Borregaard ASA · OSL:BRG
Borregaard ASA — Q1 2022 Earnings Presentation
25 slides from Borregaard ASA's earnings presentation, May 3, 2022
Slide 1: 1st Quarter 2022
1st Quarter 2022 Oslo, 3 May 2022
Slide 2: Agenda
Agenda Per A Sørlie, President & CEO Highlights Business segments Outlook Per Bjarne Lyngstad, CFO Financial performance 2
Slide 3: Highlights – 1st quarter 2022
Highlights – 1st quarter 2022 EBITDA1 NOK 400 million (NOK 302 million) Improved result in all business areas Increased sales prices and strong product mix in BioSolutions Higher sales prices in BioMaterials Increased deliveries and sales prices in Fine Chemicals Higher energy, freight a
Slide 4: BioSolutions markets – Q1
BioSolutions markets – Q1 NOK per mtds ‘000 mtds 2021 Average gross sales price1 Sales volume 11 000 125 2022 9 780 100 10 000 100 90 92 9 244 81 84 9 000 75 7 838 7 709 7 761 8 000 50 7 000 25 6 000 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1 Q2 Q3 Q4 Sales price and sales volume include lignin-based biopol
Slide 5: BioMaterials markets – Q1
BioMaterials markets – Q1 NOK per mt ‘000 mt 2021 Average gross sales price1 47,5 Sales volume 14 000 50 2022 42,4 40,2 39,4 13 000 12 595 40 34,3 12 000 30 10 754 10 972 10 911 11 000 10 641 20 10 000 10 9 000 0 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q1 Q2 Q3 Q4 Sales price and sales volume include speciali
Slide 6: Fine Chemicals markets – Q1
Fine Chemicals markets – Q1 mNOK 2021 Sales revenues – quarter 2022 200 175 154 150 141 131 125 112 100 88 75 50 25 0 Q1 Q2 Q3 Q4 Sales revenues include fine chemical intermediates and bioethanol Higher deliveries and increased sales prices for both fine chemical intermediates and bioethanol 6
Slide 7: Outlook
Outlook BioSolutions Total sales volume is expected to be slightly below the 2021 volume Positive market development for several biopolymer applications are expected to continue, improving product mix and average price in sales currency Biovanillin market expected to remain strong and the new
Slide 8: Financial performance Q1-22
Financial performance Q1-22
Slide 9: Borregaard key figures – Q1
Borregaard key figures – Q1 mNOK Operating revenues 2021 mNOK EBITDA1 2021 % EBITDA margin1 2021 40 1 750 2022 2022 2022 400 24,8 416 30 400 391 1 500 1 615 350 27,5 27,4 18,2 1 511 20 1 446 1 429 1 419 1 250 300 21,3 302 10 1 000 250 263 NOK0 750 200 8 EPS cumulative Q1 Q2 Q3 Q4 150 6 500 6,95 100
Slide 10: BioSolutions key figures – Q1
BioSolutions key figures – Q1 mNOK 2021 Operating revenues 1 000 2022 948 800 • 934 Revenues 17% above Q1-21 885 838 600 812 • Increased sales prices and a strong product mix 400 200 • 10% lower sales volume 0 Q1 Q2 Q3 Q4 mNOK 2021 2022 250 272 261 251 200 • Higher sales prices and a strong product
Slide 11: BioMaterials key figures – Q1
BioMaterials key figures – Q1 mNOK 2021 Operating revenues 600 2022 500 • Revenues increased by 2% vs Q1-21 532 523 400 482 468 405 300 • Higher sales prices for speciality cellulose 200 100 • Lower deliveries 0 Q1 Q2 Q3 Q4 mNOK 2021 2022 100 102 • 97 80 Higher sales prices 91 EBITDA1 60 • Lower del
Slide 12: Fine Chemicals key figures – Q1
Fine Chemicals key figures – Q1 mNOK 2021 Operating revenues 175 2022 150 155 125 143 132 100 • Revenues increased by 59% vs Q1-21 114 75 90 50 • Higher deliveries and increased sales prices 25 0 Q1 Q2 Q3 Q4 mNOK 2021 60 2022 • Higher deliveries and increased sales prices partly offset by 50 increas
Slide 13: Currency impact
Currency impact 2021 mNOK Hedging effects2 on EBITDA1 2022 Borregaard’s currency basket3 20 104 10 102,0 10 6 102 100,9 99,8 99,9 0 100 98,3 -4 -10 98 -20 -15 -16 96 Q1 Q2 Q3 Q4 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Net FX EBITDA1 impact ≈30 mNOK vs Q1-21 Includes change in hedging effects and based on
Slide 14: Cash flow, investments and NIBD
Cash flow, investments and NIBD Increase mNOK Cash flow from operating activities mNOK Investments mNOK NIBD1 change 300 Decrease 500 458 1 600 262 91 378 250 1 500 34 7 400 356 219 72 87 1 400 300 200 239 1 300 200 150 125 163 1 200 400 381 1535 95 32 87 1417 100 100 190 36 16 1 100 0 50 93 1 000 5
Slide 15: Questions?
Questions? Per A Sørlie, President & CEO Per Bjarne Lyngstad, CFO 15
Slide 16: Appendix
Appendix
Slide 17: Borregaard – key figures
Borregaard – key figures Amounts in NOK million Q1-22 Q1-21 Change Operating revenues 1 615 1 419 14 % EBITDA 1 400 302 32 % Depreciation property, plant and equipment -108 -106 Amortisation intangible assets -1 -1 Other income and expenses 1 0 0 Operating profit 291 195 49 % Financial items, net -1
Slide 18: Operating revenues and EBITDA per segment
Operating revenues and EBITDA1 per segment Amounts in NOK million Amounts in NOK million Operating revenues Q1-22 Q1-21 Change EBITDA 1 Q1-22 Q1-21 Change Borregaard 1 615 1 419 14 % Borregaard 400 302 32 % BioSolutions 948 812 17 % BioSolutions 261 205 27 % BioMaterials 532 523 2% BioMaterials 97 6
Slide 19: Cash flow
Cash flow Amounts in NOK million Amounts in NOK million Q1-22 Q1-21 FY-2021 Profit before taxes 277 176 873 Amortisation, depreciation and impairment charges 109 107 420 Change in net working capital, etc -381 5 256 Dividend/share of profit from JV & associate company - - 6 Taxes paid -77 -49 -124 C
Slide 20: Balance sheet
Balance sheet Amounts in NOK million 31.03.2022 31.12.2021 Assets: Intangible assets 86 89 Property, plant and equipment 4 180 4 191 Right-of-use assets 351 351 Other assets 393 339 Investments in joint venture/associate company 174 173 Non-current assets 5 184 5 143 Inventories 878 792 Receivables
Slide 21: Net financial items & net interest-bearing debt
Net financial items & net interest-bearing debt1 Amounts in NOK million Net financial items Q1-22 Q1-21 Net interest expenses -13 -16 Currency gain/loss 1 1 Share of profit/-loss from an associate -1 0 Other financial items, net -1 -4 Net financial items -14 -19 Amounts in NOK million Net interest-b
Slide 22: 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 23: 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, 31.3.2022 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 24: 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 25: 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