Borregaard

Earnings Release • May 3, 2023

Borregaard ASA: EBITDA1 of NOK 435 million in the 1st quarter

Borregaard ASA: EBITDA1 of NOK 435 million in the 1st quarter

Borregaard's operating revenues increased to NOK 1,850 million (NOK 1,615

million)(2). EBITDA(1) reached NOK 435 million (NOK 400 million). Fine Chemicals

and BioMaterials had result improvements while BioSolutions had a decrease. The

net currency impact on EBITDA(1) was positive compared with the 1(st) quarter of

The result improvement in Fine Chemicals was due to increased sales prices, a

high production output and improved product mix. The EBITDA(1) improvement in

BioMaterials was mainly a result of increased sales prices and positive net

currency effects. Reduced margin and volume for traded vanillin products were

the main reasons for the EBITDA(1) decrease in BioSolutions. Cost inflation

related to wood and other raw materials, maintenance and labour affected all

business areas.

Operating profit reached NOK 320 million (NOK 291 million). Net financial items

were NOK -28 million (NOK -14 million). Profit before tax was NOK 292 million

(NOK 277 million). Earnings per share were NOK 2.32 (NOK 2.18).

Borregaard will invest NOK 100 million in a new green technology platform and

build a commercial scale demonstration plant with an annual capacity of 1,000

tonnes at the Sarpsborg biorefinery. The platform will enable deliveries of next

generation lignin-based biopolymers and granulation of existing and new

products. Targeted application areas are home care, industrial cleaners, water

treatment and agriculture.

- We are pleased with the Group's solid performance in the quarter. The

strategic investments in Alginor and lignin-based biopolymers will contribute to

further specialisation and value growth for Borregaard, says President and CEO

Per A. Sørlie.

Contacts:

Director Investor Relations, Knut-Harald Bakke, +47 905 79 164

Director Communications, Tone Horvei Bredal, +47 924 67 711

1. Operating profit before depreciation, amortisation and other income and

expenses

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

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.