Borregaard — Interim / Quarterly Report 2014

Feb 4, 2015

Income Statement Borregaard Group Q4 2014
		1.10-31.12	1.1-31.12
Amounts in NOK million	2014	2013	2014	2013
Operating revenues	951	968	3 939	3 886
Operating expenses	-794	-824	-3 209	-3 176
EBITDA (adjusted)	157	144	730	710
Depreciations and write-downs of property, plant and equipment	-65	-58	-244	-221
EBITA (adjusted)	92	86	486	489
Amortisation intangible assets	0	-1	0	-2
Other income and expenses	-30	0	-30	14
Operating profit	62	85	456	501
Financial items, net	-3	-6	-26	-41
Profit/loss before taxes	59	79	430	460
Taxes	8	-19	-98	-129
Profit/loss for the period	67	60	332	331
Profit/loss attributable to non-controlling interests	-1	-2	-2	-4
Profit/loss attributable to owners of the parent	68	62	334	335
Earnings per share (NOK)	0,68	0,62	3,34	3,35
EBITDA margin	16,5 %	14,9 %	18,5 %	18,3 %
EBITA margin	9,7 %	8,9 %	12,3 %	12,6 %

Interim condensed statement of financial position Borregaard Group
	31.12	30.9	31.12
Amounts in NOK million	2014	2014	2013
Assets:
Intangible assets	77	69	57
Property, plant and equipment	2 004	1 911	1 941
Other assets	106	91	101
Investments in joint venture	76	78	51
Non-current assets	2 263	2 149	2 150
Inventories	610	548	545
Receivables	707	713	693
Cash and cash deposits	168	79	39
Current assets	1 485	1 340	1 277
Total assets	3 748	3 489	3 427
Equity and debt:
Group equity	1 941	2 028	1 847
Non-controlling interests	8	7	9
Equity	1 949	2 035	1 856
Provisions and other non current liabilities	196	143	141
Interest-bearing liabilities	784	746	774
Non-current liabilities	980	889	915
Interest-bearing liabilities	8	7	6
Other liabilities	811	558	650
Current liabilities	819	565	656
Equity and liabilities	3 748	3 489	3 427
Equity ratio (%):	52,0 %	58,3 %	54,2 %

Interim condensed cash flow statement Borregaard Group Q4 2014
		1.10-31.12	1.1-31.12
Amounts in NOK million	2014	2013	2014	2013
Profit before taxes	59	79	430	460
Amortisation, depreciation and impairment charges	65	59	244	231
Change in net working capital, etc	136	107	59	-17
Dividend (share of profit) from JV	-2	-3	6	-19
Taxes paid	-13	-110	-139	-129
Cash flow from operating activities	245	132	600	526
Investments property, plant and equipment and intangible assets	-151	-106	-313	-288
Other capital transactions	0	-5	2	2
Cash flow from Investing activities	-151	-111	-311	-286
Dividends	0	0	-109	-100
Proceeds from exercise of share options	4	0	48	0
Buy-back of treasury shares	-14	-11	-76	-33
Gain/(loss) on hedges for net investments in subsidiaries	-68	0	-72	0
Net paid to/from shareholders	-78	-11	-209	-133
Change in interest-bearing liabilities	33	-111	6	-218
Change in interest-bearing receivables	1	1	-3	-1
Change in net interest-bearing liablities	34	-110	3	-219
Cash flow from financing activities	-44	-121	-206	-352
Change in cash and cash equivalents	50	-100	83	-112
Cash and cash equivalents as of beginning of period	79	136	39	134
Change in cash and cash equivalents	50	-100	83	-112
Currency effects cash and cash equivalents	39	3	46	17
Cash and cash equivalents at the close of the period	168	39	168	39
Replacement investments	124	83	228	226
Expansion investments	27	23	85	62

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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013 2013	2013	2014	2014	2014	2014	2014
Borregaard Group	3 380	3 763	960	1 007	971	900	3 838	950	952	1 016 968	3 886	992	993	1003	951	3939
Performance Chemicals	1 414	1 448	378	431	386	391	1 586	391	418	416 420	1 645	442	472	467	441	1822
Specialty Cellulose	1 296	1 644	408	419	415	374	1 616	407	374	435 381	1 597	379	359	384	341	1463
Other Businesses	736	749	194	177	187	157	715	164	174	179 186	703	185	183	169	186	723
Eliminations	- 66	- 78	- 20	- 20	- 17	- 22	- 79	- 12	- 14	- 14 - 19	- 59	- 14	- 21	- 17	- 17	- 69
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013 2013	2013	2014	2014	2014	2014	2014
Borregaard Group	485	715	176	205	223	142	746	162	190	214 144	710	158	190	225	157	730
Performance Chemicals	290	235	57	85	75	62	279	68	93	91 80	332	98	116	130	97	441
Specialty Cellulose Other Businesses	111 84	385 95	80 39	105 15	107 41	69 11	361 106	88 6	71 26	98 60 25 4	317 61	52 8	54 20	79 16	46 14	231 58
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013 2013	2013	2014	2014	2014	2014	2014
Borregaard Group	- 187	- 187	- 50	- 49	- 54	- 54	- 207	- 53	- 53	- 57 - 58	- 221	- 59	- 60	- 60	- 65	- 244
Performance Chemicals	- 24	- 19	- 6	- 4	- 4	- 3	- 17	- 4	- 4	- 5 - 5	- 18	- 5	- 5	- 5	- 7	- 22
Specialty Cellulose	- 68	- 68	- 20	- 19	- 20	- 21	- 80	- 22	- 23	- 23 - 25	- 93	- 25	- 25	- 25	- 27	- 102
Other Businesses	- 95	- 100	- 24	- 26	- 30	- 30	- 110	- 27	- 26	- 29 - 28	- 110	- 29	- 30	- 30	- 31	- 120
EBITA adjusted
Amounts in NOK million	1.1-31.12 2010	1.1-31.12 2011	1.1-31.3 2012	1.4-30.6 2012	1.7-30.9 2012	1.10-31.12 2012	1.1-31.12 2012	1.1-31.3 2013	1.4-30.6 2013	1.7-30.9 1.10-31.12 2013 2013	1.1-31.12 2013	1.1-31.03 2014	1.4-30.6 2014	1.7-30.9 2014	1.10-31.12 2014	1.1-31.12 2014
Borregaard Group	298	528	126	156	169	88	539	109	137	157 86	489	99	130	165	92	486
Performance Chemicals	266	216	51	81	71	59	262	64	89	86 75	314	93	111	125	90	419
Specialty Cellulose	43	317	60	86	87	48	281	66	48	75 35	224	27	29	54	19	129
Other Businesses	- 11	- 5	15	- 11	11	- 19	- 4	- 21	0	- 4 - 24	- 49	-21	-10	-14	-17	- 62
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
Amounts in NOK million	2010	2011					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
Borregaard Group			2012	2012	2012	2012	2012	2013	2013	2013 2013	2013	2014	2014	2014	2014	2014
	- 6	- 6	- 2	- 1	0	0	- 3	0	- 1	0 - 1	- 2	0	0	0	0	0
Performance Chemicals	- 6	- 6	- 2	- 1	0	0	- 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	0	0	0	0	0
Other Businesses	0	0	0	0	0	0	0	0	0	0 0	0	0	0	0	0	0
Other income and expenses
Amounts in NOK million	1.1-31.12 2010	1.1-31.12 2011	1.1-31.3 2012	1.4-30.6 2012	1.7-30.9 2012	1.10-31.12 2012	1.1-31.12 2012	1.1-31.3 2013	1.4-30.6 2013	1.7-30.9 1.10-31.12 2013 2013	1.1-31.12 2013	1.1-31.03 2014	1.4-30.6 2014	1.7-30.9 2014	1.10-31.12 2014	1.1-31.12 2014
Borregaard Group	22	0	0	-44	-18	-9	-71	0	0	14 0	14	0	0	0	-30	-30
Performance Chemicals	- 1	0	0	-36	-12	-9	-57	0	0	-9 0	-9	0	0	0	0	0
Specialty Cellulose	0	0	0	-1	-1	0	-2	0	0	0 0	0	0	0	0	0	0
Other Businesses	23	0	0	- 7	- 5	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	1.1-31.3	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	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013 2013	2013	2014	2014	2014	2014	2014
Borregaard Chemicals	314	522	124	111	151	79	465	109	136	171 85	501	99	130	165	62	456
Performance Chemicals	259	210	49	44	59	50	202	64	88	77 74	303	93	111	125	90	419
Specialty Cellulose Other Businesses	43 12	317 - 5	60 15	85 - 18	86 6	48 - 19	279 - 16	66 - 21	48 0	75 35 19 - 24	224 - 26	27 - 21	29 - 10	54 - 14	19 - 47	129 - 92

Quarterly segment information Borregaard Group
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Borregaard Group	50	108	5	7	19	23	54	24	13	-7	-20	10	-17	2	-3	-33	-51
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Borregaard Group	3 335	3 714	948	992	962	890	3 792	937	934	1 000	951	3 822	969	969	984	926	3 848
Performance Chemicals	1 374	1 413	369	418	380	381	1 548	385	410	407	410	1 612	430	461	455	433	1 779
Cellulose	1 223	1 554	380	394	393	355	1 522	378	340	415	351	1 484	345	332	354	317	1 348
Bioethanol	70	87	28	24	21	18	91	29	33	19	29	110	33	26	30	23	112
Fine Chemicals	188	193	75	57	71	40	243	45	56	44	48	193	56	40	42	47	185
Ingredients	401	360	75	76	73	73	297	75	70	89	89	323	79	84	81	84	328
Other	79	107	21	23	24	23	91	25	25	26	24	100	26	26	22	22	96
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	1.1-31.03	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12
Amounts in NOK million	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Average gross sales price NOK per mtds	3 309	3 258	3 532	3 403	3 408	3 410	3 435	3 852	3 809	3 931	4 238	3 953	4 522	4 385	4 528	4 740	4 539
Volume (`000 mtds)	453	472	115	140	124	122	501	106	126	119	111	462	109	117	113	107	446
High value % (share of total volum)	15 %	14 %					14 %					17 %					18 %
Medium value % (share of total volum)	69 %	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	1.1-31.3	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	2010	2011	2012	2012	2012	2012	2012	2013	2013	2013	2013	2013	2014	2014	2014	2014	2014
Average gross sales price NOK per mt	8 099	10 279	10 628	10 519	9 822	8 902	9 949	9 728	9 011	9 464	9 152	9 343	9 065	8 711	9 187	9 660	9 144
Volume (`000 mt)	146	143,9	35,1	37,1	39,2	38,2	149,6	37,4	36,6	44,4	39,6	158,0	39,1	37,6	38,4	34,3	149,4
High specialised as % of total cellulose product sales volum	77 %	85 %					73 %					67 %					63 %