Borregaard

Earnings Release • Jan 31, 2019

Borregaard: EBITA adj. NOK 94 million (NOK 109 million) in 4th quarter

Borregaard: EBITA adj. NOK 94 million (NOK 109 million) in 4th quarter

Borregaard's operating revenues reached NOK 1,219 million (NOK 1,137 million)¹

in the 4(th) quarter of 2018. EBITA adj.² was NOK 94 million (NOK 109 million).

Other Businesses' result improved significantly compared with the corresponding

quarter in 2017, whereas Performance Chemicals and Speciality Cellulose had a

decline.

Performance Chemicals had a 3% increase in total sales volume driven by

diversification and growth for Industrial and Specialities. EBITA adj.²

decreased, due to higher fixed costs and depreciation from the Florida ramp-up,

increased lignin distribution costs and continued strong price competition in

the concrete admixture market. Higher wood costs and weaker product mix affected

Speciality Cellulose negatively. Higher sales prices and sales volume in

Ingredients were the main reasons for the improved result in Other Businesses.

The net currency impact was positive.

Profit before tax ended at NOK 84 million (NOK 89 million). Earnings per share

were NOK 0.80 (NOK 0.90).

Full year 2018

Operating revenues in 2018 increased to NOK 4,785 million (NOK 4,618 million).

EBITA adj.² was NOK 580 million (NOK 749 million). Profit before tax was NOK

562 million (NOK 715 million). Earnings per share were NOK 4.76 (NOK 5.66).

- In 2018, we have strengthened the foundation for future growth by completing

several strategic investment projects. The financial result for the year was

affected by increased costs related to raw materials and the new plant in

Florida. On the market side, we are pleased with the strong improvement in

Ingredients and increased diversification of our lignin business, 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.