Nordic Fibreboard AS Audited Annual Report 2024

The Supervisory Board of Nordic Fibreboard AS approved on28th of April 2025 the
audited annual report for the year 2024. The supervisory board decided to
present the annual report and profit allocation proposal as prepared by the
management for the approval of the general meeting of shareholders.

Overview of operating results

Revenue and operating results

Consolidated  net sales  for 2024 were  EUR 7.59 million,  which is  a decrease of
1.5% compared  to  2023 sales  of  EUR  7.71 million.  The  sales revenue from the
production  of  fibreboard  was  EUR  7.57 million in 2024 (2023: EUR 7.66 million).
Sales  revenue  in  2024 remained  at  the  same level compared to 2023. Changes
occurred  in market  shares, as  the 2023 sales  revenue included 17% sales to a
major  Danish customer,  with whom  cooperation ended  in June 2023. The loss of
this  volume  has  been  successfully  compensated  by the growth of orders from
industrial  customers and the addition of  new other customers in 2024. The main
markets - Finland, Sweden and the Baltics - have maintained a stable sales level
throughout  2024. Sales to Asian and African markets have shown growth in 2024.
The sales revenue in 2024 from real estate management was EUR 25 thousand (2023: EUR
47 thousand).

The  consolidated EBITDA of  Nordic Fibreboard AS  for 2024 was negative EUR 0.03
million   (2023:  EUR  positive  0.58 million).  EBITDA  margin  in  2024 was  0%
representing  a  decrease  of  8% compared  to  2023 (2023: 8%). The significant
decrease  in EBITDA  in the  Q4 2024 compared  to the  same period last year was
mainly  due  to  the  revaluations  of  investment properties in Pärnu Riverside
Development  OÜ and Nordic Fibreboard Ltd OÜ at the end of 2023, where the Group
received  a one-time income of EUR 404 thousand from the revaluation of investment
properties.  In the 2024, the  fair value of  real investment properties did not
change.  In addition, EBITDA  was negatively impacted  by the forced shutdown of
the  factory due  to force  majeure situation  in December. During the shutdown,
personnel  costs, factory  maintenance costs  and repair  costs continued  to be
covered,  which  had  a  negative  effect  on  EBITDA.  At  the end of November,
production  at the Nordic Fibreboard factory had to be temporarily suspended due
to  adverse weather  conditions, as  excessive loads  on the factory roof caused
structural  damage. To ensure the safety  of employees, production was suspended
and   repair   work   began,   the   factory  was  reopened  for  production  on
02.01.2025.The increase in input costs and the increase in marketing and product
development  costs also had  some impact. The  increase in marketing and product
development  costs has been a strategic  investment aimed at strengthening sales
activities and supporting sales revenue growth in future periods.

The consolidated net loss of Nordic Fibreboard AS for 2024 was EUR 0.79 million
(2023: net loss EUR 0.68 million).

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

+--------------------------------------------------------+----------+----------+
|EUR thousand                                              |31.12.2024|31.12.2023|
+--------------------------------------------------------+----------+----------+
|Cash and cash equivalents                               |        53|         7|
+--------------------------------------------------------+----------+----------+
|Receivables and prepayments (Note 5)                    |       571|       534|
+--------------------------------------------------------+----------+----------+
|Inventories (Note 6)                                    |       624|       728|
+--------------------------------------------------------+----------+----------+
|Total current assets                                    |     1,248|     1,269|
+--------------------------------------------------------+----------+----------+
|                                                        |          |          |
+--------------------------------------------------------+----------+----------+
|Investment property (Note 7)                            |     2,380|     2,269|
+--------------------------------------------------------+----------+----------+
|Financial assets at fair value through profit or loss   |          |          |
|(Note 9)                                                |       499|       491|
+--------------------------------------------------------+----------+----------+
|Property, plant, equipment and right-of use assets (Note|          |          |
|8)                                                      |     4,122|     4,475|
+--------------------------------------------------------+----------+----------+
|Intangible assets (Note 8)                              |         3|         1|
+--------------------------------------------------------+----------+----------+
|Total non-current assets                                |     7,004|     7,236|
+--------------------------------------------------------+----------+----------+
|                                                        |          |          |
+--------------------------------------------------------+----------+----------+
|TOTAL ASSETS                                            |     8,252|     8,505|
+--------------------------------------------------------+----------+----------+
|                                                        |          |          |
+--------------------------------------------------------+----------+----------+
|Borrowings (Note 10)                                    |     1,111|       556|
+--------------------------------------------------------+----------+----------+
|Payables and prepayments (Note 11)                      |       788|       756|
+--------------------------------------------------------+----------+----------+
|Short-term provisions (Note 12)                         |        21|        21|
+--------------------------------------------------------+----------+----------+
|Total current liabilities                               |     1,920|     1,333|
+--------------------------------------------------------+----------+----------+
|                                                        |          |          |
+--------------------------------------------------------+----------+----------+
|Long-term borrowings (Note 10)                          |     2,613|     2,659|
+--------------------------------------------------------+----------+----------+
|Long-term provisions (Note 12)                          |        94|       111|
+--------------------------------------------------------+----------+----------+
|Other long-term liabilities                             |         9|         0|
+--------------------------------------------------------+----------+----------+
|Total non-current liabilities                           |     2,716|     2,770|
+--------------------------------------------------------+----------+----------+
|Total liabilities                                       |     4,636|     4,103|
+--------------------------------------------------------+----------+----------+
|                                                        |          |          |
+--------------------------------------------------------+----------+----------+
|Share capital (at nominal value) (Note 13)              |       450|       450|
+--------------------------------------------------------+----------+----------+
|Statutory reserve capital                               |        45|        45|
+--------------------------------------------------------+----------+----------+
|Retained earnings                                       |     3,121|     3,907|
+--------------------------------------------------------+----------+----------+
|Total equity                                            |     3,616|     4,402|
+--------------------------------------------------------+----------+----------+
|                                                        |          |          |
+--------------------------------------------------------+----------+----------+
|TOTAL LIABILITIES AND EQUITY                            |     8,252|     8,505|
+--------------------------------------------------------+----------+----------+


CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

+--------------------------------------+---------+---------+
| EUR thousand                           |    2024 |    2023 |
+--------------------------------------+---------+---------+
| Revenue (Note 21)                    |   7,592 |   7,704 |
+--------------------------------------+---------+---------+
| Cost of goods sold (Note 15)         | (6,820) | (6,810) |
+--------------------------------------+---------+---------+
| Gross profit                         |     771 |     894 |
+--------------------------------------+---------+---------+
|                                      |         |         |
+--------------------------------------+---------+---------+
| Distribution costs (Note 16)         |   (935) |   (673) |
+--------------------------------------+---------+---------+
| Administrative expenses (Note 17)    |   (381) |   (514) |
+--------------------------------------+---------+---------+
| Other operating income (Note 19)     |       8 |     404 |
+--------------------------------------+---------+---------+
| Other operating expenses (Note 19)   |    (11) |   (427) |
+--------------------------------------+---------+---------+
| Operating loss                       |   (547) |   (316) |
+--------------------------------------+---------+---------+
|                                      |         |         |
+--------------------------------------+---------+---------+
| Finance income (Note 20)             |       8 |       0 |
+--------------------------------------+---------+---------+
| Finance costs (Note 20)              |   (247) |   (366) |
+--------------------------------------+---------+---------+
| LOSS BEFORE INCOME TAX               |   (786) |   (682) |
+--------------------------------------+---------+---------+
|                                      |         |         |
+--------------------------------------+---------+---------+
| NET LOSS FOR THE PERIOD              |   (786) |   (682) |
+--------------------------------------+---------+---------+
|                                      |         |         |
+--------------------------------------+---------+---------+
| Basic earnings per share (Note 14)   |  (0.17) |  (0.15) |
+--------------------------------------+---------+---------+
| Diluted earnings per share (Note 14) |  (0.17) |  (0.15) |
+--------------------------------------+---------+---------+

A copy of Nordic Fibreboard AS audited annual report for 2024 is attached to the
announcement and is also published on NASDAQ Tallinn and Nordic Fibreboard web
page.

The ESEF-compliant machine-readable annual report is generated only in Estonian
language.

Enel Äkke
Member of the Management Board
Phone: + 372 55 525550
E-mail: [email protected] (mailto:[email protected])
www.nordicfibreboard.com/investors (https://www.nordicfibreboard.com/investors)