Borregaard - Earnings Release 2016

Borregaard: All-time high result for the Group and for Performance Chemicals

Borregaard's 1(st) quarter results

(27.04.2016) Borregaard's operating revenues reached NOK 1,113 million (NOK

1,007 million)¹ in the 1(st) quarter of 2016. EBITA² increased to NOK 171

million (NOK 105 million), an all-time high quarterly result.

Performance Chemicals and Specialty Cellulose both improved their EBITA, while

there was a decline in Other Businesses. Currency contributed positively in all

business areas. Raw material, energy and other costs were stable. Production and

sales from the Sarpsborg site were slightly lower than in the 1(st) quarter of

2015 as a result of the silo fire incident in October 2015, but the EBITA impact

was limited due to insurance coverage.

Performance Chemicals achieved an all-time high quarterly EBITA due to

favourable currency effects. The acquired Flambeau business resulted in an 8%

increase in the lignin sales volume. The challenging market conditions in the

construction and oil sectors continued. The improvement in Specialty Cellulose

was primarily due to beneficial currency effects. Lower prices in sales currency

were largely offset by an improved product mix. The EBITA decline in Other

Businesses was mainly due to higher activity and costs in the Exilva project.

Profit before tax was NOK 161 million (NOK 100 million). Earnings per share in

the 1(st) quarter were NOK 1.21 (NOK 0.74).

- Positive currency effects contributed to an all-time high result both for the

Group and for Performance Chemicals. The general market conditions for lignin

remain challenging, but we are pleased that our efforts to reallocate volumes

are gaining momentum, says President and CEO Per A. Sørlie.

Contacts:

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

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

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#2007082]

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