Borregaard — Interim / Quarterly Report 2017

Oct 24, 2017

Income Statement Borregaard Group Q3 2017
		1.7-30.9	1.1-30.09		1.1-31.12
Amounts in NOK million	2017	2016	2017	2016	2016
Operating revenues	1 089	1 102	3 481	3 382	4 492
Operating expenses	-817	-819	-2 617	-2 594	-3 471
EBITDA adj.	272	283	864	788	1 021
Depreciation property, plant and equipment	-75	-67	-224	-201	-274
EBITA adj.	197	216	640	587	747
Amortisation intangible assets	-1	-1	-3	-3	-4
Other income and expenses	0	0	0	13	13
Operating profit	196	215	637	597	756
Financial items, net	-6	-10	-11	-24	-32
Profit before taxes	190	205	626	573	724
Income tax expence	-45	-49	-153	-143	-171
Profit for the period	145	156	473	430	553
Profit attributable to non-controlling interests	-2	-1	-3	-2	-2
Profit attributable to owners of the parent	147	157	476	432	555
Earnings per share (NOK)	1,47	1,57	4,76	4,32	5,55
EBITDA adj. margin EBITA adj. margin	25,0 % 18,1 %	25,7 % 19,6 %	24,8 % 18,4 %	23,3 % 17,4 %	22,7 % 16,6 %

Interim condensed statement of financial position Borregaard Group
	30.9.	30.6.	31.12.
Amounts in NOK million	2017	2017	2016
Assets:
Intangible assets	112	118	125
Property, plant and equipment	2 858	2 692	2 471
Other assets	165	97	115
Investments in joint venture	116	127	121
Non-current assets	3 251	3 034	2 832
Inventories	712	661	626
Receivables	899	1 066	948
Cash and cash deposits	199	75	265
Current assets	1 810	1 802	1 839
Total assets	5 061	4 836	4 671
Equity and debt:
Group equity	2 923	2 642	2 679
Non-controlling interests	78	81	34
Equity	3 001	2 723	2 713
Provisions and other liabilities	298	288	299
Interest-bearing liabilities	775	765	525
Non-current liabilities	1 073	1 053	824
Interest-bearing liabilities	71	106	61
Other current liabilities	916	954	1 073
Current liabilities	987	1 060	1 134
Equity and liabilities	5 061	4 836	4 671
Equity ratio (%):	59,3 %	56,3 %	58,1 %

Interim condensed cash flow statement Borregaard Group Q3 2017
		1.7-30.9	1.1-30.09	1.1-31.12
Amounts in NOK million	2017	2016	2017	2016	2016
Profit before taxes	190	205	626	573	724
Amortisation, depreciation and impairment charges	76	69	227	204	278
Change in net working capital, etc	101	48	-172	9	170
Dividend (share of profit) from JV	1	31	-2	-7	-1
Taxes paid	-4	-14	-75	-76	-90
Cash flow from operating activities	364	339	604	703	1 081
Investments property, plant and equipment and intangible assets *	-255	-115	-629	-328	-622
Other capital transactions Cash flow from Investing activities	1 -254	1 -114	8 -621	3 -325	5 -617
Dividends	0	0	-349	-149	-149
Proceeds from exercise of options/shares to employees	0	2	11	5	7
Buy-back of shares	0	-1	-29	-10	-10
Gain/(loss) on hedges for net investments in subsidiaries	45	16	43	45	13
Net paid to/from shareholders	45	17	-324	-109	-139
Proceeds from interest-bearing liabilities	117	0	380	100	106
Repayment from interest-bearing liabilities	-103	-3	-132	-107	-309
Change in interest-bearing receivables/other liabilities	-4	-11	34	-26	-23
Change in net interest-bearing liablities	10	-14	282	-33	-226
Cash flow from financing activities	55	3	-42	-142	-365
Change in cash and cash equivalents	165	228	-59	236	99
Cash and cash equivalents at beginning of period	43	163	265	169	169
Change in cash and cash equivalents	165	228	-59	236	99
Currency effects cash and cash equivalents	-10	-6	-8	-20	-3
Cash and cash equivalents at the end of the period	198	385	198	385	265
* Investment by category:
Replacement investments	76	65	200	194	358
Expansion investments	179	50	429	134	264

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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	3 886	3 939	1 007	1 054	1 069	1034	4 164	1 113	1 167	1 102	1 110	4 492	1 136	1 256	1 089	3 481
Performance Chemicals	1 645	1 822	503	515	488	502	2 008	550	584	515	512	2 161	550	582	523	1 655
Speciality Cellulose	1 596	1 459	336	365	389	346	1 436	383	385	416	406	1 590	412	468	383	1 263
Other Businesses	664	682	176	183	199	197	755	190	206	179	201	776	183	213	197	593
Eliminations	- 19	- 24	- 8	- 9	- 7	- 11	- 35	-10	-8	-8	-9	-35	-9	-7	-14	-30
EBITDA adj.
	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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	710	730	169	196	225	168	758	236	269	283	233	1 021	274	318	272	864
Performance Chemicals	314	410	117	134	117	106	474	146	147	141	115	549	141	151	111	403
Speciality Cellulose	326	248	30	39	79	45	193	76	91	105	72	344	112	127	114	353
Other Businesses	70	72	22	23	29	17	91	14	31	37	46	128	21	40	47	108
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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	- 221	- 244	- 64	- 65	- 65	- 67	- 261	-65	-69	-67	-73	-274	-74	-75	-75	-224
Performance Chemicals	- 18	- 22	- 6	- 7	- 6	- 8	- 27	-8	-7	-9	-8	-32	-9	-10	-11	-30
Speciality Cellulose	- 82	- 85	- 22	- 21	- 23	- 23	- 89	-23	-23	-23	-25	-94	-23	-24	-23	-70
Other Businesses	- 121	- 137	- 36	- 37	- 36	- 36	- 145	-34	-39	-35	-40	-148	-42	-41	-41	-124
EBITA adj.
	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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	489	486	105	131	160	101	497	171	200	216	160	747	200	243	197	640
Performance Chemicals	296	388	111	127	111	98	447	138	140	132	107	517	132	141	100	373
Speciality Cellulose	244	163	8	18	56	22	104	53	68	82	47	250	89	103	91	283
Other Businesses	- 51	- 65	- 14	- 14	- 7	- 19	- 54	-20	-8	2	6	-20	-21	-1	6	-16
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	1.1-31.3	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	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	- 2	0	0	0	0	- 1	- 1	-1	-1	-1	-1	-4	-1	-1	-1	-3
Performance Chemicals	- 2	0	0	0	0	- 1	- 1	-1	-1	-1	-1	-4	-1	-1	-1	-3
Speciality Cellulose	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
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	1.1-31.3	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	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	14	-30	0	0	0	37	37	0	13	0	0	13	0	0	0	0
Performance Chemicals	-9	0	0	0	0	-9	-9	0	0	0	0	0	0	0	0	0
Speciality Cellulose	0	0	0	0	0	46	46	0	73	0	0	73	0	0	0	0
Other Businesses	23	- 30	0	0	0	0	0	0	-60	0	0	-60	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	1.1-31.3	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	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	501	456	105	131	160	137	533	170	212	215	159	756	199	242	196	637
Performance Chemicals	285	388	111	127	111	88	437	137	139	131	106	513	131	140	99	370
Speciality Cellulose	244	163	8	18	56	68	150	53	141	82	47	323	89	103	91	283
Other Businesses	- 28	- 95	- 14	- 14	- 7	- 19	- 54	-20	-68	2	6	-80	-21	-1	6	-16

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	1.1-31.3	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	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard - EBITA hedging gains & losses	10	-51	-70	-54	-55	-62	-241	-43	-24	-24	-24	-115	-22	-35	-5	-62
Performance Chemicals	4	-12	-22	-18	-17	-19	-76	-12	-7	-7	-6	-32	-6	-12	0	-18
Speciality Cellulose	3	-32	-40	-29	-28	-32	-129	-22	-11	-13	-13	-59	-10	-17	-3	-30
Other Businesses	3	-7	-8	-7	-10	-11	-36	-9	-6	-4	-5	-24	-6	-6	-2	-14
Borregaard - USD EBITA currency exposure (approx)	265	250					214					208
Borregaard - EUR EBITA currency exposure (approx)	96	89					78					92
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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
Amounts in NOK million	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Borregaard	3 822	3 848	988	1 032	1 048	1 007	4 075	1 082	1 145	1 076	1 088	4 391	1 110	1 225	1 071	3 406
Performance Chemicals	1 612	1 779	492	499	474	487	1 952	531	569	494	500	2 094	535	566	508	1 609
Cellulose	1 483	1 344	312	343	365	319	1 339	345	363	388	376	1 472	379	432	357	1 168
Bioethanol	110	112	24	21	25	20	90	32	21	29	28	110	30	28	26	84
Fine Chemicals	193	185	46	55	60	56	217	54	68	47	84	253	49	85	56	190
Ingredients	323	328	83	82	92	94	351	89	88	87	71	335	86	83	94	263
Other	101	100	31	32	32	31	126	31	36	31	29	127	31	31	30	92
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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Average gross sales price NOK per mtds	3 953	4 539	5 744	5 393	5 424	5 459	5 500	5 669	5 191	5 196	5 272	5 331	5 598	5 317	5 007	5 301
Volume (`000 mtds)	462	446	99	108	100	103	410	107	122	108	106	443	106	118	112	336
Specialities % (share of total volum)	17 %	18 %					19 %					18 %
Contruction % (share of total volum)	56 %	53 %					52 %					48 %
Miscellaneous % (share of total volum)	27 %	29 %					29 %					34 %
Speciality 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	1.1-31.3	1.4-30.6	1.7-30.9	1.1-30.9
	2013	2014	2015	2015	2015	2015	2015	2 016	2 016	2 016	2 016	2 016	2 017	2 017	2017	2017
Average gross sales price NOK per mt	9 343	9 144	9 337	8 894	9 881	10 176	9 546	10 150	9 912	9 830	10 068	9 986	10 555	10 889	10 524	10 667
Volume (`000 mt)	158,0	149,4	37,8	41,7	39,6	34,5	153,6	36,0	37,4	40,6	38,3	152,3	36,6	40,5	34,4	111,5
High specialised as % of total cellulose product sales volum	67 %	63 %					57 %					64 %