Slides
Page 1
July 2026 Business model, businesses & strategy
Page 2
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 futurein 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, itcan 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 fromyour 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. 2
Page 3
Contents 3 • Borregaard’s business model and strategy 4 • Sustainability, innovation and bio-based investments 11 • BioSolutions – Biopolymers and Biovanillin 20 • BioMaterials – Speciality cellulose and Cellulose fibrils 42 • Fine chemical intermediates and Bioethanol 50 • Financials 51
Page 4
Borregaard investor message | Business model & strategy 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 BIOPOLYMERS & BIOVANILLIN 30% LIGNIN SPECIALITY CELLULOSE & CELLULOSE FIBRILS 45% FIBRES BIOETHANOL 25% SUGARS 1 Segment revenue as a % of sales revenue 2025 2 Leading producer of fine chemical intermediates for contrast agents, significant producer of advanced bioethanol (2G) Only the latter is made from wood.4
Page 5
Borregaard is a global leader in biochemicals | Business model & strategy 5 High value added through full raw material utilisation Sustainable and environmentally friendly substitutes for petrochemicals
Page 6
Integration models: Own integrated, Partner integrated and Independent 6 END MARKETS 2025INTEGRATED PRODUCTION SYSTEM SERVING DIVERSE MARKETS S P E C I A L I T Y C E L L U L O S E Construction Filters Inks and coatings Casings Food/pharma/personal care Textiles B I O P O L Y M E R S Construction Animal feed pellets Batteries Briquetting Crop protection Plant nutrition B I O V A N I L L I N Food and beverages Fragrances Personal care and cosmetics Pharmaceuticals Agrochemicals B I O E T H A N O L Biofuel Disinfectants Pharmaceutical industry Home and personal care products Paints and coatings Car care C E L L U L O S E F I B R I L S Adhesives Coatings Agriculture Personal care Home care Construction 28% Agriculture Chemical/ OthersConstruction Food & Pharma 21% Chemicals/other 38% Construction 16% Agriculture 25% One of the world’s most advanced biorefineries |Business model & strategy
Page 7
Leading global speciality cellulose supplier Pioneer in cellulose fibrils F i n e C h e m i c a l s9% 1 B i o S o l u t i o n s 56% 1 B i o M a t e r i a l s35% 1 Global niche player with a market driven organisation | Business model & strategy Largest supplier, technology leader in lignin- based biopolymers with global markets Only producer of wood-based vanillin Leading producer of fine chemical intermediates for contrast agents Significant producer of advanced bioethanol (2G) 28% Agriculture Chemical/ Others Construction Europe 45% Asia 25% Americas2 29% RoW 1% Sales distribution (2025) 1 Segment revenue as a % of sales revenue 2025 2 USA 22%, rest of Americas 7% Market driven organisation ≈120 FTEs strong sales/technical service organisation Dedicated sales force for each business unit Sales primarily handled through own organisation 7
Page 8
The specialisation strategy | Business model & 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 8
Page 9
Key strategic considerations| Business model & strategy 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 Increasing momentum for bio-based products – considerable potential for further specialisation and value growth Explore expansion and debottlenecking opportunities at the Sarpsborg biorefinery Low-risk investment raising barriers to entry 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 Consumer and investor attention drives demand for greener solutions EU Green Deal Taxonomy Science Based Targets initiative 9
Page 10
Strategic priorities | Business model & strategy Increased specialisation and value growth Specialisation through market development and innovation Leverage high-value lignin raw materials 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 and regulatory as value drivers Exploit full market potential of biochemicals product portfolio Delivery of environmental targets strengthens competitive edge Sustainability a key decision criterion for innovation and new initiatives 10
Page 11
Sustainability – integral part of market offering | Sustainability 1 PEFC: Programme for the Endorsement of Forest Certification, FSC: Forest Stewardship Council 2 Life Cycle Analysis 3 Environment, Health and Safety11 P R O C E S S E S P R O D U C T SR A W M A T E R I A L S Natural, renewable, sustainable raw materials Efficient and sustainable production and value chain Sustainable biochemicals Sustainable and certified wood Documentation PEFC1 and FSC1 standards Lignin raw materials from certified or controlled forests Non-GMO raw material Reduced emissions improve LCA2 Target based CO2 reductions Energy conservations New/green energy sources Reduced emissions to water and air “Greener” logistical solutions Products add sustainability value to customers Climate: LCA2 shows favourable GHG footprint Bio-based: Natural raw materials preferred EHS3: Non-toxic, harmless products
Page 12
Climate change and the environment – targets and ratings | Sustainability Science Based Targets for GHG emissions Approved by Science Based Targets initiative in 2022 Targeted reductions in GHG emissions (scope 1 and 2): o 42% absolute reduction by 2030 (base year = 2020) o Net-zero target, 90% absolute reduction by 2050 Targets in line with 1.5°C goal in Paris Agreement and Norwegian Climate Law Highlighted as a global leader in corporate climate action by CDP Top 25 out of 21,000 companies scored (2023) A within Climate Change (6 years in a row) A within Water security A- within Forest Gold status in EcoVadis Supply Chain Top 5% of over 130,000 reporting companies 12
Page 13
Transition plan supporting the specialisation strategy| Sustainability 13
Page 14
Market driven innovation | Innovation Innovation Management Teams (IMT) Interdisciplinary team Strategic projects Resource use Programmes over several years ≈100 employees in R&D and innovation R&D centres in Norway, USA and India 32 PhDs Significant R&D and innovation efforts 2025: NOK 222 million (≈3% of revenues) Innovation rate of 11%1 in 2025 14 1 Share of sales revenues from new products and applications introduced during the previous five years. Target is 15%.
Page 15
Business driven innovation model | Innovation 15 Idea database Ideas from sales, technical application, R&D, production, external partners Innovation Management Teams (IMT) Interdisciplinary development work Scale-up and commercialisation IMT • Chaired by head of business unit • Cross functional team of line managers • Gatekeepers at important milestones Co-work with (when required): • Universities • Research institutes • Consultants Co-work with (when possible): • Customers
Page 16
Overview of innovation portfolio| Innovation Crop protection, plant nutrition, feed Concrete, coatings, packaging Batteries, pigments, inks, home care and resins Cellulose Acetate Purity Cellulose ethers Viscosity Process improvements Capacity, quality, sustainability Disruptive innovation New processes and products Bio-based investments Investing for the long term Application-oriented innovation Process-oriented innovation Business development 16
Page 17
Borregaard investing in bio-based start-ups | Bio-based investments 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 17
Page 18
Investments in bio-based start-ups | Bio-based investments Harvesting and biorefining of macroalgae to ingredients for pharmaceutical and nutraceutical applications (Norway) Biorefining of spent coffee grounds to ingredients within personal care, human nutrition and agriculture (Denmark) Processing of technical lignins from biorefineries for use in personal care as well as industrial applications (Austria) Biorefining of farmed macroalgae to ingredients within food, health & wellness, skincare and materials (Scotland) 41% ownership Total investment nearly 500 mNOK Convertible loan approx 110 mNOK 12% ownership fully diluted with 3 mEUR investment 12% ownership Total investment 1 mEUR <1% ownership Total investment 0.15 mUSD About the company Ownership and size of investment Follow-up of investment Board and observer positions Nomination committee Collaboration in projects Joint funding applications Board position Joint funding application Advisory board 18
Page 19
Strategic fit of bio-based investments | Bio-based investments Processing B2B sales Biorefining Water soluble lignosulfonate Non-water soluble technical lignins Woody biomass Harvested kelp Coffee waste Fibres, polysaccharides, sugars Lignin, polyphenols Lipids, resins, oils, proteins Farmed kelp 19
Page 20
BioSolutions in Borregaard | BioSolutions Market position Largest supplier of lignin-based biopolymers Only supplier of wood-based vanillin Unique technical and application expertise Production Norway, USA, Germany, Czech Republic, UK Applications Concrete admixtures Gypsum board Ceramics Animal feed Crop protection Plant nutrition Oilfield chemicals Batteries Flavours & fragrances Personal care and pharmaceuticals Key attractions A sustainable and broad product portfolio Large and diverse customer base High barriers to entry 20
Page 21
Biopolymers: Lignin – a sustainable and flexible raw material | BioSolutions Product performance depends on the pulping process and the raw material Sulphite pulping process Versatile lignin used in a variety of products/applications Quality depends on the chemicals base Water soluble Limited number of sulphite mills Softwood (pine/spruce) vs. hardwood and straw Softwood lignin has superior modification potential Kraft (sulfate) pulping process Lignin is normally incinerated to recover energy and chemicals Not in water soluble form from the pulp mill Pulp producers are exploring potential for industrial use of kraft lignin 21 Fibres 45 % Sugar/other 25 % Lignin 30 % Biochemicals Incineration Bioenergy Discharge
Page 22
PRODUCT PROPERTIES PRODUCT FEATURES APPLICATION AREAS BINDING DISPERSING COMPLEXING CRYSTAL GROWTH CONTROL ANTI- OXIDANT CORROSION INHIBITING UV ABSORBING BIO-BASED MULTI- FUNCTIONAL TAILOR- MADE ROBUST LCA/EPD SUSTAINABLE COMPATIBLE CONSTRUCTION AGRICULTURE BATTERIES ANIMAL FEED OIL & GAS INDUSTRIAL HOME CARE 22 Lignin biopolymers: Properties, advantages and applications | BioSolutions
Page 23
Diversification: 600 products to 2,800 customers | BioSolutions 23 BioSolutions properties and applications Binding agent Crystal growth control Dispersing agent/ rheology control Flavours and fragrances Ceramics Dust solutions Feed Granulated limestone Batteries Oilfield chemicals Water treatment Carbon black and pigments Concrete admixtures Dyestuffs Metals and minerals Micronutrients Pesticides and biological pest control Food Fragrances Personal care Chemical building blocks Revenues by end-market and region 0% 10% 20% 30% 40% 50% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Top 3 Top 10 Top 10 and top 3 customers in % of revenues Construction 15%Other end-markets 40% Agriculture 45% Americas 44% RoW 2% Asia 21% Europe 33% Sales distribution 2025Revenue by end-market 2025 Additional properties Agrochemicals Pharmaceuticals Resins Antioxidant Anti-microbial Biostimulant Complexing agent Corrosion inhibitor Emulsion stabiliser Soil conditioner UV protection
Page 24
Global lignin supply | BioSolutions • Borregaard manufacturing facilities Others | Source: Borregaard estimates Borregaard DomsjöSappi Nippon Caima Hood Burgo Lenzing Russia Others By Sales volume Global lignin supply 900 – 950,000 mtds 24
Page 25
0 250 500 750 1 000 1 250 1 500 1 750 2 000 2 250 2 500 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Sales revenues (mNOK) Specialities Industrial Construction Significant specialisation and value growth over time | BioSolutions 25 Strong development in sales to Specialities & Industrial Gross sales trebled from 2012 Significant portfolio optimisation Increased specialisation Reduced exposure to low-value markets Less cyclicality
Page 26
Sustainability and regulatory offering new opportunities | BioSolutions 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 26
Page 27
Attractive growth opportunities in Asia| BioSolutions 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 27
Page 28
Key strategic priorities 2025-2027 | BioSolutions Specialisation and value growth Attractive growth in key markets and applications Sustainability and regulatory offering new opportunities Significant potential for upgrade of product portfolio Growth drivers Accelerate in Asia Advance in agriculture Exploit growth in electrification Strategic priorities Replace synthetic alternatives Safe animal feed Avoid substances of concern New green technologies Increased capacity & specialisation Optimisation and value growth Applications Agri, batteries, pigments & inks Agri, bioresins, feed, home care, packaging Agri, batteries, bioresins, feed, dust control, home care, industrial binders 28
Page 29
Sources: Report & Data, Market study report, biostimulant.com/agropages, IHS Markit, Transparency Market Research, Knowledge Sourcing Intelligence Biopolymers in agriculture | BioSolutions 8–9% CAGR 7–12% CAGR 7–12% CAGR 6–7% CAGR 11–12% CAGR 2–3% CAGR 2–3% CAGR Plant nutrition Crop protection FeedSeed coating 8–9% CAGR 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 Micronutrients Soil conditioners /biostimulants Granulated limestone and fertilisers Pestizides Biological pest control Adjuvants Encrusted and pelleted seeds Animal feed 29
Page 30
Plant nutrition: Sustainable soil conditioners and biostimulants | BioSolutions 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 Plant nutrition market CAGR 12%1 1 Sources: Report & Data, Market study report, biostimulant.com/agropages, IHS Markit, Transparency Market Research, Knowledge Sourcing Intelligence30
Page 31
Crop protection: Opportunities within biological pest control | BioSolutions 1 Source: DunhamTrimmer 2023 Global Biostimulant Market Report - DunhamTrimmer 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 Biocontrol market CAGR 12%1 31
Page 32
Lead batteries: Borregaard products as industry standard| BioSolutions 1 Source: Battery Council International, Energy Storage for Essential Applications | Battery Council International 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) 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) 32
Page 33
Li-ion batteries: Opportunities within emerging technologies | BioSolutions 1 Source: McKinsey & Company, Lithium-ion battery demand forecast for 2030 | McKinsey 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 electrode properties and safety Increased production throughput and reduce manufacturing costs Sustainable and non-toxic Ongoing trials with key global players 33
Page 34
New green technology: Opportunities in high-end markets | BioSolutions Unique features Demonstration plant Market opportunities Natural polymer backbone Enables Borregaard to compete with advanced fossil-based polymers like e.g. polyacrylates 100 mNOK investment, first step operational Q3 2024, completion mid-2025 Home care, industrial cleaners, water treatment, coatings, agriculture, leather tanning, oil field chemicals Modified lignin-based polymer from sustainably managed Norway spruce 34
Page 35
New green technology: Entering the home care market | BioSolutions Effect Customer value Sustainable formulation Less film on glass, plastic and ceramic Excellent replacement for polyacrylate in dishwasher tablets and laundry Effective and sustainable anti-filming agent in auto dishwasher detergents 5–8% dosage in dishwasher tablet or powder 1 Lignobrite is a Borregaard product for the home care market35
Page 36
New green technology: Entering the coatings market | BioSolutions Effect Customer value Sustainable alternative Improved dispersion of pigments Better scrub resistance and hiding power No colour variation Enables replacement of advanced fossil-based dispersants in coatings Product launch in 2024 Novel bio-based high-performance dispersant for coatings 36
Page 37
Sustainability and regulatory opportunities in Animal feed | BioSolutions Customer value Regulated market Trends Multitude of applications Improved productivity and product quality, bio-based, no animal origin, non-GMO, safe to use, global availability Compliance and certifications required to serve the market Increasing demand for high-quality and sustainable products CAGR 2–3% for animal-based food Borregaard’s products used as pelleting aids, emulsion stabilisers, bypass protein, acidifiers 37
Page 38
Animal feed: Regulatory driving change | BioSolutions 15.07.2026 Regulatory Outlook Benefits Borregaard’s lignin re-authorised for use in animal feed within EU – February 2024 Consumption of meat per capita expected to increase towards 2030 Strong trends towards bio-based and efficient products Better pellet consistency and durability Improved production rates Decreased energy consumption PELLETING AIDS Regulatory Outlook Benefits Formaldehyde ban in dairy production within EU Modest growth for dairy products in coming years Expect other regions to follow EU’s formaldehyde ban, will offer opportunities to Borregaard Feed protein content is key in milk production Bypass technologies prevent loss of protein Borregaard offers cost-efficient and sustainable solutions BYPASS PROTEIN 38
Page 39
Animal feed: New feed binder for the aqua culture industry | BioSolutions Effect Outlook Background Currently in the scale-up stage Product launched in 2024 First commercial sale in 2025 90% of shrimp feed contain binders Dominating synthetic binders (urea formaldehyde) will be banned Strong demand for non-synthetic sustainable binders New binder formulation developed and tested by customer Similar performance as synthetic binders New binder formulation patented (pending) 39
Page 40
Guethol (ethyl vanillin) Lignin from wood Ferulic acid from bran/straw Sales volume 2023 (mt)¹⁾ Eugenol from clove 40 Beans Natural/flavour profile ≈2,400² ≈50–60 1,000+ Vanilla beans Raw material Key selling points Indicative price level USD/kg¹ # of manufacturers¹ Growth¹ Plant-based vanillin Guaiacol from creosote/tar Plant based/natural raw material/sustainability /flavour profile ≈1,800 ≈200 30–70 Borregaard – the only producer of wood-based vanillin | BioSolutions 1 Company estimates 2 Cured vanilla pods contain around 1-2% vanillin, corresponding to around 25 – 50 mt on pure vanillin basis 3 Towards the end of 2023, the prices of synthetic and ethyl vanillin dropped below 10 USD/kg due to increased Chinese production ≈5% Oil-based & ethyl vanillin Guaiacol (vanillin) Price ≈17,000 ≈6,000 10 – 153 4 5 1 3 3 4 ≈2-3%
Page 41
Biovanillin – well positioned for growth | BioSolutions Strong demand growth for bio-based vanillin Consumer preferences Sustainability Competitive edge Global market leader in bio-based vanillin Advanced and attractive flavour profile >90% reduced carbon footprint vs. fossil-based vanillin Certified spruce wood, sustainable forestry Cost competitive technology Outlook Capacity expansion well above the +20% target Continued gradual introduction Significant expansion of fossil-based capacity 41 Anti-dumping investigations chinese vanillin Both in EU1 and the US2, anti-dumping investigations have been initiated for all grades of vanillin produced in China On January 10, the US announced preliminary anti- dumping and countervailing duties on vanillin from China3. On June 11, EU imposed a definitive anti-dumping duty on imports of vanillin from China4 Borregaard expects a positive but limited impact from these duties 1 https://eur-lex.europa.eu/eli/C/2024/3241 2 https://www.trade.gov/initiation-ad-and-cvd-investigations-vanillin-china 3 https://www.trade.gov/preliminary-determination-ad-investigation-vanillin-china 4 https://eur-lex.europa.eu/eli/reg_impl/2025/1151/oj
Page 42
1.4 MMT 6 - 7 MMT Fluff 6 MMT Commodity market pulp 60 MMT Global speciality cellulose market – Borregaard focus areas|BioMaterials Source: Celco and Hawkins Wright market reports, and Borregaard estimates for 2025 1 Million metric tonnes 42 Speciality cellulose Viscose (textile) Dissolving pulp Increasing specialisation Borregaard focus areas Growth in non-filter tow applications in acetate Regulated segments in ethers High viscosity industrial ethers Ether regulated, acetate LCD Acetate bio-based plastics, specialty casings Acetate tow, acetate yarn, ether industrial, NC, ether construction specialties Ether construction commodities, MCC, casings
Page 43
Market overview – targeting highly specialised applications| BioMaterials Speciality cellulose demand ≈1.4 million mt1 2025 Target segments in highly specialised applications Segments Applications CAGR 2026-2028 Acetate Biodegradable plastics, LCD, yarn, cigarette filters 0–2% Ethers Food, pharma, personal care. construction, coatings 1–3% High purity casings Sausage casings 1–2% Source: Celco and Hawkins Wright market reports, and Borregaard estimates 1 Metric tonne 2 Cellulose ether demand excl. technical grade CMC43 Acetate 40% Ethers ² 30% NC 10% MCC 10% Casings/Tire Cord/Sponges 7% Filtration 3%
Page 44
Speciality cellulose suppliers | BioMaterials 9 wood pulp mills and several CLP suppliers with a total capacity 1.6 million mt speciality cellulose1 Top players use textile and fluff markets as capacity filler Limited volumes from viscose pulp producers into speciality segments due to barriers to entry 44 1 Source: Celco and Hawkins Wright market reports and Borregaard estimates. Includes miscellaneous Chinese CLP producers. RYAM Fernandina RYAM Jesup ADM Southern Cell Chattanooga Bracell (RGE) Sappi Saiccor Borregaard Domsjö RYAM Tartas Misc Chinese cotton linter pulp Nippon Paper Owned by viscose fibre producersKraft Sulphite Cotton linter pulp Austrocel
Page 45
Cellulose ethers: Targeted growth in regulated applications| BioMaterials Other Pharma/personal care Food Coatings Construction Borregaard’s ether strategy Focus on regulated applications like food, pharma and personal care Growth expected in the 2026–2028 period Shift from industrial to regulated applications in Western Hemisphere Gradual reduction of share within industrial applications by reducing exposure to low-value grades in construction Cellulose ether market by application 45 Source: Celco and Hawkins Wright market reports, and Borregaard estimates
Page 46
Ice Bear technology: Driving high-value product portfolio | BioMaterials Market and ambitions for Ice Bear Significant market share growth within acetate (non-filter tow) Rapid growth in high-purity casings after GP’s Foley closure Enabler for ambitions within ether regulated applications Ramp-up of Ice Bear production based on market demand Ice Bear volume expectations 0 5 000 10 000 15 000 20 000 25 000 30 000 35 000 40 000 2019 2020 2021 2022 2023 2024 2025 2026 2027 +69% Acetate (filter tow) Ether regulated segments, high-purity casings, non-filter tow acetate 46
Page 47
Ice Bear in bio-based plastics | BioMaterials 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 30,000 tonnes Ice Bear contracted for 2026 Long-term potential of 50,000 tonnes 47
Page 48
87% 13% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Highly specialised Other Volume split % Geographical split (sales revenues) Customer base and concentration (sales revenues) Sales distribution 2025 | BioMaterials Borregaard is positioned in high-end segments in Europe and Asia, with strong and long-lasting customer relationships 48 32% 68% 0% 20% 40% 60% 80% Top 3 Top 10 1) Europe 58% Asia 33% Americas 9% Source: Borregaard estimates 1) Acetate, ether, high purity casings and sponges, and tire cord grades
Page 49
Cellulose fibrils | BioMaterials 49 Global leader in micro-/nanofibrils More than 30 application areas from pharma to concrete Competitors in pilot plant or captive use phase Embryonic but fast-growing market Large scale plant with 1,000 tonnes dry capacity Growing customer base Zero emissions Network of micro and nano fibrils with large surface area Cellulose fibers defibrillated into millions of tiny fibrils (100,000 times thinner than hair) 1 gram covers a tennis court Key benefits Improves flow, stability, flexibility and strength in industrial formulations and materials
Page 50
Fine Chemicals in Borregaard | Fine Chemicals Fine chemical intermediates Leading producer of intermediates for contrast agents Production of C3 aminodiols and intermediates for pharmaceutical products in Sarpsborg, Norway Applications: Contrast agents for medical imaging and medicines 5–7% market growth 50 Bioethanol Leading producer of advanced bioethanol (2G) Favourable climate footprint Applications: Primarily into biofuel o Future growth possible within pharmaceutical industry, as synthetic ethanol is replaced by greener alternatives Capacity: 25 million liters 1 Source: Borregaard estimates
Page 51
Financial objectives and dividend policy | Financials 51 Financial objectives ROCE² >15% pre-tax over a business cycle IRR >15% pre-tax for expansion capex Average net working capital at 20% of operating revenues Replacement capex at depreciation level Maintain key financial ratios corresponding to an investment grade rated company o Leverage ratio1 targeted between 1.0 and 2.25 over time o Issuer rating of A-/Stable from Scope ratings affirmed in March 2026 Borregaard’s dividend policy To pay regular and progressive dividends reflecting Borregaard’s expected long term earnings, free cash flows and expansion capex Annual dividend is targeted between 40% and 60% of net profit for the preceding fiscal year 1 Net interest-bearing debt divided by last twelve months’ EBITDA² 2 Alternative performance measure – see Appendix
Page 52
1,00 1,10 1,25 1,50 1,75 2,00 2,25 2,30 2,50 2,75 3,25 3,75 4,25 4,751,75 2,25 0,00 1,00 2,00 3,00 4,00 5,00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 NOK per share Ordinary dividend Extraordinary dividend Borregaard’s dividend policy To pay regular and progressive dividends reflecting Borregaard’s expected long-term earnings, free cash flows and expansion investments Dividend targeted between 40% and 60% of net profit, previously 30% to 50% Progressive dividends over time | Financials Dividend reflects improved profitability and cash flow over time Proposed dividend for 2025 close to five times higher than 2012 (IPO) Extraordinary dividend for 2016 and 2021 o Strong earnings, cash flow, leverage ratio and outlook CAGR 13% 52
Page 53
Value creation since IPO | Financials 0 5 000 10 000 15 000 20 000 25 000 mNOK Net debt Market capitalisation Accumulated dividend CAGR Share price, including reinvestment of dividend 18.6% Enterprise value = market cap + net debt 13.4% 53
Page 54
Improved performance during a period with uncertainty | Financials 6 881 7 132 7 617 7 713 7 751 0 1 000 2 000 3 000 4 000 5 000 6 000 7 000 8 000 9 000 2022 2023 2024 2025 LTM 2026³ mNOK Operating revenues 1 643 1 781 1 874 1 878 1 788 23,9 25,0 24,6 24,3 23,1 0 5 10 15 20 25 0 250 500 750 1 000 1 250 1 500 1 750 2 000 2022 2023 2024 2025 LTM 2026³ %mNOK EBITDA¹ & EBITDA %¹ 18,1 18,3 17,1 15,7 14,4 8,95 8,73 8,25 6,22 1,69 8,67 7,77 0,0 2,5 5,0 7,5 10,0 12,5 15,0 17,5 20,0 2022 2023 2024 2025 LTM 2026³ ROCE¹ and EPS² ROCE¹ (%) EPS² (NOK) EPS² (NOK) ex non-recurring CAGR 3.5% 54 1 Alternative performance measures – see Appendix 2 Earnings per share 3 Last twelve months as per June 2026
Page 55
Solid results in all business segments | Financials 427 534 434 495 492 19,0 21,9 16,6 18,4 17,8 0,0 10,0 20,0 30,0 40,0 50,0 0 100 200 300 400 500 600 2022 2023 2024 2025 LTM 2026² %mNOK BioMaterials EBITDA¹ & EBITDA %¹ 986 915 1 104 1 209 1 088 24,3 23,2 26,0 27,5 25,4 0,0 10,0 20,0 30,0 40,0 50,0 60,0 0 200 400 600 800 1 000 1 200 1 400 2022 2023 2024 2025 LTM 2026² %mNOK BioSolutions EBITDA¹ & EBITDA %¹ 230 332 336 174 208 36,4 42,2 42,1 26,0 28,1 0,0 10,0 20,0 30,0 40,0 50,0 0 100 200 300 400 500 600 2022 2023 2024 2025 LTM 2026² %mNOK Fine Chemicals EBITDA¹ & EBITDA %¹ 55 1 Alternative performance measures – see Appendix 2 Last twelve months as per June 2026
Page 56
Tariffs – possible first and second order effects on Borregaard 56 First order effects: Balanced direct effects expected, specialisation strategy and local US sites support* Second order effects: Uncertain, diversification and hedging mitigate indirect effects* 1 2 FX Borregaard’s revenues are primarily in USD or EUR, while costs are mainly in NOK. A currency hedging strategy is in place to delay the effects. Customers’ customers While most of Borregaard’s sales are to Europe, these customers are typically global. However, the number of alternative suppliers may be limited. GDP growth Due to the diversified end-market exposure, Borregaard possesses flexibility both geographically and across various markets. However, a slowdown in GDP growth could potentially impact the overall end markets. 25% 29% 45% Asia Americas Europe 1% Rest of World Sales distribution 2025 Americas Non-US Export Norway to US** Local US lignin 29% * As of October 2025, the tariff on US imports from Norway is set at 15%. Biovanillin has historically had a 5.5% tariff, which now is added to the 15%. ** Including speciality cellulose, biovanillin and other lignin specialities produced in Sarpsborg
Page 57
• Chemicals1 and other raw materials like lignin raw material • Internal production of caustic soda • Contract manufacturing of petrochemical-based vanillin • Change in inventories • Most products sold delivered customer • Logistical optimisation important, especially for Biopolymers Key cost items 2021-2025 | Financials Total costs in 2025 were 5.8 billion NOK 7.1% CAGR from 2021 to 2025 Main cost components’ share of total costs relatively stable over time 1 Main chemicals are caustic soda, salt, sulphur and epichlorohydrine57 • 75%-85% sourced from Norway, the rest mainly from Sweden • Annual price and volume contracts, mid-year adjustments occur • Includes inbound logistics, ≈25% of wood cost WoodEnergyDistribution costs Payroll expenses • Energy consumption: Heat energy 2/3, electricity 1/3 • Heat energy: Base load mainly covered by renewable energy sources, peak-load mainly covered by electricity, supported by LNG, and light oil • Electricity: Long-term contracts to 2029 & 2033 for substantial part of volume • Continuous productivity improvement, including de-manning and cost reduction activities Other expenses • Repair and maintenance, external services, rental/leasing and other operating expenses Other CoM 15% 15% 16% 17% 18% 25% 22% 24% 24% 25% 12% 13% 12% 11% 11% 28% 25% 24% 25% 23% 11% 16% 12% 9% 8% 9% 9% 12% 14% 15% 0% 20% 40% 60% 80% 100% 2021 2022 2023 2024 2025 % of total cost Other expenses Payroll expenses Distribution costs Other CoM Energy Wood
Page 58
Sensitivity on EBITDA¹ | Financials Global presence, diversified product portfolio and GDP-driven demand reduce market risk Significant FX exposure, softened by FX hedging² in the medium term No major single component in other cost of materials Distribution costs: Most products sold “delivered customer” Other expenses are repair and maintenance, external services, rental/leasing etc. 1 Alternative performance measure – see appendix 2 Hedging based on expected net cash flow (EBITDA) - Base hedge - 75%/50% on a rolling basis for 6/9 months for major currencies - Extended hedge - 75%/50% of the next 24/36 months if USD and EUR are above predefined levels58 0 5 10 15 20 25 30 35 40 45 Other expenses Payroll expenses Distribution costs Other cost of materials Energy cost Wood cost FX incl hedging FX ex hedging Sales price BioMaterials Sales price BioSolutions MNOK Sensitivity of 1% change (based on 2025)
Page 59
FX impact and policy | Financials Purpose is to delay effects of currency fluctuations and secure competitiveness Hedging based on expected net cash flow (EBITDA1) 2 Base hedge: 75%/50% on a rolling basis for 6/9 months for major currencies Extended hedge: 75%/50% of the next 24/36 months if USD and EUR are above defined levels o EUR; gradually increased at effective rates from 10.75 to 11.25 o USD; gradually increased at effective rates from 9.75 to 10.25 Contracts3 100% hedged Balance sheet exposure hedged 100% Net investments in subsidiaries hedged up to 90% of book value in major currencies 59 Currency hedging strategy FX exposure Borregaard’s revenues are primarily in USD or EUR, while costs are primarily in NOK Net FX exposure in 2025 USD: 63% (approximately 268 mUSD) EUR: 38% (approximately 146 mEUR) Other: -1% (GBP , BRL, SGD, SEK) -50 -268 -365 -174 45 -400 -300 -200 -100 0 100 2022 2023 2024 2025 LTM 2026⁵ mNOK Hedging gain/losses on EBITDA1 89,9 100,0 101,9 100,0 95,7 84 88 92 96 100 104 108 2022 2023 2024 2025 LTM 2026⁵ Borregaard currency basket4 1 Alternative performance measures - see Appendix 2 Net cash flow hedging mainly in the Norwegian company 3 Strict definitions for contracts applied for 100% hedging (mutually binding agreement in which price, currency, volume and time are defined) 4 Currency basket based on Borregaard’s net exposure in 2025 (=100) 5 Last twelve months as per June 2026
Page 60
Cash flow, NWC and investments | Financials 1 408 1 731 1 796 1 979 1 988 20,3 23,4 22,5 25,1 25,9 0,0 5,0 10,0 15,0 20,0 25,0 0 200 400 600 800 1 000 1 200 1 400 1 600 1 800 2 000 2022 2023 2024 2025 LTM 2026² %mNOK Average NWC NWC avg % of OpRev ex hedging 735 1 563 1 068 1 356 1 614 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2022 2023 2024 2025 LTM 2026² mNOK Cash flow from operating activities Cash flow from operating activities EBITDA¹ 359 550 598 576 513 105 288 263 349 385 464 838 861 925 898 0 100 200 300 400 500 600 700 800 900 1000 2022 2023 2024 2025 LTM 2026² mNOK Investments Replacement Expansion 60 1 Alternative performance measures – see Appendix 2 Last twelve months as per June 2026
Page 61
Solid financial position and strong cash flow | Financials Solid financial position Leverage ratio¹ 1.20 and equity ratio¹ 59% (June 2026) 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 1,12 1,01 1,20 1,11 1,20 54,8 53,7 53,1 60,8 59,0 0 10 20 30 40 50 60 70 0,00 0,50 1,00 1,50 2,00 2,50 3,00 2022 2023 2024 2025 LTM 2026³ % Leverage¹ & equity ratio¹ Leverage ratio¹ Equity ratio¹ 385 1 022 489 798 1 121 0 200 400 600 800 1 000 1 200 2022 2023 2024 2025 LTM 2026³ mNOK Free cash flow² 61 1 Alternative performance measures – see Appendix 2 Free cash flow defined as cash flow from operating and investing activities, excluding expansion investments 3 Last twelve months as per June 2026
Page 62
Investments to reduce CO₂ emissions in line with transition plan | Financials 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 Additional projects to reduce CO₂ emissions and COD¹ effluents Produce more biofuel from residuals and process improvements Wastewater incineration technology, innovative heat recovery 197 114 0 50 100 150 200 2020 2022 2024 2026 2028 2030 CO₂ scope 1 and 2 (tCO₂e) Base & target 2025 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 Increase electric boiler capacity for heat energy production 18,000 N/A 138 2027-2030 Target: 42% reduction from base year 2020 to 2030 1 COD: Chemical Oxygen Demand62
Page 63
Expansion projects 2024 to 2027 | Financials Debottlenecking Sarpsborg biorefinery Two-step capacity increase Expected total capacity increase 5–10% o Production output expected to increase gradually from Q2 2027 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 Focus on existing investments 63
Page 64
Updated investment forecast¹ 2026-2027 | Financials Replacement investments Target: Replacement investments at depreciation level Targeted CO2 and COD reductions and general cost increases explain above target level investments Supporting specialisation and value growth investments Expansion investments² Increased specialisation Debottlenecking at the Sarpsborg site o Production output is now expected to increase gradually from Q2-27 o Delay due to unforeseen challenges with a building’s layout o Total project estimate unchanged at ≈800 mNOK Additional investments in bio-based start-ups are not included 576 600 600 349 400 300 925 1 000 +/-150 900 +/-250 0 200 400 600 800 1000 1200 2025 2026 2027 Replacement Expansion² Depreciation ex IFRS16 1 Uncertainty is related to final investment decisions, timing of investment payments, execution time and risk and unexpected events 2 Alternative performance measures - see Appendix64
Page 65
Borregaard positioned for accelerated growth| Financials Illustrative figure 2024 2027 Beyond 2027 Growth driven by 1 2 3 4 Specialisation projects Debottlenecking Norway Delayed FX impact from hedging Sustainability and regulatory 5 6 7 Volume expansion biopolymers Specialisation projects Scaling up bio-based start-ups Details on growth drivers, applications and effects 1 2 3 4 5 6 7 Investments in agri, home care, batteries and Asia strategy in BioSolutions, Ice Bear in BioMaterials Debottlenecking Sarpsborg, 5–10% more volume, above IRR target of 15% Environmental investments mitigating cost risks, regulatory tailwinds in feed, strengthened sustainability profile Significant delayed FX impact from hedging over next three years assuming constant FX rates Further specialisation and value growth in BioSolutions, targeting regulated markets in BioMaterials Option to grow volumes at Florida plant +50,000 tonnes, alternatively build BALI plant Scaling up existing bio-based start-ups (Alginor, Kaffe Bueno etc), cellulose fibrils 65
Page 66
Capital structure – credit facilities and maturities | Financials Long-term credit facilities Revolving credit facilities (RCF) in July 2020, maturity 2027, margin linked to sustainability targets 40 mUSD term loan for LignoTech Florida (LTF), maturity 2029 500 mNOK 5-year green bonds, maturity 2028 (issued June 2023) 46 mUSD Nordic Investment Bank (NIB) loan, maturity 2032 Short-term credit facilities 250 mNOK overdraft facilities 15 mUSD overdraft facility in LignoTech Florida 300 mNOK commercial papers, maturity October 2026 66 1 Alternative performance measures - see Appendix 0 500 1 000 1 500 2 000 2 500 3 000 3 500 4 000 4 500 mNOK Leverage ratio and loan capacity NIB Bonds LTF Leases RCF NIBD 1.0 * EBITDA 2.25 * EBITDA
Page 67
Highly experienced and proven management team | Management 67 PER BJARNE LYNGSTAD CFO 27 years in current position 37 years with Borregaard TOM ERIK FOSS-JACOBSEN CEO 1st year in current position 26 years with Borregaard GISLE LØHRE JOHANSEN EVP Speciality Cellulose and Fine Chemicals 6 years in current position 34 years with Borregaard LIV LONGVA SVP Strategic Sourcing 5 years in current position 17 years with Borregaard KRISTIN MISUND SVP R&D and Business development 6 years in current position 32 years with Borregaard OLE GUNNAR JAKOBSEN EVP Manufacturing and Technology 1st year in current position 30 years with Borregaard DAG ARTHUR AASBØ SVP Public Affairs and Sustainability 17 years in current position 32 years with Borregaard LISBETH GRAMBO General Counsel 1st year in current position 1st year with Borregaard KNUT-HARALD BAKKE EVP BioSolutions 1st year in current position 6 years with Borregaard KARI STRANDE SVP Human Resources 1st year in current position 17 years with Borregaard
Page 68
Appendix – alternative performance measures In the discussion of the reported operating results, financial position and cash flows, Borregaard refers to certain measureswhich are not defined by generally accepted accounting principles (GAAP) such as IFRS. Borregaard management makes regular use of these 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, 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’ EBITDA. Net interest-bearing debt (NIBD): Interest-bearing liabilities minus interest-bearing assets. Return on capital employed (ROCE): Last twelve months’ 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 as the total of net working capital, intangible assets, property, plant and equipment, right-of-use assets and investment in joint venture minus net pension liabilities. 68