Borregaard — Interim / Quarterly Report 2015

Feb 3, 2016

Income Statement Borregaard Group Q4 2015
		1.10-31.12	1.1-31.12
Amounts in NOK million	2015	2014	2015	2014
Operating revenues	1 034	951	4 164	3 939
Operating expenses	-866	-794	-3 406	-3 209
EBITDA (adjusted)	168	157	758	730
Depreciations and write-downs of property, plant and equipment	-67	-65	-261	-244
EBITA (adjusted)	101	92	497	486
Amortisation intangible assets	-1	0	-1	0
Other income and expenses	37	-30	37	-30
Operating profit	137	62	533	456
Financial items, net	-7	-3	-27	-26
Profit/loss before taxes	130	59	506	430
Taxes	-22	8	-122	-98
Profit/loss for the period	108	67	384	332
Profit/loss attributable to non-controlling interests	0	-1	-2	-2
Profit/loss attributable to owners of the parent	108	68	386	334
Earnings per share (NOK)	1,08	0,68	3,86	3,34
EBITDA margin	16,2 %	16,5 %	18,2 %	18,5 %
EBITA margin	9,8 %	9,7 %	11,9 %	12,3 %

Interim condensed statement of financial position Borregaard Group
	31.12.	30.9.	31.12.
Amounts in NOK million	2015	2015	2014
Assets:
Intangible assets	137	89	77
Property, plant and equipment	2 122	2 039	2 004
Investments in joint venture	106	103	106
Other assets	121	80	76
Non-current assets	2 486	2 311	2 263
Inventories	676	600	610
Receivables	838	866	707
Cash and cash deposits	169	125	168
Current assets	1 683	1 591	1 485
Total assets	4 169	3 902	3 748
Equity and debt:
Group equity	2 056	2 000	1 941
Non-controlling interests	5	6	8
Equity	2 061	2 006	1 949
Provisions and other non current liabilities	408	277	196
Interest-bearing liabilities	802	850	784
Non-current liabilities	1 210	1 127	980
Interest-bearing liabilities	9	9	8
Other liabilities	889	760	811
Current liabilities	898	769	819
Equity and liabilities	4 169	3 902	3 748
Equity ratio (%):	49,4 %	51,4 %	52,0 %

Interim condensed cash flow statement Borregaard Group Q4 2015
	1.10-31.12		1.1-31.12
Amounts in NOK million	2015	2014	2015	2014
Profit before taxes	130	59	506	430
Amortisation, depreciation and impairment charges	75	65	269	244
Change in net working capital, etc	122	136	-106	59
Dividend (share of profit) from JV	-12	-2	-14	6
Taxes paid	-14	-13	-92	-139
Cash flow from operating activities	301	245	563	600
Investments property, plant anf equipment and intangible assets 1)	-200	-151	-430	-313
Other capital transactions	0	0	5	2
Cash flow from Investing activities	-200	-151	-425	-311
Dividends	0	0	-124	-109
Proceeds from exercise of share options	11	4	11	48
Buy-back of treasury shares	-5	-14	-5	-76
Gain/(loss) on hedges for net investments in subsidiaries	-26	-68	-76	-72
Net paid to/from shareholders	-20	-78	-194	-209
Change in interest-bearing liabilities	-49	33	14	6
Change in interest-bearing receivables	0	1	-2	-3
Change in net interest-bearing liablities	-49	34	12	3
Cash flow from financing activities	-69	-44	-182	-206
Change in cash and cash equivalents	32	50	-44	83
Cash and cash equivalents as of beginning of period	125	79	168	39
Change in cash and cash equivalents	32	50	-44	83
Currency effects cash and cash equivalents	12	39	45	46
Cash and cash equivalents at the close of the period	169	168	169	168
Replacement investments	90	124	246	228
Expansion investments	110	27	184	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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	3 763	3 838	950	952	1 016	968	3 886	992	993	1 003	951	3 939	1 007	1 054	1 069	1 034	4 164
Performance Chemicals	1 448	1 586	391	418	416	420	1 645	442	472	467	441	1 822	503	515	488	502	2 008
Specialty Cellulose	1 644	1 616	407	374	435	380	1 596	379	358	384	338	1 459	336	365	389	346	1 436
Other Businesses	749	715	154	164	169	177	664	175	171	158	178	682	176	183	199	197	755
Eliminations	- 78	- 79	- 2	- 4	- 4	- 9	- 19	-4	-8	-6	-6	-24	-8	-9	-7	-11	-35
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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	715	746	162	190	214	144	710	158	190	225	157	730	169	196	225	168	758
Performance Chemicals	226	265	63	88	86	77	314	89	109	122	90	410	117	134	117	106	474
Specialty Cellulose	390	374	91	72	101	62	326	56	58	83	51	248	30	39	79	45	193
Other Businesses	99	107	8	30	27	5	70	13	23	20	16	72	22	23	29	17	91
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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	- 187	- 207	- 53	- 53	- 57	- 58	- 221	-59	-60	-60	-65	-244	-64	-65	-65	-67	-261
Performance Chemicals	- 19	- 17	- 4	- 4	- 5	- 5	- 18	-5	-5	-5	-7	-22	-6	-7	-6	-8	-27
Specialty Cellulose	- 66	- 75	- 20	- 21	- 18	- 23	- 82	-22	-21	-21	-21	-85	-22	-21	-23	-23	-89
Other Businesses	- 102	- 115	- 29	- 28	- 34	- 30	- 121	-32	-34	-34	-37	-137	-36	-37	-36	-36	-145
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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	528	539	109	137	157	86	489	99	130	165	92	486	105	131	160	101	497
Performance Chemicals	207	248	59	84	81	72	296	84	104	117	83	388	111	127	111	98	447
Specialty Cellulose	324	299	71	51	83	39	244	34	37	62	30	163	8	18	56	22	104
Other Businesses	- 3	- 8	- 21	2	- 7	- 25	- 51	-19	-11	-14	-21	-65	-14	-14	-7	-19	-54
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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	- 6	- 3	0	- 1	0	- 1	- 2	0	0	0	0	0	0	0	0	-1	-1
Performance Chemicals	- 6	- 3	0	- 1	0	- 1	- 2	0	0	0	0	0	0	0	0	-1	-1
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
	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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	0	-71	0	0	14	0	14	0	0	0	-30	-30	0	0	0	37	37
Performance Chemicals	0	-57	0	0	-9	0	-9	0	0	0	0	0	0	0	0	-9	-9
Specialty Cellulose	0	-2	0	0	0	0	0	0	0	0	0	0	0	0	0	46	46
Other Businesses	0	- 12	0	0	23	0	23	0	0	0	-30	-30	0	0	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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	522	465	109	136	171	85	501	99	130	165	62	456	105	131	160	137	533
Performance Chemicals	201	188	59	83	72	71	285	84	104	117	83	388	111	127	111	88	437
Specialty Cellulose	324	297	71	51	83	39	244	34	37	62	30	163	8	18	56	68	150
Other Businesses	- 3	- 20	- 21	2	16	- 25	- 28	-19	-11	-14	-51	-95	-14	-14	-7	-19	-54

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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard - EBITA hedging gains & losses	108	54	24	13	-7	-20	10	-17	2	-3	-33	-51	-70	-54	-55	-62	-241
Performance Chemicals	28	13	6	3	-1	-4	4	-3	1	-1	-9	-12	-22	-18	-17	-19	-76
Specialty Cellulose	60	30	14	7	-5	-13	3	-11	1	-2	-20	-32	-40	-29	-28	-32	-129
Other Businesses	20	11	4	3	-1	-3	3	-3	0	0	-4	-7	-8	-7	-10	-11	-36
Borregaard - USD EBITA currency exposure (approx)	215	265					265					250					214
Borregaard - EUR EBITA currency exposure (approx)	115	105					96					89					78
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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
Borregaard	3 714	3 792	937	934	1 000	951	3 822	969	969	984	926	3 848	988	1 032	1 048	1 007	4 075
Performance Chemicals	1 413	1 548	385	410	407	410	1 612	430	461	455	433	1 779	492	499	474	487	1 952
Cellulose	1 554	1 522	378	340	415	350	1 483	345	331	354	314	1 344	312	343	365	319	1 339
Bioethanol	87	91	29	33	19	29	110	33	26	30	23	112	24	21	25	20	90
Fine Chemicals	193	243	45	56	44	48	193	56	40	42	47	185	46	55	60	56	217
Ingredients	360	297	75	70	89	89	323	79	84	81	84	328	83	82	92	94	351
Other	107	91	25	25	26	25	101	26	27	22	25	100	31	32	32	31	126
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	1.1-31.03	1.4-30.6		1.7-30.9 1.10-31.12	1.1-31.12
	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
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	5 424	5 459	5 500
Volume (`000 mtds)	472	501	106	126	119	111	462	109	117	113	107	446	99	108	100	103	410
High value % (share of total volum)	14 %	14 %					17 %					18 %					18 %
Medium value % (share of total volum)	70 %	70 %					71 %					70 %					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	1.1-31.03	1.4-30.6		1.7-30.9 1.10-31.12	1.1-31.12
	2011	2012	2013	2013	2013	2013	2013	2 014	2 014	2 014	2 014	2 014	2 015	2 015	2 015	2 015	2 015
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	9 881	10 176	9 546
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	39,6	34,5	153,6
High specialised as % of total cellulose product sales volum	85 %	73 %					67 %					63 %					57 %