Norske Skog ASA

Earnings Release • Oct 21, 2022

Sustainable and innovative industry

Third quarter in brief

Good quarter in turbulent operating environment

EBITDA of NOK 508m, impacted by reduction in CO² compensation, reduced volumes, and higher fixed costs per tonne Adjusted EBITDA of NOK ~580m when adjusting for impact of reduction in CO² compensation for H1 2022

Energy and raw material markets impact production

Quarter impacted by high and some extraordinary costs for energy Production down time in challenging energy and raw material markets

Publication paper capacity reductions from 2022 to 2024

Norske Skog Bruck PM3 stopped production in Q3 2022 to facilitate conversion Industry closures announced in Western Europe support market balance

Solid balance sheet and liquidity

Cash and cash equivalents of NOK 2 047m and leverage ratio of 0.4x Remaining containerboard capex of EUR 235m vs. total available liquidity of EUR 460m

Good quarter despite unpredictable operating conditions and ongoing mill conversion

508

Continued good performance in both segments

5

Solid balance sheet and liquidity

Net debt of NOK 970m

• Net debt / LTM reported EBITDA of 0.4x
• Repurchased EUR 7.8m of EUR 150m bond

Total available liquidity of EUR ~460m Cash of NOK 2 047m (EUR ~195m) 2021 CO² comp. of NOK ~290m (EUR ~30m) Undrawn project debt of EUR ~205m Undrawn RCF of EUR 31m

Remaining capex of EUR ~235m

EUR ~200m of growth investments to date, EBITDA impact over next 1-2 years²

6 1) Cash earnings defined as cash flow from operations less maintenance capex; 2) Includes investments in waste-to-energy facility and packaging paper projects at the Bruck and Golbey industrial sites

Optimising publication paper cash flows and operations

Publication paper capacity

• Four sites in Europe, one in Australia
• In total, 10 publication paper machines
• 1 225k tonnes newsprint
  • Golbey PM1 (235kt) closing for conversion end of Q4'22
• 400k tonnes LWC magazine
• 360k tonnes SC magazine

Targets

Operating rate of +90% EBITDA margin of +10% P P

Energy and raw material market volatility expected to remain through winter months

Source: Nord Pool, European Energy Exchange (EEX), Dutch Title Transfer Facility (TTF), RISI, Miljødirektoratet

Managing European energy exposure in the short and long term

• Waste-to-energy boiler reducing gas with ~0.7 TWh and increasing electricity with <0.2 TWh (annually)
• GVE biomass boiler to supply ~0.7 TWh of cost efficient steam to Golbey from H2'24
• Bruck and Golbey manage production to avoid peak energy prices, and shift maintenance from Q3'22 to Q4'22 due to exceptionally high winter energy prices
• Further cost surcharges implemented from Q4'22 due to unprecedented energy and other costs
• At Golbey, stop PM1 for conversion and permanently stop TMP¹ production in Q4'22 (originally Q2'23), and manage potential surplus contracted energy
• Actively work with energy portfolio, production optimisation, and contracts to navigate unprecedented volatility in energy markets

Nordic market conditions generally favourable versus European environment

• Conversion to containerboard allow temporary reduced exposure to European operating environment
• Norske Skog publication paper capacity increasingly skewed towards Norway, with favourable energy position
• European operations now highly covered by energy contracts and internal

Tough operating conditions and announced closures expected to keep the publication paper market tight

Publication paper price increases necessary to address unprecedented raw material and energy prices

Western European publication paper operating rate and demand

Boyer well equipped to remain a cornerstone of Tasmanian industry

Sole Australasian publication paper mill

Sole domestic supplier with well invested newsprint (150kt) and LWC magazine (135kt) capacity providing 80% market share. Fully covered on domestic sales

EBITDA normalising based on contracts

Improving cash flow visibility through contracts with leading publishers and P printers, as well as electricity and fibre contracts

Established industrial grade infrastructure

Challenging, time-consuming and capital intensive to establish industrial sites of P similar scale as Boyer, due to permitting, lead-times and lack of suitable land

Green energy and industrial manufacturing opportunities

Access to significant land areas, energy, grid capacity, water and fibre supports P investments into renewable energy development and industrial manufacturing

Tasmanian Government with renewable energy ambitions

Tasmania fully supplied with renewable energy and to double capacity by 2040 P (adding 10.5 TWh) to enable ambition of becoming a leading hydrogen exporter

Tasmania

Australia's renewable energy powerhouse

100% self-sufficiency in renewable electricity (hydro, wind) 2x increase (10.5 TWh) in renewable energy output by 2040 2030 ambition to be global green hydrogen exporter

Entering the market for recycled containerboard in four months

Packaging paper capacity

• 760k tonnes recycled containerboard
• In the market from Q1 2023

Targets

• Operating rate of ~95% from 2025-26
• EBITDA margin of +20% Competitive steam supply Centrally located with low transport costs Established raw materials access Ideal machine scale, trim and speed P P P P

Green Valley Energie CHP plant will support Golbey cost competitiveness

Biomass energy

• Biomass energy JV² between Pearl (80%), Veolia (10%) and Norske Skog (10%)
• The JV will sell electricity to the French grid and steam to Norske Skog until 2043
• ~0.7 TWh of cost competitive steam for Golbey's packaging paper operations
• Project is fully financed and construction is ongoing, completion expected in H2 2024

Waste-to-energy facility reducing Bruck cash-cost

Waste-to-energy

• Under commissioning with Valmet
• Reduces gas consumption by ~0.7 TWh and increases electricity by <0.2 TWh
• Enables very competitive steam supply for drying of paper and containerboard

Containerboard market softening, but still attractive for low cash-cost producers

Recycled containerboard prices Germany Western European recycled containerboard operating rate and demand EUR per tonne Million tonnes (and industry operating rate) 1 000 2018 2019 2020 2021 2022 Recycled fluting 105g Testliner 3 140g

Proud to develop a top-notch upper secondary school in Halden

Welcomed 450 students and teachers in August

• Former Saugbrugs paper storage facilities transformed to a modern high school
• Wide spectre of amenities for vocational education, including music studios, concert halls, and wood and mechanic workshops
• 35 year municipality lease (plus extensions) of NOK ~30m annually (100% CPI adjusted), project debt of NOK ~280m
• Norske Skog and Ringstad Gruppen with equal ownership participation in the project

Green energy production and energy efficient operations enable annual surplus of CO² allowances

Enabling the circular economy

Developing climate solutions

• Participating in Borg CO2 industry cluster to develop CCUS² technologies with ambition to capture ~630k tonnes
• Supporting Ocean GeoLoop to develop and pilot its CCUS² technologies to capture close to 100% of CO² from flue gas
• Exploring a range of opportunities within advanced e-fuels, bio-carbon, -chemicals, -additives and -materials

Outlook

• Publication paper market expected to remain tight due to industry capacity closures
• Volatile energy and raw material markets continues to cause operational challenges
• Actively manage energy exposure through Q4 2022 and Q1 2023
• Publication paper price increases for Q4 2022 implemented to address cost increases
• Starting containerboard production at Bruck PM3 in four months (Q1 2023)
• Continued development of existing and potential energy and bio product projects

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.