Borregaard — Interim / Quarterly Report 2015

Jul 15, 2015

Income Statement Borregaard Group Q2 2015
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2015	2014	2015	2014	2014
Operating revenues	1 054	993	2 061	1 985	3 939
Operating expenses	-858	-803	-1 696	-1 637	-3 209
EBITDA (adjusted)	196	190	365	348	730
Depreciations and write-downs of property, plant and equipment	-65	-60	-129	-119	-244
EBITA (adjusted)	131	130	236	229	486
Amortisation intangible assets	0	0	0	0	0
Other income and expenses	0	0	0	0	-30
Operating profit	131	130	236	229	456
Financial items, net	-6	-4	-11	-11	-26
Profit/loss before taxes	125	126	225	218	430
Taxes	-33	-36	-60	-63	-98
Profit/loss for the period	92	90	165	155	332
Profit/loss attributable to non-controlling interests	0	-1	-1	-1	-2
Profit/loss attributable to owners of the parent	92	91	166	156	334
Earnings per share (NOK)	0,92	0,91	1,66	1,56	3,34
EBITDA margin	18,6 %	19,1 %	17,7 %	17,5 %	18,5 %
EBITA margin	12,4 %	13,1 %	11,5 %	11,5 %	12,3 %

Interim condensed statement of financial position Borregaard Group
	30.6	31.3	31.12
Amounts in NOK million	2015	2015	2014
Assets:
Intangible assets	75	72	77
Property, plant and equipment	2 037	2 000	2 004
Investments in joint venture	125	109	106
Other assets	88	82	76
Non-current assets	2 325	2 263	2 263
Inventories	613	640	610
Receivables	860	826	707
Cash and cash deposits	51	51	168
Current assets	1 524	1 517	1 485
Total assets	3 849	3 780	3 748
Equity and debt:
Group equity	2 062	2 014	1 941
Non-controlling interests	6	7	8
Equity	2 068	2 021	1 949
Provisions and other non current liabilities	199	203	196
Interest-bearing liabilities	871	770	784
Non-current liabilities	1 070	973	980
Interest-bearing liabilities	23	67	8
Other liabilities	688	719	811
Current liabilities	711	786	819
Equity and liabilities	3 849	3 780	3 748
Equity ratio (%):	53,7 %	53,5 %	52,0 %

Interim condensed cash flow statement Borregaard Group Q2 2015
	1.4-30.6		1.1-30.6		1.1-31.12
Amounts in NOK million	2015	2014	2015	2014	2014
Profit before taxes	125	126	225	218	430
Amortisation, depreciation and impairment charges	65	60	129	119	244
Change in net working capital, etc	-8	-55	-202	-84	59
Dividend (share of profit) from JV	-19	-11	-18	-13	6
Taxes paid	-17	-51	-70	-112	-139
Cash flow from operating activities	146	69	64	128	600
Investments property, plant anf equipment and intangible assets 1)	-106	-32	-159	-83	-313
Other capital transactions	0	1	3	2	2
Cash flow from Investing activities	-106	-31	-156	-81	-311
Dividends	-124	-109	-124	-109	-109
Proceeds from exercise of share options	0	20	0	40	48
Buy-back of treasury shares	0	-39	0	-55	-76
Gain/(loss) on hedges for net investments in subsidiaries	33	-2	-10	7	-72
Net paid to/from shareholders	-91	-130	-134	-117	-209
Change in interest-bearing liabilities	102	6	86	-14	6
Change in interest-bearing receivables	0	0	-2	-4	-3
Change in net interest-bearing liablities	102	6	84	-18	3
Cash flow from financing activities	11	-124	-50	-135	-206
Change in cash and cash equivalents	51	-86	-142	-88	83
Cash and cash equivalents as of beginning of period	-8	35	168	39	39
Change in cash and cash equivalents	51	-86	-142	-88	83
Currency effects cash and cash equivalents	-7	7	10	5	46
Cash and cash equivalents at the close of the period	36	-44	36	-44	168
Replacement investments	69	25	100	56	228
Expansion investments	37	7	59	27	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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	3 763	3 838	950	952	1 016	968	3 886	992	993	1003	951	3939	1007	1054	2061
Performance Chemicals	1 448	1 586	391	418	416	420	1 645	442	472	467	441	1822	503	515	1018
Specialty Cellulose	1 644	1 616	407	374	435	380	1 596	379	358	384	338	1459	336	365	701
Other Businesses	749	715	154	164	169	177	664	175	171	158	178	682	176	183	359
Eliminations	- 78	- 79	- 2	- 4	- 4	- 9	- 19	- 4	- 8	- 6	- 6	- 24	- 8	- 9	- 17
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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	715	746	162	190	214	144	710	158	190	225	157	730	169	196	365
Performance Chemicals	226	265	63	88	86	77	314	89	109	122	90	410	117	134	251
Specialty Cellulose	390	374	91	72	101	62	326	56	58	83	51	248	30	39	69
Other Businesses	99	107	8	30	27	5	70	13	23	20	16	72	22	23	45
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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	- 187	- 207	- 53	- 53	- 57	- 58	- 221	- 59	- 60	- 60	- 65	- 244	- 64	- 65	- 129
Performance Chemicals	- 19	- 17	- 4	- 4	- 5	- 5	- 18	- 5	- 5	- 5	- 7	- 22	- 6	- 7	- 13
Specialty Cellulose	- 66	- 75	- 20	- 21	- 18	- 23	- 82	- 22	- 21	- 21	- 21	- 85	- 22	- 21	- 43
Other Businesses	- 102	- 115	- 29	- 28	- 34	- 30	- 121	- 32	- 34	- 34	- 37	- 137	- 36	- 37	- 73
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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	528	539	109	137	157	86	489	99	130	165	92	486	105	131	236
Performance Chemicals
	207	248	59	84	81	72	296	84	104	117	83	388	111	127	238
Specialty Cellulose	324	299	71	51	83	39	244	34	37	62	30	163	8	18	26
Other Businesses	- 3	- 8	- 21	2	- 7	- 25	- 51	-19	-11	-14	-21	- 65	- 14	- 14	- 28
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	1.1-30.6
Amounts in NOK million Borregaard	2011 - 6	2012 - 3	2013 0	2013 - 1	2013 0	2013 - 1	2013 - 2	2014 0	2014 0	2014 0	2014 0	2014 0	2015 0	2015 0	2015 0
Performance Chemicals	- 6	- 3	0	- 1	0	- 1	- 2	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
Other Businesses	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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	0	-71	0	0	14	0	14	0	0	0	-30	-30	0	0	0
Performance Chemicals	0	-57	0	0	-9	0	-9	0	0	0	0	0	0	0	0
Specialty Cellulose	0	-2	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
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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	522	465	109	136	171	85	501	99	130	165	62	456	105	131	236
Performance Chemicals	201	188	59	83	72	71	285	84	104	117	83	388	111	127	238
Specialty Cellulose Other Businesses	324 - 3	297 - 20	71 - 21	51 2	83 16	39 - 25	244 - 28	34 - 19	37 - 11	62 - 14	30 - 51	163 - 95	8 - 14	18 - 14	26 - 28

Quarterly segment information Borregaard Group

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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard - EBITA hedging gains & losses	108	54	24	13	-7	-20	10	-17	2	-3	-33	-51	-70	-54	-124
Performance Chemicals	28	13	6	3	-1	-4	4	-3	1	-1	-9	-12	-22	-18	-40
Specialty Cellulose	60	30	14	7	-5	-13	3	-11	1	-2	-20	-32	-40	-29	-69
Other Businesses	20	11	4	3	-1	-3	3	-3	0	0	-4	-7	-8	-7	-15
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	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
Borregaard	3 714	3 792	937	934	1 000	951	3 822	969	969	984	926	3 848	988	1 032	2 020
Performance Chemicals	1 413	1 548	385	410	407	410	1 612	430	461	455	433	1 779	492	499	991
Cellulose	1 554	1 522	378	340	415	350	1 483	345	331	354	314	1 344	312	343	655
Bioethanol	87	91	29	33	19	29	110	33	26	30	23	112	24	21	45
Fine Chemicals	193	243	45	56	44	48	193	56	40	42	47	185	46	55	101
Ingredients	360	297	75	70	89	89	323	79	84	81	84	328	83	82	165
Other	107	91	25	25	26	25	101	26	27	22	25	100	31	32	63
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.13	1.4-30.6	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
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	5 562
Volume (`000 mtds)	472	501	106	126	119	111	462	109	117	113	107	446	99	108	207
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	1.1-31.13	1.4-30.6	1.1-30.6
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015	2015	2015
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	9 105
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	79,5
High specialised as % of total cellulose product sales volum	85 %	73 %					67 %					63 %