Borregaard - Earnings Release 2018

Borregaard: Improvement in Other Businesses, decline in Performance Chemicals and Speciality Cellulose

Borregaard's operating revenues reached NOK 1,217 million (NOK 1,136 million)¹

in the 1(st) quarter of 2018. EBITA adj.² was NOK 177 million (NOK 200 million).

Other Businesses had an improved result compared with the corresponding quarter

of 2017, whereas Performance Chemicals and Speciality Cellulose had a decline.

Costs increased by approximately NOK 40 million due to higher wood and caustic

soda prices, higher lignin distribution costs and increasing manning related to

the Florida project. The net currency impact was insignificant.

In Performance Chemicals, increased sales of specialities and improved product

mix compensated for the negative impact from strong price competition in certain

regional construction markets as well as increased costs. For Speciality

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

cellulose were the main reasons for the lower EBITA adj.². Other Businesses had

an improved EBITA adj.² due to higher sales in Ingredients and Fine Chemicals,

partly off-set by increased net costs in Cellulose Fibrils.

Profit before tax was NOK 169 million (NOK 195 million). Earnings per share were

NOK 1.37 (NOK 1.48).

- We are pleased with the positive market development for lignin specialities

and wood-based vanillin. The Florida project is on track and the plant is ready

for start-up mid-year, 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

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

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