BRG Borregaard

Borregaard ASA: Coronavirus effects on business operations

Borregaard ASA: Coronavirus effects on business operations

Borregaard monitors the coronavirus situation closely and has established emergency measures throughout the organisation. In line with the Group’s values, safety and health are put first. Many measures have been implemented in Borregaard’s businesses around the world to limit the risk of infection.

Borregaard’s business operations have not been materially impacted by the coronavirus situation during the first quarter of 2020. Logistical and other practical challenges have been managed without significant adverse effects on deliveries and production.

However, the pandemic and the measures to combat it will most likely affect demand and call-offs from some customer groups, the functioning of transportation activities and the timely supply of certain input factors. The possibility of temporary shut-downs of production units as a result of the coronavirus situation cannot be ruled out. So far such incidents have been few and of limited duration.

The coronavirus pandemic represents a significant uncertainty for the remainder of the year. The outlook statement with respect to 2020, given in connection with the presentation of the results for the fourth quarter of 2019, will be reviewed and most probably revised in connection with the presentation of the first quarter results on 29 April.

Borregaard expects the first and most significant effects on demand to be seen in certain sectors of the lignin business. For the second quarter some orders from lignin customers, mainly in construction, have been cancelled or postponed. The other business areas have so far not experienced any material changes in orders from customers.

Comments to the pandemic and its consequences for Borregaard can also be found in the Annual Report for 2019, released on 26 March (see ) on pages 7, 14 and 15.

Sarpsborg, 1 April 2020

Contact:

Jørn Syvertsen, Director Investor Relations,

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

EN
01/04/2020

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