UPM seeks efficiency improvement in its global functions

Q2/2020 compared with Q2/2019 -Net sales decreased by 16.6% to EUR 621.5 million (745.1), mainly due lower delivery volumes -Comparable EBITDA decreased by 11.7% to EUR 74.0 million (83.8), representing 11.9% (11.2) of net sales, supported by variable and fixed costs reduction actions -Operating result of EUR 25.8 million (35.0). Q1-Q2/2020 compared with Q1-Q2/2019: -Net sales decreased by 10.9% to EUR 1,339.6 million (1,502.8), negatively impacted by price, product mix and volumes -Comparable EBITDA increased by 4.4% to EUR 165.7 million (158.8), representing 12.4% (10.6) of net sales, as lower variable costs more than offset lower selling prices and deliveries -Operating result of EUR 99.6 million (52.9), including a capital gain of EUR 32.0 million from the sale of the fine art paper business

Stora Enso has decided to invest EUR 21 million to improve the competitiveness and environmental performance of the Anjala-Ingerois production sites. Stora Enso will also invest EUR 26 million in modernising the pulp production at Nymölla in Sweden. The goal of the investment at Anjala paper- and Ingerois board production sites is to reduce the emissions and to ensure flexible use of different fuel mixtures in heat production. The project work is planned to start during the second quarter of 2021 and to be completed in the third quarter of 2023. The project at Nymölla is the second modernisation step towards making the pulp production process more competitive and sustainable for the future. The objective of the investment is to increase the annual softwood pulp production capacity from approximately 220 000 tonnes to 245 000 tonnes. The modernisation is planned to start during the second quarter of 2021 and to be completed in the third quarter of 2022. In Anjala Stora Enso produces book papers, magazine papers and improved newsprint. In Nymölla Stora Enso produces chemical pulp and woodfree uncoated paper for office use.

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.