Borregaard - Earnings Release 2016

Borregaard: Progress in all business areas

Borregaard's 4(th) quarter results

Borregaard's operating revenues reached NOK 1,110 million (NOK 1,034 million)(1)

in the 4(th) quarter of 2016. EBITA adjusted(2) increased to NOK 160 million

(NOK 101 million). Compared with the 4(th) quarter of 2015, all business areas

improved their EBITA adjusted. Currency contributed to higher results.

Performance Chemicals increased EBITA adjusted, mainly due to positive currency

effects and an improved product mix. Weaker demand and increased price

competition in the construction sector were offset by higher sales of speciality

products. The improvement in Speciality Cellulose was mainly due to higher sales

volume and currency effects. Other Businesses improved results primarily due to

higher sales in the Fine Chemicals business and reduced net Exilva costs.

Profit before tax was NOK 151 million (NOK 130 million). Earnings per share in

the 4(th) quarter increased to NOK 1.23 (NOK 1.08).

Full year 2016

Operating revenues in 2016 reached NOK 4,492 million (NOK 4,164 million). EBITA

adjusted increased to NOK 747 million (NOK 497 million), an all-time high

result. Profit before tax was NOK 724 million (NOK 506 million). Earnings per

share increased by 44% to NOK 5.55 (NOK 3.86).

- We made progress also in the 4(th) quarter of 2016 and are pleased to report

increased sales of high-value products, 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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