Borregaard

Earnings Release • Feb 2, 2023

Income Statement Borregaard Group Q4 2022
	1.10-31.12		1.1-31.12
Amounts in NOK million	2022	2021	2022	2021
Operating revenues	1 770	1 446	6 881	5 805
Operating expenses	-1 406	-1 183	-5 238	-4 433
EBITDA	364	263	1 643	1 372
Depreciation property, plant and equipment	-114	-106	-444	-416
Amortisation intangible assets	-2	-1	-5	-4
Other income and expenses	-20	0	-8	0
Operating profit	228	156	1 186	952
Financial items, net	-18	-24	-68	-79
Profit before taxes	210	132	1 118	873
Income tax expence	-47	-39	-267	-213
Profit for the period	163	93	851	660
Profit attributable to non-controlling interests	-21	-9	-41	-32
Profit attributable to owners of the parent	184	102	892	692
Earnings per share (NOK)	1,85	1,02	8,95	6,95
EBITDA margin	20,6 %	18,2 %	23,9 %	23,6 %

Interim condensed statement of financial position Borregaard Group
	31.12.	30.9.	31.12.
Amounts in NOK million	2022	2022	2021
Assets:
Intangible assets	82	84	89
Property, plant and equipment	4 371	4 339	4 191
Right-of-use assets	345	342	351
Other assets	254	240	339
Investments in joint venture/associate company	142	143	173
Non-current assets	5 194	5 148	5 143
Inventories	1 299	1 230	792
Receivables	1 387	1 495	1 107
Cash and cash deposits	234	167	124
Current assets	2 920	2 892	2 023
Total assets	8 114	8 040	7 166
Equity and debt:
Group equity	4 394	3 929	4 222
Non-controlling interests	51	79	84
Equity	4 445	4 008	4 306
Provisions and other liabilities	295	438	257
Interest-bearing liabilities	1 370	1 523	1 320
Non-current liabilities	1 665	1 961	1 577
Interest-bearing liabilities	702	641	224
Other current liabilities	1 302	1 430	1 059
Current liabilities	2 004	2 071	1 283
Equity and liabilities	8 114	8 040	7 166
Equity ratio (%):	54,8 %	49,9 %	60,1 %

Interim condensed cash flow statement Borregaard Group Q4 2022
		1.10-31.12	1.1-31.12
Amounts in NOK million	2022	2021	2022	2021
Profit before taxes	210	132	1 118	873
Amortisation, depreciation and impairment charges	116	107	449	420
Change in net working capital, etc	55	174	-658	256
Dividend/share of profit from JV & associate company	3	6	34	6
Taxes paid	-71	-63	-208	-124
Cash flow from operating activities	313	356	735	1 431
Investments property, plant and equipment and intangible assets *	-212	-227	-464	-556
Investment in associate company	0	-35	0	-145
Other capital transactions	4	4	9	9
Cash flow from Investing activities	-208	-258	-455	-692
Dividends	0	0	-499	-249
Proceeds from exercise of options/shares to employees	7	4	41	59
Buy-back of shares	-45	-7	-68	-118
Gain/(loss) on hedges for net investments in subsidiaries	77	-25	-79	-14
Net paid to/from shareholders	39	-28	-605	-322
Proceeds from interest-bearing liabilities	0	0	837	300
Repayment of interest-bearing liabilities	-43	-146	-512	-814
Change in interest-bearing receivables/other liabilities	-41	4	78	-1
Change in net interest-bearing liablities	-84	-142	403	-515
Cash flow from financing activities	-45	-170	-202	-837
Change in cash and cash equivalents	60	-72	78	-98
Cash and cash equivalents at beginning of period	76	76	5	96
Change in cash and cash equivalents	60	-72	78	-98
Currency effects cash and cash equivalents	-25	1	28	7
Cash and cash equivalents at the end of the period	111	5	111	5
* Investment by category:
Replacement investments	172	190	359	398
Expansion investments including investment in associate company	40	72	105	303
Total investments including investment in associate company	212	262	464	701

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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
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	1 615	1 744	1 752	1 770	6 881
BioSolutions	2 775	2 982	797	819	733	733	3 082	812	885	838	934	3 469	948	1 098	1 007	997	4 050
BioMaterials	1 661	1 712	454	417	403	458	1 732	523	482	468	405	1 878	532	540	558	620	2 250
Fine Chemicals	374	406	128	131	131	153	543	90	155	132	114	491	143	119	200	170	632
Eliminations	- 25	- 37	- 7	- 9	- 7	- 6	- 29	-6	-11	-9	-7	-33	-8	-13	-13	-17	-51
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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
Borregaard	903	1 007	242	361	266	263	1 132	302	416	391	263	1 372	400	445	434	364	1 643
BioSolutions	499	647	170	193	132	137	632	205	272	251	214	942	261	305	261	159	986
BioMaterials	312	234	46	101	91	80	318	64	102	91	27	284	97	91	101	138	427
Fine Chemicals	92	126	26	67	43	46	182	33	42	49	22	146	42	49	72	67	230
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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
Borregaard	- 323	- 418	- 109	- 112	- 112	- 110	- 443	-106	-101	-103	-106	-416	-108	-110	-112	-114	-444
BioSolutions	- 113	- 183	- 51	- 51	- 53	- 51	- 206	-48	-45	-47	-49	-189	-50	-53	-54	-55	-212
BioMaterials	- 189	- 203	- 50	- 52	- 51	- 50	- 203	-50	-47	-47	-49	-193	-49	-48	-49	-49	-195
Fine Chemicals	- 21	- 32	- 8	- 9	- 8	- 9	- 34	-8	-9	-9	-8	-34	-9	-9	-9	-10	-37
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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
Borregaard	- 4	- 4	- 1
BioSolutions	- 4			- 1	- 1	- 2	- 5	-1	-1	-1	-1	-4	-1	-1	-1	-2	-5
BioMaterials		- 4	- 1	- 1	- 1	- 2	- 5	-1	-1	-1	-1	-4	-1	-1	-1	-2	-5
	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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
Borregaard	0	-27	0	-96	0	-20	-116	0	0	0	0	0	0	12	0	-20	-8
BioSolutions	0	-16	0	-90	0	-7	-97	0	0	0	0	0	0	12	0	-6	6
BioMaterials	0	-11	0	-6	0	-12	-18	0	0	0	0	0	0	0	0	-12	-12
Fine Chemicals	0	0	0	0	0	- 1	- 1	0	0	0	0	0	0	0	0	-2	-2
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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
Borregaard	576	558	132	152	153	131	568	195	314	287	156	952	291	346	321	228	1 186
BioSolutions	382	444	118	51	78	77	324	156	226	203	164	749	210	263	206	96	775
BioMaterials Fine Chemicals	123 71	20 94	- 4 18	43 58	40 35	18 36	97 147	14 25	55 33	44 40	-22 14	91 112	48 33	43 40	52 63	77 55	220 191

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	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	2022
Borregaard - EBITDA hedging gains & losses	-11	-76	-62	-84	-51	-44	-241	-15	-4	-16	6	-29	10	-3	-23	-34	-50
BioSolutions	3	-33	-26	-38	-21	-18	-103	-5	-1	-6	1	-11	3	-5	-19	-23	-44
BioMaterials	-3	-37	-30	-39	-25	-22	-116	-8	-3	-8	4	-15	5	1	-4	-9	-7
Fine Chemicals	-11	-6	-6	-7	-5	-4	-22	-2	0	-2	1	-3	2	1	0	-2	1
Borregaard - USD EBITDA currency exposure (approx)	194	203					177					198					197
Borregaard - EUR EBITDA currency exposure (approx)	84	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	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	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	1 720	1 723	1 742	6 776
BioSolutions	2 708	2 873	775	800	706	714	2 995	793	865	819	915	3 392	929	1 072	979	966	3 946
BioMaterials	1 630	1 679	445	407	395	448	1 695	513	472	457	398	1 840	521	530	546	608	2 205
Fine Chemicals	369	400	127	130	128	153	538	88	154	131	112	485	141	118	198	168	625
Eliminations	- 2	- 1	0	0	0	- 1	- 1	0	0	-1	-1	-2	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
	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	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	10 150	10 479	11 104	10 369
Volume (`000 mtds)	468	470	115	106	99	96	416	90	100	92	84	366	81	90	84	79	334
Specialities volume (`000 mtds)	86	86					88					89					84
Contruction volume (`000 mtds)	212	209					178					131					117
Industrial volume (`000 mtds)	170	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	1.7-30.9	1.10-31.12	1.1-31.12
	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022	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	13 656	14 880	16 179	14 283
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	39,4	36,6	34,7	36,3	147,0
High specialised as % of total cellulose product sales volum	62 %	73 %					77 %					79 %					85 %