Q3 2024 results 06 November 2024

Questions can be directed to [email protected]

[Byggma at a glance]

Company

Byggma is a leading Nordic supplier of building product solutions

Introduction

^◼ Leading supplier of building product solutions in the Nordics, with a special focus on various boards, beams, windows & doors, and lighting products
^◼ Byggma owns 6 companies/brands, operates 7 manufacturing facilities and distributes its products to all the leading building materials chains
^◼ Byggma is headquartered in Vennesla and employs ~690 people in total
^◼ The company has been listed on Oslo Stock Exchange since 1997 with ticker "BMA"

NOK 2,128m LTM² revenue

NOK 130m LTM Adj. EBIT²

30-50% Of net profit dividend policy

3 Note: 1) As of 05 November 2024

Note: 2) LTM Adj. EBIT = Adjusted Operating Profit last twelve months (Q4 2023 – Q3 2024). Please see Alternative Performance Measures in the interim report.

#1 market position for boards and beams in the Nordics and growing internationally

Highly attractive offering towards all the major building material chains in the Nordics

Financials

P&L Summary and Highlights

NOKm	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023	2022
Sales revenue	503	470	1593	1652	2223	2508
EBITDA'	59	47	164	238	293	350
Depreciation	-20	-22	-65	-66	-90	-82
Adjusted operating profit	38	25	ਰੇ ਰੇ	171	203	268
Net financials	-28	-23	-71	-61	-93	-25 /
Adjusted profit before tax'	10	2	28	111	110	243

^◼ Sales growth of 7,0 % from Q3 2023 to Q3 2024

^◼ Still historically low activity in the newbuild market leads to low sales volumes YTD in 2024.
^◼ Adj. Operating Profit margin of 7.6 % in Q3 2024, compared to 5.4 % in Q3 2023.
^◼ Revenues from newly launched products such as Huntonit Pro Wall, Forestsia Premium Ceiling and Forestia Ergospon is expected to increase in 2024.

Consolidated balance sheet

Assets (NOK million)	30 Sep 2024 30 Sep 202
Fixed assets	786	848
Investment property	157	175
Intangible assets	19	20
Deferred tax assets	2
Long-term derivatives and power contracts	48	84
Investment in associate	1 311	1 218
Other long-term receivables	0	C
Total non-current assets	2 323	2 347
Inventory	372	367
Customer and other short term receivables	353	365
Short-term derivatives and power contracts	23	17
Cash and cash equivavelents	29	32
Total current assets	778	781
Total assets	3 100	3 128

^◼ Solid balance and hidden reserves in real estate and land
^◼ Investment in associate of MNOK 1,311 compares to NIBD ex leasing and sale leaseback of MNOK 1,098
^◼ Equity ratio of 35.6 % as at 30 September 2024

Equity and liabilities (NOK million)		30 Sep 2024 30 Sep 2023
Share capital and share premium	53	53
Other equity not recognised in P&L	32	10
Retained earnings	1 016	984
Total equity	1 101	1 026
Long-term debt	745	791
Long-term leasing obligations	50	63
Long-term financial derivatives
Deferred tax liabilities	118	132
Total long-term liabilities	913	987
Accounts payable and other short-term liabilities	446	483
Tax payable	6	7
Short-term debt	612	604
Short-term leasing obligations	22	20
Short-term financial derivatives
Total short-term liabilities	1 087	1 115
Total liabilities *	2 000	2 102
Total equity and liabilities	3 100	3 128
* Of which interest-bearing debt (long-term and short-term) Net interest-bearing debt * Of which interest-bearing debt ex. leasing and sale leaseback Net interest-bearing debt ex. leasing and sale leaseback	1 429 1 400 1 127 1 098	1 479 1 447 1 176 1 143

Consolidated income statement

NOKm	YTD 2024	YTD 2023*	2023*	2022*	2021	2020	2019	2018	2017
Sales revenue	1 593	1 652	2 223	2 508	2 344	2 052	1 783	1 655	1 619
Other revenue	19	18	26	24	44	23	23	22	18
Total revenue	1612	1 670	2 249	2 533	2388	2 075	1 806	1 677	1 637
COGS	-839	-881	-1 095	-1 327	-1 133	-955	-844	-780	-744
Personnel expenses	-355	-347	-484	-501	-488	-439	-424	-405	-387
D&A	-65	-66	-119	-82	-87	-77	-70	-54	-54
Freight and complaints	-121	-120	-167	-176	-171	-163	-146	-143	-135
Marketing	-56	-62	-102	-104	-96	-93	-91	-72	-75
Other gains (losses)	-40	-161	-128	414	0	1	-3		ട
Other OPEX	-100	-96	-190	-201	-179	-157	-156	-159	-154
Total direct costs	-1 575	-1 733	-2 285	-1 978	-2 155	-1 883	-1 733	-1 612	-1 543
EBIT	37	-63	-36	ર રહેરા	233	193	73	65	ਰੇਪੈ
Share of profit from associate	-49	47	160	0	0	0	0	0	0
Net financials	-71	-61	-93	-25	-9	-33	-11	-9	-10
Profit before tax	-83	-77	31	529	224	160	62	56	84
Tax	7	29	30	-49	-48	-35	-13	-9	-20
Net profit	-75	-48	61	480	176	125	49	47	64
10000 -- J 0000 --------------------------------------------------------------------------------------------------------------------------------------------------------------

Byggma is set to continue demonstrated growth through identified growth avenues

Large growth potential for further consolidation within building material products

Several attractive M&A targets has been identified

Breakdown of identified M&A targets (# targets) Byggma M&A strategy and track record

By revenue

(2019)

product

offering

NOK 17.6bn¹ 3 8 Adjacent products New products

NOK 17.6bn¹ 2 5 3 1 < NOK 300m NOK 300-1,000m

NOK 1,000-3,000m > NOK 3,000m

^◼ Adjacent products include wood fibreboards, particle and MDF boards, and wall panel
^◼ New products include wind- and moisture barriers for roofs and walls, surface products, timber, decking and cladding panels
^◼ Majority of the targets have revenues in the range of NOK 100-1,000m
^◼ 4 targets have revenues exceeding NOK 1bn

Fragmented building material product market with large M&A potential

^◼ Byggma has a strong M&A track record having completed 9 acquisitions since IPO in 1997
- ̶ The acquisitions have been highly successful and allowed Byggma to strengthen its position in established markets as well as expand the product offering and make Byggma a diversified provider of building material solutions
- ̶ Company integration has been a core focus and Byggma has successfully grown the companies' topline and profitability post implementation
^◼ The Nordic building material market is highly fragmented with large potential for consolidation
^◼ Going forward, Byggma intends to be a part of a wider industry consolidation and has identified a shortlist of 11 potential M&A targets with a combined revenue of approx. NOK 17.6bn¹
^◼ The shortlist includes companies with supplementary product offering as well as new product segments with significant potential for synergy realization
- ̶ Revenue synergies from capitalizing on Byggma's well-established and experienced sales and distribution channels to grow the revenues of the acquired companies
- ̶ Cost synergies from utilizing Byggma's organisation and operational experience

Investment highlights

	Market leading position	The leading Nordic provider of woodchip boards, decorative interior panels, wood fibre boards, MDF ◼ interior walls & ceiling panels, and I-Beams Growing position in Europe and within adjacent product areas ◼ Sales agreements with all major building materials chains ◼
	Strong underlying market	>80% of revenues in the Nordics ◼ Large, stable and growing underlying market ◼ The Norwegian building materials industry is a NOK 50bn market ◼
	Strong brands and broad portfolio of sustainable products	Recognized brands and continuous focus on product development ◼ Diversified portfolio from commodity products to highly refined products ◼ Utilizing renewable raw materials to provide sustainable building material solutions ◼
	Long history of growth	Long history of revenue growth (CAGR of >9% since 2000), both organically and through acquisitions ◼ Improving profitability, from >8% EBIT in 2020 to >9%* in 2023, and with high cash conversion ◼ High dividend capacity, with NOK 70m paid in 2022. Policy of 30-50% of net income going forward. ◼
	Well positioned for further growth and cash generation	Well defined growth strategy within all business areas, both organic and inorganic ◼ Large potential from transition to higher share of innovative and value-added products with higher average ◼ sales price Set to leverage on demonstrated M&A capabilities – with several targets identified ◼

Large potential from recent product innovations

13 Notes: Revenue before rebates and other revenue reductions. 1) Product launched in October 2020; 2) Product launched in September 2020

Segment information

Sales revenue (NOKm)	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023	2022	2021
Panel sales to external customers	346	321	1 151	1 135	1 523	1 662	1 588
I-Beams sales to external customers	60	62	186	241	311	457	418
Window sales to external customers	66	62	176	203	280	291	229
Lighting sales to external customers	31	25	80	72	109	98	110
Net sales revenues for the Group	503	470	1 593	1 652	223	2 508	2 344

Adjusted operating profit (NOKm)	Q3 2024	Q3 2023	YTD 2024	YTD 2023	2023	2022*	2021
Panel	22	ട്	84	110	125	161	168
I-Beams	7	8	3	31	34	70	56
Window	0	3	-7	র্ব	8	19	11
Lighting	ന	1	0	-3	ന്ദ	-6	5
Real Estate	11	11	34	32	43	44	0
Group / eliminations	-5	-4	-16	-4	-10	-20	-10
Operating profit for the Group	38	25	gg	171	203	268	230

Byggma still has ample available production capacity and high growth potential from value-added products

Nominal production capacity	Growth potential	Other potential
300,000 m3 / year	Large potential from transitioning to higher share of innovative/ value-added products with higher average sales price HIGH	Production capacity can be expanded by ~10% by extending the manufactoring line
60,000 ton / year	Growth potential both through available production capacity and innovative, higher priced products such as "Proff Vegg" HIGH
m2 3.5 million / year	Growth potential both through available production capacity and innovative, higher priced products such as HIGH "Fuktbestandig"
15 million running meters / year	Large potential through utilizing significant available production capacity. High international sales HIGH potential

15 Note 1: The numbers for Masonite Beams include Masonite Beams AS and Masonite Beams AB

Targeted approach towards environmentally friendly production and initiatives

Byggma's manufacturing and product offering contribute to a more environmentally friendly society

5.8%

The CO² sequestration from Byggma's board products corresponds to 5.8% of the Norway's total road traffic emission

47%

Masonite's I-beam systems use 47% less raw material compared to massive tree constructions

12%

Huntonit's specific energy consumption has been reduced by 12% over the last 5 years

48%

Forestia's new closed cooling system has contributed to 48% reduction in use of cooling water

Byggma takes an active role towards sustainability and responsible production

Byggma's main goal is to develop and deliver sustainable solutions based on renewable raw materials and unique competense. Sustainability is, and has always been, a core element in Byggma's business model and a natural part of its overarching goal. Management and Board of Directors in Byggma wish for sustainability to be a natural part of operations and innovation in the Byggma group

Leading Nordic presence, with growing international customer base

Strong topline and profitability improvements last few years

^◼ Organic growth from 2015-2018, while the growth from 2018 is a combination of organic growth initiatives and the acquisition of Smartpanel (2018) and Byggform (2019), adding NOK 117m in revenues in 2019, and NOK 34m in 2020 (full-year effect of the Byggform acquisition)
^◼ The growth in 2020 and 2021 is partly related to realized market synergies from increased market share following the Smart Panel acquisition. Other growth drivers include change in product mix, volume increase (partly off-set by a drop in Europe), price increases and other (incl. currency)

^◼ Byggma has more than doubled its EBITDA and almost tripled its EBIT since 2019
^◼ The strong improvement is primarily due to realization of synergies from the Smartpanel acquisition, product mix optimization and price increases. Byggma has seen an increase in raw material prices and experienced unfavorable currency development, but has been able to offset this by increase prices to end users and ultimately improve the margins
^◼ In 2019, the EBITDA and EBIT have been adjusted for normalizations following the acquisition of Smartpanel in 2018

Robust cash conversion ratio

^◼ Byggma has a history of strong cash flow generation over the last years which is set to continue going forward
^◼ This has allowed the company to invest significantly in product innovation in addition to increased manufacturing capacity and efficiency
^◼ Since 2016, annual Capex amounts to approx. NOK 100m while maintaining an attractive dividend capacity
^◼ If desired, Byggma can manage annual maintenance Capex in the range of NOK 30- 50m and hence generate even stronger free cash flows going forward
^◼ Byggma has targeted a long-term dividend payout ratio of minimum 30%-50%
- ̶ The company will pay out a higher dividend when possible after evaluating various growth opportunities

Consolidated cash flow statement

NOKm	YTD 2024	YTD 2023	2023	2022	2021	2020	2019	2018	2017
Operating activities
Cash flow from operations	90	225	336	388	193	230	102	ਰੇਪੋ	205
Interest paid	-75	-70	-105	-38	-23	-24	-21	-19	-17
Interest received	18	13	23	ട്	3	ട്	7	7	ട്
Taxes paid	-24	-40	-41	-41	-34	-4	-9	-28	-13
Cash flow from operating activities	8	128	214	315	139	207	79	53	181
Investing activities
Purchase of subsidiaries	0	0	0	0	0	0	-21	0	0
Purchase of fixed assets	-22	-55	-53	-128	-89	-59	-90	-98	-107
Sale of fixed assets	0	0	1	15	0	0	1	1	ട്
Purchase of non-tangible assets	-1	-2	-4	-2	-2	-2	-2	-7	-10
Received dividend from associated company	0	0	12	0	0	0	0	0	0
Purchase of associated company	0	-87	-87	-1 016	0	0	0	0	0
Group loans	0	0	1	0	39	-27		0	0
Cash flow from investing activities	-24	-144	-131	-1 132	-52	-87	-113	-104	-112
Financing activities
Repurchase of shares	0	0	0	0	0	0	-4	-11	0
Dividend paid	0	0	0	-70	-559	-7	-7	-7	-36
Cash flow distributed to shareholders	0	0	0	-70	-559	-7	-11	-18	-36
Change in overdrafts	90	102	70	73	16	-3	4	0	0
New debt raised	1	15	1	814	72	150	50	149	39
Debt down payment	-110	-106	-133	-88	-67	-62	-49	-63	-34
Loan from related parties	0	0	5	E4	0	0	0	0	0
Change in interest bearing receivables	0	0	0	0	0	0	-12	0	0
Cash flow from external financing	-19	11	-58	854	20	85	-7	86	ട്
Cash flow from financing activities	-19	11	-58	784	-238	78	-18	e8	-30
Change in cash and cash equivalents	-34	-5	25	-33	-451	197	-52	17	38
Currency gains (losses)	0	1	1	-1	-4	ട	-3	1	1

Byggma operates 8 high-end manufacturing and distribution facilities

Huntonit Eiendom AS Location: Vennesla, Agder Total area: 78,112m² Production area: 19,664m² Year of construction: 1948-1988

Uldal AS (Birkeland Eiendom AS) Location: Birkenes, Agder Total area: 15,100m² Production area: 4,930m² Year of construction: 1967-1991

Forestia Eiendom AS Location: Våler, Innlandet Total area: 321,460m² Production area: 21,079m² Year of construction: 1969-1987 and 1997

Aneta Lighting AS Location: Kristiansand, Agder Total area: 6,300m² Warehouse facility: 3,500m²

Warehouse facility: 6,500m² Year of construction: 1970 and 1979 Masonite Fastighet AB Location: Nordmaling, Sweden Total area: 187,585m²

Production area: 38,107m² Year of construction: 1921-2001

Smartpanel AS Location: Fredrikstad, Viken Warehouse facility: 7,100m² Production area: 13,700m2

24 Note: Byggma also owns another manufacturing facility which is leased to a third party – see next slide

AI Terminal

Byggma ASA

3565_rns_2024-11-07_d3eb6f2c-7d03-4179-97fd-bfce977f393f.pdf