Management Board of Arctic Paper SA (“Company, Issuer”) announces that it has accepted a plan of profit improvement (“Program”) in Arctic Paper Group with the target of cost reductions of not less than 50 MPLN per year. The Program will last at least until June 2016. The assumptions of this Program are: the creation of enhanced Shared Service Centers for our different units, individual mill profitability improvements and an audit of external service costs. As a result of the above-described Program, the Management Board expects an increase in operating profitability, as well as in all support functions of the Group. Arctic Paper launches, at the same time, a process of active search of the suitable buyer for Arctic Paper Mochenwangen and – simultaneously – evaluates additional measures and options with the purpose of eliminating further losses at the mill, which will also include evaluations to possibly cease the production. According to IFRS, in particular, as a result of the active search of a buyer, Arctic Paper Group needs to exclude the results of Mochenwangen mill from the consolidated income statement and report it separately as discontinued operations. The Management Board expects that the impact of excluding of Mochenwangen mill from consolidated results will amount approximately 18 MPLN in 2015. For additional information, please contact: Wolfgang Lübbert, President of the Management Board of Arctic Paper, tel. +49 405 148 5310 This information is disclosed pursuant to the Offering Act, article 56, clause 1, item 1, and was submitted for publication on 28 July 2015 at 1:30 pm CET, in reference to Arctic Paper’s current report no. 10/2015 filed with the Warsaw Stock Exchange.
Profit Improvement Program 2015/2016.
| Source: Arctic Paper AB