Borregaard — Interim / Quarterly Report 2024

Jul 17, 2024

Income Statement Borregaard Group Q2 2024
		1.4-30.6		1.1-30.6	1.1-31.12
Amounts in NOK million	2024	2023	2024	2023	2023
Operating revenues	1 949	1 963	3 924	3 813	7 132
Operating expenses	-1 439	-1 426	-2 972	-2 841	-5 351
EBITDA	510	537	952	972	1 781
Depreciation property, plant and equipment	-134	-116	-267	-230	-485
Amortisation intangible assets	-2	-2	-3	-3	-5
Operating profit	374	419	682	739	1 291
Financial items, net	-52	-40	-99	-68	-167
Profit before taxes	322	379	583	671	1 124
Income tax expence	-77	-91	-138	-162	-268
Profit for the period	245	288	445	509	856
Profit attributable to non-controlling interests	1	5	1	-5	-14
Profit attributable to owners of the parent	244	283	444	514	870
Earnings per share (NOK)	2,45	2,84	4,45	5,16	8,73
EBITDA margin	26,2 %	27,4 %	24,3 %	25,5 %	25,0 %

Interim condensed statement of financial position Borregaard Group
	30.6.	31.3.	31.12.
Amounts in NOK million	2024	2024	2023
Assets:
Intangible assets	76	82	84
Property, plant and equipment	4 782	4 728	4 661
Right-of-use assets	497	524	527
Other assets	390	362	437
Investments in joint venture/associate companies	278	286	289
Non-current assets	6 023	5 982	5 998
Inventories	1 356	1 348	1 447
Receivables	1 494	1 753	1 201
Cash and cash deposits	311	200	469
Current assets	3 161	3 301	3 117
Total assets	9 184	9 283	9 115
Equity and debt:
Group equity	4 907	4 835	4 855
Non-controlling interests	42	42	39
Equity	4 949	4 877	4 894
Provisions and other liabilities	366	441	401
Interest-bearing liabilities	2 005	2 043	2 016
Non-current liabilities	2 371	2 484	2 417
Interest-bearing liabilities	478	330	246
Other current liabilities	1 386	1 592	1 558
Current liabilities	1 864	1 922	1 804
Equity and liabilities	9 184	9 283	9 115
Equity ratio (%):	53,9 %	52,5 %	53,7 %

Interim condensed cash flow statement Borregaard Group Q2 2024
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2024	2023	2024	2023	2023
Profit before taxes	322	379	583	671	1 124
Amortisation, depreciation and impairment charges	136	118	270	233	490
Change in net working capital, etc	194	19	-272	-174	205
Dividend/share of profit from JV & associate companies	7	2	10	8	9
Taxes paid	-113	-107	-228	-216	-265
Cash flow from operating activities	546	411	363	522	1 563
Investments property, plant and equipment and intangible assets *	-172	-137	-287	-244	-667
Investment in associate companies & bio-based start-ups*	0	-124	0	-124	-171
Other capital transactions	4	3	7	5	9
Cash flow from Investing activities	-168	-258	-280	-363	-829
Dividends	-374	-324	-374	-324	-324
Proceeds from exercise of options/shares to employees	15	4	50	45	49
Buy-back of treasury shares	-28	-8	-56	-49	-92
Gain/(loss) on hedges for net investments in subsidiaries	10	-30	-40	-88	-38
Net paid to/from shareholders	-377	-358	-420	-416	-405
Proceeds from interest-bearing liabilities	500	800	500	800	800
Repayment of interest-bearing liabilities	-357	-446	-424	-460	-843
Change in interest-bearing liabilities/other instruments	-6	19	30	60	33
Change in net interest-bearing liablities	137	373	106	400	-10
Cash flow from financing activities	-240	15	-314	-16	-415
Change in cash and cash equivalents	138	168	-231	143	319
Cash and cash equivalents at beginning of period	81	105	429	111	111
Change in cash and cash equivalents	138	168	-231	143	319
Currency effects cash and cash equivalents	-7	5	14	24	-1
Cash and cash equivalents at the close of the period	212	278	212	278	429
* Investment by category:
Replacement investments	137	103	232	190	550
Expansion investments including investment in associate companies and bio-based start-ups	35	158	55	178	288
Total investments including investment in associate companies and bio-based start-ups	172	261	287	368	838

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	1.1-30.6
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	5 328	5 805	1 615	1 744	1 752	1 770	6 881	1 850	1 963	1 714	1 605	7 132	1 975	1 949	3 924
BioSolutions	3 082	3 469	948	1098	1007	997	4 050	995	1 087	956	906	3 944	1 088	1 117	2 205
BioMaterials	1 732	1 878	532	540	558	620	2 250	684	661	568	526	2 439	704	622	1 326
Fine Chemicals	543	491	143	119	200	170	632	180	227	199	180	786	192	223	415
Eliminations	- 29	- 33	- 8	- 13	- 13	- 17	- 51	-9	-12	-9	-7	-37	-9	-13	-22
EBITDA
	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	1.1-30.6
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	1 132	1 372	400	445	434	364	1 643	435	537	482	327	1 781	442	510	952
BioSolutions	632	942	261	305	261	159	986	224	284	235	172	915	264	318	582
BioMaterials	318	284	97	91	101	138	427	127	143	161	103	534	111	90	201
Fine Chemicals	182	146	42	49	72	67	230	84	110	86	52	332	67	102	169
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	1.1-30.6
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	- 443	- 416	- 108	- 110	- 112	- 114	- 444	-114	-116	-121	-134	-485	-133	-134	-267
BioSolutions	- 206	- 189	- 50	- 53	- 54	- 55	- 212	-56	-56	-60	-71	-243	-69	-69	-138
BioMaterials	- 203	- 193	- 49	- 48	- 49	- 49	- 195	-49	-49	-51	-51	-200	-53	-54	-107
Fine Chemicals	- 34	- 34	- 9	- 9	- 9	- 10	- 37	-9	-11	-10	-12	-42	-11	-11	-22
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
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	- 5	- 4	- 1	- 1	- 1	- 2	- 5	-1	-2	-1	-1	-5	-1	-2
BioSolutions	- 5	- 4	- 1	- 1	- 1	- 2	- 5	-1	-2	-1	-1	-5	-1	-2
BioMaterials	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Fine Chemicals	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
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	-116	0	0	12	0	-20	-8	0	0	0	0	0	0	0
BioSolutions	-97	0	0	12	0	-6	6	0	0	0	0	0	0	0
BioMaterials	-18	0	0	0	0	-12	-12	0	0	0	0	0	0	0
Fine Chemicals	- 1	0	0	0	0	- 2	- 2	0	0	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	1.1-31.3	1.4-30.6	1.7-30.9	1.10-31.12	1.1-31.12	1.1-31.3	1.4-30.6
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	568	952	291	346	321	228	1 186	320	419	360	192	1 291	308	374
BioSolutions	324	749	210	263	206	96	775	167	226	174	100	667	194	247
BioMaterials	97	91	48	43	52	77	220	78	94	110	52	334	58	36
Fine Chemicals	147	112	33	40	63	55	191	75	99	76	40	290	56	91	1.1-30.6 -3 -3 0 0 1.1-30.6 0 0 0 0 1.1-30.6 682 441 94 147

Hedging effects & currency exposure
Amounts in NOK million	1.1-31.12 2020	1.1-31.12 2021	1.1-31.3 2022	1.4-30.6 2022	1.7-30.9 2022	1.10-31.12 2022	1.1-31.12 2022	1.1-31.3 2023	1.4-30.6 2023	1.7-30.9 2023	1.10-31.12 2023	1.1-31.12 2023	1.1-31.3 2024	1.4-30.6 2024	1.1-30.6 2024
Borregaard - EBITDA hedging gains & losses	-241	-29	10	-3	-23	-34	-50	-48	-65	-62	-93	-268	-89	-97	-186
BioSolutions	-103	-11	3	-5	-19	-23	-44	-25	-29	-31	-44	-129	-44	-47	-91
BioMaterials	-116	-15	5	1	-4	-9	-7	-19	-26	-22	-37	-104	-34	-38	-72
Fine Chemicals	-22	-3	2	1	0	-2	1	-4	-10	-9	-12	-35	-11	-12	-23
Borregaard - USD EBITDA currency exposure (approx)	177	198					197					232
Borregaard - EUR EBITDA currency exposure (approx)	112	139					147					149
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	1.1-30.6
Amounts in NOK million	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Borregaard	5 227	5 715	1 591	1 720	1 723	1 742	6 776	1 825	1 937	1 688	1 574	7 024	1 948	1 923	3 871
BioSolutions	2 995	3 392	929	1 072	979	966	3 946	973	1 062	934	880	3 849	1 066	1 090	2 156
BioMaterials	1 695	1 840	521	530	546	608	2 205	674	649	557	515	2 395	693	611	1 304
Fine Chemicals	538	485	141	118	198	168	625	178	226	197	179	780	189	222	411
Eliminations	- 1	- 2	0	0	0	0	0	0	0	0	0	0	0	0	0
BioSolutions
	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	1.1-30.6
	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Average gross sales price NOK per mtds	6 951	8 106	9 780	10 150	10 479	11 104	10 369	12 402	11 319	11 609	11 756	11 753	12 582	11 862	12 207
Volume (`000 mtds)	416	366	81	90	84	79	334	74	86	76	72	308	81	88	169
Specialities volume (000 mtds)<br>Contruction volume (000 mtds)	88 178	89 131					84 117					73 100
Industrial volume (`000 mtds)	150	146					133					135
BioMaterials
	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	1.1-30.6
	2020	2021	2022	2022	2022	2022	2022	2023	2023	2023	2023	2023	2024	2024	2024
Average gross sales price NOK per mt	11 678	10 807	12 595	13 656	14 880	16 179	14 283	16 449	17 551	15 786	16 260	16 527	15 700	16 126	15 898
Volume (`000 mt)	148,4	164,4	39,4	36,6	34,7	36,3	147,0	40,0	36,8	34,9	32,6	144,3	44,5	38,6	83,1
High specialised as % of total cellulose product sales volum	77 %	79 %					85 %					81 %