Norske Skog (NSKOG) investor relations material

Executive summary

• Pre-tax profit reached NOK 120 million in Q3 2025, with year-to-date profit at NOK 610 million and EBITDA at NOK 38 million, down from the prior quarter due to lower paper prices and ramp-up costs at Golbey PM1.

• Formal takeover and ramp-up of Golbey PM1 containerboard machine in France, with 28,000 tons produced and 24,000 tons sold; full utilization expected in H1 2027.

• Profitability was temporarily impacted by ramp-up costs at Golbey PM1 and lower achieved prices in both publication and packaging paper segments.

• Ongoing initiatives to reduce production costs and working capital, with a strong emphasis on sustainability and favorable CDP climate score for 2024.

• Positive impact from higher valuation of Norwegian power contracts partially offset market headwinds.

Financial highlights

• Total operating income for Q3 2025 was NOK 3,101 million, with EBITDA margin at 1% and operating earnings at NOK 193 million.

• Pre-tax profit for Q3 2025 was NOK 120 million, down from NOK 442 million in Q2 2025.

• Net debt rose to NOK 4,243 million, with equity ratio improving to 43%.

• Cash balance decreased to NOK 758 million due to significant CapEx at Golbey PM1; unrestricted cash position was NOK 1,051 million.

• Net cash flow from operating activities was negative NOK 90 million, mainly due to increased working capital.

Outlook and guidance

• Full utilization of Golbey PM1 expected in H1 2027, with remaining CapEx of EUR 15 million and EUR 50 million in energy certificates and grants to be received between 2025 and 2027.

• Ongoing focus on cost reduction and working capital management to maintain competitiveness.

• Operating environment remains uncertain and volatile, with continued pressure on profitability due to raw material price volatility and excess capacity.