Borregaard

Quarterly Report • Apr 26, 2018

Income Statement Borregaard Group Q1 2018
		1.1-31.3	1.1-31.12
Amounts in NOK million	2018	2017	2017
Operating revenues	1 217	1 136	4 618
Operating expenses	-965	-862	-3 563
EBITDA adj.	252	274	1 055
Depreciation property, plant and equipment	-75	-74	-306
EBITA adj.	177	200	749
Amortisation intangible assets	-1	-1	-4
Other income and expenses	0	0	-9
Operating profit	176	199	736
Financial items, net	-7	-4	-21
Profit before taxes	169	195	715
Income tax expence	-37	-48	-157
Profit for the period	132	147	558
Profit attributable to non-controlling interests	-5	-1	-8
Profit attributable to owners of the parent	137	148	566
Earnings per share (NOK)	1,37	1,48	5,66
EBITDA adj. margin	20,7 %	24,1 %	22,8 %
EBITA adj. margin	14,5 %	17,6 %	16,2 %

Interim condensed statement of financial position Borregaard Group
	31.3.	31.12.
Amounts in NOK million	2018	2017
Assets:
Intangible assets	105	111
Property, plant and equipment	3 197	3 126
Other assets	123	93
Investments in joint venture	118	118
Non-current assets	3 543	3 448
Inventories	718	734
Receivables	1 059	971
Cash and cash deposits	92	180
Current assets	1 869	1 885
Total assets	5 412	5 333
Equity and debt:
Group equity	3 091	2 889
Non-controlling interests	128	107
Equity	3 219	2 996
Provisions and other liabilities	282	277
Interest-bearing liabilities	757	743
Non-current liabilities	1 039	1 020
Interest-bearing liabilities	279	283
Other current liabilities	875	1 034
Current liabilities	1 154	1 317
Equity and liabilities	5 412	5 333
Equity ratio (%):	59,5 %	56,2 %

Interim condensed cash flow statement Borregaard Group Q1 2018
		1.1-31.3	1.1-31.12
Amounts in NOK million	2018	2017	2017
Profit before taxes	169	195	715
Amortisation, depreciation and impairment charges	76	75	316
Change in net working capital, etc	-142	-156	-92
Dividend (share of profit) from JV	0	-2	11
Taxes paid	-72	-30	-170
Cash flow from operating activities	31	82	780
Investments property, plant and equipment and intangible assets *	-177	-159	-968
Other capital transactions	4	2	10
Cash flow from Investing activities	-173	-157	-958
Dividends	0	0	-349
Proceeds from exercise of options/shares to employees	17	11	11
Buy-back of shares	-22	-29	-29
Gain/(loss) on hedges for net investments in subsidiaries	40	9	8
Net paid to/from shareholders	35	-9	-359
Proceeds from interest-bearing liabilities	233	5	668
Repayment from interest-bearing liabilities	-202	-27	-258
Change in interest-bearing receivables/other liabilities	-7	23	46
Change in net interest-bearing liablities	24	1	456
Cash flow from financing activities	59	-8	97
Change in cash and cash equivalents	-83	-83	-81
Cash and cash equivalents at beginning of period	180	265	265
Change in cash and cash equivalents	-83	-83	-81
Currency effects cash and cash equivalents	-5	0	-4
Cash and cash equivalents at the end of the period	92	182	180
* Investment by category:
Replacement investments	32	78	344
Expansion investments	145	81	624

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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	3 939	4 164	1 113	1 167	1 102	1110	4 492	1 136	1 256	1 089	1 137	4 618	1 217
Performance Chemicals	1 822	2 008	550	584	515	512	2 161	550	582	523	521	2 176	555
Speciality Cellulose	1 459	1 436	383	385	416	406	1 590	412	468	383	435	1 698	434
Other Businesses	682	755	190	206	179	201	776	183	213	197	190	783	239
Eliminations	- 24	- 35	- 10	- 8	- 8	- 9	- 35	-9	-7	-14	-9	-39	-11
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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	730	758	236	269	283	233	1 021	274	318	272	191	1 055	252
Performance Chemicals	410	474	146	147	141	115	549	141	151	111	90	493	128
Speciality Cellulose	248	193	76	91	105	72	344	112	127	114	89	442	89
Other Businesses	72	91	14	31	37	46	128	21	40	47	12	120	35
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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	- 244	- 261	- 65	- 69	- 67	- 73	- 274	-74	-75	-75	-82	-306	-75
Performance Chemicals	- 22	- 27	- 8	- 7	- 9	- 8	- 32	-9	-10	-11	-14	-44	-13
Speciality Cellulose	- 85	- 89	- 23	- 23	- 23	- 25	- 94	-23	-24	-23	-22	-92	-25
Other Businesses	- 137	- 145	- 34	- 39	- 35	- 40	- 148	-42	-41	-41	-46	-170	-37
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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	486	497	171	200	216	160	747	200	243	197	109	749
Performance Chemicals	388	447	138	140	132	107	517	132	141	100	76	449
Speciality Cellulose	163	104	53	68	82	47	250	89	103	91	67	350
Other Businesses	- 65	- 54	- 20	- 8	2	6	- 20	-21	-1	6	-34	-50
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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	0	- 1	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4
Performance Chemicals	0	- 1	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4
Speciality Cellulose	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
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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	-30	37	0	13	0	0	13	0	0	0	-9	-9
Performance Chemicals	0	-9	0	0	0	0	0	0	0	0	-9	-9
Speciality Cellulose	0	46	0	73	0	0	73	0	0	0	0	0
Other Businesses	- 30	0	0	- 60	0	0	- 60	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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	456	533	170	212	215	159	756	199	242	196	99	736
Performance Chemicals	388	437	137	139	131	106	513	131	140	99	66	436
Speciality Cellulose	163	150	53	141	82	47	323	89	103	91	67	350
Other Businesses	- 95	- 54	- 20	- 68	2	6	- 80	-21	-1	6	-34	-50	177 115 64 -2 1.1-31.3 -1 -1 0 0 1.1-31.3 0 0 0 0 1.1-31.3 176 114 64 -2

Quarterly segment information Borregaard Group
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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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard - EBITA hedging gains & losses	-51	-241	-43	-24	-24	-24	-115	-22	-35	-5	-10	-72	3
Performance Chemicals	-12	-76	-12	-7	-7	-6	-32	-6	-12	0	0	-18	2
Speciality Cellulose	-32	-129	-22	-11	-13	-13	-59	-10	-17	-3	-6	-36	2
Other Businesses	- 7	-36	-9	-6	-4	-5	-24	-6	-6	-2	-4	-18	-1
Borregaard - USD EBITA currency exposure (approx)	250	214					208					206
Borregaard - EUR EBITA currency exposure (approx)	89	78					92					84
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
Amounts in NOK million	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Borregaard	3 848	4 075	1 082	1 145	1 076	1 088	4 391	1 110	1 225	1 071	1 116	4 522	1 195
Performance Chemicals	1 779	1 952	531	569	494	500	2 094	535	566	508	508	2 117	542
Cellulose	1 344	1 339	345	363	388	376	1 472	379	432	357	398	1 566	406
Bioethanol	112	90	32	21	29	28	110	30	28	26	37	121	28
Fine Chemicals	185	217	54	68	47	84	253	49	85	56	52	242	73
Ingredients	328	351	89	88	87	71	335	86	83	94	95	358	116
Other	100	126	31	36	31	29	127	31	31	30	26	118	30
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
	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Average gross sales price NOK per mtds	4 539	5 500	5 669	5 191	5 196	5 272	5 331	5 598	5 317	5 007	5 032	5 229	5 444
Volume (`000 mtds)	446	410	107	122	108	106	443	106	118	112	113	449	107
Specialities volume (`000 mtds)	78	76					79					82
Construction volume (`000 mtds)	238	213					214					210
Miscellaneous volume (`000 mtds)	130	121					150					157
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
	2014	2015	2016	2016	2016	2016	2016	2017	2017	2017	2017	2017	2018
Average gross sales price NOK per mt	9 144	9 546	10 150	9 912	9 830	10 068	9 986	10 555	10 889	10 524	10 315	10 575	10 105
Volume (`000 mt)	149,4	153,6	36,0	37,4	40,6	38,3	152,3	36,6	40,5	34,4	39,2	150,7	40,0
High specialised as % of total cellulose product sales volum	63 %	57 %					64 %					72 %