Holmen Interim Report January-March 2021

Third Quarter of 2022 Highlights *Third quarter 2022 (“Q3 2022”) net loss was $23.3 million or a $0.13 loss per share (diluted), compared to net earnings of $30.7 million or $0.16 per share in the second quarter of 2022 (“Q2 2022”). This quarter marked the one-year point for the Company operating its acquired forest- products assets. *Lumber continued to experience price volatility in Q3 2022, with an average selling price of $780/ mfbm compared to $1,255/mfbm in Q2 2022. Steeply rising interest rates and inflation reduced demand for lumber products from the second quarter onward, and remain a concern impacting US housing starts and homebuilders’ confidence. *On September 23, 2022, the Company entered into a credit agreement with a tier-1 Canadian bank for up to $140.0 million consisting of a term loan of $15.0 million and an asset-backed revolving credit facility of up to $125.0 million (collectively, the “Credit Facility”). This refinancing replaced a high yield secured term loan (US$87.3 million outstanding at extinguishment)and a $65.0 million asset-backed loan facility (undrawn at time of extinguishment). *On November 7, 2022, the Company announced the sale of its 203,000 acres of private forest land south of Kapuskasing, Ontario, to a third party for cash proceeds of $49.2 million.

UPM has permanently closed paper production at its Shotton newsprint mill site in North Wales, United Kingdom. The site and all related assets will now be transferred to Eren Paper Ltd, a subsidiary of Modern Karton Sanayi Ve Ticaret A.Ş., the containerboard and corrugated packaging business of the Turkish industrial conglomerate Eren Holding (“Eren”), thereby closing the transaction announced in May 2021. Eren will now start working on the conversion of the site. The Renewable Energy Generation plant, the Material Recovery and the Recycling Facility (MRRF) will continue operations throughout the conversion process, as communicated by Eren, corresponding to their role in the regional utility infrastructure. UPM Shotton was founded in 1983 and has been producing newsprint paper. Production capacity during the last years was 260,000 tonnes annually. The paper mill currently employs 183 people directly and an additional 231 in the site’s Material Recovery and the Recycling Facility and other service operations.

Metallized, Thermal, Cast Coated and Carbonless products impacted - Unsuccessful collective agreement negotiations between Lecta and the trade unions representing the labour force in the Leitza mill resulted in the trade unions starting an intermittent strike as of January 30. Despite all the efforts put in finding a reasonable solution to this issue, trade unions informed that the strike will become indefinite as of today. This unfortunate event will disrupt production schedule in the Leitza mill and will result in orders of the impacted products being postponed and/or cancelled. Lecta is taking all relevant measures to end this conflict as soon as possible and mitigate any inconvenience or disruption this unfortunate situation may have on our clients and is committed to restoring regular production schedule as soon as possible.