Borregaard — Interim / Quarterly Report 2013

Feb 5, 2014

Interim condensed income statement Borregaard Group Q4 2013
		1.10-31.12	1.1-31.12
Amounts in NOK million	2013	2012	2013	2012
Operating revenues	997	925	3 997	3 941
Operating expenses	-847	-777	-3 267	-3 177
EBITDA (adjusted)	150	148	730	764
Depreciations and write-downs of property, plant and equipment	-60	-57	-229	-218
EBITA (adjusted)	90	91	501	546
Amortisation intangible assets	-1	0	-2	-3
Other income and expenses	0	-9	14	-71
Operating profit	89	82	513	472
Financial items, net	-5	-9	-39	-52
Profit/loss before taxes	84	73	474	420
Taxes	-24	-29	-143	-142
Profit/loss for the period	60	44	331	278
Profit/loss attributable to non-controlling interests	-2	2	-4	2
Profit/loss attributable to owners of the parent	62	42	335	276
Earnings per share (NOK)	0,62	0,42	3,35	2,76
EBITDA margin	15,0 %	16,0 %	18,3 %	19,4 %
EBITA margin	9,0 %	9,8 %	12,5 %	13,9 %

Interim condensed statement of financial position Borregaard Group
	31.12	30.09	31.12
Amounts in NOK million	2013	2013	2012
Assets:
Intangible assets	57	41	39
Property, plant and equipment	1 991	1 961	1 954
Other assets	53	85	30
Non-current assets	2 101	2 087	2 023
Inventories	554	569	589
Receivables	731	791	727
Cash and cash equivalents	58	155	155
Current assets	1 343	1 515	1 471
Total assets	3 444	3 602	3 494
Equity and debt:
Group equity	1 847	1 803	1 691
Non-controlling interests	9	10	11
Equity	1 856	1 813	1 702
Provisions and other non current liabilities	172	204	179
Interest-bearing liabilities	774	890	990
Non-current liabilities	946	1 094	1 169
Interest-bearing liabilities	6	1	16
Other liabilities	636	694	607
Current liabilities	642	695	623
Equity and liabilities	3 444	3 602	3 494
Equity ratio (%):	53,9 %	50,3 %	48,7 %

Interim condensed cash flow statement Borregaard Group Q4 2013
		1.10-31.12	1.1-31.12
Amounts in NOK million	2013	2012	2013	2012
Profit before taxes	84	73	474	420
Amortisation, depreciation and impairment charges	60	57	239	265
Change in net working capital, etc	107	71	-29	-38
Taxes paid	-118	-25	-144	-96
Cash flow from operating activities	133	176	540	551
Investments property, plant, equipment and intangible assets 1)	-107	-117	-292	-388
Other capital transactions	-5	4	2	2
Cash flow from Investing activities	-112	-113	-290	-386
Dividends/Group contributions	0	24	-100	-690
Paid-in equity	0	0	0	1 000
Repurchase of treasury shares	-11	0	-33	0
Net paid to/from shareholders	-11	24	-133	310
Change in interest-bearing liabilities	-111	-1 348	-226	-806
Change in interest-bearing receivables	1	5	-3	5
Change in net interest-bearing liabilities	-110	-1 343	-229	-801
Cash flow from financing activities	-121	-1 319	-362	-491
Change in cash and cash equivalents	-100	-1 256	-112	-326
Cash and cash equivalents as of beginning of period	155	1 411	155	496
Change in cash and cash equivalents	-100	-1 256	-112	-326
Currency effects cash and cash equivalents	3	0	15	-15
Cash and cash equivalents at the close of the period	58	155	58	155
1) Replacement investments	84	89	230	302
Expansion investments	23	5	62	63
Stamp duty		23		23

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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	3 382	3 461	984	972	957	941	3 854	981	1 036	999	925	3 941	972	983	1 045	997	3 997
Performance Chemicals	1 425	1 495	385	399	371	384	1 539	399	460	414	416	1 689	413	449	445	449	1 756
Specialty Cellulose	1 283	1 296	431	387	427	399	1 644	408	419	415	374	1 616	407	374	435	381	1 597
Other Businesses	756	736	188	207	175	179	749	194	177	187	157	715	164	174	179	186	703
Eliminations	- 82	- 66	- 20	- 21	- 16	- 21	- 78	- 20	- 20	- 17	- 22	- 79	- 12	- 14	- 14	- 19	- 59
EBITDA adjusted
	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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	463	489	186	208	222	120	736	179	209	228	148	764	166	195	219	150	730
Performance Chemicals	285	294	79	77	66	34	256	60	89	80	68	297	72	98	96	86	352
Specialty Cellulose	77	111	77	95	124	89	385	80	105	107	69	361	88	71	98	60	317
Other Businesses	101	84	30	36	32	- 3	95	39	15	41	11	106	6	26	25	4	61
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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	- 210	- 200	- 50	- 51	- 50	- 48	- 199	- 52	- 52	- 57	- 57	- 218	- 55	- 55	- 59	- 60	- 229
Performance Chemicals	- 42	- 37	- 8	- 8	- 8	- 7	- 31	- 8	- 7	- 7	- 6	- 28	- 6	- 6	- 7	- 7	- 26
Specialty Cellulose	- 67	- 68	- 17	- 18	- 17	- 16	- 68	- 20	- 19	- 20	- 21	- 80	- 22	- 23	- 23	- 25	- 93
Other Businesses	- 101	- 95	- 25	- 25	- 25	- 25	- 100	- 24	- 26	- 30	- 30	- 110	- 27	- 26	- 29	- 28	- 110
EBITA adjusted
	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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	253	289	136	157	172	72	537	127	157	171	91	546	111	140	160	90	501
Performance Chemicals	243	257	71	69	58	27	225	52	82	73	62	269	66	92	89	79	326
Specialty Cellulose	10	43	60	77	107	73	317	60	86	87	48	281	66	48	75	35	224
Other Businesses	0	- 11	5	11	7	- 28	- 5	15	- 11	11	- 19	- 4	- 21	0	- 4	- 24	- 49
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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	- 6	- 6	- 1	- 2	- 1	- 2	- 6	- 2	- 1	0	0	- 3	0	- 1	0	- 1	- 2
Performance Chemicals	- 6	- 6	- 1	- 2	- 1	- 2	- 6	- 2	- 1	0	0	- 3	0	- 1	0	- 1	- 2

Specialty Cellulose 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Other Businesses 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Quarterly segment information Borregaard Group

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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	0	22	0	0	0	0	0	0	-44	-18	-9	-71	0	0	14	0	14
Performance Chemicals	0	- 1	0	0	0	0	0	0	-36	-12	-9	-57	0	0	-9	0	-9
Specialty Cellulose	0	0	0	0	0	0	0	0	-1	-1	0	-2	0	0	0	0	0
Other Businesses	0	23	0	0	0	0	0	0	- 7	- 5	0	- 12	0	0	23	0	23
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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	247	305	135	155	171	70	531	125	112	153	82	472	111	139	174	89	513
Performance Chemicals	237	250	70	67	57	25	219	50	45	61	53	209	66	91	80	78	315
Specialty Cellulose	10	43	60	77	107	73	317	60	85	86	48	279	66	48	75	35	224
Other Businesses	0	12	5	11	7	- 28	- 5	15	- 18	6	- 19	- 16	- 21	0	19	- 24	- 26
Hedging effects
	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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	- 6	50	31	38	25	14	108	5	7	19	23	54	24	13	-7	-20	10
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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Borregaard Chemicals	3 338	3 419	964	961	946	938	3 810	970	1 023	992	916	3 901	960	967	1 032	982	3 941
Performance Chemicals	1 377	1 458	378	391	363	376	1 508	391	449	410	407	1 657	408	443	439	441	1 731
Cellulose	1 188	1 223	409	366	406	373	1 554	380	394	393	355	1 522	378	340	415	351	1 484
Bioethanol	94	70	21	20	21	24	87	28	24	21	18	91	29	33	19	29	110
Fine Chemicals	227	188	35	64	42	52	193	75	57	71	40	243	45	56	44	48	193
Ingredients	391	401	96	94	91	79	360	75	76	73	73	297	75	70	89	89	323
Other	61	79	25	26	23	33	108	21	23	24	23	91	25	25	26	24	100
Performance Chemicals
	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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Average gross sales price NOK per mtds	3 366	3 285	3 381	3 167	3 077	3 274	3 222	3 484	3 371	3 370	3 366	3 395	3 802	3 741	3 863	4 143	3 883
Volume (`000 mtds)	420	453	112	122	118	120	473	115	140	124	122	501	106	126	119	111	462
High value % (share of total volum)	15 %	16 %					15 %					15 %					18 %
Medium value % (share of total volum)	71 %	68 %					69 %					69 %					71 %
Specialty Cellulose
	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	2009	2010	2011	2011	2011	2011	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013
Average gross sales price NOK per mt	7 409	8 099	9 762	10 142	10 530	10 746	10 279	10 628	10 519	9 822	8 902	9 949	9 728	9 011	9 464	9 152	9 343
Volume (`000 mt)	159,5	145,9	39,5	33,5	37,2	33,7	143,9	35,1	37,1	39,2	38,2	149,6	37,4	36,6	44,4	39,6	158,0
High specialised as % of total cellulose product sales volum	60 %	77 %					85 %					73 %					67 %