Borregaard — Interim / Quarterly Report 2016

Jul 18, 2016

Income Statement Borregaard Group Q2 2016
		1.4-30.6		1.1-30.6	1.1-31.12
Amounts in NOK million	2016	2015	2016	2015	2015
Operating revenues	1 167	1 054	2 280	2 061	4 164
Operating expenses	-898	-858	-1 775	-1 696	-3 406
EBITDA adj.	269	196	505	365	758
Depreciations and write-downs of property, plant and equipment	-69	-65	-134	-129	-261
EBITA adj.	200	131	371	236	497
Amortisation intangible assets	-1	0	-2	0	-1
Other income and expenses	13	0	13	0	37
Operating profit	212	131	382	236	533
Financial items, net	-5	-6	-14	-11	-27
Profit/loss before taxes	207	125	368	225	506
Taxes	-53	-33	-94	-60	-122
Profit/loss for the period	154	92	274	165	384
Profit/loss attributable to non-controlling interests	0	0	-1	-1	-2
Profit/loss attributable to owners of the parent	154	92	275	166	386
Earnings per share (NOK)	1,54	0,92	2,75	1,66	3,86
EBITDA adj. margin EBITA adj. margin	23,1 % 17,1 %	18,6 % 12,4 %	22,1 % 16,3 %	17,7 % 11,5 %	18,2 % 11,9 %

Interim condensed statement of financial position Borregaard Group
	30.6.	31.3.	31.12.
Amounts in NOK million	2016	2016	2015
Assets:
Intangible assets	127	131	137
Property, plant and equipment	2 200	2 121	2 122
Investments in joint venture	145	128	106
Other assets	121	165	121
Non-current assets	2 593	2 545	2 486
Inventories	671	684	676
Receivables	981	1 008	838
Cash and cash deposits	163	39	169
Current assets	1 815	1 731	1 683
Total assets	4 408	4 276	4 169
Equity and debt:
Group equity	2 385	2 376	2 056
Non-controlling interests	4	5	5
Equity	2 389	2 381	2 061
Provisions and other non current liabilities	335	367	408
Interest-bearing liabilities	784	791	802
Non-current liabilities	1 119	1 158	1 210
Interest-bearing liabilities	9	31	9
Other liabilities	891	706	889
Current liabilities	900	737	898
Equity and liabilities	4 408	4 276	4 169
Equity ratio (%):	54,2 %	55,7 %	49,4 %

Interim condensed cash flow statement Borregaard Group Q2 2016
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2016	2015	2016	2015	2015
Profit before taxes	207	125	368	225	506
Amortisation, depreciation and impairment charges	69	65	135	129	269
Change in net working capital, etc	204	-8	-39	-202	-106
Share of profit (dividend) from JV	-16	-19	-38	-18	-14
Taxes paid	-31	-17	-62	-70	-92
Cash flow from operating activities	433	146	364	64	563
Investments property, plant anf equipment and intangible assets 1)	-142	-106	-213	-159	-430
Other capital transactions	1	0	2	3	5
Cash flow from Investing activities	-141	-106	-211	-156	-425
Dividends	-149	-124	-149	-124	-124
Proceeds from exercise of share options	2	0	3	0	11
Buy-back of treasury shares	-9	0	-9	0	-5
Gain/(loss) on hedges for net investments in subsidiaries	18	33	29	-10	-76
Net paid to/from shareholders	-138	-91	-126	-134	-194
Proceeds from interest-bearing liabilities	100	100	100	100	100
Repayment of interest-bearing liabilities	-102	-2	-104	-4	-109
Change in interest-bearing receivables/other liabilities	-6	4	-15	-12	21
Change in net interest-bearing liablities	-8	102	-19	84	12
Cash flow from financing activities	-146	11	-145	-50	-182
Change in cash and cash equivalents	146	51	8	-142	-44
Cash and cash equivalents as of beginning of period	18	-8	169	168	168
Change in cash and cash equivalents	146	51	8	-142	-44
Currency effects cash and cash equivalents	-1	-7	-14	10	45
Cash and cash equivalents at the close of the period	163	36	163	36	169
1) Investment by category:
Replacement investments	95	69	129	100	246
Expansion investments	47	37	84	59	184

Quarterly segment information Borregaard Group

1.1-31.12 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard 3 838 3 886 992 993 1 003 951 3 939 1 007 1 054 1 069 1 034 4 164 1 113 1 167 2 280 Performance Chemicals 1 586 1 645 442 472 467 441 1 822 503 515 488 502 2 008 550 584 1 134 Specialty Cellulose 1 616 1 596 379 358 384 338 1 459 336 365 389 346 1 436 383 385 768 Other Businesses 715 664 175 171 158 178 682 176 183 199 197 755 190 206 396 Eliminations - 79 - 19 - 4 - 8 - 6 - 6 - 24 -8 -9 -7 -11 -35 -10 -8 -18 EBITDA adj. 1.1-31.12 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard 746 710 158 190 225 157 730 169 196 225 168 758 236 269 505 Performance Chemicals 265 314 89 109 122 90 410 117 134 117 106 474 146 147 293 Specialty Cellulose 374 326 56 58 83 51 248 30 39 79 45 193 76 91 167 Other Businesses 107 70 13 23 20 16 72 22 23 29 17 91 14 31 45 Depreciations and write downs 1.1-31.12 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard - 207 - 221 - 59 - 60 - 60 - 65 - 244 -64 -65 -65 -67 -261 -65 -69 -134 Performance Chemicals - 17 - 18 - 5 - 5 - 5 - 7 - 22 -6 -7 -6 -8 -27 -8 -7 -15 Specialty Cellulose - 75 - 82 - 22 - 21 - 21 - 21 - 85 -22 -21 -23 -23 -89 -23 -23 -46 Other Businesses - 115 - 121 - 32 - 34 - 34 - 37 - 137 -36 -37 -36 -36 -145 -34 -39 -73 EBITA adj. 1.1-31.12 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard 539 489 99 130 165 92 486 105 131 160 101 497 171 200 371 Performance Chemicals 248 296 84 104 117 83 388 111 127 111 98 447 138 140 278 Specialty Cellulose 299 244 34 37 62 30 163 8 18 56 22 104 53 68 121 Other Businesses - 8 - 51 - 19 - 11 - 14 - 21 - 65 -14 -14 -7 -19 -54 -20 -8 -28 Amortisation 1.1-31.12 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard - 3 - 2 0 0 0 0 0 0 0 0 -1 -1 -1 -1 -2 Performance Chemicals - 3 - 2 0 0 0 0 0 0 0 0 -1 -1 -1 -1 -2 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 1.1-31.03 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard -71 14 0 0 0 -30 -30 0 0 0 37 37 0 13 13 Performance Chemicals -57 -9 0 0 0 0 0 0 0 0 -9 -9 0 0 0 Specialty Cellulose -2 0 0 0 0 0 0 0 0 0 46 46 0 0 0 Other Businesses - 12 23 0 0 0 - 30 - 30 0 0 0 0 0 0 13 13 Operating profit (EBIT) 1.1-31.12 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 1.10-31.12 1.1-31.12 1.1-31.3 1.4-30.6 1.1-30.6 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 2 016 Borregaard 465 501 99 130 165 62 456 105 131 160 137 533 170 212 382 Performance Chemicals 188 285 84 104 117 83 388 111 127 111 88 437 137 139 276 Specialty Cellulose 297 244 34 37 62 30 163 8 18 56 68 150 53 68 121 Other Businesses - 20 - 28 - 19 - 11 - 14 - 51 - 95 -14 -14 -7 -19 -54 -20 5 -15
	Operating revenues

Quarterly segment information Borregaard Group

Hedging effects & currency exposure
	1.1-31.12	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	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.1-30.6
Amounts in NOK million	2012	2013	2014	2014	2014	2014	2014	2 015	2 015	2 015	2 015	2 015	2 016	2 016	2 016
Borregaard - EBITA hedging gains & losses Performance Chemicals	54 13	10 4	-17 -3	2 1	-3 -1	-33 -9	-51 -12	-70 -22	-54 -18	-55 -17	-62 -19	-241 -76	-43 -12	-24 -7	-67 -19
Specialty Cellulose	30	3	-11	1	-2	-20	-32	-40	-29	-28	-32	-129	-22	-11	-33
Other Businesses	11	3	-3	0	0	-4	-7	-8	-7	-10	-11	-36	-9	-6	-15
Borregaard - USD EBITA currency exposure (approx)	265	265					250					214
Borregaard - EUR EBITA currency exposure (approx)	105	96					89					78
Sales revenues
	1.1-31.12	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	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.1-30.6
Amounts in NOK million	2012	2013	2014	2014	2014	2014	2014	2 015	2 015	2 015	2 015	2 015	2 016	2 016	2 016
Borregaard	3 792	3 822	969	969	984	926	3 848	988	1 032	1 048	1 007	4 075	1 082	1 145	2 227
Performance Chemicals	1 548	1 612	430	461	455	433	1 779	492	499	474	487	1 952	531	569	1 100
Cellulose	1 522	1 483	345	331	354	314	1 344	312	343	365	319	1 339	345	363	708
Bioethanol	91	110	33	26	30	23	112	24	21	25	20	90	32	21	53
Fine Chemicals	243	193	56	40	42	47	185	46	55	60	56	217	54	68	122
Ingredients	297	323	79	84	81	84	328	83	82	92	94	351	89	88	177
Other	91	101	26	27	22	25	100	31	32	32	31	126	31	36	67
Performance Chemicals
	1.1-31.12	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	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.1-30.6
	2012	2013	2014	2014	2014	2014	2014	2 015	2 015	2 015	2 015	2 015	2 016	2 016	2 016
Average gross sales price NOK per mtds	3 435	3 953	4 522	4 385	4 528	4 740	4 539	5 744	5 393	5 424	5 459	5 500	5 669	5 191	5 411
Volume (`000 mtds)	501	462	109	117	113	107	446	99	108	100	103	410	107	122	229
High value % (share of total volum)	14 %	17 %					18 %					18 %
Medium value % (share of total volum)	70 %	71 %					70 %					70 %
Specialty Cellulose
	1.1-31.12	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	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6	1.1-30.6
	2012	2013	2014	2014	2014	2014	2014	2 015	2 015	2 015	2 015	2 015	2 016	2 016	2 016
Average gross sales price NOK per mt	9 949	9 343	9 065	8 711	9 187	9 660	9 144	9 337	8 894	9 881	10 176	9 546	10 150	9 912	10 029
Volume (`000 mt)	149,6	158,0	39,1	37,6	38,4	34,3	149,4	37,8	41,7	39,6	34,5	153,6	36,0	37,4	73,4
High specialised as % of total cellulose product sales volum	73 %	67 %					63 %					57 %