Nordic Fibreboard

Quarterly Report • Nov 28, 2025

Nordic Fibreboard AS consolidated unaudited interim report for the third quarter of 2025

Nordic Fibreboard AS consolidated unaudited interim report for the third quarter of 2025

MANAGEMENT REPORT

Consolidated net sales for Q3 2025 were EUR 1.99 million, which was a 2.5%
increase compared to the same period last year (Q3 2024: EUR 1.94 million). Nordic
Fibreboard`s sales revenue Q3 2025 was generated from the Group`s main activity,
which is the production and wholesale of fibreboard.

The consolidated EBITDA of Nordic Fibreboard for Q3 2025 was positive EUR 94
thousand, the EBITDA margin was positive 5% (Q3 2024: EBITDA was negative EUR 19
thousand, and the EBITDA margin was negative 1%). Compared to the Q3 2024 the
Group`s gross margin increased from 16% to 24% in the Q3 2025, which indicates
that the Group`s profitability in the Q3 2025 has increased compared to the same
period last year.

Financial expenses, which consisted of interest expenses, amounted to EUR 43
thousand in Q3 2025 (2024 Q3: EUR 113 thousand, consisting of interest expenses in
the amount of EUR 53 thousand and revaluation of Trigon Property Development AS
shares in the amount of EUR 60 thousand).

Group`s consolidated net loss for Q3 2025 was EUR 77 thousand (Q3 2024: net loss EUR
263 thousand).

The Management Board assesses the performance of operating segments based on
operating profit and EBITDA as a primary measure. As a secondary measure, the
Management Board also reviews net revenue. The Group defines EBITDA as profit
before extraordinary other operating costs and net finance costs and tax,
depreciation and impairment charges. As extraordinary other business expenses,
the Group has treated one-time expenses that have not arisen in the course of
normal business activities but have arisen from some extraordinary
circumstances. EBITDA is not a performance measure defined in IFRS. The Group`s
definition of EBITDA may not be comparable to similarly titled operating profit
measures and disclosures by other entities.

Financial highlights

+---------------------------------------------------------------------------+
|Income statement         |
+-------------------------------+----------+----------+----------+----------+
|EUR thousand | Q3 2025| Q3 2024| 9M 2025| 9M 2024|
+-------------------------------+----------+----------+----------+----------+
|Revenue | 1,988| 1,938| 5,592| 6,078|
+-------------------------------+----------+----------+----------+----------+
|EBITDA | 94| (19)| (84)| 251|
+-------------------------------+----------+----------+----------+----------+
|EBITDA margin | 5%|  (1%)|  (2%)| 4%|
+-------------------------------+----------+----------+----------+----------+
|Operating profit | (34)| (150)| (473)| (139)|
+-------------------------------+----------+----------+----------+----------+
|Operating margin |  (2%)|  (8%)|  (8%)|  (2%)|
+-------------------------------+----------+----------+----------+----------+
|Net profit/-loss | (77)| (263)| (574)| (358)|
+-------------------------------+----------+----------+----------+----------+
|Net margin |  (4%)|  (14%)|  (10%)|  (6%)|
+-------------------------------+----------+----------+----------+----------+

+---------------------------------------------------------------------------+
|Statement of financial position         |
+-------------------------------+----------+----------+----------+----------+
|EUR thousand |30.09.2025|31.12.2024|30.09.2024|31.12.2023|
+-------------------------------+----------+----------+----------+----------+
|Total assets | 9,188| 8,252| 8,780| 8,505|
+-------------------------------+----------+----------+----------+----------+
|Return on assets |  (6%)|  (10%)|  (4%)|  (8%)|
+-------------------------------+----------+----------+----------+----------+
|Equity | 3,042| 3,616| 4,044| 4,402|
+-------------------------------+----------+----------+----------+----------+
|Return on equity |  (19%)|  (22%)|  (9%)|  (16%)|
+-------------------------------+----------+----------+----------+----------+
|Debt-to-equity-ratio | 67%| 56%| 54%| 48%|
+-------------------------------+----------+----------+----------+----------+

+-------------------------------+----------+----------+----------+----------+
|Share |30.09.2025|31.12.2024|30.09.2024|31.12.2023|
+-------------------------------+----------+----------+----------+----------+
|Last price (EUR)* | 0.70| 0.90| 0.93| 0.90|
+-------------------------------+----------+----------+----------+----------+
|Earnings per share (EUR) | (0.22)| (0.17)| (0.11)| (0.15)|
+-------------------------------+----------+----------+----------+----------+
|Price-earnings ratio | (3.15)| (5.15)| (8.84)| (5.93)|
+-------------------------------+----------+----------+----------+----------+
|Book value of a share (EUR) | 0.68| 0.80| 0.90| 0.98|
+-------------------------------+----------+----------+----------+----------+
|Market to book ratio | 1.04| 1.12| 1.03| 0.92|
+-------------------------------+----------+----------+----------+----------+
|Market capitalization, (th EUR) | 3,149| 4,049| 4,184| 4,049|
+-------------------------------+----------+----------+----------+----------+
|Number of shares (piece) | 4,499,061| 4,499,061| 4,499,061| 4,499,061|
+-------------------------------+----------+----------+----------+----------+

Fibreboard production and sales

The production and sale of fibreboards is carried out by Nordic Fibreboard Ltd
OÜ, a subsidiary of Nordic Fibreboard AS. Fibreboard sales in Q3 2025 were EUR
1.99 million (Q3 2024: EUR 1.94 million). Sales revenue has remained mainly at the
same level as last year. The low growth was mainly due to the marginal growth of
the Finnish market in the third quarter and an increase in activity in distant
markets compared to last year. New customers have been added from countries
where there were no sales in the Q3 2024.

The EBITDA of the fibreboard for the Q3 2025 was a positive EUR 112 thousand, (Q3
2024: negative EUR 19 thousand).  The net loss of the fibreboard for the Q3 2025
was EUR 48 thousand (Q3 2024: net loss EUR 262 thousand).

Fibreboard sales by geographical segments

+----------------+---------+---------+---------+---------+
| EUR thousand | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 |
+----------------+---------+---------+---------+---------+
| European Union | 1,847 | 1,789 | 5,263 | 5,588 |
+----------------+---------+---------+---------+---------+
| Africa | 50 | 89 | 149 | 255 |
+----------------+---------+---------+---------+---------+
| Asia | 44 | 17 | 73 | 102 |
+----------------+---------+---------+---------+---------+
| Middle East | 27 | 41 | 41 | 96 |
+----------------+---------+---------+---------+---------+
| Other regions | 20 | 0 | 63 | 14 |
+----------------+---------+---------+---------+---------+
| TOTAL | 1,988 | 1,936 | 5,589 | 6,055 |
+----------------+---------+---------+---------+---------+

Real estate management

As a secondary activity, the Group owns and manages a property located at Suur-
Jõe tn 48 in the city of Pärnu, for which a detailed plan has been established
for the development of residential real estate. Previously, the Suur-Jõe 48
property was owned and managed by Nordic Fibreboard AS's 100% subsidiary Pärnu
Riverside Development OÜ, but on 30.07.2025, Nordic Fibreboard AS and Pärnu
Riverside Development OÜ entered into a merger agreement, according to which
Nordic Fibreboard AS was the acquiring company and Pärnu Riverside Development
OÜ was the acquired company. The merger date was 01.06.2025, and as a result of
the merger, the direct owner and manager of the Suur-Jõe 48 property is Nordic
Fibreboard AS.

In Q3 2025, no sales revenue was generated from real estate management (Q3
2024, EUR 2 thousand), in the 9M 2025, sales revenue from real estate management
was EUR 2 thousand (9M 2024: EUR 23 thousand).

The design work of the Admirali area development project has been completed.
Building permits have been issued for the roads and utility networks within the
area and for the apartment buildings at Admirali 1/3. Preliminary designs for
the new apartment buildings at Admirali 5/7 and Admirali 9/11 and the
reconstruction project for the existing office building at Suur-Jõe 48 are in
the process of obtaining a building permit.

Consolidated statement of financial position and cash flow statement

As of 30.09.2025 the total assets of Nordic Fibreboard AS were EUR 9.19million
(30.09.2024: 8.78 million). Receivables and prepayments amounted to EUR 1.04
million as at 30.09.2025 (30 .09.2024: EUR 0.92 million). Inventories were EUR 1.33
million as of 30.09.2025 (30.09.2024: also EUR 0.87 million) and the Group´s total
fixed assets were EUR 6.81 million as of 30.09.2025 (EUR 6.98 million as of
30.09.2024).

The liabilities of the Group as of 30.09.2025 were EUR 6.15 million (30.09.2024: EUR
4.74 million). Payables and prepayments amounted to EUR 1.62 million (30.09.2024:
EUR 1.11 million), of which the Group has payables of EUR 1.25 million as at
30.09.2025 (30.09.2024: EUR 0.77 million). Borrowings amounted to EUR 4.39 million
as at 30.09.2025 (30.09.2024: EUR 3.51 million), provision for former employees
and other liabilities amounted to EUR 0.14 million (30.09.2024: EUR 0.12 million).

Nordic Fibreboard`s consolidated cash flow from operating activities for the
first nine months of 2025 was negative in the amount of EUR 553 thousand (first
nine months of 2024: negative cash flow of EUR 102 thousand). Cash outflow due to
investment activities during the first nine months 2025 was EUR 156 thousand,
which consisted of the sale of TPD shares and investments in production assets
and real estate investment objects (first nine months of 2024: cash outflow EUR
193 thousand). Cash inflows due to financing activities was EUR 666 thousand for
the first nine months of 2025, (first nine months of 2024: cash inflow EUR 296
thousand). The net cash flow for the first nine months of 2025 resulted in a
cash outflow of EUR 43 thousand (first nine months of 2024: cash inflow EUR 1
thousand).

CONSOLIDATED STATEMENTS OF FINANCIAL POSITIONS

+---------------------------------------------+----------+----------+----------+
|EUR thousand |30.09.2025|31.12.2024|30.09.2024|
+---------------------------------------------+----------+----------+----------+
|Cash and cash equivalents | 10| 53| 8|
+---------------------------------------------+----------+----------+----------+
|Receivables and prepayments (Note 2) | 1,041| 571| 921|
+---------------------------------------------+----------+----------+----------+
|Inventories (Note 3) | 1,326| 624| 872|
+---------------------------------------------+----------+----------+----------+
|Total current assets | 2,377| 1,248| 1,801|
+---------------------------------------------+----------+----------+----------+
|  |  |  |  |
+---------------------------------------------+----------+----------+----------+
|Investment property (Note 4) | 2,516| 2,380| 2,309|
+---------------------------------------------+----------+----------+----------+
|Financial assets at fair value through profit| | | |
|or loss (Note 7) | 0| 499| 431|
+---------------------------------------------+----------+----------+----------+
|Property, plant, equipment and right-of use | | | |
|assets (Note 5) | 4,293| 4,122| 4,236|
+---------------------------------------------+----------+----------+----------+
|Intangible assets (Note 6) | 2| 3| 3|
+---------------------------------------------+----------+----------+----------+
|Total non-current assets | 6,811| 7,004| 6,979|
+---------------------------------------------+----------+----------+----------+
|  |  |  |  |
+---------------------------------------------+----------+----------+----------+
|TOTAL ASSETS | 9,188| 8,252| 8,780|
+---------------------------------------------+----------+----------+----------+
|  |  |  |  |
+---------------------------------------------+----------+----------+----------+
|Borrowings (Note 8) | 747| 1,111| 652|
+---------------------------------------------+----------+----------+----------+
|Payables and prepayments (Note 9) | 1,620| 788| 1,109|
+---------------------------------------------+----------+----------+----------+
|Short-term provisions (Note 10) | 5| 21| 5|
+---------------------------------------------+----------+----------+----------+
|Total current liabilities | 2,372| 1,920| 1,766|
+---------------------------------------------+----------+----------+----------+
|  |  |  |  |
+---------------------------------------------+----------+----------+----------+
|Long-term borrowings (Note 8) | 3,643| 2,613| 2,859|
+---------------------------------------------+----------+----------+----------+
|Long-term provisions (Note 10) | 94| 94| 111|
+---------------------------------------------+----------+----------+----------+
|Other long-term liabilities | 37| 9| 0|
+---------------------------------------------+----------+----------+----------+
|Total non-current liabilities | 3,774| 2,716| 2,970|
+---------------------------------------------+----------+----------+----------+
|Total liabilities | 6,146| 4,636| 4,736|
+---------------------------------------------+----------+----------+----------+
|  |  |  |  |
+---------------------------------------------+----------+----------+----------+
|Share capital (at nominal value) (Note 11) | 450| 450| 450|
+---------------------------------------------+----------+----------+----------+
|Statutory reserve capital | 45| 45| 45|
+---------------------------------------------+----------+----------+----------+
|Retained earnings | 2,547| 3,121| 3,549|
+---------------------------------------------+----------+----------+----------+
|Total equity | 3,042| 3,616| 4,044|
+---------------------------------------------+----------+----------+----------+
|  |  |  |  |
+---------------------------------------------+----------+----------+----------+
|TOTAL LIABILITIES AND EQUITY | 9,188| 8,252| 8,780|
+---------------------------------------------+----------+----------+----------+

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

+--------------------------------------+---------+---------+---------+---------+
| EUR thousand | Q3 2025 | Q3 2024 | 9M 2025 | 9M 2024 |
+--------------------------------------+---------+---------+---------+---------+
| Revenue (Note 13) | 1,988 | 1,938 | 5,592 | 6,078 |
+--------------------------------------+---------+---------+---------+---------+
| Cost of goods sold (Note 14) | (1,635) | (1,766) | (4,983) | (5,235) |
+--------------------------------------+---------+---------+---------+---------+
| Gross profit (loss) | 353 | 172 | 609 | 843 |
+--------------------------------------+---------+---------+---------+---------+
|   |   |   |   |   |
+--------------------------------------+---------+---------+---------+---------+
| Distribution costs (Note 15) | (268) | (249) | (741) | (725) |
+--------------------------------------+---------+---------+---------+---------+
| Administrative expenses (Note 16) | (115) | (69) | (341) | (260) |
+--------------------------------------+---------+---------+---------+---------+
| Other operating income (Note 18) | 0 | 0 | 13 | 8 |
+--------------------------------------+---------+---------+---------+---------+
| Other operating expenses (Note 18) | (4) | (4) | (13) | (5) |
+--------------------------------------+---------+---------+---------+---------+
| Operating profit (loss) | (34) | (150) | (473) | (139) |
+--------------------------------------+---------+---------+---------+---------+
|   |   |   |   |   |
+--------------------------------------+---------+---------+---------+---------+
| Finance income (Note 19) | 0 | 0 | 40 | 0 |
+--------------------------------------+---------+---------+---------+---------+
| Finance costs (Note 19) | (43) | (113) | (141) | (219) |
+--------------------------------------+---------+---------+---------+---------+
| PROFIT (LOSS) BEFORE INCOME TAX | (77) | (263) | (574) | (358) |
+--------------------------------------+---------+---------+---------+---------+
|   |   |   |   |   |
+--------------------------------------+---------+---------+---------+---------+
| NET PROFIT (LOSS) FOR THE PERIOD | (77) | (263) | (574) | (358) |
+--------------------------------------+---------+---------+---------+---------+
|   |   |   |   |   |
+--------------------------------------+---------+---------+---------+---------+
| Basic earnings per share (Note 12) | (0.02) | (0.06) | (0.13) | (0.08) |
+--------------------------------------+---------+---------+---------+---------+
| Diluted earnings per share (Note 12) | (0.02) | (0.06) | (0.13) | (0.08) |
+--------------------------------------+---------+---------+---------+---------+

CONSOLIDATED STATEMENT OF CASH FLOWS

+--------------------------------------------------------------+-------+-------+
|EUR thousand |9M 2025|9M 2024|
+--------------------------------------------------------------+-------+-------+
|Cash flow from operating activities |  |  |
+--------------------------------------------------------------+-------+-------+
|Operating profit (-loss) | (473)| (139)|
+--------------------------------------------------------------+-------+-------+
|Adjustments: |  |  |
+--------------------------------------------------------------+-------+-------+
|Depreciation charge (Note 5; 6) | 389| 390|
+--------------------------------------------------------------+-------+-------+
|Change in trade and other receivables (Note 2) | (470)| (387)|
+--------------------------------------------------------------+-------+-------+
|Change in inventories (Note 3) | (702)| (144)|
+--------------------------------------------------------------+-------+-------+
|Change in trade and other payables (Note 9) | 860| 353|
+--------------------------------------------------------------+-------+-------+
|Change of provisions (Note 10) | (16)| (16)|
+--------------------------------------------------------------+-------+-------+
|Cash generated from operations | (412)| 57|
+--------------------------------------------------------------+-------+-------+
|Interest payments (Note 8; 19) | (131)| (153)|
+--------------------------------------------------------------+-------+-------+
|Net other financial income and expense | (10)| (6)|
+--------------------------------------------------------------+-------+-------+
|Net cash generated from operating activities | (553)| (102)|
+--------------------------------------------------------------+-------+-------+
|  |  |  |
+--------------------------------------------------------------+-------+-------+
|Cash flow from investing activities |  |  |
+--------------------------------------------------------------+-------+-------+
|Purchase of property, plant and equipment and intangible | | |
|assets (Note 5; 6) | (559)| (153)|
+--------------------------------------------------------------+-------+-------+
|Capitalized cost of real estate investment (Note 4) | (136)| (40)|
+--------------------------------------------------------------+-------+-------+
|Sales of financial assets (Note 7) | 539| 0|
+--------------------------------------------------------------+-------+-------+
|Net cash used in investing activities | (156)| (193)|
+--------------------------------------------------------------+-------+-------+
|  |  |  |
+--------------------------------------------------------------+-------+-------+
|Cash flow from financing activities |  |  |
+--------------------------------------------------------------+-------+-------+
|Repayment of loans received (Note 8) | (166)| (157)|
+--------------------------------------------------------------+-------+-------+
|Loans received from related parties (Note 8) | 830| 200|
+--------------------------------------------------------------+-------+-------+
|Finance lease payments (Note 8) | (18)| (17)|
+--------------------------------------------------------------+-------+-------+
|Change in overdraft (Note 8) | 20| 270|
+--------------------------------------------------------------+-------+-------+
|Net cash (used in)/from financing activities | 666| 296|
+--------------------------------------------------------------+-------+-------+
|  |  |  |
+--------------------------------------------------------------+-------+-------+
|NET CHANGE IN CASH | (43)| 1|
+--------------------------------------------------------------+-------+-------+
|OPENING BALANCE OF CASH | 53| 7|
+--------------------------------------------------------------+-------+-------+
|CLOSING BALANCE OF CASH | 10| 8|
+--------------------------------------------------------------+-------+-------+

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

+----------------------+-------------+------------------+----------------+-----+
| | |Statutory reserve | Retained | |
|EUR thousand |Share capital| capital | earnings |Total|
+----------------------+-------------+------------------+----------------+-----+
|  |  |  |  |  |
+----------------------+-------------+------------------+----------------+-----+
|Balance at 31.12.2023 | 450| 45| 3,907|4,402|
+----------------------+-------------+------------------+----------------+-----+
|  |  |  |  |  |
+----------------------+-------------+------------------+----------------+-----+
|Net loss for 9M 2024 | 0| 0| (358)|(358)|
+----------------------+-------------+------------------+----------------+-----+
|Total comprehensive | | | | |
|income for 9M 2024 | 0| 0| (358)|(358)|
+----------------------+-------------+------------------+----------------+-----+
|Balance at 30.09.2024 | 450| 45| 3,549|4,044|
+----------------------+-------------+------------------+----------------+-----+
|  |  |  |  |  |
+----------------------+-------------+------------------+----------------+-----+
|Balance at 31.12.2024 | 450| 45| 3,121|3,616|
+----------------------+-------------+------------------+----------------+-----+
|  |  |  |  |  |
+----------------------+-------------+------------------+----------------+-----+
|Net loss for 9M 2025 | 0| 0| (574)|(574)|
+----------------------+-------------+------------------+----------------+-----+
|Total comprehensive | | | | |
|income for 9M 2025 | 0| 0| (574)|(574)|
+----------------------+-------------+------------------+----------------+-----+
|Balance at 30.09.2025 | 450| 45| 2,547|3,042|
+----------------------+-------------+------------------+----------------+-----+

Enel Äkke
Member of Management Board
+372 55525550
[email protected]