Beerenberg

Investor Presentation • Feb 21, 2024

Fourth quarter 2023

Arild Apelthun and Harald Haldorsen

1. February 2024

2. Result presentation

DISCLAIMER

This presentation by Beerenberg Group is designed to provide a high-level overview of aspects of the operations of Beerenberg Group. The material set out in the presentation is current as of 21 February 2024.

This presentation contains forward-looking statements relating to operations of Beerenberg Group that are based on the management's own current expectations, estimates and projections about matters relevant to Beerenberg Group's future financial performance.

Words such as "likely", "aims", "looking forward", "potential", "anticipates", "expects", "predicts", "plans", "targets", "believes", and "estimates", and similar expressions are intended to identify forward-looking statements. References in the presentation to assumptions, estimates, and outcomes and forward-looking statements about assumptions, estimates, and outcomes, which are based on internal business data and external sources, are uncertain given the nature of the industry, business risks, and other factors.

Also, they may be affected by internal and external factors that may have a material effect on future business performance and results. No assurance or guarantee is, or should be taken to be, given in relation to the future business performance or results of Beerenberg Group or the likelihood that the assumptions, estimates, or outcomes will be achieved.

Beerenberg Group's segments engage in project activities which means that significant fluctuations in sales and order intake from quarter to quarter can be expected. While management has taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information only.

Beerenberg Group, its officers, and management exclude and disclaim any liability in respect of anything done in reliance on the presentation. All forward-looking statements made in this presentation are based on information presently available to management and Beerenberg Group assumes no obligation to update any forward-looking statements. Nothing in this presentation constitutes investment advice and this presentation shall not constitute an offer to sell or the solicitation of any offer to buy any securities or otherwise engage in any investment activity. You should make your own inquiries and take your own advice (including financial and legal advice) before making an investment in the company's shares or in making a decision to hold or sell your shares.

AGENDA

• Q4 highlights
• Financial Performance
• ESG
• Additional information

Q4 HIGHLIGHTS

• Strong activity in Q4
• Listed on Euronext growth
• Repaid MNOK 210 of debt
• Propose dividend* of NOK 1.7 pr share for 2023.
• Total of approx. NOK 42 million

Q4 HIGHLIGHTS

ORDER BACKLOG

• Order backlog NOK 7.2 billion
• Including a revised market adjustments of frame agreements NOK 600 million
• Order intake in Q4 23 NOK 122 million

SERVICE

Contracts

• Extension of frame agreement for 2 years in Q4 2023 (<200m)
• Robotic surface treatment contract signed in Q4 2023 (<50m)
• New 3-year frame agreement signed in Q1 2024 (<100m)

Operations

• Steady activity for both onshore and offshore in Q4
• High activity in the Grenland area related to carbon capture project
• Robotics completed projects with new robot solutions inside tanks
• Cost pressure still an issue related to labour, travel and materials

Outlook

• Ongoing tender processes related to offshore frame agreements
• Planning for several turnarounds in or before summer, both onshore and offshore
• Several tenders related to robotic surface treatment, both on the NCS and internationally.

BENARX

Contracts

• High tender activity although only smaller contracts signed for insulation products, mainly in Asia
• Frame agreement related to pressure testing signed in Q4 2023 (<50m)

Operations

• Improved quarter for products with deliveries in Asia.
• In Europe activity has been lower with many smaller orders
• Within the subsea insulation activity was stable with deliveries both in Norway and internationally

Outlook

• New build market in Asia is still looking attractive with several relevant new builds
• We are progressing qualifications for new applications of aerogel, both for building and subsea

FINANCIAL PERFORMANCE

FINANCIAL PERFORMANCE

• 8% revenue growth compared to Q4 2022
• EBITDA NOK 51 million Q4 23
• EBITDA NOK 49 million Q4 22
• Adjusted EBITDA 2023 NOK 204 million vs NOK 183 million adjusted EBITDA 2022
• Finance cost
• High in Q4 due to earnout Remotion (MNOK 15)
• Cash effect earnout in Q2 2024 as earlier communicated.
• Finance cost in 2023 high due to redemption fee on bond.

Condensed Consolidated Income Statement
Group Summary	Q4	Q4	YTD	YTD
Amounts in NOK million	2023	2022	2023	2022
Operating revenue	614	569	2 343	2 222
Operating expenses	563	520	2 153	2 042
EBITDA	51	49	191	180
EBITDA margin	8 3 % ,	8 5 % ,	8 1 % ,	8 1 % ,
Adjusted EBITDA	51	49	204	183
Adjusted EBITDA margin	8,3 %	8,5 %	8,7 %	8,2 %
Depreciation	11	15	58	57
EBITA	40	33	133	123
Amortisation	3	13	14	25
Operating profit (EBIT)	37	20	118	98
Finance costs - net	24	23	88	79
Profit before tax (EBT)	13	-3	30	19
Income Tax expense	9	-5	13	0
Net profit	4	2	17	19

SERVICES

• Strong revenue development

• Steady activity both offshore and onshore
• Carbon Capture Storage project still with high activity
• 10 % increase vs Q4 22
• EBITDA of NOK 48 million
• vs NOK 35 million Q4 22
• Order intake NOK 65 million

BENARX

• Europe with many small orders
• Pressure on production margins
• Asia with recovering activity
• Subsea with good activity and margins in the quarter
• EBITDA NOK 4 million vs NOK 14 million in Q422.
• Order intake NOK 57 million

REDUCTION OF LONG TERM LIABILITIES

Short term liabilities 64

Long term liabilities 439

Equity 812

CASH FLOW Q4 2023

• NWC low, partly due to accruals on total earnout of NOK 40 million.
• Timing of payments.
• Capex was NOK 23 million in the quarter
• Higher than earlier quarters.
• Robots and scaffolding main drivers.
• Preparations for higher activity.
• Net cash flow from financing activities influenced by:
• Repayment of interest-bearing debt NOK 200 million.
• Amortization NOK 10 million in the quarter and IFRS Lease.
• Capital raise NOK 233 Million.
• Interest paid NOK 10 million.
• Accrued earnout NOK 15 million.

12

FUNDING 31 DECEMBER 2023

NWC 53

Goodwill and Intangible assets 822

Fin. Fix. assets 20

Property, plant and equipment 267

Bank 165

Assets Equity and liabilities

FINANCIAL COVENANTS

• 3 financial covenants
• TLR
• Current assets/Current liabilities
• Equity ratio
• Significant headroom

EVENTS Q1 24

• Startup Hull project in Brazil on a FPSO.
• First full-scale project.
• Slightly improved terms on financing from January 2024.
• Preparations for several turnarounds.

ESG

Focus area	#	Key KPIs	2023 Goal	Q4 2023 Actual	Impact on UN's SDGs
	$\mathbf{1}$	Reduced release of microplastics in connection with surface treatment *	>20%	8 %	13 GENATE 12 RESPONSIBLE
$\frac{6}{1}$ $\left\langle \raisebox{.4ex}{\scriptsize{*}}\right\rangle$	$\mathbf{z}$	Reduced CO2 footprint in connection with surface treatment**	>10%	18 %
Sustainable methodi ⊛	$\overline{3}$	Number of new sustainable technology, materials or solutions studied, tested, developed or adopted	>8	8	14 LITE BELOW
Climata Hotel	4	Share of turnover in new and sustainable markets	$>8\%$	9%
	5.	SIF (serious incident frequency) - YTD	0	0,7	3 MONETHERN
ਬ੍ਰਿੰ lesponsitik facuramen	6	TRIF (total recordable incident frequency) - YTD	3.0	7,7
$\textcircled{1}$ Safe work environmen ی)	$\overline{7}$	Proportion of sick leave	< 6,5%	9 %
Attractive workplace	8	Compentance development - Trade certificates	30	45	DECENT WORK AN
	9	Planned suppler follow up meetings and audits	80%	67%
舃	10	Proportion of employees who have completed training in ethics	90 %	80 %	8 DECENT WORK AND
ESG governance ⊕	11	Proportion of operational employees who have completed training in HSE***	90 %	75 %
ESG mmunication ΔΔ	12	Human rights due dillegance assessment	75 %	67%	9 MOUSTRY DWOWIN
Nusiness ethics	13	Regularly publish articles on Beerenbergs ESG initiatives (external)	10	11

Additional information

Income statement

Group Summary		Q4	Q4	YTD	YTD	FY
Amounts in NOK million	Note	2023	2022	2023	2022	2022
Operating revenue	6	614,1	569,0	2 3 4 3 , 2	2 2 2 1, 9	2 2 2 1, 9
Operating expenses		563,0	520,4	2 1 5 2 , 7	2041,9	2041,9
EBITDA	6	51,1	48,5	190,5	180,0	180,0
Depreciation		11,2	15,3	57,9	56,7	56,7
EBITA		40,0	33,2	132,7	123,3	123,3
Amortisation		3,0	12,9	14,5	25,2	25,2
Operating profit (EBIT)		37,0	20,4	118,2	98,1	98,1
Finance costs - net	4	23,9	23,5	88,3	78,7	78,7
Profit before tax (EBT)		13,0	$-3,1$	29,8	19,4	19,4
Income Tax expense		9,2	$-5,5$	12,8	0,0	0,0
Net profit		3,9	2,4	17,1	19,4	19,4
Profit for the period is attributable to:
Shareholders of the parent company		3,9	2,5	17,1	19,6	19,6
Non controlling interests	7	0,0	$-0,1$	0,0	$-0,2$	$-0,2$
Net profit		3,9	2,4	17,1	19,4	19,4
Diluted earnings per share are identical as there are no dilutive effect
EBITDA margin		8,3%	8,5 %	8,1 %	8,1%	8,1%
EBITA margin		6,5 %	5,8 %	5,7%	5,6 %	5,6%

Group Summary		Q4	Q4	YTD
Amounts in NOK million	Note	31.12.2023	31.12.2022	31.12.2022
Intangible assets		39,5	52,1	52,1
Goodwill		782,8	782,8	782,8
Property, plant and equipment		267,4	210,0	210,0
Financial fixed assets		17,8	14,3	14,3
Deferred tax assets		2,4	0,0	0,0
Total non-current assets		1 1 0 9,9	1059,2	1059,2
Inventory		89,1	93,9	93,9
Accounts receivables from customers		283,9	261,7	261,7
Earned, not invoiced accounts receivables		160,8	215,9	215,9
Other receivables		25,9	41,9	41,9
Cash at bank		164,7	113,3	113,3
Total current assets		724,3	726,7	726,7
TOTAL ASSETS		1834,2	1785,8	1785,8
Share capital		61,4	26,7	26,7
Share premium		438,6	240,3	240,3
Other equity		311,5	302,3	302,3
Non controlling interests	7	0,0	$-0,5$	-0,5
Total equity		811,5	568,8	568,8
Pension liabilities		25,5	19,3	19,3
Interest bearing long-term liabilities	4	412,3	26,1	26,1
Derivatives		1,2	0,0	0,0
Total non-current liabilities		439,0	45,4	45,4
Interest bearing short-term liabilities	4	64,1	680,0	680,0
Supplier liabilities		155,6	133,9	133,9
Tax payable		12,8	9,4	9,4
Social Security, VAT and other taxes		81,6	83,5	83,5
Other short-term liabilities		249,6	242,7	242,7
Warranty liabilities		20,0	22,2	22,2
Total Current Liabilities		583,7	1 1 7 1 , 6	1 171,6
TOTAL EQUITY & LIABILITY		1834,2	1785,8	1785,8

Financial position

Cash flow

	Q4	Q4	YTD	YTD	FY
Amounts in NOK million Note	2023	2022	2023	2022	2022
EBITDA	51,1	48,5	190,5	180,0	180,0
Taxes paid	0,0	$-7,4$	$-10,3$	$-19,8$	$-19,8$
Change in net working capital	60,6	87,1	80,3	$-23,5$	$-23,5$
Changes to other time restricted items	$-0,4$	3,1	$-3,0$	8,0	8,0
Net Cash flow from operating activities	111,2	131,3	257,6	144,8	144,8
Capex	$-22,8$	$-15,8$	$-56,1$	$-36,6$	$-36,6$
Acquistion of shares in subsidiary	0,0	$-25,0$	0,0	$-50,2$	$-50,2$
Net cash flow from investing activities	$-22,8$	$-40,8$	$-56,1$	$-86,8$	$-86,8$
Net repayment of interest bearing debt	$-213,8$	$-30,8$	$-276,0$	$-64,7$	$-64,7$
Capital increase	233,0	0,0	233,0	0,0	$_{0,0}$
Other finance items	$-15,0$	0,0	$-15,0$	$_{0,0}$	0,0
Net interest paid 4	$-10,3$	$-16,8$	$-92,1$	$-73,4$	$-73,4$
Net cash flow from financing activities	$-6,0$	$-47,6$	$-150,1$	$-138,1$	$-138,1$
Total cash flow	82,4	42,9	51,4	$-80,1$	$-80,1$
Opening balance net bank deposits	82,3	70,3	113,3	193,3	193,3
Closing balance net bank deposits	164,7	113,3	164,7	113,3	113,3

Split per segment

	Q4	Q4	YTD	YTD	FY
Amounts in NOK million	2023	2022	2023	2022	2022
Services	572,7	520,9	2 2 1 2 , 1	2063,7	2063,7
Benarx	56,3	65,3	194,3	219,2	219,2
Eliminations	$-14,8$	$-17,2$	$-63,2$	$-61,0$	-61,0
Total	614,1	569,0	2 3 4 3 , 2	2 2 2 1, 9	2 2 2 1, 9

	Q4	Q4	YTD	YTD	FY
Amounts in NOK million	2023	2022	2023	2022	2022
Services	47,5	35,0	190,6	159,1	159,2
Benarx	3,7	13,5	$-0.1$	20,9	20,9
Total	51,1	48,5	190,5	180,0	180,0