Borregaard — Interim / Quarterly Report 2016

Feb 10, 2017

Income Statement Borregaard Group Q4 2016
		1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2015	2016	2015
Operating revenues	1 110	1 034	4 492	4 164
Operating expenses	-877	-866	-3 471	-3 406
EBITDA adj.	233	168	1 021	758
Depreciation property, plant and equipment	-73	-67	-274	-261
EBITA adj.	160	101	747	497
Amortisation intangible assets	-1	-1	-4	-1
Other income and expenses	0	37	13	37
Operating profit	159	137	756	533
Financial items, net	-8	-7	-32	-27
Profit before taxes	151	130	724	506
Income tax expence	-28	-22	-171	-122
Profit for the period	123	108	553	384
Profit attributable to non-controlling interests	0	0	-2	-2
Profit attributable to owners of the parent	123	108	555	386
Earnings per share (NOK)	1,23	1,08	5,55	3,86
EBITDA adj. margin	21,0 %	16,2 %	22,7 %	18,2 %
EBITA adj. margin	14,4 %	9,8 %	16,6 %	11,9 %

Interim condensed statement of financial position Borregaard Group
	31.12.	30.9.	31.12.
Amounts in NOK million	2016	2016	2015
Assets:
Intangible assets	125	123	137
Property, plant and equipment	2 471	2 243	2 122
Other assets	115	176	121
Investments in joint venture	121	118	106
Non-current assets	2 832	2 660	2 486
Inventories	626	660	676
Receivables	948	938	838
Cash and cash deposits	265	385	169
Current assets	1 839	1 983	1 683
Total assets	4 671	4 643	4 169
Equity and debt:
Group equity	2 679	2 677	2 056
Non-controlling interests	34	4	5
Equity	2 713	2 681	2 061
Provisions and other liabilities	299	312	408
Interest-bearing liabilities	525	769	802
Non-current liabilities	824	1 081	1 210
Interest-bearing liabilities	61	9	9
Other current liabilities	1 073	872	889
Current liabilities	1 134	881	898
Equity and liabilities	4 671	4 643	4 169
Equity ratio (%):	58,1 %	57,7 %	49,4 %

Interim condensed cash flow statement Borregaard Group Q4 2016
		1.10-31.12	1.1-31.12
Amounts in NOK million	2016	2015	2016	2015
Profit before taxes	151	130	724	506
Amortisation, depreciation and impairment charges	74	75	278	269
Change in net working capital, etc	161	122	170	-106
Dividend (share of profit) from JV	6	-12	-1	-14
Taxes paid	-14	-14	-90	-92
Cash flow from operating activities	378	301	1 081	563
Investments property, plant and equipment and intangible assets *	-294	-200	-622	-430
Other capital transactions	2	0	5	5
Cash flow from Investing activities	-292	-200	-617	-425
Dividends	0	0	-149	-124
Proceeds from exercise of share options	2	11	7	11
Buy-back of shares	0	-5	-10	-5
Gain/(loss) on hedges for net investments in subsidiaries	-32	-26	13	-76
Net paid to/from shareholders	-30	-20	-139	-194
Proceeds from interest-bearing liabilities	6	0	106	100
Repayment of interest-bearing liabilities	-202	-53	-309	-109
Change in interest-bearing receivables/other liabilities	3	4	-23	21
Change in net interest-bearing liablities	-193	-49	-226	12
Cash flow from financing activities	-223	-69	-365	-182
Change in cash and cash equivalents	-137	32	99	-44
Cash and cash equivalents at beginning of period	385	125	169	168
Change in cash and cash equivalents	-137	32	99	-44
Currency effects cash and cash equivalents	17	12	-3	45
Cash and cash equivalents at the close of the period	265	169	265	169
* Investment by category:
Replacement investments	164	90	358	246
Expansion investments	130	110	264	184

Quarterly segment information Borregaard Group

Operating 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		1.7-30.9 1.10-31.12	1.1-31.12
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	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	1 102	1 110	4 492
Performance Chemicals	1 586	1 645	442	472	467	441	1 822	503	515	488	502	2 008	550	584	515	512	2 161
Speciality Cellulose	1 616	1 596	379	358	384	338	1 459	336	365	389	346	1 436	383	385	416	406	1 590
Other Businesses	715	664	175	171	158	178	682	176	183	199	197	755	190	206	179	201	776
Eliminations	- 79	- 19	- 4	- 8	- 6	- 6	- 24	-8	-9	-7	-11	-35	-10	-8	-8	-9	-35
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		1.7-30.9 1.10-31.12	1.1-31.12
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	2 016	2 016
Borregaard	746	710	158	190	225	157	730	169	196	225	168	758	236	269	283	233	1 021
Performance Chemicals	265	314	89	109	122	90	410	117	134	117	106	474	146	147	141	115	549
Speciality Cellulose	374	326	56	58	83	51	248	30	39	79	45	193	76	91	105	72	344
Other Businesses	107	70	13	23	20	16	72	22	23	29	17	91	14	31	37	46	128
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		1.7-30.9 1.10-31.12	1.1-31.12
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	2 016	2 016
Borregaard	- 207	- 221	- 59	- 60	- 60	- 65	- 244	-64	-65	-65	-67	-261	-65	-69	-67	-73	-274
Performance Chemicals	- 17	- 18	- 5	- 5	- 5	- 7	- 22	-6	-7	-6	-8	-27	-8	-7	-9	-8	-32
Speciality Cellulose	- 75	- 82	- 22	- 21	- 21	- 21	- 85	-22	-21	-23	-23	-89	-23	-23	-23	-25	-94
Other Businesses	- 115	- 121	- 32	- 34	- 34	- 37	- 137	-36	-37	-36	-36	-145	-34	-39	-35	-40	-148
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		1.7-30.9 1.10-31.12	1.1-31.12
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	2 016	2 016
Borregaard	539	489	99	130	165	92	486	105	131	160	101	497	171	200	216	160	747
Performance Chemicals	248	296	84	104	117	83	388	111	127	111	98	447	138	140	132	107	517
Speciality Cellulose	299	244	34	37	62	30	163	8	18	56	22	104	53	68	82	47	250
Other Businesses	- 8	- 51	- 19	- 11	- 14	- 21	- 65	-14	-14	-7	-19	-54	-20	-8	2	6	-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	1.4-30.6		1.7-30.9 1.10-31.12	1.1-31.12
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	2 016	2 016
Borregaard	- 3	- 2	0	0	0	0	0	0	0	0	-1	-1	-1	-1	-1	-1	-4
Performance Chemicals	- 3	- 2	0	0	0	0	0	0	0	0	-1	-1	-1	-1	-1	-1	-4
Speciality 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	1.1-31.03	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		1.7-30.9 1.10-31.12	1.1-31.12
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	2 016	2 016
Borregaard	-71	14	0	0	0	-30	-30	0	0	0	37	37	0	13	0	0	13
Performance Chemicals	-57	-9	0	0	0	0	0	0	0	0	-9	-9	0	0	0	0	0
Speciality Cellulose	-2	0	0	0	0	0	0	0	0	0	46	46	0	73	0	0	73
Other Businesses	- 12	23	0	0	0	- 30	- 30	0	0	0	0	0	0	-60	0	0	-60
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		1.7-30.9 1.10-31.12	1.1-31.12
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	2 016	2 016
Borregaard	465	501	99	130	165	62	456	105	131	160	137	533	170	212	215	159	756
Performance Chemicals	188	285	84	104	117	83	388	111	127	111	88	437	137	139	131	106	513
Speciality Cellulose	297	244	34	37	62	30	163	8	18	56	68	150	53	141	82	47	323
Other Businesses	- 20	- 28	- 19	- 11	- 14	- 51	- 95	-14	-14	-7	-19	-54	-20	-68	2	6	-80

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		1.7-30.9 1.10-31.12	1.1-31.12
Amounts in NOK million Borregaard - EBITA hedging gains & losses	2012 54	2013 10	2014 -17	2014 2	2014 -3	2014 -33	2014 -51	2 015 -70	2 015 -54	2 015 -55	2 015 -62	2 015 -241	2 016 -43	2 016 -24	2 016 -24	2 016 -24	2 016 -115
Performance Chemicals	13	4	-3	1	-1	-9	-12	-22	-18	-17	-19	-76	-12	-7	-7	-6	-32
Speciality Cellulose	30	3	-11	1	-2	-20	-32	-40	-29	-28	-32	-129	-22	-11	-13	-13	-59
Other Businesses	11	3	-3	0	0	-4	-7	-8	-7	-10	-11	-36	-9	-6	-4	-5	-24
Borregaard - USD EBITA currency exposure (approx)	265	265					250					214					208
Borregaard - EUR EBITA currency exposure (approx)	105	96					89					78					92
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		1.7-30.9 1.10-31.12	1.1-31.12
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	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	1 076	1 088	4 391
Performance Chemicals	1 548	1 612	430	461	455	433	1 779	492	499	474	487	1 952	531	569	494	500	2 094
Cellulose	1 522	1 483	345	331	354	314	1 344	312	343	365	319	1 339	345	363	388	376	1 472
Bioethanol	91	110	33	26	30	23	112	24	21	25	20	90	32	21	29	28	110
Fine Chemicals	243	193	56	40	42	47	185	46	55	60	56	217	54	68	47	84	253
Ingredients	297	323	79	84	81	84	328	83	82	92	94	351	89	88	87	71	335
Other	91	101	26	27	22	25	100	31	32	32	31	126	31	36	31	29	127
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		1.7-30.9 1.10-31.12	1.1-31.12
	2012	2013	2014	2014	2014	2014	2014	2 015	2 015	2 015	2 015	2 015	2 016	2 016	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	5 196	5 272	5 331
Volume (`000 mtds)	501	462	109	117	113	107	446	99	108	100	103	410	107	122	108	106	443
Specialities % (share of total volum)	14 %	17 %					18 %					19 %					18 %
Contruction % (share of total volum)	56 %	56 %					53 %					52 %					48 %
Miscellaneous % (share of total volum)	30 %	27 %					29 %					29 %					34 %
Speciality 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		1.7-30.9 1.10-31.12	1.1-31.12
	2012	2013	2014	2014	2014	2014	2014	2 015	2 015	2 015	2 015	2 015	2 016	2 016	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	9 830	10 068	9 986
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	40,6	38,3	152,3
High specialised as % of total cellulose product sales volum	73 %	67 %					63 %					57 %					64 %

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 1.7-30.9 1.10-31.12 1.1-31.12 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 2 016 2 016
Borregaard - EBITA hedging gains & losses 54 10 -17 2 -3 -33 -51 -70 -54 -55 -62 -241 -43 -24 -24 -24 -115 Performance Chemicals 13 4 -3 1 -1 -9 -12 -22 -18 -17 -19 -76 -12 -7 -7 -6 -32
Speciality Cellulose 30 3 -11 1 -2 -20 -32 -40 -29 -28 -32 -129 -22 -11 -13 -13 -59
Other Businesses 11 3 -3 0 0 -4 -7 -8 -7 -10 -11 -36 -9 -6 -4 -5 -24
Borregaard - USD EBITA currency exposure (approx) 265 265 250 214 208
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 1.7-30.9 1.10-31.12 1.1-31.12
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 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 1 076 1 088 4 391
Performance Chemicals 1 548 1 612 430 461 455 433 1 779 492 499 474 487 1 952 531 569 494 500 2 094
Cellulose 1 522 1 483 345 331 354 314 1 344 312 343 365 319 1 339 345 363 388 376 1 472
Bioethanol 91 110 33 26 30 23 112 24 21 25 20 90 32 21 29 28 110
Fine Chemicals 243 193 56 40 42 47 185 46 55 60 56 217 54 68 47 84 253
Ingredients 297 323 79 84 81 84 328 83 82 92 94 351 89 88 87 71 335
Other 91 101 26 27 22 25 100 31 32 32 31 126 31 36 31 29 127
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 1.7-30.9 1.10-31.12 1.1-31.12
2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 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 5 196 5 272 5 331
Volume (`000 mtds) 501 462 109 117 113 107 446 99 108 100 103 410 107 122 108 106 443
Specialities % (share of total volum) 14 % 17 % 18 % 19 % 18 %
Contruction % (share of total volum) 56 % 56 % 53 % 52 % 48 %
Miscellaneous % (share of total volum) 30 % 27 % 29 % 29 % 34 %
Speciality 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 1.7-30.9 1.10-31.12 1.1-31.12
2012 2013 2014 2014 2014 2014 2014 2 015 2 015 2 015 2 015 2 015 2 016 2 016 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 9 830 10 068 9 986
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 40,6 38,3 152,3 High specialised as % of total cellulose product sales volum 73 % 67 % 63 % 57 % 64 %