Borregaard

Earnings Release • Apr 29, 2020

Borregaard ASA: EBITDA NOK 242 million (NOK 255 million) in the 1st quarter

Borregaard ASA: EBITDA NOK 242 million (NOK 255 million) in the 1st quarter

Borregaard's operating revenues increased to NOK 1,372 million (NOK 1,250

million)¹ in the 1(st) quarter of 2020. EBITDA² was NOK 242 million (NOK 255

million). BioSolutions (ligninbased biopolymers and biovanillin) and

BioMaterials (speciality cellulose and cellulose fibrils) had results in line

with the 1(st) quarter of 2019, whereas Fine Chemicals (pharma intermediates and

bioethanol) had a decline. The Group has not been materially impacted by the

coronavirus situation during the 1(st) quarter of 2020.

BioSolutions had a positive development within Specialities, while both

BioMaterials and Fine Chemicals had an unfavourable product mix in the quarter.

Operating costs were higher due to increased transatlantic shipments,

maintenance and an IT transition project. Wood costs were gradually reduced

during the quarter, but less than expected.

The net currency impact on EBITDA² was positive. Towards the end of the 1(st)

quarter, NOK weakened significantly. Borregaard's sales are primarily in USD and

EUR, and a weakening of NOK will over time be positive for the Group's

competitive position. However, at the end of the quarter, the Group's equity and

net interest-bearing debt were negatively affected by unrealised losses from

currency hedging, realised effect of hedging of net investments in subsidiaries

and translation effects on loans in USD.

Profit before tax was NOK 111 million (NOK 141 million). Earnings per share were

NOK 1.02 (NOK 1.26).

-  We are pleased to see a favourable development for Specialities in

BioSolutions. So far, the impact from the coronavirus situation has been limited

on our 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 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.