Borregaard

Quarterly Report • Apr 29, 2020

Income Statement Borregaard Group Q1 2020
		1.1-31.3
Amounts in NOK million	2020	2019	2019
Operating revenues	1 372	1 250	5 063
Operating expenses	-1 130	-995	-4 056
EBITDA	242	255	1 007
Depreciation property, plant and equipment	-109	-98	-418
Amortisation intangible assets	-1	-1	-4
Other income and expenses	0	0	-27
Operating profit	132	156	558
Financial items, net	-21	-15	-91
Profit before taxes	111	141	467
Income tax expence	-27	-33	-116
Profit for the period	84	108	351
Profit attributable to non-controlling interests	-18	-18	-66
Profit attributable to owners of the parent	102	126	417
Earnings per share (NOK)	1,02	1,26	4,17
EBITDA margin	17,6 %	20,4 %	19,9 %

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

Interim condensed cash flow statement Borregaard Group Q1 2020
Amounts in NOK million	1.1-31.3 2020	2019	1.1-31.12 2019
Profit before taxes	111	141	467
Amortisation, depreciation and impairment charges	110	99	432
Change in net working capital, etc	-298	-128	-85
Dividend (share of profit) from JV	-1	0	5
Taxes paid	-47	-68	-122
Cash flow from operating activities	-125	44	697
Investments property, plant and equipment and intangible assets *	-58	-123	-583
Other capital transactions	2	9	29
Cash flow from Investing activities	-56	-114	-554
Dividends	0	0	-224
Proceeds from exercise of options/shares to employees	28	19	35
Buy-back of shares	-50	-27	-60
Gain/(loss) on hedges for net investments in subsidiaries	-160	4	-26
Net paid to/from shareholders	-182	-4	-275
Proceeds from interest-bearing liabilities	650	347	2 100
Repayment of interest-bearing liabilities	-585	-216	-1 971
Change in interest-bearing receivables/other liabilities	40	-8	-3
Change in net interest-bearing liablities	105	123	126
Cash flow from financing activities	-77	119	-149
Change in cash and cash equivalents	-258	49	-6
Cash and cash equivalents at beginning of period	81	86	86
Change in cash and cash equivalents	-258	49	-6
Currency effects cash and cash equivalents	6	-1	1
Cash and cash equivalents at the end of the period	-171	134	81
* Investment by category:
Replacement investments	35	76	370
Expansion investments	23	47	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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	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
BioSolutions	2 563	2 594	687	693	690	705	2 775	755	781	720	726	2 982	797
BioMaterials	1 575	1 672	432	426	378	425	1 661	394	472	430	416	1 712	454
Fine Chemicals	368	370	103	86	89	96	374	110	96	96	104	406	128
Eliminations	- 14	- 18	- 5	- 6	- 7	- 7	- 25	-9	-9	-7	-12	-37	-7
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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020
Borregaard	1 021	1 055	252	239	229	183	903	255	283	286	183	1 007	242
BioSolutions	605	545	149	139	112	99	499	168	192	156	131	647	170
BioMaterials	321	414	74	79	95	64	312	45	64	94	31	234	46
Fine Chemicals	95	96	29	21	22	20	92	42	27	36	21	126	26
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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020
Borregaard	- 274	- 306	- 75	- 75	- 84	- 89	- 323	-98	-104	-106	-110	-418	-109
BioSolutions	- 78	- 94	- 24	- 23	- 32	- 34	- 113	-41	-44	-48	-50	-183	-51
BioMaterials	- 177	- 192	- 46	- 47	- 47	- 49	- 189	-49	-53	-50	-51	-203	-50
Fine Chemicals	- 19	- 20	- 5	- 5	- 5	- 6	- 21	-8	-7	-8	-9	-32	-8
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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020
Borregaard	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1
BioSolutions	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-1	-4	-1
BioMaterials	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
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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020
Borregaard	13	-9	0	0	0	0	0	0	-16	0	-11	-27	0
BioSolutions	-24	-9	0	0	0	0	0	0	-16	0	0	-16	0
BioMaterials	37	0	0	0	0	0	0	0	0	0	-11	-11	0
Fine Chemicals	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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020
Borregaard	756	736	176	163	144	93	576	156	162	179	61	558	132
BioSolutions	499	438	124	115	79	64	382	126	131	107	80	444	118
BioMaterials	181	222	28	32	48	15	123	-4	11	44	-31	20	-4
Fine Chemicals	76	76	24	16	17	14	71	34	20	28	12	94	18

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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	2020
Borregaard - EBITDA hedging gains & losses	-115	-72	3	-6	-7	-1	-11	-8	-13	-23	-32	-76	-62
BioSolutions	-41	-22	3	1	0	-1	3	-4	-6	-9	-14	-33	-26
BioMaterials	-59	-36	2	-2	-2	-1	-3	-3	-7	-11	-16	-37	-30
Fine Chemicals	-15	-14	-2	-5	-5	1	-11	-1	0	-3	-2	-6	-6
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	1.1-31.13
Amounts in NOK million	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	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
BioSolutions	2 485	2 524	670	677	674	687	2 708	728	753	697	695	2 873	775
BioMaterials	1 543	1 634	424	417	371	418	1 630	385	465	422	407	1 679	445
Fine Chemicals	363	365	102	85	87	95	369	109	94	95	102	400	127
Eliminations	0	- 1	- 1	0	- 1	0	- 2	0	-1	0	0	-1	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	1.1-31.13
	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	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
Volume (`000 mtds)	444	450	107	122	122	117	468	115	125	119	111	470	115
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	1.1-31.13
	2016	2017	2018	2018	2018	2018	2018	2019	2019	2019	2019	2019	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
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
High specialised as % of total cellulose product sales volum	64 %	72 %					62 %					73 %