Norske Skog ASA

Investor Presentation • Jun 17, 2020

Strategic update Introducing packaging conversion projects 17 June 2020

www.norskeskog.com

Executing on strategy Sven Ombudstvedt Chief Executive Officer

Strategy

Norske Skog entering the packaging market

Converting PM1 at Golbey and PM3 at Bruck, entering the containerboard market with 765,000 tonnes of cost-leading supply Brownfield conversion projects limiting the total investment to approximately EUR 350m during 2021 to 2023 Conversions provided by experienced and best-in-class machine suppliers based on years of studies and extensive planning Standstill at machines to be converted limited to approximately three months at end of project, minimising loss of cash flows Balancing the newsprint market through capacity reductions of 360,000 tonnes in Western Europe Final investment decisions expected in H1 2021, estimated production start in H1 2023, full capacity utilisation end of 2025 Containerboard market driven by megatrends within e-commerce and sustainable packaging, securing long-term operations Constructive dialogues with banks and export credit agencies Estimated EBITDA from containerboard machines of approximately EUR 70-80m at full utilisation¹

Milestone in transformation towards earnings growth

Illustrative over-the-cycle EBITDA

Exciting portfolio of fibre and energy projects

Introducing 765,000 tonnes of containerboard capacity

Remain a committed producer of publication paper and maximise cash flows

Entering the containerboard market Tore Hansesætre Senior Vice President Strategic Projects

Value enhancing conversions in continental Europe

Norske Skog Golbey – France

• Convert PM1 to 555,000 tonnes of recycled containerboard capacity¹
• Total capex estimate of EUR 250m

• Convert PM3 to 210,000 tonnes of recycled containerboard capacity²
• Total capex estimate of EUR 90m

• Golbey and Bruck centrally located in continental Europe
• Established presence in recycled fibre markets
• Among the top brownfield opportunities in Europe
• Large industrial sites with scale advantages
• Boilers secure sustainable and competitive steam supply
• Machine specifications enable cost-leadership positions

Becoming a top 10 recycled containerboard producer

Norske Skog to focus on the main recycled containerboard products

Unbleached testliner

Weight range: 90-200g per sqm Fibre: 100% recovered fibre Use: Liner in corrugated board¹

Recycled fluting

Weight range: 75-170g per sqm Fibre: 100% recovered fibre Use: Fluting in corrugated board¹

Top 10 recycled containerboard suppliers in Europe

Capacity, million tonnes

Favourable trends underpinning containerboard demand

European recycled containerboard demand

Million tonnes

30

Recycled fluting Unbleached testliner White-top tesliner

Demand trends

• Changing consumer shopping patterns
• Industrial packaging focusing on sustainability
• Fibre-based packaging substituting plastics
• Increase in consumer spending
• Population and industrial production growth

Strong price and margin environment

Introducing first-quartile containerboard capacity

11 Source: External industry consultant (third-party), cost data as of Q3 2019 1) Europe excluding Russia

Sustainable packaging and paper production at Golbey

• Introducing 555,000 tonnes of cost-leading containerboard capacity
• Well progressed discussions with best-in-class machine suppliers
• Proven and industry-standard equipment and technical solutions
• Machine well suited for light-weight grades due to speed and width
• Experienced producer of pulp & paper based on recycled fibre
• Established and close relations to recycled fibre suppliers
• Perfect fit with new biomass boiler, supplying environmental and cost efficent steam from waste wood and sludge
• Mill electricity consumption reduced by ~30% following conversion
• Industry-leading PM2 machine with 330,000 tonnes newsprint capacity will continue production unaffected

Industrial and circular ecosystem at Bruck

• 210,000 tonnes of new and cost-efficient containerboard capacity
• Well progressed discussions with best-in-class machine suppliers
• Proven and industry-standard equipment and technical solutions
• Machine width of 5.3 metres ideal to produce containerboard
• Experienced producer of pulp & paper based on recycled fibre
• Established and close relations to recycled fibre suppliers
• Integrating perfectly with state-of-the-art boiler starting in H1 2022, securing environmental steam supply from waste materials
• Significant reduction in carbon footprint with steam replacing gas
• High quality PM4 machine of 265,000 tonnes LWC capacity will continue production unaffected

Timeline

Concluding remarks Sven Ombudstvedt Chief Executive Officer

Strategy

Diversify and innovate through fibre and energy

• Ambition to further diversify and grow revenue streams

• Leverage unique fibre competence and quality assets
• Recent and successful increase of pellets capacity in New Zealand
• Revenues from Bruck multifuel boiler starting in H1 2022
• Golbey biomass boiler to ensure sustainable steam supply from H1 2023
• Working to commercialise CEBINA and biocomposites
• Attractive commercial potential within market pulp (BCTMP)
• Range of other exciting projects progressing rapidly

Our ambitions

• Become a producer of renewable packaging
• Remain a producer of all publication paper grades
• Explore new fibre and energy opportunities
• Develop fibre operations in Norway
• Improve Australasian operations
• Unchanged dividend policy

CEBINA video link

Norske Skog ASA Postal address: P.O. Box 294 Skøyen, 0213 Oslo, Norway Visitors: Sjølyst Plass 2, 0278 Oslo, Norway

Phone: +47 22 51 20 20 Email: info@norskeskog.com Email: ir@norskeskog.com

This presentation contains statements regarding the future in connection with Norske Skog's growth initiatives, profit figures, outlook, strategies and objectives. All statements regarding the future are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements.