Borregaard Asa · OSL:BRG
Borregaard Asa — Q1 2025 Earnings Presentation
27 slides from Borregaard Asa's earnings presentation, Apr 30, 2025
Slide 1: 1st Quarter 2025
1st Quarter 2025 Oslo, 30 April 2025
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Business segments Tariffs Alginor capital raise Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 1st quarter 2025
Highlights – 1st quarter 2025 EBITDA1 NOK 511 million (NOK 442 million) Strong sales to agriculture and all-time high result in BioSolutions Higher sales prices, offset by lower sales volume and increased wood costs in BioMaterials Lower sales prices for bioethanol in Fine Chemicals Positi
Slide 4: BioSolutions markets – Q1
BioSolutions markets – Q1 NOK per mtds ‘000 mtds 2024 Average gross sales price1 Sales volume 16 000 2025 100 88 14 000 13 364 81 81 81 77 12 582 75 11 862 11 877 11 866 12 000 50 10 000 25 8 000 0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1 Q2 Q3 Q4 Sales price and sales volume include lignin-based biopolymer
Slide 5: BioMaterials markets – Q1
BioMaterials markets – Q1 NOK per mt ‘000 mt 2024 Average gross sales price1 Sales volume 22 000 50 2025 44,5 41,4 20 000 37,9 38,6 17 897 40 35,4 18 000 16 591 17 098 15 700 16 126 30 16 000 20 14 000 12 000 10 10 000 0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1 Q2 Q3 Q4 Sales price and sales volume include
Slide 6: Fine Chemicals markets – Q1
Fine Chemicals markets – Q1 mNOK 2024 Operating revenues – quarter 2025 300 246 250 223 192 179 200 150 138 100 50 0 Q1 Q2 Q3 Q4 Sales revenues include fine chemical intermediates and bioethanol Fine chemical intermediates Increased sales prices Bioethanol Lower sales prices, partly offset by hi
Slide 7: Tariffs – possible first and second order effects on Borregaard
Tariffs – possible first and second order effects on Borregaard 1 First order effects: Balanced direct effects expected, 2 Second order effects: Uncertain, diversification specialisation strategy and local US sites support* and hedging mitigate indirect effects* Rest of World FX 1% Asia Borregaard’s
Slide 8: Alginor capital raise
Alginor capital raise 150 mNOK capital raise Borregaard, Must Invest, and Hatteland Group have invested 100 mNOK in Alginor and will underwrite a 50 mNOK rights issue. Ownership Borregaard's contribution will be 55 to 83 mNOK, resulting in a 36% to 43% ownership in Alginor. Total investment Borregaa
Slide 9: Outlook
Outlook BioSolutions Sales volume in 2025 forecast to be ≈330,000 tonnes with continued strong sales to agriculture Sales volume in Q2 expected to be ≈85,000 tonnes with a less favourable product mix vs Q1-25 US antidumping duties on vanillin from China expected to have a positive but limited
Slide 10: Financial performance Q1-25
Financial performance Q1-25
Slide 11: Borregaard key figures – Q1
Borregaard key figures – Q1 mNOK Operating revenues 2024 mNOK EBITDA1 2024 % EBITDA margin1 2024 2 500 2025 600 30 2025 2025 25,1 25 500 26,2 26,9 524 2 000 511 510 20 2 036 22,4 22,8 1 975 1 949 1 949 400 442 1 744 1 500 15 398 NOK 300 10 EPS cumulative 10 Q1 Q2 Q3 Q4 1 000 200 8 6 8,25 500 100 2,5
Slide 12: BioSolutions key figures – Q1
BioSolutions key figures – Q1 mNOK 2024 Operating revenues 1 250 2025 1 000 1088 1179 1117 1031 1005 750 • Revenues 8% above Q1-24 500 250 0 Q1 Q2 Q3 Q4 mNOK 2024 2025 400 • All-time high result 300 349 • Strong sales to agriculture EBITDA1 318 200 264 271 251 • Positive but limited impact from US a
Slide 13: BioMaterials key figures – Q1
BioMaterials key figures – Q1 mNOK 2024 Operating revenues 800 2025 600 704 689 683 622 613 • Revenues 2% below Q1-24 400 • Lower sales volume partly offset by increased prices 200 0 Q1 Q2 Q3 Q4 mNOK 2024 150 2025 EBITDA1 100 131 • Higher sales prices partly offset by lower sales volume 111 113 102
Slide 14: Fine Chemicals key figures – Q1
Fine Chemicals key figures – Q1 mNOK 2024 Operating revenues 250 2025 200 246 223 150 192 179 • Revenues 7% below Q1-24 100 138 • Lower sales prices for bioethanol 50 0 Q1 Q2 Q3 Q4 mNOK 2024 2025 125 100 122 • Fine chemical intermediates: Increased sales prices EBITDA1 75 102 • Bioethanol: Lower sal
Slide 15: Currency impact
Currency impact 2024 mNOK Hedging effects2 on EBITDA1 2025 Borregaard’s currency basket3 104 0 102,2 102,1 -25 102 100,3 -50 99,8 100 -75 97,8 98 -100 -89 -86 -95 -97 -93 -125 96 Q1 Q2 Q3 Q4 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Net FX EBITDA1 impact ≈ +45 mNOK vs Q1-24 Includes change in hedging effect
Slide 16: Cash flow, investments and NIBD
Cash flow, investments and NIBD Increase mNOK Cash flow from operating activities mNOK Investments NIBD1 change 600 350 2 300 Decrease 500 287 287 2 200 126 107 300 400 43 2 100 26 250 143 2 000 511 300 546 200 172 165 1 900 200 391 143 2 240 261 314 150 35 1 800 2 126 100 115 26 129 244 100 20 1 70
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 Q1-25 Q1-24 Change Operating revenues 2 036 1 975 3% EBITDA 1 511 442 16 % Depreciation property, plant and equipment -143 -133 Amortisation intangible assets -1 -1 Other income and expenses 1 0 0 Operating profit 367 308 19 % Financial items, net -48
Slide 20: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million Operating revenues Q1-25 Q1-24 Change EBITDA 1 Q1-25 Q1-24 Change Borregaard 2 036 1 975 3% Borregaard 511 442 16 % BioSolutions 1 179 1 088 8% BioSolutions 349 264 32 % BioMaterials 689 704 -2 % BioMaterials 11
Slide 21: Balance sheet
Balance sheet Amounts in NOK million 31.3.2025 31.12.2024 Assets: Intangible assets 85 88 Property, plant and equipment 4 992 5 026 Right-of-use assets 483 508 Other assets 598 524 Investments in joint venture/associate companies 400 417 Non-current assets 6 558 6 563 Inventories 1 474 1 498 Receiva
Slide 22: Cash flow
Amounts in NOK million Q1-25 Q1-24 FY-2024 Cash flow Amounts in NOK million Profit before taxes Amortisation, depreciation and impairment charges 319 144 261 134 1 079 561 Change in net working capital, etc -261 -466 -326 Dividend/share of profit from JV & associate companies 17 3 22 Taxes paid -90
Slide 23: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q1-25 Q1-24 Net interest expenses -36 -39 Currency gain/loss -7 0 Share of profit/-loss from an associate -17 -3 Other financial items, net 12 -5 Net financial items -48 -47 Amounts in NOK million Net interes
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 2027, margin 31.3.2025 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 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