Norske Skog (NSKOG) investor relations material

Executive summary

• Record deliveries and improved profitability in packaging paper, with recycled containerboard deliveries reaching 106,000 tonnes in the quarter as Golbey PM1 ramps up.

• Significant operational and financial turnaround, including cost overruns and operational disruptions, with leadership changes and strategic focus on packaging paper expansion.

• Major asset sales and insurance settlements have strengthened the balance sheet and provided liquidity.

• Ongoing cost-saving initiatives and organizational restructuring have reduced FTEs by 200 while maintaining output and improving results.

Financial highlights

• EBITDA reached NOK 451 million, with pretax profit of NOK 236 million, driven by record packaging paper deliveries, one-off gains, and improved operations.

• Net debt stood at NOK 4.5 billion at quarter end, with significant decrease post-quarter supported by energy refunds and asset sale proceeds.

• Equity ratio increased to 41.7%, and interest coverage ratio improved to 4.1x.

• Cash balance at NOK 653 million at end Q1, with significant inflows expected in Q2.

• Operating income rose to NOK 2,877 million from NOK 2,589 million in Q4 2025.

Outlook and guidance

• Full utilization of Golbey PM1 expected in the first half of 2027, with continued ramp-up and cost-saving initiatives across all mills.

• Further price increases anticipated for both publication and packaging paper to offset cost inflation.

• Decision on Saugbrugs' future direction planned for Q2 2026 after completion of rebuild and data center studies.

• Ongoing development projects at all mills, including book paper, PulpFlex, data centre, and biogas projects.

• Continued focus on cost reduction, working capital management, and diversification of revenue streams.