Borregaard

Annual Report • Jan 31, 2024

Income Statement Borregaard Group Q4 2023
	1.10-31.12		1.1-31.12
Amounts in NOK million	2023	2022	2023	2022
Operating revenues	1 605	1 770	7 132	6 881
Operating expenses	-1 278	-1 406	-5 351	-5 238
EBITDA	327	364	1 781	1 643
Depreciation property, plant and equipment	-134	-114	-485	-444
Amortisation intangible assets	-1	-2	-5	-5
Other income and expenses	0	-20	0	-8
Operating profit	192	228	1 291	1 186
Financial items, net	-57	-18	-167	-68
Profit before taxes	135	210	1 124	1 118
Income tax expence	-30	-47	-268	-267
Profit for the period	105	163	856	851
Profit attributable to non-controlling interests	-14	-21	-14	-41
Profit attributable to owners of the parent	119	184	870	892
Earnings per share (NOK)	1,20	1,85	8,73	8,95
EBITDA margin	20,4 %	20,6 %	25,0 %	23,9 %

Interim condensed statement of financial position Borregaard Group
	31.12.	30.9.	31.12.
Amounts in NOK million	2023	2023	2022
Assets:
Intangible assets	84	84	82
Property, plant and equipment	4 661	4 513	4 371
Right-of-use assets	527	457	345
Other assets	437	234	254
Investments in joint venture/associate company	289	257	142
Non-current assets	5 998	5 545	5 194
Inventories	1 447	1 393	1 299
Receivables	1 201	1 400	1 387
Cash and cash deposits	469	707	234
Current assets	3 117	3 500	2 920
Total assets	9 115	9 045	8 114
Equity and debt:
Group equity	4 855	4 520	4 394
Non-controlling interests	39	55	51
Equity	4 894	4 575	4 445
Provisions and other liabilities	401	362	295
Interest-bearing liabilities	2 016	2 008	1 370
Non-current liabilities	2 417	2 370	1 665
Interest-bearing liabilities	246	580	702
Other current liabilities	1 558	1 520	1 302
Current liabilities	1 804	2 100	2 004
Equity and liabilities	9 115	9 045	8 114
Equity ratio (%):	53,7 %	50,6 %	54,8 %

Interim condensed cash flow statement Borregaard Group Q4 2023
		1.10-31.12	1.1-31.12
Amounts in NOK million	2023	2022	2023	2022
Profit before taxes	135	210	1 124	1 118
Amortisation, depreciation and impairment charges	135	116	490	449
Change in net working capital, etc	292	55	205	-658
Dividend/share of profit from JV & associate company	0	3	9	34
Taxes paid	-47	-71	-265	-208
Cash flow from operating activities	515	313	1 563	735
Investments property, plant and equipment and intangible assets *	-293	-212	-667	-464
Investment in associate companies & bio-based start-ups	-47	0	-171	0
Other capital transactions	2	4	9	9
Cash flow from Investing activities	-338	-208	-829	-455
Dividends	0	0	-324	-499
Proceeds from exercise of options/shares to employees	4	7	49	41
Buy-back of treasury shares	-43	-45	-92	-68
Gain/(loss) on hedges for net investments in subsidiaries	38	77	-38	-79
Net paid to/from shareholders	-1	39	-405	-605
Proceeds from interest-bearing liabilities	0	0	800	837
Repayment of interest-bearing liabilities	-355	-43	-843	-512
Change in interest-bearing receivables/other liabilities	-18	-41	33	78
Change in net interest-bearing liablities	-373	-84	-10	403
Cash flow from financing activities	-374	-45	-415	-202
Change in cash and cash equivalents	-197	60	319	78
Cash and cash equivalents at beginning of period	645	76	111	5
Change in cash and cash equivalents	-197	60	319	78
Currency effects cash and cash equivalents	-19	-25	-1	28
Cash and cash equivalents at the close of the period	429	111	429	111
* Investment by category:
Replacement investments	250	172	550	359
Expansion investments including investment in associate companies and bio-based start-ups	90	40	288	105
Total investments including investment in associate companies and bio-based start-ups	340	212	838	464

Quarterly segment information Borregaard Group

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 2019 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Borregaard 5 063 5 328 1 419 1 511 1 429 1 446 5 805 1 615 1 744 1 752 1 770 6 881 1 850 1 963 1 714 1 605 7 132 BioSolutions 2 982 3 082 812 885 838 934 3 469 948 1 098 1 007 997 4 050 995 1 087 956 906 3 944 BioMaterials 1 712 1 732 523 482 468 405 1 878 532 540 558 620 2 250 684 661 568 526 2 439 Fine Chemicals 406 543 90 155 132 114 491 143 119 200 170 632 180 227 199 180 786 Eliminations - 37 - 29 - 6 - 11 - 9 - 7 - 33 -8 -13 -13 -17 -51 -9 -12 -9 -7 -37 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 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2019 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Borregaard 1 007 1 132 302 416 391 263 1 372 400 445 434 364 1 643 435 537 482 327 1 781 BioSolutions 647 632 205 272 251 214 942 261 305 261 159 986 224 284 235 172 915 BioMaterials 234 318 64 102 91 27 284 97 91 101 138 427 127 143 161 103 534 Fine Chemicals 126 182 33 42 49 22 146 42 49 72 67 230 84 110 86 52 332 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 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2019 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Borregaard - 418 - 443 - 106 - 101 - 103 - 106 - 416 -108 -110 -112 -114 -444 -114 -116 -121 -134 -485 BioSolutions - 183 - 206 - 48 - 45 - 47 - 49 - 189 -50 -53 -54 -55 -212 -56 -56 -60 -71 -243 BioMaterials - 203 - 203 - 50 - 47 - 47 - 49 - 193 -49 -48 -49 -49 -195 -49 -49 -51 -51 -200 Fine Chemicals - 32 - 34 - 8 - 9 - 9 - 8 - 34 -9 -9 -9 -10 -37 -9 -11 -10 -12 -42 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 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2019 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Borregaard - 4 - 5 - 1 - 1 - 1 - 1 - 4 -1 -1 -1 -2 -5 -1 -2 -1 -1 -5 BioSolutions - 4 - 5 - 1 - 1 - 1 - 1 - 4 -1 -1 -1 -2 -5 -1 -2 -1 -1 -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 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2019 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Borregaard -27 -116 0 0 0 0 0 0 12 0 -20 -8 0 0 0 0 0 BioSolutions -16 -97 0 0 0 0 0 0 12 0 -6 6 0 0 0 0 0 BioMaterials -11 -18 0 0 0 0 0 0 0 0 -12 -12 0 0 0 0 0 Fine Chemicals 0 - 1 0 0 0 0 0 0 0 0 -2 -2 0 0 0 0 0 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 1.1-31.3 1.4-30.6 1.7-30.9 1.10-31.12 1.1-31.12 Amounts in NOK million 2019 2020 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2023 2023 2023 2023 2023 Borregaard 558 568 195 314 287 156 952 291 346 321 228 1 186 320 419 360 192 1 291 BioSolutions 444 324 156 226 203 164 749 210 263 206 96 775 167 226 174 100 667	Operating revenues
BioMaterials 20 97 14 55 44 - 22 91 48 43 52 77 220 78 94 110 52 334
	Fine Chemicals	94	147	25	33	40	14	112	33	40	63	55	191	75	99	76	40	290

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	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million Borregaard - EBITDA hedging gains & losses	2019 -76	2020 -241	2021 -15	2021 -4	2021 -16	2021 6	2021 -29	2022 10	2022 -3	2022 -23	2022 -34	2022 -50	2023 -48	2023 -65	2023 -62	2023 -93	2023 -268
BioSolutions	-33	-103	-5	-1	-6	1	-11	3	-5	-19	-23	-44	-25	-29	-31	-44	-129
BioMaterials	-37	-116	-8	-3	-8	4	-15	5	1	-4	-9	-7	-19	-26	-22	-37	-104
Fine Chemicals	-6	-22	-2	0	-2	1	-3	2	1	0	-2	1	-4	-10	-9	-12	-35
Borregaard - USD EBITDA currency exposure (approx)	203	177					198					197					232
Borregaard - EUR EBITDA currency exposure (approx)	98	112					139					147					149
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	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023
Borregaard	4 951	5 227	1 394	1 491	1 406	1 424	5 715	1 591	1 720	1 723	1 742	6 776	1 825	1 937	1 688	1 574	7 024
BioSolutions	2 873	2 995	793	865	819	915	3 392	929	1 072	979	966	3 946	973	1 062	934	880	3 849
BioMaterials	1 679	1 695	513	472	457	398	1 840	521	530	546	608	2 205	674	649	557	515	2 395
Fine Chemicals	400	538	88	154	131	112	485	141	118	198	168	625	178	226	197	179	780
Eliminations	- 1	- 1	0	0	- 1	- 1	- 2	0	0	0	0	0	0	0	0	0	0
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	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023
Average gross sales price NOK per mtds	6 166	6 951	7 838	7 709	7 761	9 244	8 106	9 780	10 150	10 479	11 104	10 369	12 402	11 319	11 609	11 756	11 753
Volume (`000 mtds)	470	416	90	100	92	84	366	81	90	84	79	334	74	86	76	72	308
Specialities volume (`000 mtds)	86	88					89					84					73
Contruction volume (`000 mtds)	209	178					131					117					100
Industrial volume (`000 mtds)	175	150					146					133					135
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	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Average gross sales price NOK per mt	2019 10 665	2020 11 678	2021 10 641	2021 10 754	2021 10 972	2021 10 911	2021 10 807	2022 12 595	2022 13 656	2022 14 880	2022 16 179	2022 14 283	2023 16 449	2023 17 551	2023 15 786	2023 16 260	2023 16 527
Volume (`000 mt)	153,1	148,4	47,5	42,4	40,2	34,3	164,4	39,4	36,6	34,7	36,3	147,0	40,0	36,8	34,9	32,6	144,3
High specialised as % of total cellulose product sales volum	73 %	77 %					79 %					85 %					81 %