Borregaard — Investor Presentation 2016

Jul 18, 2016

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Agenda

• • Per A Sørlie, President & CEO
• •Highlights
• •Business areas
• •Outlook
• • Per Bjarne Lyngstad, CFO
• •Financial performance

Highlights – ²nd quarter 2016

• •All-time high EBITA adj.1) for the Group
• •Positive currency effects in all business areas
• • High sales volumes and good results for Performance Chemicals and Fine Chemicals
• • Improved product mix and result in Specialty Cellulose
• • Energy conservation measures contributed to lower production costs
• •Strong cash flow

Performance Chemicals markets – Q2

• • Weaker product mix and slightly lower prices in sales currency
• • Product mix affected by challenging market conditions in the construction and oil sectors and by reallocation of sales volumes
• •Flambeau volume primarily into low and medium-value applications
• • 13% volume growth
• •Volume growth mainly from the acquired Flambeau business
• Positive development in sales to agrochemicals
• Positive FX impact vs Q2-15

New lignin volumes

• • Capacity increase in South Africa
• •20,000 mtds expansion on track
• •Commissioning mid-year 2017
• • Florida project in two phases
• •Phase one: 110 mUSD, 100,000 mtds lignin capacity
• •Phase two: 25 mUSD, 50,000 mtds lignin capacity addition
• • Investment decision anticipated in H2-16
  • •Permits and incentives from government entities pending
  • •Start-up approximately 18 months after decision
• • Status LignoTech Ibérica
• •Successful re-capitalisation of Spanish lignin partner Sniace
• • Operations expected to gradually resume during H2-16 after comprehensive maintenance
• •Full capacity (65,000 mtds lignin) requires investments in textile operation

Specialty Cellulose markets – Q2

• •Improved product mix vs Q2-15
• Slightly lower prices in sales currency
• •Sales volume in line with production
• •Positive FX impact

1) Average sales price is calculated using actual FX rates, excluding hedging impact.

Ingredients and Fine Chemicals markets – Q2

• Ingredients
• •Continued challenging market conditions

• •Positive FX impact

• Fine Chemicals

• •High shipments of key products
• •Positive FX impact

Outlook

• • Performance Chemicals
• •Continued weak business climate and strong price competition in important markets
• •Efforts to reallocate volume to other applications and regions will continue
• • Sales volume in 2016 expected to increase by slightly more than the full-year impact of the Flambeau volume
• •Average price and product mix will be affected by Flambeau volume and reallocation efforts
• •In Q3-16, sales volume forecast to be slightly below Q2-16
• • Specialty Cellulose
• •Average price in sales currency expected to be approx. 2% below 2015 level
• •Price uncertainty mainly related to textile cellulose
• •Product mix in 2016 forecast to improve slightly from 2015
• •In Q3-16, sales volume expected to be in line with Q3-15, and with a similar product mix
• • Other Businesses
• •No major changes expected in market conditions for Ingredients and Fine Chemicals
• • Exilva project costs, net of EU grant, expected to increase in 2016 due to start-up and additional marketing and business development activities
• •Corporate costs will remain at largely the same level as in 2015
• • Currency, including hedging impact, expected to contribute positively in all business areas in H2-16, although less than in H1-16

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Borregaard key figures – Q2

• •Revenues increased by 11% vs Q2-15
• • All-time high quarterly EBITA adj.1)
• Strong positive FX impact and improved result in all business areas
• • EPS at NOK 1.54 in Q2-16, an improvement of NOK 0.62 from Q2-15
• Other income and expenses1) +13 mNOK (additional insurance compensation for seasoning silos off-set by provision for contaminated soil related to previously phased-out chlor-alkali technology)

Performance Chemicals key figures – Q2

• •13% revenue growth vs Q2-15
• •Favourable FX impact
• • 13% sales volume growth, mainly from the acquired Flambeau business
• •All-time high EBITA adj., strong FX impact
• •Challenging market conditions continued
• •Weaker product mix
• •Slightly lower prices in sales currency
• •Volume increase

•EBITA adj. margin in line with Q2-15

Specialty Cellulose key figures – Q2

• •5% revenue growth vs Q2-15

• •Favourable FX impact

• •Strong improvement in EBITA adj.

• •Positive FX impact and improved product mix
• •Lower production costs
• •Lower volume and slightly lower sales prices
• •Higher contribution from bioethanol

•Significant improvement in EBITA adj. margin

Other Businesses key figures – Q2

• •High sales in Fine Chemicals

• •Positive FX impact

• • Ingredients: Improved EBITA adj. vs Q2-15, mainly due to favourable FX effects

• • Fine Chemicals: Strong result due to high Chemicals: shipments of key products and positive FX impact
• • Exilva net project costs, including EU grant, increased due to a higher level of marketing and business development activities

Currency impact

• • Net FX EBITA adj. impact approx. 75 mNOK vs Q2-15
• •Includes change in hedging effects and based on estimated Q2-16 currency exposure
• Net FX EBITA adj. impact YTD approx. 165 mNOK
• • Net FX EBITA adj. impact in 2016 estimated to be 235 mNOK vs 2015
• •Assuming rates as of 15 July (USD 8.37 and EUR 9.32) and expected currency exposure
• Net FX EBITA adj. impact in Q3-16 estimated to be 40 mNOK vs Q3-15
• 1) See appendix for currency hedging strategy, future hedges and hedging effects by segment
• 2) Currency basket based on Borregaard's net exposure in 2015 (=100)
• •USD 71% (approximately 214 mUSD)
• •EUR 29% (approximately 78 mEUR)
• •Other 0% (GBP, BRL, JPY, SEK, ZAR)

Cash flow, investments and NIBD

• • Strong cash flow in Q2-16
• High EBITDA adj. and significant decrease in net working capital
• • High investments in the quarter
• •Replacement investments impacted by the construction of new seasoning silos
• Expansion investments1) in Q2 mainly related to the Exilva and Ice Bear projects
• •Dividend payment of 149 mNOK in Q2

• •NIBD decreased by 153 mNOK in Q2

• •Per A Sørlie, President & CEO

• •Per Bjarne Lyngstad, CFO

Save the date:

Borregaard Capital Markets Day

Tuesday 20 September 2016 in Sarpsborg, Norway

• • Presentations including update on operations and strategic projects, markets, finance and sustainability
• •Site visit and demonstration of Borregaard products

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Borregaard - key figures

l l l l Am in N O K i i io io ts ou n m m n n	Q Q 2- 2- 2 2 0 0 1 1 6 6	Q Q Q 2- 2- 2- 2 2 2 0 0 0 1 1 1 5 5 5	ha C ng e	Y T D- 2 0 1 6	Y T D- 2 0 1 5	ha C ng e
O O in in t t p p er er a a g g re ve nu es	1 1 1 6 7	1 0 5 4	% 1 1	2 2 2 8 0	2 2 0 0 6 6 1 1	% 1 1
) 1 d E B I T D A j. a	2 6 9 2 6 9	1 9 6 1 9 6	3 % 7	0 5 5 0 5 5	3 6 3 6 5 5	3 8 %
1 ) d E B I T A j. a	2 2 0 0 0 0	1 1 3 3 1 1	% 5 3	3 3 7 7 1 1	2 2 3 3 6 6	% 5 7
b les Am isa io in i t t ta or n ng	-1	0		-2	0
1) he d e O inc t r om e a n xp en se s	1 3	0		1 3	0
f f ( ( ) ) O O in in i i E E B B I I T T t t t t p p er er a a g g p p ro ro	2 1 2 2 1 2	1 3 1	6 2 %	3 8 2 3 8 2	2 3 6 2 3 6	6 2 %
l F ina ia i te t nc m s, ne	-5	-6		-1 4	-1 1
f / fo fo lo be be Pr i t ta o ss re re xe s	2 2 0 0 7 7	1 2 5	% 6 6	3 3 6 6 8 8	2 2 2 2 5 5	% 6 4
Ta xe s	-5 3	-3 3		-9 4	-6 0
/ f lo fo fo he d d Pr i io io t t o ss r r p p er er	1 5 4	9 2	6 7 %	2 7 4 2 7 4	1 6 5	6 6 %
f / los bu b le l l i i ing in Pr t t tr ta to tro te ts o s a n on -c on re s	0	0		-1	-1
/ f los bu b le f he Pr i i t t tr ta to t t o s a o wn er s o p ar en	1 5 4	9 2		2 7 5	1 6 6
h h f f lo lo fr fr ( ) Ca Ca in iv i ie I F R S t t t s s w w om om o p er a g ac s	4 4 3 3 3 3	1 4 6		3 6 4	6 4
( ) ha ha Ea in N O K rn g s p er s s re re	1, 5 4	0, 9 2	% 6 7	2, 7 5	1, 6 6	% 6 6
1) d d d A j E B I T D A j. in te us a m ar g	2 3, 1 %	1 8, 6 %		2 2, 1 %	1 7, 7 %
1) d d d A j I A j. in E B T te us a m ar g	1 7, 1 %	1 2, 4 %		1 6, 3 %	1 1, 5 %

1) Non-GAAP measure, see Appendix for definition.

Operating revenues and EBITA adj. per segment

	l l Am in N O K i io ts ou n m n
O in t p er a g re ve nu es	Q 2- 2 0 1 6
d d Bo Bo rr rr eg eg aa aa r r	1 1 6 1 1 6 7 7	1 0 4 1 0 5 5 4	1 1 %
fo he ls Pe C ica r rm an ce m	5 8 4	5 1 5	1 3 %
l l lu lo Sp ia Ce ty ec se	3 8 5	3 6 5	% 5
he O Bu in t r s es se s	2 0 6	1 8 3	1 3 %
l E im in io t a ns	-8	-9

	Am in N ts ou n	l l O K i io m n			Am in N ts ou n	l l O K i io m n
O O in in t t p p er er a a g g re ve nu es	Q 2- 2 0 1 6 Q 2- 2 0 1 6	Q 2- 2 0 1 5	ha C ng e	d E B I T A d j. j. a a	Q 2- 2 0 1 6 Q 2- 2 0 1 6	Q 2- 2 0 1 5 Q 2- 2 0 1 5	ha C ng e
d d Bo Bo rr rr eg eg aa aa r r	6 1 1 1 1 6 7 7	0 1 1 0 5 5 4 4	% 1 1	d Bo rr eg aa r	2 0 0 2 0 0	3 1 1	3 % 5
fo he ls Pe C ica r rm an ce m	5 8 4	5 1 5	1 3 %	fo he ls Pe C ica r rm an ce m	1 4 0	1 2 7	1 0 %
l l lu lo Sp ia Ce ty ec se	3 8 5	3 6 5	% 5	l l lu los Sp ia Ce ty ec e	6 8	1 8	2 8 % 7
he O Bu in t r s es se s	2 0 6	1 8 3	1 3 %	he O Bu in t r s es se s	-8	-1 4	4 3 %

	l l Am in N O K i io ts ou n m n
O in t p er a g re ve nu es	2 0 1 6 Y T D-
d d Bo Bo rr rr eg eg aa aa r r	2 2 2 2 8 8 0 0	2 2 0 0 6 6 1 1	1 1 %
fo he ls Pe C ica r rm an ce m	1 1 3 4	1 0 1 8	1 1 %
l l lu lo Sp ia Ce ty ec se	7 6 8	7 0 1	% 1 0
he O Bu in t r s es se s	3 9 6	3 5 9	% 1 0
l E im in io t a ns	-1 8	-1 7

l l in O i io Am N K ts ou n m n				l l in O i io Am N K ts ou n m n
O O in in t t p p er er a a g g re ve nu es	Y T D- 2 0 1 6 Y T D- 2 0 1 6	Y T D- 2 0 1 5	ha C ng e	d E B I T A d j. j. a a	Y T D- 2 0 1 6	Y T D- 2 0 1 5 Y T D- 2 0 1 5	ha C ng e
d d Bo Bo rr rr eg eg aa aa r r	2 2 2 2 8 8 0 0	2 2 0 0 6 6 1 1	% 1 1	d Bo rr eg aa r	3 3 7 7 1 1	2 3 6	% 5 7
fo he ls Pe C ica r rm an ce m	1 1 3 4	1 0 1 8	1 1 %	fo he ls Pe C ica r rm an ce m	2 7 8	2 3 8	1 7 %
l l lu lo Sp ia Ce ty ec se	7 6 8	7 0 1	% 1 0	l l lu los Sp ia Ce ty ec e	1 2 1	2 6	% 3 6 5
he O Bu in t r s es se s	3 9 6	3 5 9	% 1 0	he O Bu in t r s es se s	-2 8	-2 8	% 0

Cash flow

in O i l l io Am N K nt ou s m n	Q Q 2- 2- 2 2 0 0 1 1 6 6	Q 2- 2 0 1 5	2 0 1 6 Y T D-	2 0 1 Y T D- 5	2 0 1 F F Y- Y- 2 0 1 5 5
l l Am in N O K i io nt ou s m n
f be fo Pro it tax re es	2 0 7	1 2 5	3 6 8	2 2 5	5 0 6
de d ha Am isa ion iat ion im irm t t t c or p rec an p a en rg es ,	6 9	6 5	1 3 5	1 2 9	2 6 9
ha k l, C in ing ita t w etc ng e ne or ca p	2 0 4	-8	-3 9	-2 0 2	-1 0 6
de d ( ha f p f ) fro D iv i it J V n s re o ro m	-1 6	-1 9	-3 8	-1 8	-1 4
d Ta i xe s p a	-3 1	-1 7	-6 2	-7 0	-9 2
h f low fro Ca ing iv it ies at ct s m op er a	4 3 3 3 3 4	1 4 6 6 1 4	3 6 4	6 4	5 6 3
lan d e d b le Inv ip int i est nts ert t a nt ts me p ro p y, p n q u me an an g as se	-1 4 2	-1 0 6	-2 1 3	-1 5 9	-4 3 0
he l tr Ot ita ion ct r c ap an sa s	1	0	2	3	5
h h f f low low fro Ca Ca In ing iv iv it it ies ies st ct t s s m ve a ac	-1 4 1	-1 0 6	-2 1 1	-1 5 6	-4 2 5
de ds D iv i n	-1 4 9	-1 2 4	-1 4 9	-1 2 4	-1 2 4
ds fro f s ha Pro ise ion t ce e m ex erc o re op s	2	0	3	0	1 1
ba k o f t ha Bu y- c rea su ry s res	-9	0	-9	0	-5
/ ( los ) he dg fo bs d Ga in inv in i iar ies et est nts s on es r n me su	1 8	3 3	2 9	-1 0	-7 6
/ d t fro ha ho l de Ne i t p a o m s re rs	-1 3 8	1 - -9 9 1	-1 2 6	-1 3 4	-1 9 4
ds fro be l b l Pro int ing ia i it ies st- ce e m ere ar	1 0 0	1 0 0	1 0 0	1 0 0	1 0 0
f be l b l Re int ing ia i it ies nt st- p ay me o ere ar	-1 0 2	-2	-1 0 4	-4	-1 0 9
/ ha be b les l b l C in int ing iva ia i it ies st- ng e ere ar re ce	-6	4	-1 5	-1 2	2 1
ha ha be be l l b b l l C C in int int ing ing ia ia it it ies ies t t- t- ng ng e e ne er er es es ar ar	-8 -8	1 0 2	-1 9	8 4	1 2
h h f f low low fro f Ca Ca in ing iv it ies ct s s m an c a	-1 -1 4 4 6 6	1 1	-1 4 5	-5 0	-1 8 2
ha ha h d h len len C C in iva iva ts ts ng ng e e ca s an ca s eq eq u u	1 1 4 4 6 6	5 1	8	-1 4 2	-4 4
h a d c h e iva len f be inn ing f p io d Ca ts s n as q u as o g o er	8 1	-8	9 1 6	8 1 6	8 1 6
ha in h a d c h e iva len C ts ng e ca s n as q u	6 1 4	5 1	8	2 -1 4	-4 4
f fec Cu h a d c h e iva len ts ts rre nc y e ca s n as q u	-1	-7	-1 4	0 1	4 5
h h len he los f t he Ca d iva io d ts at t s an ca s eq u c e o p er	1 6 3	3 6	1 6 3	3 6	1 6 9

Balance sheet

l l l l Am in N O K i i io io ts ou n m m n n	3 0. 0 6. 2 0 1 6	3 1. 0 3. 2 0 1 6	3 1. 1 2. 2 0 1 5
As ts se :
b le In i ta ts ng as se	1 2 7	1 3 1	1 3 7
lan d e Pr ip ty t a t op er p n q u me n ,	2 2 0 0	2 1 2 1	2 1 2 2
he O t ts r a ss e	1 2 1	1 6 5	1 2 1
Inv in j in tm ts t v tu es en o en re	1 4 5	1 2 8	1 0 6
No No t a t a ts ts n- n- cu cu rre rre n n ss ss e e	2 5 9 3 2 5 9 3	2 5 4 5 2 5 4 5	2 4 8 6 2 4 8 6
Inv ies to en r	6 7 1	6 8 4	6 7 6
b les Re iva ce	9 8 1	1 0 0 8	8 3 8
h a d c h de Ca i ts s n as p os	1 6 3	3 9	1 6 9
Cu t a ts rre n ss e	1 8 1 5	1 7 3 1 1 7 3 1	1 6 8 3 1 6 8 3
l a To ta ts ss e	4 4 0 8	4 2 7 6 4 2 7 6	4 1 6 9 4 1 6 9
d de b Eq i ty t: u a n
Gr Eq i ty ou p u	2 3 8 5	2 3 7 6	2 0 5 6
l l No ing in tro te ts n- co n res	4	5	5
Eq i ty u	2 3 8 9	2 2 3 3 8 8 1 1	2 2 0 0 6 6 1 1
d o he l b l Pr is ion ia i i ies t t t ov s a n r n on -cu rre n	3 3 5	3 6 7	4 0 8
be l b l In ing ia i i ies te t- t res ar	7 8 4	7 9 1	8 0 2
l l b b l l No No ia ia i i i i ies ies t t t t n- n- cu cu rre rre n n	1 1 1 1 1 1 9 9	1 1 1 1 5 8 8 5	1 1 2 2 1 1 0 0
be l b l In ing ia i i ies te t- t res ar	9	3 1	9
he l b l O ia i i ies t t r	8 9 1	7 0 6	8 8 9
l l b b l l Cu ia ia i i i i ies ies t t t rre n	9 9 0 0 0 0	7 7 3 3 7 7	8 9 8
d l l b b l l Eq Eq i i ia ia i i i i ies ies ty ty t t a n u u	4 4 4 4 0 0 8 8	4 4 2 7 6	4 4 1 1 6 6 9 9
( ) % Eq i io ty t u ra :	% 5 4, 2	% 5 5, 7	% 4 9, 4

Net financial items & net interest-bearing debt

l l i O i i A N K t m o u n s n m o n
f f l l N N i i i i i t t t e e n n a a n n c c a a e m s	Q Q 2- 2- 2 2 0 0 1 1 6 6 Q 2- 2 0 1 6	Q 2- 2 0 1 5 Q 2- 2 0 1 5	Y Y T T D D 2 2 0 0 1 1 6 6 Y T D 2 0 1 6 - - -	Y T D 2 0 1 5 Y T D 2 0 1 5 - -
N i t t t e n e r e s e x p e n s e s	6 -	6 -	1 1 -	1 3 -
/ l i C u r r e n c y g a n o s s	1	1	2 -	3
h f l O i i i t t t e r n a n c a e m s, n e	0	1 -	1 -	1 -
f f l l N N i i i i i t t t e e n n a a n n c c a a e m s	5 5 - -	6 -	1 4 -	1 1 -

l l A i N O K i i t m o u n s n m o n
b d b ( ) N N i i N I B D t t t t- t e e n e r e s e a r n g e	3 3 0 0 0 0 6 6 2 2 0 0 1 1 6 6 3 0 0 6 2 0 1 6	3 1 0 3 2 0 1 6 3 1 0 3 2 0 1 6	3 1 1 2 2 0 1 5 3 1 1 2 2 0 1 5
b l b l N i i i i i i t t t- t o n- c u r r e n n e r e s e a r n g a e s	7 8 4	7 9 1	8 0 2
b l b l i i i i i i C t t t- t u r r e n n e r e s e a r n g a e s	9	3 1	9
b b l i i i N t t t- o n- c u r r e n n e r e s e a r n g r e c e v a e s	2 0 -	2 0 -	1 8 -
h d h d C i t a s a n c a s e p o s s	1 6 3 -	3 9 -	1 6 9 -
b d b ( ) N N i i N I B D t t t t- t e e n e r e s e a r n g e	6 6 1 1 0 0	7 6 3	6 2 4

Currency hedging strategy

Purpose is to delay effects of currency fluctuations and secure competitiveness

• • Hedging based on expected EBITA adj. impact1)
• • Base hedge: 75%/50% on a rolling basis for 6/9 monthBase s for major currencies
• • Extended hedge: 75%/50% of the next 24/36 months if hedge: USD and EUR are above defined levels EUR; effective rate above 8.50USD; gradually at effective rates between 7.50 and 8.50
• • Contracts2): 100% hedged:
• •Balance sheet exposure hedged 100%
• •Net investments in subsidiaries hedged up to 90% of book value in major currencies

	U S D l l i ion m	U S D te ra	E U R l l i ion m	E U R te ra
Q 3- 2 0 1 6	3 8	8. 0 4	1 9	8. 5 3
Q 4- 2 0 1 6	3 7	7. 9 6	1 8	8. 6 4
2 0 6 Ro Y 1	6 7	8. 0 0	3 6	8. 9 5
2 0 1 7	1 4 7	8. 0 3	7 0	8. 8 4
2 0 1 8	1 2 0	8. 1 7	6 3	9. 3 6
2 0 1 9	4 4	8. 3 5	2 5	9. 7 6

Contracted FX hedges with EBITA FX hedges with EBITA with adj. impactadj.

NOK million Q2-16 Q2-15 YTD-16 YTD-15Performance Chemicals -7 -18 -19 -40 Specialty Cellulose -11 -29 -33 -69 OtherBusinesses -6 -7 -15 -15 Borregaard - -24 -54 -67 -124

Hedging Hedging effects effects by segment by

1) Hedging done mainly in the Norwegian company

^{2 3}2) Strict definitions for contracts applied for 100% hedging (mutually binding agreement in which price, currency, volume and time are defined)

Debt, credit facilities and solidity

•Debt and overdraft facilities

• Long-term credit facilities
• • 1,500 mNOK revolving credit facilities, maturity 2020
• 400 mNOK 5-year bond issue, maturity 2019
• • 40 mEUR 10-year loan, maturity 2024
• • Overdraft facilities
• •225 mNOK
• • Solidity (covenants)
• Equity ratio 54.2% (> 25%)
• •Leverage ratio1) LTM 0.68 (< 3.25)

2 50978411 ¹⁶³ 1 90002505007501 0001 2501 5001 7502 0002 2502 500Long-termdebtOtherNIBDCash & cashequivalentsUndrawnfacilitiesTotalavailableNIBD 610 mNOK

Debt and undrawn facilities30.6.2016

Non-GAAP measures

In the discussion of the reported operating results, financial position and cash flows, Borregaard refers to certain measures which are not defined by generally accepted accounting principles (GAAP) such as IFRS. Borregaard management makes regular use of these non-GAAP measures and is of the opinion that this information, along with comparable GAAP measures, is useful to investors who wish to evaluate the company's operating performance, ability to repay debt and capability to pursue new business opportunities. Such non-GAAP measures should not be viewed in isolation or as an alternative to the equivalent GAAP measure.

• • Cash flow from operations:
• •Cash flow from operating activities (IFRS) + tax paid +/- net financial items +/- dividend (share of profit) from JV.
• • EBITA adjusted (EBITA adj.)
• Operating profit before amortisation and other income and expenses.
• • EBITA adj. margin
• EBITA adj. divided by operating revenues
• • EBITDA adjusted (EBITDA adj.)
• •Operating profit before depreciation, amortisation and other income and expenses.
• • Expansion investments
• • Investments made in order to expand production capacity, produce new products or to improve the performance of existing products. Such investments include business acquisitions, pilot plants, capitalised R&D costs and new distribution set-ups.
• • Other income and expenses
• • Non-recurring items or items related to other periods or to a discontinued business or activity. These items are not viewed as reliable indicators of future earnings based on the business areas' normal operations. These items will be included in the Group's operating profit.
• • Leverage ratio
• Net interest-bearing debt divided by last twelve months' (LTM) EBITDA adj.

Important notice

This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated ('relevant persons'). Any person who is not a relevant person should not act or rely on this presentation or any of its contents.

This presentation does not constitute an offering of securities or otherwise constitute an invitation or inducement to any person to underwrite, subscribe for or otherwise acquire securities in any company within the Borregaard Group. The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law, and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about, and observe, such restrictions.

This presentation includes and is based, inter alia, on forward-looking information and contains statements regarding the future in connection with the Borregaard Group's growth initiatives, profit figures, outlook, strategies and objectives. All forward-looking information and statements in this presentation are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for the Borregaard Group and its lines of business. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions.

Important factors may lead to actual profits, results and developments deviating substantially from what has been expressed or implied in such statements. Although Borregaard believes that its expectations and the presentation are based upon reasonable assumptions, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in the presentation.

Borregaard is making no representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the presentation, and neither Borregaard nor any of its directors, officers or employees will have any liability to you or any other persons resulting from your use.

This presentation was prepared for the interim results presentation for the second quarter of 2016, held on 18 July 2016. Information contained herein will not be updated. The slides should also be read and considered in connection with the information given orally during the presentation.