Borregaard

Quarterly Report • May 3, 2019

Income Statement Borregaard Group Q1 2019
			1.1-31.12
		1.1-31.3
Amounts in NOK million	2019	2018	2018
Operating revenues	1 250	1 217	4 785
Operating expenses	-995	-965	-3 882
EBITDA adj.	255	252	903
Depreciation property, plant and equipment	-98	-75	-323
EBITA adj.	157	177	580
Amortisation intangible assets	-1	-1	-4
Other income and expenses	0	0	0
Operating profit	156	176	576
Financial items, net	-15	-7	-14
Profit before taxes	141	169	562
Income tax expence	-33	-37	-137
Profit for the period	108	132	425
Profit attributable to non-controlling interests	-18	-5	-51
Profit attributable to owners of the parent	126	137	476
Earnings per share (NOK)	1,26	1,37	4,76
EBITDA adj. margin	20,4 %	20,7 %	18,9 %
EBITA adj. margin	12,6 %	14,5 %	12,1 %

Interim condensed statement of financial position Borregaard Group
	31.3.	31.12.
Amounts in NOK million	2019	2018
Assets:
Intangible assets	95	100
Property, plant and equipment	3 875	3 623
Other assets	230	230
Investments in joint venture	98	100
Non-current assets	4 298	4 053
Inventories	908	856
Receivables	1 081	956
Cash and cash deposits	134	86
Current assets	2 123	1 898
Total assets	6 421	5 951
Equity and debt:
Group equity	3 296	3 123
Non-controlling interests	188	198
Equity	3 484	3 321
Provisions and other liabilities	241	271
Interest-bearing liabilities	1 323	1 115
Non-current liabilities	1 564	1 386
Interest-bearing liabilities	415	272
Other current liabilities	958	972
Current liabilities	1 373	1 244
Equity and liabilities	6 421	5 951
Equity ratio (%):	54,3 %	55,8 %

Interim condensed cash flow statement Borregaard Group Q1 2019
	1.1-31.3		1.1-31.12
Amounts in NOK million	2019	2018	2018
Profit before taxes	141	169	562
Amortisation, depreciation and impairment charges	99	76	327
Change in net working capital, etc	-128	-142	-194
Dividend (share of profit) from JV	0	0	6
Taxes paid	-68	-72	-143
Cash flow from operating activities	44	31	558
Investments property, plant and equipment and intangible assets *	-123	-177	-762
Other capital transactions	9	4	13
Cash flow from Investing activities	-114	-173	-749
Dividends	0	0	-199
Proceeds from exercise of options/shares to employees	19	17	23
Buy-back of shares	-27	-22	-32
Gain/(loss) on hedges for net investments in subsidiaries	4	40	-22
Net paid to/from shareholders	-4	35	-230
Proceeds from interest-bearing liabilities	347	233	1 292
Repayment of interest-bearing liabilities	-216	-202	-960
Change in interest-bearing receivables/other liabilities	-8	-7	-2
Change in net interest-bearing liablities	123	24	330
Cash flow from financing activities	119	59	100
Change in cash and cash equivalents	49	-83	-91
Cash and cash equivalents at beginning of period	86	180	180
Change in cash and cash equivalents	49	-83	-91
Currency effects cash and cash equivalents	-1	-5	-3
Cash and cash equivalents at the end of the period	134	92	86
* Investment by category:
Replacement investments	76	32	346
Expansion investments	47	145	416

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	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	4 164	4 492	1 136	1 256	1 089	1137	4 618	1 217	1 199	1 150	1 219	4 785	1 250
Performance Chemicals	2 008	2 161	550	582	523	521	2 176	555	571	559	552	2 237	600
Speciality Cellulose	1 436	1 590	412	468	383	435	1 698	434	427	381	427	1 669	392
Other Businesses	755	776	183	213	197	190	783	239	212	223	253	927	274
Eliminations	- 35	- 35	- 9	- 7	- 14	- 9	- 39	-11	-11	-13	-13	-48	-16
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	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	758	1 021	274	318	272	191	1 055	252	239	229	183	903	255
Performance Chemicals	474	549	141	151	111	90	493	128	115	77	65	385	116
Speciality Cellulose	193	344	112	127	114	89	442	89	92	102	75	358	62
Other Businesses	91	128	21	40	47	12	120	35	32	50	43	160	77
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	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	- 261	- 274	- 74	- 75	- 75	- 82	- 306	-75	-75	-84	-89	-323	-98
Performance Chemicals	- 27	- 32	- 9	- 10	- 11	- 14	- 44	-13	-13	-22	-23	-71	-29
Speciality Cellulose	- 89	- 94	- 23	- 24	- 23	- 22	- 92	-25	-25	-26	-25	-101	-27
Other Businesses	- 145	- 148	- 42	- 41	- 41	- 46	- 170	-37	-37	-36	-41	-151	-42
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	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	497	747	200	243	197	109	749	177	164	145	94	580	157
Performance Chemicals	447	517	132	141	100	76	449	115	102	55	42	314	87
Speciality Cellulose	104	250	89	103	91	67	350	64	67	76	50	257	35
Other Businesses	- 54	- 20	- 21	- 1	6	- 34	- 50	-2	-5	14	2	9	35
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
Amounts in NOK million	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	- 1	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1
Performance Chemicals	- 1	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1
Speciality Cellulose	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
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
Amounts in NOK million	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	37	13	0	0	0	-9	-9	0	0	0	0	0	0
Performance Chemicals	-9	0	0	0	0	-9	-9	0	0	0	0	0	0
Speciality Cellulose	46	73	0	0	0	0	0	0	0	0	0	0	0
Other Businesses	0	- 60	0	0	0	0	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
Amounts in NOK million	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	533	756	199	242	196	99	736	176	163	144	93	576	156
Performance Chemicals	437	513	131	140	99	66	436	114	101	54	41	310	86
Speciality Cellulose	150	323	89	103	91	67	350	64	67	76	50	257	35
Other Businesses	- 54	- 80	- 21	- 1	6	- 34	- 50	-2	-5	14	2	9	35

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
Amounts in NOK million	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard - EBITA hedging gains & losses	-241	-115	-22	-35	-5	-10	-72	3	-6	-7	-1	-11	-8
Performance Chemicals	-76	-32	-6	-12	0	0	-18	2	0	0	-1	1	-2
Speciality Cellulose	-129	-59	-10	-17	-3	-6	-36	2	-2	-2	-1	-3	-4
Other Businesses	- 36	-24	-6	-6	-2	-4	-18	-1	-4	-5	1	-9	-2
Borregaard - USD EBITA currency exposure (approx)	214	208					206					190
Borregaard - EUR EBITA currency exposure (approx)	78	92					84					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	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Borregaard	4 075	4 391	1 110	1 225	1 071	1 116	4 522	1 195	1 179	1 131	1 200	4 705	1 222
Performance Chemicals	1 952	2 094	535	566	508	508	2 117	542	557	547	537	2 183	576
Cellulose	1 339	1 472	379	432	357	398	1 566	406	396	347	399	1 548	364
Bioethanol	90	110	30	28	26	37	121	28	31	32	29	120	27
Fine Chemicals	217	253	49	85	56	52	242	73	54	55	65	247	80
Ingredients	351	335	86	83	94	95	358	116	104	113	138	471	139
Other	126	127	31	31	30	26	118	30	37	37	32	136	36
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
	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Average gross sales price NOK per mtds	5 500	5 331	5 598	5 317	5 007	5 032	5 229	5 444	5 022	4 943	5 125	5 124	5 608
Volume (`000 mtds)	410	443	106	118	112	113	449	107	122	122	116	467	114
Specialities volume (`000 mtds)	76	79					82					85
Construction volume (`000 mtds)	213	214					210					212
Industrial volume (`000 mtds)	121	150					157					170
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
	2015	2016	2017	2017	2017	2017	2017	2018	2018	2018	2018	2018	2019
Average gross sales price NOK per mt	9 546	9 986	10 555	10 889	10 524	10 315	10 575	10 105	10 179	10 473	10 485	10 301	10 645
Volume (`000 mt)	153,6	152,3	36,6	40,5	34,4	39,2	150,7	40,0	39,1	33,2	37,7	150,0	34,5
High specialised as % of total cellulose product sales volum	57 %	64 %					72 %					62 %