Arctic Paper S.a. · GPW:ATC
Arctic Paper — Q2 2025 Earnings Presentation
32 slides from Arctic Paper's earnings presentation, Aug 13, 2025
Slide 1: Financial results Q2 2025
Financial results Q2 2025
Slide 2: Disclaimer
DISCLAIMER Please read the information below carefully This presentation (the ‘Presentation’) the regulated market, in particular the appearance of unexpected facts or is no certainty that the estimates, was prepared by Arctic Paper SA (the regulated market operated by the W arsaw circumstances whic
Slide 3: Agenda
Agenda 1 Paper 4 Energy 2 Pulp 5 Financial performance 3 Packaging 6 Focus 3 Q2 2025 www.arcticpaper.com
Slide 4: Summary H1 2025
SUMMARY H1 2025 Arctic Paper Group H1 2025 vs. H1 2024 Net sales EBITDA Net debt/EBITDA* (PLN mn) (PLN mn) 1 656.2 1 804.6 22.9 182.4 1.18x - 0.30x (H1 2025) (H1 2024) (H1 2025) (H1 2024) (EOP H1 2025) (EOP H1 2024) • last 12 months 4 H1 2025 www.arcticpaper.com
Slide 5: Summary Q2 2025
SUMMARY Q2 2025 Arctic Paper Group Q2 2025 vs. Q2 2024 Net sales EBITDA Net debt/EBITDA* (PLN mn) (PLN mn) 833.5 839.2 0.01 70.4 1.18x - 0.30x (Q2 2025) (Q2 2024) (Q2 2025) (Q2 2024) (EOP H1 2025) (EOP H1 2024) • last 12 months 5 Q2 2025 www.arcticpaper.com
Slide 6: H1 Summary
H1 SUMMARY • Low demand for pulp & paper products • The pulp segment affected by unfavourable SEK/USD exchange rates, high raw material costs • Lower market price for pulp & paper • Market & supply chains affected by global uncertainty & tarrif turbulences • Q2 net results affected by write-off on R
Slide 7: Pulp
PULP 7 Q2 2025 www.arcticpaper.com
Slide 8: Market data: European pulp prices
PULP PIX INDEXES EUROPE (USD PER TONNE) MARKET DATA Pulp – European pulp prices 1 612 1 567 1 548 1 551 1 498 1 483 1 430 1 429 1 370 1 397 1 240 1 244 1 440 1 380 1 380 AVERAGE PRICE Q2 2025 COMPARED TO Q2 2024 1 308 1 280 1 147 1 220 1 261 1 160 1 117 NBSK (long fiber): 5% higher 1 001 BHKP (short
Slide 9: Currencies development
CURRIENCIES DEVELOPMENT USD/SEK, EUR/SEK USD/SEK – development EUR/SEK – development 11,25 11,00 11,50 10,75 10,50 11,25 10,25 10,00 11,00 9,75 9,50 9,25 10,75 USD/SEK EUR/SEK 9 Q2 2025 www.arcticpaper.com
Slide 10: Operating data: pulp production & deliveries
PULP PRODUCTION (1,000 TONNE) OPERATING DATA Pulp production & deliveries 96 93 87 90 89 91 91 90 91 90 84 86 80 75 Q2 2025 total production: 90k tons 5% HIGHER THAN IN Q1 2025 1% LOWER THAN IN Q2 2024 PULP DELIVERIES (1,000 TONNE) 102 Q2 2025 total deliveries: 91k tons 96 90 91 91 87 87 85 89 89 83
Slide 11: Operating data: revenue and prices
PULP SALES REVENUE (SEK mn) OPERATING DATA Revenue and prices 730 726 681 711 711 726 637 626 Total revenue Q2 2025 (SEK 726mn) INCREASED BY 11% COMPARED TO Q1 2025 PULP SALES REVENUE PER TONNE (SEK) Average price in Q2 2025 (SEK 8.0k per tonne) 8 439 8 215 8 025 8 599 7 538 7 969 INCREASED BY 1% CO
Slide 12: Pulp – replacement material for plastic
PULP – REPLACEMENT MATERIAL FOR PLASTIC Pulp Sales (Rottneros) by application 2024 Other Printing and writing papers 3% 1% Fiber cement 3% Board Tissue and packaging paper 23% 11% Special applications 14% Filters 23% Electrotechnical applications 22% 12 Q2 2025 www.arcticpaper.com
Slide 13: Paper
PAPER 13 Q2 2025 www.arcticpaper.com
Slide 14: Market data: fine paper prices
GRAPHIC FINE PAPER PRICES – GERMAN MARKET MARKET DATA Fine paper average market prices 1400 1300 1200 JUN 2025 COMPARED TO MAR 2025 1100 UWF average price change -0,7% 1000 CWF average price change -0,9% 900 800 700 JUN 2025 COMPARED TO JUN 2024 600 UWF average price change -3,9% CWF average price c
Slide 15: Operating data: capacity use and sales volume
PRODUCTION CAPACITY FOR ARCTIC PAPER MILLS OPERATING DATA 85% 86% 71% 74% 73% 66% 70% 66%70% 69% 55% Average Q2 2025 use of production capacity: 73% 1% LOWER THAN Q1 2025 Q2 2025 total sales volume: 119k tons 4,2% LOWER THAN IN Q1 2025 PAPER SALES VOLUME 168 165 144 125 117 113 114 112 116 114 119 1
Slide 16: Operating data: paper sales revenue
PAPER SALES REVENUE (PLN mn) OPERATING DATA 949 770 567 581 574 576 574 552 552 Total revenue Q2 2025 (PLN 552mn) DEREASED BY 4,7% COMPARED TO Q1 2025 Average price Q2 2025 (PLN 4.62k) PAPER SALES REVENUE PER TONNE (PLN k)* DECREASED BY 0,6% COMPARED TO AVERAGE IN Q1 2025 6,57 5,74 5,85 5,14 5,04 4,
Slide 17: Products
PRODUCTS ADVANCED OFFSET MOST COMPLETE MATT BIGGEST UNCOATED PRODUCTION COATED PAPER ASSORTMENT DESIGN BRAND IN HEART OF EUROPE • Top 3 brands in revenue share • No 1 in European High Quality Bookpaper Sales • No 1 in European Design Paper Sales 17 Q2 2025 www.arcticpaper.com
Slide 18: Products: geographical split of sales
PRODUCTS Geographical split of sales Outside Europe 2% Germany Poland UK & IE Austria & CE France Baltics Rest of Europe 21% 17% 12% 10% 9% 6% 9% The Nordics Benelux 10% 4% 18 Q1 Q2 2023 2025 www.arcticpaper.com www.arcticpaper.com
Slide 19: Client structure
CLIENT STRUCTURE Market segments/products portfolio/target grups BUYING CUSTOMERS Printing Houses Clients who purchase the Group’s paper products directly. NON-BUYING CUSTOMERS Brand Owners Merchants Predominantly indirect customers, who use our Direct customers who purchase, stock and distribute pr
Slide 20: Packaging
PACKAGING 20 Q2 2025 www.arcticpaper.com
Slide 21: Packaging paper sales development
PACKAGING PAPER SALES DEVELOPMENT (t) DEVELOPMENT 20 000 STABLE SALES OF PACKAGING PAPERS 16 000 Munken Kraft Uncoated packaging paper 12 000 G-Flexmatt 8 000 Coated packaging paper 4 000 The moulded fibre tray production in Kostrzyn is now operational after a period of 0 trimming 2018 2019 2020 202
Slide 22: Power
POWER 22 Q2 2025 www.arcticpaper.com
Slide 23: PV 9 MW Kostrzyn – January 2025
PV 9 MW KOSTRZYN – January 2025 23 Q2 2025 www.arcticpaper.com
Slide 24: PV 9 MW Kostrzyn – completed June 2025
PV 9 MW KOSTRZYN – completed June 2025 24 Q2 2025 www.arcticpaper.com
Slide 25: PV Kostrzyn – energy generation 2022–H1 2025
PV KOSTRZYN – Energy generation 2022- H1 2025 (MWh) further reducing energy costs for the mill and increasing the share of renewable energy 12 000 10 000 8 000 6 000 4 000 2 000 - 2022 2023 2024 6 months 2025 25 Q2 2025 www.arcticpaper.com
Slide 26: Energy segment – ongoing projects
ENERGY SEGMENT - ONGOING PROJECTS • PV installation 9,6 MW PV (Kostrzyn) completed in June 2025 • Modernisation of biomass boiler (Grycksbo) according to the plan – start up November 2025 - to reduce energy cost for paper production process • Wood pellet production line with capacity 50 kt/y (Grycks
Slide 27: Financial performance
FINANCIAL PERFORMANCE 27 Q2 2025 www.arcticpaper.com
Slide 28: EBITDA evolution 2018–2025 (PLN mn)
EBITDA EVOLUTION 2018 – 2025 (PLN mn) 1 000 900 Q2 2025 EBITDA PLN 0.01mn 800 PLN 23mn LOWER THAN Q1 2025 700 PLN 70mn LOWER THAN Q2 2024 600 500 400 300 200 100 0 2018 2019 2020 2021 2022 2023 2024 2025* Paper Segment Pulp Segment * rolling 12 months 28 Q2 2025 www.arcticpaper.com
Slide 29: Net debt/EBITDA 2021–2025
NET DEBT/EBITDA 2021 – 2025 Strong financial position 1,18 0,69 0,57 0,66 0,36 0,33 0,00 -0,02 -0,08 -0,22 -0,19 -0,28 -0,27 -0,30 -0,59 -0,73 -0,77 * rolling 12 months 29 Q2 2025 www.arcticpaper.com
Slide 30: Capex 2014–2026
CAPEX 2014 - 2026 Capex by segment( kPLN) 450 000 400 000 350 000 300 000 250 000 200 000 150 000 100 000 50 000 - 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025FC 2026FC Paper Pulp Power Packaging 30 Q2 2025 www.arcticpaper.com
Slide 31: Focus
FOCUS • We have developed and are implementing a cost reduction and efficiency improvement program across the pulp, paper and energy segments • Effciency improvement plan will generate annual savings of PLN 45–50 million starting in 2026 • Working capital optimization will improve cash flow by PLN 3
Slide 32: 4P For Future Arctic
4P For Future Arctic Paper Packaging Pulp Power 32 Q2 2025 www.arcticpaper.com