2 LWC = Light Weight Coated; SC = Supercalendered; RCCM = Recycled Corrugating Casing Materials; BCTMP = Bleached Chemi-Thermomechanical Pulp

Discontinuation of Publication Paper Australasia reporting segment

EBITDA of NOK 33m following discontinuation of Publication Paper Australasia reporting segment due to sales process

Announced and ongoing initiatives to secure financial position and performance

Excess capacity continues to characterise markets

Slightly improved newsprint and SC magazine markets following closures. LWC magazine market remains weak
Continuous focus on production costs as new containerboard supply puts pressure on the market balance

Entering the long-term growing market for recycled containerboard

Lower orders in the quarter resulting in slight reduction in deliveries from Bruck PM3, expect higher volumes in Q1 2025
Production at Golbey PM1 to start at the end of Q1 2025, increasing the group's total delivery capacity with 36%

Reviewing future opportunities at Saugbrugs

BCTMP study nearing completion, and reviewing potential reconstruction of PM6 for production of 210kt SC magazine paper
Final settlement of NOK 540m agreed with insurance company, to be paid in full and recognised during Q1 2025

NOKm NOKm (and margin)

4 1) LTM = Last Twelve Months. Note that the covenant subtracts restructuring expenses and adjusts for divestments

2 000 2 500 3 000 Cash Net debt ¹ NOKm group covenant of min. NOK 100m unrestricted

NOKm (and leverage ratio) no group maintenance covenant

50% 42% 41% 41% 40% 37% 40% 30% 20% 10% 0% Equity ratio 5 Note: Covenants calculated according to definitions in loan agreements		9,8x Interest coverage ratio		1 500 1 000 500 0		2 500
1) For Q2 2024, note that NOK 977m (NOK 1 005m including call premium and accumulated interest) was repaid following end of quarter as part of the bond refinancing. Pro forma, in Q2 2024 the cash position was NOK 1 779m of which NOK 584m was restricted


NOK million	Q4'23	Q1'24	Q2'24	Q3'24	Q4'24
Publication Paper Europe
Deliveries, kt	270	262	279	283	291
Total operating inc.	3 028	2 058	2 514	2 224	2 369
EBITDA	723	166	464	99	40	Increased deliveries with unchanged average sales price Cost pressure mainly from pulpwood, natural gas, and
EBITDA margin	24%	8%	18%	4%	2%	electricity in the quarter, resulting in lower EBITDA
Packaging Paper Deliveries, kt	29	38	41	42	41
Total operating inc.	135	177	207	249	218	Deliveries slightly down from previous quarter due to lower
EBITDA	-38	-7	2	8	3	orders, expect to return to ramp-up curve during Q1 2025 Sales price reduction in line with the market, however price
EBITDA margin	-28%	-4%	1%	3%	1%	increases announced for Q1 2025
Other						On target for full utilisation in H2 2025 for Bruck PM3
Total operating inc.	152	158	189	225	233	Golbey PM1 to start production end of Q1 2025. Will be
EBITDA	-6	-9	-1	-19	-10	included in the Packaging Paper segment from Q1 2025
Publication Paper Australasia (discontinued)
Deliveries, kt	63	59	60	61	57	Reduction in EBITDA mainly a result of lower deliveries,
Total operating inc.	568	438	472	496	459	and slightly higher cost of materials
EBITDA	80	-74	6	3	-15

Increased deliveries with unchanged average sales price
Cost pressure mainly from pulpwood, natural gas, and electricity in the quarter, resulting in lower EBITDA
Deliveries slightly down from previous quarter due to lower orders, expect to return to ramp-up curve during Q1 2025
Sales price reduction in line with the market, however price increases announced for Q1 2025
On target for full utilisation in H2 2025 for Bruck PM3
Golbey PM1 to start production end of Q1 2025. Will be included in the Packaging Paper segment from Q1 2025

Containerboard production

-

Capacity 210kt

Started Q1 2023
Full utilisation H2 2025
Net capex EUR 120m
Project debt EUR 57m
-

Projects at Norske Skog Bruck completed Projects at Norske Skog Golbey completed Q1 2025

Started Q2 2022
⁷ Waste-to-energy boiler Full utilisation Q2 2023 Net capex EUR 72m term contract Containerboard production Ongoing commissioning of roll warehouse, containerboard winder, effluent station, and I/O check of OCC drum pulper, and PM1
- Project debt EUR 35m
- Capacity 50 MW Gross capex EUR 390m
  - Remaining EUR ~5-10m
  - Project debt EUR 171m
  - Capacity 550kt

Biomass boiler JV

Started Q4 2024 Starting Q1 2025
- Full utilisation 2025
- Equity share EUR 5m
Capacity 125 MW Full utilisation 2027

Green Valley Energie is a JV between Norske Skog (10%), Veolia (10%) and Pearl Infrastructure (80%), where Norske Skog will be sole offtaker of steam under a competitive long-Remaining EUR ~60m Net capex EUR 320m

–

Cabling at PM1 represents the majority of remaining construction work
Pre-commissioning (I/O check) is 90% complete on for pulping and 60% for the paper machine (PM1)
Commissioning of roll warehouse, containerboard winder, and the effluent station is 90% complete and well progressed for pulping and the paper machine
Remaining gross capex of EUR ~60m and net capex of EUR 5-10m
Expect containerboard production start-up end Q1 2025

–

Lower orders in the quarter resulting in slight decrease in deliveries from previous quarter. Expect volumes to return to plan in Q1 2025
Excellent product quality and customer feedback
Continued pressure from OCC costs as containerboard prices have declined

Saugbrugs and the insurer agreed on final settlement of NOK 540 million
The settlement amount is freely available and provides Saugbrugs with time and flexibility to invest and develop the industrial site for the future
Payment is expected in Q1 2025 and will result in recognition of NOK 560m in EBITDA in Q1 2025
Engaged technical and environmental consultants
Working with multiple machinery and equipment suppliers
Meetings with Norwegian Environment Agency
Contact with sales agents and potential customers
Completion of project study in H1 2025
Ongoing dialogue with machinery and equipment vendors
Capacity of 210kt SC magazine paper
Lower capacity than previous because of limited reconstruction scope to reduce capex
Completion of project study in H1 2025
Prices remain stable and increasing for publication paper and containerboard, respectively
Significant emphasis on reducing production cost and working capital to maintain competitive position
Bruck PM3 to reach full capacity utilisation of 95% in H2 2025
Golbey PM1 to start production end of Q1 2025 and reach full utilisation in 2027
Significant proceeds from energy certificates and grants to be received in 2026-27
Close relations to all lenders and shared understanding of fundamental growth journey
Announced and ongoing initiatives to secure financial position and performance

Press release

Coping with challenging markets

Norske Skog's EBITDA in the fourth quarter of 2024 was NOK 33 million, a decrease from NOK 88 million in the third quarter of 2024. EBITDA in the quarter was influenced by continued pressure from price increases for energy and pulpwood. Norske Skog Golbey will start production of packaging paper towards the end of the first quarter of 2025, which will increase the Group's total capacity with 36%. Proceeds from the final insurance settlement from the rockslide at Norske Skog Saugbrugs will improve the financial position and liquidity by NOK 540 million in the beginning of 2025. The publication paper markets are still challenging although several market closures have improved the market balance for newsprint and magazine paper.

"In the first quarter of 2025, we will proudly launch containerboard production at Norske Skog Golbey, the group's most significant investment to date and a bold step into the future. This marks a major milestone in our transformation from a traditional publication paper producer to a dynamic supplier of containerboard. With a cutting-edge production line powered entirely by recycled fibre, we are increasing our capacity by more than one-third, strengthening our ability to serve the growing demand in the containerboard market," says Geir Drangsland, CEO of Norske Skog.

The cash flow from operations in the quarter was NOK 28 million due to reduced working capital following sale of CO2 allowances. Operating earnings in the fourth quarter of 2024 were NOK -353 million compared to operating earnings in the third quarter of 2024 of NOK -5 million. The operating earnings in the quarter were negatively affected by non-cash changes in fair value of energy contracts in Norway amounting to NOK 137 million, and negatively affected by NOK 121 million in impairments relating to assets at Norske Skog Saugbrugs.

Loss before taxes in the quarter was NOK -555 million compared to NOK -141 million in the previous quarter. The net profit was negatively affected by non-cash currency changes in euro denominated debt and foreign exchange contracts. Net interest-bearing debt increased from NOK 3 717 to 4 119 million at the end of the quarter. The equity ratio was 37%.

Operations

Total annual publication paper production capacity for the group was 1.6 million tonnes during 2024. Norske Skog has discontinued the reporting segment Publication Paper Australasia after initiating a sales process in December 2024. The Group capacity of publication paper will then become 1.3 million tonnes. Norske Skog Golbey (PM1) plans to start packaging paper production towards the end of the first quarter of 2025. Norske Skog will after the rampup of Norske Skog Bruck and Norske Skog Golbey have an annual capacity of 760 000 tonnes of packaging paper production.

According to Euro Graph, demand for standard newsprint in Europe decreased by 1% through November 2024 compared to the same period last year. SC magazine paper demand decreased by around 9%. LWC paper demand decreased by around 2% through November compared to the same period last year. According to PPPC trade statistics for Australia, demand for newsprint decreased by 16% and increased for coated mechanical by 1% through November 2024 compared to the same period last year.

Norske Skog ASA Sjølyst plass 2 P.O. Box 294 Skøyen, 0213 Oslo Norway

Publication paper

Operating income increased from the previous quarter mainly due to higher deliveries and sale of excess energy. Slightly higher publication paper sales prices due to mix effects were more than offset by higher pulpwood and energy prices compared to the previous period. The increase in sales prices did not absorb the increased cost of materials in the period.

Variable costs per tonne increased in the quarter, both in absolute terms and per tonne for cost of materials mainly due to pulpwood and energy prices. Distribution costs were unchanged in the period but somewhat lower on a per tonne basis. Fixed costs per tonne increased both on an absolute level and per tonne level due somewhat higher employee expenses. Group capacity utilisation was 87% in the quarter, 87% in Europe and 86% in Australasia.

Packaging paper

The packaging paper machine at Bruck continues to ramp-up its production, although a commercially challenging market reduced deliveries in the quarter. The containerboard production will reach full capacity utilisation during the third year of production. The operating income for 2024 consists of revenue from deliveries and gate fees from waste incineration, which were higher than the variable and fixed costs.

Key figures, fourth quarter of 2024 *

NOK million (unless otherwise stated)	Q4 2024	Q3 2024	Q4 2023	YTD 24	YTD 23
Income statement
Total operating income	2 666	2 511	3 195	10 173	11 557
EBITDA	33	88	680	736	2 062
Operating earnings	-353	-5	627	-60	934
Profit (loss) before tax	-470	-144	588	-566	645

EBITDA margin %	1.2	3.5	21.3	7.2	17.8
Capacity utilisation publication paper %	87	91	83	87	80

Cash flow
Net cash flow from operating activities	28	-272	973	-15	1 928
Net cash flow from investing activities	-428	-289	-677	-1 198	-2 689

Balanse	31.12.24	30.09.24	31.12.23	31.12.24	31.12.23
Total assets	14 467	14 824	14 755	14 467	14 755
Equity	5 384	6 132	6 161	5 384	6 161
Equity %	37	41	42	37	42

*) Restated figures to reflect the discontinuation of the publication paper Australasia segment

Status projects

Norske Skog Golbey conversion projects

At Norske Skog Golbey, the conversion of the newsprint paper machine (PM1) into recycled containerboard paper production is progressing towards start-up in the end of the first quarter of 2025. Norske Skog Golbey will eventually add 550 000 tonnes of new low-emission packaging paper capacity after ramp-up is completed, which will be fully based on recycled fibre. Along with the containerboard production at Bruck, Norske Skog will at full capacity utilisation, deliver 760 000 tonnes of packaging paper to the market. Golbey PM1 will utilise renewable energy generated from the newly commissioned biomass plant at the Golbey industrial site (Green Valley Energie). This energy plant will be the largest of its kind in France.

Norske Skog Saugbrugs BCTMP-production

Norske Skog Saugbrugs has started a main study aiming to enter the Bleached Chemi-ThermoMechanical Pulp (BCTMP) market by starting production at Norske Skog Saugbrugs in Halden. Currently, Norske Skog Saugbrugs has engaged technical and environmental consultants, who are working with potential machinery and equipment suppliers.

The new BCTMP line will produce approximately 300 000 tonnes of competitive pulp to meet the growing demand, especially for products in the packaging market. The BCTMP production will be based on fresh fibre, and the mill already has access to adequate energy capacity. Norske Skog Saugbrugs investment will exploit existing machinery, equipment, and infrastructure; thus, reducing the total investment significantly compared to a greenfield alternative. The final investment decision is expected to be made during the first half of 2025.

Outlook

The development in the global economy is important for consumer spending, and this impacts the publication paper and packaging paper industry, and thus Norske Skog's operations and results. Norske Skog's deliveries have increased during the fourth quarter of 2024, with increase in newsprint deliveries outweighing slight decreases in magazine paper and containerboard.

The raw material and energy markets, which are important for both publication paper and packaging paper production, are expected to remain uncertain. During the fourth quarter, energy costs reached somewhat higher levels. Cost of pulpwood has increased, but the situation remains manageable. Recycled paper prices show signs of stalling and even declining during the fourth quarter.

The level of input costs and demand for paper will continue to influence paper sales prices in Europe. Both publication- and packaging paper markets see some excess capacity, and capacity reductions are required to tighten the markets. Industry utilisation is expected to remain below the historical average until capacity is reduced. Norske Skog is able to maintain a higher utilisation rate than the industry average.

The production of recycled containerboard at Norske Skog Bruck PM3 is expected to increase in line with plan over the coming quarters. The EBITDA from the packaging paper segment was positive in 2024 but is expected to be negative in 2025 due to allocation of fixed costs relating to Norske Skog Golbey PM1 from the first quarter of 2025.

Norske Skog Saugbrugs continues to progress with the design phase of a new bleached chemi-thermomechanical pulp (BCTMP) line, with expected final investment decision in the first half of 2025. In addition, Norske Skog Saugbrugs is also reviewing the future opportunity for SC magazine paper production from the damaged PM6. During December 2024, Norske Skog initiated a concrete sales process for its operations in Australasia. The transaction is expected to close during the first quarter of 2025.

Norske Skog continues to monitor its financial position closely and has several ongoing initiatives to secure its liquidity and financial performance going forward. There is also a clear emphasis on reducing production cost and working capital to improve the group's competitive position and cash flow from operations. Norske Skog will update separately on such initiatives from time to time as they progress.

Norske Skog will continue to develop its industrial sites with new fibre projects based on efficient use of certified fibre and renewable energy, both on a stand-alone basis and in partnerships. The Norwegian mills, Norske Skog Saugbrugs and Norske Skog Skogn, have received written notices from the Norwegian Environment Agency stating that they will not be included in the EU Emissions Trading System from 2026 to 2030. This is because emissions from biomass combustion accounted for more than 95 percent of the mills' total average greenhouse gas emissions during the reference period 2019–2023.

"This is a significant setback for sustainable industry and deeply disappointing for everyone who has invested in and prioritized the transition from fossil fuels to renewable energy. This decision will incentivize facilities to continue or even increase the use of fossil fuels," says Geir Drangsland, CEO of Norske Skog.

About Norske Skog

Norske Skog is a leading producer of publication paper with strong market positions and customer relations in Europe. The Norske Skog Group operates four mills in Europe, which produce publication paper, recycled packaging paper, energy and bioproducts. The annual publication paper production capacity is 1.6 million tonnes. The annual production capacity of packaging paper will be 0.8 million tonnes following the start-up of containerboard production at Golbey in the first quarter of 2025. Norske Skog aims to further diversify its operations and continue its transformation into a growing and high-margin business through a range of promising energy and bio product development projects. The Group has approximately 2 100 employees, is headquartered in Norway and listed on the Oslo Stock Exchange under the ticker NSKOG.

Presentation and quarterly material

The company will arrange a Teams-webinar today at 08:30 CEST, which can be attended by clicking the webinar link on the front page of the www.norskeskog.com.

The quarterly board of directors report, the presentation, the financial statements and the press releases are available on www.norskeskog.com, and published on www.newsweb.no under the ticker NSKOG. If you want to receive future Norske Skog press releases, please subscribe through the website of the Oslo Stock Exchange www.newsweb.no.

Norske Skog Communications and Public Affairs

For further information: Norske Skog media: Norske Skog capital markets: Vice President Communication and Public Affairs Vice President Corporate Finance Carsten Dybevig Even Lund Email: [email protected] Email: [email protected] Mob: +47 917 63 117 Mob: +47 906 12 919

Håndtering av utfordrende markeder

Norske Skogs EBITDA i fjerde kvartal 2024 var NOK 33 millioner, en nedgang fra NOK 88 millioner i tredje kvartal 2024. EBITDA i kvartalet var påvirket av fortsatt press fra prisøkninger på energi og tømmer. Norske Skog Golbey vil starte produksjon av emballasjepapir mot slutten av første kvartal 2025, noe som vil øke konsernets totale kapasitet med 36 %. Inntekter fra det endelige forsikringsoppgjøret i begynnelsen av 2025, som følge av steinraset ved Norske Skog Saugbrugs, vil forbedre den finansielle posisjonen og likviditeten med NOK 540 millioner. Markedene for publikasjonspapir er fortsatt utfordrende, selv om flere nedleggelser har bidratt til å bedre markedsbalansen for avispapir og magasinpapir.

"Vi vil med stolthet starte containerboard-produksjonen ved Norske Skog Golbey i første kvartal 2025, som er konsernets største investering noensinne og et dristig steg inn i fremtiden. Dette markerer en viktig milepæl i vår transformasjon fra en tradisjonell produsent av publikasjonspapir til en dynamisk leverandør av containerboard. Med en toppmoderne produksjonslinje drevet utelukkende på resirkulert fiber, øker vi vår kapasitet med over en tredjedel, og styrker vår evne til å møte den økende etterspørselen i emballasjemarkedet," sier Geir Drangsland, konsernsjef i Norske Skog.

Kontantstrømmen fra drift i kvartalet var NOK 28 millioner, påvirket av redusert arbeidskapital etter salg av CO₂ kvoter. Driftsresultatet i fjerde kvartal 2024 var NOK -353 millioner, sammenlignet med NOK -5 millioner i tredje kvartal 2024. Driftsresultatet i kvartalet ble negativt påvirket av påvirket av endringer, uten kontanteffekter, i verdsettelsen av energikontrakter i Norge på NOK 137 millioner, samt avskrivninger på NOK 121 millioner knyttet til eiendeler ved Norske Skog Saugbrugs.

Tap før skatt i kvartalet var NOK -555 millioner, sammenlignet med NOK -141 millioner i forrige kvartal. Nettoresultatet ble negativt påvirket av valutaendringer, uten kontanteffekter, på euro-denominert gjeld og valutakontrakter. Netto rentebærende gjeld økte fra NOK 3 717 millioner til 4 119 millioner ved kvartalets slutt. Egenkapitalandelen var 37 %.

Drift

Samlet årlig produksjonskapasitet for publikasjonspapir for konsernet er 1,6 millioner tonn i 2024. Norske Skog har avviklet rapporteringssegmentet for publikasjonspapir Australasia etter at en salgsprosess ble igangsatt i desember 2024. Konsernets produksjonskapasitet publikasjonspapir blir da 1,3 millioner tonn. Norske Skog Golbey (PM1) vil starte produksjon av emballasjepapir i løpet av første kvartal 2025. Etter igangskjøringsperioden av Norske Skog Bruck og Norske Skog Golbey, vil Norske Skog ha en årlig kapasitet på 760 000 tonn emballasjepapir.

Ifølge Euro Graph falt etterspørselen etter standard avispapir i Europa med 1% til og med november sammenlignet med samme periode ifjor. For SC-magasinpapir falt etterspørselen med 9%. Etterspørselen etter lett bestrøket papir (LWC) falt med 2% til og med november sammenlignet med samme periode ifjor. I følge PPPCs australske handelsstatistikk falt etterspørselen etter avispapir med 16% og økte med 1% for LWC til og med november 2024 sammenlignet med samme periode i fjor.

Publikasjonspapir

Driftsinntektene økte fra forrige kvartal, hovedsakelig som følge av høyere leveranser og salg av overskuddsenergi. Noe høyere salgspriser for publikasjonspapir grunnet mix-effekter ble mer enn oppveid av høyere tømmer- og energipriser sammenlignet med forrige periode. Økningen i salgspriser klarte ikke å absorbere den økte materialkostnaden i perioden.

Norske Skog ASA

Sjølyst plass 2 P.O. Box 294 Skøyen, 0213 Oslo Norway www.norskeskog.com

De variable kostnadene per tonn økte i kvartalet, både i absolutte tall og per tonn, hovedsakelig på grunn av høyere tømmer- og energipriser. Distribusjonskostnadene var uendret i perioden, men noe lavere per tonn. Faste kostnader per tonn økte både i absolutte tall og per tonn, delvis som følge av noe høyere personalkostnader. Konsernets kapasitetsutnyttelse var 87 % i kvartalet, med 87 % i Europa og 86 % i Australasia.

Emballasjepapir

Emballasjepapirmaskinen ved Bruck fortsetter å trappe opp produksjonen, selv om et utfordrende marked førte til lavere leveranser i kvartalet. Produksjonen forventes å nå full kapasitetsutnyttelse i løpet av det tredje produksjonsåret. Driftsinntektene for 2024 består av salgsinntekter fra produktleveranser og inntekter fra avfallsleveranser til energianlegget, som var høyere enn de variable og faste kostnadene.

**Nøkkeltall, tredje kvartal 2024*)**

NOK millioner (om ikke annet er oppgitt)	Q4 2024	Q3 2024	Q4 2023	YTD 24	YTD 23
Resultatregnskap
Totale inntekter	2 666	2 511	3 195	10 173	11 557
EBITDA	33	88	680	736	2 062
Driftsresultat	-353	-5	627	-60	934
Resultat før skatt	-470	-144	588	-566	645

EBITDA margin %	1.2	3.5	21.3	7.2	17.8
Kapasitetsutnyttelse publikasjonspapir %	87	91	83	87	80

Kontantstrøm
Netto kontantstrøm fra operasjonelle aktiviteter	28	-272	973	-15	1 928
Netto kontantstrøm fra investeringsaktiviteter	-428	-289	-677	-1 198	-2 689

Balanse	31.12.24	30.09.24	31.12.23	31.12.24	31.12.23
Totale eiendeler	14 467	14 824	14 755	14 467	14 755
Egenkapital	5 384	6 132	6 161	5 384	6 161
Egenkapital %	37	41	42	37	42

*) Omarbeidede tall for å reflektere avviklingen av publikasjonspapir i Australasia

Status prosjekter

Norske Skog Golbey konverteringsprosjekter

Ved Norske Skog Golbey gjennomføres ombyggingen av avispapirmaskinen (PM1) til produksjon av resirkulert emballasjepapir mot oppstart i første kvartal av 2025. Norske Skog Golbey vil med tiden tilføre 550 000 tonn lavutslipps emballasjepapirkapasitet etter opptrappingsfasen. Sammen med emballasjeproduksjonen ved Bruck vil Norske Skog, ved full kapasitetsutnyttelse, levere 760 000 tonn emballasjepapir til markedet. Produksjonen av emballasjepapir vil være fullt ut basert på resirkulert fiber. Golbey PM1 vil bruke fornybar energi generert fra det nylig startede biomasseanlegget, som ligger på industriområdet til Golbey (Green Valley Energie).

Norske Skog Saugbrugs BCTMP-produksjon

Norske Skog har iverksatt en hovedstudie med mål om å gå inn i markedet for bleket kjemi-termomekanisk masse (BCTMP) for å starte produksjon ved Norske Skog Saugbrugs i Halden. For tiden har Norske Skog Saugbrugs engasjert tekniske og miljøfaglige konsulenter for å samarbeide med potensielle leverandører av maskiner og utstyr.

Den nye BCTMP-linjen vil produsere omtrent 300 000 tonn konkurransedyktig masse for å møte den økende etterspørselen, spesielt for produkter i emballasjemarkedet. BCTMP-produksjonen vil bli basert på fersk fiber. Saugbrugs har allerede tilgang til tilstrekkelige energileveranser. Investeringen ved Norske Skog Saugbrugs vil utnytte eksisterende maskiner, utstyr og infrastruktur, og dermed redusere den totale investeringen betydelig sammenlignet med et nytt og komplett anlegg. Den endelige investeringsbeslutningen forventes å bli tatt i løpet av første halvår 2025.

Utsikter

Utviklingen i den globale økonomien er viktig for forbrukernes kjøpekraft, og dette påvirker både avispapir- og emballasjepapirindustrien, og dermed også Norske Skogs drift og resultater. Norske Skogs leveranser økte i fjerde kvartal 2024, der økningen i leveranser av avispapir veide opp for mindre nedganger i magasinpapir og emballasjepapir.

Markedene for råvarer og energi, som er viktige for både produksjon av publikasjonspapir og emballasjepapir, forventes å forbli usikre. I løpet av fjerde kvartal nådde energikostnadene noe høyere nivåer. Kostnaden for massevirke har økt, men situasjonen forblir håndterbar. Prisene på returpapir viser tegn til stagnasjon og til og med nedgang i fjerde kvartal.

Nivået på innsatskostnader og etterspørselen etter papir vil fortsette å påvirke papirprisene i Europa. Både publikasjonspapir- og emballasjepapirmarkedene har en viss overkapasitet, og kapasitetsreduksjoner er nødvendige for å stramme inn markedene. Industrien forventes å ha en utnyttelsesgrad under det historiske gjennomsnittet inntil kapasiteten reduseres. Norske Skog er i stand til å opprettholde en høyere utnyttelsesgrad enn bransjegjennomsnittet.

Produksjonen av resirkulert emballasjepapir ved Norske Skog Bruck PM3 forventes å øke i tråd med planen i løpet av de kommende kvartalene. EBITDA fra emballasjepapirsektoren var positiv i 2024, men forventes å være negativ i 2025 på grunn av allokering av faste kostnader knyttet til Norske Skog Golbey PM1 fra første kvartal 2025.

Norske Skog Saugbrugs fortsetter arbeidet med designfasen for en ny bleket kjemisk-termomekanisk masse (BCTMP)-linje, med en forventet endelig investeringsbeslutning i første halvdel av 2025. I tillegg vurderer Norske Skog Saugbrugs fremtidige muligheter for produksjon av SC-magasinpapir fra den skadede PM6. I desember 2024 igangsatte Norske Skog en konkret salgsprosess for sin virksomhet i Australasia. Transaksjonen forventes å bli fullført i løpet av første kvartal 2025.

Norske Skog vil fortsette å følge den finansielle situasjon nøye og har flere pågående initiativer for å sikre likviditeten og økonomiske resultater fremover. Det er også et klart mål å redusere produksjonskostnader og arbeidskapital for å bedre konsernets konkurransekraft og kontantstrøm fra driften. Norske Skog vil gi oppdateringer om slike initiativer etter hvert som de utvikler seg.

Norske Skog vil fortsette å utvikle sine industrianlegg med nye fiberprosjekter basert på effektiv bruk av sertifisert fiber og fornybar energi, både på selvstendig basis og i partnerskap med andre. De norske fabrikkene Norske Skog Saugbrugs og Norske Skog Skogn har mottatt skriftlige varsler fra Miljødirektoratet om at de ikke omfattes av EUs klimakvotesystem fra 2026 til og med 2030 ettersom utslippene fra forbrenning av biomasse bidro til mer enn 95 prosent av anleggenes totale gjennomsnittlige klimagassutslipp i referanseperioden 2019-2023.

«– Dette er et betydelig tilbakeslag for bærekraftig industri og svært skuffende for alle som har investert i og prioritert overgangen fra fossile brensler til fornybar energi. Dette vil motivere anlegg til å fortsette eller til og med øke bruken av fossile brensler," sier Geir Drangsland, konsernsjef i Norske Skog.

Om Norske Skog

Norske Skog er en ledende produsent av publikasjonspapir med sterke markedsposisjoner og kundeforhold i Europa og Australasia. Norske Skog-konsernet driver fire fabrikker i Europa som produserer trykkpapir, resirkulert emballasjepapir, energi og bioprodukter. Den årlige produksjonskapasiteten for publikasjonspapir er 1,6 millioner tonn. Den årlige produksjonen av emballasjepapir vil være 0,8 millioner tonn ved full kapasitetsutnyttelse etter igangkjøringsperiodene ved Bruck og Golbey er fullført. Norske Skog tar sikte på å diversifisere virksomheten ytterligere og fortsette omstillingen til en voksende og høy-margins virksomhet gjennom en rekke lovende energiog bioproduktprosjekter. Konsernet har cirka 2 100 ansatte, hovedkontor i Norge og er notert på Oslo Børs under tickeren NSKOG.

Presentasjon og kvartalsmateriell

Selskapet vil arrangere et Teams-webinar i dag kl. 08:30 CEST, som kan følges ved å klikke på webinarlinken på forsiden av www.norskeskog.com. Kvartalsrapporten fra styret, presentasjonen, regnskapene og pressemeldingene er tilgjengelige på www.norskeskog.com, og publisert på www.newsweb.no under tickeren NSKOG. Hvis du ønsker å motta fremtidige pressemeldinger fra Norske Skog, vennligst abonner via nettsiden til Oslo Børs www.newsweb.no.

Norske Skog kommunikasjon og samfunnskontakt

For ytterligere informasjon:

Norske Skog media: Norske Skog kapitalmarkedet: Kommunikasjonsdirektør Direktør corporate finance Carsten Dybevig Even Lund E-post: [email protected] E-post: [email protected] Mob: +47 917 63 117 Mob: +47 906 12 919

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INTRODUCTION

Norske Skog is a producer of packaging paper and publication paper across five mills in Europe and Australasia. Packaging paper includes testliner and fluting and publication paper includes newsprint and magazine paper. The annual production capacity of packaging paper will be 0.8 million tonnes following start of production at Norske Skog Golbey PM1 during the first quarter of 2025, and the annual publication paper production capacity is 1.6 million tonnes. Packaging paper and publication paper are sold through sales offices and agents.

In addition to the traditional publication paper business and the new packaging paper business, Norske Skog aims to further diversify its operations and continue its transformation into a diversified wood fibre processing company.

Norske Skog has approximately 2 100 employees and the parent company, Norske Skog ASA, a public limited liability company, is incorporated in Norway and has its head office at Skøyen in Oslo. The company is listed on Oslo Stock Exchange with the ticker NSKOG.

KEY FIGURES

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023
INCOME STATEMENT
Total operating income	2 666	2 511	3 195	10 173	11 557
EBITDA*	33	88	680	736	2 062
Operating earnings	-353	-5	627	-60	934
Profit/loss before income taxes	-470	-144	588	-566	645
Profit/loss for the period from continuing operations	-555	-141	484	-661	535
Profit/loss for the period from discontinued operations	-190	-12	-2	-321	-54
Profit/loss for the period	-745	-153	482	-982	481

Earnings per share (NOK)** continuing operations	-6.54	-1.66	5.71	-7.79	6.31
Earnings per share (NOK)**	-8.79	-1.80	5.68	-11.57	5.67

CASH FLOW
Net cash flow from operating activities	28	-272	973	-15	1 928
Net cash flow from operating activities per share (NOK)**	0.33	-3.21	11.46	-0.18	22.73
Net cash flow from investing activities	-428	-289	-677	-1 198	-2 689

OPERATING MARGIN AND PROFITABILITY (%)
EBITDA margin*	1.2	3.5	21.3	7.2	17.8
Return on capital employed (annualised)*	-16.0	-9.0	-5.2	-8.1	-12.5

Prior periods are restated due to the segment publication paper Australasia being classified as held for sale from fourth quarter 2024

* As defined in Alternative Performance Measures

** Adjusted for purchase of treasury shares second half of 2023 pursuant to which the number of shares was decreased from 94 264 705 to 84 838 235

NOK MILLION	31 DEC 2024	30 SEP 2024	31 DEC 2023
BALANCE SHEET
Non-current assets	10 037	10 132	9 068
Current assets	4 430	4 692	5 687
Total assets	14 467	14 824	14 755
Equity	5 384	6 132	6 161
Net interest-bearing debt	4 119	3 717	2 590

REPORT OF THE BOARD OF DIRECTORS FOR THE FOURTH QUARTER OF 2024

o Discontinuation of publication paper Australasia reporting segment

EBITDA of NOK 33 million following discontinuation of publication paper Australasia reporting segment due to sales process
o Announced and ongoing initiatives to secure financial position and performance

o Excess capacity continues to characterise markets

Slightly improved newsprint and SC magazine markets following closures. LWC magazine market remains weak
Continuous focus on production costs as new containerboard supply puts pressure on the market balance
o Entering the long-term growing market for recycled containerboard
- Lower orders in the quarter resulting in slight reduction in deliveries from Norske Skog Bruck PM3, expect higher volumes in the first quarter of 2025
- Production at Norske Skog Golbey PM1 to start at the end of the first quarter of 2025, increasing the group's total delivery capacity with 36%

o Reviewing future opportunities at Norske Skog Saugbrugs

BCTMP study nearing completion, and reviewing potential reconstruction of PM6 for production of 210 000 tonnes of SC magazine paper
Final settlement of NOK 540 million agreed with insurance company, to be paid in full and recognised during the first quarter of 2025

PROFIT/LOSS CONTINUING OPERATIONS

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Operating revenue	2 488	2 373	2 357	9 233	9 891
Other operating income	178	137	839	939	1 666
Total operating income	2 666	2 511	3 195	10 173	11 557
Distribution cost	-261	-261	-227	-1 005	-845
Cost of materials	-1 707	-1 547	-1 518	-5 927	-5 863
Fixed cost	-665	-615	-771	-2 505	-2 787
EBITDA	33	88	680	736	2 062

Higher operating revenue in the quarter compared to the previous quarter mainly driven by higher delivery volumes and higher income from sale of excess energy. Other operating income increased mainly due to higher valuation of held CO2 allowances. Publication paper prices were slightly higher in the quarter due to mix effects, and packaging paper prices decreased in line with the market. Production of packaging paper decreased slightly from Norske Skog Bruck PM3 due to market conditions.

Cost of materials per tonne increased in the quarter. Pulpwood and energy prices increase, whereas recovered paper prices were slightly lower.

Fixed costs (including employee benefit expenses) were slightly higher than the previous quarter, both on absolute and per tonne basis.

EBITDA decreased quarter-over-quarter, mainly driven by higher cost of materials and fixed costs.

NOK MILLION	Q4 2024	RESTATED Q3 2024	RESTATED Q4 2023	2024	RESTATED 2023
Restructuring expenses	-5	-2	-4	-16	-32
Depreciation	-123	-122	-118	-481	-464
Impairments	-121	0	-27	-121	-27
Derivatives and other fair value adjustments	-137	30	97	-178	-605
Operating earnings	-353	-5	627	-60	934

Depreciation of NOK 123 million is a slight increase compared with the previous quarter. Impairment of NOK 121 million in the quarter related to Norske Skog Saugbrugs.

The fair value of energy contracts in Norway decreased compared to the previous quarter due to differences between future market prices for electricity and contract electricity prices.

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Share of profit in associated companies and joint ventures	0	-36	-5	-65	-15
Financial items	-117	-103	-34	-441	-275
Income taxes	-85	3	-104	-94	-110
Profit/loss for the period	-555	-141	484	-661	535

Financial items were negative by NOK 117 million in the quarter, mainly due to currency changes on euro denominated debt and foreign exchange contracts.

Net interest expenses of NOK 37 million in the quarter, an increase from the previous quarter.

The board of directors has decided not to propose to the general meeting any dividend for 2024.

DIVERSIFICATION BEYOND PUBLICATION PAPER

Norske Skog continues to ramp-up production of packaging paper following the successful start-up of Norske Skog Bruck PM3. Delivered volumes of recycled containerboard decreased slightly during the quarter due to the commercial situation. Norske Skog Golbey in France is converting PM1 for production of packaging paper and will start production in the first quarter of 2025. When full capacity is reached at both Norske Skog Bruck PM3 and Norske Skog Golbey PM1, Norske Skog will have a production capacity of 0.8 million tonnes of recycled containerboard.

During the quarter, Norske Skog Saugbrugs continued to progress with the design phase for a bleached chemi-thermomechanical pulp (BCTMP) line. The final investment decision is expected during the first half of 2025.

Commercial development of CEBINA and CEBICO continues together with partners.

The group continuously works to develop new fibre projects, both on a stand-alone basis and in partnerships.

SEGMENT INFORMATION

PUBLICATION PAPER EUROPE

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Total operating income	2 369	2 224	3 028	9 166	11 140
EBITDA	40	99	723	769	2 250
EBITDA margin (%)	1.7	4.5	23.9	8.4	20.2
Return on capital employed (%) (annualised)	-21.6	-11.0	-1.3	-9.0	-5.7
Production (1 000 tonnes)	281	293	255	1 124	1 024
Deliveries (1 000 tonnes)	291	283	270	1 115	1 040
Production / capacity (%)	87	91	83	87	80

The segment consists of Norske Skog's European operations in the publication paper market with industrial sites in Norway, France, and Austria. Annual production capacity is currently approximately 1.3 million tonnes.

Operating income increased from the previous quarter mainly due to higher deliveries and higher sale of excess energy.

Distribution costs were like the previous quarter on an absolute basis, but slightly lower on a per tonne basis. Cost of materials increased on an absolute basis and on a per tonne basis, mainly due to pulpwood and energy prices.

Employee benefit expenses increased on an absolute level and were unchanged on a per tonne basis. Other operating expenses increased on an absolute level and on a per tonne basis.

EBITDA decreased compared to the previous quarter mainly due to higher cost of materials and higher other operating expenses.

Demand for standard newsprint in Europe decreased by 1% as of November 2024 compared to the same period last year. For magazine paper the demand decreased by 5%, with supercalendered paper decreasing 9% and lightweight coated paper decreasing 2% for the same period (Source: Euro-Graph).

Capacity utilisation was 87% in the period, a decrease compared with the previous quarter.

EUROPE EUROPE TOTAL OPERATING INCOME EBITDA

PACKAGING PAPER

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Total operating income	218	249	135	851	362
EBITDA	3	8	-38	6	-147
EBITDA margin (%)	1.2	3.2	-27.8	0.7	-40.6
Return on capital employed (%) (annualised)	-0.4	1.1	-18.2	-0.5	-53.6
Production (1 000 tonnes)	40	44	28	164	73
Deliveries (1 000 tonnes)	41	42	29	162	65
Production / capacity (%)	36	96	72	66	70

The segment consists of Norske Skog's packaging paper operations in Europe. Norske Skog Bruck PM3 started producing in the first quarter of 2023 and the production is following the ramp-up curve with higher deliveries compared to previous quarter. Delivered volumes is expected to increase gradually during the coming quarters as ramp-up continues. When full capacity is reached, Norske Skog Bruck will have a production capacity of 0.2 million tonnes of recycled containerboard.

Norske Skog Golbey in France is currently converting PM1 for production of packaging paper and will start production in the first quarter of 2025. When full capacity is reached, Norske Skog Golbey

will have a production capacity of 0.6 million tonnes of recycled containerboard.

The machines are expected to operate at 60-70% utilisation in the first year of operation. Once at full utilisation, the machines are expected to generate annual EBITDA of EUR 70-80 million, based on historical prices and margins seen in the market.

EBITDA in the period was slightly positive.

PACKAGING PAPER PACKAGING PAPER

TOTAL OPERATING INCOME EBITDA

OTHER ACTIVITIES

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023
Total operating income	233	225	152	806	434
EBITDA	-10	-19	-6	-39	-41

Operating income in other activities mainly consist of sourcing solutions and non-paper related operations.

Other activities include unallocated headquarter costs. The unallocated headquarter costs are estimated to be EBITDA negative by approximately NOK 40 million annually but are not uniformly distributed throughout the quarters of the year.

DISCONTINUED OPERATIONS

PUBLICATION PAPER AUSTRALASIA

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Total operating income	459	496	568	1 865	1 967
EBITDA	-15	3	80	-81	80
EBITDA margin (%)	-3.3	0.6	14.2	-4.3	4.0
Return on capital employed (%) (annualised)	-13.4	-9.7	54.8	-20.9	7.9
Production (1 000 tonnes)	57	61	61	236	241
Deliveries (1 000 tonnes)	57	61	63	237	242
Production / capacity (%)	86	91	92	89	91

The segment was discontinued in the quarter following the initiation of a concrete sales process in December 2024. The sale is expected to close during the first quarter of 2025.

The segment consisted of Norske Skog Boyer's publication paper operations in Australasia, the only domestic publication paper producer in the region. The annual production capacity is approximately 0.3 million tonnes.

Operating income decreased compared to the previous quarter mainly due to lower deliveries.

Distribution costs were lower compared to the previous quarter on an absolute level and on a per tonne basis. Cost of materials were lower

on an absolute basis and higher on a per tonne basis. Employee benefit expenses were slightly lower on an absolute basis and higher on a per tonne basis. Other operating expenses were unchanged on an absolute basis and higher a per tonne basis.

EBITDA was lower compared to the previous quarter, mainly due to lower deliveries volume.

Demand for newsprint decreased by 16% while demand for coated mechanical increased 1% through November 2024 compared to same period last year (Source: PPPC).

Capacity utilisation was 86% in the period, a decrease compared to the previous quarter.

TOTAL OPERATING INCOME EBITDA

CASH FLOW

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

EBITDA continuing operations	33	88	680	736	2 062
EBITDA discontinued operations	-15	3	80	-81	80
Change in working capital	94	-261	399	-37	599
Restructuring payments	-11	-11	-11	-42	-55
Gain and losses from divestments	0	-2	-58	43	-57
Insurance compensation from property damage	-33	-25	-55	-448	-122
Net financial items	-61	-51	-48	-216	-138
Taxes paid	-7	-5	-4	1	-598
Other items	29	-7	-11	28	156
Net cash flow from operating activities	28	-272	973	-15	1 928

Purchases of property, plant and equipment and intangible assets	-462	-316	-800	-1 558	-3 084
-whereof maintenance capex	-53	-77	-124	-219	-363

Net cash flow from operating activities was positive NOK 28 million in the quarter.

The operating cash flow was positively impacted by a decrease in working capital of NOK 94 million mainly due to sale of CO2 allowances.

Restructuring payments in the quarter are mainly related to settlement of restructuring costs due to organisational changes.

Insurance compensation was slightly higher than the previous quarter and reflect cost of ongoing work at Norske Skog Saugbrugs.

Net financial items in the quarter relate mainly to interest payments.

Maintenance capex of NOK 53 million relate to ordinary maintenance in the quarter, an increase from the previous quarter.

Remaining purchases of property, plant and equipment and intangible assets mainly relate to investments in the packaging paper projects at Norske Skog Golbey and ongoing work at Norske Skog Saugbrugs.

BALANCE SHEET

NOK MILLION	31 DEC 2024	30 SEP 2024	31 DEC 2023

Non-current assets	10 037	10 132	9 068
Cash and cash equivalents	1 127	1 605	2 463
Inventories, trade and other receivables and other current assets	2 672	3 087	3 223
Total assets	14 467	14 824	14 755
Equity	5 384	6 132	6 161
Non-current liabilities	5 503	5 739	5 680
Current liabilities	3 580	2 952	2 914
Net interest-bearing debt	4 119	3 717	2 590

Total assets decreased in the quarter, mainly due to recognition of impairments at Norske Skog Saugbrugs with NOK 121 million and NOK 154 million related to discontinued operations.

Non-current liabilities were lower than the previous quarter mainly due to lower interest-bearing non-current liabilities.

Current liabilities were higher than the previous quarter, mainly due to higher interest-bearing current liabilities.

Local debt to finance the energy and packaging paper projects at Norske Skog Bruck and Norske Skog Golbey had an outstanding amount of approximately EUR 262 million at quarter end, compared to EUR 269 million at previous quarter end.

Net interest-bearing debt increased from NOK 3 717 million to NOK 4 119 million in the quarter, mainly due to investments in the quarter.

OUTLOOK

The Norwegian mills, Norske Skog Saugbrugs and Norske Skog Skogn, have received written notices from the Norwegian Environment Agency stating that they will not be included in the EU Emissions Trading System from 2026 to 2030. This is because emissions from biomass combustion accounted for more than 95 percent of the mills' total average greenhouse gas emissions during the reference period 2019–2023.

During December 2024, Norske Skog initiated a concrete sales process for its operations in Australasia. The transaction is expected to close during the first quarter of 2025.

Norske Skog will continue to develop its industrial sites with new fibre projects based on efficient use of certified fibre and renewable energy, both on a stand-alone basis and in partnerships.

SKØYEN, 6 FEBRUARY 2025 THE BOARD OF DIRECTORS OF NORSKE SKOG ASA

Board member Board member CEO

Chair Board member Board member

Arvid Grundekjøn Trine-Marie Hagen Terje Sagbakken

Christoffer Bull Tone Wille Geir Drangsland

INTERIM FINANCIAL STATEMENTS, FOURTH QUARTER OF 2024 CONDENSED CONSOLIDATED INCOME STATEMENT

			RESTATED	RESTATED		RESTATED
NOK MILLION	NOTE	Q4 2024	Q3 2024	Q4 2023	2024	2023

Operating revenue		2 488	2 373	2 357	9 233	9 891
Other operating income	9	178	137	839	939	1 666
Total operating income	4	2 666	2 511	3 195	10 173	11 557
Distribution costs		-261	-261	-227	-1 005	-845
Cost of materials		-1 707	-1 547	-1 518	-5 927	-5 863
Employee benefit expenses		-419	-432	-447	-1 702	-1 768
Other operating expenses		-246	-182	-324	-803	-1 019
Restructuring expenses		-5	-2	-4	-16	-32
Depreciation	5	-123	-122	-118	-481	-464
Impairments	5	-121	0	-27	-121	-27
Derivatives and other fair value adjustments	6	-137	30	97	-178	-605
Operating earnings		-353	-5	627	-60	934
Share of profit in associated companies and joint ventures	7	0	-36	-5	-65	-15
Financial items	8	-117	-103	-34	-441	-275
Profit/loss before income taxes		-470	-144	588	-566	645
Income taxes		-85	3	-104	-94	-110
Profit/loss from continuing operations		-555	-141	484	-661	535

Profit/loss from discontinued operations	14	-190	-12	-2	-321	-54
Profit/loss for the period		-745	-153	482	-982	481
Earnings per share from continuing operations
Basic earnings per share (NOK)		-6.54	-1.66	5.71	-7.79	6.31
Diluted earnings per share (NOK)		-6.54	-1.66	5.71	-7.79	6.31

Earnings per share
Basic earnings per share (NOK)		-8.79	-1.80	5.68	-11.57	5.67
Diluted earnings per share (NOK)		-8.79	-1.80	5.68	-11.57	5.67

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Profit/loss from continuing operations	-555	-141	484	-661	535
Profit/loss from discontinued operations	-190	-12	-2	-321	-54
Items that may be reclassified subsequently to profit or loss
Currency translation differences	-71	209	-3	260	305
Tax expense on translation differences	0	0	0	0	0
Reclassified translation differences upon divestment of foreign operations	0	0	1	0	1
Total	-71	209	-2	260	306
Items that will not be reclassified subsequently to profit or loss
Remeasurements of post-employment benefit obligations	-14	0	-8	-14	-8
Tax effect on remeasurements of employment benefit obligations	1	0	1	1	1
Total	-13	0	-6	-13	-6
Other comprehensive continuing operations	-84	209	-9	248	300
Other comprehensive discontinued operations 14	82	-62	-7	-43	-57
Total comprehensive income for the period	-748	-5	467	-777	724

CONDENSED CONSOLIDATED BALANCE SHEET

NOK MILLION	NOTE	31 DEC 2024	30 SEP 2024	31 DEC 2023
Deferred tax asset		111	185	206
Intangible assets	5	11	12	12
Property, plant and equipment	5	9 723	9 740	8 567
Investments in associated companies and joint ventures	7	15	15	80
Other non-current assets	6	177	180	203
Total non-current assets		10 037	10 132	9 068

Inventories		1 390	1 649	1 360
Trade and other receivables		1 253	1 235	1 635
Other current assets	6	29	202	229
Cash and cash equivalents		1 127	1 605	2 463
Total current assets excluding assets classified as held for sale		3 800	4 692	5 687
Assets held for sale	14	631	0	0
Total current assets		4 430	4 692	5 687
Total assets		14 467	14 824	14 755

Paid-in equity	10	8 860	8 860	8 860
Retained earnings		-3 476	-2 728	-2 700
Total equity		5 384	6 132	6 161

Employee benefit obligations		296	299	294
Deferred tax liability		207	199	202
Interest-bearing non-current liabilities	8	4 475	4 686	4 536
Other non-current liabilities	6	525	555	647
Total non-current liabilities		5 503	5 739	5 680

Trade and other payables		2 118	2 169	2 256
Tax payable		11	12	11
Interest-bearing current liabilities	8	771	636	517
Other current liabilities	6	218	135	130
Total current liabilities excluding assets classified as held for sale		3 118	2 952	2 914
Liabilities relating to assets classified as held for sale	14	462	0	0
Total current liabilities		3 580	2 952	2 914
Total liabilities		9 083	8 691	8 594
Total equity and liabilities		14 467	14 824	14 755

SKØYEN, 6 FEBRUARY 2025 THE BOARD OF DIRECTORS OF NORSKE SKOG ASA

Board member Board member CEO

Arvid Grundekjøn Trine-Marie Hagen Terje Sagbakken Chair Board member Board member

Christoffer Bull Tone Wille Geir Drangsland

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

Cash generated from operations 2 959 2 774 3 438 11 740 13 819 Cash used in operations -2 863 -2 990 -2 414 -11 540 -11 156 Cash flow from currency hedges and financial items -14 -26 -11 -69 -25 Interest payments received 15 28 26 83 98 Interest payments made -62 -53 -64 -230 -211 Taxes paid -7 -5 -4 1 -598 Net cash flow from operating activities 1) 28 -272 973 -15 1 928 Purchases of property, plant and equipment and intangible assets -462 -316 -800 -1 558 -3 084 Sales of property, plant and equipment and intangible assets 0 2 63 3 69 Proceeds from property damage insurance 33 25 55 448 122 Dividend proceeds from joint venture 0 0 5 0 205 Sales of shares in companies and other financial instruments 0 0 0 -91 0 Net cash flow from investing activities -428 -289 -677 -1 198 -2 689 New loans raised 50 495 464 1 981 1 366 Repayments of loans -83 -1 130 -115 -2 086 -346 Dividends paid 0 0 -57 0 -57 Purchase treasury shares 0 0 -138 0 -415 Net cash flow from financing activities -33 -635 155 -105 549 Foreign currency effects on cash and cash equivalents 6 18 -22 32 25 Total change in cash and cash equivalents -428 -1 179 427 -1 286 -187 Cash and cash equivalents at start of period 1 605 2 784 2 036 2 463 2 650 Cash and cash equivalents 1 127 1 605 2 463 1 127 2 463 Cash and cash equivalents included in assets held for sale 50 0 0 50 0 Cash and cash equivalents at end of period 1 177 1 605 2 463 1 177 2 463 1) Reconciliation of net cash flow from operating activities Profit/loss before income taxes from continuing operations -470 -144 588 -566 645 Profit/loss before income taxes from discontinued operations -190 -12 -2 -321 -54 Change in working capital 94 -261 399 -37 599 Change in restructuring provisions 2 -10 -1 -15 -16 Depreciation and impairments 407 132 219 815 602 Derivatives and other fair value adjustments unrealised 134 -34 -97 171 605 Gain and losses from divestment of business activities and PPE 0 -2 -58 43 -57 Insurance compensation from property damage -33 -25 -55 -448 -122 Net financial items without cash effect 60 92 -5 307 168 Taxes paid -7 -5 -4 1 -598 Change in pension obligations and other employee benefits -17 -4 -4 -35 -19 Adjustment for other items 50 0 -8 70 175 Net cash flow from operating activities 28 -272 973 -15 1 928	NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN GROUP EQUITY

		OTHER
	PAID-IN	PAID-IN	RETAINED
NOK MILLION	EQUITY	EQUITY		EARNINGS TOTAL EQUITY
Equity 1 January 2023	6 649	2 249	-2 989	5 909
Treasury shares	-26	0	-260	-286
Profit/loss for the period	0	0	-1	-1
Other comprehensive income for the period	0	0	258	258
Equity 30 September 2023	6 623	2 249	-2 992	5 880
Treasury shares	-12	0	-117	-129
Profit/loss for the period	0	0	482	482
Other comprehensive income for the period	0	0	-16	-16
Dividends paid	0	0	-57	-57
Equity 31 December 2023	6 611	2 249	-2 700	6 161
Profit/loss for the period	0	0	-83	-83
Other comprehensive income for the period	0	0	60	60
Equity 30 June 2024	6 611	2 249	-2 723	6 138
Profit/loss for the period	0	0	-153	-153
Other comprehensive income for the period	0	0	148	148
Equity 30 September 2024	6 611	2 249	-2 728	6 132
Profit/loss for the period	0	0	-746	-745
Other comprehensive income for the period	0	0	-3	-3
Equity 31 December 2024	6 611	2 249	-3 476	5 384

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. GENERAL INFORMATION

Norske Skog ASA ("the company") and its subsidiaries ("the group" or "Norske Skog") produce, distribute and sell publication paper and packaging paper. This includes newsprint, magazine paper and recycled containerboard.

All amounts in the interim financial statements are presented in NOK million unless otherwise stated. Due to rounding, there may be differences in the summation of columns and rows.

The table below shows the applied average (un-weighted monthly) foreign exchange rates per quarter and the closing exchange rate at month ends for the most important currencies for the group.

	Q4 2024	Q3 2024	31 DEC 2024	30 SEP 2024	31 DEC 2023

AUD	7.19	7.17	7.03	7.28	6.91
EUR	11.76	11.76	11.80	11.76	11.24
GBP	14.13	13.92	14.22	14.08	12.93
USD	11.02	10.71	11.35	10.51	10.17

2. ACCOUNTING POLICIES

The interim financial statements of Norske Skog have been prepared in accordance with IAS 34 Interim Financial Reporting. The interim financial statements do not include all information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for 2023. The interim financial statements are unaudited.

The accounting policies applied in the preparation of the interim financial statements are consistent with those applied in the preparation of the consolidated financial statements for the year ended

31 December 2023, except for the adaptation of amended standards and new interpretations, which are mandatory from 1 January 2024. These changes are described in the consolidated financial statements for 2023.

The group has not early adopted any standard, interpretation or amendment that has been issued but is not yet mandatory.

3. ESTIMATES, JUDGEMENTS AND ASSUMPTIONS

Preparation of interim financial statements in accordance with IFRS implies use of estimates, which are based on judgements and assumptions that affect the application of accounting principles and the reported amounts of assets, liabilities, revenues and expenses. Actual amounts might differ from such estimates.

Recoverable amount of intangible assets and property, plant and equipment

Property, plant and equipment are tested for possible impairment charges whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. A prolonged decrease in prices or demand beyond the historical level could be an indicator of impairment and an impairment test will be prepared. The recoverable amount is the higher of an asset's fair value less sales costs or its value in use. Value in use is the present value of the future cash flows expected to be derived from a cash-generating unit. The key drivers of profitability in the industry and thus asset values for Norske Skog are product prices relative to production costs.

Accounting treatment of physical energy contracts and other financial instruments

Norske Skog's portfolio of commodity contracts consist mainly of physical contracts that are settled through physical delivery. Embedded derivatives in commodity contracts are measured at fair value and embedded derivatives that are not traded in an active marked, are assessed through valuation techniques. The fair value of embedded derivatives in physical contracts vary depending on changes in currency and price indexes.

Commodity contracts that fail to meet the "own-use exemption" criteria in IFRS 9 Financial instruments – recognition and measurement are recognised in the balance sheet and valued at fair value.

The group uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at each balance sheet date. See Note 22 in the consolidated financial statements for 2023 for more information regarding the calculation of fair value of derivatives.

See Note 3 in the consolidated financial statements for 2023 for a more thorough description of important accounting estimates and assumptions impacting the preparation of financial statements.

4. OPERATING SEGMENTS

The activities of the Norske Skog group are separated into two operating segments, Publication Paper Europe and Packaging Paper which is in line with how the group is managed internally. Norske Skog's chief operating decision maker is corporate management, who distribute resources and assess performance of the group's operating segments. Norske Skog has an integrated strategy across the three segments to maximise profits. The optimisation is carried out through coordinated sales and operational planning. The regional planning, in combination with structured sales and operational processes, ensures maximisation of profit.

Publication paper includes newsprint and magazine paper. Newsprint includes standard newsprint and improved newsprint used in newspapers, inserts, catalogues etc. Magazine paper includes the paper qualities supercalendered (SC) and lightweight coated (LWC). Magazine paper is used in magazines, catalogues, and advertising materials.

Publication Paper Europe segment encompasses production and sale of newsprint and magazine paper in Europe. All four European industrial sites and the regional sales organisation are included in the operating segment publication paper Europe.

Packaging Paper was established as a new reporting segment from 2023. The segment includes Norske Skog's production of recycled containerboard, mainly the grades testliner 3 and fluting. Testliner 3 and fluting are used by corrugators as outer and inner layers of packaging material. The segment currently comprises one machine, PM3, at Norske Skog Bruck. From the first quarter of 2025, Norske Skog Golbey PM1 will also be included in the segment.

Activities in the group that do not fall into the operating segments are presented under other activities. This includes corporate functions, sourcing solutions and other holding company activities.

Q4 2024	PUBLICATION PAPER EUROPE	PACKAGING PAPER	OTHER ACTIVITIES	ELIMINATIONS	NORSKE SKOG GROUP
Operating revenue	2 226	187	230	-155	2 488
Other operating income	143	31	4	0	178
Total operating income	2 369	218	233	-155	2 666
Distribution costs	-235	-26	0	0	-261
Cost of materials	-1 498	-143	-201	135	-1 707
Employee benefit expenses	-367	-31	-22	0	-419
Other operating expenses	-229	-16	-21	20	-246
EBITDA	40	3	-10	0	33
Restructuring expenses	-5	0	0	0	-5
Depreciation	-90	-31	-2	0	-123
Impairments	-121	0	0	0	-121
Derivatives and other fair value adjustments	-138	0	1	0	-137
Operating earnings	-313	-28	-11	0	-353
Share of operating revenue from external parties (%)	100	100	38		100

Q3 2024	PUBLICATION PAPER EUROPE	PACKAGING PAPER	OTHER ACTIVITIES	ELIMINATIONS	NORSKE SKOG GROUP
Operating revenue	2 124	212	225	-187	2 373
Other operating income	100	37	0	0	137
Total operating income	2 224	249	225	-187	2 511
Distribution costs	-234	-27	0	0	-261
Cost of materials	-1 357	-154	-195	160	-1 547
Employee benefit expenses	-356	-45	-32	0	-432
Other operating expenses	-178	-15	-17	28	-182
EBITDA	99	8	-19	0	88
Restructuring expenses	0	0	-1	0	-2
Depreciation	-90	-30	-2	0	-122
Derivatives and other fair value adjustments	36	0	-6	0	30
Operating earnings	45	-22	-28	0	-5
Share of operating revenue from external parties (%)	100	100	22		100

	PUBLICATION PAPER	PACKAGING	OTHER		NORSKE SKOG
Q4 2023	EUROPE	PAPER	ACTIVITIES	ELIMINATIONS	GROUP
Operating revenue	2 216	109	149	-119	2 357
Other operating income	811	26	2	-1	839
Total operating income	3 028	135	152	-119	3 195
Distribution costs	-209	-18	0	0	-227
Cost of materials	-1 398	-96	-110	86	-1 518
Employee benefit expenses	-378	-41	-28	1	-447
Other operating expenses	-319	-18	-19	32	-324
EBITDA	723	-38	-6	0	680
Restructuring expenses	-3	0	-2	0	-4
Depreciation	-83	-33	-3	0	-118
Impairments	-30	3	0	0	-27
Derivatives and other fair value adjustments	97	0	0	0	97
Operating earnings	704	-67	-10	0	627
Share of operating revenue from external parties (%)	100	99	23		100

2024	PUBLICATION PAPER EUROPE	PACKAGING PAPER	OTHER ACTIVITIES	ELIMINATIONS	NORSKE SKOG GROUP

Operating revenue	8 359	721	802	-649	9 233
Other operating income	807	130	4	-2	939
Total operating income	9 166	851	806	-651	10 173
Distribution costs	-904	-101	0	0	-1 005
Cost of materials	-5 274	-527	-671	544	-5 927
Employee benefit expenses	-1 446	-156	-101	2	-1 702
Other operating expenses	-773	-61	-73	104	-803
EBITDA	769	6	-39	0	736
Restructuring expenses	-12	0	-4	0	-16
Depreciation	-354	-118	-8	0	-481
Impairments	-121	0	0	0	-121
Derivatives and other fair value adjustments	-170	0	-8	0	-178
Operating earnings	112	-113	-59	0	-60
Share of operating revenue from external parties (%)	100	100	26		100

	PUBLICATION				NORSKE
2023	PAPER EUROPE	PACKAGING PAPER	OTHER ACTIVITIES	ELIMINATIONS	SKOG GROUP

Operating revenue	9 591	246	428	-373	9 891
Other operating income	1 550	116	6	-6	1 666
Total operating income	11 140	362	434	-379	11 557
Distribution costs	-804	-40	0	0	-845
Cost of materials	-5 579	-248	-281	245	-5 863
Employee benefit expenses	-1 500	-157	-117	6	-1 768
Other operating expenses	-1 006	-64	-77	129	-1 019
EBITDA	2 250	-147	-41	0	2 062
Restructuring expenses	-5	0	-28	0	-32
Depreciation	-379	-77	-9	0	-464
Impairments	-30	3	0	0	-27
Derivatives and other fair value adjustments	-605	0	0	0	-605
Operating earnings	1 232	-221	-77	0	934
Share of operating revenue from external parties (%)	100	99	15		100

SEGMENT OTHER ACTIVITIES	Q4 2024	Q3 2024	Q4 2023	2024	2023

OTHER OPERATING REVENUE
Corporate functions	17	24	28	90	116
Sourcing solutions	216	201	123	716	317
Total	233	225	152	806	434

EBITDA
Corporate functions	-12	-17	-6	-42	-43
Sourcing solutions	2	-2	0	3	2
Total	-10	-19	-6	-39	-41

5. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

2024	PROPERTY, PLANT AND EQUIPMENT	RIGHT-OF-USE ASSETS	TOTAL PROPERTY PLANT AND EQUIPMENT	INTANGIBLE ASSETS
Carrying value at start of period	8 483	84	8 567	12
Additions*	1 579	107	1 686	5
Depreciation	-467	-45	-513	-5
Impairments	-272	-25	-297	0
Disposals	-2	-2	-4	0
Reclassified to assets held for sale	-58	-33	-91	-1
Currency translation differences	372	2	374	0
Carrying value at end of period	9 635	88	9 723	11

*The difference between additions and the line Purchases of property, plant and equipment and intangible assets in the condensed consolidated statement of cash flows is due to right-of-use assets, accruals for payments and other additions with no cash impact.

PER OPERATING SEGMENTS

TOTAL PROPERTY PLANT AND 31 DEC 2024 EQUIPMENT	INTANGIBLE ASSETS
Publication paper Europe 2 936	4
Packaging paper 6 767	1
Other activities 20	6
Total 9 723	11

6. ENERGY CONTRACTS, DERIVATIVES AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

		ASSETS		LIABILITIES
31 DEC 2024		CURRENT NON-CURRENT		CURRENT NON-CURRENT
Energy contracts and embedded derivatives in energy contracts (level 3)	9	0	119	204
Energy contracts (level 2)	0	0	1	0
Other derivatives and financial instruments carried at fair value (level 2)	1	0	71	0
Total	10	0	192	204

Norske Skog's portfolio of commodity contracts consists mainly of physical energy contracts some of which contain embedded derivatives related to currency. Certain of the energy contracts are measured at fair value. The fair value of commodity contracts is especially sensitive to future changes in energy prices in the region they cover.

The contract prices for energy in Norway are sensitive to change in publication paper prices and pulpwood prices. Externally forecasted price increases/decreases for paper increases/decreases the cost of energy. Contract prices vs market prices for energy have developed in opposite directions in the relevant energy areas in Norway, while a weaker NOK has impacted embedded derivatives negatively. There has been a net negative change in the fair value of the contracts and embedded derivatives in the quarter of NOK 137 million.

Changes in the value of energy contracts, commodity contracts and embedded derivatives in contracts are presented in the income statement line Derivatives and other fair value adjustments. A sensitivity analysis of the impact on profit after tax of fluctuations in energy prices, currency and price indices is given in Note 5 in the consolidated financial statements for 2023.

Financial derivative contracts are accounted for at fair value and changes in contracts are presented in the income statement under financial items. A sensitivity analysis of the impact on profit after tax of fluctuations in currency is given in Note 5 in the consolidated financial statements for 2023.

The valuation techniques used are described in Note 22 in the consolidated financial statement for 2023.

7. INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

Investments in associated companies and joint ventures are accounted for in accordance with the equity method. The carrying value is NOK 15 million on 31 December 2024.

Norske Skog holds a 50% share of Porsnes Utvikling AS, an equal ownership joint venture between Ringstad Næringsutvikling AS and Norske Skog Saugbrugs AS. On 31 December 2024 this has a carrying value of NOK 7 million.

Norske Skog holds a 26% share of Circa Group AS that has been suspended from trading on Euronext Growth following its filed petition for bankruptcy on 7 October 2024. Norske Skog had in third quarter an impairment of the shares to the reflect the market value of nil. Total loss in 2024 amounts to NOK 65 million.

8. FINANCIAL ITEMS AND DEBT REPAYMENTS

FINANCIAL ITEMS

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Net interest expenses	-37	-27	-39	-128	-115
Currency gains/losses*	-49	-41	44	-175	-71
Other financial items	-31	-35	-39	-139	-89
Total financial items	-117	-103	-34	-441	-275

*Currency gains/losses on trade receivables and trade payables are reported as operating revenue and cost of materials respectively.

FINANCING

Norske Skog has credit facility agreements in an aggregate amount of EUR 265 million to finance its investment in the conversion projects to recycled containerboard. EUR 193 million is for the project at Norske Skog Golbey and EUR 72 million for the project at Norske Skog Bruck. The borrowing entities are Norske Skog Bruck GmbH and Norske Skog Golbey SAS, and the facilities are fully guaranteed by Norske Skog ASA.

The facilities are drawn as capital expenditures are incurred, and repayment is scheduled to commence approximately upon completion of each respective project with average maturity towards the end of 2030. As of 31 December 2024, the outstanding amount was EUR 228 million.

The EUR 54 million credit facility for the waste-to-energy plant in Norske Skog Bruck GmbH commenced repayments in the fourth quarter of 2022. As of 31 December 2024, the outstanding amount was EUR 35 million. The final maturity date is in 2028.

The remaining financing arrangements for the group includes leasing, factoring, and other credit facilities at the mill level.

The financing covenants applicable to Norske Skog on a consolidated basis are (i) freely available and unrestricted cash and cash equivalents of minimum NOK 100 million, (ii) EBITDA* to net interest costs of minimum 2.0:1, (iii) book equity to total assets of minimum 25%, and (iv) minimum LTM EBITDA* of NOK 400 million. In addition, there are various company specific financial covenants applicable to the subsidiaries acting as borrowers under the respective credit facilities.

*The EBITDA used in the financial covenants' calculations may differ from the EBITDA shown in the financial reporting due to adjustment requirements in the financing agreements.

BONDS

MILLION	MATURITY	CURRENCY	INTEREST RATE	NOMINAL VALUE	AMOUNT OUTSTANDING 31 DEC 2024
NSKOG03	June 2029	NOK	NIBOR +4.5%	1 600	1 400

DEBT REPAYMENT SCHEDULE*

NOK MILLION	2025	2026	2027	2028	2029-
Bonds	0	0	0	0	1 400
Debt to credit institutions	749	616	958	638	817
Total	749	616	958	638	2 217

*Not including items relating to leases.

Total debt listed in the repayment schedule differs from the carrying value in the balance sheet. This is due to the amortized cost principle.

Debt repayment in the first quarter 2025 amounts to NOK 223 million and relates to repayment of project debt at Norske Skog Golbey and Norske Skog Bruck.

Financed amounts from securitisation arrangements is classified as interest-bearing current liabilities. New loans are initiated on a consecutive basis based on new trade receivables included under the securitization agreement. The liability is in its nature current, and Norske Skog does not have an unconditional right to defer settlement beyond twelve months. The liabilities are liabilities that are settled through its normal operating cycle. The corresponding trade receivable is derecognised when the customer pays it.

9. NORSKE SKOG SAUGBRUGS ROCKSLIDE

On 27 April 2023 Norske Skog Saugbrugs was impacted by a rockslide that destroyed parts of the building and damaged machinery and equipment related to PM6. The damages to the building and infrastructure were extensive and PM6 has been stopped from the time of the impact.

Work has continued to secure the site from further rockslide and rebuild the damaged building and infrastructure.

Norske Skog Saugbrugs is covered for both property damage and business interruption as part of its group insurance program.

Property damage was mainly related to assets that were largely depreciated to low values. A write down of NOK 10 million related to destroyed assets was recognised in 2023.

On 2 November 2023 Norske Skog announced that it has agreed a settlement with the insurers in relation to both business interruption and property damage.

In relation to business interruption for the coverage period of 18 months from the date of the incident an amount of NOK 850 million was agreed. This has been recognised in full in 2023. NOK 635 million of the insurance settlement proceeds was received in 2023 while the remaining NOK 215 million was received in the first quarter of 2024.

The property damage to building structures and cost of reinstatement of these as well as costs to secure rock formations will be covered by Norske Skog Saugbrugs, but fully reimbursed by the insurers. In fourth quarter NOK 33 million has been recognised and capitalised as property, plant and equipment.

In addition, a settlement of NOK 1 billion was agreed for investments in production equipment. Of this NOK 385 million has been paid in 2023. On 31 January 2025 a settlement agreement was reached regarding all remaining compensation related to the rockslide at Saugbrugs. Please see description in note 13 Events After the Balance Sheet Date.

10. PRINCIPAL SHAREHOLDERS

	NUMBER OF SHARES	OWNERSHIP %

BYGGMA ASA	17 430 431	20.55
UBS Europe SE	8 178 000	9.64
DRANGSLAND KAPITAL AS	5 316 148	6.27
VERDIPAPIRFONDET FONDSFINANS NORGE	3 300 000	3.89
INTERTRADE SHIPPING AS	3 000 000	3.54
VOLDSTAD EIENDOM AS	2 385 156	2.81
J.P. Morgan SE	2 384 473	2.81
State Street Bank and Trust Comp	1 228 332	1.45
Nordnet Bank AB	895 561	1.06
INAK 3 AS	700 000	0.83
Pershing Securities Limited	688 585	0.81
Saxo Bank A/S	570 598	0.67
J.P. Morgan SE	566 669	0.67
The Bank of New York Mellon SA/NV	520 652	0.61
SES AS	500 000	0.59
GÅSØ NÆRINGSUTVIKLING AS	425 000	0.50
DNB BANK ASA	424 922	0.50
Goldman Sachs & Co. LLC	420 000	0.50
HOLMEN SPESIALFOND	400 000	0.47
SPAREBANK 1 MARKETS AS	390 000	0.46
Other shareholders	35 113 708	41.39
Total	84 838 235	100.00

The data is extracted from VPS 6 February 2025. Whilst every reasonable effort is made to verify all data, VPS cannot guarantee the accuracy of the analysis.

11. THE NORSKE SKOG SHARE

	31 DEC 2024	30 SEP 2024	31 DEC 2023
Share price (NOK)	24.50	35.40	41.40
Book value of equity per share (NOK)	63.46	72.28	72.62

Following the share repurchase programme executed in second half of 2023, the General Assembly resolved on 11 April 2024 cancellation of these shares by capital reduction. The share capital reduction was completed on 28 June 2024.

12. RELATED PARTIES

Investor AS and subsidiaries Drangsland Kapital AS and Byggma ASA are related parties to Norske Skog through the ownership in Norske Skog ASA and the CEO Geir Drangsland being the ultimate owner for these companies.

There have not been any transactions with related parties in 2024.

13. EVENTS AFTER THE BALANCE SHEET DATE

On 31 January 2025 Norske Skog Saugbrugs and its insurance company has agreed on a final settlement of all remaining insurance claims related to the rockslide at the Saugbrugs site on 27 April 2023.

The settlement amount of NOK 540 million will be jointly covered by the insurance company, the Norwegian Natural Perils Pool and the reinsurers. Payment of the full settlement amount is expected during the first quarter of 2025 and will thus be recognised in EBITDA in the first quarter of 2025.

14. DISCONTINUED OPERATIONS

In December 2024 a concrete sales process was initiated for the sale of Norske Skog Industries Australia Ltd with subsidiaries. The plan to sell was approved by the board on 20 December 2024. The sale of Norske Skog Industries Australia Ltd. is expected to be completed within a year from the reporting date.

The business of Norske Skog Industries Australia Ltd with subsidiaries represented the segment publication paper Australasia. On 31 December 2024, publication paper Australasia was classified as a disposal group held for sale and as a discontinued operation.

With publication paper Australasia being classified as discontinued operations, the segment is no longer presented in the segment note.

The results of publication paper Australasia for the year are presented below:

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Operating revenue	458	494	497	1 855	1 894
Other operating income	2	1	71	9	72
Total operating income	459	496	568	1 865	1 967
Distribution cost	59	65	66	247	253
Cost of materials	299	311	304	1 176	1 152
Fixed cost	117	117	117	522	482
EBITDA	-15	3	80	-81	80
Restructuring expenses	8	0	5	11	6
Depreciation	9	11	12	37	50
Impairments	154	0	62	176	62
Operating earnings	-186	-8	2	-305	-38
Financial items	-4	-4	-4	-16	-16
Income taxes	0	0	0	0	0
Profit loss from discontinued operations	-190	-12	-2	-321	-54

Earnings per share from discontinued operations
Basic earnings per share (NOK)	-2.25	-0.14	-0.02	-3.78	-0.64
Diluted earnings per share (NOK)	-2.25	-0.14	-0.02	-3.78	-0.64

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023
Profit/loss from discontinued operations Items that may be reclassified subsequently to profit or loss	-190	-12	-2	-321	-54
Currency translation differences	82	-62	-7	-36	-62
Reclassified translation differences upon divestment of foreign operations	0	0	0	-7	5
Other comprehensive income discontinued operations	82	-62	-7	-43	-57
Total comprehensive income discontinued operations	-109	-74	-9	-364	-111

The major classes of assets and liabilities of publication paper Australasia classified as held for sale on 31 December are as follows:

NOK MILLION	31 DEC 2024

Assets
Intangible assets	1
Property, plant and equipment	91
Inventories	242
Trade and other receivables	245
Other current assets	1
Cash and cash equivalents	50
Assets Held for Sale	631

Liabilities
Employee benefit obligations	3
Interest-bearing non-current liabilities	46
Other non-current liabilities	101
Trade and other payables	267
Interest-bearing current liabilities	12
Other current liabilities	33
Liabilities directly associated with the assets held for sale	462
Net assets directly associated with the assets held for sale	169

The net cash flows incurred by publication paper Australasia are as follows:

NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Net cash flow from operating activities	21	-20	73	-36	-34
Net cash flow from investing activities	-4	-15	54	-124	22
Net cash flow from financing activities	-17	25	-4	1	51
Foreign currency effects on cash and cash equivalents	-3	1	-3	-1	-2
Total change in cash and cash equivalents discontinued operations	-3	-10	120	-160	38

15. HISTORICAL FIGURES

		RESTATED	RESTATED		RESTATED
INCOME STATEMENT	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023
Total operating income	2 666	2 511	2 746	2 250	3 195
Variable costs*	-1 968	-1 808	-1 657	-1 498	-1 745
Fixed costs*	-665	-615	-624	-602	-771
EBITDA	33	88	464	150	680
Restructuring expenses	-5	-2	0	-9	-4
Depreciation	-123	-122	-119	-117	-118
Impairments	-121	0	0	0	-27
Derivatives and other fair value adjustment	-137	30	44	-115	97
Operating earnings	-353	-5	389	-91	627
Share of profit in associated companies and joint ventures	0	-36	-25	-5	-5
Financial items	-117	-103	-24	-197	-34
Profit/loss before income taxes	-470	-144	341	-293	588
Income taxes	-85	3	-66	54	-104
Profit/loss from continuing operations	-555	-141	275	-239	484

* As defined in Alternative Performance Measures

SEGMENT INFORMATION	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023
Publication paper Europe
Total operating income	2 369	2 224	2 514	2 058	3 028
EBITDA	40	99	464	166	723
Deliveries (1 000 tonnes)	291	283	279	262	270
Packaging paper
Total operating income	218	249	207	177	135
EBITDA	3	8	2	-7	-38
Deliveries (1 000 tonnes)	41	42	41	38	29
Other activities
Total operating income	233	225	189	158	152
EBITDA	-10	-19	-1	-9	-6

DISCONTINUED OPERATIONS	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023
Publication paper Australasia
Total operating income	459	496	472	438	568
EBITDA	-15	3	6	-74	80
Deliveries (1 000 tonnes)	57	61	60	59	63

BALANCE SHEET	31 DEC 2024	30 SEP 2024	30 JUN 2024	31 MAR 2024	31 DEC 2023

Total non-current assets	10 037	10 132	9 660	9 633	9 068
Inventories	1 390	1 649	1 523	1 472	1 360
Trade and other receivables	1 253	1 235	1 069	1 565	1 635
Cash and cash equivalents	1 127	1 605	2 784	1 915	2 463
Other current assets	659	202	164	59	229
Total current assets	4 430	4 692	5 540	5 011	5 687
Total assets	14 467	14 824	15 201	14 644	14 755
Total equity	5 384	6 132	6 138	6 004	6 161
Total non-current liabilities	5 503	5 739	5 275	5 757	5 680
Trade and other payables	2 118	2 169	2 076	2 229	2 256
Other current liabilities	1 000	783	1 712	653	658
Total current liabilities	3 580	2 952	3 789	2 883	2 914
Total liabilities	9 083	8 691	9 063	8 640	8 594
Total equity and liabilities	14 467	14 824	15 201	14 644	14 755

CASH FLOW	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023

Reconciliation of net cash flow from operating activities
EBITDA from continuing operations	33	88	464	150	680
EBITDA from discontinued operations	-15	3	6	-74	80
Change in working capital	94	-261	201	-71	399
Payments made relating to restructuring activities	-11	-11	-6	-13	-11
Gain and losses from divestment	0	-2	0	46	-58
Insurance compensation from property damage	-33	-25	-338	-52	-55
Cash flow from net financial items	-61	-51	-52	-51	-48
Taxes paid	-7	-5	15	-2	-4
Other	29	-7	9	-2	-11
Net cash flow from operating activities	28	-272	299	-69	973

Purchases of property, plant and equipment and intangible assets	-462	-316	-442	-338	-800
Proceeds from property damage insurance	33	25	338	52	55
Net divestments	1	2	0	-91	68
Net cash flow from investing activities	-428	-289	-104	-377	-677

Net cash flow from financing activities	-33	-635	683	-118	155

Foreign currency effects on cash and cash equivalents	6	18	-9	17	-22
Total change in cash and cash equivalents	-428	-1 179	869	-548	427

ALTERNATIVE PERFORMANCE MEASURES

The European Securities and Markets Authority's (ESMA) has defined guidelines for alternative performance measures (APM). An APM is defined as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specific in the applicable financial reporting framework (IFRS). The company uses EBITDA, EBITDA margin and return on capital employed (annualized) to measure operating performance on group level. It is the company's view that the APMs provides the investors relevant and specific operating figures which may enhance their understanding of the performance.

EBITDA, EBITDA margin, variable costs, fixed costs, return on capital employed and net interest-bearing debt are defined by the company below.

EBITDA: Operating earnings for the period, before restructuring expenses, depreciation and amortization and impairment charges, derivatives and other fair value adjustments, determined on an entity, combined or consolidated basis. EBITDA is used for providing consisting information of operating performance and cash generating which is relative to other companies and frequently used by other stakeholders.

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Operating earnings	-353	-5	627	-60	934
Restructuring expenses	5	2	4	16	32
Depreciation	123	122	118	481	464
Impairments	121	0	27	121	27
Derivatives and other fair value adjustments	137	-30	-97	178	605
EBITDA	33	88	680	736	2 062

EBITDA margin: EBITDA/total operating income. EBITDA margins assist in providing a more comprehensive analysis of operating performance relative to other companies.

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

EBITDA	33	88	680	736	2 062
Total operating income	2 666	2 511	3 195	10 173	11 557
EBITDA margin	1.2 %	3.5 %	21.3 %	7.2 %	17.8 %

Variable costs: Distribution costs + cost of materials

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Distribution costs	261	261	227	1 005	845
Cost of materials	1 707	1 547	1 518	5 927	5 863
Variable costs	1 968	1 808	1 745	6 932	6 708

Fixed costs: Employee benefit expenses + other operating expenses.

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

Employee benefit expenses	419	432	447	1 702	1 768
Other operating expenses	246	182	324	803	1 019
Fixed costs	665	615	771	2 505	2 787

Return on capital employed (annualised): (Annualised EBITDA – Annualised Capital expenditure)/Capital employed (average).

		RESTATED	RESTATED		RESTATED
NOK MILLION	Q4 2024	Q3 2024	Q4 2023	2024	2023

EBITDA	33	88	680	736	2 062
Capital expenditure	462	316	800	1 558	3 084
Average capital employed	10 679	10 115	9 231	10 103	8 172
Return on capital employed (annualised)	-16.0 %	-9.0 %	-5.2 %	-8.1 %	-12.5 %

NOK MILLION	31 DEC 2024	30 SEP 2024	31 DEC 2023

Intangible assets	11	12	12
Property, plant and equipment	9 723	9 740	8 567
Assets held for sale	631	0	0
Inventory	1 390	1 649	1 360
Trade and other receivables	1 253	1 235	1 635
Trade and other payables	-2 118	-2 169	-2 256
Capital employed	10 890	10 467	9 317

Net interest-bearing debt: Net interest-bearing debt consist of bond issued and other interest-bearing liabilities (current and non-current) reduced by cash and cash equivalent.

NOK MILLION	31 DEC 2024	30 SEP 2024	31 DEC 2023

Interest-bearing non-current liabilities	4 475	4 686	4 536
Interest-bearing current liabilities	771	636	517
Cash and cash equivalents	-1 127	-1 605	-2 463
Net interest-bearing debt	4 119	3 717	2 590

Capital expenditure (Capex): Purchases of property, plant and equipment and intangible assets.

Maintenance capex: Capex required to maintain the group's current business.

AI Terminal

Norske Skog ASA

3687_rns_2025-02-07_60f37308-075e-4749-8a71-58c6e3f9ade8.pdf

Discontinuation of Publication Paper Australasia reporting segment

Excess capacity continues to characterise markets

Entering the long-term growing market for recycled containerboard

Reviewing future opportunities at Saugbrugs

NOKm NOKm (and margin)

Containerboard production

-

-

Projects at Norske Skog Bruck completed Projects at Norske Skog Golbey completed Q1 2025

Biomass boiler JV

–

–

Press release

Coping with challenging markets

Operations

Publication paper

Packaging paper

Key figures, fourth quarter of 2024 *

Status projects

Norske Skog Golbey conversion projects

Norske Skog Saugbrugs BCTMP-production

Outlook

About Norske Skog

Presentation and quarterly material

Håndtering av utfordrende markeder

Drift

Publikasjonspapir

Norske Skog ASA

Emballasjepapir

Nøkkeltall, tredje kvartal 2024*)

Status prosjekter

Norske Skog Golbey konverteringsprosjekter

Norske Skog Saugbrugs BCTMP-produksjon

Utsikter

Om Norske Skog

Presentasjon og kvartalsmateriell

INTRODUCTION

KEY FIGURES

o Discontinuation of publication paper Australasia reporting segment

o Excess capacity continues to characterise markets

o Reviewing future opportunities at Norske Skog Saugbrugs

PROFIT/LOSS CONTINUING OPERATIONS

DIVERSIFICATION BEYOND PUBLICATION PAPER

SEGMENT INFORMATION

PUBLICATION PAPER EUROPE

EUROPE EUROPE TOTAL OPERATING INCOME EBITDA

PACKAGING PAPER

PACKAGING PAPER PACKAGING PAPER

TOTAL OPERATING INCOME EBITDA

OTHER ACTIVITIES

DISCONTINUED OPERATIONS

PUBLICATION PAPER AUSTRALASIA

CASH FLOW

BALANCE SHEET

OUTLOOK

INTERIM FINANCIAL STATEMENTS, FOURTH QUARTER OF 2024 CONDENSED CONSOLIDATED INCOME STATEMENT

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEET

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN GROUP EQUITY

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

1. GENERAL INFORMATION

2. ACCOUNTING POLICIES

3. ESTIMATES, JUDGEMENTS AND ASSUMPTIONS

4. OPERATING SEGMENTS

5. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

PER OPERATING SEGMENTS

6. ENERGY CONTRACTS, DERIVATIVES AND FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

7. INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT VENTURES

8. FINANCIAL ITEMS AND DEBT REPAYMENTS

FINANCIAL ITEMS

FINANCING

BONDS

DEBT REPAYMENT SCHEDULE*

9. NORSKE SKOG SAUGBRUGS ROCKSLIDE

10. PRINCIPAL SHAREHOLDERS

11. THE NORSKE SKOG SHARE

**Nøkkeltall, tredje kvartal 2024*)**