Stora Enso Oyj

Q3 operating performance: steady organic growth + margin resilience - Organic sales +2% YoY, supported by higher deliveries in Consumer Packaging and Integrated Packaging, plus higher prices in Integrated Packaging and Biomaterials. - Adjusted EBIT margin >7% despite planned annual maintenance and higher costs tied to the Iran conflict (energy/logistics/chemicals). - Adjusted EBIT: EUR 161m, +28% YoY (+EUR 35m). - Key drivers (EBIT bridge): - Volumes: +EUR 31m (mainly Consumer Packaging + Integrated Packaging), even with maintenance. - Variable costs: +EUR 40m (lower wood costs + cost actions; partly offset by Iran-related cost escalation). - Price/mix: -EUR 12m (higher prices in Integrated Packaging/Biomaterials offset by lower external wood prices in Sweden).

Cash flow and balance sheet: strong improvement; CAPEX discipline - Cash flow from operations: EUR 245m (higher than prior year). - Cash flow after investing activities: EUR 132m vs EUR 57m last year. - CAPEX outlook cut: full-year 2026 CAPEX guidance reduced from EUR 550m to EUR 500m (capital discipline; “no change of direction”). - Net debt improved: -EUR 85m to EUR 2.5bn, and net debt / adjusted EBITDA ~2.1x. - Dividend/buyback: none mentioned in the transcript.

Bergslagets Skogar separation: a major strategic step (and it changes reporting) - Management has formally decided to proceed with the planned demerger. - First Capital Markets Day (CMD) for Bergslagets Skogar in a few days (next week mentioned). - Impact on Stora Enso (illustrative, LTM basis): - Reported sales impact expected limited (Bergslagets Skogar sales historically largely internal). - Excluding Bergslagets Skogar, LTM adjusted EBIT ~EUR 400m vs EUR 580m group ⇒ impact < EUR 200m on current EBIT margin. - Balance sheet: ~EUR 800m net debt transferred to Bergslagets Skogar at completion, reducing Stora Enso’s absolute net debt and aligning leverage to the smaller business. - Opportunity: sharper focus + value unlocking; risk/uncertainty: investors need CMD detail (management repeatedly defers specifics to CMD).