Borregaard

Quarterly Report • Oct 30, 2024

3RD QUARTER 2024 INTERIM REPORT

• EBITDA1 NOK 524 million (NOK 482 million) 2
• Increased sales volume in BioSolutions
• Higher deliveries more than offset by increased wood costs and other operating expenses in BioMaterials • Slightly positive net currency effects 3RD QUARTER IN BRIEF
• Significantly higher deliveries of bioethanol and favourable product mix for intermediates in Fine Chemicals

CONTENTS

The Group 03
Business areas 05
Foreign exchange and hedging 09
Cash flow and financial situation 09
Share information 10
Other matters and subsequent events 10
Outlook 11
The Group's interim condensed financial statement	13
Alternative performance measures 21

OPERATING REVENUES EBITDA MARGIN1 EBITDA1

327

1,850

NOK mill

0

500

3

6

9

12

18

21

27

30

33

24

2023 2024 2023 2024 1,963 1,714 1,605 Q1 Q2 Q3 Q4 1,975 1,949 1,949 435 510 442 537 NOK mill Q1 Q2 Q3 Q4 0 100 200 500 400 300 600 2023 2024 482 524 327 2023 2024 2023 2024 3 6 9 12 18 21 27 30 33 24 22.4% 26.2% 26.9% 23.5% 27.4% 28.1% % Q1 Q2 Q3 Q4

%

EARNINGS PER SHARE CUMULATIVE

1,963

1,714 1,605

1,850

NOK mill

Q1 Q2 Q3 Q4

2,500

2,000

0

500

1,000

1,500

1,975 1,949 1,949

OPERATING REVENUES EBITDA MARGIN1 EBITDA1 OPERATING REVENUES EBITDA MARGIN1 EBITDA1

482

1 Alternative performance measure, see page 21 for definition.

THE GROUP

			1.7 - 30.9		1.1 - 30.9	1.1 - 31.12
Amounts in NOK million	Note	2024	2023	2024	2023	2023
Operating revenues	2	1,949	1,714	5,873	5,527	7,132
EBITDA1		524	482	1,476	1,454	1,781
Operating profit		385	360	1,067	1,099	1,291
Profit/loss before taxes	2	326	318	909	989	1,124
Earnings per share (NOK)		2.51	2.38	6.96	7.54	8.73
Net interest-bearing debt1	10	2,073	1,879	2,073	1,879	1,791
Equity ratio1 (%)		55.6	50.6	55.6	50.6	53.7
Leverage ratio1		1.15	1.03	1.15	1.03	1.01
Return on capital employed1 (%)		16.8	19.1	16.8	19.1	18.3

THIRD QUARTER

Operating revenues were NOK 1,949 million (NOK 1,714 million)2 in the 3rd quarter of 2024. EBITDA1 reached NOK 524 million (NOK 482 million). The results in both BioSolutions and Fine Chemicals increased while the result in BioMaterials was lower compared with the 3rd quarter of 2023.

Increased sales volume was the main reason for the improved result in BioSolutions. For BioMaterials, significantly higher deliveries were more than offset by increased wood costs and other operating expenses. The main reasons for the stronger result in Fine Chemicals were significantly higher deliveries of bioethanol and a favourable product mix for fine chemical intermediates. The net currency effects were slightly positive.

Operating profit was NOK 385 million (NOK 360 million). Net financial items were NOK -59 million (NOK -42 million). Profit before tax was NOK 326 million (NOK 318 million). Tax expense of NOK -78 million (NOK -76 million) gave a tax rate of 24% (24%) in the quarter.

Earnings per share were NOK 2.51 (NOK 2.38).

Cash flow from operating activities was NOK 391 million (NOK 526 million). The cash flow in the period was positively affected by the cash effect from a high EBITDA1 whereas net working capital increased.

YEAR-TO-DATE (1.1-30.9)

Borregaard's operating revenues increased to NOK 5,873 million (NOK 5,527 million) in the first nine months of 2024. EBITDA¹ increased to NOK 1,476 million (NOK 1,454 million). The result increased in both BioSolutions and Fine Chemicals while BioMaterials had a decrease compared with the corresponding period of 2023.

The increased result in BioSolutions was due to higher sales volume, reduced energy costs and improved product mix. In BioMaterials, total sales volume was 11% higher than in the first nine months of 2023. However, lower sales prices, higher wood costs and an increase in other operating expenses were the main reasons for the reduced EBITDA1 . The improved result in Fine Chemicals was mainly due to higher deliveries both for fine chemical intermediates and bioethanol. The net currency effects were negative for the Group.

Operating profit was NOK 1,067 million (NOK 1,099 million). Net financial items amounted to NOK -158 million (NOK -110 million). Profit before tax was NOK 909 million (NOK 989 million). Tax expense was NOK -216 million (NOK -238 million), giving a tax rate of 24% (24%).

Earnings per share were NOK 6.96 (NOK 7.54).

In the first nine months of 2024, cash flow from operating activities was NOK 754 million (NOK 1,048 million). Increased net working capital was the main reason for the reduction in the cash flow from operating activities.

CASH FLOW FROM OPERATING ACTIVITIES

¹Alternative performance measure, see page 21 for definition. ²Figures in parentheses are for the corresponding period in the previous year.

BIOSOLUTIONS BUSINESS AREAS

THIRD QUARTER

Operating revenues in BioSolutions reached NOK 1,031 million (NOK 956 million). EBITDA1 increased to NOK 271 million (NOK 235 million).

A 7% increase in sales volume was the main reason for the improved result, mainly due to higher sales to agriculture. Considering the higher sales volume, operating expenses were at the same level as the 3rd quarter last year. The net currency impact was slightly positive.

	1.7 - 30.9		1.1 - 30.9		1.1 - 31.12
Amounts in NOK million	2024	2023	2024	2023	2023
Operating revenues	1,031	956	3,236	3,038	3,944
EBITDA1	271	235	853	743	915
EBITDA margin1 (%)	26.3	24.6	26.4	24.5	23.2

Sales price and sales volume include lignin-based biopolymers and biovanillin.

AVERAGE GROSS SALES PRICE3

The average price in sales currency was in line with the same quarter in 2023. 13,000 12,402 12,582

SALES VOLUME

The biovanillin market continued to be impacted by the high global supply of synthetic vanillin products. 11,000 12,000 11,319 11,609 11,756 11,862 11,877

50

125

100

75

25

0

'000 mtds4

Q1 Q2 Q3 Q4

74

2023 2024

86 88

^{81 76 72}

81

14,000

10,000

9,000

NOK per mtds4

SALES VOLUME

Q1'23 Q3'23 Q2'23

Q4'23 Q1'24 Q3'24 Q2'24

³Average sales price is calculated using actual FX rates, excluding hedging impact. 4 Metric tonne dry solid.

YEAR-TO-DATE (1.1-30.9)

In the first nine months of 2024, BioSolutions' operating revenues increased to NOK 3,236 million (NOK 3,038 million). EBITDA1 reached NOK 853 million (NOK 743 million).

The increased result was due to higher sales volume, reduced energy costs and improved product mix. These effects were partly offset by cost inflation and a negative net currency impact.

6 Q3 2024 BORREGAARD CONTENTS PREVIOUS NEXT

The average price in sales currency was 1% higher than in the first nine months of 2023 due to strong development in sales to agriculture and batteries.

Total sales volume was 6% higher than in the first nine months of 2023 with a strong development in sales of specialities.

The biovanillin market was impacted by the high global supply of synthetic vanillin products.

¹Alternative performance measure, see page 21 for definition.

²Figures in parentheses are for the corresponding period in the previous year.

BIOMATERIALS

THIRD QUARTER

Operating revenues in BioMaterials reached NOK 683 million (NOK 568 million). EBITDA1 was NOK 131 million (NOK 161 million).

Significantly higher deliveries of speciality cellulose were more than offset by increased wood costs and other operating expenses. The higher sales volume was driven by increased sales of high-purity and cellulose ether grades. Net currency effects were insignificant.

The average price in sales currency increased by approximately 2% from the 2nd quarter of 2024 as sales price increases for certain cellulose grades were implemented in the 3rd quarter. Compared with the 3rd quarter of 2023, the average price in sales currency was 2% higher.

YEAR-TO-DATE (1.1-30.9)

Operating revenues increased to NOK 2,009 million (NOK 1,913 was NOK 332 million (NOK 431 million).

¹Alternative performance measure, see page 21 for definition. ²Figures in parentheses are for the corresponding period in the previous year. ⁵Average sales price is calculated using actual FX rates, excluding hedging impact. 6 Metric tonne.

SALES VOLUME

2023 2024

40

20

30

10

0

'000 mt6

50

Q1 Q2 Q3

44.5

38.6

Q4

40.0 36.8 34.9 32.6

million). EBITDA1 AVERAGE GROSS SALES PRICE5

Total sales volume was 11% higher than in the first nine months of 2023. However, lower sales prices, higher wood costs and an increase in other operating expenses were the main reasons for the reduced EBITDA1 . Net currency effects were negative. 17,551 16,000 17,000 18,000 NOK per mt6

The average price in sales currency was 5% lower than in the same period last year. 15,786 16,260 15,700 16,126 16,591 14,000 15,000

41.4

SALES VOLUME

2023 2024

40

20

30

10

0

'000 mt6

50

Q1 Q2 Q3

44.5

38.6

Q4

40.0 36.8 34.9 32.6

AVERAGE GROSS SALES PRICE5 SALES VOLUME

AVERAGE GROSS SALES PRICE5

41.4

Sales price include speciality cellulose and cellulose fibrils.

Sales volume include speciality cellulose and cellulose fibrils

16,449

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24

12,000

13,000

11,000

10,000

16,449 15,786

Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24

17,551

16,260 15,700 16,126 16,591

AVERAGE GROSS SALES PRICE5

20,000

22,000

NOK per mt6

16,000

18,000

12,000

14,000

10,000

8,000

		1.7 - 30.9		1.1 - 30.9
Amounts in NOK million	2024	2023	2024	2023	2023
Operating revenues	683	568	2,009	1,913	2,439
EBITDA1	131	161	332	431	534
EBITDA margin1 (%)	19.2	28.3	16.5	22.5	21.9

FINE CHEMICALS

THIRD QUARTER

Fine Chemicals' operating revenues reached NOK 246 million (NOK 199 million). EBITDA1 increased to NOK 122 million (NOK 86 million).

The main reasons for the stronger result were significantly higher deliveries of bioethanol and a favourable product mix for fine chemical intermediates. The net currency impact in Fine Chemicals was insignificant.

YEAR-TO-DATE (1.1-30.9)

Operating revenues in Fine Chemicals increased to NOK 661 million (NOK 606 million). EBITDA1 reached NOK 291 million (NOK 280 million). NOK million 160 140 139 139 160 146

The result for fine chemical intermediates increased compared with the first nine months of 2023 whereas the result in bioethanol was in line with the corresponding period in 2023. The improvement for fine chemical intermediates was due to higher deliveries. Sales prices were reduced as a result of price reductions for the main raw material. For bioethanol, deliveries increased whereas costs were higher compared with the same period last year. The net currency impact in Fine Chemicals was insignificant. 80 40 60 20 0 Q3 100 120 130 Q1 Q4 Q2 2019 2020

INGREDIENTS – SALES REVENUES FINE CHEMICALS – OPERATING REVENUES

		1.7 - 30.9	1.1 - 30.9		1.1 - 31.12
Amounts in NOK million	2024	2023	2024	2023	2023
Operating revenues	246	199	661	606	786
EBITDA1	122	86	291	280	332
EBITDA margin1 (%)	49.6	43.2	44.0	46.2	42.2

FOREIGN EXCHANGE AND HEDGING

CASH FLOW AND FINANCIAL SITUATION

¹Alternative performance measure, see page 21 for definition.

Borregaard has a significant currency exposure which is hedged according to the company's hedging strategy. The impact of currency rate fluctuations will be delayed as a result of the currency hedging strategy. Compared with the 3rd quarter of 2023, the net impact of foreign exchange on EBITDA1 , including hedging effects, was NOK 5 million. Hedging effects were NOK -86 million (NOK -62 million) in the quarter.

THIRD QUARTER

Cash flow from operating activities was NOK 391 million (NOK 526 million). The cash flow in the period was positively affected by the cash effect from a high EBITDA1 whereas net working capital increased.

YEAR-TO-DATE (1.1-30.9)

In the first nine months of 2024, cash flow from operating activities was NOK 754 million (NOK 1,048 million). Increased net working capital was the main reason for the reduction in the cash flow from operating activities. Increased accounts

Compared with the first nine months of 2023, the net impact of foreign exchange on EBITDA1 , including hedging effects, was NOK -30 million. Hedging effects were NOK -272 million (NOK -175 million) in the first nine months.

Assuming currency rates as of 29 October 2024 (USD 10.99 and EUR 11.84) and based on currency exposure

receivable from higher sales has affected net working capital negatively. In addition, financial costs were higher compared with the first nine months of 2023.

Investments amounted to NOK 574 million (NOK 498 million). Replacement investments were NOK 354 million (NOK 300 million), where the largest expenditure was related to the investment to reduce CO2 emissions, improve energy efficiency and increase energy flexibility at the biorefinery in Norway. Expansion investments1 totalled NOK 220 million (NOK 198 million), where the largest expenditures were related to investment in Alginor ASA and specialisation projects within BioSolutions.

forecasts, Borregaard expects a net impact of foreign exchange on EBITDA1 of approximately NOK 10 million in the 4th quarter of 2024 and NOK -20 million for the full year of 2024, compared with the corresponding periods last year.

Dividend of NOK 374 million (NOK 324 million) was paid out in the 2nd quarter. In the first nine months of 2024, the Group has sold and repurchased treasury shares with net proceeds of NOK -8 million (NOK -4 million). Realised effect of hedging of net investments in subsidiaries was NOK -35 million (NOK -76 million).

On 30 September 2024, the Group had net interest-bearing debt1 totalling NOK 2,073 million (NOK 1,879 million), an increase of NOK 282 million from year-end 2023.

At the end of September, the Group was well capitalised with an equity ratio1 of 55.6% (50.6%) and a leverage ratio1 of 1.15 (1.03).

SHARE INFORMATION

OTHER MATTERS AND SUBSEQUENT EVENTS

During the 3rd quarter, 15,000 share options were exercised at a strike price of NOK 87.60 per share. In the quarter, Borregaard repurchased a total of 15,000 treasury shares at an average price of NOK 198.96.

NEW SUPPLY CONTRACT FOR ELECTRIC POWER WITH HAFSLUND

Borregaard and the Norwegian hydropower producer Hafslund have entered into a new long-term power purchase agreement, for the period 2025 to 2034. The annual contract volume is 88 GWh, representing 10–15% of the Sarpsborg site's annual consumption. See notice to Oslo Stock Exchange on 20 September 2024.

BORREGAARD TO INCREASE CAPACITY BY DEBOTTLENECKING THE SARPSBORG SITE

Borregaard will invest NOK 490 million to debottleneck and increase the capacity at the Sarpsborg site. This investment is part of the expansion investment plan announced at the Capital Markets Day in September 2024.

The debottlenecking is the first out of the two planned investments to increase capacity at the Sarpsborg site towards 2027. In total, the

Total number of shares outstanding on 30 September 2024 was 100 million, including 250,200 treasury shares. Total number of shareholders was 8,567. Borregaard ASA's share price was NOK 198.40 at the end of the 3rd quarter (NOK 171.40 at the end of 2023).

expected capacity increase is 5-10%. Production output is expected to increase gradually from the second half of 2026.

In addition to increasing capacity for speciality cellulose, ligninbased biopolymers and bioethanol, this investment will enable higher raw material utilisation and reduce effluents to water.

OUTLOOK

Sarpsborg, 29 October 2024 The Board of Directors of Borregaard ASA

In BioSolutions, total sales volume in the 4th quarter is expected to be 70-75,000 tonnes with continued strong sales to agriculture. For biovanillin, the market will continue to be impacted by the high global supply of synthetic vanillin products.

In the 4th quarter, sales volume for BioMaterials is expected to be approximately 35,000 tonnes.

In Fine Chemicals, deliveries of both bioethanol and fine chemical intermediates are expected to be significantly lower in the 4th quarter compared with the high deliveries in the 3rd quarter.

In the 4th quarter, energy consumption and spot prices as well as energy related raw material prices are expected to seasonally increase compared with the 3rd quarter. In addition, the annual maintenance stop at the Sarpsborg site will affect production

volume in the 4th quarter. War and conflicts in Ukraine and the Middle East as well as uncertainty in the global economy may impact Borregaard's markets and costs. Borregaard will continue to closely monitor developments and implement relevant measures if required.

The Group's interim condensed income statement	13
Interim earnings per share	13
The Group's interim condensed comprehensive income statement	13
The Group's interim condensed statement of financial position	14
Interim condensed changes in equity	14
The Group's interim condensed cash flow statement	15
Notes	16
Alternative performance measures	21

FINANCIAL STATEMENTS CONTENTS

THE GROUP'S INTERIM CONDENSED INCOME STATEMENT

INTERIM EARNINGS PER SHARE

			1.7 - 30.9	1.1 - 30.9	1.1-31.12
Amounts in NOK		2024	2023	2024	2023	2023
Earnings per share (100 mill. shares)	5	2.51	2.38	6.96	7.54	8.73
Diluted earnings per share	5	2.50	2.37	6.95	7.51	8.71

			1.7 - 30.9		1.1 - 30.9	1.1 - 31.12			1.7 - 30.9			1.1 - 30.9	1.1 - 31.12
Amounts in NOK million	Note	2024	2023	2024	2023	2023	Amounts in NOK million	Note	2024	2023	2024	2023	2023
Operating revenues	2	1,949	1,714	5,873	5,527	7,132	Profit for the period		248	242	693	751	856
Operating expenses		-1,425	-1,232	-4,397	-4,073	-5,351	Items not to be reclassified to P&L		-	-	-	-	-
Depreciation property, plant and equipment		-138	-121	-405	-351	-485	Actuarial gains and losses (after tax)		-	-	-	-	46
Amortisation intangible assets		-1	-1	-4	-4	-5	Total		-	-	-	-	46
Operating profit		385	360	1,067	1,099	1,291
Financial items, net	3	-59	-42	-158	-110	-167	Items to be reclassified to P&L		-	-	-	-	-
Profit before taxes		326	318	909	989	1,124	Change in hedging-reserve after tax (cash flow)	7	-61	214	-93	-343	-129
Income tax expense	4	-78	-76	-216	-238	-268	Change in hedging-reserve after tax	7	6	13	-29	-56	-25
Profit for the period		248	242	693	751	856	(net investment in subsidiaries)
Profit attributable to non-controlling interests		-2	5	-1	-	-14	Translation effects		-6	-30	38	92	45
Profit attributable to owners of the parent		250	237	694	751	870	Total		-61	197	-84	-307	-109
EBITDA1		524	482	1,476	1,454	1,781	The Group's comprehensive income		187	439	609	444	793
							Comprehensive income non-controlling interests		-3	4	-	4	-12
							Comprehensive income owners of the parent		190	435	609	440	805

¹Alternative performance measure, see page 21 for definition.

THE GROUP'S INTERIM CONDENSED COMPREHENSIVE INCOME STATEMENT

THE GROUP´S INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION

Amounts in NOK million	Note	30.9.2024	31.12.2023				1.1 - 30.9.2024			1.1 - 31.12.2023
Intangible assets	12	76	84				Non			Non
Property, plant and equipment	12	4,801	4,661			Controlling	controlling	Total	Controlling	controlling	Total
Right-of-use assets		483	527	Amounts in NOK million	Note	interests	interests	equity	interests	interests	equity
Other assets	8	354	437	Equity 1 January		4,855	39	4,894	4,394	51	4,445
Investments in joint venture/associate companies	3	424	289	Profit/loss for the period		694	-1	693	870	-14	856
Non-current assets		6,138	5,998	Items in Comprehensive Income	7	-85	1	-84	-65	2	-63
Inventories		1,360	1,447	The Group's Comprehensive income	7	609	-	609	805	-12	793
Receivables	8	1,563	1,201
Cash and cash deposits	10	172	469	Paid dividend		-374	-	-374	-324	-	-324
Current assets		3,095	3,117	Buy-back of treasury shares		-59	-	-59	-92	-	-92
Total assets		9,233	9,115	Exercise of share options		30	-	30	32	-	32
				Shares to employees		28	-	28	30	-	30
Group equity	9	5,098	4,855	Option costs (share based payment)		9	-	9	10	-	10
Non-controlling interests		39	39	Transactions with non-controlling interests		-	-	-	-	-	-
Equity		5,137	4,894	Equity at the end of the period		5,098	39	5,137	4,855	39	4,894
Provisions and other liabilities		400	401
Interest-bearing liabilities	8, 10	1,938	2,016
Non-current liabilities		2,338	2,417
Interest-bearing liabilities	8, 10	309	246
Other current liabilities	8	1,449	1,558
Current liabilities		1,758	1,804
Equity and liabilites		9,233	9,115
Equity ratio1		55.6%	53.7 %

INTERIM CONDENSED CHANGES IN EQUITY

¹Alternative performance measure, see page 21 for definition.

THE GROUP'S INTERIM CONDENSED CASH FLOW STATEMENT

			1.7 - 30.9		1.1 - 30.9 1.1 - 31.12				1.7 - 30.9		1.1 - 30.9		1.1 - 31.12
Amounts in NOK million	Note	2024	2023	2024	2023	2023	Amounts in NOK million	Note	2024	2023	2024	2023	2023
Profit before taxes		326	318	909	989	1,124	Cash and cash equivalents at beginning of period		212	278	429	111	111
Amortisation, depreciation and impairment charges		139	122	409	355	490	Change in cash and cash equivalents		-163	373	-394	516	319
Changes in net working capital, etc.		-69	87	-341	-87	205	Currency effects cash and cash equivalents		-4	-6	10	18	-1
Dividend/share of profit from JV & associate company	3	6	1	16	9	9	Cash and cash equivalents at the close of the period	10	45	645	45	645	429
Taxes paid		-11	-2	-239	-218	-265
Cash flow from operating activities		391	526	754	1,048	1,563	*Investment by category
Investments property, plant and equipment		-137	-130	-424	-374	-667	Replacement investments		122	110	354	300	550
and intangible assets *							Expansion investments1 including investment
Investments in associate companies*	3	-150	-	-150	-124	-171	in associate companies and bio-based start-ups		165	20	220	198	288
and bio-based start-ups							Total investments including investment in		287	130	574	498	838
Other capital transactions		3	2	10	7	9	associate companies and bio-based start-ups
Cash flow from investing activities		-284	-128	-564	-491	-829
Dividends		-	-	-374	-324	-324
Proceeds from exercise of options/shares to employees	9	1	-	51	45	49
Buy-back of treasury shares	6	-3	-	-59	-49	-92
Gain/(loss) on hedges for net investments in subsidiaries		5	12	-35	-76	-38
Net paid to/from shareholders		3	12	-417	-404	-405
Proceeds from interest-bearing liabilities	10	-	-	500	800	800
Repayment from interest-bearing liabilities	10	-270	-28	-694	-488	-843
Change in interest-bearing liabilities/other instruments	10	-3	-9	27	51	33
Change in net interest-bearing liabilities		-273	-37	-167	363	-10
Cash flow from financing activities		-270	-25	-584	-41	-415
Change in cash and cash equivalents		-163	373	-394	516	319

THE GROUP'S INTERIM CONDENSED CASH FLOW STATEMENT cont.

¹Alternative performance measure, see page 21 for definition.

NOTE 02 Segments

OPERATING REVENUES

EBITDA1
---------	--

There is limited intercompany sales between the different segments and eliminations consist essentially of allocations from the corporate headquarter. Operating revenues consist of sales revenues and other revenues such as commissions, revenues from waste received for incineration etc.

			1.7 - 30.9	1.1 - 30.9	1.1 - 31.12
	Amounts in NOK million	2024	2023	2024	2023	2023
	Borregaard	524	482	1,476	1,454	1,781
	BioSolutions	271	235	853	743	915
	BioMaterials	131	161	332	431	534
	Fine Chemicals	122	86	291	280	332
	Reconciliation against operating profit & profit before tax
	EBITDA1	524	482	1,476	1,454	1,781
	Depreciations and write downs	-138	-121	-405	-351	-485
	Amortization intangible assets	-1	-1	-4	-4	-5
	Other income and expenses1	-	-	-	-	-
	Operating profit	385	360	1,067	1,099	1,291
	Financial items, net	-59	-42	-158	-110	-167
	Profit before taxes	326	318	909	989	1,124

		1.7 - 30.9		1.1 - 30.9	1.1 - 31.12			1.7 - 30.9		1.1 - 30.9	1.1 - 31.12
Amounts in NOK million	2024	2023	2024	2023	2023	Amounts in NOK million	2024	2023	2024	2023	2023
Borregaard	1,949	1,714	5,873	5,527	7,132	Borregaard	1,921	1,688	5,792	5,450	7,024
BioSolutions	1,031	956	3,236	3,038	3,944	BioSolutions	1,004	934	3,160	2,969	3,849
BioMaterials	683	568	2,009	1,913	2,439	BioMaterials	673	557	1,977	1,880	2,395
Fine Chemicals	246	199	661	606	786	Fine Chemicals	244	197	655	601	780
Eliminations	-11	-9	-33	-30	-37	Eliminations	-	-	-	-	-

¹Alternative performance measure, see page 21 for definition.

SALES REVENUES

GENERAL INFORMATION

Borregaard ASA is incorporated and domiciled in Norway. The address of its registered office is Hjalmar Wessels vei 6, Sarpsborg.

Basis for preparation

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

NOTE 01 Organisation and basis for preparation

The same accounting principles and methods of calculation have been applied as in the Consolidated Financial Statements for 2023 for the Borregaard Group.

Use of estimates

The same use of estimates has been applied as in the Consolidated Financial Statements for 2023.

NOTES

The tax rate of 23.8% (24.1%) for the first nine months of 2024 is a compilation of the tax rates in the various countries in which Borregaard operates and has taxable income. The corporate income tax rate in Norway is 22%.

In addition to the compilation of the tax rates in the various countries in which Borregaard operates and has taxable income, the income tax rate for the Group is also impacted by the following: LignoTech Florida is a limited liability company (LLC) which is taxed on the owners'

The share capital consists of 100 million shares. The company holds 250,200 treasury shares. As of 30 September 2024, there are 99,822,477 diluted

hand. Profit before tax is 100% consolidated in the Borregaard Group, whereas the tax expense is calculated based on Borregaard's 55% ownership. Consequently, profit attributable to non-controlling interests for LignoTech Florida (45%) is calculated on profit before tax. Share of profit after tax from the associated companies, Alginor ASA and Kaffe Bueno ApS, is accounted for as part of operating profit and profit before tax. There are carry forward losses in the Group which will not be recognised as deferred tax assets, and hence increase the Group's tax rate.

shares (99,753,4595 as of 31 December 2023). Earnings per diluted share were NOK 2.50 in the 3rd quarter (NOK 2.37 in the 3rd quarter of 2023).

NOTE 04 Income tax expense

NOTE 05 Earnings per share (EPS)

NOTE 03 Financial items

NET FINANCIAL ITEMS

	1.7 - 30.9			1.1 - 30.9
Amounts in NOK million	2024	2023	2024	2023	2023
Net interest expenses	-40	-37	-121	-101	-141
Currency gain/loss	-9	-4	-11	1	-15
Share of profit/-loss from associates	-6	-2	-16	-5	-9
Other financial items, net	-4	1	-10	-5	-2
Net financial items	-59	-42	-158	-110	-167

As of 30 September 2024, Borregaard holds 35% of the shares in Alginor ASA on a fully diluted basis. Borregaard also holds 12% of the shares in Kaffe Bueno ApS.

Other financial items, net includes changes in committed return on the Group's unfunded pension plan.

NOTE 06 Stock options NOTE 07 Statement of comprehensive income

During the 3rd quarter, 15,000 share options at a strike price of NOK 87.60 per share were exercised.

The Group Executive Management and other key

The statement of comprehensive income shows changes in the value of hedging instruments, both cash flow hedges and hedges of net investments in subsidiaries (hedging reserve).

These figures are presented after tax.

employees hold a total of 1,129,000 stock options in five different share option programmes in Borregaard.

* Strike prices as at 30 June 2024 have been adjusted for dividend paid since issuance of stock options.

Stock options	Issued 2020	Issued 2021	Issued 2022	Issued 2023	Issued 2024
Number of stock options	65,000	243,000	200,000	250,000	371,000			30.9.2024		30.9.2023		31.12.2023
Strike price (NOK)*	87.60	168.70	216.75	187.00	195.35			Hedges of net		Hedges of net		Hedges of net
Vesting period	3 years	3 years	3 years	3 years	3 years	Amounts in NOK million	Cash flow hedges	investments in subsidiares	Cash flow hedges	investments in subsidiares	Cash flow hedges	investments in subsidiares
Expiry date	13 February 2025	16 February 2026	17 February 2027	1 March 2028	27 February 2029	Tax effect year-to-date	-94	-80	-130	-80	-69	-72
						Hedging reserve after tax	-338	-250	-459	-252	-245	-221

FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE

Amounts in NOK million		Level 1	Level 2	Level 3
Financial instruments 30.9.2024	-2,472	-	-1,972	-500
Financial instruments 31.12.2023	-2,358	28	-1,886	-500

FINANCIAL ASSETS

			30.9.2024		31.12.2023
Amounts in NOK million	Level	Carrying amount	Fair value	Carrying amount	Fair value
Non-current financial receivables	2	180	180	185	185
Non-current derivatives	2	15	15	93	93
Share investments	1	-	-	28	28
Share investments	2	28	28	-	-
Current derivatives	2	17	17	31	31
Total financial assets		240	240	337	337
FINANCIAL LIABILITIES
Non-current financial liabilities	2, 3	1,940	1,940	2,018	2,018
Non-current derivatives	2	191	191	176	176
Current financial liabilities	2	309	309	246	246
Current derivatives	2	272	272	255	255
Total financial liabilities		2,712	2,712	2,695	2,695

NOTE 08 Fair value hierarchy

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

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

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

There were transfer of financial instruments from level 1 to level 2 from 2023 to the 1st quarter of 2024. There have been no transfers from the 1st to the 3rd quarter of 2024. Borregaard consequently has no items defined as level 1. The bond is determined as measurement level 3. The fair value of the bond is deemed to equal its book value.

Set out below is a comparison of the carrying amount and the fair value of financial instruments as of 30 September 2024:

The financial instruments are measured based on observable spot exchange rates, the yield curves of the respective currencies as well as the currency basis spreads between the respective currencies.

-

NOTE 9 Compilation of Equity NOTE 11 Related parties

NOTE 12 Assessments relating to impairment

NOTE 10 Net interest-bearing debt1

As of 30 September 2024, the company held 250,200 treasury shares at an average cost of NOK 189.91.

Amounts in NOK million	30.9.2024	31.12.2023
Share capital	100	100
Treasury shares	-	-
Share premium	1,346	1,346
Other paid-in capital	1,020	953
Translation effects	288	251
Hedging reserve (after tax)	-588	-466
Actuarial gains/Losses	88	88
Retained earnings	2,844	2,583
Group equity (controlling interests)	5,098	4,855

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

Amounts in NOK million	30.9.2024	31.12.2023
Non-current interest-bearing liabilities	1,938	2,016
Current interest-bearing liabilities including overdraft of cashpool	309	246
Non-current interest-bearing receivables (included in "Other Assets")	-2	-2
Cash and cash deposits	-172	-469
Net interest-bearing debt1	2,073	1,791
- of which impact of IFRS 16 Leases	527	563

The members of the Group Executive Management of Borregaard held a total of 507,000 stock options in the Company as of 30 September 2024.

No impairment indicators have been identified in the Borregaard Group's property, plant and equipment or intangible assets in the 3rd quarter of 2024.

123	Tr
00	of
	in
346
153
251
166	NI
88
583	No
355	in

¹Alternative performance measure, see page 21 for definition.

NOTE 13 Other matters and subsequent events New supply contract for electric power with Hafslund

Borregaard and the Norwegian hydropower producer Hafslund have entered into a new long-term power purchase agreement, for the period 2025 to 2034. The annual contract volume is 88 GWh, representing 10–15% of the Sarpsborg site's annual consumption. See notice to Oslo Stock Exchange on 20 September 2024.

Borregaard to increase capacity by debottlenecking the Sarpsborg site

Borregaard will invest NOK 490 million to debottleneck and increase the capacity at the Sarpsborg site. This investment is part of the expansion investment plan announced at the Capital Markets Day in September 2024.

The debottlenecking is the first out of the two planned investments to increase capacity at the Sarpsborg site towards 2027. In total, the expected capacity increase is 5-10%. Production output is expected to increase gradually from the second half of 2026.

In addition to increasing capacity for speciality cellulose, lignin-based biopolymers and bioethanol, this investment will enable higher raw material utilisation and reduce effluents to water.

There have been no events after the balance sheet date that would have had a material impact on the financial statements, or the assessments carried out.

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

ALTERNATIVE PERFORMANCE MEASURES

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.

		1.7 - 30.9		1.1 - 30.9		1.1 - 31.12
	EBITDA	2024	2023	2024	2023	2023
	Operating profit	385	360	1,067	1,099	1,291
	Other income and expenses	-	-	-	-	-
	Amortisation intangible assets	1	1	4	4	5
	Depreciation and impairment property, plant and equipment	138	121	405	351	485
	EBITDA	524	482	1,476	1,454	1,781

			1.7 - 30.9		1.1 - 30.9	1.1 - 31.12
	EBITDA MARGIN	2024	2023	2024	2023	2023
	EBITDA	524	482	1,476	1,454	1,781
	Operating revenues	1,949	1,714	5,873	5,527	7,132
	EBITDA margin (%) (EBITDA/operating revenues)	26.9	28.1	25.1	26.3	25.0

EBITDA

EBITDA MARGIN

EQUITY RATIO

Description

EBITDA is defined by Borregaard as operating profit before depreciation, amortisation and other income and expenses.

Description EBITDA margin is defined by Borregaard as EBITDA divided by operating revenues.

Description

Equity ratio is defined by Borregaard as equity (including non-controlling interests) divided by equity and liabilities.

Reason for including

Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related transactions and events not considered by management to be part of operating activities. Management believes the measure enables an evaluation of operating performance.

Reason for including Shows the operations' performance regardless of capital structure and tax situation as a ratio to operating revenue.

Reason for including

Equity ratio is an important measure in describing the capital structure.

	EQUITY RATIO	30.9.2024	30.9.2023	31.12.2023
	Total equity	5,137	4,575	4,894
	Equity & liabilities	9,233	9,045	9,115
	Equity ratio (%) (total equity/equity & liabilities)	55.6	50.6	53.7

) 23
781
132
5.0

EXPANSION INVESTMENTS

OTHER INCOME AND EXPENSES

Description

Borregaard's investments are either categorised as replacement or expansion. Expansion investments is defined by Borregaard as 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 research and development costs and new distribution set-ups.

Description

Other income and expenses are defined by Borregaard as 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.

Reason for including

Borregaard's strategic priorities are specialisation and diversification, increase value added from the biorefinery, develop business areas and to continue emphasis on ESG along the entire value chain. To be able to deliver on those priorities, expansion investments are needed. As such, expansion investments are important information for investors. One of Borregaard's financial objectives is to have an internal rate of return >15% pre-tax for expansion investments.

Reason for including

To be able to compare the EBITDA of different reporting periods, significant non-recurring items not directly related to operating activities, are included in Other income and expenses.

		1.7 - 30.9		1.1 - 30.9	1.1 - 31.12
EXPANSION INVESTMENTS	2024	2023	2024	2023	2023
Total investments including investment in associate companies and bio-based start-ups	287	130	574	498	838
Replacement investments	-122	-110	-354	-300	-550
Expansion investments including investment in associate companies and bio-based start-ups	165	20	220	198	288

	1.7 - 30.9		1.1 - 30.9		1.1 - 31.12
OTHER INCOME & EXPENCES	2024	2023	2024	2023	2023
Other income & expences	-	-	-	-	-

NET INTEREST-BEARING DEBT

LEVERAGE RATIO

Description

Net interest-bearing debt is defined by Borregaard as interest-bearing liabilities minus interest-bearing assets.

Description

Leverage ratio is defined by Borregaard as net interest bearing debt divided by last twelve months' (LTM) EBITDA.

Reason for including

Net interest-bearing debt provides an indicator of the net indebtedness and an indicator of the overall strength of the statement of financial position. Net interest-bearing debt is part of Borregaard's financial covenants (leverage ratio) and is important in understanding the capital structure.

Reason for including

Leverage ratio is an indicator of the overall strength of the statement of financial position. Borregaard has a targeted leverage ratio between 1.0 and 2.25 over time. Leverage ratio is Borregaard's financial covenant on long-term credit facilities.

24 Q3 2024 BORREGAARD FINANCIAL STATEMENTS CONTENTS PREVIOUS NEXT

	NET INTEREST-BEARING DEBT	30.9.2024	30.9.2023	31.12.2023
	Non-current interest-bearing liabilities	1,938	2,008	2,016
	Current interest-bearing liabilities including overdraft of cashpool	309	580	246
	Non-current interest-bearing receivables (included in "Other assets")	-2	-2	-2
	Cash and cash deposits	-172	-707	-469
	Net interest-bearing debt	2,073	1,879	1,791

LEVERAGE RATIO	30.9.2024	30.9.2023	31.12.2023
Net interest-bearing debt	2,073	1,879	1,791
EBITDA	1,803	1,818	1,781
Leverage ratio (net interest-bearing debt/EBITDA)	1.15	1.03	1.01

CAPITAL EMPLOYED

Description

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.

Reason for including Borregaard uses capital employed as basis for calculating ROCE.

CAPITAL EMPLOYED (END OF PERIOD)	30.9.2024	30.9.2023	31.12.2023
Capital employed (end of period)	7,813	7,191	7,142

RETURN ON CAPITAL EMPLOYED (ROCE)	30.9.2024	30.9.2023	31.12.2023
Capital employed end of:
Q3, 2022	-	7,015	-
Q4, 2022	-	6,802	6,802
Q1, 2023	-	7,142	7,142
Q2, 2023	-	7,216	7,216
Q3, 2023	7,191	7,191	7,191
Q4, 2023	7,142	-	7,142
Q1, 2024	7,789	-	-
Q2, 2024	7,582	-	-
Q3, 2024	7,813	-	-
Average capital employed	7,503	7,073	7,099
CAPITAL CONTRIBUTION	30.9.2024	30.9.2023	31.12.2023
Operating profit	1,259	1,327	1,291
Other income and expenses	-	20	-
Amortisation intangible assets	5	6	5
Capital contribution	1,264	1,353	1,296
RETURN ON CAPITAL EMPLOYED (ROCE)	30.9.2024	30.9.2023	31.12.2023
Capital contribution	1,264	1,353	1,296
Average capital employed	7,503	7,073	7,099
Return on capital employed (ROCE) (%) (capital contribution/average capital employed)	16.8	19.1	18.3

RETURN ON CAPITAL EMPLOYED (ROCE)

Description

Return on capital employed (ROCE) is defined by Borregaard as 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.

Reason for including

ROCE is an important financial ratio to assess Borregaard's profitability and capital efficiency. One of Borregaard's financial objectives is to have ROCE >15% pre-tax over a business cycle.

Q3 2024

Borregaard ASA P.O. Box 162, NO-1701 Sarpsborg, Norway Telephone: (+47) 69 11 80 00 Fax: (+47) 69 11 87 70 E-mail: borregaard@borregaard.com www.borregaard.com