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Continued strong performance in the US while addressing weak market in Europe Interim report January–September 2025 Ivar Vatne President & CEO Andrei Krés CFO 23rd October 2025
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Performance and key highlights Q3 2025 INTERIM REPORT JANUARY-SEPTEMBER 2025 SEKm Q3-25 Change vs Q2-25 Change vs Q3-24 Net sales 9,905 -3% -8% Adjusted EBITDA 1,058 +16% -32% Adjusted EBITDA margin 11% +2 pp -3 pp Adjusted operating profit (EBIT) 359 +91% -58% Adjusted operating margin 4% +2 ppt -4 pp Cash flow from operating activities 983 -18% +124% Cash conversion 139% +8 pp +111 pp EPS (SEK) -0.25 n/a n/a Currency-neutral net sales growth in North America Lower sales volumes in Europe Sequentially improved adjusted EBITDA margin to 11% Excellent cash conversion of 139% Launched cost saving program targeting SEK 800 million
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1) 2024 Net Sales in bn SEK. 2) Excluding medical paper. 3) Total Group Net Sales include Currency hedging and Solutions & Ot her, not allocated to end-use segments Q3: Solid situation in US - weak conditions in Europe Most sales channels remain challenging in the near future Sales split, %1 LPB (10.1bn) 100% Cartonboard (2.7bn) 25% 75% Containerboard (5.5bn) 80% 10% 10% Kraft & Specialty Paper (5.1bn)2 50% 30% 10% Sack Paper (3.2bn) 15% 85% Graphical Paper (8.4bn) 100% Share of Group Net Sales3 ~40% ~20% ~10% ~10% Billerud Market status Q3 Weak Normal Weak Weak Billerud Market outlook Q4 Weak Normal Weak Weak Food & Drink Printing & Publishing Papers Consumer & Luxury Industrial INTERIM REPORT JANUARY-SEPTEMBER 2025
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Europe: Navigating through adverse industry conditions Muted consumption Currency headwind High Nordic pulpwood pricing Overcapacity in board (new capacity and reversal of trade flows) INTERIM REPORT JANUARY-SEPTEMBER 2025
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Launched cost saving program to improve profitability and competitiveness INTERIM REPORT JANUARY-SEPTEMBER 2025 Expected savings of SEK 500m during 2026, with sequential impact from Q1 onwards Annualized savings of SEK 800m with full effect at the end of 2026 Restructuring costs of SEK 350m in Q3 2025 Cost measures in Region Europe and Group functions Reduction of up to 650 positions
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Our Evolution journey towards packaging material in North America is progressing 0 2,000 4,000 6,000 8,000 10,000 12,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Packaging Grades Tons (cumulative) INTERIM REPORT JANUARY-SEPTEMBER 2025
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Q3’25: Net sales decline due to FX headwind and lower sales volumes in Europe INTERIM REPORT JANUARY-SEPTEMBER 2025 Net sales, SEKm -8% Q3 2024 Currency impact Price Volume Mix Q3 2025 10 798 -4% -1% -3% 0% 9 897
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Q3’25: Cost inflation, FX headwind and pulp pricing reduced profitability INTERIM REPORT JANUARY-SEPTEMBER 2025 Adj EBITDA, SEKm Adj. EBITDA% 14% 11% 71 Q3 2024 Currency Pricing excl. Pulp Net Pulp Pricing Volume & Mix Net of Raw Materials Fixed Cost Other Q3 Adj. for maintenance deviation Maintenance Shutodwn Q3 2025 -93 -79 -63 -161 -80 -79 -13 1 555 1 071 1 058 -32%
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REGION Europe INTERIM REPORT JANUARY-SEPTEMBER 2025
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INTERIM REPORT JANUARY-SEPTEMBER 2025 • Sales declined across most categories • Sequentially lower maintenance in Q4 (SEK 100m) • Pulpwood cost relief to materialize from Q4 and onward (inventory revaluation impact of approx. SEK -70m in Q4 vs Q3) • Soft order books within Board in Q4 – Paper holding up better • Cost saving program with positive impact from 2026 Share of net sales Q3 2025 Region Europe 63% SEKm Q3-25 Q3-24 Change Net sales 6,231 6,980 -11% Liquid packaging board 2,097 2,369 -11% Containerboard 1,251 1,490 -16% Kraft and specialty paper 882 999 -12% Sack paper 775 841 -8% Cartonboard 563 725 -22% Market pulp 615 512 +20% Net operating expenses -5,579 -5,874 -5% EBITDA 652 1,106 -41% EBITDA margin 10% 16% -6 ppt
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REGION North America INTERIM REPORT JANUARY-SEPTEMBER 2025
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INTERIM REPORT JANUARY-SEPTEMBER 2025 • Weaker USD impacted the result • 4% volume growth driven by both Graphic paper and Label paper • Price increases on Graphic paper from 1st October • Operating rate maintained at 75% Region North America Share of net sales Q3 2025 30% SEKm Q3-25 Q3-24 Change Net sales 2,960 3,138 -6% Graphic paper 2,136 2,140 0% Label paper 507 547 -7% Market pulp 286 452 -37% Net operating expenses -2,493 -2,563 -3% EBITDA 467 575 -19% EBITDA margin 16% 18% -2 ppt
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Input costs INTERIM REPORT JANUARY-SEPTEMBER 2025 GROUP
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Overall stable cost situation in Q3 Wood cost relief to be offset by higher seasonal energy costs in Q4 Fiber Chemicals Energy Logistics Europe North America INTERIM REPORT JANUARY-SEPTEMBER 2025 Trend arrows refer to input cost development during Q3’25 vs Q2’25
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INTERIM REPORT JANUARY-SEPTEMBER 2025 -10-12% -6-15% -9-12% -39-56% Significant declines in pulpwood prices from peak levels Road-side prices, % decline from peak level recorded during 2024 and 2025 Assortment of softwood and hardwood Source: public pricelists, Landbruksdirektoratet, LUKE Broad-based declines across Nordics and Baltics Downward momentum likely to continue due to good availability and supply/demand balance
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Continued excellent cash conversion Strategic CAPEX phasing into 2026 INTERIM REPORT JANUARY-SEPTEMBER 2025 SEKm Q3 2025 Q3 2024 Jan-Sep 2025 Jan-Sep 2024 Profit before tax -48 745 556 1,218 Adjustments for non-cash items 904 575 2,082 1,761 Tax paid -20 -19 -264 -348 Cash flow from changes in working capital 147 -863 375 -1,320 Cash flow from operating activities 983 438 2,749 1,311 Investments in tangible and non-current assets -713 -509 -1,747 -1,824 Operating cash flow after investments in tangible and non-current assets 270 -71 1,002 -513 Cash conversion 139% 28% 91% 36% Cash conversion >130% with strong focus on working capital discipline SEKm Q3 2025 Q3 2024 Net debt 5,597 6,930 Net debt / adjusted EBITDA 1.2 1.5 Adjusted ROCE 6% 5% Strategic capex: SEK 0.7 bn Base capex: SEK 2.2 bn CAPEX of SEK 2.9 bn in 2025 Leverage remains well below target level despite lower EBITDA Capex for 2025 reduced to SEK 2.9bn Capex for 2026 estimated to SEK 2.9bn
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Outlook for Q4 2025 INTERIM REPORT JANUARY-SEPTEMBER 2025 Continued strong performance in North America Lower pulpwood costs in Europe Weak market conditions in Europe
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INTERIM REPORT JANUARY-SEPTEMBER 2025