FULLTEXT DEL 5 AV 6
Årsredovisning 2025
The most material groups of CGUs containing goodwill Year ended 31 December 2025 2024 EUR million Goodwill at year end Pre-tax discount rate Goodwill at year end Pre-tax discount rate Wood Products - Southern Europe 111 11.3 % 109 11.6 % Other CGUs 60 54 Total 171 162 Goodwill testing sensitivity analysis The calculation of value in use is highly sensitive to discount rates, sales prices and costs. Sensitivity analysis are conducted to calculate the amounts by which the value assigned to the key assumption must change in order for the unit’s recoverable amount to be equal to its carrying amount for the CGUs for which a reasonably possible change in an assumption could result in an impairment. The recoverable amount for the Packaging Materials Oulu CGU amounted to EUR 1,578 million compared with the carrying amount of EUR 1,390 million. The table below summarises the amounts by which the key assumption must change in order for the unit’s recoverable amount to be equal to its carrying amount. Packaging Materials Oulu CGU Increase in the discount rate (percentage points) 0.8 % Annual decrease in the sales prices -1.1 % Annual increase in the costs 1.3 % Summary of impairments and impairment reversals per segment EUR million 2025 2024 Packaging Materials 1 307 Packaging Solutions 4 375 Biomaterials 0 1 Wood Products 12 56 Forest 1 0 Other 7 6 Total (impairment +) / (Impairment reversal -) 25 745 2.5 Net financial items Accounting principles Net financial items comprise net interest expenses, foreign exchange gains and losses and other financial income and expenses mainly arising from interest- bearing assets and liabilities. Financial income and expense EUR million 2025 2024 Net financial expense in the income statement Financial income 104 118 Financial expense -263 -329 Total -159 -211 Represented by Interest expense Interest expense from borrowings measured at amortised cost -186 -218 Interest component of the effective hedges under cash flow hedge 4 11 Interest expense on leases -20 -25 Interest capitalised 10 29 Interest income on loans and receivables measured at amortised cost 38 75 Net interest expense -153 -127 Foreign exchange gains and losses Currency derivatives -5 2 Borrowings, cash equivalents, lease liabilities and other 25 -22 Net foreign exchange gains and losses 20 -20 Other financial income 2 1 Other financial expense Financial fees -46 -43 Fair valuation losses 0 0 Impairments losses and impairment reversals on interest-bearing assets 24 -15 Net interest on net defined benefit liabilities -6 -6 Net other financial expense -26 -64 Total -159 -211 Gains and losses on derivative financial instruments are shown in note 5.4 Derivatives. In 2025, the net interest expense increased compared to previous year. The increase was mainly due to a significant reduction in interest income from deposits and cash equivalents, reflecting lower average interest rates and cash balances during the year. Although interest expenses on loans decreased due to lower average borrowings, this reduction was not enough to offset the decline in interest income. In addition, a smaller amount of interest was capitalised to qualifying assets during the year, contributing further to the higher net interest expense. The amount of interest costs capitalised during the year amounted to EUR 10 (29) million, and were mainly related to the Oulu site conversion project in Finland. The average interest rate used for capitalisation was 4.0% (4.1%). Costs on long-term debt issues capitalised as part of non-current debt amounted to EUR 6 (6) million in the statement of financial position. During the year, EUR 2 (3) million was amortised through interest expense by using the effective interest rate method. Exchange gains and losses for currency derivatives mainly relate to non- hedge accounted instruments fair valued in the income statement. In 2025, the amount reported as other financial income mainly consists of fair valuation gains, while other financial expense in the table above relates to net financial fees for unused committed credit facilities, guarantees and factoring and supply chain financing programmes. Impairments of interest-bearing assets relate to receivables originating from the sale of the Russia operations in 2022. During 2024 the Group decided to write-off the remaining receivables of EUR 15 million. In 2025, the Group r e c e i v e d E U R 2 5 m i l l i o n r e l a t e d t o t h e s e r e c e i v a b l e s , w h i c h w a s recognised as a reversal of impairments in the income statement. 2.6 Income taxes Accounting principles The Group income tax expense/benefit includes taxes of Group companies based on taxable profit/loss for the period, together with tax adjustments for previous periods and the change in deferred taxes. Tax assets and liabilities reflect uncertainty related to income taxes, if any. Deferred taxes are provided using the liability method, as measured with enacted, or substantially enacted, tax rates, to reflect the net tax effects of all temporary differences between the tax bases and the accounting bases of assets and liabilities. No deferred tax is recognised for the initial recognition of goodwill and the initial recognition of an asset or liability in a transaction which is not a business combination, and at the time of the transaction this affects neither accounting profit nor taxable profit. Deferred tax is recognised on transactions in which equal amounts of deductible and taxable temporary differences arise on initial recognition. Deferred tax assets reduce income taxes payable on taxable income in future years. The deferred tax assets, whether arising from temporary differences or from tax losses, are recognised only to the extent that it is probable that future taxable profits will be available against which the assets can be utilised. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 148 ===== SIDA 149 ===== Critical accounting estimates and judgement Tax assets and liabilities are reviewed on a regular basis and balances are adjusted appropriately. The deferred tax assets, whether arising from temporary differences or from tax losses, are recognised only to the extent that it is probable that future taxable profits will be available against which the assets can be utilised. Management considers that adequate provision has been made for future tax consequences based on the current facts, circumstances and tax laws. However, should any tax positions be challenged and not prevail, different outcomes could result and have a significant impact on the amounts reported in the consolidated financial statements. Tax expense EUR million 2025 2024 Current tax -57 -41 Deferred tax -40 -24 Total income tax -97 -65 Income tax rate reconciliation EUR million 2025 2024 Profit before tax 783 -118 Tax at statutory rates applicable to profits in the country concerned1 -147 76 Non-deductible expenses and tax exempt income2 -9 -14 Valuation of deferred tax assets 16 -44 Taxes from prior years 0 -2 Changes in tax rates and tax laws -2 0 Impairment of goodwill -4 -84 Results from associated companies 18 10 Other3 31 -8 Total income taxes -97 -65 Effective tax rate 12.4 % -55.4 % Statutory tax rate (blended) 18.8 % 64.1 % 1 Includes a EUR 27 million impact from countries with tax holidays and tax benefits in 2025 and a EUR 30 million impact from tax holidays and other tax benefits in 2024. 2 The tax value of non-deductible expenses of EUR 19 million has been netted against tax exempt income of 10 EUR million in 2025, and tax value of non-deductible expenses of EUR 18 million has been netted against tax exempt income of EUR 4 million in 2024. 3 Includes a EUR 29 million tax impact from tax-exempt divestment of Swedish forest holdings in 2025. The statutory tax rate is a weighted average of the statutory tax rates prevailing in jurisdictions where Stora Enso operates. Change in deferred taxes in 2025 EUR million Value at 1 Jan 2025 Income statement OCI Acquisitions/ disposals Translation difference Value at 31 Dec 2025 Forest assets -1,335 -87 61 191 -58 -1,228 Fixed assets -17 -76 0 -1 -11 -105 Financial instruments 5 1 -15 0 0 -9 Untaxed reserves -7 1 0 0 0 -7 Pensions and provisions -38 82 -8 0 6 42 Tax losses and tax credits carried forward 164 34 0 0 -5 193 Other deferred taxes 18 3 0 0 3 24 Total -1,211 -43 37 190 -65 -1,092 Equity hedges and net investment loans (CTA) 3 -3 Cash flow hedging 0 0 Change in deferred tax -40 34 190 -65 Assets1 205 222 Liabilities1 -1,416 -1,314 1 Deferred tax assets and liabilities have been offset in accordance with IAS 12. OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment Change in deferred taxes in 2024 EUR million Value at 1 Jan 2024 Income statement OCI Acquisitions/ disposals Translation difference Value at 31 Dec 2024 Forest assets -1,315 -117 69 -2 30 -1,335 Fixed assets -83 61 0 0 5 -17 Financial instruments -12 2 16 0 0 5 Untaxed reserves -6 -1 0 0 0 -7 Pensions and provisions 3 -33 -5 0 -3 -38 Tax losses and tax credits carried forward 112 50 0 -1 2 164 Other deferred taxes 3 17 0 0 -2 18 Total -1,298 -22 81 -3 31 -1,211 Equity hedges and net investment loans (CTA) -3 3 Change in deferred tax -24 83 -3 31 Assets1 134 205 Liabilities1 -1,433 -1,416 1 Deferred tax assets and liabilities have been offset in accordance with IAS 12. OCI = Other Comprehensive income, CTA = Cumulative Translation Adjustment Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 149 ===== SIDA 150 ===== The recognition of deferred tax assets is based on the Group’s estimations of future taxable profits available against which the Group can utilise the benefits. Non-recognised deferred tax assets on deductible temporary differences amounted to EUR 69 (126) million. There is no expiry date for these differences. Taxable temporary differences in respect of investments in subsidiaries, branches and associates and interests in joint operations, for which deferred tax liabilities have not been recognised amounted to EUR 414 (440) million. Tax losses Tax losses carried forward Recognised tax values Unrecognised tax values EUR million 2025 2024 2025 2024 2025 2024 Expiry within five years 192 193 3 7 44 41 Expiry after five years 785 565 153 108 5 6 No expiry 1,140 1,199 36 48 195 208 Total 2,117 1,957 192 163 243 256 At the end of 2025, tax losses of EUR 731 (496) million related to Finland. A deferred tax asset of EUR 146 (99) million was recognised relating to these tax losses. The Group evaluates the probability of deferred tax asset utilisation on an ongoing basis, considering both favourable and unfavourable evidence. Cumulative losses in Finland in recent years have primarily resulted from high wood costs, geopolitical uncertainty, low consumer confidence, the Group’s earlier heavy investment phase, as well as cost items considered as non- recurring in nature. Tax losses will generally expire within 10 years from the date of their creation, with the majority of the Group’s tax losses in Finland expiring in 2033–2035. Forecasts of future taxable profit in Finland indicate that it is probable the tax losses can be utilised within the expiration period. The forecasts reflect underlying improvements in operating performance, including the expected future positive impact from the Oulu mill ramp- up and the successful execution of already implemented measures to improve operational and cost efficiency. Based on the assessment of available evidence, the Group has concluded that it is probable that the tax losses and deductible temporary differences in Finland can be utilised. The Group will continue to monitor the above factors, including in particular its actual profit record, in upcoming periods. If circumstances and facts indicate that it is no longer probable that deferred tax assets will be utilised, adjustments will be made as necessary. Uncertain tax positions At balance sheet date there were on-going tax audits in certain jurisdictions. It is not expected that any significant additional taxes in excess of those already recorded for will arise as a result of these audits. Impact of OECD Pillar Two model rules The Group is within the scope of the OECD Pillar Two model rules as from 1 January 2024. The Group applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12. The impact of the legislation to the Group’s average effective tax rate is expected to vary from year to year. In 2025 current tax expense of EUR 57 million includes EUR 4 million Pillar Two top-up tax expense. 2.7 Earnings per share Accounting principles Basic earnings per share, attributable to the owners of the parent company, are calculated by dividing the net result attributable to shareholders by the weighted average number of ordinary shares in issue during the year, excluding ordinary shares held by the Group as treasury shares. Diluted earnings per share are calculated by adjusting the weighted average number of ordinary shares plus the diluted effect of all potential dilutive ordinary shares, such as shares from share-based payments. Earnings per share 2025 2024 Net result for the period attributable to the owners of the parent, EUR million 695 -136 Weighted average number of A and R shares 788,619,987 788,619,987 Weighted average number of share awards 1,076,778 1,151,874 Weighted diluted number of shares 789,696,765 789,771,861 Basic earnings per share, EUR 0.88 -0.17 Diluted earnings per share, EUR 0.88 -0.17 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 150 ===== SIDA 151 ===== 3 Employee remuneration 3.1 Personnel expenses Personnel expenses EUR million 2025 2024 Wages and salaries 925 926 Pension expenses 144 143 Share-based remuneration 4 2 Other statutory employer costs 137 135 Other voluntary costs 22 22 Total 1,232 1,228 Pension expenses EUR million 2025 2024 Defined benefit plans 6 7 Defined contribution plans 139 137 Total 144 143 The average number of employees in 2025 amounted to 18,877 (19,233). Pension costs are discussed further in note 3.3 Post-employment benefit obligations. In 2025, the expense of the share-based remuneration was EUR 4 (2) million. Share-based remuneration comprising of share awards is described in more detail in note 3.4 Employee variable compensation and equity incentive schemes. Remuneration of the Group Leadership Team and Board are described in note 3.2 Board and executive remuneration. 3.2 Board and executive remuneration Board and committee remuneration 2025 2024 EUR thousand (before taxes) Cash Value of shares1 Total4 Total Committee memberships Board members at 31 December 2025 Kari Jordan, Chair 145 89 234 227 People and Culture, Nomination2, 3 Håkan Buskhe, Vice Chair 82 50 132 129 People and Culture, Nomination2, 3 Helena Hedblom 59 34 93 90 Sustainability and Ethics Astrid Hermann 68 34 103 100 Financial and Audit Christiane Kuehne 64 34 98 95 Sustainability and Ethics Richard Nilsson 83 34 117 114 Financial and Audit, Sustainability and Ethics Reima Rytsölä 59 34 93 90 People and Culture Elena Scaltritti 59 34 93 — Sustainability and Ethics Antti Vasara 68 34 103 — Financial and Audit Former Board members Elisabeth Fleuriot (until 20 March 2025) — — — 100 Financial and Audit Antti Mäkinen (until 20 March 2024) — — — — People and Culture Total remuneration as Directors1 687 379 1,066 945 1 40% of the Board remuneration, excluding Committee remuneration, in 2025 was paid in Stora Enso R shares purchased from the market and distributed as follows: to Chair 9,526 R shares, Vice Chair 5,378 R shares, and members 3,692 R shares each. The Company has no formal policy requirements for the Board members to retain shares received as remuneration. 2 Stora Enso’s Shareholders’ Nomination Board has been appointed by the AGM in 2016 to exist until otherwise decided. The Shareholders’ Nomination Board according to its Charter as approved by the AGM comprises of four members: the Chair and Vice Chair of the Board of Directors, as well as two members appointed by the two largest shareholders (one each) as of 31 August each year. No separate remuneration is paid to members of the Nomination Board. 3 Marcus Wallenberg, appointed by FAM AB, is Chair of the Nomination Board. Matts Rosenberg (Jouko Karvinen until 18 December 2025) is the member of the Shareholders’ Nomination Board appointed by Solidium Oy. Kari Jordan and Håkan Buskhe were appointed as members of the Shareholders’ Nomination Board in their roles as Chair and Vice Chair of the Board of Directors. 4 The Company additionally pays the transfer tax for share purchases for each member, in line with AGM decision, which amount is considered also taxable income for each member. Shareholders at the Annual General Meeting (AGM) have established a Shareholders’ Nomination Board to exist until otherwise decided and to annually prepare proposals for the AGM’s approval concerning the number of members of the Board of Directors, the Chair, Vice Chair and other members of the Board, as well as the remuneration for the Chair, Vice Chair and members of the Board and its committees. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 151 ===== SIDA 152 ===== Board share interests at 31 December 2025 Shares held (direct and indirect ownership) A R Board members at 31 December 2025 Kari Jordan, Chair 25,344 Håkan Buskhe, Vice Chair 21,290 Helena Hedblom 12,686 Astrid Hermann 9,169 Christiane Kuehne 23,759 Richard Nilsson¹ 127 36,537 Reima Rytsölä 6,330 Elena Scaltritti 3,692 Antti Vasara 3,692 Total shares held 127 142,499 1 Spouse holds 127 of A shares and 236 of R shares. The following Board members also served in 2025 Shares held when Board membership ended (direct and indirect) Effective date of Board membership ending Elisabeth Fleuriot 35,506 20 March 2025 Group Leadership Team (GLT) remuneration and share interests The following table includes the remuneration earned by GLT members during the year, including those shares with performance conditions that have ended and are due to vest in the coming year. The Company recommends and expects the CEO and GLT members to hold Stora Enso shares at a value corresponding to at least one annual base salary. Stora Enso shares received as remuneration are therefore recommended not to be sold until this level has been reached. The aggregate cost of earned remuneration for the GLT in 2025 amounted to EUR 11 (11) million. The total number of GLT members was 12 (11) at the year end in 2025. In accordance with their respective pension arrangements, GLT members may retire at sixty-five years of age with pensions consistent with local practices in their respective home countries. Employment contracts provide for six months’ notice prior to termination, with severance compensation of twelve months basic salary if the termination is at the Company’s request. The outcome of the financial targets relating to the Short-term incentive programmes for the performance year 2025, and Long-term incentive programmes for the performance years 2023 to 2025 were reviewed and confirmed by the People and Culture Committee and approved by the Board of Directors in February 2026. Note 3.4 Employee variable compensation and equity incentive schemes includes details of incentive schemes and share opportunity programmes for the management and staff of Stora Enso. Group Leadership Team remuneration 2025 2024 EUR thousand CEO Others2, 5 GLT Total CEO Others GLT Total Remuneration1, 4 Annual salary 1,013 4,348 5,361 1,000 3,476 4,476 Local housing (actual costs) — 4 4 — 2 2 Other benefits 2 246 248 — 940 940 Termination benefits — 457 457 — — — Short Term Incentive programme3 254 1,775 2,029 640 2,001 2,641 Long Term Incentive programme3 990 700 1,690 — 1,621 1,621 2,259 7,530 9,789 1,640 8,040 9,680 Pension costs Mandatory plans 129 681 810 139 809 948 Stora Enso voluntary plans — 764 764 — 636 636 129 1,445 1,574 139 1,445 1,584 Total compensation 2,388 8,975 11,363 1,779 9,485 11,264 1 The Finnish Corporate Governance code requires companies to report remuneration that is paid or due, and due to this the figures presented in the above table do not directly reconcile with the amounts recognised as personnel expenses in the Income statement as presented in the below table Group Leadership Team remuneration in Income statement. 2 Includes earnings related to Pasi Kyckling until 13 January 2025, Niclas Rosenlew as of 13 January 2025, Andreas Birmoser and Markku Luoto as of 1 July 2025 and Per Lyrvall until 31 March 2025.. 3 Related to amounts paid in 2025 and amounts due at year end, which will be paid in 2026. LTI value is calculated using the 30 December 2025 closing price of EUR 10.71 and forecasted LTI outcome as after Q3/2025. The final value of the vested shares will be approved after February 2026 and depend on the share price on vesting date 18 March 2026. Respectively, 2024 related numbers have been updated to include STI and LTI incentives paid in 2024 and to be paid in 2025. 4 Remuneration for executives is disclosed only for the period during which they were GLT members. 5 Remuneration of GLT members decreased in 2025 compared to 2024 mainly due to the performance outcome of variable pay programmes. The average number of GLT members during 2025 was 10.25. Group Leadership Team remuneration in Income statement 2025 2024 EUR thousand CEO Others GLT Total CEO Others GLT Total Salaries and other short-term employee benefits 1,229 5,478 6,707 1,640 5,605 7,245 Long Term Incentive programme1 1,228 639 1,867 146 632 778 Post-employment benefits2 129 1,445 1,574 139 1,445 1,584 Total recognised in Income statement 2,586 7,562 10,148 1,925 7,682 9,607 1 The costs of long-term incentive (LTI) programmes are recognised as costs over the three year vesting period based on the share price at grant date and the estimate of equity instruments that will eventually vest. 2 Includes statutory and supplementary pension contributions. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 152 ===== SIDA 153 ===== Executives other than CEO Short term incentive (STI) programmes for management In 2025, GLT members had STI programmes with up to a maximum 80% of their annual fixed salary, payable the year following the performance period. 100% of the STI for 2025 was based on Group and segment financial measures. Long-term incentive (LTI) programmes for management The 2023 and 2024 programmes feature performance metrics with one- year performance periods, which are accumulated after three years, as well as metrics with three-year performance periods. The 2025 programme features performance metrics with three-year performance periods. All three programmes will be settled in a single portion after three years, with the absolute maximum vesting level being 100% of the number of shares granted. The 2023 programme pertains to the performance period 2023–2025, the 2024 programme to the performance period 2024– 2026, and the 2025 programme to the performance period 2025–2027. The opportunity under these programmes is in Performance Shares, with shares vesting in accordance with performance criteria proposed by the People and Culture Committee and approved by the Board of Directors. During the year, the 2025 programme was launched, under which GLT members (as of the year-end) can potentially receive a value corresponding to 577,060 shares before taxes, assuming the maximum vesting level during the three-year vesting period (2025–2027) is achieved. The total number of shares actually transferred will be lower, as a portion corresponding to the tax obligation will be withheld to cover income tax. The fair value of employee services received in exchange for share-based compensation payments is accounted for in a manner consistent with the method of settlement, which is either cash or equity settled as described in more detail in note 3.4 Employee variable compensation and equity incentive schemes. For the equity-settled portion, it is possible that the actual cash cost does not align with the accounting charges, as the share price is not updated at the time of the vesting. The figures in the Group Leadership Team Remuneration table refer to individuals who were executives at year-end or during part of the year. At the end of the year, the performance period for the 2023 programme ended, and will be settled in one portion after three years, in March 2026, depending on Earnings Per Share (EPS) for the Stora Enso Group, Relative Total Shareholder Return (TSR) and ESG metrics (emission reduction and diversity) . The outcome of the Performance Share programme will be confirmed in the beginning of March 2026, once the relative TSR outcome is confirmed. The maximum number of shares due to executives (GLT members at year-end) from programmes that ended during 2025 amounted to 161,880 shares. The total number of shares actually transferred will be based on the confirmed outcome and a portion corresponding to the tax obligation will be withheld to cover income tax. CEO President and Chief Executive Officer Hans Sohlström has been employed by Stora Enso and assumed the position of CEO on 18 September 2023. He has a notice period of six months, with a severance payment of twelve months’ salary upon termination by the Company, but no contractual payments in the event of change of control. The CEO’s pension plan and retirement age are in accordance with the Finnish statutory TyEL plan. The CEO has no supplementary pension plan. Short-term incentive (STI) programme for CEO The maximum STI earning for the CEO is 100% of the fixed annual salary until September 2025 and 150% as of October 2025. The CEO STI plan for the period Q4/2024– Q3/2025 resulted in an outcome of 16% and was paid in 2025. For the last quarter 2025, the CEO STI programme followed the Group STI plan structure pro-rated for the three-month earning period. As of 2026, the CEO’s STI programme is fully aligned with the standard annual STI cycle. Long-term incentive (LTI) programme for CEO As of 18 September 2023, a two-year CEO Performance Plan was initiated, with a vesting date in Q4/2025. The plan resulted in an outcome of 60% and a gross award of 101,652 R shares was delivered in 2025. The total number of shares actually transferred will be lower, as a portion corresponding to the tax obligation will be withheld to cover income tax. The performance targets related to the balance sheet, capital expenditure, strategy, and sustainability. The Board decided to include the CEO on the ongoing LTI 2024 and LTI 2025 programmes. The CEO was granted 164,060 performance shares and 52,080 restricted shares from LTI 2024-2026 programme, and 164,060 performance shares from LTI 2025-2027. Group Leadership Team share interests R shares held1 Shares due 20262 Performance share opportunity 2027–20283 Restricted share opportunity 2027–20283 Total, Serving Officers 338,070 33,758 860,162 98,080 1 Direct and indirect ownership. None of the GLT members holds A shares. 2 Shares due to GLT member are gross of taxes for the LTI programmes with performance periods that ended in 2025 and are due to be paid 2026. The Performance Share programme value is based on Q3/2025 forecasted outcome and final value will be available after February 2026. Some GLT members hold restricted shares in the Restricted Shares programme that ended in 2025 and those shares are due to be paid 2026. 3 Potential shares to GLT members are gross of taxes for LTI programmes with performance periods that end in 2026-2027 and are due to be paid 2027-2028. 3.3 Post-employment benefit obligations Accounting principles Employee benefits The Group operates a number of defined benefit and contribution plans throughout the world, the assets of which are generally held in separate trustee administered funds. Such pension and post-retirement plans are generally funded by payments from employees and by the relevant Group companies, taking into account the recommendations of independent qualified actuaries. Employer contributions to the defined contribution pension plans are charged to the consolidated income statement in the year they relate to. For defined benefit plans, accounting values are assessed using the projected unit credit method. Under this method, the cost of providing pensions is charged to the consolidated income statement to spread the regular cost over the service lives of employees in accordance with the advice of qualified actuaries who carry out a full valuation of the plan every year. The pension obligation is measured as the present value of the estimated future cash outflows using interest rates of highly rated corporate bonds or government securities, as appropriate, that match the currency and expected duration of the related liability. The Group recognises all actuarial gains and losses arising from defined benefit plans directly in equity, as disclosed in its consolidated statement of comprehensive income. Past service costs are identified at the time of any amendments to the plans and are recognised immediately in the consolidated income statement regardless of vesting requirements. The full liability for all plan deficits is recorded in the Group’s consolidated statement of financial position. Critical accounting estimates and judgement The determination of the Group pension obligation and expense is subject to the selection of certain assumptions used by actuaries in calculating such amounts, including, among others, the discount rate, the annual rate of increase in future compensation levels and estimated lifespans. Amounts charged in the income statement are determined by independent actuaries; however, where actual results differ from the initial estimates, together with the effect of any change in assumptions or other factors, these differences are recognised directly in equity, as disclosed in the statement of comprehensive income. The Group defines interest risk and life expectancy as actuarial risks associated with defined benefit plans. Interest risk: the obligations are assessed using market rates of high-quality corporate or government bonds to discount the obligations and are therefore subject to any volatility in the movement of the market rate. The net interest income or expense recognised in profit and loss are also calculated using the market rate of interest. Life expectancy: In the event that members live longer than assumed, the obligations may be understated originally and a deficit may emerge if funding has not adequately provided for the increased life expectancy. The Group’s pension expenses amounted to EUR 144 (143) million in 2025, as shown in note 3.1 Personnel expenses. Pensions are classified as defined contribution plans and defined benefit plans. The majority of the Group’s pensions plans are defined contribution plans for which the charge amounted to EUR 139 (137) million. The aim of the Group is to provide defined contribution plans as its post-employment benefits. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 153 ===== SIDA 154 ===== Net defined benefit obligation reconciliation Defined benefit obligation (+) Fair value of plan assets (-) Net defined benefit obligation / (asset) EUR million 2025 2024 2025 2024 2025 2024 At 1 January 735 775 -574 -578 161 197 Current service cost 8 7 — — 8 7 Past service cost 22 — -25 — -2 — Settlements — -1 — 1 — — Interest expense (+) income (-) 26 29 -20 -23 6 6 Total included in income statement 57 35 -45 -22 11 12 Actuarial changes in demographic assumptions 1 -1 — — 1 -1 Actuarial changes in financial assumptions -32 -3 — — -32 -3 Actuarial changes from experience adjustments -8 -7 — — -8 -7 Return on plan assets1 — — 10 -16 10 -16 Asset ceiling impact1 — — -6 4 -6 4 Total remeasurement gains (-) / losses (+) included in OCI -40 -11 4 -12 -36 -23 Benefit payments -55 -58 44 47 -10 -11 Employer contributions and refunds — — -3 -13 -3 -13 Translation difference 12 -6 -11 4 1 -2 Other -1 — — — -1 — At 31 December 707 735 -586 -574 122 161 1 Excluding amounts included in interest expense (+) income (-). In 2026, contributions of EUR 4 (4) million are expected to be paid to Group’s defined benefit plans. Significant actuarial assumptions used in the valuation of defined benefit obligations Finland Germany Sweden 2025 2024 2025 2024 2025 2024 Discount rate % 3.6 3.2 4.0 3.4 3.6 3.3 Future salary increase % 3.0 3.0 2.5 2.5 2.9 2.9 Future pension increase % 2.2 2.2 2.0 2.0 2.0 2.0 Duration of pension plans 8.0 8.0 10.6 9.8 13.0 13.8 Sensitivity of the defined benefit obligation Impact on defined benefit obligation Change in assumption Increase in assumption Decrease in assumption Discount rate 0.50 % Decrease by 5.5% Increase by 6.1% Salary growth rate 0.50 % Increase by 1.1% Decrease by 1.0% Pension growth rate 0.50 % Increase by 4.9% Decrease by 4.5% Life expectancy 1 year Increase by 4.7% Decrease by 4.7% Defined benefit plan summary by country as at 31 December 2025 EUR million Finland Germany Sweden Other Total Present value of funded obligations 133 2 252 148 534 Present value of unfunded obligations — 139 16 18 173 Defined benefit obligations (DBO) 133 141 268 165 707 Fair value of plan assets -132 -30 -281 -142 -586 Net obligation in the balance sheet 1 111 -14 24 122 Represented by Defined benefit pension plans 1 111 -14 6 105 Other post-employment benefits — — — 17 17 Net obligation in the balance sheet 1 111 -14 24 122 Defined benefit plan summary by country as at 31 December 2024 EUR million Finland Germany Sweden Other Total Present value of funded obligations 150 6 261 156 574 Present value of unfunded obligations — 122 17 22 160 Defined benefit obligations (DBO) 150 128 278 178 735 Fair value of plan assets -149 -5 -270 -149 -574 Net obligation in the balance sheet 1 123 7 29 161 Represented by Defined benefit pension plans 1 123 7 8 140 Other post-employment benefits — — — 21 21 Net obligation in the balance sheet 1 123 7 29 161 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 154 ===== SIDA 155 ===== Finland In Finland, the employees are entitled to a statutory pensions benefit determined by the Employee Pension Act (TyEL). These benefits are defined as contribution benefits. They are insured with an insurance company and provide coverage for old age, disability, and death. The charge in the income statement from contribution benefits is EUR 64 (63) million. In addition, the Group has additional defined benefit plans which resulted in a charge of EUR 0 (0) million excluding finance costs. Defined benefit plans and plan assets are managed by insurance companies. Details of the exact structure and investment strategy surrounding plan assets are not available to participating employers, as the assets actually belong to the insurance companies themselves. The assets are managed in accordance with EU regulations, and also national requirements, under which there is an obligation to pay guaranteed benefits irrespective of market conditions. Germany The German pension costs amounted to EUR 4 (2) million, of which EUR 1 (2) million related to defined contribution plans and EUR 2 (0) million to defined benefits excluding finance costs. The net defined benefit obligation amounted to EUR 111 (123) million. Defined benefit pension plans are mainly accounted for in the statement of financial position through book reserves with some minor plans using insurance companies or independent trustees. Retirement benefits are based on the years worked and salaries received during the pensionable service, and the commencement of pension payments are linked to the national pension scheme’s retirement age. Pensions are paid directly by the companies themselves to their former employees. The security for the pensioners is provided by the legal requirement that the book reserves held in the statement of financial position are insured up to certain limits. Sweden In Sweden, all blue-collar staff and part of the white-collar staff are covered by defined contribution plans, with a charge of EUR 48 (48) million in the income statement. Defined benefit plans are covering the remaining white- collar staff and resulted in a charge of EUR 2 (3) million, excluding finance costs. The net defined benefit asset amounted to EUR 14 (net obligation EUR 7) million. The decrease in the net obligation during the year is explained mostly by changes in actuarial assumptions, especially from a slightly higher in discount rate. Stora Enso has undertaken to pay all local legal pension obligations for the main ITP scheme to the foundation, so the remaining obligation relates to other small plans. The long-term investment return target for the foundation is a 3% real return after tax. Other countries The net defined benefit obligation in the remaining countries amounted to EUR 24 (EUR 29) million. The change in net obligation arose mainly from changes in actuarial assumptions. Plan assets 2025 2024 EUR million Quoted Unquoted Total % of total Quoted Unquoted Total % of total Equity instruments 86 — 86 15% 90 6 96 17% Debt instruments 43 31 75 13% 67 29 96 17% Property 12 62 74 13% — 61 61 11% Cash 7 — 7 1% 15 — 15 3% Assets held by insurance companies — 279 279 48% — 221 221 39% Others 10 54 64 11% 0 85 85 15% Total pension fund assets 158 427 586 100% 172 402 574 100% Plan assets do not include any real estate or other assets occupied by the group or the Company's own financial instruments. The two main financial factors affecting Group’s pension obligation are changes in interest rates and inflation expectations. The aim of asset investment allocations is to neutralise these effects, secure solvency for benefit payments and maximise returns. 3.4 Employee variable compensation and equity incentive schemes Accounting principles Share awards The costs of all employee-related share-based payments are charged to the consolidated income statement as personnel expenses over the vesting period. All share-based payment transactions are classified as equity-settled share awards. The equity-settled share awards (net of tax), are measured at the fair value of the equity instruments on the grant date, and are adjusted for the present value of expected dividends. The fair value of the equity-settled share-based payments determined on the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of equity instruments that will eventually vest, with a corresponding increase in equity. Short term incentive (STI) programmes Salaries for senior management are negotiated individually. Stora Enso has incentive plans that take into account the performance, development and results of both business units and individual employees. This performance- based variable compensation system is based on profitability as well as on attaining key business targets. Group Executives, as well as business area and business unit management have STI programmes in which the payment is calculated as a percentage of the annual base salary with a maximum level ranging from 35% to 80%. Middle management and employees participate in an STI programme with a maximum incentive level from 7% to 25%. All incentives are discretionary. These performance-based programmes cover most employees globally, where allowed by local practice and regulations. For the performance year 2025, the annual incentive programmes were based on financial measures and safety targets. The financial success metrics in the STI programme 2025 are adjusted EBIT and operating working capital. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 155 ===== SIDA 156 ===== Long term incentive (LTI) programmes Since 2005, new share-based programmes for executives have been launched every year. The 2023 and 2024 programmes feature a performance metric with one-year performance periods, which are accumulated after three years, as well as performance metrics with three-years performance periods. The 2025 programme feature a performance metric with three years performance period. All outstanding programmes will be settled in a single portion after three years. For the 2023 plan, three quarters (75%) of the opportunity under the programmes are in performance shares, where shares will vest in accordance with performance criteria proposed by the People and Culture Committee and approved by the Board of Directors. The financial performance metrics for the 2023, 2024, and 2025 programme are 3-year Earnings Per Share (EPS) for the Stora Enso Group and Absolute Total Shareholder Return (relative TSR in 2023), which also feature ESG metrics (emissions reduction and diversity). One quarter (25%) of the opportunity under the programme are in Restricted Shares, for which vesting is subject to continued employment. For the 2024 and 2025 plans, Restricted Shares have been awarded only in exceptional cases. Members of the GLT have been awarded mainly performance shares. Outstanding restricted and performance share opportunities before taxes are shown in the table below. The total number of shares actually transferred will be less than that shown below because a portion of shares corresponding to employees’ tax obligation will be withheld to cover income tax. Share awards at 31 December 2025 Outstanding restricted and performance share awards at year end Number of shares 2026 2027 2028 Total 2023 programme 668,030 668,030 2024 programme 1,266,470 1,266,470 2025 programme 1,712,880 1,712,880 Total 668,030 1,266,470 1,712,880 3,647,380 The costs of the Stora Enso share-based programmes are recognised as costs over the vesting period, which is the period between the grant and vesting. The total impact of share-based programmes in the income statement amounted to an expense of EUR 4 (EUR 2) million, all of which were related to restricted and performance share awards. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 156 ===== SIDA 157 ===== 4 Operating capital 4.1 Intangible assets, property, plant and equipment and right-of-use assets Accounting principles Goodwill Goodwill represents future economic benefits arising from assets that are not capable of being individually identified and separately recognised by the Group on an acquisition. Goodwill is computed as the excess of the cost of an acquisition over the fair value of the Group’s share of the fair value of net assets of the acquired subsidiary at the acquisition date and is allocated to those groups of cash generating units expected to benefit from the acquisition. Goodwill arising on the acquisition of non-euro foreign entities is treated as an asset of the foreign entity denominated in the local currency and translated at the closing rate. Goodwill is not amortised but tested for impairment on an annual basis, or more frequently if there is an indication of impairment. Other intangible assets Intangible assets are stated at their historical cost and amortised on a straight-line basis over their expected useful lives, which usually varies from 3 to 10 years and up to 20 years for patents. An adjustment is made for any impairment. Intangible items acquired must be recognised as assets separately from goodwill if they meet the definition of an asset, are either separable or arise from contractual or other legal rights, and their fair value can be measured reliably. The cost of development or acquisition of new software clearly associated with an identifiable asset that will be controlled by the Group and has a probable benefit exceeding its cost beyond one year is recognised as an intangible asset and will be amortised over the expected useful life of the software between 3 to 10 years. Intangible assets recognised separately from goodwill in acquisitions consist of marketing and customer-related or contract and technology-based intangible assets. Typical marketing and customer-related assets include trademarks, trade names, service marks, collective marks, certification marks, customer lists, order or production backlogs, customer contracts and the related customer relationships. Contract and technology-based intangible assets are normally licensing and royalty agreements or patented technology and trade secrets, such as confidential formulas, processes or recipes. The initial fair value of customer contracts and related relationships is derived from expected retention rates and cash flow over the customers’ remaining estimated lifetime using excess earnings method. The initial fair value of trademarks is derived from a discounted cash flow analysis using the relief from royalty method. Property, plant and equipment Property, plant and equipment acquired by Group companies are stated at their historical cost, which are adjusted where appropriate by asset retirement costs. Assets arising on the acquisition of a new subsidiary are stated at fair value at the date of acquisition. Depreciation is computed on a straight-line basis and adjusted for any impairment and disposal charges. The carrying amount represents the cost deducted by received grants and subsidies and less the accumulated depreciation and any impairment charges. Interest costs on borrowings to finance the construction of assets are capitalised as part of the cost during the construction period when the requirements are fulfilled. Assets are considered to be ready when they are capable of operating in the manner intended by management, which indicates that certain pre-determined physical and technical conditions are met. In assessing readiness, factors such as production quality and stability, achievement of certain technical milestones, and fulfilment of regulatory requirements may be considered. Land and water areas are not depreciated, as these are deemed to have an indefinite life, but otherwise depreciation is based on the following expected useful lives: Asset class Depreciation years Buildings, industrial 10-50 Buildings, office & residential 20-50 Groundwood mills 15-20 Hydroelectric power 40 Paper, board and pulp mills, main machines 20-30 Heavy machinery 10-20 Converting factories 10-15 Sawmills 10-15 Computers 3-5 Vehicles 5 Office equipment 3-5 Railway, harbours 20-25 Forest roads 10-15 Roads, fields, bridges 15-20 Ordinary maintenance and repair charges are expensed when incurred, but the costs of significant renewals and improvements are capitalised and depreciated over the remaining useful lives of the related assets. Retirements, sales and disposals of property, plant and equipment are recorded by deducting the cost and accumulated depreciation from the accounting records with any resulting terminal depreciation adjustments reflected in impairment in the consolidated income statement. Capital gains are shown in other operating income. Spare parts are accounted for as property, plant and equipment if they are major and used over more than one period, or if they are used only in connection with an item of property, plant and equipment. In all other cases, spare parts are carried as part of the inventory and expensed when consumed. Right-of-use (ROU) assets At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. ROU assets are initially measured at cost, which comprises the initial amount of the lease liability adjusted mainly for lease payments made at or before the commencement date. The Group allocates the consideration in the contract to each lease component and will separate non-lease components if these are identifiable. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The ROU assets are subsequently depreciated using the straight line method from the commencement date to the earlier of the end of the lease term or the end of the useful life of the ROU asset. In addition, the ROU asset is adjusted for certain remeasurements of the lease liability. The Group has elected not to recognise ROU assets for short-term leases that have a lease term of 12 months or less and leases of low value assets. Leases of low value assets mainly include IT and office equipment, certain vehicles and machinery and other low value items. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term, see note 2.3 Other operating income and expenses, for more information. Critical accounting estimates and judgement When assessing the lease term and if an extension or renewal options are included or not, the Group considers all relevant facts, circumstances and incentives that might have an impact on the assessment. Options to extend or renew the lease are included in the lease term only if it is reasonably certain that Stora Enso will exercise the option. The Group will do a reassessment, for example upon changes in circumstances, receiving new information or an occurrence of a significant event that is within the control of the lessee and might have an impact on the assessment. For more information about critical accounting estimates and judgement related to valuation of intangible assets, property plant and equipment, right-of-use assets and goodwill, please see note 2.4 Depreciation, amortisation and impairments. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 157 ===== SIDA 158 ===== Intangible assets EUR million Computer software Customer relationships and trademarks Other intangible assets Assets in progress Goodwill Total Acquisition cost At 1 January 2024 241 206 209 36 848 1,539 Translation difference 0 0 2 0 -1 1 Reclassifications 5 0 2 -13 0 -6 Additions 9 0 15 19 0 43 Disposals1 -4 0 -7 0 0 -10 At 31 December 2024 251 206 222 42 847 1,567 Translation difference -2 0 -5 0 2 -5 Reclassifications 12 0 3 -22 0 -7 Additions 7 0 2 7 5 21 Disposals1 -7 0 -14 0 0 -21 At 31 December 2025 262 206 207 27 854 1,555 Accumulated amortisation and impairments At 1 January 2024 206 16 162 3 343 730 Translation difference 0 0 2 0 1 3 Reclassifications -6 0 0 0 0 -6 Disposals1 -3 0 -6 0 0 -9 Amortisation 14 16 7 0 0 37 Impairments 1 14 16 0 342 372 At 31 December 2024 212 45 181 3 685 1,127 Translation difference -1 0 -4 0 -2 -7 Reclassifications 0 0 0 0 0 0 Disposals1 -8 0 -13 0 0 -21 Amortisation 13 15 6 0 0 33 Impairments 0 0 2 0 0 2 At 31 December 2025 216 60 172 3 683 1,135 Net Book Value at 31 December 2025 46 146 35 24 171 421 Net Book Value at 31 December 2024 39 160 40 38 162 440 1 Company disposals are included in Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. Included in Customer relationships and trademarks, as part of the 2023 acquisition of De Jong Packaging Group, are customer-related intangibles purchased with a carrying amount of EUR 123 million and a remaining amortisation period of 12 years, as well as marketing- related intangibles of EUR 22 million with remaining amortisation periods ranging from 2 to 17 years. Property, plant and equipment EUR million Land and water Buildings and structures Plant and equipment Other tangible assets Assets in progress Total Acquisition cost At 1 January 2024 109 3,087 11,089 410 745 15,440 Translation difference 0 18 -29 -4 1 -14 Reclassifications 195 -10 -56 1 -129 1 Reclassifications to biological assets 0 -3 -1 0 0 -4 Additions 1 25 291 2 555 874 Disposals1 -199 -7 -79 -8 0 -292 At 31 December 2024 107 3,111 11,215 400 1,172 16,004 Translation difference 1 -63 -16 5 0 -73 Reclassifications 0 147 872 20 -1,032 7 Reclassifications to biological assets 0 -3 -1 0 0 -4 Additions 14 59 451 9 167 700 Disposals1 -2 -38 -307 -6 0 -353 At 31 December 2025 120 3,212 12,215 428 307 16,281 Accumulated depreciation and impairment At 1 January 2024 2 1,976 8,246 345 17 10,586 Translation difference 0 -5 -41 -3 0 -48 Reclassifications 195 -23 -164 -4 -1 2 Additions 0 1 0 0 0 1 Disposals1 -198 -20 -72 -8 0 -298 Depreciation 0 64 334 9 0 408 Impairments and reversals 12 77 253 3 2 347 At 31 December 2024 11 2,071 8,557 342 18 10,998 Translation difference 0 -15 29 4 -1 17 Reclassifications 0 0 0 0 0 1 Additions 0 0 0 0 0 0 Disposals1 0 -52 -317 -6 0 -376 Depreciation 0 60 333 10 0 402 Impairments and reversals -1 0 13 0 0 12 At 31 December 2025 10 2,064 8,614 349 17 11,055 Net Book Value at 31 December 2025 110 1,148 3,600 79 289 5,227 Net Book Value at 31 December 2024 96 1,039 2,659 58 1,154 5,006 1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 158 ===== SIDA 159 ===== Right-of-use assets EUR million Land and water Forest land Buildings and structures Plant and equipment and other Total Acquisition cost At 1 January 2024 101 233 268 111 712 Translation difference 3 9 -1 -2 9 Reclassifications to biological assets 0 -18 0 0 -18 Additions 5 5 53 13 76 Disposals1 -1 0 -10 -14 -25 Other changes -4 -7 7 -1 -4 At 31 December 2024 104 222 317 107 750 Translation difference -6 -19 0 -2 -27 Reclassifications to biological assets 0 -16 0 0 -16 Additions 1 6 13 25 45 Disposals1 0 -10 -8 -20 -39 Other changes 1 -34 0 2 -30 At 31 December 2025 99 150 321 113 683 Accumulated depreciation and impairment At 1 January 2024 40 24 66 61 192 Translation difference 2 1 -1 -1 1 Disposals1 -1 0 -9 -15 -24 Depreciation 2 3 31 19 56 Impairment 10 0 16 0 26 At 31 December 2024 53 28 104 65 250 Translation difference -4 -2 0 -1 -7 Disposals1 0 -10 -8 -20 -39 Depreciation 2 -1 27 18 46 Impairment 0 0 3 8 11 At 31 December 2025 51 15 126 69 261 Net Book Value at 31 December 2025 48 134 195 44 422 Net Book Value at 31 December 2024 51 194 212 43 499 1 Company disposals are included in the Disposals line. Company disposals and classification of assets as held for sale are discussed in more detail in note 6.1 Acquisitions, disposals and assets held for sale. Stora Enso’s most material right-of-use assets capitalised consist of land areas used in forestry and industrial operations, various machinery and equipment leases including operative machinery and logistic equipment, as well as properties including offices, warehouses and other operative properties. Some of the leases contain renewal options and extension options that are considered in the lease term if the Group is reasonably certain to exercise the option. See notes 5.3 Interest-bearing assets and liabilities for more details about lease liabilities and 2.3 Other operating income and expenses for details about lease expenses included in the income statement. Intangible assets and property, plant and equipment, and right-of-use asset additions The total capital expenditure excluding investments in biological assets for the year amounted to EUR 678 (1,009) million. Details of the ongoing projects and future plans are discussed in more detail in the Report of the Board of Directors. 4.2 Forest assets Accounting principles Stora Enso’s forest assets are defined as standing growing trees, classified as biological assets, and related forest land. Biological assets consist of standing trees to be used as raw material for pulp and mechanical wood production and as biofuels. Forest asset valuation is based on continuous operations and sustainable forest management, while also taking into account environmental restrictions and other reservations. Biological assets are recognised and valued in accordance with IAS 41 Agriculture at fair value, while forest land assets are recognised in accordance with IAS 16 Property, plant and equipment. Leased forest land assets are presented as part of right-of-use assets in note 4.1 Intangible assets, property, plant and equipment and right-of-use assets. Nordic and plantation forest assets are classified as different asset classes due to their differing nature, usage, and characteristics. The main difference is the short-term growing cycle of 6–12 years in plantations versus the long-term growing cycle of 60–100 years in Nordic forests. There are also differences in regeneration methods, forest management, and the use of assets for other purposes. Nordic forest assets include holdings in Sweden and Finland, while plantation forest assets include holdings in China, Brazil and Uruguay. Accounting policies for the different classes of forest assets are presented separately below. Additionally, the Group has minor forest asset holdings in Estonia and Romania through the associate company Tornator. The Group holds forest assets in its own subsidiaries in Sweden and China as well as in joint operations in Brazil and Uruguay, and in associate companies in Finland and Sweden. Stora Enso also ensures that the Group’s share of the valuation of forest holdings in associated companies and joint operations is consistent with Group accounting policies. At harvesting, biological assets are transferred to inventory. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 159 ===== SIDA 160 ===== Nordic forest assets Forest assets in Sweden and Finland are recognised at fair value and valued using a market approach method based on forest market transactions in the areas where Stora Enso’s forests are located. Stora Enso’s forest assets create value by securing wood supply, increasing long-term yield, optimising land use and securing financial flexibility. They play an important role in mitigating climate change impacts, as growing trees absorb CO2. The forest lands offer additional opportunities for future value streams, such as wind power. The total forest assets value is calculated with verified inventory data and regional standing stock prices, considering, among others: • regional market transaction data based on the geographical locations of forest assets, • standing stock prices by forest cubic metre (m³ fo) combined from traded forest estates and • regional standing stock inventory. Information relating to forest asset transactions is available from market data suppliers. Stora Enso applies three-year (36-month) weighted average market transaction prices which are considered to include a sufficient number of transactions and are estimated to represent market conditions at the reporting date. The market transaction information is viewed as market-corroborated inputs. Certain adjustments are made to refine the market-corroborated inputs using unobservable inputs; therefore, inputs are categorised based on Level 3 of the fair value hierarchy. The total value of the forest assets in the Nordics is allocated across biological assets and forest land. The allocation of the combined fair value of forest assets is based on the income approach where the present values of expected net cash flows for both biological assets and forest land are calculated separately. The discount rate is determined as the rate at which the valuation, based on market transaction prices, matches the combined cash flows of total forest assets for biological assets and forest land. The discount rate is estimated to be the same for biological assets and forest land as the nature and timing of the cash flows are similar. Biological assets are measured at fair value in accordance with IAS 41. The fair value is based on the income approach and the discounted cash flow method, whereby the fair value of the biological assets is calculated using cash flows from continuous operations, taking into account the growth potential of one cycle. Forest land is measured at fair value using the revaluation method, as defined in IAS 16. The fair value of forest land is measured based on the income approach, including net cash flows related to trees to-be-planted in the future as well as other land related income, such as wind power leases, hunting rights and soil material sales. The valuation of forest assets owned through Tornator Oyj in Estonia and Romania is based on the discounted cash flow method both for biological and land assets. Changes in the fair value of biological assets are recognised in the income statement. Changes in the fair value of forest land, net of deferred taxes, are recognised in other comprehensive income (OCI) and accumulated in a revaluation reserve in equity. The revaluation reserve is not recycled to the income statement upon disposal. If the fair value of forest land were to be less than cost, the difference would be recognised in the income statement as an impairment loss. Plantation forest assets In plantation forest areas, biological assets are recognised at fair value in accordance with IAS 41 and based on the income approach in those areas where the Group has forest land. Fair value measurement is based on Level 3 of the fair value hierarchy. Forest land is measured initially and subsequently at cost, using the cost model as defined in IAS 16. The valuation of biological assets is based on the discounted cash flow method. This method uses cash flows from continuous operations, incorporating sustainable forest management, and taking into account growth potential of one cycle. The fair value of biological assets is based on the productive forest land. The yearly harvest from the forecasted tree growth is multiplied by wood prices and the cost of silviculture and harvesting is deducted. The fair value of biological assets is measured as the present value of the harvest from one growth cycle, taking into consideration environmental restrictions and other reservations. The discount rate applied is determined using the weighted average cost of capital method. Young standing timber less than two years old (less than three years in Montes del Plata) is considered to be an immature asset and accounted at cost. The fair value approximates the cost when little biological transformation has occurred or the impact of the transformation on the price is not expected to be significant. This varies according to the location and species of the assets. Changes in the fair value of biological assets are recognised in the income statement. Forest land is measured at cost and not depreciated. Critical accounting estimates and judgement Biological assets The fair value of biological assets is determined by using discounted cash flow method. These discounted cash flows require estimates of growth, harvesting, sales price, costs and discount rate. To determine the fair value of biological assets, management must estimate future price levels and trends for sales and costs and conduct regular surveys to establish the volumes of wood available for harvesting and their current growth rates. Nordic forest assets The fair value of forest assets in the Nordics is determined using a market approach, based on forest market transactions in the areas where Stora Enso’s forests are located. Market prices between areas vary significantly and judgement is applied to define relevant areas for market transactions used in valuation. The valuation of the forest assets is based on detailed transaction data and price statistics provided by market data suppliers. Judgement is applied when adjustments are made to reflect the specific characteristics and nature of Stora Enso’s forest assets and to exclude certain non-forest assets and outlier transactions. Stora Enso applies three-year (36 month) weighted average market transaction prices, which are considered to include a sufficient number of transactions and are estimated to represent market conditions at the reporting date. The value of the forest assets is allocated to biological assets and forest land. The allocation of the combined fair value of forest assets is based on the income approach where the present values of expected net cash flows for both biological assets and forest land are calculated separately. The total net cash flows for each component include estimates for future cash flows. The value of forest assets disclosed in the consolidated statement of financial position from subsidiary companies and joint operations amounts to EUR 6,641 (7,227) million as shown below. The Group’s indirect share of forest assets held by associated companies amounts to EUR 1,702 (1,474) million. The total forest asset value, including leased forest land, amounts to EUR 8,478 (8,894) million. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 160 ===== SIDA 161 ===== Forest assets Biological assets Forest land2 Forest assets total EUR million 2025 2024 2025 2024 2025 2024 Subsidiaries and joint operations Value at 1 January 5,243 4,836 1,983 2,269 7,227 7,105 Translation differences 222 -132 75 -60 297 -192 Unrealised change in fair value1 675 638 -385 -281 289 358 Additions 69 102 2 57 70 159 Disposals and classification as held for sale -729 -6 -201 -2 -930 -9 Change due to harvesting1 -237 -208 — — -237 -208 Other operative changes1 -37 -9 — — -37 -9 Reclassification from PPE 20 22 — — 20 22 Reclassification - other3 -59 — -59 Value at 31 December 5,167 5,243 1,473 1,983 6,641 7,227 Associated companies SESOM 2 AB (15%) 111 — 31 — 143 — Tornator Oyj (41%) 1,449 1,335 110 139 1,560 1,474 Value at 31 December 1,561 1,335 142 139 1,702 1,474 Total 6,728 6,579 1,615 2,122 8,343 8,701 1 For biological assets, changes are presented in the profit and loss. For forest land, changes in fair value are recognised directly in equity. 2 Not including leased forest land. 3 Related to Swedish forests. Valuation and standing stock of forest assets As at 31 December 2025 Swedish forests Guangxi Veracel (50%) MdP (50%) Tornator (41%) SESOM 2 AB (15%) Total Total area Thousand ha 1,199 54 118 153 333 26 1,882 - of which owned Thousand ha 1,199 — 103 111 333 26 1,772 - of which leased Thousand ha — 54 14 42 — — 110 Productive area Thousand ha 1,003 48 50 101 298 22 1,522 Total area Standing stock million m3 fo.1 135.2 3.6 7.0 16.2 35.5 3.2 200.6 Productive area Standing stock million m3 fo.1 133.3 3.6 7.0 16.2 35.1 3.2 198.4 Estimated growth million m3 fo.1 6.0 1.1 2.2 3.0 1.6 0.0 13.9 Harvesting million m3 fo.1 -3.9 -1.5 -2.1 -2.7 -1.4 0.0 -11.6 Other changes million m3 fo.1 -22.5 -0.3 0.0 -0.1 1.1 3.2 -18.5 Harvesting million m3 u.b.2 -3.3 -1.2 -1.7 -2.2 -1.1 0.0 -9.5 Biological assets EUR million 4,527 156 135 350 1,449 111 6,728 Biological assets Productive area EUR/ha 4,511 3,241 2,724 3,461 4,865 5,089 4,421 Forest land EUR million 1,242 — 25 206 110 31 1,615 Total forest assets EUR million 5,769 156 160 556 1,560 143 8,343 Leased forest land EUR million — 84 9 41 — — 134 Total forest assets incl. leased land 5,769 240 169 597 1,560 143 8,478 1 Forest cubic meters 2 Solid under bark (sub) cubic meters Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 161 ===== SIDA 162 ===== As at 31 December 2024 Swedish forests Guangxi Veracel (50%) MdP (50%) Tornator (41%) Total Total area Thousand ha 1,410 62 117 154 319 2,063 - of which owned Thousand ha 1,410 — 103 111 319 1,944 - of which leased Thousand ha — 62 14 43 0 119 Productive area Thousand ha 1,150 54 49 102 286 1,641 Total area Standing stock million m3 fo.1 155.9 4.2 6.8 16.0 34.1 217.0 Productive area Standing stock million m3 fo.1 153.7 4.2 6.8 16.0 33.8 214.6 Estimated growth million m3 fo.1 5.9 1.2 2.3 2.9 1.5 13.9 Harvesting million m3 fo.1 -4.1 -1.1 -1.6 -2.4 -1.4 -10.5 Other changes million m3 fo.1 2.1 -0.2 0.0 0.6 0.3 2.8 Harvesting million m3 u.b.2 -3.4 -0.9 -1.3 -2.0 -1.1 -8.7 Biological assets EUR million 4,577 189 118 358 1,335 6,579 Biological assets Productive area EUR/ha 3,980 3,517 2,392 3,516 4,675 4,009 Forest land EUR million 1,725 — 25 233 139 2,122 Total forest assets EUR million 6,302 189 143 592 1,474 8,701 Leased forest land EUR million — 140 6 48 — 194 Total forest assets incl. leased land 6,302 329 150 639 1,474 8,894 1 Forest cubic metres 2 Solid under bark (sub) cubic metres Subsidiaries and joint operations At the end of 2025, forest assets (excluding leases) were located by value, in Sweden 87% (87%), China 2% (3%), Brazil 2% (2%) and Uruguay 8% (8%). The total area amounts to 1,523 (1,744) thousand hectares of which 7% (7%) is leased and 0% (0%) is restricted. From Stora Enso’s total forest holdings 1,202 (1,355) thousand hectares constitutes productive forest area. The Montes del Plata and Veracel amounts reflect the ownership share. Swedish forests At the end of 2025, the value of biological assets in Swedish forests amounted to EUR 4,527 (4,577) million, related forest land amounted to EUR 1,242 (1,725) million and total forest assets amounted to EUR 5,769 (6,302) million. The decrease was mainly due to the divestment of forest assets in Sweden, while stronger foreign exchange rate and slight increase in standing stock had a positive impact on forest assets. Biological assets decreased due to the divestment, while foreign exchange rate impact and increase in long-term wood market prices had a positive impact on the value. The increased discount rate impacted the biological asset value negatively. A storm in the end of December had a negative impact on the biological assets in Sweden, due to which EUR 59 million of biological assets were moved to inventory and EUR 29 million was booked as damages to the operating result. The full extent of the damage and potential insurance compensation is still being assessed. Forest land value decreased mainly due to the divestment of forest land in Sweden and an increase in the discount rate, while foreign exchange rate had a positive impact on forest land value. Deferred tax liabilities related to forest assets amounted to EUR 1,191 (1,297) million. The discount rate of 4.5% (4.1%) was applied in the valuation. The productive area in Swedish forests amounted to 1,003 (1,150) thousand hectares with a standing stock of 133.3 (153.7) million forest m³. The weighted three-year (36 month) average market transaction price applied in the valuation for Swedish forests assets in 2025 is EUR 43 (41) per forest m³. The forest asset value corresponds to an average of EUR 5,750 (5,480) per hectare of productive forest area. As explained in the section Critical accounting estimates and judgement, the valuation of forest assets is based on detailed transaction data and price statistics as provided by different market data suppliers. Market transaction data is adjusted to consider the characteristics and nature of Stora Enso’s forest assets and to exclude certain non-forest assets and outliers. Main adjustments made to the transaction data in 2025 was related to outliers. The divestment of 12.4% of Stora Enso’s Swedish forest assets was not included in the market transaction data as it was not considered a pure unconditional sale of forest assets due to the related contractual agreements, further described in 6.1 Acquisitions, disposals and assets held for sale. The valuation takes into account the location of the forest land, price levels and volume of standing stock. Market prices vary significantly between areas. Future changes in the value of Swedish forest assets will be influenced by changes in market transaction prices and changes in volume of standing stock, considering growth and other factors. 2025 Värmland, Storlän Dalarna, Västra Dalarna, Östra Gävleborg, Östra Jämtland, Södra Other Total Productive area Thousand ha 391 88 272 70 181 0 1,003 Percentage of total % 39 % 9 % 27 % 7 % 18 % 0 % 100 % Standing stock million m3 fo.1 58.3 11.3 35.6 10.8 17.2 0.0 133.3 Percentage of total % 44 % 8 % 27 % 8 % 13 % 0 % 100 % Valuation EUR/m3 fo1, 2 EUR 45 42 45 41 36 70 43 Number of transactions 293 189 348 77 127 n/a 1034 1 Forest cubic metres 2 3-year weighted average 2024 Värmland, Storlän Dalarna, Västra Dalarna, Östra Gävleborg, Östra Jämtland, Södra Other Total Productive area Thousand ha 482 95 312 70 191 0 1,150 Percentage of total % 42 % 8 % 27 % 6 % 17 % 0 % 100 % Standing stock million m3 fo.1 70.9 11.8 42.2 11.2 17.6 0.0 153.7 Percentage of total % 46 % 8 % 27 % 7 % 11 % 0 % 100 % Valuation EUR/m3 fo1, 2 EUR 41 43 44 41 35 66 41 Number of transactions 250 165 322 72 121 n/a 930 1 Forest cubic metres 2 3-year weighted average Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 162 ===== SIDA 163 ===== Guangxi At the end of 2025, the value of the biological assets in Guangxi, China, amounted to EUR 156 (189) million. All the forest land in China is leased. The biological asset value decrease is mainly due to lower volumes as some of the lease contracts were ended in 2025, while sales prices and decrease in discount rate had a positive impact on the value. Biological assets included young standing timber with a value of EUR 21 (30) million. The discount rate of 8.8% (9.2%) used in the discounted cash flows (DCF) decreased in 2025. Veracel Veracel is a 50% joint operation in Brazil. Stora Enso’s share of biological assets was EUR 135 (118) million. The increase is mainly caused by favourable climate conditions effecting the growth and decreased discount rate. Biological assets included young standing timber with a value of EUR 36 (33) million. The discount rate of 8.2% (12.4%) is used in 2025. The related forest land is measured at cost. Montes del Plata Montes del Plata (MdP) is a 50% joint operation in Uruguay. Stora Enso’s share of biological assets was EUR 350 (358) million. The decrease is mainly driven by weaker foreign exchange rate, while increased growth and decrease in discount rate had a positive impact on the biological asset value. Biological assets included young standing timber with a value of EUR 54 (55) million. The discount rate of 8.0% (9.0%) is used in the DCF in 2025. The related forest land is measured at cost. Associated companies Tornator Tornator Oyj is a 41% owned Finnish associate company. Stora Enso’s share of biological assets was EUR 1,449 (EUR 1,335) million, related forest land amounted to EUR 110 (139) million, and total forest assets equalled to EUR 1,560 (1,474) million. The increase in the value of forest assets is mainly driven by acquisitions and slightly higher market prices. Stora Enso’s share of the productive forest area totals 298 (286) thousand hectares with a standing stock of 35.1 (33.8) million forest m3. The weighted three-year (36 month) average market transaction price applied in the valuation for forest assets located in Finland in 2025 is EUR 44 (44) per forest m3. The forest asset value in Finland corresponds to an average of EUR 5,240 (5,160) per hectare of productive forest area. SESOM 2 AB SESOM 2 AB is a 15% owned Swedish associate company. Stora Enso’s share of biological assets was EUR 111 million, related forest land amounted to EUR 31 million and total forest assets equalled to EUR 143 million. Stora Enso’s share of the productive forest area totals 22 thousand hectares with a standing stock of 3.2 million forest m3. The weighted three- year (36 month) average market transaction price applied in the valuation for forest assets located in Sweden in 2025 is EUR 45 per forest m3. The forest asset value in Sweden corresponds to an average of EUR 6,520 per hectare of productive forest area. Valuation sensitivities of significant assumptions of a +/- 10% movement EUR million Wood market prices Growth rate Discount rate Guangxi +/-24 +/-17 +/-3 Veracel +/-13 +/-13 +/-3 Montes del Plata +/-37 +/-37 +12/-11 Nordic forest asset valuation is sensitive to changes in market transaction prices and volume of standing stock. The table below shows the sensitivity to change in average market price and to change in the volume of standing stock of forest assets in Sweden. EUR +1/forest m3 volume of standing stock of +1 million forest m3 EUR million 2025 2024 2025 2024 Värmland, Storlän 58 71 20 19 Dalarna, Västra 11 12 4 3 Dalarna, Östra 36 42 12 12 Gävleborg, Östra 11 11 3 3 Jämtland, Södra 17 18 5 4 Other 0 0 0 0 Total 133 154 43 41 4.3 Associates Accounting principles Associated companies over which Stora Enso exercises significant influence are accounted for using the equity method. Stora Enso does not control associated companies alone or jointly with other parties, but has significant influence. The Group’s share of the associated companies profit or loss is recognised in the consolidated income statement. The Group’s interest in an associated company is carried in the consolidated statement of financial position at an amount that reflects its share of the net assets of the associate together with goodwill. Goodwill arising from the acquisition of an associated companies is included in the carrying amount of the investment and is assessed for impairment as part of that investment. When the Group share of losses exceeds the carrying amount of an investment, the carrying amount is reduced to zero and any recognition of further losses ceases unless the Group is obliged to satisfy obligations of the investee that it has guaranteed or which it is otherwise committed to. The Group’s share of results in associated companies is reported in the operating result to reflect the operational nature of these investments. Similarly, dividends received from associated companies are presented in the net cash provided by operating activities in the consolidated cash flow statement. Principal associated company investments Ownership interest % EUR million Company Reportable segment Domicile and principal place of operations 2025 2024 2025 2024 Tornator Oyj Forest Finland 41.00 41.00 953 922 SESOM 2 AB Forest Sweden 15.00 — 116 — Others 39 32 Carrying amount 1,108 954 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 163 ===== SIDA 164 ===== Group share of associated companies income statements EUR million 2025 2024 Sales 152 139 Net operating expenses -85 -80 Biological asset valuation 55 14 Operating result 123 74 Net financial items -11 -14 Net result before tax 111 60 Income tax -23 -10 Net result for the year 89 52 The average number of personnel in the associated companies was 971 in 2025, compared with 1,015 in 2024. A summary of the financial information, prepared in accordance IFRS, in respect of the Group’s material associates, Tornator Oyj and SESOM 2 AB is set out below. The Group’s share of these associated companies are reported in the Forest segment and covers the majority of the Group’s total carrying amount of associated companies. Tornator Oyj EUR million 2025 2024 Forest assets 3,805 3,595 Other non-current assets 73 71 Current assets 145 134 Non-current liabilities 748 948 Current liabilities 480 141 Tax liabilities 470 460 Sales 238 221 Net result for the year 217 133 Other comprehensive income -71 12 Total comprehensive income 146 145 Dividends received during the financial year (41%) 29 29 Net assets of the associate 2,325 2,250 Ownership interest 41.00 % 41.00 % Carrying amount of the Group’s interest in Tornator Oyj 953 922 The Group’s share of Tornator’s net profit was EUR 89 (54) million, including a biological asset valuation gain net of taxes of EUR 43 (12) million. SESOM 2 AB EUR million 2025 Forest assets 951 Other non-current assets 169 Current assets 18 Non-current liabilities 162 Current liabilities 4 Tax liabilities 197 Sales 11 Net result for the year 17 Other comprehensive income 7 Total comprehensive income 24 Net assets of the associate 775 Ownership interest 15.00 % Carrying amount of the Group’s interest in SESOM 2 AB 116 In September 2025, Stora Enso disposed 12.4% of its forest assets and retained 15% ownership of the sold company. In 2025 Stora Enso and SESOM 2 entered into a 15-year wood supply agreement with a possible additional 15-year extension. This will secure wood availability for Stora Enso’s Swedish business units. SESOM 2 will also benefit from a forest management agreement under which Stora Enso will provide forest-related services. The group has assessed that these agreements together with other contractual details and Stora Enso’s voting rights and share of appointed board members indicate that Stora Enso will exercise a significant influence over SESOM 2 and therefore it has been reported as associate company. More details about the transaction included in note 6.1 Acquisitions, disposals and assets held for sale. The Group’s share of SESOM 2 AB’s net profit was EUR 3 million, including a biological asset valuation gain net of taxes of EUR 2 million. Aggregate information of associated companies that are not individually material EUR million 2025 2024 Non-current assets 46 44 Current assets 18 16 Non-current liabilities 10 8 Current liabilities 16 20 Sales 52 49 Net result for the year -3 -2 Dividends received during the financial year — — Net assets of the associates 39 32 Associate company value 39 32 Associate company value for Tornator Oyj 953 922 Associate company value for SESOM 2 AB 116 — Total associate company value 1,108 954 Associated company balances EUR million 2025 2024 Receivables from associated companies Non-current loan receivables 3 2 Trade receivables 4 5 Current loan receivables 1 10 Liabilities to associated companies Trade payables 60 46 Associated company transactions EUR million 2025 2024 Sales to associated companies 26 30 Purchases from associated companies 231 199 The Group engages in transactions with associated companies such as sales and purchases of wood. All agreements are negotiated at arm’s length and are conducted on terms that the Group considers customary in the industry and generally no less favourable than would be available from independent third parties. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 164 ===== SIDA 165 ===== 4.4 Equity instruments Accounting principles The Group has elected to classify its equity investments in Pohjolan Voima shares and certain other unlisted shares held by the Group at fair value through other comprehensive income (FVTOCI) under IFRS 9 by applying the irrevocable election for equity instruments under the standard due to the long-term nature of the ownership. The gains and losses resulting from changes in the fair value of equity investments under FVTOCI are not recycled to the income statement upon impairment or disposal, only the dividend income is recognised in the income statement. In addition, the Group also has certain equity investments in unlisted securities that are classified as fair value through income statement. The majority of the Group’s equity instruments consist of investments in Pohjolan Voima Oyj (PVO). Critical accounting estimates and judgement Where the fair value of financial assets and liabilities cannot be derived directly from publicly quoted market prices, other valuation techniques, such as discounted cash flow models, and Gordon model, are applied. Changes in the key assumptions, such as future cash flow estimates, could affect the reported fair value of the financial instruments. Investments in equity and debt instruments of unlisted entities, such as PVO, represent a significant portion of the Group’s assets and require management judgement, as explained in more detail below. Equity instruments EUR million 2025 2024 1 January 613 819 Change in fair value - OCI 297 -203 Change in fair value - Income statement 0 0 Additions 13 0 Disposals -11 -3 Translation difference and other changes 1 -1 31 December 912 613 PVO shares The Group holds a 16.5% (16.1%) interest in Pohjolan Voima Oyj (PVO), a public limited company in the energy sector that produces electricity and heat for its shareholders in Finland at cost-based and non-profit making principle (Mankala-principle). Each subsidiary of the PVO group has its own class of shares that, instead of dividends, entitle the shareholder to the energy produced in proportion to its ownership of that class of share. Also, the shareholders then have an obligation to cover the costs of production, which are generally lower than market prices. Stora Enso received EUR 2 (3) million of dividends from PVO during 2025. The holding is fair valued using the discounted cash flow method. The valuation is categorised at level 3 in the fair value hierarchy. More details about these levels are included in note 5.2 Fair values. The electricity prices used in the valuation are based on market future derivative prices for the first two years and on long-term electricity price estimates for the years thereafter. The historical financial statements provide the basis for the cost structure for each power asset and for future periods, estimates from PVO shareholder information is used when available and these are adjusted by inflation factor in future years. The discount rate of 6.48% used in the valuation model is determined using the weighted average cost of capital method. A +/- 5% change in the electricity price used in the DCF would change the valuation by EUR +96 million and -96 million, respectively. A +/- percentage point change in the discount rate would change the valuation by EUR -154 million and +204 million, respectively. PVO’s shares are divided in different share series. The B and B2 series relate to PVO’s shareholdings in Teollisuuden Voima Oyj (TVO), which operates three nuclear plants in Finland (Olkiluoto 1–3). Stora Enso holds an indirect share of approximately 8.9% of the capacity of the Olkiluoto 3 nuclear plant unit through its PVO B2 shares. PVO and other equity instruments 31 December 2025 EUR million Share Series 1 % Holding Asset Category 2025 2024 PVO A 20.6 Hydro 249 191 PVO B, B2 15.7, 14.8 Nuclear 621 378 PVO C 0 1 Total PVO 870 570 Other unlisted securities 42 31 Total unlisted securities 912 602 Listed securities (Packages Ltd) 2 0 11 Total Equity instruments 912 613 1 After the finalisation of winding down of their related operations, the share series C was dissolved during 2025 and share series C2, V and M were dissolved during 2024. 2 Disposed during 2025. The valuation of PVO in 2025 amounted to EUR 870 (570) million. The increase in PVO’s valuation is mainly due to an increase in electricity price estimates. No deferred tax is recognised, as under Finnish tax regulations, holdings above 10% are exempt from tax on disposal proceeds. 4.5 Emission rights and other non-current assets Accounting principles The Group participates in the European Emissions Trading Scheme, with the aim of reducing greenhouse gas emissions. The Group has been allocated allowances to emit a fixed tonnage of carbon dioxide (CO2) over a fixed period of time, which are recognised as intangible assets, government grants and as liabilities for the obligation to deliver allowances equal to those emissions that have been made during the compliance period. Intangible assets related to emission allowances are measured at level 1 fair value at the date of initial recognition. The liabilities to deliver allowances are recognised based on actual emissions and are settled using allowances on hand and measured at the carrying amount of those allowances. At the reporting date, if the market value for the emission allowances is less than the carrying amount, any surplus allowances that are not required to cover emissions made are impaired to the market value. The Group recognises expenses under “Materials and Services” related to emissions made at the grant date fair value for the allocated free allowances, or at acquisition cost for purchased emissions rights. These costs are offset by income from the use of granted rights, also measured at their original fair value, resulting in a neutral impact on the consolidated income statement for rights consumed within the original grant. Revenue from selling surplus emission allowances is recognised on the delivery date. Any net effect reflects either the cost of acquiring additional rights to cover excess emissions, the sale of unused rights when actual emissions are below the granted amount, or impairment of rights not needed for internal use. Emission rights EUR million 2025 2024 Value at 1 January 73 108 Emission allowances allocated 99 110 Sales -71 -65 Settlement with the government -55 -80 Value at 31 December 45 73 The liability to deliver allowances is presented in the consolidated statement of financial position in line other operative liabilities. As of 31 December 2025, the liability to deliver allowances amounted to EUR 40 (56) million as presented in note 4.8 Operative liabilities. The excess emission rights held at the year end were valued at EUR 21 (17) million. Other non-current assets EUR million 2025 2024 Prepaid expenses and accrued income 28 21 Tax credit 3 3 Other non-current operative assets 38 28 Total 69 53 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 165 ===== SIDA 166 ===== 4.6 Inventories Accounting principles Inventories are reported at lower of cost and net realisable value with the cost determined by the first-in first-out (FIFO) method or, alternatively, by the weighted average cost where it approximates FIFO. The same cost formula is used for all inventories having a similar nature and use to the Group. The cost of finished goods and work in progress comprises raw material, direct labour, depreciation, other direct costs and related production overheads, but excludes interest expenses. Net realisable value is the estimated selling price in the ordinary course of business, less the costs of completion and sale. Where market conditions result in the manufacturing costs of a product exceeding its net realisable value, a valuation allowance is made. Valuation allowances are also made for old, slow moving and obsolete finished goods and spare parts when needed. Such valuation allowances are deducted from the carrying value of the inventories in the consolidated statement of financial position. EUR million 2025 2024 Materials and supplies 501 468 Work in progress 70 73 Finished goods 853 829 Spare parts and consumables 328 325 Other inventories 89 26 Advance payments and cutting rights 101 85 Obsolescence allowance - spare parts and consumables -100 -104 Obsolescence allowance - finished goods -18 -12 Net realisable value allowance -22 -20 Total 1,802 1,672 EUR 6,117 (5,842) million of inventories in total were expensed during the year. EUR 29 (23) million of inventory write-downs were recognised as an expense. EUR 26 (26) million were recognised as a reversal of previous write-downs. 4.7 Operative receivables Accounting principles Trade receivables Trade receivables are recognised initially at fair value and subsequently at their anticipated realisable value with an estimate made for loss allowance on expected credit losses based on a forward-looking and objective review of all outstanding amounts at period end. A simplified approach under IFRS 9 has been implemented for trade receivables and loss allowances are recognised based on expected lifetime credit losses in the consolidated income statement within other operating expenses. For non-defaulted receivables, expected credit losses are estimated based on externally generated customer level probability of default data that is used in the forward-looking loss allowance calculation model. The loss allowance model for non-defaulted receivables also takes into account a macroeconomic indicator that considers the macroeconomic developments and further incorporates forward-looking data to the calculation model. The rebuttable presumption that default does not occur later than when a financial asset is 90 days past due has been applied in the calculation model and a default is normally estimated to occur when trade receivables are at least 90 days overdue or there is otherwise objective evidence supporting the conclusion that a default has occurred. Trade receivables will be written off and booked as a credit loss only with the court’s decision of bankruptcy or in some other cases when there is objective evidence supporting the write-off. Trade receivables under factoring arrangements Stora Enso uses factoring arrangements as one of the working capital management tools. Sold trade receivables are derecognised once significant related risks and rewards of ownership have been transferred to the buyer. Outstanding balances for trade receivables that were not yet sold at period end but qualify to be sold under factoring programmes in the next period, are classified as trade receivables fair valued through other comprehensive income in accordance with the business model and contractual cash flow characteristics tests under IFRS 9. Please refer to note 5.2 Fair values for further details. Current operative receivables EUR million 2025 2024 Trade receivables - gross carrying amount 613 688 Loss allowance -20 -20 Prepaid expenses and accrued income 67 87 Other receivables 209 214 Total 869 969 Age analysis of trade receivables EUR million 2025 2024 Not overdue 540 619 Less than 30 days overdue 38 39 31 to 60 days overdue 3 1 61 to 90 days overdue 3 0 91 to 180 days overdue 3 1 Over 180 days overdue 27 27 Total 613 688 As at 31 December 2025, a gross amount of EUR 74 (69) million of trade receivables were overdue. These relate to a number of countries and unrelated customers that have no recent history of default. If the Group has concerns regarding the financial status of a customer, an advance payment or an irrevocable letter of credit drawn from a bank is required. At the year end, the letters of credit awaiting maturity totalled EUR 40 (48) million. Please refer to note 5.1 Financial risk management for details of customer credit risk management. Age analysis of loss allowance EUR million 2025 2024 Not overdue and less than 90 days overdue 1 1 91 to 365 days overdue 3 1 Over 365 days overdue 17 17 Total 20 20 Reconciliation of loss allowance EUR million 2025 2024 Opening balance at 1 January 20 27 Change in loss allowance booked through income statement 1 3 Write-offs -1 -10 Other 1 0 Closing balance at 31 December 20 20 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 166 ===== SIDA 167 ===== Stora Enso has entered into factoring agreements to sell trade receivables in order to accelerate cash conversion. During 2025, the Group entered into one new factoring agreement with a financial institution, under terms similar to the existing agreements. These agreements resulted in full derecognition of trade receivables amounting to a nominal value of EUR 441 (414) million at the end of the year. The continuing involvement of Stora Enso in the sold receivables was estimated as being insignificant due to the non-recourse nature of the factoring arrangements involved. 4.8 Operative liabilities Non-current operative liabilities EUR million 2025 2024 Share-based payments 1 1 Other payables 30 9 Total 30 10 Current operative liabilities EUR million 2025 2024 Trade payables 1,804 1,781 Payroll and staff-related accruals 209 224 Accrued liabilities and deferred income 103 114 Emission liabilities 40 56 Advances received 11 15 Other payables¹ 126 107 Total 2,293 2,296 1 Other payables consist especially of taxes payable to government, such as VAT and payroll taxes. In 2024, EUR 16 million of grants were paid back to the authorities in Belgium, as a result of a 2019 legionella- related incident being considered as an environmental infringement. Supplier Chain Finance arrangements Stora Enso has entered into several supply chain finance agreements. Supply chain finance arrangements are recognised as trade payables and are not reclassified after initial recognition. Supply chain finance arrangements have the following terms and conditions: Suppliers offered chance to join the programme, either as part of contract negotiations or during the contract period to update the terms the agreement. This is a trade payable programme where invoices are paid to the bank under the same payment terms that Stora Enso has agreed upon with the supplier, while the bank pays the supplier early for the invoice according to the arrangement. The bank conducts negotiations for the supplier’s participation in the programme, with Stora Enso acting as an agent to connect the two parties. The only cost to the supplier is the early payment of invoices. The programme is funded on a non-recourse basis by the funder, and the supplier predominantly bears the cost of the discounting in the programme. No joint and several liability clause is included in the programme, with all invoices treated the same in Stora Enso’s subsidiaries. EUR million 2025 2024 SCF presented within trade payables 322 254 Of which suppliers have received payment 299 236 Range of payment due dates Days after invoice date 2025 2024 Trade payables that are part of an arrangement 60-180 60-180 Comparable trade payables that are not part of an arrangement 60-120 60-120 There were no material non-cash changes that would have caused changes in the carrying amounts. 4.9 Provisions Accounting principles Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the management’s best estimate and there is some uncertainty regarding the timing and amount of the costs. Provisions for obligations to dismantle, remove or restore assets after their use are added to the carrying amount of the assets at acquisition date and depreciated over the useful life of the asset. Provisions are discounted to their current net present value if the effect of the time value of money is material. Environmental provisions Environmental expenditures resulting from the remediation of an existing condition caused by past operations, and which do not contribute to current or future revenues, are recognised as provisions. Environmental provisions are recorded when it is probable, based on current interpretations of environmental laws and regulations, that a present obligation has arisen and the amount of such liability can be reliably estimated. Restructuring provisions A restructuring provision is recognised in the period in which the Group becomes legally or constructively committed to the plan. The relevant costs are those that are incremental to, or incurred as a direct result of, the exit plan, or are the result of a continuing contractual obligation with no ongoing economic benefit, or represent a penalty incurred to cancel the obligation. Other provisions Other provisions are recognised regarding different legal or constructive obligations, such as reforestation, onerous contracts, ongoing lawsuits, claims, or similar. Critical accounting estimates and judgement The amounts recognised as provisions are based on the management’s best estimate of the costs required to settle the obligation. Due to uncertainty regarding the timing and amount of these costs, the actual costs might differ significantly from the original estimate. The carrying amounts of provisions are reviewed regularly and adjusted when needed to consider changes in cost estimates, regulations, applied technologies and conditions. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 167 ===== SIDA 168 ===== Provisions EUR million Environ- mental provisions Restructuring provisions Other provisions Total provisions Carrying Value at 1 January 2024 63 77 28 168 Translation difference -1 0 -2 -3 Disposals and classification as held for sale 0 -1 0 -1 Charge in Income Statement New provisions 2 42 10 55 Increase in existing provisions 14 2 0 16 Reversal of existing provisions -3 -14 0 -17 Payments -8 -80 -12 -100 Carrying Value at 31 December 2024 67 26 25 118 Translation difference 2 1 1 5 Disposals and classification as held for sale 0 0 -2 -2 Charge in Income Statement New provisions 3 27 18 47 Increase in existing provisions 4 0 3 7 Reversal of existing provisions -3 -2 -1 -6 Payments -10 -19 -11 -40 At 31 December 2025 64 32 32 129 Allocation between current and non-current provisions Current provisions: Payable within 12 months 3 29 18 50 Non-current provisions: Payable after 12 months 61 3 15 79 Total at 31 December 2025 64 32 32 129 The Group has undergone major restructuring in recent years, from divestments to mill closures and administrative cost-saving programmes. The obligation at the end of 2025 amounted to EUR 32 (EUR 26) million for restructuring provisions and EUR 32 (EUR 25) million for other provisions. Material payments in 2025 in restructuring provisions are mainly related to the profit improvement programme. The most significant environmental provision is based on an agreement between Stora Enso and the City of Falun that obligates the Group to purify runoff from the Kopparberg mine before releasing the water into the environment. The provision at year end amounted to EUR 26 (EUR 27) million. The most material case in other provisions is related to an obligation in some Nordic countries to take care of reforestation within a specified time after final harvesting. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 168 ===== SIDA 169 ===== 5 Capital structure and financing 5.1 Financial risk management Risk management principles and process Stora Enso is exposed to several financial market risks that the Group is managing under the policies approved by the Board of Directors. The objective is to ensure cost-effective funding of Group companies and manage financial risks effectively. The Stora Enso Group Financial Risk Policy governs all financial transactions in Stora Enso. This policy and any future amendments take effect once they are approved by the Board of Directors and all policies covering the use of financial instruments must comply with it. The Group’s joint operations companies operate under their own financial risk policies, which may not be fully similar to the Group’s policies. The major financial market risks are detailed below with the main exposures for the Group being interest rate risk, currency risk, liquidity risk, refinancing risk, and commodity price risk, especially for fiber, pulp, and energy. Interest rate risk The Group is exposed to an interest rate risk that is the risk of fluctuating interest rates affecting the interest expense of the Group and value of its assets and liabilities. Stora Enso is exposed to the interest rate risk through interest-bearing assets and liabilities, such as loans, financial instruments and lease liabilities, but also through commercial agreements and operative assets and liabilities such as biological assets. The Group’s aim is to keep interest costs stable. The Group’s aggregate duration should not exceed the average loan maturity, but should aim towards a long duration. A duration above the average loan maturity is approved by the Board of Directors. The Group may use interest-rate swaps and cross-currency swaps to manage the interest-rate risk by synthetically converting floating-rate loans into fixed-rate loans through the use of derivatives. Floating and fixed interest-rate position The average interest duration for the Group’s net interest-bearing liabilities, including all interest rate derivatives but excluding cash and cash equivalents, is 2.9 (2.5) years. At the end of 2025, the portion of the balance sheet, net of related derivatives and exposed to floating interest rates, amounted to EUR 231 million (EUR 604 million) (excluding interest receivable and payable, listed securities, derivative asset and liabilities). The fixed rate interest portion was 74% (69%) of the total debt portfolio at the end of 2025 (excluding derivative liabilities and interest payable). The sensitivity analysis reflects the effect to profit before tax mainly as a result of changes in interest expenses on floating rate debt. As of 31 December 2025, one percentage point increase in interest rates would increase annual net interest expenses by approximately EUR 7 (EUR 7) million and a similar decrease in interest rates would decrease net interest expenses by EUR 7 (EUR 7) million. This assumes that the duration and the funding structure of the Group remain constant throughout the year. This simulation calculates the interest effect of a 100 basis point parallel shift in interest rates on all floating rate instruments excluding cash equivalents from their next reset date to the end of the year. In addition, all short-term loans maturing during the year are assumed to be rolled over on maturity to year end using the new higher or lower interest rate. A one percentage point parallel change up or down in interest rates would also result in fair valuation gains or losses of EUR 1 (EUR 3) million before taxes in the cash flow hedge reserve in OCI regarding interest rate swaps under cash flow hedge accounting. Note 5.4 Derivatives summarises the nominal and fair values of the outstanding interest rate derivative contracts. Foreign exchange risk – transaction risk The Group operates globally and is exposed to a foreign-currency transaction risk arising from exchange rate fluctuations. Foreign exchange transaction risk exposure comprises both the geographical location of Stora Enso production facilities around the world, sourcing of raw materials and sales of end products in foreign currencies, mainly denominated in US dollars, British pounds and Swedish crowns. Stora Enso Group companies with functional currency other than euro are also exposed to a foreign- currency transaction risk arising from EUR denominated net cash flows. These EUR exposures mainly arise from Stora Enso subsidiaries located in Sweden, Czechia and Poland. The currency transaction risk is the impact of exchange rate fluctuations on the Group’s Income statement, which is the effect of currency rates on expected future cash flows and subsequent trade receivables or payables. The Group’s standard policy to mitigate the risk is to hedge 15–60% of the highly probable forecast cash flows in major currencies for the next 12 months by using derivative financial instruments, such as foreign exchange forwards and foreign exchange options. For exposures denominated in SEK, deviations from the standard hedge ratio are applied across business areas to reflect differences in the nature of underlying exposures and risk management practices. A higher ratio has been approved for certain cost exposures representing a portion of the Group’s total SEK net exposure. Other business units’ SEK sales and costs are managed separately and are not included in this hedging program. For highly probable USD cash flows, a higher hedge ratio of up to 80% has been approved. The Group may also hedge periods between 12 months and 36 months, or change the above mentioned hedging ratio for the next 12 months upon the discretion of the Group’s management. For operative receivables and payables in foreign currencies, the objective is to hedge 50–100% of the outstanding net receivable balance in major currency pairs. The table below presents the estimated net operative foreign currency transaction risk exposures for the main currencies for the next 12 months and the related foreign-currency hedges in place as at 31 December, retranslated using year-end exchange rates. The net operative receivables and payable exposures, representing the balances as at 31 December, include foreign currency exposures generated by external and intercompany transactions in line with the requirements of IFRS 7. A positive amount of exposure in the table below represents an estimated future inflow or receivable of a foreign currency amount. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 169 ===== SIDA 170 ===== Operative foreign currency transaction risk exposure As at 31 December 2025 As at 31 December 2024 EUR million EUR SEK USD GBP AUD UYU EUR SEK USD GBP AUD UYU Estimated annual net cash flow exposure in hedged foreign-currency flows1 748 -308 1,327 159 80 -45 792 -321 1,580 158 73 -46 Cash flow hedges for the next 12 months -461 242 -1,045 -34 -23 27 -436 206 -737 -38 -20 32 Estimated annual net cash flow exposure, net of hedges 286 -66 282 125 57 -18 356 -115 843 120 54 -14 Hedging percentage as at 31 December for next 12 months 62 % 79 % 79 % 22 % 28 % 60 % 55 % 64 % 47 % 24 % 27 % 69 % Weighted-average hedged rate against EUR2 11.19 1.15 0.87 1.79 50.27 11.42 1.11 0.84 1.64 43.74 1 Cash flows are forecasted highly probable net operating foreign-currency cash flows in hedged currencies. The exposure presented in the EUR column relates to operative transaction risk exposure from EUR denominated cash flows in Group companies located in Sweden, Czechia and Poland with functional currency other than EUR. 2 The weighted-average exchange rate against EUR is calculated based on bought leg of option collar structure and forward contracts’ forward rate and therefore represents the weighted-average hedged rate based on the least favourable hedged rate from the Group’s point-of-view. As at 31 December 2025 As at 31 December 2024 EUR million EUR SEK USD GBP AUD UYU EUR SEK USD GBP AUD UYU Operative receivables and payables net exposure -88 -35 89 16 30 -6 -87 -40 49 17 42 -4 Net receivable currency hedges 1 33 7 -50 -10 -30 0 34 6 6 -10 -22 0 Net operative receivables exposure, net of hedges -56 -27 39 5 0 -6 -54 -34 55 7 19 -4 1 The hedge positions presented in this table reflect instruments used against the accounts payable and receivable balance sheet positions shown, rather than those outstanding at 31 December 2025 year-end. Adjustments were applied on January 2026 using December operative receivables and payables net exposure to align with risk management strategy. In addition, the Group hedge estimated net operative foreign currency exposures in SEK for the period between 12 and 24 months. Cash flow hedges outstanding at the reporting date was EUR 33 million for SEK exposures. A calculated 5% weakening of exposure currencies would result in a EUR -2 million effect on cash flow hedging OCI reserve at year end. The following table includes the estimated effect on the annual operating result of a weakening of an exposure currency against the functional currencies of exposed subsidiaries. The sensitivities have been calculated based on a 5% movement in EUR, SEK, USD, GBP and AUD while 10% movement in UYU. These changes are estimated as reasonably possible changes in exchange rates, measured against year-end closing rates. A corresponding strengthening of the exposure currency would have an approximately equal opposite impact. A negative amount in the table reflects a potential net loss in the income statement or equity and, conversely, a positive amount reflects a potential net gain. In practice, the actual foreign currency results may differ from the sensitivity analysis presented below, since the income statements of subsidiaries with functional currencies other than the euro are translated into the Group reporting currency using the average exchange rates for the year, whereas the statements of the financial position of such subsidiaries, including currency hedges, trade receivables and payable, are translated using the exchange rates at the reporting date. The translation risk exposures are discussed more in detail under the Translation risk chapter below. The calculation includes currency hedges and assumes that there are no changes in other underlying currencies. The currency effects are based on estimated operative foreign currency flows for the next twelve months, hedging levels at the year end, and the assumption that the currency cash flow hedging levels and all other variables will remain constant during the next twelve months. Hedging instruments include foreign exchange forward contracts and foreign exchange options. Indirect currency effects with an impact on prices and product flows, such as a product becoming cheaper to produce in a different geographical location, have not been considered in this calculation. Sensitivity analysis of operative foreign currency transaction risk exposure As at 31 December 2025 As at 31 December 2024 EUR million EUR SEK USD GBP AUD UYU EUR SEK USD GBP AUD UYU Exposure currency change by1 -5 % -5 % -5 % -5 % -5 % -10 % -5 % -5 % -5 % -5 % -5 % -10 % Effect on estimated annual net cash flows in hedged flows -37 15 -66 -8 -4 4 -40 16 -79 -8 -4 5 Effect on cash flow hedging OCI reserve before taxes as at year end2 23 -12 52 2 1 -3 22 -10 37 2 1 -3 Effect on net operative receivables and payables after hedges3 3 1 -2 — — 1 3 2 -3 — -1 — Estimated annual EBIT impact4 -12 5 -16 -7 -3 2 -15 7 -45 -6 -4 2 1 The sensitivity analysis for EUR denominated annual net cash flows, operative net receivables and related hedges refer to the EUR denominated transaction risk arising from EUR denominated foreign-currency cash flows in Sweden, Czechia and Poland with functional currency other than EUR. 2 The effect on OCI cash flow hedging reserve before taxes at year end is related to the fair value change in derivative contracts qualifying as cash flow hedges of highly probable forecast transactions under IFRS 9. Amount effecting OCI will be recycled to operative result when the transaction realises. 3 Currency effect related to net operative receivables or payables and related hedges. 4 The estimated annual EBIT impact includes currency effects in respect of operative exposures in the Statement of Financial Position, forecast cash flows and the related hedges. The following table presents the financial foreign currency exposure and the related hedges in place as at 31 December for the main currencies. Net debt includes foreign-currency external loan payables and receivables, foreign-currency internal loan payables and loan receivables and cash equivalents. Loans designated as net investment loans under IAS 21 are excluded from the table as they reduce the foreign-currency exposures on a Group level. Internal transaction exposure includes foreign-currency payables and receivables outstanding within the Group at reporting date. The currency derivatives mainly hedge financial exposures in the statement of financial position. A negative amount of exposure in the table represents a net payable of a foreign currency amount. Additionally, the table includes the estimated effect on the income statement of a currency weakening of an exposure currency against EUR. The sensitivities have been calculated based on a 5% movement in SEK, USD, CNY, PLN, and CZK. These changes are estimated as reasonably possible changes in exchange rates, measured against year-end closing rates. A corresponding strengthening of the exposure currency would have an approximately equal opposite impact. A negative amount in the table reflects a potential net loss in the Income statement and, conversely, a positive amount reflects a net potential gain. In practice, the actual foreign currency results may differ from the sensitivity analysis below as the exposure amounts may change during the year. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 170 ===== SIDA 171 ===== Financial foreign currency exposure and estimated currency effects in income statement As at 31 December 2025 As at 31 December 2024 EUR million SEK USD CNY PLN BRL CZK SEK USD CNY PLN BRL CZK Foreign-currency net debt1 51 -32 73 -12 4 17 256 -151 141 -11 80 30 Currency hedges -90 -27 — -9 — -22 -257 -53 — -11 — -29 Net exposure after hedges -39 -59 73 -21 4 -5 -2 -204 141 -22 80 1 Internal transaction exposure — 3 -6 — Currency hedges — — — — Net non-operative exposure — — — — — — 3 -6 — Exposure currency change by -5 % -5 % -5 % -5 % -5 % -5 % -5 % -5 % -5 % -5 % -5 % -5 % Effect in the Income Statement2 2 3 -4 1 — — — 10 -7 1 -4 — 1 The Group has designated certain internal loans to Chinese subsidiaries as net investment loans under IAS 21. The loans are denominated in EUR, USD, and CNY. The underlying foreign currency gain or loss will be posted as part of CTA in Equity. The nominal amount of net investment loans amounted to EUR 686 (EUR 620) million as per the year end and reduces the currency exposure for relevant currencies in the above table. 2 Gains and losses are recognised as part of Net financial items in the Income Statement Foreign exchange risk – translation risk Translation risk results from fluctuations in exchange rates affecting the value of Stora Enso’s consolidated net foreign currency denominated assets, liabilities, and income. Translation risk is reduced by funding assets, whenever economically possible, in the same currency as the asset itself. The Group may also enter into foreign exchange forwards, foreign exchange options or foreign currency denominated loans to hedge its net investments in foreign entities with different functional currencies than the Group. The balance sheets of foreign subsidiaries, associated companies and foreign currency denominated equity instruments in the scope of IFRS 9 are translated into euros using exchange rates prevailing on the reporting date, thus exposing consolidated Group equity to fluctuations in currency rates. The resulting translation differences, along with other movements such as the translation rate difference in the income statement, are recorded directly in shareholders’ equity. These cumulative differences materialise through the Income statement on the disposal, in whole or in part, of the foreign entity. The following table presents the translation exposure for geographical areas for which the Group has applied net investment hedging techniques to reduce the foreign-currency translation exposure in the consolidated equity. In practise, the Group also incurs material unhedged translation risk exposures in other geographical areas such as Sweden and China. The exposures used in the calculations are based on the foreign currency denominated equity and the hedging levels as at 31 December. Full details of actual CTA movements and hedging results are given in note 5.6 Cumulative translation adjustment and equity hedging. The sensitivity analysis includes the effects of currency hedges of net investments in foreign entities and assumes that no changes take place other than a single currency exchange rate movement on 31 December each year. Hedged translation exposure in Equity As at 31 December EUR million 2025 2024 Translation exposure on equity in USD area1 1,607 1,799 EUR/USD equity hedges2 -255 -289 Translation exposure after hedges 1,352 1,510 Sensitivity before hedges - EUR strengthening 5% -80 -90 Sensitivity after hedges - EUR strengthening 5% -68 -75 1 Includes the joint operation Montes del Plata in Uruguay, which has USD as its functional currency. 2 USD denominated bonds classified as hedges of net investments in foreign assets. Liquidity and refinancing risk Liquidity risk arises from the difficulty of obtaining finance for operations at a given point in time. Stora Enso’s financial risk policy states that the average maturity of outstanding loans and committed credit facilities covering short-term borrowings should be at least four years. The policy further states that the Group must have cash equivalents and undrawn committed credit facilities to cover all debt maturing within the next 12 months, including supply chain financing and factoring. At 31 December 2025, undrawn committed credit facilities and undrawn loans were at EUR 800 (EUR 1,235) million. The credit facilities are used as a backup for general corporate purposes and are fully undrawn. Funding events from 2025 are described in more detail in note 5.3 Interest-bearing assets and liabilities. As disclosed in note 4.8, the Group has entered into several supply finance agreements to improve the Group’s working capital. The finance providers are in good financial condition and the Group has no significant concentration of liquidity risk with the finance providers. The Group’s supplier finance agreements are discussed in more detail in note 4.8 Refinancing risk, or the risk that maturing debt is not refinanced in the markets, is mitigated by Stora Enso’s target of maintaining an even maturity profile of outstanding debt. The table below shows maturity analysis for the Group’s contractual financial liabilities classified under principal headings based on the remaining period to contractual maturity at the reporting date. Forward interest rates as at the year-end were used for estimating contractual finance charges for the upcoming years. The table includes the respective assets and liabilities classified as held for sale. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 171 ===== SIDA 172 ===== Contractual maturity repayments of financial liabilities, settlement net: 2025 EUR million 2026 2027 2028 2029 2030 2031+ Total Bond loans 92 598 554 500 500 295 2,539 Loans from credit institutions 100 109 48 60 142 358 817 Lease liabilities 60 57 51 43 36 215 463 Other non-current financial liabilities 0 0 0 0 0 1 1 Non-current borrowings including current portion 253 764 653 603 678 869 3,819 Estimated contractual finance charges 122 110 95 73 49 170 619 Estimated contractual lease charges 20 18 17 16 15 116 203 Contractual repayments on non-current borrowings 394 892 765 692 743 1,155 4,641 Current borrowings, carrying amounts 609 0 0 0 0 0 609 Gross-settled derivative liabilities - receipts -2,119 -34 0 0 0 0 -2,153 Gross-settled derivative liabilities - payments 2,079 33 0 0 0 0 2,112 Trade payables 1,804 0 0 0 0 0 1,804 Bank overdrafts 5 0 0 0 0 0 5 Estimated contractual finance charges 15 0 0 0 0 0 15 Total contractual repayments at 31 December 2025 2,788 891 765 692 743 1,155 7,033 Contractual maturity repayments of financial liabilities, settlement net: 2024 EUR million 2025 2026 2027 2028 2029 2030+ Total Bond loans 430 587 582 540 500 826 3,466 Loans from credit institutions 577 255 104 4 4 35 979 Lease liabilities 83 59 54 48 44 257 545 Other non-current financial liabilities 0 1 0 0 0 0 2 Non-current borrowings including current portion 1,090 903 741 592 548 1,119 4,992 Estimated contractual finance charges 163 123 88 73 53 168 668 Estimated contractual lease charges 27 24 23 21 20 162 276 Contractual repayments on non-current borrowings 1,281 1,050 851 686 620 1,449 5,936 Short-term borrowings, carrying amounts 689 0 0 0 0 0 689 Gross-settled derivative liabilities - receipts -1,333 -225 0 0 0 0 -1,558 Gross-settled derivative liabilities - payments 1,370 232 0 0 0 0 1,602 Trade payables 1,781 0 0 0 0 0 1,781 Bank overdrafts 7 0 0 0 0 0 7 Estimated contractual finance charges 14 0 0 0 0 0 14 Total contractual repayments at 31 December 2024 3,808 1,057 851 686 620 1,449 8,471 Financial transactions counterparty credit risk Financial counterparty risk is the risk of fluctuations in the value of the Group’s assets as a result of counterparties being unable to meet their obligations arising from financial contracts. The exposure to a financial counterparty risk is measured as the maximum loss that Stora Enso can suffer directly in the event of a single counterparty’s credit default. This risk is minimised by: • entering into transactions only with leading financial institutions and with industrial companies that have a good credit rating; • only investing in liquid funds and deposits with financial institutions or companies that have a minimum credit rating of A-3 or BBB-; • at least the higher of 50% of cash equivalents, or EUR 150 million, of cash equivalents to be held at counterparties with a minimum rating of A- or equivalent using credit ratings from main rating agencies; • investing at least EUR 75 million of the Group’s cash and cash equivalents at counterparties other than the counterparty at which most of Stora Enso’s cash and cash equivalents are held; • requiring parent company guarantees when dealing with any subsidiary of a rated company. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 172 ===== SIDA 173 ===== The Group Financial Risk Policy defines the limits for accepted counterparty risk, based on the tenor of financial contract and counterparty’s credit rating. At the year end 2025, there were no significant concentrations of risk with respect to counterparties of derivative contracts, with the highest counterparty mark-to-market exposure being at EUR 22 (-8) million and credit rating of AA- (A+) using Standard and Poor’s credit rating symbols. Customer credit risk Customer credit risk is Stora Enso’s exposure to contracts arising from deterioration in the financial health of its customers. The Group uses various measures to reduce customer credit risks, including, but not limited to, letters of credit, prepayments and bank guarantees. The Group has also obtained export guarantees, covering both political and commercial risks, which are used in connection with individual customers outside the OECD area. Management considers that no significant concentration of credit risk with any individual customer, counterparty or geographical region exists for Stora Enso. The ageing information of trade receivables and related loss allowances are given in note 4.7 Operative receivables. Commodity price risk Outstanding commodity hedges As at 31 December 2025 As at 31 December 2024 Underlying amount of commodity hedged Average hedged commodity price Nominal amount hedged in EUR million Fair value EUR million Underlying amount of commodity hedged Average hedged commodity price Nominal amount hedged in EUR million Fair value EUR million Electricity purchases - Nordic region 1,445,400 MWh EUR 37.9 55 2 2,242,560 MWh EUR 37.3 84 -1 Oil purchases 213,500 barrels USD 67.5 12 -2 208,089 barrels USD 72.9 15 -1 The Group is exposed to commodity and energy price volatility that will have an impact on the Group’s profitability. Electricity, natural gas and oil hedge derivatives are part of energy price risk management in the Group, whilst other commodity risks are measured and hedged if economically possible. In addition to electricity hedge derivatives, the Group also manages energy price risk by entering into long-term physical fixed price purchase agreements, and by holding a 16.5% stake in Pohjolan Voima Oy (PVO), which is a privately owned Group of companies in the energy sector in Finland. The fair value of the shares amounted to EUR 870 (EUR 570) million as per the year-end. The fair value of these shares is dependent on electricity market prices and discussed in more detail in note 4.4 Equity instruments. A 10% movement in energy and raw material prices would result in a EUR 7 (EUR 10) million change in the fair value of commodity financial hedges described in the above table. The majority of these fair value changes, after taxes, are recorded directly in Equity under Hedging Reserves, until the contracts mature and the result is entered in the Income statement. These estimates only represent the sensitivity of commodity financial instruments to market risk and not the Group’s full exposure to raw material and energy price risks as a whole, since the actual underlying purchases are not financial instruments within the scope of the IFRS 7 standard. At the end of 2025, the maturities of the energy and commodity contracts, including both financial hedges and fixed-price physical purchase agreements, ranged between 2026 and 2028. In 2024, the maturities ranged between 2025 and 2027. In an effort to mitigate other commodity price risk exposures in relation to wood fiber price risk, the Group is a significant owner of forest assets in the Nordic region. In Sweden the Group owns 1.2 million hectares of forest land. In addition, Stora Enso holds 41% share in Tornator Oyj, which is a significant forest owner in Finland. The Group’s share in Tornator is reported as an associate company and discussed in more detail in note 4.3 Associates. The Group’s forest assets are discussed in more detail in note 4.2 Forest assets. Equity price risk The Group had certain investments in publicly traded securities. These related to Packages Ltd shares in Pakistan. These shares were disposed during 2025. More details on the publicly traded securities can be found from note 4.4 Equity instruments. Capital risk management Stora Enso’s debt structure is focused on capital markets and commercial banks. Group objectives when managing capital are to safeguard the ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, as well as to maintain an optimal capital structure to maintain reasonable cost of capital. In order to maintain or adjust the capital structure, the Group may, subject to shareholder approval as appropriate, vary the dividends paid to shareholders, buy its own shares on financial markets, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group strives to pay stable dividends linked to the long-term performance with the aim of distributing 50% of Earnings per share (EPS) excluding fair valuations over the cycle. The Group monitors its capital on the basis of a target net debt-to-equity ratio of 0.60 or less, and aiming that the Net-debt-to-adjusted EBITDA ratio remains below 1.0, indicating a solid financial position and financial flexibility. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 173 ===== SIDA 174 ===== Capital structure As at 31 December EUR million 2025 2024 Interest-bearing liabilities1 4,473 5,779 Interest-bearing assets1 1,293 2,072 Net debt 3,181 3,707 Equity attributable to owners of the parent 10,796 10,139 Adjusted EBITDA2 1,144 1,223 Net debt to equity ratio 0.29 0.37 Net debt to adjusted EBITDA 2.8 3.0 1 Interest-bearing liabilities and assets in the table include the respective amounts classified as held for sale. More detailed reconciliation of net debt is included in the “Alternative performance measures” chapter in the Report of the Board of Directors. 2 Adjusted EBITDA definition is included in the “Alternative performance measures” chapter in the Report of the Board of Directors. The Group does not have any borrowings subject to financial covenants. 5.2 Fair values Accounting principles Financial assets The Group classifies its financial assets into three categories, which are amortised cost, fair value through other comprehensive income and fair value through profit and loss. The classification is made according to the IFRS 9 standard and management determines the classification of investments at the time of initial recognition. Investments in debt instruments are classified based on the business model and the nature of their cash flows. If the goal is to hold the instruments to collect contractual cash flows – consisting solely of principal and interest – they are measured at amortised cost and reported under current or non-current assets. If the objective includes both collecting cash flows and selling the instruments, and the cash flows are also solely principal and interest, they are classified at fair value through other comprehensive income and similarly presented in the statement of financial position. The Group’s investments into equity instruments, such as listed and unlisted securities, are classified as fair value through profit and loss unless the Group has at inception decided to apply the irrevocable election under IFRS 9 to classify the investments as fair value through other comprehensive income with only dividend income from the investments being recognised in the income statement. Investments that are not measured at amortised cost or at fair value through other comprehensive income are classified as fair value through profit and loss and are therefore fair valued through the consolidated income statement and presented under current or non-current assets in the consolidated statement of financial position. Financial liabilities The Group’s financial liabilities are classified into amortised cost or fair value through profit and loss categories. Financial liabilities are measured at amortised cost unless the Group has decided to apply a fair value option to designate a financial liability to be measured at fair value through profit and loss. Derivatives Derivative financial assets and liabilities are measured at fair value and classified as fair value through profit and loss or, if the Group has applied hedge accounting, at fair value through other comprehensive income according to the IFRS 9 standard. Derivative financial instruments and hedge accounting are discussed in more detail in note 5.4 Derivatives. Fair value of financial instruments The fair values of publicly traded derivatives and listed securities, are based on quoted market prices at the reporting date; the fair values of interest rate swaps are calculated as the present value of the estimated future cash flows, and the fair values of foreign exchange forward contracts are determined using forward exchange rates at the reporting date. The valuation principles for derivative financial instruments have been described in more detail in note 5.4 Derivatives. In assessing the fair values of non-traded derivatives and other financial instruments, the Group uses a variety of methods and makes assumptions based on the market conditions at each reporting date. Quoted market prices or dealer quotes for identical or similar instruments are used for non-current debt. Other techniques, such as option pricing models and estimated discounted value of future cash flows, are used to determine fair values for the remaining financial instruments. The face values, less any estimated credit adjustments, for financial assets and liabilities with a maturity of less than one year are assumed to approximate their fair values. The fair values of financial liabilities for disclosure purposes are estimated by discounting the future contractual cash flows at the current market interest rates available to the Group for similar financial instruments. Purchases and sales of financial instruments are recognised based on trade date accounting, which is the date on which the Group commits to purchasing or selling the financial instrument. Financial instruments are derecognised when the rights to receive or the cash flows from the financial instruments have expired or have been transferred and the Group has substantially transferred all risks, rewards and obligations of the ownership of the financial asset or liability. Fair value hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: • Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities; • Level 2: other techniques, for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; • Level 3: techniques which use inputs which have a significant effect on the recorded fair values that are not based on observable market data. The Group evaluates the categorisation of its fair value measurements within the fair value hierarchy on a regular basis at the end of the reporting period. There were no transfers recognised in the fair value hierarchy between Levels 1 and 2 and no transfers into or out of Level 3 fair value measurements during 2025 and 2024. See note 4.4 Equity instruments for more information on Level 3 fair value measurement of unlisted securities. Critical accounting estimates and judgement Where the fair value of financial assets and liabilities cannot be derived directly from publicly quoted market prices, other valuation techniques, such as discounted cash flow models, transaction multiples, the Black and Scholes model and the Gordon model, are applied. The key judgements include future cash flows, credit risk, volatility and changes in assumptions about these factors which could affect the reported fair value of the financial instruments. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 174 ===== SIDA 175 ===== Carrying amounts of financial assets and liabilities by measurement and fair value categories: 2025 Fair value hierarchy EUR million Amortised cost Fair value through OCI Fair value through income statement Total carrying amount Fair value Level 1 Level 2 Level 3 Note Financial assets Listed securities — — — — — — — — 4.4 Unlisted securities — 896 17 912 912 — — 912 4.4 Non-current interest-bearing receivables 11 3 — 14 14 — 3 — 5.3 Derivative assets — 3 — 3 3 — 3 — Loan receivables 11 — — 11 11 — — — Trade and other operating receivables 543 50 — 593 593 — 50 — 4.7 Current interest-bearing receivables 10 49 8 67 67 — 57 — 5.3 Derivative assets — 49 1 50 50 — 50 — Other short-term receivables 10 — 7 17 17 — 7 — Cash and cash equivalents 1,212 — — 1,212 1,212 — — — Total 1,774 999 25 2,798 2,798 — 111 912 Fair value hierarchy EUR million Amortised cost Fair value through OCI Fair value through income statement Total carrying amount Fair value Level 1 Level 2 Level 3 Note Financial liabilities Non-current interest-bearing liabilities 3,556 1 — 3,557 3,718 — 1 — 5.3 Derivative liabilities — 1 — 1 1 — 1 — Non-current debt 3,556 — — 3,556 3,718 — — — Current portion of non-current debt 253 — — 253 253 — — — 5.3 Current interest-bearing liabilities 649 3 7 659 659 — 10 — 5.3 Derivative liabilities — 3 7 10 10 — 10 — Current debt 649 — — 649 649 — — — Trade and other operative payables 2,013 — — 2,013 2,013 — — — 4.8 Bank overdrafts 5 — — 5 5 — — — Total 6,475 4 7 6,486 6,648 — 11 — In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion. Carrying amounts of financial assets and liabilities by measurement and fair value categories: 2024 Fair value hierarchy EUR million Amortised cost Fair value through OCI Fair value through income statement Total carrying amount Fair value Level 1 Level 2 Level 3 Note Financial assets Listed securities — 11 — 11 11 11 — — 4.4 Unlisted securities — 587 15 602 602 — — 602 4.4 Non-current interest-bearing receivables 9 5 — 14 14 — 5 — 5.3 Derivative assets — 5 — 5 5 — 5 — Loan receivables 9 — — 9 9 — — — Trade and other operative receivables 626 42 — 668 668 — 42 — 4.7 Current interest-bearing receivables 38 9 1 47 47 — 10 — 5.3 Derivative assets — 9 1 10 10 — 10 — Other short-term receivables 38 — — 38 38 — — — Cash and cash equivalents 1,999 — — 1,999 1,999 — — — Total 2,672 654 16 3,342 3,342 11 57 602 Fair value hierarchy EUR million Amortised cost Fair value through OCI Fair value through income statement Total carrying amount Fair value Level 1 Level 2 Level 3 Note Financial liabilities Non-current interest-bearing liabilities 3,889 5 — 3,894 4,129 — 5 — 5.3 Derivative liabilities — 5 — 5 5 — 5 — Non-current debt 3,889 — — 3,889 4,124 — — — Current portion of non-current debt 1,090 — — 1,090 1,090 — — — 5.3 Current interest-bearing liabilities 744 42 2 788 788 — 44 — 5.3 Derivative liabilities — 42 2 44 44 — 44 — Current debt 744 — — 744 744 — — — Trade and other operative payables 2,005 — — 2,005 2,005 — — — 4.8 Bank overdrafts 7 — — 7 7 — — — Total 7,735 47 2 7,784 8,019 — 50 — In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective portion. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 175 ===== SIDA 176 ===== In the previous tables, the fair value is estimated to be equal to the carrying amount for current financial assets and financial liabilities, such as trade receivables and payables due to their short time to maturity and limited credit risk. The fair value of non-current loan receivables, considered as a level 2 fair value measurement, is based on the discounted cash flow analysis. The fair value of non-derivative interest- bearing liabilities, considered as a level 2 fair value measurement, is estimated based on a discounted cash flow analysis in which the yield curves observable at commonly quoted intervals are used as a discount factor in the model. Reconciliation of level 3 fair value measurement of financial assets and liabilities EUR million 2025 2024 Financial assets Opening balance at 1 January 602 810 Reclassifications 0 0 Gains/losses recognised in income statement 1 0 Gains/losses recognised in other comprehensive income 300 -205 Additions 13 0 Disposals -3 -3 Closing balance at 31 December 912 602 The Group did not have level 3 financial liabilities as at 31 December 2025. 5.3 Interest-bearing assets and liabilities Accounting principles Interest-bearing assets - loan receivables Loan receivables are debt instruments with fixed or determinable payments that are not quoted on an active market. They are recorded initially at fair value and subsequently measured at an amortised cost. Loss allowance for expected credit losses is calculated based on the general approach under IFRS 9, where loss allowance is recognised based on 12-month expected credit losses if there has not been a significant increase in credit risk since the initial recognition. A significant increase in the credit risk will be evaluated based on a comparison of the risk of a default occurring on the financial instrument as at the reporting date with the risk of default occurring on the financial instrument as at the date of initial recognition. The Group may use, for example, rates of credit default swaps (CDS) observable on financial markets to produce the risk assessment. Interest income on loan receivables is included in financial income and expense. Loan receivables with a maturity less than 12 months are included in current assets under interest-bearing receivables, and those with maturities greater than 12 months, in non-current interest-bearing receivables. Interest-bearing liabilities Interest-bearing liabilities are recognised initially at fair value, net of transaction costs incurred. In subsequent periods, interest-bearing liabilities are measured at amortised cost using the effective interest method. Any difference between the proceeds net of transaction costs and redemption value is recognised in the consolidated income statement over the maturity period of the borrowings. Interest expenses are accrued for and recorded in the consolidated Income statement for each period. Interest-bearing liabilities with an original maturity greater than 12 months are classified as non-current interest-bearing liabilities in the consolidated statement of financial position, though repayments falling due within 12 months are presented in current liabilities under the current portion of non-current debt. Short-term commercial paper, bank and other interest-bearing liabilities, for which the original maturity is less than 12 months, are presented in current liabilities under interest- bearing liabilities. Lease liabilities At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Lease liabilities are initially capitalised at the commencement of the lease and measured at the present value of the lease payments that are not paid at the commencement date, discounted using the Group’s incremental borrowing rate. The lease term applied corresponds to the non-cancellable period except in cases where the Group is reasonably certain to exercise renewal option or prolong the contract. The Group allocates the consideration in the contract to each lease component and separates non-lease components if these are identifiable. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease liabilities are subsequently measured at amortised cost using the effective interest method. Lease payment is allocated between the capital liability and finance charges to achieve a constant interest rate on the outstanding liability balance. Lease liabilities are remeasured mainly when there is a change in future lease payments arising from a change in an index or rate, or if there is a change in the Group’s assessment whether it will exercise an extension option. When lease liability is remeasured, a corresponding adjustment is generally made to the carrying amount of the right-of-use asset. The Group has elected not to recognise lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low value assets. Leases of low value assets mainly include IT and office equipment, certain vehicles and machinery and other low value items. The Group recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term. For more information about critical accounting estimates and judgement related to leases, see note 4.1 Intangible assets, property, plant and equipment and right-of- use assets Managing Interest Rate Benchmark Reform and associated risks The Group monitors the transition process from IBORs to new benchmark rates by reviewing the total number of contracts that have yet to transition to an alternative benchmark rate. The Group’s financial instruments are mainly indexed to Euribor and Stibor reference rates which are expected to continue to exist for now. All interest-bearing liabilities have been transitioned to follow new benchmark rates. There has been no significant impact on the Group from the change. Interest-bearing assets EUR million 2025 2024 Listed securities 0 11 Long-term derivative assets 3 5 Long-term deposits 0 0 Long-term loans to associated companies 3 2 Other long-term loan receivables 8 7 Total non-current interest-bearing assets 14 25 Short-term derivative assets 50 9 Current portion of long-term deposits 0 22 Other short-term loan receivables 17 16 Cash and cash equivalents 1 1,212 1,999 Total current interest-bearing assets 1,279 2,047 Total interest-bearing assets 1,293 2,072 1 EUR 9 (7) million of cash and cash equivalent balances are held by the Group’s subsidiaries in jurisdictions where the transfer of funds across borders is subject to foreign exchange control regulations. As a result, cash and cash equivalents held in these jurisdictions may not be immediately or freely available for general use by the Group. The annual average interest income rate for deposits and loan receivables during the year was approximately 2.1% (3.4%). Current interest-bearing receivables included EUR 9 (EUR 6) million accrued interest at 31 December 2025. The Group has evaluated that there has not been a significant increase in credit risk related to interest-bearing deposits and investments after the initial recognition. Accordingly, the loss allowance is recognised based on 12-month expected credit losses. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 176 ===== SIDA 177 ===== Interest-bearing liabilities EUR million 2025 2024 Bond loans 2,530 3,454 Loans from credit institutions 815 978 Lease liabilities 463 545 Long-term derivative financial liabilities 1 5 Other non-current liabilities 1 2 Non-current interest-bearing liabilities including current portion 3,809 4,985 Short-term borrowings 609 689 Interest payable 46 55 Short-term derivative financial liabilities 4 44 Bank overdrafts 5 7 Total interest-bearing liabilities 4,473 5,779 EUR million 2025 2024 Carrying value at 1 January 5,779 5,780 Additions in long-term debt, companies acquired 69 0 Proceeds of new long-term debt 489 19 Repayment of long-term debt -1,647 -176 Additions in lease liabilities 50 82 Repayment of lease liabilities and interest -96 -85 Change in short-term borrowings -50 69 Change in interest payable 10 23 Change in derivative financial liabilities -44 42 Disposals and classification as held for sale 0 -2 Other -32 15 Translation differences -55 11 Total interest-bearing liabilities 4,473 5,779 Events during 2025 and 2024 During 2025, Stora Enso continued to actively manage its debt portfolio. The Group repaid EUR and USD nominated bank loans totalling E U R 1 6 0 m i l l i o n i n t h e f i r s t q u a r t e r a n d S E K - d e n o m i n a t e d b o n d s a m o u n t i n g t o E U R 2 8 3 m i l l i o n i n t h e s e c o n d q u a r t e r . I n t h e s a m e p e r i o d , a p r e v i o u s l y u n d r a w n E U R 4 3 5 m i l l i o n a m o r t i s i n g l o a n f r o m t h e E u r o p e a n I n v e s t m e n t Bank was drawn, with final maturity in 2037. I n t h e s e c o n d h a l f o f t h e y e a r , S t o r a E n s o r e p a i d a E U R 1 2 5 m i l l i o n b o n d a n d r e d u c e d i n t e r e s t - b e a r i n g l i a b i l i t i e s f u r t h e r b y r e p a y i n g E U R 2 0 0 m i l l i o n o f b a n k l o a n s a n d E U R 3 6 m i l l i o n o f S E K - d e n o m i n a t e d b o n d s a t m a t u r i t y . I n addition, the Group executed early debt repayments, including a EUR 5 0 0 m i l l i o n b o n d r e p u r c h a s e d b e f o r e m a t u r i t y t h r o u g h a m a k e - w h o l e p r o c e s s a n d E U R 2 5 0 m i l l i o n o f b a n k l o a n s s e t t l e d a h e a d o f s c h e d u l e . During the second quarter of 2024, Stora Enso signed extensions of one to two years for a total of EUR 350 million of its existing bilateral loans. The Company also signed a two-year extension to its EUR 100 million committed credit facility. During 2024, Stora Enso’s total repayments of SEK bond notes amounted to a nominal of EUR 135 million. Interest-bearing liabilities – maturities, interest rates and currency breakdown Stora Enso’s borrowings maturities range from 2026 to the longest borrowing maturing in 2039. The Company’s borrowings have either fixed or floating interest rates ranging from 0.6% (0.6%) to 7.3% (7.3%). Stora Enso’s average interest rate on borrowings for the full year 2025 amounted to 3.8% (4.1%) with a run-rate of 4.0% as per the year end. Part of Stora Enso’s borrowings have been fixed through floating-to-fixed interest rate swaps. The majority of Group loans are denominated in euros, US dollars, Swedish crowns or Chinese renminbis. Detailed maturity analysis of the Group’s borrowings are set out in note 5.1 Financial risk management. Net debt In 2025 net interest-bearing liabilities decreased by EUR 526 (increased by EUR 540) million to EUR 3,181 (3,707) million. Net interest-bearing liabilities are equal to total interest-bearing liabilities less total interest-bearing assets such as cash equivalents and deposits. Cash and cash equivalents net of overdrafts decreased by EUR 786 (decreased by EUR 472) million to EUR 1,206 (1,993) million as at 31 December 2025. In 2025, the total cash outflow for leases was EUR 96 (85) million including interest component of EUR 20 (25) million. The ratio of net debt to the last 12 months’ adjusted EBITDA was 2.8 (3.0). The net debt/equity ratio was 0.29 (0.37) as per the year-end. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 177 ===== SIDA 178 ===== Bond loans Issue/ Maturity Dates Description of Bond Interest Rate % Currency of Bond Nominal Value Issued Outstanding As at 31 December Carrying Value As at 31 December 2025 2024 2025 2024 All Liabilities are Held by the Parent Company Currency million EUR million Fixed Rate 2006-2036 Global 7.250% Notes 2036 7.25 USD 300 300 300 253 287 2017-2027 Euro Medium Term Note 2.50 EUR 300 300 300 300 300 2018-2028 Euro Medium Term Note 2.50 EUR 300 300 300 299 299 2020-2025 Euro Medium Term Note (Green Bond) 2.375 SEK 1,550 0 1,550 0 135 2020-2030 Euro Medium Term Note (Green Bond) 0.625 EUR 500 500 500 497 496 2023-2025 Euro Medium Term Note (Green Bond) 4.75 SEK 400 0 400 0 35 2023-2026 Euro Medium Term Note (Green Bond) 4.00 EUR 500 0 500 0 499 2023-2029 Euro Medium Term Note (Green Bond) 4.25 EUR 500 500 500 498 498 2023-2027 Euro Medium Term Note (Green Bond) 4.75 SEK 600 600 600 55 52 2023-2028 Euro Medium Term Note (Green Bond) 5.00 SEK 2,250 2,250 2,250 208 196 Total Fixed Rate Bond Loans 0 2,110 2,797 Floating Rate 2015-2025 Euro Medium Term Note Euribor+2.25 EUR 125 0 125 0 125 2015-2027 Euro Medium Term Note Euribor+2.35 EUR 25 25 25 25 25 2019-2026 Euro Medium Term Note (Green Bond) Stibor+1.60 SEK 1,000 1,000 1,000 92 87 2020-2025 Euro Medium Term Note (Green Bond) Stibor+2.20 SEK 1,550 0 1,550 0 135 2023-2027 Euro Medium Term Note (Green Bond) Stibor+1.25 SEK 2,350 2,350 2,350 217 205 2023-2028 Euro Medium Term Note (Green Bond) Stibor+1.60 SEK 500 500 500 46 44 2023-2033 Euro Medium Term Note Stibor + 2.20 SEK 425 425 425 39 37 Total Floating Rate Bond Loans 420 658 Total Bond Loans 2,530 3,454 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 178 ===== SIDA 179 ===== 5.4 Derivatives Accounting principles Derivative financial instruments and hedge accounting Derivative financial instruments are initially recognised in the consolidated statement of financial position at fair value and subsequently measured at their fair value at each reporting date according to valuation methods described in this note. Derivative contracts with maturity greater than 12 months are classified as non-current interest-bearing receivables and liabilities, and contracts maturing within 12 months are presented under current interest-bearing receivables and liabilities. When derivative contracts are entered into, the Group designates them as either hedges of highly probable forecast transactions or firm commitments (cash flow hedges), hedges of the exposure to changes in the fair value of recognised assets or liabilities (fair value hedges), hedges of net investments in foreign entities, or derivative financial instruments not meeting the hedge accounting criteria in accordance with IFRS 9. The method of recognising the resulting gains or losses on derivative instruments is dependent on the nature of the item being hedged. At the inception of a hedge, the Group documents the relationship between the hedging instrument and the hedged item, as well as its risk management objective and strategy for undertaking various hedging transactions. This process includes linking all financial instruments designated under hedge accounting to specific assets and liabilities or to specific firm commitments or highly probable forecast transactions in order to verify and document the hedge relationship between the hedged item and the hedging instrument as required by IFRS 9. The Group also documents its qualitative prospective assessment at the hedge inception of whether the derivatives used in a hedge relationship are highly effective in offsetting changes in fair value or cash flows of hedged items. Hedge effectiveness will be assessed in accordance with IFRS 9 requirements. The hedge ratio used for hedging relationships is usually 1:1. For currency and commodity hedging purposes, the Group uses a hedge designation where the critical terms of the hedging instrument and the hedged item will coincide in terms of the notional amount and timing. In respect of interest rate hedging, the interest rate basis between swap contracts and underlying debt will coincide. Since the critical terms of the hedges and underlying risks match, the hedging instruments are considered to offset any changes related to the anticipated transactions. Potential sources of ineffectiveness that may be expected to occur in relation to currency and commodity hedges are mainly related to the forecasted transaction not occurring in the amount or at the time expected. For interest rate hedges, cross-currency basis spread or initial fair value of the hedging instrument at the date of hedge designation may result in ineffectiveness being recognised in the income statement. Potential sources of ineffectiveness for all the aforementioned hedges also include possible effects of credit risk dominating fair value changes arising from the hedging instrument and the hedged item designated under the hedging relationship. Cash flow hedges Derivatives used in currency cash flow hedges are mainly forward contracts and options, with swaps mainly used for commodity and interest rate hedging purposes. Changes in the fair value of derivatives designated and qualifying as cash flow hedges, and which are effective, are recognised in a separate equity category of OCI cash flow hedges reserve, the movements of which are disclosed in the consolidated statement of comprehensive income. For foreign exchange forwards, both the spot element and forward points have been included to the hedge designation. In case of foreign exchange options, the time value of an option is excluded from the hedge designation and only the intrinsic value component of an option is designated as the hedging instrument. The changes in option time value are recognised in a cost of hedging reserve within OCI. The cumulative gain or loss of a derivative deferred in equity is transferred to the consolidated income statement and classified as an income or expense in the same period in which the hedged item affects the consolidated income statement. The unrealised gains and losses related to cash flow hedges are expected to be recycled through the income statement within one to four years with the longest hedging contract maturing in 2027 (2026). However, the majority of the contracts are expected to mature in 2026. Realised results of hedge accounted derivative instruments hedging foreign currency sales transactions or purchases are booked as adjustments to sales or materials and services, depending on the nature of the underlying hedged item. In respect of hedges of exposures to foreign currency risk of future transactions resulting in the recognition of non-financial assets, the gains and losses deferred to the cash flow hedges reserve within OCI are transferred from equity to be included in the initial acquisition cost of the non-financial asset at the time of recognition. The Group may hedge foreign-currency risk of external or internal foreign-currency purchases where the underlying amount purchased in a foreign-currency impacts the value of inventory in a local currency. In such cases the gains and losses are initially booked as an adjustment to raw material inventory and recycled further to finished goods inventory with being ultimately recognised in the consolidated income statement at the time when the hedged items are sold to an external customer. In case of non-current assets, the deferred amounts are ultimately recognised in the income statement through depreciation over the lifetime of the non-financial assets. When a hedging instrument expires or is sold, terminated or exercised or no longer meets the hedge accounting criteria under IFRS 9, any cumulative gain or loss deferred in equity at that time remains in equity and is accounted for as an adjustment to income or expense when the committed or forecast transaction is ultimately recognised in the consolidated income statement. However, if the underlying forecasted transaction is no longer expected to occur, the cumulative gain or loss reported in equity from the period when the hedge was effective is immediately recognised in the consolidated income statement. Fair value hedges In case of fair value hedges, the Group uses either derivatives or borrowings as a hedging instrument to manage the risk associated with the fair value of a hedged item. The gains and losses on hedging instruments designated and qualifying as fair value hedges, and which are highly effective, are recorded in the consolidated income statement, along with any changes in the fair value of the hedged assets or liabilities attributable to the hedged risk. As at the end of 2025, the Group did not have fair value hedges. Net investment hedges For hedges of net investments in foreign entities, the Group uses either derivatives or foreign-currency borrowings for this purpose. If the hedging instrument is a derivative, any gain or loss thereon relating to the effective portion of the hedge is recognised in equity in CTA as disclosed in the consolidated statement of comprehensive income; the gain or loss relating to the ineffective portion is immediately recognised in the consolidated income statement. In addition, exchange gains and losses arising on the translation of a foreign-currency borrowing that hedges net investment in a foreign operation are also recognised in CTA, with any ineffective portion being immediately recognised in the consolidated income statement. The gains and losses recognised in CTA are recycled from equity to the consolidated income statement at the time when the underlying hedged net investment is disposed. Non-hedge accounted derivatives Certain derivative transactions, while providing effective economic hedges under Group risk management policies, do not qualify for hedge accounting under the specific rules in IFRS 9 and therefore changes in the fair value of such non-qualifying hedges are accounted for at fair value in the consolidated income statement. For non-hedge accounted derivatives economically hedging foreign-currency risk of net of operative receivables and payables, the fair value changes are recognised in operating result under other operating income and expense. For other non-hedge accounted derivatives, the fair value changes are recognised in the consolidated income statement under financial income and expense. Valuation of derivatives Derivative financial instruments are recorded in the statement of financial position at their fair values defined as the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date. The fair values of such financial items have been estimated on the following basis: • Foreign exchange forward contract fair values are calculated using forward exchange rates at the reporting date. • Foreign exchange option contract fair values are calculated using reporting date market rates together with common option pricing models. • Commodity contract fair values are computed with reference to quoted market prices on futures exchanges or other reliable market sources. • Interest rate swaps fair values are calculated using a discounted cash flow method. • Cross-currency swaps fair values are calculated by using a discounted cash flow method with the exchange of notional also included in the valuation model. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 179 ===== SIDA 180 ===== Total foreign exchange gains and losses in the income statement excluding hedges EUR million 2025 2024 Other operating income -41 27 Other operating expense 27 -18 Borrowings, cash equivalents. lease liabilities and other 25 -22 Total 12 -13 Hedge gains and losses in operating result EUR million 2025 2024 Cash flow hedge accounted derivatives Currency hedges 42 -2 Commodity hedges 10 -5 Total 52 -7 As adjustments to sales 33 -5 As adjustments to materials and services 19 -1 Realised from OCI through income statement 52 -7 Currency hedges ineffectiveness 2 1 Net gains/losses from cash flow hedges 54 -6 Non-hedge accounted derivatives Net receivable hedges 1 -3 Net gains/losses on non-hedge accounted derivatives 1 -3 Net hedge gains/losses in operating result 55 -9 In 2025, certain forecasted future transactions were no longer expected to occur, and due to this hedge accounting was ceased for those transactions. This resulted in a gain of EUR 2 (gain of 1) million being booked in the Group’s operating result and is being presented in the table above as ineffectiveness from cash flow hedges. Hedge gains and losses in financial items EUR million 2025 2024 Non-hedge accounted derivatives Currency derivatives -5 2 Interest rate derivatives 0 0 Net gains/losses on non-hedge accounted derivatives -5 2 Net gains/losses in financial items -5 2 Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 180 ===== SIDA 181 ===== Nominal and fair values of derivative instruments As at 31 December EUR million Nominal values Positive fair values Negative fair values Net fair values Nominal values Positive fair values Negative fair values Net fair values 2025 2024 Currency derivatives Forwards: Operational cash flow hedging 1,752 46 -2 44 1,340 5 -38 -33 Options: Operational cash flow hedging 296 4 0 4 673 1 -6 -5 Total cash flow hedge accounted 2,048 50 -2 48 2,013 7 -44 -38 Forwards: Trade and loan receivables hedging 297 0 -1 -1 515 1 -2 -1 Total non-hedge accounted 297 0 -1 -1 515 1 -2 -1 Total currency derivatives 2,345 50 -3 47 2,528 7 -47 -39 Commodity derivatives Electricity swaps: Costs hedging 55 2 0 2 84 1 -2 -1 Oil swaps: Costs hedging 12 0 -2 -2 15 0 -1 -1 Total cash flow hedge accounted 67 2 -2 1 98 2 -3 -1 Total commodity derivatives 67 2 -2 1 98 2 -3 -1 Interest rate derivatives Interest rate swaps: Financial expenses hedging 117 1 0 1 346 6 0 6 Total cash flow hedge accounted 117 1 0 1 346 6 0 6 Cross-currency swaps: Financial expenses hedging 52 0 0 0 0 0 0 0 Total non-hedge accounted 52 0 0 0 0 0 0 0 Total interest rate derivatives 169 1 0 1 346 6 0 6 Total cash flow hedge accounted 2,232 53 -4 49 2,457 14 -47 -34 Total non-hedge accounted 349 0 -1 -1 515 1 -2 -1 Total derivatives 2,582 54 -5 49 2,973 15 -50 -35 Positive and negative fair values of financial derivative instruments are shown under interest-bearing receivables and liabilities, and non-current interest-bearing receivables and liabilities. The presented fair values in the table include accrued interest and option premiums. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 181 ===== SIDA 182 ===== Changes in fair values of hedged items and hedging instruments 2025 EUR million Change in value of hedged item to determine hedge effectiveness Change in value of outstanding hedging instruments Ineffectiveness Foreign exchange risk - Forward and option contracts (excluding option time value)1 -37 39 2 Foreign exchange risk - Net investment hedges -33 34 0 Commodity price risk - Commodity swaps 6 -8 0 Interest rate risk - Interest rate swaps 4 -4 0 1 Ineffectiveness booked in operating result. Changes in fair values of hedged items and hedging instruments 2024 EUR million Change in value of hedged item to determine hedge effectiveness Change in value of outstanding hedging instruments Ineffectiveness Foreign exchange risk - Forward and option contracts (excluding option time value)1 69 -68 1 Foreign exchange risk - Net investment hedges2 17 -17 0 Commodity price risk - Commodity swaps 5 -5 0 Interest rate risk - Interest rate swaps 10 -10 0 1 Ineffectiveness booked in operating result. 2 Comparison figures restated. Breakdown of cash flow hedging reserve and net investment hedges in equity 2025 EUR million At 1 Jan 2025 Change in fair value recognised in OCI/CTA Reclassified from OCI to profit and loss Reclassified to non-financial assets Tax impact At 31 Dec 2025 Foreign exchange risk - Operational cash flow hedging -30 128 -44 0 -17 37 Commodity price risk - Commodity swaps 0 13 -10 0 -1 1 Interest rate risk - Interest rate swaps 5 -4 0 0 1 1 Interest rate and foreign exchange risk - Cross-currency swaps 0 0 0 0 0 0 Cost of hedging reserve -2 2 0 0 0 0 Total cash flow hedge reserve in OCI -27 139 -54 0 -17 40 Foreign exchange risk - Net investment hedges -7 31 0 0 -6 18 Total net investment hedges in CTA -7 31 0 0 -6 18 Total hedging reserves -34 170 -54 0 -23 58 Breakdown of cash flow hedging reserve and net investment hedges in equity 2024 EUR million At 1 Jan 2024 Change in fair value recognised in OCI/CTA Reclassified from OCI to profit and loss Reclassified to non-financial assets Tax impact At 31 Dec 2024 Foreign exchange risk - Operational cash flow hedging 25 -70 2 0 14 -30 Commodity price risk - Commodity swaps -1 -5 5 0 0 0 Interest rate risk - Interest rate swaps 13 -10 0 0 2 5 Interest rate and foreign exchange risk - Cross-currency swaps 0 0 0 0 0 0 Cost of hedging reserve 1 -3 0 0 1 -2 Total cash flow hedge reserve in OCI 38 -88 7 0 16 -27 Foreign exchange risk - Net investment hedges 7 -17 0 0 3 -7 Total net investment hedges in CTA 7 -17 0 0 3 -7 Total hedging reserves 45 -105 7 0 20 -34 Financial impact of netting for instruments subject to an enforceable master netting agreement 2025 Not offset in the statement of financial position EUR million Gross amount of recognised financial instruments Related liabilities (-) or assets (+) subject to master netting agreements Collateral received (-) or given (+) Net exposure Derivative assets 54 -3 0 51 Derivative liabilities -5 3 0 -2 Financial impact of netting for instruments subject to an enforceable master netting agreement 2024 Not offset in the statement of financial position EUR million Gross amount of recognised financial instruments Related liabilities (-) or assets (+) subject to master netting agreements Collateral received (-) or given (+) Net exposure Derivative assets 15 -12 0 3 Derivative liabilities -50 12 0 -37 The Group enters into derivative transactions under master netting agreements agreed with each counterparty. In case of an unlikely credit event, such as default, all outstanding transactions under the agreements are terminated, and only a single net amount per counterparty is payable for settlement of all transactions. The agreements do not meet the criteria for offsetting in the statement of financial position, because offsetting is enforceable only in the occurrence of certain future events. Our year 2025 Our strategy Our people Governance Shareholders Report of the Board of Directors Sustainability Statement Financial Statements Appendices ≡ A u d i t e d 182 ===== SIDA 183 =====