Invitation to press and investor briefing at Norske Skog Saugbrugs 3. april


In connection with His Majesty The King of Norway's visit to our Saugbrugs mill, we cordially invite press and investors to a guided mill tour and briefing of our forward-looking green development projects.

Norske Skog Saugbrugs is one of the largest mill sites, and the most energy efficient, in the worldfor production of SC magazine paper. The annual production capacity is around 500 000 tons. The Saugbrugs mill's history dates back to 1575 when the first saw mills were established on the site. Today, Saugbrugs has three super-calendered paper machines and is currently developing new green businesses in synergy with the existing paper production.

As part of the bio-diversity expansion of the Norske Skog group, we will present our new bio-projects. Saugbrugs will officially open the new biogas and nano-pulp production facilities on 3 April with His Majesty The King of Norway present. We invite you to join us at Saugbrugs for a presentation of the mill and its future.

The briefing will be at Norske Skog Saugbrugs on 3 April at 10:00. Saugbrugs is located about two hours with train from Oslo airport, or about 90 minutes drive from Oslo. The program will be approximately as follows:

10:00 Welcome coffee and snacks 10:10 Welcome VP Communication Carsten Dybevig 10.15 Presentation of Saugbrugs and new projects by MD Kjell-Arve Kure 10:35 New potential growth projects by CEO Sven Ombudstvedt 11:00 Moving to opening ceremony area 12:00 Mill tour 13:00 End of program

Address: Tistedalsgata 9, 1772 Halden, Norway Date: Monday 3 April 2017 Time: 10:00 CET (No dial in)

We kindly ask attendants to confirm their participation in an e-mail to Corporate Communication:

Oslo, 20 February 2017

Norske Skog Communications and Public Affairs

Norske Skog media: Vice President Corporate Communication Carsten Dybevig Mob: +47 917 63 117

Norske Skog financial markets: Vice President Investor Relations Tom Rogn Mob: +47 948 55 659


Mandatory notification of trade


Member of the Board Paul R. Kristiansen has today bought 15 500 shares in Norske Skog at a price of NOK 2.52. New holding is 62 191 shares.

Oslo, 9 February 2017 Norske Skog Communications and Public Affairs


Best annual gross operating earnings since 2012


Norske Skog's gross operating earnings (GOE) was NOK 1 049 million in 2016. A high capacity utilisation and good operating performance throughout 2016 resulted in the best annual gross operating earnings since 2012. Net profit in 2016 was NOK 306 million, despite NOK 1.4 billion in impairment.

Gross operating earnings (EBITDA) in the fourth quarter 2016 was NOK 221 million, which was a decrease from NOK 251 million in the third quarter, mainly due to somewhat higher spot electricity prices in Norway, recovered paper cost and a weakened pound, partly by seasonally higher sales volumes and better average sales price for magazine paper at Boyer. Net loss in the fourth quarter was NOK 124 million compared with a profit of NOK 190 million in the third quarter 2015.

- Despite major focus on the refinancing of the group last year, our business units delivered strong operating results last year. In 2017, we will continue to make our units more competitive and robust through cost reductions and realizing new growth initiatives. The improved market balance should allow for increased sales prices going forward, especially after significant capacity closures in Europe and North America combined with a flattening of the demand curve, says Sven Ombudstvedt, CEO of Norske Skog.

Cash flow from operating activities before net financial items improved from NOK 115 million in Q3 2016 to NOK 232 million in Q4 2016. The cash balance at the end of the quarter was NOK 532 million. Net interest bearing debt increased by NOK 0.1 billion from the end of the third quarter, from NOK 6.2 billion to NOK 6.3 billion, as a result of a weaker Norwegian krone against the euro and the US dollar. The equity was NOK 184 million at the end of the fourth quarter compared to NOK 269 million at the end of the third quarter.

Key figures, fourth quarter of 2016 (NOK million) Q4 2016 Q3 2016 Q4 2015 2016 2015 Operating revenue 3 061 2 918 3 087 11 849 11 538 Gross operating earnings (EBITDA) 221 251 260 1 049 753 Gross operating margin (%) 7.2 8.6 8.4 8.9 6.5 Gross operating earnings after depreciation 71 95 66 367 -14 Restructuring expenses -20 -1 -32 -67 -53 Impairment - - - -1 238 - Other gains and losses -125 20 79 -127 -97 Operating earnings -73 114 114 -1 065 -164 Share of profit in associated companies -6 -3 -18 -211 -41 Financial items -364 84 -376 1 044 -801 Income taxes 318 -5 -549 538 -520 Profit/loss for the period -124 190 -828 306 -1 526 Cash flow from operations before net financial items 232 115 363 953 66 Net interest bearing debt 6 302 6 172 8 523 6 302 8 523

Market outlook The market balance for publication paper in Europe is expected to improve with announced capacity conversions and closures in the industry. This has resulted in a favourable pricing environment for newsprint with operating rates to remain well above 90% throughout 2017. Cost inflation from recovered paper and Norwegian energy prices, together with Brexit headwinds, will however dampen the positive price effect. The Asian export market for newsprint, constituting around a quarter of the Australasian business for the group, is encouraging with improved prices. Domestically in Australia and New Zealand the group has margin protection through long-term customer contracts, but the business is exposed to a secular decline in demand. Group sales volumes will be on level with last year in 2017. Fixed cost initiatives will target a group run rate of NOK 600 million per quarter by year-end. New businesses beyond publication paper will start to contribute meaningfully to gross operating earnings (GOE) this year, with the biogas facility at Saugbrugs in Norway coming on stream in the first quarter and the completion of the biogas facility at Golbey in France by year-end. The group is targeting 25% of GOE to be generated from new businesses by 2020, with additional initiatives beyond biogas including tissue paper and wood pellets. The diversification strategy needs funding to be achieved. Norske Skog is unable to participate in the consolidation of publication paper in Europe with its current leverage.

Markets and segments Total annual production capacity for the group is 2.7 million. In Europe, the group capacity is 2.0 million tonnes, while in Australasia the capacity is 0.7 million tonnes. Capacity utilization for the group in the fourth quarter was 92% compared with 93% in the third quarter.

Europe Operating revenue increased from the previous quarter with seasonally higher sales volumes. European publication paper prices remained stable outside the UK, where import inflation drove UK newsprint prices higher.

Variable costs increased per tonne due to higher spot electricity prices and recovered paper costs. Fixed costs were somewhat lower from the third quarter. Gross operating earnings decreased due to cost inflation and lower UK margins with a weaker pound.

Demand for newsprint decreased by 3% through November compared to the same period in 2015. Demand for SC magazine paper increased with 3%, while LWC dropped 7%. Capacity utilisation remained high at 91% in the period (92% in Q3 2016).

Australasia Operating revenue increased from the previous quarter despite lower sales volumes with higher average sales price for magazine paper at Boyer and CO2 compensation at Tasman. Publication paper prices in Australasia remained stable as long term contracts are an important constituent of the business.

Costs remained stable in the quarter. Gross operating earnings improved somewhat quarter-over-quarter with higher magazine sales price.

Demand for newsprint in Australasia decreased by 10% through November compared to the same period the year before. Demand for magazine paper was relatively stable. Capacity utilisation was close to full at 94% in the period (97% in Q3 2016).

Update on new growth opportunities Norske Skog is aiming to generate 20% of group GOE from new businesses by 2020, but is in need of financing to achieve that target. The shift will predominantly involve identified investments in new green industries.

Initiatives at Saugbrugs The NOK 150 million biogas project at Saugbrugs will ramp-up production in the first quarter of 2017. The biogas facility will be at full run-rate contribution to gross operating earnings from second quarter of 2017. Saugbrugs has, in addition, initiated growth projects related to the development of microfibrillated cellulose (MFC), fibreboard and biocarbon for the steel industry.

Initiatives at Golbey The Golbey biogas plant is under construction, and is expected to be completed during 2017. The project will be financed locally. The plant will be connected to the biological-chemical treatment plant and be dimensioned to absorb all organic waste from the paper production. At the same time, Golbey is implementing new projects, which will combine synergies from the existing mill and a nearby industrial cluster.

Initiatives at Skogn A biogas plant is under construction next to the Skogn mill in Norway. Norske Skog Skogn will be the supplier of biomass to this new biogas facility adjacent to the paper site.

Tissue project at Bruck At the Bruck mill in Austria, Norske Skog intends to close its oldest and least efficient paper machine (125 000 tonnes) towards the end of this year. The old newsprint machine from 1953 may, pending financing, be replaced by a new tissue machine. The 265 000 tonnes LWC machine will continue production.

Biochemicals at Boyer in Australia The Tasmania based newsprint and magazine facility Boyer will in the first quarter of 2017 start small- scale test production of new bio-based chemicals, applicable for the pharmaceutical industry.

Wood pellets in New Zealand Nature's Flames pellets production has reached an annual capacity of 40 000 tonnes. Norske Skog considers to expand the production of pellets, given the considerable competitive export advantage and the abundance of fibre available in New Zealand. Wood pellets are a renewable alternative to fossil fuels in the large economies of South-East Asia.

Discussion with investors As mentioned in the press release on February 1, Norske Skog has discussed with a selected group of debt and equity investors a comprehensive debt conversion transaction that, if realized, would have equitized all unsecured debt ; in addition, enlarged and extended the senior secured note (SSN). Significant efforts were made to construct a balanced proposal acceptable for all investors. Specific investor demands were however beyond the realms of the possible, and discussions were ended.

- Despite a comprehensive refinancing of the group last year, Norske Skog will still continue to consider alternatives to strengthen the financial position by simplifying the debt structure, reducing the debt and interest costs, says Sven Ombudstvedt, CEO of Norske Skog.

Presentation and quarterly material A recorded webcast of the CEO presentation, the quarterly financial statements and the presentation package will be available on If you want to receive future Norske Skog press releases, you will have to subscribe to the press release through the website You have two alternative routes to subscribe to our press releases:

1. Via Norske Skog official homepage: room.aspx 2. Via Oslo Stock Exchange directly:

Detailed instructions can be found at room/How-to-Subscribe-for-press-releases.aspx

To establish a subscription service for new users of NewsWeb requires creating a user name and password. Therefore, Norske Skog can unfortunately not establish continued subscription news service for previous users. You can still subscribe printed reports via: printed-report.aspx

Norske Skog Communications and Public Affairs

For further information:

Norske Skog media: Vice President Corporate Communication Carsten Dybevig Mob: +47 917 63 117 Twitter: @Norske_Skog Norske Skog financial markets: Vice President Investor Relations Tom Rogn Mob: +47 948 55 659


Norske Skog


Despite initiatives last year, which significantly reduced the group's net debt, we continue to consider alternatives to optimize further our capital structure and strengthen our financial position. In this regard, we have discussed various financing and recapitalization alternatives with a selected group of investors. In the discussions, which have now been terminated, we communicated that the fourth quarter 2016 GOE would be slightly weaker than the third quarter 2016 GOE reflecting input cost inflation and GBP depreciation despite fourth quarter revenues being above NOK 3 billion.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Norske Skog Communications and Public Affairs


Norske Skog sells surplus power asset in New Zealand


Norske Skog has entered into an unconditional agreement to sell the Topp1 power station at the Tasman mill site in New Zealand to NGATI Tuwharetoa Electricity Ltd, a local partner at the Tasman industrial site.

Topp1 generates around 21.5 MW geothermal energy annually. The net sales proceeds are close to Norske Skog's carrying value, which will reduce net debt and terminate the transaction financing with GSO and Cyrus. The transaction will thus have limited accounting effects. The transaction will be completed on or about 16 December 2016. - We are very pleased with this sales transaction. Through the sale of the Topp1 plant, we are reducing our long-term energy exposure for the Tasman mill in New Zealand. The electric power generated by Topp1 has been surplus to our requirements following the closure of a newsprint machine at Tasman in 2013. Sale of non- core assets will still be a source for growth investments. In 2020, we are targeting 25% of our gross operating earnings to be generated from non-publication paper activities, says Sven Ombudstvedt, President and CEO of Norske Skog.

Financing update Norske Skog has also agreed to extend, from 30 November 2016 to 30 March 2017, the EUR 10 million short-term facility with funds managed by GSO Capital Partners and Cyrus Capital Partners. The facility is issued by Norske Skog AS and is guaranteed by Norske Skogindustrier ASA, Norske Skog Saugbrugs AS and Norske Skog Skogn AS.

Norske Skog Communications and Public Affairs

For further information:

Norske Skog media: Vice President Corporate Communication Carsten Dybevig Mob: +47 917 63 117 Twitter: @Norske_Skog Norske Skog financial markets: Vice President Investor Relations Tom Rogn Mob: +47 948 55 659


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Norske Skogindustrier ASA
PB 294 Skøyen
0213 Oslo

Phone: +47 22 51 20 20
Main fax: +47 22 51 20 21
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Norske Skogindustrier ASA
Karenslyst allé 49
0278 Oslo

Norske Skogindustrier ASA, PB 294 Skøyen, 0213 Oslo, Norway

Phone: +47 22 51 20 20 - Main fax: +47 22 51 20 21