Elopak ASA

Environmental & Social Information • Mar 4, 2022

ELOPAK ASA: ELOPAK TEMPORARILY SUSPEND ALL BUSINESS ACTIVITIES IN RUSSIA WITH IMMEDIATE EFFECT

ELOPAK ASA: ELOPAK TEMPORARILY SUSPEND ALL BUSINESS ACTIVITIES IN RUSSIA WITH IMMEDIATE EFFECT

(Oslo, 4 March 2022) Elopak is deeply concerned by the escalating conflict in Ukraine and we fully stand behind the international communities’ reactions. Due to the evolving conflict, Elopak’s BoD has therefore decided to temporarily suspend all business activities in Russia with immediate effect. This includes import, export, production and sales in Russia.

Elopak's crisis response team is constantly monitoring the development in both Ukraine and Russia and assessing the impact on Elopak's business, people and assets. The long-term impact to Elopak will be evaluated over the coming weeks.

Update on Elopak’s business operations in Russia and Ukraine

Our plant in St Petersburg primarily delivers to the Russian market. The book value of fixed assets in our Russian operations was 7mEUR as of year-end 2021. Elopak has 185 employees in Russia, placed in our plant in St Petersburg and offices location in Moscow. The annual sales revenue for our Russian business in 2021 was 73mEUR to Russian customers and 3 mEUR to other smaller countries in the region.

Our plant in Fastiv, Ukraine, is presently not operating, but is currently intact. The book value of fixed assets in our Ukrainian operations was 8mEUR as of year-end 2021. The plant primarily produces for delivery to the Russian market, and therefore the operation of the plant is closely related to the situation in Russia. The 2021 sales revenue is 11 mEUR from Ukrainian customers and 3 mEUR from other customers in the region.

The business operations in Russia and Ukraine combined delivered around 10% EBITDA margin in 2021 (on a revenue of around 90 mEUR).

We will issue regular updates on any material changes to Elopak's operations or business outlook in the region.

Contacts:

Media: Patrick Verhelst, Chief Marketing Officer, Patrick.verhelst@elopak.com, +47 915 14 102

Investors: Thomas Askeland, Head of IR, Thomas.askeland@elopak.com, +47 992 34 557

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 2,600 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.