Borregaard - Earnings Release 2017

Borregaard: Improved result in 1st quarter 2017

Borregaard's operating revenues reached NOK 1,136 million (NOK 1,113 million)¹

in the 1(st) quarter of 2017. EBITA adjusted² increased to NOK 200 million (NOK

171 million), a 1(st) quarter all-time high level. Speciality Cellulose improved

its EBITA adj.¹, while there was a stable result for Other Businesses and a

small decline in Performance Chemicals. Currency effects were slightly negative

in the 1(st) quarter.

Performance Chemicals' EBITA adj.¹ was slightly below last year's level.

Increased sales of specialities and a generally more favourable product mix

partly offset the impact of a weak construction market, cost increases and

negative currency effects. The improvement in Speciality Cellulose was primarily

due to higher prices and positive mix effects. Within Other Businesses, a weaker

performance in Ingredients and Fine Chemicals was largely offset by lower net

costs in Cellulose Fibrils.

Profit before tax increased to NOK 195 million (NOK 161 million). Earnings per

share in the 1(st) quarter were NOK 1.48 (NOK 1.21).

- We are pleased with the Group profit improvement and the increased sales of

speciality products, both in Performance Chemicals and Speciality Cellulose,

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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