Borregaard

Quarterly Report • Jul 15, 2021

Income Statement Borregaard Group Q2 2021
		1.4-30.6	1.1-30.6		1.1-31.12
Amounts in NOK million	2021	2020	2021	2020	2020
Operating revenues	1 511	1 358	2 930	2 730	5 328
Operating expenses	-1 095	-997	-2 212	-2 127	-4 196
EBITDA	416	361	718	603	1 132
Depreciation property, plant and equipment	-101	-112	-207	-221	-443
Amortisation intangible assets	-1	-1	-2	-2	-5
Other income and expenses	0	-96	0	-96	-116
Operating profit	314	152	509	284	568
Financial items, net	-18	-19	-37	-40	-72
Profit before taxes	296	133	472	244	496
Income tax expence	-67	-48	-110	-75	-117
Profit for the period	229	85	362	169	379
Profit attributable to non-controlling interests	-4	-16	-17	-34	-57
Profit attributable to owners of the parent	233	101	379	203	436
Earnings per share (NOK)	2,34	1,01	3,81	2,03	4,36
EBITDA margin	27,5 %	26,6 %	24,5 %	22,1 %	21,2 %

Interim condensed statement of financial position Borregaard Group
	30.6.	31.3.	31.12.
Amounts in NOK million	2021	2021	2020
Assets:
Intangible assets	93	81	86
Property, plant and equipment	4 009	3 978	3 973
Right-of-use assets	369	377	381
Other assets	272	440	380
Investments in joint venture	39	38	38
Non-current assets	4 782	4 914	4 858
Inventories	769	822	887
Receivables	1 273	1 131	1 051
Cash and cash deposits	246	213	207
Current assets	2 288	2 166	2 145
Total assets	7 070	7 080	7 003
Equity and debt:
Group equity	3 875	3 927	3 668
Non-controlling interests	96	100	110
Equity	3 971	4 027	3 778
Provisions and other liabilities	321	315	291
Interest-bearing liabilities	1 346	1 374	1 381
Non-current liabilities	1 667	1 689	1 672
Interest-bearing liabilities	508	517	623
Other current liabilities	924	847	930
Current liabilities	1 432	1 364	1 553
Equity and liabilities	7 070	7 080	7 003
Equity ratio (%):	56,2 %	56,9 %	53,9 %

Interim condensed cash flow statement Borregaard Group Q2 2021
				1.1-30.6
		1.4-30.6			1.1-31.12
Amounts in NOK million	2021	2020	2021	2020	2020
Profit before taxes	296	133	472	244	496
Amortisation, depreciation and impairment charges	102	113	209	223	449
Change in net working capital, etc	69	134	74	-164	-21
Dividend (share of profit) from JV	0	64	0	63	51
Taxes paid	-9	-2	-58	-49	-89
Cash flow from operating activities	458	442	697	317	886
Investments property, plant and equipment and intangible assets *	-125	-155	-220	-213	-503
Other capital transactions	-1	3	3	5	14
Cash flow from Investing activities	-126	-152	-217	-208	-489
Dividends	-249	-229	-249	-229	-229
Proceeds from exercise of options/shares to employees	17	1	46	29	35
Buy-back of shares	-32	0	-88	-50	-62
Gain/(loss) on hedges for net investments in subsidiaries	8	113	17	-47	10
Net paid to/from shareholders	-256	-115	-274	-297	-246
Proceeds from interest-bearing liabilities	200	300	300	950	1 550
Repayment of interest-bearing liabilities	-239	-345	-456	-930	-1 703
Change in interest-bearing receivables/other liabilities	2	-14	-6	26	18
Change in net interest-bearing liablities	-37	-59	-162	46	-135
Cash flow from financing activities	-293	-174	-436	-251	-381
Change in cash and cash equivalents	39	116	44	-142	16
Cash and cash equivalents at beginning of period	100	-171	96	81	81
Change in cash and cash equivalents	39	116	44	-142	16
Currency effects cash and cash equivalents	4	-4	3	2	-1
Cash and cash equivalents at the end of the period	143	-59	143	-59	96
* Investment by category:
Replacement investments	93	104	152	139	344
Expansion investments	32	51	68	74	159

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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard	4 618	4 785	1 250	1 340	1 239	1 234	5 063	1 372	1 358	1 260	1 338	5 328	1 419	1 511	2 930
BioSolutions	2 594	2 775	755	781	720	726	2 982	797	819	733	733	3 082	812	885	1 697
BioMaterials	1 672	1 661	394	472	430	416	1 712	454	417	403	458	1 732	523	482	1 005
Fine Chemicals	370	374	110	96	96	104	406	128	131	131	153	543	90	155	245
Eliminations	- 18	- 25	- 9	- 9	- 7	- 12	- 37	-7	-9	-7	-6	-29	-6	-11	-17
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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard	1 055	903	255	283	286	183	1 007	242	361	266	263	1 132	302	416	718
BioSolutions	545	499	168	192	156	131	647	170	193	132	137	632	205	272	477
BioMaterials	414	312	45	64	94	31	234	46	101	91	80	318	64	102	166
Fine Chemicals	96	92	42	27	36	21	126	26	67	43	46	182	33	42	75
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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard	- 306	- 323	- 98	- 104	- 106	- 110	- 418	-109	-112	-112	-110	-443	-106	-101	-207
BioSolutions	- 94	- 113	- 41	- 44	- 48	- 50	- 183	-51	-51	-53	-51	-206	-48	-45	-93
BioMaterials	- 192	- 189	- 49	- 53	- 50	- 51	- 203	-50	-52	-51	-50	-203	-50	-47	-97
Fine Chemicals	- 20	- 21	- 8	- 7	- 8	- 9	- 32	-8	-9	-8	-9	-34	-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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	1.1-30.6 2021
Borregaard	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-2	-5	-1	-1	-2
BioSolutions	- 4	- 4	- 1	- 1	- 1	- 1	- 4	-1	-1	-1	-2	-5	-1	-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
															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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard	-9	0	0	-16	0	-11	-27	0	-96	0	-20	-116	0	0
BioSolutions	-9	0	0	-16	0	0	-16	0	-90	0	-7	-97	0	0
BioMaterials	0	0	0	0	0	-11	-11	0	-6	0	-12	-18	0	0
Fine Chemicals	0	0	0	0	0	0	0	0	0	0	-1	-1	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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard	736	576	156	162	179	61	558	132	152	153	131	568	195	314
BioSolutions	438	382	126	131	107	80	444	118	51	78	77	324	156	226
BioMaterials	222	123	- 4	11	44	- 31	20	-4	43	40	18	97	14	55
Fine Chemicals	76	71	34	20	28	12	94	18	58	35	36	147	25	33	0 0 0 0 1.1-30.6 509 382 69 58

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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard - EBITDA hedging gains & losses	-72	-11	-8	-13	-23	-32	-76	-62	-84	-51	-44	-241	-15	-4	-19
BioSolutions	-22	3	-4	-6	-9	-14	-33	-26	-38	-21	-18	-103	-5	-1	-6
BioMaterials	-36	-3	-3	-7	-11	-16	-37	-30	-39	-25	-22	-116	-8	-3	-11
Fine Chemicals	-14	-11	-1	0	-3	-2	-6	-6	-7	-5	-4	-22	-2	0	-2
Borregaard - USD EBITDA currency exposure (approx)	207	194					203					177
Borregaard - EUR EBITDA currency exposure (approx)	84	84					98					112
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	1.1-31.1	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	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Borregaard BioSolutions	4 522 2 524	4 705 2 708	1 222 728	1 311 753	1 214 697	1 204 695	4 951 2 873	1 347 775	1 337 800	1 229 706	1 314 714	5 227 2 995	1 394 793	1 491 865	2 885 1 658
BioMaterials	1 634	1 630	385	465	422	407	1 679	445	407	395	448	1 695	513	472	985
Fine Chemicals	365	369	109	94	95	102	400	127	130	128	153	538	88	154	242
Eliminations	- 1	- 2	0	- 1	0	0	- 1	0	0	0	-1	-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	1.1-31.1	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
	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Average gross sales price NOK per mtds	5 618	5 654	6 385	5 999	5 865	6 455	6 166	6 885	7 431	6 701	6 756	6 951	7 838	7 709	7 770
Volume (`000 mtds)	450	468	115	125	119	111	470	115	106	99	96	416	90	100	190
Specialities volume (`000 mtds)	83	86					86					88
Contruction volume (`000 mtds)	210	212					209					178
Industrial volume (`000 mtds)	157	170					175					150
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	1.1-31.1	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
	2017	2018	2019	2019	2019	2019	2019	2020	2020	2020	2020	2020	2021	2021	2021
Average gross sales price NOK per mt	10 589	10 337	10 724	10 561	10 982	10 417	10 665	11 382	12 579	11 780	11 128	11 678	10 641	10 754	10 694
Volume (`000 mt)	150,7	150,1	34,5	42,4	37,6	38,6	153,1	40,0	33,9	34,2	40,3	148,4	47,5	42,4	89,9
High specialised as % of total cellulose product sales volum	72 %	62 %					73 %					77 %