Borregaard - Earnings Release 2014

Borregaard: All-time high result for Performance Chemicals

Borregaard's 2Q 2014 results

(16.7.2014) Borregaard's operating revenues totalled NOK 993 million (NOK 952

million)(1) in the 2(nd) quarter of 2014. EBITA(2)) was NOK 130 million,

compared with NOK 137 million in the corresponding quarter of 2013 and NOK 99

million in the preceding quarter.

Performance Chemicals improved its EBITA in the 2(nd) quarter to an all-time

high level, while a decline was recorded for Specialty Cellulose and Other

Businesses.

EBITA in Performance Chemicals advanced as an improved product mix and higher

sales prices more than compensated for a 7% volume decrease. The decline in

Specialty Cellulose was primarily attributable to lower sales prices. EBITA in

Other Businesses decreased due to a weaker product mix for the Fine Chemicals

business. Lower production output at the Sarpsborg plant had a negative impact

on EBITA in the quarter, while the overall currency impact relative to the

2(nd) quarter of 2013 was positive.

Group profit before tax amounted to NOK 126 million (NOK 122 million) in the

2(nd) quarter of 2014. Earnings per share in the 2(nd) quarter were NOK 0.91

(NOK 0.88).

- We are pleased with the new all-time high quarterly result for our Performance

Chemicals business. The other business areas were in line with our expectations,

says President and CEO at Borregaard, Per A. Sørlie.

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1. Figures in parentheses are for the corresponding period last year.

2. Operating profit before amortisation and other income and expenses.

Contacts:

Investor Relations Director Jørn Syvertsen, +47 958 36 335

SVP Organisation and Public Affairs Dag Arthur Aasbø, +47 918 34 108

This information is subject of the disclosure requirements pursuant to section

5-12 of the Norwegian Securities Trading Act.

[HUG#1826371]

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