Borregaard — Interim / Quarterly Report 2016

Apr 27, 2016

Income Statement Borregaard Group Q1 2016
		1.1-31.3	1.1-31.12
Amounts in NOK million	2016	2015	2015
Operating revenues	1 113	1 007	4 164
Operating expenses	-877	-838	-3 406
EBITDA (adjusted)	236	169	758
Depreciations and write-downs of property, plant and equipment	-65	-64	-261
EBITA (adjusted)	171	105	497
Amortisation intangible assets	-1	0	-1
Other income and expenses	0	0	37
Operating profit	170	105	533
Financial items, net	-9	-5	-27
Profit/loss before taxes	161	100	506
Taxes	-41	-27	-122
Profit/loss for the period	120	73	384
Profit/loss attributable to non-controlling interests	-1	-1	-2
Profit/loss attributable to owners of the parent	121	74	386
Earnings per share (NOK)	1,21	0,74	3,86
EBITDA margin	21,2 %	16,8 %	18,2 %
EBITA margin	15,4 %	10,4 %	11,9 %

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

Interim condensed cash flow statement Borregaard Group Q1 2016
		1.1-31.3	1.1-31.12
Amounts in NOK million	2016	2015	2015
Profit before taxes	161	100	506
Amortisation, depreciation and impairment charges	66	64	269
Change in net working capital, etc	-243	-194	-106
Dividend (share of profit) from JV	-22	1	-14
Taxes paid	-31	-53	-92
Cash flow from operating activities	-69	-82	563
Investments property, plant and equipment and intangible assets 1)	-71	-53	-430
Other capital transactions	1	3	5
Cash flow from Investing activities	-70	-50	-425
Dividends	0	0	-124
Proceeds from exercise of share options	1	0	11
Buy-back of treasury shares	0	0	-5
Gain/(loss) on hedges for net investments in subsidiaries	11	-43	-76
Net paid to/from shareholders	12	-43	-194
Proceeds from interest-bearing liabilities	0	0	86
Repayment from interest-bearing liabilities	-9	-16	-72
Change in interest-bearing receivables	-2	-2	-2
Change in net interest-bearing liablities	-11	-18	12
Cash flow from financing activities	1	-61	-182
Change in cash and cash equivalents	-138	-193	-44
Cash and cash equivalents as of beginning of period	169	168	168
Change in cash and cash equivalents	-138	-193	-44
Currency effects cash and cash equivalents	-13	17	45
Cash and cash equivalents at the close of the period	18	-8	169
1) Investments by category:
Replacement investments	34	31	246
Expansion investments	37	22	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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard 3 838 3 886 992 993 1 003 951 3 939 1 007 1 054 1 069 1 034 4 164 1 113 Performance Chemicals 1 586 1 645 442 472 467 441 1 822 503 515 488 502 2 008 550 Specialty Cellulose 1 616 1 596 379 358 384 338 1 459 336 365 389 346 1 436 383 Other Businesses 715 664 175 171 158 178 682 176 183 199 197 755 190 Eliminations - 79 - 19 - 4 - 8 - 6 - 6 - 24 -8 -9 -7 -11 -35 -10 EBITDA adjusted 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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard 746 710 158 190 225 157 730 169 196 225 168 758 236 Performance Chemicals 265 314 89 109 122 90 410 117 134 117 106 474 146 Specialty Cellulose 374 326 56 58 83 51 248 30 39 79 45 193 76 Other Businesses 107 70 13 23 20 16 72 22 23 29 17 91 14 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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard - 207 - 221 - 59 - 60 - 60 - 65 - 244 -64 -65 -65 -67 -261 -65 Performance Chemicals - 17 - 18 - 5 - 5 - 5 - 7 - 22 -6 -7 -6 -8 -27 -8 Specialty Cellulose - 75 - 82 - 22 - 21 - 21 - 21 - 85 -22 -21 -23 -23 -89 -23 Other Businesses - 115 - 121 - 32 - 34 - 34 - 37 - 137 -36 -37 -36 -36 -145 -34 EBITA adjusted 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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard 539 489 99 130 165 92 486 105 131 160 101 497 171 Performance Chemicals 248 296 84 104 117 83 388 111 127 111 98 447 138 Specialty Cellulose 299 244 34 37 62 30 163 8 18 56 22 104 53 Other Businesses - 8 - 51 - 19 - 11 - 14 - 21 - 65 -14 -14 -7 -19 -54 -20 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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard - 3 - 2 0 0 0 0 0 0 0 0 -1 -1 -1 Performance Chemicals - 3 - 2 0 0 0 0 0 0 0 0 -1 -1 -1 Specialty Cellulose 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 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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard -71 14 0 0 0 -30 -30 0 0 0 37 37 0 Performance Chemicals -57 -9 0 0 0 0 0 0 0 0 -9 -9 0 Specialty Cellulose -2 0 0 0 0 0 0 0 0 0 46 46 0 Other Businesses - 12 23 0 0 0 - 30 - 30 0 0 0 0 0 0 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 Amounts in NOK million 2012 2013 2014 2014 2014 2014 2014 2015 2015 2015 2015 2015 2016 Borregaard 465 501 99 130 165 62 456 105 131 160 137 533 170 Performance Chemicals 188 285 84 104 117 83 388 111 127 111 88 437 137 Specialty Cellulose 297 244 34 37 62 30 163 8 18 56 68 150 53 Other Businesses - 20 - 28 - 19 - 11 - 14 - 51 - 95 -14 -14 -7 -19 -54 -20	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
Amounts in NOK million	2012	2013	2014	2014	2014	2014	2014	2015	2015	2015	2015	2015	2016
Borregaard - EBITA hedging gains & losses	54	10	-17	2	-3	-33	-51	-70	-54	-55	-62	-241	-43
Performance Chemicals	13	4	-3	1	-1	-9	-12	-22	-18	-17	-19	-76	-12
Specialty Cellulose	30	3	-11	1	-2	-20	-32	-40	-29	-28	-32	-129	-22
Other Businesses	11	3	-3	0	0	-4	-7	-8	-7	-10	-11	-36	-9
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
Amounts in NOK million	2012	2013	2014	2014	2014	2014	2014	2015	2015	2015	2015	2015	2016
Borregaard	3 792	3 822	969	969	984	926	3 848	988	1 032	1 048	1 007	4 075	1 082
Performance Chemicals	1 548	1 612	430	461	455	433	1 779	492	499	474	487	1 952	531
Cellulose	1 522	1 483	345	331	354	314	1 344	312	343	365	319	1 339	345
Bioethanol	91	110	33	26	30	23	112	24	21	25	20	90	32
Fine Chemicals	243	193	56	40	42	47	185	46	55	60	56	217	54
Ingredients	297	323	79	84	81	84	328	83	82	92	94	351	89
Other	91	101	26	27	22	25	100	31	32	32	31	126	31
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
	2012	2013	2014	2014	2014	2014	2014	2015	2015	2015	2015	2015	2016
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
Volume (`000 mtds)	501	462	109	117	113	107	446	99	108	100	103	410	107
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
	2012	2013	2014	2014	2014	2014	2014	2015	2015	2015	2015	2015	2016
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
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
High specialised as % of total cellulose product sales volum	73 %	67 %					63 %					57 %