2

THE BORREGAARD GROUP

CONTENTS

The Borregaard Group ................................................................................. 4

Message from the CEO ............................................................................... 6

The Board of Directors ................................................................................ 8

Report of the Board of Directors ............................................................. 10

Corporate governance ............................................................................... 18

Sustainability and corporate responsibility ........................................... 29

The Group Executive Management ..................................................... 104

Borregaard Group consolidated financial statements ..................... 107

Notes to the consolidated financial statements ............................... 113

Borregaard ASA financial statements .................................................. 155

Notes to the financial statements ......................................................... 158

Statement from the Board of Directors .............................................. 162

Auditor´s report ........................................................................................ 163

Historical key figures .............................................................................. 168

Independent assurance report on Sustainability reporting ............. 169

Alternative performance measures ..................................................... 172

Group directory ........................................................................................ 177

THE BORREGAARD GROUP

Borregaard operates one of the world's most advanced biorefineries. The Group provides sustainable solutions based on renewable raw materials and unique competence.

BORREGAARD IN A NUTSHELL

  • • A biorefinery with high value-added

  • • Specialisation in global niches

  • • Strong innovation ability and continuous improvement

  • • Competence as the main competitive advantage

A BIOREFINERY WITH HIGH VALUE-ADDED

The Group's business model is closely linked to the integrated nature of its biorefinery concept which utilises the three key components of wood - fibres, lignins and sugars - to produce a diversified portfolio of products.

The biorefinery utilises 94 percent of the feedstock to make biochemicals, biomaterials and energy that can replace oil-based products.

In addition to its biorefinery in Sarpsborg, Borregaard has five production sites outside Norway dedicated to producing lignin-based products. In total, the company has manufacturing operations and sales offices in 13 countries in Europe, Asia and the Americas serving its global customer base. At the end of 2022, the Group had 1,107 full-time equivalent (FTE) employees.

Business areas

BioSolutions

BioMaterials

Fine Chemicals

  • • Market and technology leader in lignin-based biopolymers.

    • • Leading speciality cellulose supplier.

      • • Leading producer of fine chemical intermediates for contrast agents.

  • • Only producer of wood-based vanillin.

  • • Pioneer in cellulose fibrils.

  • • Significant producer of advanced bioethanol.

THE BORREGAARD GROUP

5

SUSTAINABILITY INTEGRATED IN STRATEGY

Borregaard provides sustainable solutions with a documented favourable environmental and climate impact which can improve the customers' climate footprint or substitute chemicals of concern. The Group has also committed to science-based targets to further reduce greenhouse gas emissions and strengthen its sustainability platform.

Borregaard's business model and products are well positioned to support the UN's Sustainability Development

Goals (SDGs). The company has prioritised six SDGs based on its ability to contribute to solving these global challenges

(see page 37).

SPECIALISATION IN GLOBAL NICHES

Borregaard is a supplier of specialised biochemicals and biomaterials to a global customer base. The Group's main products are lignin-based biopolymers and biovanillin, speciality cellulose, cellulose fibrils, fine chemical intermediates and advanced bioethanol.

COMPETENCE AS MAIN COMPETITIVE ADVANTAGE

Borregaard is a competence-driven company with production, research and development (R&D) and sales and marketing as its core competencies. To maintain its leading position, the Group has a strong focus on training programmes and co-operation between the various disciplines.

Borregaard has a leading research centre combining various chemistry disciplines, biotechnology and microbiology, developing new or improved products, applications and production technologies. The Group had 93 employees in R&D as of 31 December 2022.

BORREGAARD'S THREE BUSINESS SEGMENTS

BioSolutions develops, produces and sells biopolymers and biovanillin from lignin. Biopolymers are used in a wide range of end-market applications, such as agrochemicals, batteries, industrial binders and construction. Biovanillin is supplied to flavour and fragrance companies, as well as to the food and beverage industry.

The products are used in a variety of applications in sectors such as feed and agriculture, construction and building materials, food and pharma, personal care, batteries, biofuel and various other industries.

The Group's strong market positions have been developed through in-depth understanding of its markets, production of advanced and specialised products and local presence through a global sales and marketing organisation.

KEY FIGURES

16.1%

2021

18.1%

2022

OPERATING REVENUES

Electricity

2018

2019

2020

2021

2022

business cycle

/ 1 Alternative performance measures, see page 172 for definition.

ND

SALES REVENUES

BY GEOGRAPHICAL AREA 2022

BioMaterials develops, produces and sells speciality cellulose mainly for use as a raw material in the production of cellulose ethers, cellulose acetate and other speciality products. BioMaterials also includes cellulose fibrils for industrial applications.

Fine Chemicals consists of fine chemical intermediates for contrast agents and advanced bioethanol.

COD (mt/day - organic material)

Copper (kg/day)

CASH FCLAONSWHOxFLAONWD SO2 EMISSIONS FROM FORPBOEOMRAROTRPIENEGGRAAATCRINTDIGVGIATRCIOETSUIVPITIES

Minimum taMrgineitmouvmertarbguestinoevsesr caybculesiness cycle

Heat

EARNINEAGRSNSPIOENRGS HPAERESAHNADRE AND TOTALTDOITVAISDLAEDRNIPDVSIDBEONRDG SITE

2 EMISSIONS

SALESSRAELV BY GEOBGYRG

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Borregaard ASA published this content on 28 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2023 06:47:00 UTC.