Borregaard

Earnings Release • Oct 23, 2018

Borregaard: EBITA adj. NOK 145 million (NOK 197 million) in 3rd quarter

Borregaard: EBITA adj. NOK 145 million (NOK 197 million) in 3rd quarter

Borregaard's operating revenues increased to NOK 1,150 million (NOK 1,089

million)¹ in the 3(rd)  quarter of 2018. EBITA adj.² was NOK 145 million (NOK

197 million). Other Businesses improved its result compared with the

corresponding quarter last year, whereas Performance Chemicals and Speciality

Cellulose had a decline. EBITA adj.² was negatively affected by the Florida

start-up and higher lignin distribution costs. In addition, the result was

impacted by higher wood and caustic soda prices. The net currency impact was

positive.

In Performance Chemicals, total sales volume increased by 9% with growth above

10% for both Industrial³ and Specialities. EBITA adj.² declined, mainly due to

increased costs and strong price competition in construction markets. For

Speciality Cellulose, higher wood and caustic soda prices and lower sales of

acetate cellulose were the main reasons for the lower EBITA adj.¹. Other

Businesses' result improved due to higher sales prices in Ingredients.

Profit before tax ended at NOK 150 million (NOK 190 million), and was positively

affected by a NOK 20 million gain on sale of a minority stake in a chemical

company in USA. Earnings per share were NOK 1.27 (NOK 1.47).

-  We are pleased to see that the on-going efforts to diversify the lignin

portfolio resulted in volume growth for specialities and industrial products.

However, the result in Performance Chemicals was negatively impacted by start-up

costs in Florida and the effect of interruptions in raw material supply, 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 amortisation and other income and expenses

3. Market segment renamed to Industrial, formerly Miscellaneous

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.