Norske Skog Asa · OSL:NSKOG
Norske Skog Asa — Q1 2025 Earnings Presentation
15 slides from Norske Skog Asa's earnings presentation, Apr 23, 2025
Slide 1: Q1 2025 presentation
Q1 2025 presentation 23 April 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: Quarter highlights
Quarter highlights First quarter 2025 EBITDA of NOK 612m in the quarter Final settlement agreed with insurance company, NOK 540m paid in full and NOK 560m recognised in EBITDA during Q1 2025 Continued pressure on margins and implementing cost reductions across all mills Increasing market share in ch
Slide 4: Key figures
Key figures First quarter 2025 Deliveries volume Total operating income EBITDA Pre-tax profit Thousand tonnes NOKm NOKm (and margin) NOKm group covenant of min. NOK 400m LTM1 350 3 500 700 600 3 101 612 442 41 300 41 42 3 000 600 48 2 746 400 2 666 341 38 45 2 511 52 49 250 45 2 500 2 250 500 464 46
Slide 5: Financial position
Financial position First quarter 2025 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 covenant of min. NOK 100m unrestricted no group maintenan
Slide 6: Segment financials
Segment financials Publication paper Lower deliveries due to weather related unplanned shuts at Skogn, production at normal levels into Q2 2025 First quarter 2025 Slightly higher achieved prices due to mix effects and mitigation of cost pressures from energy and fibre NOK million Q1'24 Q2'24 Q3'24 Q
Slide 7: Transformation through strategic projects
Transformation through strategic projects Strategic projects near completion and embarking on next step of growth journey Projects at Norske Skog Bruck completed Projects at Norske Skog Golbey to be completed end of April Containerboard production Waste-to-energy boiler Containerboard produc
Slide 8: Publication paper market balance
Publication paper market balance Newsprint utilisation rates at sustainable levels Newsprint market balance Western Europe Uncoated mechanical market balance Western Europe Coated mechanical market balance Western Europe Thousand tonnes and change in demand (and utilisation rate) Thousand tonnes and
Slide 9: Publication paper cost curves
Publication paper cost curves Norske Skog newsprint machines competitively positioned Newsprint cash cost Western Europe Uncoated mechanical1 cash cost Western Europe Coated mechanical cash cost Western Europe EUR per tonne EUR per tonne EUR per tonne 800 800 800 700 700 700 600 600 600 500 500 500
Slide 10: Packaging paper market
Packaging paper market Norske Skog increasing market share despite excess capacity in the industry RCCM market balance Western Europe RCCM cash cost Western Europe Thousand tonnes and change in demand (and utilisation rate) EUR per tonne Bruck PM3, Norske Skog 30 000 600 25 000 500 20 000 400 15 000
Slide 11: Raw materials
Raw materials Continued high costs for raw materials impacting profitability Energy prices Germany Recycled paper prices Germany Spruce pulpwood prices Norway EUA price EUR per MWh EUR per tonne NOK per solid cubic metre EUR per allowance 160 350 700 100 90 140 300 600 80 120 250 500 70 100 60 200 4
Slide 12: Paper prices
Paper prices Prices track marginal producer cash cost, increases required for all grades 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 2020 2021 2022 2023 2024 2025 2020 2021
Slide 13: Reviewing future opportunities at Saugbrugs
Reviewing future opportunities at Saugbrugs Studies completed and under review BCTMP project Project study completed and under review Regulation process and environmental application progressing towards completion in a few months Expected net investment of NOK 1.5-2.0bn Paper machine 6 (PM6) restart
Slide 14: Outlook
Outlook Concluding remarks Uncertain and volatile operating environment with pressure on profitability 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 start production e
Slide 15: 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