Borregaard — Investor Presentation 2017

Feb 10, 2017

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Agenda

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

Highlights – ⁴th quarter 2016

• •Increased EBITA adj.¹ in all business areas
• •Positive impact from currency
• •Strong cash flow from operations
• •Florida lignin investment approved
• • A total dividend of NOK 3.50 proposed for 2016, including extraordinary dividend of NOK 1.75

Highlights – full year 2016

• • All-time high result
• • EBITA adj. 1747 mNOK (497 mNOK)
• • ROCE121.7% (15.6%)
• •Significant FX impact
• • Progress in all business areas
• •Product mix in Speciality Cellulose
• •Sales growth in Fine Chemicals
• •Specialities volume in Performance Chemicals
• •Energy savings at the Sarpsborg biorefinery
• •Commercial operation and EU grant in Exilva

Dividend proposal for 2016

• • Borregaard's dividend policy
• • To pay regular and progressive dividends reflecting the expected long-term earnings and cash flows of the Group
• • Annual dividend is targeted between 30% and 50% of net profit

•Dividend proposal by the Board of Directors

• • Ordinary dividend of NOK 1.75 per share
• •17% increase from 2015 (NOK 1.50)
• •32% of net earnings
• • Extraordinary dividend of NOK 1.75 per share, due to increased earnings and strong cash flow
• •Total dividend payment of 349 mNOK

Performance Chemicals markets – Q4

• • Market conditions remain challenging
• •Reduced demand and strong price competition, especially in the construction sector
• Slightly lower prices in sales currency
• Improved product mix from higher sales of specialities, especially to agrochemicals
• •Sales volume increased by 3% due to the added Flambeau volume
• •Lignin raw material supply in Spain resumed

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.

Performance Chemicals markets – full year

• • Continued challenging market conditions in the construction and oil sectors
• •Slightly lower prices in sales currency (ex Flambeau business), mainly due to price pressure in Construction
• Reallocation contributed to market optimisation and stable inventory levels
• • Improved product mix
• Specialities sales volume +4%
• •Strong growth in sales to agrochemicals and batteries
• •8% sales volume increase from the added Flambeau business
• •Positive FX effects

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 – Q4

• •Higher sales volume
• • Average price in sales currency in line with Q4-15
• Increased prices for textile cellulose

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

Speciality Cellulose markets – full year

• •Relatively stable (-1%) average price in sales currency vs 2015.
• •Acetate segment affected by customer destocking, lower demand and continued excess capacity
• •Continued growth in the ether segment, improvement within construction and coating applications
• •Increasing demand and higher prices in the textile cellulose segment
• • Producers of dissolving wood pulp benefitted from higher prices and lower availability of cotton and cotton linter pulp
• •Positive FX effects

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

Ingredients and Fine Chemicals markets – Q4

• Ingredients
• • Lower sales volume, partly due to lower production output

• • Result improvement for the full year, mainly due to FX effects

• Fine Chemicals

• • High deliveries of and continued good growth for key products
• • Result improvement for the full year, mainly due to sales growth and FX effects

Outlook

• • Performance Chemicals
• • Market conditions negatively affected by continued weak business climate with stronger competition and price pressure in important regions for construction products
• •Efforts to reallocate lignin volumes will continue
• • 2017 sales volume forecast to reflect added output in Spain and South Africa, but with limited impact on profitability
• •In Q1-17, sales volume expected to be largely in line with Q1-16
• • Speciality Cellulose
• •Average cellulose price in sales currency expected to be 3-5% above the 2016 level
• •Price uncertainty mainly related to textile cellulose
• •Product mix forecast to improve from 2016
• • In Q1-17, both total sales volume and sales of highly specialised grades expected to be higher than Q1-16
• • Other Businesses
• •No major changes expected in market conditions for Ingredients and Fine Chemicals
• •In Q1-17, Exilva project costs, net of EU grant, expected to be below Q1-16
• •Corporate costs will remain at largely the same level as in 2016
• •Significant FX exposure, but delayed impact of FX rate fluctuations due to hedging policy

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Borregaard key figures – Q4

• •7% revenues growth vs Q4-15
• Increased EBITA adj. 1in all business areas
• •Positive FX impact
• •EPS at NOK 1.23 in Q4-16 (NOK 1.08)

Borregaard key figures – full year

• •Revenues up 8% vs 2015
• • All-time high EBITA adj. 1 and ROCE1
• Progress in all business areas, primarily due to FX effects
• Product mix improved in Speciality Cellulose, growth for key products in Fine Chemicals and increased sales of Specialities for Performance Chemicals
• Energy conservation measures and EU grant also contributed
• •EPS at NOK 5.55 for 2016, a 44% increase from 2015

Performance Chemicals key figures – Q4

• •2% revenue growth vs Q4-15
• •3% sales volume increase
• •Positive FX impact
• •Full year revenue growth 8%
• •Improved product mix
• •Slightly lower prices in sales currency
• •Positive FX impact

• • Full year EBITA adj. 1517 mNOK (447 mNOK)

• • EBITA adj. margin1above Q4-15

• • Full year EBITA adj. margin123.9% (22.3%)

Speciality Cellulose key figures – Q4

• •17% revenue growth vs Q4-15
• •High sales volume
• •Full year revenue growth 11%
• •Higher sales volume
• •Average price in sales currency in line with Q4-15
• •Stable costs
• •Positive FX impact

• • Full year EBITA adj. 1250 mNOK (104 mNOK)

• • Improved EBITA adj. margin1

• • Full year EBITA adj. margin115.7% (7.2%)

Other Businesses key figures – Q4

•Revenues 2% above Q4-15

• •High deliveries in Fine Chemicals
• •Lower sales in Ingredients

• •Full year revenue growth 3%

• • Ingredients: Reduced sales volume, partly due to lower production. FX positive

• •Fine Chemicals: High sales and positive FX impact Chemicals:
• •Exilva net costs, including EU grant, below Q4-15
• • Full year EBITA adj. 1-20 mNOK (-54 mNOK)

Currency impact

• • Net FX EBITA adj. impact approx. 25mNOK vs Q4-15
• •Includes change in hedging effects and based on estimated currency exposure
• Net FX EBITA adj. impact YTD approx. 230 mNOK
• • Net FX EBITA adj. impact in 2017 estimated to be 10 mNOK vs 2016
• •Assuming rates as of 9 February (USD 8.31 and EUR 8.89) on expected currency exposure

• Net FX EBITA adj. impact in Q1-17 estimated to be -5 mNOK vs Q1-16

• 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)

¹See appendix for currency hedging strategy, future hedges and hedging effects by segment

Cash flow, investments and NIBD

• • Strong cash flow in Q4-16 from increased EBITDA adj. 1 and decrease in net working capital
• •Increase in accounts payable, mainly due to high investments, affected net working capital
• • High investments in Q4-16 as expected
• •New wood-chip seasoning silos and maintenance stop affects replacement investments
• Expansion investments1in Q4 mainly related to the LignoTech Florida and Exilva projects

• NIBD¹ decreased by 73 mNOK in Q4

• •Per A Sørlie, President & CEO

• •Per Bjarne Lyngstad, CFO

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

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

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

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

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

Cash flow

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

Balance sheet

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

Net financial items & net interest-bearing debt1

l l A i N O K i i t m o u n s n m o n
f l N N i i i t t t e e n a n c a e m s	Q Q Q 4- 4- 2 2 2 0 0 0 1 1 6 6 6 4- 1	Q Q 4- 2 2 0 0 1 5 4- 1 5	Y Y T T D- D- 2 2 2 0 0 0 1 1 6 6 6 Y T D- 1	Y T D- 2 2 0 0 1 5 Y T D- 1 5
N i t t t e n e r e s e p e n s e s x	-4	-5	-1 9	-2 2
/ l C i u r r e n c y g a n o s s	2	-1	-7	-2
h f l O i i i t t t e r n a n c a e m s, n e	-6	-1	-6	-3
f l N N i i i t t t e e n a n c a e m s	-8 -8	-7	-3 2	-2 7

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

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 2 0 1- 1 7	3 7	9 7. 7	9 1	8. 8 7
Q 2- 2 0 1 7	4 0	8. 0 1	2 1	8. 0 7
Q 3- 2 0 1 7	4 0	8. 0 4	2 1	8. 8 9
Q 4- 2 0 1 7	3 6	8. 1 2	2 1	9. 0 3
2 0 1 7	1 5 3	8. 0 4	8 2	8. 8 5
2 0 1 8	1 4 1	8. 2 3	8 5	9. 3 4
2 0 1 9	8 8	8. 3 3	5 8	9. 6 0

Contracted FX hedges with EBITA adj. impact (as of 31.01.17) Hedging effects by segment 31.01.17) Hedging effects by segment

NOK million Q4-16 Q4-15 YTD-16 YTD-15Performance Chemicals -6 -19 -32 -76 Speciality Cellulose -13 -32 -59 -129 OtherBusinesses -5 -11 -24 -36 Borregaard - -24 -62 -115 -241

1Hedging done mainly in the Norwegian company

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

Debt, credit facilities and solidity

b d d f f l i i D t t t • e a n o v e r r a a c	i e s
----------------------------------------------------------------------------------------------------------------------	-------------

• • 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
• • Overdraft facilities
• •225 mNOK
• • Solidity (covenants)
• • Equity ratio158.1% (> 25%)
• • Leverage ratio1LTM 0.29 (< 3.25)

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.
• • 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.

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 fourth quarter of 2016, held on 10 February 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.