Kvartalsrapport Q3 2023

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

______________________________________________________________________________________________  
Further information provided by:  
Michal Jarczyński , CEO, Arctic Paper S.A.  Katarzyna Wojtkowiak, CFO, Arctic Paper S.A.  
Phone +46 10 451 7005  Phone +48 61 626 2004  
E-mail: michal.jarczynski@arcticpaper.com  E-mail: katarzyna.wojtkowiak@arcticpaper.com  
 
 
 
PRESS RELEASE   
Kostrzyn nad Odra  / Gothenburg , November  7th, 2023 
Arctic Paper S.A. , Q3, 2023:  
Our focus on margins continues to be successful  
• Q3 consolidated sales revenue amounted  to PLN 854.8mn (EUR 1 186.5mn). 
• EBITDA in Q3 was PLN 124.5mn (EUR 1 27.2mn). 
• EBIT in Q3 was PLN 95.0mn (EUR 1 20.7mn) and net profit PLN 58.2mn (EUR 1 12.7mn). 
• Continued focus on margins: The consolidated EBITDA margin reached 14.6 percent . 
• Energy investment in Gryck sbo adds revenue streams and  enhance s competitiveness . 
• Net debt PLN -306.7mn (PLN -199.6mn), net debt/EBITDA at new record low of -0.59 ( -0.22). 
 
 
“Our focus on margins rather than volumes continued to be successful and is helping to 
strengthen the Group at a time of significant investment in line with our strategy .” 
Michal Jarczy ński, CEO (see letter from the CEO on page 2) 
Selected financial results – Arctic Paper Group and Arctic Paper (paper segment)  
PLN (million)  Q3 2023 Q3 2022 Change  Q1-Q3 
2023 
Q1-Q3 
2022 
Sales revenue, Arctic Paper Group  854.8 1 402.1 -547.3 2 723.3 3 809.2 
Sales revenue, Arctic Paper (paper 
segment)  
590.3 1 042.1 -451.8 1 879.3 2 810.3 
EBITDA, Arctic Paper Group  124.5 298.2 -173.7 379.0 834.0 
EBITDA Arctic Paper (paper segment)  94.6 205.7 -111.1 256.0 562.9 
EBIT, Arctic Paper Group  95.0 259.6 -164.5 290.0 733.7 
EBIT Arctic Paper (paper segment)  74.2 185.6 -111.4 195.0 503.4 
Net profit, Arctic Paper Group  58.2 281.5 -223.3 236.8 682.0 
Net profit, Arctic Paper (paper segment)  44.4 159.0 -114.5 203.6 449.4 
Net profit per share 2 PLN 0.74 PLN 3 .20 PLN -2.46 PLN 2.87 PLN 8.06 
Net debt  -306.7 -199.6 -107.1 -306.7 -199.6 
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 respectively. The complete quarterly report is available at www.arcticpapergroup.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  
 
 
 
“Arctic Paper continues to grow within sustainable energy solutions. 
During the quarter, a decision was made to invest SEK 28 5 million in 
Grycksbo . The investment will increase the mill's competitiveness 
and generate a new revenue stream .” 
Michal Jarczy ński, CEO of Arctic Paper S.A.  
 
 
The third quarter of 2023 appears weak compared to the corresponding quarter of 2022 – which was one of 
the strongest in the Group's history – but nevertheless delivered an EBITDA margin in line with our target. 
Our focus on margins rather than volumes con tinued to be successful.  Arctic Paper´s revenues decreased 
by 39 percent to PLN 854.8 million ( 1 402.1 million) . EBITDA reached  PLN 124.5 million ( 298.2 million)  
with a  corresponding  EBITDA margin of 14.6 percent.  A strong cash flow during the period strengthened 
the Group’s financial position as the net debt/EBITDA ratio reached a new record low of -0.59 ( -0.22).  Solid 
finances are a n advantage at a time of significant future investment in line with our strategy.  
 
For the paper segment, revenue decreased to PLN 590.3 million (1,042.1 million). During the first half of 
the year, demand weakened as customers reduced their stocks. During the third quarter, however, we have 
seen early signs of a recovery in demand. Capacit y utilization for the period was up to 66 percent. We have 
continued to focus on margins and delivered an EBITDA margin for the period of 16.0 percent. As the 
comparative quarter was exceptional, it is worth noting that the result for paper is historically  strong.  
We have obtained patent rights for an innovative barrier with antibacterial properties. The use of this 
specially developed formula ensures that Amber Care meets the ISO 20743 and ISO 18184 standards and 
the components of the mixture undergo decom position without environmental pollution and are 
biodegradable.  
 
The pulp segment – Rottneros – decreased  its revenue to SEK 693 million ( 806) with a n EBITDA of SEK 
79 million ( 233), mainly driven by falling prices. The period was characterised by shrinking inventories and 
rising deliveries and the balance of market pulp shifted in favour of sellers.  Investments are being made  in 
the expansion of CTMP capacity , in renewable energy and energy storage .  
 
The joint venture investment in a new production facility for molded  fiber trays in Kostrzyn is progressing 
with the aim of being  operational 2024 . The timetable is impacted by lengthy equipment delivery times.  
 
Arctic Paper continues to grow within sustainable energy solutions. During the  quarter, a decision was 
made to invest SEK 285 million in an upgrade of the biofuel boiler and steam turbine in Grycksbo . The 
investment will increase the mill's competitiveness and generate a new revenue stream as the mill will 
produce 50 ktons of wood p ellets per year at an estimated value of approximately SEK 100 million. The 
installation will also reduce energy costs by SEK 50 million. During the period, we also advanced our plan 
for the expansion of the 17 MW solar energy park in Kostrzyn.  
 
Two years have passed since Arctic Paper launched its new strategy with the aim of diversifying into 
renewable energy and sustainable packaging. The challenges we have faced since then show that the 
strategy provides value, and we are on track to implement it. After  strategy review, our focus in renewable 
energy will shift from wind turbines to solar parks. For packaging, we see more potential in fiber trays than 
in kraft paper. Our commitment to investing in higher margin, lower footprint and less volatile businesse s 
remains intact.  
 
Michal Jarczyński , CEO of Arctic Paper S.A.