Market announcement

Title

Audited Annual Report 2019

Message

On 30 June 2020, the Supervisory Council of AS Nordic Fibreboard has approved
the company's 2019 audited annual report.

OVERVIEW OF OPERATING RESULTS

Revenue and operating results

Nordic Fibreboard recorded positive EBITDA of EUR 325 thousand for full year 2019
from  continuing operations (vs positive  EUR 428 thousand in 2018 from continuing
operations).  2019 full year EBITDA includes  one-off profit EUR 327 thousand from
revaluation   of  investment  property,  whereas  2018 EBITDA  included  one-off
expenses   of   increase   provision   reserves  by  EUR  25 thousand.  Fibreboard
profitability  was substantially reduced due to the  higher cost of its main raw
material,  woodchips and  to leakages  in one  of its  driers, which resulted in
substantial higher consumption of energy during fourth quarter. Furniture retail
EBITDA became even more negative compared to the closure of stores.

Net  loss  for  full-year  2019 was  EUR 1 127 thousand from continuing operations
(2018:  loss  of  EUR  360 thousand  from continuing operations). Consolidated net
sales  for 2019 were  EUR 13.33 million  from continuing  operations, being  a 6%
increase compared to 2018 (2018: EUR 12.53 million from continuing operations).

Fibreboard  activities showed sales  of EUR 11.75 million  in 2019, this being 7%
sales  increase  from  previous  year,  when  sales  was EUR 11.01 million, due to
securing  new customers  in display  board and  door core  segments. We recorded
sales  increase in  emerging markets  in Asia  and Africa  while also continuing
sales  growth in EU due to securing  new customers. Finland, our largest market,
continued  to  experience  sales  decline  despite Nordic Fibreboard keeping its
market  share within soft density fibreboard segment, thus reflecting the growth
of  other materials for use  in the construction sector,  mainly in new build of
apartment.

Prior  to the sale on 5 September  2019 of our furniture wholesale company Skano
Furniture  Factory, sales in this unit were EUR 1.22 million, compared to the full
year  2018 sales  of  EUR  2.27 million.   This  report considers the wholesale of
furniture as a discontinued operations.

Furniture  retail sales decreased by 1% compared to 2018 (from EUR 1.54 million to
EUR  1.52 million). Sales dropped because Pärnu  mnt salon in Tallinn, Tartu, Riga
and  Vilnius stores were closed in the second half of 2019. Furniture retail for
2019 were  therefore negative  EBITDA EUR  200 thousand (2018  result was negative
EBITDA of EUR 104 thousand).

GROUP'S REVENUE BY ACTIVITY

                                       EUR thousand    | % of net sales |
                                   ---------+--------+------+---------+
                                       2019 |   2018   2019 |    2018
--------------------------------------------+--------+------+----------
  Continued operations                      |        |      |
--------------------------------------------+--------+------+----------
  Fibreboards production and sales   11,745 | 11,007 |  81% |     74%
--------------------------------------------+--------+------+----------
  Furniture retail                    1,515 |  1,536 |  10% |     10%
--------------------------------------------+--------+------+----------
  Real Estate Management                111 |      0 |   1% |      0%
--------------------------------------------+--------+------+----------
  Group transactions                   (38) |   (15) | (0%) |    (0%)
--------------------------------------------+--------+------+----------
  Total                              13,333 | 12,528 |  92% |     85%
                                            |        |      |

--------------------------------------------+--------+------+----------
  Discontinued operations             1,215 |  2,270 |   8% |     15%
--------------------------------------------+--------+------+----------

--------------------------------------------+---------------+----------
  TOTAL                              14,548 | 14,797   100% |    100%
--------------------------------------------+---------------+----------

GROUP'S REVENUE BY regions

                              EUR thousand    | % of net sales  |
                          ---------+--------+------+----------+
  thousand EUR                  2019 |   2018 | 2019 |     2018
-----------------------------------+--------+------+-----------
  European Union            10,244 |  9,820 |  70% |      67%
-----------------------------------+--------+------+-----------
  Russia                     1,545 |  1,531 |  11% |      10%
-----------------------------------+--------+------+-----------
  Asia                         544 |    294 |   4% |       2%
-----------------------------------+--------+------+-----------
  Africa                       523 |    168 |   4% |       1%
-----------------------------------+--------+------+-----------
  Other                        245 |    403 |   2% |       3%
-----------------------------------+--------+------+-----------
  Middle East                  232 |    312 |   1% |       2%
-----------------------------------+--------+------+-----------
  TOTAL                     13,333 | 12,528 |  92% |      85%
                                   |        |      |

-----------------------------------+--------+------+-----------
  Discontinued operations    1,215 |  2,270 |   8% |      15%
-----------------------------------+--------+------+-----------

-----------------------------------+---------------+-----------
  TOTAL                     14,548 | 14,797   100% |     100%
-----------------------------------+---------------+-----------

The  Group's total sales have  seen increases in some  markets, such as European
Union,  Asia and Africa,  while we recorded  substantial sales decline in Middle
East.

THE GROUP'S PROFIT/LOSS BY SEGMENTS

  EUR thousand                            2019 |  2018
---------------------------------------------+--------
  Continued operations                       |
---------------------------------------------+--------
  EBITDA by business units:                  |
---------------------------------------------+--------
  Fibreboards production and sales        68 |   280
---------------------------------------------+--------
  Furniture retail                     (200) | (104)
---------------------------------------------+--------
  Real Estate Management                 352 |     0
---------------------------------------------+--------
  Group transactions                     105 |   252
---------------------------------------------+--------
  TOTAL EBITDA                           325 |   428
---------------------------------------------+--------
  Depreciation                         (668) | (558)
---------------------------------------------+--------
  TOTAL OPERATING PROFIT/ LOSS         (343) | (130)
---------------------------------------------+--------
  Net financial costs                  (784) | (228)
---------------------------------------------+--------
  Income tax                               0 |   (2)
---------------------------------------------+--------
  NET PROFIT/ LOSS                   (1,127) | (360)
                                             |

---------------------------------------------+-------+
  Discontinued operations              (271) | (532) |
---------------------------------------------+-------+

---------------------------------------------+--------
  TOTAL                              (1,398) | (891)
---------------------------------------------+--------

STATEMENT OF FINANCIAL POSITION AND CASH FLOW STATEMENT

As  of 31.12.2019 the  total assets  of Nordic  Fibreboard AS were EUR 9.1 million
(31.12.2018:  EUR 10.3 million). The liabilities of  the company as of 31.12.2019
were  EUR 7.5 million (31.12.2018: EUR 7.4 million),  of which Nordic Fibreboard has
borrowings of EUR 4.6 million as at 31.12.2019 (31.12.2018: EUR 4.8 million).

Receivables  and  prepayments  amounted  to  EUR  1.4 million  as  at  31.12.2019
(31.12.2018:  EUR 1.1 million). Inventories  were EUR 0.9 million  as of 31.12.2019
(31.12.2018:   EUR   2.3 million).   Financial  investments  (ie  Trigon  Property
Development  shares) decreased  from EUR  422 thousand as  at 31.12.2018 to EUR 397
thousand   as   at  31.12.2019. Real  Estate  Investments  were  EUR  1.12 million
(31.12.2018:  EUR 0.18 million), property, plant, equipment and intangibles were EUR
5.2 million as of 31.12.2019 (EUR 6.3 million as of 31.12.2018).

In  2019, the  Group's  cash  flows  from  operating  activities totalled EUR 516
thousand  EUR  (2018:  EUR  507 thousand).  Investment  activities  resulted in cash
outflows  in amount of EUR 153 thousand in  2019, compared to outflows in amount EUR
275 thousand  in 2018. Financing activities also resulted  in cash outflows of EUR
410 thousand  in 2019 (2018: EUR outflow 252 thousand).  Net cash effect in 2019 EUR
was  negative 47 thousand, which is more  negative compared to the 2018 outflows
of EUR 20 thousand.

In 2019, investments in non-current assets totalled EUR 133 thousand. In 2018, the
investments totalled EUR 270 thousand.

Performance of business units

NORDIC FIBREBOARD Ltd

Fibreboard  sales for 2019 were EUR 11.75 million,  which is 7% more than in 2018
(2018:  EUR  11.01 million).  We  sold  our  products to customers in 39 countries
during  the year 2019. Sales growth in the EU were mainly driven by securing new
customers  in both the display board and the door core segments. Sales to Russia
showed  a modest  increase in  2019, reflecting the  slight increase in business
confidence and business activity in that market. Middle East markets continue to
experience subdued economic environment. In Asia we secured new customers in new
countries,  and  in  Africa  we  benefitted  from  a  loss  of a key competitor.
Fibreboard  recorded EBITDA  of EUR  68 thousand for  full year 2019 (2018: EUR 280
thousand),  the reduced profitability in 2019 compared to 2018 were due to extra
start-up  costs being  incurred as  a result  of working  with new  products for
customers  in  the  door  core  and  display  board  segment,  as  well  as  the
aforementioned increase in energy costs due to leakage in one of our driers.

THE SALES OF NORDIC FIBREBOARD LTD BY REGION

                     EUR thousand      % of net sales
                          |               |
                     2019 |   2018   2019 |     2018
--------------------------+--------+------+----------
  European Union    8,656 |  8,297 |  74% |      75%
--------------------------+--------+------+----------
  Russia            1,545 |  1,531 |  13% |      14%
--------------------------+--------+------+----------
  Asia                544 |    294 |   5% |       3%
--------------------------+--------+------+----------
  Africa              523 |    168 |   4% |       2%
--------------------------+--------+------+----------
  Middle East         232 |    312 |   2% |       3%
--------------------------+--------+------+----------
  Other               245 |    404 |   2% |       4%
--------------------------+--------+------+----------
  Total            11,745 | 11,007 | 100% |     100%

Interior finishing boards

Interior  finishing  boards  are  100% produced  under  Isotex  brand.  Interior
finishing  boards  are  made  of  natural  softboard, which is produced in Pärnu
fibreboard  factory's main production line and the boards have milled tenons and
the surface is covered with paper or textile. This technology enables to produce
boards of different colours and patterns.

General construction boards

Wind-protection boards  and boards for door cores are the largest product groups
at  Pärnu softboard factory.  The main product group of Püssi fibreboard factory
is  boards  for  the  pin  board  segment,  which Nordic Fibreboard sells across
several continents.

SKANO FURNITURE FACTORY: FURNITURE PRODUCTION AND WHOLESALE

On  05.09.2019 Nordic Fibreboard AS sold  its subsidiary Skano Furniture Factory
OÜ,  thereby ending its production and wholesale of furniture. Nordic Fibreboard
AS  became the mother direct company of Skano Furniture OÜ after the sale of the
Skano Furniture Factory OÜ. The main activity of Skano Furniture OÜ is retail of
own  products  and  furniture  of  third-party  furniture  in the Baltics. Skano
Furniture  Factory  business  activity  was  producing and wholesale of handmade
furniture of solid wood. Skano Furniture Factory factory was located in Pärnu.

Prior  to the sale on 5 September  2019 of our furniture wholesale company Skano
Furniture Factory, sales in this unit were with intra-group transactions EUR 1.07
million,  compared to  the full  2018 sales of  EUR 3.01 million. EBITDA for 2018
until 05.09.2019, was negative EUR 176 thousand (negative EUR 334 thousand for full-
year 2018).

The sales of the furniture factory by country

                     EUR thousand     % of net sales
                          |              |
                     2019 |  2018   2019 |     2018
--------------------------+-------+------+----------
  Russia              627 | 1,217 |  36% |      40%
--------------------------+-------+------+----------
  Finland             335 |   798 |  20% |      27%
--------------------------+-------+------+----------
  Skano Retail        476 |   733 |  28% |      24%
--------------------------+-------+------+----------
  Other countries     265 |   258 |  16% |       9%
--------------------------+-------+------+----------
  Total             1,703 | 3,006 | 100% |     100%

SKANO FURNITURE: RETAIL SALES

Retail  business  was  operated  by  a  subsidiary  Skano  Furniture  OÜ and its
subsidiaries  in Latvia  and Lithuania.  As of  31.12.2019 there were two stores
left,  one store  in Tallinn  and one  store in  Pärnu, both  stores were closed
31.01.2020. Latvian and Lithuanian stores were closed 30.09.2019. The closure of
these stores meant that the group was leaving the furniture retail sector.

Furniture  retail  sales  2019 decreased  by  1% compared  to 2018 (from EUR 1.54
million to EUR 1.52 million).

RETAIL SALES BY COUNTRY

                EUR thousand     % of net sales      Number of stores
                     |              |                      |
                2019 |  2018   2018 |    2017   31.12.2019 | 31.12.2018
---------------------+-------+------+---------+------------+------------
  Estonia      1,152 |   962 |  76% |     63% |          2 |          4
---------------------+-------+------+---------+------------+------------
  Latvia*        137 |   272 |   9% |     18% |          0 |          1
---------------------+-------+------+---------+------------+------------
  Lithuania*     226 |   302 |  15% |     20% |          0 |          1
---------------------+-------+------+---------+------------+------------
  Total        1,515 | 1,536 | 100% |    100% |          2 |          6

* Latvian and Lithuanian stores were closed on 30.09.2019.

Total Furniture operations EBITDA for 2019 was negative EUR 200 thousand (in 2018
negative EUR 104 thousand).

FORECAST AND DEVELOPMENT

Nordic Fibreboard Ltd

In  Fibreboard, we are pushing for sales  of our various applications which have
more global reach than our traditional sales of windboards and insulation boards
sold  mainly  in  our  traditional  markets  of Finland, Russia and Estonia. The
industrial  segment  offers  more  potential  as  customers  are  becoming  more
conscious  of using environmentally friendly materials, such as our fibreboards.
We see further upside potential in sales growth of display boards, especially in
the dynamic Asian market.

Pärnu Riverside Development

We  will continue  to manage  and develop  the property  on Suur-Jõe Street 48,
Pärnu.

FINANCIAL RATIOS

  EUR thousand
                                    |            |
  Income statement                  |       2019 |       2018
------------------------------------+------------+------------
  Revenue                           |     13,333 |     12,528
------------------------------------+------------+------------
  EBITDA                            |        325 |        428
------------------------------------+------------+------------
  EBITDA margin                     |         2% |         3%
------------------------------------+------------+------------
  Operating profit                  |      (343) |      (130)
------------------------------------+------------+------------
  Operating margin                  |       (3%) |       (1%)
------------------------------------+------------+------------
  Net profit                        |    (1,127) |      (360)
------------------------------------+------------+------------
  Net margin                        |       (8%) |       (3%)
                                    |            |

-------------------------------------------------+------------
  Discontinued operations                  (271) |      (532)
-------------------------------------------------+------------

------------------------------------+------------+------------
  TOTAL NET PROFIT                  |    (1,398) |      (891)
------------------------------------+------------+------------



                                    |            |
  Statement of financial position   | 31.12.2019 | 31.12.2018
------------------------------------+------------+------------
  Total assets                      |      9,045 |     10,307
------------------------------------+------------+------------
  Return on assets                  |      (12%) |       (3%)
------------------------------------+------------+------------
  Equity                            |      1,542 |      2,901
------------------------------------+------------+------------
  Return on equity                  |      (73%) |      (12%)
------------------------------------+------------+------------
  Debt-to-equity ratio              |        83% |        72%
                                    |            |

                                    |            |
  Share                             | 31.12.2019 | 31.12.2018
------------------------------------+------------+------------
  Last Price*                       |       0.41 |       0.36
------------------------------------+------------+------------
  Earnings per share                |     (0.31) |     (0.20)
------------------------------------+------------+------------
  Price-earnings ratio              |     (1.32) |     (1.81)
------------------------------------+------------+------------
  Book value of a share             |       0.34 |       0.64
------------------------------------+------------+------------
  Market to book ratio              |       1.20 |       0.56
------------------------------------+------------+------------
  Market capitalization, EUR thousand |      1,845 |      1,611
------------------------------------+------------+------------
  Number of shares, piece           |  4,499,061 |  4,499,061

EBITDA = Earnings before interest, taxes, depreciation and amortization
EBITDA margin = EBITDA / Revenue
Operating margin = Operating profit / Revenue
Net margin = Net profit / Revenue
Return on assets = Net profit / Total assets
Return on equity = Net profit / Equity
Debt-to-equity ratio = Liabilities / Total assets
Earnings per share = Net profit / Total shares
Price-earnings ratio = Last price / Earnings per share
Book value of a share = Equity / Total shares
Market to book ratio = Last price / Book value of a share
Market capitalization = Last price * Total number of shares
*http://www.nasdaqbaltic.com/

Consolidated statement of financial position


                                               |            |            |
  EUR thousand                                   | 31.12.2019 | 31.12.2018 |
-----------------------------------------------+------------+------------+
  Cash and cash equivalents                    |          7 |         54 |
-----------------------------------------------+------------+------------+
  Receivables and prepayments (Note 5)         |      1,394 |      1,142 |
-----------------------------------------------+------------+------------+
  Inventories (Note 6)                         |        894 |      2,255 |
-----------------------------------------------+------------+------------+
  Total current assets                         |      2,296 |      3,452 |
-----------------------------------------------+------------+------------+
                                               |            |            |
-----------------------------------------------+------------+------------+
  Investment property (Note 7)                 |      1,121 |        175 |
-----------------------------------------------+------------+------------+
  Available-for-sale financial assets (Note 9) |        397 |        422 |
-----------------------------------------------+------------+------------+
  Property, plant and equipment (Note 8)       |      5,212 |      6,223 |
-----------------------------------------------+------------+------------+
  Intangible assets (Note 8)                   |         19 |         34 |
-----------------------------------------------+------------+------------+
  Total non-current assets                     |      6,749 |      6,855 |
-----------------------------------------------+------------+------------+
                                               |            |            |
-----------------------------------------------+------------+------------+
  TOTAL ASSETS                                 |      9,045 |     10,307 |
-----------------------------------------------+------------+------------+
                                               |            |            |
-----------------------------------------------+------------+------------+
  Borrowings (Notes 10)                        |      4,547 |        662 |
-----------------------------------------------+------------+------------+
  Payables and prepayments (Notes 11)          |      2,665 |      2,418 |
-----------------------------------------------+------------+------------+
  Short-term provisions (Note 12)              |         20 |         15 |
-----------------------------------------------+------------+------------+
  Total current liabilities                    |      7,232 |      3,095 |
-----------------------------------------------+------------+------------+
                                               |            |            |
-----------------------------------------------+------------+------------+
  Long-term borrowings (Notes 10)              |         92 |      4,102 |
-----------------------------------------------+------------+------------+
  Long-term provisions (Note 12)               |        179 |        210 |
-----------------------------------------------+------------+------------+
  Total non-current liabilities                |        271 |      4,311 |
-----------------------------------------------+------------+------------+
  Total liabilities                            |      7,503 |      7,406 |
-----------------------------------------------+------------+------------+
                                               |            |            |
-----------------------------------------------+------------+------------+
  Share capital (at nominal value) (Note 13)   |      2,699 |      2,699 |
-----------------------------------------------+------------+------------+
  Share premium                                |        364 |        364 |
-----------------------------------------------+------------+------------+
  Statutory reserve capital                    |        288 |        288 |
-----------------------------------------------+------------+------------+
  Other reserves                               |         84 |         45 |
-----------------------------------------------+------------+------------+
  Retained earnings (loss)                     |    (1,894) |      (496) |
-----------------------------------------------+------------+------------+
  Total equity (Note 13)                       |      1,542 |      2,901 |
-----------------------------------------------+------------+------------+
                                               |            |            |
-----------------------------------------------+------------+------------+
  TOTAL LIABILITIES AND EQUITY                 |      9,045 |     10,307 |

*The  notes  to  the  financial  statements  presented  on pages 25 to 72 are an
integral part of these consolidated financial statements.

Consolidated statement of profit or loss and other comprehensive income

 EUR thousand                                                   |   2019|  2018
--------------------------------------------------------------+-------+------
 Continued operations                                         |       |
--------------------------------------------------------------+-------+------
 Revenue (Note 24)                                            | 13,333|12,528
--------------------------------------------------------------+-------+------
 Cost of goods sold (Note 15)                                 | 11,538|10,479
--------------------------------------------------------------+-------+------
 Gross profit                                                 |  1,796| 2,049
--------------------------------------------------------------+-------+------
                                                              |       |
--------------------------------------------------------------+-------+------
 Distribution costs (Note 16)                                 |  1,698| 1,898
--------------------------------------------------------------+-------+------
 Administrative expenses (Note 17)                            |    658|   498
--------------------------------------------------------------+-------+------
 Other operating income (Note 19)                             |    351|    14
--------------------------------------------------------------+-------+------
 Other operating expenses (Note 20)                           |    134|    89
--------------------------------------------------------------+-------+------
 Operating loss                                               |  (343)| (422)
--------------------------------------------------------------+-------+------
                                                              |       |
--------------------------------------------------------------+-------+------
 Finance income (Note 21)                                     |     19|    22
--------------------------------------------------------------+-------+------
 Finance costs (Note 21)                                      |    803|   243
--------------------------------------------------------------+-------+------
 LOSS BEFORE INCOME TAX                                       |(1,127)| (643)
--------------------------------------------------------------+-------+------
 Corporate income tax                                         |      0|     2
--------------------------------------------------------------+-------+------
                                                              |       |
--------------------------------------------------------------+-------+------
 NET LOSS FOR THE FINANCIAL YEAR FROM CONTINUING OPERATIONS   |(1,127)| (645)
--------------------------------------------------------------+-------+------
                                                              |       |
--------------------------------------------------------------+-------+------
 Net loss for the financial year from discontinuing operations|  (271)| (246)
--------------------------------------------------------------+-------+------
 NET LOSS FOR THE FINANCIAL YEAR                              |(1,398)| (891)
--------------------------------------------------------------+-------+------
                                                              |       |
--------------------------------------------------------------+-------+------
 Basic earnings per share (Note 14)                           | (0,31)|(0,20)
--------------------------------------------------------------+-------+------
 Diluted earnings per share (Note 14)                         | (0,30)|(0,20)
                                                              +-------+------

*The  notes  to  the  financial  statements  presented  on pages 25 to 72 are an
integral part of these consolidated financial statements.



Consolidated statement of cash flows

 EUR thousand                                                      | 2019|   2018
-----------------------------------------------------------------+-----+-------
 Cash flows from operating activities                            |     |
-----------------------------------------------------------------+-----+-------
 Operating profit (loss)                                         |(343)|  (423)
-----------------------------------------------------------------+-----+-------
 Adjustments:                                                    |     |
-----------------------------------------------------------------+-----+-------
 Depreciation charge (Notes 7; 8)                                |  669|    558
-----------------------------------------------------------------+-----+-------
 Profit from revalution of real estate investment (Note 7)       |(327)|      0
-----------------------------------------------------------------+-----+-------
 Loss from disposal of  non-current asset                        |    2|      0
-----------------------------------------------------------------+-----+-------
 Non-monetary transactions: reserve for share option             |   39|     37
-----------------------------------------------------------------+-----+-------
    Loss from disposal of available-for-sale financial assets    |     |
 (Notes 9; 21)                                                   |   25|      2
-----------------------------------------------------------------+-----+-------
 Expenses of doubtful receivables                                |    1|      0
-----------------------------------------------------------------+-----+-------
   Change in trade and other receivables (Note 5)                |(651)|(1,532)
-----------------------------------------------------------------+-----+-------
   Change in inventories (Note 6)                                |  581|     83
-----------------------------------------------------------------+-----+-------
   Change in trade and other payables  (Note 11)                 |  617|    653
-----------------------------------------------------------------+-----+-------
   Discontinued operations                                       |  131|  1,374
-----------------------------------------------------------------+-----+-------
                                                                 |     |
-----------------------------------------------------------------+-----+-------
 Cash generated from operations                                  |  744|    752
-----------------------------------------------------------------+-----+-------
 Interest payments (Note 21)                                     |(221)|  (240)
-----------------------------------------------------------------+-----+-------
 Corporate income tax paid                                       |    0|    (2)
-----------------------------------------------------------------+-----+-------
 Net other financial income and expense (Note 21)                |  (7)|    (3)
-----------------------------------------------------------------+-----+-------
 Net cash generated from operating activities                    |  516|    507
-----------------------------------------------------------------+-----+-------
                                                                 |     |
-----------------------------------------------------------------+-----+-------
 Cash flows from investing activities                            |     |
-----------------------------------------------------------------+-----+-------
 Purchase of property, plant and equipment and intangible assets |     |
 (Notes 8)                                                       |(133)|   (30)
-----------------------------------------------------------------+-----+-------
 Purchase of real estate investment (Note 7)                     | (20)|    (5)
-----------------------------------------------------------------+-----+-------
 Acquisition of available-for-sale financial assets (Note 9)     |    0|  (240)
-----------------------------------------------------------------+-----+-------
 Net cash used in investing activities                           |(153)|  (275)
-----------------------------------------------------------------+-----+-------
                                                                 |     |
-----------------------------------------------------------------+-----+-------
 Cash flows from financing activities                            |     |
-----------------------------------------------------------------+-----+-------
 Repayment of loans received (Note 10)                           |(306)|  (246)
-----------------------------------------------------------------+-----+-------
 Loans received from related parties (Note 10)                   |  304|    120
-----------------------------------------------------------------+-----+-------
 Repayment of loans received from related parties (Note 10)      |(284)|  (120)
-----------------------------------------------------------------+-----+-------
 Finance lease payments                                          | (96)|      0
-----------------------------------------------------------------+-----+-------
 Change in overdraft (Note 10)                                   | (28)|    137
-----------------------------------------------------------------+-----+-------
 Change in factoring (Note 10)                                   |    0|  (143)
-----------------------------------------------------------------+-----+-------
 Net cash (used in)/from financing activities                    |(410)|  (252)
-----------------------------------------------------------------+-----+-------
                                                                 |     |
-----------------------------------------------------------------+-----+-------
 NET CHANGE IN CASH                                              | (47)|   (20)
-----------------------------------------------------------------+-----+-------
 Effect of exchange rate changes on cash and cash equivalents    |    0|      0
-----------------------------------------------------------------+-----+-------
 OPENING BALANCE OF CASH                                         |   54|     74
-----------------------------------------------------------------+-----+-------
 CLOSING BALANCE OF CASH                                         |    7|     54

*The  notes  to  the  financial  statements  presented  on pages 25 to 72 are an
integral part of these consolidated financial statements.

Consolidated statement of changes in equity

                 |         |         | Statutory |          |          |
                 |  Share  |  Share  |  reserve  |  Other   | Retained |
 EUR thousand      | capital | premium |  capital  | reserves | earnings | Total
-----------------+---------+---------+-----------+----------+----------+-------
                 |         |         |           |          |          |
-----------------+---------+---------+-----------+----------+----------+-------
 Balance at      |         |         |           |          |          |
 31.12.2017      |    2,699|      364|        288|         9|       393|  3,753
-----------------+---------+---------+-----------+----------+----------+-------
                 |         |         |           |          |          |
-----------------+---------+---------+-----------+----------+----------+-------
 Share options   |         |         |           |          |          |
 12M 2018        |        0|        0|          0|        37|         0|     37
-----------------+---------+---------+-----------+----------+----------+-------
 Other changes   |        0|        0|          0|         0|         2|      2
-----------------+---------+---------+-----------+----------+----------+-------
 Net profit/loss |         |         |           |          |          |
 for 12M 2018    |        0|        0|          0|         0|     (891)|  (891)
-----------------+---------+---------+-----------+----------+----------+-------
 Other           |         |         |           |          |          |
 comprehensive   |         |         |           |          |          |
 income for      |         |         |           |          |          |
 12M 2018        |        0|        0|          0|         0|         0|      0
-----------------+---------+---------+-----------+----------+----------+-------
 Total           |         |         |           |          |          |
 comprehensive   |         |         |           |          |          |
 profit/loss for |         |         |           |          |          |
 12M 2018        |        0|        0|          0|         0|     (891)|  (891)
-----------------+---------+---------+-----------+----------+----------+-------
 Balance at      |         |         |           |          |          |
 31.12.2018      |    2,699|      364|        288|        45|     (496)|  2,901
-----------------+---------+---------+-----------+----------+----------+-------
                 |         |         |           |          |          |
-----------------+---------+---------+-----------+----------+----------+-------
 Share options   |         |         |           |          |          |
 12M 2019        |        0|        0|          0|        39|         0|     39
-----------------+---------+---------+-----------+----------+----------+-------
 Net profit/loss |         |         |           |          |          |
 for 12M 2019    |        0|        0|          0|         0|   (1,398)|(1,398)
-----------------+---------+---------+-----------+----------+----------+-------
 Other           |         |         |           |          |          |
 comprehensive   |         |         |           |          |          |
 income for      |         |         |           |          |          |
 12M 2019        |        0|        0|          0|         0|         0|      0
-----------------+---------+---------+-----------+----------+----------+-------
 Total           |         |         |           |          |          |
 comprehensive   |         |         |           |          |          |
 profit/loss for |         |         |           |          |          |
 12M 2019        |        0|        0|          0|         0|   (1,398)|(1,398)
-----------------+---------+---------+-----------+----------+----------+-------
 Balance at      |         |         |           |          |          |
 31.12.2019      |    2,699|      364|        288|        84|   (1,894)|  1,542
                 +---------+---------+-----------+----------+----------+-------

* More detailed information about share capital is disclosed in Note 13.
*The  notes  to  the  financial  statements  presented  on pages 25 to 72 are an
integral part of these consolidated financial statements.

PROPOSAL FOR COVERING OF LOSS

                                                         | EUR thousand |
---------------------------------------------------------+------------+
  Retained earnings at 31.12.2018                        |      (496) |
---------------------------------------------------------+------------+
  Net loss in 2019                                       |    (1,398) |
---------------------------------------------------------+------------+
  Statutory capital reserve                              |        288 |
---------------------------------------------------------+------------+
  Issue premium                                          |        364 |
---------------------------------------------------------+------------+
  Retained earnings / (accumulated losses) at 31.12.2019 |    (1,242) |

The audited Annual Report of Nordic Fibreboard AS for 2019 is available on
issuer's home page www.nordicfibreboard.com (http://www.nordicfibreboard.com) .

Torfinn Losvik
CEO & Chairman of the Management Board

Phone: + 372 56 99 09 88

E-mail: [email protected]