Slide 1: 2nd Quarter 2024
2nd Quarter 2024 Sarpsborg, 17 July 2024
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Business segments Other matters Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 2nd quarter 2024
Highlights – 2nd quarter 2024 EBITDA1 NOK 510 million (NOK 537 million) Improved product mix and strong result in BioSolutions Lower sales prices and higher wood costs for BioMaterials Solid result in Fine Chemicals Negative net currency effects Strong cash flow 1 Alternative performance
Slide 4: BioSolutions markets – Q2
BioSolutions markets – Q2 NOK per mtds ‘000 mtds 2023 Average gross sales price1 Sales volume 16 000 2024 100 86 88 81 14 000 74 76 72 12 402 12 582 75 11 609 11 756 11 862 12 000 11 319 50 10 000 25 8 000 0 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q1 Q2 Q3 Q4 Sales price and sales volume include lignin-
Slide 5: BioMaterials markets – Q2
BioMaterials markets – Q2 NOK per mt ‘000 mt 2023 Average gross sales price1 Sales volume 22 000 50 2024 44,5 40,0 20 000 40 36,8 38,6 34,9 17 551 32,6 18 000 16 449 16 260 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 Q1 Q2 Q3 Q4 Sales price and sal
Slide 6: Fine Chemicals markets – Q2
Fine Chemicals markets – Q2 mNOK 2023 Sales revenues – quarter 2024 250 226 222 189 197 200 178 179 150 100 50 0 Q1 Q2 Q3 Q4 Sales revenues include fine chemical intermediates and bioethanol Fine chemical intermediates: Favourable product mix Bioethanol: High deliveries and stable prices, delive
Slide 7: Other matters and subsequent events
Other matters and subsequent events BORREGAARD INVESTS ANTI-DUMPING INVESTIGATIONS FURTHER INTO ALGINOR CHINESE VANILLIN • Borregaard participated with its fully diluted pro-rata • Both in EU2) and the US3), anti-dumping investigations share in the 400 mNOK capital raise in Alginor1) to fund have be
Slide 8: Outlook
Outlook BioSolutions Sales volume in 2024 forecast to be ≈330,000 tonnes Sales volume in Q3 is expected to be 80-85,000 tonnes Biovanillin market will continue to be impacted by the high supply of synthetic vanillin products BioMaterials Sales volume in 2024 is forecast to be higher than the
Slide 9: Financial performance Q2-24
Financial performance Q2-24
Slide 10: Borregaard key figures – Q2
Borregaard key figures – Q2 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 20,4 537 2 000 510 20 482 22,4 1 975 1 963 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 Q3 Q4 1 000 8
Slide 11: BioSolutions key figures – Q2
BioSolutions key figures – Q2 mNOK 2023 Operating revenues 1 250 2024 1 000 1088 1087 1117 750 995 956 906 • Revenues 3% above Q2-23 500 • Higher sales volume and improved product mix 250 0 Q1 Q2 Q3 Q4 mNOK 2023 350 2024 300 250 318 • Improved product mix EBITDA1 264 284 200 150 224 235 • Reduced en
Slide 12: BioMaterials key figures – Q2
BioMaterials key figures – Q2 mNOK 2023 Operating revenues 800 2024 600 684 704 661 622 • Revenues 6% below Q2-23 400 568 526 • Lower sales prices, partly offset by higher sales volume 200 0 Q1 Q2 Q3 Q4 mNOK 2023 200 2024 • Lower sales prices 150 EBITDA1 161 • Higher wood costs 100 143 127 • Increas
Slide 13: Fine Chemicals key figures – Q2
Fine Chemicals key figures – Q2 mNOK 2023 Operating revenues 250 2024 200 227 223 150 180 192 199 180 • Revenues 2% below Q2-23 100 • Slightly lower deliveries of bioethanol 50 0 Q1 Q2 Q3 Q4 mNOK 2023 2024 125 100 110 102 • Fine chemical intermediates: Favourable product mix EBITDA1 75 84 86 • Bioet
Slide 14: Currency impact
Currency impact 2023 mNOK Hedging effects2 on EBITDA1 2024 Borregaard’s currency basket3 20 106 0 104 102,3 -20 101,6 101,6 102 -40 100 -60 -48 -62 99,6 99,7 -80 -65 98 96,5 -100 -89 -93 96 -97 Q1 Q2 Q3 Q4 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Net FX EBITDA1 impact ≈-30 mNOK vs Q2-23 Includes chan
Slide 15: Cash flow, investments and NIBD
Cash flow, investments and NIBD Increase mNOK Cash flow from operating activities mNOK Investments mNOK NIBD1 change Decrease 600 340 2 300 350 2 200 11 500 300 261 90 2 100 9 400 155 250 2 000 300 526 515 546 200 172 1 900 510 200 411 158 374 130 35 1 800 2171 2170 150 115 100 250 1 700 20 100 20 0
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 Q2-24 Q2-23 Change YTD-24 YTD-23 Change Operating revenues 1 949 1 963 -1 % 3 924 3 813 3% EBITDA 1 510 537 -5 % 952 972 -2 % Depreciation property, plant and equipment -134 -116 -267 -230 Amortisation intangible assets -2 -2 -3 -3 Operating profit 374
Slide 19: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million Operating revenues Q2-24 Q2-23 Change EBITDA 1 Q2-24 Q2-23 Change Borregaard 1 949 1 963 -1 % Borregaard 510 537 -5 % BioSolutions 1117 1087 3% BioSolutions 318 284 12 % BioMaterials 622 661 -6 % BioMaterials 90
Slide 20: Balance sheet
Balance sheet Amounts in NOK million 30.6.2024 31.3.2024 31.12.2023 Assets: Intangible assets 76 82 84 Property, plant and equipment 4 782 4 728 4 661 Right-of-use assets 497 524 527 Other assets 390 362 437 Investments in joint venture/associate companies 278 286 289 Non-current assets 6 023 5 982
Slide 21: Cash flow
Amounts in NOK million Q2-24 Q2-23 YTD-24 YTD-23 FY-2023 Cash flow Amounts in NOK million Profit before taxes 322 379 583 671 1 124 Amortisation, depreciation and impairment charges 136 118 270 233 490 Change in net working capital, etc 194 19 -272 -174 205 Dividend/share of profit from JV & associa
Slide 22: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q2-24 Q2-23 YTD-24 YTD-23 Net interest expenses -42 -35 -81 -64 Currency gain/loss -2 -1 -2 5 Share of profit/-loss from an associate -7 -1 -10 -3 Other financial items, net -1 -3 -6 -6 Net financial items -5
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, 30.6.2024 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