Borregaard - Earnings Release 2016

Borregaard: All-time high result for the Group

Borregaard's 2(nd) quarter results

Borregaard's operating revenues were NOK 1,167 million (NOK 1,054 million)(1) in

the 2(nd) quarter of 2016. EBITA adjusted(2) increased to NOK 200 million (NOK

131 million), an all-time high quarterly result. Compared with the 2(nd) quarter

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

hedging effects, contributed positively by approximately NOK 75 million,

benefitting all business areas. Energy conservation measures contributed to

lower production costs at the Sarpsborg site.

Performance Chemicals achieved an all-time high quarterly EBITA adjusted level

as positive currency effects and an increased sales volume more than off-set a

weaker product mix and slightly lower prices in sales currency. The progress in

Specialty Cellulose was mainly due to positive currency effects, a better

product mix and lower production costs. The improved EBITA adjusted in Other

Businesses was due to positive currency effects and a strong quarter for Fine

Chemicals, partly off-set by a higher net cost level (including EU grant) for

the Exilva project.

Profit before tax was NOK 207 million (NOK 125 million). Earnings per share were

NOK 1.54 (NOK 0.92).

- We are pleased to see improvements in all business areas. Favourable currency

rates and market reallocation efforts in lignin contributed to another all-time

high result both for the Group and Performance Chemicals, 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.

[HUG#2028932]

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