Bewi Invest AS

Earnings Release • May 20, 2022

Results for the first quarter of 2022

CEO Christian Bekken, CFO Marie Danielsson

20 May 2022

Cautionary note regarding forward-looking statements

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

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

First quarter of 2022

Highlights

Record-high EBITDA following solid demand

Integrated business model provide robust quarterly results for the group

• High raw material prices, combined with solid demand for EPS beads maintains a strong GAP
• Downstream segments manage to adjust prices to compensate for high cost level
• Positive volume development for insulation in Benelux
• Lower slaughter volumes in Norway impacted P&C
• Shortage of electronic components challenging for automotive industry, and partly HVAC
• Positive results for Circular
• Announced three new acquisitions in line with strategy
• Process to complete Jackon transaction progressing

Financial highlights for the first quarter of 2022

Record-high results driven by solid demand

Net sales of EUR 230.2 million, 55% growth

• Increased Styrene prices, EPS prices following due to high demand combined with limited market supply
• 37% organic growth
• o Increased prices in all segments
• o Improved volumes from Insulation in Benelux
• o Lower slaughter volumes of fish impacted volumes of fish boxes sold
• 18% explained by contribution from acquired companies
• o Positive development for insulation company Kemisol

Adj. EBITDA of EUR 34.4 million, 106% improvement

• 101% of the improvement was organic
• o Continued strong GAP for RAW
• o Downstream segments manage to adjust prices to compensate for higher costs
• o 5% improvement following acquisitions
• o Increased EBITDA for Insulation and Circular
• o IZOBLOK still impacted by shortage of electronic components

Adj. EBITDA (EUR million)

Net sales(EUR million)

Acquisition of Trondhjems Eskefabrikk

Strengthening product portfolio within paper packaging

• Acquisition of 100% of Norwegian paper packaging company
• Manufacturer of fibre-based packaging products, mainly for the food industry
• o A significant share of raw materials used is recycled fibres
• Revenues of EUR ~13.5 million for 2021, 15% growth from 2020
• Consideration in line with historical M&As with EV/EBITDA multiple of 5-7x

Trondhjems Eskefabrikk delivers packaging to many well-known Norwegian brands

Acquisition to become 100% owner of Jablite

Leading UK based insulation and packaging company, GBP ~40 million revenues

• Agreement to acquire remaining 51% of UK based packaging and insulation company Jablite Group
• BEWI acquired 49% in 2020
• Completed comprehensive restructuring programme since 2020, including closure of 2 facilities and other cost initiatives resulting in significant profitability improvement
• Annual turnover of GBP ~40 million with EBITDA margins of 5- 10%
• ~50 years of experience from developing EPS solutions for insulation and packaging
• Operating 3 facilities in the UK
• Experienced management team will continue in their roles
• Total consideration of GBP ~10 million for 51% of the shares settled in cash

Key value proposition

• Provide BEWI with a leading market position within packaging and insulation in the UK
• Platform for further growth in the UK
• Complementing Jackon's UK operations, providing potential for synergies

Key acqusitions confirming strategy

First quarter of 2022 8

First quarter of 2022

Financials

30%

27%

RAW Insulation P&C Circular

Financial overview

Integrated business model provides stable EBITDA margin on group level

Continued strong results following solid demand

First quarter 2022

• Net sales of EUR 100.4 million, up 57%
• o Increase explained by sales prices
• o Volumes in line with the first quarter last year
• Adj. EBITDA increase to EUR 19.4 million (3.2), a margin of 19.3%
• o Improvement from strengthened GAP due to strong demand
• o Compared to the previous quarter, EBITDA improved due to increase of raw material prices (Styrene) and EPS raw material prices, resulting in continued strong GAP compensating for higher energy prices and increased costs for additives

Net sales and Adj. EBITDA margin

Packaging & Components

Higher prices following continued increase in raw material prices

First quarter 2022

• Net sales of EUR 91.7 million, up 47%
• o 22% organic growth, mainly explained by increased sales prices in all regions to compensate for increased raw material prices
• o Volumes sold of traded food packaging products have increased significantly
• o Lower slaughter volumes of salmon and white fish impacted Norwegian sales volumes
• o Global shortage of electronic components continues to have a negative effect on volumes of automotive and HVAC components
• Adj. EBITDA of EUR 9.1 million (10.4), a margin of 9.9%
• o Organic growth negative 6.1%, mainly explained by lower volumes of fish boxes in Norway, due to lower slaughter volumes, and limited production at the new facility at Senja
• o Managed to adjust prices to compensate for higher cost level
• o Margins continue to be negatively impacted by challenges in automotive industry, explained by the shortage of electronic components
• o Higher share of traded food packaging products had a dilutive effect on margins

EUR million

Net sales and Adj. EBITDA margin

Insulation

Positive volume development for the Benelux region

First quarter 2022

• Net sales of EUR 62.4 million, up by 53%
• o Organic growth of 34% driven by higher volumes in Benelux and higher sales prices in all regions to compensate for increased raw material prices
• Adj. EBITDA of EUR 6.1 million (4.8), a margin of 9.8%
• o Excl. acquisitions, EBITDA increased by 13%, explained positive volume development in Benelux combined with higher prices
• o Recently acquired Kemisol performed well and contributed positively to the results
• o Extra costs related to the new production line in Norrköping continue to impact the results for the Swedish operations

Net sales and Adj. EBITDA margin

EUR million

Improved volumes, increased prices and strengthened EBITDA

First quarter 2022

• Net sales of EUR 11.4 million, up by 317%
• o Organic growth of 126% explained by higher volumes and increased sales prices, following significant increase in the virgin raw material prices
• o Volker Gruppe included from 1 October 2021
• Adj. EBITDA of EUR 1.1 million (0.0), a margin of 9.5%
• o Improved EBITDA driven by acquisitions, higher volumes and increased prices

Net sales Adj. EBITDA %

EUR million

Net sales and Adj. EBITDA margin

Financials

Consolidated P&L

Amounts in EUR million	Q1 2022	Q1 2021	2021
Net Sales	230.2	148.9	748.2
Total operating income	230.2	148.9	748.2
Raw materials and consumables	-86.4	-60.0	-304.9
Goods for resale	-35.4	-18.4	-92.2
Other external costs	-45.0	-29.4	-135.9
Personnel cost	-32.2	-25.9	-116.2
Depreciation/ amortisation/ impairment	-10.0	-8.7	-37.8
- attributable to operations	-5.3	-4.1	-18.8
- attributable to IFRS 16	-2.3	-2.4	-9.9
- attributable to fair value adjustments in business combinations	-2.4	-2.2	-9.0
Share of income from associated comp.	0.7	0.3	5.7
Capital gain from sale of assets	-0.1	0.0	1.0
Operating income (EBIT)	21.8	6.8	67.8
Net financial items	-6.9	-6.4	-18.8
Income tax expense	-6.8	-1.4	-14.6
Profit for the period	8.2	-1.0	34.4

First quarter of 2022

• Net sales of 230.2 million, up by 55%
• o 37% organic growth from higher prices and increased volumes from Insulation in the Benelux, whereas reduced volumes of fish boxes sold in Norway impacted negatively
• Increased operating costs
• o Cost for goods for resale increased due to higher share of sales of traded packaging products
• Increased number of employees in FTE due to acquisitions
• o 2,063 on 31 March 2022, compared to 2,097 end of 2021 and to 1,486 on 31 March 2021
• EBIT up by 221%
• Net financial items EUR -6.9 million
• o Negative impact by a EUR 2.9 million revaluation of an option to acquire a minority shareholding (negative impact of EUR 3.7 million for Q1 2021 related to shares in a listed company)
• Tax rate is impacted by transaction costs and option revaluation
• Profit for the period of EUR 8.2 million

Financials

Capital structure

Leverage: Net debt/ EBITDA ratio(1)

(1) EBITDA ratio: adjusted EBITDA rolling 12-months pro-forma acquired entities, (2) ROCE: Rolling 12 months adjusted EBITDA as a percentage of average capital employed during the same periode. Capital employed is defined as total equity plus net debt

• Net debt EUR 214 million/EUR 139 million
• Unutilized credit facility of EUR 80 million
• Significantly improved ROCE and stable leverage

EUR million	31.03.22	31.12.21	31.03.21
Cash and Cash equivalents	123.9	142.3	53.5
Non-current liabilities	256.8	257.0	140.6
Current liabilities	6.3	5.6	13.5
Debt related to IFRS 16	75.0	76.1	78.0
Net debt in total	214.2	196.4	178.6
- excl. IFRS	139.2	120.3	100.6

Financials

Strong Cash flow, maintenance CAPEX slighly below 2.5% of sales

First quarter 2022

• Operating cash flow negative EUR 14.2
• o Increase in working capital of EUR 40 million (9.5) following seasonality, but also higher prices impacting value of inventory and accounts receivables
• CAPEX of EUR 5.2 million (15.1)
• EUR 2.7 million related to investment programmes

Ongoing investment programmes

• New packaging facility Hitra/ Jøsnøya, Norway
• New extruder in Etten-Leur, Netherlands
• Insulation facility at Norrköping, Sweden
• Customer initiated technology/ machinery investments for components at Skara, Sweden
• ICT/ ERP investments

First quarter of 2022

Summary and outlook

M&A priorities going forward

Strategic rationale

Expanding circular business model

Broadening product offering with complimentary materials:

• Packaging: Paper/ fiber-based
• Insulation: EPS and other materials

Strengthening market positions

Geographic expansion

Continued strong pipeline of attractive M&A opportunities

Outlook

Experience continued solid demand, expecting EPS prices to remain on high levels

• Experience solid or strong demand in key markets
• Well-equipped to meet industrywide challenges in value chain
• o Shortage of electronic components
• o Delay in logistics & transport
• o General cost inflation
• Russia's invasion of Ukraine has increased uncertainty
• EPS prices expected to remain at historical high levels
• o Raw material prices expected to stabilise or slightly decrease
• o Expect improved profitability from downstream units, at the expense of the upstream unit
• Completion of Jackon transaction expected in the second quarter of 2022, pending regulatory approvals
• Continued strong pipeline of attractive M&A opportunities

Set to continue growth journey next five years

Next event

Second quarter and first half of 2022 18 August 2022

Minority interests

Positive contribution from shares in associated companies

	TOTAL
Production sites	16
Owned interest	34-49%
Booked value as of 31 March 2022	14.3

Key financials for the first quarter of 2022

Net sales	68.1
EBITDA	6.2
- of which owned share of EBITDA	2.2
EBIT	2.6
Net profit	1.8
Consolidated into BEWI's EBITDA, share of net profit	0.7

BEWI's share of EBITDA minus impact on consolidated EBITDA	1.5
Net debt	33.9
- of which owned share net debt	12.6

• Shares in associated companies are consolidated into BEWI's accounts with the value of the owned interest of net profit
• Consolidated as a net in one line within EBITDA, "Share of income from associated companies"
• Balance sheet is not consolidated other than changes to the booked value on the shares
• Hidden values occur compared to customary EV/EBITDA valuation