NORSKE SKOG ASA

“Prices remained steady, though raw material costs rose, offset by lower energy costs. • Packaging paper: The West-European recycled containerboard market consumed 20 million tonnes in 2024, with a 3.4% demand increase . Norske Skog’s Bruck mill ramps up production (full capacity by second half 2025), while Golbey’s delayed start targets cost-competitive output using green energy.”

Annual report 2024A · The company itself

“Designed to meet the growing global demand for sustainable packaging solutions, this facility positions Norske Skog as a key player in the European packaging market. The investment underscores our dedication to reducing dependency on traditional newsprint products while capitalising on emerging market opportunities.”

Annual report 2024A · The company itself

“The Western European recycled containerboard consumption was approximately 20 million tonnes in 2024. Unlike the publication paper markets, the packaging market experienced increased demand in the year which in turn have improved the supply demand balance compared to 2023.”

Annual report 2024A · The company itself

“Annual demand for recycled containerboard in Europe increased by 3.4% in 2024, compared to the same period last year.”

Annual report 2024A · The company itself

“Norske Skog’s operations are predominantly production of publication paper, but with increasing exposure to packaging paper. The demand for publication paper will likely continue to decrease and the market balance is over time dependent on future closures of production capacity either permanently or through conversions to other paper grades.”

Annual report 2024A · The company itself

“The completion and commissioning of the converted newsprint line into a new packaging paper line (PM1) at our Golbey mill in France represent the single largest investment in the company’s history since 1962, at a cost of EUR 320 million. This bold move is a testament to our commitment to innovation, sustainability, and market diversification.”

Annual report 2024A · The company itself

“Exposure to both newsprint and magazine paper grades give some product diversification for the publication paper segment, while the conversion of Norske Skog Golbey PM1 will provide further product diversification into recycled containerboard, which is expected to be a growing market.”

Annual report 2024A · The company itself

“The net investment in BCTMP production will range between NOK 1.5 to 2 billion (EUR 140-180 million). The construction period is expected to last for two years starting in the second half of 2025.”

Annual report 2024A · The company itself

“One of the primary targets is to achieve 100% recycled fibre as raw material in packaging paper products. This initiative supports Norske Skog’s commitment to circular economy principles, reducing dependency on virgin raw materials and lowering the carbon footprint of production.”

Annual report 2024A · The company itself

“Over the last two years Norske Skog has been setting up a containerboard knowledge network group to prepare the workforce for entering the packaging paper market. Actions in this area has been maintained during 2024 and is related to the business model and strategy of the group to diversify its operations in new growth markets.”

Annual report 2024A · The company itself

“The baseline for this target is derived from prior years’ data on fibre sourcing, with full achievement anticipated by a defined milestone year. Norske Skog has a production capacity of 210 000 tonnes of packaging paper as of 2024 but will scale up production to 760 000 tonnes of packaging paper by 2027, all based on recycled fibre.”

Annual report 2024A · The company itself

“Norske Skog is a leading European producer of publication and packaging paper with a business strategy: 1. Improve and optimise publication paper cash flows : Enhancing efficiency and profitability in the traditional newsprint and magazine paper segments.”

Annual report 2024A · The company itself

“Become a leading independent European producer of renewable packaging paper: Expanding into recycled containerboard production with converted newsprint machines at Norske Skog Bruck and Norske Skog Golbey.”

Annual report 2024A · The company itself

“The NOK 4 billion investment has converted a newsprint machine to produce 550 000 tonnes of recycled packaging paper annually, strengthening Norske Skog’s position as a leading independent supplier in Europe. With commercial production set for early 2025, the project aligns with rising demand for eco-friendly packaging and will significantly enhance the company’s long-term value and environmental impact.”

Annual report 2024A · The company itself

“Norske Skog’s packaging paper production in Europe commenced in the first quarter of 2023 at Norske Skog Bruck and is expected to reach a full production capacity of 0.2 million tonnes in second half of 2025 . Norske Skog Golbey is set to begin production in the first quarter of 2025 and will when fully ramped up have a production capacity of 0.6 million tonnes . Combined the mills will produce 0.8 million tonnes of recycled containerboard .”

Annual report 2024A · The company itself

“tonnes of competitive pulp to meet the growing demand, especially for products in the packaging market. “It is gratifying for equipment suppliers, lenders, wood and other raw materials suppliers, shareholders, and customers that we are investing in and establishing a plant for bleached chemi-thermomechanical pulp at Saugbrugs.”

Annual report 2024A · The company itself

“Outcomes of the assessment: The nature of Norske Skog’s business model is to use renewable sources of energy and 100% recycled material for packaging paper production and a mix of renewable and virgin materials for publication paper production.”

Annual report 2024A · The company itself

“The increasing demand for sustainable products has led to diversification into recycled containerboard and bioproducts, reinforcing the company’s market position and resilience.”

Annual report 2024A · The company itself

“The segment encompasses production and sale of recycled containerboard in Europe.”

Annual report 2024A · The company itself

“Pulp production based on recovered paper consumes less energy than production from fresh fibre because the fibres in recovered paper are more easily separated than those within wood.”

Annual report 2024A · The company itself

“Because the authorities' climate change policy encourage use of recycled fibre in the production of paper products, it is a risk that there will be scarce availability at sustainable price level to produce paper products due to the purchasing power of our customers.”

Annual report 2024A · The company itself

“In the upstream segment, the company sources fresh fibre from sustainably managed forests and recovered paper from recycling suppliers.”

Annual report 2024A · The company itself

“Despite these positive impacts, Norske Skog acknowledges the risk associated with the availability of recycled fibre for production. Climate change policies encourage increased use of recycled fibers in paper production, potentially leading to supply shortages and unsustainable price levels. Additionally, alternative uses for recycled fibre could divert resources away from paper production, exacerbating the scarcity issue.”

Annual report 2024A · The company itself

“The use of recovered paper and secondary materials is integral to Norske Skog’s strategy to reduce dependency on virgin resources. In 2024, 0 .7 million tonnes of recovered paper were used, contributing significantly to the circularity of the production process.”

Annual report 2024A · The company itself

“• Circularity and innovation: Using recycled fibre (e.g., containerboard from recovered paper) and developing bio-products enhance resource efficiency and lower emissions.”

Annual report 2024A · The company itself

“tonnes of publication paper annually, all based on 100% recycled paper collected in France. Our shift to recycled fibre is a cornerstone of our sustainable development strategy, focused on decarbonisation and leadership in the circular economy.”

Annual report 2024A · The company itself

“The recycled containerboard production will be fully based on recycled fibre and will utilise green energy generated from the new waste-to-energy facility at the Bruck industrial site and a new biomass plant at the Golbey industrial site.”

Annual report 2024A · The company itself

“The increasing demand for sustainable products has led to diversification into recycled containerboard and bioproducts, reinforcing the company’s market position and resilience.”

Annual report 2024A · The company itself

“One of the primary initiatives is the increased use of renewable and recycled materials in the production of its goods. By integrating these materials, Norske Skog effectively reduces its carbon footprint while supporting a circular economy where resources are reused, thereby lowering the demand for virgin raw materials.”

Annual report 2024A · The company itself

“Norske Skog’s strategy and business model: Norske Skog’s strategy emphasizes sustainability with a focus on fibre certification, circularity, and biodiversity protection. The company integrates biodiversity risks into its long-term planning with an eye on reducing environmental impacts and ensuring resource availability. • Time Horizons: o Short-Term (0-5 years): Immediate challenges include regulatory changes and water scarcity. o Medium-Term (5-10 years): Tighter certification standards and enhanced biodiversity monitoring will shape business decisions. o Long-Term (10+ years): Risks like raw material depletion and water shortages may necessitate a business model shift, potentially toward alternative bio-products and increased finished product circularity.”

Annual report 2024A · The company itself

“On average, 79% of Norske Skog’s finished goods are recycled, making it one of the highest recycling rates in the European market according to the European Paper Recycling Council (EPRC) in 2023.”

Annual report 2024A · The company itself

“I secondary fibers and reduce dependence on virgin materials. Additionally, Norske Skog ensures that all raw materials come from sustainably managed forests, with a strong preference for FSC- and PEFC-certified wood.”

Annual report 2024A · The company itself

“Norske Skog’s waste management strategy focuses on minimising landfill waste and maximising resource recovery. In 2024, only 15% of total production waste was sent to landfill, with the remainder repurposed for energy, construction materials, or agricultural use.”

Annual report 2024A · The company itself

“Norske Skog’s resource use and circular economy policy is designed to reduce environmental impact by increasing the use of recycled and renewable resources. Implementation is closely monitored through environmental management systems and annual sustainability reporting to ensure continuous improvement.”

Annual report 2024A · The company itself

“Become a leading independent European producer of renewable packaging paper: Expanding into recycled containerboard production with converted newsprint machines at Norske Skog Bruck and Norske Skog Golbey.”

Annual report 2024A · The company itself

“Norske Skog’s packaging paper production in Europe commenced in the first quarter of 2023 at Norske Skog Bruck and is expected to reach a full production capacity of 0.2 million tonnes in second half of 2025 . Norske Skog Golbey is set to begin production in the first quarter of 2025 and will when fully ramped up have a production capacity of 0.6 million tonnes . Combined the mills will produce 0.8 million tonnes of recycled containerboard .”

Annual report 2024A · The company itself

“Norske Skog continuously enhances its recycling processes to increase the use of Type Resource inflows including use Utilisation of renewable and recycled resources in production of products Impact, positive x x x x x Norske Skog uses renewable and recycled resources in the production of finished goods, which have several positive impacts on the environment up- and downstream in the value chain. By reusing the finished goods and using renewable resources, Norske Skog lowers the carbon footprint and help store carbon in the product life cycle. Recycling materials also help establish circular economy in which materials are being reused encouraging reduced demand for virgin raw materials.”

Annual report 2024A · The company itself

“The past year has been characterized by significant global uncertainties, including heightened political tensions, volatile energy markets, and the ongoing impact of climate change.”

Annual report 2024A · The company itself

“Energy costs and supply chain disruptions have been particular areas of focus.”

Annual report 2024A · The company itself

“Energy prices decreased in 2024 but are still on a high level compared to historical averages. Cost of pulpwood has increased, but the prices are expected to remain stable at current level.”

Annual report 2024A · The company itself

“Norske Skog faces a competitive risk related to fluctuations in energy prices. The energy prices in Europe are mainly driven by supply and demand for energy.”

Annual report 2024A · The company itself

“Prices remained steady, though raw material costs rose, offset by lower energy costs. • Packaging paper: The West-European recycled containerboard market consumed 20 million tonnes in 2024, with a 3.4% demand increase .”

Annual report 2024A · The company itself

“The cost of raw materials, both pulpwood and recovered paper, have increased while energy costs decreased during 2024.”

Annual report 2024A · The company itself

“The group Is also exposed to movements in the prices of key input factors such as energy, recovered paper, wood and chemicals.”

Annual report 2024A · The company itself

“Norske Skog’s energy intensive manufacturing processes in all mills require substantial energy sources.”

Annual report 2024A · The company itself

“During a panel discussion with Minister of Trade and Industry, Cecilie Myrseth, Carsten Dybevig, VP of Communication and Public Affairs at Norske Skog, outlined four key strategies to boost Norway’s energy-intensive industries: - Secure competitive power contracts for industrial players - Prioritize energy efficiency to release more energy for other uses - Maintain the CO2 compensation scheme (offsetting the CO2 surcharge in energy prices) to prevent carbon leakage - Enhance investment incentives for the green mainland industry BCTMP AT SAUGBRUGS Norske Skog plans to enter the pulp market, and initiated a main study aiming to enter the bleached chemi-thermomechanical pulp (BCTMP) market by starting production at Norske Skog Saugbrugs in Halden.”

Annual report 2024A · The company itself

“Additionally, the integration of the new line with the mill’s existing and newly built bioenergy capabilities enhances operational efficiency and supports our sustainability goals.”

Annual report 2024A · The company itself

“We have prioritised investments in renewable energy and energy efficiency, such as the 50 MW incineration plant at Norske Skog Bruck and our participation in France’s largest bioenergy plant, which boasts a capacity of 125 MW.”

Annual report 2024A · The company itself

“The recycled containerboard production will be fully based on recycled fibre and will utilise green energy generated from the new waste-to-energy facility at the Bruck industrial site and a new biomass plant at the Golbey industrial site.”

Annual report 2024A · The company itself

“Norske Skog has invested in low-emission energy generation in Norske Skog Bruck and Norske Skog Golbey and will continue to evaluate opportunities going forward to reduce exposure to low emission energy prices in the market.”

Annual report 2024A · The company itself

“Energy prices decreased in 2024 but are still on a high level compared to historical averages. Cost of pulpwood has increased, but the prices are expected to remain stable at current level.”

Annual report 2024A · The company itself

“Operations: o All sites are linked to water use, wastewater discharge, and raw material harvesting, all of which affect local ecosystems. o Forest sourcing, governed by FSC/PEFC certifications, aims to mitigate environmental risks, though poor logging practices can cause habitat loss, species disruption, and soil degradation.”

Annual report 2024A · The company itself

“Integrate vertically within the entire value chain: Securing long-term competitiveness by controlling upstream (raw materials) and downstream (distribution) activities.”

Annual report 2024A · The company itself

“The cost of raw materials, both pulpwood and recovered paper, have increased while energy costs decreased during 2024.”

Annual report 2024A · The company itself

“The group Is also exposed to movements in the prices of key input factors such as energy, recovered paper, wood and chemicals.”

Annual report 2024A · The company itself

“Norske Skog is not vertically integrated into forest resources and must therefore source wood from third parties. The supply of wood is to a certain extent covered by medium to long-term contracts which reduce cost exposure and increase supply certainty.”

Annual report 2024A · The company itself

“Norske Skog has mills that are entirely dependent on sourcing of wood, which causes a risk due to possible future scarcity of forest resources. The availability may be affected by overexploitation due to high demand, deforestation issues, climate change, loss of biodiversity, erosion and high and volatile market price of wood.”

Annual report 2024A · The company itself

“o Raw material harvesting: Although 95% of our wood fibre is certified by FSC and PEFC, sustainable sourcing practices are vital for ensuring the conservation of biodiversity, preventing deforestation, and protecting habitats.”

Annual report 2024A · The company itself

“Norske Skog’s mills are dependent on a consistent supply of wood. The availability of forest resources is threatened by overexploitation, deforestation, climate change, biodiversity loss, erosion, and fluctuating wood prices.”

Annual report 2024A · The company itself

“Risk factor 2: Dependency on natural resources: sourcing of wood (a) Key actions taken and planned for the future 1. Sustainable sourcing and certification: o Action taken: 95% of purchased fibre is certified through FSC and PEFC, ensuring that wood is sourced from responsibly managed forests.”

Annual report 2024A · The company itself

“Upstream and downstream: o Upstream: The sourcing of certified fibre (95%) helps reduce risks of deforestation and forest degradation.”

Annual report 2024A · The company itself

“These materials are sourced through a combination of direct procurement from certified suppliers and the integration of secondary materials to support a circular economy. The group prioritises the use of certified wood, with 99% of roundwood fibres and sawmill chips originating from sustainably managed forests under FSC and PEFC certification schemes.”

Annual report 2024A · The company itself

“The primary products of Norske Skog’s production processes are publication paper and packaging paper, both of which are designed with circularity in mind.”

Annual report 2024A · The company itself

“The tentative exclusion of the two Norwegian mills, Saugbrugs and Skogn, from the Energy Trading System (ETS) poses a risk of severe financial impact. This exclusion of Norske Skog’s Norwegian mills will, with a CO2 price of EUR 70, have a tentative, negative financial impact for the entire group.”

Annual report 2024A · The company itself

“Norske Skog has observed a growing market demand for products derived from recycled and renewable sources, particularly as governmental policies impose tariffs on fossil-based alternatives. By meeting this demand, Norske Skog actively contributes to climate mitigation efforts by reducing reliance on high-carbon-footprint materials.”

Annual report 2024A · The company itself

“With the BOX project, including the conversion of PM1, we’ve made investments that: • Recycle nearly 1 million tonnes of paper and corrugated materials each year • Optimise water usage • Maximise renewable energy • Reduce CO2 emissions, contributing to our ‘Fit for 55’ goal of cutting the Norske Skog Group’s carbon footprint by 55% by 2030 MEETING WITH THE NORWEGIAN MINISTER OF TRADE AND INDUSTRY The Norwegian government invited 100 leading business leaders to a conference and workshop at Kuben School in Oslo to discuss how to strengthen Norway’s industrial competitiveness and at the same time developing a zero emission industry.”

Annual report 2024A · The company itself

“Norske Skog will strive to achieve net zero emissions in scope 1 and 2 by 2050, positioning us as a competitive leader in a net zero economy.”

Annual report 2024A · The company itself

“Similarly, Norske Skog is utilising waste materials for product development, particularly through the production of biogas and the repurposing of ash from energy plants as a substitute for cement. This approach not only reduces emissions but also minimises the demand for materials with a high carbon footprint, such as traditional cement.”

Annual report 2024A · The company itself

“Strategy Type Working conditions Industrial accidents Impact, negative x x x x Norske Skog has a negative impact on the health and safety of own workforce related to relevant risks within our industry and type of operations. Employees working in operations (process operators) are exposed to heavy machinery, hot media, harmful chemicals and risk of fires 24/7 due to shift work and continuous operations. This can lead to work related accidents and loss of life.”

Annual report 2024A · The company itself

“The rate of female workers in the process industry and in Norske Skog is low compared to other sectors. Shift work and unfavorable working hours have been explanations for the low female share. In 2024, the female share of the total workforce was 13%, the same share as in 2023:.”

Annual report 2024A · The company itself

“Norske Skog is committed to provide a safe working environment and has a long-standing history of continuous learning through the health and safety programme at the mills called “Take care 24/7”. The programme receives high continued support across all operations and is supported by policies, procedures, training, risk analysis root cause analysis and best practice sharing between mills and in the industry.”

Annual report 2024A · The company itself

“ATTRACT AND KEEP TOP TALENT All business units cooperate with selected schools, colleges, and universities in their region. The engagement embraces annual activities such as mill visits, project work, diploma theses, trainee, and apprentices’ programs.”

Annual report 2024A · The company itself

“Water intensive production process Impact, negative x x x x The water intensive production process has a negative impact on the climate because of the large quantity of fresh water needed to produce publication paper and packaging paper. The process needs large amount of water to dissolve and mix the different input factors together into mechanical pulp and deinked pulp to produce finished goods.”

Annual report 2024A · The company itself

“Risk 1: Water availability for production processes Norske Skog relies on fresh water for the production of publication and packaging paper. Climate change-induced temperature rises are expected to alter precipitation patterns, leading to periods of drought, inconsistent rainfall, and shrinking water sources. This poses a business risk as it may result in water shortages that impact production capacity and raise concerns over industrial water usage compared to public needs.”

Annual report 2024A · The company itself

“Norske Skog’s policy promotes sustainable marine practices, focusing on minimising impacts on marine ecosystems and ensuring responsible water use, especially in areas where discharges affect fresh water and brackish water bodies. Norske Skog works with both with national and local authorities to protect marine environments.”

Annual report 2024A · The company itself

“Water usage management: o Action taken: Norske Skog monitors water usage and quality in all its production sites. o Expected outcomes: By implementing a closed-loop water system in certain facilities, Norske Skog aims to ensure that water availability remains stable despite potential climate changes. o Future plans: Expansion of water recycling systems and implementation of closed-loop systems to reduce dependency on external water sources. o Policy contribution: Supports SDG 6 (Clean Water and Sanitation) and contributes to more efficient resource usage in the face of climate change.”

Annual report 2024A · The company itself

“Norske Skog’s energy intensive manufacturing processes in all mills require substantial energy sources.”

Annual report 2024A · The company itself

“Pollution of air from boilers Impact, negative x x x x All Norske Skog mills emit various pollutants, including volatile organic compounds (VOCs), sulphur dioxide (SO2), nitrogen oxides (NOx), and particulate matter (PM), during operations linked to production of heat with company owned boilers.”

Annual report 2024A · The company itself

“The Norske Skog Golbey mill in France is undergoing a conversion from natural gas to heat based on certified biomass.”

Annual report 2024A · The company itself

“In 2024 the annual demand for standard newsprint in Europe decreased by 1% compared to previous year.”

Annual report 2024A · The company itself

“Norske Skog operates four mills in Europe (Norske Skog Skogn, Norske Skog Saugbrugs, Norske Skog Bruck, and Norske Skog Golbey): • Publication paper: 1.3 million tonnes annually (0.8 million tonnes newsprint, 0.5 million tonnes magazine paper) under brands like Nornews and Norcote . • Packaging paper: Following conversions, Norske Skog Bruck (210 tonnes) and Norske Skog Golbey (550 000 tonnes, starting in 2025) will produce 760 000 tonnes of recycled containerboard (Strato brand). • Energy and bio-products: Mills generate renewable energy, biogas at several mills and innovative bio-products.”

Annual report 2024A · The company itself

“The sector in which Norske Skog operates is another critical criterion. As a major player in the international publication paper market, the company must adhere to industry-specific regulations and standards, ensuring ethical and sustainable practices throughout its value chain.”

Annual report 2024A · The company itself

“Publication paper Europe encompasses production and sale of newsprint and magazine paper in Europe.”

Annual report 2024A · The company itself

“o Regulatory landscape: Assumes that global and local policies regarding biodiversity and deforestation will become more stringent, necessitating better traceability and reporting practices in the supply chain like the EU’s Directive on Deforestation requiring traceability of wood log geolocation in the finished product declaration from 2026.”

Annual report 2024A · The company itself

“Norske Skog will strive to achieve net zero emissions in scope 1 and 2 by 2050, positioning us as a competitive leader in a net zero economy.”

Annual report 2024A · The company itself

“o Expected outcomes: Reduction in deforestation and forest degradation, contributing to the long-term sustainability of wood fibre supply. o Future plans: Reach 100% of certified wood sources, collaborating with forest owners in reaching the target, and strengthen partnerships with forest certification organisations. o Policy contribution: Contributes to SDG 12 (Responsible Consumption and Production) and SDG 15 (Life on Land).”

Annual report 2024A · The company itself

“o Regulatory landscape: Assumes that global and local policies regarding biodiversity and deforestation will become more stringent, necessitating better traceability and reporting practices in the supply chain like the EU’s Directive on Deforestation requiring traceability of wood log geolocation in the finished product declaration from 2026.”

Annual report 2024A · The company itself

“Norske Skog operates four mills in Europe (Norske Skog Skogn, Norske Skog Saugbrugs, Norske Skog Bruck, and Norske Skog Golbey): • Publication paper: 1.3 million tonnes annually (0.8 million tonnes newsprint, 0.5 million tonnes magazine paper) under brands like Nornews and Norcote . • Packaging paper: Following conversions, Norske Skog Bruck (210 tonnes) and Norske Skog Golbey (550 000 tonnes, starting in 2025) will produce 760 000 tonnes of recycled containerboard (Strato brand). • Energy and bio-products: Mills generate renewable energy, biogas at several mills and innovative bio-products.”

Annual report 2024A · The company itself

“Stricter regulations on biodiversity and ecosystems could impact Norske Skog’s financial standing, increasing costs and potentially affecting investor confidence.”

Annual report 2024A · The company itself

“Measures to mitigate the risks are handled in our robust Steering Guidelines, fostering a culture of openness, honesty, and cooperation across all business units, enhancing our reputation as a “best in class” partner.”

Annual report 2024A · The company itself

“The group’s revenues and costs are partly hedged operationally from a currency point of view; providing some risk reduction but significant movements, particularly of NOK vs GBP, USD an EUR, pose a financial risk for the group.”

Annual report 2024A · The company itself

“Norske Skog has loans predominantly denominated in EUR, matching cash flows from the EUR based European market.”

Annual report 2024A · The company itself

“The group’s revenues and costs are partly hedged operationally from a currency point of view; providing some risk reduction but significant movements, particularly of NOK vs GBP, USD an EUR, pose a financial risk for the group.”

Annual report 2024A · The company itself

“Norske Skog has loans predominantly denominated in EUR, matching cash flows from the EUR based European market.”

Annual report 2024A · The company itself

“Outcomes of the assessment: The nature of Norske Skog’s business model is to use renewable sources of energy and 100% recycled material for packaging paper production and a mix of renewable and virgin materials for publication paper production.”

Annual report 2024A · The company itself

“Actions to invest in new business areas and low emission products Norske Skog is investing in bio products made from renewable and recycled resources, responding to growing demand and customer preferences towards low emission products.”

Annual report 2024A · The company itself

“Actions to invest in new business areas and low emission products Norske Skog is investing in bio products made from renewable and recycled resources, responding to growing demand and customer preferences towards low emission products.”

Annual report 2024A · The company itself

“Improve and optimise publication paper cash flows : Enhancing efficiency and profitability in the traditional newsprint and magazine paper segments.”

Annual report 2024A · The company itself

“During a panel discussion with Minister of Trade and Industry, Cecilie Myrseth, Carsten Dybevig, VP of Communication and Public Affairs at Norske Skog, outlined four key strategies to boost Norway’s energy-intensive industries: - Secure competitive power contracts for industrial players - Prioritize energy efficiency to release more energy for other uses - Maintain the CO2 compensation scheme (offsetting the CO2 surcharge in energy prices) to prevent carbon leakage - Enhance investment incentives for the green mainland industry BCTMP AT SAUGBRUGS Norske Skog plans to enter the pulp market, and initiated a main study aiming to enter the bleached chemi-thermomechanical pulp (BCTMP) market by starting production at Norske Skog Saugbrugs in Halden.”

Annual report 2024A · The company itself

“Manufacture of biogas and biofuels for use in transport and of bioliquids Saugbrugs Biogas production produced from wastewater streams related to manufacturing of publication paper. The biogas is sold and used for utility vehicles in Halden, Norway.”

Annual report 2024A · The company itself

“In terms of transition risk related to pricing of and access to energy, the results of the resilience analysis reflect that the resilience of Norske Skog’s business model is strengthened based on recent capital investment in low emission energy generation at Norske Skog Bruck and Norske Skog Golbey, These investments has contributed to important risk mitigation related to the dependency on fossil sources while improving the share of renewable sources in the energy mix and avoiding long term energy pricing risk.”

Annual report 2024A · The company itself

“In terms of transition risk related to pricing of and access to energy, the results of the resilience analysis reflect that the resilience of Norske Skog’s business model is strengthened based on recent capital investment in low emission energy generation at Norske Skog Bruck and Norske Skog Golbey, These investments has contributed to important risk mitigation related to the dependency on fossil sources while improving the share of renewable sources in the energy mix and avoiding long term energy pricing risk.”

Annual report 2024A · The company itself

“Prices for publication paper and packaging paper relative to production cost is the most important factor for the profitability in the industry. Negative demand development and lack of or insufficient capacity management in the industry could result in pressure on prices and profitability.”

Annual report 2024A · The company itself

“Prices remained steady, though raw material costs rose, offset by lower energy costs. • Packaging paper: The West-European recycled containerboard market consumed 20 million tonnes in 2024, with a 3.4% demand increase .”

Annual report 2024A · The company itself

“Norske Skog’s Bruck mill ramps up production (full capacity by second half 2025), while Golbey’s delayed start targets cost-competitive output using green energy. Margins remain pressured by industry overcapacity and rising recycled fibre costs.”

Annual report 2024A · The company itself

“The prices for recycled containerboard were slightly higher in 2024 compared to 2023, but as prices for raw materials, in particular recycled fibre, also increased, the effect on profit margins were limited.”

Annual report 2024A · The company itself

“The group Is also exposed to movements in the prices of key input factors such as energy, recovered paper, wood and chemicals.”

Annual report 2024A · The company itself

“During 2024 costs of raw materials has been high compared to previous years. Thus, efforts to continue to improve efficiencies and develop purchasing strategies and having a contract structure that matches production are key to mitigate these risk factors and reduce the impact on the group’s profitability.”

Annual report 2024A · The company itself

“Demand decreased in 2024 (newsprint -1%, magazine paper -5%), but capacity closures have stabilised supply-demand for some grades.”

Annual report 2024A · The company itself

“This more moderate decline followed a sharp contraction towards the end of 2022 and into 2023, which was largely driven by high prices driving a further shift to digital and inventory reductions as consumers adjusted stock levels after significant build-ups during the 2022 energy crisis.”

Annual report 2024A · The company itself

“The main exposures for the group are linked to demand development in key paper grades within publication paper and packaging paper and capacity management by the suppliers and thereby impacting prices.”

Annual report 2024A · The company itself

“The demand for publication paper will likely continue to decrease and the market balance is over time dependent on future closures of production capacity either permanently or through conversions to other paper grades.”

Annual report 2024A · The company itself

“The current and anticipated effects business model, value chain, strategy, and decision-making are: • Water shortage risks: Anticipated water scarcity (especially in the Norske Skog Golbey and Norske Skog Bruck mills due to higher temperatures and drier summers) could lead to production disruptions, forcing the company to consider water rationing or find alternative water sourcing methods. • Climate change and water availability: A wetter climate in Norway and Australia reduces water risks in those locations.”

Annual report 2024A · The company itself

“Freshwater availability is a critical factor in production, and climate change-induced droughts pose a significant operational risk. To mitigate this, the group has implemented water efficiency measures and invested in wastewater treatment technologies.”

Annual report 2024A · The company itself

“The availability of forest resources is threatened by overexploitation, deforestation, climate change, biodiversity loss, erosion, and fluctuating wood prices.”

Annual report 2024A · The company itself

“The availability of forest resources is threatened by overexploitation, deforestation, climate change, biodiversity loss, erosion, and fluctuating wood prices.”

Annual report 2024A · The company itself

“Norske Skog’s energy intensive manufacturing processes in all mills require substantial energy sources.”

Annual report 2024A · The company itself

“Pollution of air from boilers Impact, negative x x x x All Norske Skog mills emit various pollutants, including volatile organic compounds (VOCs), sulphur dioxide (SO2), nitrogen oxides (NOx), and particulate matter (PM), during operations linked to production of heat with company owned boilers.”

Annual report 2024A · The company itself

“Designed to meet the growing global demand for sustainable packaging solutions, this facility positions Norske Skog as a key player in the European packaging market. The investment underscores our dedication to reducing dependency on traditional newsprint products while capitalising on emerging market opportunities.”

Annual report 2024A · The company itself

“How Norske Skog’s business model and/or strategy can realise the opportunity Low emission products Norske Skog’s strategy to offer low emission products Products Norske Skog sees shifting consumer preferences and trends towards low emission paper and packaging solutions as well as bio-products. As more consumers and businesses prioritise environmental concerns, Norske Skog will leverage this opportunity by continuing to lower emission along the value chain.”

Annual report 2024A · The company itself

“This more moderate decline followed a sharp contraction towards the end of 2022 and into 2023, which was largely driven by high prices driving a further shift to digital and inventory reductions as consumers adjusted stock levels after significant build-ups during the 2022 energy crisis.”

Annual report 2024A · The company itself

“The demand for publication paper will likely continue to decrease and the market balance is over time dependent on future closures of production capacity either permanently or through conversions to other paper grades.”

Annual report 2024A · The company itself

“For the remaining part the price development of wood is linked to the activity in the pulp and paper sector with lower activity and pricing giving lower cost and opposite when activity is high.”

Annual report 2024A · The company itself

“The development in the global economy is important for consumer spending, and this impacts the publication paper and packaging paper industry, and thus Norske Skog’s operations and results.”

Annual report 2024A · The company itself

“The past year has been characterized by significant global uncertainties, including heightened political tensions, volatile energy markets, and the ongoing impact of climate change. These factors have created challenging conditions for the pulp and paper industry.”

Annual report 2024A · The company itself

“Both publication and packaging paper markets see some excess capacity, and capacity reductions are required to tighten the markets. Industry utilisation is expected to remain below the historical average until capacity is reduced.”

Annual report 2024A · The company itself

“Risk like unethical business practices, are concentrated within our own operations particularly in sales and procurement where securing contracts globally heightens exposure to risks like anti-competitive behaviour, especially in regions with weaker regulatory frameworks. Upstream, our supply chain faces risks from supplier non-compliance with ethical standards, while downstream, customer trust could erode if our publication paper operations are linked to unethical conduct.”

Annual report 2024A · The company itself

“Golbey’s strategic location provides it with significant competitive advantages. Situated in the heart of Europe, the mill benefits from excellent access to key markets, an abundant supply of raw materials, and a highly skilled workforce.”

Annual report 2024A · The company itself

“Norske Skog operates four mills in Europe (Norske Skog Skogn, Norske Skog Saugbrugs, Norske Skog Bruck, and Norske Skog Golbey): • Publication paper: 1.3 million tonnes annually (0.8 million tonnes newsprint, 0.5 million tonnes magazine paper) under brands like Nornews and Norcote . • Packaging paper: Following conversions, Norske Skog Bruck (210 tonnes) and Norske Skog Golbey (550 000 tonnes, starting in 2025) will produce 760 000 tonnes of recycled containerboard (Strato brand). • Energy and bio-products: Mills generate renewable energy, biogas at several mills and innovative bio-products.”

Annual report 2024A · The company itself

“Norske Skog has adopted the following business strategy: • Improve and optimise publication paper cash flows • Become a leading and independent European producer of renewable packaging paper • Integrate vertically within the entire value chain NORSKE SKOG IN 2024 Markets – publication paper In 2024, demand for European publication paper declined at a slower rate than the historical average of approximately 5-10%.”

Annual report 2024A · The company itself

“Norske Skog has 4 business units in Europe with individual programs for climate change mitigation.”

Annual report 2024A · The company itself

“All the four European mills and the regional sales organisations are included in the reporting segment.”

Annual report 2024A · The company itself

“The scope of actions covers facilities in regions at risk of water scarcity, especially Bruck and Golbey, and involves collaboration with local governments, environmental groups, and water resource management bodies.”

Annual report 2024A · The company itself

“The Norske Skog Boyer mill in Australia will be discontinued in 2025.”

Annual report 2024A · The company itself

“101 people, is headquartered in Norway, and is listed on the Oslo Stock Exchange (NSKOG).”

Annual report 2024A · The company itself