Borregaard

Earnings Release • Jul 16, 2020

Borregaard ASA: All-time high EBITDA² of NOK 361 million in the 2nd quarter

Borregaard ASA: All-time high EBITDA² of NOK 361 million in the 2nd quarter

Borregaard's operating revenues increased to NOK 1,358 million (NOK 1,340

million)¹ in the 2(nd) quarter of 2020. EBITDA² reached an all-time high of NOK

361 million (NOK 283 million). BioMaterials and Fine Chemicals had improved

results, whereas BioSolutions had a result in line with the same period last

year.

BioSolutions had a significant reduction in raw material supply and hence lower

sales volume, offset by an improved product mix and favourable currency effects.

In BioMaterials, lower wood and energy costs, high production volume and

positive currency effects more than compensated for a lower sales volume. For

Fine Chemicals, sales of bioethanol to disinfectants was the main reason for the

improved result. The total net currency impact on EBITDA was approximately NOK

30 million compared with the corresponding period in 2019.

During the 2(nd) quarter, effects related to the coronavirus situation started

to materialise in sales and results. The discontinued raw material supply to

LignoTech South Africa and reduced demand in some biopolymers sectors and

certain cellulose grades all had a negative effect, while the increased sales of

bioethanol to disinfectants contributed positively.

Other income and expenses were NOK -96 million (NOK -16 million) in the 2(nd)

quarter, mainly due to impairment of assets and restructuring costs related to

the mothballed operation in South Africa.

Profit before tax was NOK 133 million (NOK 140 million). Earnings per share were

NOK 1.01 (NOK 1.22).

-  We are pleased with the Group's strong performance and the way our

organisation has handled a demanding period with significant disruptions for our

operations, says President and CEO Per A. Sørlie.

Contacts:

Director Investor Relations, Jørn Syvertsen, +47 958 36 335

SVP Organisation and Public Affairs, Dag Arthur Aasbø, +47 918 34 108

1. Figures in parentheses are for the corresponding period in the preceding year

2. Operating profit before depreciation, 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.