Borregaard

Earnings Release • Oct 21, 2021

Income Statement Borregaard Group Q3 2021

		1.7-30.9	1.1-30.9
Amounts in NOK million	2021	2020	2021	2020
Operating revenues	1 429	1 260	4 359	3 990
Operating expenses	-1 038	-994	-3 250	-3 121
EBITDA	391	266	1 109	869
Depreciation property, plant and equipment	-103	-112	-310	-333
Amortisation intangible assets	-1	-1	-3	-3
Other income and expenses	0	0	0	-96
Operating profit	287	153	796	437
Financial items, net	-18	-20	-55	-60
Profit before taxes	269	133	741	377
Income tax expence	-64	-34	-174	-109
Profit for the period	205	99	567	268
Profit attributable to non-controlling interests	-6	-13	-23	-47
Profit attributable to owners of the parent	211	112	590	315
Earnings per share (NOK)	2,12	1,12	5,93	3,15
EBITDA margin	27,4 %	21,1 %	25,4 %	21,8 %

Interim condensed statement of financial position Borregaard Group
	30.9.	30.6.	31.12.
Amounts in NOK million	2021	2021	2020
Assets:
Intangible assets	90	93	86
Property, plant and equipment	4 052	4 009	3 973
Right-of-use assets	358	369	381
Other assets	277	272	380
Investments in joint venture and associate company	147	39	38
Non-current assets	4 924	4 782	4 858
Inventories	799	769	887
Receivables	1 180	1 273	1 051
Cash and cash deposits	184	246	207
Current assets	2 163	2 288	2 145
Total assets	7 087	7 070	7 003
Equity and debt:
Group equity	4 023	3 875	3 668
Non-controlling interests	92	96	110
Equity	4 115	3 971	3 778
Provisions and other liabilities	305	321	291
Interest-bearing liabilities	1 351	1 346	1 381
Non-current liabilities	1 656	1 667	1 672
Interest-bearing liabilities	313	508	623
Other current liabilities	1 003	924	930
Current liabilities	1 316	1 432	1 553
Equity and liabilities	7 087	7 070	7 003
Equity ratio (%):	58,1 %	56,2 %	53,9 %

Interim condensed cash flow statement Borregaard Group Q3 2021
		1.7-30.9	1.1-30.9		1.1-31.12
Amounts in NOK million	2021	2020	2021	2020	2020
Profit before taxes	269	133	741	377	496
Amortisation, depreciation and impairment charges	104	113	313	336	449
Change in net working capital, etc	8	-57	82	-221	-21
Dividend (share of profit) from JV	0	0	0	63	51
Taxes paid	-3	-36	-61	-85	-89
Cash flow from operating activities	378	153	1 075	470	886
Investments property, plant and equipment and intangible assets *	-219	-99	-439	-312	-503
Other capital transactions	2	-3	5	2	14
Cash flow from Investing activities	-217	-102	-434	-310	-489
Dividends	0	0	-249	-229	-229
Proceeds from exercise of options/shares to employees	9	5	55	34	35
Buy-back of shares	-23	-11	-111	-61	-62
Gain/(loss) on hedges for net investments in subsidiaries	-6	-2	11	-49	10
Net paid to/from shareholders	-20	-8	-294	-305	-246
Proceeds from interest-bearing liabilities	0	400	300	1 350	1 550
Repayment of interest-bearing liabilities	-212	-516	-668	-1 446	-1 703
Change in interest-bearing receivables/other liabilities	1	4	-5	30	18
Change in net interest-bearing liablities	-211	-112	-373	-66	-135
Cash flow from financing activities	-231	-120	-667	-371	-381
Change in cash and cash equivalents	-70	-69	-26	-211	16
Cash and cash equivalents at beginning of period	143	-59	96	81	81
Change in cash and cash equivalents	-70	-69	-26	-211	16
Currency effects cash and cash equivalents	3	1	6	3	-1
Cash and cash equivalents at the end of the period	76	-127	76	-127	96
* Investment by category:
Replacement investments	56	52	208	191	344
Expansion investments	163	47	231	121	159

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	1.1-31.1	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	1.1-30.9
Amounts in NOK million	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021
Borregaard	4 618	4 785	1 250	1 340	1 239	1 234	5 063	1 372	1 358	1 260	1 338	5 328	1 419	1 511	1 429	4 359
BioSolutions	2 594	2 775	755	781	720	726	2 982	797	819	733	733	3 082	812	885	838	2 535
BioMaterials	1 672	1 661	394	472	430	416	1 712	454	417	403	458	1 732	523	482	468	1 473
Fine Chemicals	370	374	110	96	96	104	406	128	131	131	153	543	90	155	132	377
Eliminations	- 18	- 25	- 9	- 9	- 7	- 12	- 37	-7	-9	-7	-6	-29	-6	-11	-9	-26
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	1.1-31.1	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	1.1-30.9
Amounts in NOK million	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021
Borregaard	1 055	903	255	283	286	183	1 007	242	361	266	263	1 132	302	416	391	1 109
BioSolutions	545	499	168	192	156	131	647	170	193	132	137	632	205	272	251	728
BioMaterials	414	312	45	64	94	31	234	46	101	91	80	318	64	102	91	257
Fine Chemicals	96	92	42	27	36	21	126	26	67	43	46	182	33	42	49	124
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	1.1-31.1	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	1.1-30.9
Amounts in NOK million	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021
Borregaard	- 306	- 323	- 98	- 104	- 106	- 110	- 418	-109	-112	-112	-110	-443	-106	-101	-103	-310
BioSolutions	- 94	- 113	- 41	- 44	- 48	- 50	- 183	-51	-51	-53	-51	-206	-48	-45	-47	-140
BioMaterials	- 192	- 189	- 49	- 53	- 50	- 51	- 203	-50	-52	-51	-50	-203	-50	-47	-47	-144
Fine Chemicals	- 20	- 21	- 8	- 7	- 8	- 9	- 32	-8	-9	-8	-9	-34	-8	-9	-9	-26
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	1.1-31.1	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	1.1-30.9
Amounts in NOK million	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021
Borregaard	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-2	-5	-1	-1	-1	-3
BioSolutions	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-2	-5	-1	-1	-1	-3
BioMaterials	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
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	1.1-31.1	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	1.1-30.9
Amounts in NOK million	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021
Borregaard	-9	0	0	-16	0	-11	-27	0	-96	0	-20	-116	0	0	0	0
BioSolutions	-9	0	0	-16	0	0	-16	0	-90	0	-7	-97	0	0	0	0
BioMaterials	0	0	0	0	0	-11	-11	0	-6	0	-12	-18	0	0	0	0
Fine Chemicals	0	0	0	0	0	0	0	0	0	0	-1	-1	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	1.1-31.1	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	1.1-30.9
Amounts in NOK million	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021
Borregaard	736	576	156	162	179	61	558	132	152	153	131	568	195	314	287	796
BioSolutions	438	382	126	131	107	80	444	118	51	78	77	324	156	226	203	585
BioMaterials Fine Chemicals	222 76	123 71	- 4 34	11 20	44 28	- 31 12	20 94	-4 18	43 58	40 35	18 36	97 147	14 25	55 33	44 40	113 98

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 1.1-31.1 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 Amounts in NOK million 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 2021 2021 Borregaard - EBITDA hedging gains & losses -72 -11 -8 -13 -23 -32 -76 -62 -84 -51 -44 -241 -15 -4 -16 BioSolutions -22 3 -4 -6 -9 -14 -33 -26 -38 -21 -18 -103 -5 -1 -6 BioMaterials -36 -3 -3 -7 -11 -16 -37 -30 -39 -25 -22 -116 -8 -3 -8 Fine Chemicals -14 -11 -1 0 -3 -2 -6 -6 -7 -5 -4 -22 -2 0 -2 Borregaard - USD EBITDA currency exposure (approx) 207 194 203 177 Borregaard - EUR EBITDA currency exposure (approx) 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 1.1-31.1 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 Amounts in NOK million 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 2021 Borregaard 4 522 4 705 1 222 1 311 1 214 1 204 4 951 1 347 1 337 1 229 1 314 5 227 1 394 1 491 1 406 BioSolutions 2 524 2 708 728 753 697 695 2 873 775 800 706 714 2 995 793 865 819 BioMaterials 1 634 1 630 385 465 422 407 1 679 445 407 395 448 1 695 513 472 457 Fine Chemicals 365 369 109 94 95 102 400 127 130 128 153 538 88 154 131 Eliminations - 1 - 2 0 - 1 0 0 - 1 0 0 0 -1 -1 0 0 -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 1.1-31.1 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 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 2021 Average gross sales price NOK per mtds 5 618 5 654 6 385 5 999 5 865 6 455 6 166 6 885 7 431 6 701 6 756 6 951 7 838 7 709 7 761 Volume (000 mtds)<br>450<br>468<br>115<br>125<br>119<br>111<br>470<br>115<br>106<br>99<br>96<br>416<br>90<br>100<br>92<br>Specialities volume (000 mtds) 83 86 86 88 Contruction volume (000 mtds)<br>210<br>212<br>209<br>178<br>Industrial volume (000 mtds) 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 1.1-31.1 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 2017 2018 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2021 2021 2021 Average gross sales price NOK per mt 10 589 10 337 10 724 10 561 10 982 10 417 10 665 11 382 12 579 11 780 11 128 11 678 10 641 10 754 10 972 Volume (`000 mt) 150,7 150,1 34,5 42,4 37,6 38,6 153,1 40,0 33,9 34,2 40,3 148,4 47,5 42,4 40,2
											1.1-30.9
											-35
											-12
											-19
											-4
											1.1-30.9
											2021
											4 291
											2 477
											1 442
											373
											-1
											1.1-30.9
											2021
											7 767
											282
											1.1-30.9
											2021
											10 780
											130,1
	High specialised as % of total cellulose product sales volum	72 %	62 %			73 %			77 %