Rottneros — Interim / Quarterly Report 2024

Feb 6, 2025

Rottneros AB

Year-end report Jan–Dec 2024

High raw material costs

450MSEK

Invested in assets

Refinancing of long-term loans

Planned maintenance shutdowns at both mills

Q4 2024 compared with (Q4 2023)

NET TURNOVER dropped by 2 percent to 626 (637) MSEK. Low stocks limited the sales volume of sulphate pulp during the quarter.

THE LIST PRICE of NBSK pulp was 27 percent higher compared with the fourth quarter of 2023. The price of CTMP fell by 20 percent for the same period. Compared with the third quarter of 2024, the price of both NBSK and CTMP fell by 5 percent.

PRODUCED VOLUME amounted to 74,800 (80,100) tonnes, a decrease of 6 percent. Both Vallvik Mill and Rottneros Mill had their annual maintenance shutdowns during the quarter.

SOLD VOLUME was 72,800 (84,500) tonnes.

EBIT (operating profit) was -28 (-100) MSEK. Compared with the same quarter of 2023, NBSK prices were higher while CTMP prices were lower. Wood costs continued to rise. The planned maintenance shutdowns at both mills also had an impact on profit. During the quarter, emission allowances totaling 76 MSEK were sold.

NET PROFIT/LOSS for the quarter was -27 (-64) MSEK and for the full year 20 (121) MSEK. Earnings per share for 2024 totaled 0.13 (0.79) SEK.

BALANCE SHEET: The equity/assets ratio was 59 (66) percent and available liquidity totaled 385 (528) MSEK. Net debt was 392 MSEK. The long-term loans were refinanced during the quarter.

DIVIDEND Given this year's financial performance and the continued global uncertainty, the Board of Directors recommends that no dividend be distributed for 2024.

	Oct-Dec 2024	Oct-Dec 2023	change	July-Sept 2024	change Q4-Q3/24	Jan-Dec 2024	Jan-Dec 2023	change
Net turnover	626	637	-12	686	-60	2,710	2,755	-45
EBITDA, MSEK	11	-76	87	70	-59	180	252	-72
EBIT, MSEK	-28	-100	72	40	-66	47	139	-92
Profit/loss after financial items, MSEK	-35	-81	46	35	-69	28	153	-125
Net income, MSEK	-27	-64	37	28	-55	21	121	-100
Earnings per share, SEK	-0.18	-0.42	0.24	0.18	-0.36	0.13	0.79	-0.66
Cash-flow from current operations, MSEK	-65	-77	12	14	-79	15	104	-89
Return on capital employed (rolling 12 months), %	–	–	–	–	–	2.5	7.6	-5.1
Production, thousand tonnes	74.8	80.1	-5.2	90.6	-15.8	340.7	351.7	-11.0
Deliveries*, thousand tonnes	72.8	84.5	-11.7	82.1	-9.3	333.2	352.2	-19.0

* Excluding groundwood pulp

The equity/assets ratio was 59% 59 percent and available liquidity

totaled 392 MSEK.

Pulp production decreased by 3 percent to 340.7 thousand tonnes for full-year 2024. -3%

Comments by the CEO

Maintenance shutdowns according to plan, continued higher raw material costs and a weak CTMP market

The fourth quarter was shaped in part by the annual maintenance shutdowns at our two mills, which proceeded smoothly and as planned. Consequently, all three of our major investment projects are now up and running. The underlying performance showed improvement compared with the corresponding quarter of the previous year, despite the upward trend in raw material costs. Demand for chemical softwood pulp remains relatively stable in our key markets, with many customers increasing volumes, especially in our niche segments. We continue our structured approach to gradually developing Rottneros in line with our niche strategy, prioritizing safety, sustainability, and profitability.

Production and deliveries for the Group declined compared with the same quarter last year, mainly as a result of the annual maintenance shutdowns carried out at both mills. In 2023, Rottneros Mill scheduled its maintenance shutdown in September. Excluding temporary items, primarily related to the sale of emission allowances, our underlying EBIT rose by approximately 20 MSEK, despite the negative effect of higher wood costs and maintenance shutdowns on comparability. Fixed costs totaled 240 MSEK, compared with 220 MSEK in the same quarter last year.

Raw material costs increased by approximately 27 MSEK during the quarter and 102 MSEK for the full year. Gradually rising competition for wood continues to drive prices upward. Our own supply of wood and wood chips remains strong, largely due

to our long-term efforts to foster close relationships with our suppliers. For CTMP, the lower global market prices are putting additional pressure on our profitability. As a result, we implemented some minor limits on production at Rottneros Mill during the quarter.

Major investments are now up and running

All three of the major investments in our mills were gradually commissioned during the autumn. They include the expanded CTMP capacity that was commissioned at the end of October, solar panels with battery storage at Rottneros Mill and the tall oil plant in Vallvik. The latter was commissioned in the third quarter. At the same time, we kept up a fast pace of ongoing maintenance investments to ensure stable and reliable production. For the year as a whole, investments totaled 450 MSEK.

"The underlying performance showed improvement compared with the corresponding quarter of the previous year, thanks to increasing sales prices."

Comments by the CEO

2,710 MSEK

47 MSEK

EBIT Jan–Dec

Net turnover Jan–Dec

392 MSEK

Available liquidity

Safety always comes first

Employee safety is always at the top of the agenda. We are committed to addressing these issues systematically and with determination on a daily basis, striving toward our zero vision target for accidents leading to sick leave. It is therefore both significant and deeply satisfying that our efforts paid off, resulting in a reduction in the number of accidents causing sick leave in 2024.

Market remains largely stable, while our niche customers demand increased volumes

Demand for chemical softwood market pulp was relatively stable in our main markets during the quarter. Customers in our niche segments, especially in e-pulp and filters, continued to show strong interest in increasing their volumes. However, the CTMP market is relatively weak, largely because of declining demand in China and in the packaging board segment as a whole.

Packaging: commissioning of production in Poland

Production at our large-scale molded fiber tray manufacturing project in Poland, undertaken in partnership with Arctic Paper, will start during the first quarter. This will enable us to verify our premium product quality, as well as a scalable and competitive production process operating at full industrial scale. Interest in our fossil-free and climate-friendly packaging solutions is steadily growing.

To preserve a continued strong balance sheet, no dividend is proposed for 2024

Despite the high pace of investment this year, our balance sheet remains robust. The Group's financial position must be characterized by a strong equity/assets ratio for good

resilience in challenging times. To protect the company's strong balance sheet, the Board of Directors therefore proposes that no dividend be paid to shareholders for 2024. This decision is based on the weak performance, mainly attributable to high raw material costs and the weak market for CTMP.

The equity/assets ratio at the end of the year was a reassuring 59 percent and available liquidity totaled 392 MSEK.

In December, we refinanced our long-term credit facilities, which now total 550 MSEK. As before, the three-year financing agreement includes a sustainability link whereby the interest terms are linked to certain environmental and work environment criteria in the Group's long-term targets.

In conclusion, I would like to thank all my colleagues who continually strive to develop our business, as well as our customers, suppliers, owners and the Board of Directors, for their valuable and productive collaboration.

Lennart Eberleh President and CEO "Demand for chemical softwood market pulp developed positively in our niche segments."

Market overview/Pulp market

Unchanged market outlook

In the fourth quarter the world economy continued to follow the same trend as in the third quarter. In Europe, however, inflation took an upward turn and settled at 2.4 percent in December. The US saw a similar trend, with inflation reaching 2.7 percent in December. Low unemployment and a strong economy in the US, combined with aspects of President Trump's announced trade policies, have raised concerns about increased inflationary pressures. As a result, the trajectory for interest rate cuts could be somewhat slower than previously projected.

The pulp market continued to be weak in the fourth quarter. China, the largest taker of market pulp, remained weak, while the US continued on a stronger trend. Even with the post-summer slowdown in the European market, the full year delivered solid growth compared with 2023.

Pulp deliveries to China have gradually declined during the year. For the full year deliveries were down 11 percent. China has increased its integrated pulp production capacity by several million tonnes in recent years, and weakness in the construction industry has allowed raw materials from the forest to be redirected to pulp production, which helps keep these costs down. Overcapacity in cartonboard manufacturing in China has also become significant, driving cartonboard prices down and increasing exports to other Asian countries.

Net prices for NBSK in Europe remained unchanged at 760 USD in the fourth quarter. Net prices for NBSK in

China rose from 750 USD to 770 USD. Global net prices for BCTMP increased marginally to 450 USD in the fourth quarter.

Paper and board production in Europe was 6.6 percent higher through October compared with the previous year. The increase was most pronounced in the first half of the year and slowed somewhat in the third quarter.

Tissue production in the main markets (excl. China) until October 2024 shows an increase of 2.7 percent compared with 2023. Tissue is not a major market for Rottneros, although its share is increasing for CTMP. Globally, tissue paper is the largest end use of market pulp with more than 40 percent of the market.

Deliveries of printing and writing papers in the year to October 2024 rose by 2.3 percent in the main markets (excl. China), compared with 2023. Europe in particular recovered well in the first half of the year, remaining 6 percent above the 2023 level, although the pace slowed after the summer. Rottneros withdrew from the printing and writing papers segment in 2022, but it is still the second largest end use of market pulp globally.

Demand for market pulp increased in early 2024 but reversed cumulatively during the year to a decline of 2.1 percent compared with 2023, split between hardwood pulp -0.9 percent and softwood pulp -4.1 percent. Demand for unbleached pulp (UKP) decreased by 5.1 percent compared with 2023. Demand for CTMP was 2.4 percent above last year's level.

Manufacturers' global stocks of softwood pulp in December were equivalent to 39 days (a decline of 5 days since August). Stocks of hardwood pulp were 48 days (same level as in August) and of CTMP 45 days (increase of 5 days). Stocks of all qualities indicate a continued oversupply.

Demand in Rottneros' niche markets has remained stable throughout the year.

NBSK PRICES 2020–2024

PIX Europe USD per tonne* TTO Europe USD per tonne** PIX Europe SEK per tonne* TTO Europe SEK per tonne**

* Average gross prices per quarter for NBSK in Europe **Average net prices per quarter for NBSK in Europe

Sales and results, October–December

Maintenance shutdown and varied market scenario

Higher list price for sulphate pulp

+71 MSEK Higher selling prices

Turnover amounted to 626 (637) MSEK, a decline of 2 percent. Demand for sulphate pulp in Rottneros' prioritized niches was good, but sales were held back by lower production, attributable in part to the planned maintenance shutdowns in October. The sales price of sulphate pulp was higher than in the last quarter of 2023. Demand for CTMP remained weak, affecting both volume sold and price.

Pulp price hedging gave a negative outcome of -9 (3) MSEK. Sales of products other than pulp were 82 (64) MSEK, corresponding to 13 percent of turnover. Turnover from sales of wood increased in line with rising timber prices.

Variable costs remain high, especially the cost of wood. The supply of pulp wood in Sweden has been affected by lower harvested volumes than in previous years. Nevertheless, the supply of wood has been adequate during the quarter and imports from the Baltic States have remained at a normal level.

Electricity prices were at a seasonally higher level, though lower than in the corresponding quarter in previous year. The system price was 0.36 (0.66) SEK per kWh. Rottneros' consumption takes place primarily in electricity area SE3, where the price was 0.49 (0.65) SEK per kWh. Rottneros hedges most of its electricity consumption. The realized outcome for electricity price hedges was 4 (16) MSEK. The net cost of the Group's electricity consumption in the fourth quarter was 0.37 (0.34) SEK per kWh.

Fixed costs increased by 20 MSEK, mainly driven by the maintenance shutdowns.

Both Vallvik Mill and Rottneros Mill had their annual maintenance shutdowns during the quarter. The shutdown is expected to have a negative impact on profit of approximately 100 MSEK in direct and indirect costs. The indirect costs are attributable to loss of production for the shutdown days.

Scheduled depreciation had a negative impact on income of 30 (29) MSEK. In addition, an impairment charge of 13 MSEK was taken on non-current assets at Rottneros Mill in connection with the investments.

During the quarter, Rottneros sold emission allowances for 76 (0) MSEK. The amount is shown in the chart under "Other".

EBIT for the quarter was -28 (-100) MSEK. Compared with the fourth quarter of 2023, the market for sulphate pulp was better. The weak CTMP market, high wood prices and annual maintenance shutdowns all had a negative impact on income. The sale of emission allowances made a positive contribution.

QUARTERLY COMPARISON

	Oct-Dec 2024	Oct-Dec 2023	change %	July-Sep 2024	change %
NBSK, USD	1,519	1,192	27	1,603	-5
SEK/USD	10.76	10.69	1	10.43	3
NBSK, SEK	16,335	12,736	28	16,727	-2
Net turnover, MSEK	626	637	-2	686	-9
EBIT, MSEK	-28	-99	-73	40	-168

DIFFERENCE IN EBIT FOURTH QUARTER 2024 COMPARED WITH THE SAME PERIOD IN 2023 (MSEK)

* Variable costs exclude costs attributable to increased or decreased production and delivery volumes. Such costs are instead included in the 'volume effect' along with the increase/decrease in volume of net turnover.

Production and deliveries

Expanded CTMP capacity

The maintenance shutdowns at Vallvik Mill and Rottneros Mill had an impact on production in the quarter. The production volume was 74,800 tonnes compared with 80,100 tonnes the year before. In 2023, Rottneros Mill held its annual maintenance shutdown in September. Rottneros Mill has invested in expanded production capacity for CTMP. Equipment was commissioned during the quarter, and has reached the planned efficiency targets. Production for January – December, decreased by 3 percent to 340,700 (351,700) tonnes due to production issues at Vallvik at the beginning of the year. CTMP production reached 121,900 tonnes, matching the record set in 2023.

Customer deliveries of sulphate pulp and CTMP decreased by 14 percent to 72,800 (84,500) tonnes in the fourth quarter. Cumulatively, deliveries fell by 5 percent to 333,200 (352,200) tonnes. Sales of sulphate pulp were held back by lower production. The weak market for CTMP affected deliveries during the year.

Maintenance shutdowns and seasonal variations

The annual maintenance shutdown at Rottneros Mill was moved from September to October. In 2023, the shutdown was held in the third quarter. As planned and as in previous years, Vallvik Mill held its maintenance shutdown in the fourth quarter.

The direct costs relating to maintenance shutdowns are recognized in the period during which the shutdown takes place, in accordance with generally accepted accounting practice. The maintenance shutdown also involves a certain loss of production, which affects turnover and income for the quarter in which the shutdown takes place. The estimated cost of the shutdown includes both direct costs and the indirect effect of loss of production. It represents an assessment of the impact of a normal annual maintenance shutdown on income in relation to a quarter without any maintenance shutdown.

Otherwise, the Rottneros Group is not affected by seasonal variations to any appreciable extent.

PRODUCTION

Production, tonnes	Oct-Dec 2024	Oct-Dec 2023	July-Sep 2024	Jan-Dec 2024	Jan-Dec 2023
Sulphate pulp	49,300	48,200	59,600	218,800	229,600
CTMP	25,500	31,900	31,000	121,900	122,100
TOTAL	74,800	80,100	90,600	340,700	351,700
Groundwood pulp

DELIVERIES

Jan-Dec 2023	Deliveries, tonnes	Oct-Dec 2024	Oct-Dec 2023	July-Sep 2024	Jan-Dec 2024	Jan-Dec 2023
	Sulphate pulp	51,500	56,300	54,000	216,700	231,400
	CTMP	21,300	28,200	28,100	116,500	120,800
	TOTAL	72,800	84,500	82,100	333,200	352,200
	Groundwood pulp					4,700

MAINTENANCE SHUTDOWN, 2024

VALLVIK MILL Estimated impact on income: 70–80 MSEK

ROTTNEROS MILL Estimated impact on income: 15–20 MSEK

TIMING OF MAINTENANCE SHUTDOWN

2024	2023
Q4	Q4
Q4	Q3

Performance January–December

High costs for pulp wood, lower volume

Turnover

47 MSEK EBIT

Turnover amounted to 2,710 (2,755) MSEK, a decline of 2 percent. Adjusted for groundwood pulp, which has not been included in the product portfolio since the second quarter of 2023, sales remained unchanged. The list price of NBSK market pulp rose during the period by 18 percent denominated in USD.

Sales of products other than pulp totaled 344 (265) MSEK, corresponding to 13 percent of turnover. The realised loss for pulp price hedges was -30 (-3) MSEK.

Variable costs were at a higher level than in the previous year. The cost, based on SEK per tonne produced, increased by approximately 102 MSEK. The increase is mainly attributable to higher pulp wood costs, though the cost of energy has also increased. The supply of wood chips and roundwood has been adequate and imports of wood from the Baltic States have been at a normal level.

The average electricity price on the Nord Pool electricity exchange (electricity area SE3) was 0.41 (0.59) SEK per kWh. The system price for the period was 0.41 (0.64) SEK per kWh. Rottneros' consumption takes place primarily in electricity area SE3. Rottneros hedges most of its electricity consumption and the realised profit on electricity price hedges was 10 (54) MSEK. The net cost of the Group's electricity consumption for the year was 0.34 (0.28) SEK per kWh.

Fixed costs increased by 45 MSEK compared with 2023. In addition to inflation, maintenance costs and external costs also contributed to the increase.

Scheduled depreciation had a negative impact on income of 120 (118) MSEK. Impairment of fixed assets amounted to 13 MSEK, while 6 MSEK was reversed in 2023.

During the year, Rottneros sold emission allowances for 87 (0) MSEK. These are included in the item "Other". For the comparison year, a cost of 16 MSEK is included for organisational change in Vallvik Mill in 2023.

EBIT for January – December 2024 was 47 (139) MSEK. During the year weak the pulp market in China has been weak, affecting the demand for CTMP as a result. However, demand has been good in Rottneros' sulphate pulp niches. Higher selling prices have been offset by higher wood costs, which have negatively affected margins.

JANUARY – DECEMBER 2024

	Jan-Dec 2024	Jan-Dec 2023	change, %
NBSK, USD	1,491	1,268	18
SEK/USD	10.56	10.61	0
NBSK, SEK	15,752	13,455	17
Net turnover MSEK	2,710	2,755	-2
EBIT MSEK	47	139	-66

DIFFERENCE IN EBIT JAN – DEC 2024 COMPARED WITH THE SAME PERIOD IN 2023 (MSEK)

* Variable costs exclude costs attributable to increased or decreased production and delivery volumes. Such costs are instead included in the 'volume effect' along with the increase/decrease in volume of net turnover.

Other items

Financial items in the income statement

Financial items (net) totaled -20 (14) MSEK for the year. In addition to interest income and expenses, this item consists of the change in value of financial derivatives.

As a result of the closure of the groundwood line in 2022, electricity price hedges for 2023 and 2024 exceeded future cash flows and were therefore classified as financial derivatives. The change in value of these contracts amounted to -8 MSEK and has been recognized under financial items.

Financing

In December 2024, Rottneros refinanced the existing long-term loan agreements. The new facilities comprise long-term loans totaling 400 MSEK with 69 MSEK in annual repayments, and revolving credit facilities of up to 150 MSEK. The loan agreement has a term of three years with a one-year extension option. In addition, Rottneros has overdraft facilities amounting to 225 MSEK.

As before, the financing agreement includes a sustainability link whereby the interest terms are linked to some of the environmental and work environment criteria in the Group's long-term targets. The link is part of Rottneros' continuous focus on sustainable development.

The Group's cash and cash equivalents amounted to 19 MSEK at the end of the year, compared with 196 MSEK at the end of 2023. Interest-bearing liabilities were 403 MSEK at the end of the year. Net debt was 393 MSEK, compared with net cash of 105 MSEK at the end of 2023. Total granted and unused credit facilities amounted to 392 MSEK.

The equity/assets ratio was 59 (66) percent as of 31 December 2024. Equity per share totaled 11.06 (12.18) SEK at the end of the year.

Cash flow

Cash flow from operating activities for January – December 2024 was 15 (104) MSEK. Tax payments of 35 (113) MSEK are included in this item.

Cash flow after investments in fixed assets was -435 (-197) MSEK.

During the period, 76 (214) MSEK were distributed to shareholders.

Net cash flow for the period was -177 (-269) MSEK.

Investments

Group investments in property, plant and equipment amounted to 449 (205) MSEK for January – December 2024. The majority are related to major ongoing projects.

Vallvik Mill has invested in a new tall oil plant. The investment totaled 93 MSEK and ran over 2023 and 2024. A tall oil plant is part of the chemical recovery process in a sulphate pulp mill, where soap is separated and refined into tall oil. Tall oil is a valuable by-product that can replace fossil oils and be a raw material in other products.

A total of 220 MSEK has been invested to significantly increase CTMP production at the Rottneros Mill from the current 125 thousand tonnes per year to approximately 165 thousand tonnes. The additional volume is mainly destined for the growing market segments of board and packaging, as well as tissue paper. The increased capacity was commissioned in autumn 2024 and the project has run over 2023–2024.

During the year, a total of 84 MSEK was invested in renewable energy at Rottneros Mill. The investments include a solar park and batteries for energy storage and are part of a long-term effort to reduce exposure to the electricity market. The investment was commissioned in autumn 2024.

Parent Company

Profit after financial items for January-December 2024 was 21 (259) MSEK. The result was negatively affected by the revaluation of electricity derivatives of -19 MSEK, recognized as other operating expenses. This revaluation relates to derivative contracts with negative values that are measured at the lower of cost or market. The valuation does not affect the Group's profit or loss for the period.

Long-term targets

Rottneros' vision is "Always make a difference". This has been translated into long-term targets for financial, social and climate-related sustainability. Follow-up is primarily carried out on an annual basis, but also quarterly.

LONG-TERM TARGETS AND TARGET ACHIEVEMENT 2024

FINANCIAL TARGETS	Target	Outcome 2024
Distribution of net income	30–50 percent	63 percent of net income in 2023
Average growth, produced tonne pulp	3 percent/year	-3 percent
Revenue, non-pulp	At least 10 percent	13 percent
Equity/assets ratio	Over 50 percent	59 percent
SOCIAL TARGETS	Target	Outcome 2024
Safety, accidents with sick leave	Annual improvement of LTIFR*	6.3 (outcome 2023: 10.2)
Proportion female employees	At least 30 percent by 2025	18 percent

ENVIRONMENTAL TARGETS	Target Outcome 2024
Fossil CO2 emissions according to GHG scope 1	Fossil-free production 2030		9,770 tonnes ** (outcome 2023: 8,972 tonnes)
Fossil CO2 emissions according to GHG scope 2	Fossil-free production 2030		110,448 tonnes (outcome 2023: 98,809 tonnes)
COD emissions/tonne pulp	Annual improvement		14.3 kg/tonne (outcome 2023: 14.9 kg/tonne)

* LTIFR – Lost Time Injury Frequency Rate: Number of accidents with sick leave per 1 million hours worked, measured over a rolling 12-month period. ** Value for 2024 is preliminary.

Areas of development

Rottneros Packaging

Rottneros Packaging focuses on developing and optimising the production of molded fiber trays. One focus area is high-barrier packaging with extended shelf life for food. Packaging with simpler functional requirements is also under development. Rottneros trays can withstand high heat and are excellent for frozen or chilled foods. The raw material is pulp from Rottneros Mill.

Joint ventures

Rottneros Packaging's investment in Poland

As part of its development strategy, the Group has formed a jointly owned company in Packaging in Poland together with Arctic Paper.

The purpose of the company is to build and operate a factory for the production of molded fiber trays on a large industrial scale. The investment in the factory is estimated to total the equivalent of approximately 230 MSEK and will largely be financed through long-term loans. Production capacity is expected to reach approximately 80 million packages per year, which is significantly more compared with the current plant in Sunne. The company is expected to have an annual turnover in the region of 140 MSEK when the factory reaches full capacity utilization.

Blue Ocean Closures

Rottneros became a stakeholder of Blue Ocean Closures in December 2023. Blue Ocean Closures is developing a unique dry forming technology to produce fiber-based closures for consumer packaging on a large scale. The aim is to replace current plastic solutions in a global market. The innovative technology and material has the potential for many more high-volume and high-impact applications, effectively reducing plastic pollution and carbon dioxide emissions.

New brand and clearer positioning for optimal customer value

Rottneros has complemented the established brands Robur Flash for chemical pulp and Nature for fiber-based trays. The new brand, Spring by Rottneros, represents our mechanical pulp from Rottneros Mill.

The launch of Spring coincides with the expansion of new CTMP manufacturing capacity, investments in renewable energy production at Rottneros Mill and the new business opportunities and products that this facilitates.

In connection with the launch of the new brand, Rottneros has also initiated an external positioning strategy in niche markets where our products generate optimal customer value. Over the past five years, our sales have been concentrated with increasing precision on three application areas where we now boast world-leading positions: Robur Flash ECF for filter production, Robur Flash UKP for electrotechnical insulation materials and Spring for board production. It is worth noting that the excellent properties of our pulps naturally benefit a variety of other applications.

Risk management

Operationally, the Company uses a number of measures and strategies – for example, focusing on niches and various specific customer segments – aimed at reducing the Group's dependency on market pulp list prices and at moderating fluctuations in profitability over a business cycle. The factors that have the greatest impact on the Group's results are linked to exchange rates and the price of pulp, timber and electricity.

Currency exposure, USD and EUR

Although Rottneros issues invoices in different currencies, the underlying currency for the pulp price is predominantly USD. The underlying exposure to USD is thus high. The direct inflow of USD corresponds to just over 65 percent of the inflow and of EUR about 25 percent. However, the impact of exchange rate fluctuations on indirect exposure is delayed, as the normal duration of a customer contract is between one and three months.

The average SEK/USD exchange rate for the period January – September 2024 was 10.56 SEK, while in the same period in 2023 it was 10.61.

The Group has hedged SEK/USD with a "Risk Reversal," where the sale of USD takes place within an interval. At the end of the year, 31 MUSD was hedged with monthly maturities until March 2026 in the range of 9.94 – 11.05 SEK/USD.

Pulp price

The price of pulp (NBSK) is set in USD, while production costs are largely incurred in SEK. In 2024, the Group had bulk price hedges, but has no hedges as at 31 December 2024.

Electricity

All external electricity for the mills, about 200 GWh annually, is purchased directly via the Nord Pool electricity exchange. Electricity consumption will rise in line with increased CTMP production by about 40 GWh per year. Beginning in 2025, exposure to Nord Pool will be reduced by approximately 30 GWh per year as a result of the PPA agreement described below.

At the end of December 2024, electricity prices were hedged as shown in the following table. The table shows the hedged proportion of forecasted consumption and the average hedged price in SEK per kWh. The hedged share includes the PPA described below until 2029. The fair value of these unrealised electricity hedges was -64 MSEK as of 31 December 2024.

The high level of hedging protects Rottneros against sharp price fluctuations. Because of the large imbalance between electricity price areas a certain percentage of the contracts are hedged in relation to area SE3. The average price level for electricity at Nord Pool (area SE3) during January – December 2024 was 0.59 (1.38) SEK per kWh.

In June 2023, Rottneros entered into a long-term agreement to purchase electricity in the form of a Power Purchase Agreement (PPA) including Guarantees of Origin (GOs). The agreement covers over 30 GWh/year of clean wind energy with settlement against a fixed price in SE3. The agreement is for an 8.5-year period starting in 2025.

See pages 51–58 of the Annual Report for 2023 for further information on risks.

ELECTRICITY HEDGES AS OF 31 DECEMBER 2024

Year	Proportion hedged, %	SEK per kWh
2025	86	38
2026	40	54
2027	36	52
2028	33	56
2029	13	47

80 percent of the hedged volume is against the system price and 20 percent against electricity area SE3.

The share and shareholders

NUMBER OF SHARES AND TREASURY SHARES

The number of shares in Rottneros totals 153,393,890. Rottneros' holdings of treasury shares amount to 821,965 shares. No change in treasury shares occurred in 2024.

SHARE PRICE DEVELOPMENT JANUARY–DECEMBER 2024

At the end of December 2024, the share price was 8.96 (12.18 at the end of 2023) SEK. The average price during the year was 11.10 (13.91) SEK.

SHARE PRICE 2020 TO 30 DECEMBER 2024

LARGEST SHAREHOLDERS ON 31 DECEMBER 2024

Shareholders	Number of shares (=votes)	Percent of capital
Arctic Paper S.A.	78,230,883	51.0
PROAD AB	11,713,249	7.6
UBS Switzerland AG, W8IMY	7,496,198	4.9
Caceis Bank, Switzerland Branch, W8IMY	5,900,000	3.8
Dimensional Fund Advisors	2,779,729	1.8
Avanza Pension	2,767,035	1.8
SEB AB, Luxembourg Branch, W8IMY	2,204,000	1.4
Caceis Bank Spain SAU, W8IMY	1,155,113	0.8
Handelsbanken Fonder	959,710	0.6
SEB Investment Management	832,565	0.5
Total for 10 largest owners – by size of holding	114,038,482	74.3
Other shareholders	38,533,443	25.1
Rottneros AB (treasury shares from buy-back)	821,965	0.5
TOTAL	153,393,890	100.0

Nominating Committee ahead of the 2025 Annual General Meeting

The Annual General Meeting will be held on Thursday 10 April 2025 in Sunne. In accordance with the guidelines decided at Rottneros' Annual General Meeting 2024, a Nominating Committee has been appointed for the Annual General Meeting 2025.

The Nominating Committee shall comprise the Chairman of the Board and two additional members. The Chairman of the Board may not be Chairman of the Committee. One of these two members, in addition to the Chairman of the Board, must be appointed by the company's largest shareholder and the other shall be appointed by one of the company's other four largest shareholders. Neither of these two members may be a Board member at the same time.

The Nominating Committee for the 2025 Annual General Meeting includes: Michal Jarczynski, appointed by Arctic Paper S.A., Stefan Sundh, appointed by PROAD AB, and Per Lundeen, Chairman of the Board of Rottneros AB.

The Nominating Committee has appointed Michal Jarczynski to serve as Chairman.

The two owner representatives on the Nominating Committee represent approximately 59 percent of the total number of votes in Rottneros.

The tasks of the Nominating Committee are to prepare and submit proposals for the Annual General Meeting 2025 regarding the election of the Chairman and other members of the Board, the Board's fees divided among the Chairman, other members and fees for committee work, election and fees for the auditor, election of the Chairman of the AGM and, where appropriate, changes to the instructions for the Nominating Committee.

Shareholders who wish to have a matter dealt with at the 2025 Annual General Meeting must submit such proposal to the Chairman of the Board by e-mail to rottneros@allians.se or by letter to Rottneros AB (publ), c/o Advokatfirman Allians, Våxnäsgatan 4, SE-653 40 Karlstad, Sweden, no later than 7 February 2025, in order for the proposal to be included in the notice to the 2025 Annual General Meeting.

FORTHCOMING FINANCIAL INFORMATION

13 March 2025	Annual Report 2024
10 April 2025	2025 Annual General Meeting
29 April 2025	Interim report January–March 2025
24 July 2025	Interim report January–June 2025
30 October 2025	Interim report January–September 2025

For more information, please visit Rottneros' website, www.rottneros.com.

Declaration

The Board of Directors and the CEO certify that the quarterly report gives a true and fair summary of the Group's and parent company's operations, financial position and results and describes significant risks and uncertainties faced by the company and the companies included in the Group.

Vallvik on 6 February 2025

Per Lundeen Chairman of the Board

Johanna Svanberg Board member

Roger Mattsson Board member

Conny Mossberg Board member

Julia Onstad Board member Magnus Wikström Board member

Mika Palmu Employee representative

Jerry Sohlberg Employee representative

Lennart Eberleh President and CEO This information is information that Rottneros AB is obliged to publish under the EU Market Abuse Regulation and the Securities Market Act.

The company's auditors have not reviewed this report.

This information was submitted for publication, through the agency of the contact persons set out below, on 6 February 2025 at 8:00 a.m. A Swedish and an English version of this report have been prepared. The Swedish version shall prevail in the event of differences between the two reports.

For further information, please contact: Lennart Eberleh, CEO and President, Rottneros AB.

Tel: +46 (0)270-622 65

Rottneros AB (publ) Corp. ID no. 556013-5872 Box 144 SE-826 23 Söderhamn, Sweden

Tel: +46 (0)270 622 00 www.rottneros.com

AMOUNTS IN MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
NET TURNOVER	626	637	2,710	2,755
Change in finished goods inventories	6	-40	58	9
Other operating income	103	-1	133	35
Operating income, total	735	596	2,901	2,799
Raw materials and consumables	-415	-390	-1,795	-1,661
Other external costs	-217	-191	-621	-573
Employee benefit expenses	-82	-81	-294	-302
Other operating expenses	-10	-10	-12	-11
EBITDA (operating profit/loss before depreciation/amortization and impairment)	10	-76	179	252
Depreciation/amortization and impairment losses	-38	-24	-133	-113
EBIT (operating profit/loss)	-28	-100	47	139
Financial income	1	14	4	24
Financial expenses	-8	5	-24	-10
Total financial items	-7	19	-20	14
PROFIT/LOSS AFTER FINANCIAL ITEMS	-35	-81	27	153
Tax on income for the period	7	17	-7	-32
NET INCOME	-27	-64	20	121
Average number of shares outstanding (thousands) 1	152,572	152,572	152,572	152,572
Earnings per share, SEK 1	-0.18	-0.42	0.13	0.79

¹ No share-based programmes exist that result in dilution.

CONSOLIDATED INCOME STATEMENT STATEMENT OF COMPREHENSIVE INCOME

AMOUNTS IN MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023
NET INCOME	-27	-64	20	121
OTHER COMPREHENSIVE INCOME
Items that have been or may be transferred to profit or loss for the period
Changes in value of cash flow hedges	-36	11	-140	-385
Income tax effect on changes in value	8	-3	29	79
Translation differences	0	-1	0	0
TOTAL OTHER COMPREHENSIVE INCOME	-28	7	-111	-306
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 2	-55	-57	-91	-185

²The entire comprehensive income is attributable to the parent company's shareholders.

CONSOLIDATED BALANCE SHEET, SUMMARY

AMOUNTS IN MSEK	31 Dec 2024	31 Dec 2023
Intangible assets	21	21
Property, plant and equipment	1,579	1,274
Financial assets	98	175
TOTAL NON-CURRENT ASSETS	1,698	1,470
Inventories	590	493
Current receivables	538	658
Cash and cash equivalents	19	196
TOTAL CURRENT ASSETS	1,148	1,347
TOTAL ASSETS	2,846	2,817
Shareholders' equity	1,691	1,858
Long-term liabilities
Interest-bearing liabilities	341	59
Deferred tax liability	123	158
Other non-interest-bearing liabilities	74	65
TOTAL LONG-TERM LIABILITIES	537	282
Current liabilities
Interest-bearing liabilities	71	32
Non-interest-bearing liabilities	547	645
TOTAL CURRENT LIABILITIES	619	677
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	2,846	2,817
Shareholders' equity per share	11.08	12.18

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, SUMMARY

				Other reserves		Retained	Total
AMOUNTS IN MSEK	Share capital	Other injected capital	Repurchased treasury shares	Hedging reserve	Translation difference	earnings, incl. profit/loss for the year	share holders' equity
Opening balance, 1 January 2023	153	730	-69	366	-6	1,082	2,256
Net income Jan–Dec						121	121
Other comprehensive income, Jan–Dec				-306	0		-306
Total comprehensive income for Jan–Dec				-306	0	121	-185
Dividends to shareholders, Jan–Dec						-213	-213
Closing balance, 31 December, 2023	153	730	-69	60	-6	990	1,858
Net income Jan–Dec						20	20
Other comprehensive income, Jan–Dec				-111	0		-111
Total comprehensive income for Jan–Dec				-111	0	20	-91
Dividends to shareholders, Jan–Dec						-76
Closing balance, 31 December, 2024	153	730	-69	-51	-6	934	1,691

CONSOLIDATED STATEMENT OF CASH FLOWS CHANGES IN INTEREST-BEARING LIABILITIES

AMOUNTS IN MSEK	Jan–Dec 2024	Jan–Dec 2023
EBIT	47	139
Adjustment for items not included in cash flow	15	-4
Depreciation/amortization and impairment losses	133	118
EBIT adjusted for items not affecting cash flow	195	253
Received/paid financial items	-11	4
Received/paid taxes	-35	-113
Cash flow from operating activities before changes in working capital	149	144
Change in working capital	-134	-40
Cash flow from operating activities	15	104
Investments in property, plant and equipment and intangible assets	-450	-205
Investments in financial assets	0	-96
Sale of non-current assets	1	7
Change in current financial investments	12	154
Cash-flow from investing activities	-436	-140
Borrowings, long-term loans	409	100
Amortization, long-term bank loans	-91	-120
Change in current financial liabilities	2	0
Dividend paid	-76	-213
Cash flow from financing activities	244	-233
Net cash flow for the period	-177	-269
Cash and cash equivalents at start of period	196	465
Net cash flow for the period	-177	-269
Exchange rate difference in cash and cash equivalents	0	0
Closing cash and cash equivalents	19	196

AMOUNTS IN MSEK	Jan–Dec 2024	Jan–Dec 2023
Interest-bearing liabilities on the balance sheet at the beginning of the period	91	111
Changes included in cash flow from financing activities		–
Long-term loans taken out from banks	409	100
Change in current financial liabilities	2	0
Amortization of long-term loans taken out from banks	-91	-120
Total	320	-20
Other changes:
Via acquisition		–
Accrual of direct costs related to the issuance of bonds that are amortized over the term of the loan		–

Interest-bearing liabilities on the balance sheet at the end of the period 412 91

PARENT COMPANY INCOME STATEMENT

AMOUNTS IN MSEK	Jan–Dec 2024	Jan–Dec 2023
NET TURNOVER	23	18
Other operating income	1	12
Operating income, total	24	30
Pulp price hedges	-30	-3
Other external costs	-38	-38
Employee benefit expenses	-40	-40
Other operating expenses	-19	0
EBITDA (operating profit/loss before depreciation/amortization and impairment)	-103	-51
Depreciation/amortization and impairment losses	-1	0
EBIT (operating profit/loss)	-104	-51
Profit from participations in Group companies	108	133
Financial income	35	187
Financial expenses	-12	-10
Total financial items	132	310
PROFIT/LOSS AFTER FINANCIAL ITEMS	28	259
Tax on income for the period	-7	-53
NET INCOME	21	206

PARENT COMPANY STATEMENT OF

AMOUNTS IN MSEK	Jan–Dec 2024	Jan–Dec 2023
NET INCOME	21	206
Other comprehensive income	–	–
TOTAL OTHER COMPREHENSIVE INCOME	–	–
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	21	206

COMPREHENSIVE INCOME BALANCE SHEET – PARENT COMPANY

AMOUNTS IN MSEK	31 Dec 2024	31 Dec 2023
Intangible assets	0	0
Property, plant and equipment	2	3
Financial assets 1	708	758
Total non-current assets	710	761
Current receivables 2	1,154	825
Cash and cash equivalents	2	158
Total current assets	1,156	983
TOTAL ASSETS	1,867	1,744
Shareholders' equity	1,025	1,080
Long-term liabilities
Interest-bearing	331	51
Non-interest-bearing	20	54
Total long-term liabilities	351	105
Current liabilities
Interest-bearing	69	32
Non-interest-bearing³	422	527
Total current liabilities	491	559
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	1,867	1,744

¹ Includes receivables of 283 (283) MSEK from subsidiaries. ² Includes receivables from subsidiaries of 1,139 (801) MSEK. ³ Includes liabilities to subsidiaries of 398 (486) MSEK.

Supplementary disclosures, notes in summary and other information

ACCOUNTING POLICIES

This report has been prepared in accordance with IAS 34 'Interim Financial Reporting', which complies with Swedish law through the application of the Swedish Financial Reporting Board's Recommendation RFR 1 'Supplementary Accounting Rules for Groups' together with RFR 2 'Accounting for Legal Entities', in respect of the parent company.

The accounting policies, definitions of key ratios and calculation methods are the same as those used in the last annual report.

All amounts in this report are in MSEK, unless stated otherwise. Rounding-off differences may occur.

NET TURNOVER

The vast majority of Rottneros revenue flows derives from sales of pulp. Control is passed at a point in time, which coincides with the actual delivery of the goods. Revenue is recognized at fair value of the consideration received or receivable. Turnover in the income statement consists of revenues from the sale of goods and invoiced freight, net of returns, discounts, pulp price hedges and VAT.

FINANCIAL INSTRUMENTS

The valuation is based on directly observable price quotations on the balance sheet date that are classified at level 2 in the fair value hierarchy described in IFRS 13. The full fair value of a derivative instrument that constitutes a hedging instrument is classified as a non-current asset or non-current liability if the remaining maturity of the hedged item exceeds twelve months, and as a current asset or current liability if the remaining maturity of the hedged item is less than twelve months. The maximum exposure for credit risk on the reporting date is the fair value of the derivative instruments recognized as assets in the balance sheet.

With the decision to close the groundwood line at Rottneros Mill, the Group had electricity hedges that exceeded the estimated consumption for 2024. In accordance with IFRS 9, the portion of the hedge that did not match future cash flows were classified as financial items. Changes in value of the part that did not correspond to future cash flows has been recognised in net financial items and amounted to 8 MSEK for the period January-December 2024. Cash flow from the realized financial derivatives totaled 12 MSEK for the period.

In June 2023 Rottneros AB refinanced the existing longterm loans. The facilities included a loan of 100 MSEK with 32 MSEK annual amortisations, and a revolving credit facility of up to 150 MSEK.

On 27 December, a refinancing was carried out which repaid all the debt raised and replaced it with bank loans totaling 400 MSEK divided into three loans, and a revolving credit facility of 150 MSEK. The maturity of the loans is three years, with an extention option for an additional year. As before, the financing agreement includes a sustainability link whereby the interest terms are linked to some of the environmental and work environment criteria in the Group's long-term targets.

The nature of other financial assets and liabilities is in all essential respects the same as on 31 December 2023. The carrying amounts are deemed to be equal to actual values, which was also the case at the end of 2023, since the effect of discounting is not of material significance. Accounts receivables are covered by credit insurance, which reimburses most of any bad debt losses. The Company has long-term relationships with its customers and credit losses have historically been low.

RELATED PARTY TRANSACTIONS

During the period January – December 2024, Rottneros had sales to the related party Arctic Paper S.A. group amounting to 11 (9) MSEK. Outstanding operating receivables for Arctic Paper as of 31 December 2024 totaled 0 (0) MSEK. The transactions took place on market terms.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

There are no significant events to report.

AVERAGE NUMBER OF EMPLOYEES

The average number of employees was 285 (293) for the period January – December.

CHANGES IN GROUP MANAGEMENT

No changes in Group management occurred during the fourth quarter of 2024.

ROTTNEROS' NET TURNOVER

AMOUNTS IN MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Rolling 12 months	Full year 2023
Sales of pulp	553	570	2,395	2,492	2,395	2,492
Results from pulp price hedging	-9	3	-30	-2	-30	-2
Sales of by-products and other	27	28	129	120	129	120
Sales of wood	55	36	216	145	216	145
TOTAL NET TURNOVER	626	637	2,710	2,755	2,710	2,755

NET TURNOVER BY GEOGRAPHIC MARKET

AMOUNTS IN MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Rolling 12 months	Full year 2023
Sweden	139	169	630	605	630	605
Other Nordic countries	112	60	338	285	338	285
Germany	90	74	363	370	363	370
Italy	21	36	108	150	108	150
Rest of Europe	100	91	474	392	474	392
US	54	54	235	221	235	221
China	25	46	123	255	123	255
India	33	61	207	275	207	275
Rest of world	52	46	232	202	232	202
TOTAL NET TURNOVER	626	637	2,710	2,755	2,710	2,755

BREAKDOWN OF PULP TURNOVER BY USE

AMOUNTS IN MSEK	Oct–Dec 2024	Oct–Dec 2023	Jan–Dec 2024	Jan–Dec 2023	Rolling 12 months	Full year 2023
Board and packaging	86	160	534	729	534	729
Printing and writing papers	10	13	31	67	31	67
Filters	131	114	560	593	560	593
Electrotechnical applications	149	116	537	489	537	489
Tissue paper	47	66	261	229	261	229
Special applications	96	71	327	298	327	298
Fiber cement	22	15	78	40	78	40
Other	12	14	67	46	67	46
TOTAL PULP TURNOVER	553	570	2,395	2,492	2,395	2,492

FAIR VALUE FOR DERIVATIVES AS AT 31 DECEMBER 2023

Hedging	Hedged volume	Maturity	Hedging level	Fair value (MSEK)
Pulp, futures sold	12,000 tonnes	2024	13,284 SEK/tonne	7
Electricity, forward purchase, cash flow hedge	561,336 MWh	2024–2028	0.4010 SEK per kWh	68
Electricity, forward, financial	61,488 MWh	2024	–	20
TOTAL FAIR VALUE				95

FAIR VALUE FOR DERIVATIVES AS AT 31 DECEMBER 2024

Hedging	Hedged volume	Maturity	Hedging level	Fair value (MSEK)
Pulp, futures sold	–	–	–	–
Currency, forward sell/buy (corridor)	31 MUSD	Jan 2025–March 2026	9.94-11.05 SEK/USD	0
Electricity, forward purchase, cash flow hedge	714,011 MWh	2025–2033	496 SEK per kWh	-64
Electricity, forward, financial	–	–	–	–
TOTAL FAIR VALUE				-64

GROUP PERFORMANCE IN SUMMARY

	2024	2023	2022	2021	2020
Income statement, MSEK
Net turnover	2,710	2,755	2,980	2,303	2,093
EBITDA	179	252	691	385	77
Depreciation/amortization and impairment losses	-133	-113	-141	-118	-119
EBIT	47	139	550	267	-42
Financial items (net financial items)	-20	14	164	-21	-19
Profit/loss after financial items	28	153	714	246	-61
Net income	20	121	565	198	-50
Statement of cash flow, MSEK
Cash flow from operating activities	15	104	541	288	85
Cash-flow from investing activities	-436	-140	-112	-123	-128
Cash flow after investments in non-current assets	-421	-36	429	165	-43
Cash flow from financing activities	244	-233	-125	-334	-3
Net cash flow	-177	-269	304	-169	-46
Balance sheet items, MSEK
Non-current assets	1,698	1,470	1,501	1,339	1,285
Inventories	590	493	436	327	355
Current receivables	538	658	1,020	555	287
Cash and cash equivalents	19	196	465	161	330
Net debt (+) / net cash (-)	393	-105	-354	-16	81
Shareholders' equity	1,691	1,858	2,256	1,527	1,301
Long-term interest-bearing liabilities	341	59	111	145	411
Long-term non-interest-bearing liabilities	219	223	325	207	150
Current interest-bearing liabilities	71	32	–	–	–
Current non-interest-bearing liabilities
	547	645	730	503	395
Capital employed	2,083	1,753	1,902	1,511	1,382

	2024	2023	2022	2021	2020
Key performance indicator
EBITDA margin, %	6.6	9.1	23.2	16.7	3.7
EBIT margin, %	1.8	5.0	18.5	11.6	-2.0
Profit margin, %	1.0	5.6	24.0	10.7	-2.9
Return on equity (rolling 12 months), %	1.1	5.9	29.9	14.0	-3.7
Return on capital employed (rolling 12 months), %	2.4	7.6	32.2	18.5	-3.0
Equity/assets ratio, %	59	66	66	64	58
Debt/equity ratio, %	23	-6	-16	-1	6
Other
Average number of employees	285	293	319	316	318
Pulp production, 1,000 tonnes	341	351.7	397.1	395.3	412.6
Pulp deliveries, 1,000 tonnes	333	356.9	388.4	403.2	416.5
Pulp price of NBSK pulp, USD per tonne ¹	1,491	1,268	1,404	1,198	843
SEK/USD ²	10.56	10.61	10.12	8.58	9.21
Pulp price of NBSK pulp, SEK per tonne	15,752	13,455	14,213	10,280	7,765

¹ Source: Market quotation gross price once a week. Average for each period. ² Source: Riksbanken's daily listings. Average for each period.

QUARTERLY DATA GROUP

		2024			2023			2022			2021
	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Income statement, MSEK
Net turnover	626	686	711	688	637	693	681	744	730	806	784	660	598	570	593	542
EBITDA	10	70	65	35	-76	79	71	178	31	233	254	174	88	130	127	40
Depreciation/amortization and impairment losses	-38	-30	-35	-30	-24	-30	-30	-29	-30	-49	-34	-29	-30	-29	-30	-29
EBIT	-28	40	30	5	-100	49	41	149	1	185	220	145	58	101	97	11
Financial items (net financial items)	-7	-4	0	-8	19	-7	3	-1	10	156	-1	-1	-1	-11	-4	-4
Profit/loss after financial items	-35	35	30	-3	-81	42	44	148	11	341	219	144	57	90	93	7
Tax on income for the period	7	-8	-8	1	17	-9	-10	-30	-2	-71	-46	-30	-8	-19	-19	-2
Net income	-27	28	22	-2	-64	33	34	118	9	270	172	114	49	71	74	5
Per share
Earnings per share, SEK	-0.18	0.18	0.15	-0.02	-0.42	0.22	0.22	0.77	0.06	1.77	1.13	0.75	0.32	0.47	0.48	0.03
Other
Pulp production, 1,000 tonnes	75	91	91	84	80	89	93	90	87	96	111	103	91	92	109	103
Pulp deliveries, 1,000 tonnes	73	82	89	90	85	102	83	87	87	96	106	100	96	93	103	112
Pulp price of NBSK pulp, SEK per tonne	16,335	16,727	16,150	13,839	12,736	12,706	13,749	14,568	15,693	15,613	13,589	12,063	11,573	11,557	10,012	8,044

SHARE DATA1

		2024	2023	2022	2021	2020
Shares outstanding at the beginning of the period2	Number	152,572	152,572	152,572	152,572	152,572
Shares outstanding at the end of the period2	Number	152,572	152,572	152,572	152,572	152,572
Average number of shares outstanding 2	Number	152,572	152,572	152,572	152,572	152,572
Buy-back of treasury shares2	Number	822	822	822	822	822
Earnings per share	SEK	0.13	0.79	3.70	1.28	-0.33
Cash flow after investments/share 3	SEK	-2.85	-1.29	2.80	1.07	-0.30
Equity per share	SEK	11.08	12.18	14.78	9.99	8.53
Dividend 4
Ordinary dividend	SEK	0.50	0.50	0.40	–	–
Extra dividend	SEK	–	0.90	0.20	0.45	–
Total	SEK	0.50	1.40	0.60	0.45	–
Share price at end of period	SEK	8.96	12.18	12.22	10.42	8.15
Direct yield 5	%	4	11	6	6	0
Total shareholder return5	%	-22	11	23	33	-29
Market price/equity/share	times	0.8	1.0	0.8	1.0	1.0
P/E ratio per share	times	68.9	15.4	3.3	8.1	-24.7

¹ None of the key performance indicators are affected by any dilution effect.

² Number of shares in thousands, excluding Rottneros' holdings of treasury shares.

³Cash flow from operating activities less investments in non-current assets, divided by average number of shares outstanding.

⁴ Refers to dividends paid in each year.

⁵Return in relation to the share price at the beginning of the period.

Alternative key performance indicators

Alternative ratios are financial measures that are not defined in IFRS and are presented outside the financial statements. Rottneros uses the alternative performance indicators Cash flow after investments, Net debt/net cash, Capital employed, Return on capital employed, Return on equity, Equity/assets ratio and Debt/equity ratio. The Company believes that these key ratios are useful for readers of the financial statements as a complement to other key performance indicators to assess the Rottneros Group's financial position and profitability.

Rottneros also uses the key indicators P/E ratio, Earnings per share and Operating profit/loss per share, which the Company believes are relevant for investors and other readers. Alternative key ratios can be defined in different ways by other companies and therefore may not be comparable with similar measures used by other companies.

DEFINITIONS FOR IFRS AND ALTERNATIVE KEY PERFORMANCE INDICATORS

EBITDA

Earnings before interest, taxes, depreciation, and amortization (Operating profit before depreciation/amortization and impairment losses).

EBIT

Earnings before interest and taxes (operating profit).

EBIT margin

EBIT as a percentage of net turnover.

Profit margin

Profit/loss after financial items as a percentage of net turnover.

Shareholders' equity per share Shareholders' equity divided by number of shares.

Cash flow after investments Cash flow from operating activities less investments in non-current assets.

Net debt/net cash

Interest-bearing liabilities less cash and cash equivalents.

Capital employed

Shareholders' equity plus interest-bearing liabilities less cash and cash equivalents.

Return on capital employed (rolling 12 months)

EBIT for the last 12 months, as a percentage of average capital employed (average of capital employed at the beginning and at the end of the period).

Return on equity (rolling 12 months) Net income for the last 12 months, as a percentage of average equity (average of equity at the beginning of the period and at the end of the period).

Equity/assets ratio

Equity as a percentage of the sum of shareholders' equity and liabilities.

Liquidity

Cash in hand, deposits with banks and similar institutions and short-term and liquid investments readily convertible into a known amount.

Available liquidity

Cash and cash equivalents and available credit from banks and equivalent institutions.

Debt/equity ratio

Net debt/cash as a percentage of shareholders' equity.

P/E ratio

Share price at the end of the period in relation to earnings per share after tax (rolling 12 months).

Operating profit/loss per share

Profit before financial items and income taxes divided by the average number of shares outstanding.

Glossary

Market pulp

A term in Swedish used synonymously with market pulp.

BCTMP

Bleached Chemi-Thermo-Mechanical Pulp: bleached mechanical pulp where the raw material is impregnated with chemicals. Stronger than TMP. The term is common in North America and Asia (see CTMP).

BEK

Bleached Eucalyptus Kraft pulp.

COD

Chemical Oxygen Demand, chemical method for measuring oxygen-demanding substances.

CTMP

Chemi-Thermo-Mechanical Pulp. Development of TMP, mechanical pulp where the raw material is impregnated with chemicals. Stronger than TMP. The term is used in Europe for both bleached and unbleached pulp.

ECF

Elemental Chlorine Free. Sulphate pulp bleached using chlorine dioxide, not chlorine.

GHG Scope 1

Carbon dioxide emissions from fossil fuels during production in own operations.

GHG Scope 2

Carbon dioxide emissions from electricity and other energy purchased for operations.

High-yield pulp

Groundwood pulp, TMP and CTMP/BCTMP.

Chemical pulp

Pulp produced by boiling pulp wood with chemicals. The pulp can be bleached to a higher brightness and a higher strength than mechanical pulp. Chemical pulp is usually sulphate pulp, but can also be sulphite pulp.

Hardwood pulp

Pulp where the raw material is hardwood, which has shorter cellulose fiber than softwood.

LTIFR

Lost Time Injury Frequency Rate indicates the number of accidents with sick leave per million hours worked.

Softwood pulp

Pulp where the raw material is softwood, which has longer cellulose fiber than hardwood.

Market pulp

Pulp sold on the market and transported to the customer. Market pulp accounts for about one third of pulp production worldwide. The remaining two thirds are produced at integrated paper and board mills, or used internally within a group.

Mechanical pulp

Pulp produced using a mechanical process for fiber separation and processing. Has a higher level of bulk, stiffness and opacity than chemical pulp. Groundwood pulp, TMP and CTMP/BCTMP are types of mechanical pulp.

NBSK

Northern Bleached Softwood Kraft: bleached softwood sulphate pulp. The leading indicator of world market prices.

Groundwood pulp (SGP)

Mechanical pulp based on roundwood as a raw material.

PIX

Index for list prices of pulp provided by Fastmarkets.

TTO

Index for market prices of pulp provided by Trade Tree Online.

TMP

Thermo-Mechanical Pulp: mechanical pulp produced using a technique in which the chips are preheated with steam, but without chemicals.

UKP

Unbleached Kraft Pulp, unbleached sulphate pulp.

Rottneros is an independent producer of market pulp. The Group consists of the parent company Rottneros AB, listed on Nasdaq Stockholm, with the subsidiaries Rottneros Bruk AB and Vallviks Bruk AB, active in the production and sale of market pulp. The Group also includes Rottneros Packaging AB, which manufactures fiber trays, the raw material procurement company SIA Rottneros Baltic in Latvia and the forestry company Nykvist Skogs AB. The Group has approximately 285 employees and had sales of approximately 2.7 BSEK.

Rottneros AB (publ)

Box 144, SE-826 23 Söderhamn, Sweden Street address: Vallvik Mill, SE-826 79 Vallvik, Sweden

+46 (0)270 620 00 info@rottneros.com rottneros.com Corp. ID no.: 556013-5872

Every care has been taken to ensure the accuracy of the information in this report, but Rottneros cannot accept any liability for any possible loss or damage as a consequence of using information in this report.

ROTTNEROS AB YEAR-END REPORT JANUARY – DECEMBER 2024 – 27 –