Borregaard Asa · OSL:BRG
Borregaard Asa — Q3 2021 Earnings Presentation
26 slides from Borregaard Asa's earnings presentation, Oct 21, 2021
Slide 1: 3rd Quarter 2021
3rd Quarter 2021 Oslo, 21 October 2021
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Business segments Investment in Alginor Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 3rd quarter 2021
Highlights – 3rd quarter 2021 EBITDA1 NOK 391 million (NOK 266 million) Continued strong performance in BioSolutions Higher deliveries and improved product mix in BioMaterials High sales volume and increased sales price for bioethanol High spot energy prices, lower wood costs Strong cash
Slide 4: BioSolutions markets – Q3
BioSolutions markets – Q3 2020 NOK per mtds Average gross sales price1 ‘000 mtds Sales volume1 8 500 150 2021 7 838 7 709 7 761 115 8 000 125 7 431 106 100 99 96 7 500 100 90 92 6 885 6 756 7 000 6 701 75 6 500 50 6 000 25 5 500 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q1 Q2 Q3 Q4 Sales price and
Slide 5: BioMaterials markets – Q3
BioMaterials markets – Q3 2020 NOK per mt Average gross sales price1 ‘000 mt 47,5 Sales volume 14 000 50 2021 42,4 40,2 40,3 40,0 13 000 12 579 40 33,9 34,2 11 780 12 000 11 382 30 11 128 10 972 10 641 10 754 11 000 20 10 000 10 9 000 0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q1 Q2 Q3 Q4 Sales pri
Slide 6: Fine Chemicals markets – Q3
Fine Chemicals markets – Q3 2020 mNOK Sales revenues – quarter 2021 175 154 153 150 127 130 128 131 125 100 88 75 50 25 0 Q1 Q2 Q3 Q4 Sales revenues include fine chemical intermediates and bioethanol High sales volume and increased price for bioethanol Slightly lower sales volume for fine chemical i
Slide 7: Investment in Alginor – a «blue» biorefinery concept
Investment in Alginor – a «blue» biorefinery concept Alginor Marine biotech company in development phase based in Haugesund, Norway Core technology: Sustainable harvesting and biorefining of kelp High-value ingredients to global markets for pharmaceutical and nutraceutical applications Similar
Slide 8: Outlook
Outlook BioSolutions Sales volume in Q4-21 expected to be between 85,000 and 90,000 tonnes The new biovanillin capacity will be gradually phased into the market BioMaterials Average price in sales currency expected to be 2-3% below the 2020 level for the full year Sales volume in Q4-21 will
Slide 9: Financial performance Q3-21
Financial performance Q3-21
Slide 10: Borregaard key figures – Q3
Borregaard key figures – Q3 mNOK Operating revenues 2020 mNOK EBITDA1 2020 % EBITDA margin1 2020 40 1 750 2021 2021 2021 27,5 27,4 400 416 30 21,3 391 1 500 350 1 511 361 20 26,6 1 429 1 419 1 250 300 1 372 1 358 21,1 1 338 17,6 19,7 1 260 302 10 1 000 250 266 263 NOK0 242 750 200 8 EPS cumulative Q
Slide 11: BioSolutions key figures – Q3
BioSolutions key figures – Q3 mNOK 2020 Operating revenues 800 2021 885 838 819 812 797 • Revenues 14% above Q3-202 733 733 600 400 • Price increases and a favourable product mix 200 • Lower sales volume due to reduced raw material base 0 Q1 Q2 Q3 Q4 mNOK 2020 250 2021 • 272 Significant improvement
Slide 12: BioMaterials key figures – Q3
BioMaterials key figures – Q3 mNOK 2020 Operating revenues 2021 500 523 482 400 468 458 454 • Revenues increased by 16% vs Q3-20 417 403 300 200 • Higher deliveries of speciality cellulose 100 0 Q1 Q2 Q3 Q4 mNOK 2020 100 102 2021 • Higher deliveries and improved product mix 101 80 • 91 91 3% lower a
Slide 13: Fine Chemicals key figures – Q3
Fine Chemicals key figures – Q3 mNOK 2020 Operating revenues 150 2021 155 153 125 132 131 131 128 100 75 • Revenues in line with Q3-20 90 50 25 0 Q1 Q2 Q3 Q4 mNOK 2020 70 2021 • High sales volume and increased sales price for bioethanol 60 67 50 • The bioethanol production volume continued at a high
Slide 14: Currency impact
Currency impact 2020 mNOK Hedging effects2 on EBITDA1 2021 Borregaard’s currency basket3 20 110 0 104,9 105 -20 -4 -15 -16 99,9 -40 100 -60 -44 -51 97,8 94,2 -62 95 97,3 92,2 -80 90,7 -100 -84 90 Q1 Q2 Q3 Q4 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Net FX EBITDA1 impact ≈+5 mNOK vs Q3-20 Includ
Slide 15: Cash flow, investments and NIBD
Cash flow, investments and NIBD Increase mNOK Cash flow from operating activities mNOK Investments mNOK NIBD1 change 219 Decrease 500 458 1 700 416 191 200 1 600 400 378 38 1 500 17 14 150 125 21 300 163 239 99 1 400 391 95 32 200 100 1605 153 1 300 219 47 153 36 1477 100 50 93 1 200 52 59 56 8 0 0
Slide 16: Questions?
Questions? Per A Sørlie, President & CEO Per Bjarne Lyngstad, CFO 16
Slide 17: Appendix
Appendix
Slide 18: Borregaard – key figures
Borregaard – key figures Amounts in NOK million Q3-21 Q3-20 Change YTD-21 YTD-20 Change Operating revenues 1 429 1 260 13 % 4 359 3 990 9% EBITDA 1 391 266 47 % 1 109 869 28 % Depreciation property, plant and equipment -103 -112 -310 -333 Amortisation intangible assets -1 -1 -3 -3 Other income and e
Slide 19: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million 1 Operating revenues Q3-21 Q3-20 Change EBITDA Q3-21 Q3-20 Change Borregaard 1 429 1 260 13 % Borregaard 391 266 47 % BioSolutions 838 733 14 % BioSolutions 251 132 90 % BioMaterials 468 403 16 % BioMaterials 91
Slide 20: Cash flow
Cash flow Amounts in NOK million Q3-21 Q3-20 YTD-21 YTD-20 FY-2020 Amounts in NOK million Profit before taxes 269 133 741 377 496 Amortisation, depreciation and impairment charges 104 113 313 336 449 Change in net working capital, etc 8 -57 82 -221 -21 Dividend (share of profit) from JV - - - 63 51
Slide 21: Balance sheet
Balance sheet Amounts in NOK million 30.09.2021 30.06.2021 31.12.2020 Assets: Intangible assets 90 93 86 Property, plant and equipment 4 052 4 009 3 973 Right-of-use assets 358 369 381 Other assets 277 272 380 Investment in joint venture and associate company 147 39 38 Non-current assets 4 924 4 782
Slide 22: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q3-21 Q3-20 YTD-21 YTD-20 Net interest expenses -15 -18 -46 -59 Currency gain/loss -2 -1 -1 1 Share of profit/-loss from an associate 0 0 0 0 Other financial items, net -1 -1 -8 -2 Net financial items -18 -20
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 2024 and 2026, 30.9.2021 margin linked to sustainability targets 3 500 3 250 • 400 mNOK 5-year bond issue, maturity 2023 3 000 • 40 mEUR 10-year loan, matur
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