Borregaard

Annual / Quarterly Financial Statement • Feb 3, 2021

Income Statement Borregaard Group Q4 2020
	1.10-31.12		1.1-31.12
Amounts in NOK million	2020	2019	2020	2019
Operating revenues	1 338	1 234	5 328	5 063
Operating expenses	-1 075	-1 051	-4 196	-4 056
EBITDA	263	183	1 132	1 007
Depreciation property, plant and equipment	-110	-110	-443	-418
Amortisation intangible assets	-2	-1	-5	-4
Other income and expenses	-20	-11	-116	-27
Operating profit	131	61	568	558
Financial items, net	-12	-31	-72	-91
Profit before taxes	119	30	496	467
Income tax expence	-8	-12	-117	-116
Profit for the period	111	18	379	351
Profit attributable to non-controlling interests	-10	-20	-57	-66
Profit attributable to owners of the parent	121	38	436	417
Earnings per share (NOK)	1,21	0,38	4,36	4,17
EBITDA adj. margin	19,7 %	14,8 %	21,2 %	19,9 %

Interim condensed statement of financial position Borregaard Group
	31.12.	30.9.	31.12.
Amounts in NOK million	2020	2020	2019
Assets:
Intangible assets	86	90	93
Property, plant and equipment	3 973	3 962	3 852
Right-of-use assets	381	374	380
Other assets	380	249	251
Investments in joint venture	38	26	99
Non-current assets	4 858	4 701	4 675
Inventories	887	1 001	931
Receivables	1 051	1 055	991
Cash and cash deposits	207	50	147
Current assets	2 145	2 106	2 069
Total assets	7 003	6 807	6 744
Equity and debt:
Group equity	3 668	3 112	3 306
Non-controlling interests	110	124	158
Equity	3 778	3 236	3 464
Provisions and other liabilities	291	373	294
Interest-bearing liabilities	1 381	1 480	1 419
Non-current liabilities	1 672	1 853	1 713
Interest-bearing liabilities	623	687	608
Other current liabilities	930	1 031	959
Current liabilities	1 553	1 718	1 567
Equity and liabilities	7 003	6 807	6 744
Equity ratio (%):	53,9 %	47,5 %	51,4 %

Interim condensed cash flow statement Borregaard Group Q4 2020
	1.10-31.12		1.1-31.12
Amounts in NOK million	2020	2019	2020	2019
Profit before taxes	119	30	496	467
Amortisation, depreciation and impairment charges	113	121	449	432
Change in net working capital, etc	200	171	-21	-85
Dividend (share of profit) from JV	-12	2	51	5
Taxes paid	-4	-36	-89	-122
Cash flow from operating activities	416	288	886	697
Investments property, plant and equipment and intangible assets *	-191	-213	-503	-583
Other capital transactions	12	8	14	29
Cash flow from Investing activities	-179	-205	-489	-554
Dividends	0	0	-229	-224
Proceeds from exercise of options/shares to employees	1	1	35	35
Buy-back of shares	-1	-4	-62	-60
Gain/(loss) on hedges for net investments in subsidiaries	59	5	10	-26
Net paid to/from shareholders	59	2	-246	-275
Proceeds from interest-bearing liabilities	200	402	1 550	2 100
Repayment of interest-bearing liabilities	-257	-493	-1 703	-1 971
Change in interest-bearing receivables/other liabilities	-12	-1	18	-3
Change in net interest-bearing liablities	-69	-92	-135	126
Cash flow from financing activities	-10	-90	-381	-149
Change in cash and cash equivalents	227	-7	16	-6
Cash and cash equivalents at beginning of period	-127	92	81	86
Change in cash and cash equivalents	227	-7	16	-6
Currency effects cash and cash equivalents	-4	-4	-1	1
Cash and cash equivalents at the end of the period	96	81	96	81
* Investment by category:
Replacement investments	153	182	344	370
Expansion investments	38	31	159	213

Quarterly segment information Borregaard Group

Operating revenues
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	4 492	4 618	1 217	1 199	1 150	1 219	4 785	1 250	1 340	1 239	1 234	5 063	1 372	1 358	1 260	1 338	5 328
BioSolutions	2 563	2 594	687	693	690	705	2 775	755	781	720	726	2 982	797	819	733	733	3 082
BioMaterials	1 575	1 672	432	426	378	425	1 661	394	472	430	416	1 712	454	417	403	458	1 732
Fine Chemicals	368	370	103	86	89	96	374	110	96	96	104	406	128	131	131	153	543
Eliminations	- 14	- 18	- 5	- 6	- 7	- 7	- 25	-9	-9	-7	-12	-37	-7	-9	-7	-6	-29
EBITDA
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	1 021	1 055	252	239	229	183	903	255	283	286	183	1 007	242	361	266	263	1 132
BioSolutions	605	545	149	139	112	99	499	168	192	156	131	647	170	193	132	137	632
BioMaterials	321	414	74	79	95	64	312	45	64	94	31	234	46	101	91	80	318
Fine Chemicals	95	96	29	21	22	20	92	42	27	36	21	126	26	67	43	46	182
Depreciations and write downs
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	- 274	- 306	- 75	- 75	- 84	- 89	- 323	-98	-104	-106	-110	-418	-109	-112	-112	-110	-443
BioSolutions	- 78	- 94	- 24	- 23	- 32	- 34	- 113	-41	-44	-48	-50	-183	-51	-51	-53	-51	-206
BioMaterials	- 177	- 192	- 46	- 47	- 47	- 49	- 189	-49	-53	-50	-51	-203	-50	-52	-51	-50	-203
Fine Chemicals	- 19	- 20	- 5	- 5	- 5	- 6	- 21	-8	-7	-8	-9	-32	-8	-9	-8	-9	-34
Amortisation
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1	-1	-1	-2	-5
BioSolutions	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1	-1	-1	-2	-5
BioMaterials	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Fine Chemicals	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Other income and expenses
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	13	-9	0	0	0	0	0	0	-16	0	-11	-27	0	-96	0	-20	-116
BioSolutions	-24	-9	0	0	0	0	0	0	-16	0	0	-16	0	-90	0	-7	-97
BioMaterials	37	0	0	0	0	0	0	0	0	0	-11	-11	0	-6	0	-12	-18
Fine Chemicals	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	-1	-1
Operating profit (EBIT)
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	756	736	176	163	144	93	576	156	162	179	61	558	132	152	153	131	568
BioSolutions	499	438	124	115	79	64	382	126	131	107	80	444	118	51	78	77	324
BioMaterials Fine Chemicals	181 76	222 76	28 24	32 16	48 17	15 14	123 71	-4 34	11 20	44 28	-31 12	20 94	-4 18	43 58	40 35	18 36	97 147

Quarterly segment information Borregaard Group
Hedging effects & currency exposure
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard - EBITDA hedging gains & losses	-115	-72	3	-6	-7	-1	-11	-8	-13	-23	-32	-76	-62	-84	-51	-44	-241
BioSolutions	-41	-22	3	1	0	-1	3	-4	-6	-9	-14	-33	-26	-38	-21	-18	-103
BioMaterials	-59	-36	2	-2	-2	-1	-3	-3	-7	-11	-16	-37	-30	-39	-25	-22	-116
Fine Chemicals	-15	-14	-2	-5	-5	1	-11	-1	0	-3	-2	-6	-6	-7	-5	-4	-22
Borregaard - USD EBITDA currency exposure (approx)	209	207					194					203					177
Borregaard - EUR EBITDA currency exposure (approx)	92	84					84					98					112
Sales revenues
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Borregaard	4 391	4 522	1 195	1 179	1 131	1 200	4 705	1 222	1 311	1 214	1 204	4 951	1 347	1 337	1 229	1 314	5 227
BioSolutions	2 485	2 524	670	677	674	687	2 708	728	753	697	695	2 873	775	800	706	714	2 995
BioMaterials	1 543	1 634	424	417	371	418	1 630	385	465	422	407	1 679	445	407	395	448	1 695
Fine Chemicals	363	365	102	85	87	95	369	109	94	95	102	400	127	130	128	153	538
Eliminations	0	- 1	- 1	0	- 1	0	- 2	0	-1	0	0	-1	0	0	0	-1	-1
BioSolutions
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Average gross sales price NOK per mtds	5 684	5 618	5 966	5 455	5 455	5 783	5 654	6 385	5 999	5 865	6 455	6 166	6 885	7 431	6 701	6 756	6 951
Volume (`000 mtds)	444	450	107	122	122	117	468	115	125	119	111	470	115	106	99	96	416
Specialities volume (`000 mtds)	80	83					86					86					88
Contruction volume (`000 mtds)	214	210					212					209					178
Industrial volume (`000 mtds)	150	157					170					175					150
BioMaterials
	1.1-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020
Average gross sales price NOK per mt	9 992	10 589	10 129	10 202	10 532	10 528	10 337	10 724	10 561	10 982	10 417	10 665	11 382	12 579	11 780	11 128	11 678
Volume (`000 mt)	152,3	150,7	40,0	39,1	33,3	37,7	150,1	34,5	42,4	37,6	38,6	153,1	40,0	33,9	34,2	40,3	148,4
High specialised as % of total cellulose product sales volum	64 %	72 %					62 %					73 %					77 %