Bewi Invest AS

Quarterly Report • Aug 17, 2023

Q2 2023

Quarterly report

Contents

Comments from the CEO	3
Highlights	5
Group	5
Segment	7
Financial review	8
APM	22
Financial statements	27
Consolidated condensed interim statement of income	27
Consolidated condensed interim statement of comprehensive income	28
Profit attributable to	28
Consolidated condensed interim statements of financial position	29
Consolidated condensed interim statements of changes in equity	31
Consolidated condensed interim statements of cash flows	32

Notes to the financial statements
Note 01	General information	33
Note 02	Accounting policies	33
Note 03	Related party transactions	34
Note 04	Segment information	35
Note 05	Depreciation/amortisation and impairment of tangible and intangible fixed assets	37
Note 06	The group's borrowings	38
Note 07	Fair value and financial instruments	39
Note 08	Net financial item	40
Note 9	Shares in associates	40
Note 10	Earnings per share	41
Note 11	Five-year summary	41
Note 12	Quarterly data	42

2

Comments from the CEO

Solid results in challenging markets with low activity in building and construction industry

The activity in the building and construction industry continues to decline across regions, impacting demand and volumes for BEWI's RAW and Insulation & Construction (I&C) segments. While the Nordic markets were hardest hit in the second half of last year and the first quarter this year, the drop in larger economies like Germany and the Netherlands, have accelerated the past couple of months.

Net sales amounted to 290 million euro, up from 277 million for the same period last year. The increase was a result of acquisitions completed, as lower volumes and prices negatively impacted the existing business.

Adjusted EBITDA came in at 32 million euro, compared to 40 million euro for the second quarter of 2022. The results reflect the weaker construction market, but also positive effects from our continuous improvement initiatives throughout the organisation. We are proud to be able to deliver such solid results, given the volume-drop of 20 to 50 per cent

for units within RAW and I&C. Our organisation has succeeded in adjusting capacity and costs to the market conditions. This has, combined with strong price management and reduced raw material prices, enabled us to deliver improved EBITDA margins for both downstream segments from the previous quarter.

We are especially pleased to see the profitability improvement in the Nordic insulation business from the measures taken, providing us with comfort and confidence for improvements in other regions going We are proud to be able to deliver such solid results, given the volume-drop of 20 to 50 per cent for units within RAW and I&C

We remain committed to our key priorities, adapting to the current situation while at the same time positioning ourselves for further growth

forward. The EBITDA for the quarter was in line with our expectations, however lower volumes were compensated by stronger margins.

Once again, we benefit from our diversified and integrated business model. When construction activity and slaughter volumes decline, demand for fibre-based packaging, HVAC systems and automotive components increase. And when raw material prices decrease, margins shift from upstream to downstream segments.

Going forward, we remain confident in the long-term potential for our solutions, supported by strong fundamentals, and we remain committed to our key priorities, adapting to the current situation while at the same time positioning ourselves for further growth.

Volumes for RAW and I&C are expected to remain impacted by the low activity in the building and construction industry, in the short-to-medium term. We therefore continue adjusting capacity and cost across regions, in parallel to preparing for growth when the market rebounds.

The integration of acquired companies is progressing well. We maintain our expectations - and are on track to realise synergies from the Jackon transaction of 30 million euro by next year.

Ongoing organic growth initiatives are selected to support prevailing market trends. The new extruder in Etten-Leur, which will be in production during the second half of the year, will increase capacity and enable increased usage of recycled material in our production, offering customers environmentally friendly solutions and lowering our CO2 footprint. The new packaging hub at Jøsnøya, with state-of-the-art equipment for sustainable operations, will optimise logistics and prepare for further growth from seafood packaging.

Finally, we expect to conclude a sales agreement for our real estate portfolio, strengthening our financial position.

Based on the current market outlook, we expect EBITDA for the second half of the year to be stronger than for the first half, however lower than predicted in previous guiding.

Undoubtedly, the markets we operate in are currently challenging, but our organisation has many years of experience from operating in rough sea, so we are well positioned to tackle the storm.

Trondheim, Norway, 16 August 2023,

Christian Bekken, CEO BEWI ASA

Group highlights

(Information in parentheses refers to the corresponding periods the previous year).

Second quarter of 2023

• Net sales of EUR 289.6 million (277.0), up by 5 per cent with 28 per cent negative organic growth
• Adj. EBITDA of EUR 31.5 million (40.3)
• Extracted synergies from Jackon transaction of EUR ~15 million by Q2, expect EUR 30 million by 2024

First half of 2023

• Net sales of EUR 586.0 million (507.2), up by 16 per cent with 21 per cent negative organic growth
• Adjusted EBITDA of EUR 59.7 million (74.7)
• Divestment of 4 properties in Denmark and Finland in Q1 valued at NOK ~350 million

Circular

Net sales distribution across segments1

Despite weakened demand from the building and construction industry the past year, the I&C segment accounts for an increasing share of the group's revenue due to the significant acquisitions completed in 2022.

Adj. EBITDA distribution across segments2

There is a margin shift from upstream to downstream, both compared to last year and the previous quarter. This is mainly explained by lower raw material prices, but also by measures taken to improve profitability for the Nordic insulation business.

Consolidated key figures4

Amounts in million EUR (except percentage)	Q2 2023	Q2 2022	1H 2023	1H 2022	2022
Net sales	289.6	277.0	586.0	507.2	1 050.4
Operating income (EBIT)	14.1	35.8	23.9	57.6	68.0
EBITDA	30.7	46.4	57.6	78.3	115.2
EBITDA margin (%)	10.6%	16.8%	9.8%	15.4%	11.0%
Adj. EBITDA	31.5	40.3	59.7	74.7	133.6
Adj. EBITDA margin (%)	10.9%	14.6%	10.2%	14.7%	12.7%
Items affecting comparability	-0.8	6.1	-2.1	3.6	-18.3
Adj. EBITA	18.3	31.9	32.2	58.3	96.1
Adj. EBITA margin (%)	6.3%	11.5%	5.5%	11.5%	9.1%
Net profit/loss for the period	3.0	24.9	2.3	33.1	35.4
Earnings per share, adj. (EUR)	0.03	0.15	0.05	0.23	0.32
Capital Expenditure (CAPEX)	-16.2	-9.2	-27.5	-14.4	-43.7
Return on average capital employed (ROCE)%	8.4%	21.5%	8.4%	21.5%	15.3%
Total number of outstanding shares	191 722 290	157 039 804	191 722 290	157 039 804	191 347 992

¹ Based on total net sales for segments for Q2 2023

² Based on total adj. EBITDA for segments for Q2 2023

³ Based on sales from external customers for Q2 2023

⁴ See definitions of alternative performance measures not defined by IFRS

Net sales distribution across countries3

Norway, Germany, and the Netherlands are the group's three largest markets. In Norway, EPS boxes and traded products to the food industry are the most important products, while insulation solutions are key in Germany and the Netherlands. Following the acquisitions of Jablite and Jackon in 2022, the UK has grown to be a considerable market for BEWI.

Segment highlights

Net sales down by 32% from Q2 2022, explained by significantly lower volumes sold to the B&C industry, as well as lower sales prices.

Adj. EBITDA decreased by 61% due to lower volumes and lower GAP, in addition to higher fixed costs related to ramp-up of the new extruder.

Adj. EBITDA EUR million

Net sales increased by 46% from Q2 2022. Due to the downturn in the B&C industry, volumes have dropped significantly across regions, resulting in negative organic growth of 38%.

Adj. EBITDA improved by 13% to EUR 12.6 million, corresponding to a margin of 10%. I&C has adjusted capacity and costs to a weaker market and improved price management. Combined with lower raw material prices, this have resulted in a significant profitability improvement the last quarter despite the volume drop.

Adj. EBITDA EUR million

RAW Insulation & Construction (I&C) Packaging & Components (P&C) Circular

Net sales increased by 8% since Q2 2022. Existing business (organic) was in line with last year. Lower fish box volumes were compensated by higher volumes sold of automotive and technical components.

Adj. EBITDA improved by 22%, including 8% organic growth coming from lower prices on raw material and energy, as well as reduced fixed cost base.

Net sales were down by 9%, mainly due to lower prices resulting in a negative organic growth of 17%. Internal sales have significantly increased in 2023, following increased use of recycled material in BEWI's downstream units.

Adj. EBITDA decreased from EUR 1.9 million last year to a negative EUR 1.0 million for Q2 this year.

Adj. EBITDA EUR million 14.8

Q2-22 Q3-22 Q4-22 Q1-23 Q2-23

Financial review

(Information in parentheses refers to the corresponding periods the previous year).

Profit and loss

Second quarter of 2023

Net sales amounted to EUR 289.6 million for the second quarter of 2023 (277.0), an increase of 4.6 per cent. The contribution from the existing business (organic) was negative 27.6 per cent, while the net effect of acquisitions and divestments was 34.6 per cent. Currency effects had a negative impact of 2.5 per cent.

The majority of the growth from acquisitions is attributable to Jackon. The negative organic growth is mainly explained by the lower demand from the building and construction industry, impacting volumes for segments RAW and Insulation & Construction (I&C), combined with lower raw material prices.

Adjusted EBITDA came in at EUR 31.5 million for the quarter (40.3), representing a decrease of 22.0 per cent. The organic growth was negative 42.2 per cent, while acquisitions and divestments contributed with a positive net 21.6 per cent. Currency had a negative effect of 1.4 per cent.

The majority of the negative organic growth is explained by lower volumes and margins for segment RAW, which had historically high prices and margins for the corresponding quarter last year. In addition, EBITDA for segment I&C was substantially impacted by the low activity in building and construction.

Following reduced raw material prices, combined with good price management and measures implemented to reduce costs, margins have shifted from upstream to downstream segments.

The adjusted EBITDA margin was 10.9 per cent for the quarter (14.6). The decrease in margin compared to the corresponding quarter of 2022, is mainly explained by the negative organic growth for RAW.

For more information on the development in net sales and EBITDA, see explanations under each segment and the revenue and EBITDA bridges.

Operating income (EBIT) was EUR 14.1 million for the quarter (35.8). The lower EBIT is, in addition to the lower EBITDA, partly explained by higher depreciations and amortisations in acquired companies. Further, the second quarter of 2022 was positively impacted by effects from the acquisition of Jablite, where BEWI increased its holding from being a minority (49 per cent), to 100 per cent ownership. See an overview of items affecting comparability and Note 5 to the accounts for more details.

Net financial items amounted to a negative EUR 9.2 million for the quarter (-6.2). The higher financial expenses are mainly explained by increased interest rates and increased interest-bearing debt following acquisitions. The period was negatively impacted by a EUR 1.2 million fair value adjustment of shares in the listed real estate company KMC Properties ASA (-2.8), see Note 8 to the accounts for more details.

Taxes amounted to a negative EUR 1.9 million (-4.7).

Net profit for the second quarter of 2023 ended at EUR 3.0 million (24.9).

First half of 2023

Net sales increased to EUR 586.0 million for the first half of 2023 (507.2), corresponding to an increase of 15.5 per cent, of which 40.6 per cent was driven by acquisitions, while existing business (organic) contributed a negative 21.1 per cent following lower volumes and prices as explained for the quarter.

Adjusted EBITDA ended at EUR 59.7 million for the first six months of 2023 (74.7), a decrease of 20.2 per cent from 2022, of which 22.9 per cent relates to acquisitions and a negative 41.0 per cent to organic growth.

Operating income (EBIT) came in at EUR 23.9 million for the period (57.6).

Net financial items amounted to a negative EUR 19.6 million for the first half of 2022 (-13.1). The period was negatively impacted by a EUR 2.2 million fair value adjustment of shares in a listed real estate company (-2.5).

Taxes amounted to a negative EUR 2.1 million for the first six months (-11.4).

Net profit for the first half of 2023 was EUR 2.3 million (33.1).

Solid, but lower GAP. Volumes impacted by reduced demand from building and construction industry

Market development

The building and construction industry is the most important end market for segment RAW, including BEWI's downstream segment I&C. The industry has seen a significant downturn the last year, impacting volumes for the segment in all regions.

For the second quarter of 2023, demand continued to decrease compared to the first quarter, as the usual spring "pick up" did not materialise.

The competition in the market is currently strong, and producers of the EPS raw material are running at reduced capacity. Customers are cautious, resulting in low volume visibility for the rest of the year.

Styrene prices and market prices for EPS decreased approximately 10 per cent from the first to the second quarter of 2023, and approximately 35 per cent from the second quarter of 2022.

Operational review New extruder in Etten-Leur

2021 Artbox Report Template All rights reserved © Artbox AS 2021

In the fourth quarter of 2021, investments into a new twin screw extrusion line at the RAW production site in Etten-Leur started. The new extrusion line will increase production capacity of recycled

grades and grey products, and production is expected to start in the second half of 2023.

In preparation for operation of the new extruder, segment RAW has strengthened its organisation, impacting fixed cost for the segment.

Integration of Jackon and Wismar facility

During the second quarter, the raw material facility in Wismar, which was part of the Jackon acquisition, was further integrated with BEWI's RAW segment, and is now running on the same ERP system as the rest of the RAW segment.

The site received permit to produce 100 thousand tonnes, enabling an increase in allowed production capacity from 65 to 100 thousand tonnes.

Synergies are mainly related to procurement, meaning that they are volume-dependent and expected to increase when the market normalise.

Mass balance certified

BEWI's raw material production facilities are certified through the REDcert scheme, a certification solution for the chemical industry enabling more sustainable material flows.

Segment RAW develops and produces white and grey expanded polystyrene (EPS), various grades of recycled EPS, as well as Biofoam, a fully bio-based particle foam. The raw material is sold internally and externally for production of end products. Raw material is produced at 3 facilities located in Finland, the Netherlands, and Germany.

The core aspect for REDcert certification is the successfully proven REDcert mass balance approach, enabling BEWI to allocate recycled material into selected products, based on customer preferences.

Based on the mass balance principle, RAW will expand its product range, offering various products with virgin, recycled and/ or mass balanced content.

Financial review

Acquisitions affecting comparability

Jackon was consolidated into BEWI's accounts from 1 November 2022.

Second quarter of 2023

Net sales for segment RAW amounted to EUR 85.5 million for the quarter (125.4), a decrease of 31.8 per cent. The acquisition of Jackon contributed to 16.6 per cent growth. Lower volumes and sales prices contributed to a negative organic growth of 48.5 per cent.

The lower volumes, which explains a little less than half of the negative organic growth, is mainly attributable to lower activity in the building and construction industry. Market prices for EPS was approximately 35 per cent lower than for the second quarter last year.

Adjusted EBITDA came in at EUR 6.3 million for the second quarter of 2023 (16.4), of which Jackon contributed with EUR 2.0 million.

The lower EBITDA is a result of lower volumes and lower GAP (styrene gross margin), as well as higher fixed cost for the segment related to ramp up of personnel to prepare for operation of the new extruder.

In the second quarter last year, the GAP was historically high, driven by a strong market sentiment and an upgoing raw material price trend. This year, the market sentiment has been slow and the raw material prices have trended downwards, thus creating the opposite effect. Still, BEWI has managed to keep a solid GAP compared to historical levels. The reduced GAP impacted EBITDA more than the lower volumes.

First half of 2023

Net sales for the first half of 2023 were EUR 179.0 million (225.9) for segment RAW, a decrease of 20.8 per cent from the same period last year explained by lower sales prices and volumes.

Adjusted EBITDA ended at EUR 14.0 million for the first six months of the year (35.8).

Amounts in million EUR
(except percentage)	Q2 2023	Q2 2022	1H 2023	1H 2022	2022
Net sales	85.5	125.4	179.0	225.9	418.0
Of which internal	32.6	39.9	71.0	71.8	142.0
Of which external	52.9	85.5	108.0	154.0	276.0
Net operating expenses	-79.1	-109.0	-165.0	-190.1	-361.0
Adjusted EBITDA	6.3	16.4	14.0	35.8	57.0
Adjusted EBITDA %	7.4%	13.1%	7.8%	15.9%	13.6%
Items affecting comparability	-	0.1	-	0.1	-17.0
EBITDA	6.3	16.5	14.0	35.9	40.0
Depreciations	-1.3	-0.9	-2.5	-1.9	-4.3
CAPEX	-4.7	-0.4	-5.8	-1.0	-6.8
Headcount	276	207	276	207	270

of total net sales1 in Q2 2023

of total adj. EBITDA2 in Q2 2023

¹ Based on total net sales for operating segments ² Based on total adj. EBITDA for operating segments

Solid results and margin improvement from previous quarter in challenging markets

Market development

Like segment RAW, the I&C segment is primarily exposed to the building and construction industry, where the activity has been significantly reduced the past year. All BEWI's operating markets experienced significantly lower demand compared to the second quarter of 2022, with the UK and Ibera least impacted. The downturn in Germany and the Netherlands accelerated in the second quarter this year, with the sharpest drop in the German market.

Most of the segment's products and solutions can be used for both newbuilds and renovations. Currently, approximately 25 per cent of the sales are sold to renovation. The share is lower in the Nordics and higher in other European markets.

Operational review Insulation Benelux

In 2022, Jackon initiated an investment in a new production line for production of construction boards in Belgium. The production serves the European market, as well as the UK. The new production line will more than double current capacity. Production is expected to start in the second half of 2023.

Capacity and cost adjustments

During the first half of 2023, BEWI implemented measures in its Nordic insulation business. This included adjusting capacity, reducing costs, and improving price management. The result was a significantly improved EBITDA margin for the Nordics from the fourth quarter of 2022 to the second quarter of 2023 (also positively impacted by lower raw material prices.) BEWI will continuously work to optimise its production footprint, adjusting costs and capacity to the market conditions.

As part of the capacity adjustment, BEWI's facility in Norrköping was temporarily closed. The company plans to partly convert the facility to a Circular facility.

Synergy realisation from the combination with Jackon is progressing according to plan in all business units within the I&C segment. In addition, the segment has identified several areas for cross border sales.

Segment I&C develops and manufactures an extensive range of insulation products for the building and construction industry, as well as infrastructure projects. The products are primarily composed of expanded polystyrene (EPS) and extruded polystyrene (XPS). BEWI's insulation solutions are produced at 28 facilities in 11 countries. In addition, BEWI has minority interests in 5 facilities in France and 6 facilities in Germany.

Segment Insulation & Construction (I&C)

Financial review

Acquisitions affecting comparability

Jablite was consolidated from 1 June, BalPol from 1 September, Jackon from 1 November and Aislenvas from 31 December 2022.

Second quarter of 2023

Net sales came in at EUR 124.8 million for the quarter (85.3), an increase of 46.4 per cent. Acquisitions contributed with 91.4 per cent growth, while lower volumes and sales prices contributed to a negative organic growth of 38.1 per cent.

Adjusted EBITDA ended at EUR 12.6 million for the quarter (11.2), an increase of 12.6 per cent. Acquisitions contributed with 47.3 per cent growth, while the contribution from the existing business was negative with 30.9 per cent, explained by the drop in volumes.

The segment had an EBITDA margin of 10.1 per cent, a significant improvement from the 6.6 per cent posted for the previous quarter. The improvement comes from reduced raw material prices and the measures implemented in the Nordic insulation business as described above, as well as some positive impact from seasonality.

For further details, see the revenue and EBITDA bridges.

First half of 2023

Net sales amounted to EUR 245.4 million for the first six months of 2023 (147.7), an increase of 66.2 per cent. Acquisitions contributed with 103.7 per cent growth, while lower volumes and sales prices impacted growth negative with 30.8 per cent.

Adjusted EBITDA amounted to EUR 20.6 million (17.3). This represents an increase of 18.9 per cent, of which acquisitions contributed 46.1 per cent, and volumes and prices impacted EBITDA negative with 22.9 per cent.

Amounts in million EUR (except percentage)	Q2 2023	Q2 2022	1H 2023	1H 2022	2022
Net sales	124.8	85.3	245.4	147.7	333.9
Of which internal	0.5	1.5	0.9	2.5	4.0
Of which external	124.3	83.8	244.4	145.2	329.9
Net operating expenses	-112.2	-74.1	-224.8	-130.3	-302.8
Adjusted EBITDA	12.6	11.2	20.6	17.3	31.1
Adjusted EBITDA %	10.1%	13.2%	8.4%	11.7%	9.3%
Items affecting comparability	-0.5	7.3	-1.7	7.3	2.5
EBITDA	12.1	18.5	18.9	24.6	33.6
Depreciations	-5.7	-2.2	-12.5	-4.3	-11.3
CAPEX	-3.9	-1.9	-7.3	-2.8	-9.8
Headcount	1 372	571	1 372	571	1 388

¹ Based on total net sales for operating segments ² Based on total adj. EBITDA for operating segments

Jointly owned

Segment Packaging & Components (P&C)

Stable demand for food packaging and increasing volumes of HVAC and automotive components

Market development

Food packaging accounts for approximately half of the sales for P&C, where the seafood industry is the most important end-market and EPS boxes for transportation of fresh fish are the largest product segment. In the first half of 2023, slaughter volumes were lower than for the corresponding period of 2022, impacting the volumes sold of the boxes. Volumes are expected to be stronger for the rest of 2023.

In addition to the fish boxes, BEWI sells traded food packaging products. In the third quarter last year, BEWI stopped all sales to Russian fishing vessels operating in Norwegian harbours following the Norwegian authorities' position. These volumes have not yet been fully replaced.

Sales of components to the automotive industry have steadily increased since the challenges related to the shortage of electronic components started to ease last year. Volumes were up by 30 per cent for the first half of 2023 compared to the same period of 2022.

Demand for components to heating-, ventilation-, and air-condition (HVAC) systems is also increasing, and is expected to have a significant growth over the next years. However, short term, the development could be impacted by the slowdown in newbuilds in the B&C industry.

Operational review Packaging, Norway

BEWI is developing a new packaging facility on the Jøsnøya island, Hitra, Norway. The development project commenced in May 2022.

From the new facility, BEWI will supply fish boxes to its customers, including the listed companies Mowi and Lerøy, with expected start in the fourth quarter of 2023.

Paper packaging, Denmark

BEWI is experiencing increased demand for paper-based packaging solutions and expects this market to be fast growing. The group is therefore investing in expanding its production capacity at its facility in Thorsøe, Denmark, currently producing protective paper packaging (honeycomb structure). The project is expected to double the production capacity, with estimated completion in 2024.

Segment P&C develops and manufactures packaging solutions, and technical components for customers in many industrial sectors, including boxes for transportation of fresh fish, protective packaging for pharmaceuticals and electronics, and automotive components. The material is mainly composed of expanded polystyrene (EPS), expanded polypropylene (EPP), or fibre. In addition, the company sells traded products for food packaging. The solutions are produced at 35 facilities in 9 countries.

Segment Packaging & Components (P&C)

Financial review

Acquisitions affecting comparability

Trondhjems Eskefabrikk was consolidated from 1 May, Styropack (packaging part of Jablite) from 1 June, and Jackon from 1 November 2022.

Second quarter of 2023

Net sales amounted to EUR 99.7 million for the second quarter of 2023 (92.4), an increase of 7.9 per cent. Acquisitions contributed with 15.0 per cent growth and currency had a negative effect of 6.1 per cent. Sales from existing business (organic) declined by 1.0 per cent. Lower volumes sold of fish boxes and traded products and reduced prices, were almost fully compensated by increased volumes sold of automotive and HVAC components.

Adjusted EBITDA amounted to EUR 14.8 million for the second quarter this year (12.1), up by 22.2 per cent, of which organic growth was 7.5 per cent. Currency effects impacted the segment's EBITDA with a negative EUR 0.8 million or negative 6.9 per cent. The positive organic growth is mainly explained by lower raw material prices.

Acquired companies contributed with healthy EBITDA margins.

First half of 2023

Net sales amounted to EUR 209.4 million (184.2), an increase of 13.7 per cent. Acquisitions contributed with 18.4 per cent and the organic growth was 0.8 per cent for the period. Currency had a negative effect of 5.4 per cent.

Adjusted EBITDA amounted to EUR 28.1 million (21.2), up by 32.8 per cent, including an organic growth of 11.2 per cent explained by the same factors as for the quarter.

Amounts in million EUR
(except percentage)	Q2 2023	Q2 2022	1H 2023	1H 2022	2022
Net sales	99.7	92.4	209.4	184.2	391.9
Of which internal	0.7	3.0	1.9	5.8	10.0
Of which external	99.0	89.4	207.5	178.4	381.9
Net operating expenses	-85.0	-80.4	-181.3	-163.0	-343.6
Adjusted EBITDA	14.8	12.1	28.1	21.2	48.3
Adjusted EBITDA %	14.8%	13.1%	13.4%	11.5%	12.3%
Items affecting comparability	-0.1	2.0	-0.1	1.9	4.9
EBITDA	14.7	14.0	28.0	23.1	53.3
Depreciations	-5.5	-4.8	-11.1	-9.2	-19.7
CAPEX	-5.3	-4.3	-9.3	-5.8	-19.2
Headcount	1 514	1 343	1 514	1 343	1 459

of total adj. EBITDA2

in Q2 2023

of total net sales1 in Q2 2023

Food ~50% Automotive ~20% HVAC ~10% Other ~20%

Based on management estimates

¹ Based on total net sales for operating segments ² Based on total adj. EBITDA for operating segments

Lower prices impacting sales and profitability

Market development

Segment Circular's key strategic priority is currently to secure waste streams, i.e., focusing on increasing the volumes of material for recycling. The market is fragmented and immature, and prices for recycled material correlate with prices of the virgin raw material.

Currently, the demand for recycled material is impacted by the low activity in the building and construction (B&C) industry, as well as decreased prices for virgin raw material.

The supply chain for Circular is longer than for the other segments, and thus the segment is more sensitive to volatile raw material prices.

Operational review Collected EPS for recycling

In the first half of 2023, BEWI collected 15 475 tonnes of EPS for recycling (9 849), an increase of 57 per cent, mainly explained by the acquisition of Berga last year. The company targets an annual collection of 60 000 tonnes EPS for recycling by the end of 2026.

In addition to the targeted collection, BEWI aims to steadily increase its own consumption of recycled materials, offering its customers more environmentally friendly solutions and reduce the company's CO2 emissions.

The group is investing in increased extruder capacity, enabling more recycled content in its products and a strengthening of Circular's offering of granulated material. Following the start-up of RAW's new extrusion line in the second half of this year, providing more recycled feedstock, the company will also invest in expanding its pelletizer technology in Circular.

Converting Norrköping facility to new Circular hub

BEWI's insulation facility in Norrköping has been temporarily closed and is planned to partly be converted to a Circular facility.

The Norrköping facility has a strategic location, close to highways E4 and E22, enabling efficient transportation to – and from BEWI's Nordic downstream facilities, as well as other Nordic customer. The facility will become the centre for Circular's Nordic business.

Strengthened management team

In May, Aljosa Krizman was appointed new EVP and Head of the Circular segment, effective from 1 July 2023. Aljosa has solid international industry knowledge, most recently as CFO of Hirsch SERVO, and has throughout the years built an extensive experience from business growth, acquisitions, and integrations. He will work closely with Henrik Ekvall, the former head of the segment, who will continue in a role as VP Commercial and Operations.

Jointly owned Circular facilities 113 dedicated employees

Segment Circular is responsible for BEWI's collection and recycling of used material. The segment offers different solutions for waste management and a range of recycled materials. BEWI targets to collect 60 000 tonnes of EPS for recycling by the end of 2026, which is approximately the volume BEWI puts into end markets with a lifetime less than one year. As of 30 June 2023, BEWI operated 7 recycling facilities in 6 countries.

Financial review

Acquisitions affecting comparability

Berga Recycling was consolidated from 1 June 2022 and Inoplast from 31 December 2022.

Second quarter of 2023

Net sales for segment Circular amounted to EUR 16.5 million for the second quarter of 2023 (18.2), a decrease of 9.4 per cent. Acquisitions, i.e., Berga Recycling, contributed with a growth of 9.9 per cent, while the organic growth was a negative 16.9 per cent, explained by lower prices. Currency had a negative effect of 2.4 per cent.

Adjusted EBITDA amounted to a negative EUR 1.0 million for the quarter (1.9). The reduction compared to the second quarter last year was explained partly by a negative contribution from Berga of EUR 0.9 million, and partly by lower prices.

First half of 2023

Net sales for the first six months of 2023 came in at EUR 32.0 million (29.6), up by 8.0 per cent from the same period last year. Acquisitions contributed with 14.7 per cent growth, while the organic growth was negative 3.2 per cent and currency had a negative impact of 3.5 per cent.

Adjusted EBITDA was negative EUR 0.5 million for the first six months (3.0).

For the first half of 2023, internal sales were EUR 6.1 million (0.2), a significant increase from last year.

Amounts in million EUR
(except percentage)	Q2 2023	Q2 2022	1H 2023	1H 2022	2022
Net sales	16.5	18.2	32.0	29.6	63.1
Of which internal	3.1	0.0	6.1	0.2	0.7
Of which external	13.4	18.2	25.9	29.5	62.4
Net operating expenses	-17.5	-16.3	-32.5	-26.6	-60.6
Adjusted EBITDA	-1.0	1.9	-0.5	3.0	2.5
Adjusted EBITDA %	-5.8%	10.5%	-1.5%	10.1%	3.9%
Items affecting comparability	0.0	-0.7	0.0	-0.8	0.1
EBITDA	-1.0	1.2	-0.5	2.2	2.6
Depreciations	-0.6	-0.4	-1.1	-0.8	-1.7
CAPEX	-0.7	-0.5	-0.8	-1.1	-1.8
Headcount	113	115	113	115	109

5%

of total net sales1 in Q2 2023

of total adj. EBITDA2 in Q2 2023

-3%

¹ Based on total net sales for operating segments ² Based on total adj. EBITDA for operating segments

Corporate costs

Revenues and costs related to group functions that do not belong to any specific business segment are booked as unallocated corporate costs.

For the second quarter of 2023, the unallocated contribution to adjusted EBITDA amounted to a negative EUR 1.3 million (-1.3). For the first six months of 2023, the contribution was negative EUR 2.5 million (-2.6).

Financial position and liquidity

Consolidated financial position

Total assets amounted to EUR 1 297.8 million on 30 June 2023, compared to EUR 1 300.7 million at year-end 2022.

Total equity was EUR 437.4 million on 30 June 2022, up from EUR 429.8 million at the end of last year.

Net debt amounted to EUR 557.7 million at the end of the second quarter of 2023 (360.3 excluding IFRS 16), compared to EUR 550.7 million at the end of 2022 (382.3 excluding IFRS 16).

Cash and cash equivalents were EUR 42.6 million on 30 June 2023, compared to EUR 47.5 million at yearend 2022.

Consolidated cash flow

Cash flow from operating activities amounted to EUR 26.0 million for the second quarter of 2023 (25.0), including an increase in working capital of EUR 4.4 million (decrease of 1.3).

The period noted a EUR 15.0 million positive cash flow impact from a settlement of currency swaps. Cash flow from change in working capital followed normal seasonality and came in negative, although this year positively impacted by reduced inventory, following lower prices and reduced volumes in stock. The same period last year noted a significant increase in operating liabilities due to the timing of styrene payments in combination with price increases.

For the first half of 2023, cash flow from operating activities amounted to EUR 33.5 million (10.8), including an increase in working capital of EUR 12.7 million (increase of 38.7). The period was positively impacted by the settlement of the currency swaps. Working capital developed in line with the seasonal pattern, but was positively impacted by lower inventory, following both lower prices and reduced volumes. The partial payment in the first quarter of the settlement agreement with the European Commission from 2022 had a negative effect on the cash flow from working capital.

Cash flow used for investing activities amounted to a negative EUR 15.8 million for the second quarter of 2023 (-66.3). Capital expenditures were higher than for the same period of 2022 (see separate section below), driven by specific projects and capital expenditures in acquired companies. Cash flow from investing activities in the second quarter of 2022 was negatively impacted by the many acquisitions in that quarter.

For the first half of 2023, cash flow from investing activities amounted to a negative EUR 9.3 million (-72.8). Capital expenditures were higher than for the same period of 2022, driven by the same factors as for the quarter. The period was positively impacted by the divestment of four properties in Finland and Denmark, which resulted in a net cash inflow of EUR 17.7 million. Last year noted a substantial cash outflow from acquisitions.

The group's main organic growth initiatives are described under each segment.

Cash flow from financing activities was negative EUR 3.8 million for the second quarter of 2023 (negative 2.0), mainly explained by repayment of leasing liabilities.

For the first half of 2023, cash flow from financing activities amounted to a negative EUR 27.4 million (-3.0). During the period, the group repaid EUR 96.1 million in debt, largely related to settlement of external borrowings and utilised overdraft facilities in the

former Jackon group. The repayments were mainly financed through additional draw-down of BEWI's credit facilities. Further, the company completed a share issue related to its share-based incentive programme, adding proceeds of EUR 0.8 million.

Capital expenditures (CAPEX)

For the second quarter of 2023, CAPEX totaled EUR 16.2 million (9.2). Of this, EUR 8.6 million was attributable to greenfield projects and other customer specific projects, as well as the investment into a new ERP system. Selected key projects are described under each segment.

For the first half of 2023, CAPEX totaled EUR 27.5 million (14.4), of which EUR 12.6 million was attributable to greenfield projects and other specific projects.

BEWI has an announced annual target for investments (CAPEX) of 2.5 per cent of net sales excluding greenfield projects, customer specific initiatives and ICT investments. Excluding the above-mentioned initiatives, CAPEX for the second quarter and the first half of the year was in line with this target.

Return on capital employed (ROCE)

Average return on capital employed was 8.4 per cent (21.5 per cent) for the second quarter of 2023 (see details on Alternative Performance Measures (APM)).

The average capital employed has increased significantly the last year following the transactions completed. This is not yet reflected in a similar growth in rolling 12 months EBITA, and partly as all synergies identified are not yet visible in the income statement.

Organisation

As of 30 June 2023, BEWI had 3 326 employees, up from 2 295 employees at the end of June last year and from 3 293 on 31 December 2022.

Since the end of 2022, BEWI's organisation has been strengthened with 88 new employees, coming mainly from the acquisitions of Aislenvas and Inoplast. In the same period, 55 employees have left the group, partly due to capacity adjustments following the challenging market conditions.

Important events in the first half of 2023

Growth initiatives have a high priority for BEWI. The company invests in organic growth and has a strong pipeline of M&A opportunities.

Key organic growth projects in the first half of 2023 are described under each segment.

BEWI's M&A priorities are mainly within the following categories:

• Strengthening of market positions
• Broadening product offering
• Geographic expansion
• Recycling consolidation

In 2022, BEWI completed seven acquisitions, adding approximately EUR 600 million in annual sales and approximately 1 200 new employees.

Given the significance of the acquisitions, the company's key priorities are to integrate the new entities, including extracting synergies, and adjusting production capacity. Still, the company has a strong pipeline of M&A opportunities and expects to continue to grow through strategic transactions.

Divestment of industrial real estate portfolio

On 30 June 2022, BEWI announced that it had entered an agreement with KMC Properties ASA for the sale of up to 24 properties and one land plot, with a gross asset value of up to approximately NOK 2.0 billion.

In November 2022, the first part of the transaction was completed, including the properties in Norway and Sweden valued at approximately NOK 900 million.

On 31 March 2023, divestment of four properties located in Finland and Denmark valued at close to NOK 350 million was completed. The divestment was settled in the form of NOK 200 million in cash and NOK 148.3 million in 20 235 931 new shares in KMC Properties at NOK 7.33 per share. As per 30 June 2023, BEWI holds 8.4 per cent of the outstanding shares in KMC Properties.

In connection with the divestments, long term rental agreements have been entered for the properties.

KMC Properties had an exclusive right to acquire the portfolio until 30 June 2023. Although the right has expired, the parties are in discussions to find an agreement for the remaining part of the portfolio. Further, BEWI is in active dialogue with other potential buyers of the properties.

ICT

BEWI has started implementation of a new modern IT platform, including an ERP system. Blueprints has been developed and the system will be implemented gradually throughout the group's segments and operating units.

Synergy realisation from combination with Jackon

On 19 October 2022, BEWI completed its acquisition of Jackon and the company was consolidated into BEWI's accounts from 1 November 2022.

Following the combination with Jackon, BEWI established a division-based organisational structure, with dedicated management teams focusing on operational excellence and strategic growth initiatives within each division.

Prior to completion of the acquisition of Jackon, BEWI launched a synergy target of EUR 15 million. However, in the company's first quarter report of 2023, the company raised the target announcing it had identified potential synergies to be extracted by the end of 2024 of more than EUR 30 million. The new target was based on normalised volumes.

At the end of the second quarter, BEWI had realised synergies of approximately EUR 15 million (annualised), in line with previous communication.

Share information

As of 30 June 2023, the total number of shares outstanding in BEWI ASA was 191 722 290, each with a par value of NOK 1. Each share entitles to one vote.

In the second quarter, the BEWI share traded between NOK 39.85 and NOK 48.45 per share, with a closing price of NOK 40.3 on 30 June 2023.

Annual general meeting, proposed dividend distribution and composition of the board of directors

In BEWI's financial report for the fourth quarter of 2022, the board of directors proposed to the general meeting to pay a dividend of NOK 0.60 per share, in line with the company's dividend policy of 30 to 50 per cent of net profit. The dividends were proposed to be distributed following a sale of the company's real estate portfolio.

The company held its annual general meeting on 1 June 2023. The meeting authorised the board to resolve distribution of dividends.

At the same meeting, Pernille Skarstein Christensen was elected new member of the board of directors, following the recommendation from the company's nomination committee.

Exercise of options and share issue

In February 2023, key employees in BEWI exercised a total of 374 298 options under the company's longterm incentive programme. Following this, the board of directors resolved to increase the company's share capital by NOK 374 298, by issuance of 374 298 new shares at a subscription price of NOK 22.96 per share.

Risks and uncertainties

BEWI's risks and risk management are described in the group's annual report for 2022.

BEWI's most important raw material is the oil derivative called styrene. Fluctuations in the price of styrene will normally impact the development of the group's sales and results.

For the second half of 2023, BEWI's most significant risks and uncertainties relate to the development in the building and construction industry in Europe,

impacting the demand for the group's raw material products, as well as insulation solutions. In addition, the company is closely monitoring how the inflation and increase in interest rates could impact its key markets.

Outlook

In 2023, the activity in the building and construction industry has been low and significantly reduced compared to 2022. The activity is expected to remain low for the second half of the year, impacting volumes sold for BEWI's segments RAW and Insulation & Construction. There are significant variations across regions. The Nordic markets have been slow since the second half of last year, while the downturn in countries like the Netherlands and Germany accelerated in the second quarter of this year. Germany posted the sharpest drop in construction activity in June 2023 since February 2010.

The outlook for Packaging & Components (P&C) remains solid for the second half of 2023. BEWI expects to see continued positive contribution from acquired entities, including synergies, and measures implemented to adjust capacity and cost.

At BEWI's presentation of the results for the first quarter of 2023, the company communicated its target of an adjusted EBITDA for 2023 in line with the pro-forma EBITDA of EUR 167 million posted for 2022. For the first six months of 2023, the company had an adjusted EBITDA of EUR 60 million, of which the EBITDA for the second quarter was in line with the expectations for that quarter.

As of today, EBITDA for the second half of the year is expected to be stronger than for the first half due to the solid outlook for P&C and impact from implemented measures as described above, however lower than predicted in previous guiding. This is explained by the drop in construction activity in recent months being sharper than what the company based its guidance on. BEWI is experiencing increased uncertainty and reduced visibility related to both volumes and prices. Customers are cautious and raw material prices are volatile. Consequently, rapid changes in both supply and demand in the various end markets pose a high risk to the company's outlook for the rest of 2023.

BEWI remains confident in the long-term potential for its solutions, supported by strong underlying fundamentals, such as the need to improve energy efficiency in buildings and transporting and preserving food. The company maintains its key priorities to secure a strong platform for long-term growth, including continuously adjusting capacity and costs to the current market conditions and extracting synergies from integrating acquired companies.

Trondheim, 16 August 2023

The board of directors and CEO of BEWI ASA

Gunnar Syvertsen	Anne-Lise Aukner	Rik Dobbelaere	Andreas Akselsen	Kristina Schauman	Pernille Skarstein Christensen	Christian Bekken
Chair of the Board	Director	Director	Director	Director	Director	CEO

Responsibility statement

We declare that, to the best of our knowledge, the half year financial statements for the period 1 January to 30 June 2023 have been prepared in accordance with IAS 34 – Interim Reporting, and that the information contained therein provides a true and fair view of the Group's assets, liabilities, financial position, and overall results.

We further declare that, to the best of our knowledge, the half-year report provides a true and fair view of important events that have taken place during the accounting period and their impact on the half-year financial statements, as well as the most important risks and uncertainties facing the business in the forthcoming accounting period.

Trondheim, 16 August 2023

The board of directors and CEO of BEWI ASA

Gunnar Syvertsen	Anne-Lise Aukner	Rik Dobbelaere	Andreas Akselsen	Kristina Schauman	Pernille Skarstein Christensen	Christian Bekken
Chair of the Board	Director	Director	Director	Director	Director	CEO

relevant for the group as it presents the EPS generated by the actual operations of the group.

Definitions of alternative performance measures not defined by IFRS

Organic growth	Organic growth is defined as growth in net sales for the reporting period compared to the same period last year, excluding the impact of currency and acquisitions. It is a key ratio as it shows the underlying sales growth.	Adjusted (adj.) EBITDA	Normalised earnings before interest, tax, depreciation, and amortisation (i.e., items affecting com parability and deviations are added back). Adjusted EBITDA is a key performance indicator that the group considers relevant for understanding earnings adjusted for items that affect comparability.
EBITDA	Earnings before interest, tax, depreciation, and amortisation. EBITDA is a key performance indicator that the group considers relevant for understanding the generation of profit before investments in fixed assets.	Adjusted (adj.) EBITDA margin	Normalised EBITDA before items affecting comparability as a percentage of net sales. The adjusted EBITDA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making comparisons with other companies.
EBITDA margin	EBITDA as a percentage of net sales. The EBITDA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making com parisons with other companies.	Adjusted (adj.) EBITA	Normalised earnings before interest, tax, and amortisations (i.e., items affecting comparability and deviations are added back). EBITA is a key performance indicator that the group considers relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates and financing structures but including depreciations of fixed assets used in production to generate the profits of the group.
EBITA	Earnings before interest, tax, and amortisations. EBITA is a key performance indicator that the group considers relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates and financing structures but including depreciations of fixed assets used in production to generate the profits of the group.	Adjusted (adj.) EBITA margin	Normalised EBITA before items affecting comparability as a percentage of sales. The EBITA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making comparisons with other companies.
EBITA margin	EBITA as a percentage of sales. The EBITA margin is a key performance indicator that the group considers relevant for understanding the profitability of the business and for making comparisons with other companies.	ROCE	Return on average capital employed. ROCE is a key performance indicator that the group considers relevant for measuring how well the group is generating profits from its capital in use. ROCE is calculated as rolling 12 months adjusted EBITA as a percentage of average capital employed during
EBIT	Earnings before interest and tax. EBIT is a key performance indicator that the group considers relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates and financing structures. Depreciations are included, however, which is a measure of resource		the same period. Capital employed is defined as total equity plus net debt, and the average is calculated with each quarter during the measurement period as a measuring point.
Items affecting	consumption necessary for generating the result. Items affecting comparability include costs related to the planned IPO, transaction costs related	Net debt	Interest-bearing liabilities excluding obligations relating to employee benefits, minus cash and cash equivalents. Net debt is a key performance indicator that is relevant both for the group's calculation of covenants based on this indicator and because it indicates the group's financing needs.
comparability	to acquired acquisition of entitiescompanies, including the release of negative goodwill from acquisitions, severance costs and other normalisations such as divestment of real estate, closing of facilities, unscheduled raw material production stops and other.	Adjusted (adj.) EPS	Earnings per share (EPS) adjusted for items affecting comparability, depreciations/amortisations attributable to fair adjustments in business combinations and fair value adjustments in financial items, Including tax on those items. Adjusted EPS is a key performance indicator considered

Reconciliation alternative performance measures

Alternative performance measures not defined by IFRS

million EUR (except percentage)	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Operating income (EBIT)	14.1	35.8	23.9	57.6	68.0
Amortisations	3.4	2.2	6.2	4.3	9.7
EBITA	17.5	38.0	30.1	61.9	77.7
Items affecting comparability	0.8	-6.1	2.1	-3.6	18.3
Adjusted EBITA	18.3	31.9	32.2	58.3	96.1
EBITA	17.5	38.0	30.1	61.9	77.7
Depreciations	13.2	8.5	27.5	16.5	37.5
EBITDA	30.7	46.4	57.6	78.3	115.2
Items affecting comparability	0.8	-6.1	2.1	-3.6	18.3
Adjusted EBITDA	31.5	40.3	59.7	74.7	133.6
Adjusted EBITA Rolling 12 months	69.9	102.6	69.9	102.6	96.1
Average capital employed	836.7	476.8	836.7	476.8	629.1
Return on average capital employed (ROCE)%	8.4%	21.5%	8.4%	21.5%	15.3%

Items affecting comparability

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Severance, integration and restructuring costs	-0.2	-0.1	-1.4	-0.3	-1.6
Transaction costs	-0.3	-3.6	-0.4	-5.9	-9.2
Capital gains/losses from sale of fixed assets	-0.3	0.0	-0.3	0.0	2.3
Capital gain/losses from sale of subsidiary	-	-	-	-	-3.3
Capital gain from sale of associated company	-	9.8	-	9.8	10.7
Settlement agreement – European Commission	-	-	-	-	-17.2
Total	-0.8	6.1	-2.1	3.6	-18.3

APM

Adjusted EPS

million EUR (except average number of shares)	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Profit attributable to the parent company shareholders	1.7	24.6	0.3	33.1	34.4
Reversing adjustment items before tax
Items affecting comparability	0.8	-6.1	2.1	-3.6	18.3
Depreciations/amortisations attributable to fair value adjustments in business combinations	4.0	2.8	7.2	5.2	11.2
Fair value changes in financial items	1.2	2.8	2.2	2.6	3.8
	6.0	-0.5	11.5	4.2	33.3
Reversing tax impact on adjustment items
Items affecting comparability	-	-	-	-0.1	-11.9
Depreciations/amortisations attributable to fair value adjustments in business combinations	-0.9	-0.6	-1.7	-1.1	-2.5
Fair value changes in financial items	-	-	-	-	-
	-0.9	-0.6	-1.7	-1.2	-14.5
Total impact on profit/loss for the period	5.1	-1.2	9.9	3.0	18.8
Attributable to non-controlling interests	0.0	0.0	-0.1	0.0	0.0
Adjusted profit attributable to the parent company shareholders	6.7	23.3	10.1	36.0	53.2
Average number of shares	191 722 290 157	039 804 191	620 961 156	878 633 164	109 723
Adjusted earnings per share, basic	0.03	0.15	0.05	0.23	0.32

											Intra-group	Total
million EUR	RAW	%	I&C	%	P&C	%	Circular	%	Unallocated	%	revenue	net sales	%
Q2 2022	125.4		85.3		92.4		18.2		0.1		-44.4	277.0
Acquisitions	20.9	16.6%	77.9	91.4%	13.8	15.0%	1.8	9.9%	-	-	-13.7	100.6	36.3%
Of which Jackon	20.9	16.6%	60.3	70.7%	10.6	11.5%	-	-	-	-	-12.3	79.5	28.7%
Other	-	-	17.6	20.6%	3.2	3.5%	1.8	9.9%	-	-	-1.4	21.2	7.6%
Divestments	-	-	-4.8	-5.6%	-	-	-	-	-	-	-	-4.8	-1.7%
Currency	-	-	-1.0	-1.2%	-5.6	-6.1%	-0.4	-2.4%	0.0	-7.4%	0.2	-6.9	-2.5%
Organic growth	-60.8	-48.5%	-32.5	-38.1%	-0.9	-1.0%	-3.1	-16.9%	0.0	-13.6%	20.9	-76.3	-27.6%
Total increase/ decrease	-39.9	-31.8%	39.6	46.4%	7.3	7.9%	-1.7	-9.4%	0.0	-21.0%	7.4	12.6	4.6%
Q2 2023	85.5		124.8		99.7		16.5		0.1		-37.0	289.6
											Intra-group	Total
million EUR	RAW	%	I&C	%	P&C	%	Circular	%	Unallocated	%	revenue	net sales	%
YTD 2022	225.9		147.7		184.2		29.6		0.2		-80.2	507.2

Revenue bridge: Change in net sales from corresponding periods in 2022

million EUR	RAW	%	I&C	%	P&C	%	Circular	%	Unallocated	%	revenue	net sales	%
YTD 2022	225.9		147.7		184.2		29.6		0.2		-80.2	507.2
Acquisitions	39.4	17.4%	153.1	103.7%	33.8	18.4%	4.3	14.7%	-	-	-24.6	206.1	40.6%
Of which Jackon	39.4	17.4%	115.3	78.1%	23.2	12.6%	-	-	-	-	-22.9	154.9	30.5%
Other	-	-	37.9	25.6%	10.7	5.8%	4.3	14.7%	-	-	-1.7	51.2	10.1%
Divestments	-	-	-8.4	-5.7%	-	-	-	-	-	-	-	-8.4	-1.7%
Currency	-	-	-1.6	-1.1%	-10.0	-5.4%	-1.0	-3.5%	0.0	-6.8%	0.5	-12.1	-2.4%
Organic growth	-86.3	-38.2%	-45.4	-30.8%	1.4	0.8%	-1.0	-3.2%	0.0	-8.0%	24.4	-106.8	-21.1%
Total increase/ decrease	-46.9	-20.8%	97.7	66.2%	25.3	13.7%	2.4	8.0%	0.0	-14.8%	0.3	78.7	15.5%
YTD 2023	179.0		245.4		209.4		32.0		0.1		-79.9	586.0

million EUR	RAW	%	I&C	%	P&C	%	Circular	%	Unallocated	%	Total adj. EBITDA	%
Q2 2022	16.4		11.2		12.1		1.9		-1.3		40.3
Acquisitions	2.0	12.3%	5.3	47.3%	2.6	21.6%	-0.9	-44.7%	0.0	0.0%	9.1	22.5%
Of which Jackon	2.0	12.3%	3.0	26.8%	2.3	19.2%	-	-	0.0	0.0%	7.3	18.2%
Other	-	-	2.3	20.5%	0.3	2.4%	-0.9	-44.7%	0.0	0.0%	1.7	4.3%
Divestments	-	-	-0.4	-3.2%	-	-	-	-	-	-	-0.4	-0.9%
Currency	-	-	-0.1	-0.6%	-0.8	-6.9%	0.1	6.1%	0.2	-16.1%	-0.6	-1.4%
Organic growth	-12.1	-73.7%	-3.5	-30.9%	0.9	7.5%	-2.1	-111.3%	-0.2	18.4%	-17.0	-42.2%
Total increase/ decrease	-10.1	-61.4%	1.4	12.6%	2.7	22.2%	-2.9	-149.9%	0.0	2.3%	-8.9	-22.0%
Q2 2023	6.3		12.6		14.8		-1.0		-1.3		31.5
million EUR	RAW	%	I&C	%	P&C	%	Circular	%	Unallocated	%	Total adj. EBITDA	%
YTD 2022	35.8		17.3		21.2		3.0		-2.6		74.7
Acquisitions	4.1	11.5%	8.0	46.1%	5.9	27.8%	-0.8	-28.2%	0.0	0.1%	17.1	22.9%
Of which Jackon	4.1	11.5%	3.4	19.5%	4.4	20.8%	-	-	0.0	0.0%	11.9	15.9%
Other	-	-	4.6	26.6%	1.5	7.0%	-0.8	-28.2%	0.0	0.1%	5.2	7.0%
Divestments	-	-	-0.7	-4.2%	-	-	-	-	-	-	-0.7	-1.0%

EBITDA bridge: Change in adjusted EBITDA from corresponding periods in 2022

million EUR	RAW	%	I&C	%	P&C	%	Circular	%	Unallocated	%	EBITDA	%
YTD 2022	35.8		17.3		21.2		3.0		-2.6		74.7
Acquisitions	4.1	11.5%	8.0	46.1%	5.9	27.8%	-0.8	-28.2%	0.0	0.1%	17.1	22.9%
Of which Jackon	4.1	11.5%	3.4	19.5%	4.4	20.8%	-	-	0.0	0.0%	11.9	15.9%
Other	-	-	4.6	26.6%	1.5	7.0%	-0.8	-28.2%	0.0	0.1%	5.2	7.0%
Divestments	-	-	-0.7	-4.2%	-	-	-	-	-	-	-0.7	-1.0%
Currency	-	-	0.0	-0.2%	-1.3	-6.2%	0.1	4.9%	0.4	-14.0%	-0.8	-1.1%
Organic growth	-26.0	-72.5%	-4.0	-22.9%	2.4	11.2%	-2.8	-92.7%	-0.3	13.1%	-30.7	-41.0%
Total increase/ decrease	-21.8	-61.0%	3.3	18.9%	6.9	32.8%	-3.5	-116.0%	0.0	-0.8%	-15.1	-20.2%
YTD 2023	14.0		20.6		28.1		-0.5		-2.5		59.7

Consolidated condensed interim financial statements for the period ended 31 March 2022

Consolidated condensed interim statement of income

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Revenues
Net sales	289.6	277.0	586.0	507.2	1 050.4
Total operating income	289.6	277.0	586.0	507.2	1 050.4
Operating expenses
Raw materials and consumables	-117.4	-122.0	-238.9	-208.4	-432.4
Goods for resale	-27.0	-38.6	-51.8	-74.0	-136.1
Other external costs	-64.0	-47.9	-135.9	-92.8	-229.9
Personnel cost	-50.8	-33.5	-102.6	-65.7	-149.3
Depreciation/amortisation and impairment of tangible and intangible assets	-16.6	-10.7	-33.7	-20.7	-47.2
Share of income from associated companies	0.7	1.6	1.1	2.3	2.8
Capital gain/loss from sale of assets and sale of business	-0.3	9.8	-0.3	9.8	9.7
Total	-275.5	-241.2	-562.0	-449.6	-982.5
Operating income (EBIT)	14.1	35.8	23.9	57.6	68.0
Financial income	1.8	0.7	3.4	0.4	2.0
Financial expenses	-11.0	-6.9	-23.0	-13.5	-27.4
Net financial items	-9.2	-6.2	-19.6	-13.1	-25.5
Income before tax	4.9	29.6	4.3	44.5	42.5
Income tax expense	-1.9	-4.7	-2.1	-11.4	-7.2
Profit/loss for the period	3.0	24.9	2.3	33.1	35.4

Consolidated condensed interim statement of comprehensive income

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Profit/loss for the period	3.0	24.9	2.3	33.1	35.4
OTHER COMPREHENSIVE INCOME
Items that may later be reclassified to profit or loss
Exchange rate differences	9.2	-5.0	5.0	-2.2	-2.2
Items that will not be reclassified to profit or loss
Remeasurements of net pension obligations	-1.0	-0.2	-1.1	-0.2	-4.2
Income tax pertinent to remeasurements of net
pension obligations	0.2	0.0	0.2	0.0	0.8
Other comprehensive income after tax	8.4	-5.2	4.1	-2.4	-5.6
Total comprehensive income for the period	11.4	19.7	6.4	30.7	29.7

Profit attributable to

million EUR (except numbers for EPS)	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Profit for the period attributable to
Parent company shareholders	1.7	24.6	0.3	33.1	34.4
Non-controlling interests	1.3	0.3	2.0	0.0	0.9
Total comprehensive income attributable to
Parent company shareholders	9.7	19.4	4.0	30.8	28.7
Non-controlling interests	1.7	0.3	2.4	-0.1	1.0
Earnings per share
Average number of shares:	191 722 290	157 039 804	191 620 961	156 878 633	164 109 723
Diluted average number of shares	192 580 023	158 493 155	192 512 989	158 333 060	165 490 895
Earnings per share (EPS), basic (EUR)	0.01	0.16	0.00	0.21	0.21
Earnings per share (EPS), diluted (EUR)	0.01	0.15	0.00	0.21	0.21
Earnings per share (EPS), basic (NOK)	0.12	1.56	0.02	2.10	2.12
Earnings per share (EPS), diluted (NOK)	0.11	1.54	0.02	2.08	2.10

EPS in NOK is calculated using average rates for the period

Consolidated condensed interim statements of financial position

million EUR	30 Jun 2023	30 Jun 2022	31 Dec 2022
ASSETS
Non-current assets
Intangible assets
Goodwill	241.7	163.0	262.8
Other intangible assets	144.5	88.4	135.2
Total intangible assets	386.3	251.4	398.0
Property plant and equipment
Land and buildings	243.9	119.1	238.6
Plant and machinery	173.4	100.7	178.0
Equipment, tools, fixtures and fittings	25.9	10.3	28.2
Construction in progress and advance payments	31.5	13.0	23.9
Total property, plant and equipment	474.7	243.1	468.7
Financial assets
Shares in associates	12.4	14.0	13.2
Other financial non-current assets	17.1	14.0	8.9
Total financial assets	29.5	28.0	22.1
Deferred tax assets	10.9	3.3	4.4
Total non-current assets	901.3	525.9	893.2

million EUR	30 Jun 2023	30 Jun 2022	31 Dec 2022
Current assets
Inventory	143.5	104.9	167.6
Other current assets
Accounts receivable	167.6	153.0	156.7
Current tax assets	1.1	0.7	0.7
Other current receivables	17.7	7.6	14.2
Prepaid expenses and accrued income	19.9	9.9	12.5
Other financial assets	4.0	5.7	8.3
Cash and cash equivalents	42.6	75.9	47.5
Total other current assets	252.9	252.9	239.9
Total current assets	396.5	357.8	407.5
TOTAL ASSETS	1 297.8	883.6	1 300.7

Consolidated condensed interim statements of financial position cont.

million EUR	30 Jun 2023	30 Jun 2022	31 Dec 2022
EQUITY
Share capital	18.3	14.9	18.2
Additional paid-in capital	323.1	168.0	322.3
Reserves	-12.1	-12.4	-15.3
Accumulated profit (including net profit for the period)	95.3	114.3	94.7
Equity attributable to Parent Company shareholders	424.6	284.8	419.8
Non-controlling interests	12.8	8.1	10.0
TOTAL EQUITY	437.4	292.9	429.8
LIABILITIES
Non-current liabilities
Pensions and similar obligations to employees	1.6	1.0	1.3
Provisions	0.9	0.4	0.4
Deferred tax liability	54.9	27.5	58.3
Non-current bond loan	247.7	246.6	246.9
Other non-current interest-bearing liabilities	304.4	100.4	238.2
Other financial non-current liabilities	0.7	0.0	0.7
Total non-current liabilities	610.2	376.0	545.7

million EUR	30 Jun 2023	30 Jun 2022	31 Dec 2022
Current liabilities
Other current interest-bearing liabilities	47.5	27.2	112.4
Other financial liabilities	0.4	0.0	0.4
Accounts payable	83.5	101.1	83.5
Current tax liabilities	18.4	11.2	16.4
Other current liabilities	18.2	18.0	15.1
Accrued expenses and deferred income	82.2	57.1	97.3
Total current liabilities	250.1	214.7	325.2
TOTAL LIABILITIES	860.4	590.7	870.9
TOTAL EQUITY AND LIABILITIES	1 297.8	883.6	1 300.7

	Trondheim, 16 August 2023
	The board of directors and CEO of BEWI ASA
Gunnar Syvertsen	Anne-Lise Aukner	Rik Dobbelaere	Andreas Akselsen
Chair of the Board	Director	Director	Director
Kristina Schauman	Pernille Skarstein Christensen	Christian Bekken
Director	Director	CEO

Consolidated condensed interim statements of changes in equity

million EUR	1 Jan–30 Jun 2023	1 Jan–30 Jun 2022	1 Jan–31 Dec 2022
OPENING BALANCE	429.8	262.2	262.2
Net profit for the period	2.3	33.1	35.4
Other comprehensive income	4.1	-2.4	-5.6
Total comprehensive income	6.4	30.7	29.7
New share issue, net of transaction costs	0.8	1.0	158.7
Dividend	-0.6	-	-20.8
Share-based payments	0.1	0.3	0.6
Acquisition non-controlling interest	0.9	-1.3	-0.6
Total transactions with shareholders	1.2	0.0	137.9
CLOSING BALANCE	437.4	292.9	429.8

Consolidated condensed interim statements of cash flows

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Operating income (EBIT)	14.1	35.8	23.9	57.6	68.0
Adjustment for non-cash items etc.	15.7	-1.0	33.1	8.1	50.5
Net financial items	8.6	-4.7	-1.5	-7.6	-16.4
Income tax paid	-7.9	-6.3	-9.4	-8.6	-14.2
Cash flow from operating activities before changes in working capital	30.5	23.7	46.2	49.5	87.8
Increase/decrease in inventories	10.2	-10.0	15.5	-18.6	-20.4
Increase/decrease in operating receivables	-5.0	-5.8	-17.5	-38.8	28.6
Increase/decrease in operating liabilities	-9.6	17.1	-10.7	18.7	-55.1
Cash flow from changes in working capital	-4.4	1.3	-12.7	-38.7	-46.9
Cash flow from operating activities	26.0	25.0	33.5	10.8	40.9
Acquisitions non-current assets	-16.2	-9.2	-27.5	-14.4	-43.7
Divestment non-current assets	0.3	0.2	18.3	0.3	92.8
Business acquisitions/ financial investments	0.0	-57.3	-0.1	-58.7	-228.7
Cash flow from investing activities	-15.8	-66.3	-9.3	-72.8	-179.7
Borrowings	5.2	2.7	67.9	4.6	85.0
Repayment of debt	-9.0	-4.7	-96.1	-8.6	-18.3
Dividend	-	-	-	-	-20.8
New share issue, net	-	-	0.8	1.0	1.0
Cash flow from financing activities	-3.8	-2.0	-27.4	-3.0	46.9
Cash flow for the period	6.4	-43.4	-3.3	-65.0	-91.9
Opening cash and cash equivalents	36.5	123.9	47.5	142.3	142.3
Exchange difference in cash	-0.3	-4.7	-1.6	-1.5	-2.9
Closing cash and cash equivalents	42.6	75.9	42.6	75.9	47.5

Notes to the financial statements

Note 01 General information

The company and the group

BEWI ASA, with corporate registration number 925 437 948, is a holding company registered in Norway, Trondheim at the address Dyre Halses gate 1a, 7042 Trondheim, Norway.

Amounts are given in EUR million unless otherwise indicated.

Note 02 Accounting policies

BEWI ASA applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The accounting policies applied to comply with those described in BEWI ASA's Annual Report for 2022. This interim report has been prepared in accordance with IAS 34 Interim financial reporting and the Norwegian Accounting Act.

Note 03 Related party transactions

Christian Bekken, CEO of BEWI ASA, is together with other members of the Bekken family major shareholders of BEWI ASA through Bekken Invest AS and BEWI Invest AS. Companies owned by the Bekken family are related parties to BEWI ASA.

Other related parties are BEWI's associated companies, for example the two 34 per cent owned companies Hirsch France SAS and Hirsch Porozell GmbH. Transactions with the related parties' companies are presented in the tables below.

Transactions impacting the income statement

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Sale of goods to
Companies with Bekken as significant shareholder	0.0	0.1	0.0	0.4	0.4
HIRSCH France SAS	5.0	6.7	12.2	13.8	25.6
HIRSCH Porozell GmbH	9.7	13.0	17.3	24.8	46.2
Jablite Group Ltd.	-	1.5	-	3.6	3.6
Inoplast s.r.o.	-	1.1	-	1.8	4.3
BEWI EPS ehf	0.0	-	0.2	-	-
Total:	14.7	22.3	29.7	44.4	80.1
Other income from
Companies with Bekken as significant shareholder	0.0	-	0.1	0.1	0.3
Inoplast s.r.o	-	0.3	-	0.5	0.6
Total:	0.0	0.3	0.1	0.6	0.9
Purchase of goods from
Inoplast s.r.o.	-	1.6	-	2.8	4.5
Remondis Technology Spólka z o.o.	1.2	0.9	2.5	1.4	4.2
Total:	1.2	2.5	2.5	4.2	8.7

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Interest Income from
Hirsch France SAS	-	0.1	-	0.1	0.1
Jablite Group Ltd.	-	0.0	-	0.0	0.0
Total:	-	0.1	-	0.1	0.1
Rental expenses to
Companies with Bekken as significant shareholder	4.6	2.9	9.0	5.4	11.4
Total:	4.6	2.9	9.0	5.4	11.4
Other external costs to
Companies with Bekken as significant shareholder	0.1	0.0	0.1	0.0	0.1
Total:	0.1	0.0	0.1	0.0	0.1

Transactions impacting the balance sheet

million EUR	30 Jun 2023	30 Jun 2022	31 Dec 2022
Non-current receivables
Companies with Bekken as significant shareholder	0.1	0.1	0.1
Total:	0.1	0.1	0.1
Current receivables
Companies with Bekken as significant shareholder	3.4	2.2	1.8
HIRSCH Porozell GmbH	1.6	0.1	0.1
Inoplast s.r.o.	-	0.5	-
Total:	5.0	2.8	1.9
Current liabilities
Companies with Bekken as significant shareholder	0.5	0.0	0.3
Inoplast s.r.o	-	0.4	-
Total:	0.5	0.4	0.3

Note 04 Segment information

Operating segments are reported in a manner that corresponds with the internal reporting submitted to the chief operating decision-maker. The Executive Committee constitutes the chief operating decision maker for the BEWI group and takes strategic decisions in addition to evaluating the group's financial position and earnings. Group Management has determined the operating segments based on the information that is reviewed by the Executive Committee and used for the purposes of allocating

resources and assessing performance. The Executive Committee assesses the operations based on four operating segments: RAW, Insulation & Construction, Packaging & Components and Circular. Sales between segments take place on market terms. Each segment sells products that are similar in nature. External revenue for the different segments also represents the group's disaggregation of revenue.

	RAW	Insulation & Construction Packaging & Components Circular Unallocated			Elimination Total
million EUR	Q2 2023	Q2 2022	Q2 2023	Q2 2022	Q2 2023	Q2 2022	Q2 2023	Q2 2022	Q2 2023	Q2 2022	Q2 2023	Q2 2022	Q2 2023	Q2 2022
Internal net sales	32.6	39.9	0.5	1.5	0.7	3.0	3.1	0.0	0.0	0.0	-37.0	-44.4	0.0	0.0
External net sales	52.9	85.5	124.3	83.8	99.0	89.4	13.4	18.2	0.1	0.1			289.6	277.0
Net sales	85.5	125.4	124.8	85.3	99.7	92.4	16.5	18.2	0.1	0.1	-37.0	-44.4	289.6	277.0
Adj. EBITDA	6.3	16.4	12.6	11.2	14.8	12.1	-1.0	1.9	-1.3	-1.3			31.5	40.3
EBITDA	6.3	16.5	12.1	18.5	14.7	14.0	-1.0	1.2	-1.5	-3.7			30.7	46.4
EBITA	5.1	15.6	6.4	16.2	9.2	9.2	-1.5	0.8	-1.7	-3.9			17.5	38.0
EBIT	5.0	15.5	4.8	15.4	8.0	8.1	-1.7	0.8	-1.9	-4.1			14.1	35.8
Net financial items													-9.2	-6.2
Income before tax													4.9	29.6

million EUR		RAW		Insulation & Construction		Packaging & Components		Circular		Unallocated		Elimination		Total
	YTD 2023	YTD 2022	YTD 2023	YTD 2022	YTD 2023	YTD 2022	YTD 2023	YTD 2022	YTD 2023	YTD 2022	YTD 2023	YTD 2022	YTD 2023	YTD 2022
Internal net sales	71.0	71.8	0.9	2.5	1.9	5.8	6.1	0.2	0.0	0.0	-79.9	-80.2	0.0	0.0
External net sales	108.0	154.0	244.4	145.2	207.5	178.4	25.9	29.5	0.1	0.2			586.0	507.2
Net sales	179.0	225.9	245.4	147.7	209.4	184.2	32.0	29.6	0.1	0.2	-79.9	-80.2	586.0	507.2
Adj. EBITDA	14.0	35.8	20.6	17.3	28.1	21.2	-0.5	3.0	-2.5	-2.6			59.7	74.7
EBITDA	14.0	35.9	18.9	24.6	28.0	23.1	-0.5	2.2	-2.8	-7.5			57.6	78.3
EBITA	11.4	34.0	6.4	20.2	16.9	13.9	-1.6	1.5	-3.0	-7.7			30.1	61.9
EBIT	11.2	33.8	3.6	18.9	14.7	11.5	-2.0	1.5	-3.6	-8.1			23.9	57.6
Net financial items													-19.6	-13.1
Income before tax													4.3	44.5

	RAW	Insulation & Construction	Packaging & Components	Circular	Unallocated	Elimination	Total
million EUR	2022	2022	2022	2022	2022	2022	2022
Internal net sales	142.0	4.0	10.0	0.7	0.0	-156.8	0.0
External net sales	276.0	329.9	381.9	62.4	0.3		1050.4
Net sales	418.0	333.9	391.9	63.1	0.3	-156.8	1050.4
Adj. EBITDA	57.0	31.1	48.3	2.5	-5.4		133.6
EBITDA	40.0	33.6	53.3	2.6	-14.2		115.2
EBITA	35.7	22.3	33.6	0.9	-14.8		77.7
EBIT	35.3	19.4	28.8	0.3	-15.8		68.0
Net financial items							-25.5
Income before tax							42.5

External revenue by country (buying company's geography)

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Total Finland	12.6	18.4	22.7	27.0	54.2
Total Sweden	24.3	18.9	48.1	34.6	73.8
Total Denmark	21.2	19.7	42.5	37.1	73.2
Total Norway	49.6	47.1	105.3	90.6	193.0
Total Portugal & Spain	17.2	19.1	36.0	34.5	73.6
Total Iceland	5.4	5.1	12.5	12.2	25.2
Total Baltics	7.7	7.6	16.6	11.1	33.1
Total UK	24.2	12.4	43.5	18.4	57.6
Total Germany	35.6	24.3	72.2	45.8	101.0
Total Poland	11.8	15.5	23.7	28.8	44.8
Total Russia	-	2.9	-	9.6	14.0
Total Netherlands	35.2	43.5	70.8	80.2	154.3
Total Belgium	9.8	11.7	19.9	21.9	38.6
Total France	11.4	8.3	27.3	16.9	36.1
Total Other	23.6	22.5	44.9	38.6	77.9
Total Group	289.6	277.0	586.0	507.2	1 050.4

Note 05 Depreciation/amortisation and impairment of tangible and intangible fixed assets

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Attributable to operations	-8.1	-5.2	-17.0	-10.5	-24.1
Attributable to IFRS 16	-4.5	-2.7	-9.5	-5.0	-12.0
Attributable to fair value adjustments in business
combinations	-4.0	-2.8	-7.2	-5.2	-11.2
Total	-16.6	-10.7	-33.7	-20.7	-47.2

Note 06 The group's borrowings

million EUR	30 Jun 2023	30 Jun 2022	31 Dec 2022
Non-current liabilities
Bond loan	247.7	246.6	246.9
Liabilities to credit institutions	122.5	9.9	87.8
Liabilities leases	181.9	90.6	150.4
Other non-current liabilities	0.7	-	0.7
Total	552.8	347.1	485.8
Current liabilities
Liabilities to credit institutions	7.6	12.5	69.5
Liabilities leases	21.7	14.7	20.1
Overdraft	18.1	0.0	22.8
Total	47.5	27.2	112.4
Total liabilities	600.3	374.3	598.2
Cash and cash equivalents	42.6	75.9	47.5
Net debt including IFRS 16 impact	557.7	298.4	550.7
Subtracting liabilities capitalised in accordance with IFRS 16
Non-current liabilities leases	176.5	89.3	149.1
Current liabilities leases	20.9	13.8	19.3
Total	197.4	103.1	168.4
Net debt excluding IFRS 16 impact	360.3	195.3	382.3

Net debt is also presented excluding the effect of IFRS 16, since the impact of IFRS 16 on net debt and EBITDA is excluded in the relevant covenant calculations.

The group's loan structure

As of 30 June 2023, the group has one bond loan outstanding. The bond is unsecured and linked to a sustainability framework, matures on 3 September 2026, with the possibility for BEWI to unilaterally decide on early redemption after 3 March 2025 of 50 per cent of the bond outstanding at that date. The main term for the bond outstanding during the year is presented in the table below.

Issued amount	Frame	Amount outstanding	Date of issuance	Maturity
EUR 250 million	EUR 250 million	EUR 250 million	3 September 2021	3 September 2026

The bond is recognised under the effective interest method at amortised cost after deductions for transaction costs. Interest terms, as well as nominal interest rates and average interest rates recognised during the quarter are presented in the table below.

Bond loans	Interest terms	Nominal interest 1 Apr–30 Jun 2023	Nominal interest 1 Jan–30 Jun 2023	Average interest 1 Apr–30 Jun 2023	Average interest 1 Jan–30 Jun 2023
EUR 250 million	Euribor 3m + 3.15%	5.93-6.61%	5.12-6.61%	6.73%	6.33%

In addition, the group has a revolving credit facility (RCF) of EUR 150 million granted by two banks. As of 30 June, the revolving credit facility was utilised in the amount of 124.2. In addition, the group has liabilities in acquired companies, The Group also have liabilities such as local liabilities to credit institutions and , overdraft facilities in some of its companies and liabilities for lease contracts, that have not been refinanced post-acquisition.

Pledged assets

In total the group has pledged asset amounted to EUR 82.5 million for interest bearing liabilities in acquired companies as described above. The bond loan and the revolving credit facility are unsecured.

Contingent liabilities

Guarantees issued to suppliers amounted to EUR 61.5 million.

Note 07 Fair value and financial instruments

million EUR	Level 1	Level 2	Level 3	Total	Carrying amount
Financial assets measured at fair value through profit and loss
Participation in other companies	14.1	-	0.6	14.7	14.7
Derivative asset	-	4.0	-	4.0	4.0
Total	14.1	4.0	0.6	18.7	18.7
Financial liabilities measured at fair value through profit and loss Derivative liabilities Other financial non-current liabilities	- -	0.4 -	- 0.7	- 0.7	0.4 0.7
Total	-	0.4	0.7	0.7	1.1
Financial liabilities measured at amortised cost
Bond loan	245.0	-	-	245.0	247.7
Total	245.0	-	-	245.0	247.7

Financial instruments are initially measured at fair value, adjusted for transaction costs, except for financial instruments subsequently measured at fair value through profit and loss. For those instruments, transactions costs are recognized immediately in profit and loss. The group is classifying its financial instruments based on the business model applied for groups of financial instruments within the group and whether separate financial instruments meet the criteria for cash flows that are solely being payments of principal and interest on the principal amount outstanding. The group is classifying its financial instruments into the group's financial assets and financial liabilities measured at fair value through profit and loss and financial assets and financial liabilities measured at amortised cost. The table above shows the fair value of financial instruments measured at fair value, or where fair value differs from the carrying amount because the item is recognized at amortised cost (the bond loans). The carrying amount of the groups' other financial assets and liabilities is considered to constitute a good approximation of the fair value since they either carry floating interest rates or are of a non-current nature.

Level 3 – Changes during the period (EUR million)	Participation in other companies	Other financial non-current liabilities
As of 31 December 2022	0.5	0.7
Fair value adjustment through profit and loss	0.1	-
As of 30 June 2023	0.6	0.7

• Level 1 – listed prices (unadjusted) on active markets for identical assets and liabilities.

• Level 2 – Other observable data for the asset or liability are listed prices included in Level 1, either directly (as price) or indirectly (derived from price).

• Level 3 – Data for the asset or liability that is not based on observable market data.

Note 08 Net financial item

million EUR	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Interest revenue and other financial income	1.2	0.2	2.7	0.3	2.0
Exchange rate differences, net of fair value derivatives	0.6	0.5	0.7	0.1	-
Total financial income	1.8	0.7	3.4	0.4	2.0
Interest expenses and other financing costs	-7.0	-2.8	-15.7	-5.5	-14.5
IFRS 16 interest expenses	-2.8	-1.3	-5.1	-2.5	-6.0
Fair value adjustments shares and participations	-1.2	-2.8	-2.2	-5.5	-6.7
Exchange rate differences, net of fair value derivatives	-	-	-	-	-0.2
Total financial expenses	-11.0	-6.9	-23.0	-13.5	-27.4
Net financial items	-9.2	-6.2	-19.6	-13.1	-25.5

Note 9 Shares in associates

BEWI has five interests in Shares in associates: HIRSCH Porozell GmbH, HIRSCH France SAS, Energijägarna & Dorocell AB (E&D AB), BEWI EPS ehf and Remondis Technology Spólka z o.o.

The table below presents key aggregated financial data as reflected in BEWI's consolidated accounts.

million EUR (except percentages and sites)	Total
Number of production sites	14
Book value as of 30 June 2023	12.4
Key financials YTD 2023
Net Sales YTD 2023	92.5
EBITDA YTD 2023	8.2
Of which owned share of EBITDA	2.8
EBIT	3.5
Net Profit	3.3
Consolidated into BEWI's EBITDA, share of Net profit	1.1
BEWI's share of EBITDA minus impact on consolidated EBITDA	1.7
Net debt	20.3
Of which owned share Net Debt	7.0

Note 10 Earnings per share

	Q2 2023	Q2 2022	YTD 2023	YTD 2022	2022
Profit for the period attributable to parent company shareholders (million EUR)	1.7	24.6	0.3	33.1	34.4
Average number of shares	191 722 290	157 039 804	191 620 691	156 878 633	164 109 723
Effect of options to employees	857 733	1 453 351	892 028	1 454 427	1 381 172
Diluted average number of shares	192 580 023	158 493 155	192 512 989	158 333 060	165 490 895
Earnings per share (EPS), basic (EUR)	0.01	0.16	0.00	0.21	0.21
Earnings per share (EPS), diluted (EUR)	0.01	0.15	0.00	0.21	0.21
Earnings per share (EPS), basic (NOK)	0.12	1.56	0.02	2.10	2.12
Earnings per share (EPS), diluted (NOK)	0.11	1.54	0.02	2.08	2.10

EPS in NOK is calculated using the average rate in the period

The number shares outstanding have increased from 191 347 992 to 191 722 290 compared to 31 December 2022 in a new share issue in February 2023. Earnings per share is calculated by dividing profit attributable to parent company shareholders by the weighted number of ordinary shares during the period.

Note 11 Five-year summary

million EUR (except percentage)	2022	2021	2020	2019	2018
Net sales	1 050.4	748.2	462.6	429.9	380.7
Operating income (EBIT)	68.0	67.8	39.5	20.3	13.7
EBITDA	115.2	105.5	70.0	48.0	28.6
EBITDA margin (%)	11.0%	14.1%	15.1%	11.1%	7.5%
Adjusted EBITDA	133.6	109.0	65.0	51.8	30.9
Adj. EBITDA margin (%)	12.7%	14.6%	14.0%	12.1%	8.1%
Items affecting comparability	-18.3	-3.4	5.0	-3.9	-2.3
EBITA	77.7	75.4	45.8	27.5	18.3
EBITA margin (%)	7.4%	10.1%	9.9%	6.4%	4.8%
Adjusted EBITA	96.1	78.8	40.8	31.4	20.7
Adj. EBITA margin (%)	9.1%	10.5%	8.8%	7.3%	5.4%
Net profit/loss for the period	35.4	34.4	30.0	5.6	1.6
Cash flow from operating activities	40.9	67.4	33.2	35.9	17.6
Capital Expenditure (CAPEX)	-43.7	-34.7	-26.6	-14.3	-13.8
Average capital employed	629.1	409.6	322.0	301.1	183.2
Return on average capital employed (ROCE) %	15.3%	19.2%	12.6%	10.4%	11.3%1

As from 2019, the group applies IFRS 16. The impact from IFRS 16 in 2019 was EUR 7.5 million on EBITDA, EUR -5.4 million on depreciations, EUR -2.5 million on financial expenses, EUR 0.1 million on income tax and EUR -0.3 million on net profit.

¹ without IFRS 16 effects

Note 12 Quarterly data

million EUR (except percentage)	Q2 2023	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021	Q2 2021
Net sales	289.6	296.4	257.7	267.5	277.0	230.2	208.2	193.0	198.1
Operating income (EBIT)	14.1	9.8	-10.7	21.1	35.8	21.8	13.8	24.9	22.3
EBITDA	30.7	26.9	4.0	32.9	46.4	31.9	24.5	34.5	31.1
EBITDA margin (%)	10.6%	9.1%	1.5%	12.3%	16.8%	13.8%	11.8%	17.9%	15.7%
Adjusted EBITDA	31.5	28.2	24.4	34.4	40.3	34.4	26.4	34.2	31.6
Adj. EBITDA margin (%)	10.9%	9.5%	8.8%	12.9%	14.6%	14.9%	12.7%	17.7%	16.0%
Items affecting comparability	-0.8	-1.3	-20.4	-1.5	6.1	-2.5	-2.0	0.3	-0.5
EBITA	17.5	12.6	-7.3	23.2	38.0	23.9	15.7	27.0	24.2
EBITA margin (%)	6.0%	4.2%	-2.7%	8.7%	13.7%	10.4%	7.5%	14.0%	12.2%
Adjusted EBITA	18.3	13.9	13.0	24.7	31.9	26.4	17.6	26.7	24.7
Adj. EBITA margin (%)	6.3%	4.7%	4.7%	9.2%	11.5%	11.5%	8.5%	13.8%	12.5%
Net profit/loss for the period	3.0	-0.7	-7.8	10.0	24.9	8.2	9.0	11.9	14.4
Cash flow from operating activities	26.0	7.4	13.2	16.8	25.0	-14.2	34.5	31.2	1.4
Capital Expenditure (CAPEX)	-16.2	-11.3	-20.4	-8.9	-9.2	-5.2	-12.2	-7.2	-8.5
Average capital employed	836.7	735.2	629.1	520.6	476.8	434.0	409.6	388.6	362.7
Return on average capital employed (ROCE) %	8.4%	11.4%	15.3%	19.3%	21.5%	22.0%	19.2%	18.1%	15.4%

BEWI ASA www.bewi.com

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