Slide 1: 4th Quarter 2024
4th Quarter 2024 Oslo, 29 January 2025
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Proposed dividend Business segments Environmental investment Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 4th quarter 2024
Highlights – 4th quarter 2024 EBITDA1 NOK 398 million (NOK 327 million) Increased sales and strong result in BioSolutions Higher deliveries and improved product mix, offset by increased wood costs in BioMaterials Lower deliveries in Fine Chemicals Positive net currency effects 1 Alternativ
Slide 4: Highlights – full year 2024
Highlights – full year 2024 All-time high EBITDA1 1,874 mNOK (1,781 mNOK) Strong result in BioSolutions driven by increased specialisation Increased sales more than offset by higher costs for BioMaterials Fine Chemicals in line with 2023 Slightly negative FX impact ROCE1 17.1% pre-tax (1
Slide 5: Dividend proposal for 2024
Dividend proposal for 2024 Borregaard’s dividend policy To pay regular and progressive dividends reflecting expected long-term earnings and cash flows Dividend targeted between 30% and 50% of net profit A dividend proposal of NOK 4.25 per share proposed by the Board of Directors NOK 0.50 incre
Slide 6: BioSolutions markets – Q4
BioSolutions markets – Q4 NOK per mtds ‘000 mtds 2023 Average gross sales price1 Sales volume 16 000 2024 100 86 88 81 81 77 14 000 74 76 72 12 402 12 582 75 11 609 11 756 11 862 11 877 11 866 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 Q4'24 Q1 Q2 Q3 Q4 Sales price
Slide 7: BioSolutions markets – full year
BioSolutions markets – full year NOK per mtds ‘000 mtds Specialities Average gross sales price1 Sales volume1 Industrial 16 000 416 Construction 400 366 14 000 88 334 327 11 753 12 045 308 12 000 300 89 10 369 84 85 150 73 10 000 8 106 200 146 133 135 145 8 000 6 951 100 178 6 000 131 117 100 97 4 0
Slide 8: BioSolutions – Significant specialisation and value growth over time
BioSolutions – Significant specialisation and value growth over time Sales revenues (mNOK) 2 500 Strong development in sales to 2 250 Specialities and Industrial 2 000 Gross sales trebled from 2012 1 750 1 500 1 250 Significant portfolio optimisation 1 000 Increased specialisation 750 Reduced
Slide 9: BioMaterials markets – Q4
BioMaterials markets – Q4 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 35,4 17 551 17 098 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 Q
Slide 10: BioMaterials markets – full year
BioMaterials markets – full year NOK per mt ‘000 mtds Average gross sales price1 Sales volume1 20 000 250 100% 85% 81% 83% 77% 79% 18 000 16 527 16 343 200 80% 16 000 14 283 150 60% 14 000 11 678 100 40% 12 000 10 807 148 164 160 147 144 10 000 50 20% 8 000 0 0% 2020 2021 2022 2023 2024 2020 2021 20
Slide 11: Fine Chemicals markets – Q4 & full year
Fine Chemicals markets – Q4 & full year mNOK 2023 mNOK Operating revenues – quarter 2024 Operating revenues – full year 300 1 000 246 786 799 250 227 223 800 192 199 632 200 180 180 543 600 491 150 138 400 100 50 200 0 0 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 Sales revenues include fine chemical inter
Slide 12: Environmental investment at the Sarpsborg biorefinery
Environmental investment at the Sarpsborg biorefinery Environmental investment of 55 mNOK Installation of air preheater technology in existing bio-boiler Enhanced efficiency and reduced dependency on LNG Part of transition plan to reduce CO2 emissions towards 2030 Highly profitable investment
Slide 13: Outlook
Outlook BioSolutions Sales volume in 2025 forecast to be ≈330,000 tonnes with continued strong sales to agriculture Sales volume in Q1 expected to be ≈80,000 tonnes US authorities announced preliminary antidumping duties on vanillin from China – expect positive, but limited impact for Borregaa
Slide 14: Financial performance Q4-24
Financial performance Q4-24
Slide 15: Borregaard key figures – Q4
Borregaard key figures – Q4 mNOK Operating revenues 2023 mNOK EBITDA1 2023 % EBITDA margin1 2023 30 27,4 28,1 2024 2 500 2024 600 2024 23,5 22,8 25 500 26,2 26,9 537 524 2 000 510 20 482 22,4 1 975 1 963 1 949 1 949 20,4 1 850 400 442 435 1 744 15 1 714 1 500 398 1 605 NOK 300 10 EPS cumulative 327
Slide 16: Borregaard key figures – full year
Borregaard key figures – full year mNOK Operating revenues mNOK EBITDA1 & EBITDA margin1 % % ROCE1 & EPS NOK 8 000 25,0 24,6 20 18,1 18,3 12 2 000 23,6 23,9 17,1 25 21,2 16,1 7 617 7 000 1 750 1 874 10 7 132 16 1 781 6 881 6 000 1 500 20 1 643 11,4 8,95 8 5 805 5 000 8,73 1 250 12 8,25 1 372 5 328 1
Slide 17: BioSolutions key figures – Q4
BioSolutions key figures – Q4 mNOK 2023 Operating revenues 1 250 2024 1 000 1088 1087 1117 • Revenues 11% above Q4-23 750 995 956 1031 906 1005 • Higher sales volume 500 250 • Full year growth 8% 0 Q1 Q2 Q3 Q4 mNOK 2023 350 2024 300 250 318 • Higher sales volume, mainly to agriculture EBITDA1 264 28
Slide 18: BioMaterials key figures – Q4
BioMaterials key figures – Q4 mNOK 2023 Operating revenues 800 2024 600 684 704 661 622 683 • Revenues 17% above Q4-23 568 613 400 526 • Higher sales volume 200 • Full year growth 8% 0 Q1 Q2 Q3 Q4 mNOK 2023 200 2024 150 • Higher sales volume, increased sales prices and improved product mix EBITDA1 1
Slide 19: Fine Chemicals key figures – Q4
Fine Chemicals key figures – Q4 mNOK 2023 Operating revenues 250 2024 200 227 223 246 • Revenues 23% below Q4-23 150 180 192 199 180 100 138 • Lower deliveries 50 • Full year increase 2% 0 Q1 Q2 Q3 Q4 mNOK 2023 2024 • Fine chemical intermediates: Lower deliveries, improved 125 100 122 product mix 11
Slide 20: Currency impact
Currency impact 2023 mNOK Hedging effects2 on EBITDA1 2024 Borregaard’s currency basket3 20 106 104,0 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 -93 96 -97 Q1 Q2 Q3 Q4 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 Net FX EBITDA1 impact ≈
Slide 21: Cash flow, investments and NIBD
Cash flow, investments and NIBD Increase mNOK Cash flow from operating activities mNOK Investments NIBD1 change 340 2 300 Decrease 600 350 500 287 287 2 200 103 300 90 400 43 2 100 122 250 2 000 68 300 515 546 200 172 165 1 900 398 200 391 2 240 314 150 35 1 800 287 100 115 2 073 250 244 100 20 1 70
Slide 22: Questions?
Questions? Per A Sørlie, President & CEO Per Bjarne Lyngstad, CFO Please note that you can submit questions online during the webcast 22
Slide 23: Appendix
Appendix
Slide 24: Borregaard – key figures
Borregaard – key figures Amounts in NOK million Q4-24 Q4-23 Change FY-24 FY-23 Change Operating revenues 1 744 1 605 9% 7 617 7 132 7% EBITDA 1 398 327 22 % 1 874 1 781 5% Depreciation property, plant and equipment -151 -134 -556 -485 Amortisation intangible assets -1 -1 -5 -5 Other income and expen
Slide 25: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million Operating revenues Q4-24 Q4-23 Change EBITDA 1 Q4-24 Q4-23 Change Borregaard 1 744 1 605 9% Borregaard 398 327 22 % BioSolutions 1 005 906 11 % BioSolutions 251 172 46 % BioMaterials 613 526 17 % BioMaterials 10
Slide 26: Balance sheet
Balance sheet Amounts in NOK million 31.12.2024 30.9.2024 31.12.2023 Assets: Intangible assets 88 76 84 Property, plant and equipment 5 026 4 801 4 661 Right-of-use assets 508 483 527 Other assets 524 354 437 Investments in joint venture/associate companies 417 424 289 Non-current assets 6 563 6 138
Slide 27: Cash flow
Amounts in NOK million Q4-24 Q4-23 FY-24 FY-23 Cash flow Amounts in NOK million Profit before taxes Amortisation, depreciation and impairment charges 170 152 135 135 1 079 561 1 124 490 Change in net working capital, etc 15 292 -326 205 Dividend/share of profit from JV & associate companies 6 - 22 9
Slide 28: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q4-24 Q4-23 FY-24 FY-23 Net interest expenses -39 -40 -160 -141 Currency gain/loss -6 -16 -17 -15 Share of profit/-loss from an associate -6 -4 -22 -9 Other financial items, net 5 3 -5 -2 Net financial items
Slide 29: 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 30: 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 2027, margin 31.12.2024 linked to sustainability targets 4 000 • 500 mNOK 5-year green bonds, maturity 2028 (issued June 2023) 3 600 • 50 mUSD 10-year loan,
Slide 31: 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 32: 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