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16 Mar 2016 Norske Skog: 2015 Year-End Audit Process Update
Norske Skog has finalized the 2015 year-end asset evaluation process. Norske Skog will write-down certain deferred tax assets in Norway and Australasia but disagrees with the auditor with respect to the fixed asset valuation. The impairment process has revealed that Norske Skog and the auditor have different views on the future industry outlook. The non-cash write-off of deferred tax assets is NOK 482 million and loss after tax for 2015 will be NOK 1,436 million. The book equity at the end of the financial year 2015 after deferred tax asset write-off will be NOK 72 million. Norske Skog has performed an impairment test of fixed assets. The conclusion of the Board of Directors is that there is sufficient head-room to support the existing book values of the fixed assets, based on applicable valuation principles and the industry outlook. The difference of opinion between Norske Skog and the auditor is significant and will be commented in the year-end Board of Directors report and financial statements. - We have competitive business units that all are on the lower side of the cost curve and the fixed assets are valued in line with our European peers. After completing a diligent impairment testing at the year-end, we see no need for a write-down of the fixed asset values, says Sven Ombudstvedt, President and CEO of Norske Skog. Due to the significant disagreements that have arisen in the audit process for the financial year 2015, Norske Skog and the auditor have mutually agreed that a new auditor should be elected for Norske Skog at the annual general meeting in April 2016. Norske Skog is in the process of engaging a new auditor, and a proposal will be announced prior to the annual general meeting. Norske Skog believes that the financial statements for 2015 will be prepared on a going concern basis, based on the expected outcome of current discussions with certain stakeholders regarding the strengthening of its equity and liquidity position. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. Norske Skog
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