Stora Enso completes the divestment of its Maxau paper site to Schwarz Produktion

• Pulp sales of 2,527 thousand tons (stable vs. 3Q19). • Paper sales of 319 thousand tons (+2% vs. 3Q19). • Adjusted EBITDA1 and Operating cash generation² of: R$3.8 billion and R$2.9 billion, respectively. • Adjusted EBITDA1 /ton3 from pulp of R$1,339/ton (+56% vs. 3Q19). • Adjusted EBITDA1 /ton4 of paper of R$1,236/ton (+1% vs. 3Q19). • Average net pulp price – export market: US$458/t (-13% vs. 3Q19). • Average net paper price5 of R$4,081/ton (+1% vs. 3Q19). • Pulp cash cost ex-downtime of R$600/ton (-8% vs. 3Q19). • Capture of operating synergies in line with planning. • Recovery of ICMS credits in Espírito Santo in the gross amount of R$146 million.

As announced on 14 July 2017, the ad hoc committee of holders of the EUR 290 million senior secured notes and the holders of the EUR 100 million NSF loan notes due 2020 (the "NSF"), who hold approximately 46 per cent. of the group's financial indebtedness (excluding local facilities), have provided Norske Skog with a recapitalization proposal. The company has shared its views on the proposal with the SSN AHC and the NSF holders and the SSN AHC and the NSF holders have shared their proposal with other creditor groups. The company has also received a short-form term sheet from the SSN AHC and the NSF holders relating to the provision of (i) a short term Euro 15 million secured facility guaranteed by certain members of the group and (ii) a backstop guarantee facility to help support the operating business of the company's subsidiaries. The company is in the process of considering these financing proposals. To allow for the conclusion of the ongoing stakeholder discussions to be reflected, the company has also today announced that the deadline for the current exchange offers and consent solicitations has been further extended from 31 July 2017 to 11 August 2017. Click Read More below for additional details.

Last spring, the board of the Rottneros Group decided to invest 93 MSEK in a solar park and energy storage. This is part of the Group's efforts to increase the share of renewable electricity, but also to reduce its exposure to the electricity market. The procurement is now complete. Nordic Solar will deliver the solar panels and Powerworks the energy storage. With these contracts in place, everything is lined up to build the Rottneros group's first solar park and energy storage. The facility is expected to generate 3 GWh/year. It is a smaller part of the electricity consumption in the factory, but an important part of the Rottneros Group's long-term sustainability strategy.