Norske Skog (NSKOG) investor relations material

Executive summary

• Achieved record recycled containerboard/packaging paper deliveries of 122,000 tonnes in Q2 2026, with Golbey PM1 ramp-up progressing and first positive EBITDA margin for the segment.

• Group EBITDA reached NOK 73 million, but pre-tax profit was -NOK 163 million, impacted by a strong NOK and lower other operating income.

• Profitability in the containerboard/packaging segment improved due to price increases, efficiency gains, and cost reduction initiatives.

• Received NOK 470 million in energy refunds/CO2 compensation; NOK 780 million from NND property sale expected in Q3 2026.

• Norwegian mills faced negative impact from a stronger NOK.

Financial highlights

• Operating revenue increased from Q1, driven by higher volumes and prices, but total operating income fell to NOK 2,584 million from NOK 2,877 million in Q1 2026.

• EBITDA margin dropped from 15.7% in Q1 2026 to 2.8% in Q2 2026; publication paper EBITDA margin fell to 4%, packaging paper improved to 0%.

• Net interest-bearing debt decreased to NOK 4,295–4,361 million; unrestricted cash at NOK 653–723 million at quarter-end.

• Equity ratio stable at 40–43%.

• Net cash flow from operating activities improved to NOK 273 million from NOK -307 million in the previous quarter.

Outlook and guidance

• Liquidity expected to strengthen further in Q3 with NOK 780 million proceeds from the NND transaction.

• Full utilization of Golbey PM1 and Bruck PM3 anticipated in the first half of 2027.

• Ongoing cost-saving initiatives, focus on working capital, and further cost reductions as pulpwood prices decline.

• Exploring profitable projects and diversification across all mills; decision on Saugbrugs’ direction expected H2 2026.

• Stable to slightly increasing prices expected for publication and containerboard paper in Q3.