Svenska Cellulosa Aktiebolaget SCA (publ)

Good morning and welcome to this presentation of SEA's 2026 first quarter report. With me here today, I have President and CEO Ulf Larsson and CFO Andreas Everts to go through the results and take your questions.

Over to you, Ulf. Thank you for that, Anders. And also from my side, very good morning. So despite the increasing costs and the continued challenging market for forest industrial products, we delivered 1.1 billion SEK on EBITDA level and by that an EBITDA margin of 23% for the first quarter. Segment renewable energy had a record high result during the first quarter and that was driven by electricity prices, strong deliveries and also very good market for liquid biofuels. Our new wind farm located in Jämtland started operations during the quarter and contributed to a high profitability within the segment. And our high degree of self-sufficiency in strategic areas continue to be an important factor to mitigate high costs, partly offsetting high wood, raw material and energy costs. Turning over to some financial KPIs for the first quarter, as already said, our EBITDA reached 1.1 billion SEK, and that corresponds to a 23% EBITDA margin. Our industrial return on capital employed came out on 2%, counted for the last 12 months, and the leverage was 2, while our net debt to equity reached 11.9%. So and I will now make some comments for each segment starting with the forest. Stable harvesting levels from our own forest have contributed to balanced supply of wood, raw materials to our industries during the period. We have seen a long-term trend of increasing saw log prices and they continued up also in the first quarter. However, availability of saw logs has increased towards the end of the quarter due to the big storm and that will also gradually reduce prices coming quarters. Regarding pulpwood prices, they have been rather flat for a couple of quarters and now they have started to come down. When we compare the first quarter 26 with the first quarter 25, sales were up 2%, while EBITDA was up 1%, mainly due to higher prices for wood raw materials. Over to solid wood products and in general we still have a slow underlying market for solid wood products. We continue to note signs of improvement in the repair and remodeling segment and we also see a decreased production in Scandinavia and Germany generating a better supply and demand balance especially for sprues. Stock levels remain on the high side among producers for pine, but are on normal levels for spruce, and stock levels at customers continue to be on the low side. Delivery volumes were lower in Q1 26 in comparison with the first quarter of 25, but first quarter of 25 was an exceptionally strong quarter. SEA stock level of zone goats is currently on a very balanced level. The price for solid wood products increased by a bit less than 4% in the first quarter of 26 in comparison with the fourth quarter of 25. And this development is in line with what I said when we presented the report for the fourth quarter last year. Sales were 13% lower in comparison with the same quarter last year. EBITDA margin decreased from 16 to 4% due to higher raw material costs, lower deliveries and a negative currency effect. Today's stock level of solid wood products in Sweden and Finland is described at the top left on this slide and is shown in relation to the average for the last five years. As mentioned earlier, we note that the inventory level is on the high side, especially for pine, while the SEA inventory level is balanced. As can be seen in the diagram to the bottom left, the Swedish and Finnish SOMI production has been lower than average in the beginning of 26. And in the diagram to the top right, we can note that the export price index decreased in the first quarter, SEA's prices however increased due to a better mix. Going into the next quarter, I estimate that prices in the market will increase. On the other hand, increasing freight costs will have a negative effect, resulting in a slight net price increase for SEA. Looking forward, we will probably see a stable development going into autumn with an okay balance between supply and demand. Over to PALP. When comparing the first quarter 26 with Q1 25, sales were down 16% mainly due to lower prices and the negative currency effect. EBITDA was down 88% which was also driven by lower prices and negative currency effects. During the third and fourth quarters of 25, demand for MBSK pulp was rather weak and prices were stable at low levels. Net prices on MBSK then decreased further in the first quarter of 26, very much due to the higher yearly rebates in Europe and US. At the same time, gross prices increased in Europe and US despite weak demand. In China, demand for MVSK pulp was on a normal level during the first quarter, but prices remained low. The conflict in Middle East is adding complexity in the pulp market and it also increases the cost pressure. Looking at CTMP, demand was very low in January and February and prices were at the bottom. However, during March we saw an improvement in demand and prices started to increase. Inventories of MBSK were on a high level during the first quarter. Hardwood inventories, on the contrary, were below average level. Finally, CTMP inventories have been on a rather normal level. Moving over to container board. Sales were up 4% in Q1 in comparison with the same period last year, driven by higher delivery volumes, somewhat mitigated by lower prices and a negative currency effect. EBITDA was down by 56%, driven by lower prices, negative currency effect and higher energy costs. We have noted a rather soft box demand during the start of the first quarter, but it has since then developed in a cautious positive direction. The retail business remains a positive driver and we have also seen the manufacturing industry recovering in the beginning of the year. European demand of container board has been moving sideways during the first quarter in line with the box demand. There is no new container board capacity expected to start up in the first half of 26 although we can expect a ramp up effect of new capacity started in 25 with the vast majority coming in test liner. Craft liner inventories remain above historical average in Q1 as you can see in the graph. During the first quarter, the availability of OCC has been in balance with supply and demand, which in its turn has led to stable prices in the first quarter. Prices for brown craft liner in Central Europe has during the first quarter decreased with 25 euro per tonne and for white craft liner with 20 euro per tonne. Anyway, we now feel a more solid underlying demand in combination with strong cost pressure. And due to that, we have implemented a price increase of 60 euro per tonne for brown craft liner and 40 euro per tonne for white craft liner from the 1st of April. Finally I will say some words about renewable energy and in the segment we have had a stronger quarter compared to the same period last year and maybe the strongest quarter ever and that is of course mainly due to high production and strong margins in our with SD1 jointly owned biorefinery in Gothenburg. In addition we have also had a positive impact from our new wind farm in the county of Jämtland Electricity prices were high during the quarter which had a positive impact in our wind business. Our new wind farm Fasikan was taken over in time and on budget and has been ramping up production during the quarter. SEA's land lease business is stable at 10.6 terawatt hours according to plan and this is as said before equal to 20% of installed capacity of wind power in Sweden. The market and price for solid biofuels were strong due to cold weather during the first quarter. Anyway, the positive effect was mainly offset by higher costs for raw materials compared to the same quarter last year. For liquid biofuels, we have seen continuous higher margins compared to previous quarters. The main reasons are the implementation of REDD3 across European countries, as well as strengthened EU control mechanisms regarding imported products and feedstocks. In March, we also see additional price increases due to the situation in the Middle East. We expect market volatility in renewable fuels to remain high as Europe ramps up the blending mandates both in HVO and SAF. And with that, Andreas, I hand over to you.

Thank you and good morning everybody. I'll start off with the income statement for the first quarter. Net sales decreased 8% to 4.7 billion driven by lower prices and negative currency effects. EBITDA decreased 33% to 1.1 billion, driven by lower prices, negative currency effects, and higher cost for wardrobe material. EBIT decreased to 543 millions, and financial items totaled minus 86 million, with an effective tax rate of below 20%, bringing net profit to 380 million, or 0.54 sec per share. On the next slide, we have the financial development by segment. Starting with the forest segment to the left, net sales were in line with the previous quarter at 2.5 billion. High prices for soil logs were offset by lower delivery volumes to SCA's industries. EBITDA decreased slightly to 884 million due to seasonally lower harvest from SCS on forest compared to the previous quarter, which was offset by higher prices for saw logs. In wood, prices were slightly higher compared to the previous quarter. Net sales decreased to 1.3 billion due to lower delivery volumes. EBITDA decreased to 49 million, corresponding to a margin of 4%. High costs for wood-drawn materials and lower delivery volumes were partly offset by higher prices. In pulp, net sales decreased to 1.6 billion compared to the previous quarter, while EBITDA increased to 40 million, corresponding to a margin of 3%. Lower costs for planned maintenance stops were offset by negative currency effects and lower prices. In the quarter, we took market-related downtime in our C&P mill due to high electricity prices. In container board, net sales were in line with the previous quarter at 1.7 billion. EBITDA decreased to 104 million, corresponding to a margin of 6%. Lower prices, negative currency effects, and higher energy costs were partly offset by lower costs for raw materials and higher delivery volumes. Renewable energy, with a record quarter, EBITDA increased to 206 million, corresponding to a margin of 31%. The increase was driven by high electricity prices, the new Foscon windmill and high results in liquid biofuels. On the next slide, we have the sales pitch between Q1 last year and Q1 this year. Prices decreased 4%, with lower prices in pulp and container board, partly offset by somewhat higher prices in wood. Volumes were flat, with higher volumes in container board, but lower in wood. And lastly, currency had a negative impact of 4%, bringing net sales to 4.7 billion. Moving on to the EBITDA bridge and starting to the left, price mix had a negative impact of 255 million. High cost for mainly wardrobe materials had a negative impact of 111 million. We had a positive impact from energy of 34 million and a negative impact from currency of 203 million. In total, EBITDA decreased to 1.1 billion, corresponding to a margin of 23%. Look at the cash flow. We had an operating cash flow of 569 million in the quarter. And as you know, all the operating cash flow relates mostly to working capital currency hedges and should therefore be seen together with changes in working capital. Look at the balance sheet. The value of the forest asset totaled 104 billion. Working capital decreased to 5 billion. Capital employed totaled 112 billion, net debt stood at 12 billion, and equity totaled 100 billion, corresponding to net debt to equity of 12%. And we have now almost finalized our large ongoing investment project. Thank you. With that, I'll hand back to you, Ulf.