Borregaard

Borregaard: EBITA adj. NOK 157 million (NOK 177 million) in the 1st quarter

Borregaard's operating revenues increased to NOK 1,250 million (NOK 1,217

million)¹ in the 1(st) quarter of 2019. EBITA adj.² was NOK 157 million (NOK

177 million). Other Businesses' result improved significantly compared with the

corresponding quarter in 2018, whereas Performance Chemicals and Speciality

Cellulose had a decline. The implementation of IFRS16 Leases had a marginal

positive impact of NOK 1 million on EBITA adj.².

Performance Chemicals had a 7% increase in total sales volume, primarily as a

result of the Florida plant ramp-up. EBITA adj.² decreased, mainly due to higher

fixed costs and depreciation from the Florida start-up. Higher wood costs and

low deliveries affected Speciality Cellulose negatively. Other Businesses

improved as a result of higher sales prices and a favourable product mix in

Ingredients as well as high sales revenues in Fine Chemicals. The net currency

impact was positive.

Profit before tax was NOK 141 million (NOK 169 million). Earnings per share were

NOK 1.26 (NOK 1.37).

- Ramp-up of the new production capacity in Florida continued according to plan,

lifting total lignin sales volume by 7% compared with the 1(st) quarter of last

year. The diversification efforts in Performance Chemicals continued with strong

growth in Industrial. In Other Businesses, both Ingredients and Fine Chemicals

had strong performance in the quarter, 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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