Borregaard As Unsp/Adr

Good morning everyone and welcome to Borgard's second quarter 2036 presentation.

My name is Tom Erik Foss-Jacobsen.

Good morning and welcome to Borgard's first quarter 2026 presentation. My name is Tom Erik Foss-Jacobsen. I'm the CEO of the company and I'll be joined today by our CFO Per Bjarne Lyngstad. Together we will take you through this agenda. I'll start with the key highlights for the quarter and then give an update on the market situation across our business segments. I'll then summarize the outlook before handing over to Per Bjarne who will walk you through the financial performance in more detail. Before we begin, just a quick reminder for those of you watching the webcast live that you're welcome to submit your questions at any time during the presentation and we will address them at the end of the presentation. Let's begin with the highlights for the first quarter. EBITDA came in at 428 million Norwegian kroner compared with 511 million in the same quarter last year. In bio solutions we saw lower sales volumes within specialties compared with a very strong quarter last year. In biomaterials we delivered higher volumes but this was offset by lower sales prices and a weaker product mix. Fine chemicals delivered a strong result, supporting the overall performance in the quarter. On the cost side, the higher energy costs and general cost inflation were partly offset by lower wood costs, and we had an insignificant net currency effect in the quarter. Okay, then let's turn to biosolutions. Within specialties, Lower sales volume was partly compensated by higher sales prices. Deliveries to agriculture and batteries were lower, compared again with a very strong Q1 last year. At this stage, we have no indication of a structural change in demand. But we see this rather as a temporary delay in the value chain, driven by geopolitical factors, broader uncertainty, and customer destocking in this period. The average price in sales currency was marginally higher, with the price in Norwegian kronor being impacted by a weaker US dollar and euro. Overall, sales volume was 4% lower than Q1 last year. Moving on to biomaterials. In the quarter, sales volume was 10% higher compared with Q1 last year. This was driven by higher deliveries of specialty cellulose, partly due to higher sales to the construction segment, but also increased sales of our highly specialized products to regulated markets and bioplastics. At the same time, the average price in sales currency was 4% below Q1 last year, Reflecting lower sales prices, where we also did some selective price adjustments, and also a weaker overall product mix. As for bio solutions, the average gross sales price in Norwegian kroner was also affected by weaker US dollar and Euro. Now to find chemicals. For fine chemical intermediates, we delivered a strong quarter supported by a favorable product mix and higher deliveries. For bioethanol, we saw increased sales volume. Overall, this segment delivered significantly higher operating revenues, up 23%, compared with the same quarter last year. Then I'll conclude my part with our outlook. In BioSolutions, sales volume for 2026 is forecast to be approximately 340,000 tons. For Q2, we expect sales volume around 90,000 tons. We expect a less favorable product mix in Q2 compared with the second quarter last year, primarily driven by the current temporary delay in the value chain mentioned. In biomaterials, sales volume for 2026 is forecast to be in the range 155,000 to 160,000 tons, and the sales volume of highly specialized grades is expected to be slightly higher than in 2035. The average price in sales currency here is expected to be 3-4% lower in the first half of 2026 compared with the second half of 2025, partly due to mix. For Q2, sales volume is expected to be in the range 40-42,000 tons. And as previously communicated, the preliminary decision in the US dumping allegations is expected end of May. In fine chemicals, the bioethanol sales prices are expected to be largely in line with 2025 and the sales volume for the fine chemical intermediates is expected to increase versus 2025. For fine chemical intermediates, the delivery patterns and product mix may vary from quarter to quarter. Then on the cost side, the cost development is expected as this. The wood costs in first half of 2026 are expected to be reduced by around 15% compared with the first half of 2025. At the same time, we see that the Middle East conflict is expected to impact our energy, logistics and chemical costs negatively. and the net cost impact from raw materials, energy and logistics is estimated to increase by 40 to 60 million Norwegian kroner versus the second quarter last year in addition then to the general cost increases. The uncertainty related to wars, conflicts and tariffs is impacting both our markets, our cost base and also our currencies. Consequently we are now implementing targeted measures to address the cost development. While the current supply disruptions and cost pressure on oil-based products are affecting certain parts of our markets and customers, we also believe that this may support a stronger case for bio-based alternatives Borgard is offering, and then represent a longer-term opportunity for products like ours. Finally, Boregaard's highly diversified portfolio and broad customer base has a proven track record of providing resilience in times like this, in a volatile environment and through periods of uncertainty. We also think that this will prove its strength in a period like we're seeing now. And with that, I'll hand the word over to our CFO, Per Bjarne Lyngstad, who will take you through the financial performance in more detail. Thank you.