Borregaard — Interim / Quarterly Report 2015

Apr 28, 2015

Income Statement Borregaard Group Q1 2015
		1.1-31.3	1.1-31.12
Amounts in NOK million	2015	2014	2014
Operating revenues	1 007	992	3 939
Operating expenses	-838	-834	-3 209
EBITDA (adjusted)	169	158	730
Depreciations and write-downs of property, plant and equipment	-64	-59	-244
EBITA (adjusted)	105	99	486
Amortisation intangible assets	0	0	0
Other income and expenses	0	0	-30
Operating profit	105	99	456
Financial items, net	-5	-7	-26
Profit/loss before taxes	100	92	430
Taxes	-27	-27	-98
Profit/loss for the period	73	65	332
Profit/loss attributable to non-controlling interests	-1	0	-2
Profit/loss attributable to owners of the parent	74	65	334
Earnings per share (NOK)	0,74	0,65	3,34
EBITDA margin	16,8 %	15,9 %	18,5 %
EBITA margin	10,4 %	10,0 %	12,3 %

Interim condensed statement of financial position Borregaard Group
--------------------------------------------------------------------	--	--	--	--	--

	31.03	31.12
Amounts in NOK million	2015	2014
Assets:
Intangible assets	72	77
Property, plant and equipment	2 000	2 004
Other assets	82	76
Investments in joint venture	109	106
Non-current assets	2 263	2 263
Inventories	640	610
Receivables	826	707
Cash and cash deposits	51	168
Current assets	1 517	1 485
Total assets	3 780	3 748
Equity and debt:
Group equity	2 014	1 941
Non-controlling interests	7	8
Equity	2 021	1 949
Provisions and other non current liabilities	203	196
Interest-bearing liabilities	770	784
Non-current liabilities	973	980
Interest-bearing liabilities	67	8
Other liabilities	719	811
Current liabilities	786	819
Equity and liabilities	3 780	3 748
Equity ratio (%):	53,5 %	52,0 %

Interim condensed cash flow statement Borregaard Group Q1 2015
		1.1-31.3	1.1-31.12
Amounts in NOK million	2015	2014	2014
Profit before taxes	100	92	430
Amortisation, depreciation and impairment charges	64	59	244
Change in net working capital, etc	-194	-29	59
Dividend (share of profit) from JV	1	-2	6
Taxes paid	-53	-61	-139
Cash flow from operating activities	-82	59	600
Investments property, plant and equipment and intangible assets	-53	-51	-313
Other capital transactions	3	3	2
Cash flow from Investing activities	-50	-48	-311
Dividends	0	0	-109
Proceeds from exercise of share options	0	11	48
Buy-back of treasury shares	0	0	-76
Gain/(loss) on hedges for net investments in subsidiaries	-43	0	-72
Net paid to/from shareholders	-43	11	-209
Change in interest-bearing liabilities	-16	-20	6
Change in interest-bearing receivables	-2	-4	-3
Change in net interest-bearing liablities	-18	-24	3
Cash flow from financing activities	-61	-13	-206
Change in cash and cash equivalents	-193	-2	83
Cash and cash equivalents as of beginning of period	168	39	39
Change in cash and cash equivalents	-193	-2	83
Currency effects cash and cash equivalents	17	-2	46
Cash and cash equivalents at the close of the period	-8	35	168
Replacement investments	31	31	228
Expansion investments	22	20	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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015
Borregaard	3 763	3 838	950	952	1 016	968	3 886	992	993	1003	951	3939	1007
Performance Chemicals	1 448	1 586	391	418	416	420	1 645	442	472	467	441	1822	503
Specialty Cellulose	1 644	1 616	407	374	435	380	1 596	379	358	384	338	1459	336
Other Businesses	749	715	164	174	179	187	704	185	184	169	189	727	176
Eliminations	- 78	- 79	- 12	- 14	- 14	- 19	- 59	- 14	- 21	- 17	- 17	- 69	- 8
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015
Borregaard	715	746	162	190	214	144	710	158	190	225	157	730	169
Performance Chemicals	226	265	63	88	86	77	314	89	109	122	90	410	117
Specialty Cellulose	390	374	91	72	101	62	326	56	58	83	51	248	30
Other Businesses	99	107	8	30	27	5	70	13	23	20	16	72	22
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015
Borregaard	- 187	- 207	- 53	- 53	- 57	- 58	- 221	- 59	- 60	- 60	- 65	- 244	- 64
Performance Chemicals	- 19	- 17	- 4	- 4	- 5	- 5	- 18	- 5	- 5	- 5	- 7	- 22	- 6
Specialty Cellulose	- 66	- 75	- 20	- 21	- 18	- 23	- 82	- 22	- 21	- 21	- 21	- 85	- 22
Other Businesses	- 102	- 115	- 29	- 28	- 34	- 30	- 121	- 32	- 34	- 34	- 37	- 137	- 36
EBITA adjusted
Amounts in NOK million	1.1-31.12 2011	1.1-31.12 2012	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
			2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015
Borregaard	528	539	109	137	157	86	489	99	130	165	92	486
Performance Chemicals	207	248	59	84	81	72	296	84	104	117	83	388
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
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Borregaard	- 6	- 3	0	- 1	0	- 1	- 2	0	0	0	0	0
Performance Chemicals	- 6	- 3	0	- 1	0	- 1	- 2	0	0	0	0	0
Specialty Cellulose	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
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Borregaard	0	-71	0	0	14	0	14	0	0	0	-30	-30
Performance Chemicals	0	-57	0	0	-9	0	-9	0	0	0	0	0
Specialty Cellulose	0	-2	0	0	0	0	0	0	0	0	0	0
Other Businesses	0	- 12	0	0	23	0	23	0	0	0	- 30	- 30
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Borregaard	522	465	109	136	171	85	501	99	130	165	62	456
Performance Chemicals	201	188	59	83	72	71	285	84	104	117	83	388
Specialty Cellulose	324	297	71	51	83	39	244	34	37	62	30	163
Other Businesses	- 3	- 20	- 21	2	16	- 25	- 28	- 19	- 11	- 14	- 51	- 95	105 111 8 - 14 1.1-31.03 2015 0 0 0 0 1.1-31.03 2015 0 0 0 0 1.1-31.03 2015 105 111 8 - 14

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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015
Borregaard - EBITA hedging gains & losses	108	54	24	13	-7	-20	10	-17	2	-3	-33	-51	-70
Performance Chemicals	28	13	6	3	-1	-4	4	-3	1	-1	-9	-12	-22
Specialty Cellulose	60	30	14	7	-5	-13	3	-11	1	-2	-20	-32	-40
Other Businesses	20	11	4	3	-1	-3	3	-3	0	0	-4	-7	-8
Borregaard - USD EBITA currency exposure (approx in million)	215	265					265					250
Borregaard - EUR EBITA currency exposure (approx in million)	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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	2015
Borregaard	3 714	3 792	937	934	1 000	951	3 822	969	969	984	926	3 848	988
Performance Chemicals	1 413	1 548	385	410	407	410	1 612	430	461	455	433	1 779	492
Cellulose	1 554	1 522	378	340	415	350	1 483	345	331	354	314	1 344	312
Bioethanol	87	91	29	33	19	29	110	33	26	30	23	112	24
Fine Chemicals	193	243	45	56	44	48	193	56	40	42	47	185	46
Ingredients	360	297	75	70	89	89	323	79	84	81	84	328	83
Other	107	91	25	25	26	25	101	26	27	22	25	100	31
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	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
Volume (`000 mtds)	472	501	106	126	119	111	462	109	117	113	107	446	99
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
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014	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
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
High specialised as % of total cellulose product sales volum	85 %	73 %					67 %					63 %