Borregaard

Quarterly Report • Oct 21, 2022

Income Statement Borregaard Group Q3 2022
		1.7-30.9	1.1-30.9		1.1-31.12
Amounts in NOK million	2022	2021	2022	2021	2021
Operating revenues	1 752	1 429	5 111	4 359	5 805
Operating expenses	-1 318	-1 038	-3 832	-3 250	-4 433
EBITDA	434	391	1 279	1 109	1 372
Depreciation property, plant and equipment	-112	-103	-330	-310	-416
Amortisation intangible assets	-1	-1	-3	-3	-4
Other income and expenses	0	0	12	0	0
Operating profit	321	287	958	796	952
Financial items, net	-12	-18	-50	-55	-79
Profit before taxes	309	269	908	741	873
Income tax expence	-74	-64	-220	-174	-213
Profit for the period	235	205	688	567	660
Profit attributable to non-controlling interests	-4	-6	-20	-23	-32
Profit attributable to owners of the parent	239	211	708	590	692
Earnings per share (NOK)	2,40	2,12	7,10	5,93	6,95
EBITDA margin	24,8 %	27,4 %	25,0 %	25,4 %	23,6 %

Interim condensed statement of financial position Borregaard Group
	30.9.	30.6.	31.12.
Amounts in NOK million	2022	2022	2021
Assets:
Intangible assets	84	86	89
Property, plant and equipment	4 339	4 273	4 191
Right-of-use assets	342	345	351
Other assets	240	237	339
Investments in joint venture/associate company	143	144	173
Non-current assets	5 148	5 085	5 143
Inventories	1 230	1 035	792
Receivables	1 495	1 469	1 107
Cash and cash deposits	167	90	124
Current assets	2 892	2 594	2 023
Total assets	8 040	7 679	7 166
Equity and debt:
Group equity	3 929	3 899	4 222
Non-controlling interests	79	76	84
Equity	4 008	3 975	4 306
Provisions and other liabilities	438	361	257
Interest-bearing liabilities	1 523	1 926	1 320
Non-current liabilities	1 961	2 287	1 577
Interest-bearing liabilities	641	272	224
Other current liabilities	1 430	1 145	1 059
Current liabilities	2 071	1 417	1 283
Equity and liabilities	8 040	7 679	7 166
Equity ratio (%):	49,9 %	51,8 %	60,1 %

Interim condensed cash flow statement Borregaard Group Q3 2022
		1.7-30.9		1.1-30.9	1.1-31.12
Amounts in NOK million	2022	2021	2022	2021	2021
Profit before taxes	309	269	908	741	873
Amortisation, depreciation and impairment charges	113	104	333	313	420
Change in net working capital, etc	-111	8	-713	82	256
Dividend/share of profit from JV & associate company	0	0	31	0	6
Taxes paid	1	-3	-137	-61	-124
Cash flow from operating activities	312	378	422	1 075	1 431
Investments property, plant and equipment and intangible assets *	-84	-109	-252	-329	-556
Investment in associate company	0	-110	0	-110	-145
Other capital transactions	-1	2	5	5	9
Cash flow from Investing activities	-85	-217	-247	-434	-692
Dividends	0	0	-499	-249	-249
Proceeds from exercise of options/shares to employees	0	9	34	55	59
Buy-back of shares	0	-23	-23	-111	-118
Gain/(loss) on hedges for net investments in subsidiaries	-76	-6	-156	11	-14
Net paid to/from shareholders	-76	-20	-644	-294	-322
Proceeds from interest-bearing liabilities	0	0	837	300	300
Repayment of interest-bearing liabilities	-116	-212	-469	-668	-814
Change in interest-bearing receivables/other liabilities	51	1	119	-5	-1
Change in net interest-bearing liablities	-65	-211	487	-373	-515
Cash flow from financing activities	-141	-231	-157	-667	-837
Change in cash and cash equivalents	86	-70	18	-26	-98
Cash and cash equivalents at beginning of period	-38	143	5	96	96
Change in cash and cash equivalents	86	-70	18	-26	-98
Currency effects cash and cash equivalents	28	3	53	6	7
Cash and cash equivalents at the end of the period	76	76	76	76	5
* Investment by category:
Replacement investments	59	56	187	208	398
Expansion investments including investment in associate company	25	163	65	231	303
Total investments including investment in associate company	84	219	252	439	701

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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard	4 785	5 063	1 372	1 358	1 260	1 338	5 328	1 419	1 511	1 429	1 446	5 805	1 615	1 744	1 752	5 111
BioSolutions	2 775	2 982	797	819	733	733	3 082	812	885	838	934	3 469	948	1 098	1 007	3 053
BioMaterials	1 661	1 712	454	417	403	458	1 732	523	482	468	405	1 878	532	540	558	1 630
Fine Chemicals	374	406	128	131	131	153	543	90	155	132	114	491	143	119	200	462
Eliminations	- 25	- 37	- 7	- 9	- 7	- 6	- 29	-6	-11	-9	-7	-33	-8	-13	-13	-34
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	1.7-30.9	1.1-30.9
Amounts in NOK million Borregaard	2018 903	2019 1 007	2020 242	2020 361	2020 266	2020 263	2020 1 132	2021 302	2021 416	2021 391	2021 263	2021 1 372	2022 400	2022 445	2022 434	2022 1 279
BioSolutions	499	647	170	193	132	137	632	205	272	251	214	942	261	305	261	827
BioMaterials	312	234	46	101	91	80	318	64	102	91	27	284	97	91	101	289
Fine Chemicals	92	126	26	67	43	46	182	33	42	49	22	146	42	49	72	163
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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard	- 323	- 418	- 109	- 112	- 112	- 110	- 443	-106	-101	-103	-106	-416	-108	-110	-112	-330
BioSolutions	- 113	- 183	- 51	- 51	- 53	- 51	- 206	-48	-45	-47	-49	-189	-50	-53	-54	-157
BioMaterials	- 189	- 203	- 50	- 52	- 51	- 50	- 203	-50	-47	-47	-49	-193	-49	-48	-49	-146
Fine Chemicals	- 21	- 32	- 8	- 9	- 8	- 9	- 34	-8	-9	-9	-8	-34	-9	-9	-9	-27
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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard	- 4	- 4	- 1	- 1	- 1	- 2	- 5	-1	-1	-1	-1	-4	-1	-1	-1	-3
BioSolutions	- 4	- 4	- 1	- 1	- 1	- 2	- 5	-1	-1	-1	-1	-4	-1	-1	-1	-3
BioMaterials	0	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	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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard	0	-27	0	-96	0	-20	-116	0	0	0	0	0	0	12	0	12
BioSolutions	0	-16	0	-90	0	-7	-97	0	0	0	0	0	0	12	0	12
BioMaterials	0	-11	0	-6	0	-12	-18	0	0	0	0	0	0	0	0	0
Fine Chemicals	0	0	0	0	0	- 1	- 1	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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard	576	558	132	152	153	131	568	195	314	287	156	952	291	346	321	958
BioSolutions	382	444	118	51	78	77	324	156	226	203	164	749	210	263	206	679
BioMaterials Fine Chemicals	123 71	20 94	- 4 18	43 58	40 35	18 36	97 147	14 25	55 33	44 40	-22 14	91 112	48 33	43 40	52 63	143 136

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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard - EBITDA hedging gains & losses	-11	-76	-62	-84	-51	-44	-241	-15	-4	-16	6	-29	10	-3	-23	-16
BioSolutions	3	-33	-26	-38	-21	-18	-103	-5	-1	-6	1	-11	3	-5	-19	-21
BioMaterials	-3	-37	-30	-39	-25	-22	-116	-8	-3	-8	4	-15	5	1	-4	2
Fine Chemicals	-11	-6	-6	-7	-5	-4	-22	-2	0	-2	1	-3	2	1	0	3
Borregaard - USD EBITDA currency exposure (approx)	194	203					177					198
Borregaard - EUR EBITDA currency exposure (approx)	84	98					112					139
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	1.7-30.9	1.1-30.9
Amounts in NOK million	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Borregaard	4 705	4 951	1 347	1 337	1 229	1 314	5 227	1 394	1 491	1 406	1 424	5 715	1 591	1 720	1 723	5 034
BioSolutions	2 708	2 873	775	800	706	714	2 995	793	865	819	915	3 392	929	1 072	979	2 980
BioMaterials	1 630	1 679	445	407	395	448	1 695	513	472	457	398	1 840	521	530	546	1 597
Fine Chemicals	369	400	127	130	128	153	538	88	154	131	112	485	141	118	198	457
Eliminations	- 2	- 1	0	0	0	- 1	- 1	0	0	-1	-1	-2	0	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	1.7-30.9	1.1-30.9
	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Average gross sales price NOK per mtds	5 654	6 166	6 885	7 431	6 701	6 756	6 951	7 838	7 709	7 761	9 244	8 106	9 780	10 150	10 479	10 141
Volume (`000 mtds)	468	470	115	106	99	96	416	90	100	92	84	366	81	90	84	255
Specialities volume (`000 mtds)	86	86					88					89
Contruction volume (`000 mtds)	212	209					178					131
Industrial volume (`000 mtds)	170	175					150					146
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	1.7-30.9	1.1-30.9
	2018	2019	2020	2020	2020	2020	2020	2021	2021	2021	2021	2021	2022	2022	2022	2022
Average gross sales price NOK per mt	10 337	10 665	11 382	12 579	11 780	11 128	11 678	10 641	10 754	10 972	10 911	10 807	12 595	13 656	14 880	13 662
Volume (`000 mt)	150,1	153,1	40,0	33,9	34,2	40,3	148,4	47,5	42,4	40,2	34,3	164,4	39,4	36,6	34,7	110,7
High specialised as % of total cellulose product sales volum	62 %	73 %					77 %					79 %