Borregaard - Earnings Release 2016

Borregaard: All-time high result for the Group

Borregaard's 3(rd) quarter results

Borregaard's operating revenues were NOK 1,102 million (NOK 1,069 million)(1) in

the 3(rd) quarter of 2016. EBITA adjusted(2) increased to NOK 216 million (NOK

160 million), an all-time high quarterly result. Compared with the 3(rd) quarter

of 2015, all business areas improved their EBITA adjusted. Currency, including

hedging effects, contributed positively by approximately NOK 40 million,

benefitting all business areas. Energy conservation measures continued to

contribute positively at the Sarpsborg site.

Performance Chemicals improved its EBITA adjusted level mainly due to positive

currency and mix effects. Currency effects, lower energy consumption and

contribution from bioethanol explain the progress in Speciality Cellulose. The

higher EBITA adjusted in Other Businesses was due to positive currency effects

and a strong quarter for Ingredients.

Profit before tax was NOK 205 million (NOK 151 million). Earnings per share

increased to NOK 1.57 (NOK 1.12).

- We report an all-time high result for the Group and are pleased to note that

all three business areas made progress even without the favourable currency

effects, says President and CEO Per A. Sørlie.

Contacts:

Director Investor Relations, Jørn Syvertsen, +47 958 36 335

Communication Manager, Tone Horvei Bredal, +47 924 67 711

1. Figures in parentheses are for the corresponding period in the preceding

year

2. Operating profit before amortization and other income and expenses

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

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