Comments by the CEO: The third quarter was another solid quarter for Billerud. As we had planned, our net sales grew, and profitability improved in both regions. The positive profitability trend we have seen from the beginning of the year continued. The Group’s EBITDA margin ended at 14%, our strongest result since Q4 2022. Production stability was solid in the quarter and our scheduled maintenance stops in three mills went according to plan. Yet again, region North America delivered an excellent financial performance with double digit sales growth and 18% EBITDA margin. All our categories in the US contributed to the strong result. In Region Europe, our fiber cost continued to increase, while most other input costs declined. Also for this quarter, we were successfully able to offset the cost inflation by proactive pricing and portfolio management for Europe. This is key and it will continue to be one of our top priorities going forward. Region Europe reached an EBITDA margin of 16%, the highest profitability in two years. Our efficiency enhancement program continues to deliver structural savings. Disciplined work to eliminate price point outliers in the customer base as well as to increase our field-purchased pulpwood in the vicinity of our Swedish mills produces positive effects.

Kruger Inc. announced a $6.5-million investment to implement an innovation project aimed at diversifying production at its Wayagamack Mill in Trois-Rivières. The initiative will enable the production of innovative label paper grades, reinforcing the Wayagamack Mill's leadership in Québec and North America. The new, state-of-the-art equipment will enhance the Mill's capacity for innovation, versatility and sustainability, helping to secure the future of its operations and its 285 jobs. The project was unveiled in the presence of Jean Boulet, Member for Trois-Rivières, Québec Minister of Labour and Minister Responsible for the Mauricie Region, the Abitibi-Témiscamingue Region and the Nord-du-Québec Region (on behalf of Maïté Blanchette Vézina, Minister of Natural Resources and Forests and Minister Responsible for the Bas-Saint-Laurent Region and the Gaspésie–Îles-de-la-Madeleine Region), and Sylvain Bricault, General Manager of the Kruger Wayagamack Mill. The initiative was made possible by a $2.5 million funding from the Government of Québec under the Programme Innovation Bois of the ministère des Ressources naturelles et des Forêts.

The price increase for both product ranges will be from 8 to 10% depending on format and country. This price movement is essential in order to offset the continuous increase in manufacturing and distribution costs. Lecta sales teams are at our customers' disposal to provide specific information on how the price increase will be applied by product on a country by country basis.