Elopak ASA

Earnings Release • May 5, 2022

Elopak ASA first quarter 2022: Strong revenue growth, while navigating the effects of the crisis in Ukraine and increased raw material costs

Elopak ASA first quarter 2022: Strong revenue growth, while navigating the effects of the crisis in Ukraine and increased raw material costs

(Oslo, 5 May 2022) Elopak continued its strong operational performance in the first quarter of 2022, reporting 9% revenue growth. The performance was negatively impacted by the ongoing conflict in Ukraine, as well as unprecedented high prices of raw materials.

Highlights from Q1 2022:

• Revenues were EUR 243,4 million, a 9% increase compared to Q1 2021, due to value growth in EMEA and Americas.

• Adjusted EBITDA was EUR 27 million, down from an exceptionally strong Q1 in 2021 of EUR 32 million, corresponding to an adjusted EBITDA margin of 11.1%.

• Increased raw material prices impacted the Q1 results by approximately EUR 9 million.

• Total impairment of EUR 22.2 million related to assets in Russia and Ukraine.

• The Naturepak acquisition was completed on 29th March.

• The leverage ratio was 2.9x at the end of first quarter 2022, following the acquisition of Naturepak and higher raw material costs.

• Continue to deliver on geographic expansion; Naturepak closing in March and signing of Nippon License agreement for Oceanian market

• Signing of JV agreement in India with GLS on 28th April, providing Elopak with access to the exciting high growth Indian market.

“We are deeply concerned by the suffering caused as a result of the ongoing conflict in Ukraine, and our overriding priority remains the personal safety and security of our employees in the country. While production remains suspended in Russia, we have resumed some domestic production in Ukraine in support of efforts to maintain supplies of essential goods in the country. We will continue to pay the salaries of our 336 employees in Ukraine and Russia until further notice. The financial impact from the crisis was limited in Q1, but we have made an impairment of EUR 22 million and expect to see further effects in the near term”, said Elopak CEO Thomas Körmendi.

Commenting on Elopak’s operational performance, Körmendi said:

“I am very pleased with our strong revenue growth delivered in the quarter. This was primarily driven by our ability to pass through cost increases, in addition to higher volumes in segments in both Europe and Americas. We were however faced with unprecedented high raw material prices and inflationary pressure in the quarter, impacting our margins. The inflationary environment will continue to have a negative impact in the second quarter until our recently announced price increases take effect from June. We expect to see recovering margins in the second half of 2022.”.

Elopak remains committed to its growth strategy, as demonstrated by its pursuit of new opportunities in MENA and India.

“Despite the rough waters in the first quarter, our growth journey continues. With the integration of Naturepak into Elopak financials and continued growth in the MENA region, we expect to strengthen our position and deliver improved margins for the Group in the second half of 2022. Our strategic priorities in the near future will be to capitalize on the opportunities coming from the Naturepak integration and a stronger footprint in India, and at the same manage the uncertainties around Russia and Ukraine and raw material prices”, Körmendi said.

For the full report and quarterly presentation, please visit www.elopak.com/reports-presentations/

Contact

Media: Patrick Verhelst, Chief Marketing Officer, Tel: +47 91514102 , Patrick.verhelst@elopak.com

Investors: Thomas Askeland, Head of IR, Tel: +47 99234557, Thomas.askeland@elopak.com

About Elopak

Elopak is a leading global supplier of carton packaging and filling equipment. The company’s iconic Pure-Pak® cartons are made using renewable, recyclable and sustainably sourced materials, providing a natural and convenient alternative to plastic bottles that fits within a low carbon circular economy.

Founded in Norway in 1957, Elopak was listed on the Oslo Stock Exchange in 2021. Today it employs 2,700 people and sells in excess of 14 billion cartons annually across more than 70 countries.

Elopak is a UN Global Compact participant with a platinum EcoVadis rating and has been carbon neutral since 2016. For more information, go to elopak.com or follow us @Pure_Pak on Twitter and @Elopak on LinkedIn.