Interim report
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ARCTIC PAPER CAPITAL GROUP Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 2 Table of contents Introduction 3 Information on the report ................................................................ 3 Definitions and abbreviations .......................................................... 3 Forward looking statements ............................................................ 5 Forward looking statements relating to risk factors ......................... 5 Description of the business of the Arctic Paper Group 7 General information ........................................................................ 7 Capital Group structure ................................................................... 7 Changes in the capital structure of the Arctic Paper Group ............. 7 Shareholding structure.................................................................... 8 Summary of the consolidated financial results 9 Selected items of the consolidated statement of profit or loss ......... 9 Selected items of the consolidated statement of financial position 11 Selected items of the consolidated statement of cash flows .......... 13 Summary of separate financial results 14 Selected items of the separate statement of profit or loss ............. 14 Selected items of the separate statement of financial position ...... 15 Selected items of the separate statement of cash flows ................ 16 Factors influencing the development of the Arctic Paper Group 17 Information on market trends ........................................................ 17 Factors influencing the financial results in the perspective of the next quarter .................................................................................. 18 Risk factors................................................................................... 18 Risk factors related to the environment in which the Group operates ..................................................................................... 18 Risk factors relating to the business of the Group ......................... 20 Key factors affecting the performance results ............................... 22 Unusual events and factors. Impact of changes in Arctic Paper Group’s structure on the financial result ........................................ 23 Supplementary information 23 The Management Board position on the possibility to achieve the projected financial results published earlier................................... 23 Composition of the supervisory and management bodies at Arctic Paper S.A. .................................................................................... 23 Changes in holdings of the Issuer’s shares or rights to shares by persons managing and supervising Arctic Paper S.A. ................... 24 Information on sureties and guarantees ........................................ 24 Information on court and arbitration proceedings and proceedings pending before public administrative authorities ........................... 25 Information on transactions with related parties executed on non- market terms and conditions ......................................................... 25 Information on remuneration of the entity authorised to audit the financial statements ...................................................................... 25 Statements of the Management Board 26 Accuracy and reliability of the presented reports ........................... 26 Interim condensed consolidated financial statements 28 Interim condensed consolidated statement of profit or loss ........... 28 Interim condensed consolidated statement of comprehensive income ..................................................................................... 29 Interim condensed consolidated statement of financial position – assets ..................................................................................... 30 Interim condensed consolidated statement of financial position – equity and liabilities ...................................................................... 31 Interim condensed consolidated statement of cash flows .............. 32 Interim condensed consolidated statement of changes in equity ... 33 Additional explanatory notes 34 1. General information ....................................................... 34 2. Composition of the Group ............................................. 35 3. Management and supervisory bodies ............................ 37 4. Approval of the financial statements .............................. 37 5. Basis of preparation of the interim condensed consolidated financial statements ................................................. 37 6. Significant accounting principles (policies) .................... 38 7. Seasonality ................................................................... 41 8. Information on business segments ................................ 41 9. Income and costs .......................................................... 46 10. Cash and cash equivalents ........................................... 47 11. Dividend paid and proposed .......................................... 47 12. Earnings/(loss) per share .............................................. 47 13. Property plant and equipment, intangible assets, goodwill and impairment ............................................................... 48 14. Other financial assets .................................................... 50 15. Inventories .................................................................... 50 16. Trade and other receivables .......................................... 50 17. Other non-financial assets ............................................. 51 18. Interest-bearing loans ................................................... 51 19. Trade and other payables ............................................. 52 20. Employee liabilities ........................................................ 53 21. Deferred tax liability ....................................................... 53 22. Share capital ................................................................. 54 23. Financial instruments .................................................... 54 24. Other financial liabilities ................................................. 55 25. Contingent liabilities and contingent assets ................... 55 26. Legal claims .................................................................. 55 27. Tax settlements ............................................................. 55 28. Future contractual investment commitments ................. 56 29. Transactions with related parties ................................... 56 30. Material events after the reporting period ...................... 56 Interim condensed separate financial statements 58 Interim condensed separate statement of profit statement of profit and loss loss ................................................................................. 58 Interim condensed separate statement of comprehensive income 59 Interim condensed separate statement of financial condition ........ 60 Interim condensed separate statement of cash flows .................... 61 Interim condensed separate statement of changes in equity ......... 62 Additional explanatory notes 63 1. General information .................................................................. 63 2. Accounting Policies ....................................................... 65 3. Seasonality ................................................................... 67 4. Information on business segments ................................ 67 5. Income and costs .......................................................... 68 6. Investments in subsidiaries and joint ventures ............... 68 7. Impairment of assets in subsidiaries and joint ventures . 69 8. Cash and cash equivalents ........................................... 69 9. Dividend paid and proposed .......................................... 70 10. Dividend received.......................................................... 70 11. Trade and other receivables .......................................... 70 12. Property plant and equipment and intangible assets ..... 70 13. Other financial assets .................................................... 70 14. Interest-bearing loans, borrowings and bonds ............... 70 15. Income tax receivables.................................................. 71 16. Share capital and supplementary capital/reserve funds . 71 17. Financial instruments .................................................... 72 18. Contingent liabilities and contingent assets ................... 72 19. Transactions with related parties ................................... 72 20. Events after the end of the reporting period ................... 74
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 3 Introduction Information on the report This Consolidated Semi-Annual Report for 6 months ended on 30 June 2026 was prepared in accordance with the Regulation of the Minister of Finance of 29 March 2018 on current and periodic information provided by issuers of securities and on conditions under which information required by legal regulations of a third country may be recognised as equivalent (Journal of Laws of 2018, item 757) and a part of the interim condensed consolidated financial statements in accordance with International Accounting Standard No. 34. The Interim condensed consolidated Financial Statements do not comprise all information and disclosures required in the Annual Consolidated Financial Statements which are subject to mandatory audit and therefore they should be read in conjunction with the Consolidated Financial Statements of the Group for the year ended 31 December 2025. The data for the three months ended 30 June 2026 and 30 June 2025 and the three months ended 31 March 2026 and 31 March 2025 presented in the interim condensed consolidated and separate financial statements have not been audited by an auditor. Certain selected information contained in this report comes from the Arctic Paper Group management accounting system and statistics systems. This Consolidated Semi-Annual Report presents data in PLN, and all figures, unless otherwise indicated, are given in thousand PLN. Definitions and abbreviations Unless the context requires otherwise, the following definitions and abbreviations are used in the whole document: Arctic Paper, Company, Issuer, Parent Company, AP Arctic Paper Spółka Akcyjna with its registered office in Kostrzyn nad Odrą (Poland) Capital Group, Group, Arctic Paper Group, AP Group Capital Group comprised of Arctic Paper Spółka Akcyjna and its subsidiaries as well as joint ventures Paper Mills Arctic Paper Kostrzyn, Arctic Paper Munkedals, Arctic Paper Grycksbo Sales Offices Arctic Paper Papierhandels GmbH with its registered office in Vienna (Austria) Arctic Paper Benelux SA with its registered office in Oud-Haverlee (Belgium) Arctic Paper Danmark A/S with its registered office in Greve (Denmark) Arctic Paper France SA with its registered office in Paris (France) Arctic Paper Deutschland GmbH with its registered office in Hamburg (Germany) Arctic Paper Italia Srl with its registered office in Milan (Italy) Arctic Paper Baltic States SIA with its registered office in Riga (Latvia) Arctic Paper Norge AS with its registered office in Oslo (Norway) Arctic Paper Polska Sp. z o.o. with its registered office in Warsaw (Poland) Arctic Paper España SL with its registered office in Barcelona (Spain) Arctic Paper Finance AB with its registered office in Munkedal (Sweden) Arctic Paper Schweiz AG with its registered office in Derendingen (Switzerland) Arctic Paper Fiber Solutions with its registered office in Wilmington (USA) Arctic Paper UK Ltd with its registered office in London (UK) Rottneros Group, Rottneros AB Group Rottneros AB with its registered office in Söderhamn, Sweden; Rottneros Bruk AB with its registered office in Rottneros, Sweden; Utansjo Bruk AB with its registered office in Söderhamn, Sweden, Vallviks Bruk AB with its registered office in Vallvik, Sweden; Rottneros Packaging AB with its registered office in Sunne, Sweden; SIA Rottneros Baltic with its
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 4 registered office in Kuldiga, Latvia; Nykvist Skogs AB with its registered office in Gräsmark, Sweden Pulp Mills Rottneros Bruk AB with its registered office in Rottneros, Sweden; Vallviks Bruk AB with its registered office in Vallvik, Sweden Thomas Onstad The Issuer’s core shareholder, holding directly and indirectly over 50% of shares in Arctic Paper S.A.; a member of the Issuer’s Supervisory Board NBSK Northern Bleached Softwood Kraft BHKP Bleached Hardwood Kraft Pulp Definitions of selected financial concepts and indicators Sales profit margin Ratio of gross profit/(loss) on sales to sales revenue from continuing operations EBIT Profit on continuing operating activity (Earnings Before Interest and Taxes) EBIT profitability, operating profitability, operating profit margin Ratio of operating profit/(loss) to sales revenue from continuing operations EBITDA Operating profit from continuing operations plus depreciation and amortisation and impairment losses (Earnings Before Interest, Taxes, Depreciation and Amortisation) EBITDA profitability, EBITDA margin Ratio of operating profit before depreciation, amortisation and impairment losses on assets to revenue from continuing operations Gross profit margin Ratio of gross profit/(loss) to sales revenue from continuing operations Sales profitability ratio, net profit margin Ratio of net profit/(loss) to sales revenue Return on equity, ROE Ratio of net profit/(loss) to equity income Return on assets, ROA Ratio of net profit/(loss) to total assets EPS Earnings Per Share, ratio of net profit to the weighted average number of shares BVPS Book Value Per Share, Ratio of book value of equity to the number of shares Debt-to-equity ratio Ratio of total liabilities to equity Equity to non-current assets ratio Ratio of equity to non-current assets Interest-bearing debt-to-equity ratio Ratio of interest-bearing debt and other financial liabilities to equity Net debt-to-EBITDA ratio Ratio of interest-bearing debt minus cash to EBITDA from continuing operations EBITDA-to-interest coverage ratio Ratio of EBITDA to interest expense from continuing operations Current ratio Ratio of current assets to current liabilities Quick ratio Ratio of current assets minus inventory and short-term accruals and deferred income to current liabilities Cash solvency ratio Ratio of total cash and cash equivalents to current liabilities DSI Days Sales of Inventory, ratio of inventory to cost of sales multiplied by the number of days in the period DSO Days Sales Outstanding, ratio of trade receivables to sales income from continuing operations multiplied by the number of days in the period DPO Days Payable Outstanding, Ratio of trade payables to cost of sales from continuing operations multiplied by the number of days in the period Operating cycle DSI + DSO Cash conversion cycle Operating cycle – DPO
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 20265 Forward looking statements The information contained in this report which does not relate to historical facts relates to forward looking statements. Such statements may, in particular, concern the Group’s strategy, business development, market projections, planned investment outlays, and future revenue. Such statements may be identified by the use of expressions pertaining to the future such as, e.g., “believe”, “think”, “expect”, “may”, “will”, “should”, “is expected”, “is assumed”, and any negations and grammatical forms of these expressions or similar terms. The statements contained in this report concerning matters which are not historical facts should be treated only as projections subject to risk and uncertainty. Forward-looking statements are inevitably based on certain estimates and assumptions which, although our management finds them rational, are naturally subject to known and unknown risks and uncertainties and other factors that could cause the actual results to differ materially from the historical results or the projections. For this reason, we cannot assure that any of the events provided for in the forward-looking statements will occur or, if they occur, about their impact on the Group’s operating activity or financial situation. When evaluating the information presented in this report, one should not rely on such forward-looking statements, which are stated only as at the date they are expressed. Unless legal regulations contain detailed requirements in this respect, the Group shall not be obliged to update or verify those forward-looking statements in order to provide for new developments or circumstances. Furthermore, the Group is not obliged to verify or to confirm the analysts’ expectations or estimates, except for those required by law. Forward looking statements relating to risk factors In this report we described the risk factors that the Management Board of our Group considers specific to the sector we operate in; however, the list may not be exhaustive. Other factors may arise that have not been identified by us and that could have material and adverse impact on the business, financial condition, results on operations or prospects of the Arctic Paper Group. In such circumstances, the price of the shares of the Company listed at the Warsaw Stock Exchange or at NASDAQ in Stockholm may decrease, investors may lose their invested funds in whole or in part and the potential dividend disbursement by the Company may be limited. We ask you to perform a careful analysis of the information disclosed in ‘Risk factors’ of this report – the section contains a description of risk factors and uncertainties related to the business of the Arctic Paper Group. and separate financial data
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 6 Management Board’s Report on operations of the Arctic Paper Capital Group and of Arctic Paper S.A. to the Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 7 Description of the business of the Arctic Paper Group General information The Arctic Paper Group is a paper and pulp producer. We offer voluminous book paper and a wide range of products in this segment, as well as high-grade graphic paper. The Group produces numerous types of uncoated and coated wood-free paper as well as wood-containing uncoated paper for printing houses, paper distributors, book and magazine publishing houses and the advertising industry. In connection with acquisition of the Rottneros Group in December 2012, the Group’s assortment was expanded with the production of pulp. As at 30 June 2026, the Arctic Paper Group employs over 1,500 people in its Paper Mills, companies involved in sale of paper and in pulp producing companies, procurement office and a company producing food packaging. Our three Paper Mills are located in Poland and Sweden, and have total production capacity of over 630,000 tonnes of paper per year. Our two Pulp Mills located in Sweden have aggregated production capacities of over 400,000 tonnes of pulp annually. As at 30 June 2026, the Group had 14 Sales Offices ensuring access to all European markets, including Central and Eastern Europe and North America. Our consolidated sales revenue for H1 2026 amounted to PLN 1,565 million. Arctic Paper S.A. is a holding company set up in April 2008. The Parent Company is entered in the register of entrepreneurs of the National Court Register maintained by the District Court in Zielona Góra, 8th Commercial Division of the National Court Register, under KRS number 0000306944. The Parent Company holds statistical number REGON 080262255. The Company has a foreign branch in Göteborg, Sweden. The principal business of the Arctic Paper Group is production and sales of paper and pulp. Additional activities of the Group, partly subordinated to paper and pulp production, include power generation, heat generation and logistics services. The Arctic Paper Group’s product range includes uncoated and coated wood-free paper, uncoated wood-free paper, sulphate pulp and mechanical fibre pulp A detailed description of the Group’s business, production plants, business and products can be found in the consolidated annual report for 2025. Capital Group structure The Arctic Paper Capital Group comprises the parent company Arctic Paper S.A. and its subsidiaries. Since 23 October 2009, Arctic Paper S.A. has been listed on the primary market of the Warsaw Stock Exchange and since 20 December 2012 in the NASDAQ stock exchange in Stockholm. The Group operates through its Paper Mills and Pulp Mills and its subsidiary producing packaging as well as its sales Offices and Procurement Offices. Details on the organisation of the Arctic Paper S.A. Capital Group along with identification of the consolidated entities are specified in note 2 in the interim condensed consolidated financial statements, further below in this quarterly report. Changes in the capital structure of the Arctic Paper Group In H1 2026, there were no changes to the Arctic Paper Group’s capital structure.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 8 Shareholding structure The table below shows the shareholders holding directly or indirectly at least 5% of the total number of votes at the Company’s General Meeting. This position has changed since the publication date of the report for Q1 2026, 12 May 2026. as at 11.08.2026 Shareholder Number of shares Share in the share capital [%] Number of votes Share in the total number of votes [%] Thomas Onstad 47 298 548 68,26% 47 298 548 68,26% - indirectly via 44 474 890 64,19% 44 474 890 64,19% Nemus Holding AB 43 874 890 63,32% 43 874 890 63,32% other entity 600 000 0,87% 600 000 0,87% - directly 2 823 658 4,07% 2 823 658 4,07% Other 21 989 235 31,74% 21 989 235 31,74% Total 69 287 783 100,00% 69 287 783 100,00% Treasury shares - 0,00% - 0,00% Total 69 287 783 100,00% 69 287 783 100,00% as at 12.05.2026 Shareholder Number of shares Share in the share capital [%] Number of votes Share in the total number of votes [%] Thomas Onstad 47 298 548 68,26% 47 298 548 68,26% - indirectly via 41 974 890 60,58% 41 974 890 60,58% Nemus Holding AB 41 374 890 59,71% 41 374 890 59,71% other entity 600 000 0,87% 600 000 0,87% - directly 5 323 658 7,68% 5 623 658 7,68% Other 21 989 235 31,74% 21 989 235 31,74% Total 69 287 783 100,00% 69 287 783 100,00% Treasury shares - 0,00% - 0,00% Total 69 287 783 100,00% 69 287 783 100,00%
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 9 Summary of the consolidated financial results Selected items of the consolidated statement of profit or loss PLN ‘000 Q2 2026 Q1 2026 Q2 2025 H1 2026 H1 2025 Change (%) Q2 2026/ Q1 2026 Change (%) Q2 2026/ Q2 2025 Change (%) H1 2026/ H1 2025 Continuing operations Sales revenue 750 827 813 991 833 455 1 564 818 1 656 225 ( 7,8) ( 9,9) ( 5,5) of which: Sales of paper 514 016 573 394 551 507 1 087 409 1 130 290 ( 10,4) ( 6,8) ( 3,8) Sales of pulp 236 817 240 597 281 949 477 408 525 935 ( 1,6) ( 16,0) ( 9,2) Profit on sales 73 863 68 146 82 774 142 009 197 158 8,4 ( 10,8) ( 28,0) EBIT ( 29 694) ( 36 164) ( 88 497) ( 65 858) ( 98 321) ( 17,9) ( 66,4) ( 33,0) EBITDA 8 576 2 564 5 11 140 22 861 234,4 171 420 ( 51,3) Net profit/(loss) ( 36 882) ( 33 514) ( 75 025) ( 70 395) ( 98 845) 10,0 ( 50,8) ( 28,8) % of sales revenue ( 4,9) ( 4,1) ( 9,0) ( 4,5) ( 6,0) ( 0,8) p.p. 4,1 p.p. 1,5 p.p. Net profit/(loss) for the reporting period attributable to the shareholders of the Parent Company ( 34 415) ( 21 384) ( 45 423) ( 55 798) ( 58 846) 60,9 ( 24,2) ( 5,2) Sales volume (in thousand tonnes) Paper 117 136 119 254 244 ( 13,9) ( 1,7) 4,1 Pulp 84 89 92 173 174 ( 5,8) ( 8,6) ( 0,6) Comments of the President of the Management Board Michał Jarczyński on the results of H1 2026 As expected, market conditions remained largely unchanged in Q2 2026. Weak European growth and persistent geopolitical uncertainty continued to soften demand, while the conflict in the Middle East drove higher input and logistics costs. For Arctic Paper, this resulted in consolidated revenues decreasing to PLN 750,8 million (833,5). Thanks to improved profitability in the pulp segment, EBITDA increased to PLN 8,6 million (0,0) compared to the weak quarter of comparison, with an EBITDA margin of 1.1 percent (0.0). In response to the demanding market environment, the Group continues to execute its operational efficiency and cost optimisation initiatives. Capital expenditure has also been significantly reduced, with investments focused on projects that enhance long-term competitiveness and support the Group’s sustainability ambitions. A key example is the new wastewater treatment facility at the Munkedal mill, scheduled to be completed in 2026. Demand in the European printing industry remained subdued, and further capacity rationalisation will be required to restore a healthier market balance and support sustainable industry profitability. Rising pulp prices and elevated costs for oil-based raw materials continued to put pressure on production costs, while intense price competition limited the Group’s ability to fully offset these increases through higher selling prices, resulting in unsatisfactory profitability. Paper segment sales reached PLN 514,0 million (551,5) with an EBITDA of PLN -7,8 million (5,9). We have largely completed our efficiency and cost reduction programme, which is expected to generate savings of approximately PLN 6 million in 2026. Efforts to further enhance efficiency and reduce costs remain ongoing. During the quarter, the Group strengthened its presence in the strategically important North American market through the establishment of a sales office. Early market traction has been encouraging, and the ambition is for North America to account for 5-10 percent of paper sales within the next years. The Pulp segment reported improved profitability, supported by lower pulp wood prices and reduced fixed costs. Pulp turnover decreased to MSEK 612 million (726), while EBITDA improved to MSEK 31 million (-15). Despite improved performance, the global pulp market remains challenging, reflected in ongoing production curtailments and capacity reductions across the industry. Going forward, cost efficiency, high production availability, and cash flow generation continue to be highly prioritized. Our strategic investments in sustainable energy solutions continue to progress according to plan. The new electric boiler in Kostrzyn is on track for completion in 2027 and will reduce emissions while strengthening cost competitiveness. The commercial scale-up of the new wood pellet plant in Grycksbo is progressing well, with a targeted EBITDA contribution of SEK 20 million already in 2026. Packaging delivered stable volumes during the quarter. While the timing of a market recovery remains uncertain, Arctic Paper is well equipped to navigate the current cycle. Our strong financial position, disciplined execution and strategic investments provide a robust foundation for the future. We are confident that these actions will enhance our competitiveness, strengthen margins and position the Group to benefit when market conditions improve.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 10 Revenue The decrease in revenue from the sale of paper and pulp in H1 2026, compared with H1 2025, is primarily due to a fall in the selling prices of both paper and pulp. Paper sales volumes were 4.1% higher than in the corresponding half-year of the previous year, whilst pulp sales volumes were 0.6% lower. For the same reasons, there was a decrease in revenue from paper and pulp sales in Q2 2026 compared to Q2 2025. Profit on sales, EBIT, EBITDA, net profit The decrease in sales profit, EBIT, EBITDA and net profit for H1 2026 compared with H1 2025 is due to a fall in revenue from the sale of paper and pulp, resulting from a fall in selling prices. The analogous situation is in Q2 2026 compared to Q2 2025. Profitability analysis PLN ‘000 Q2 2026 Q1 2026 Q2 2025 H1 2026 H1 2025 Change (%) Q2 2026/ Q1 2026 Change (%) Q2 2026/ Q2 2025 Change (%) H1 2026/ H1 2025 Profit/(loss) on sales 73 863 68 146 82 774 142 009 197 158 8,4 ( 10,8) ( 28,0) % of sales revenue 9,84 8,37 9,93 9,08 11,90 1,5 p.p. ( 0,1) p.p. ( 2,8) p.p. EBITDA 8 576 2 564 5 11 140 22 861 234,4 171 420 ( 51,3) % of sales revenue 1,14 0,32 - 0,71 1,38 0,8 p.p. 1,1 p.p. ( 0,7) p.p. EBIT ( 29 694) ( 36 164) ( 88 497) ( 65 858) ( 98 321) ( 17,9) ( 66,4) ( 33,0) % of sales revenue ( 3,95) ( 4,44) ( 10,62) ( 4,21) ( 5,94) 0,5 p.p. 6,7 p.p. 1,7 p.p. Net profit/(loss) ( 36 882) ( 33 513) ( 75 025) ( 70 395) ( 98 845) 10,0 ( 50,8) ( 28,8) % of sales revenue ( 4,91) ( 4,12) ( 9,00) ( 4,50) ( 5,97) ( 0,8) p.p. 4,1 p.p. 1,5 p.p. Return on equity / ROE (%) ( 2,3) ( 2,0) ( 4,4) ( 4,3) ( 5,8) ( 0,3) p.p. 2,1 p.p. 1,5 p.p. Return on assets / ROA (%) ( 1,4) ( 1,2) ( 2,7) ( 2,7) ( 3,6) ( 0,1) p.p. 1,3 p.p. 0,9 p.p. The higher return on equity and return on assets are primarily due to a lower net loss, as well as lower equity and total assets in H1 2026 compared with the same period of the previous year.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 11 Selected items of the consolidated statement of financial position PLN thousand As at 30 June 2026 As at 31 December 2025 As at 30 June 2025 Change: 30 June 2026/ 31 December 2025 Change 30 June 2026/ 30 June 2025 Non-current assets 1 617 015 1 643 086 1 530 937 ( 26 071) 86 078 Inventories 432 606 443 529 494 278 ( 10 923) ( 61 672) Receivables 420 409 390 129 486 134 30 280 ( 65 725) Trade receivables 393 249 367 833 456 081 25 416 ( 62 832) Other current assets 58 834 48 019 36 365 10 815 22 469 Cash and cash equivalents 123 517 151 642 233 606 ( 28 125) ( 110 089) Total assets 2 652 381 2 676 405 2 781 318 ( 24 024) ( 128 937) Equity 1 639 040 1 697 441 1 696 167 ( 58 401) ( 57 127) Current liabilities 719 929 776 136 738 804 ( 56 207) ( 18 875) of which: trade and other payables 406 275 454 527 434 238 ( 48 252) ( 27 963) interest-bearing debt 185 829 205 795 181 601 ( 19 966) 4 227 other non-financial liabilities 127 825 115 814 122 965 12 011 4 860 Non-current liabilities 293 412 202 828 346 346 90 584 ( 52 934) of which: interest-bearing debt 180 876 92 561 216 189 88 315 ( 35 313) other non-financial liabilities 112 536 110 266 130 157 2 270 ( 17 621) Total equity and liabilities 2 652 381 2 676 405 2 781 317 ( 24 024) ( 128 937) Non-current assets The decrease in non-current assets at the end of June 2026 compared with the end of the previous year is mainly due to a fall in the value of property, plant and equipment, which is primarily attributable to their depreciation. Current assets The increase in current assets at the end of June 2026 compared with the end of the previous year is mainly due to an increase in trade receivables and other receivables, offset by a decrease in inventories and cash and cash equivalents. As at 30 June 2026, trade receivables were higher compared with 31 December 2025, primarily due to the seasonal nature of the Group’s operations. Trade receivables are typically lower at the year-end reporting date as a result of reduced sales activity during the holiday season and intensified collection efforts and receivables monitoring undertaken prior to year-end closing. Compared with 30 June 2025, trade receivables decreased, mainly as a consequence of lower sales generated in the period immediately preceding the reporting date, which resulted in a lower balance of outstanding receivables at the end of the reporting period. Equity The decrease in equity at the end of June 2026 compared to the end of the previous year is mainly due to the net loss achieved in 2026. Current liabilities The decrease in current liabilities at the end of June 2026 compared with the end of the previous year is mainly due to a fall in trade payables resulting from lower purchases of raw materials and the repayment of working capital loan instalments, as well as the reclassification of part of the Rottneros Group’s short-term loans to the long-term category. Non-current liabilities The increase in non-current liabilities at the end of June 2026 compared with the end of the previous year is mainly due to the reclassification of part of the Rottneros Group’s short-term loans to the long-term category.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 12 Debt analysis Q2 2026 Q1 2026 Q2 2025 Change: Q2 2026 / Q1 2026 Change: Q2 2026 / Q2 2025 Debt-to-equity ratio (%) 61,8 59,6 64,9 2,2 p.p. (3,1) p.p. Equity to non-current assets ratio (%) 101,4 101,9 109,7 (0,5) p.p. (8,3) p.p. Interest-bearing debt-to-equity ratio (%) 22,4 20,1 23,5 2,3 p.p. (1,1) p.p. Net debt to EBITDA ratio for the last 12 months (x) 8,4 x 11,3 x 1,2x - - EBITDA to interest expense ratio for the last 12 months (x) 1,9 x 1,5 x 13x - - The increase in the debt-to-equity ratio in Q2 2026 is due to a rise in liabilities and a fall in equity. The decrease in the ratio of equity to non-current assets in Q2 2026 is due to a decrease in the value of equity. Liquidity analysis Q2 2026 Q1 2026 Q2 2025 Change: Q2 2026-Q1 2025 Change: Q2 2026-Q2 2025 Current ratio 1,4 1,5 1,7 ( 0,1) ( 0,3) Quick ratio 0,8 0,8 1,0 ( 0,0) ( 0,2) Cash solvency ratio 0,2 0,2 0,3 0,0 ( 0,1) DSI (days) 57,5 50,1 59,3 7,4 ( 1,8) DSO (days) 47,1 47,3 49,2 (0,2) ( 2,1) DPO (days) 54,0 53,2 52,1 (0,8) 1,9 Operating cycle (days) 104,7 97,4 108,5 7,3 ( 3,8) Cash conversion cycle (days) 50,6 44,2 56,4 6,4 (5,8) The decline in the cash conversion cycle in Q2 2026 compared with Q2 2025 is primarily due to a reduction in the days taken to turn stock and receivables.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 13 Selected items of the consolidated statement of cash flows PLN ‘000 Q2 2026 Q1 2026 Q2 2025 H1 2026 H1 2025 Cash flows from operating activities 5 643 ( 46 683) 8 360 (41 040) ( 1 448) Cash flows from investing activities ( 23 568) ( 40 810) ( 83 577) ( 64 377) ( 157 517) Cash flows from financing activities 33 810 43 551 31 506 77 361 103 629 Total cash flows 15 884 ( 43 941) (43 712) ( 28 056) ( 55 333) Cash flows from operating activities Negative cash flows from operating activities in both H1 and Q1 2026 were primarily due to an increase in receivables and a decrease in payables at the end of those periods. Cash flows from investing activities The negative cash flows from investing activities in Q2 2026 is mainly the result of expenditure on the purchase of property plant and equipment. Cash flows from financing activities The positive cash flows from financing activities in both Q2 2026 and H1 2026 were primarily due to an increase in the Group’s debt.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 14 Summary of separate financial results Selected items of the separate statement of profit or loss PLN ‘000 Q2 2026 Q1 2026 Q2 2025 H1 2026 H1 2025 Change (%) Q2 2026/ Q1 2026 Change (%) Q2 2025/ Q2 2026 Change (%) H1 2026/ H1 2025 Sales revenue 27 057 5 568 45 790 32 625 52 913 385,94 (40,91) (38,34) Profit on sales 24 836 2 819 42 619 27 655 46 817 781,02 (41,73) (40,93) EBIT 20 331 (2 376) 36 741 17 955 35 754 (955,68) (44,66) (49,78) EBITDA 20 432 (2 274) 36 852 18 164 35 973 (998,54) (44,56) (49,51) Gross profit/(loss) 18 450 (5 422) 34 294 13 028 35 711 (440,28) (46,20) (63,52) Net profit/(loss) 18 450 (5 422) 33 672 13 028 35 711 (440,28) (45,21) (63,52) Revenue and profit on sales The main reason for the increase in revenue and profit on sales in Q2 2026 compared with the first quarter of 2026 was the receipt of dividends from subsidiaries. However, the decline in revenue and profit on sales in H1 2026 compared with the same period of the previous year was due to lower dividend income received in 2026. EBIT and EBITDA The decline in EBIT and EBITDA in Q2 2026 compared with the same period of the previous year is mainly due to lower dividend income and lower sales revenue. Gross profit/(loss) and net profit/(loss) In H1 2026, the Company recorded a lower financial result than in the corresponding period of the previous year. This decline was primarily due to lower dividend income received from subsidiaries.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 15 Selected items of the separate statement of financial position PLN ‘000 30.06.2026 31.12.2025 30.06.2025 Change 30.06.2026/ 31.12.2025 Change 30.06.2026/ 30.06.2025 Non-current assets 1 224 341 1 190 275 1 129 671 34 066 94 670 Current assets 60 850 70 747 128 728 (9 897) (67 878) Total assets 1 285 191 1 261 022 1 258 399 24 169 26 793 Equity 992 370 979 269 999 588 13 101 (7 218) Current liabilities 240 809 247 698 227 779 (6 889) 13 030 Non-current liabilities 52 012 34 055 31 032 17 957 20 980 Total equity and liabilities 1 285 191 1 261 022 1 258 399 24 169 26 793 Non-current assets The increase in the value of non-current assets in H1 2026, compared with the same period in 2025, was primarily due to an increase in the value of financial assets. This change was mainly due to the granting of loans to Group companies and the making of capital contributions to subsidiaries. Current assets The decrease in current assets in H1 2026 compared with the same period in 2025 was mainly due to lower cash balances. In H1 2026, the Company increased its financial exposure to its subsidiaries by granting loans and making additional capital contributions. As a result, there was an increase in non-current assets, accompanied by a decrease in cash holdings. Equity The increase in equity compared with the balance at the end of 2025 was mainly due to the profit generated by the Company in H1 2026. Current liabilities The value of current liabilities in H1 2026 remained at a level similar to that at the end of 2025. The largest item in this category, namely ‘Interest-bearing loans, borrowings and debt securities’, did not undergo any significant changes and showed only a slight decrease compared with the end of 2025. Non-current liabilities The increase in non-current liabilities compared with the same period in 2025 was mainly due to the raising of bank finance in Q4 2025 and H1 2026.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 16 Selected items of the separate statement of cash flows PLN ‘000 Q2 2026 Q1 2026 H1 2026 H1 2025 Change (%) Q2 2026/ Q1 2026 Change (%) H1 2026/ H1 2025 Cash flows from operating activities (20 119) (55 072) (75 191) (97 316) (63,5) (22,7) Cash flows from investing activities (587) (151) (738) (2 400) 288,1 (69,2) Cash flows from financing activities 28 103 45 428 73 531 13 236 (38,1) 455,5 Total cash flows 7 397 (9 795) (2 398) (86 480) (175,5) (97,2) The statement of cash flows shows an increase in cash in H1 2026 of PLN 2,398 thousand, consisting of: − negative cash flows from operating activities of PLN -75,191 thousand, − negative cash flow from investing activities of PLN -738 thousand, − positive cash flows from financing activities of PLN 73,531 thousand. Cash flows from operating activities In H1 2026, net cash flow from operating activities amounted to PLN -75,191 thousand, compared with PLN -97,316 thousand in the corresponding period of 2025. The negative operating cash flows were mainly due to a change in cash pooling liabilities and a change in loans granted to subsidiaries. Cash flows from investing activities In H1 2026, net cash flow from investing activities amounted to PLN -738 thousand. The net outflows were primarily attributable to a capital contribution to the subsidiary Arctic Paper Fiber Solutions and the acquisition of an item of property, plant and equipment. Cash flows from financing activities In H1 2026, net cash flows from financing activities amounted to PLN 73,531 thousand, compared with PLN 13,236 thousand in the corresponding period of 2025. The positive cash flows were primarily attributable to the utilisation of overdraft facilities and the receipt of further tranches of an investment loan earmarked for the construction of a pellet factory at Arctic Paper Grycksbo.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 17 Factors influencing the development of the Arctic Paper Group Information on market trends In Q2 2026, the Arctic Paper Group reported a 13.9% decrease in order levels compared to Q1 2026, with a 1.3% decrease in order levels compared to the same period in 2025. In H1 2026, the Arctic Paper Group reported a 4.2% increase in order levels compared to the same period of the previous year. Source of data: Arctic Paper analysis Paper prices At the end of H1 2026, the prices of uncoated wood-free paper (UWF) in Europe decreased by 2.1% versus the prices at the end of 2025 while for coated wood-free paper (CWF) there was a decrease by 1.4%. At the end of June 2026, the average prices declared by producers for selected types of paper and markets: Germany, France, Spain, Italy, United Kingdom – for both uncoated wood-free paper (UWF) and coated wood-free paper (CWF) were higher than at the end of December 2025 by 3.7% and 2.5% respectively. Arctic Paper’s invoiced prices in EUR of comparable products in the uncoated wood-free (UWF) segment increased by an average of 9.8% from the end of December 2025 to the end of June 2026, while in the coated wood-free (CWF) segment they increased by 5.9%. At the end of H1 2026, the prices of uncoated wood-free paper (UWF) invoiced by Arctic Paper decreased by 3.8% versus the prices at the end of June 2025 while for coated wood-free paper (CWF) there was a decrease by 1.8%. Source: For market data – RISI, price changes for selected markets in Germany, France, Spain, Italy and the UK in local currencies for graphic papers similar to the product portfolio of the Arctic Paper Group. The prices are quoted without considering specific rebates for individual customers and they include neither any additions nor price reductions in relation to the publicly available price lists. The estimated prices for each month reflect orders placed in the month while the deliveries may take place in the future. Because of that, RISI price estimates for a particular month do not reflect the actual prices at which deliveries are performed but only express ordering prices. For Arctic Paper products, the average invoiced sales prices for all served markets in EUR. Pulp prices At the end of Q2 2026, the pulp prices reached the level of: NBSK – USD 1.651/tonne and BHKP – USD 1.408/tonne. The average NBSK price in Q2 2026 was higher by 4.6% compared to the equivalent period of the previous year while for BHKP the average price was higher by 14.9%. Compared to Q1 2026, the average pulp price in Q2 2023 was higher by 5.8% for NBSK and by 14.1% for BHKP. Pulp costs are characterised by high volatility. The prices of the raw materials had major impact on the Group’s profitability in the period. The average cost of pulp used in paper production calculated for the Arctic Paper Group expressed in PLN in Q2 2026 increased by 8.5% compared to Q1 2026. The average cost of pulp used in paper production in H1 2026 decreased by 8.6% compared to the same period last year. The share of pulp costs in overall selling costs after 6 months of the current year was 44% versus about 48% in the equivalent period in 2025. The Arctic Paper Group uses the pulp in the production process according to the following structure: BHKP 77%, NBSK 16% and other 7%. Source of data: www.foex.fi Arctic Paper analysis Currency exchange rates At the end of Q2 2026, the EUR/PLN rate amounted to 4.2963 and was by 1.3% higher than at the end of Q2 2025. The mean EUR/PLN exchange rate in H1 2026 amounted to 4.2432 and was by 0.3% higher than in the equivalent period of 2025. The EUR/SEK exchange rate amounted to 11.0872 at the end of Q2 2026 (decrease by 0.4% versus the end of Q2 2025). For that currency pair, the mean exchange rate in H1 2026 was by 2.7% lower than in the equivalent period of 2025. The somewhat appreciating SEK versus EUR has been adversely impacting the revenue invoiced in EUR in the factories in Sweden (AP Munkedals and AP Grycksbo). The USD/PLN exchange rate as at the end of Q2 2026 amounted to 3.7708. In H1 2026 the mean USD/PLN exchange rate was 3.6381 versus 3.8763 in the equivalent period of the previous year which was a decrease by 6.1%. In Q2 2026 the mean USD/PLN exchange rate was 3.6564 and was by 2.7% lower than in Q2 2025. The change has adversely affected the costs incurred in USD by AP Kostrzyn, in particular the costs of pulp. The USD/SEK exchange rate as at the end of Q2 2026 amounted to 9.7311. In H1 2026, the mean exchange rate amounted to 9.3637 compared to 9.6614 in the equivalent period of the previous year which was a depreciation of the exchange rate by 3.1%. In Q2 2026 the mean
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 18 USD/SEK exchange rate increased by 2.4% versus Q1 2026. The change in comparison to the equivalent quarter of 2025 unfavourably affected the costs incurred in USD by AP Munkedals and AP Grycksbo, in particular the costs of pulp. At the end of June 2025, the EUR/USD exchange rate amounted to 1.1394 compared to 1.1730 (-2.9%) at the end of June 2023. In Q2 2026, the EUR appreciated against the USD compared to Q2 2025 (+2.6%). The average exchange rate in H1 2026 was 1.1665 compared to 1.0933 in the same period of the previous year, representing an appreciation of 6.7%. A slight weakening of the euro against the Polish zloty in Q2 had a moderately adverse impact on the Group’s financial results, mainly due to a reduction in sales revenue generated in euros and expressed in Polish zlotys. The strengthening PLN against USD in turn had a positive impact on the Group’s financial performance, as it resulted in lower purchase costs for the main raw material at the Kostrzyn mill. The strengthening SEK against EUR adversely affected revenue generated in EUR at the APM and APG factories. Factors influencing the financial results in the perspective of the next quarter The material factors that have an impact on the financial results over the next quarter, include: − Shaping demand for high-quality paper in Europe at a time of a tense geopolitical situation, high energy prices, and an expected economic slowdown. Over the recent years there has been a major decrease of demand for fine paper in Europe (level of executed orders). Further negative developments in the market may adversely affect order levels to our Paper Mills. The intensification of remote working may have the additional effect of reducing demand for high-quality graphic papers and therefore negatively affect the Group’s financial performance. − Price changes of fine paper. In particular, the possibility to maintain the prices of Arctic Paper products in local currencies in view of the declining supply/demand in Europe and in the context exchange rates fluctuations, will have a material influence on the financial results. Paper prices are going to be of particular importance for the Paper Mill of Grycksbo which – in connection with the market changes – experiences the greatest adverse impact of the decrease of sales volumes, prices as well as of exchange rate fluctuations. − Price fluctuations of raw materials, including pulp for Paper Mills and electricity for all operational entities. In particular, financial results of Paper Mills may be negatively influenced by increasing pulp prices, particularly BHKP. On the other hand, dropping NBSK pulp prices may negatively affect the financial results of Pulp Mills. Fluctuations of electricity prices in Sweden may also have a material impact on the results generated by the Group. In the future, such market changes may translate into changes of sales profitability in Paper Mills of AP Munkedals and AP Grycksbo as well as in Pulp Mills of Rottneros and Vallvik. − Changes in currency rates, in particular, the appreciation of PLN and SEK in relation to EUR and GBP, the appreciation of PLN in relation to SEK, and the depreciation of PLN and SEK in relation to USD, may have an adverse effect on the financial results. Whereby our pulp mills will benefit from the appreciation of the USD against the SEK. Risk factors Major changes to risk factors There were no significant changes in risk factors in H1 2026. Risk factors related to the environment in which the Group operates The sequence in which the risk factors are presented below does not reflect the likelihood of occurrence, extent or materiality of the risks. The risk related to intensifying competition in the paper market in Europe Our Group operates in a very competitive market. The achievement of the strategic objectives assumed by the Group may be made difficult by operations of competitors, particularly integrated paper producers operating on a larger scale than our Group. Any more intensified competition resulting from a potential growth of production capacity of our competitors and thus an increased supply of paper to the market, may adversely affect the achievement of the planned revenue and thus the ability to achieve the underlying financial and operational assumptions. The Group has a high exposure to this risk Risks associated with a deterioration in the geopolitical situation in the world The market in which our Group operates is exposed to risks associated with the geopolitical situation in Europe and globally, particularly in the United States of America. This risk could result in delays in the supply of raw materials or disruptions to supply chains, which would force changes to production plans. This uncertainty leads to consumers being cautious about how they spend their money, which may contribute to a slowdown in economic growth.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 19 The Group is exposed to this risk to a moderate extent. Risks associated with the escalation of the geopolitical situation in Europe In terms of the Group’s operations on the European market, it is important that the Group and its competitors suspend commercial transactions with Russia, in particular the purchase of timber for the production of long-fibre pulp. As a result, there has been a very sharp rise in its prices from alternative Scandinavian suppliers. This is having a severe impact on producers of long-fibre pulp, including those belonging to the Rottneros Group. The Group is also exposed to the risk of a hybrid war between Russia and European countries, and, in the worst-case scenario, the risk of an armed conflict. The Group has a high exposure to this risk Risk of cyber attack The risk of a cyber attack is one of the most serious threats facing businesses today, regardless of industry or size. It is important to the Group because it affects key aspects of its operations: the data held by the Group, business continuity and production, finances, process security and reputation. A hacking attack could potentially result in production lines being stopped and orders being delayed, resulting in a loss of customer confidence. Other potential costs may include: the reconstruction of the Group’s IT infrastructure, the risk of administrative penalties (e.g. under the GDPR), or the risk of legal proceedings arising from claims by customers. The Group is exposed to this risk to a high degree Risk of changing legal regulations Our Group operates in a legal environment characterised with a high level of uncertainty. The regulations affecting our business have been frequently amended and often there are no consistent interpretations which generates a risk of violating the existing regulations and the resultant consequences even if such breach was unintentional. Additionally, amendments to regulations relating to environmental protection and other regulations may generate the need to incur material expenditures to ensure compliance, inter alia, more restrictive regulations or stricter implementation of the existing regulations concerning the protection of surface waters, soil waters, soil and atmospheric air. The Group is exposed to this risk to a moderate extent. Foreign currency risk Revenue, expenses and results of the Group are exposed to foreign currency risk, in particular relating to exchange rates of PLN and SEK to EUR, GBP and other currencies. Our Group exports a majority of its produced paper to European markets, generating a material part of its sales revenue in EUR, GBP, PLN and SEK. Sales revenue of pulp in the Pulp Mills are subject to USD fix risk. The purchase costs of materials for paper production, in particular pulp for paper mills are paid primarily in USD and EUR. Additionally, we hold loan liabilities mainly in PLN, EUR and SEK. PLN is the currency used in our financial statements and therefore our revenue, expenses and results generated by the subsidiaries domiciled abroad are subject to exchange rate fluctuations. Thus, currency exchange rate fluctuations may have a strong adverse effect on the results, financial conditions and prospects of the Group. The Group is exposed to this risk to a moderate extent. Interest rate risk The Group is exposed to interest rate risk in view of the existing interest-bearing debt. The risk results from fluctuations of such interest rates as WIBOR for debt in PLN, EURIBOR for debt in EUR and STIBOR for debt in SEK. Unfavourable changes of interest rates may adversely affect the results, financial condition and prospects of the Group. The Group is exposed to this risk to a limited extent. Risk related to increasing importance of alternative media Trends in advertising, electronic data transmission and storage and in the Internet have adverse impact on traditional printed media and thus on the products of the Group and its customers. Continuation of such changes may adversely affect the results, financial condition and prospects of the Group. The Group has a high exposure to this risk
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 20 Risk factors relating to the business of the Group The sequence in which the risk factors are presented below does not reflect the likelihood of occurrence, extent or materiality of the risks. Risk related to relatively low operational margins Historically, the operational results of the Group are characterised by relatively high volatility and low profit margins on operations. Reduced revenue resulting e.g. from changes to production capacity, output, pricing policies or increased operating expenses that primarily comprise costs of raw materials (mainly pulp for Paper Mills) and energy, may mean the Group’s losses in earning capacity. Material adverse changes to profitability may result in reduced prices of our stock and reduced capacity to generate working capital thus adversely affecting our business and deteriorating our prospects. The Group has a high exposure to this risk Risk of price changes to raw materials, energy and products We are exposed to the risk of price changes of raw materials and energy, primarily related to price fluctuations of pulp, gas and electricity. Paper Mills buy pulp under frame agreements or in one-off transactions and do not hedge against fluctuations of pulp prices. A part of pulp is supplied to our Paper Mills from the Pulp Mills of the Rottneros Group. The risk of changing prices of raw materials is related primarily to changing prices of paper and pulp in the markets to which we sell our products. A material growth of prices of one or more raw materials and energy may adversely affect the operating results and financial condition of the Group. The Group has a high exposure to this risk Risk of disruption to production processes Our Group holds three Paper Mills operating jointly seven production lines with total annual production capacity of over 630,000 tonnes of paper and two Pulp Mills with a total production capacity of 400,000 tonnes of pulp. Long-lasting disruption to the production process may result from a number of factors, including a breakdown, human error, unavailability of raw materials, natural catastrophes and other that are beyond our control. Each such disruption, even relatively short, may have material impact on our production and profitability and result in material costs for repairs, liabilities to buyers whose orders we are not able to satisfy and other expenses. The Group is exposed to this risk to a moderate extent. Risk related to our investments Investments by the Group aimed at expanding the production capacity of the Group require material capital outlays and a relatively long time to complete. As a result, the market conditions under which we operate may be materially changed in the period between our decision to incur investment outlays to expand production capacity and the completion time. Changes of market conditions may result in a volatile demand for our products which may be too low in the context of additional production capacities. Differences between demand and investments in new production capacities may result in failure to utilise the expanded production capacity to the full extent. This may have adverse effect on the operating results and financial condition of the Group. The Group is exposed to this risk to a moderate extent. Risk factors relating to the debt of the Group Our Group mainly has debt under a loan agreement with a consortium of banks (Pekao SA, Erste Bank S.A. and BNP Paribas SA) of 31 October 2025, loan debt with Danske Bank, Nordea Bank and under leasing agreements. Failure by the Group to comply with its obligations, including the agreed levels of financial ratios (covenants) resulting from the agreements, will result in default under those agreements. Events of default may in particular result in demand for repayment of our debt, banks taking control over important assets like Paper Mills or Pulp Mills and loss of other assets which serve as collateral, deterioration of creditworthiness and lost access to external funding which will be converted into lost liquidity and which in turn may materially adversely affect our business and development prospects and our stock prices. The Group is exposed to this risk to a moderate extent. Risk related to insurance limits In the context of deteriorating situation in paper industry and the results of the Arctic Paper Group, our suppliers, in particular suppliers of such raw materials as pulp, may have problems with acquiring insurance limits (sale on credit) and thus they may lose the possibility of offering deferred payment terms to the Arctic Paper Group. Such situation may result in deteriorated financial situation and loss of financial liquidity of operating units and as a result this may adversely affect the situation in the entire Group. The Group is exposed to this risk to a moderate extent.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 21 Risk of restricted supplies of natural gas Polskie Górnictwo Naftowe i Gazownictwo S.A (PGNiG) is the sole supplier of natural gas used by AP Kostrzyn to generate heat and electrical energy for paper production. (PGNiG). In this context, the business and costs of paper production at AP Kostrzyn is materially affected by availability and price of natural gas. Potential disruptions of supplies of natural gas to the Paper Mill in Kostrzyn nad Odrą may have adverse effect on production, results on operations and financial condition of the Group. The Group is exposed to this risk to a limited extent. Risk related to consolidation and liquidity of key customers Consolidation trends among our existing and potential customers may result in a more concentrated customer base covering a few large buyers. Such buyers may rely on their improved bargaining position in negotiating terms of paper purchases or decide to change the supplier and acquire products from our competitors. Additionally, in the context of the deteriorating condition in printing industry, such customers as paper distributors, printing houses or publishers may not be able to obtain insurance limits (sale on credit) or have problems with financial liquidity which may result in their bankruptcy and adversely affect our financial results. The above factors may have adverse impact on the operational results and financial condition of the Group. The Group is exposed to this risk to a moderate extent. Risk related to compliance with regulations on environmental protection and adverse impact of the production process on the environment The Group meets the requirements related to environmental protection; however, no certainty exists that it will always be able to comply with its obligations and that in the future it will avoid material expenses or that it will not incur material obligations related to the requirements or that it will be able to obtain all permits, approvals and other consents to carry on its business as planned. Similarly, considering that paper and pulp production is related to potential hazards relating to waste generated in Paper Mills and Pulp Mills and contamination with chemicals, no certainty exists that in the future the Group is not charged with liability for environmental pollution or that no event that may underlie the liability of the Group has not already occurred. Thus, the Group may be required to incur major expenses in connection with the need to remove contamination and land reclamation. The Group is exposed to this risk to a moderate extent. Risk related to CO2 emissions Our Paper Mills and Pulp Mills are provided with free carbon dioxide emission rights for each period. The emission rights are awarded within the EU Emission Trading Scheme. Should such free carbon dioxide emission rights be cancelled and replaced with a system of paid emission rights, our costs of energy generation will grow accordingly. Additionally, we may be forced to incur other unpredictable expenses in connection with the emission rights or changing legal regulations and the resultant requirements. Due to the above we may be forced to reduce the quantity of generated energy or to increase the production costs which may adversely affect our business, financial condition, operational results or development prospects. The Group is exposed to this risk to a moderate extent. Risk related to dividend distribution The Issuer is a holding company and therefore its capacity to pay dividend is subject to the level of potential disbursements from its subsidiaries involved in operational activity, and the level of cash balances. Certain subsidiaries of the Group involved in operational activity may be subject to certain restrictions concerning disbursements to the Issuer. No certainty exists that such restrictions will have no material impact on the business, results on operations and capacity of the Group to distribute dividend. In connection with the term and revolving loan agreements, and the agreement between creditors signed on 31 October 2025, the Company’s ability to pay dividends is subject to the Group meeting certain financial ratios in the period prior to payment (as that term is defined in the term and revolving credit facility agreement) and there being no event of default (as that term is defined in the term and revolving loan agreement). The Group is exposed to this risk to a moderate extent.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 22 Key factors affecting the performance results The Group’s operating activity has been and will continue to be historically influenced by the following key factors: — macroeconomic and other economic factors, — demand growth for products based on natural fibres; — reduced demand for certain paper types; — fluctuations of paper prices, — pulp price fluctuations for Paper Mills, timber for Pulp Mills and energy prices, — Foreign exchange rates fluctuation. Macroeconomic and other economic factors We believe that a number of macro-economic and other economic factors have a material impact on the demand for high-quality paper, and they may also influence the demand for the Group’s products and the Group’s operating results. Those factors include: — GDP growth; — net income – as a metric of income and affluence of the population; — production capacity – the surplus of supply in the high quality paper segment over demand and decreasing sales margins on paper, — paper consumption, — technology development. Demand growth for products based on natural fibres The trend observed in developed societies concerning a reduction of man’s adverse impact on the environment, in particular reduction of use of disposable, plastic packaging that may not be recycled, offers new opportunities for the development of the pulp & paper sector. In many companies, work has been under way to develop new methods of packaging and production of packaging with natural materials, including pulp, so that it can be recycled. Arctic Paper is also involved in such research. In the near future, the product segment is expected to increase its percentage share in the volumes and revenue of the Arctic Paper Group. Reduced demand for certain paper types Development of new technologies, in particular in the areas of information and communication, results in decreasing demand for certain paper types – in particular, this affects newsprint and to a lesser extent – graphic papers. However, despite the increasing popularity of e-books, the volume of book paper produced and sold by Arctic Paper has been stable in the recent years, less sensitive to changing market conditions. Nevertheless, in its strategy Arctic Paper has set a direction of activity so that within several years, the segment of non-graphic papers (that is technical or packaging paper) accounts for 1/5 of its consolidated revenue. Paper prices Paper prices undergo cyclic changes and fluctuations, they depend on global changes in demand and overall macroeconomic and other economic factors such as indicated above. Prices of paper are also influenced by a number of factors related to the supply, primarily changes in production capacities at the worldwide and European level. Costs of raw materials, energy and transportation The main elements of the Group’s operating expenses include raw materials, energy and transportation. The costs of raw materials include mainly the costs of pulp for Paper Mills, timber for Pulp Mills and chemical agents used for paper and pulp production. Our energy costs historically include mostly the costs of electricity, gas and rights to CO2 emissions. The costs of transportation include the costs of transportation services provided to the Group mainly by external entities. Taking into account the share of those costs in total operating expenses of the Group and the limited possibility of controlling these costs by the Group Companies, their fluctuations may have a major impact on the Group’s profitability. A part of pulp supplies to our Paper Mills is made from our own Pulp Mills. The remaining part of the pulp produced at the Pulp Mills is sold to external customers. Currency rate fluctuations The Group’s operating results are significantly influenced by currency rate fluctuations. In particular, the Group’s revenue and costs are expressed in different foreign currencies and are not matched, therefore, the appreciation of the currencies in which we incur costs towards the currencies in which we generate revenue, will have an adverse effect on the Group’s results. Our products are primarily sold to euro zone
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 23 countries, Scandinavia, Poland and the UK, thus our revenue are largely denominated in EUR, GBP, SEK and PLN while revenue from the pulp mills are primarily denominated in USD. The Group’s operating expenses are primarily expressed in USD (pulp costs for Paper Mills), EUR (costs related to pulp for Paper Mills, energy, transportation, chemicals), PLN (the majority of other costs incurred by the Paper Mill in Kostrzyn nad Odrą) and SEK (the majority of other costs incurred by the Munkedal and Grycksbo Paper Mills as well as the Rottneros and Vallvik Pulp Mills). Exchange rates also have an important impact on results reported in our financial statements because of changes in exchange rates of the currencies in which we generate revenue and incur costs, and the currency in which we report our financial results (PLN). Unusual events and factors. Impact of changes in Arctic Paper Group’s structure on the financial result Nasdaq Stockholm Disciplinary Committee Decision On 4 February 2026, the Management Board was informed of the decision of the Nasdaq Stockholm Disciplinary Committee to impose a disciplinary fine of SEK 780,000 (seven hundred and eighty thousand Swedish kronor) in connection with the improper disclosure of the Issuer’s current report. The decision was issued pursuant to the listing agreement entered into between the Issuer and Nasdaq Stockholm AB and constitutes a contractual sanction for a breach of the disclosure and reporting obligations applicable to issuers whose securities are listed on a market operated by Nasdaq Stockholm. Impact of the political and economic situation in the Middle East region on the Group’s activities The Issuer continuously analyses the impact of the political and economic situation in the Middle East region on the Group’s operations. The Group has no operations in the countries of the region and does not use logistics routes through conflict areas for the supply of raw materials or the distribution of products. The analysis conducted does not currently indicate that the conflict will have a direct material impact on the Group’s operations for the foreseeable future, including in particular the availability of key raw materials or the continuity of supply chains. At the same time, the Issuer indicates that the escalation of geopolitical tensions in the Middle East region may indirectly affect the macroeconomic situation and the operating conditions of the markets in which the Group operates. In particular, potential risks include: an increase in the volatility of energy commodity prices (including oil and gas), which may affect energy costs in Europe, disruption to global supply chains and increased transport and insurance costs, economic downturn and a decline in demand for the Group’s products as a result of increased economic uncertainty, exchange rate fluctuations. At the date of this report, the Issuer does not identify any significant negative impact of these factors on the Group’s performance, but the situation remains dynamic and is monitored on an ongoing basis. If the risks identified materialise, they may indirectly affect the Group’s operations, financial results and development prospects in the future. Supplementary information The Management Board position on the possibility to achieve the projected financial results published earlier The Management Board of Arctic Paper S.A. has not published the projected financial results for 2026. Composition of the supervisory and management bodies at Arctic Paper S.A. As at 30 June 2026, the Company’s Supervisory Board was composed of: — Per Lundeen – Chairman of the Supervisory Board appointed on 14 September 2016; — Roger Mattsson – Deputy Chairman of the Supervisory Board appointed on 16 September 2014; — Thomas Onstad – Member of the Supervisory Board appointed on 22 October 2008; — Zofia Dzik – Member of the Supervisory Board appointed on 22 June 2021; — Anna Jakubowski – Member of the Supervisory Board appointed on 22 June 2021. Until the date hereof, there were no changes to the composition of the Supervisory Board of the Parent Company. As at 30 June 2026, the Parent Company’s Management Board was composed of: — Michał Jarczyński – President of the Management Board appointed on 10 December 2018, with effect from 1 February 2019;
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 24 — Katarzyna Wojtkowiak – Member of the Management Board appointed on 29 May 2023; — Fabian Langenskiöld – Member of the Management Board appointed on 14 August 2023. Pursuant to a resolution adopted on 18 May 2026, and in connection with the expiry of the current term of office of the Management Board on 29 May 2026, the Supervisory Board reappointed the existing members of the Management Board for a new three-year term of office, with no changes to its composition. Until the date hereof, there were no changes to the composition of the Management Board of the Parent Company. Changes in holdings of the Issuer’s shares or rights to shares by persons managing and supervising Arctic Paper S.A. Managing and supervising persons Number of shares or rights to shares as at 11.08.2025 Number of shares or rights to shares as at 30.06.2026 Number of shares or rights to shares as at 12.05.2026 Change Management Board Michał Jarczyński 5 572 5 572 5 572 - Katarzyna Wojtkowiak - - - - Tom Fabian Langenskiöld 900 900 900 - Supervisory Board Per Lundeen 34 760 34 760 34 760 - Thomas Onstad 2 823 658 2 823 658 5 323 658 (2 500 000) Roger Mattsson - - - - Zofia Dzik - - - - Anna Jakubowski - - - - ***Figures in the table do not include shares held indirectly Apart from the change shown in the table above, the shareholdings of the Company’s management and supervisory personnel have remained unchanged since the publication of the last interim report, i.e. the report for Q1 2026 on 12 May 2026. Information on sureties and guarantees In connection with the term and revolving credit facility agreement signed on 31 October 2025, the Company signed agreements and declarations pursuant to which the above receivables and other claims were secured in favour of Bank BNP Paribas Bank Polska S.A. acting as Security Agent, i.e. 1. under Polish law – Collateral Documents establishing the following Collateral: ‒ financial and registered pledges on all shares or interests held by the Company and Arctic Paper Kostrzyn SA registered in Poland, with the exception of the Company’s shares; ‒ mortgages on all real properties located in Poland and owned by the Guarantor; ‒ registered pledges on all material rights and movable assets owned by the Guarantors, constituting an organised part of enterprise, located in Poland (with the exception of the assets listed in the Loan Agreement); ‒ assignment of (existing and future) insurance policies relating to the assets of the Company Arctic Paper Kostrzyn S.A. (with the exception of the insurance policies listed in the Loan Agreement); ‒ declarations by the Company and Arctic Paper Kostrzyn S.A. on voluntary submission to enforcement, in the form of a notary deed; ‒ financial pledges and registered pledges on the bank accounts of the Company and Arctic Paper Kostrzyn S.A. registered in Poland (the pledges relate to current and future bank accounts; in the event of an event of default, in the event that the pledged receivable or part thereof becomes due, the Company may not draw funds from the pledged receivable, nor may it instruct the bank maintaining the account to disburse the funds); ‒ powers of attorney to the Polish bank accounts of the Company and Arctic Paper Kostrzyn S.A.; ‒ civil surety for liabilities granted by Arctic Paper S.A., Arctic Paper Kostrzyn S.A., Arctic Paper Munkedals AB, Arctic Paper Grycksbo AB.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 25 2. under Swedish law – Collateral Documents establishing the following Collateral: ‒ pledges over all the Company’s and Arctic Paper Munkedals AB, Arctic Paper Grycksbo AB shares or interests registered in Sweden; ‒ mortgages on all real properties located in Sweden and owned by Arctic Paper Munkedals AB, Arctic Paper Grycksbo AB, provided that only existing mortgage deeds are subject to such security; ‒ corporate mortgage loans granted by the Guarantors registered in Sweden as long as such collateral covers solely the existing mortgage deeds; ‒ assignment of (existing and future) insurance policies covering the assets of Arctic Paper Munkedals AB and Arctic Paper Grycksbo AB (with the exception of insurance policies listed in the Loan Agreement); ‒ pledges on Swedish bank accounts of Arctic Paper Munkedals AB and Arctic Paper Grycksbo AB, as long as such collateral is without prejudice to free management of funds deposited on bank accounts until an event of default specified in the Loan Agreement. Apart from the above, as at 30 June 2026 the Group disclosed: 1. security over the assets of Rottneros AB for its liabilities with Danske Bank – these are: ‒ pledge on assets for SEK 889,162 thousand (PLN 344,550); ‒ promissory notes amounting to SEK 941,892 thousand (PLN 364,983 thousand) 2. security over the assets on account of Apower’s liabilities with Nordea Bank – these are: ‒ mortgage on assets for SEK 68,000 thousand (PLN 26,350 thousand). Information on court and arbitration proceedings and proceedings pending before public administrative authorities In the period covered by this report, Arctic Paper S.A. and its subsidiaries were not a party to any material proceedings pending before a court, a competent authority for arbitration proceedings or a public administration authority. Information on transactions with related parties executed on non-market terms and conditions During the period under report, Arctic Paper S.A. and its subsidiaries did not execute any material transactions with related parties on non-market terms and conditions. Information on remuneration of the entity authorised to audit the financial statements On 08 August 2025, Arctic Paper S.A. contracted with PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k. to review the Company’s interim separate consolidated financial statements and the Group’s interim consolidated financial statements for the periods from 1 January 2025 to 30 June 2025 and from 1 January 2026 to 30 June 2026, and to audit the Company’s stand-alone financial statements and the Group’s consolidated financial statements for the financial periods from 1 January 2025 to 31 December 2025 and for the financial periods from 1 January 2026 to 31 December 2026. The agreement was entered into for the duration of the provision of the aforementioned services: the review of the Company’s interim separate financial statements and interim consolidated financial statements.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Management Board’s Report 26 Statements of the Management Board Accuracy and reliability of the presented reports Members of the Management Board of Arctic Paper S.A. represent that to the best of their knowledge: — The interim condensed consolidated financial statements for the period of 6 months ended on 30 June 2026 of the Arctic Paper S.A. Capital Group and the comparable data and the interim condensed separate financial statements for the period of 6 months ended on 30 June 2026 of the Arctic Paper S.A. Capital Group and the comparable data have been prepared in compliance with the applicable accounting standards and that they reflect in a true, reliable and clear manner the economic and financial condition of the Capital Group and its financial results for the period of the first 6 months of 2026. — The Management Board’s Report from operations of the Arctic Paper S.A. Capital Group to the report for H1 2026 contains a true image of the development, achievements and condition of the Arctic Paper S.A. Capital Group, including a description of core hazards and risks. Signatures of the Members of the Management Board Position First and last name Date Signature President of the Management Board CEO Michał Jarczyński 11 August 2026 signed with a qualified electronic signature Member of the Management Board Chief Financial Officer Katarzyna Wojtkowiak 11 August 2026 signed with a qualified electronic signature Member of the Management Board Vice-President for Sales and Marketing Fabian Langenskiöld 11 August 2026 signed with a qualified electronic signature
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 27 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated financial statements for the period of six months ended on 30 June 2026
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 28 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated financial statements Interim condensed consolidated statement of profit or loss Note 3-month period ended on 30 June 2026 (unaudited) 6-month period ended on 30 June 2026 (unaudited) 3-month period ended on 30 June 2025 (unaudited) 6-month period ended on 30 June 2025 (unaudited) Continuing operations Revenue from sales of paper and pulp 9.1. 750 827 1 564 818 833 455 1 656 225 Sales revenue 750 827 1 564 818 833 455 1 656 225 Costs of sales 9.2. ( 676 964) (1 422 809) ( 750 681) (1 459 067) Profit/(loss) on sales 73 863 142 009 82 774 197 158 Selling and distribution costs 9.2. ( 89 741) ( 181 986) ( 87 685) ( 175 542) Administrative expenses 9.2. ( 25 393) ( 51 770) ( 36 307) ( 72 229) Other operating income 9.2. 23 551 56 104 20 595 43 608 Other operating expenses 9.2. ( 11 975) ( 30 215) ( 67 874) ( 91 316) Operating profit/(loss) ( 29 694) ( 65 858) (88 497) ( 98 321) Finance income 9.2. 1 257 4 011 1 455 2 806 Finance costs 9.2. ( 4 695) ( 9 418) ( 2 051) ( 21 118) Gross profit/(loss) ( 33 132) ( 71 264) ( 89 092) ( 116 632) Income tax 9.2. ( 3 750) 869 14 067 17 787 Net profit/(loss) for the financial year ( 36 882) ( 70 395) ( 75 025) ( 98 845) Attributable to: The shareholders of the Parent Company ( 34 415) ( 55 798) ( 45 423) ( 58 846) To the non-controlling shareholder ( 2 467) ( 14 597) (29 602) ( 40 000) Earnings per share: – basic earnings from the profit/(loss) attributable to the shareholders of the Parent Company 12. ( 0,50) ( 0,81) ( 0,66) ( 0,85) – diluted earnings from the profit attributable to the shareholders of the Parent Company 12. ( 0,50) ( 0,81) ( 0,66) ( 0,85)
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 29 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated statement of comprehensive income 3-month period ended on 30 June 2026 6-month period ended on 30 June 2026 3-month period ended on 30 June 2025 6-month period ended on 30 June 2025 (unaudited) (unaudited) (unaudited) (unaudited) Profit for the reporting period (36 882) (70 395) (75 025) (98 845) Other comprehensive income Items to be reclassified to profit/(loss) in future reporting periods: Foreign exchange differences on translation of foreign operations (15 521) (6 575) (16 488) 27 823 Measurement of financial instruments 12 620 19 469 9 991 (3 525) Deferred tax on the measurement of financial instruments (1 235) (3 491) (1 608) 381 Items that were reclassified to profit/(loss) during the reporting period: Measurement of financial instruments (485) 3 560 1 831 1 947 Deferred tax on the measurement of financial instruments (972) (972) (1 039) (331) Other net comprehensive income (5 592) 11 992 (7 313) 26 294 Total comprehensive income for the period (42 473) (58 403) (82 338) (72 551) Total comprehensive income attributable to: The shareholders of the Parent Company ( 40 080) (46 239) (50 535) (38 804) Non-controlling shareholders ( 2 394) (12 164) (31 803) (33 747)
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 30 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated statement of financial position – assets Note As at 30 June 2026 (unaudited) As at 31 December 2025 (unaudited) ASSETS Non-current assets Property plant and equipment 13. 1 504 618 1 527 706 Intangible assets 13. 78 786 78 446 Goodwill 13. 8 138 8 207 Interest in joint ventures 2 019 5 203 Other financial assets 14. 16 312 14 943 Other non-financial assets 271 1 668 Deferred tax assets 21. 6 871 6 913 TOTAL NON-CURRENT ASSETS 1 617 015 1 643 086 Current assets Inventories 15. 432 606 443 529 Trade and other receivables 16. 393 249 367 833 Corporate income tax receivables 27 160 22 296 Other non-financial assets 47 136 47 115 Other financial assets 14. 11 698 904 Cash and cash equivalents 10. 123 517 151 643 TOTAL CURRENT ASSETS 1 035 366 1 033 319 TOTAL ASSETS 2 652 381 2 676 405
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 31 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated statement of financial position – equity and liabilities Note As at 30 June 2026 (unaudited) As at 31 December 2025 (unaudited) EQUITY AND LIABILITIES Equity Equity (attributable to the shareholders of the Parent Company) Share capital 22. 69 288 69 288 Supplementary capital 625 733 625 733 Other capital 302 271 340 310 Foreign exchange differences on translation ( 104 985) ( 101 862) Retained earnings/Accumulated losses 476 959 482 037 1 369 269 1 415 506 Non-controlling interests 269 771 281 935 TOTAL EQUITY 1 639 040 1 697 441 Non-current liabilities Loan payables 18. 154 692 56 060 Provisions 12 898 12 930 Employee liabilities 20. 20 011 19 920 Other financial liabilities 26 185 36 501 Deferred tax liability 21. 75 700 72 651 Grants and deferred income 3 926 4 766 293 412 202 828 Current liabilities Loan payables 18. 178 911 195 019 Provisions 422 774 Other financial liabilities 24. 6 918 10 776 Trade and other payables 19. 406 275 454 527 Employee liabilities 20. 105 073 98 551 Income tax liability 269 518 Grants and deferred income 22 061 15 971 719 929 776 136 TOTAL LIABILITIES 1 013 341 978 964 TOTAL EQUITY AND LIABILITIES 2 652 381 2 676 405
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 32 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated statement of cash flows Note H1 2026 H1 2025 Cash flows from operating activities Gross profit/(loss) from continuing operations Gross profit/(loss) from continued operations Gross profit/(loss) ( 71 457) ( 116 632) Adjustments for: 36 405 157 424 Depreciation/amortisation 76 998 67 758 Impairment of non-financial assets - 53 424 Foreign exchange gains/(loss) 1 298 2 332 Interest, net 8 301 7 758 Profit/(loss) from investing activities - 1 106 (Increase)/decrease in trade and other receivables ( 28 169) ( 18 520) (Increase) / decrease in inventories 7 955 9 105 Increase (decrease) of liabilities except loans, borrowings, bonds and other financial liabilities ( 43 664) 25 445 Change in non-financial assets ( 2 064) ( 6 722) Change in provisions ( 278) 94 Movement in pension provisions and employee liability 7 227 7 972 Change in grants and deferred income 5 169 2 657 Co-generation certificates and CO2 emission rights 3 713 - Change in settlement of realised forward contracts that meet hedge accounting rules - 5 249 Other ( 81) ( 234) Total cash flows from operating activities ( 35 052) 40 789 Income tax paid ( 5 987) ( 42 238) Net cash flows from operating activities ( 41 040) ( 1 448) Cash flows from investing activities Disposal of property, plant and equipment and intangible assets - 126 Purchase of property, plant and equipment and intangible assets ( 65 821) ( 157 643) Proceeds from bank deposit set up for more than 3 months 1 444 - Net cash flows from investing activities ( 64 377) ( 157 517) Cash flows from financing activities Inflows under loans 25 879 16 298 Change to overdraft facilities 73 318 120 323 Repayment of leasing liabilities (3 711) (3 677) Repayment of loans ( 15 526) ( 28 051) Interest paid ( 2 599) ( 1 259) Net cash flows from financing activities 77 361 103 634 Increase/(decrease) in cash and cash equivalents ( 28 056) ( 55 333) Net foreign exchange differences ( 68) 1 360 Increase (decrease) in cash and cash equivalents aftereffects of exchange rate changes ( 28 125) ( 53 973) Cash and cash equivalents at the beginning of the period 151 643 287 583 Cash and cash equivalents at the end of the period 10 123 517 233 606
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 33 Additional notes to the interim condensed consolidated financial statements provided on pages 34 to 56 constitute an integral part hereof Interim condensed consolidated statement of changes in equity Attributable to the shareholders of the Parent Company Equity attributable to non-controlling shareholders Total equity Share capital Supplementary capital Foreign exchange differences on translation of foreign operations Other reserves Retained earnings (Accumulated losses) Total As at 1 January 2026 69 288 625 733 ( 101 862) 340 310 482 037 1 415 506 281 935 1 697 441 Net profit/(loss) for the period ( 55 798) ( 55 798) ( 14 597) ( 70 395) Other net comprehensive income for the period - - ( 3 123) 12 682 - 9 559 2 433 11 992 Total comprehensive income for the year - - ( 3 123) 12 682 ( 55 798) ( 46 239) ( 12 164) ( 58 403) Profit distribution - - - ( 50 721) 50 721 - - - Total changes in capital - - ( 3 123) ( 38 039) ( 5 078) ( 46 240) ( 12 164) ( 58 403) As at 30 June 2026 (unaudited) 69 288 625 733 ( 104 985) 302 271 476 959 1 369 269 269 771 1 639 040 Attributable to the shareholders of the Parent Company Equity attributable to non-controlling shareholders Total equity Share capital Supplementary capital Foreign exchange differences on translation of foreign operations Other reserves Retained earnings (Accumulated losses) Total As at 1 January 2025 69 288 625 733 (144 397) 138 749 765 920 1 455 293 313 428 1 768 721 Net profit/(loss) for the period - - - - (58 846) (58 846) (40 001) (98 847) Other net comprehensive income for the period - - 21 569 (1 530) - 20 039 6 253 26 293 Total comprehensive income for the year - - 21 569 (1 530) (58 846) (38 807) (33 747) (72 554) Profit distribution - - - 197 292 (197 292) - - - As at 30 June 2025 (unaudited) 69 288 625 733 (122 828) 334 511 509 782 1 416 487 279 680 1 696 167
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 34 Additional explanatory notes 1. General information The Arctic Paper Group is a paper and pulp producer. We offer voluminous book paper and a wide range of products in this segment, as well as high-grade graphic paper. The Group produces numerous types of uncoated and coated wood-free paper as well as wood-containing uncoated paper for printing houses, paper distributors, book and magazine publishing houses and the advertising industry. The Arctic Paper Group employs around 1,500 people in its paper mills, paper sales and pulp companies, purchasing office and food packaging company. Our Paper Mills are located in Poland and in Sweden. Pulp Mills are located in Sweden. The Group had 14 Sales Offices providing access to all European markets, including Central and Eastern Europe and North America. Our consolidated sales revenue for the period of 6 months of 2026 amounted to PLN 1,565 million. Arctic Paper S.A. is a holding company set up in April 2008. As a result of capital restructuring carried out in 2008, the Paper Mills Arctic Paper Kostrzyn (Poland) and Arctic Paper Munkedals (Sweden), Distribution Companies and Sales Offices have become the properties of Arctic Paper S.A. Previously they were owned by Trebruk AB (formerly Arctic Paper AB), the parent company of Arctic Paper S.A. In addition, under the expansion, the Group acquired the Paper Mill Arctic Paper Mochenwangen (Germany) in November 2008 and the Paper Mill Grycksbo (Sweden) in March 2010. In 2012, the Group acquired shares in Rottneros AB, a NASDAQ-listed company in Stockholm with interests in two pulp mills (Sweden).In 2020, the Group took control of Nykvist Skogs AB, a company of private forest owners in Sweden. The Parent Company is entered in the register of entrepreneurs of the National Court Register maintained by the District Court in Zielona Góra, 8th Commercial Division of the National Court Register, under KRS number 0000306944. The Parent Company holds statistical number REGON 080262255. The company’s registered office is located in Poland, in Kostrzyn nad Odrą (ul. Fabryczna 1). The Company has a foreign branch in Göteborg, Sweden. The interim condensed consolidated financial statements of the Group with respect to the interim condensed consolidated statement of profit or loss, statement of comprehensive income, statement of cash flows and statement of changes to equity and notes to the interim condensed consolidated statement of comprehensive income and interim condensed consolidated statement of profit and loss cover the period of 6 months ended on 30 June 2026 and contain comparable data for the period of 6 months ended on 30 June 2025; and in the consolidated statement of financial condition, it presents data as at 30 June 2026 and as at 31 December 2025. The interim condensed consolidated statement of total comprehensive income the interim condensed consolidated statement of profit or loss also include data for the three months ended 30 June 2026 and comparative data for the three months ended 30 June 2025. 1.1 Group Profile The principal business of the Arctic Paper Group is the production of paper and pulp. The Group’s additional business, subordinate to paper and pulp production, covers: − Generation of electricity, − Transmission of electricity, − Electricity distribution, − Heat production, − Heat distribution, − Logistics services, − Paper and pulp distribution. 1.2 Shareholding structure Nemus Holding AB, a company under Swedish law (a company owned indirectly by Mr Thomas Onstad), is the majority shareholder of Arctic Paper S.A., holding (as at 30 June 2026) 43,874,890 shares of our Company, which constitutes 64.19% of its share capital and corresponds to 64.19% of the total number of votes at General Meetings. Thus, Nemus Holding AB is the Parent Company of the Issuer. Additionally, Mr Thomas Onstad, an indirect shareholder of Nemus Holding AB, holds directly 2,823,658 shares representing 4.07% of the total number of shares in the Company, and via another entity – 600,000 shares accounting for 0.87% of the total number of shares of the Issuer. Mr Thomas Onstad’s total direct and indirect holding in the capital of Arctic Paper S.A. as at 30 June 2026 was 68.26% and has not changed until the date hereof. The ultimate parent company of the Group that prepares the consolidated financial statements is Nemus Holding AB. The top owner of the Group is Mr. Thomas Onstad.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 35 2. Composition of the Group The Group is composed of Arctic Paper S.A. and the following subsidiaries: Unit Registered office Group Profile Group’s interest in the equity of the subsidiaries as at 11 August 2026 30 June 2026 12 May 2026 31 December 2025 Arctic Paper Kostrzyn S.A. Poland, Fabryczna 1, 66-470 Kostrzyn nad Odrą Paper production 100% 100% 100% 100% Arctic Paper Munkedals AB Sweden, SE 455 81 Munkedal Paper production 100% 100% 100% 100% Arctic Paper Mochenwangen GmbH Germany, Am Sandtorkai 72, D-20457 Hamburg Non-operating company, previously paper production 99,74% 99,74% 99,74% 99,74% Arctic Paper Grycksbo AB Sweden, Box 1, SE 790 20 Grycksbo Paper production 100% 100% 100% 100% Arctic Paper UK Limited UK, Arctic Paper UK Ltd 222 Bishopsgate,London,EC2M 4QD Trading company 100% 100% 100% 100% Arctic Paper Baltic States SIA Latvia, K. Vardemara iela 33-20, Riga LV-1010 Trading company 100% 100% 100% 100% Arctic Paper Deutschland GmbH Germany, Am Sandtorkai 72, D-20457 Hamburg Trading company 100% 100% 100% 100% Arctic Paper Benelux S.A. Belgium, Interleuvenlaan 62 bus 14, B-3001 Heverlee Trading company 100% 100% 100% 100% Arctic Paper Schweiz AG Switzerland, Gutenbergstrasse 1, CH-4552 Derendingen Trading company 100% 100% 100% 100% Arctic Paper Italia srl Italy, Via Chiaravalle 7, 20 122 Milan Trading company 100% 100% 100% 100% Arctic Paper Danmark A/S Denmark, Korskildelund 6 DK-2670 Greve Trading company 100% 100% 100% 100% Arctic Paper France SAS France, 30 rue du Chateau des Rentiers, 75013 Paris Trading company 100% 100% 100% 100% Arctic Paper Espana SL Spain, Avenida Diagonal 472-474, 9-1 Barcelona Trading company 100% 100% 100% 100% Arctic Paper Papierhandels GmbH Austria, Hainborgerstrasse 34A, A-1030 Wien Trading company 100% 100% 100% 100% Arctic Paper Polska Sp. z o.o. Poland, Okrężna 9, 02-916 Warszawa Trading company 100% 100% 100% 100% Arctic Paper Norge AS Norway, Eikenga 11-15, NO-0579 Oslo Trading company 100% 100% 100% 100% Arctic Paper Sverige AB Sweden, SE 455 81 Munkedal Trading company 100% 100% 100% 100% Arctic Power Sp.z o.o. (formerly Arctic Paper East Sp. z o.o.) Poland, Fabryczna 1, 66-470 Kostrzyn nad Odrą Production of energy 100% 100% 100% 100% Arctic Paper Investment GmbH * Germany, Am Sandtorkai 72, D-20457 Hamburg Activities of holding companies 100% 100% 100% 100%
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 36 Unit Registered office Group Profile Group’s interest in the equity of the subsidiaries as at 12 August 2026 30 June 2026 12 May 2026 31 December 2025 Arctic Paper Finance AB Sweden, Box 383, 401 26 Göteborg Activities of holding companies 100% 100% 100% 100% Arctic Paper Investment AB ** Sweden, Box 383, 401 26 Göteborg Activities of holding companies 100% 100% 100% 100% Arctic Power AB Sweden, 455 81 Munkedal Production of hydropower 100% 100% 100% 100% Kostrzyn Packaging Spółka z o.o. Poland, ul. Fabryczna 1, 66-470 Kostrzyn nad Odrą Production of packaging 77,5% 77,5% 77,5% 77,5% Rottneros AB Sweden, Söderhamn Activities of holding companies 55,02% 55,02% 55,02% 55,02% Rottneros Bruk AB Sweden, Rottneros Pulp production 55,02% 55,02% 55,02% 55,02% Utansjo Bruk AB Sweden, Söderhamn Non-operating company 55,02% 55,02% 55,02% 55,02% Vallviks Bruk AB Sweden, Vallvik Pulp production 55,02% 55,02% 55,02% 55,02% Nykvist Skogs AB Sweden, Gräsmark Company grouping forest owners 55,02% 55,02% 55,02% 55,02% Rottneros Packaging AB Sweden, Sunne Production of food packaging 55,02% 55,02% 55,02% 55,02% SIA Rottneros Baltic Latvia, Ventspils Procurement bureau 55,02% 55,02% 55,02% 55,02% Arctic Paper Fiber Solutions, INC. USA, Corporation Trust Centre 1209 Orange Street, City of Wilmington, New Castle County, State of Delaware 19801 Trading company 100% 100% 100% 100% Project Frost APM AB Sweden, SE 455 81 Munkedal Energy storage 100% 100% 100% 100% Project Frost APG AB Sweden, SE 455 81 Munkedal Energy storage 100% 100% 100% 100% * – companies established for the purpose of the acquisition of Arctic Paper Mochenwangen GmbH ** – company established to acquire Grycksbo Paper Holding AB (closed in 2015) and indirectly Arctic Paper Grycksbo AB As at 30 June 2026, and as well as on the day hereof, the percentage of voting rights held by the Group in its subsidiaries corresponded to the percentage held in the share capital of those entities. All subsidiaries within the Group are consolidated under the full method from the day of obtaining control by the Group and cease to be consolidated from the day the control has been transferred out of the Group.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 37 3. Management and supervisory bodies 3.1 Management Board of the Parent Company As at 30 June 2026, the Parent Company’s Management Board was composed of: — Michał Jarczyński – President of the Management Board appointed on 10 December 2018, with effect from 1 February 2019; — Katarzyna Wojtkowiak – Member of the Management Board appointed on 29 May 2023; — Fabian Langenskiöld – Member of the Management Board appointed on 14 August 2023. Pursuant to a resolution adopted on 18 May 2026, and in connection with the expiry of the current term of office of the Management Board on 29 May 2026, the Supervisory Board reappointed the existing members of the Management Board for a new three-year term of office, with no changes to its composition. Until the date hereof, there were no other changes to the composition of the Management Board of the Parent Company. 3.2 Supervisory Board of the Parent Company As at 30 June 2026, the Parent Company’s Supervisory Board was composed of: — Per Lundeen – Chair of the Supervisory Board appointed on 22 September 2016 (appointed to the Supervisory Board on 14 September 2016); — Roger Mattsson – Deputy Chair of the Supervisory Board appointed on 22 September 2016 (appointed as a Member of the Supervisory Board on 14 September 2014); — Thomas Onstad – Member of the Supervisory Board appointed on 22 October 2008; — Zofia Dzik – Member of the Supervisory Board appointed on 22 June 2021; — Anna Jakubowski – Member of the Supervisory Board appointed on 22 June 2021. Until the date hereof, there were no changes to the composition of the Supervisory Board of the Parent Company. 4. Approval of the financial statements These interim condensed consolidated financial statements were approved for publication by the Management Board on 11 August 2026. 5. Basis of preparation of the interim condensed consolidated financial statements These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as endorsed by the EU (“EU IFRS”), in particular International Accounting Standard 34. These interim condensed consolidated financial statements have been presented in Polish zloty (“PLN”) and all values are rounded to the nearest thousand (PLN ‘000) except as stated otherwise. These interim condensed consolidated financial statements have been prepared based on the assumption that the Group will continue as a going concern in the foreseeable future. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Group’s annual consolidated financial statements for the year ended on 31 December 2025. The Management Board has assessed the Group’s going concern assumption for the foreseeable future. As part of this assessment, an evaluation was carried out of the Group’s overall working capital position, including the distribution of cash amongst its subsidiaries and any restrictions on the transfer of funds outside the Group. Where appropriate, the Management Board has considered the ability of subsidiaries to pay dividends or transfer funds in other ways in order to meet the Group’s obligations. The Management Board has prepared a cash flow forecast covering at least twelve months from the date of approval of the consolidated financial statements. The forecast is based on approved budgets, historical trends, current market conditions and contracts in force as at the date of the assessment. The forecasts cover projected cash inflows from operating activities, capital expenditure requirements, debt servicing obligations and changes in working capital within the Group. Unless specified otherwise, all amounts are in PLN ‘000. Based on this analysis, the Management Board expects the Group to maintain sufficient liquidity to meet its obligations as they fall due throughout the assessment period. Having taken into account the Group’s consolidated financial position, projected cash flows, intra-group financing capacity, sensitivity analysis and all material information available as at the date of approval of the consolidated financial statements, the Management Board concludes that the assumption that the Group will continue as a going concern in the foreseeable future is reasonable.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 38 6. Significant accounting principles (policies) The accounting principles (policies) applied to prepare the interim condensed consolidated financial statements are compliant with those applied to the annual consolidated financial statements of the Group for the year ended on 31 December 2025, except for those presented below. a) Changes in the classification and measurement of financial instruments – Amendments to IFRS 9 and IFRS 7 In May 2024, the IASB published amendments to IFRS 9 and IFRS 7 to: clarify the recognition and derecognition dates for certain financial assets and liabilities, with an exemption for certain financial liabilities settled through electronic funds transfer; clarify and add further guidance on assessing whether a financial asset meets the SPPI criteria; add new disclosures for certain instruments whose contractual terms may alter cash flows; and update disclosures on equity instruments measured at fair value through other comprehensive income (FVOCI). b) Annual Improvements to IFRS “Annual Improvements to IFRS” introduces changes to the standards: IFRS 1 “First-time Adoption of International Financial Reporting Standards”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 9 “Financial Instruments”, IFRS 10 “Consolidated Financial Statements” and IAS 7 “Statement of Cash Flows”. The amendments provide clarifications and clarify the standards’ guidance on recognition and measurement. c) Contracts relating to electricity dependent on natural factors: Amendments to IFRS 9 and IFRS 7 In December 2024, the Council published the amendments to help companies better recognise the financial effects of contracts relating to natural dependent electricity, which are often in the form of power purchase agreements (PPA). The current guidance may not fully capture the impact of these contracts on the company’s performance. To enable companies to better reflect these contracts in their financial statements, the Board has amended IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: disclosures. These changes include: clarifying the application of the “own use” criterion; allowing hedge accounting where these contracts are used as hedging instruments; adding new disclosures to enable stakeholders to understand the impact of these contracts on financial performance and cash flows 6.1 Published standards and interpretations not yet in force and not previously applied by the Group In these interim consolidated financial statements, the Group has not decided to early apply the following published standards, interpretations or amendments to existing standards before their effective date: In these interim financial statements, the Company has not decided to early apply the following published standards, interpretations or amendments to existing standards before their effective date: a) IFRS 18 “Presentation and Disclosures in Financial Statements” In April 2024, the Council published the new standard IFRS 18 “Presentation and Disclosures in Financial Statements”. The standard is intended to replace IAS 1 – Presentation of Financial Statements and will be effective from 1 January 2027. The changes to the superseded standard mainly concern three issues: the statement of profit or loss, required disclosures about performance measures and issues related to the aggregation and disaggregation of information contained in financial statements. The published standard will be effective for financial statements for periods beginning on or after 1 January 2027. b) IFRS 19 “Subsidiaries Without Public Accountability: Disclosure of Information” In May 2024, the Board issued a new accounting standard, IFRS 19, which can be adopted by certain subsidiaries applying IFRS accounting standards to improve the effectiveness of disclosures in their financial statements. The new standard introduces simplified and limited disclosure requirements. As a result, the qualifying subsidiary applies the requirements of other IFRS accounting standards with the exception of the disclosure requirements and instead applies the limited disclosure requirements of IFRS 19. Eligible subsidiaries are entities that are not subject to so-called public accountability as defined in the new standard. In addition, IFRS 19 requires the ultimate or intermediate parent of the entity to prepare publicly available consolidated financial statements in accordance with IFRS Accounting Standards. Eligible entities may choose to apply the guidance of the new IFRS 19 for financial statements prepared for periods beginning on or after 1 January 2027. At the date of these consolidated financial statements, these amendments have not yet been approved by the European Union. c) Amendments to IFRS 19 “Subsidiaries without public accountability: disclosure of information.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 39 In August 2025 the Board published amendments to IFRS 19 to support qualifying subsidiaries by reducing the disclosure requirements for standards and amendments to standards issued between February 2021 and May 2024.The amendments include the following standards: IFRS 18: Presentation and Disclosures in Financial Statements; Amendments to IAS 7 and IFRS 7 – Supplier Financing Arrangements; Amendments to IAS 12 – International Tax Reform; Amendments to IAS 21 – Non-convertibility of Currencies; Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments. With these changes, IFRS 19 incorporates all updates to IFRS standards that will be effective from 1 January 2027, the effective date of IFRS 19. At the date of these consolidated financial statements, these amendments have not yet been approved by the European Union d) Amendments to IAS 28 “Investments in Associates and Joint Ventures” In June 2026, the International Accounting Standards Board published targeted amendments to IAS 28 “Investments in Associates and Joint Ventures”. These amendments clarify which investments in associates and joint ventures may be measured at fair value in accordance with the option provided for in IAS 28. The amendments were introduced in response to differences in interpretation regarding the relationship between the option to measure at fair value provided for in IAS 28 and the new requirements of IFRS 18 “Presentation and Disclosures in Financial Statements”, in particular with regard to the classification of revenue and expenses in the Statement of profit or loss. The amendments will take effect from the date on which an entity first applies IFRS 18, which will generally be for annual reporting periods beginning on or after 1 January 2027. Earlier application is also permitted if an entity decides to adopt IFRS 18 early. At the date of these consolidated financial statements, these amendments have not yet been approved by the European Union e) Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Translation into the Presentation Currency in Hyperinflationary Economies" The International Accounting Standards Board announced in November 2025 amendments that clarify how companies should convert financial statements from a non-hyperinflationary currency to a hyperinflationary currency. These narrow scope changes aim to improve the usability of the information obtained in a cost-effective manner. Developed in response to stakeholder feedback, the changes are intended to reduce diversity of practice and provide a clearer basis for reporting in a hyperinflationary currency. The amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” will be effective for annual periods beginning 1 January 2027. The Company may elect to apply them early. At the date of these consolidated financial statements, these amendments have not yet been approved by the European Union. f) IFRS 20 “Regulatory Assets and Regulatory Liabilities” In May 2026, the International Accounting Standards Board published a new standard, IFRS 20 Regulatory Assets and Regulatory Liabilities. The standard has been developed for companies operating in regulated sectors and is intended to help investors better understand how tariff regulations affect the financial performance, financial position and future cash flow prospects of regulated companies. IFRS 20 introduces uniform rules for recognising the effects of timing differences relating to regulated rates, which arise when the timing of the provision of regulated services differs from the timing of the collection of fees from customers. In such cases, the revenue reported to date may not have fully reflected the company’s actual operating activities. The new standard requires these differences to be recognised in the financial statements. The standard will be particularly important for organisations providing essential services in sectors such as energy, gas, water, motorway and rail infrastructure, airport services, postal services and other regulated sectors. The standard supplements the requirements of IFRS 15 Revenue from Contracts with Customers and replaces the previous IFRS 14 Deferred Balances from Regulated Activities, which has not been endorsed by the European Union. In accordance with the provisions of IFRS 20, it is due to come into force for reporting periods beginning on or after 1 January 2029, although earlier application is permitted. At the date of these consolidated financial statements, these amendments have not yet been approved by the European Union. g) IFRS 14 “Regulatory accruals” This standard allows entities that prepare their financial statements in accordance with IFRS for the first time (on or after 1 January 2016) to recognise amounts arising from price-regulated activities in accordance with existing accounting policies. To improve comparability, with entities that already apply IFRS and do not report such amounts, under published IFRS 14, amounts arising from regulated price activities should be presented as a separate line item in both the statement of financial position and the statement of profit or loss and statement of other comprehensive income. By a decision of the European Union, IFRS 14 will not be endorsed. h) Amendments to IFRS 10 and IAS 28 on the sale or contribution of assets between an investor and its associates or joint ventures The amendments resolve the current inconsistency between IFRS 10 and IAS 28. The accounting treatment depends on whether the non- monetary assets sold or contributed to the associate or joint venture constitute a “business”.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 40 Where non-monetary assets constitute a “business”, the investor shows a full profit or loss on the transaction. If, on the other hand, the assets do not meet the definition of a business, the investor only recognises a gain or loss to the extent of the portion representing the interests of other investors. The amendments were published on 11 September 2014. At the date of these consolidated financial statements, approval of this amendment is deferred by the European Union. At the date of approval of these financial statements for publication, the Company does not plan to implement IFRS 18 early and is in the process of analysing the impact of this standard on the financial statements. The implementation of the standard will change the layout of the statement of profit or loss and reclassify certain items to financing or investing activities. 6.2 Foreign currency translation Transactions denominated in currencies other than the functional currency of the entity are translated into the presentation currency at the foreign exchange rate prevailing on the transaction date. On the balance sheet date, monetary assets and liabilities expressed in currencies other than the functional currency of the entity are translated into the functional currency using the mean foreign exchange rate prevailing for the presentation currency as at the end of the reporting period. Foreign exchange differences from translation are recognised under finance income or finance costs or are capitalised as cost of assets, as defined in the accounting policies. Non-monetary foreign currency assets and liabilities recognised at historical cost are translated at the historical foreign exchange rates prevailing on the transaction date. Non-monetary foreign currency assets and liabilities recognised at fair value are translated into the functional currency using the rate of exchange prevailing on the date of revaluation to fair value. The functional currencies of the foreign subsidiaries are EUR, SEK, DKK, NOK, GBP and CHF. As on the balance sheet date, the assets and liabilities of those subsidiaries are translated into the presentation currency of the Group (PLN) at the rate of exchange prevailing on the balance sheet date and their statements of profit or loss are translated using the average weighted exchange rates for the relevant reporting period. The foreign exchange differences on translation are recognised in other total comprehensive income and cumulated in a separate equity item. On disposal of a foreign operation, the cumulative amount of the deferred exchange differences recognised in equity and relating to that particular foreign operation shall be reclassified to profit or loss. Foreign exchange differences on loans treated in compliance with IAS 21 as investments in subsidiaries are recognised in the consolidated financial statements in other comprehensive income. The following exchange rates were used for book valuation purposes: As at 30 June 2026 As at 30 June 2025 USD 3,7708 3,6164 EUR 4,2963 4,2419 SEK 0,3875 0,3810 DKK 0,5748 0,5686 NOK 0,3801 0,3590 GBP 4,9887 4,9546 CHF 4,6585 4,5336 Mean foreign exchange rates for the reporting periods are as follows: 01.01 – 30.06.2026 01.01 – 30.06.2025 USD 3,6381 3,8763 EUR 4,2432 4,2313 SEK 0,3933 0,3816 DKK 0,5679 0,5671 NOK 0,3800 0,3628 GBP 4,8921 5,0231 CHF 4,6236 4,4950
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 41 7. Seasonality The Group’s activities are not of seasonal nature. Therefore, the results presented by the Group do not change significantly during the year. 8. Information on business segments Operational segments cover continuing activities. The Group’s principal activity is the manufacture of paper and pulp. The paper production business includes the financial results of three paper mills, among others: — Arctic Paper Kostrzyn S.A. (Poland) – produces high-quality uncoated graph paper under the Amber brand; — Arctic Paper Munkedals AB (Sweden) – produces high quality uncoated graphic paper under the Munken brand; — Arctic Paper Grycksbo (Sweden) – production of coated wood-free paper under the brands of G-Print and Arctic. The pulp business is presented as the “Pulp” segment and includes, among other things, two pulp plants: — Rottneros pulp mill (Sweden) – mainly produces chemothermo-mechanical pulp. (CTMP), production level of about 160,000 tonnes annually; — the Pulp Mill in Vallvik (Sweden) produces two types of long-fibre sulphate pulp: fully bleached sulphate pulp and unbleached sulphate pulp. The most of Vallvik Pulp Mill production is known as NBSK pulp. Production level of about 240,000 tonnes annually. The Group identifies the following business segments: — Paper – this segment includes uncoated and coated papers. Uncoated paper – paper for printing or other graphic purposes, including wood- free and wood-containing paper. Uncoated wood-free paper may be produced from various types of pulp, with different filler content, and can undergo various finishing processes, such as surface sizing and calendering. Two main categories of this type of paper are graphic paper (used for example for printing books and catalogues) and office papers (for instance, photocopy paper); however, the Group currently does not produce office paper. Uncoated wood paper from mechanical pulp intended for printing or other graphic purposes. This type of paper is used for printing magazines with the use of rotogravure or offset printing techniques. The Group’s products in this segment are usually used for printing paperbacks, Coated paper – coated wood-free paper for printing or other graphic purposes, one-side or two-side coated with mixtures containing mineral pigments, such as china clay, calcium carbonate, etc. The coating process can involve different methods, both on-line and off-line, and can be supplemented by super-calendering to ensure a smooth surface. Coating improves the printing quality of photographs and illustrations. — Pulp – fully bleached sulphate pulp and unbleached sulphate pulp which is used mainly for the production of printing and writing papers, cardboard, toilet paper and white packaging paper as well as chemothermo-mechanical pulp (CTMP), which is mainly used in the production of printing and writing paper. The division of the business segments into paper and pulp is dictated by the following considerations: — Demand for products and their supply as well as the prices of products sold in the market are affected by operational factors characteristic for each segment, such as e.g. the production capacity level in the specific paper and pulp segment, — The key operating parameters such as inflow of orders or the level of production costs are determined by the factors that are similar for each paper and pulp segment, — The products manufactured at the Paper Mills operated by the Group may (with certain restrictions) be allocated to production in other entities within the same paper segment, which to a certain extent distorts the financial results generated by each Paper Mill, — The results of the Arctic Paper Group are under the pressure of global market trends with respect to the prices of paper and pulp, and to a lesser extent are subject to the specific conditions of production entities, Every month, on the basis of internal reports received from companies (apart from companies of the Rottneros Group), the results in each operating segment are analysed by the management of the Group. The financial results of companies in the Rottneros Groups are analysed on the basis of quarterly financial results published on the websites of Rottneros AB. The operating results are measured primarily on the basis of EBITDA calculated by adding depreciation/amortisation and impairment losses to property plant and equipment and intangible assets to operating profit/(loss), in each case in compliance with EU IFRS. In accordance with EU IFRS, EBITDA is not a metric of operating profit/(loss), operational results or liquidity. EBITDA is a metric that the Management Board uses to manage the operations. Transactions between segments are concluded at arms’ length like between unrelated parties. The table below presents data concerning revenue and profit as well as certain assets and liabilities under continuing operations, split by segments of the Group for the period of 6 months ended on 30 June 2026 and as at 30 June 2026.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 42 6-month period ended on 30 June 2026 and on 30 June 2026 Paper Pulp Total Exclusions Total continuing operations Revenue Sales to external customers 1 087 409 477 408 1 564 818 1 564 818 Sales between segments - 7 866 7 866 ( 7 866) - Total segment revenue 1 087 409 485 274 1 572 683 ( 7 866) 1 564 818 Result of the segment EBITDA 13 998 ( 2 054) 11 944 ( 804) 11 140 Depreciation/amortisation ( 47 729) ( 29 269) ( 76 998) - ( 76 998) Operating profit/(loss) ( 33 732) ( 31 323) ( 65 054) ( 804) ( 65 858) Interest income 189 181 369 - 369 Interest expense ( 2 818) ( 5 844) ( 8 662) - ( 8 662) Foreign exchange gains and other finance income 2 082 365 2 446 1 196 3 642 Foreign exchange losses and other finance costs ( 719) ( 37) ( 756) - ( 756) Gross profit ( 34 998) ( 36 658) ( 71 656) 392 ( 71 264) Assets of the segment 1 771 623 882 531 2 654 154 ( 1 773) 2 652 381 Liabilities of the segment 562 190 377 873 940 063 73 278 1 013 341 Capital expenditures ( 61 652) ( 4 256) ( 65 908) - ( 65 908) Interest in joint ventures 2 019 - 2 019 - 2 019 — Revenue from inter-segment transactions is eliminated on consolidation. — Segment results do not include finance income (PLN 4,011 thousand of which PLN 369 thousand is interest income) and finance costs (PLN 9,418 thousand of which PLN 8,662 thousand is interest expense), depreciation/amortisation and impairment (PLN 76,998 thousand) as well as income tax credits (PLN 869 thousand). — Segment assets do not include deferred tax (PLN 6,871 thousand), as this item is managed at Group level and interests in joint ventures (PLN 2,019 thousand). — Segment liabilities do not include deferred tax (PLN 75,700 thousand), as this item is managed at Group level.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 43 The table below presents data concerning revenue and profit as well as certain assets and liabilities split by segments of the Group for the period of 3 months ended on 30 June 2026 and as at 30 June 2026. 3-month period ended on 30 June 2026 and on 30 June 20256 Paper Pulp Total Exclusions Total continuing operations Revenue Sales to external customers 514 015 236 811 750 827 - 750 827 Sales between segments - 2 321 2 321 ( 2 321) - Total segment revenue 514 015 239 133 753 148 (2 321) 750 827 Result of the segment EBITDA ( 7 825) 12 120 4 295 4 281 8 576 Depreciation/amortisation ( 23 908) ( 14 362) ( 38 270) - ( 38 270) Operating profit/(loss) ( 31 734) ( 2 242) ( 33 975) 4 281 ( 29 694) Interest income 88 93 180 - 180 Interest expense ( 1 434) ( 2 872) ( 4 306) - ( 4 306) Foreign exchange gains and other finance income 254 (365) ( 111) 1 187 1 076 Foreign exchange losses and other finance costs ( 377) ( 11) ( 389) - ( 389) Gross profit ( 33 939) ( 4 667) ( 38 606) 5 475 ( 33 132) Assets of the segment 1 771 623 882 531 2 654 154 ( 1 773) 2 652 381 Liabilities of the segment 562 190 377 873 940 063 73 278 1 013 341 Capital expenditures ( 61 652) ( 4 256) ( 65 908) - ( 65 908) Interest in joint ventures 2 019 - 2 019 - 2 019 — Revenue from inter-segment transactions is eliminated on consolidation. — Segment results do not include financial income (PLN 1,256 thousand of which PLN 180 thousand is interest income) and finance costs (PLN4,695 thousand of which PLN 4,306 thousand is interest expense), depreciation/amortisation and impairment (PLN 38,270 thousand) as well as income tax credits (PLN 3,750 thousand). — Segment assets do not include deferred tax (PLN 6,871 thousand), as this item is managed at Group level and interests in joint ventures (PLN 2,019 thousand). — Segment liabilities do not include deferred tax (PLN 75,700 thousand), as this item is managed at Group level.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 44 The table below presents data concerning revenue and profit as well as certain assets and liabilities split by segments of the Group for the period of 6 months ended on 30 June 2025 and as at 30 June 2025. 6-month period ended on 30 June 2025 and on 30 June 2025 Paper Pulp Total Exclusions Total continuing operations Revenue Sales to external customers 1 130 290 525 935 1 656 225 - 1 656 225 Sales between segments - - - - - Total segment revenue 1 130 290 525 935 1 656 225 - 1 656 225 Result of the segment EBITDA 46 428 (15 899) 30 529 (7 669) 22 860 Depreciation/amortisation (42 204) (25 335) (67 539) (219) (67 758) Impairment of non-financial non-current assets (53 424) (53 424) - (53 424) Operating profit/(loss) 4 224 (94 658) (90 434) (7 888) (98 322) Interest income 2 206 167 2 373 (130) 2 243 Interest expense (3 271) (5 921) (9 192) 1 643 (7 549) Foreign exchange gains and other finance income - 559 559 - 559 Foreign exchange losses and other finance costs (182 794) (50) (182 844) 169 279 (13 564) Gross profit (179 634) (99 903) (279 537) 162 904 (116 634) Assets of the segment 1 833 148 1 064 180 2 897 328 (127 581) 2 769 747 Liabilities of the segment 736 465 478 150 1 214 615 (221 614) 993 001 Capital expenditures (96 893) (82 286) (179 180) (707) (179 887) Interest in joint ventures 5 123 - 5 123 - 5 123 — Revenue from inter-segment transactions is eliminated on consolidation. — Segment results do not include finance income (PLN 2,806 thousand of which PLN 2,243 thousand is interest income) and finance costs (PLN 21,118 thousand of which PLN 7,549 thousand is interest expense), depreciation/amortisation and impairment (PLN 98,322 thousand) as well as income tax credits (PLN 17,787 thousand). — Segment assets do not include deferred tax (PLN 6,449 thousand), as this item is managed at Group level and interests in joint ventures (PLN 5,123 thousand). — Segment liabilities do not include deferred tax (PLN 92,148 thousand), as this item is managed at Group level.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 45 The table below presents data concerning revenue and profit as well as certain assets and liabilities split by segments of the Group for the period of 3 months ended on 30 June 2025 and as at 30 June 2025. 3-month period ended on 30 June 2025 and on 30 June 2025 Paper Pulp Total Exclusions Total continuing operations Revenue Sales to external customers 551 507 281 949 833 455 - 833 455 Sales between segments - (865) (865) 865 - Total segment revenue 551 507 281 084 833 455 865 833 455 - - - - - Result of the segment - - - - EBITDA 10 773 (5 861) 4 912 (4 543) 4 - - - - - Depreciation/amortisation (21 343) (13 192) (34 535) (111) (34 646) Impairment of non-financial non-current assets - (53 424) (53 424) - (53 424) Operating profit/(loss) (10 570) (72 476) (83 412) (4 654) (88 066) Interest income 1 279 100 1 379 (487) 892 Interest expense (1 960) (3 286) (5 246) 784 (4 462) Foreign exchange gains and other finance income 3 560 559 3 535 (1 119) 2 974 Gross profit (8 056) (75 129) (83 185) (5 477) (88 661) Assets of the segment 1 833 148 1 064 180 2 897 328 (127 581) 2 769 747 Liabilities of the segment 736 465 478 150 1 214 615 (221 614) 993 001 Capital expenditures (96 893) (82 286) (179 180) (707) (179 887) Interest in joint ventures 5 123 - 5 123 - 5 123 — Revenue from inter-segment transactions is eliminated on consolidation. — Segment results do not include financial income (PLN 1,455 thousand of which PLN 892 thousand is interest income) and finance costs (PLN 2,051 thousand of which PLN 4,462 thousand is interest expense), depreciation/amortisation and impairment (PLN 88,066 thousand) as well as income tax credits (PLN 17,787 thousand). — Segment assets do not include deferred tax (PLN 6,449 thousand), as this item is managed at Group level and interests in joint ventures (PLN 5,123 thousand). — Segment liabilities do not include deferred tax (PLN 92,148 thousand), as this item is managed at the Group level.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 46 9. Income and costs 9.1 Revenue from contracts with customers The table below shows the Group’s revenue from paper and pulp sales from external customers by country and region for the period of 6 months ended 30 June 2026 and 30 June 2025: Revenue from the sale of paper and pulp from external customers: 6-month period ended on 30 June 2026 6-month period ended on 30 June 2025 (unaudited) (unaudited) Germany 262 499 276 557 France 92 785 114 355 UK 124 096 140 905 Scandinavia 265 880 295 344 Western Europe (other countries) 225 986 201 221 Poland 185 049 188 101 Central and Eastern Europe (other than Poland) 240 172 247 255 Outside Europe 168 351 192 485 Total revenue 1 564 818 1 656 225 More information on revenue from paper and pulp sales is described in this Semi-Annual report, under Management Report, Summary of Consolidated Financial Results. 9.2 Costs, other income, income tax In H1 2026, the cost of sales amounted to PLN 1,422,809 thousand (in H1 2025: (PLN 1,459,067 thousand) and fell by PLN 36,259 thousand (- 2%), mainly due to a fall in variable production costs. In H1 2025, the selling and distribution costs amounted to PLN 181,986 thousand (in H1 2025: PLN 175,545 thousand) and increased by PLN 6,440 thousand (+4%), mainly due to an increase in transport costs. In H1 2026, the administrative expenses amounted to PLN 51,770 thousand (in H1 2025: PLN 72,230 thousand) and decreased by PLN 20,459 thousand (-3%) mainly due to a decrease in the cost of consultancy services provided to the Group. In H1 2026, the other operating income amounted to PLN 56,104 thousand (in H1 2025: PLN 43,611 thousand) and increased by PLN 12,493 thousand (+3%). In H1 2026, the other operating expenses amounted to PLN 30,215 thousand (in H1 2025: PLN 91,315 thousand) and fell by PLN 61,100 thousand(67%). The decrease in other operating costs is mainly due to the recognition of an impairment loss on the Rottneros Group’s assets in H1 2025 (PLN 53,424 thousand). A significant part of other operating income and expenses is also made up of income and cost of energy and other materials sold. In H1 2026, the financial income amounted to PLN 4,011 thousand (in H1 2025: PLN 2,806 thousand) and increased by PLN 1,205 thousand (+43%). In H1 2026, the finance costs amounted to PLN 9,418 thousand (in H1 2025: PLN 21,123 thousand) and decreased by PLN 11,705 thousand (- 55%). The changes in financial income and expenses are mainly due to foreign exchange differences. Income tax in H1 2026 amounted to PLN +869 thousand (in H1 2025 it amounted to PLN +17,787 thousand). The current portion of income tax amounted to PLN -572 thousand in the half-year under review (H1 2025: PLN -1,414 thousand), while the deferred portion was PLN +1,441 thousand (H1 2025: PLN +19,201 thousand).
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 47 10. Cash and cash equivalents For the purposes of the interim condensed consolidated statement of cash flows, cash and cash equivalents include the following items: As at 30 June 2026 As at 31 December 2025 (unaudited) (unaudited) Cash in bank and on hand 122 625 151 642 Cash and cash equivalents in the consolidated balance sheet 893 - Cash and cash equivalents in the consolidated statement of cash flows 123 517 151 642 11. Dividend paid and proposed Dividend is paid based on the net profit disclosed in the separate annual financial statements of Arctic Paper S.A. after covering losses carried forward from last years. As on the date hereof, the Company had no preferred shares. The possibility of disbursement of potential dividend by the Company to its shareholders depends on the level of payments received from its subsidiaries. Risks relating to the Company’s ability to pay dividends are described in the Risk Factors section of the annual report for 2024. In connection with the term and revolving loan agreements signed on 31 October 2025, the Company’s ability to pay dividends is subject to the Group meeting certain financial ratio in the period prior to payment (as that term is defined in the term and revolving credit facility agreement) and there being no event of default (as that term is defined in the term and revolving loan agreement). The Company did not pay a dividend in 2025. On 19 February 2026, the Management Board of Arctic Paper S.A. decided to temporarily suspend the application of the provisions of the dividend policy with regard to the payment of dividends for 2025, adopted pursuant to the Management Board’ resolution of 11 July 2022, and will not recommend to the Company’s General Meeting the payment of dividends. 12. Earnings/(loss) per share Earnings/(loss) per share are established by dividing the net profit/(loss) for the reporting period attributable to the Company’s ordinary shareholders by the weighted average number of ordinary shares outstanding in the reporting period. Information regarding profit/(loss) and the number of shares which constituted the basis to calculate earnings/(loss) per share and diluted earnings/(loss) per share on continuing operations and overall operations is presented below: 3-month period ended on 30 June 2026 6-month period ended on 30 June 2026 3-month period ended on 30 June 2025 6-month period ended on 30 June 2025 (unaudited) (unaudited) (unaudited) (unaudited) Net profit/(loss) from continuing operations attributable to the shareholders of the Parent Company (34 415) (55 798) (45 423) (58 846) Net profit/(loss) attributable to the shareholders of the Parent Company (34 415) (55 798) (45 423) (58 846) Number of ordinary shares – A series 50 000 50 000 50 000 50 000 Number of ordinary shares – B series 44 253 500 44 253 500 44 253 500 44 253 500 Number of ordinary shares – C series 8 100 000 8 100 000 8 100 000 8 100 000 Number of ordinary shares – E series 3 000 000 3 000 000 3 000 000 3 000 000 Number of ordinary shares – F series 13 884 283 13 884 283 13 884 283 13 884 283
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 48 Total number of shares 69 287 783 69 287 783 69 287 783 69 287 783 Weighted average number of shares 69 287 783 69 287 783 69 287 783 69 287 783 Diluted weighted average number of ordinary shares 69 287 783 69 287 783 69 287 783 69 287 783 Profit/(loss) per share (in PLN) – basic earnings from the profit/(loss) for the period attributable to the shareholders of the Parent Company (0.50) (0.81) (0.66) (0.85) Diluted profit/(loss) per share (in PLN) – from the profit/(loss) for the period attributable to the shareholders of the Parent Company (0.50) (0.81) (0.66) (0.85) 13. Property plant and equipment, intangible assets, goodwill and impairment 13.1 Property plant and equipment, intangible assets and goodwill The net value of property plant and equipment as at 30 June 2026 amounted to PLN 1,504,618 thousand, including right-of-use assets of PLN 20,440 thousand. The net value of property plant and equipment as at 31 December 2025 was PLN 1,527,708 thousand, including right-of-use assets of PLN 22,880 thousand. A comparison of movements in property plant and equipment (excluding assets to be used) for the first six months of 2026 with the corresponding period of 2025 is as follows: the value of property plant and equipment acquired in the period under review amounted to PLN 65,399 thousand (for the six months ended 30 June 2025 it amounted to PLN 114,280 thousand). The net value of property plant and equipment sold or disposed of for the period of 6 months ended 30 June 2025 amounted to PLN 0 thousand (for the period of 6 months ended 30 June 2025 it amounted to PLN 1.577 thousand). Depreciation and amortisation in the period of 6 months ended 30 June 2026 amounted to PLN 71,831 thousand (for the period of 6 months ended 30 June 2025 it amounted to PLN 64,878 thousand. Foreign exchange differences amounted to PLN -7,514 thousand for the period of 6 months ended 30 June 2026 (for the period of 6 months ended 30 June 2025 they amounted to PLN 18,615 thousand). A comparison of movements in assets held for use for the first six months of 2026 with the corresponding period of 2025 is as follows: increases for the six-month period ended 30 June 2026 amounted to PLN 1,010 thousand (for the six-month period ended 30 June 2025, they amounted to PLN 1,376,000), depreciation for the six months ended 30 June 2026 amounted to PLN 3,426 thousand (for the six months ended 30 June 2025, it amounted to PLN 3,289,000), write-downs for the six-month period ended 30 June 2026 amounted to PLN 153 thousand (for the six- month period ended 30 June 2025, they amounted to PLN 17,000). Exchange differences for the period of 6 months ended 30 June 2026 amounted to PLN 130 thousand (for the period of 6 months ended 30 June 2025 they amounted to PLN 126 thousand). The net value of intangible assets at 30 June 2026 amounted to PLN 78,786 thousand (31 December 2025: PLN 73,050 thousand) The value of acquired intangible assets in the period under review amounted to PLN 17,174 thousand (for the period of 6 months ended 30 June 2025 it amounted to PLN 33,643 thousand). The net value of intangible assets sold or disposed of for the period of 6 months ended 30 June 2026 amounted to PLN 14,322 thousand (for the period of 6 months ended 30 June 2025 it amounted to PLN 6,320 thousand). The depreciation charge in the period of 6 months ended 30 June 2026 amounted to PLN 2,282 thousand (for the period of 6 months ended 30 June 2025 it amounted to PLN 110 thousand). The impairment loss on intangible assets in the period of 6 months ended 30 June 2026 amounted to PLN 0 thousand (for the period of 6 months ended 30 June 2025 it amounted to PLN 0 thousand). Exchange differences for the period of 6 months ended 30 June 2026 amounted to PLN -229 thousand (for the period of 6 months ended 30 June 2025 they amounted to PLN 692 thousand). Goodwill as at 30 June 2026 amounted to PLN 8,138 thousand ( 31 December 2025: PLN 8,001 thousand). The change in its value in H1 2026 was affected only by exchange rate differences of PLN 137 thousand (H1 2025: PLN 166 thousand). Revenue from the sale of property plant and equipment and intangible assets in H1 2026 amounted to PLN 153 thousand (H1 2025: PLN 108 thousand). 13.2 Impairment of non-financial assets As at 30 June 2026, the Group did not identify any indicators of impairment of assets or cash-generating units ("CGUs") relating to the operations of Arctic Paper Kostrzyn, Arctic Paper Munkedals and Arctic Paper Grycksbo. Consequently, the Group did not perform impairment testing for these CGUs. These CGUs do not include any material consolidated goodwill or trademarks with indefinite useful lives that are subject to annual impairment testing irrespective of whether indicators of impairment exist.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 49 The impairment assessment relating to the assets of the Rottneros Group as at 30 June 2026 is described separately below. As at 31 December 2025, the Group performed an impairment test of the cash-generating unit comprising the operations of the Rottneros Group using the discounted cash flow ("DCF") method. The test did not result in the recognition of an impairment loss, nor did it require any adjustment to previously recognized impairment charges. Rottneros Group As As at 30 June 2026, 31 December 2025 and 30 June 2025, the Parent Company performed impairment testing using the discounted cash flow (DCF) method. As at 30 June 2025, the Rottneros Group carried out an impairment test of assets attributable to the Rottneros Mill. The test indicated the need to recognize an impairment loss of SEK 140,000 thousand, which was recorded in the financial statements of the Rottneros Group and, consequently, included in the consolidated financial statements of the Arctic Paper Group. As at 30 June 2026, the Group performed an impairment test of the cash-generating unit represented by the Rottneros Group, which is allocated to the Pulp segment. The recoverable amount of the CGU was determined based on its value in use, calculated using the discounted cash flow method. The value in use of the net assets allocated to the CGU was estimated using a weighted average cost of capital (WACC) of 10.9% and cash flow projections covering the period from 2026 to 2030. The projected cash flows also included a terminal period beyond five years, reflecting the Group's assumption that the CGU will continue its operations on an indefinite basis in line with its long-term business strategy. As at 30 June 2026, the aggregate carrying amount of the net assets subject to impairment testing amounted to PLN 746,151 thousand, including goodwill of PLN 8,138 thousand and a trademark of PLN 28,189 thousand. As at 31 December 2025, the aggregate carrying amount of the net assets subject to impairment testing amounted to PLN 787,631 thousand, including goodwill of PLN 8,207 thousand and a trademark of PLN 28,430 thousand. The recoverable amount of the CGU as at 30 June 2026, determined as its value in use, amounted to PLN 780,896 thousand (31 December 2025: PLN 799,577 thousand). As the recoverable amount of the net assets allocated to the CGU exceeded their carrying amount, the impairment tests performed as at 30 June 2026 and 31 December 2025 did not indicate any impairment of the property, plant and equipment or intangible assets, including the trademark and goodwill, of the Rottneros Group recognized in these consolidated financial statements. 30 June 2026 31 December 2025 Approved projections based on 2026-2030 2026-2030 Weighted average cost of capital (WACC) 10,9% 10,9% Growth rate in the residual period 2,0% 0,0% USD/SEK FX rate 9,45 9,45 Parameter Change of the parameter by 2026 Impact on the value of assets in use 2025 Impact on the value of assets in use Weighted average cost of capital (WACC) +1.0 p.p. (80 891) (67 957) Growth rate in the residual period +1.0 p.p. none none USD/SEK FX rate +1.0 p.p. none none Weighted average cost of capital (WACC) -1.0 p.p. none none Growth rate in the residual period -1.0 p.p. (16 947) (28 341) USD/SEK FX rate -1.0 p.p. (55 524) (78 887)
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 50 14. Other financial assets The decrease in other financial assets was mainly due to the negative valuation of derivatives, mainly forward power purchase contracts. As at 30 June 2026 (unaudited) As at 31 December 2025 Hedging instruments 9 513 301 Investments in equity instruments 14 311 14 729 Receivable from realised forward contracts 3 820 743 Other financial assets 367 73 Total 28 010 15 846 – current 11 698 903 – non-current 16 312 14 943 15. Inventories As at 30 June 2026, unaudited As at 31 December 2025 Materials (at purchase prices) 183 153 161 963 Production in progress (at manufacturing costs) 6 700 7 102 Finished products 242 723 274 464 Advance payments for deliveries 30 - Total inventories, at the lower of: purchase price / manufacturing costs or net realisable price 432 606 443 529 Inventory impairment allowance 23 708 41 278 Total inventories before impairment allowance 456 314 484 807 Stock values as at 30 June 2026 compared to the end of the previous year were comparable. 16. Trade and other receivables As at 30 June 2026, unaudited As at 31 December 2025 Trade receivables 349 975 305 025 VAT receivables 24 962 33 735 Other third party receivables 18 311 29 072 Total (net) receivables 393 249 367 833 Impairment allowance for receivables 4 902 17 493 Gross receivables 398 151 385 326
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 51 The increase in trade receivables compared with the end of the previous year was primarily due to a lengthening of the receivables turnover cycle. All the trade receivables specified above are receivables under contracts with customers and they do not contain any material financing element. Trade receivables do not earn interest and have customary payment terms of 30 to 90 days. The Group has an appropriate policy of selling solely to verified customers. Consequently, in the opinion of management, there is no additional credit risk beyond the level covered by the impairment allowance for doubtful receivables applicable to the Group’s trade receivables. The impairment allowance relates entirely to receivables arising from contracts with customers. The decrease in the impairment allowance for receivables was mainly attributable to its utilisation and reversal in H1 2026. Below is an analysis of trade receivables that as at 30 June 2026 and 31 December 2025 were overdue but not treated as uncollectible: Total Not overdue Overdue but collectible 06 < 30 days 30-60 days 60-90 days 90-120 days >120 days As at 30 June 2026 349 975 315 277 30 554 2 823 521 801 - As at 31 December 2025 305 028 238 089 41 341 6 195 5 833 3 282 10 289 Receivables over 120 days in the prospective assessment of the Company’s management qualify as collectible and therefore no impairment was recognised. The maturities of other receivables from third parties do not exceed 360 days. The Group presents sales discounts per balance with receivables. The reason for this presentation is that they are mostly offset against trade receivables from individual customers. The amounts of rebates granted by individual companies amounted to just under PLN 36 million in 2026. 17. Other non-financial assets As at 30 June 2026, unaudited As at 31 December 2025 Insurance costs 3 122 816 Lease fees 277 399 Advance payments for services 37 751 40 776 of which for unclaimed gas 28 476 28 476 Rent 384 431 Other 5 874 6 361 Total 47 407 48 784 – current 47 136 47 115 – non-current 271 1 668 18. Interest-bearing loans On 26 March 2026, Rottneros AB entered into an addendum to the loan agreement with Danske Bank, originally concluded in December 2024 for a period of three years. The annex adapts the financing terms to the current financial situation of the company and the Rottneros Group as a whole. Under it, the company has been allowed an additional SEK 75 million under its revolving credit facility (RCF), over and above the existing limit of SEK 225 million. In addition, the document introduces updated financial covenants and is set to last until the end of April 2027. As part of the addendum concluded, Rottneros has pledged security over its entire shareholding in Vallviks Bruk AB and Nykvist Skogs AB.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 52 During the period covered by this report, the Group made a partial repayment of its debt to Bank Pekao S.A. in the amount of PLN 15,526 thousand and to Nordea Bank Abp in the amount of PLN 388 thousand. The Group increased its debt following the disbursement of a further tranche of an investment loan from Bank Pekao S.A. in the amount of PLN 25,879 thousand and the Rottneros Group taking out an overdraft facility in the amount of PLN 73,318 thousand. As a result of the Rottneros Group signing an annex to the loan agreement, including the new terms of the loan covenants, part of the current liabilities have been re-presented as non-current liabilities. The other changes to loans as at 30 June 2026, compared to 31 December 2025 result mainly from balance sheet evaluation and payment of interest accrued as at 31 December 2025 and paid in H1 2026. 19. Trade and other payables The value of trade and other payables as at 30 June 2026 amounted to PLN 398,275 thousand (as at 31 December 2025: PLN 434,238 thousand) The decrease in the value of this item compared with the figure at the end of the previous year was due to lower production and reduced purchases of raw materials in H1 2026. As at 30 June 2026 (unaudited) As at 31 December 2025 Trade payables, of which: Due to related parties 154 484 Due to other entities 386 707 433 742 386 861 434 226 Taxes, duties and other liabilities VAT 10 009 8 038 Excise tax 679 432 Withholding tax 2 160 1 948 Real estate tax 901 538 13 750 10 957 Other liabilities Investment commitments 4 905 5 007 Liabilities related to environmental protection 359 372 Prepayments 400 3 966 5 664 9 345 Total 406 275 454 527
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 53 20. Employee liabilities As at 30 June 2026, unaudited As at 31 December 2025 Provision for pensions and similar benefits 21 628 21 061 Payable to employees as salaries 11 110 15 522 Personal Income Tax 5 337 5 414 Tax on costs relating to employees’ pension schemes 10 041 3 142 Social benefit liabilities 22 240 23 976 Unused leave 44 987 39 253 Bonuses 8 725 5 509 Other employee liabilities 990 4 595 Total 125 058 118 471 – current 105 073 98 551 – non-current 20 011 19 920 21. Deferred tax liability Consolidated balance sheet Consolidated balance sheet Consolidated statement of profit or loss Consolidated statement of profit or loss As at 30 June 2026 (unaudited) As at 31 December 2025 The year ended 30 June 2026 (unaudited) The year ended 30 June 2025 (unaudited) Deferred tax provision Property, plant and equipment 92 021 91 707 314 ( 19 126) Trade receivables 2 333 2 333 - - Hedging instruments 2 001 215 1 786 ( 29) Other - 912 ( 912) - Deferred tax provision 96 355 95 167 1 189 ( 19 154) Consolidated balance sheet Consolidated balance sheet Consolidated statement of profit or loss Consolidated statement of profit or loss As at 30 June 2026 (unaudited) As at 31 December 2025 The year ended 30 June 2026 (unaudited) The year ended 30 June 2025 (unaudited) Deferred tax asset Property plant and equipment and intangible assets 27 27 - 1 Post-employment benefits 2 904 2 904 - - Uninvoiced liabilities 4 572 5 342 ( 770) ( 278) Inventories 1 067 1 496 ( 429) 89 Trade receivables 2 193 3 189 ( 997) ( 418) Hedging instruments 1 847 6 708 ( 4 862) 84 Losses deductible from future taxable income 6 789 - 6 789 - Other 8 126 9 759 ( 1 633) ( 468) Gross deferred tax asset 27 525 29 426 ( 1 902) ( 989) Foreign exchange differences ( 69) ( 1 086)
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 54 Total, of which ( 3 022) 19 251 Changes to deferred tax recognised in other comprehensive income ( 4 463) 50 Net deferred tax asset/provision of which: – Adjustment to presentation 20 654 22 514 – Deferred tax asset 6 871 6 913 – Deferred tax provision 75 700 72 651 22. Share capital There were no changes in share capital as at 30 June 2026 compared to 31 December 2025. 23. Financial instruments The Group uses the following financial instruments: cash on hand and in bank accounts, loans, receivables, liabilities (including those arising from lease agreements) and forward contracts for the purchase of electricity. As at 30 June 2026, the Group held the following financial instruments: cash on hand and in bank accounts, loans, receivables, liabilities (including those arising from lease agreements), a currency swap and a forward contract for the purchase of electricity. 23.1 Fair value of each class of financial instruments The table below sets out selected financial instruments of the Group by their carrying amounts, broken down by category assets and liabilities. Category in compliance with IFRS 9 6-month period ended on 30 June 2026 (unaudited) As at 31 December 2025 6-month period ended on 30 June 2026 (unaudited) As at 31 December 2025 Financial assets Trade and other receivables WwZK 368 287 334 098 *** *** Hedging instruments* IRZ 9 513 301 *** *** Investments in equity instruments 14 311 14 729 *** *** Cash and cash equivalents WwZK 123 517 151 642 *** *** Financial liabilities Loans WwZK 333 603 251 080 333 603 212 549 Leasing liabilities, of which: WwZK 20 521 23 348 – non-current 16 187 18 058 *** *** – current 4 333 5 290 *** *** Trade payables, for the purchase of property, plant and equipment and intangible assets WwZK 391 766 439 233 *** *** Hedging instruments* IRZ 12 452 23 705 *** *** Other 2 419 163 *** *** * derivative hedging instruments meeting the requirements of hedge accounting ** primarily investments in equity instruments Abbreviations used: WwZK – Financial assets/liabilities measured at amortised cost IRZ – Hedge Accounting Instruments at fair value through other comprehensive income (where the instrument is determined to be effective)
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 55 WwWGpWF – financial assets/liabilities measured at fair value through profit or loss The fair value of hedging instruments was determined on the basis of observable data from active markets that are not market quotations. The fair value of loans is estimated using an internal model based on discounting financial flows. As at 30 June 2025 and 31 December 2024, financial instruments according to the valuation hierarchy qualify as Level 3 except for derivatives (Level 2). 24. Other financial liabilities As at 30 June 2026 As at 31 December 2025 (unaudited) Lease liabilities 20 521 23 355 Hedging instruments 12 582 23 766 Other - 163 Total 33 103 47 284 – current 6 918 10 779 – non-current 26 185 36 505 The increase in the value of hedging instrument liabilities is due to the negative valuation of some energy forward contracts. 25. Contingent liabilities and contingent assets As at 30 June 2026, the Capital Group reported: — a bank guarantee in favour of Skatteverket Ludvika for SEK 135 thousand (PLN 52 thousand); 26. Legal claims Arctic Paper S.A. and its subsidiaries are not a party to any legal cases filed in court against them. 27. Tax settlements Regulations related to VAT, corporate income tax and charges related to social insurance are subject to frequent modifications. Those frequent modifications result in unavailability of appropriate points of reference, inconsistent interpretations and few precedents that could apply. Additionally, the applicable regulations contain also certain ambiguities that result in differences of opinion as to legal interpretations of tax regulations – among public authorities and between public authorities and enterprises. Tax settlements and other areas of operations (for instance customs or foreign exchange issues) may be inspected by the authorities that are entitled to impose high penalties and fines as well additional tax liabilities resulting from inspections that have to be paid along with high interest. As a result, tax risk in Poland is higher than in countries with more mature tax systems. Tax settlements may be subject to inspections for five years from the end of the year in which the tax was paid. As a result of inspections, the tax liability of the Group may be increased by additional tax liability. In the opinion of the Group, there is no need to establish additional provisions for any identified and quantifiable tax risk as at 30 June 2026. On 15 July 2016, the Tax Code was amended to incorporate the provisions of the General Anti-Avoidance Rule (GAAR). GAAR is to prevent the development and use of artificial legal structures to avoid tax payments in Poland. GAAR defines tax avoidance as an activity pursued primarily to accomplish tax benefits that under the circumstances would be contradictory to the subject and purpose of the tax regulations. In accordance with GAAR, such activity would not generate tax benefits if the mode of operation was artificial. Any occurrence of (i) unjustified split to operations, (ii) involvement of intermediaries despite no economic justification, (iii) mutually exclusive of compensating elements, and (iv) other similar activities, may be treated as a premise to the existence of artificial activities subject to GAAR. The new regulations require more accurate judgements in the assessment of tax effects of each transaction.
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed consolidated financial statements 56 28. Future contractual investment commitments Future contractual commitments to purchase property plant and equipment concluded until 30 June 2026 and not required to be recognised in the consolidated statement of financial position at that date amounted to PLN 34 million. 29. Transactions with related parties The related parties to the Arctic Paper S.A. Group are as follows: − Thomas Onstad – the corer shareholder of Arctic Paper S.A. holding directly or indirectly over 50% of shares in the Company’s share capital, − Nemus Holding AB – parent company to the Arctic Paper S.A. Group since 3 September 2014, − Munkedal Skog – a subsidiary of Nemus Holding AB, − Key management personnel. Transactions with related parties are carried out at arm’s length. The following table shows the total amounts of transactions entered into with related parties during the six months ended 30 June 2026 and as at 30 June 2026: Data for the period from 01 January 2026 to 30 June 2026 and as at 30 June 2026 Related party Sales of services to related parties Purchases of services from related parties/remuneration Interest – financial income Interest – finance costs Receivables from related parties Loan receivables Liabilities to related parties Nemus Holding AB 216 40 - - - - 8 Thomas Onstad - - - - - - - Munkedals Skog AB - 136 - - - - 72 Key management personnel - 1 354 - - - - 74 Total 216 1 530 - - - - 154 30. Material events after the reporting period There were no other significant events after the end of the reporting period, not included in this report, which could have a material impact on the Group’s financial position. Signatures of the Members of the Management Board Position First and last name Date Signature President of the Management Board CEO Michał Jarczyński 11 August 2026 signed with a qualified electronic signature Member of the Management Board Chief Financial Officer Katarzyna Wojtkowiak 11 August 2026 signed with a qualified electronic signature Member of the Management Board Vice-President for Sales and Marketing Fabian Langenskiöld 11 August 2026 signed with a qualified electronic signature
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 57 Additional notes to the interim condensed separate financial statements provided on pages 63 to 74 constitute an integral part hereof Interim condensed separate financial statements for the period of six months ended on 30 June 2026
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 58 Additional notes to the interim condensed separate financial statements provided on pages 63 to 74 constitute an integral part hereof Interim condensed separate financial statements Interim condensed separate statement of profit statement of profit and loss 3-month period ended on 30 June 2026 6-month period ended on 30 June 2026 3-month period ended on 30 June 2025 6-month period ended on 30 June 2025 Note (unaudited) (unaudited) (unaudited) (unaudited) Continuing operations Revenue from sales of services 3 365 8 237 3 658 7 484 Interest income on loans 5.1 610 1 306 811 1 651 Dividend income 10. 23 082 23 082 41 321 43 778 Sales revenue 27 057 32 625 45 790 52 913 Interest expense to related parties and costs of sales of logistics services (2 221) (4 970) (3 171) (6 096) Profit/(loss) on sales 24 836 27 655 42 619 46 817 Other operating income 45 65 4 36 Administrative expenses 5.2. (4 531) (9 690) (5 435) (10 589) Impairment losses on assets 5.3. - - (424) (424) Other operating expenses (19) (75) (23) (86) Profit/(loss) on operations 20 331 17 955 36 741 35 754 Finance income 102 222 - 3 189 Finance costs (1 983) (5 149) (2 447) (3 232) Gross profit/(loss) 18 450 13 028 34 294 35 711 Income tax - - (622) - Net profit (loss) for the reporting period 18 450 13 028 33 672 35 711 Earnings per share: – basic earnings from the profit/(loss) for the period 0,27 0,19 0,49 0,52 – basic earnings from the profit/(loss) from continuing operations for the period 0,27 0,19 0,49 0,52
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 59 Additional notes to the interim condensed separate financial statements provided on pages 63 to 74 constitute an integral part hereof Interim condensed separate statement of comprehensive income 3-month period ended on 30 June 2026 6-month period ended on 30 June 2026 3-month period ended on 30 June 2025 6-month period ended on 30 June 2025 (unaudited) (unaudited) (unaudited) (unaudited) Net profit/(loss) for the reporting period 18 450 13 028 33 672 35 711 Items to be reclassified to profit/(loss) in future reporting periods: Measurement of financial instruments - - (416) (795) Deferred tax on the measurement of financial instruments 2 574 - - 79 151 Foreign exchange differences on translation of foreign operations 98 73 145 (182) Other net comprehensive income 98 73 (193) (826) Total comprehensive income 18 548 13 101 33 479 34 885
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 60 Additional notes to the interim condensed separate financial statements provided on pages 63 to 74 constitute an integral part hereof Interim condensed separate statement of financial condition As at 30 June 2026 As at 31 December 2025 Note (unaudited) ASSETS Non-current assets Property plant and equipment 12. 928 945 Intangible assets 12. 1 429 1 470 Shares in subsidiaries and joint ventures 6. 1 142 877 1 142 283 Other financial assets 13. 77 644 44 114 Deferred tax 1 463 1 463 1 224 341 1 190 275 Current assets Inventories - - Trade and other receivables 11. 20 871 20 755 Income tax receivables 481 3 463 Other financial assets 13. 19 120 14 787 Other non-financial assets 4 045 12 082 Cash and cash equivalents 8. 16 333 19 660 60 850 70 747 TOTAL ASSETS 1 285 191 1 261 022 EQUITY AND LIABILITIES Equity Share capital 16.1 69 288 69 288 Supplementary capital 16.3 625 736 625 736 Other capital 16.4 282 082 332 802 Foreign exchange differences on translation 16.4 2 236 2 164 Retained earnings/Accumulated losses 13 028 (50 720) Total equity 992 370 979 269 Non-current liabilities Interest-bearing loans, borrowings and bonds 14. 49 679 31 722 Deferred tax liability 2 333 2 333 52 012 34 055 Current liabilities Interest-bearing loans, borrowings and bonds 14. 218 512 219 487 Trade payables 18 501 16 715 Other current liabilities 1 197 8 172 Employee liabilities 2 489 3 212 Income tax liability 110 111 240 809 247 698 TOTAL LIABILITIES 292 821 281 753 TOTAL EQUITY AND LIABILITIES 1 285 191 1 261 022
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Arctic Paper Capital Group/ Interim Condensed Consolidated Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 61 Additional notes to the interim condensed separate financial statements provided on pages 63 to 74 constitute an integral part hereof Interim condensed separate statement of cash flows 6-month period ended on 30 June 2026 6-month period ended on 30 June 2025 Note (unaudited) (unaudited) Cash flows from operating activities Gross profit/(loss) 13 028 35 711 Adjustments for: Depreciation/amortisation 209 219 Foreign exchange gains/(loss) 1 756 (2 710) Net interest and dividends 1 735 798 Profit/(loss) from investing activities (7) - Increase / decrease in receivables and other non-financial assets 7 921 (4 563) Change in liabilities excluding loans and borrowings and other financial liabilities (5 912) 1 885 Income tax 2 981 5 017 Change to liabilities due to cash-pooling (59 490) (133 455) Increase / decrease of loans granted to subsidiaries (37 863) (299) Interest received on loans granted and cash-pooling 1 404 1 697 Interest paid under cash-pooling (1 191) (1 731) Other 239 115 Net cash flows from operating activities (75 191) (97 316) Cash flows from investing activities Disposal of property, plant and equipment and intangible assets 7 - Purchase of property, plant and equipment and intangible assets (151) - Increase of interests in subsidiaries (551) (2 400) Acquisition of shares in subsidiaries (43) - Net cash flows from investing activities (738) (2 400) Cash flows from financing activities Repayment of leasing liabilities - (17) Repayment of loan liabilities (4 744) (14 321) Change in working capital loans 54 441 23 015 Loans received 25 879 5 827 Interest paid (2 045) (1 268) Net cash flows from financing activities 73 531 13 236 Cash and cash equivalents at the beginning of the period 19 660 176 985 Change in cash and cash equivalents (2 398) (86 480) Net foreign exchange differences (929) 2 195 Cash and cash equivalents at the end of the period 8. 16 333 92 699
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 62 Additional notes to the interim condensed separate financial statements provided on pages 63 to 74 constitute an integral part hereof Interim condensed separate statement of changes in equity Attributable to the shareholders of the Parent Company Share capital Supplementary capital Foreign exchange differences on translation of foreign operations Other capital Retained earnings (Accumulated losses) Total equity As at 01 January 2026 69 288 625 736 2 164 332 802 (50 720) 979 269 Net profit/(loss) for the period - - - - 13 028 13 028 Other net comprehensive income for the period - - 73 - - 73 Total comprehensive income for the period - - 73 - 13 028 13 101 Dividend distribution - - - - - - Coverage of losses from previous years - - (50 720) 50720* - As at 30 June 2026 (unaudited) 69 288 625 736 2 236 282 082 13 028 992 370 *The balance of retained earnings as at 1 January 2026 included outstanding losses from previous years. In accordance with Resolution No. 9/2026 and Resolution No. 10/2026 of the Annual General Meeting of Arctic Paper S.A. held on 18 June 2026, these losses were covered from the net profit for 2025 and from the reserve capital respectively; consequently, as at 30 June 2026, the balance of retained earnings comprises solely the financial result for the current period. Attributable to the shareholders of the Parent Company Share capital Supplementary capital Foreign exchange differences on translation of foreign operations Other capital Retained earnings (Accumulated losses) Total equity As at 01 January 2025 69 288 625 736 2 571 136 588 130 520 964 703 Net profit/(loss) for the period - - - - 35 711 35 711 Other net comprehensive income for the period - - (182) (644) - (826) Total comprehensive income for the period - - (182) (644) 35 711 34 885 Financial profit distribution - - - 197 292 (197 292) - Dividend distribution - - - - - As at 30 June 2025 (unaudited) 69 288 625 736 2 389 333 236 (31 061) 999 588
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 63 Additional explanatory notes 1. General information 1.2 Name, registered office, object of activity Arctic Paper S.A. (“Company”, “Entity”) is a joint stock company established with Notary deed on 30 April 2008 with its stock publicly listed. The Company’s registered office is located in Kostrzyn, at ul. Fabryczna 1. The Company has also a foreign branch in Göteborg, Sweden. The Company is entered in the National Court Register maintained by the District Court in Zielona Góra – 8th Commercial Division of the National Court Register, under KRS number 0000306944. The Company holds statistical number REGON 080262255. The duration of the Company is indefinite. Nemus Holding AB is the direct Parent Company to the Company. The ultimate parent company of the Group that prepares the consolidated financial statements is Nemus Holding AB, which is owned by Thomas Onstad. Holding operations is the core business of the Company. The interim condensed separate financial statements of the Company with respect to the interim condensed separate statement of profit or loss, statement of comprehensive income, statement of cash flows and statement of changes to equity, cover the period of 6 months ended on 30 June 2026 and contain comparable data for the period of 6 months ended on 30 June 2025; and in the interim condensed separate statement of financial condition, it presents data as at 30 June 2026 and as at 31 December 2025. The interim condensed separate statement of comprehensive income, the interim condensed separate statement of profit or loss include data for the three months ended 30 June 2026 and comparative data for the three months ended 30 June 2025. 1.3 Identification of the separate financial statements The Company made its interim condensed consolidated financial statements for the period of 6 months ended on 30 June 2025 which were approved for publication by the Management Board on 11 August 2026. 1.4 Composition of the Company’s Management Board As at 30 June 2026, the Parent Company’s Management Board was composed of: — Michał Jarczyński – President of the Management Board appointed on 10 December 2018, with effect from 1 February 2019; — Katarzyna Wojtkowiak – Member of the Management Board appointed on 29 May 2023; — Fabian Langenskiöld – Member of the Management Board appointed on 14 August 2023. Until the date hereof, there were no changes to the composition of the Management Board of the Parent Company. 1.5 Composition of the Company’s Supervisory Board As at 30 June 2026, the Company’s Supervisory Board was composed of: — Per Lundeen – Chair of the Supervisory Board appointed on 22 September 2016 (appointed to the Supervisory Board on 14 September 2016); — Roger Mattsson – Deputy Chair of the Supervisory Board appointed on 22 September 2016 (appointed as a Member of the Supervisory Board on 14 September 2014); — Thomas Onstad – Member of the Supervisory Board appointed on 22 October 2008; — Zofia Dzik – Member of the Supervisory Board appointed on 22 June 2021; — Anna Jakubowski – Member of the Supervisory Board appointed on 22 June 2021; Until the date hereof, there were no changes to the composition of the Supervisory Board of the Company. 1.6 Approval of the financial statements On 11 August 2026, these interim condensed separate financial statements of the Company for the 6-month period ended on 30 June 2026 were approved for publication by the Management Board.
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 64 1.7 Investments by the Company The Company holds interests in the following subsidiaries: Unit Registered office Group Profile Company’s interest in the equity of the subsidiaries 11 August 2026 30 June 2026 31 December 2025 Arctic Paper Kostrzyn S.A. Poland, Fabryczna 1, 66-470 Kostrzyn nad Odrą Paper production 100% 100% 100% Arctic Paper Munkedals AB Sweden, SE 455 81 Munkedal Paper production 100% 100% 100% Arctic Paper Investment AB Sweden, Box 383, 401 26 Göteborg Holding activities 100% 100% 100% Arctic Paper UK Limited United Kingdom, 222 Bishopsgate, EC2M 4QD London Trading company 100% 100% 100% Arctic Paper Baltic States SIA Latvia, K. Vardemara iela 33-20, Riga LV-1010 Trading company 100% 100% 100% Arctic Paper Deutschland GmbH Germany, Am Sandtorkai 72, 20457 Hamburg Trading company 100% 100% 100% Arctic Paper Benelux S.A. Belgium, Interleuvenlaan 62 bus 14, B-3001 Heverlee Trading company 100% 100% 100% Arctic Paper Schweiz AG Switzerland, Gutenbergstrasse 1, CH-4552 Derendingen Trading company 100% 100% 100% Arctic Paper Italia srl Italy, Via Chiaravalle 7, 20122 Milan Trading company 100% 100% 100% Arctic Paper Danmark A/S Denmark, Korskildelund 6 DK-2670 Greve Trading company 100% 100% 100% Arctic Paper France SAS France, 30 rue du Chateau des Rentiers, 75013 Paris Trading company 100% 100% 100% Arctic Paper Espana SL Spain, Avenida Diagonal 472-474, 9-1 Barcelona Trading company 100% 100% 100% Arctic Paper Papierhandels GmbH Austria, Hainborgerstrasse 34A, A-1030 Wien Trading company 100% 100% 100% Arctic Paper Polska Sp. z o.o. Poland, Okrężna 9, 02-916 Warszawa Trading company 100% 100% 100% Arctic Paper Norge AS Norway, Eikenga 11-15, NO-0579 Oslo Trading company 100% 100% 100% Arctic Paper Sverige AB Sweden, SE 455 81 Munkedal Trading company 100% 100% 100% Arctic Power Sp. z o.o. (formerly Arctic Paper East Sp. z o.o.) Poland, Fabryczna 1, 66-470 Kostrzyn nad Odrą Energy projects 100% 100% 100% Arctic Paper Investment GmbH Germany, Am Sandtorkai 72, D-20457 Hamburg Holding activities 100% 100% 100% Kostrzyn Packaging Spółka z o.o. Poland, Fabryczna 1, 66-470 Kostrzyn nad Odrą Production of packaging 50% 50% 50% Rottneros AB Sweden, Box 144 826 23 Söderhamn Activities of holding companies 55% 55% 55% Arctic Paper Fiber Solutions, INC. USA, Corporation Trust Center 1209 Orange Street, City of Wilmington, County of New Castle State of Delaware 19801 Trading company 100% 100% 100%* * Arctic Paper Fiber Solutions, INC. As at the balance sheet date of 31 December 2025, no capital contributions had been made. Arctic Paper S.A holds 100% of the shares
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 65 As at 30 June 2026 and as at 31 December 2025, the share in the overall number of votes held by the Company in its subsidiaries was equal to the share of the Company in the share capital of those entities. 2. Accounting Policies 2.1 Basis of preparation of the interim condensed financial statements These interim condensed separate financial statements have been prepared in compliance with International Accounting Standard No. 34. These interim condensed separate financial statements have been presented in Polish zloty (“PLN”) and all values are rounded to the nearest thousand (PLN ‘000) except as stated otherwise. These interim condensed separate financial statements have been prepared based on the assumption that the Company will continue as a going concern in the foreseeable future. The interim condensed financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Company’s annual financial statements for the year ended on 31 December 2025. 2.2 Functional currency and presentation currency The Polish zloty (PLN) is the functional currency and the presentation currency of the Company in these financial statements. 2.3 Changes in applied accounting policies The accounting policies used in the preparation of the financial statements are consistent with those used in the preparation of the Company’s financial statements for the year ended 31 December 2025. The Company did not decide to adopt earlier other standards, interpretations or amendments that were issued but are not yet effective for periods commencing on 1 January 2026. 2.4 New and amended standards and interpretations applied The following new standards and amendments to existing standards, which came into force in 2026, have been applied for the first time in these interim financial statements: a) Changes in the classification and measurement of financial instruments – Amendments to IFRS 9 and IFRS 7 In May 2024, the IASB published amendments to IFRS 9 and IFRS 7 to: clarify the recognition and derecognition dates for certain financial assets and liabilities, with an exemption for certain financial liabilities settled through electronic funds transfer; clarify and add further guidance on assessing whether a financial asset meets the SPPI criteria; add new disclosures for certain instruments whose contractual terms may alter cash flows; and update disclosures on equity instruments measured at fair value through other comprehensive income (FVOCI). b) Annual Improvements to IFRS “Annual Improvements to IFRS” introduces changes to the standards: IFRS 1 “First-time Adoption of International Financial Reporting Standards”, IFRS 7 “Financial Instruments: Disclosures”, IFRS 9 “Financial Instruments”, IFRS 10 “Consolidated Financial Statements” and IAS 7 “Statement of Cash Flows”. The amendments provide clarifications and clarify the standards’ guidance on recognition and measurement. c) Contracts relating to electricity dependent on natural factors: Amendments to IFRS 9 and IFRS 7 In December 2024, the Council published the amendments to help companies better recognise the financial effects of contracts relating to natural dependent electricity, which are often in the form of power purchase agreements (PPA). The current guidance may not fully capture the impact of these contracts on the company’s performance. To enable companies to better reflect these contracts in their financial statements, the Board has amended IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: disclosures. These changes include: - clarifying the application of the “own use” criterion; - allowing hedge accounting where these contracts are used as hedging instruments; - adding new disclosures to enable stakeholders to understand the impact of these contracts on financial performance and cash flows.
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 66 2.5 New standards and interpretations that have been published and are not yet effective In these interim financial statements, the Company has not decided to early apply the following published standards, interpretations or amendments to existing standards before their effective date: a) IFRS 18 “Presentation and Disclosures in Financial Statements” In April 2024, the Council published the new standard IFRS 18 “Presentation and Disclosures in Financial Statements”. The standard is intended to replace IAS 1 – Presentation of Financial Statements and will be effective from 1 January 2027. The changes to the superseded standard mainly concern three issues: the statement of profit or loss, required disclosures about performance measures and issues related to the aggregation and disaggregation of information contained in financial statements. The published standard will be effective for financial statements for periods beginning on or after 1 January 2027. b) IFRS 19 “Subsidiaries Without Public Accountability: Disclosure of Information” In May 2024, the Board issued a new accounting standard, IFRS 19, which can be adopted by certain subsidiaries applying IFRS accounting standards to improve the effectiveness of disclosures in their financial statements. The new standard introduces simplified and limited disclosure requirements. As a result, the qualifying subsidiary applies the requirements of other IFRS accounting standards with the exception of the disclosure requirements and instead applies the limited disclosure requirements of IFRS 19. Eligible subsidiaries are entities that are not subject to so-called public accountability as defined in the new standard. In addition, IFRS 19 requires the ultimate or intermediate parent of the entity to prepare publicly available consolidated financial statements in accordance with IFRS Accounting Standards. Eligible entities may choose to apply the guidance of the new IFRS 19 for financial statements prepared for periods beginning on or after 1 January 2027. At the date of these financial statements, these amendments have not yet been approved by the European Union c) Amendments to IFRS 19 “Subsidiaries without public accountability: disclosure of information. In August 2025 the Board published amendments to IFRS 19 to support qualifying subsidiaries by reducing the disclosure requirements for standards and amendments to standards issued between February 2021 and May 2024.The amendments include the following standards: IFRS 18: Presentation and Disclosures in Financial Statements; Amendments to IAS 7 and IFRS 7 – Supplier Financing Arrangements; Amendments to IAS 12 – International Tax Reform; Amendments to IAS 21 – Non-convertibility of Currencies; Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments. With these changes, IFRS 19 incorporates all updates to IFRS standards that will be effective from 1 January 2027, the effective date of IFRS 19. At the date of these financial statements, these amendments have not yet been approved by the European Union d) Amendments to IAS 28 “Investments in Associates and Joint Ventures” In June 2026, the International Accounting Standards Board published targeted amendments to IAS 28 “Investments in Associates and Joint Ventures”. These amendments clarify which investments in associates and joint ventures may be measured at fair value in accordance with the option provided for in IAS 28. The amendments were introduced in response to differences in interpretation regarding the relationship between the option to measure at fair value provided for in IAS 28 and the new requirements of IFRS 18 “Presentation and Disclosures in Financial Statements”, in particular with regard to the classification of revenue and expenses in the Statement of profit or loss. The amendments will take effect from the date on which an entity first applies IFRS 18, which will generally be for annual reporting periods beginning on or after 1 January 2027. Earlier application is also permitted if an entity decides to adopt IFRS 18 early. At the date of these financial statements, these amendments have not yet been approved by the European Union e) Amendments to IAS 21 "The Effects of Changes in Foreign Exchange Rates – Translation into the Presentation Currency in Hyperinflationary Economies" The International Accounting Standards Board announced in November 2025 amendments that clarify how companies should convert financial statements from a non-hyperinflationary currency to a hyperinflationary currency. These narrow scope changes aim to improve the usability of the information obtained in a cost-effective manner. Developed in response to stakeholder feedback, the changes are intended to reduce diversity of practice and provide a clearer basis for reporting in a hyperinflationary currency. The amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” will be effective for annual periods beginning 1 January 2027. The Company may elect to apply them early. At the date of these financial statements, these amendments have not yet been approved by the European Union
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 67 f) IFRS 20 “Regulatory Assets and Regulatory Liabilities” In May 2026, the International Accounting Standards Board published a new standard, IFRS 20 Regulatory Assets and Regulatory Liabilities. The standard has been developed for companies operating in regulated sectors and is intended to help investors better understand how tariff regulations affect the financial performance, financial position and future cash flow prospects of regulated companies. IFRS 20 introduces uniform rules for recognising the effects of timing differences relating to regulated rates, which arise when the timing of the provision of regulated services differs from the timing of the collection of fees from customers. In such cases, the revenue reported to date may not have fully reflected the company’s actual operating activities. The new standard requires these differences to be recognised in the financial statements. The standard will be particularly important for organisations providing essential services in sectors such as energy, gas, water, motorway and rail infrastructure, airport services, postal services and other regulated sectors. The standard supplements the requirements of IFRS 15 Revenue from Contracts with Customers and replaces the previous IFRS 14 Deferred Balances from Regulated Activities, which has not been endorsed by the European Union. In accordance with the provisions of IFRS 20, it is due to come into force for reporting periods beginning on or after 1 January 2029, although earlier application is permitted. At the date of these financial statements, these amendments have not yet been approved by the European Union g) IFRS 14 “Regulatory accruals” This standard allows entities that prepare their financial statements in accordance with IFRS for the first time (on or after 1 January 2016) to recognise amounts arising from price-regulated activities in accordance with existing accounting policies. To improve comparability, with entities that already apply IFRS and do not report such amounts, under published IFRS 14, amounts arising from regulated price activities should be presented as a separate line item in both the statement of financial position and the statement of profit or loss and statement of other comprehensive income. By a decision of the European Union, IFRS 14 will not be endorsed. h) Amendments to IFRS 10 and IAS 28 on the sale or contribution of assets between an investor and its associates or joint ventures The amendments resolve the current inconsistency between IFRS 10 and IAS 28. The accounting treatment depends on whether the non- monetary assets sold or contributed to the associate or joint venture constitute a “business”. Where non-monetary assets constitute a “business”, the investor shows a full profit or loss on the transaction. If, on the other hand, the assets do not meet the definition of a business, the investor only recognises a gain or loss to the extent of the portion representing the interests of other investors. The amendments were published on 11 September 2014. At the date of these financial statements, approval of this amendment is deferred by the European Union. 3. Seasonality The Company’s activities, particularly with regard to dividends from associated companies, are seasonal in nature, with the majority of dividends being paid in Q1 and Q2 of the calendar year. For this reason, the Company’s reported results show significant fluctuations during these periods of the year. 4. Information on business segments Arctic Paper S.A. is a holding company, providing services mostly to the Group companies. The Company operates in one segment, the results are assessed by the Management Board on the basis of financial statements. The table below presents revenue from services sales, interest income on loans and dividend income for the 6-month period ended on 30 June 2026 and as at 30 June 2025 in geographical presentation. The geographical split of revenue relies on the location of registered offices of the subsidiaries of Arctic Paper S.A.
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 68 Continuing operations 6-month period ended on 30 June 2026 6-month period ended on 30 June 2025 (unaudited) (unaudited) Geographical information Poland 25 014 43 808 Foreign countries, of which: – Sweden 6 340 6 219 – Germany - 1 460 – Other 1 272 1 426 Total 32 625 52 913 5. Income and costs 5.1 Interest income and expense Interest income covers interest income on loans granted to other companies in the Group. Interest expense covers interest income on loans received from other companies in the Group and from banks. Interest expense covers interest income on loans received from Group companies and is disclosed as costs of sales. 5.2 Administrative expenses The administrative expenses include costs of the administration of the Company operation, costs of services provided for the companies in the Group and all costs incurred by the Company for the purposes of pursuing holding company activities. In H1 2026, these costs amounted to PLN 9,690 thousand (in H1 2025: PLN 10,589 thousand). The decrease of the administrative expenses is due to lower costs of services provided to the Company by external entities. 5.3 Change in impairment losses on assets In H1 2026, the Company did not recognise any impairment losses on its assets. 6. Investments in subsidiaries and joint ventures The value of investments in subsidiaries and joint ventures at 30 June 2026 and 31 December 2025 was as follows: As at 30 June 2026 As at 31 December 2025 (unaudited) Arctic Paper Kostrzyn S.A. 442 535 442 535 Arctic Paper Munkedals AB 88 175 88 175 Rottneros AB 170 747 170 747 Arctic Paper Investment AB, of which: 390 567 390 567 Arctic Paper Investment AB (shares) 307 858 307 858 Arctic Paper Investment AB (loans) 82 709 82 709 Arctic Paper Investment AB (impairment loss) - - Arctic Paper Investment GmbH - - Arctic Paper Investment GmbH (shares) 120 031 120 031 Arctic Paper Investment GmbH (impairment loss) (120 031) (120 031) Arctic Paper Sverige AB 2 936 2 936 Arctic Paper Sverige AB (shares) 11 721 11 721 Arctic Paper Sverige AB (impairment loss) (8 785) (8 785) Arctic Paper Danmark A/S 2 947 2 947 Arctic Paper Danmark A/S (shares) 5 539 5 539 Arctic Paper Danmark A/S ((impairment loss) (2 592) (2 592)
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 69 Arctic Paper Deutschland GmbH 4 977 4 977 Arctic Paper Norge AS 516 516 Arctic Paper Norge AS (shares) 3 194 3 194 Arctic Paper Norge AS (impairment loss) (2 678) (2 678) Arctic Paper Italy srl 738 738 Arctic Paper UK Ltd. 522 522 Arctic Paper Polska Sp. z o.o. 406 406 Arctic Paper Benelux S.A. 429 387 Arctic Paper France SAS 326 326 Arctic Paper Espana SL 196 196 Arctic Paper Papierhandels GmbH 194 194 Arctic Paper Power Sp. z o.o. (formerly Arctic Paper East Sp. z o.o.) 10 000 10 000 Arctic Paper Baltic States SIA 64 64 Arctic Paper Schweiz AG 61 61 Kostrzyn Packaging Spółka z o.o. 25 990 25 990 Arctic Paper Fiber Solutions Inc. 551 - Total 1 142 877 1 142 283 In May 2026, Arctic Paper S.A. made a capital injection of PLN 551 thousand into its subsidiary Arctic Paper Fiber Solutions, and in June it purchased shares in Arctic Paper Benelux S.A. for PLN 43 thousand. The value of investments in subsidiaries was disclosed on the basis of historic costs. 7. Impairment of assets in subsidiaries and joint ventures As at 30 June 2026 and 30 June 2025, the Group did not identify any indicators of impairment of its investments in Arctic Paper Kostrzyn, Arctic Paper Munkedals and Arctic Paper Grycksbo. Consequently, the Group did not perform impairment tests for these entities. As at 30 June 2026, an impairment test was performed for the cash-generating unit represented by the Rottneros Group. This cash-generating unit is allocated to the Pulp segment. The recoverable amount of the cash-generating unit was determined based on its value in use using the discounted cash flow method. In calculating the value in use of the net assets allocated to the cash-generating unit, a discount rate (WACC) of 10.9% was applied and the forecast period covered the years 2026 to 2030. The projected cash flows included a terminal period extending beyond five years due to the Group’s strategy assuming the continued operation of the cash-generating unit for an indefinite period. As at 30 June 2026, the total carrying amount of the investments in the Rottneros Group amounted to PLN 170,747 thousand. The recoverable amount of the cash-generating unit as at 30 June 2026 was determined as its value in use and amounted to PLN 780,896 thousand (as at 30 June 2025: PLN 1,002,506 thousand). The recoverable amount of the net assets allocated to the cash-generating unit exceeded the carrying amount of the investments in the Rottneros Group recognised in the financial statements as at 30 June 2026 and 31 December 2025. Therefore, the impairment test did not indicate any impairment of these investments. 8. Cash and cash equivalents For the purposes of the interim condensed separate statement of cash flow, cash and cash equivalents include the following items: As at 30 June 2026 As at 30 June 2025 (unaudited) (unaudited) Cash in bank and on hand 16 333 92 699 Short-term deposits (available on request) - - Total 16 333 92 699
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 70 9. Dividend paid and proposed Dividend is paid based on the net profit disclosed in the separate annual financial statements of Arctic Paper S.A. after covering losses carried forward from last years. In accordance with the provisions of the Code of Commercial Partnerships and Companies, the Company is obliged to establish supplementary capital to cover potential losses. At least 8% of the profit for the financial year disclosed in the separate financial statements of the Company should be transferred to the category of capital until the capital has reached the amount of at least one third of the share capital of the Parent Company. The use of supplementary capital and reserve funds is determined by the General Meeting; however, a part of supplementary capital equal to one third of the share capital can be used solely to cover the losses disclosed in the separate financial statements of the Company and cannot be distributed to other purposes. As on the date hereof, the Company had no preferred shares. The possibility of disbursement of potential dividend by the Company to its shareholders depends on the level of payments received from its subsidiaries. Risks relating to the Company’s ability to pay dividends are described in the Risk Factors section of the annual report for 2025. In connection with the term and revolving loan agreements signed on 31 October 2025, the Company’s ability to pay dividends is subject to the Group meeting certain financial ratios in the period prior to payment (as that term is defined in the term and revolving credit facility agreement) and there being no event of default (as that term is defined in the term and revolving loan agreement). The Company did not pay a dividend in 2026. On 19 February 2026, the Management Board of Arctic Paper S.A. decided to temporarily suspend the application of the provisions of the dividend policy with regard to the payment of dividends for 2025, adopted pursuant to the Management Board’ resolution of 11 July 2022, and will not recommend to the Company’s General Meeting the payment of dividends. 10. Dividend received The dividend income disclosed in the comprehensive financial statement contains the dividend income received from: − Arctic Paper Kostrzyn S.A. in the amount of PLN 21,809 thousand, − Arctic Paper France SAS in the amount of PLN 849 thousand, − Arctic Paper Baltic States SIA, in the amount of PLN 424 thousand. 11. Trade and other receivables As at 30 June 2026, trade receivables and other receivables were PLN 116 thousand higher than at 31 December 2025. 12. Property plant and equipment and intangible assets 12.1 Purchases and disposal During the 6-month period ending 30 June 2026, the Company acquired property, plant and equipment with a value of PLN 151 thousand. During the same period, depreciation charges amounted to PLN 209 thousand (in the corresponding period of 2025: PLN 219 thousand). 12.2 Impairment losses In H1 2026, there were no grounds for recognising impairment losses on assets. Consequently, the Company has not recognised any write- downs in this respect. 13. Other financial assets In H1 2026, the Company granted loans to Group entities totalling PLN 40,737 thousand. The funds were allocated primarily to finance the pellet factory construction project being carried out by Arctic Paper Grycksbo AB and the operations of Kostrzyn Packaging Sp. z o.o. During the period under review, further tranches of the loan to Arctic Paper Grycksbo AB were disbursed, totalling PLN 25,879 thousand. In addition, the Company granted loans totalling PLN 14,858 thousand to Kostrzyn Packaging Sp. z o.o., comprising PLN 3,000 thousand and EUR 2,800 thousand. 14. Interest-bearing loans, borrowings and bonds In connection with the term loan and revolving credit facility agreement signed on 31 October 2025, the Company has undertaken to maintain the Group’s financial ratio set out therein, calculated at the end of each quarter. As at 30 June 2026, the Company has maintained the ratio required by the loan agreement concluded with the consortium of financing banks (Pekao S.A., Santander Bank Polska S.A. and BNP Paribas Bank Polska S.A.).
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 71 In accordance with the loan agreement, in H1 2026 the Company repaid principal instalments and paid interest of PLN 5,589 thousand. Other changes in the value of loans and credits are attributable, amongst other things, to a decrease in group cash-pooling liabilities (PLN -59,490 thousand) and a change in working capital loans of PLN 54,441 thousand. Furthermore, in H1 2026, the Company received further tranches of an investment loan provided by a consortium of banks, totalling PLN 25,879 thousand, earmarked for the construction of a pellet factory. 15. Income tax receivables As of 1 January 2022, Arctic Paper SA and Arctic Paper Kostrzyn SA have formed a Tax Group and jointly account for corporate income tax. In accordance with the decision of the Management Board, the Issuer is a direct tax settling entity with the tax office, hence an item of income tax receivables of PLN 481 thousand appeared in the balance sheet. 16. Share capital and supplementary capital/reserve funds 16.1 Share capital As at 30 June 2026, there were no changes in the Company’s share capital compared to 31 December 2025. 16.2 Major shareholders As at 30 June 2026 As at 31 December 2025 Share in the share capital Share in the total number of votes Share in the share capital Share in the total number of votes Thomas Onstad 68,26% 68,26% 68,26% 68,26% indirectly via 64,19% 64,19% 60,58% 60,58% Nemus Holding AB 63,32% 63,32% 59,71% 59,71% other entity 0,87% 0,87% 0,87% 0,87% directly 4,07% 4,07% 7,68% 7,68% Other 31,74% 31,74% 31,74% 31,74% 16.3 Supplementary capital The supplementary capital amounted to PLN 625,736 thousand as at 30 June 2026. The amount of the reserve fund remained unchanged compared with the end of 2025 16.4 Other capital Other capital amounted to PLN 282,082 thousand as at 30 June 2026, compared with PLN 332,802 thousand as at 31 December 2025. The decrease in the value of other equity was primarily due to the allocation of PLN 50,720 thousand to cover losses from previous years 16.5 Foreign exchange differences on translation of investments in foreign entities Swedish krona is the functional currency of the Company’s foreign branch. As at the balance sheet date, the assets and liabilities of the branch are translated into the Company’s presentation currency at the exchange rate prevailing on its interim condensed statement of profit or loss, comprehensive income statement and statement of changes in equity are translated using the average weighted exchange rate for the relevant reporting period. The foreign exchange differences on translation are recognised in other total comprehensive income and cumulated in a separate equity item. 16.6 Retained profit and restrictions in dividend distribution In accordance with the provisions of the Code of Commercial Partnerships and Companies, the Company is obliged to establish supplementary capital to cover potential losses. At least 8% of the profit for the financial year disclosed in the financial statements of the Company should be transferred to the category of the capital until the capital has reached the amount of at least one third of the share capital. The use of
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 72 supplementary capital and reserve funds is determined by the General Meeting; however, a part of supplementary capital may be used solely to cover the losses disclosed in the financial statements and may not be distributed for other purposes. As at 30 June 2026, there are restrictions on the payment of dividends, as set out in Note 9. 17. Financial instruments The company holds the following financial instruments: cash in bank accounts, loans, borrowings, receivables, finance lease liabilities and other liabilities. 17.1 Fair value of each class of financial instruments The table below presents the selected financial instruments held by the Company by carrying amount and split into individual assets and liabilities. Carrying amount Category in compliance with IFRS 9 As at 30 June 2026 As at 31 December 2025 Financial assets Other (non-current) financial assets WwZK 77 644 44 114 Trade and other receivables WwZK 20 871 20 755 Cash and cash equivalents WwZK 16 333 19 660 Other (current) financial assets WwZK 19 120 14 788 Total 133 968 99 316 Financial liabilities Interest-bearing loans, borrowings and bonds WwZK 268 191 251 209 Trade payables WwZK 18 501 16 715 Finance lease liabilities/other liabilities WwZK 1 197 - Total 287 889 267 924 Abbreviations used: WwZK – Financial assets/liabilities measured at amortised cost WwWGpWF – financial assets/liabilities measured at fair value through profit or loss IRZ – Hedge accounting instruments The fair value of loans stood at PLN 268,191 thousand as at 30 June 2026 and at PLN 251,209 thousand as at 31 December 2025. As at 30 June 2026 and 31 December 2025, the Company did not hold any active derivatives. All collateral arrangements have expired following the repayment of variable-rate loans at the end of 2025. 18. Contingent liabilities and contingent assets As at 30 June 2026, the Company had no contingent liabilities. 19. Transactions with related parties The table below presents the total amount of transactions concluded with related parties within the period of 6 months ended on 30 June 2026 and as at 30 June 2025 and as at 30 June 2026 and as at 31 December 2025:
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 73 Related party Sales to related parties Interest – operational income Dividend received Interest – finance costs Guarantees obtained – other finance costs Receivables from related parties of which overdue Loan receivables Liabilities to related parties including overdue, after the payment date Loan liabilities Parent company: Nemus Holding AB 2026 2 - - - - - - - - - 2025 2 - - - - - - - - - - Subsidiaries 2026 8 237 1 306 23 082 1 191 1 516 50 828 29 911 243 739 61 - 125 558 2025 7 484 1 651 43 778 1 731 1 723 50 539 29 911 205 877 7 478 - 185 047 Total 2026 8 239 1 306 23 082 1 191 1 516 50 828 29 911 243 739 61 - 125 558 impairment adjustments - - - - - (29 911) (29 911) (64 266) - - - presentation as interests in subsidiaries - - - - - - - (82 709) - - - 2026 following impairment adjustments and changes to presentation 8 239 1 306 23 082 1 191 1 516 20 917 - 96 764 61 - 125 558 Total 2025 7 486 1 651 43 778 1 731 1 723 50 539 29 911 205 877 7 478 - 185 047 impairment adjustments - - - - - (29 911) - (64 266) - - - presentation as interests in subsidiaries - - - - - - - (82 709) - - - 2025 following impairment adjustments and changes to presentation 7 486 1 651 43 778 1 731 1 723 20 628 29 911 58 901 7 478 - 185 047
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Arctic Paper Capital Group/ Consolidated Semi-Annual Report for the period of 6 months ended on 30 June 2026 Interim condensed separate financial statements 74 20. Events after the end of the reporting period There were no other significant events after the end of the reporting period, not included in this report, which could have a material impact on the Group’s financial position. . Signatures of the Members of the Management Board Position First and last name Date Signature President of the Management Board CEO Michał Jarczyński 11 August 2026 signed with a qualified electronic signature Member of the Management Board Chief Financial Officer Katarzyna Wojtkowiak 11 August 2026 signed with a qualified electronic signature Member of the Management Board Vice-President for Sales and Marketing Fabian Langenskiöld 11 August 2026 signed with a qualified electronic signature
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www.arcticpaper.com Head Office Branch in Sweden Arctic Paper S.A. Fabryczna 1, Östra Hamngatan 30–34 PL-66470 Kostrzyn nad Odrą, Poland SE-411 09 Göteborg, Sweden Phone +48 95 7210 500 Phone: +46 10 451 8000 Investor relations: ir@arcticpaper.com © 2026 Arctic Paper S.A.
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Translation note: This version of our report is a translation from the original, which was prepared in Polish. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of informa tion, views or opinions, the original language version of our report takes precedence over this translation. PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp. k., Nowy Rynek, ul. Wierzbięcice 1A, 61-569 Poznań, Polska T: +48 (61) 851 1500, F: +48 (61) 851 1501, www.pwc.com PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt Sp. k. is entered into the National Court Register maintained by the District Court for the Capital City of Warsaw, under KRS number 0000750050, NIP 526-021-02-28. The seat of the Company is in Warsaw at Polna 11. www.pwc.com Independent statutory auditor’s report on review of the interim condensed separate financial statements To the Shareholders and the Supervisory Board of Arctic Paper S.A. Introduction We have reviewed the accompanying interim condensed separate statement of financial position of Arctic Paper S.A. (the “Company”) as at 30 June 2026 and the related interim condensed separate statement of profit or loss and other comprehensive income, interim condensed separate statement of changes in equity and interim condensed separate statement of cash flows for the six-month period then ended, and the related additional explanatory notes (the “interim condensed separate financial statements”). Management of the Company is responsible for the preparation and presentation of these interim condensed separate financial statements in accordance with the International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union and with the applicable provisions of Decree of the Minister of Finance dated 6 June 2025 on current and periodic information provided by issuers of securities and the conditions of recognizing as equal information required by the law of a non- Member State (“the Decree”). Our responsibility is to express a conclusion on these interim condensed separate financial statements based on our review.
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2 Independent statutory auditor’s report on review Scope of review We conducted our review in accordance with the National Standard on Review Engagements 2410 in the wording of the International Standard on Review Engagements 2410 Review of interim financial information performed by the independent auditor of the entity as adopted by the resolution of the National Council of Statutory Auditors. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with National Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed separate financial statements are not prepared, in all material respects, in accordance with the International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union and with the provisions of the Decree. Conducting the review on behalf of PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k., a company entered on the list of audit firms with the number 144: Original report is signed in Polish language Krzysztof Zech Key Statutory Auditor No. in the registry 13917 Poznań, 11 August 2026
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Translation note: This version of our report is a translation from the original, which was prepared in Polish. All possible care has been taken to ensure that the translation is an accurate representation of the original. However, in all matters of interpretation of informa tion, views or opinions, the original language version of our report takes precedence over this translation. PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp. k., Nowy Rynek, ul. Wierzbięcice 1A, 61-569 Poznań, Polska T: +48 (61) 851 1500, F: +48 (61) 851 1501, www.pwc.com PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt Sp. k. is entered into the National Court Register maintained by the District Court for the Capital City of Warsaw, under KRS number 0000750050, NIP 526-021-02-28. The seat of the Company is in Warsaw at Polna 11. www.pwc.com Independent statutory auditor’s report on review of the interim condensed consolidated financial statements To the Shareholders and the Supervisory Board of Arctic Paper S.A. Introduction We have reviewed the accompanying interim condensed consolidated statement of financial position of Arctic Paper S.A. (the “Parent Company”) and its subsidiaries (together the “Group”) as at 30 June 2026 and the related interim condensed consolidated statement of profit or loss and other comprehensive income, interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the six-month period then ended, and the related additional explanatory notes (the “interim condensed consolidated financial statements”). Management of the Parent Company is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with the International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union and with the applicable provisions of Decree of the Minister of Finance dated 6 June 2025 on current and periodic information provided by issuers of securities and the conditions of recognizing as equal information required by the law of a non- Member State (“the Decree”). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
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2 Independent statutory auditor’s report on review Scope of review We conducted our review in accordance with the National Standard on Review Engagements 2410 in the wording of the International Standard on Review Engagements 2410 Review of interim financial information performed by the independent auditor of the entity as adopted by the resolution of the National Council of Statutory Auditors. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with National Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with the International Accounting Standard 34 Interim Financial Reporting as adopted by the European Union and with the provisions of the Decree. Conducting the review on behalf of PricewaterhouseCoopers Polska spółka z ograniczoną odpowiedzialnością Audyt sp.k., a company entered on the list of audit firms with the number 144: Original report is signed in Polish language Krzysztof Zech Key Statutory Auditor No. in the registry 13917 Poznań, 11 August 2026