Norske Skog ASA

Investor Presentation • Jul 16, 2021

Q2 2021 presentation 16 July 2021

Sustainable and innovative industry ENTERING

• Leading publication paper producer with five industrial sites globally
• Ongoing transition into higher growth and higher value markets
• Becoming a leading independent European recycled containerboard company in 2023
• Packaging market growth and margin outlook strengthened since announcement
• High return waste-to-energy project improving green energy mix in Q2 2022
• Promising biochemicals and materials projects spearheaded by Circa
• Industrial sites portfolio provide foundation for further industrial development

2 1) Norske Skog is the largest shareholder with ~26% ownership position in Circa; 2) Installed capacity for biofuel and waste from recycled paper of 230 MW

Second quarter in brief

Final investment decision made for Golbey conversion to containerboard

• Golbey containerboard production with start-up in Q4 2023 following Bruck in Q4 2022
• Export credit agency backed financing progressing to plan

EBITDA of NOK 17m at low point before cyclical upturn

▪ Cost increases in second quarter precede price increases impacting results negatively

Costs and tight publication paper markets driving price increases in H2 2021

• Considerable price increase for all product grades in H2 2021
• Additional capacity cuts announced in Q2 2021, further strengthening outlook for H2 2021 and into 2022

Closure of Tasman

• Tasman ceased production on 30 June, restructuring cost of NOK 160m and non-cash loss of NOK 95m from mark-to-market revaluations
• Asset sales process expected to be completed and settled in H2 2021

Pursuing the ambition to become net CO² negative through new technology

▪ Partnership with Ocean GeoLoop to achieve CO² reductions and explore commercial opportunities

Cyclically low EBITDA in challenging price and cost environment

Segment financials for Q2 2021

Segment financials

NOKm	Q2 2021	Q1 2021	Q2 2020	YTD 2021	YTD 2020
Europe
Total operating income	1,872	1,711	1,655	3,582	3,786
EBITDA	14	106	75	120	404
EBITDA margin	0.8%	6.2%	4.5%	3.4%	10.7%
Production (1 000 tonnes)	381	392	334	773	745
Deliveries (1 000 tonnes)	403	382	322	785	718
Production / capacity (%)	85%	88%	70%	87%	78%
Australasia
Total operating income	482	489	513	971	1,133
EBITDA	7	- 8	63	- 1	126
EBITDA margin	1.4%	-1.7%	12.3%	-0.2%	11.1%
Production (1 000 tonnes)	79	89	70	168	162
Deliveries (1 000 tonnes)	87	90	67	177	167
Production / capacity (%)	69%	79%	65%	74%	75%
Other activities
Total operating income	36	60	38	96	86
EBITDA	- 4	14	0	10	-14

• Utilisation of 85% (some downtime due to recovered paper availability)
• Realised prices in the quarter similar to previous quarter

• Significant increase in raw material prices (recovered paper and energy)

• Utilisation 69% (includes limited production from Tasman)

• Tasman closed on 30 June 2021, asset sales process being completed
• Boyer to become only domestic publication paper supplier

Western European producers closing capacity to adjust to post COVID-19 demand environment

25% 40% 3,500 4,000 thousand tonnes Monthly publication paper demand Western Europe, thousand tonnes Change vs same month last year

Western European publication paper demand down ~2.1m tonnes in 2020

Publication paper closures of ~3.3m tonnes (H2 2020 to H2 2021)

Capacity closures in Western Europe,

1,200

European publication paper prices following price development seen in Asian and US export markets

Price increases necessary to counter margin contraction driven by significant increases in raw materials prices

Sources: RISI, Nord Pool

1) 1.11 sorted graphic paper for deinking in Germany; 2) Nordic system price; 3) Northern bleached softwood kraft pulp (Europe)

Industry low CO² footprint enabling annual CO² emission allowance surplus

Emission allowance price

2013 2014 2015 2016 2017 2018 2019 2020 2021

• Industry low CO² footprint basis for annual emission allowance surplus
• Waste-to-energy plant at Bruck will reduce CO² footprint with 150k tonnes annually, start H1 2022
• Allowance sale income booked each quarter in 2021, but expected to be received in H2 2021
• Cost compensation booked each quarter in 2021, but cash proceeds to be received in H1 2022

Renewable packaging

Moving forward with the containerboard business

Final Investment Decisions

Golbey and Bruck investments approved by the board of directors

EUR 350m

Project investment

EUR ~245m debt financing

ECA¹ -backed debt financing of ~70%, subject to final documentation

Q4 2022 first production

Stepwise commercial introduction

760 000 tonnes

Recycled containerboard production capacity

11 1) ECA = Export Credit Agency

Introducing recycled containerboards

12

• Lightweight and strong fluting and testliner board
• Inevitably circular from 100% recycled fibre (OCC)
• Supporting e-commerce with sustainable packaging
• Replacing plastic where and when possible
• Production capacity of 760 000 tonnes in 2023
• Annual European demand growth +600 000 tonnes¹

Source: External industry consultant (third-party) 1) European demand of ~26m tonnes with annual growth rate of 2-3%

Establishing a leading independent European containerboard business

Norske Skog Golbey – France

• 235k tonnes newsprint capacity
• Convert to 550k tonnes containerboard

P

P

• Start-up in Q4 2023
• Capex estimate of EUR ~250m

PM2 (future candidate)

• 330k tonnes newsprint capacity
• Ongoing production during PM1 conversion
• Strong candidate for future conversion
• Feasibility studies concluded

Norske Skog Bruck – Austria

• PM3 (FID completed)
• 125k tonnes newsprint capacity
• Convert to 210k tonnes containerboard
• Start-up in Q4 2022
• Capex estimate of EUR ~100m

PM4 (future candidate)

• 265k tonnes LWC magazine capacity
• Ongoing production during PM3 conversion
• Strong candidate for future conversion
• Feasibility studies concluded

PM1 (FID completed) Top 10 recycled containerboard suppliers in Europe

Capacity, million tonnes

Norske Skog will enter the recycled containerboard market with first-quartile capacity

Strong outlook for the containerboard market

Energy, biochemicals & materials

On schedule for start-up in nine months of +400 GWh sustainable energy production

Waste-to-energy plant being installed in Bruck, Austria

EU Green Deal: Circular Economy Action Plan Reduce landfill to a maximum of 10 % of municipal waste generated by 2030

• Increasing landfill and waste exports restriction drive demand for waste offtake
• Few viable alternatives for waste that cannot be reused, recycled or recovered
• Huge positive environmental impact by diverting RDF¹ from landfills
• Basis for increasing need for further waste-to-energy (WtE) capacity in Europe
• WtE plant with proven technology turnkey installation contract from Valmet
• Will replace current gas consumption with energy produced from regional RDF¹
• RDF¹ to be sourced from within 200km from 10-15 customers
• Revenue generation from gate fees and electricity production
• EUR 72m investment of which EUR ~38m invested as of Q2 2021
• EUR ~24m of EUR 54m in local debt drawn as of Q2 2021

17 1) Refuse-derived fuel (RDF) is a fuel produced from various types of waste such as municipal solid waste (MSW), industrial waste or commercial waste

Norske Skog partnering with Ocean GeoLoop to support further development of highly promising CCS / CCU technologies

✓Captures close to 100% of CO² from flue gas ✓No use of harmful chemicals to capture CO² ✓Lower capex to build than other solutions ✓Lower energy to operate than other solutions

• In Norway, Norske Skog is close to reaching zero fossil CO² emissions
• To explore the opportunity of becoming net negative, Norske Skog partners with Ocean GeoLoop and its disruptive CCS / CCU technologies
• The technologies have been built on decades of research, lab tests and prototypes, and has been verified by a reputable third-party
• Norske Skog Skogn's Fiborgtangen will be the main piloting arena, initially for a pilot of industrial scale
• Further ambition to develop economically viable models for capture of biogenic CO² , which has received less attention than fossil emissions
• Norske Skog will hold ~2% of Ocean GeoLoop, and will join its board

Reviewing 30,000 tonnes expansion of sustainable pellets production

Nature's Flame modern and state-of-the-art wood pellet production facility in Taupo, New Zealand

• NZD ~45m invested in state-of-the-art facility
• NOK ~30-35m EBITDA contribution
• Acquired by Norske Skog in July 2015
• FSC certified fibre supply
• Renewable geo-thermal energy supply
• DinPlus certification for premium pellets
• BioGro New Zealand organic certification
• Fonterra offtake agreement for 50,000 tonnes
• Current production around 90,000 tonnes¹
• Capacity expansion study of 30,000 tonnes expected to be completed during H2 2021

Reducing the environmental impact is at the forefront of all business decisions

• ✓ Industry low CO² intensity under the EU ETS² in 2020
• ✓ New energy efficiency initiatives being introduced in 2021³
• ✓ Waste-to-energy boiler reducing CO² footprint with 150 000 tonnes from H1 2022
• ✓ Reduced electricity consumption and steam from new biomass boiler in Golbey following conversion project
• ✓ Detailed 2020 CSR report issued applying the Global Reporting Initiative Guidelines

20 1) Scope 1 includes direct emissions from stationary fuel combustion, transportation and mobile sources. Scope 2 includes indirect emissions from steam and power imports; 2) ETS = Emission Trading Scheme, Norske Skog is a net receiver of carbon emission allowances, indicating that Norske Skog is among the top 10% of producers employing the Best Available Techniques from a sustainability and environmental perspective; 3) The NEXT and Therminator energy efficiency projects announced at the Norske Skog Saugbrugs mill in March 2020 will come on stream in 2021 and further improve the energy efficiency of Norske Skog, the projects are supported by the NOx Fund and Enova

Outlook

Publication paper markets

• Improving operating rates in the industry
• Considerable paper price increases in H2 2021
• Continued high prices for recycled fibre and other input factors
• Remain a reliable supplier of all publication paper grades

Strategic shift into new markets

• Enter into international sales arrangements for CEBINA in H2 2021
• Semi-industrial CEBICO pilot of 300 tonnes starting in Q4 2021
• Bruck boiler start-up Q2 2022, expected EBITDA of NOK ~200m
• First containerboard production to start in Q4 2022

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.