Stora Enso (STE) Status Update summary

Strategic review

• Review launched to sharpen renewable-packaging focus, considering a partial demerger and public listing of the Swedish forest business to create two more focused, agile businesses.

• A tax-free 100% spin-off to current shareholders is the main option; the forest business could become Europe's largest listed pure forest company.

• Packaging operations would retain strong market positions and target more flexible, integrated and cost-competitive production.

Swedish forest assets

• Agreed divestment of ~175,000 hectares, or 12% of Swedish forest land, for €900m enterprise value, including €790m cash proceeds; sale was in line with book value and strengthened the balance sheet.

• Retained forests exceed 1.2m hectares, including 1.0m productive hectares; fair value was ~€5.8bn as of 31 March 2025.

• Long-term wood supply agreements ensure continued supply to industrial operations after divestment.

Business focus and operational performance

• Four consecutive quarters of improved adjusted EBIT and profitability, driven by cost reduction and competitiveness initiatives.

• Working capital reduced by €700m, from over 14% to 7% of sales.

• Leaner, more customer-focused organization announced to support strategic objectives.