Borregaard

Annual Report • May 3, 2022

Income Statement Borregaard Group Q1 2022
		1.1-31.3	1.1-31.12
Amounts in NOK million	2022	2021	2021
Operating revenues	1 615	1 419	5 805
Operating expenses	-1 215	-1 117	-4 433
EBITDA	400	302	1 372
Depreciation property, plant and equipment	-108	-106	-416
Amortisation intangible assets	-1	-1	-4
Other income and expenses	0	0	0
Operating profit	291	195	952
Financial items, net	-14	-19	-79
Profit before taxes	277	176	873
Income tax expence	-68	-43	-213
Profit for the period	209	133	660
Profit attributable to non-controlling interests	-8	-13	-32
Profit attributable to owners of the parent	217	146	692
Earnings per share (NOK)	2,18	1,47	6,95
EBITDA margin	24,8 %	21,3 %	23,6 %

Interim condensed statement of financial position Borregaard Group
	31.3.	31.12.
Amounts in NOK million	2022	2021
Assets:
Intangible assets	86	89
Property, plant and equipment	4 180	4 191
Right-of-use assets	351	351
Other assets	393	339
Investments in joint venture/associate company	174	173
Non-current assets	5 184	5 143
Inventories	878	792
Receivables	1 416	1 107
Cash and cash deposits	103	124
Current assets	2 397	2 023
Total assets	7 581	7 166
Equity and debt:
Group equity	4 602	4 222
Non-controlling interests	75	84
Equity	4 677	4 306
Provisions and other liabilities	274	257
Interest-bearing liabilities	1 418	1 320
Non-current liabilities	1 692	1 577
Interest-bearing liabilities	223	224
Other current liabilities	989	1 059
Current liabilities	1 212	1 283
Equity and liabilities	7 581	7 166
Equity ratio (%):	61,7 %	60,1 %

Interim condensed cash flow statement Borregaard Group Q1 2022
		1.1-31.3	1.1-31.12
Amounts in NOK million	2022	2021
Profit before taxes	277	176	873
Amortisation, depreciation and impairment charges	109	107	420
Change in net working capital, etc	-381	5	256
Dividend/share of profit from JV & associate company	0	0	6
Taxes paid	-77	-49	-124
Cash flow from operating activities	-72	239	1 431
Investments property, plant and equipment and intangible assets *	-87	-95	-556
Investment in associate company	0	0	-145
Other capital transactions	2	4	9
Cash flow from Investing activities	-85	-91	-692
Dividends	0	0	-249
Proceeds from exercise of options/shares to employees	27	29	59
Buy-back of shares	-4	-56	-118
Gain/(loss) on hedges for net investments in subsidiaries	31	9	-14
Net paid to/from shareholders	54	-18	-322
Proceeds from interest-bearing liabilities	100	100	300
Repayment of interest-bearing liabilities	-14	-217	-814
Change in interest-bearing receivables/other liabilities	-2	-8	-1
Change in net interest-bearing liablities	84	-125	-515
Cash flow from financing activities	138	-143	-837
Change in cash and cash equivalents	-19	5	-98
Cash and cash equivalents at beginning of period	5	96	96
Change in cash and cash equivalents	-19	5	-98
Currency effects cash and cash equivalents	-2	-1	7
Cash and cash equivalents at the end of the period	-16	100	5
* Investment by category:
Replacement investments	71	59	398
Expansion investments	16	36	303

Operating revenues 1.1-31.12 1.1-31.12 1.1-31.1 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2018 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 Borregaard 4 785 5 063 1 372 1 358 1 260 1 338 5 328 1 419 1 511 1 429 1 446 5 805 BioSolutions 2 775 2 982 797 819 733 733 3 082 812 885 838 934 3 469 BioMaterials 1 661 1 712 454 417 403 458 1 732 523 482 468 405 1 878 Fine Chemicals 374 406 128 131 131 153 543 90 155 132 114 491 Eliminations - 25 - 37 - 7 - 9 - 7 - 6 - 29 -6 -11 -9 -7 -33 EBITDA 1.1-31.12 1.1-31.12 1.1-31.1 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2018 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 Borregaard 903 1 007 242 361 266 263 1 132 302 416 391 263 1 372 BioSolutions 499 647 170 193 132 137 632 205 272 251 214 942 BioMaterials 312 234 46 101 91 80 318 64 102 91 27 284 Fine Chemicals 92 126 26 67 43 46 182 33 42 49 22 146 Depreciations and write downs 1.1-31.12 1.1-31.12 1.1-31.1 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2018 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 Borregaard - 323 - 418 - 109 - 112 - 112 - 110 - 443 -106 -101 -103 -106 -416 BioSolutions - 113 - 183 - 51 - 51 - 53 - 51 - 206 -48 -45 -47 -49 -189 BioMaterials - 189 - 203 - 50 - 52 - 51 - 50 - 203 -50 -47 -47 -49 -193 Fine Chemicals - 21 - 32 - 8 - 9 - 8 - 9 - 34 -8 -9 -9 -8 -34 Amortisation 1.1-31.12 1.1-31.12 1.1-31.1 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2018 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 Borregaard - 4 - 4 - 1 - 1 - 1 - 2 - 5 -1 -1 -1 -1 -4 BioSolutions - 4 - 4 - 1 - 1 - 1 - 2 - 5 -1 -1 -1 -1 -4 BioMaterials 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 Other income and expenses 1.1-31.12 1.1-31.12 1.1-31.1 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2018 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 Borregaard 0 -27 0 -96 0 -20 -116 0 0 0 0 0 BioSolutions 0 -16 0 -90 0 -7 -97 0 0 0 0 0 BioMaterials 0 -11 0 -6 0 -12 -18 0 0 0 0 0 Fine Chemicals 0 0 0 0 0 - 1 - 1 0 0 0 0 0 Operating profit (EBIT) 1.1-31.12 1.1-31.12 1.1-31.1 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2018 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 Borregaard 576 558 132 152 153 131 568 195 314 287 156 952 BioSolutions 382 444 118 51 78 77 324 156 226 203 164 749 BioMaterials 123 20 - 4 43 40 18 97 14 55 44 -22 91 Fine Chemicals 71 94 18 58 35 36 147 25 33 40 14 112	Quarterly segment information Borregaard Group
								1.1-31.3
								2022
								1 615
								948
								532
								143 -8
								1.1-31.3
								2022
								400
								261
								97
								42
								1.1-31.3
								2022
								-108
								-50
								-49
								-9
								1.1-31.3
								2022
								-1
								-1
								0
								0
								1.1-31.3
								2022
								0
								0
								0
								0
								1.1-31.3
								2022
								291
								210
								48
								33

Quarterly segment information Borregaard Group
Hedging effects & currency exposure
	1.1-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022
Borregaard - EBITDA hedging gains & losses	-11	-76	-62	-84	-51	-44	-241	-15	-4	-16	6	-29	10
BioSolutions	3	-33	-26	-38	-21	-18	-103	-5	-1	-6	1	-11	3
BioMaterials	-3	-37	-30	-39	-25	-22	-116	-8	-3	-8	4	-15	5
Fine Chemicals	-11	-6	-6	-7	-5	-4	-22	-2	0	-2	1	-3	2
Borregaard - USD EBITDA currency exposure (approx)	194	203					177					198
Borregaard - EUR EBITDA currency exposure (approx)	84	98					112					139
Sales revenues
	1.1-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022
Borregaard	4 705	4 951	1 347	1 337	1 229	1 314	5 227	1 394	1 491	1 406	1 424	5 715	1 591
BioSolutions	2 708	2 873	775	800	706	714	2 995	793	865	819	915	3 392	929
BioMaterials	1 630	1 679	445	407	395	448	1 695	513	472	457	398	1 840	522
Fine Chemicals	369	400	127	130	128	153	538	88	154	131	112	485	141
Eliminations	- 2	- 1	0	0	0	- 1	- 1	0	0	-1	-1	-2	-1
BioSolutions
	1.1-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3
	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022
Average gross sales price NOK per mtds	5 654	6 166	6 885	7 431	6 701	6 756	6 951	7 838	7 709	7 761	9 244	8 106	9 780
Volume (`000 mtds)	468	470	115	106	99	96	416	90	100	92	84	366	81
Specialities volume (`000 mtds)	86	86					88					89
Contruction volume (`000 mtds)	212	209					178					131
Industrial volume (`000 mtds)	170	175					150					146
BioMaterials
	1.1-31.12	1.1-31.12	1.1-31.1	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3
	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022
Average gross sales price NOK per mt	10 337	10 665	11 382	12 579	11 780	11 128	11 678	10 641	10 754	10 972	10 911	10 807	12 595 39,4
Volume (`000 mt)	150,1	153,1	40,0	33,9	34,2	40,3	148,4	47,5	42,4	40,2	34,3	164,4
High specialised as % of total cellulose product sales volum	62 %	73 %					77 %					79 %