BORREGAARD ASA

December 20th, 2021 Innovative Companies

ALPORA SUSTAINABLE TECHNOLOGY

December 2021

The Norwegian company Borregaard ASA is engaged in the operation of sustainable biorefineries. Mainly products based on lignin and specialty cellulose are offered. Furthermore, the product portfolio ranges from fine chemicals and bioethanol to vanillin products for food. As a supplier of specialized biochemicals, it serves a global customer base consisting largely of specialty chemicals companies.

Focus on Innovation

The innovation focus is on the development of sustainable biochemicals and biomaterials to replace petroleum-based products. Lignin-based biopolymers as a renewable, wood-based alternative and high-purity specialty cellulose play a central role here. Considering the latest environmental technology, the innovative products are all manufactured using a wide variety of wood components. In addition, the company invests in research and development activities carried out in research centers in Norway, Spain, South Africa, and the United States.

With a view to the sustainability megatrend, the company is constantly on the lookout for new biobased raw materials as well as products with a very good environmental profile. This is also intended to drive the incremental development of the biorefinery concept.

Financial Report – YEAR-TO-DATE HIGHLIGHTS 2021

After closing the first nine months, operating revenues of the Norwegian company Borregaard ASA increased to NOK 4,359 million. This represents an increase in sales of +9.2 % compared to NOK 3,990 million in the first nine months of 2020. EBITDA increased by 27.6% to NOK 1,109 million. On the same basis of comparison, the net currency effect on EBITDA was negative.

The BioSolutions and BioMaterials businesses posted improved results compared to the first nine months of 2020, while Fine Chemicals reported weaker results. The main reasons for the strong improvement in BioSolutions were a favorable product mix and price increases. Similarly, a favorable product mix, which more than offset lower selling prices, had a positive impact on BioMaterials’ results. In addition, high sales volumes of specialty cellulose led to improved earnings in this business area. The reason for the decline at Fine Chemicals was due to one-time bioethanol sales to disinfectants in the 2nd quarter of the previous year.

Compared to the first nine months of 2020, operating income increased by 82.1 % and amounted to NOK 796 million. The strong cash flow from operating activities of NOK 1,075 million (NOK 470 million) was due to increased EBITDA and a reduction in net working capital.

Every month ALPORA presents an ALPORA Top Innovator for each innovation fund. For each company, a detailed innovation analysis was carried out based on the ALPORA-Methods and the resulting innovation efficiency score was determined.