Kvartalsrapport Q1 2023

===== SIDA 1 =====

____________________________________________________ __________________________________________  
Further information provided by:  
Micha ł Jarczyński , CEO, Arctic Paper S.A.  Göran Eklund, CFO, Arctic Paper S.A.  
Phone +46 10 451 7005  Phone  +46 10 451 7054  
E-mail: michal.jarczynski@arcticpaper.com  E-mail: goran.eklund@arcticpaper.com  
 
PRESS RELEASE   
Kostrzyn nad Odra  / Gothenburg , May 9th, 2023 
Arctic Paper S.A. , Q1 2023:  
Continued good results despite lower demand  
• Q1 consolidated sales revenue was PLN 1 032,2mn (EUR 1 219,1mn). 
• EBITDA Q1 was PLN 185,5mn (EUR 1 39,4mn). 
• EBIT Q1 was PLN 155,6mn (EUR 1 33,0mn) and net profit PLN 131,7mn (EUR 1 27,9mn). 
• Continued focus on margins over volumes to maintain profitability despite w eaker demand.  
• Strong balance sheet  with a net debt/EBITDA ratio of -0.27x (0.33x).  
• The establishment of a moulded tray factory in Kostrzyn is proceeding according to plan . 
 
“The market outlook is more uncertain than in the end of 2022  and we  
expect a more challenging year. ” 
Micha ł Jarczyński , CEO (see letter from the CEO on page 2)  
Selected financial results – Arctic Paper Group and Arctic Paper (paper segment)  
PLN ( million ) Q1 202 3 Q1 2022 Change  Q4 2022 
Sales revenue, Arctic Paper Group  1 032, 2 1 110,8  -78,5 1 085, 1 
Sales revenue, Arctic Paper (paper segment)  722,3  819,6  -97,3 769,6  
EBITDA, Arctic Paper Group  185,5 205,7  -20,2 140,0  
EBITDA, Arctic Paper (paper segment)  113,8  130,0  -16,2 122,3  
EBIT, Arctic Paper Group  155,6 176,1  -20,4 109,3  
EBIT, Arctic Paper (paper segment)  93,4 110,4  -17,0 101,8  
Net profit, Arctic Paper Group  131,7 146,4  -14,7 74,8 
Net profit, Arctic Paper (paper segment)  82,8 93,6 -10,8 70,3 
Net profit, PLN per share 2 1.56 1.74 -0.18 1,05 
Net debt  -258,4 150,8  -409,2 -276,2  
Arctic Paper Group consists of Arctic Paper S.A. (parent company), Arctic Paper mills (paper segment) and 
pulp producer Rottneros AB , in which Arctic Paper S.A. holds a 51 percent stake.  
 
1Arctic Paper S.A. reports in PLN. In the English press release, the amounts above were converted to EUR at the average 
rates  for th e quarter . The complete quarterly report is available at www.arcticpaper group .com 
2 Net profit per share: net profit for the paper segment plus 51% of the net profit for Rottneros divided by the number of shar es.

===== SIDA 2 =====

Arctic Paper Group is a European company and a leading producer of high -quality graphical fine paper, bio -based 
packaging solutions, high -quality wood pulp, and energy, increasingly of non -fossil origin. The company is present with 
its own sales offices in Europe. Arctic Pap er S.A. is listed on the Warsaw Stock Exchange and NASDAQ in Stockholm. 
The Group is the main owner of the listed Swedish pulp producer Rottneros AB.  
For more information visit, arcticpapergroup.com  
 
“We continue to focus on profitability instead of aiming for full 
capacity usage and we  have therefore adjust ed our ca pacity 
accordingly with some production stops during the period .” 
Micha ł Jarczyński , CEO of Arctic Paper S.A.  
 
 
In the first quarter of 2023, we encountered  a more hesitant market, with customer demand on a lower 
level than in 2022 . Quarterly numbers  were subsequently lower  but still strong er than in Q4, 2022 . Group 
revenue  amounted  to PLN 1, 032.2 million ( 1 110 .8) and EBITDA to PLN 185.5 million ( 205.7). The 
operating  margin was 15.1 percent ( 15.9). Our financial position is record strong  with a net debt / EBITDA 
ratio of -0.27 (0.33). The combination of pulp and paper, which has historically balanced each other 
through economic cycles, continue d to reinfo rce each other as both segments perform ed well. 
 
The demand for paper shows the same pattern as in the fourth quarter of 2022, with lower volumes sold  for 
all qualities and subsegments . We continue to successfully focus on profitability instead of aiming for full 
capacity usage and we have therefore adjust ed our capacity accordingly  with some production stops during 
the period. The paper sales revenue per ton is 30 percent up compared to Q1, 2022, while capacity 
utilization fell to 71 percent (99). Revenues decreased  to PLN 722.3 million ( 819.6) with an EBITDA of 
113.8 million ( 130.0) and an EBIT DA margin of 15.8 percent (15.9) . 
 
For t he pulp segment, Rottneros, net sales increased by 13 percent to 744 (660) MSEK. EBITDA remained 
stable at 178 MSEK (174) while  deliveries was 87 200 tons ( 100 000). Due to the increasing costs, falling 
pulp prices and a weaker USD, Rottneros gave 24 employees at Vallviks Mill notice  of redundancy  in April. 
The company has decided to invest 180 MSEK in an expansion of the capacity to produce CTMP pulp in 
Rottneros Mill  from 125  000 to 165 000 tons . 
 
For the packaging  segment , volume s were slightly lower during the first quarter  than i n the comparable 
quarter . We are still deliberately holding back the development as we manage production in terms of value 
per ton and graphical paper has shown better margins for several quarters. The joint venture  investment 
with Rottneros in new production facility  for moulded fiber trays in Kostrzyn is progressing a ccording to 
plan. Production capacity is expected to reach approximately  80 million units per year, and the company 
expects to achieve a turnover of around PLN 60 million at full capacity.  
 
We continue the expansion of our energy segment. New project s in Sweden include a solar park and a 
battery storage and it is part of a long -term strategy to reduce the group ’s exposure to the electricity 
market. The start -up is planned for 2024. We are also advancing our plan to build a solar park in Kostrzyn. 
Several other new energy and energy efficiency projects are in planning phases of various  states.  
 
The market outlook is more uncertain than in the end of 2022 and we expect a more challenging year . We 
continue to diversify our business in line with the 4P -strategy with new investments in packaging and 
power, while maintaining and strengthening our business position in paper and pulp. Our solid financ es 
give us the possibility to continue with our future-oriented plans . 
 
 
Micha ł Jarczyński , CEO of Arctic Paper S.A.  
 
Financial calendar 2023: Q2 2023: August 10 th, Q3 2022: November 7 th