Key highlights Q3 • Higher sales volumes in both regions compared to last quarter, offset by price and mix deterioration • Sequentially lower input costs and lower fixed cost than normalized level • Efficiency enhancement program on track – delivered SEK 175 million in the quarter • Earnings per share positively impacted by recognition of tax credits in the US • Strong operating cash flow with tight control on working capital • Frövi recovery boiler project completed on time, spec and budget. Quarterly data Q3 • Net sales decreased by 14% to SEK 10,210 million (11,814) • Operating profit SEK 415 million (1,536) • Net profit SEK 656 million (1,347)

Operating profit for January-September 2023 was SEK 4 041 million (January-September 2022: SEK 5 905 million). Excluding the item affecting comparability last year, operating profit decreased by SEK 1 599 million due to weaker market conditions for wood products and paperboard. Compared with the second quarter, operating profit for the third quarter increased by SEK 28 million to SEK 1 166 million. The operating margin was 22 (20) per cent. Profit after tax for January-September amounted to SEK 3 159 million (4 606), which corresponds to earnings per share of SEK 19.6 (28.5).

“Earnings per share were in line with our expectations for the third quarter, again increasing sequentially,” said Deon Stander, president and CEO. “Volume in both Label Materials and Apparel Solutions improved sequentially, continuing to recover from slow market conditions, largely inventory destocking, while our Intelligent Labels platform continued to accelerate adoption into new categories. Highlights: *3Q23 Net sales of $2.1 billion -Sales change ex. currency (non-GAAP) down 10% -Organic sales change (non-GAAP) down 11% *3Q23 Reported EPS of $1.71

Massimo Reynaudo has been appointed President and CEO of UPM-Kymmene Corporation as of 1 January 2024. Jussi Pesonen will continue as the President and CEO until 31 December 2023, after which he will work as an advisor to the Company and its management until he will retire from UPM on 30 April, 2024. Massimo Reynaudo has been with UPM since 2017. Reynaudo is an Italian citizen and was born in 1969. He is currently Executive Vice President, UPM Communication Papers. Prior to that, he served as Senior Vice President of UPM Raflatac from 2017 to 2021. Earlier in his career, between 1995 and 2017, he held several senior positions at Kimberly-Clark Corporation. He has a master’s degree in engineering from Politecnico di Torino and additional studies in business administration and management. “Massimo has an excellent international background and a very solid track record at UPM as an engaging change leader. Both in UPM Raflatac and in UPM Communication Papers, he has driven positive change of the businesses, renewed the commercial strategy and built high-performing teams to improve the performance of each business. He has a clear vision of how to continue value creation through UPM’s Biofore strategy. I wish Massimo the best of success in his new demanding role,“ says Henrik Ehrnrooth, Chair of the Board of UPM.

Q3 2023 highlights *Sales decreased by 24% to EUR 2,584 million (3,420 million in Q3 2022) *Comparable EBIT decreased by 72% to EUR 220 million, 8.5% of sales (779 million, 22.8%) *Operating cash flow was EUR 641 million (-201 million), supported by cash inflow from working capital and energy hedges *Net debt decreased to EUR 2,363 million (3,133 million) and the net debt to EBITDA ratio was 1.27 (1.39) *Pulp and electricity sales prices significantly lower than last year, impacting UPM Fibres and UPM Energy. Successful margin management in other business areas *Demand for many of UPM's products started to gradually recover *UPM Paso de los Toros pulp mill and the OL3 nuclear power plant unit contributed significantly to UPM's deliveries *UPM Communication Papers to permanently close its Plattling mill in Germany *UPM received platinum in the EcoVadis responsibility assessment with a high industry score *UPM joined the UN Global Compact Forward Faster Initiative

Drytac, the leading international manufacturer of self-adhesive materials for the large-format print and signage markets, is delighted to announce the appointment of Chris Crawford as Territory Sales Manager for the Southwest US. Based out of Las Vegas, Nevada, Chris will be responsible for Southern California, Nevada, Utah, Colorado, Arizona, and New Mexico. Chris has a wealth of industry knowledge, having worked across both the print and signage markets since 2005. This includes serving in a range of senior positions with various leading print and sign shops, as well as at major print and graphics distributors.

Norske Skog’s EBITDA in the third quarter of 2023 was NOK 327 million, a decrease from NOK 380 million in the second quarter of 2023. The main driver for the lower third quarter EBITDA was lower publication paper sales prices. The cash flow from operations in the quarter was NOK 173 million. Deliveries of packaging paper increased according to ramp-up plans, and Norske Skog Bruck received favourable quality feedback from customers. The Norwegian government proposed to increase the quota price floor for receiving CO2-compensation. “We are very pleased by the positive feedback from our containerboard customers, and that we are well underway to become one of the leading independent supplier of recycled containerboard in Europe. At the same time, we are maneuvering our mills to be as cost effective as possible. By the end of the fourth quarter 2023, Saugbrugs PM5, in addition to PM4, will produce and deliver quality SC magazine paper to our customers,” says Geir Drangsland, CEO of Norske Skog. Cash flow from operations was NOK 173 million in the quarter compared to NOK 353 million in the previous quarter, mainly due to lower EBITDA, receivable insurance compensation, and increased working capital. Operating earnings in the third quarter of 2023 were NOK 36 million compared to operating earnings in the second quarter of 2023 of NOK 146 million.

Rayonier Advanced Materials Inc., the global leader in High Purity Cellulose, announced that it has engaged Houlihan Lokey as its financial advisor to explore the potential sale of its paperboard and high-yield pulp assets located at its Temiscaming site. This strategic move is aligned with RYAM's commitment to enhancing its operational and financial performance, optimizing its portfolio to align with its long-term growth strategy, and providing flexibility to pay down debt and reduce leverage. The engagement of Houlihan Lokey, a renowned global investment bank, underscores RYAM's dedication to a rigorous and diligent evaluation of its strategic options.

Drytac, the leading international manufacturer of self-adhesive materials for the large-format print and signage markets, is delighted to announce the North American launch of its new Drytac Polar Blockout UV opaque printable block out film. Joining the Drytac Zero range of products, Polar Blockout UV is a 2.0 mil (50μ) highly opaque layered white PET film with a matte finish. It is coated with a white pressure-sensitive, permanent aqueous acrylic adhesive which is protected by a 50# siliconized PE coated release paper. It is the ideal solution for two-sided window graphics and other block out layer requirements. The film’s high opacity prevents graphics from showing through on the other side when being used as a cover up graphic, offering a highly effective solution to customers seeking to produce bold and impactful applications.

Paper Excellence Canada is pleased to announce a $175,000 contribution to support the ongoing recovery efforts for individuals, families, and communities in Shelburne and Barrington, Nova Scotia, who were affected by the wildfires in June 2023. Of the total funds, $115,000 will directly support families rebuilding damaged and destroyed homes, and $60,000 will support the We Rise Again Fund – Shelburne County’s efforts to help community members recover. Paper Excellence is grateful for its contribution partners, Freeman Lumber and Scotsburn Lumber, who are providing more than $66,000 in in-kind lumber to support rebuilding efforts, and Wilson’s Home Hardware Barrington for helping Paper Excellence provide families most in need with building supplies.

UPM Raflatac, a global supplier of innovative and sustainable self-adhesive paper and film products, announces a new line of Graphics Solutions, now available in North and South America. UPM Raflatac acquired AMC AG in Germany last year, which included this line of high-quality self-adhesive films and laminates, large format versatile printing and sign films. “Following a successful portfolio of these Graphics Solutions in Europe, we are excited for the opportunity to partner with distributors and provide quality, cost effective materials here in the Western Hemisphere,” stated Gabrielle Whittaker, Director, Films & Specials, UPM Raflatac Americas.

Drytac, the leading international manufacturer of self-adhesive materials for the large-format print and signage markets, is delighted to announce that Glen Fitzgerald has been promoted to the position of Director of Sales for the Americas. In his new role, Glen will assume responsibility for overseeing all graphic and industrial sales across the Americas, a key region for Drytac. Glen has been promoted to the senior role after serving as Technical Sales Manager for Industrial Products in Canada since joining Drytac in September of 2021. He played a major part in Drytac’s ongoing expansion within the Canadian market in that time.

Norske Skog has completed a transaction for the sale of the Tasman mill industrial site and remaining mill assets to the Australasian pulp, paper, and packaging group Oji Fibre Solutions for approximately NOK 70 million (NZD 10.9 million). The sale of the mill site and realisation of certain other related assets, including buildings, electricity equipment, piping, water, and other infrastructure, will generate a total financial gain on sale of approximately NOK 57 million (NZD 8.8 million). “We are pleased to finally have concluded this sales agreement with Oji after lengthy process of negotiations and obtaining all required regulatory approvals for the sale. The sale of the Tasman industrial site to Oji is a material steps towards concluding Norske Skog’s long-term business commitment in New Zealand,” commented Geir Drangsland, President and CEO of Norske Skog.

With the slogan "Paper as a Sustainable Story", Lecta will present its innovative range of top quality recyclable, biodegradable paper especially designed for the publishing industry. The Condat and Garda brand coated papers and the Coral Book ​uncoated papers are the perfect canvas for the compelling stories and journeys books take us on. Made using natural, renewable raw materials, these papers are a reflection of Lecta's commitment to sustainability and its ongoing search for environment-friendly paper solutions. In this edition, Lecta's goal is to strengthen its relationship with the publishing sector by also sharing its ESG (Environmental, Social, and Governance) initiatives and targets. This is part of our continuous efforts to become an increasingly sustainable company, and thus contribute to creating a better world.

Mondi plc announced the agreement to sell its last remaining facility in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities to Sezar Invest LLC for a total cash consideration of RUB 80 billion. Mondi is pleased to confirm closing has been accelerated and the sale has now completed. Mondi has therefore concluded its exit from Russia. Mondi has received RUB 57 billion into its London bank account and it is in possession of a letter of credit for the final RUB 23 billion, which will be paid in two equal instalments in each of November and December 2023. It is intended that the net proceeds from the sale of all Mondi’s Russian assets will be distributed to Mondi shareholders in a timely manner once the final instalments of the consideration in respect of Mondi Syktyvkar have been received.

UPM Raflatac, a global supplier of self-adhesive paper and film products, will showcase their more sustainable sticky notes products at the Insights-X stationery expo in Nuremberg, Germany on 11-14 October 2023. UPM Raflatac will be participating in the expo under the Global Notes by UPM Raflatac brand name after acquiring the AMC AG and the Global Notes brand in 2022. UPM Raflatac will introduce its new UPM Notes product range. UPM Notes offers a selection of different colorful sticky note pads and cubes made from FSC™-certified (FSC C003094) paper. To eliminate the use of unnecessary plastic, the notes are wrapped in transparent FSC™-certified plastic-free paper, making the packaging renewable, recyclable, and significantly lighter when compared to traditional cardboard packaging. UPM Raflatac is the first in the market to offer an innovative beyond fossils alternative for packaging sticky notes.

As part of our 2030 Sustainability Strategy, Lecta has taken a further step in our track record with EcoVadis​, the world's most trusted provider of business sustainability ratings. We have just begun a new partnership at the Group level to assess sustainable performance throughout our supply chain. Through this partnership, we aim to enhance transparency and accoun​​tability in our procurement processes using the strict standards set by EcoVadis' methodology. Lecta's suppliers will be evaluated on the four key pillars of sustainable development: environment, labor, business ethics and sustainable procurement. These evaluations will enable us to identify areas for improvement and work closely with our suppliers to drive positive change. This is essential for our goal of delivering the highest quality products while minimizing our impact on the planet and society, as well as ensuring compliance with European Green Deal objectives, one of Lecta's main commitments.

Solenis, a leading global producer of specialty chemicals for water-intensive industries, completed the acquisition of CedarChem LLC on October 2, 2023. As part of the acquisition, Solenis will acquire all CedarChem operating assets. Headquartered in Cedartown, Georgia, CedarChem offers a full suite of water and wastewater treatment products for industrial and municipal markets, primarily in the southeastern U.S. The acquisition aligns with Solenis’ direct go-to-market strategy to provide customers with improved chemical and wastewater treatment product and service offerings.

Sappi Europe’s Kirkniemi Mill in Lohja, Finland, has successfully made the switch from using fossil fuels to renewable energy to fuel the production of the Galerie paper range. A €16.5 million investment into state-of-the-art facilities and machinery for the reception, storage and handling of biofuels is the latest in a string of efforts by Sappi in meeting its Science-Based Targets Initiative (SBTi)-approved emissions reduction goal across all its regions. Biomass residues such as bark, sawdust and wood chips, largely locally sourced, now fuel the Kirkniemi Mill Galerie paper operations, setting the stage for a 90% reduction in direct fossil greenhouse gas emissions. This upgrade now works alongside the multi-fuel boiler built in 2015, enabling the mill to reduce nearly 230,000 tons of carbon dioxide annually. This means that Kirkniemi Mill is now able to reduce the carbon footprint of the Galerie paper range by 40%. All this comes as part of a longstanding sustainability focus at Kirkniemi that has, in recent years, brought continuous improvements in environmental performance across areas including freshwater usage, emissions to watercourses and energy efficiency.

Paper Excellence Canada is pleased to announce the resumption of kraft pulp operations at its Catalyst Crofton mill, bringing more than 300 workers back to their jobs. While market conditions allow for the restart of our pulp operations, the curtailment of paper operations at Crofton is being extended to the end of October. “In spite of challenges posed by exceptionally low pulp and paper prices driven by global market fluctuations, we are pleased to announce that we are resuming pulp production and reinstating a portion of our workforce at our Crofton mill. While this is a positive development, we will continue to assess the ongoing viability of maintaining Kraft pulp operations at Crofton to ensure it is cost effective to operate and consistent with our overall business strategies,” said Krista Cuddy, Catalyst Crofton, Interim Director – Operations & Integration.

Drytac, the leading international manufacturer of self-adhesive materials for the large-format print and signage markets, is delighted to announce the launch of its new Drytac ReTac Clear PET film in North America. Available to purchase now, ReTac Clear PET is a 3.0 mil clear polyester (PET) film with a clear ReTac adhesive​ and forms part of Drytac’s popular ReTac range of solutions. The film can be applied to all flat and simple curved surfaces, opening up its use to a wide range of applications such as point-of-purchase wall and window graphics. The solution has also been approved by the US Food and Drug Administration (FDA) for incidental food contact, extending its reach to projects including counter-top graphics.

West Fraser Timber Co. Ltd. and Atlas Holdings announced the signing of a definitive agreement for the sale of West Fraser’s Quesnel River Pulp mill in Quesnel, British Columbia and its Slave Lake Pulp mill in Slave Lake, Alberta to Atlas. Atlas owns and operates several pulp, paper and wood products businesses in Canada and the United States. Millar Western logoThe agreement announced today includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel River Pulp facility. Upon closing of the transaction, the Quesnel River and Slave Lake pulp mills will be operated by Millar Western Forest Products, which joined the global Atlas family of manufacturing and distribution businesses in 2017. Millar Western is a more than 100-year-old Canadian forest products company headquartered in Edmonton with existing pulp mill operations in Alberta, establishing a strong foundation and a bright future for the Quesnel River and Slave Lake pulp mills.

Ahlstrom is a leading global manufacturer of high performance, fiber-based materials, supplying innovative and sustainable solutions to its customers. Ahlstrom BioProtect™ is a one source, sustainable, nonwoven solution for laundry care, incorporating patent pending technology to protect laundry from color run during the wash cycle. Ahlstrom BioProtect™ delivers high dye-catching performance, protecting laundry from color runs. Its ability to lock up loose dyes found in the wash water enables it to prevent dye transfer and color runs, maintaining the original color of clothes. The product is biodegradable and biobased, utilizing 100% naturally derived fibers and manufactured with wet-laid technology for premium quality.

Ahlstrom has successfully started the production of new, calendered, and embossed synthetic filter media for the first commercial orders from its Huyn-Poong plant in South Korea. The new materials offer extended filter lifetime and generate less flow restriction due to a higher available surface area. This makes these media a more sustainable alternative to competing materials. A longer filter lifetime combined with outstanding durability is a key feature helping to sustain filter operations and boost performance. This not only saves costs associated with frequent filter replacements but also reduces energy consumption and minimizes environmental impacts by lowering emissions. “The new calendering and embossing capabilities further advance synthetic filter media solutions. They improve durability and open a wide range of possibilities for extended performance, as well as improving the sustainability of filtration units. This allows us to better serve growing needs in high-performance filtration materials,” comments Kathrin Hueppe, Head of Filtration, Asia.

Mondi plc announces that it has entered into an agreement to sell its last remaining facility in Russia, Joint Stock Company Mondi Syktyvkar, together with two affiliated entities to Sezar Invest LLC for a total cash consideration of RUB 80 billion to be paid in a series of instalments as set out below. The Business employs approximately 4,500 people and is a leading provider of uncoated fine paper and containerboard to the domestic Russian market.

Canfor Corporation is pleased to announce that it will be investing approximately $200 million to build a new state-of-the-art manufacturing facility in Houston, British Columbia. This low cost, high efficiency facility will have an annual production capacity of approximately 350 million board feet. Don Kayne, President and CEO made the following statement today: “I’m very pleased to be making this announcement in British Columbia, where Canfor has been proudly headquartered for 85 years. This project represents another significant investment by our Company to strengthen our diversified operating platform and ensure that we can continue to deliver the high-value products that are in demand by our customers around the globe.

Sappi North America, Inc., a leading producer and supplier of diversified paper, packaging products and pulp, today announced its 2023 Ideas that Matter grant recipients, whose winning proposals celebrate the power of print design to address social issues. This year, recipients’ projects addressed a range of issues, including restorative justice, diversity and inclusion, intergenerational engagement, education, urban segregation and community building. Since 2021, entrants have been asked to align their submissions with at least one of the 17 United Nations Sustainable Development Goals (SDGs), ensuring that grant applications are focused on critical and timely global societal concerns.

Drytac, the leading international manufacturer of self-adhesive materials for the large-format print and signage markets, is delighted to announce that it will demonstrate a range of its market-leading solutions at the upcoming PRINTING United Expo 2023. Taking place from October 18-20 at the Georgia World Congress Center in Atlanta, Georgia, PRINTING United will welcome thousands of visitors from all corners of the printing market, as well as attendees from related industries. Drytac will have a heavy presence throughout the event; running its own dedicated booth, working with partner companies, and taking part in special features, maximizing the opportunity to connect with a highly diversified audience.

Pixelle Specialty Solutions has improved safety and productivity at its Spring Grove, Pennsylvania facility by installing a smelt spout robot manufactured by Valmet. The smelt robot is essential for keeping recovery boiler spouts open and improving efficiencies in the liquor recovery cycle. The first smelt robot installation of its kind in North America, the robot regularly cleans the recovery boiler smelt spouts ensuring stable smelt flow, optimum cleaning and safer boiler operation, without manual intervention. “We’re proud to introduce the industry-first smelt robot installation in North America, supporting our ongoing commitment to operational excellence and innovation in specialty papers,” said Ross Bushnell, President and Chief Executive Officer, Pixelle. “By leveraging the latest automation technology, we are positioned to drive greater mill safety, productivity and quality.”

Paper Excellence is proud to have taken part in the ASEAN-Canada Roundtable last week. Davis Chiu and Blair Dickerson represented us in Jakarta, talking about the forest industry’s support and use of clean bioenergy and Paper Excellence’s commitment to Indigenous partnerships. Thanks also to Goldy Hyder, CEO of the Business Council of Canada, who spoke to the need for regulatory certainty in Canada to create clear pathways for innovation.