Norske Skog ASA

Investor Presentation • Nov 25, 2021

Capital Markets Day

25 November 2021

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Today's agenda

09:00

Publication paper

Sven Ombudstvedt (CEO)

Packaging paper 09:40

10:30 Snack

10:50

11:30

Energy and bio products

Lars Sperre (SVP Corporate Strategy) Hugo Harstad (MD CEBINA and CEBICO)

Tore Hansesætre (SVP Strategic Projects)

Marleen van den Berg (VP Containerboard Sales)

Financial review

Rune Sollie (CFO)

11:55 Outlook Sven Ombudstvedt (CEO)

Q&A

between sessions

Sustainable and innovative industry

• Leading publication paper producer with six industrial sites globally
• Transition into markets with strong growth outlook and higher margins
• Waste-to-energy project to be completed in Q2 2022 improving green energy mix
• Becoming a leading independent European recycled containerboard company in 2023
• Promising biochemicals and materials projects with CEBINA, CEBICO and Circa
• Industrial sites portfolio foundation for further development in energy and bio products
• 3 1) Norske Skog is the largest shareholder with ~26% ownership position in Circa; 2) Installed capacity for biofuel and waste from recycled paper of 230 MW. Energy mainly used internally in the publication paper production process

Reducing the environmental impact is at the forefront of all business decisions

Carbon footprint development and ambition

Kg CO² direct and indirect (scope 1 and 2) emissions per tonne produced¹

CO² intensity significantly below the EU ETS² benchmark in 2020

A-Excellent reporting in line with best practice. Good description of material issues and relevant results. Clear strategy and specific, quantifiable targets.

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Highlighted green energy initiatives

• ✓ New energy efficiency initiatives introduced during 2021⁴
• ✓ Bruck waste-to-energy facility reducing CO² footprint by 150k tonnes, starting Q2 2022
• ✓ New Golbey biomass boiler⁵ from Q2 2024, producing green steam and electricity from sludge and waste wood

4 1) Scope 1 includes direct emissions from stationary fuel combustion, transportation and mobile sources. Scope 2 includes indirect emissions from steam and power imports; 2) ETS = Emission Trading Scheme, Norske Skog is a net receiver of carbon emission allowances, indicating that Norske Skog is better than the industry emission intensity benchmark; 3) GRI = Global Reporting Initiative; 4) The NEXT and Therminator energy efficiency projects announced at the Norske Skog Saugbrugs mill in March 2020 have come on stream in 2021 to further improve the energy efficiency of Norske Skog. The projects are supported by the NOx Fund and Enova; 5) Being developed in partnership with Pearl Infrastructure Capital and Véolia. Norske Skog to hold 10% of the equity in the development company, Green Valley Energie

CSR reporting applying the GRI³ guidelines since 2003

Sustainability and circularity is a top priority for raw materials sourcing and waste handling

5 1) Certifications are generally provided by PEFC (Programme for the Endorsement of Forest Certification) and FSC (Forest Stewardship Council), and set high standards with regards to forests being responsibly managed in a socially beneficial and environmentally conscious manner. All Norske Skog mills utilising wood have third-party verified Chain of Custody (CoC) certification; 2) Comprise of lower grade wood (like roundwood and chips) not suitable for building and construction materials; 3) 11% inorganic fillers and 1% purchased pulp; 4) Purchased electricity, including limited internal electricity production from green energy sources other than biomass; 5) Recovered heat energy mainly from the thermomechanical pulping (TMP) process; 6) Pro-forma for current publication paper capacity following ceased production at Saugbrugs PM5 end of 2020, ceased production at Tasman end of Q2 2021, and NEXT / Therminator energy efficiency initiatives at Saugbrugs

Working with leading industry initiatives and technologies to capture and utilise CO²

Saugbrugs participates in Borg CO2 Skogn supports Ocean GeoLoop

• Borg CO2¹ develops CCUS² for industry cluster in Norway, and will test CCUS technology from CO2 Capsol
• Norske Skog Saugbrugs participates as one of the industrial partners in Borg CO2
• In total, the cluster represents 700k tonnes of CO² emissions (~70% bio-CO² ), ambition to capture ~90% (~630k tonnes)
• Northern Lights³ will provide transport and storage, utilising newly designed ships and a 100km long pipeline

• The CO² will be injected for permanent storage 2.6km below the North Sea seabed (start in 2024)

• Supporting Ocean GeoLoop to develop and pilot its CCUS² technologies

• The technologies build on decades of research, lab tests and prototypes
• Captures close to 100% of CO² from flue gas and uses no harmful chemicals in the process
• Piloting at Norske Skog Skogn during Q2 2022 with demonstration scale CO² capture capacity
• Norske Skog holds ~2% of Ocean GeoLoop and is represented on its board of directors

Exploring CO² as a resource for utilisation

• Fossil CO² reduction, capture and storage is incentivised by various national and international schemes
• Developing economically viable models for capture of bio-CO² (biogenic CO² ) has received less attention
• Norske Skog explores a range of opportunities to utilise bio-CO² as a valuable resource
• Opportunities range from use in production of animal food to several types of advanced fuels
• Developing bio-CO² opportunities into actionable projects is a long-term process

1) Subsidiary of Borg Havn IKS; 2) CCUS = Carbon Capture, Utilisation and Storage; 3) Joint venture between partners Equinor, Shell and Total. Delivers CO² transport and storage services. Initially, Northern Lights will have the capacity to transport, inject and store up to 1.5m tonnes of CO² per year, but the ambition it to increase the capacity to at least 5m tonnes per year as demand grows

⁶ Source: Borg CO2, Northern Lights

Publication

paper

Significant publication paper demand impact from COVID-19, but demand stabilising as societies reopen

22.1 24.1 23.6 22.4 21.3 19.8 19.0 18.1 17.8 16.9 15.4 12.3 12.5 0 5 10 15 20 25 30 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LTM (Oct) Western European domestic demand Net exports Publication paper demand Western Europe, million tonnes Expect resilient tail-end demand 1

Annual demand decline of ~5% expected to continue from 2023 Demand stabilising as COVID-19 restrictions ease

Unprecedented reduction of installed capacity last 18 months driven by low paper prices and high fibre and energy costs

1.8 ~13.7m tonnes Western European publication paper capacity (Q3 2021) UPM Stora Enso Holmen Sappi Palm Others 5.1 2.5 1.2 1.0 0.9 0.9 0.7 0.60.6 ~13.7m tonnes Western European publication paper capacity (Q3 2021) Germany Finland Sweden Austria Norway Belgium UK Switzerland France Netherlands

Remaining publication paper capacity in Western Europe as of Q3 2021

• European capacity News SC LWC Industry capacity split 40% 25% 35% NSKOG capacity split 65% 20% 15% Norske Skog share 22% 10% 5%
• Industry capacity of ~13.7m tonnes across 30-35 mills (15-20 companies)
• Announced 1m tonnes of newsprint and SC closures during 2022-2023
• Represents ~12% of newsprint and ~10% of SC capacity

Capacity reductions and very low stock levels have tightened the market balance

Tight market balance and significant cost increases have driven highly necessary increases in publication paper prices

News 45g SC rotogr. 56g LWC offset 60g

Fibre and energy costs have squeezed industry margins to unsustainable levels in a highly uncertain global environment

Sources: RISI, Landbruksdirektoratet, Nord Pool, European Energy Exchange (EEX), Dutch Title Transfer Facility (TTF) 1) 1.11 sorted graphic paper for deinking in Germany; 2) Norwegian spruce pulpwood price; 3) Dutch Title Transfer Facility (TTF) natural gas price

Publication paper production is energy and fibre intensive Strong focus on sustainability in sourcing

13 1) Pro-forma for current publication paper capacity following ceased production at Saugbrugs PM5 end of 2020, ceased production at Tasman end of Q2 2021, and NEXT / Therminator energy efficiency initiatives at Saugbrugs; 2) Includes chemicals, filler, packaging, machine clothing and more; 3) Purchased electricity, including limited internal electricity production from other green energy sources than bio fuels; 4) Recovered heat energy mainly from the thermomechanical pulping (TMP) process

Longstanding priority to be a reliable supplier of all publication paper grades to a broad customer base

~30% of Australasian sales to two long-relationship customers

• Norske Skog has more than 500 customers across the world
• Sales are split between Europe ~70%, Oceania ~15%, Asia ~10% and other 5%
• Highly divsersified customer base in Europe with top 15 customers accounting for ~35% of sales
• Higher customer concentration in Australasia with more volume on longer contracts
• Majority of contracts re-negotiated for January and July every year, however some contracts are shorter (3 months) and some longer (12 months)

Print remains the most important revenue source for publishers, and materials represent a minor share of total costs

15 Source: World Association for News Publishers (WAN-IFRA) World Press Trends 2020-2021 Outlook Survey, PWC (Global Entertainment & Media Outlook 2020 - 2024)

High quality asset portfolio with industrial development potential

Central / Western Europe

Australia

-› PM2: Future containerboard candidate -› 900 GWh biomass boiler¹ (Q2'24) -› Currently 565kt publication paper

Bruck, Austria

-› PM3: 210kt containerboard (Q4'22) -› PM4: Future packaging candidate -› 400 GWh waste-to-energy (Q2'22) -› Currently 390kt publication paper

Boyer

-› Fossil CO² emissions (CCUS² ) -› Long-term potential for advanced fuels -› Exploring high value bio products -› Currently 285kt publication paper

Nature's Flame

-› 90kt pellets capacity (up from 45kt) -› Reviewing scale-up to 150kt -› Currently in sales process

16 1) Being developed in partnership with Pearl Infrastructure Capital and Véolia. Norske Skog to hold 10% of the equity in the development company, Green Valley Energie; 2) CCUS = Carbon Capture, Utilisation and Storage

Publication paper is expected to continue to generate significant cash flows going forward

Publication paper Packaging paper Energy and bio products

• ➢ Remain a producer of all publication paper grades
• ➢ Publication paper capacity of ~2.1m tonnes¹
• ➢ Five paper mills with 11 paper machines combined
• ➢ Continuous focus on optimising cash flows

Packaging paper

Norske Skog will enter the large and growing recycled containerboard market in Q4 2022

Norske Skog will become a leading European independent producer in a market with high degree of trading between producers

• Corrugated packaging has become more than square boxes
• High degree of innovation at the end-customer level (retailers, OEMs¹ and brand-owners)
• Large, integrated producers work closely with end-customers to innovate and drive demand
• End-customer sets product requirements for box makers and corrugators
• Containerboard remains a standardised commodity product

21 Source: Websites of Smurfit Kappa, DS Smith, Mondi and Samsung 1) OEM = Original Equipment Manufacturer (automotive, electronics, machinery, equipment, etc.) The direct customers of Norske Skog's containerboard will be independent and integrated corrugators

• Norske Skog will produce lightweight and strong testliner and fluting paper (containerboard)
• The direct customer of Norske Skog, the corrugator, will buy rolls of packaging paper (containerboard)
• Produced from 100% recycled fibre (OCC¹ ) and a large share of green energy
• Directly targeting both the high growth e-commerce trend and strong focus on sustainable packaging

Corrugators (future customer of Norske Skog)

• Produces single-walled (as above) or multiple-walled corrugated sheets depending on end-customer strength requirement
• Majority of corrugating machines with width of 2,500-2,800mm, requires 90-125k tonnes of containerboard per year per machine
• Currently ~650 corrugating machines across the size spectrum in Europe, and 15-20 new machines (2,800mm) expected 2022-24

Major industry trends favour sustainable and lightweight packaging, perfectly aligned with the profile of Norske Skog

23 Source: eMarketer Global Ecommerce Forecast 2021, FEFCO, RISI 1) Combination of liner and fluting containerboards (the two containerboard grades Norske Skog will produce) provides corrugated sheet

Renewable logistics infrastructure for e-commerce giants

The e-commerce, marketplace and classifieds economy requires significant amounts of sustainable packaging papers will help enable the e-commerce economy

Above companies are illustrative examples of potential containerboard end-customers

24 Source: eMarketer Global Ecommerce Forecast 2021, European Paper Recycling Council, Zalando Capital Markets Day 2021, FEFCO

Norske Skog is aligned with global sustainability ambitions, will produce packaging paper from 100% recycled materials

"Replacing plastic packaging with more sustainable sources, preferably fibre based materials, will help us decrease the amount of plastic packaging"

"Recycling, which saves more than 700m tonnes in CO² emissions every year, is one area in which P&G believes packaging innovation has the power to make a difference"

"100% recyclable or reusable. All packs designed for reuse or recycling in 2025"

"100% recyclable packaging by 2025. No fossil-based virgin plastic used in our packaging by 2030"

"Our brands will design 100% of our packaging to be recyclable or reusable by 2030"

"Target to design our packaging to minimise waste and eliminate single-use plastics by 2023"

"Our commitment is that 100% of our packaging is recyclable or reusable by 2025"

"By 2025 we will halve the amount of virgin plastic we use in our packaging"

"All packaging placed on the EU market has to comply with essential requirements related to its manufacturing, composition, and reusable or recoverable nature"

"Responsible consumption and production. By 2030, substantially reduce waste generation through prevention, reduction, recycling and reuse"

Megatrend driven demand growth illustrated by surging containerboard prices amid significant capacity additions

Entering a massive market in need of new capacity

Strong recycled containerboard demand growth

• Strong growth in containerboard demand driven by e-commerce and sustainability megatrends
• Norske Skog will sell to corrugating companies, of which there are 350-400 in Europe
• Extensive commercial work in process executed by experienced personnel and consultants
• Customers will be a mix of integrated and independent corrugators
• The customer base typically comprise 50-70 unique customers, large customers 4-5% of delivered volume
• Containerboard is a bulky and regional product where exports represent ~15% of demand

27

Full steam ahead into the containerboard market

Containerboard projects in progress Site preparations and equipment orders underway

Invested EUR ~20m as of Q3 2021

Project investment of EUR 350m (large share on contract)

EUR 265m debt financing

ECA¹ -backed debt financing enables highly competitive interest rates

Q4 2022 first production

Stepwise introduction with Bruck in Q4 2022 and Golbey in Q4 2023

760,000 tonnes

Recycled containerboard production capacity

Expected EBITDA of EUR 70-80m

Based on historical trend prices and full utilisation in 2025-26

Working with leading suppliers and industry consultants to ensure high quality project execution in both conversions

Norske Skog Golbey – France

• Today, 235k tonnes newsprint capacity
• Convert to 550k tonnes containerboard
• Stop newsprint production Q2 2023
• Start containerboard production Q4 2023 ▪ Capex estimate of EUR ~250m

Paper Machine 2 (PM2)

• 330k tonnes newsprint capacity
• Ongoing production during PM1 conversion
• Strong candidate for future conversion

Norske Skog Bruck – Austria

Paper Machine 3 (PM3)

• Today, 125k tonnes newsprint capacity
• Convert to 210k tonnes containerboard
• Stop newsprint production Q3 2022
• Start containerboard production Q4 2022
• Capex estimate of EUR ~100m

Paper Machine 4 (PM4)

• 265k tonnes LWC magazine capacity
• Ongoing production during PM3 conversion
• Strong candidate for future conversion

Four main deliverables in both Golbey and Bruck

• 1. Install production equipment in machine halls
• 1. Install off-the shelf recycled fibre (OCC¹ ) pulp plant
• 1. Expansion of warehouse facilities
• 1. Expansion of water treatment facilities

Project teams, main suppliers and engineering companies in place

• Majority of investment contracted with suppliers
• Contracts cover machinery and equipment deliveries
• Experienced and best-in-class suppliers
• Same suppliers in containerboard as publication paper
• Strong process and project competence locally

Local project management teams supported by dedicated and experienced personnel from Oslo head office

Projects chosen on basis of first quartile cash cost position enabled by fundamental properties of the machines

30 Source: External industry consultant (third-party), cost data as of Q3 2019

1) Europe excluding Russia; 2) Being developed in partnership with Pearl Infrastructure Capital and Véolia. Norske Skog to hold 10% of the equity in the development company, Green Valley Energie

Golbey and Bruck have short transportation distances and good access to both recycled fibre and corrugators

Chinese imports of recycled fibre, million tonnes

• Golbey and Bruck are located in Central / Western Europe (core market for recycled fibre and corrugators)
• Good and established access to recycled fibre at both Golbey and Bruck
• Significant corrugating capacity and demand within 800km radius
• Germany, Italy, France and Poland are major containerboard markets
• Norske Skog will be an independent supplier, well positioned to independent and integrated corrugators

31 Source: Euwid-Paper, Confederation of European Paper Industries (CEPI) Key Statistics 2020, European Paper Recycling Council, FEFCO Bruck waste-to-energy start-up in five months, reduces gas consumption and supports packaging start-up seven months later

32 1) Based on historical and normalised prices; 2) RDF = Refuse Derived Fuel, is a fuel produced from various types of waste such as municipal solid waste (MSW), industrial waste or commercial waste; 3) Assumes as if waste-to-energy plant had been operational in Q3 2021, and thus based on Q3 2021 average gas price of EUR 40 per MWh and average electricity price of EUR 63 per MWh; 4) Assumes as if waste-to-energy plant had been operational in Q3 2021, and thus based on Q3 2021 average CO² price of EUR 57 per allowance

Waste-to-energy facility delivered on time and on budget under highly challenging global circumstances

Waste-to-energy investment improves green energy mix and contributes to solving the waste problem

Clear EU ambition to reduce waste and improve waste management

EU Green Deal: Circular Economy Action Plan Reduce landfill to a maximum of 10% of municipal waste generated by 2030

Waste-to-energy is part of the waste solution

• Increasing landfill and waste exports restrictions drive demand for waste offtake
• Few viable alternatives for waste that cannot be reused, recycled or recovered
• Drives increasing need for waste-to-energy (WtE) capacity in Europe
• Long project lead times and extensive permitting processes for WtE

Bruck waste-to-energy facility

• Huge positive environmental impact by diverting 160kt waste (RDF¹ ) from landfills
• Removes 97% of waste received, only 5k tonnes of hazardous ash waste remains
• Waste (RDF¹ ) to be received from 10-15 suppliers within 200km
• Large share of household waste, i.e., municipal solid waste (MSW)
• Can handle wide range of wastes, enabling gate fee optimisation

34 Source: European Commission, The European environment state and outlook 2020 1) Refuse-derived fuel (RDF) is a fuel produced from various types of waste such as municipal solid waste (MSW), industrial waste or commercial waste

Combined Heat & Power (CHP) plant located on Golbey industrial site enabling green energy transition in Europe

35 1) CRE = Commission dé Regulation de L'Énergie. The CRE 5 initiative aims to increase the amount of green electricity available on the French grid in line with energy policy objectives; 2) EDF = Electricité de France, is an integrated energy company wholly owned by the French state; 3) O&M = Operations and Maintenance

Containerboard EBITDA estimate of EUR ~70-80m not reflecting the very strong market environment

36 Source: RISI, European Energy Exchange (EEX), Nord Pool 1) Testliner 3 140g; 2) 1.04 Old corrugated containers (OCC); 3) Germany

Norske Skog to become a leading independent European producer of renewable packaging

➢ Value accretive containerboard projects in Bruck and Golbey

• ➢ Supported by investments in green energy production
• ➢ Recent demand growth of 4-7% (1-2m tonnes annually)
• ➢ Provide renewable logistics infrastructure for e-commerce
• ➢ 760kt of competitive capacity, first production in Q4 2022
• ➢ Investment of EUR 350m of which majority is contracted
• ➢ Solid financing of EUR 265m (~75% of investment)

Publication paper Packaging paper Energy and bio products

Energy and bio products

CEBINA aims to make global industries more sustainable with renewable wood fibre

Introducing CEBINA as an alternative and sustainable input factor for large and established industries

• Epoxy resins (~6m tonnes) P
• Paints & coatings (~55m tonnes) P
• Fillers (~75m tonnes)
• Glues & adhesives (~10m tonnes)
• Drilling and completion fluids
• P Achieved commercial sale of CEBINA (…) Estimated global industry size

CEBINA reduces time consumption, increases ease-of-use, and improves the environmental profile of the end-product

40 Note: Stock pictures illustrative of applications where CEBINA has seen commercial sales and applications, except from spray / filler applications. Not pictures of actual CEBINA application

CEBICO represents a sustainable alternative to plastics

• Plastics remain a very useful product, but most are fossil-based and take +500 years to degrade
• Landfills contain 6bn tonnes of plastics and only 9% has been recycled
• Plastics recycling requires fresh plastics to maintain product qualities
• Need solutions that can both reduce the amount of plastics and increase recycling rates

Replacing one kg of plastics with fibre saves six kg of CO² emissions

41 Source: Plastics Europe (Plastics the Facts 2020), UN Environment Programme 1) Includes thermoplastics, thermosets, elastomers, adhesives, coatings, sealants and PP-fibres

CEBICO is a drop-in replacement in multiple plastics applications

42 1) LDPE = Low Density Polyethylene; 2) PP = Polypropylene; 3) Comprising of lower grade fresh fibres (like roundwood and chips) not suitable for building and construction materials

P Improves strength in virgin and recycled plastics P Increases value and lifetime of recycled plastics P Reduces plastic consumption by up to 50%

CEBICO targets the large plastics market with a product that can reduce plastics consumption by up to 50%

43 Source: Statistics Norway, PlasticsExchange, Plastics Europe (Plastics the Facts 2020) 1) HDPE = High Density Polyethylene; 2) LDPE = Low Density Polyethylene; 3) PP = Polypropylene

CEBICO demonstration plant installed and ready to supply volumes for testing and commercial sales

• Demonstration scale plant
• Located at Saugbrugs
• Start-up December 2021
• Capacity of ~300 tonnes
• Support from Innovation Norway of NOK ~15m

Developing projects into businesses with high value fibre products improving sustainability of global industries

Intention and ambition to develop a leading position within bio composites Developing an industrial input factor

Becoming a separate business Ambition to establish CEBINA as a separate business under Norske Skog

Established commercial foundation

Commercial sales with regular deliveries and revenue (multiple customers)

P

P

Increasing commercial interest

Several ongoing discussions with direct customers and international distributors

Existing pilot capacity

P

Capacity of 100-500 tonnes (depending on grade) enables commercial development

Capital light expansion

P Modular concept requiring limited machinery and equipment, utilise existing infrastructure (does not require external capital)

Circa Group to become a leading provider of sustainable and non-toxic solvents

• Circa is a Euronext Growth listed company in the process to establish production of biobased solvents for the global chemicals markets
• Many existing solvents produced from fossil materials and are harmful to humans and therefore significantly restricted under REACH²
• Cyrene, developed by Circa, is the only known sustainable alternative
• Cyrene has received REACH² accreditation and EU grant funding
• Circa produces Cyrene at scale through a patented process
• Process verified through 15 years of research and five pilot plants
• Product distribution supported by among other leading international chemicals trading company Merck KGaA
• Strong and increasing commercial interest for Cyrene

Norske Skog holds ~26% and will remain a long-term partner

46 1) Industrial solvents NMP (n-methyl-2-pyrrolidone) and DMF (dimethylformamide); 2) REACH = Registration, Evaluation, Authorisation and Restriction of Chemicals; 3) LoI = Letter of Intent

ReSolute plant to serve as proof-of-concept for global expansion ambition

• Clear focus to engineer a robust and fit-forpurpose demonstration plant with key suppliers and consultants within updated cost estimates
• High interest and several ongoing vendor dialogues regarding reactor and equipment orders
• Seek to establish strong supplier partnerships to enable and de-risk future growth journey
• Investigate on site conversion of biochar to energy for ReSolute production process (proof-of-concept)
• Strengthened management team with European based Head of Manufacturing to realise growth journey
• International sales and marketing organisation fielding significant inbound customer interest

ReSolute – Stepping stone for growth ambition Unique opportunity to become a leading provider of sustainable and non-toxic solvents

High quality and contracted production of sustainable wood pellets into rapidly growing Australasian market

Non-core asset in New Zealand, potential sale during 2022

Reviewing capacity expansion from 90kt to 150kt, possible within current plant design

Non-core asset in New Zealand, potential sale during 2022

Norske Skog in JV partnership¹ with local real estate developer regarding several properties and buildings at Saugbrugs

Non-core assets in Norway, exploring ownership alternatives

Saugbrugs administration area being integrated in Halden city

• Former Saugbrugs buildings will re-open as a high school in August 2022
• 35 year municipality lease agreement with expected annual lease payment of NOK 25-30m, project debt-financing of NOK ~370m
• 2
• Buildings removed and area cleared, exploring opportunities to develop offices or similarly business-oriented areas
• Ground area of ~4k sqm of which limited amount required by Saugbrugs

4

5

• Currently in exploration phase for property development opportunities for current Saugbrugs administration offices
• Ground area of ~3k sqm
• Currently in exploration phase for property development opportunities. Buildings remain in place
• Ground area of ~3k sqm
• Existing parking area increasingly attractive for surrounding suburbs and business region, owned fully by Norske Skog (not part of JV¹ )
• Total area of ~6.5k sqm of which limited amount required by Saugbrugs

New high school building close to completion and large areas cleared for future projects

Non-core assets in Norway, exploring ownership alternatives

Exploring property development and partner opportunities for Sauøya in Halden

Non-core asset in Norway, exploring ownership alternatives

Overview of Sauøya 0.71 km² , Halden city, Norway

• Norske Skog owns most of Sauøya, which is situated south of Halden city in South East Norway
• The property is currently used for logistics operations by Norske Skog Saugbrugs, and also for some light industrial activity by external parties
• The island is regulated for use as nature area, sea port and business activities, but a re-regulation for housing purposes is in process
• Norske Skog will seek to identify one or more partners, with which to explore opportunities for how to realise the potential of Sauøya

Create green value through innovation and industrial competence

➢ Waste-to-energy facility: Start-up in Q2 2022

• ➢ CEBICO: Strong commercial interest and review of scale-up
• ➢ CEBINA: Continued commercial traction
• ➢ Circa: Technology and Cyrene potential remains intact
• ➢ Non-core: Pellets facility with potential scale-up to 150k tonnes
• ➢ Non-core: Norwegian property development projects

Publication paper Packaging paper Energy and bio products

Financial review

Large existing business with ongoing strategic transition into growing and high-margin markets

Diversify and innovate energy and bio products

Become a leading independent packaging producer

Optimise publication paper cash flows

Containerboard projects will be visible in capital expenditures and depreciation for coming years

Leverage expected to peak end of 2023 as the Golbey containerboard project is completed

Q3 2021 net debt plus remaining capital expenditure commitments less illustrative cash flows

• Current net debt of EUR 102m and remaining capital expenditure commitments of EUR ~347m
• Operational cash flows less maintenance capex over next twoyear period (2022-23) to alleviate capex commitments
• Further potential alleviation from non-core asset sales, including Nature's Flame, property projects and Tasman assets
• Emission allowances and CO² compensation of EUR 35-40m as

Liquidity and financing in place to meet capital expenditure commitments over next two years

• EUR ~66m of remaining expansion capex that is not covered by debt facilities, well within existing liquidity of EUR 144m
• Additional liquidity expected from operational cash flow less maintenance capex over next two-year period
• Potential for further liquidity from asset sales, including Nature's Flame pellets facility, property projects and Tasman mill assets
• EUR 265m packaging financing (EUR 193m in Golbey and EUR 72m in Bruck), ~75% of investment amount
• Repayment expected to commence upon completion, with average maturity towards the end of 2030

Historical and ongoing investments in green energy enables low CO² footprint and emission allowance surplus

Surplus allowances enabled by investments in green energy infrastructure

Source: European Commission

1) ETS = Emission Trading Scheme, Norske Skog is a net receiver of carbon emission allowances, indicating that Norske Skog is better than the industry emission intensity benchmark

60 Sources: European Commission, Nord Pool, European Energy Exchange (EEX), Miljødirektoratet 1) Based on Norwegian and French emission intensity factors, alternative standard, compensation intensity and average annual CO² prices Business transition supported by re-investing earnings and strict adherence to established debt policy for all financings

PFinancial flexibility to fund short and long-term capital requirements

PMaintain a capital structure that suits the group's strategy

Norske Skog debt policy

PAccess to a diversified range of capital sources

PAim to have a leverage ratio less than 2.0x in the longer term

PKeep maturity profile on financing arrangements spread out

Outlook

• Publication paper market expected to remain tight into 2022
• Entering the growing packaging paper market in less than one year
• Rapidly expanding across several energy and bio products initiatives

The effect of significant industrial projects and bio product innovation will rapidly become visible over next 1-2 years

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.