Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras: We delivered strong earnings with a 20% adjusted EBITDA margin and outstanding free cash flow in the third quarter, driven by solid operational performance, good commercial execution and stable input costs. The quarter also had no planned maintenance outages. On Oct. 31, we announced we are mutually terminating a supply agreement for uncoated freesheet, bristols and specialty papers from International Paper’s Georgetown, South Carolina, mill, effective Dec. 31, 2024. We will continue to optimize our North America region by leveraging strategic initiatives to simplify the business, unlock efficiencies and drive earnings growth. We have seen encouraging increases in industry demand across our regions and expect recent capacity reduction announcements to lead to more favorable supply and demand balance trends in 2025. We are confident in our strategy to grow earnings and cash flow by continuing to invest in high-return projects in our mills and processes.

ISLA® Duo cupstock is Kotkamills' solution to an ever-growing problem. It does not contain any plastics or waxes that are harmful for the environment or health. Easy recycling makes ISLA® Duo cups an integral part of the circular economy and makes sure that the valuable wood fibre can be reused. A traditional single-use coffee cup includes a barrier layer made from plastic, which prevents absorption of liquids and greases. The barrier layer in ISLA® Duo products is a water-based dispersion coating instead of PE plastic. Being plastic-free enables the products to be easily recyclable in normal paper and board recycling, and the wood fibre can be reused fully. ISLA® Duo cupstock doesn't contain any waxes harmful for the health nor do they cumulate in the nature like plastic. Click Read More below for additional information.

The pulp and paper packaging industry is undergoing a structural reset. For several years, the industry has faced slowing demand with limited growth, partially due to factors such as the COVID-19 pandemic, the war in Ukraine, the conflict in Iran, and increased use of tariffs. Persistent overcapacity across grades and elevated volatility in input costs, particularly for fiber (in certain geographies such as Europe and large parts of North America) and energy (across the globe), have also had an impact. For decades, the pulp and paper packaging industry operated on a stable economic model: high asset intensity, strong variable margins, and a focus on maximizing throughput to absorb fixed costs. That model is now under sustained pressure. At the same time, companies have expanded their capacity and converted legacy assets (such as reconfiguring newsprint machines to produce containerboard), creating persistent oversupply in several segments. In parallel, postpandemic demand has normalized, e-commerce growth has stabilized, and consumer demand has weakened, leading to flat or declining volumes across many end markets.