Borregaard — Investor Presentation 2017

Jul 18, 2017

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Agenda

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

Highlights – ²nd quarter 2017

• •All-time high EBITA adj.¹ for the Group
• • Favourable product mix in Performance Chemicals
• • Increased prices, high sales volume and improved product mix in Speciality Cellulose
• •Strong quarter for Fine Chemicals
• • Increased energy, raw material and chemicals costs
• • Cash flow from operations¹ affected by increased net working capital

Performance Chemicals markets – Q2

• Higher average sales price vs Q2-16
• Favourable product mix for Specialities
• Sales volume decreased by 3% vs Q2-16
• Challenging construction market
• Specialities volume in line with Q2-16
• • Stable inventory levels
• Reallocation efforts and flexibility in external raw material supply

1 Average sales price and sales volume reflect 100% of sales and volume from the J/V in South Africa. Average sales price is calculated using actual FX rates, excluding hedging impact.

Speciality Cellulose markets – Q2

• • Increased prices vs Q2-16
• Higher sales prices for most grades
• •Market prices for textile cellulose declined during Q2, but delayed effect for Borregaard
• • Improved product mix and high sales volume
• •High deliveries of acetate cellulose
• Continued strong demand for ether grades

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

Ingredients and Fine Chemicals markets – Q2

• Ingredients

• •Lower sales volume

• Fine Chemicals

• •High deliveries of key products

Outlook

• • Performance Chemicals
• • Sales of lignin products to the construction sector will be affected by strong competition with increasing price pressure in certain regions in H2-17
• •Reallocation efforts will continue
• •2017 sales volume forecast to be in the 450-470,000 mtds range
• •Sales volume in Q3-17 expected to be higher than in Q3-16
• •Flexibility in raw material supply will contribute to market optimisation and stable inventory levels
• • Speciality Cellulose
• •Average price in sales currency expected to be 3-5% above the 2016 level
• •Product mix forecast to improve from 2016
• • In Q3-17, textile cellulose prices, total sales volume and sales of highly specialised grades expected to be lower than in Q2-17
• • Other Businesses
• • Ingredients still affected by general overcapacity, but slightly positive development following recent price increases from Chinese producers
• • In Q3-17, deliveries of key products within Fine Chemicals forecast to be lower than in Q2-17, but higher than Q3-16
• •In H2-17, no major changes expected in Cellulose Fibrils' net costs vs H1-17

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Borregaard key figures – Q2

• Revenues 8% above Q2-16
• All-time high quarterly EBITA adj.¹for the Group
• Improvement in all business areas, particularly for Speciality Cellulose
• Positive impact from final insurance settlement for seasoning silos
• Increased depreciation, energy, raw material and chemicals costs
• Slightly positive FX impact
• EPS at NOK 1.81 in Q2-17 (NOK 1.54)

Performance Chemicals key figures – Q2

• •Revenues in line with Q2-16
• •Improved product mix
• •3% lower sales volume
• • All-time high EBITA adj. 1
• •Favourable product mix within Specialities
• • Decreased sales volume, continued reallocation and increased costs in Spain and USA
• •FX impact negligible

• EBITA adj. margin1in line with Q2-16

Speciality Cellulose key figures – Q2

• •Revenues 22% above Q2-16

• • Increased prices, high sales volume and improved product mix

• • Strong EBITA adj 1improvement

• • Increased sales prices, high sales volume and improved product mix
• •Increased energy, raw material and chemicals costs
• •Slightly positive FX impact

• Improved EBITA adj. margin1

Other Businesses key figures – Q2

•Revenues 3% above Q2-16

• •High deliveries in Fine Chemicals

• •Lower sales volume in Ingredients

• • Fine Chemicals: High deliveries of key products and Chemicals: improved result

• • Ingredients: Lower sales volume, increased costs and slightly reduced result
• • Cellulose Fibrils: Net costs and result in line wit Cellulose Fibrils: hQ2-16, but depreciation and gross costs increased
• •FX impact slightly positive for Other Businesses FX

Currency impact

• • Net FX EBITA adj.¹ impact approx. +5 mNOK vs Q2-16
• •Includes change in hedging effects and based on estimated currency exposure
• •Net FX EBITA adj.¹ impact YTD approx. 0 mNOK
• • Net FX EBITA adj.¹ impact in Q3-17 estimated to be 0 mNOK vs Q3-16
• •Assuming rates as of 17 July (USD 8.16 and EUR 9.36) on expected currency exposure
• •Net FX EBITA adj.¹ impact in 2017 estimated to be 15 mNOK vs 2016

¹ Non-GAAP measure, see Appendix for definition.

²See appendix for currency hedging strategy, future hedges and hedging effects by segment

³Currency basket based on Borregaard's net exposure in 2016 (=100): USD 66% (approx. 208 mUSD), EUR 33% (approx. 92 mEUR), Other 1% (GBP, BRL, JPY, SEK, ZAR)

Cash flow, investments and NIBD

• Cash flow from operations decreased vs Q2-16
• Increase in net working capital from a low level at the end Q1-17
• • Expansion investmentsin Q2 mainly related to the LignoTech Florida project

Expansion

• •Dividend payment of 349 mNOK in Q2

• •NIBD¹ increased by 411 mNOK in Q2

• •Per A Sørlie, President & CEO

• •Per Bjarne Lyngstad, CFO

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Borregaard – key figures

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

Operating revenues and EBITA adj.1per segment

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

	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 Q 2- 2- 2 2 0 0 1 1 Q 2- 2 0 1 7 7 7	Q Q 2- 2- 2 2 0 0 1 1 6 6 Q 2- 2 0 1 6	ha C ng e	1 d I A j. E B T a	Q 2- 2 0 1 7	Q 2- 2 0 1 6	ha C ng e
d d Bo Bo rr rr eg eg aa aa r r	1 1 2 2 5 5 6 6	1 1 1 6 7	8 %	d Bo rr eg aa r	2 2 4 4 3 3	2 0 0	% 2 2
fo he ls Pe C ica r rm an ce m	5 8 2	5 8 4	0 %	fo he ls Pe C ica r rm an ce m	1 4 1	1 4 0	1 %
l l lu lo Sp ia i Ce ty ec se	4 6 8	3 8 5	% 2 2	l l lu lo Sp ia i Ce ty ec se	1 0 3	6 8	% 5 1
he O Bu in t r s es se s	2 1 3	2 0 6	3 %	he O Bu in t r s es se s	-1	-8	8 8 %

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

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

Cash flow

l l Am in N O K m i ion nt ou s	Q Q 2- 2- 2 2 0 0 1 1 7 7	Q Q Q 2- 2- 2- 2 2 2 0 0 0 1 1 1 6 6 6	Y Y Y T T T D- D- D- 2 2 2 0 0 0 1 1 1 7 7 7	Y Y Y T T T D- D- D- 2 2 2 0 0 0 1 1 1 6 6 6	F F Y- Y- 2 2 0 0 1 1 6 6
in O i l l ion Am N K m nt ou s
f be for Pro it e t axe s	2 4 1	2 0 7	4 3 6	3 6 8	7 2 4
de d ha Am isa ion iat ion im irm ort t t c p rec an p a en rg es ,	7 6	6 9	1 5 1	1 3 5	2 7 8
ha k l, e C in ing ita t w tc ng e ne or ca p	-1 1 7	2 0 4	-2 7 3	-3 9	1 7 0
( ) iv i de d ha f p f it fro D J V n s re o ro m	-1	6 -1	-3	-3 8	-1
d Ta i xe s p a	-4 1	-3 1	-7 1	-6 2	-9 0
h f low fro Ca ing iv it ies at t s m op er ac	1 1 5 5 8 8	4 3 3	2 4 0	3 6 4	1 0 8 1
lan d e d b le a * Inv ip int i est nts ert t a nt ts me p rop p n q me an an g sse y, u	-2 1 5	-1 4 2	-3 7 4	-2 1 3	-6 2 2
he l tr Ot ita ion t r c ap an sac s	5	1	7	2	5
h f low fro Ca Inv Inv ing ing iv it ies t t t s m es es ac	-2 1 0	-1 4 1	-3 6 7	-2 1 1	-6 1 7
iv i de ds D n	-3 9 4	9 -1 4	-3 9 4	9 -1 4	9 -1 4
ds fro f o /s ha loy Pro ise ion t to cee m exe rc o p s res em p ee s	0	2	1 1	3	7
ba k o f s ha Bu y- c res	0	-9	-2 9	-9	-1 0
/ ( los ) he dg for bs d Ga in inv in i iar ies t est nts s on es ne me su	-1 1	1 8	-2	2 9	1 3
/ d t fro ha ho l de Ne i t p a o m s re rs	-3 6 0	8 -1 -1 3 3 8	-3 6 9	-1 2 6	-1 3 9
ds fro be l b l Pro int ing ia i it ies st- cee m ere ar	2 5 8	1 0 0	2 6 3	1 0 0	1 0 6
fro be l b l Re int ing ia i it ies nt st- p ay me m ere ar	-2	-1 0 2	-2 9	-1 0 4	-3 0 9
ha be b les /o he l b l C in int ing iva ia i it ies st- t ng e ere ar re ce r	1 5	-6	3 8	-1 5	-2 3
ha be l b l C in int ing ia it ies t t- ng e ne er es ar	2 2 7 7 1 1	-8	2 7 2	-1 9	-2 2 6
h f low fro f Ca ina ing iv it ies t s m nc ac	-8 9 -8 9	-1 4 6 -1 4 6	-9 7	-1 4 5	-3 6 5
ha h a d c h e h e len len C in iva iva ts ts ng e ca s n ca as s q q u u	-1 4 1	1 4 6	-2 2 4	8	9 9
h a d c h e len be f p d Ca iva inn ing io ts at s n as q u g o er	1 8 2	1 8	2 6 5	1 6 9	1 6 9
ha h a d c h e len C in iva ts ng e cas n as q u	-1 4 1	1 4 6	-2 2 4	8	9 9
f fec h a d c h e len Cu iva ts ts rre ncy e cas n as q u	2	-1	2	-1 4	-3
h a d c d c h e h e len len he he d o f t he d Ca iva iva io ts ts at t t s an n as as q q u u en p er	4 4 3	1 6 3	4 3	1 6 3	2 6 5
* Inv tm t
by teg es en ca ory lac Re Inv	4 6	9 5	1 2 4	1 2 9	3 5 8
t est nts p em en me 1
Exp ion inv est nts an s me	1 6 9	4 7	2 5 0	8 4	2 6 4

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

Net financial items & net interest-bearing debt1

l l Am in N O K i io ts ou n m n
f l N in ia i t te e an c m s	Q Q 2- 2- 2 2 0 0 1 1 7 7	Q Q 2- 2- 2 2 0 0 1 1 6 6	Y Y T T D- D- 2 2 0 0 1 1 7 7	Y Y T T D- D- 2 2 0 0 1 1 6 6
Ne in t te t e re s xp en se s	-4	-6	-7	-1 1
/ lo Cu in rre nc y g a ss	3	1	2	-2
he f l O in ia i t te t r an c m s, ne	0	0	0	-1
f l in ia i N t te e an c m s	-1	-5	-5	-1 4

l l Am in N O K i io ts ou n m n
1 ( ) be de b N in in N I B D t te t- t e re s ar g	3 0. 0 6. 2 0 1 7	3 1. 0 3. 2 0 1 7	3 1. 1 2. 2 0 1 6
be l b l No in in ia i i ies t te t- t n- cu rre n re s ar g	7 6 5	5 2 6	5 2 5
be l b l lu f f c hp l in in ia i i ies in d in dr Cu t te t- t t o rre n re s ar g c g ov er a as oo	0 1 6	4 1	6 1
be b les ( lu de d "O he ") No in in iva in in As t te t- t ts n- cu rre n re s ar g re ce c r se	-1	-1	-2 1
h d h de Ca i ts s an ca s p os	-7 5	-1 8 2	-2 6 5
1 ( ) be de b N in in N I B D t te t- t e re s ar g	7 9 5	3 8 4	3 0 0

Currency hedging strategy

Purpose is to delay effects of currency fluctuations and secure competitiveness

• • Hedging based on expected EBITA adj. impact 1
• • 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 7	0 4	8. 0 8	2 1	8. 8 9
Q 4- 2 0 1 7	3 7	8. 1 5	2 1	9. 0 3
Ro Y 2 0 1 7	7 7	8. 1 1	4 2	8. 9 6
2 0 1 8	1 4 5	8. 2 3	8 5	9. 3 4
2 0 1 9	1 0 4	8. 3 6	7 2	9. 5 8
2 0 2 0	4 2	8. 2 9	3 1	9. 6 0

Contracted FX hedges with EBITA adj. impact (as of 17.07.17) Hedging effects by segment 17.07.17) Hedging effects by segment

l l O i ion N K m	Q 2- 1 7	Q 2- 6 1	Y T D- 1 7	6 Y T D- 1
fo Pe r rm an ce he ls C ica m	-1 2	-7	-1 8	-1 9
l Sp ia i ty ec l lu los Ce e	-1 7	-1 1	-2 7	-3 3
he O ine Bu t r s ss es	-6	-6	2 -1	-1 5
d Bo rre g aa r	-3 5 -	-2 4	-5 7	-6 7

1Hedging done mainly in the Norwegian company

2Strict definition of 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 2021
• 200 mNOK 5-year bond issue, maturity 2019
• • 40 mEUR 10-year loan, maturity 2024
• • 60 mUSD term loan for LT Florida, tenor 8.5 years from completion
• • Overdraft facilities
• •225 mNOK
• • Solidity (covenants)
• • Equity ratio156.3% (> 25%)
• • Leverage ratio1LTM 0.72 (< 3.25)

Non-GAAP measures

In the discussion of the reported operating results, financial position and cash flows, Borregaard refers to certain measureswhich 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.
• •Equity ratio

•

• Equity (including non-controlling interests) divided by equity and liabilities.
• • 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.
• • Net interest-bearing debt (NIBD)
• Interest-bearing liabilities minus interest-bearing assets (see slide 26)
• • Return on capital employed (ROCE)
• • Last twelve months' (LTM) EBITA adj. divided by average capital employed based on the ending balance of the last five quarters. Capital employed is defined by Borregaard as the total of net working capital, intangible assets, property, plant and equipment and investment in joint venture minus net pension liabilities.

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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 first quarter of 2017, held on 18 July 2017. 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.