Norske Skog ASA

Investor Presentation • Oct 15, 2020

Delivering on the promise of biomolecules at scale

Company presentation

Oslo Børs and Pareto Securities Cleantech Seminar 15 October 2020

www.circagroup.com.au

We make and sell valuable biobased molecules

A portfolio of valuable biobased molecules

• Bioeconomy ambition to replace fossil molecules with biobased molecules
• Unique ability to produce large amounts of the platform molecule LGO¹
• Successfully used LGO to derive multiple high value biobased molecules
• Essential for medicines, electronics, agrochemicals and more

Only successfully scaled LGO production

Building on strong chemistry and process industry experience

• Co-founded Circa Group in 2006
• +30 years industry experience
• Senior strategy and marketing roles
• "Most Innovative Bio economy CEO" by Il Bioeconomista in 2017

Tony Duncan CEO & co-founder Circa since 2006

• PhD chemical engineering
• Senior management roles in pulp and paper, plastic packaging, energy management, precision engineering and aluminium and glass
• Has worked in South Africa, USA, China, Australia, Indonesia, the Philippines and Thailand

Ebbe Dommisse COO Circa since 2014

Jason Camp CTO Circa since 2019

John Williams CCO Circa since 2020 PhD organic chemistry

PhD polymer chemistry

+20 years industry experience

Has worked extensively in the biobased economy sector

Senior strategy and technical roles

• +10 years as independant academic
• • 30 publications within sustainable chemistry, method development and target synthesis
• Has worked extensively in the green chemistry and SME sectors

Peter Gome CFO

• Experienced CFO with senior executive and advisory roles
• +20 years of international experience from listed, private, not-for-profit and family-owned businesses
• Worked within professional services, retail, marketing, oil and gas, transport and manufacturing
• Circa since 2020

James Clark Scientific Director Circa since 2019

• Leading Green Chemistry Centre of Excellence at University of York
• Internationally recognised as leading on green and sustainable chemistry
• Awarded Royal Society of Chemistry Green Chemistry Prize in 2018

4

Clear contribution to the UN Sustainable Development Goals

• Biobased molecules support shift away from chemicals based on nonrenewable and toxic substances
• NMP, a solvent which CyreneTM will replace, is toxic to reproduction and considered a Substance of Very High Concern by the EU (ECHA)

• Circa molecules being converted into novel pharmaceuticals

• Biobased molecule production is green and sustainable by design

• Support shift away from high-waste chemicals by offering low-waste alternatives
• Proprietary technology dramatically reduces production waste with coproducts valuable in themselves

• Support shift away from fossil based chemicals by offering more sustainable alternatives
• Production of 1 kg CyreneTM releases ~1.4 kg of CO² , vs NMP which releases ~4.3-8.2 kg CO²
• Biomolecules enable polymers with better economic and environmental performance (circular by design)

Proprietary biotechnology platform enabled by FuracellTM

• FuracellTM is the only scalable LGO production process
• Process developed and patented by Circa (freedom to operate)
• Continuous production achieved in cooperation with Norske Skog
• More than 10 years of technology verification through five pilot plants
• Technology tests with machine suppliers in Canada and Finland
• Bio waste feedstock tolerant (sawdust, straw, chips, agricultural waste)
• Nearly carbon neutral with biochar co-product valuable in itself¹

Biobased molecule portfolio derived from LGO

• LGO is a green platform molecule for synthesis of high value biobased molecules
• Bioprivileged¹ molecule that enables synthesis of a diverse range of important derivatives
• Historically LGO has only been available at very limited research scale
• Extensive research (+350 papers) identifying +100 LGO derivatives
• Exploring use of LGO derivatives in Remdesivir (COVID-19 treatment)
• Promising opportunities for other LGO derivatives (Laiscent, HBO, PT139)
• LGO derivative, CyreneTM, has gained significant commercial interest

CyreneTM replaces toxic and fossil solvents

• CyreneTM is a biobased solvent made from LGO
• The global market is +1,000,000 tonnes per year for dipolar aprotic solvents, mainly fossil solvents (NMP, DMF, DMAc)
• Executed +1,000 customer and research tests for CyreneTM
• CyreneTM outperformed fossil solvents in 20-30% of applications
• Marketed to customers on both "outperform" and "bio" qualities
• Sold through Merck KGaA and directly to researchers and companies
• Particular focus and interest in European and US markets
• Awarded "Bio-based Chemical Innovation of the Year" in 2017
• Awarded "Top Product 2019" by Environment + Energy Leader

Tailwind from strict chemical regulation

• Once in a generation regulatory upheaval of the chemical market
• Supported by increasing pressure from both consumers and brands
• Fossil solvents, NMP and DMF, considered Substances of Very High Concern
• Increasing restrictions in the EU under the REACh¹ system
• Ban to be fully enacted once suitable alternatives become available
• CyreneTM is a biobased alternative
  • ‒ Widely acknowledged as one of very few viable alternatives to NMP and DMF
  • ‒ Non-toxic, sustainable and better for the environment
  • ‒ Dramatic reduction in waste during production and at end-of-life

Regulation driven, but not subsidy reliant

EU Flagship grant for a 1,000 tonne CyreneTM plant in France

biomasse: moteur de l'économie circulaire

will&co Acrey HUNTSMAN PNO SIGMA-ALDRICH Enriching lives through innovation
UNIVERSITY CHL ಿ talga LE PÔLE DE LA BIOÉCONOMIE of York VATED CARBONS unearthing Temprow
AgroParisTech Bio based Industries Peter Fisk Associates INSTERS CORNERS IT INCLESINGS BU UNART IT DE C'HWEIGNAUMENT MUS (NIVTUR OF NOWBOR) EXEUS, FORUSE FREED MES JEWELF WITHON WINNER
Horizon 2020 European European Union funding Commission for Research & Innovation

• LGO / CyreneTM production capacity of 1,000 tonnes
• Production of ~5,000 tonnes of biochar co-product for sale
• To be located at Total's Carling site in France
• Total project investment (capex and opex) of EUR 39m
• Received prestigious EU Horizon 2020 Flagship grant of EUR 12m
• Finalising engineering scope and contractor agreements
• Project developed with and supported by highly qualified partners
• Planned investment decision end 2020 and start-up by end 2022
• All production output volume covered by partners' Letters of Intent

is the final stepping stone before commercial scale

• Cyrene is the commercial foundation for the ReSolute plant
• Proof of material production capacity simplifies further market work
• Feasibility study for a 5,000 tonne plant to be finalised in November
• Potential for multiple large scale plants going forward
• Basis for continued development of other LGO derivative markets
• Exploring use of HBO (LGO derivative) in Remdesivir (COVID-19 treatment)
• Promising opportunities for other LGO derivatives (Laiscent, PT139)

Delivering on the promise of biomolecules at scale

1 Proprietary and only scalable production process for production of the unique platform chemical LGO

• 2 Developing portfolio of highly functional LGO derivatives, including CyreneTM
• 3 CyreneTM is a green, safe and sustainable bio chemical designed to replace toxic fossil solvents (NMP and DMF)

4 More than 1,000 trials by universities and industry globally successfully proving commercial potential

5 Prestigious EU H2020 grant of EUR 12m to support investment in EUR 39m plant with 1,000 tonnes capacity

Thank you

Circa Group Ltd

Bio21 Molecular Science & Biotechnology Institute 30 Flemington Road, Parkville VIC 3052 Australia

Contact

CEO – Tony Duncan Tony.Duncan@circagroup.com.au CTO – Jason Camp Jason.Camp@circasc.com