Bewi Invest AS

Quarterly Report • Nov 6, 2024

Third quarter of 2024 results

CEO Christian Bekken, CFO Marie Danielsson 6 November 2024

Cautionary note regarding forward-looking statements

This presentation, prepared by BEWI ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Although management believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements.

The Company assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. This presentation contains alternative performance measures, or non-IFRS financial measures. Definitions and calculations are presented in our quarterly report.

Third quarter 2024: Improved earnings for downstream Signs of recovery in several markets

• Positive indicators across markets
  • o Low inflation and reduced interest rates
  • o Signs of improvements, variations across regions

• Challenging conditions

• o Weak upstream results, initiated cost-reductions for RAW
• o Solid downstream results from cost discipline and margin management
• Positioning for growth
  • o Operational, strategic and financial measures

Key figures for the third quarter of 2024

Q323 Q423 Q124 Q224 Q324

Adj. EBITDA EUR 23 million -4%

Adj. EBITDA margin 9.2% 0.2 pp

Adj. EBITDA Percentage (%)

Third quarter 2024: Operational highlights

Upstream segments

RAW

• Cost reductions, savings of EUR 6 million from 2025
• Ramp-up of volumes from new line
• Certified white and grey EPS with recycled material

Circular

• Best collection quarter this year, ~9 000 tonnes
• Increased recycling capacity by 40% to ~35 000 tonnes

Third quarter 2024: Operational highlights

Downstream segments

Insulation & Construction

• Recovering markets
• Capacity increase of construction boards in Olen, Belgium
• Launch of bio-based construction boards

Packaging & Components

• Increased volumes of EPS fish boxes
• HVAC market slowly improving
• Strategic review of Automotive
• Merging traded packaging business with STOK Emballage

Merging traded packaging business with STOK Expanding customer offering and streamlining core packaging business

• Merging traded packaging business with STOK Emballage
• Complementary offering and geographies
• Strong synergy and growth potential
• Strengthened focus on core packaging business
• Combined entity has EUR ~190 million sales
• BEWI retains ~15% ownership
• Receives EUR 20 million cash upon completion

Positioning to accelerate growth

Operational, strategic and financial measures in place

• Operational measures
  • o Cost reductions and margin management
  • o Working capital optimisation
  • o Low CAPEX for 2024 and 2025
• Strategic partners
  • o Re-allocate capital to accelerate growth in insulation
• Financing to fuel growth
  • o New receivables financing agreement
  • o More flexible financing
  • o A source of capital to finance growth

Targeting EUR ~150 million in available liquidity

Delivering on key priorities for long-term growth

1 2 3 4 5 Increasing collection and use of recycled material Capacity and cost optimalisation Capitalising on investments Strengthening financial position Evaluating strategic opportunities for growth

Third quarter of 2024

Group financials

10

Improved earnings in downstream segments

Adj. EBITDA

EUR million

Third quarter of 2024: Financial highlights upstream segments

Net sales EUR million

Adj. EBITDA

10 EUR million and %

• Net sales of EUR 79.2 million
• o 3% decrease from Q323
• o Higher sales prices

o Reduced fixed cost

production line

13.0 %

o Lower volumes from stronger seasonal impact and customers expecting reduced prices in Oct

• Adj. EBITDA of EUR 1.9 million

o Market prices for styrene and EPS up 11% and 3% causing reduced GAP

o Improved cost structure for new

RAW Circular

Net sales

EUR million

2.8 10.8	2.9 9.3	1.1 11.3	2.6 11.5	4.3 8.0
Q323	Q423	Q124	Q224	Q324
External sales Internal sales

• Net sales of EUR 12.3 million

• o 9% decrease from Q323
• o Lower sales prices
• o All-time high internal sales of recycled GPPS

Adj. EBITDA EUR million and %

-2.5 -2 -1.5 -1 -0.5 0 0.5 1 1.5

• Adj. EBITDA of EUR -1.5 million
• o Lower sales prices

-22.0 % -17.0 % -12.0 % -7.0 % -2.0 % 3.0 % 8.0 % 13.0 % 18.0 %

o Unfavourable market conditions

Third quarter of 2024 12

Third quarter of 2024: Financial highlights downstream segments

Net sales EUR million

• Net sales of EUR 107.6 million

• o 5% decrease from Q323
• o Higher prices
• o Lower volumes. Stronger seasonal impact

Net sales EUR million

• Net sales of EUR 92.8 million
  • o In line with Q323
  • o Volume variances across products
  • o Increased sales of fish boxes and automotive components

Adj. EBITDA EUR million and %

• Adj. EBITDA of EUR 9.9 million 15.0 %
• o EBITDA from underlying operations increase 9.0 % 11.0 % 13.0 %
  • o Lower contribution from shares
    • in associates
  • o Improving margins

Adj. EBITDA EUR million and %

• Adj. EBITDA of EUR 13.7 million

• o 11% increase in EBITDA
• o Positive impact from raw material prices and active measures

Third quarter of 2024 14

Financials

Consolidated income statement

Amounts in EUR million	Q3 2024	Q3 2023	9M 2024	9M 2023	2023
Net Sales	252.1	266.6	773.3	852.6	1 105.3
Other operating income	-	-	7.6	-	1.5
Total operating income	252.1	266.6	780.9	852.6	1 106.8
Raw materials and consumables	-102.6	-115.4	-313.4	-358.1	-455.3
Goods for resale	-23.9	-18.4	-74.8	-66.4	-95.3
Other external costs	-52.5	-59.6	-167.1	-195.5	-249.9
Personnel cost	-50.4	-52.0	-155.2	-154.5	-205.2
Depreciation/ amortisation/ impairment	-17.9	-18.3	-52.3	-52.0	-68.4
- attributable to operations	-8.3	-8.3	-25.1	-25.2	-33.7
- attributable to IFRS 16	-6.5	-6.5	-17.3	-16.0	-21.1
- attributable to fair value adjustments in business combinations	-3.2	-3.6	-10.0	-10.8	-13.7
Share of income from associated comp.	-0.6	0.3	-1.0	1.4	1.3
Capital gain/loss from sale of assets and other adjustments	0.2	0.5	3.5	0.2	-0.6
Operating income (EBIT)	4.5	3.7	20.6	27.7	33.5
Net financial items	-12.6	-11.3	-34.8	-31.0	-42.5
Income tax expense	-0.7	-0.7	-1.5	-2.8	-6.6
Profit/ loss for the period	-8.8	-8.3	-15.7	-6.1	-15.6

Third quarter of 2024

• Net sales of EUR 252.1 million, down 5%
• EBIT of EUR 4.5 million (3.7)
  • o Raw materials incl. goods for resale ~50% of sales
  • o External costs down by 12%
    • Cost reductions and lower volumes
    • Fixed cost down, despite inflation
  • o Personnel costs down from Q3 last year
• Net financial items of EUR -12.6 million (-11.3)
  • o Increased expense from additional leasing contracts
• Income tax expense of EUR 0.7 million (0.7)
• Net result of EUR -8.8 million (-8.3)

Financials

Improved financial flexibility from new receivables financing agreement

15.1 3.6 6.4 5.4 5.9 2.5 6.5 4.1 11.3 7.3 7.6 7.5 7.0 3.2 4.3 2.2

Q420 Q121 Q221 Q321 Q421 Q122 Q222 Q322 Q422 Q123 Q223 Q323 Q423 Q124 Q224 Q324

4.0

Operational CAPEX Growth CAPEX Target

8.6

5.0 4.6

5.5 3.5

4.7

4.8

• Operating cash flow of EUR 49.1 million (14.2)
• Working capital down by EUR 38.3 million (-3.5), incl. financing of EUR 40.9 million AR
• Continue to optimise working capital

CAPEX

• CAPEX of EUR 6.9 million (12.6) in Q324
• YTD CAPEX of EUR 23.4 million
  • o EUR 6.0 million relate to Izoblok
• 2024 CAPEX target of EUR ~20 million

3.3

2.1

1.8

6.3

2.7

2.7

Financials

Strengthening of financial position a prioritised task

ROCE

(1) EBITDA ratio: adjusted EBITDA rolling 12-months pro-forma acquired entities,

(2) ROCE: Rolling 12 months adjusted EBITA as a percentage of average capital employed during the same period. Capital employed is defined as total equity plus net debt

• Available cash and credit EUR ~95 million
  • EUR 16 million unutilized available credit facility
• Receivables purchase agreement (RPA)
  • Frame of EUR 75 million

• Net debt excl. IFRS 16 of EUR 285 million

• Reduction of EUR ~35 million in Q3
• A priority to strengthen financial position
• Low CAPEX for 2024 and 2025

EUR million	30.09.24	31.12.23	30.09.23
Cash and Cash equivalents	79.2	63.6	43.1
Non-current liabilities excl. IFRS 16	352.8	381.6	385.5
Current liabilities excl. IFRS 16	11.6	13.1	24.7
Net debt excl. IFRS 16	285.2	331.1	367.1
Debt related to IFRS 16	239.7	216.6	195.8
Net debt in total	524.9	547.6	562.9

Strategy recap and outlook Third quarter of 2024

The new circular hub in Norrköping, Sweden, increases EPS recycling capacity by 40%

17

Strong ambitions for further growth

Need for improved energy efficiency makes insulation solutions key growth driver

Ambition to double revenue next 3-5 years with increased exposure to insulation

Positioning to accelerate growth when market rebounds

• ✓ Strong market fundamentals
• ✓ Adjusting cost and capacity
• ✓ Room for production ramp-up on existing base
• ✓ Competitive advantage of certified recycled EPS
• ✓ Strengthening financial position
• ✓ Clear growth strategy
• ✓ Growing M&A pipeline

Summary and outlook

Well-positioned for growth

• Slow, but recovering markets
• Improved contribution from downstream
• Cost reductions initiated in RAW

• Strengthened focus on core packaging business

• Strong fundamentals and growth opportunities

• Positioned to capitalise on higher volumes when market rebounds