Norske Skog (NSKOG) investor relations material

Executive summary

• Q3 operating income was NOK 3,015m, EBITDA NOK 448m (14.9% margin) and pre-tax profit NOK 251m; EBITDA included a NOK 338m NND property-sale gain.

• Higher energy, fuel and chemical costs and a stronger NOK pressured results; publication paper strength partly offset Golbey PM1 disruptions and input-cost inflation.

• NOK 770m in NND proceeds arrived in early October, strengthening liquidity; NOK 50m relates to dismantling.

• Growth priorities include expanding recycled packaging grades and book paper deliveries; more than 800,000 tons of recycled containerboard have been delivered since market entry.

Financial highlights

• Total operating income was NOK 3,015m, up from NOK 2,584m in Q2; operating earnings were NOK 406m versus a Q2 loss of NOK 83m.

• Net financial items were NOK -154m, including net interest expense of NOK 74m and currency losses of NOK 63m.

• Net cash flow from operations was NOK -36m; working capital increased NOK 47m, mainly from higher receivables. Q3 capex purchases were NOK 44m.

• Net profit was NOK 151m; basic and diluted EPS from continuing operations were NOK 1.78.

Outlook and guidance

• Golbey PM1 stability and ramp-up remain priorities; full utilisation is targeted during 2027, with Q4 2026 improvement expected after operational challenges.

• Saugbrugs PM6 rebuild is expected to start up in H1 2028 after NOK 850m investment; capacity is up to 300kt TMP-based kraftliner or 230kt SC magazine paper.

• PM6 targets cycle EBITDA margins of 10% for SC magazine paper and up to 20% for TMP-based kraftliner.

• Price increases implemented during 2026 are expected to have their full effect in coming quarters; cost reductions, surcharges, working-capital discipline and potential market downtime remain in focus.

• Recycled containerboard prices are expected to rise further in Q4; energy certificates are estimated to have market value of EUR 23m in 2027 and EUR 52m in 2029, depending on certificate prices.