Borregaard - Earnings Release 2017

Borregaard: ALL-TIME HIGH RESULT

Borregaard's operating revenues reached NOK 1,256 million (NOK 1,167 million)¹

in the 2(nd) quarter of 2017. EBITA adj.² increased to NOK 243 million (NOK 200

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

2016, all business areas improved their EBITA adj. Final insurance settlement

related to the seasoning silos had a positive impact on the result. Currency

impact, including hedging effects, was slightly positive. Energy, raw material

and chemicals costs increased compared with the corresponding quarter of 2016.

Depreciation increased mainly as a result of expansion investments.

Performance Chemicals achieved an all-time high quarterly EBITA adj. as positive

reallocation effects and favourable mix within Specialities offset the effect of

cost increases and a 3% reduction in sales volume. The improved result in

Speciality Cellulose was due to increased sales prices, high sales volume and

improved product mix. The increased EBITA adj. in Other Businesses was primarily

due to a strong quarter for Fine Chemicals.

Profit before tax increased to NOK 241 million (NOK 207 million). Earnings per

share were NOK 1.81 (NOK 1.54).

- We are pleased with the Group's strong performance and the favourable product

mix development in both Performance Chemicals and Speciality Cellulose, 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.

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