Slide 1: Business model, businesses & strategy
February 2026 Business model, businesses & strategy
Slide 2: Important notice
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 n
Slide 3: Contents
Contents • 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 3
Slide 4: Borregaard investor message | Business model & strategy
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 BIOPOLYMERS integrated operations & BIOVANILLIN 30% LIGNI
Slide 5: Borregaard is a global leader in biochemicals
Borregaard is a global leader in biochemicals | Business model & strategy High value added through full raw material utilisation Sustainable and environmentally friendly substitutes for petrochemicals 5
Slide 6: One of the world’s most advanced biorefineries
One of the world’s most advanced biorefineries | Business model & strategy INTEGRATED PRODUCTION SYSTEM SERVING DIVERSE MARKETS END MARKETS 2025 Construction Chemical/ Construction 16% Others Chemicals/other 38% 28% Agriculture 25% Agriculture Food & Pharma 21% Integration models: Own integrated, Pa
Slide 7: Global niche player with a market driven organisation
Global niche player with a market driven organisation | Business model & strategy BioSolutions 56%1 BioMaterials 35%1 FineChemicals 9%1 Largest supplier, technology leader in lignin- Leading global speciality cellulose supplier Leading producer of fine chemical based biopolymers with global ma
Slide 8: The specialisation strategy
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
Slide 9: Key strategic considerations
Key strategic considerations | Business model & strategy 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 spec
Slide 10: Strategic priorities
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
Slide 11: Sustainability – integral part of market offering
Sustainability – integral part of market offering | Sustainability RAW MATERIALS PROCESSES PRODUCTS Natural, renewable, sustainable Efficient and sustainable production Sustainable raw materials and value chain biochemicals Sustainable and certified wood Reduced emissions improve LCA2 Products add s
Slide 12: Climate change and the environment – targets and ratings
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%
Slide 13: Transition plan supporting the specialisation strategy
Transition plan supporting the specialisation strategy | Sustainability 13
Slide 14: Market driven innovation
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:
Slide 15: Business driven innovation model
Business driven innovation model | Innovation Ideas from sales, technical application, R&D, production, external partners Idea database Innovation Management Teams (IMT) IMT Co-work with (when required): • Chaired by head of • Universities business unit • Research institutes • Cross functional team
Slide 16: Overview of innovation portfolio
Overview of innovation portfolio| Innovation Application-oriented innovation Process-oriented innovation Business development Crop protection, plant Process improvements Disruptive innovation nutrition, feed Capacity, quality, sustainability New processes and products Batteries, pigments, inks, Cell
Slide 17: Borregaard investing in bio-based start-ups
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 T
Slide 18: Investments in bio-based start-ups
Investments in bio-based start-ups | Bio-based investments About the company Ownership and size of investment Follow-up of investment Board and observer positions Harvesting and biorefining of macroalgae 41% ownership Nomination committee to ingredients for pharmaceutical and Total investment ne
Slide 19: Strategic fit of bio-based investments
Strategic fit of bio-based investments | Bio-based investments Harvested kelp Farmed kelp Biorefining Coffee waste Processing B2B sales Woody biomass Water soluble lignosulfonate Non-water soluble technical lignins Fibres, polysaccharides, sugars Lignin, polyphenols Lipids, resins, oils, proteins 19
Slide 20: BioSolutions in Borregaard
BioSolutions in Borregaard | BioSolutions Market position Key attractions Largest supplier of lignin-based biopolymers A sustainable and broad product portfolio Only supplier of wood-based vanillin Large and diverse customer base Unique technical and application expertise High barriers t
Slide 21: Biopolymers: Lignin – a sustainable and flexible raw material
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 Biochemicals Quality depends on the chemicals base Water sol
Slide 22: Lignin biopolymers: Properties, advantages and applications
Lignin biopolymers: Properties, advantages and applications | BioSolutions MULTI- ANTI- ANIMAL FUNCTIONAL OXIDANT TAILOR- FEED AGRICULTURE CORROSION MADE INHIBITING BINDING LCA/EPD CONSTRUCTION UV ABSORBING PRODUCT PRODUCT APPLICATION PROPERTIES FEATURES AREAS BIO-BASED CRYSTAL DISPERSING COMPATIBLE
Slide 23: Diversification: products to 2,800 customers
Diversification: 600 products to 2,800 customers | BioSolutions BioSolutions properties and applications Revenues by end-market and region Ceramics Revenue by end-market 2025 Sales distribution 2025 Binding agent Dust solutions RoW 2% Feed Construction Granulated limestone 15% Other Carbon
Slide 24: Global lignin supply
Global lignin supply | BioSolutions By Sales volume Others Borregaard Russia Lenzing Burgo Hood Caima Nippon Domsjö Sappi Global lignin supply 900 – 950,000 mtds 24 • Borregaard manufacturing facilities Others | Source: Borregaard estimates
Slide 25: Significant specialisation and value growth over time
Significant specialisation and value growth over time | BioSolutions Sales revenues (mNOK) 2 500 2 250 Strong development in sales to Specialities & 2 000 Industrial 1 750 Gross sales trebled from 2012 1 500 1 250 1 000 Significant portfolio optimisation 750 Increased specialisation 500 Reduce
Slide 26: Sustainability and regulatory offering new opportunities
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
Slide 27: Attractive growth opportunities in Asia
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 I
Slide 28: Key strategic priorities 2025-2027
Key strategic priorities 2025-2027 | BioSolutions Specialisation and value growth Growth Attractive growth in key Sustainability and regulatory Significant potential for drivers markets and applications offering new opportunities upgrade of product portfolio Accelerate in Asia Replace synthetic
Slide 29: Biopolymers in agriculture
Biopolymers in agriculture | BioSolutions Plant nutrition Crop protection Seed coating Feed Micronutrients Soil conditioners Granulated Pestizides Biological pest Adjuvants Encrusted and Animal feed /biostimulants limestone and control pelleted seeds fertilisers Ready-to-use Nutrient use Binde
Slide 30: Plant nutrition: Sustainable soil conditioners and biostimulants
Plant nutrition: Sustainable soil conditioners and biostimulants | BioSolutions 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 b
Slide 31: Crop protection: Opportunities within biological pest control
Crop protection: Opportunities within biological pest control | BioSolutions 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 compet
Slide 32: Lead batteries: Borregaard products as industry standard
Lead batteries: Borregaard products as industry standard | BioSolutions 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 En
Slide 33: Li-ion batteries: Opportunities within emerging technologies
Li-ion batteries: Opportunities within emerging technologies | BioSolutions 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 Ne
Slide 34: New green technology: Opportunities in high-end markets
New green technology: Opportunities in high-end markets | BioSolutions 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 com
Slide 35: New green technology: Entering the home care market
New green technology: Entering the home care market | BioSolutions Sustainable formulation 5–8% dosage in dishwasher tablet or powder Effect Less film on glass, plastic and ceramic Customer value Excellent replacement for polyacrylate in dishwasher tablets and laundry Effective and sustainable anti-
Slide 36: New green technology: Entering the coatings market
New green technology: Entering the coatings market | BioSolutions 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
Slide 37: Sustainability and regulatory opportunities in Animal feed
Sustainability and regulatory opportunities in Animal feed | BioSolutions 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 Regula
Slide 38: Animal feed: Regulatory driving change
Animal feed: Regulatory driving change | BioSolutions PELLETING AIDS BYPASS PROTEIN Benefits Benefits Better pellet consistency and durability Feed protein content is key in milk production Improved production rates Bypass technologies prevent loss of protein Decreased energy consumption Borregaard
Slide 39: Animal feed: New feed binder for the aqua culture industry
Animal feed: New feed binder for the aqua culture industry | BioSolutions 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 custom
Slide 40: Borregaard – the only producer of wood-based vanillin
Borregaard – the only producer of wood-based vanillin | BioSolutions Vanilla beans Plant-based vanillin Oil-based & ethyl vanillin Ferulic acid from Eugenol Lignin from Guaiacol from Guaiacol Guethol Raw material Beans bran/straw from clove wood creosote/tar (vanillin) (ethyl vanillin) Natural/flavo
Slide 41: Biovanillin – well positioned for growth
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 vanilli
Slide 42: Increasing specialisation
Global speciality cellulose market – Borregaard focus areas|BioMaterials Ether Speciality 1.5 regulated, Dissolving specialty casings, cellulose MMT pulp acetate LCD Increasing specialisation Acetate bio-based plastics Viscose (textile) 6 - 7 MMT Acetate tow, acetate yarn, ether industrial, NC Ether
Slide 43: Market overview – targeting highly specialised applications
Market overview – targeting highly specialised applications| BioMaterials Speciality cellulose demand ≈1.5 million mt1 2025 Target segments in highly specialised applications Casings/Tire Filtration Segments Applications CAGR Cord/Sponges 3% 2026-2028 7% Biodegradable plastics, Acetate 0–2% LCD, yar
Slide 44: Speciality cellulose suppliers
Speciality cellulose suppliers | BioMaterials 9 wood pulp mills and several cotton linter pulp 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
Slide 45: Cellulose ethers: Targeted growth in regulated applications
Cellulose ethers: Targeted growth in regulated applications | BioMaterials Cellulose ether market by application Pharma/personal care Other Food Borregaard’s ether strategy Focus on regulated applications like food, pharma and personal care Growth expected in the 2026–2028 period Shift from ind
Slide 46: Ice Bear technology: Driving high-value product portfolio
Ice Bear technology: Driving high-value product portfolio | BioMaterials 40 000 Market and ambitions for Ice Bear Ice Bear volume expectations 35 000 Significant market share growth within acetate +69% 30 000 (non-filter tow) 25 000 Rapid growth in high-purity casings after GP’s Foley closure 2
Slide 47: Ice Bear in bio-based plastics
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
Slide 48: Cellulose fibrils
Cellulose fibrils | BioMaterials 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 emission
Slide 49: Sales distribution 2025
Sales distribution 2025 | BioMaterials Borregaard is positioned in high-end segments in Europe and Asia, with strong and long-lasting customer relationships Volume split % Geographical split (sales revenues) Americas 100% 9% 13% 90% 80% Asia Europe 33% 58% 70% 60% 50% 87% Customer base and concentra
Slide 50: Fine Chemicals in Borregaard
Fine Chemicals in Borregaard | Fine Chemicals Fine chemical intermediates Bioethanol Leading producer of intermediates for contrast agents Leading producer of advanced bioethanol (2G) Production of C3 aminodiols and intermediates for Favourable climate footprint pharmaceutical products in Sa
Slide 51: Financial objectives and dividend policy
Financial objectives and dividend policy | Financials 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 correspond
Slide 52: Progressive dividends over time
Progressive dividends over time | Financials NOK per share Ordinary dividend 5,00 CAGR Extraordinary dividend 13% 4,00 2,25 3,00 1,75 4,75 2,00 4,25 3,75 3,25 2,50 2,75 1,00 2,00 2,25 2,30 1,50 1,75 1,00 1,10 1,25 0,00 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Borregaard’
Slide 53: Value creation since IPO
Value creation since IPO | Financials mNOK 25 000 20 000 15 000 CAGR Share price, including reinvestment of 21.8% 10 000 dividend Enterprise value = 5 000 16.2% market cap + net debt 0 Net debt Market capitalisation Accumulated dividend 53
Slide 54: Improved performance during a period with uncertainty
Improved performance during a period with uncertainty | Financials mNOK Operating revenues mNOK EBITDA¹ & EBITDA %¹ ROCE¹ and EPS² % 9 000 25,0 24,6 CAGR 23,9 24,3 23,6 25 20,0 7.4% 2 000 18,1 18,3 8 000 7 617 7 713 1 874 1 878 1 781 17,1 7 132 17,5 16,1 6 881 1 750 1 643 15,7 7 000 20 5 805 15,0 6
Slide 55: Solid results in all business segments
Solid results in all business segments | Financials mNOK BioSolutions % mNOK BioMaterials % mNOK Fine Chemicals % 1 400 EBITDA¹ & EBITDA %¹ 60,0 600 EBITDA¹ & EBITDA %¹ 50,0 600 EBITDA¹ & EBITDA %¹ 50,0 534 1 209 42,2 42,1 1 200 495 1 104 50,0 500 500 40,0 36,4 40,0 986 427 434 1 000 942 915 40,0 40
Slide 56: Tariffs – possible first and second order effects on Borregaard
Tariffs – possible first and second order effects on Borregaard 1 First order effects: Balanced direct effects expected, 2 Second order effects: Uncertain, diversification specialisation strategy and local US sites support* and hedging mitigate indirect effects* Rest of World FX 1% Asia Borregaard’s
Slide 57: Key cost items 2021-2025
Key cost items 2021-2025 | Financials % of total cost • 75%-85% sourced from Norway, the rest mainly from Sweden 100% Wood 9% 9% 12% 14% 15% • Annual price and volume contracts, mid-year adjustments occur 11% • Includes inbound logistics, ≈25% of wood cost 80% 16% 12% 9% 8% • Energy consumption: Hea
Slide 58: Sensitivity on EBITDA
Sensitivity on EBITDA¹ | Financials Sensitivity of 1% change Global presence, diversified product portfolio and (based on 2025) Sales price BioSolutions GDP-driven demand reduce market risk Sales price BioMaterials Significant FX exposure, softened by FX hedging² in the medium term FX ex hedging
Slide 59: FX impact and policy
FX impact and policy | Financials mNOK Hedging gain/losses on EBITDA1 Currency hedging strategy 0 Purpose is to delay effects of currency fluctuations and secure competitiveness -29 -50 -100 Hedging based on expected net cash flow (EBITDA1) 2 Base hedge: 75%/50% on a rolling basis for 6/9 mont
Slide 60: Cash flow, NWC and investments
Cash flow, NWC and investments | Financials mNOK Cash flow from operating mNOK Average NWC % mNOK Investments activities 25,1 2000 1000 925 23,4 25,0 1800 2 000 22,5 900 861 838 1 563 1 800 20,3 1600 800 1 431 18,6 20,0 701 349 1 356 1 600 263 1400 700 288 1 400 1200 1 068 600 1 200 15,0 303 1000 50
Slide 61: Solid financial position and strong cash flow
Solid financial position and strong cash flow | Financials Leverage¹ & equity ratio¹ mNOK Free cash flow² Solid financial position % 1 200 Leverage ratio¹ 1.11 and equity ratio¹ 61% 3,00 70 1 042 60,8 1 022 (December 2025) 60,1 1 000 2,50 54,8 53,7 53,1 60 o Maintain key financial ratios correspon
Slide 62: Investments to reduce CO₂ emissions in line with transition plan
Investments to reduce CO₂ emissions in line with transition plan | Financials Completed and on-going investment projects CO₂ scope 1 and 2 (tCO₂e) Investments forecast to give higher than expected reduction in CO₂ emissions and energy savings 197 So far, investment spending below initial transit
Slide 63: Expansion projects 2024 to 2027
Expansion projects 2024 to 2027 | Financials Debottlenecking Sarpsborg biorefinery Several smaller and medium sized expansion investments Two-step capacity increase Further specialisation of lignin-based biopolymers, including upgrade further specialisation of Wisconsin facility Expected total
Slide 64: Updated investment forecast 2026-2027
Updated investment forecast¹ 2026-2027 | Financials Replacement investments 1200 1 000 Target: Replacement investments at depreciation level +/-150 900 Targeted CO2 and COD reductions and general cost increases 1000 925 +/-250 explain above target level investments Supporting specialisation an
Slide 65: Borregaard positioned for accelerated growth
Borregaard positioned for accelerated growth | Financials Growth driven by Details on growth drivers, applications and effects 1 Specialisation projects 1 Investments in agri, home care, batteries and Asia strategy in BioSolutions, Ice Bear in BioMaterials 2 Debottlenecking Norway 2 Debottlenecking
Slide 66: Capital structure – credit facilities and maturities
Capital structure – credit facilities and maturities | Financials Long-term credit facilities Leverage ratio and loan capacity mNOK Revolving credit facilities (RCF) in July 2020, 4 500 maturity 2027, margin linked to sustainability targets 4 000 2.25 * EBITDA 60 mUSD term loan for LignoTech Flo
Slide 67: Highly experienced and proven management team
Highly experienced and proven management team | Management TOM ERIK FOSS-JACOBSEN PER BJARNE LYNGSTAD KNUT-HARALD BAKKE GISLE LØHRE JOHANSEN OLE GUNNAR JAKOBSEN CEO CFO EVP BioSolutions EVP Speciality Cellulose EVP Manufacturing and Technology 1st year in current position 27 years in current positio
Slide 68: Appendix – alternative performance measures
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