The Griffin’s forest The present value of this donation is nearly 8 million Euros. These areas are managed as one Repovesi unit, all under N2K by Metsähallitus. 5 May 23, 2013

6. | © UPM Repovesi area The National Park in green The Griffin Forest in brown UPM donated land area No-go military area 6 May 23, 2013

7. | © UPM The management of Repovesi N2K area A steering group for the management purposes of Repovesi was established in 2002 with members from –UPM (Chairperson) –Metsähallitus (Management practices & operational activities) –Regional Centre for Economic Development, Transport and the Environment In practice all strategic decisions concerning the management of the area are done by the steering group. 7 May 23, 2013

8. | © UPM The N2K Nature Types of Repovesi 8 May 23, 2013 N2K HabitatsHa Oligotrophic waters containing very few minerals of sandy plains33,51 Natural dystrophic lakes and ponds26,24 Water courses of plain to montane levels2,54 Transition mires and quaking bogs21,16 Siliceous rocky slopes with chasmophytic vegetation9,82 Siliceous rock with pioneer vegetation0,74 Western taiga663,69 Fennoscandian hemiboreal natural old broad-leaved deciduous forests1,29 Fennoscandian herb-rich forests with Picea abies1,84 Coniferous forests on, or connected to, glaciofluvial eskers3,93 Fennoscandian decidious swamp woods5,12 Bog woodland190,08 TOTAL959,96 1/3 of the total area dominated by western taiga and bog woodlands

9. | © UPM Works within Metsä-Life Project EU-funded project for enhancing the natural boreal forests and bogs with tree stands. 2002-2007. UPM joined with various restoration operations in the Griffin forest. –Forest workers removed some trees and did part of the after burn control Bog restorations, controlled fires, conifer stands opened for broadleaf trees and for a more diverse structure. 9 May 23, 2013

10. | © UPM Recreational use Most of the recreational structures are built in the Griffin Forest by Metsähallitus. Recreational use is concentrated in the Griffin Forest with the idea of preserving the Repovesi National Park in a more natural state. Many sites of cultural heritage have been found in the inventories indicating a long time span of human activities in the area. The area was voted as the best hiking destination in Finland in 2012. 10 May 23, 2013

11. | © UPM Summary 11 May 23, 2013 UPM made a considerable investment in 2002 with no expectations of economic return. Since then UPM has put in some labour costs but otherwise no economic input. The company has a strong ecological knowledge and is happy to provide this expertese in use.

12. | © UPM Summary 2 The steering group cooperation has been very positive and UPM has been active in proposing various management activities. The management regime is unique and works to the satisfaction of all parties. Repovesi has a strong and improving contribution to the N2K network, as well as nature experience and welfare to its 90 000 annual visitors. UPM has gained some positive publicity. The role of Griffin Forest is important in the public image of the company. 12 May 23, 2013

13. | © UPM UPM Stakeholder Engagement Active partnership with –IUCN –WWF –Royal Society for Protection of Birds, UK –Osprey Foundation, Finland –Birdlife Finland –Finnish Association for Conservation of Nature –Aves Uruguay –Vida Silvestre, Uruguay But why? –Partnership creates mutual understanding –Proactive action dealing with issues 13 May 23, 2013 ‒ We learn ‒ ENGO’s are change agents in society, they predict future direction of socio- environmental development.