Rottneros AB (publ)

Hello and a warm welcome to today's broadcast with Drottneros who will present their report for the third quarter of 2026. With us we have CEO Per Birbom and CFO Monika Passanen. At the end of the broadcast there will be a Q&A so if you would like to ask a question you can do so via the form found to the right of the broadcast. And with that said I will hand it over to you guys and I will be back for the Q&A. Please go ahead.

Thank you, Elliot. I wish to welcome you all to the Q3 report of Rottneros. Here with me, I have Monica Pasanen, the CFO, and myself, and I'm the CEO of the company, Per Bjurbom. First, let's start this off with some highlights for the quarter. We are reporting an EBITDA of 26 million SEK, an improvement compared to last year. We can also see that they are continuing reporting lower wood prices. That is, of course, extremely important for us because this is the biggest cost driver that we have in our company. The demands in the marketplace, especially in our niches, has been positive and stable. But all over the market has maybe been a little bit challenging. In the quarter, we have also had two things that have affected our output that has been planned. It has been the summer shut in for vacation in our rottneros mill. and we have started our maintenance stop in Valvik at the very end of September. The water is affected with some production volumes that have come out. Let's go on to the next slide. A short presentation of the Rotterdals company. We are a company specialized in producing pulps for demanding customers. and the special thing with our pulps is that they are very pure and have high strength and they are then produced on the fibers here in central Sweden that has very very good properties for long fiber pulp. The company, we have a turnover of roughly about 2.4 million SEK. We are 258 employees and a production volume of roughly 335,000 tons. And of these tons, we are placing those in our prioritized niches, like 78%. And our mills is located here in central Sweden. and we also have a bull procurement operation here in Värmland and in the Baltics and we also have a partner joint venture packaging with Arctic Paper in Kosp in Polen. Going over to the market, still the pulp markets are challenging. They are still compared to last quarter still say moving sideways. There are some positive things happening and then especially within the unbleached segment. There is a higher demand of this and the driver behind this demand is the recycled fiber in China where In China, they have produced recycled pulp importing this, and in China they have new legislation now that this pulp is more inspected than before, and this is putting down the availability of unbleached recycled pulp, and the substitute for this is unbleached pulp. The good thing for us is then when this market grows some of our competitors doing bleached pulp is turning over to unbleached pulp and the capacity utilization for normal bleached pulp goes down and this will then reduce output in the market. So that's good for us and for our unbleached pulp we are so specialized so we are not affected by more competition in the unbleached segments. If you then look over on the pricing here, it's moving slightly upwards. There are some effects on US pricing being positive, but also the situation here with the dollar that has, the Swedish krona has weakened compared to the dollar that of course have effect on our pricing is sick. There is a positive trend in this slide. It's a slight positive trend. The global producing stocks level is moving down. You see the last three months here, it's been on a slightly lower level. And hopefully this is a trend that will go on going into Q4. The production of different paper grades in Europe has declined this year compared to last year with 0.3%. Last year it was down 2.5%. And if you look on the slides here, you can see that it's a negative development in all grades except for the packaging related grades of container board and carton board. And if you then look on deliveries of chemical part, then you can see that the that has decreased year over compared to last year with 2.7%. And the big driver in the global pulp market is China. And you can see in the slide here that China has had a tough year with a decline this year. And what happened in China is important for what will be the future in the pulp market. And then if you look on the European Rottner was markets positions on so production of paper and board in Europe decreased by 0.3% this compared to last year. But if you look on our deliveries, we have been able to increase our deliveries into Europe. And for us as a local producer here in Europe, this is of course important. And we have also done our stable position in Asia and North America, but our home market is Europe. With that, I leave it over to you, Monica, and take the financials.

Thank you, Per. Yes, the highlight for the quarter is the improved earnings, as we had already in the second quarter, and lower costs. When we see on the EBITDA development, we go from minus 21 last year to plus 26. That's an improvement of 47 million. As we saw on the previous slides, there's not much happening on price and currency in the last a bit more than a year of fairly flat curve. And we also have similar volumes this year compared to last year. The big difference is really the lower cost of wood. They were at their peak in the spring of 2025 and started declining, but during the year we have seen a big improvement in our biggest cost item, which is wood. And wood is really the majority of these 51 million that you see on the slide. We do have increased fixed costs. I would say that it's not our cost base that has increased as such. We have had our savings program, which is developing well, but this is depending on when the costs come into our books for the maintenance shutdown in Vallvikmil that started in September. So it's more of a timing issue than any underlying increase. During the third quarter, we sold emission rights, which had a positive effect on other items. A small negative effect is coming from our wood procurement units as the wood prices are declining. We have lower profitability this year versus last year. Looking at the full year, It is a slightly different picture. We see here that price and currency has a negative impact. The prices were very high at the beginning of 2025. Also, the Swedish krona was weak at that stage, so the majority of this price and currency effect is for the first half year. Volume is negative. Those of you who have been following us might remember that we had a troublesome production in the beginning of the year. It was a cold winter and Valvik experienced production problems, which is the main reason for the negative development. And here you see the big positive impact of the wood prices. and also that our fixed cost base is on a lower level than we have had in previous years. Item other is minus 33 for the first nine months. A big portion comes from emission rights. We sold more emission rights in 2025 than this year, but also the prices for our byproducts have been lower this year. So those are the main reasons. But all in all, we are going from minus 63 to plus 20 for the period. This is good to see what the cost structure is. You see all the cost items here. Wood is really a big portion of our costs as well as variable costs. This is why it is important to be as efficient as possible on the wood procurement. Then going to the balance sheet. We have an improved EBITDA, but in the quarter we also had some increased working capital. Part of that is due to this maintenance shutdown as we need to build up stocks as we are not producing for almost two weeks. That is affecting the operating cash flow for the quarter. We are very diligent with our investments. So far this year, we have invested 23 million versus 102 for the same period last year. And we expect to have approximately 60-65 in investments for the full year. The investments are usually in combination with the maintenance shutdown. That is why they come in the last quarter. We have a solid equity to assets ratio around 60%. It's 61 at the end of the third quarter. So with that, I hand back to Per.