Borregaard - Earnings Release 2015

Borregaard: Strong result in Performance Chemicals and favourable currency effects

Borregaard's 4(th) quarter results

(03.02.2016) Borregaard's operating revenues increased to NOK 1,034 million (NOK

951 million)¹ in the 4(th) quarter of 2015. EBITA² was NOK 101 million (NOK 92

million).

There was an improvement in Performance Chemicals and Other Businesses, while

Specialty Cellulose was somewhat weaker. Currency developments contributed

positively across all business areas, but the impact was partly delayed by

hedging.

EBITA in Performance Chemicals increased as a lower sales volume was more than

offset by a positive currency impact. Weaker demand and increased price

competition in the construction sector led to lower sales in some regions. The

new Flambeau lignin volume has been included in the reported figures from 23

October 2015. The decline in Specialty Cellulose was primarily due to lower

sales prices and a weaker product mix. EBITA in Other Businesses improved due to

progress in the Ingredients and Fine Chemicals segments, partly offset by

increased Exilva costs.

Profit before tax was NOK 130 million (NOK 59 million) in the 4(th) quarter.

Earnings per share were NOK 1.08 (NOK 0.68).

Full year 2015

Operating revenues in 2015 increased to NOK 4,164 million (NOK 3,939 million).

EBITA was NOK 497 million (NOK 486 million). Profit before tax was NOK 506

million (NOK 430 million). Earnings per share were NOK 3.86 (NOK 3.34).

- We are pleased with the strong result in Performance Chemicals and the

progress made on our strategic expansion projects, 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 amortisation 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#1983234]

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