Borregaard

Earnings Release • Jul 18, 2023

Income Statement Borregaard Group Q2 2023
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2023	2022	2023	2022	2022
Operating revenues	1 963	1 744	3 813	3 359	6 881
Operating expenses	-1 426	-1 299	-2 841	-2 514	-5 238
EBITDA	537	445	972	845	1 643
Depreciation property, plant and equipment	-116	-110	-230	-218	-444
Amortisation intangible assets	-2	-1	-3	-2	-5
Other income and expenses	0	12	0	12	-8
Operating profit	419	346	739	637	1 186
Financial items, net	-40	-24	-68	-38	-68
Profit before taxes	379	322	671	599	1 118
Income tax expence	-91	-78	-162	-146	-267
Profit for the period	288	244	509	453	851
Profit attributable to non-controlling interests	5	-8	-5	-16	-41
Profit attributable to owners of the parent	283	252	514	469	892
Earnings per share (NOK)	2,84	2,53	5,16	4,71	8,95
EBITDA margin	27,4 %	25,5 %	25,5 %	25,2 %	23,9 %

Interim condensed statement of financial position Borregaard Group
	30.6.	31.3.	31.12.
Amounts in NOK million	2023	2023	2022
Assets:
Intangible assets	80	82	82
Property, plant and equipment	4 502	4 436	4 371
Right-of-use assets	403	350	345
Other assets	226	217	254
Investments in joint venture/associate company	258	136	142
Non-current assets	5 469	5 221	5 194
Inventories	1 318	1 373	1 299
Receivables	1 576	1 560	1 387
Cash and cash deposits	365	217	234
Current assets	3 259	3 150	2 920
Total assets	8 728	8 371	8 114
Equity and debt:
Group equity	4 083	4 260	4 394
Non-controlling interests	51	44	51
Equity	4 134	4 304	4 445
Provisions and other liabilities	479	435	295
Interest-bearing liabilities	2 038	1 490	1 370
Non-current liabilities	2 517	1 925	1 665
Interest-bearing liabilities	547	657	702
Other current liabilities	1 530	1 485	1 302
Current liabilities	2 077	2 142	2 004
Equity and liabilities	8 728	8 371	8 114
Equity ratio (%):	47,4 %	51,4 %	54,8 %

Interim condensed cash flow statement Borregaard Group Q2 2023
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2023	2022	2023	2022	2022
Profit before taxes	379	322	671	599	1 118
Amortisation, depreciation and impairment charges	118	111	233	220	449
Change in net working capital, etc	19	-221	-174	-602	-658
Dividend/share of profit from JV & associate company	2	31	8	31	34
Taxes paid	-107	-61	-216	-138	-208
Cash flow from operating activities	411	182	522	110	735
Investments property, plant and equipment and intangible assets *	-137	-81	-244	-168	-464
Investment in associate company	-124	0	-124	0	0
Other capital transactions	3	4	5	6	9
Cash flow from Investing activities	-258	-77	-363	-162	-455
Dividends	-324	-499	-324	-499	-499
Proceeds from exercise of options/shares to employees	4	7	45	34	41
Buy-back of shares	-8	-19	-49	-23	-68
Gain/(loss) on hedges for net investments in subsidiaries	-30	-111	-88	-80	-79
Net paid to/from shareholders	-358	-622	-416	-568	-605
Proceeds from interest-bearing liabilities	800	737	800	837	837
Repayment of interest-bearing liabilities	-446	-339	-460	-353	-512
Change in interest-bearing receivables/other liabilities	19	70	60	68	78
Change in net interest-bearing liablities	373	468	400	552	403
Cash flow from financing activities	15	-154	-16	-16	-202
Change in cash and cash equivalents	168	-49	143	-68	78
Cash and cash equivalents at beginning of period	105	-16	111	5	5
Change in cash and cash equivalents	168	-49	143	-68	78
Currency effects cash and cash equivalents	5	27	24	25	28
Cash and cash equivalents at the end of the period	278	-38	278	-38	111
* Investment by category:
Replacement investments	103	57	190	128	359
Expansion investments including investment in associate company	158	24	178	40	105
Total investments including investment in associate company	261	81	368	168	464

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	1.1-30.6
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	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	3 813
BioSolutions	2 982	3 082	812	885	838	934	3 469	948	1 098	1 007	997	4 050	995	1 087	2 082
BioMaterials	1 712	1 732	523	482	468	405	1 878	532	540	558	620	2 250	684	661	1 345
Fine Chemicals	406	543	90	155	132	114	491	143	119	200	170	632	180	227	407
Eliminations	- 37	- 29	- 6	- 11	- 9	- 7	- 33	-8	-13	-13	-17	-51	-9	-12	-21
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	1.1-30.6
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Borregaard	1 007	1 132	302	416	391	263	1 372	400	445	434	364	1 643	435	537	972
BioSolutions	647	632	205	272	251	214	942	261	305	261	159	986	224	284	508
BioMaterials	234	318	64	102	91	27	284	97	91	101	138	427	127	143	270
Fine Chemicals	126	182	33	42	49	22	146	42	49	72	67	230	84	110	194
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	1.1-30.6
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Borregaard	- 418	- 443	- 106	- 101	- 103	- 106	- 416	-108	-110	-112	-114	-444	-114	-116	-230
BioSolutions	- 183	- 206	- 48	- 45	- 47	- 49	- 189	-50	-53	-54	-55	-212	-56	-56	-112
BioMaterials	- 203	- 203	- 50	- 47	- 47	- 49	- 193	-49	-48	-49	-49	-195	-49	-49	-98
Fine Chemicals	- 32	- 34	- 8	- 9	- 9	- 8	- 34	-9	-9	-9	-10	-37	-9	-11	-20
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	1.1-30.6
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Borregaard	- 4	- 5	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-2	-5	-1	-2
BioSolutions	- 4	- 5	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-2	-5	-1	-2	-3 -3
BioMaterials	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
Other income and expenses															0 0
	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
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Borregaard	-27	-116	0	0	0	0	0	0	12	0	-20	-8	0	0
BioSolutions	-16	-97	0	0	0	0	0	0	12	0	-6	6	0	0
BioMaterials	-11	-18	0	0	0	0	0	0	0	0	-12	-12	0	0
Fine Chemicals	0	- 1	0	0	0	0	0	0	0	0	-2	-2	0	0	1.1-30.6 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
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Borregaard	558	568	195	314	287	156	952	291	346	321	228	1 186	320	419
BioSolutions	444	324	156	226	203	164	749	210	263	206	96	775	167	226
BioMaterials Fine Chemicals	20 94	97 147	14 25	55 33	44 40	- 22 14	91 112	48 33	43 40	52 63	77 55	220 191	78 75	94 99	1.1-30.6 739 393 172 174

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	1.1-30.6
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Borregaard - EBITDA hedging gains & losses	-76	-241	-15	-4	-16	6	-29	10	-3	-23	-34	-50	-48	-65	-113
BioSolutions	-33	-103	-5	-1	-6	1	-11	3	-5	-19	-23	-44	-25	-29	-54
BioMaterials	-37	-116	-8	-3	-8	4	-15	5	1	-4	-9	-7	-19	-26	-45
Fine Chemicals	-6	-22	-2	0	-2	1	-3	2	1	0	-2	1	-4	-10	-14
Borregaard - USD EBITDA currency exposure (approx)	203	177					198					197
Borregaard - EUR EBITDA currency exposure (approx)	98	112					139					147
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	1.1-30.6
Amounts in NOK million	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	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	3 762
BioSolutions	2 873	2 995	793	865	819	915	3 392	929	1 072	979	966	3 946	973	1 062	2 035
BioMaterials	1 679	1 695	513	472	457	398	1 840	521	530	546	608	2 205	674	649	1 323
Fine Chemicals	400	538	88	154	131	112	485	141	118	198	168	625	178	226	404
Eliminations	- 1	- 1	0	0	- 1	- 1	- 2	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	1.1-30.6
	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	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	11 820
Volume (`000 mtds)	470	416	90	100	92	84	366	81	90	84	79	334	74	86	160
Specialities volume (`000 mtds)	86	88					89					84
Contruction volume (`000 mtds)	209	178					131					117
Industrial volume (`000 mtds)	175	150					146					133
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	1.1-30.6
	2019	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022	2023	2023	2023
Average gross sales price NOK per mt	10 665	11 678	10 641	10 754	10 972	10 911	10 807	12 595	13 656	14 880	16 179	14 283	16 449	17 551	16 977
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	76,8
High specialised as % of total cellulose product sales volum	73 %	77 %					79 %					85 %