SCA closes paper machine

Second Quarter 2022 Financial Highlights: *Produced revenue of $945 million, an increase of 2% compared to the prior year, driven by higher revenue from TiO2 *Generated income from operations of $190 million and net income of $375 million, inclusive of a reversal of a portion of the valuation allowance in Australia relating to deferred tax assets resulting in a non-cash benefit of $262 million *Achieved GAAP diluted EPS of $2.37; adjusted diluted EPS of $0.84 (non-GAAP) primarily due to the exclusion of the Australian valuation allowance reversal of $1.65 *Invested $99 million in capital expenditures, primarily in our newTRON and vertical integration initiatives *Repurchased $25 million or approximately 1.5 million shares during the second quarter; total share repurchases of $50 million year-to-date

ANDRITZ has successfully started up state-of-the-art and environmentally leading pulp production and chemical recovery technologies for Klabin’s Puma II line in Ortigueira, Paraná, Brazil. The ANDRITZ scope of supply included: *A wood processing plant with debarking and chipping line, which can process both eucalyptus (350 m3 sob/h) and pine (400 m3 sob/h), meaning that a log truckload of wood is emptied onto the line every ten minutes. *The HERBTM recovery boiler from ANDRITZ, which has a capacity of 3,300 tds/d with high steam parameters of 103 bar(a) and 502°C to maximize power generation. It is equipped with the autonomous Smart sootblowing control solution that combines Smart sensors (HEWI) and controls to ensure the cleanability period, a higher availability of the boiler, as well as greater operating safety. *A power boiler based on ANDRITZ EcoFluid bubbling fluidized bed (BFB) technology with a steam production capacity of 220 t/h. It is combined with the recovery boiler to form a “boiler island”, and some of the auxiliary equipment is shared between the two boilers. This provides savings in investment and operating costs. *A complete white liquor plant consisting of a recausticizing plant (5,000 m3/d) and an ANDRITZ LimeKiln (450 t/d) with a multi-fuel burner.

Stora Enso has initiated a sales process for a possible divestment of four paper production sites. In line with Stora Enso’s strategy, paper is not a strategic growth area for the Group. The divestment intent is aligned with the Group’s strategy to focus on long-term growth potential for its renewable products in packaging, building solutions and biomaterials innovations. Stora Enso’s paper production sites intended for divestment are: Anjala in Finland, Hylte and Nymölla in Sweden, and Maxau in Germany. The assets are high-quality sites for paper and pulp production with strong infrastructure, and skilled and experienced staff.