Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q4 2024 Earnings Presentation
17 slides from Norske Skog Asa's earnings presentation, Feb 7, 2025
Slide 1: Q4 2024 presentation: We create green value
Q4 2024 presentation 7 February 2025 We create green value
Slide 2: Transformation journey
Transformation journey Creating valuable products from wood fibre Four high quality Strategic transition industrial sites Nine paper machines with supporting Publication paper infrastructure for energy, fibre, and water Packaging paper Fibre projects Growing packaging paper producer RCCM capacity: 7
Slide 3: Sale of Norske Skog Boyer
Sale of Norske Skog Boyer Signed agreement for sale of remaining Australasian operations Boyer mill sold to Boyer Capital The Boyer mill sold to Boyer Capital, a company controlled by David Marriner, after 25 years as part of the Norske Skog group Following a long and successful presence in Australa
Slide 4: Quarter highlights
Quarter highlights Fourth quarter 2024 Discontinuation of Publication Paper Australasia reporting segment EBITDA of NOK 33m following discontinuation of Publication Paper Australasia reporting segment due to sales process Announced and ongoing initiatives to secure financial position and performance
Slide 5: Key figures
Key figures Restated to reflect discontinuation of Publication Paper Australasia Deliveries volume Total operating income EBITDA Pre-tax profit Thousand tonnes NOKm NOKm (and margin) NOKm group covenant of min. NOK 400m LTM1 350 3 500 800 800 3 195 41 700 680 588 300 41 42 3 000 600 2 746 29 38 2 66
Slide 6: Financial position
Financial position Restated to reflect discontinuation of Publication Paper Australasia Equity ratio Interest coverage ratio Cash1 Net debt Book equity to total assets EBITDA to net cash interest cost NOKm NOKm (and leverage ratio) group covenant of min. 25% group covenant of min. 2.0x group covenan
Slide 7: Segment financials
Segment financials Maintaining positive EBITDA in challenging markets NOK million Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Publication Paper Europe Deliveries, kt 270 262 279 283 291 Q4 2024 Total operating inc. 3 028 2 058 2 514 2 224 2 369 Publication Paper Europe EBITDA 723 166 464 99 40 Increased deliverie
Slide 8: Transformation through strategic projects
Transformation through strategic projects Close relations to all stakeholders and shared understanding of growth journey Projects at Norske Skog Bruck completed Projects at Norske Skog Golbey completed Q1 2025 Containerboard production Waste-to-energy boiler Containerboard production Biomass
Slide 9: Publication paper demand stable in 2023-24
Publication paper demand stable in 2023-24 Some excess capacity across newsprint and magazine paper grades remains Monthly publication paper demand and capacity Western Europe Publication paper closing stock volume Western Europe Thousand tonnes Number of days closing stocks covers total shipments 1
Slide 10: Well positioned on publication paper cost curve
Well positioned on publication paper cost curve Low-cost publication paper producers still able to earn a margin Newsprint cash cost Western Europe Uncoated mechanical cash cost Western Europe Coated mechanical cash cost Western Europe EUR per tonne EUR per tonne EUR per tonne 800 800 800 700 700 70
Slide 11: Increased containerboard capacity in 2025-27
Increased containerboard capacity in 2025-27 Industry operating rate expected around 85% for next 1-3 years Recycled containerboard demand1 and delivery capacity Western Europe Thousand tonnes Long-term growth trends 30 Switching to sustainable and renewable packaging 25 Increasing presence of e
Slide 12: Containerboard ramp-up
Containerboard ramp-up Expect efficient machines to prevail in current market Monthly RCCM production Bruck PM3 RCCM mill gate cash cost curve Western Europe Golbey PM1 – 550kt containerboard capacity Thousand tonnes EUR per tonne Cabling at PM1 represents the majority of remaining construction work
Slide 13: Pressure from high raw material prices
Pressure from high raw material prices Energy and pulpwood prices increasing from high levels Energy prices Germany Recycled paper prices Germany Spruce pulpwood prices Norway CO2 (EUA) price EUR per MWh EUR per tonne NOK per solid cubic metre EUR per allowance 160 350 700 100 90 140 300 600 80 120
Slide 14: Product prices track marginal producer cost
Product prices track marginal producer cost Price increases announced for containerboard Publication paper prices Germany Recycled containerboard index Germany EUR per tonne Index 1 400 1 000 900 1 200 800 1 000 700 600 800 500 600 400 400 300 200 200 100 0 0 2019 2020 2021 2022 2023 2024 2025 2019
Slide 15: Reviewing future opportunities at Saugbrugs
Reviewing future opportunities at Saugbrugs Final insurance settlement of NOK 540m to be paid in full and recognised during Q1 2025 Final insurance settlement Saugbrugs and the insurer agreed on final settlement of NOK 540 million The settlement amount is freely available and provides Saugbrugs with
Slide 16: Outlook
Outlook Concluding remarks Prices remain stable and increasing for publication paper and containerboard, respectively Significant emphasis on reducing production cost and working capital to maintain competitive position Bruck PM3 to reach full capacity utilisation of 95% in H2 2025 Golbey PM1 to sta
Slide 17: We create green value
Norske Skog ASA Postal address: P.O. Box 294 Skøyen, 0213 Oslo, Norway Visitors: Sjølyst Plass 2, 0278 Oslo, Norway Phone: +47 22 51 20 20 Email: info@norskeskog.com Email: ir@norskeskog.com This presentation contains statements regarding the future in connection with Norske Skog’s growth initiative