Q3 2014

Q3 2014 3rd QUARTER IN BRIEF

• Another all-time high result for Performance Chemicals
• Improved product mix for Specialty Cellulose from preceding quarter
• Weaker result for Ingredients
• Positive currency impact in all business areas

The Group	3
The Business Areas	5
Performance Chemicals	5
Specialty Cellulose	6
Other Businesses	7
Cash flow and financial situation	8
Share information	8
Other matters and subsequent events	9
Outlook	9
The Group's condensed income statement	10
Earnings per share	10
The Group's condensed comprehensive income statement 10
The Group's condensed balance sheet	11
Changes in equity	12
The Group's condensed cash flow statement	12
Notes	13 – 18

Cash flow from operations EBITDA

Q3´13 Q4´13 Q1´14 Q2´14 Q3´14

129 135

232

205

251

THE GROUP1

		1.7 – 30.9		1.1 - 30.9		1.1 – 31.12
Amounts in NOK million	Note	2014	20131	2014	20131	20131
Operating revenues	2	1 003	1 016	2 988	2 918	3.886
EBITDA2		225	214	573	566	710
EBITA3	2	165	157	394	403	489
Profit/loss before taxes		153	164	371	381	460
Earnings per share (NOK)	5	1.10	1.20	2.66	2.73	3.35
Net interest-bearing debt	10	657	742	657	742	728
Equity ratio (%)		58.3	50.6	58.3	50.6	54.2
Leverage ratio4		0.92	1.05	0.92	1.05	1.03
Return on capital employed5 (%)		16.3	17.0	16.3	17.0	16.9

Third quarter

Borregaard's operating revenues totalled NOK 1,003 million (NOK 1,016 million6 ) in the 3rd quarter of 2014. EBITA was NOK 165 million, compared with NOK 157 million in the corresponding quarter of 2013 and NOK 130 million in the preceding quarter. Performance Chemicals improved its EBITA in the 3rd quarter to an all-time high level, while a decline was recorded for Specialty Cellulose and Other Businesses. Currency contributed positively in all business areas.

EBITA in Performance Chemicals increased as an improved product mix and higher sales prices more than compensated for a 5% volume decrease. The decline in Specialty Cellulose was primarily due to lower sales volume and reduced sales prices. EBITA in Other Businesses decreased due to a weaker quarter for the Ingredients business.

There were no Other income and expenses in the 3rd quarter of 2014 (NOK 14 million in 2013). Net financial items were NOK -12 million compared with NOK -7 million in the 3rd quarter of 2013 due to an increased FX difference. Group profit before tax amounted to NOK 153 million (NOK 164 million) in the 3rd quarter of 2014. The 3rd quarter tax expense was NOK 43 million, giving a tax rate of 28%.

Earnings per share in the 3rd quarter were NOK 1.10 (NOK 1.20).

Cash flow from operations⁷ in the 3rd quarter of 2014 was NOK 232 million (NOK 205 million). The increase was mainly due to a reduction in net working capital compared with the corresponding quarter last year.

1. 2013 figures are restated due to implementation of IFRS 11 Joint Arrangements. See notes 1 and 13.
2. Operating profit before depreciation, amortisation and other income and expenses.
3. Operating profit before amortisation and other income and expenses.
4. Net interest bearing debt/EBITDA (LTM).
5. EBITA/(Average net working capital+Average tangible assets+Average intangible assets at cost-Average net pension liabilities-Average deferred tax excess value) (LTM).
6. Figures in parentheses are for the corresponding period in the previous year.
7. Cash Flow from operating activities according to IFRS adjusted for financial items, taxes paid, share of JV profit/dividend

Year-to-date (01.01. - 30.09.)

In the first nine months of 2014 Borregaard's operating revenues totalled NOK 2,988 million (NOK 2,918 million). EBITA was NOK 394 million, compared with NOK 403 million in the corresponding period of 2013. A notable improvement in Performance Chemicals was off-set by lower EBITA in Specialty Cellulose and Other Businesses. Currency rates had a favourable impact in all business areas. Lower production output in Sarpsborg had a negative impact on EBITA, while lower wood and energy costs contributed positively.

Net financial items amounted to NOK -23 million (NOK -35 million) in the first nine months of 2014. The improvement relates to a favourable FX difference of NOK 9 million, and a decrease in interest expenses of NOK 3 million due to a reduction in net interest-bearing debt compared with the corresponding period of 2013.

For the first nine months of 2014, profit before tax was NOK 371 million (NOK 381 million). The tax expense was NOK 106 million, giving a tax rate of 29%. Earnings per share were NOK 2.66 (NOK 2.73).

THE BUSINESS AREAS

Performance Chemicals

	1.7 – 30.9		1.1 – 30.9	1.1 – 31.12
Amounts in NOK million	2014	20131	2014	20131	20131
Operating revenues	467	416	1 381	1 225	1 645
EBITA3	125	86	329	239	314
EBITA margin (%)	26.8	20.7	23.8	19.5	19.1

Performance Chemicals posted 3rd quarter operating revenues of NOK 467 million (NOK 416 million). EBITA was NOK 125 million compared with NOK 86 million in the same period last year and NOK 111 million in the preceding quarter. This was the third consecutive all-time high EBITA for a single quarter. Market conditions for the lignin business were generally positive with strong demand in all major applications. Total sales volume was 5% lower than in the 3rd quarter of 2013 due to constraints on raw material supply. As in recent quarters, the effect of the volume reduction was more than off-set by a favourable product mix, an improved currency situation and higher prices.

In the first nine months of 2014, Performance Chemicals had operating revenues of NOK 1,381 million (NOK 1,225 million). EBITA reached NOK 329 million (NOK 239 million). An improved product mix, favourable currency rates and higher sales prices more than compensated for a 3% reduction in total sales volume. Improved technology and product performance from the new speciality line in Sarpsborg contributed positively.

8. Average sales price and sales volume include 100% of sales and volume from the J/V in South Africa. Average sales price is based on actual FX rates excluding hedging impact.

9. Metric tonne dry solid.

Specialty Cellulose

	1.7 – 30.9		1.1 – 30.9	1.1 – 31.12
Amounts in NOK million	2014	2013	2014	2013	2013
Operating revenues	384	435	1 122	1 216	1 597
EBITA3	54	75	110	189	224
EBITA margin (%)	14.1	17.2	9.8	15.5	14.0

Specialty Cellulose posted 3rd quarter operating revenues of NOK 384 million (NOK 435 million). EBITA was NOK 54 million (NOK 75 million), an improvement of NOK 25 million from the preceding quarter. The weaker result compared with the 3rd quarter of 2013 was attributable to a decreased speciality volume, lower sales prices and increased Exilva10 project activities. An improved currency situation, favourable raw material costs and higher bioethanol sales volume contributed positively. Compared with the 2nd quarter of 2014, EBITA improved due to a more favourable product mix and currency situation.

In Specialty Cellulose, operating revenues in the first nine months of 2014 totalled NOK 1,122 million (NOK 1,216 million). EBITA amounted to NOK 110 million (NOK 189 million). Lower sales prices, lower sales volume, reduced production output and increased Exilva project costs were partly compensated by lower wood and energy costs as well as the beneficial impact of a weaker NOK.

10.The Exilva project is a longterm research and development project for production of microfibrillar cellulose.
11. Average sales price is based on actual FX rates excluding hedging impact.

12. Metric tonne.

Other Businesses

	1.7 – 30.9		1.1 – 30.9	1.1 – 31.12
Amounts in NOK million	2014	2013	2014	2013	2013
Operating revenues	169	179	537	517	703
EBITA3	-14	-4	-45	-25	-49
EBITA margin (%)	-8.3	-2.2	-8.4	-4.8	-7.0

Other Businesses had total operating revenues of NOK 169 million (NOK 179 million) and an EBITA of NOK -14 million (NOK -4 million) in the 3rd quarter of 2014. The Ingredients business continued to suffer from overcapacity in the vanillin market and posted a weaker result than in the relatively strong 3rd quarter of 2013. EBITA in Fine Chemicals was slightly improved with a more favourable product mix compensating for a lower sales volume. Currency rates contributed positively for both Ingredients and Fine Chemicals. Costs related to BALI13 project activities were somewhat higher than in the 3rd quarter of 2013.

Operating revenues in Other Businesses were NOK 537 million (NOK 517 million) in the first nine months of 2014. EBITA was NOK -45 million compared with NOK -25 million in the corresponding period of 2013. The decline is mainly related to a weaker result in the Ingredients business and to higher corporate cost and BALI project activities, partly off-set by a somewhat better performance in Fine Chemicals.

13.BALI (Borregaard Advanced Lignin) is an innovation project for the development of new sources of lignin raw material

CASH FLOW AND FINANCIAL SITUATION

Cash flow from operating activities in the 3rd quarter of 2014 was NOK 227 million (NOK 180 million). The increase was mainly due to a reduction in net working capital from the corresponding period last year and dividend from the joint venture. Investments in the 3rd quarter of 2014 amounted to NOK 79 million, which is higher than in the 3rd quarter of 2013 (NOK 33 million). During the quarter, share options have been exercised. As a consequence, the Group has sold and repurchased treasury shares with a net payment of NOK 3 million.

Cash flow from operating activities was NOK 355 million (NOK 394 million) in the first nine months of 2014. The reduction is mainly due to timing of tax payments, partly off-set by a lower increase in net working capital compared with the corresponding period last year. Investments in the first nine months of 2014 amounted to NOK 162 million (NOK 182 million). During the first nine months of 2014, share options have been exercised. As a consequence, the Group has sold and repurchased treasury shares with a net payment of NOK 18 million.

As of 30 September, the Group had net interest-bearing debt totalling NOK 657 million (NOK 728 million at the end of 2013). At the end of the 3rd quarter, NOK 725 million was drawn on long-term credit facilities.

In the 3rd quarter, Borregaard has refinanced its long-term multicurrency revolving credit facilities with Svenska Handelsbanken, DNB Bank and Skandinaviska Enskilda Banken. In total, the new facilities are NOK 1,500 million with each bank providing NOK 500 million. The facilities have a tenor of five years, plus two one-year extension options.

The Group is well capitalised with an equity ratio of 58.3% at the end of September 2014.

SHARE INFORMATION

During the 3rd quarter of 2014, 155,000 share options were exercised at strike prices of NOK 17.93 and NOK 20.40. In the same period Borregaard repurchased 155,000 treasury shares at an average price of NOK 43.25 per share. Following these transactions, Borregaard held 818,434 treasury shares at the end of the 3rd quarter.

Total number of shares outstanding at 30 September 2014 was 100 million, including treasury shares. Total number of shareholders was 5,994 at the end of the 3rd quarter of 2014.

Borregaard ASA's share price was NOK 36.90 at the end of the 3rd quarter of 2014 compared with NOK 44.40 at the end of the 2nd quarter of 2014 and NOK 30.20 at the end of 2013.

OTHER MATTERS AND SUBSEQUENT EVENTS

Borregaard's Board of Directors has decided to invest in a facility for the production of Exilva microfibrillar cellulose. The plant will be built at the Borregaard site in Sarpsborg. The investment is estimated to NOK 225 million. The commercial scale facility will have an initial design capacity of 1,000 tonnes per year with a potential for expansion. Production is expected to start in the 3rd quarter of 2016.

For more details, see notification to the Oslo Stock Exchange on 22 October 2014.

OUTLOOK

Historically, Borregaaard's EBITA in the 2nd and 3rd quarters has been higher than in the 4th and 1st quarters due to payroll accounting (holiday pay in the 2nd and 3rd quarter), seasonal variations in thermal energy costs and the impact of the Sarpsborg site's annual maintenance stop in October. These factors will mainly affect Specialty Cellulose.

Performance Chemicals continues to enjoy strong demand in all major applications. Sales volume in the 4th quarter is forecast to be slightly below the 3rd quarter.

In the 4th quarter, cellulose prices in sales currency are expected to be in line with previous quarters of 2014. Specialty Cellulose product mix is expected to be similar to the 3rd quarter of 2014.

Sales revenues in Fine Chemicals are forecast to be lower in the 4th quarter than in the previous quarters of 2014. No major changes are expected in market conditions for Ingredients. Corporate and BALI project costs will largely remain at the same level as in the preceding quarters of 2014.

Sarpsborg, 21 October 2014 The Board of Directors of Borregaard ASA

THE GROUP'S CONDENSED INCOME STATEMENT

Interim condensed income statement

		1.7 – 30.9			1.1 - 30.9	1.1 – 31.12
Amounts in NOK million	Note	2014	20131	20141	20131	20131
Operating revenues	2	1 003	1 016	2 988	2 918	3 886
Operating expenses		-778	-802	-2 415	-2 352	-3 176
Depreciation property, plant and equipment		-60	-57	-179	-163	-221
Amortisation intangible assets		0	0	0	-1	-2
Other income and expenses	3	0	14	0	14	14
Operating profit		165	171	394	416	501
Financial items, net		-12	-7	-23	-35	-41
Profit before taxes		153	164	371	381	460
Taxes	4	-43	-48	-106	-110	-129
Profit for the period		110	116	265	271	331
Profit attributable to non-controlling interests		0	-4	-1	-2	-4
Profit attributable to owners of the parent		110	120	266	273	335
EBITDA adjusted2		225	214	573	566	710
EBITA adjusted3	2	165	157	394	403	489

EARNINGS PER SHARE

Interim earnings per share

		1.7 – 30.9		1.1 – 30.9		1.1 – 31.12
Amounts in NOK million	Note	2014	2013	2014	2013	2013
Earnings per share (100 million shares)	5	1.10	1.20	2.66	2.73	3.35
Diluted earnings per share	5	1.10	1.20	2.67	2.74	3.36

THE GROUP'S CONDENSED COMPREHENSIVE INCOME STATEMENT

Interim condensed comprehensive income statement

		1.7 – 30.9		1.1 – 30.9		1.1 – 31.12
Amounts in NOK million	Note	2014	20131	2014	20131	20131
Profit for the period		110	116	265	271	331
Items not to be reclassified to P&L Actuarial gains and losses (after tax)		0	0	0	0	4
Total		0	0	0	0	4
Items to be reclassified to P&L Change in hedging reserve after tax Translation effects	7	9 3	13 2	28 13	-69 25	-84 30
Total		12	15	41	-44	-54
The Group´s comprehensive income		122	131	306	227	281
Comprehensive income non-controlling interests Comprehensive income owners of the parent		-1 123	-4 135	-2 308	-2 229	-2 283

1. The 2013 figures are restated due to implementation of IFRS 11 Joint Arrangements. See Note 1 and 13.

3. Operating profit before amortisation and other income and expenses.

^2. Operating profit before depreciation, amortisation and other income and expenses.

THE GROUP´S CONDENSED BALANCE SHEET

Interim condensed statement of financial position

Amounts in NOK million	Note	2014 30.9	20131 31.12
Intangible assets	12	69	57
Property, plant and equipment	12	1 911	1 941
Other assets	8	78	51
Investment in joint venture	1, 13	91	101
Non-current assets		2 149	2 150
Inventories		548	545
Receivables		713	693
Cash and cash deposits	10	79	39
Current assets		1 340	1 277
Total assets		3 489	3 427

Group equity	9	2 028	1 847
Non-controlling interests		7	9
Total Equity		2 035	1 856
Provisions and other liabilities		143	141
Interest-bearing liabilities	10	746	774
Non-current liabilities		889	915
Interest-bearing liabilities	10	7	6
Other current liabilities	8	558	650
Current liabilities		565	656
Equity and liabilities		3 489	3 427

Equity ratio		58.3%	54.2%

CHANGES IN EQUITY

Interim condensed change in equity

		1.1 – 30.9.2014				1.1 – 31.12.20131
Amounts in NOK million	Note	Controling interests	Non-controlling interests	Total Equity	Controlling interests	Non-controlling interests	Total Equity
Equity 1.1		1 847	9	1 856	1 691	11	1 702
Profit/loss for the period The Group´s comprehensive income	7	266 42	-1 -1	265 41	335 -52	-4 2	331 -50
Total comprehensive income Option costs (share based payment)	7	308	-2	306	283 6	-2 0	281 6
Dividend	9	-109	0	-109	-100	0	-100
Buy-back of treasury shares Exercise of share options	9 6	-39 21	0 0	-39 21	-33 0	0 0	-33 0
Equity at the close of the period	9	2 028	7	2 035	1 847	9	1 856

THE GROUP'S CONDENSED CASH FLOW STATEMENT

Interim condensed cash flow statement

		1.7– 30.9		1.1 - 30.9		1.1 – 31.12
Amounts in NOK million	Note	2014	20131	2014	20131	20131
Profit before taxes Amortisation, depreciation and impairment charges Changes in net working capital, etc. Dividend (share of profit) from JV Taxes paid		153 60 7 21 -14	164 66 -32 -6 -12	371 179 -77 8 -126	381 172 -124 -16 -19	460 231 -17 -19 -129
Cash flow from operating activities		227	180	355	394	526
Investments property, plant and equipment and intangible assets* Other capital transactions		-79 0	-33 3	-162 2	-182 7	-288 2
Cash flow from investing activities		-79	-30	-160	-175	-286
Dividends Proceeds from exercise of share options Buy-back of treasury shares Change in equity hedge	9 6	0 4 -7 -11	0 0 -22 0	-109 44 -62 -4	-100 0 -22 0	-100 0 -33 0
Net paid to/from shareholders		-14	-22	-131	-122	-133
Proceeds from interest-bearing liabilities Repayment of interest-bearing liabilities Change in interest-bearing receivables	10 10 10	0 -13 0	0 -82 1	734 -761 -4	0 -107 -2	0 -218 -1
Change in net interest-bearing liabilities		-13	-81	-31	-109	-219
Cash flow from financing activities		-27	-103	-162	-231	-352
Change in cash and cash equivalents		121	47	33	-12	-112

Cash and cash equivalents at beginning of period Change in cash and cash equivalents Currency effects cash and cash equivalents		-44 121 2	89 47 0	39 33 7	134 -12 14	134 -112 17
Cash and cash equivalents at the close of the period	10	79	136	79	136	39
*Investments by category
Replacement investments Expansion investments		48 31	21 12	104 58	143 39	226 62

NOTE 1 NOTES

Organisation and basis for preparation

General information

Borregaard ASA is incorporated and domiciled in Norway. The address of its registered office is Hjalmar Wessels vei 10, Sarpsborg.

Borregaard ASA was listed on the Oslo Stock Exchange on 18 October 2012 and was incorporated as a public limited liability company on 22 August 2012.

Basis for preparation

These unaudited Interim Condensed Consolidated Financial Statements are prepared in accordance with IAS 34 Interim Financial Reporting. Borregaard ASA is the parent company of the Borregaard Group presented in these Interim Condensed Consolidated Financial Statements.

With the exception of implementation of new accounting principles as described below, the same accounting principles and methods of calculation have been applied as in the Consolidated Financial Statements for 2013 for the Borregaard Group.

New accounting principles

Future effects of new accounting standards were described in the Consolidated Financial Statements for 2013. IFRS 11 Joint Arrangement is implemented from 1 January 2014. The impact IFRS 11 had on the 2013 figures after implementation is described in Note 13. Changes in IFRS 10 Consolidated Financial Statements did not have any impact on the consolidated figures.

Use of estimates

The same use of estimates has been applied as in the Consolidated Financial Statements for 2013.

Segments

Operating revenues

	1.7 – 30.9		1.1 – 30.9	1.1 – 31.12
Amounts in NOK million	2014	20131	20141	2013	2013
Borregaard	1 003	1 016	2 988	2 918	3 886
Performance Chemicals	467	416	1 381	1 225	1 645
Specialty Cellulose	384	435	1 122	1 216	1 597
Other Businesses	169	179	537	517	703
Eliminations	-17	-14	-52	-40	-59

EBITA3

	1.7 – 30.9		1.1 – 30.9	1.1 – 31.12
Amounts in NOK million	2014	20131	20141	20131	20131
Borregaaard	165	157	394	403	489
Performance Chemicals	125	86	329	239	314
Specialty Cellulose	54	75	110	189	224
Other Businesses	-14	-4	-45	-25	-49
Reconciliation against operating profit and profit before taxes
EBITA adjusted3	165	157	394	403	489
Amortisation intangible assets	0	0	0	-1	-2
Other income and expenses	0	14	0	14	14
Operating profit	165	171	394	416	501
Financial items, net	-12	-7	-23	-35	-41
Profit before taxes	153	164	371	381	460

There are limited intercompany sales between the different segments and eliminations consist essentially of allocations from the corporate headquarter.

NOTE 3

Other income and expenses

There are no Other income and expenses in the 3rd quarter of 2014.

NOTE 4

Income tax expense

The tax rate of 28.6% for the first nine months of 2014 is a compilation of the tax rates in the various countries in which Borregaard operates and has taxable income. The normal tax rate is expected to be in the range 28 - 31%. The tax rate in Norway was reduced from 28% to 27% from 1 January 2014.

Earnings per share (EPS)

The share capital consists of 100 million shares as of 30 September 2014. The company holds 818,434 treasury shares. As of 30 September 2014, there are 99,575,488 diluted shares. Earnings per diluted share ended at NOK 2.67 after the first nine months of 2014. As of 31 December 2013, there were 99,591,765 diluted shares.

NOTE 6

Stock options

During the 3rd quarter of 2014, 155,000 share options have been exercised.

The Group Executive Management and other key employees hold a total of 798,800 stock options in two different share option programmes in Borregaard. The first programme has a total of 548,800 outstanding stock options at a strike price of NOK 17.93. The second programme has a total of 250,000 outstanding stock options at a strike price of NOK 20.40. The strike prices have been adjusted for dividends in 2013 and 2014, NOK 2.10 in total. The share options were vested on 18 October 2013 and can be exercised until the end of October 2016.

NOTE 7

Statement of comprehensive income

The statement of comprehensive income shows changes in the value of hedging instruments (hedging reserve). These figures are presented after tax. The tax effect for the first nine months of 2014 relating to the hedging reserve amounts to NOK 2 million (NOK -7 million as of 30 September 2013). Total hedging reserve included in equity as of 30 September 2014 (after tax) amounts to NOK -6 million (NOK -19 million as of 30 September 2013).

Fair value hierarchy

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occured between levels in the hierarchy by re-assessing categorisation at the end of each reporting period.

The following measurement levels are used for determining the fair value of financial instruments:

Level 1 Quoted market prices in an active market (that are unadjusted) for identical assets or liabilities
Level 2 Valuation techniques (for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable)
Level 3 Valuation techniques (for which the lowest level input that is significant to the fair value measurement is unobservable)

There were no transfers from one level to another in the measurement hierarchy from 2013 to the 3rd quarter of 2014. Borregaard has no items defined as level 1 and level 3, respectively.

Set out below is a comparison of the carrying amount and the fair value of financial instruments as of 30 September 2014:

Financial assets

Carrying amount	Fair value
20	20
-	-

-	-
18	18

Financial assets measured at fair value Amounts in NOK million	2014 30.9	Level 1	Level 2	Level 3
Foreign currency forward contracts	2	0	2	0

The foreign currency forward contracts are measured based on observable spot exchange rates, the yield curves of the respective currencies as well as the currency basis spreads between the respective currencies

Compilation of Equity

	2014	2013
Amounts in NOK million	30.9	31.12
Share Capital	100	100
Treasury shares	-1	-1
Share premium	1 346	1 346
Other paid-in equity	269	308
Translation effects	-72	-86
Hedging reserve	-6	-34
Actuarial gains/losses	4	1
Retained earnings	388	213
Group equity (controlling interests)	2 028	1 847

As of 30 September 2014, the company held 818,434 treasury shares at an average cost of NOK 43.25.

NOTE 10

Net interest-bearing debt

The various elements of net interest-bearing debt are shown in the following table:

	2014	20131
Amounts in NOK million	30.9	31.12
Non-current interest-bearing liabilities	746	774
Current interest-bearing liabilities including overdraft of cashpool	7	6
Non-current interest-bearing receivables (included in "Other Assets")	-17	-13
Cash and cash deposits	-79	-39
Net interest-bearing debt	657	728

NOTE 11

Related parties

The members of the Group Executive Management of Borregaard hold a total of 458,800 stock options in the Company.

Assessments relating to impairment

No impairment indicators have been identified in the Borregaard Group's property, plant and equipment or intangible assets in the 3rd quarter of 2014.

NOTE 13

Effects of implementing IFRS 11 Joint Arrangements from 1 January 2014

IFRS 11 Joint Arrangements replaces IAS 31 Interests in Joint Ventures. IFRS 11 removes the option to account jointly controlled entities using proportionate consolidation. Instead joint ventures must be accounted for using the equity method. The result of the joint venture is accounted for as part of operating profit, as it is part of Performance Chemicals. The impact of the application is as follows for the 2013 figures:

	2013	Effect of IFRS 11	Restated 2013
Operating revenues	3 997	-111	3 886
Operating profit	513	-12	501
Profit for the period	331	0	331

Earnings per share	3.35	0	3.35

Non-current assets	2 101	-52	2 049
Share in Joint Venture	-	101	101
Current assets	1 285	-47	1 238
Cash and cash equivalents	58	-19	39
Total assets	3 444	-17	3 427

Equity	1 856	0	1 856
Non-current liabilities	923	-8	915
Current liabilities	665	-9	656
Equity and liabilities	3 444	-17	3 427

The opening balance 1.1.2013 of the Share in joint venture is measured as the aggregate of the carrying amounts of the assets and liabilities that the entity had previously as proportionately consolidated. This is regarded as deemed cost for the joint venture at initial recognition.

NOTE 14

Other matters and subsequent events

There have been no events after the balance sheet date that would have had an impact in the financial statements or the assessments carried out.

NOTES

Borregaard ASA

P.O. Box 162 NO-1701 Sarpsborg, Norway Telephone (+47) 69 11 80 00 Fax (+47) 69 11 87 70 email: [email protected] www.borregaard.com