Arctic Paper S.A.

Investor Presentation • Oct 4, 2021

4P strategy 2022-2030

Future strategy for growth and a diverse, carbon neutral and renewable group.

All figures and projections for the future are illustrations of the new strategy or goals, not a forecast.

This presentation (the 'Presentation') was prepared by Arctic Paper S.A. (the 'Company') for information purposes only for use by investors, banks and the Company's customers as well as market analysts and under no circumstances may it be treated as a part of an invitation or offer to purchase securities, an invitation to make investments or conduct transactions regarding securities, an inducement to make purchase offers or a recommendation to conclude any transactions, in particular transactions regarding the Company's securities.

The information contained in the Presentation was taken from publicly available sources which the Company believes to be reliable. However, the Company cannot guarantee its reliability or completeness, except for the information on the Company and its Group. The Company shall not be held liable for the consequences of decisions made on the basis of or in reliance on the information contained in this Presentation. The information contained in the Presentation has not been independently verified and may be subject to change at any time. The publication of the data contained in the Presentation by the Company does not constitute a breach of the provisions of the law which apply to companies whose shares are listed on the regulated market, in particular the regulated market operated by the Warsaw Stock Exchange in Poland and NASDAQ OMX Stockholm in Sweden. The information contained herein has been published by the Company in its current and periodic reports, or constitutes a supplement thereto which is not required to be published by the Company in order to comply with the Company's reporting requirements as a listed company.

Under no circumstances should information contained in this Presentation be construed as the explicit or implicit submission of a representation or warranty of any type by the Company or by persons acting on its behalf. Furthermore, neither the Company nor any person acting on its behalf shall be held liable in any respect for any damage which may arise as a result of negligence or for any other cause as a result of the use of this Presentation or any information contained in it, or for damage which may otherwise arise in connection with information constituting a part of this Presentation.

The Company is not obliged to publish updates and amendments to the information, data and representations contained in this Presentation as a result of a change of the Company's strategy or intentions or the appearance of unexpected facts or circumstances which affect such strategy or intentions of the Company, unless such an obligation arises from the provisions of law.

This Presentation contains information on the paper industry. With the exception of information indicated as originating from a specified source, the market information referred to above has been prepared on the basis of data received from third parties who are named in this Presentation and contains estimates, assessments, corrections and opinions based on the Company's experience and knowledge of the sector in which it conducts business. Because the market information referred to above may have been partially prepared with the use of estimates, assessments, corrections and opinions and has not been verified by independent entities, to a certain extent, this information is of a subjective nature, with the exception of the information which has been indicated as information originating from third parties from a specified source. It is presumed that estimates, assessments, corrections and opinions are based on reasonable grounds and that the market information which has been prepared duly reflects the situation of the industry on the markets on which the Company conducts business. However, there is o certainty that the estimates, assessments, corrections and opinions are the most appropriate basis for drawing conclusions on the market information or that market information taken from other sources may not differ significantly from the market information contained in this Presentation.

The Company would like to point out to the readers of this Presentation that the only reliable source of data on Arctic Paper's financial results, forecasts and events, as well as the Company's indicators, is the current and periodic reports submitted by the Company in compliance with reporting requirements under Polish and Swedish law.

Contents

• 1. Arctic today
• 1. Artic tomorrow
• 1. 4P strategy

• •Power

• •Packaging
• •Paper
• •Pulp
• 1. The way forward
• 1. Summary

Arctic today

Arctic Paper today

Revenue per segment

• •Group focused on pulp and graphical paper production
• •No 5 producer of graphical paper in Europe
• •No 1 producer of premium book & design paper in Europe
• •Well positioned producer of high-yield market pulp in Europe
• •Two thirds of energy needed produced on-site
• •50% consumed energy from renewable sources
• •Revenue 2020: 2 847 mPLN
• •EBITDA 2020: 271 mPLN

97% of revenues generated in pulp and paper segments

Arctic Paper today

Combination of paper & pulp

• •An effective business hedge over the years
• •Stable results despite business cycles
• •Two segments based on natural & renewable material

EBITDA (mPLN)

Arctic tomorrow

Arctic Group tomorrow

Major trends pavethe wayfor change

• •Decreasing market for graphical paper due to digitalisation

• •Booming e-commerce boost the demand for packaging

• •Shift from plastic to smart fiber-based packaging solutions

• •European energy prices are rising due to decarbonisation trend and the EU green deal package Fit for 55
• •New demands for sustainability offer new market potentials

Arctic Group tomorrow

Expandingbusiness –valuegrowth

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The new 4P strategy is built on the ambition to grow using the synergies between the two existing pillars paper and pulp and new investments in packaging and energy to reach a sustainably higher profitability and resilience of the group.

A strategybuilton fourpillarswitha strategicfit

4P –the new strategy2022-2030

The European graphical markets are decreasing and new demands regarding sustainability are offering new market potentials, especially in packaging, green energy solutions and wood pulp.

Arctic will stay as reliable producer of high quality, branded graphic paper and supplier of high-quality pulp and we see opportunities in fast growing segments – packaging & power. Based on our two well-established segments – pulp & paper – we see lot of positive synergies between our business today and new segments.

The new strategy has been created to use these new possibilities and to create a solid future, using natural renewable resources and balancing different business cycles on the following four pillars: paper, packaging, pulp and power – called the 4P strategy.

A strategybuilt on fourpillars

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A strategybuilt on fourpillars

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Power

It's all about energy. The shift from fossil to non-fossil energy sources is one of the main tasks for this planet. We are taking measures to create this future. Behind our power pillar stands the clear vision to make this change possible. Hydropower, solar panels and other green energy in combination with intelligent waste/bio energy plants - all based on renewable sources.

Power

The market

• • Ongoing decarbonization of Polish and European Power generation sector
• • Increasing costs of fossil energy due to growing carbon emission allowances prices
• •Rapid increase of electricity prices

0 100 200 300 400 500 600 0 10 20 30 40 50 60 70 PLN/MWh CO2 EUR/allowance

Electricity & CO2 prices

We have competences in energy generation

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6 M W B i o e n e r g y		8 M W B i o e n e r g y
% < 2 h S i a r e n g r o u p r e v e n u e		% > 7 h S i a r e n g r o u p r e v e n u e

Packaging

Packaging is needed to protect, prolong shelf life of products and promote goods. We feel a duty to create intelligent alternatives to plastic packaging, based on renewable resources to reduce microplastic particles in sea, soil and food. In 2019 we started the process to launch papers for the booming nonplastic packaging market.

Packaging

The market

• • Addressable European flexible market was 1,2 mln tons in 2019
• • Flexible packaging paper market is expected to have a CAGR of ca. 8% in 2020-2029
• • Market need of modern sustainable and recyclable products with high barrier functions
• •Main growth drivers:
  • •Sustainability
  • •Plastic replacement supported by legislation
  • •Consumer expectations

Current split of flexible packaging papers: By paper grade

Source: Afry 2021

Packaging

We have experience to develop the packaging segment

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Paper

Since hundreds of years paper is the base for communication. Today, Arctic Paper is a European producer of premium paper with strong brands and a leading position in the markets for high quality book and design paper. Paper will remain an important part of the business. Arctic Paper will continue to develop its position in stable, profitable niches of the market with the help of new innovative products and strong brands.

Paper

The market

Main trends in the graphical paper market in last years:

• • General graphical market declined by 1-3% annualy with slight underperformance of Coated Woodfree market
• •Stable market size of high quality bookpaper
• •Stable increase of design and speciality segments

2020 European demand 11,9m t

We will remain a leading player in premium paper

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k % ( % ) i 9 7 p a p e r 3 p a c a g n g f l l U i s e o p a p e r m s d t i i t p r o u c o n c a p a c y	h f h S i i i t t n e m x k M i o r e p a c a g n g	k 8 % ( % ) i 0 p a p e r 2 0 p a c a g n g f l l d U i i i t t s e o p a p e r m s p r o u c o n c a p a c y
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6 % 7 h S i a r e n g r o u p r e v e n u e		6 % 4 h S i a r e n g r o u p r e v e n u e

Pulp

As a material based on a renewable resource, wood pulp plays a key role in the circular economy. Through the ownership of 51 percent of the Swedish producer of long-fiber wood-pulp and high-yield pulp Rottneros, Arctic Paper is well positioned to grow in sustainable pulp production for paper, packaging, tissue and technical applications.

Pulp

The market

• •Sustainable product
• •2022-30 CAGR market growth expected at ca. 4,0%
• • Key applications in packaging, paper, hygenics products and attractive multiple niche aplications
• •High entry barriers
• •Demand driven by global trends
• •Counter-cyclical business vs. paper production

from non-integrated

producers

Market

pulp

Source: Hawkins

Ourexpandingpulpbusiness is a coreactivity

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		% 2 9 h S i a r e n g r o p r e e n e u v u

The road map Milestones ahead

Power

Shifting towards a more balanced and profitable portfolio

Capex: 40 % investmentsin packagingand power

Funding: 40 % own equity, 60 % loans to optimise the balance structure

Capex 2020-2030

Sustainability goals2035

A summaryofthe new strategy

•Growth in fast-growing areas

Contact

Poland PiotrOwdziej

IR contact

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Sweden Göran Eklund CFO

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