Borregaard Asa · OSL:BRG
Borregaard Asa — Q1 2024 Earnings Presentation
27 slides from Borregaard Asa's earnings presentation, Apr 24, 2024
Slide 1: 1st Quarter 2024
1st Quarter 2024 Oslo, 24 April 2024
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Business segments Environmental investment Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 1st quarter 2024
Highlights – 1st quarter 2024 EBITDA1 NOK 442 million (NOK 435 million) Increased result and sales volume in BioSolutions Higher sales volume and reduced sales prices in BioMaterials Lower result in Fine Chemicals with low deliveries of bioethanol Reduced costs for energy and chemicals par
Slide 4: BioSolutions markets – Q1
BioSolutions markets – Q1 NOK per mtds ‘000 mtds 2023 Average gross sales price1 Sales volume 16 000 2024 15 000 100 86 81 14 000 74 76 72 12 402 12 582 75 13 000 11 609 11 756 12 000 11 319 50 11 000 10 000 25 9 000 8 000 0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1 Q2 Q3 Q4 Sales price and sales volume incl
Slide 5: BioMaterials markets – Q1
BioMaterials markets – Q1 NOK per mt ‘000 mt 2023 Average gross sales price1 Sales volume 22 000 50 2024 44,5 20 000 40,0 17 551 40 36,8 34,9 18 000 16 449 16 260 32,6 15 786 15 700 16 000 30 14 000 20 12 000 10 10 000 8 000 0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1 Q2 Q3 Q4 Sales price and sales volume in
Slide 6: Fine Chemicals markets – Q1
Fine Chemicals markets – Q1 mNOK 2023 Sales revenues – quarter 2024 250 226 189 197 200 178 179 150 100 50 0 Q1 Q2 Q3 Q4 Sales revenues include fine chemical intermediates and bioethanol Fine chemical intermediates: Increased sales volume, prices reduced as a result of price reduction for the main
Slide 7: Borregaard transition plan to cut scope 1 and 2 GHG emissions
Borregaard transition plan to cut scope 1 and 2 GHG emissions 7
Slide 8: Environmental investment of 275 mNOK in Norway
Environmental investment of 275 mNOK in Norway Infrastructure investment Upgrade of the electricity transformation capacity End-of-life replacement of equipment In collaboration with regional grid owner Elvia Prerequisite for climate targets and growth Facilitating delivery of long-term envi
Slide 9: Outlook
Outlook BioSolutions The diversified market strategy expected to mitigate effects of a slowdown in certain end-markets Sales volume in 2024 forecast to be ≈330,000 tonnes, depending on the global economic development Sales volume in Q2 expected to be in line with Q2-23 Biovanillin market wil
Slide 10: Financial performance Q1-24
Financial performance Q1-24
Slide 11: Borregaard key figures – Q1
Borregaard key figures – Q1 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 20,4 537 2 000 20 482 22,4 1 975 1 963 1 850 400 442 435 15 1 714 1 500 1 605 NOK 300 10 EPS cumulative 8,73 327 Q1 Q2 7,54 Q3 Q4 1 000 8 200 5,16 6 500
Slide 12: BioSolutions key figures – Q1
BioSolutions key figures – Q1 mNOK 2023 Operating revenues 1 250 2024 1 000 1088 1087 750 995 956 906 • Revenues 9% above Q1-23 500 • Higher sales volume 250 0 Q1 Q2 Q3 Q4 mNOK 2023 300 2024 250 284 264 • Higher sales volume EBITDA1 200 235 224 150 172 • Reduced energy costs partly offset by cost in
Slide 13: BioMaterials key figures – Q1
BioMaterials key figures – Q1 mNOK 2023 Operating revenues 800 2024 600 684 704 661 • Revenues 3% above Q1-23 400 568 526 • Higher sales volume 200 0 Q1 Q2 Q3 Q4 mNOK 2023 200 2024 • Higher sales volume and inventory reduction 150 EBITDA1 161 • Lower sales prices 100 143 127 • Higher wood costs offs
Slide 14: Fine Chemicals key figures – Q1
Fine Chemicals key figures – Q1 mNOK 2023 Operating revenues 250 2024 200 227 150 180 192 199 180 • Revenues 7% above Q1-23 100 • Increased sales volume of fine chemical intermediates 50 0 Q1 Q2 Q3 Q4 mNOK 2023 2024 125 • Fine chemical intermediates: Increased sales volume, sales prices 100 reduced
Slide 15: Currency impact
Currency impact 2023 mNOK Hedging effects2 on EBITDA1 2024 Borregaard’s currency basket3 20 106 0 104 102,3 -20 101,6 102 -40 100 -60 -48 -62 99,6 99,7 -80 -65 98 96,5 -100 -89 -93 96 Q1 Q2 Q3 Q4 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Net FX EBITDA1 impact ≈-5 mNOK vs Q1-23 Includes change in hedging eff
Slide 16: Cash flow, investments and NIBD
Cash flow, investments and NIBD Increase mNOK Cash flow from operating activities mNOK Investments mNOK NIBD1 change 340 Decrease 350 2 300 600 6 2 200 500 300 90 73 261 2 100 400 250 2 000 162 300 1 900 115 526 515 200 1 800 411 158 200 1 700 150 130 2171 107 115 100 20 250 1 600 442 466 111 100 20
Slide 17: Questions?
Questions? Per A Sørlie, President & CEO Per Bjarne Lyngstad, CFO Please note that you can submit questions online during the webcast 17
Slide 18: Appendix
Appendix
Slide 19: Borregaard – key figures
Borregaard – key figures Amounts in NOK million Q1-24 Q1-23 Change Operating revenues 1 975 1 850 7% EBITDA 1 442 435 2% Depreciation property, plant and equipment -133 -114 Amortisation intangible assets -1 -1 Operating profit 308 320 -4 % Financial items, net -47 -28 Profit before taxes 261 292 -1
Slide 20: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million Operating revenues Q1-24 Q1-23 Change EBITDA 1 Q1-24 Q1-23 Change Borregaard 1 975 1 850 7% Borregaard 442 435 2% BioSolutions 1088 995 9% BioSolutions 264 224 18 % BioMaterials 704 684 3% BioMaterials 111 127 -
Slide 21: Balance sheet
Balance sheet Amounts in NOK million 31.3.2024 31.12.2023 Assets: Intangible assets 82 84 Property, plant and equipment 4 728 4 661 Right-of-use assets 524 527 Other assets 362 437 Investments in joint venture/associate companies 286 289 Non-current assets 5 982 5 998 Inventories 1 348 1 447 Receiva
Slide 22: Cash flow
Amounts in NOK million Q1-24 Q1-23 Cash flow Amounts in NOK million Profit before taxes 261 292 Amortisation, depreciation and impairment charges 134 115 Change in net working capital, etc -466 -193 Dividend/share of profit from JV & associate companies 3 6 Taxes paid -115 -109 Cash flow from operat
Slide 23: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q1-24 Q1-23 Net interest expenses -39 -29 Currency gain/loss 0 6 Share of profit/-loss from an associate -3 -2 Other financial items, net -5 -3 Net financial items -47 -28 Amounts in NOK million Net interest-
Slide 24: 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 25: 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, 31.3.2024 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 26: 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 27: 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