The Borregaard Way

Corporate Culture and Core Values

June 2014

Contents

• Main objective

• Borregaard in a nutshell

• Corporate culture

• Core values

• Profitable growth

• Leadership principles

Main objective

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Borregaard shall provide

sustainable solutions based on

renewable raw materials and

unique competence

Borregaard in a nutshell

• Biorefinery with high value creation – Unique business model– Full utilisation of raw materials and production of several co-products– Profitable and sustainable alternatives to petrochemicals

• 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– Market driven innovation that involves the entire organisation– Continuous productivity improvements through more efficient organisation, competence

development and smart use of technology

• Competence is our main competitive advantage– Our competence sets us apart from our competitors– Combination of competence in sales, marketing, research and production

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Our corporate culture

• Market-oriented – Good understanding of the business model and customer

needs throughout the organisation– Knowledge of the value-in-use of our products – A high share of our employees work in sales and marketing

and technical customer service

• Innovative– Innovation is market-driven and involves collaboration

between different parts of the organisation– We use a significant share of our revenues on innovation– We regularly measure our innovation rate

• Change-oriented– Continuous improvement through technology, skills

development and a flexible organisation– Ability to implement changes through good collaboration and

strong involvement from employees– We value commitment and initiative from all our employees– We regard the organisation’s diversity as a strength

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Our core values

• Sustainability – Green chemicals that can replace petrochemicals – Sustainability supported by life-cycle analysis – Focus on EHS across the organisation– Profitability is key to sustainability

• Long-term perspective– Consistent strategy over time– Long-term perspective on innovation, market development and investments– Competence development through training programmes, organisational

development and use of technology

• Integrity – High credibility through transparency, honesty and predictability– Act responsibly in relation to our stakeholders and exercise corporate

responsibility– Demonstrate respect for individuals and different cultures while maintaining

our own integrity and adhering to the company's code of conduct

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Profitable growth

• Good profitability is important for several reasons:

− Growth and development of the business

− Job security

− Attractive investment for the owners

− Exercising corporate responsibility

Our goal is to deliver good profitability and over time perform better than average compared with our peers in the industry.

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Leadership in Borregaard

• Leadership in Borregaard focuses on people– Developing people through competence, co-operation and challenges

• Our leadership behaviour is marked by involvement, recognition and feedback

• Leadership performance will be assessed on several criteria – Development of people and their competence– Improvement within their area of responsibility – Working environment, team spirit and cooperation – Financial results

• Leadership is about understanding how value is created at Borregaard

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