Stora Enso (STE) Status Update summary

Strategic review and asset optimization

• Initiated a strategic review of Swedish Forest assets, considering a potential partial demerger to create a leading listed pure forest company in Europe.

• Recent sale of 12% of Swedish Forest lands for €900 million, with €790 million in cash proceeds, strengthens the balance sheet and confirms asset value.

• The remaining 88% of Swedish Forest assets, valued at €5.8 billion, are under review for further value creation and potential separation.

• Long-term wood supply agreements ensure continued supply to industrial operations post-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 €700 million, lowering it from over 14% to 7% of sales.

• Announced a leaner, more customer-focused organization to support strategic objectives.

Value creation and future opportunities

• The forest business offers steady income, cash flow, and new revenue streams such as renewable energy, carbon credits, and sequestration.

• Forest assets are highly productive, sustainably managed, and optimally located in central Sweden, supporting high demand and asset value.

• The review aims to unlock value in both the forest and renewable materials businesses, with a focus on renewable packaging.