Arctic Paper S.A.

Earnings Release • Aug 24, 2017

Current report number 14/2017

Dated: 23 August, 2017

Subject: Recognition of an impairment allowance to assets of ArcticPaper S.A. and preliminary consolidated and standalone financial resultsfor H1 2017.

Legal basis:

Art. 17 sec. 1 of MAR - inside information

Content:

The Management Board of Arctic Paper S.A. (the "Company") informsherewith that in reference to the ongoing review of the standalonehalf-year financial statements for 2017 and impairment tests held onassets of Arctic Paper Investment AB (the company holding 100% of sharesin Arctic Paper Grycksbo AB, "APG"), as of today a decision was taken torecognised an impairment allowance to the shares held by the Issuer inthe company of about PLN 33 million. The abovementioned allowance is aresult of a change of assumptions underlying the impairment test(conducted according to the discounted cash-flow method) as to theproduction volume, sales prices and forecast pulp prices.

The impairment charge will decrease the gross results and asset value inthe Issuer's standalone financial statements for H1 2017.

At the same time, the consolidated financial statements of the ArcticPaper Group for the period will remain unaffected.

The final amount of the recognized impairment charge is dependent on thefinalisation of the half-year review and will be disclosed in theIssuer's standalone financial statements for H1 2017 to be published on28 August 2017.

Considering the above changes, the Management Board of the Company,hereby publishes the preliminary estimated consolidated and standalonefinancial results for H1 2017:

Selected items of the consolidated income statement of the Arctic PaperS.A. Group (PLN ‘000):

1H 2017Sales Revenues 1 476 989EBIT 77 147EBITDA 140 059Netprofit/(loss) from continuing operations 49 899Net profit/(loss) 45897

Selected items of the Issuer's standalone income statement (PLN ‘000):1H2017Sales Revenues 69 300EBIT 9 711EBITDA 9 936Netprofit/(loss) 3 731

The disclosed financial results are based on preliminary financial datafor H1 2017 ended on 30 June 2017, for the Group and for the Company.The estimates have been made subject to the best knowledge of theManagement Board as at the date of preparation hereof and with theassumption that no circumstances will arise and occur that couldmaterially affect the preliminary financial results after thepublication hereof.

The final consolidated and standalone financial results are dependent onthe finalisation of the half-year review and will be disclosed in theIssuer's consolidated financial statement for H1 2017 to be published on28 August 2017.

Specific legal basis:

Art. 17 sec. 1 of Regulation (EU) No. 596/2014 of the EuropeanParliament and of the Council of 16 April 2014 on market abuse (marketabuse regulation) and repealing Directive 2003/6/EC of the EuropeanParliament and of the Council and Commission Directives 2003/124/EC,2003/125/EC and 2004/72/EC.