Borregaard

Investor Presentation • Sep 18, 2024

Oslo, 18 September 2024 Welcome to Borregaard's Capital Markets Day

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.

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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.

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.

This presentation is subject to Norwegian law, and any dispute arising in respect of this presentation is subject to the exclusive jurisdiction of Norwegian courts.

Key take-aways | Borregaard Capital Markets Day 2024

Agenda

0900 – 1030 PART I

Borregaard and the dawn of specialisation

President & CEO Per A. Sørlie

Numerous niches, big shifts

EVP BioSolutions Tom Erik Foss-Jacobsen

Sustainability and regulatory offering new opportunities VP Sales Biopolymers Anders Sjöde CTO Biopolymers Guro Elise Fredheim

Q&A

1030 – 1100 BREAK

1100 – 1230 PART II

Stronger positions, focused strategy EVP Speciality Cellulose Gisle Løhre Johansen

Ice Bear: Reaping the benefits of new technology Technical Service and Sustainability Manager Ali Moosavifar

Organic growth and bio-based investments

SVP R&D and Business development Kristin Misund

Leveraging competence, investing for the long term CTO Business development Martin Lersch

Financial performance and targets CFO Per Bjarne Lyngstad

Q&A

1230 – 1330 LUNCH

Borregaard and the dawn of specialisation

Per Arthur Sørlie President & CEO

Borregaard investor message

Biorefinery business model

• Biochemicals vs. petrochemicals
• High value added through full raw material utilisation
• A diversified market strategy (800 products) takes risk out of the integrated operations

Specialisation strategy

• Global niche player in markets with high barriers to entry
• Leading market positions through application knowledge and proximity to markets
• Strong innovation efforts and continuous improvement
• Competence is the main competitive advantage

Strategic priorities

Key actions next 3–5 years to execute specialisation strategy

Strategic priorities |CMD 2022 update

Increased specialisation and value growth

• Specialisation through innovation and market development Continued high innovation rate and geographic market penetration
• Leverage high-value lignin raw material base in biopolymers and biovanillin Specialities = 60% of revenues/CM
• Enhance product mix in speciality cellulose 100% of volume to speciality cellulose market
• Development of the cellulose fibrils business In progress
• Targeted investments to support increased specialisation, capacity needs and new initiatives Specialisation investment and new green technology in BioSolutions, Sarpsborg biorefinery capacity increase in progress

Strategic priorities |CMD 2022 update cont.

Sustainability as a value driver

• Exploit full market potential of biochemicals product portfolio Innovation efforts focused on sustainability and increased specialisation
• Delivery of environmental targets strengthens competitive edge Spray dryer electrification, electricity transformation upgrade
• Sustainability a key decision criterion in relation to innovation and new initiatives Alginor, Kaffe Bueno, product development portfolio

Our specialisation strategy

Specialisation in global niches

• Markets with high barriers to entry
• Leading market positions through application knowledge and proximity to markets
• Diversified market strategy and global market positions secure maximum flexibility

Strong innovation efforts and continuous improvement

• Business driven innovation model that involves the entire organisation
• Continuous productivity improvement through more efficient organisation, competence development and smart use of technology

Competence is the main competitive advantage

• Competence differentiates Borregaard from the competitors
• Combination of competences in sales & marketing, R&D and production
• Leverage expert knowledge to grow organically and through acquisitions

Sustainability – key decision criterion to innovation and new initiatives

The Borregaard Way – our corporate culture and core values

Our corporate culture | Supporting the specialisation strategy

Market-oriented

• Good understanding of customer needs
• Knowledge of the value-in-use of our products
• A high share of our employees works in sales and marketing and technical customer service

Innovative

• World-class research team
• Innovation is market-driven and involves collaboration between different parts of the organisation
• Significant share of revenues from innovation

Change-oriented

• Continuous improvement through technology, competence development and a flexible organisation
• Ability to implement changes through good collaboration and strong involvement from employees

Our core values | Supporting the specialisation strategy

Sustainability

• Climate-friendly products with good environmental accountability
• Environment, health and safety are a top priority
• Profitability is a prerequisite for sustainability

Long-term perspective

• Consistent strategy over time
• Long-term perspective on innovation, market development and investments
• Competence is our main competitive advantage
• Systematically work to further develop the company's expertise

Integrity

• Act responsibly in relation to our stakeholders
• Exercise corporate responsibility
• Strive for high credibility through transparency, honesty and predictability
• Demonstrate respect for individuals and cultures
• Maintain our own integrity and adhere to our code of conduct

Our transition plan | Supporting the specialisation strategy

Increased value creation | A key driver in the specialisation strategy

The dual strategic focus… …drives value creation¹ per full-time employee

The specialisation journey | Since IPO (2012 – 2023)

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Key strategic considerations

Increasing momentum for bio-based products – considerable potential for further specialisation and value growth

Unique combination of high-value raw material base, biorefinery assets and expert knowledge

Considerable potential for further specialisation and value growth

• 800 products with multiple applications in many markets combined
• The Borregaard specialisation journey is a continuous process towards full specialisation

Specialisation and value growth will take priority

• Significant potential for upgrade of product portfolios in BioSolutions and BioMaterials
• Well positioned in attractive markets with high expected growth rates
• Significant potential for geographic market penetration
• Increased specialisation is the cumulative effect of numerous innovation projects

Explore expansion and debottlenecking opportunities at the Sarpsborg biorefinery

Low-risk investment raising barriers to entry

Consumer and investor attention drives demand for greener solutions

• EU Green Deal
• Taxonomy
• Science Based Targets initiative

Strategic priorities

Increased specialisation and value growth

• Specialisation through innovation and market development
• Leverage high-value lignin raw material base in biopolymers and biovanillin
• Enhance product mix in speciality cellulose
• Development of the cellulose fibrils business
• Targeted investments to support increased specialisation, capacity needs and new initiatives

Sustainability as a value driver

• Exploit full market potential of biochemicals product portfolio
• Delivery of environmental targets strengthens competitive edge
• Sustainability a key decision criterion in relation to innovation and new initiatives

BioSolutions Numerous niches, big shifts

Tom Erik Foss-Jacobsen EVP BioSolutions

Global lignin supply | 2023

Global lignin supply ~900 – 950,000 mtds

Significant specialisation and value growth over time

• Strong development in sales to Specialities
• Gross sales trebled in Specialities and nearly trebled in Industrial from 2012
• Significant portfolio optimisation
  • o Optimised value
  • o Reduced exposure to low-value markets
  • o Less cyclicality

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Sustainability and regulatory | Offering new opportunities

Sustainability and regulatory trends – key driver for new business and innovation

• Customer GHG reduction initiatives alternatives to fossil-based solutions
• Formaldehyde/microplastics/single-use plastics bans
• Antibiotics bans/restrictions and product authorisations

Well-documented competitive edge in sustainability

• Life Cycle Assessments (LCAs) and Environmental Product Declarations (EPDs)
• Innovative digital solution tracking Borregaard's scope 3 impact on customer's GHG emissions (in progress)

Proactive and tailored market communication

Geographical market, application and customer specific

Attractive growth opportunities in Asia

Fastest growing region and sustainability trends

• ~60% of world population (4.8 billion)
• Solid growth across the region and in key application areas

Increased market presence in multiple countries

• More technical and commercial resources
• Increased R&D capability in India

Significant growth opportunities within agriculture and industrial applications

Key strategic priorities | 2025-2027

BioSolutions Sustainability and regulatory offering new opportunities

Anders Sjöde, PhD VP Sales Biopolymers

New green technology | New opportunities in high-end markets

Demonstration plant

100 mNOK investment, first step operational Q3 2024, completion mid-2025

Natural polymer backbone

Modified lignin-based polymer from sustainably managed Norway spruce

Unique features

Enables Borregaard to compete with advanced fossil-based polymers like e.g. polyacrylates

Market opportunities

Home care, industrial cleaners, water treatment, coatings, agriculture, leather tanning, oil field chemicals

New green technology | Properties, features and applications

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New green technology | Entering the home care market

Sustainable formulation 5–8% dosage in dishwasher tablet or powder

Effect Less film on glass, plastic and ceramic

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Customer value

Excellent replacement for polyacrylate Effective and sustainable anti-filming agent in auto dishwasher detergents

New green technology | Entering the coatings market

Sustainable alternative

Novel bio-based high-performance dispersant for coatings

Effect

Improved dispersion of pigments Better scrub resistance and hiding power No colour variation

Customer value

Enables replacement of advanced fossil-based dispersants in coatings Product launch in 2024

Sustainability and regulatory opportunities | Animal feed

Multitude of applications

Borregaard's products used as pelleting aids, emulsion stabilisers, bypass protein, acidifiers

Trends

Increasing demand for high-quality and sustainable products CAGR 2–3% for animal-based food

Regulated market

Compliance and certifications required to serve the market

Customer value

Improved productivity and product quality, bio-based, no animal origin, non-GMO, safe to use, global availability

Animal feed | Regulatory driving change

Benefits

Better pellet consistency and durability Improved production rates Decreased energy consumption

Regulatory

Borregaard's lignin re-authorised for use in animal feed within EU – February 2024

Outlook

Consumption of meat per capita expected to increase towards 2030 Strong trends towards bio-based and efficient products

PELLETING AIDS BYPASS PROTEIN

Benefits

Feed protein content is key in milk production Bypass technologies prevent loss of protein Borregaard offers cost-efficient and sustainable solutions

Regulatory

Formaldehyde ban in dairy production within EU

Outlook

Modest growth for dairy products in coming years Expect other regions to follow EU's formaldehyde ban, will offer opportunities to Borregaard

16.09.2024

Animal feed | New feed binder for the aqua culture industry

Background

90% of shrimp feed contain binders Dominating synthetic binders (urea formaldehyde) will be banned Strong demand for non-synthetic sustainable binders

Effect

New binder formulation developed and tested by customer Similar performance as synthetic binders New binder formulation patented (pending)

Outlook

Currently in the scale-up stage Product launched in 2024 First commercial sale in 2025

BioSolutions Properties and customer value of lignin biopolymers

Guro Fredheim, PhD CTO Biopolymers

Lignin biopolymers | Properties, advantages and applications

Biopolymers in agriculture

Plant nutrition			Crop protection			Seed coating	Feed
Micronutrients	Soil conditioners /biostimulants	Granulated limestone and fertilizers	Pesticides	Biological pest control	Adjuvants	Encrusted and pelleted seeds	Animal feed
 Ready-to-use micronutrients  Complexing agents  Rheology modifiers for suspensions	 Nutrient use efficiency  Resistance to abiotic stress  Organic carbon source	 Binder  Dedusting agent	 Dispersant  Binder  Rheology modifiers	 Dispersant  UV protection  Rheology modifiers	 Compatibility agent  Uptake enhancer	 Binder  Microplastic free film formers	 Binder  Antioxidant
8–9% CAGR	7–12% CAGR	7–12% CAGR	2–3% CAGR	11–12% CAGR	6–7% CAGR	8–9% CAGR	2–3% CAGR

Plant nutrition | Sustainable soil conditioners and biostimulants

Plant nutrition market

CAGR 12%¹

Sustainable plant nutrition

• Maximises use of nutrients present in the soil or added during fertilization
• High internal competence and global R&D capabilities

Soil conditioners and biostimulants increase crop yield

• Products with solubility, compatibility and agronomic performance
• Improves nutrient use efficiency, soil fertility and plant resistance to harsh conditions

Crop protection | New opportunities within biological pest control

Biocontrol market

CAGR 12%¹

Sustainability as a driver

• Market pull for more sustainable crop protection
• Biopesticides pest control derived from natural source

Bio-based formulation aids needed

• High internal competence and R&D capabilities
• Borregaard's biopolymers offer viability and efficacy

Lead batteries | Borregaard products as industry standard

Lead batteries - essential battery technology

• Close to 45% of the world's rechargeable power¹
• Low cost, safe and reliable

Sustainable technology

• Most sustainable battery technology (99% recycling rate)
• Well suited for Energy Storage Systems (ESS)
• 70 mNOK expansion investment to meet future demand

Indispensable for lead battery performance

• Improved battery life, capacity and cold temperature performance
• High internal competence and R&D capabilities
• Cooperation with industry on new products for ESS and auxiliary batteries for electric vehicles (EVs)

Lithium-ion batteries | Opportunities within emerging technologies

Fastest growing battery technology

• Main battery technology for EV and ESS
• CAGR 27% towards 2030¹

Leveraging competence and technology

• High internal competence and global R&D capabilities
• New battery test lab in US

New products launched

• Improved battery properties and cost reduction
• Sustainable and non-toxic
• Ongoing trials with key global players

Q&A | Borregaard Capital Markets Day 2024

The Q&A session will be moderated by

• Magnus Rasmussen, Analyst, SEB
• Marcus Gavelli, Analyst, Pareto Securities Research

Participants from management

• Per A. Sørlie, President & CEO
• Tom Erik Foss-Jacobsen, EVP BioSolutions

Agenda

0900 – 1030 PART I

Borregaard and the dawn of specialisation

President & CEO Per A. Sørlie

Numerous niches, big shifts

EVP BioSolutions Tom Erik Foss-Jacobsen

Sustainability and regulatory offering new opportunities VP Sales Biopolymers Anders Sjöde CTO Biopolymers Guro Elise Fredheim

Q&A

1030 – 1100 BREAK

1100 – 1230 PART II

Stronger positions, focused strategy EVP Speciality Cellulose Gisle Løhre Johansen

Ice Bear: Reaping the benefits of new technology Technical Service and Sustainability Manager Ali Moosavifar

Organic growth and bio-based investments

SVP R&D and Business development Kristin Misund

Leveraging competence, investing for the long term CTO Business development Martin Lersch

Financial performance and targets CFO Per Bjarne Lyngstad

Q&A

1230 – 1330 LUNCH

Speciality Cellulose Stronger positions, focused strategy

Gisle Løhre Johansen EVP Speciality Cellulose

Speciality cellulose | Market overview and Borregaard focus areas

Speciality cellulose demand ≈1.6 million mt¹ Target segments in highly specialised applications

Segments	Applications	CAGR 2024-2027
Acetate	Cigarette filters, plastics, LCD, yarn	0–2%
Ethers	Construction, coatings, food, pharma, personal care	3–4%
Tyre cord	High-performance tyre cords	2–3%
High purity casings and sponges	Sausage casings, sponge cloths	0–1%

Borregaard focus areas

• Growth in non-filter tow applications in acetate
• Regulated segments in ethers
• Entering high-purity casings

Source: Celco market reports, RISI and Borregaard estimates 1 Metric tonne 2 Cellulose ether capacity excl. technical grade CMC

Speciality cellulose | Recent announcements of plant closures

September 2023: Georgia-Pacific to close Foley cellulose facility²

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April 2024:

RYAM to suspend Temiscaming High Purity Cellulose plant operations for an indefinite period³

• Significant supply of softwood speciality cellulose removed from the market
• Some customers are using cotton linter pulp (CLP) to counter the effect of these plant closures

Expected volume effects of GP Foley closure

Borregaard potential: 15,000 – 20,000 mt, primarily within

Cellulose ethers | Targeted growth in regulated applications

Cellulose ether market by application

Borregaard's ether strategy

Focus on regulated applications like food, pharma and personal care

• Substantial growth expected in the 2024–2027 period
• High viscosity industrial applications (such as paints and car catalyst applications) with barriers to entry will remain a profitable and growing focus area
• Gradual reduction of share within industrial applications by reducing exposure to low-value grades in construction

Ice Bear technology | Driving high-value product portfolio

Market and ambitions for Ice Bear

• Enabler for ambitions within ether regulated applications
• Rapid growth in high-purity casings after GP's Foley closure
• Significant market share growth within non-filter tow
  • o Acetate producers developing products within non-filter tow
• Ramp-up of Ice Bear production based on market demand

Ice Bear Reaping the benefits of new technology

Ali Moosavifar, PhD Technical Service and Sustainability Manager

Ice Bear in bio-based plastics

• Big change in product mix from cigarette filter tow to niches
• Entering already established niche markets
• Customers are developing biodegradable plastics for future applications

Ice Bear in bio-based plastics

Challenges

• Significantly higher price vs. fossil-based plastics
• Technical requirement of bio-based plastics

Current status

• Implementation of microplastic regulations
• Substantial rise in demand for biodegradable plastics
• More than 10,000 tonnes Ice Bear contracted for 2024

Long-term potential of 50,000 tonnes

Organic growth and bio-based investments

Kristin Misund, PhD SVP R&D and Business development

Our corporate culture | Supporting the specialisation strategy

Market-oriented

• Good understanding of customer needs
• Knowledge of the value-in-use of our products
• A high share of our employees works in sales and marketing and technical customer service

Innovative

• World-class research team
• Innovation is market-driven and involves collaboration between different parts of the organisation
• Significant share of revenues from innovation

Change-oriented

• Continuous improvement through technology, competence development and a flexible organisation
• Ability to implement changes through good collaboration and strong involvement from employees

2023 | 16% of Borregaard's revenues came from innovations¹

Market-driven innovation

Innovation Management Teams (IMT)

• Interdisciplinary team
• Strategic projects
• Resource use
• Programmes over several years

Interdisciplinary project groups

• Technical project managers
• Commercial project owners
• Value creation/customer focus
• Support and challenge each other

Strong innovation efforts

97 employees in R&D and innovation

• R&D centres in Norway, USA and India
• 28 PhDs

Significant R&D and innovation efforts

• 2023: NOK 211 million
• Equals about 3% of revenues

Application-oriented innovation

Crop protection, plant nutrition, feed

Batteries, pigments, inks, home care and resins

Concrete, coatings, packaging

Process-oriented innovation

Process improvements Capacity, quality, sustainability

Cellulose Acetate Purity

Cellulose ethers Viscosity

Business development

Disruptive innovation New processes and products

Bio-based investments Investing for the long term

Bio-based investments Leveraging competence, investing for the long term

Martin Lersch, PhD CTO Business Development

Borregaard investing in bio-based start-ups

Selection criteria

• Conversion of bio-based raw materials to chemicals and materials
• Strong ESG profile
• Specialisation potential
• Synergies with Borregaard's existing business and competence
• Significant revenue potential
• Time to market < 5 years
• Geography: Nordics > Europe > Global

Borregaard's offer beyond capital

Market

Application know-how from 130+ years of market presence

Competence

Strong R&D, experience from internal start-ups

Sustainability

A strong sustainability track record

Industrial experience

Organisational support functions

Network

A global network of customers and collaboration partners

Culture

Continuous improvement (organisation and process)

Scale-up

Access to pilot/demo plants

Extent of offering linked to stake in company

Investments in bio-based start-ups

About the company	Ownership and size of investment	Follow-up of investment
Harvesting and biorefining of macroalgae to ingredients for pharmaceutical and nutraceutical applications (Norway)	 35% ownership fully diluted  Total investment ≈419 mNOK	2 board positions Nomination committee Collaboration in projects Joint funding applications
Biorefining of spent coffee grounds to ingredients within personal care, human nutrition and agriculture (Denmark)	 12% ownership fully diluted with 3 mEUR investment  Option to increase ownership to 34% by Jan 2026 with additional 9.25 mEUR investment	1 board position Joint funding application
Processing of technical lignins from biorefineries for use in personal care as well as industrial applications (Austria)	 12% ownership  Total investment 1 mEUR	Advisory board
Biorefining of farmed macroalgae to ingredients within food, health & wellness, skincare and materials (Scotland)	 1% ownership  Total investment 0.15 mUSD

Strategic fit of bio-based investments

Financial performance and targets

Per Bjarne Lyngstad CFO

Improved performance during a period with uncertainty

Strong results in all business segments

Significant cost increases have been mitigated

Cost increases 2019 – E2024

Share of operating expenses 2023 Significant cost increases over the last five years

• Wood costs impacted by energy prices, a weak NOK (favouring exports) and reduced supply
• Energy costs peaked in 2022, reduced in 2023 and 2024
• Caustic soda impacted by energy prices and weak chlorine market (PVC)
• More specialised work force, tight labour market
• Higher inflation

Solid financial position and strong cash flow

Solid financial position

• Leverage ratio¹ 1.23 and equity ratio¹ 54% (Q2-24)
  • o Maintain key financial ratios corresponding to an investment grade rated company
  • o Issuer rating of A-/Stable from Scope ratings
  • o Leverage ratio target: Between 1.0 and 2.25
• Substantial undrawn credit facilities

Strong cash generation

Variations between years, mainly due to changes in net working capital

2 Free cash flow defined as cash flow from operating and investing activities, excluding expansion investments

Investments to reduce CO₂ emissions in line with transition plan

Completed and on-going investment projects

• Investments forecast to give higher than expected reduction in CO₂ emissions and energy savings
• So far, investment spending below initial transition plan forecast

	Reduced CO₂ (tCO₂e)	Saved energy (GWh)	Investment (mNOK)	Completed
Increased utilisation of residuals from production processes as bioenergy	10,800	53	90	2022 (2023 impact)
Investment to reduce CO₂ emissions and increase flexibility at the biorefinery in Norway	30,000	40–50	230	Q3 2024, full effect 2025
Investment to upgrade electricity transformation capacity at the biorefinery in Norway		Facilitates CO₂ and energy savings in future projects	275	2028

Additional projects to reduce CO₂ emissions and COD¹ effluents

• Increase electric boiler capacity for heat energy production
• Produce more biofuel from residuals and process improvements
• Wastewater incineration technology, innovative heat recovery

CO₂ scope 1 and 2 (tCO₂e)

Capital allocation priorities

Expansion investments

Increased specialisation and capacity

Acquisitions and other investments

Bio-based start-ups and complementary value-adding businesses

Shareholders

Dividends and net buy-backs

Allocation of FCF¹

Priorities will be set in line with financial targets and dividend policy

• ROCE above 15% pre-tax over a business cycle
• Leverage ratio well within targeted level (1.0–2.25)
• Regular and progressive dividends

Progressive dividends over time

Borregaard's dividend policy

• To pay regular and progressive dividends reflecting Borregaard's expected long-term earnings, free cash flows and expansion investments
• Annual dividend is targeted between 30% and 50% of net profit for the preceding fiscal year

Dividend reflects improved profitability and cash flow over time

• Ordinary dividend for 2023 close to four times higher than 2012 (IPO)
• Extraordinary dividend for 2016 and 2021
  • o Strong earnings, cash flow, leverage ratio and outlook

Value growth through expansion investments

On-going projects in BioSolutions

• Specialisation investment
  • o Main target is batteries, also targeting oilfield chemicals, agrochemicals, pigments and dyes
  • o Investment 70 mNOK, operational Q4-24
• New green technology platform
  • o Commercial scale demonstration plant
  • o Investment 100 mNOK, first step operational Q3-24

Significant impact from earlier expansion investments

• BioSolutions
  • o Upgrade of biopolymers facility in Norway, Florida expansion, capacity increase for biovanillin
• BioMaterials and Fine Chemicals
  • o Ice Bear project, capacity increase bioethanol, debottlenecking fine chemical intermediates

Expansion projects 2024 to 2027

Debottlenecking Sarpsborg biorefinery

• Two-step capacity increase
  • o Decision first step expected in Q4-24
• Expected total capacity increase 5–10%
  • o Production output expected to increase gradually from H2-26
• Other benefits
  • o Reduced costs and volume of residuals
  • o Energy savings and reduced caustic soda consumption
  • o Reduced COD effluents

Several smaller and medium sized expansion investments

• Further specialisation of lignin-based biopolymers, including upgrade further specialisation of Wisconsin facility
• Ramp-up of Ice Bear production and further improvement of quality
• Removing capacity restraints in bioethanol and fine chemical intermediates

Bio-based start-ups

• Support existing investments
• Seek new opportunities

Investment forecast¹ 2024-2027

Replacement investments

• Targeted CO² and COD reductions and general cost increases explain above target level investments
  • o Target: Replacement investments at depreciation level
• Supporting specialisation and value growth investments

Expansion investments²

• Increased specialisation
• Debottlenecking at the Sarpsborg site

New projects may lead to additional investments

• Future investments in bio-based start-ups are not included
  • o Share of Alginor's capital raise in 2024 included (150 mNOK)

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Borregaard positioned for accelerated growth

Key take-aways | Borregaard Capital Markets Day 2024

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Q&A | Borregaard Capital Markets Day 2024

The Q&A session will be moderated by

• Magnus Rasmussen, Analyst, SEB
• Marcus Gavelli, Analyst, Pareto Securities Research

Participants from management

• Per A. Sørlie, President & CEO
• Tom Erik Foss-Jacobsen, EVP BioSolutions
• Gisle Løhre Johansen, EVP Speciality cellulose
• Kristin Misund, SVP R&D and Business development
• Per Bjarne Lyngstad, CFO

Appendix – alternative performance 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 Alternative performance 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 Alternative performance measures should not be viewed in isolation or as an alternative to the equivalent GAAP measure.
  • EBITDA: Operating profit before depreciation, amortisation and other income and expenses.
  • EBITDA margin: EBITDA divided by operating revenues.
  • 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, investments in bio-based start-ups, 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.
  • Net interest-bearing debt (NIBD): Interest-bearing liabilities minus interest-bearing assets.
  • Return on capital employed (ROCE): Last twelve months' (LTM) capital contribution (operating profit before amortisation and other income and expenses) 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, right-of-use assets minus net pension liabilities.