Slide 1: 3rd Quarter 2024
3rd Quarter 2024 Oslo, 30 October 2024
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Business segments Capacity increase at Sarpsborg site Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 3rd quarter 2024
Highlights – 3rd quarter 2024 EBITDA1 NOK 524 million (NOK 482 million) Increased sales volume in BioSolutions Higher deliveries more than offset by increased wood costs and other operating expenses in BioMaterials Significantly higher deliveries of bioethanol and favourable product mix for
Slide 4: BioSolutions markets – Q3
BioSolutions markets – Q3 NOK per mtds ‘000 mtds 2023 Average gross sales price1 Sales volume 16 000 2024 100 86 88 81 81 14 000 74 76 72 12 402 12 582 75 11 609 11 756 11 862 11 877 12 000 11 319 50 10 000 25 8 000 0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q1 Q2 Q3 Q4 Sales price and sales volume
Slide 5: BioMaterials markets – Q3
BioMaterials markets – Q3 NOK per mt ‘000 mt 2023 Average gross sales price1 Sales volume 22 000 50 2024 44,5 40,0 41,4 20 000 40 36,8 38,6 34,9 17 551 32,6 18 000 16 449 16 260 16 591 15 786 15 700 16 126 30 16 000 20 14 000 12 000 10 10 000 0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q1 Q2 Q3 Q4 S
Slide 6: Fine Chemicals markets – Q3
Fine Chemicals markets – Q3 mNOK 2023 Operating revenues – quarter 2024 300 246 250 227 223 192 199 200 180 180 150 100 50 0 Q1 Q2 Q3 Q4 Fine chemical intermediates: Favourable product mix Bioethanol: Significantly higher deliveries vs Q3-23 Insignificant FX impact 6
Slide 7: Expansion investment to increase capacity at Sarpsborg site
Expansion investment to increase capacity at Sarpsborg site Expansion investment of 490 mNOK at the biorefinery in Norway Increase capacity by debottlenecking the site First out of two planned steps to increase capacity towards 2027 Part of investment plan announced at CMD Total capacity incre
Slide 8: Outlook
Outlook BioSolutions Sales volume in Q4 expected to be 70-75,000 tonnes with continued strong sales to agriculture Biovanillin market will continue to be impacted by the high supply of synthetic vanillin products BioMaterials Sales volume in Q4 expected to be ≈35,000 tonnes Fine Chemicals In
Slide 9: Financial performance Q3-24
Financial performance Q3-24
Slide 10: Borregaard key figures – Q3
Borregaard key figures – Q3 mNOK Operating revenues 2023 mNOK EBITDA1 2023 % EBITDA margin1 2023 30 27,4 28,1 2024 2 500 2024 600 2024 23,5 25 500 26,2 26,9 20,4 537 524 2 000 510 20 482 22,4 1 975 1 963 1 949 1 949 1 850 400 442 435 15 1 714 1 500 1 605 NOK 300 10 EPS cumulative 8,73 327 Q1 Q2 7,54
Slide 11: BioSolutions key figures – Q3
BioSolutions key figures – Q3 mNOK 2023 Operating revenues 1 250 2024 1 000 1088 1087 1117 750 995 956 1031 906 • Revenues 8% above Q3-23 500 • Higher sales volume 250 0 Q1 Q2 Q3 Q4 mNOK 2023 350 2024 300 • Higher sales volume, mainly to agriculture 250 318 EBITDA1 264 284 271 • Considering the high
Slide 12: BioMaterials key figures – Q3
BioMaterials key figures – Q3 mNOK 2023 Operating revenues 800 2024 600 684 704 683 661 622 • Revenues 20% above Q3-23 400 568 526 • Significantly higher deliveries 200 0 Q1 Q2 Q3 Q4 mNOK 2023 200 2024 150 EBITDA1 161 • Higher deliveries and price increases for certain cellulose grades 100 143 131 1
Slide 13: Fine Chemicals key figures – Q3
Fine Chemicals key figures – Q3 mNOK 2023 Operating revenues 250 2024 200 227 223 246 150 180 192 199 180 • Revenues 24% above Q3-23 100 • High deliveries of bioethanol 50 0 Q1 Q2 Q3 Q4 mNOK 2023 2024 125 100 110 102 122 • Fine chemical intermediates: Favourable product mix EBITDA1 75 84 86 • Bioeth
Slide 14: Currency impact
Currency impact 2023 mNOK Hedging effects2 on EBITDA1 2024 Borregaard’s currency basket3 20 106 0 104 102,3 102,2 -20 101,6 101,6 102 -40 100 -60 -48 -62 99,6 99,7 -80 -65 98 -86 96,5 -100 -89 -93 96 -97 Q1 Q2 Q3 Q4 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Net FX EBITDA1 impact ≈ +5mNOK vs Q3-23
Slide 15: Cash flow, investments and NIBD
Cash flow, investments and NIBD mNOK Cash flow from operating activities mNOK Investments NIBD1 change Increase 340 2 300 600 350 Decrease 287 2 200 500 300 90 2 100 21 400 51 1 250 2 000 300 1 900 524 526 515 546 200 172 165 287 200 391 1 800 2 170 150 130 35 2 073 100 115 1 700 69 20 250 100 20 1
Slide 16: Questions?
Questions? Per A Sørlie, President & CEO Per Bjarne Lyngstad, CFO Please note that you can submit questions online during the webcast 16
Slide 17: Appendix
Appendix
Slide 18: Borregaard – key figures
Borregaard – key figures Amounts in NOK million Q3-24 Q3-23 Change YTD-24 YTD-23 Change Operating revenues 1 949 1 714 14 % 5 873 5 527 6% EBITDA 1 524 482 9% 1 476 1 454 2% Depreciation property, plant and equipment -138 -121 -405 -351 Amortisation intangible assets -1 -1 -4 -4 Operating profit 385
Slide 19: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million Operating revenues Q3-24 Q3-23 Change EBITDA 1 Q3-24 Q3-23 Change Borregaard 1 949 1 714 14 % Borregaard 524 482 9% BioSolutions 1031 956 8% BioSolutions 271 235 15 % BioMaterials 683 568 20 % BioMaterials 131 1
Slide 20: Balance sheet
Balance sheet Amounts in NOK million 30.9.2024 30.6.2024 31.12.2023 Assets: Intangible assets 76 76 84 Property, plant and equipment 4 801 4 782 4 661 Right-of-use assets 483 497 527 Other assets 354 390 437 Investments in joint venture/associate companies 424 278 289 Non-current assets 6 138 6 023
Slide 21: Cash flow
Amounts in NOK million Q3-24 Q3-23 YTD-24 YTD-23 FY-2023 Cash flow Amounts in NOK million Profit before taxes 326 318 909 989 1 124 Amortisation, depreciation and impairment charges 139 122 409 355 490 Change in net working capital, etc -69 87 -341 -87 205 Dividend/share of profit from JV & associat
Slide 22: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q3-24 Q3-23 YTD-24 YTD-23 Net interest expenses -40 -37 -121 -101 Currency gain/loss -9 -4 -11 1 Share of profit/-loss from an associate -6 -2 -16 -5 Other financial items, net -4 1 -10 -5 Net financial items
Slide 23: Currency hedging strategy
Currency hedging strategy Purpose is to delay effects of currency fluctuations and secure competitiveness Hedging based on expected EBITDA1 impact2 Base hedge: 75%/50% on a rolling basis for 6/9 months for major currencies Extended hedge: 75%/50% of the next 24/36 months if USD and EUR are above
Slide 24: Credit facilities, solidity and debt
Credit facilities, solidity and debt Long-term credit facilities Debt and undrawn facilities • 1,500 mNOK revolving credit facilities, maturity 2025 and 2027, 30.9.2024 margin linked to sustainability targets 4 000 • 500 mNOK 5-year green bonds, maturity 2028 (issued June 2023) 3 600 • 40 mEUR 10-ye
Slide 25: Alternative performance measures
Alternative performance measures In the discussion of the reported operating results, financial position and cash flows, Borregaard refers to certain measures which are not defined by generally accepted accounting principles (GAAP) such as IFRS. Borregaard management makes regular use of these Alter
Slide 26: Important notice
Important notice This presentation is being made only to, and is only directed at, persons to whom such presentation may lawfully be communicated (’relevant persons’). Any person who is not a relevant person should not act or rely on this presentation or any of its contents. This presentation does n