Norske Skog ASA

Investor Presentation • Sep 26, 2023

Carnegie environment and profitability seminar

26 September 2023

We create green value

Five high quality industrial sites

Eleven paper machines with supporting infrastructure for energy, fibre and water

Five paper machines Pure-play publication paper machines and exploring future alternatives

Four paper machines Packaging strategy underway with conversion of two paper machines from publication paper to containerboard

Two paper machines Gradual regional exit with sale of Albury, Tasman, Nature's Flame and forest assets

Boyer Australia

Enabling the circular economy

Continuous work to improve environmental reporting and footprint

Scope 1 Scope 2 Per tonne produced

3 1) Industry recycling rate in 2022 (CEPI)

Investing for growth

Energy and containerboard investment programmes near completion

Significant growth investments executed since 2020… … with earnings uplift ahead

• Maintenance capex
• Expansion capex

European shift into packaging

Strategic shift into packaging paper underpinned by energy investments

P Projects at Norske Skog Bruck completed P Projects at Norske Skog Golbey completed during Q2 2024

Waste-to-energy boiler

• Started Q2 2022
• Net capex EUR 72m
• Capacity 50 MW (heat)

Containerboard conversion

• Started Q1 2023
• Net capex EUR 120m
• Capacity 210kt

Biomass boiler JV

• Starting Q2 2024
• Equity share EUR 7m
• Capacity 125 MW

Green Valley Energie is a JV between Norske Skog (10%), Veolia (10%) and Pearl Infrastructure (80%), where Norske Skog will be sole offtaker of steam under a competitive long-term contract

Containerboard conversion

• Starting Q2 2024
• Net capex EUR 265m
• Capacity 550kt

Waste-to-energy providing 430 GWh cost efficient thermal energy

6 1) RDF = Refuse Derived Fuel, is a fuel produced from various types of waste such as municipal solid waste (MSW), industrial waste or commercial waste

• Start Q2 2022 with full utilisation Q1 2023
• Gate fees for receipt of 160kt of RDF¹ at rates of EUR 70-110 per tonne
• Produces 430 GWh (50 MW) thermal energy with containerboard at Bruck as sole offtaker, replacing fossil natural gas
• Large share of CO² emissions from waste-to-energy classified as biogenic
• Operating costs of EUR 8m per year
• Included in Packaging Paper segment and indicated mid-cycle EBITDA effect of around NOK 200m per year

Norske Skog Bruck

Reduced gas consumption and improving economies of scale

7

Green Valley Energie providing 700 GWh green thermal energy

• Green Valley Energie (GVE) biomass plant start-up in Q2 2024
• Sell green electricity to French grid and green steam to Golbey under long-term contracts, replacing fossil natural gas
• ~200 GWh green electricity (25 MW)
• ~700 GWh green steam (87 MW)
• ~235k tonnes waste wood feedstock
• Norske Skog participation of 10% in the GVE joint venture

Norske Skog Golbey

Reduced energy consumption and fully based on recycled paper

Increasing input factor efficiency and strengthening internal supply is important in volatile markets

Higher input costs have naturally led to increased production costs

Underlying¹ total production and distribution cost for Norske Skog NOK per tonne

• Recycled paper costs down from recent highs, but related transportation costs have remained elevated
• Pulpwood costs and related transportation close to all time high
• Electricity and natural gas costs the main drivers of price increases for paper seen 2021-22
  • Increase for Norske Skog less than for competitors as 85-90% of electricity requirement is covered under long-term contracts
  • Norske Skog is also 85-90% covered on thermal energy from own biomass and waste-to-energy boilers
• Other variable costs, comprising mainly coating and other chemicals, early signs of easing from high levels
• Fixed cost per tonne up significantly due to conversion projects at Bruck and Golbey, and rockslide at Saugbrugs. Improved ⁰ competitiveness once all machines are back in full production

Paper prices follow input cost development

Norske Skog well positioned on the cash cost curve

13 Source: RISI mill asset database as of Q2 2023 Note: Columns with striped pattern indicate announced capacity closures by end of 2023 1) RISI cash cost calculation is not equivalent to previous chart on total production and distribution costs

Demand stabilising following significant recent decline

Weak containerboard market because of low demand and excess capacity

Bruck containerboard production cost to improve as machine is ramping up

Outlook

• Raw material and energy costs stabilising, but development remains uncertain
• Paper prices influenced by lower input costs and weak market balance
• Containerboard prices with signs of stabilising, but still a challenging market
• Further capacity closures and industry consolidation required in all markets
• Introduction of Norske Skog Bruck in the recycled containerboard market well underway, but expect negative EBITDA from packaging paper segment in 2023 as production ramps up
• Maintaining a healthy balance sheet, strong liquidity position, and low production costs

We create

green value

Norske Skog ASA Postal address: P.O. Box 294 Skøyen, 0213 Oslo, Norway Visitors: Sjølyst Plass 2, 0278 Oslo, Norway

Phone: +47 22 51 20 20 Email: info@norskeskog.com Email: ir@norskeskog.com

This presentation contains statements regarding the future in connection with Norske Skog's growth initiatives, profit figures, outlook, strategies and objectives . All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements .