Borregaard — Interim / Quarterly Report 2015

Oct 21, 2015

Income Statement Borregaard Group Q3 2015
		1.7-30.9		1.1-30.9	1.1-31.12
Amounts in NOK million	2015	2014	2015	2014	2014
Operating revenues	1 069	1 003	3 130	2 988	3 939
Operating expenses	-844	-778	-2 540	-2 415	-3 209
EBITDA (adjusted)	225	225	590	573	730
Depreciations and write-downs of property, plant and equipment	-65	-60	-194	-179	-244
EBITA (adjusted)	160	165	396	394	486
Amortisation intangible assets	0	0	0	0	0
Other income and expenses	0	0	0	0	-30
Operating profit	160	165	396	394	456
Financial items, net	-9	-12	-20	-23	-26
Profit/loss before taxes	151	153	376	371	430
Taxes	-40	-43	-100	-106	-98
Profit/loss for the period	111	110	276	265	332
Profit/loss attributable to non-controlling interests	-1	0	-2	-1	-2
Profit/loss attributable to owners of the parent	112	110	278	266	334
Earnings per share (NOK)	1,12	1,10	2,78	2,66	3,34
EBITDA margin	21,0 %	22,4 %	18,8 %	19,2 %	18,5 %
EBITA margin	15,0 %	16,5 %	12,7 %	13,2 %	12,3 %

Interim condensed statement of financial position Borregaard Group
	30.9.	30.6.	31.12.
Amounts in NOK million	2015	2015	2014
Assets:
Intangible assets	89	75	77
Property, plant and equipment	2 039	2 037	2 004
Investments in joint venture	103	125	106
Other assets	80	88	76
Non-current assets	2 311	2 325	2 263
Inventories	600	613	610
Receivables	866	860	707
Cash and cash deposits	125	51	168
Current assets	1 591	1 524	1 485
Total assets	3 902	3 849	3 748
Equity and debt:
Group equity	2 000	2 062	1 941
Non-controlling interests	6	6	8
Equity	2 006	2 068	1 949
Provisions and other non current liabilities	277	199	196
Interest-bearing liabilities	850	871	784
Non-current liabilities	1 127	1 070	980
Interest-bearing liabilities	9	23	8
Other liabilities	760	688	811
Current liabilities	769	711	819
Equity and liabilities	3 902	3 849	3 748
Equity ratio (%):	51,4 %	53,7 %	52,0 %

Interim condensed cash flow statement Borregaard Group Q3 2015
	1.7-30.9			1.1-30.9	1.1-31.12
Amounts in NOK million	2015	2014	2015	2014	2014
Profit before taxes	151	153	376	371	430
Amortisation, depreciation and impairment charges	65	60	194	179	244
Change in net working capital, etc	-26	7	-228	-77	59
Dividend (share of profit) from JV	16	21	-2	8	6
Taxes paid	-8	-14	-78	-126	-139
Cash flow from operating activities	198	227	262	355	600
Investments property, plant and equipment and intangible assets 1)	-71	-79	-230	-162	-313
Other capital transactions	2	0	5	2	2
Cash flow from investing activities	-69	-79	-225	-160	-311
Dividends	0	0	-124	-109	-109
Proceeds from exercise of share options	0	4	0	44	48
Buy-back of treasury shares	0	-7	0	-62	-76
Gain/(loss) on hedges for net investments in subsidiaries	-40	-11	-50	-4	-72
Net paid to/from shareholders	-40	-14	-174	-131	-209
Change in interest-bearing liabilities	-23	-13	63	-27	6
Change in interest-bearing receivables	0	0	-2	-4	-3
Change in net interest-bearing liablities	-23	-13	61	-31	3
Cash flow from financing activities	-63	-27	-113	-162	-206
Change in cash and cash equivalents	66	121	-76	33	83
Cash and cash equivalents as of beginning of period	36	-44	168	39	39
Change in cash and cash equivalents	66	121	-76	33	83
Currency effects cash and cash equivalents	23	2	33	7	46
Cash and cash equivalents at the close of the period	125	79	125	79	168
1)Replacement investments	56	48	156	104	228
1)Expansion investments	15	31	74	58	85

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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million Borregaard	2011 3 763	2012 3 838	2013 950	2013 952	2013 1 016	2013 968	2013 3 886	2 014 992	2 014 993	2 014 1 003	2 014 951	2 014 3 939	2 015 1 007	2 015 1 054	2 015 1 069	2 015 3 130
Performance Chemicals	1 448	1 586	391	418	416	420	1 645	442	472	467	441	1 822	503	515	488	1 506
Specialty Cellulose	1 644	1 616	407	374	435	380	1 596	379	358	384	338	1 459	336	365	389	1 090
Other Businesses	749	715	154	164	169	177	664	175	171	158	178	682	176	183	199	558
Eliminations	- 78	- 79	- 2	- 4	- 4	- 9	- 19	-4	-8	-6	-6	-24	-8	-9	-7	-24
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	715	746	162	190	214	144	710	158	190	225	157	730	169	196	225	590
Performance Chemicals	226	265	63	88	86	77	314	89	109	122	90	410	117	134	117	368
Specialty Cellulose	390	374	91	72	101	62	326	56	58	83	51	248	30	39	79	148
Other Businesses	99	107	8	30	27	5	70	13	23	20	16	72	22	23	29	74
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	- 187	- 207	- 53	- 53	- 57	- 58	- 221	-59	-60	-60	-65	-244	-64	-65	-65	-194
Performance Chemicals	- 19	- 17	- 4	- 4	- 5	- 5	- 18	-5	-5	-5	-7	-22	-6	-7	-6	-19
Specialty Cellulose	- 66	- 75	- 20	- 21	- 18	- 23	- 82	-22	-21	-21	-21	-85	-22	-21	-23	-66
Other Businesses	- 102	- 115	- 29	- 28	- 34	- 30	- 121	-32	-34	-34	-37	-137	-36	-37	-36	-109
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	528	539	109	137	157	86	489	99	130	165	92	486	105	131	160	396
Performance Chemicals	207	248	59	84	81	72	296	84	104	117	83	388	111	127	111	349
Specialty Cellulose Other Businesses	324 - 3	299 - 8	71 - 21	51 2	83 - 7	39 - 25	244 - 51	34 -19	37 -11	62 -14	30 -21	163 -65	8 -14	18 -14	56 -7	82 -35
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	- 6	- 3	0	- 1	0	- 1	- 2	0	0	0	0	0	0	0	0	0
Performance Chemicals	- 6	- 3	0	- 1	0	- 1	- 2	0	0	0	0	0	0	0	0	0
Specialty Cellulose	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
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	0	-71	0	0	14	0	14	0	0	0	-30	-30	0	0	0	0
Performance Chemicals Specialty Cellulose	0 0	-57 -2	0 0	0 0	-9 0	0 0	-9 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
Other Businesses	0	- 12	0	0	23	0	23	0	0	0	-30	-30	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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	522	465	109	136	171	85	501	99	130	165	62	456	105	131	160	396
Performance Chemicals	201	188	59	83	72	71	285	84	104	117	83	388	111	127	111	349
Specialty Cellulose	324	297	71	51	83	39	244	34	37	62	30	163	8	18	56	82
Other Businesses	- 3	- 20	- 21	2	16	- 25	- 28	-19	-11	-14	-51	-95	-14	-14	-7	-35

			Hedging effects & currency exposure
--	--	--	-------------------------------------

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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard - EBITA hedging gains & losses	108	54	24	13	-7	-20	10	-17	2	-3	-33	-51	-70	-54	-55	-179
Performance Chemicals	28	13	6	3	-1	-4	4	-3	1	-1	-9	-12	-22	-18	-17	-57
Specialty Cellulose	60	30	14	7	-5	-13	3	-11	1	-2	-20	-32	-40	-29	-28	-97
Other Businesses	20	11	4	3	-1	-3	3	-3	0	0	-4	-7	-8	-7	-10	-25
Borregaard - USD EBITA currency exposure (approx)	215	265					265					250
Borregaard - EUR EBITA currency exposure (approx)	115	105					96					89
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Borregaard	3 714	3 792	937	934	1 000	951	3 822	969	969	984	926	3 848	988	1 032	1 048	3 068
Performance Chemicals	1 413	1 548	385	410	407	410	1 612	430	461	455	433	1 779	492	499	474	1 465
Cellulose	1 554	1 522	378	340	415	350	1 483	345	331	354	314	1 344	312	343	365	1 020
Bioethanol	87	91	29	33	19	29	110	33	26	30	23	112	24	21	25	70
Fine Chemicals	193	243	45	56	44	48	193	56	40	42	47	185	46	55	60	161
Ingredients	360	297	75	70	89	89	323	79	84	81	84	328	83	82	92	257
Other	107	91	25	25	26	25	101	26	27	22	25	100	31	32	32	95
Performance Chemicals
	1.1-31.12 2011	1.1-31.12 2012	1.1-31.3 2013	1.4-30.6 2013	2013	1.7-30.9 1.10-31.12 2013	1.1-31.12 2013	1.1-31.03 2 014	1.4-30.6 2 014	1.7-30.9 2 014	1.10-31.12 2 014	1.1-31.12 2 014	1.1-31.03 2 015	1.4-30.6 2 015	1.7-30.9 2 015	1.1-30.9 2 015
Average gross sales price NOK per mtds	3 258	3 435	3 852	3 809	3 931	4 238	3 953	4 522	4 385	4 528	4 740	4 539	5 744	5 393	5 424	5 514
Volume (`000 mtds)	472	501	106	126	119	111	462	109	117	113	107	446	99	108	100	307
High value % (share of total volum)	14 %	14 %					17 %					18 %
Medium value % (share of total volum)	70 %	70 %					71 %					70 %
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.03	1.4-30.6	1.7-30.9	1.1-30.9
	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015
Average gross sales price NOK per mt	10 279	9 949	9 728	9 011	9 464	9 152	9 343	9 065	8 711	9 187	9 660	9 144	9 337	8 894	9 881	9 363
Volume (`000 mt)	143,9	149,6	37,4	36,6	44,4	39,6	158,0	39,1	37,6	38,4	34,3	149,4	37,8	41,7	39,6	119,1
High specialised as % of total cellulose product sales volum	85 %	73 %					67 %					63 %