Borregaard

Quarterly Report • Jul 16, 2020

Income Statement Borregaard Group Q2 2020
		1.4-30.6		1.1-30.6	1.1-31.12
Amounts in NOK million	2020	2019	2020	2019	2019
Operating revenues	1 358	1 340	2 730	2 590	5 063
Operating expenses	-997	-1 057	-2 127	-2 052	-4 056
EBITDA	361	283	603	538	1 007
Depreciation property, plant and equipment	-112	-104	-221	-202	-418
Amortisation intangible assets	-1	-1	-2	-2	-4
Other income and expenses	-96	-16	-96	-16	-27
Operating profit	152	162	284	318	558
Financial items, net	-19	-22	-40	-37	-91
Profit before taxes	133	140	244	281	467
Income tax expence	-48	-33	-75	-66	-116
Profit for the period	85	107	169	215	351
Profit attributable to non-controlling interests	-16	-15	-34	-33	-66
Profit attributable to owners of the parent	101	122	203	248	417
Earnings per share (NOK)	1,01	1,22	2,03	2,48	4,17
EBITDA adj. margin	26,6 %	21,1 %	22,1 %	20,8 %	19,9 %

Interim condensed statement of financial position Borregaard Group
	30.6.	31.3.	31.12.
Amounts in NOK million	2020	2020	2019
Assets:
Intangible assets	94	98	93
Property, plant and equipment	3 975	3 984	3 852
Right-of-use assets	374	396	380
Other assets	284	398	251
Investments in joint venture	26	94	99
Non-current assets	4 753	4 970	4 675
Inventories	1 003	942	931
Receivables	1 120	1 368	991
Cash and cash deposits	67	61	147
Current assets	2 190	2 371	2 069
Total assets	6 943	7 341	6 744
Equity and debt:
Group equity	2 926	2 641	3 306
Non-controlling interests	141	169	158
Equity	3 067	2 810	3 464
Provisions and other liabilities	444	813	294
Interest-bearing liabilities	1 530	1 820	1 419
Non-current liabilities	1 974	2 633	1 713
Interest-bearing liabilities	694	617	608
Other current liabilities	1 208	1 281	959
Current liabilities	1 902	1 898	1 567
Equity and liabilities	6 943	7 341	6 744
Equity ratio (%):	44,2 %	38,3 %	51,4 %

Interim condensed cash flow statement Borregaard Group Q2 2020
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2020	2019	2020	2019	2019
Profit before taxes	133	140	244	281	467
Amortisation, depreciation and impairment charges	113	105	223	204	432
Change in net working capital, etc	134	-91	-164	-219	-85
Dividend (share of profit) from JV	64	0	63	0	5
Taxes paid	-2	-21	-49	-89	-122
Cash flow from operating activities	442	133	317	177	697
Investments property, plant and equipment and intangible assets *	-155	-146	-213	-269	-583
Other capital transactions	3	2	5	11	29
Cash flow from Investing activities	-152	-144	-208	-258	-554
Dividends	-229	-224	-229	-224	-224
Proceeds from exercise of options/shares to employees	1	11	29	30	35
Buy-back of shares	0	-21	-50	-48	-60
Gain/(loss) on hedges for net investments in subsidiaries	113	5	-47	9	-26
Net paid to/from shareholders	-115	-229	-297	-233	-275
Proceeds from interest-bearing liabilities	300	1 000	950	1 347	2 100
Repayment of interest-bearing liabilities	-345	-837	-930	-1 053	-1 971
Change in interest-bearing receivables/other liabilities	-14	1	26	-7	-3
Change in net interest-bearing liablities	-59	164	46	287	126
Cash flow from financing activities	-174	-65	-251	54	-149
Change in cash and cash equivalents	116	-76	-142	-27	-6
Cash and cash equivalents at beginning of period	-171	134	81	86	86
Change in cash and cash equivalents	116	-76	-142	-27	-6
Currency effects cash and cash equivalents	-4	1	2	0	1
Cash and cash equivalents at the end of the period	-59	59	-59	59	81
* Investment by category:
Replacement investments	104	54	139	130	370
Expansion investments	51	92	74	139	213

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	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020
Borregaard	4 492	4 618	1 217	1 199	1 150	1 219	4 785	1 250	1 340	1 239	1 234	5 063	1 372	1 358	2 730
BioSolutions	2 563	2 594	687	693	690	705	2 775	755	781	720	726	2 982	797	819	1 616
BioMaterials	1 575	1 672	432	426	378	425	1 661	394	472	430	416	1 712	454	417	871
Fine Chemicals	368	370	103	86	89	96	374	110	96	96	104	406	128	131	259
Eliminations	- 14	- 18	- 5	- 6	- 7	- 7	- 25	-9	-9	-7	-12	-37	-7	-9	-16
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	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020
Borregaard	1 021	1 055	252	239	229	183	903	255	283	286	183	1 007	242	361	603
BioSolutions	605	545	149	139	112	99	499	168	192	156	131	647	170	193	363
BioMaterials	321	414	74	79	95	64	312	45	64	94	31	234	46	101	147
Fine Chemicals	95	96	29	21	22	20	92	42	27	36	21	126	26	67	93
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	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020
Borregaard	- 274	- 306	- 75	- 75	- 84	- 89	- 323	-98	-104	-106	-110	-418	-109	-112	-221
BioSolutions	- 78	- 94	- 24	- 23	- 32	- 34	- 113	-41	-44	-48	-50	-183	-51	-51	-102
BioMaterials	- 177	- 192	- 46	- 47	- 47	- 49	- 189	-49	-53	-50	-51	-203	-50	-52	-102
Fine Chemicals	- 19	- 20	- 5	- 5	- 5	- 6	- 21	-8	-7	-8	-9	-32	-8	-9	-17
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	1.1-30.6
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020
Borregaard	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1	-1	-2
BioSolutions	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1	-1	-2
BioMaterials	0	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	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	1.1-30.6
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020
Borregaard	13	-9	0	0	0	0	0	0	-16	0	-11	-27	0	-96	-96
BioSolutions	-24	-9	0	0	0	0	0	0	-16	0	0	-16	0	-90
															-90
BioMaterials	37	0	0	0	0	0	0	0	0	0	-11	-11	0	-6	-6
Fine Chemicals	0	0	0	0	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	1.4-30.6	1.1-30.6
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020	2020	2020
Borregaard	756	736	176 124	163	144	93	576	156	162	179	61	558 444	132	152 51	284
BioSolutions	499	438													169
				115	79	64	382	126	131	107	80		118
BioMaterials Fine Chemicals	181 76	222 76	28 24	32 16	48 17	15 14	123 71	-4 34	11 20	44 28	-31 12	20 94	-4 18	43 58	39 76

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	1.1-30.6
Amounts in NOK million 2016 2017 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020	2020
Borregaard - EBITDA hedging gains & losses -115 -72 3 -6 -7 -1 -11 -8 -13 -23 -32 -76 -62 -84	-146
BioSolutions -41 -22 3 1 0 -1 3 -4 -6 -9 -14 -33 -26 -38	-64
BioMaterials -59 -36 2 -2 -2 -1 -3 -3 -7 -11 -16 -37 -30 -39	-69
Fine Chemicals -15 -14 -2 -5 -5 1 -11 -1 0 -3 -2 -6 -6 -7	-13
Borregaard - USD EBITDA currency exposure (approx) 209 207 194 203
Borregaard - EUR EBITDA currency exposure (approx) 92 84 84 98
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 2016 2017 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020	2020
Borregaard 4 391 4 522 1 195 1 179 1 131 1 200 4 705 1 222 1 311 1 214 1 204 4 951 1 347 1 337	2 684
BioSolutions 2 485 2 524 670 677 674 687 2 708 728 753 697 695 2 873 775 800	1 575
BioMaterials 1 543 1 634 424 417 371 418 1 630 385 465 422 407 1 679 445 407	852
Fine Chemicals 363 365 102 85 87 95 369 109 94 95 102 400 127 130	257
Eliminations 0 - 1 - 1 0 - 1 0 - 2 0 -1 0 0 -1 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
2016 2017 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020	2020
Average gross sales price NOK per mtds 5 684 5 618 5 966 5 455 5 455 5 783 5 654 6 385 5 999 5 865 6 455 6 166 6 885 7 431	7 147
Volume (`000 mtds) 444 450 107 122 122 117 468 115 125 119 111 470 115 106	221
Specialities volume (`000 mtds) 80 83 86 86
Contruction volume (`000 mtds) 214 210 212 209
Industrial volume (`000 mtds) 150 157 170 175
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
2016 2017 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019 2020 2020	2020
Average gross sales price NOK per mt 9 992 10 589 10 129 10 202 10 532 10 528 10 337 10 724 10 561 10 982 10 417 10 665 11 382 12 579	11 931
Volume (`000 mt) 152,3 150,7 40,0 39,1 33,3 37,7 150,1 34,5 42,4 37,6 38,6 153,1 40,0 33,9	73,9
High specialised as % of total cellulose product sales volum 64 % 72 % 62 % 73 %