Bewi Invest AS

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We have demonstrated a strong ability to adapt through the downturn in the building and construction industry. As markets are slowly recovering, we are ready to accelerate growth and strengthen our position as a trusted partner of packaging and energy- efficient solutions. In 2024, we achieved financial results in line with our expectations in a challenging market, and delivered solid improvements on key environmental and social targets. Our strategy is clear and backed by the development in several important megatrends. Sustain operational excellence and accelerate growth in higher margin areas Europe’s push toward net-zero emissions is likely to impose increasing regulations. BEWI welcomes such developments as we believe they are important to incentivise more resource efficient societies. Our offering of insulation and other energy-efficient solutions, combined with the investments in circular capabilities, places us in a good position to contrib- ute to this transition. Our strategy is built around two core priorities, both directly linked to key megatrends affecting our business. First, we will sustain operational excellence. This means we will leverage on our organisation, existing offerings and investments. We strive for greater efficiency, optimising the use of energy and raw materials knowing that sustainability and oper- ational performance go hand in hand. Second, we will accelerate growth in energy-efficient solutions for buildings and circular packaging. We will do this through partnerships, transactions and investments. Gunnar Syvertsen Chair Christian Bekken CEO 55Introduction | Letter to stakeholdersIntroduction | Letter to stakeholders 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 3 200 dedicated employees building our success With approximately 3 200 dedicated employees, our people remain the cornerstone of our success. Their expertise, teamwork, and drive for innovation help us push boundaries in operational excellence. We have strengthened our focus on leadership development, talent attraction and retention. Equally, we are committed to foster a safe, diverse, and inclu- sive workplace where well-being and professional growth thrive. Our strong culture—challenging the conventional, never giving up, and working together as a team—continues to set us apart. Every year we ask our employees for their feedback in the annual employee survey, so that we can continue to tailor our efforts to improve. In 2024, we ran health and safety campaigns to raise awareness and strengthen the safety-culture. The campaigns resulted in improvement on both the frequency and severity rate, two important KPIs, reinforcing our commitment to a zero-accident work- place. We also continued to develop BEWI School, where we have programmes for younger talents, a senior leadership programme and now also a sales mastery programme. Key strategic developments Over the past year, we have made good progress on our strategic priorities, strengthening our position across our integrated and circular value chain. Operational efficiency and cost optimisation have been key to our ability to sustain margins despite a decrease in volumes due to lower construction activity in Europe. Through cost reduction initiatives and targeted margin management, we have deliv- ered solid results through the downturn. And more importantly, put us in a position to increase profitabil- ity when markets are recovering. We have also completed key investment projects that position us for future growth, such as the expansion of the paper packaging capacity in Denmark and construction boards in Belgium, adding to the poten- tial for organic growth in the coming years. In 2024, we succeeded in improving the energy and resource efficiency of our operations, resulting in reduced emissions and costs. We increased the use of renewable energy sources, reduced our raw material intensity and intensified our efforts to collect and recycle used EPS. We launched multiple solutions incorporating recycled and bio-based content, reinforcing our leadership in sustainable solutions for our customers. We are proud of how BEWI has navigated in challenging markets and positioned ourselves for long-term growth. 66Introduction | Letter to stakeholdersIntroduction | Letter to stakeholders 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 To support our growth ambitions, we have also invested in expanding our circular capabilities throughout the year. The new circular hub in Norrköping increases our recycling capacity by 40 per cent, while the ramp-up of the new production line in Etten-Leur facilitates increased use of recycled feedstock into new raw materials. We have also taken steps to streamline operations and strengthen our financial position through strate- gic transactions. The divestments of real estate assets, the strategic merging of our traded food packaging and RAW division with partners, and the ongoing review of our ownership in the automotive business all contribute to sharpening our focus and unlocking resources for growth in higher-margin areas. Opportunities and outlook Looking ahead, we are confident to grow our reve- nues with a stronger focus on insulation and other energy-efficient solutions for buildings. This is driven by the growing demand for improved energy effi- ciency of the building sector, which remains Europe’s single largest energy consumer. As the markets recover, we see significant growth potential, leverag- ing our existing asset base to scale efficiently. With a strong competitive advantage from our circular capabilities, we are well-positioned to capitalise on these opportunities and drive long-term sustainable growth. We firmly believe in the transition to a circular economy for packaging, and support regulations aimed at reducing waste, such as the Packaging and Packaging Waste Regulation. With 45 years of exper- tise and customer relationships, and an integrated value chain with strong circular capabilities, we are uniquely positioned to lead this transformation. We have a portfolio of efficient packaging solutions, where our range of fish boxes is a good example. In addition to the “regular” EPS fish boxes, of which we collect more volumes for recycling than the volumes we produce, we supply our customers with reusable boxes, fibre-based boxes, and EPS boxes based on recycled feedstock. We will continue to increase our collection of used EPS for recycling, enabling us to stay ahead of our competitors. With effective cost and capacity adjustments, we have sustained margins despite lower volumes. This means that we can significantly increase volumes without further investments, improving margins. Additionally, recent strategic transactions are aimed to further enhance profitability. We continue to see attractive M&A opportunities that align with our strategy to strengthen market positions, expand product offerings, and enhance our circular capabilities. With a stronger financial platform and a lean organisation, we will build on our momentum, delivering value for all stakeholders. Finally, we would like to thank each of our employees for their hard work and commitment. We also thank our partners, customers, and shareholders for their trust and support. Together, we will continue to lead the change towards a better – and more energy-effi- cient everyday. Oslo/ Trondheim, 26 March 2025 Gunnar Syvertsen Chair Christian Bekken CEO Looking ahead, we are confident to grow our revenues with a stronger focus on insulation and other energy-efficient solutions for buildings. 77Introduction | Letter to stakeholdersIntroduction | Letter to stakeholders 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024 Year in review Opening of a new production line for Siroc in Skövde, Sweden, doubling the production capacity. Read more Launch of Certified Recycled EPS, products based on recycled feedstock, suitable for the food packaging industry. Read more Opening of a new circular hub in Norrköping, Sweden, increasing the production capacity of recycled GPPS by 40 per cent. Read more 20 new BEWI Growth graduates, ready for the next step on management team level. Opening a new production line for construction boards in Olen, Belgium. Read more Introduction of grey EPS raw material with up to 40 per cent recycled feedstock. Read more Agreement to acquire assets strengthening the automotive business. Read more Introduction of construction boards made with recycled GPPS and bio-based lignin. Agreement to merge traded food packaging business with STOK Emballage. Read more Start up of a new production line in Thorsøe, Denmark, doubling the production capacity of protective paper packaging. Introduction of Xire, a fire- resistant EPS developed for the building sector. Read more BEWI is among the first EPS producers in Europe to achieve Operation Clean Sweep certifications. February DecemberApril June August October 88Introduction | Year in review 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024 Our business Integrated and circular business model Information on pages 9–109 constitutes the board of directors’ report, cfr. section 2-2 of the Norwegian accounting act. An index to support the chapter references related to regulations is included on page 110 . 99Our business 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 About BEWI BEWI is an international provider of packaging, components, and insulation solutions. The group has an integrated and circular business model. From production of raw materials and end-products, to collecting used materials for recycling, and re-using the recycled materials to new raw material and new products. The BEWI group (“BEWI” or “the group”) comprises BEWI ASA (“the parent company”) and all subsidiaries and associated companies. The parent company, BEWI ASA, is a Norwegian public limited liability company. BEWI’s history started in 1980 at the island of Frøya, off the west coast of Norway, close to the Norwegian seafood industry. This is where the group’s first fish box facility was established. Since then, BEWI has grown through numerous mergers and acquisitions, to become a pan European business, where insulation and other energy efficient solutions for buildings are the group’s largest product group. Still, a large part of the business comes from packaging solutions for the seafood industry. More about the group’s history is available at BEWI’s website. BEWI’s business is organised in four segments: RAW, Insulation & Construction (I&C), Packaging & Components (P&C) and Circular. In February 2025, the group announced that it will reduce its ownership in RAW to 49 per cent through a merger with Dutch Unipol, and thus this part of the business is reported as discontinued operations. 1010Our business Our business 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 How we create value BEWI’s circular and integrated value chain covers the full life cycle of its materials. The group produces raw materials in its RAW segment. This material is processed/ converted into packaging, components, and insulation solutions in the I&C and P&C segments. Used material is then collected and recycled in the Circular segment. This fully integrated value chain enhances resource efficiency, minimises waste, and ensures long-term value creation for customers and stakeholders. • Styrene • Packaging • Transport • GHG emissions from raw materials • Working conditions in value chain • Styrene • Water • Gas • GHG emissions from energy • Solid waste • Potential spills of microplastics • Fiber • EPS/ rEPS/ EPP • Water • Gas • Health & safety • Training & development • Diversity, equality and inclusion • EPS • Electricity • Food and protective packaging • Technical components • Insulation solutions • EPS/rEPS raw materials • Reduced GHG emissions through energy efficient solutions • Reduced GHG emissions through collection and recycling Upstream/ supply chain BEWI’s operation Downstream/ customers 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 How we create value We do business in a nancially, environmentally and socially responsible manner, and we do it the Resources • ~3 200 knowledgeable and innovative employees • BEWI culture and values • Patents, trademarks and brands • 64 production facilities • • Equity • Sustainability linked bond and bank facilities Shareholders • Long-term value creation Customers • Energy e cient insulation solutions • Sustainable packaging • Circular loops • Stable, trusted and high-quality supplier • Safe and engaging working conditions Society and nature • Taxes • Jobs • Leading the change towards a circular economy Key raw materials • • EPS/ reEPS • GPPS/ reGPPS • Fiber/ reFiber • PLA • Chemicals By-products • • • Solid and Key energy sources • • Natural gas • Biobased energy sources Key products and solutions • Raw materials • Insulation solutions • Packaging solutions • Technical components We employ BEWI employs various resources to create value and deliver on our mission We procure, produce and collect BEWI produces raw materials and a range of solutions improving resource e ciency. We ensure to collect materials, bringing it back for reuse and recycling. We create BEWI provides innovative and sustainable solutions, creating value for society and stakeholders 2 Contents | This is BEWI Our business Governance Board of directors’ report Performance Financial statements ESG statements Remuneration report Appendix 2 Contents | This is BEWI Our business Governance Board of directors’ report Performance Financial statements ESG statements Remuneration report Appendix | How we create value | How we create value BEWI RAW BEWI I&C and P&C BEWI Circular Key activities Key inputs and outputs Key impacts Procurement Raw material production 1 Conversion Collection and recycling Sales & marketing 1 Reported as discontinued operations 1111Our business | How we create valueOur business | How we create value 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Diversified across regions Broad European foothold with strong local presence BEWI is exposed to a range of industries and geographies and has a broad coverage with a strong local presence. Proximity to customers results in less transport, enabling reduced cost and carbon footprint. The group is headquartered at Hamarvik at the island Frøya, Norway. As per 31 December 2024, the group had a total of 62 production facilities in 13 countries: 13 in Norway, eight in Sweden, six in Finland, seven in Denmark, one in Czech Republic, two in Lithuania, three in Poland, three in Germany, three in Belgium, seven in the Netherlands, three in Spain, three in Portugal, and three in the UK. In addition, the group has minority interests in six facilities in Germany, five in France, and one in Poland. Facilities 3x Upstream facilities 54x Downstream facilities 5x Circular facilities 12x Facilities owned through minority interests 1212Our business | Our presenceOur business | Our presence 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Markets and customers BEWI has sales to more than 35 countries and a range of different end markets. In 2024, 60 per cent of the group’s sales were to the building and construction industry, including sales from the RAW and I&C segments, as well as sales of components to heating, ventilation, and air-conditioning (HVAC) systems. Food packaging accounted for 16 per cent of the sales, the automotive industry eight per cent and other packaging and components 16 per cent. The past two to three years, the activity in the build- ing and construction industry has been declining, ending in a significant downturn for the industry, and consequently lower demand and volumes for BEWI’s products and solutions. The downturn has also indirectly impacted BEWI’s sales of industrial products, including protective packaging and sales of components to HVAC systems. In 2024, volumes were down in the first three quarters of the year, while the fourth quarter noted an increase in the volumes for the I&C segment. The business has also showed positive developments into the first quarter of 2025, providing a growing confidence in recovering con- struction markets. Demand for food packaging has remained stable, with quarterly variations of fish box volumes related to slaughter volumes. BEWI’s business model has proven robust to volatile raw material prices and to various challenges facing different industries. 1313Our business | Our presenceOur business | Our presence 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Reported as discontinued operations 54% of net sales 1 39% of net sales 1 7% of net sales 1 49% of total adj. EBITDA 2 58% of total adj. EBITDA 2 -6% of total adj. EBITDA 2 1 Based on total net sales for continuing operations 2 Based on total adj. EBITDA for continuing operations Integrated and circular business model RAW Production and sales of white and grey expanded polystyrene (EPS) raw materials, with virgin and/ or recycled feedstock, general purpose polystyrene (GPPS), and Biofoam, a fully bio-based particle foam. Insulation & Construction (I&C) Development, production and sales of insulation solutions for the building and construction industry and infrastructure projects. Packaging & Components (P&C) Development, production and sales of food and protective packaging, and technical components to the automotive and HVAC industries. Circular Collection and recycling of used EPS, solutions for waste management, trading of used materials, and sales of recycled materials. 1414Our business | Integrated and circular business modelOur business | Integrated and circular business model 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 RAW 3 facilities in 3 countries Market developments In 2024, the activity in the building and construction industry continued to decline impacting volumes for RAW. European producers of the EPS raw material ran at reduced capacity, but competition remained strong, and customers were cautious. Compared to 2023, the official styrene prices increased by 7.2 per cent while the official market price for EPS decreased by 1.5 per cent in 2024, resulting in a lower gross margin (referred to as “GAP”). Operational developments In 2024, BEWI ramped up a new production line (extruder) for EPS at the raw material facility in Etten- Leur in the Netherlands. The new line increases the capacity by 25 000 tonnes grey or white EPS and facilitates increased use of recycled material. This enabled BEWI to introduce grey EPS with up to 40 per cent recycled feedstock for use in insulation solutions, and Circulum Balance, which is EPS based on recy- cled feedstock suitable for food contact packaging. BEWI’s raw material production facilities are certified through the REDcert+ scheme, a scheme for the chemical industry enabling allocation of recycled material into selected products based on customer preferences. Through this scheme, BEWI can increase its sales - and use of recycled material, on behalf of virgin fossil based material, and thereby reduce greenhouse gas (GHG) emissions. In 2024, RAW’s facilities in Porvoo, Finland, and Wismar, Germany was certified under the Operation Clean Sweep® (OCS) program, placing BEWI among the first EPS producers in Europe to achieve this recognition. OCS is a global initiative helping companies prevent plastic pellets from entering the environment. BEWI’s investments in operational expertise and circular capabilities enable a broad product offering, including virgin and recycled materials, providing the segment with a competitive advantage when meeting growing demands for circular solutions. Financial developments For the full year of 2024, net sales for RAW was EUR 310.2 million, down from EUR 338.1 million, repre- senting a decrease of 8.3 per cent compared to 2023 explained by lower volumes. The segment had an adjusted EBITDA of EUR 15.0 million, compared to EUR 24.1 million for 2023. The EBITDA was negatively impacted by lower volumes and GAP, partly compen- sated by strict cost control resulting in lower fixed cost. Invested in circular capabilities Reported as discontinued operations RAW produces white and grey EPS, GPPS, and Biofoam, a fully bio-based particle foam. The raw material is produced at three facilities in Finland, the Netherlands, and Germany, with a total capacity of approximately 280 000 tonnes. The material is sold to customers all over Europe, including BEWI’s downstream units. Approximately 70 per cent of the volumes are sold to the building and construction industry and the remaining to packaging. In February 2025, BEWI entered an agreement to merge RAW with the Dutch company Unipol. The combined company will have four production facilities and a production capacity of 375 000 tonnes. Following the merger, which is expected to be completed in the first half of 2025, BEWI will own 49 per cent of the combined company, explaining why RAW is reported as discontinued operations. 1515Our business | Integrated and circular business modelOur business | Integrated and circular business model 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Insulation & Construction (I&C) 28 facilities in 11 countries Market developments Overall, the activity in the building and construction industry were lower in 2024 than in 2023, resulting in lower volumes sold for I&C. I&C experiences seasonal variations related to weather and holidays. The second quarter is normally the strongest quarter in terms of volumes, followed by the third quarter, while the fourth and first quarter are considered low season. In 2024, volumes were higher in the third quarter than the second, and in the fourth quarter, the segment recorded increased volumes compared to the corresponding quarter the previous year for the first time since the downturn started, representing a gradual uptick in the activity throughout the year. Demand for products based on recycled materials increased, and in 2024 the segment increased its use of recycled feedstock by 77 per cent. Operational developments In 2024, I&C opened a new production line for con- struction boards in Olen, Belgium, strengthening the capacity of this solution, where the majority is sold to renovation projects. Furthermore, a new production line for Siroc foundation systems were opened at the facility in Skövde, Sweden. In September, BEWI introduced construction boards made with recycled GPPS (general purpose polysty- rene) and bio-based lignin, a by-product from the paper industry, offering customers new solutions for reducing their carbon footprint. Financial developments Net sales for the I&C segment amounted to EUR 428.4 million for 2024, a decrease of 6.5 per cent from EUR 458.4 million for 2023. The decrease is explained by lower volumes, partly compensated by higher prices. Adjusted EBITDA ended at EUR 36.5 million, representing a margin of 8.5 per cent, compared to EUR 40.6 million and a margin of 8.9 per cent for 2023. The decrease is explained by lower volumes and change in product mix. In addition, the contribution from shares in associates impacted negatively, going from a negative EUR 0.7 million for 2023 to a negative EUR 1.7 million for 2024. Cost and capacity reductions in the segment combined with strong margin man- agement, partly compensated for this. Excluding the contribution from shares in associates, the EBITDA margin was 8.9 per cent in 2024, up from 8.7 per cent in 2023. Positioned to improve energy-efficiency of buildings Insulation & Construction (I&C) develops and manufactures insulation solutions for the building and construction industry, including foundations, walls, roofs, and ceilings for domestic housing and industrial buildings, as well as infrastructure projects. The solutions are used for both newbuilds and renovation projects and are primarily composed of expanded polystyrene (EPS) and extruded polystyrene (XPS). In addition, the segment offers insulation boards from polyisocyanurate (PIR) and mineral wool (MW) sandwich panels. The segment’s solutions are produced at 28 facilities in 11 countries. In addition, BEWI holds 34 per cent ownership of companies with five facilities in France and six in Germany. 1616Our business | Integrated and circular business modelOur business | Integrated and circular business model 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Packaging & Components (P&C) 36 facilities in 10 countries Market developments The P&C segment offers a wide range of products to different end-markets. In 2024, 41 per cent of the sales (excluding the traded food packaging) related to food packaging, whereas the seafood industry was the largest end-market and EPS fish boxes the largest product. The demand for food packaging was rather stable in 2024, with variations between quarters slaughter volumes. Sales of automotive components accounted for 27 per cent in 2024, while industrial components, including protective packaging and HVAC components made up the remaining 32 per cent. Sales of automotive com- ponents was also relatively stable in 2024, while sales of HVAC components were slightly down compared to 2023, due to the slowdown in the building and construction industry. This is expected to gradually improve in line with increases in the newbuild and refurbishment markets, and on the back of regulations requiring a more energy-efficient building sector. Operational developments In 2024, BEWI launched a new range of EPS fish boxes based on recycled EPS. The boxes provide BEWI with a competitive advantage as they enable customers to reduce their carbon footprint and avoid plastic taxes in countries where applicable. BEWI is strategically positioning to capture growth from megatrends, including from the growing demand for energy-efficient solutions for buildings and sustainable packaging solutions. Therefore, the group has invested in increased capacity for fibre- based packaging solutions in Denmark, and for HVAC components in Portugal. In June 2024 BEWI initiated a strategic review of its automotive business, and in July the group announced its acquisition of automotive assets from the Philippine Group, strengthening this part of the business. At the close of 2024, the strategic review was still an active process. Financial developments Net sales for P&C amounted to EUR 308.3 million for 2024, a decrease of 4.1 per cent from the EUR 321.6 million reported for 2023, mainly explained by lower volumes of industrial products, partly compensated by increased sales from automotive components. Sales from fish boxes was stable compared to 2023. Adjusted EBITDA came in at EUR 43.4 million, down from EUR 45.3 million for 2023. The EBITDA margin was stable at 14.1 per cent, as a result of cost reduc- tions and a successful margin management strategy. Protecting food and fine goods The traded food packaging business is reported as discontinued operations Packaging & Components (P&C) develops and manufactures standard and customised packaging solutions, including boxes for transportation of fresh fish, and protective packaging for pharmaceuticals and electronics. Further, the segment delivers technical components to many industries, such as automotive components and components to heating, ventilation, and air- condition (HVAC) systems. The end-products are composed primarily of EPS, expanded polypropylene (EPP), and paper/ fibre. The segment’s solutions are produced at 36 facilities in ten countries. In October 2024, BEWI entered an agreement to merge its traded food packaging busi- ness with the Danish packaging company STOK Emballage and reduce its ownership in the combined company to a minority share. This part of the P&C business is therefore reported as discontinued operations for 2024. 1717Our business | Integrated and circular business modelOur business | Integrated and circular business model 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Circular 5 facilities in 5 countries Market developments Circular’s key strategic priority is to secure waste streams, i.e. increase the collected volumes of EPS for recycling. This market is fragmented and immature and the availability of used EPS feedstock was chal- lenging in 2024. The demand for recycled material is currently impacted by the low activity in the building and construction industry to which most volumes are sold. However, packaging customers are increasingly showing interest in products based on recycled material, both on the back of more stringent regulations, as well as the availability of solutions meeting the requirements for food packaging. Prices for recycled material correlate to some extent to the virgin raw material price. Circular’s supply chain is longer than for the other segments, and therefore the segment is more sensitive to volatile raw material prices. Operational developments In May 2024, BEWI opened a new circular hub in Norrköping, Sweden, increasing the company’s production capacity of rGPPS by 40 per to approxi- mately 35 000 tonnes. The new facility has a strategic location close to highways, securing efficient trans- portation to – and from BEWI’s downstream facilities, as well as other customers in the Nordics. In 2024, Circular sold 17 078 tonnes of rGPPS, an increase of 36 per cent compared to 2023. RGPPS is mainly used in the production of XPS-based products or as feed- stock in EPS raw material. For the full year of 2024, BEWI collected 33 135 tonnes of EPS for recycling, an increase of 23 per cent from 2023. The group had an ambitious target to collect 45 000 tonnes in 2024, which was set as the sustainability performance target (SPT) in the group’s sustainability linked bond loan. Although the target was not met, the group has demonstrated significant progress in its collection and use of recycled content. BEWI remains dedicated to continuing this progress towards its target of 60 000 tonnes and considers the access to recycled material a competitive advantage for the group. Financial developments For 2024, Circular had net sales of EUR 52.5 million. This was a decrease of 9.0 per cent from the EUR 57.7 million reported for 2023, mainly driven by lower prices. Adjusted EBITDA ended at a negative EUR 4.9 million for the year, down from a negative EUR 3.2 for the previous year. Lower prices combined with added cost related to a strengthening of the organisation had negative impact on the earnings. Transitioning to a circular economy Circular is responsible for BEWI’s collection and recycling of used material. The segment produces recycled general purpose polystyrene (rGPPS), which is used as raw material in the production of XPS based solutions and new EPS raw materials. In addition, the segment offers different solutions within waste management and trading of used materials. Circular operates five facilities in five countries, of which three of the facilities produce rGPPS with a combined capacity of approximately 35 000 tonnes. In addition, BEWI owns 34 per cent of a recycling facility in Poland and operates collection stations in several countries. 1818Our business | Integrated and circular business modelOur business | Integrated and circular business model 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Our strategy Megatrends impacting our business BEWI offers protective packaging for food and other consumables, technical components to a range of industries, as well as insulation and other energy-efficient solutions for buildings. Driven by the Net Zero Emissions by 2050 scenario, these areas are experiencing strong attention from authorities and society in general, resulting in regulatory changes and change in consumer preferences. BEWI welcomes these changes and is well positioned to leverage on the opportunities arising. These are the most important megatrends shaping our industries and strategy: 1919Our business | Our strategyOur business | Our strategy 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Climate change Climate change is profoundly impacting economies and societies. Global temperature is rising, leading to more frequent and severe weather events. Industries must adapt to physical impacts of climate change, shifting consumer preferences and new regulations. Governments worldwide are implementing policies to reduce carbon emissions. Climate change is also driving innovation and business opportunities to mitigate and adapt the impacts. Circular economy A more circular economy is emerging, reshaping how businesses and societies think about resource management to reduce negative impact on the planet. Minimising waste and making the most of resources are at core of this megatrend. A more robust infrastructure is needed, and products need to be designed differently. Rethinking how we produce, consume and dispose goods is reinforced by both policy and regulation, as well as social and cultural shifts. Protectionism Protectionism involves policymaking that restricts imports to protect domestic industries, influencing global trade, also raising concerns about trade frag- mentation and reduces global growth. It is driven by the need for economic security, stability and resource control. Trade wars, increased cost for consumers and disruptions of supply chains are challenges often linked to this megatrend. National or regional inter- ests are fuelling the protectionist policies, increasing geopolitical tensions. Demography Some regions in the world experience rapid growth, Europe is relatively stable, but with an ageing pop- ulation. This trend is expected to continue, posing challenges both to healthcare and the labor market. Urbanisation requires better infrastructure, more housing and services to accommodate growing urban population. Population dynamics are also changing with migration both internally in EU and from outside Europe. Household sizes are decreasing also impacting housing demands. Other megatrends also impacting Covid19 has shown that pandemics pose significant challenges to society, changing behaviour and lifestyles. The risk of pandemics emphasises the need for adaptability and resilient business models. War in Europe and increased conflict levels in the middle East are impacting economies, supply chains and inflicting immense human suffering. Global instability poses a risk for less focus on energy transition and sustainable development, and increased protectionism and migration. AI and digitalisation have significant impact on many industries, resulting in changing value chains and manufacturing processes in industries like healthcare, education, finance, and transportation. Across these trends and meg- atrends, political initiatives and regulations are targeting to reinforce or mitigate the expected developments. 2020Our business | Our strategyOur business | Our strategy 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Impacts, risks and opportunities deriving from the macro picture In the current strategic landscape, climate change, resource scarcity and demography are influencing politics, and reshaping industries. BEWI is embracing these trends, and has identified opportunities for growth and areas to enhance environmental and social stewardship. BEWI’s double materiality assessment highlights the group’s environmental and social impacts alongside the risks and opportunities it faces. This dual perspec- tive provides invaluable input to BEWI’s strategy and business model, ensuring alignment with long-term strategic goals. BEWI plays a pivotal role in providing energy-efficient solutions critical to the EU’s climate reduction targets. Rising urban populations are driving the demand for residential buildings, transportation and social infrastructure. Buildings as a major contributor to global emissions are at the heart of EU initiatives and regulations pushing for higher energy efficiency. BEWI anticipates significant growth for energy efficient building materials to comply with evolving regulations, creating a strong market opportunity. The production of these solutions relies on raw materials and energy sources that contribute to greenhouse gas (GHG) emissions. Stricter regulations related to emissions could lead to increased taxes and/or higher costs, introducing a risk, but also an opportunity, as it is expected to increase demand for BEWI’s solutions. The group’s strategic priority to work for a circular economy, including the leading position in collection and recycling of used EPS, as well as the work to increase use of renewable and recycled materials in the operations, mitigate this risk. BEWI has made significant investments in circular capabilities, securing a considerable capacity to collect, recycle, and extrude used EPS. Going forward, anticipated regulatory changes, such as required levels of recycled content in packaging products, reuse models and closed-loop systems, are expected to boost demand and profitability of the group’s circular activities. Early indications of this shift are visible in markets like Spain and the UK, where plastic taxes are driving interest in low-carbon and circular solutions. BEWI’s operations also affect people which are reflected in the impacts on own employees and workers in the supply chain. BEWI emphasises cre- ating a safe and inclusive working environment for people working across the company’s value chain. BEWI is well-positioned to navigate market disrup- tions through its integrated value chain that ensures material availability while reducing reliance on volatile markets. Its circular economy initiatives secure a stable supply of recycled materials, mitigating risks from trade restrictions and price fluctuations. By embedding circularity into its core strategy, BEWI enhances agility, strengthens resilience, and rein- forces its leadership in a rapidly evolving market. 2121Our business | Our strategyOur business | Our strategy 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Strategic priorities BEWI’s strategy is anchored in our competitive advantages: our people and culture, market and industry expertise, production footprint, business model, customer relationships, and circular capabilities. Our strategic priorities build on the most material risks and opportunities emerging from the megatrends, and can be summarised in two: Sustain operational excellence and leverage on current offering and investments People and leadership development: Increase focus on devel- oping leadership behaviours and employee engagement, and actively work for inclusion and diversity. Efficient and safe operations: Optimise energy efficiency, production processes and footprint, while continuously striving to secure a safe and healthy work environment. Leverage on producing assets and offering: Maximise output from producing assets and offering, positioning for market rebound, increase cross-selling, leverage on offering based on recycled feedstock, and capitalise on recent investments in paper-based products, HVAC solutions, and recycled material. Actively decarbonise operations and assets: Pursuit reduced carbon footprint by increasing use of renewable energy sources and recycled feedstock in operations. Accelerate growth from energy efficient solutions for buildings and circular packaging Expand offering and strengthen market positions: Evaluate strategic partnerships and transactions, targeting a broader offering and stronger market positions within insulation and other energy-efficient solutions for buildings. Ambition to become a full-solutions provider, enabling increased share of renovation projects and non-residential buildings. Strengthen offering of circular packaging solutions: Increase share of recycled and reusable products, through innovation and close collaboration with customers and other industry partners. Continue to invest in circular capabilities: Secure access to feedstock for recycling and recycling capacity, and actively work for improved infrastructure and framework. The strategy rests on three pillars guiding our actions: Innovation is the cornerstone of future growth, driving us to search for solutions today that remain relevant tomorrow. It reflects our commitment to continuous improvement across all areas of our business. Transitioning to a circular economy is essential for reducing greenhouse gas emissions and plays a vital role in the fight against climate change. At BEWI, this means using less materials in production, extending product lifespans, and increasing recycling efforts to enhance resource efficiency and minimise environmental impact. Profitable growth is about our ability to adapt to and develop markets, secure operational excellence, leverage on investments, and make good strategic decisions for our stakeholders. This is supported by megatrends, innovative solutions and a robust business model. 1 2 2222Our business | Our strategyOur business | Our strategy 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024 Performance 2323Performance Performance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Baseline 2023 Progress 2024 Target 2030 Financial Continued operations ROCE 5% 3% 20% Adjusted EBITDA margin 10% 9% 15% Taxonomy aligned revenues 49% 1 52% > 70% Environmental E1: Climate change Reduce GHG emissions scope 1 & 2 0 -24% -42% Reduce GHG emissions scope 3 0 -14% -52% Improve energy efficiency 0 -1% -12% E5: Resource use and circular economy Collection of used EPS for recycling 27kt 33kt 60kt Share of recycled and/or non-fossil raw materials 13% 15% 30% Social S1: Own workforce Health and safety - reduce frequency rate 2 2.81 2.25 1 Health and safety - reduce severity rate 3 58.1 24.24 <13 Learning and development - increase internal index 4 62% 6 6 % 5 80% Diversity, equaliy and inclusion - increase share of female leaders 21% 19% 30% 1 Taxonomy-eligible revenues 2 Frequency rate is defined as number of reported accidents 200 000/ total working hours 3 Severity rate is defined as recordable sick leave days due to workplace accidents 200 000/ total working hours 4 Percentage of employees who rate the company’s learning and development environment as “good” or “very good” in the annual employee engagement survey 5 Index not fully comparable due to additional questions Key performance measures BEWI has a set of performance measures designed to track and secure progress on selected topics. The group’s key performance measures guide the efforts in enacting the strategy. 2424Performance | Key performance measuresPerformance | Key performance measures 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Financial performance In 2024, the activity in the building and construction industry declined, impacting volumes and sales for all BEWI’s segments. Still, the group managed to retain margins as a result of active measures on cost, capacity and margins. KPI’s related to the group’s income statement are for continuing operations, i.e. excluding RAW and the traded packaging business classified as held for sale and reported as discontinued operations. Other KPI’s are for the total operations. The KPI’s are marked with (1) for continued operations and (2) for total operations. Net sales (1) for the group amounted to EUR 773.2 million for 2024, a decrease of 5.8 per cent from the EUR 821.2 million reported for 2023. The decrease is explained by lower activity in the building and con- struction industry, impacting volumes for all segments. Adjusted EBITDA (1) came in at EUR 71.2 million for the year, compared to EUR 78.1 million for the previ- ous year, corresponding to a decrease of 8.8 per cent, also explained by the lower volumes. Adjusted EBITDA margin (1) for the group was 9.3 per cent for 2024, down only 0.2 percentage points from 2023, despite the reduced volumes. Higher volumes and consequently utilisation, are key factors to secure cost-efficient operations and higher EBITDA margins. Throughout 2023 and 2024, the group has implemented measures to reduce its cost base, and actively worked with its pricing strategy, resulting in retained margins in falling markets. Operating income (EBIT) (1) ended at EUR 8.5 million for, down from EUR 10.2 million for 2023. Taxonomy aligned revenues (1) was 52 per cent of the group’s total revenues, up from 49 per cent taxonomy eligible revenues for 2023. Details on the taxonomy alignment are included in the Environment part of the sustainability statements of this report. Return on capital employed (ROCE) (2) for the full year of 2024 came in at 3.3 per cent, down from 5.4 per cent for 2023. The ROCE has declined the past two years and is currently below the target of 20 per cent. This is a consequence of the large acquisitions completed in 2022, resulting in an increase of the balance sheet, combined with the downturn in the market experienced since then. Financial position (2) Total assets amounted to EUR 1 182.0 million on 31 December 2024, with an equity of EUR 384.6 million, compared to assets of EUR 1 253.4 million and an equity of EUR 415.7 million at the end of 2023. Net debt was reduced during the year, ending at EUR 511.0 million (264.0 excluding IFRS 16), compared to EUR 547.6 million at the end of 2023 (331.1 excluding IFRS 16). Cash and cash equivalents were EUR 72.7 million at year-end, including assets classified as held for sale, compared to EUR 63.6 million at year- end 2023. 9% adj. EBITDA margin 52% Taxonomy aligned revenues 2525Performance | Financial performancePerformance | Financial performance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Cash flow (2) from BEWI’s operating activities was EUR 85.2 million for 2024, including a decrease in working capital of EUR 52.4 million, compared to a cash flow of EUR 76.5 million with a decrease of EUR 18.0 million for 2023. The improved cash flow came from a strengthened focus on inventory manage- ment and financing of accounts receivables, through a receivable purchase agreement (RPA), adding EUR 54.7 million. The RPA was established in September and is an uncommitted facility with a frame of EUR 75 million. In 2023, the cash flow had a positive effect of EUR 15.0 million from settlement of currency swaps. Cash flow from investing activities amounted to a positive EUR 5.5 million for 2024, coming from sale and leaseback transactions of properties, resulting in a cash inflow of EUR 39.8 million, net of transfer tax. For 2023, the cash flow ended at a negative EUR 3.1 million, with similar sale and leaseback transactions recorded that year. Cash flow from financing activities amounted to a negative EUR 81.5 million for 2024, down from a negative EUR 56.7 for 2023, due to reduced utilisation of credit facilities, as well as repay- ment of leasing liabilities. Capital expenditures (CAPEX) (2) amounted to EUR 32.5 million for 2024, a reduction of 37 per cent from the EUR 51.7 million reported for 2023. Of this, EUR 10.9 million related to strategic investments made by the listed automotive company Izoblok. BEWI announced a CAPEX target of approximately EUR 20 million for 2024. Excluding the investments by Izoblok, CAPEX came in at EUR 21.6 million. The group will continue to keep its CAPEX at a low level also for 2025. Going concern The annual financial statements for 2024 have been prepared on the assumption that BEWI is a going concern pursuant to section 3-3a of the Norwegian Accounting Act. With reference to the group’s results and financial position, as well as forecasts for the years ahead, the conditions required for continuation as a going concern are hereby confirmed to exist. Dividend BEWI’s objective is to generate competitive long-term total shareholder return. The dividend policy states that the company should target yearly dividend payments of approximately 30 to 50 per cent of the group’s net income for the year. For the financial year of 2024, the board has not proposed any dividend. Outlook BEWI entered 2025 with a growing confidence in a market recovery for the building and construction industry. A market recovery, combined with the drivers for improved energy efficiency for buildings, is expected to positively impact the group’s sales and increase the taxonomy aligned revenues. In addition, the group is operating on a lower cost base than before the downturn, which is expected to lift margins when volumes increase. Further, recent strategic transactions reduce the financial exposure to RAW and the traded food packaging, business areas with lower margins, shifting focus to higher margin areas going forward. 2626Performance | Financial performancePerformance | Financial performance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Environmental performance In 2024, BEWI made solid progress on its key environmental performance indicators. Enhanced energy efficiency, increased share of renewable energy sources, and a significant increase in collection and use of recycled raw materials were the key drivers for the positive results for the group. KPI’s related to the group’s environmental performance are for the total operations. Reduced emissions In 2024, BEWI achieved a 14 per cent reduction in the total greenhouse gas emissions compared to 2023. Scope 1 and 2 emissions decreased by 24 per cent, primarily driven by lower volumes, enhanced energy efficiency and a 29 per cent increase in the use of renewable energy. Despite the lower production volumes, BEWI managed to achieve a 1 per cent improvement in energy intensity. The progress came from strategic investments in energy management, process optimalisation and operational efficiencies. The group recorded a 14 per cent reduction in its scope 3 emissions from the baseline in 2023. This was driven by operational improvements and a 77 per cent increase in the use of recycled raw materials, reducing the use of virgin resources and advancing circularity. Increased use of recycled and renewable sources As a result, the share of recycled and renewable materials increased from 13 per cent for 2023 to 15 per cent for 2024. Additionally, material recovery efforts expanded. BEWI collected a total of 33 135 tonnes of used EPS for recycling in 2024, a 23 per cent increase from 2023. These achievements underscore BEWI’s commitment to closing the loop, preventing valuable materials from becoming waste, and reinforcing the role as a leader in sustainable material stewardship. Outlook BEWI remains committed to enhancing circularity, reducing emissions, and improving efficiency. Through innovation, collaboration, and sustainable solutions, the group is positioning itself for a low carbon and resource-efficient future. +23% in EPS collected for recycling +77% use of recycled raw material 2727Performance | Environmental performancePerformance | Environmental performance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Social performance BEWI’s long-term goal is to achieve zero workplace accidents. The group has objectives related to reduction of accident frequency and accident severity rates, in which both saw a reduction in 2024. Also, the group improved its performance on its learning and development index. KPI’s related to the group’s social performance are for the total operations. Health and safety improvements BEWI works to reduce accidents and lost time due to accidents, measured by the KPIs frequency rate (FR) and severity rate (SR). For 2024, the group achieved a 20 per cent reduction in the FR and a 58 per cent reduction in the SR. Employee development and engagement Furthermore, BEWI is committed to provide opportu- nities for employees to develop their competencies and skills. The group’s performance on this area is measured through the annual employee engage- ment survey, BE heard, and the dedicated learning and development index in this survey where employ- ees rate the company’s learning and development environment as “good” or “very good”. For 2024, the learning and development index improved from 62 to 66. BEWI has a strategic priority to further develop leadership behaviours and employee engagement. Gender, diversity and leadership The gender mix among BEWI’s leaders declined in 2024, with 19 per cent female leaders compared to 21 per cent in 2023. In the BE heard survey, BEWI could see a positive development of the engagement among women which increased from 62 in 2023 to 66 in 2024, compared to a slight decline from 62 in 2023 to 61 in 2024 for the men. The positive develop- ment among the female leaders is a good foundation for BEWI’s continued efforts to increase and develop its female leaders. Outlook BEWI has clear priorities for a further strengthening of its KPI’s on its social performance. This includes activities to strengthen the health and safety culture in the company, such as awareness campaigns, and expansion of leadership and development pro- grammes in the group. -20% frequency rate -58% severity rate 2828Performance | Social performancePerformance | Social performance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024 Governance BEWI aims to maintain a high standard of corporate governance. Good corporate governance strengthens the confidence in the company and contributes to long-term value creation by determining the division of roles and responsibilities between shareholders, the board of directors and executive management. 2929Governance Governance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 General information and compliance The board of directors (the board) of BEWI ASA (the company) has the overall responsibility to ensure a high standard of corporate governance. BEWI ASA is a Norwegian public limited liability company listed on the Euronext Oslo Børs (Oslo Stock Exchange). The group’s corporate governance prin- ciples are based on the Norwegian Code of Practice (the Code) for Corporate Governance issued by the Norwegian Corporate Governance Board (NCGB). BEWI follows the latest version of the Code, adopted on 14 October 2021. BEWI is subject to section 2-9 of the Norwegian Accounting Act and the Issuers Rules of Euronext Oslo Børs, covered by the Oslo Rulebook II chapter 4.4, requiring the company to provide an annual statement on corporate governance covering all chapters of the Code. The statement is included in the Appendix. BEWI’s governance structure (see chart on the next page) is based on the applicable laws and regulations mentioned, in addition to the group’s governing documents, with delegation of responsibility to divisions, local units, and group functions such as finance, tax and accounting, legal and compliance, human resources, procurement, and sustainability. To maintain coherent practice across the group, BEWI sets requirements in the form of policies and guidelines made available to all relevant employees. An overview of the most relevant policies is available in the Policies and compliance section. BEWI’s strategic direction is described in the Our business section. 3030Governance | General information and complianceGovernance | General information and compliance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 BEWI’s governance structure General meeting Approves BEWI’s Articles of Association; Elects members to and resolves on remuneration to the board; Elects external auditor and approves auditor remuneration; Elects members to and resolves on remuneration for the nomination committee; Approves annual accounts and the report of the board; Approves dividend proposal; Deals with other matters listed in the notice convening the meeting. Board of directors Approves rules of procedures for board and sub-committees; Ensures adherence to governance principles, including approval of policies; Approves strategy, business plans and budgets; Oversees operations, financial- and ESG accounts; Appoints board sub-committees; Reviews and approves annual and quarterly reports. CEO and executive management team The CEO and executive management team are responsible for promoting BEWI’s objectives and securing the company’s assets, organisation and reputation. External auditor PwC is BEWI’s responsible auditor Remuneration committee Prepares and recommends proposal for the compensation of the CEO, and reviews and advises the CEO on the compensation of other members of the executive management team. Audit committee Supports the board in supervision of internal control, internal audit, compliance and system of risk management; Oversees integrity of financial statement, sustainability statement, reporting processes, internal control and risk management; Oversees qualification and independence of external auditor. Nomination committee Recommends members to the board to be elected by shareholders at general meeting; Recommends members of the nomination committee; Recommends remuneration of the board and the nomination committee. The nomination committee’s mandate is approved by the general meeting. 3131Governance | General information and complianceGovernance | General information and compliance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Governing bodies General meetings BEWI’s highest decision-making body is the general meeting of shareholders. All shareholders have the right to participate in the general meetings, and each share gives one vote. The annual general meeting is held each year within the end of June. The general meeting approves the company’s Articles of Association, elects the members of the board of directors and determines the remuneration of the board. It elects the company’s external auditor and approves the auditor’s remuneration. It also approves the integrated annual report, including the annual financial and sustainability statements, the statutory report according to Norwegian requirements, and the dividend proposed by the board. The general meeting elects the nomination committee and determines their remuneration and deals with any other matters listed in the notice convening the meeting. Nomination committee The nomination committee gives recommenda- tions to the general meeting for the election of shareholder elected members to the board and the chairperson of the board, as well as to members of the nomination committee. The nomination commit- tee also presents to the general meeting proposals for remuneration to the board and to the nomination committee. Article 8 of the company’s articles of association stipulates that the company shall have a nomination committee, consisting of two to four members, where the majority of the members shall be independent of the board and management. The members, including the chairperson, are elected by the general meeting for a term of two years unless the general meeting decides otherwise in connec- tion with the election. In 2024, the nomination committee of BEWI con- sisted of Liv Malvik (chair) and Roar Husby until the company’s annual general meeting on 4 June 2024. At the meeting, the following new members of the committee was elected for a period up to the annual general meeting in 2026: André Michaelsen, chair, Rune Juliussen, member, Marianne Bekken, member and Svein Jensen, member. Board of directors The responsibilities and work of the board The board of directors’ (the board) primary respon- sibility is to (i) participate in the development and approval of the company’s strategy, (ii) perform necessary monitoring functions and (iii) act as an advisory body for the executive management team. The board is responsible for the group’s adherence to governance principles, including internal control, audit matters, double materiality assessment, and risk management systems. The board oversees opera- tions and monitors progress on strategic, financial, and non-financial targets. The board prepares an annual plan for its work. The chairperson is responsible for ensuring that the board’s work is performed in an effective and correct manner. The instructions governing the board’s working practices include how individual directors and the CEO shall act in relation to matters in which they have a personal interest. Information is also included in chapter 9 of the Corporate Governance statement included in the Appendix. Important tasks managed by the board The board meets as often as necessary to perform its duties. In 2024, the board had 13 meetings, and all members attended all meetings. Monthly: Monthly management reports are made available to the board. The reports include financial and non-financial metrics, in addition to information/ progress on prioritised projects. Quarterly: The board reviews and approves the group’s quarterly financial reports and reviews the group’s progress on KPI’s related to material topics. Annual: The board annually reviews and approves: (i) procedures for the board, sub-committees of the board and the CEO, (ii) key policies and procedures (May/ June), (iii) the group’s annual report (March/ April), (iv) the annual double materiality assessment (DMA), (v) risk management system and risk assess- ment. The board annually evaluates its work. 3232Governance | Governing bodiesGovernance | Governing bodies 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 The board discusses the company’s adherence to the company’s strategy regularly and has at least one board meeting dedicated to reviewing and evaluat- ing the strategy. Sub-committees of the board The board has established an audit committee and remuneration committee consisting of members appointed by and among the members of the board. The overview below includes memberships of the sub committees. In 2024, both committees consisted of two members, one female and one male. Audit committee Pursuant to the Norwegian Public Limited Liability Companies Act section 6-41 and the listing rules of the Oslo Stock Exchange, covered by the Oslo Rulebook II chapter 3.1 the company shall have an audit committee. The audit committee shall consist of at least two members, whereof at least one member must have accounting or auditing proficiency and at least one member must be independent of the company’s business. BEWI’s audit committee is appointed by the board. The committee’s main task is to assist the board with addressing and preparing issues concerning, amongst other, procurement of audit services, monitoring the work of the auditors, the company’s internal control – and risk management systems, and the financial and non-financial/ sustainability reporting. More information on the group’s internal control is included in chapter 10 of the board’s state- ment on corporate governance in the Appendix. In 2024, in addition to the regular quarterly and annual reporting procedures, the committee had a special focus on monitoring the company’s progress related to reporting on the Corporate Sustainability Reporting Directive (CSRD), Double Materiality Assessment (DMA), and the outcome of the assess- ment of impacts, risks, and opportunities (IROs). The committee had six meetings and both members participated in all meetings in 2024. Remuneration committee The company shall have a remuneration committee appointed by the board. The remuneration commit- tee shall evaluate and propose the compensation of BEWI’s CEO, and review and advise the CEO on the compensation of other members of the executive management team. In 2024, the committee reviewed a proposed amendment to the composition of the performance indicators for the short-term incentive scheme for the management of the company. The variable pay programme is based on five criteria, of which one is an explicit criterion (20 per cent weight) linked to BEWI’s target to collect used EPS for recycling. The committee had five meetings and both members participated in all meetings in 2024. More details are included in the Remuneration report. Composition of the board In 2024, the board consisted of six members, whereof three female and three male members, in line with the requirements of the Norwegian Public Limited Companies Act (NPLCA) section 6-11 a. The members are elected by the general meeting for a period of two years based on proposal from the nomination committee. The general meeting elects the chair of the board. None of the members are elected by and among the company’s employees in Norway, cf. section 6-4 of the NPLCA, as there are less than 30 employees in the parent company, BEWI ASA. All board members can independently evaluate the cases presented to them, and the board functions well as a body of colleagues. The board acts in the interests of all shareholders and independently of any special interests. 50 per cent of the members are independent of the owners, 67 per cent are inde- pendent of executive management, and all members are considered independent of material business contacts. An overview of the education, background and independency is included in the table below and on the company’s website. Competency of the board The board annually reviews the required competen- cies for its composition. In 2024, the sustainability competence was further detailed to bring it in line with the EU Corporate Sustainability Reporting Directive (CSRD). In addition to the competences on sustainability-related matters held by the board members, the board (through the audit committee among others) have at least quarterly meetings with sustainability experts in the company, such as the Chief Sustainability Officer, to discuss and review the company’s material impacts, risks and opportunities (IROs). Relevant experience topic Summary of competencies Industry experience  Strategic planning  Operative management  Business leadership  Governance & compliance  Financing and capital markets  Risk management  IT and cybersecurity  HR/remuneration  Environment and climate  The summary of competency includes the number of board members with practiced competence within the relevant competence area, i.e. where the board member considers the area as a primary skillset. 3333Governance | Governing bodiesGovernance | Governing bodies 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Board of directors Gunnar Syvertsen Kristina Schauman Andreas M. Akselsen Position Chair of the board Director Director Born 1954 1965 1977 Nationality Norwegian Swedish Norwegian Elected 2014 2016 2022 Education M.Sc. Engineering, Norwegian University of Science and Technology (NTNU). M.Sc. Business Administration, Stockholm School of Economics. M. Sc. Business Administration, BI Norwegian School of Management, Bachelor of Sc. Mechanical engineering. Professional background CEO Heidelberg Cement Northern Europe AB, Managing Director Heidelberg Cement Norway AS, Managing Director Norcem AS, and other executive positions in Heidelberg Cement AG in Africa and the US. Currently CEO and founder of Calea AB. Previously CFO of OMX AB, Carnegie Investment Bank and Apoteket AB. Senior positions at Investor AB, ABB, and Stora Enso. Various positions in Jackon Holding from 2004, including M&A, strategy and business development, and financing. Assignments within real estate, early phase investment and restructuring projects. Other selected directorships Directorships in portfolio companies of BEWI Invest, the majority owner of BEWI ASA. Board member of AFRY AB, Sdiptech AB, Ahlstrom Oyi, Eleda Group AB, DanAds International AB, Vionlabs AB and REEDA Capital Management AB. Board member of HAAS, Pronofa ASA, Ayfie International AS, Bricks Beverages AS, Godthåb Holding AS and Eily AS. Audit committe   Remuneration committee  Board meetings 2024/ attendance 13 of 13 13 of 13 13 of 13 Independence of owners  Independence of executive management   Indepence of material business contacts    Shares per 31.12.24 180 506 193 452 32 679 000 1 1 32 670000 of the shares are held through the investment company HAAS AS, owned by the Akselsen family 3434Governance | Governing bodiesGovernance | Governing bodies 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Anne-Lise Aukner Rik Dobbelaere Pernille Skarstein Position Director Director Director Born 1956 1954 1964 Nationality Norwegian Belgian Norwegian Elected 2020 2021 2023 Education Law degree from the University of Oslo. M.Sc. Engineering and MBA from Catholic University in Leuven, Belgium. MA in Economics and business administration, Norwegian School of Economics (NHH) Professional background Managing director and CEO of Nexans Norway and CEO of Nexans Sweden. Experience from management of technology and knowl- edge-based companies and management of industrial companies. CEO of BEWI ASA from 2018 to 2020, and CEO of Synbra Holding B.V. prior to the merger with BEWI. Senior positions in global industry companies, including Bombardier, and Raychem Corporation. Currently investment director of Kverva AS. Broad experience from the financial markets and extensive background as Head of Investments at Alfred Berg Asset Management, Carnegie Asset Management and C WorldWide Asset Management. Other selected directorships Chairman of the board in Fontenehuset Mortensrud, board member of Fontenehuset Ullensaker, and board member of Aukner Holding AS. Board member of selected subsidiaries of the BEWI group. Audit committe Remuneration committee  Board meetings 2024/ attendance 13 of 13 13 of 13 13 of 13 Independence of owners   Independence of executive management   Indepence of material business contacts    Shares per 31.12.24 - 98 497 16 946 573 1 1 The shares are owned by Kverva Industries AS, a company owned by Kverva AS, which is a related party to Pernille. Kverva held 16 946 573 BEWI shares at 31 December 2024. In addition, Kverva AS is a party to total return swap agreement with a third party under which Kverva AS has a financial exposure to 9 092 220 shares 3535Governance | Governing bodiesGovernance | Governing bodies 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 CEO and executive management team The board appoints the Chief Executive Officer (CEO) and the CEO is responsible for the executive management of the company. The executive management team has a shared responsibility for promoting BEWI’s objectives and securing the company’s assets, organisation and reputation, and undertakes the day-to-day management of the group. The team prepares monthly updates to the board, including financial and non-financial metrics, and status on selected projects. Following changes in BEWI’s organisational structure, BEWI’s executive management team was changed as of 1 November 2024. From 1 January to 31 October, the team consisted of four female and three male leaders, and from 1 November the compo- sition included two female and four male leaders. Information on the composition of the executive management team is included in the table below, as well as in the Remuneration report. Christian Bekken Marie Danielsson Position Chief Executive Officer (CEO) Chief Financial Officer (CFO) Born 1982 1975 Nationality Norwegian Swedish Employed 2002 2015 Education Financial and administrative programmes M.Sc. Economics, Stockholm University, Sweden. Professional background and relevant directorships Various positions within production and sales at BEWI, CEO Smart Bolig. Majority shareholder of BEWI Invest, majority shareholder of BEWI ASA Auditor KPMG, Vice President Financial Control and Taxes, Haldex AB. Director of the board at BenchmarkHoldings plc, listed at AIM in London and Euronext Growth in Oslo. Shares per 31.12.24 84 986 1 185 452 Options per 31.12.24 283 333 333 333 1 Christian Bekken is member of the Bekken family, the majority owner of BEWI Invest, which is the majority owner of BEWI ASA. As of 31 December, BEWI Invest held 97 958 328 shares 3636Governance | Governing bodiesGovernance | Governing bodies 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Jonas Siljeskär Petra Brantmark Karl Erik Olesen Stein Inge Liasjø Position Chief Operations Officer Upstream Chief Legal Officer (CLO) Chief Operations Officer Downstream Chief Strategy Officer Born 1972 1981 1963 1973 Nationality Swedish Swedish Danish Norwegian Employed 2010 2020 2014 2021 Education Degree in Engineering, Dalarna University, Sweden. Master of Law, Uppsala University Sweden. Business economics and management Cand. mag in finance and communications from Universities of Trondheim and Oslo Professional background and relevant directorships Managing Director BEWI RAW, Chief Operating Officer Gustafs Inredningar. Senior Legal Counsel at Swedfund International AB and Associate at Linklaters Law Firm. Head of sales SCA and DS Smith. Previous roles in BEWI includes Manging director of BEWI Denmark and EVP BEWI Insulation & Construction. Various leadership roles in Aker Solutions ASA and Enova SF. Previous roles in BEWI includes EVP Packaging & Components. Shares per 31.12.24 124 126 17 450 83 252 1 000 Options per 31.12.24 283 333 174 785 183 333 133 333 3737Governance | Governing bodiesGovernance | Governing bodies 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Compensation of board and executive management Board remuneration The general meeting determines the remuneration for the members of the board based on a proposal from the nomination committee. The remuneration shall not be performance-related nor include share option elements. The general meeting of 2023 approved the board’s remuneration until the general meeting in 2024, while the general meeting of 2024 approved the remuneration until the general meeting of 2025. The board shall be informed if individual board members perform tasks for the company other than exercising their role as board members. Work in sub committees is compensated in addition to the remu- neration received for board membership. As of 31 December 2024, two of the board members had agreements to perform advisory work for the company in addition to their assignment as board members, of which one of the agreements expires at the general meeting of 2025. Details about the board remuneration are outlined in the Remuneration report. Statement on remuneration of executive management The board prepares a statement on executive remu- neration in accordance with section 6-16a of the NPLCA. General remarks The remuneration is an important instrument for har- monising the company’s interests with the interests of the executive management. The remuneration guidelines shall be approved by the general meeting and are available at the company’s website as part of the annual reports. The purpose of the company’s remuneration policy for the executive management is to contribute to the company’s business strategy, long-term interests, and sustainability of the company. Further, BEWI’s remuneration policy shall encourage a strong and sustainable performance-based culture, growth, shareholder value over time and responsible business practices aligned with the company’s values. The total remuneration level shall be in line with the relevant market level for peers within the industry but not market leading. Annual base salary The executives are compensated based on individual criteria, including each executive’s role, experience, and competence. All executives are evaluated yearly as part of the company’s Performance and Development Dialogue (PDD). The total compen- sation level targets at attracting and retaining executives, and to maintain a competitive compensa- tion level. BEWI applies standard employment contracts and standard terms and conditions regarding notice period and severance pay, which shall be deductible to other income. Internal board assignments and similar internal positions are not remunerated separately. External assignments shall be approved by the CEO or by the board. Pension scheme Executives are members of the standard pension and insurance schemes on the same terms and conditions as non-executives in the country of employment. Executives are not entitled to early retirement. Pay after termination of employment The Chief Executive Officer and the Chief Operating Officer upstream are entitled to 12- and 6-months’ severance pay respectively. Other executives are not entitled to pay after termination of employment. Other types of remuneration Executives may receive benefits in line with relevant market practice, such as free phone, PC, broadband, newspapers, company car, and parking. 3838Governance | Compensation of board and executive managementGovernance | Compensation of board and executive management 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Variable pay BEWI has a variable incentive pay programme includ- ing the executive management team, as well as other key executives. The objective of the programme is to encourage achievement of financial- and operational targets. The variable pay programme is based on defined and measurable criteria, including financial and non-financial targets. The variable pay pro- gramme potential is maximised to 50 per cent of the annual base salary. Share option plan for executive employees BEWI has two share option programmes for the executive management and key employees. The first programme was adopted by the board on 19 November 2020, with vesting in 2021, 2022, and 2023. The programme expires in November 2025. The second programme was launched on 15 November 2024, with a similar setup, whereby participants are invited on an annual basis. The purpose of the share option plans is to further align the interests of the company and its share- holders. The awards of options shall give an interest in the company parallel to that of the shareholders, enhancing the interests of the executives to the com- pany’s continued long-term success and progress and motivate for individual contributions. The share option shall enable the company to attract and retain the executive employees and other key employees. Further details about the programme are included in the Remuneration report. Annual remuneration report BEWI publishes an annual remuneration report in accordance with NPLCA Section 6-16b. The report shall be subject to an advisory vote by the general meeting in accordance with NPLCA Section 5-6 (4). If the shareholders vote against the remuneration report, the company will explain, in the following remuneration report, how the vote of the sharehold- ers has been taken into account. The remuneration report for 2024, part of BEWI’s annual report, includes details about the variable pay programme and the long-term incentive programme. In addition, the notes to the financial statements includes an overview of the remuneration to the executive management. Temporary derogation from the applicable remuneration policy The board can only derogate from the remuneration policy in exceptional circumstances, and only in situations where the derogation is necessary to serve the long-term interests and sustainability of the company, cfr. NPLCA section 16-6a (4). Any derogation shall be explained and motivated by the company’s and the shareholders’ interests in retaining the executives under extraordinary circum- stances. Any derogation shall be considered by the boards as required in the specific situation and for the individual employee. The remuneration report shall include information on remuneration awarded under such exceptional circumstances. Amendments Material variations in the remuneration policy shall be subject to approval by BEWI’s general meeting, and the policy shall be considered and approved by the general meeting at least every fourth year. 3939Governance | Compensation of board and executive managementGovernance | Compensation of board and executive management 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Policies and compliance BEWI’s management system is based on a set of steering documents and policies. The system, which is aligned with the group’s strategy, outlines the principles for how BEWI shall operate. The Code of Conduct, adopted by the board, pro- vides a framework for how BEWI and its employees are expected to act and behave. It lays out key principles for high ethical standards based on the UN Global Compact’s 10 principles for human rights, employee rights and social matters, the external environment and anti-corruption efforts. BEWI’s Code of Conduct applies to all employees in all group companies. In addition, the group has established a separate Code of Conduct for suppliers. The group has established separate policies on anti-corruption, gifts and events, compliance with competition law, sanctions, and privacy, and has a set of whistleblowing guidelines and a whistle-blowing channel provided by an external partner to ensure anonymity. The policies are partly internal and partly publicly available from the group’s website. All policies are available to the employees. Some policies form the basis for mandatory trainings and some policies are distributed to key employees annually, whereby they are required to confirm that they have read and understood the relevant policies. The policies are reviewed and approved annually, either by the board or by the executive management, to ensure alignment with the group’s strategy, the latest double materiality assessment, and industries’ best practice. Family home in Vara, Sweden EPS foundation solution and Thermomur ICF building system 4040Governance | Policies and complianceGovernance | Policies and compliance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Scope Policies Topics addressed Management systems How BEWI monitors Upstream/ supply chain Own operations Downstream/ customers Code of Conduct • Business ethics • Human and labour rights • Environment • Supported by a set of policies, of which the most relevant are listed below • Whistleblowing channel • Monthly and annual reporting    Environmental policy • Climate change • Emissions • Waste • Circular economy • Biodiversity and ecosystems • GHG protocol • Carbon reduction plan (SBTi) • TCFD & TNFD • ISO 14001 & Operation Clean Sweep • RecyClass & RedCert • Annual DMA reviews • Monthly, annual reporting • Internal and external audits  Human resource policy • Equality, diversity & inclusion • Health and safety • Recruitment and onboarding • Develop and retain • Employee engagement • Compensation • Employee data privacy protection • Group health & safety committee • Talent review process • BE heard process (employee survey) • Human right due diligence • Monthly and annual reporting • External and internal audits  Supplier Code of Conduct • Business ethics • Environment • Human and labor rights • BEWI Partner - supplier assessment • Human right due diligence • Monthly and annual reporting • External and internal audits  Anti-corruption policy • Bribery/corruption • Facilitation payments • Nepotism and cronyism • Political contributions • Money laundering • Financing of terrorism • Extortion • Fraud • Online trainings • Gift and event policy • World check • BEWI Partner • Ad hoc external integrity checks • Authorisation matrix • Monthly and annual reporting • Whistleblowing channel  Sanction policy • Compliance with sanction laws • World check   Privacy policy • Privacy (GDPR) • General Data Privacy Regulation • Online trainings • Monthly and annual reporting • Whistleblowing channel    4141Governance | Policies and complianceGovernance | Policies and compliance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Risks and risk management At BEWI, risk management is an integral part of the daily operations, and business opportunities are seen in the context of both risks and opportunities. Operating in diverse and competitive markets, BEWI has incorporated recent macroeconomic, regulatory developments and material sustainability IRO’s into the group’s risk management process. Risk governance and reporting structure The board is responsible for ensuring that BEWI main- tains effective internal controls and risk management systems. The audit committee supports the board’s supervisory role, and the executive management is responsible for the group’s risk management frame- work. On behalf of the executive management, BEWI’s Group Risk Manager oversees the group’s risk management framework and is responsible for the group’s risk processes. BEWI assesses risks and opportunities across all material activities within its operations and value chain. The results from the Double Materiality Assessment are aligned with the group’s Enterprise Risk Management (ERM). The DMA, ERM, and the group’s top 10 risks are reviewed by the board annually and inform the group’s strategic priorities. In addition, specific risk topics are subject to more frequent updates. Consolidated risks are monitored and discussed with the executive management semi-annually. Risk process Risk assessments shall be completed semi-annually in divisions and group functions to identify risks, evaluate probability and impact, and the effective- ness of risk response, to ensure appropriate actions to mitigate unwanted risks. Divisions and group functions are responsible for their respective risks and identified actions. Monitoring and follow ups shall help ensure that identified risks are prioritised and managed within the given mandates. Major risks are managed according to the group’s risk appetite and consolidated at group level through the annual process, while mitigating actions progress on an ongoing basis. Risk factors, impacts and risk responses An overview of BEWI’s top ten risks, including the impact on BEWI, and mitigating actions, is included below, categorised in operational, strategic, external, financial, and climate risks. Despite BEWI’s best efforts, the risk-mitigating initia- tives may fail or prove to be inadequate to mitigate all risks. As risks increase, decrease or change, and new risks emerge over time, the information con- tained in this section should be carefully considered by investors. BEWI defines risks as exposures that, if materialised, will negatively impact the group’s ability to reach strategic goals within a defined period. Risks are a natural part of business operations and can be managed and controlled to realise strategic plans, meet business objectives and ensure compliance with laws, regulations and industry best practice. 4242Governance | Risks and risk managementGovernance | Risks and risk management 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 The risks described below are considered the most important risks relevant for the BEWI group, comprising BEWI ASA, subsidiaries and associated companies. Operational risks Risk Risk description Impact on BEWI Mitigation actions Cyber security breaches Unauthorised access to, or use of, BEWI’s business or control systems could lead to interruption in operations Hinder production and logistics all over the value chain Implementation of group security and continuous improvements of information security practices at all levels Increased competition New volumes entering the market from low-cost countries. More extrusion capacity and new technologies for recycling being made available Loss of market shares Cost and capacity adjustments, ensure effective logistics and strong focus on R&D and innovations IT systems interruption In the event of a group-wide incident from any cause, combined with BEWI’s reliance on a large number of suppliers/vendors, this could lead to significant loss of efficiency and business interruption Halt in production and logistic chain hinder BEWI from delivering to customers Mapping of the current PLC's used, creating renewal/ update plans, secure the sufficient resources and knowhow and also design and implement a group-wide guideline for IT systems Strategic risks Risk Risk description Impact on BEWI Mitigation actions Macroeconomic developments The inability to adapt to inflation, high interest rates, reduced market demand, including slowdown in the building and construction industry Delayed projects, loss of sales, lower margins, and lower EBITDA. Difficulties to plan long-term leads to the company being less agile High level risk management including monitoring of raw material prices, inventories, market development, strict cost control. The group’s diverse end-markets, business portfolio and geographical footprint will help limit impacts for BEWI 4343Governance | Risks and risk managementGovernance | Risks and risk management 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 External risks Risk Risk description Impact on BEWI Mitigation actions Geopolitical conflicts Conflicts threatening our supply, customer demand, costs and reputation/image Loss of business opportunities and closed markets could affect BEWI’s business development and EBITDA Close monitoring in order to be ahead of potential threats and continuously adjusting the business to the actual situation Access to energy and critical raw materials Lack of critical raw materials or utilities. Business consolidations affects the supply to BEWI Raw material prices will have a direct impact on BEWI’s EBITDA. As highly dependent on energy, limitations in energy supply and/ or high energy costs, could hinder investments in new production lines/ processes Alternative suppliers and multi-sourcing. Vertical integration in own value chain Financial risks Risk Risk description Impact on BEWI Mitigation actions Availability of competitive financing Market changes resulting in lack of investors’ appetite to invest in BEWI Lack of financing that hinders growth opportunities in accordance with the set strategy Cash-flow forecasting and building long-term relationship with banks and capital markets, diversifying financing sources and managing debt maturity profile Climate risks Risk Risk description Impact on BEWI Mitigation actions Changes in climate related regulatory frameworks Tightening regulations on GHG emissions and requirements for recycled content Impact costs and supply chain stability Increased collection and recycling of used EPS, activities to improve energy efficiency and increase share of renewable energy sources and recycled feedstock. Price increases related to increased taxes Negative reputation, concerns related to BEWI’s climate impact Damage caused by spillage or leakage that negatively impact nature, animals, and/or human health Negative reputation and unwanted costs associated with sanitation and cleanup Regular monitoring of potential risks, cooperations with authorities and implementation of Operation Clean Sweep at all sites Change in market demand and customer requirements Limitations or market price of waste streams may hinder BEWI from delivering recycled materials in a sustainable way Inability to supply recycled materials and fulfill the strategic commitment to increasing the share of recycled content Focus on securing waste streams and renewable styrene supplies to meet future demands 4444Governance | Risks and risk managementGovernance | Risks and risk management 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Auditor BEWI’s auditor is PwC. The auditor is appointed by the annual general meeting and is independent of the company. The board annually receives a written confirmation from the auditor that the requirements with respect to independence and objectivity are met. The auditor draws up an annual plan each year for the execution of their auditing activities, including financial and sustainability audits. The plan is shared with the board and the audit committee. The board considers if the auditor to a satisfactory degree also carries out a control function. The auditor meets with the audit committee quarterly and has at least an annual review of the company’s internal control activities. The auditor meets with the board without the CEO or any other member of the executive management team present at least once a year. Whenever neces- sary, the board shall meet with the auditor to review the auditor’s view on the company’s accounting principles, risk areas, internal control routines, etc. The auditor may only be used as an advisor to the company if such use does not affect or question the auditors’ independence and objectiveness as auditor. The audit committee shall approve any agreements in respect of such counselling assignments in accord- ance with BEWI’s internal policies. The board presents a review of the auditor’s compen- sation as paid for auditory work required by law and remuneration associated with other specific assign- ments to the annual general meeting. Innseilingen residence Fredrikstad, Norway XPS perimeter insulation 4545Governance | AuditorGovernance | Auditor 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Sustainability statements General information 47 Environment 61 Social 92 Governance 105 Signatures from the board and CEO 109 Index of the board of directors’ report 110 Sustainability auditor’s limited assurance report 112 4646Sustainability statements Sustainability statements 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 General information Basis for preparation 48 ESRS disclosure requirements 50 Double materiality assessment 53 Interest and views of stakeholders 57 Statement of sustainability due diligence 58 ESRS data points from other EU legislation 59 4747Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Basis for preparation The sustainability statements present BEWI’s governance and performance related to material sustainability matters, with a purpose of providing stakeholders with a fair and balanced picture of rel- evant sustainability impacts, risks and opportunities, the management of these, and the results for 2024. The sustainability statements have been prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD), and the European Sustainability Reporting Standard (ESRS). The state- ments cover the period 1 January to 31 December 2024 and have been prepared on a consolidated basis and align with the financial statements. The statements include BEWI’s double materiality assessment (DMA), which includes impacts, risks and opportunities across the group’s operations as well as its upstream and downstream value chains. The minimum disclosure requirements regarding policies, actions, targets, and metrics are described in the sections addressing the relevant topical standards. No information corresponding to intellectual prop- erty, know-how or the results of innovation has been omitted from the sustainability statements. Reporting scope and disclosures in relation to specific circumstances Critical or material events occurring on or after 1 January 2025 and up until the publication date are covered in the statements. Acquired operations during the reporting year are included for the full year, as well as in historical data, unless stated other- wise. Data from discontinued or closed operations are included for the portion of the reporting period during which they were operational, unless otherwise noted. Minority-owned operations are excluded from the consolidated metrics unless explicitly specified. In October 2024, BEWI entered into an agreement to merge its food trading business with STOK Emballage while retaining a minority ownership. In February 2025, BEWI announced the merger of BEWI RAW with the Dutch company Unipol, maintaining a 49 per cent ownership stake. For the 2024 reporting year, both businesses are included in the sustainability statements with disaggregated information provided in the relevant notes. The classification of BEWI RAW as a discontinued operation will impact BEWI’s mate- riality assessment for 2025, particularly as substances of concern are directly linked to the operations of BEWI RAW’s three raw material sites. Sources of estimation and outcome uncertainty The basis for calculation and presentation of sus- tainability metrics is descripted in the notes to the respective metrics. These notes include information on measurement uncertainty, the source of the metrics, and whether they are based on estimations, third-party data, sector averages or year-to-date estimates. For metrics derived from year-to-date estimates, deviations between estimated and actual values are corrected and included in the following year’s reporting. BEWI continuously refines its esti- mation processes by utilising historical data, which enhances the quality and accuracy of reported information over time. Baseline values are provided in the notes for each respective metric. If not specified, the baseline value is 2024. None of the statements use forward-looking infor- mation. However, the double materiality assessment uses forward-looking information, such as forecasts, projections and estimates, to evaluate potential medium and long-term impacts, risks, and opportu- nities (IROs). Changes in the preparation and prior reporting errors BEWI’s sustainability statements have been restruc- tured based on CSRD and ESRS, and include the following changes: • Sustainability presented in a dedicated section and structured in accordance with ESRS requirements • The double materiality assessment was updated in 2024 to align with the ESRS guidelines • Disclosure requirements are based on the outcome of the double materiality assessment • The structure of each material topic has been revised to meet ESRS requirements • The sustainability statements have undergone limited assurance No material errors in prior periods have been identi- fied, but minor corrections have been made and are described in the note to the respective metrics. 4848Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Disclosures stemming from other legislations or other sustainability standards The sustainability statements include disclosures under the Norwegian Transparency Act, and the EU Taxonomy. Furthermore, it serves as BEWI’s Communication on Progress (COP) to the UN Global Compact. Incorporation by reference to other sections of the annual report The following information is incorporated by refer- ence to other parts of the annual report: • The description of BEWI’s strategy, business model, and value chain, and the integration of sustainabil- ity matters (SBM-1 and SMB-3) is presented in the Our business section. • The description of BEWI’s governing bodies (GOV-1) and their work to address sustainability matters (GOV-2) is included in the Governance section. • The integration of sustainability in performance incentive schemes (GOV-3) is described the Governance section and the Remuneration report. Risk management and internal controls Being transparent about BEWI’s sustainability performance is key for building trust with stake- holders. BEWI strives to provide assurance about the timeliness and reliability of the group’s reporting in accordance with applicable laws and regulations, and to ensure compliance with any prevailing legislation. Metrics for sustainability data are collected using BEWI’s sustainability reporting system. Some metrics related to own employees are collected through the ERP system. Data regarding suppliers are based on BEWI’s due diligence processes and information collected from BEWI’s supplier engagement platform called BEWI Partner. Data related to business conduct are collected from the group’s e-learning platform BEWI Learn and the whistle-blower channel. BEWI is exposed to risks associated with incomplete or inconsistent reporting. There are also risks related to the accuracy of data inputs and manual errors in the reporting processes from aggregating data from multiple systems into the corporate reporting system. To minimise reporting errors, BEWI has implemented the following mitigation processes: • Clear and structured reporting governance • Accounting policies and guidelines • Dedicated reporting system that provides trans- parency and traceability of data reported • Regular meetings to ensure effective communi- cation regarding internal controls and to discuss changes or improvements in the reporting process Internal controls are performed to ensure the com- pleteness and accuracy of data through monthly and annualy reviews conducted by the business seg- ments and the Group Sustainability Controller. These are further overseen by the audit committee on a quarterly and annual basis. Key performance indica- tors (KPIs) are reviewed by executive management and the board on a quarterly and annual basis. The sustainability statements have been approved by the board. BEWI’s auditor PwC has performed a limited assur- ance of the sustainability statements. See auditors limited assurance statement for more information. 4949Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 ESRS disclosure requirements The following tables list the ESRS disclosure requirements in ESRS 2 and the six topical standards which are material to BEWI. General disclosures ESRS 2 General disclosures Page BP-1 General basis for preparation of the sustainability statement p. 48-49 BP-2 Disclosures in relation to specific circumstances p. 48 GOV-1 The role of the administrative, management and supervisory bodies p. 31-33 GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies p. 32-33 GOV-3 Integration of sustainability-related performance in incentive schemes p. 178-182, 188-189 GOV-4 Statement on sustainability due diligence p. 58 GOV-5 Risk management and internal controls over sustainability reporting p. 49 SBM-1 Strategy, business model and value chain p. 9-22 SBM-2 Interests and views of stakeholders p. 57 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model p. 21, 53-55 IRO-1 Description of the process to identify and assess material impacts, risks and opportunities p. 56 IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement p. 50-52 Environmental disclosures ESRS E1 Climate change Page E1. GOV-3 Integration of sustainability-related performance in incentive schemes p. 178-182, 188-189 E1-1 Transition plan for climate change mitigation p. 62, 66 E1. SBM-3 Material impacts, risks and opportunities, and their interaction with strategy and business model p. 55, 62 E1. IRO -1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities p. 63-64 E1-2 Policies related to climate change mitigation and adaptation p. 40-41, 62 E1-3 Actions and resources in relation to climate change policies p. 63-65 E-4 Targets related to climate change mitigation and adaptation p. 62, 66 E1-5 Energy consumption and mix p. 67-69 E1-6 Gross Scopes 1, 2, 3 and total GHG emissions p. 70-74 5050Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 ESRS E2 Pollution Page E2. IRO-1 Description of the processes to identify and assess material pollution-related IROs p. 75 E2-1 Policies related to pollution p. 40-41, 75 E2-2 Actions and resources related to pollution p. 75-76 E2-3 Targets related to pollution p. 76 E2-4 Pollution of air, water and soil p. 77-78 E2-5 Substances of concern p. 78 ESRS E3 Water and marine resources Page E3. IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities p. 56 ESRS E4 Biodiversity and ecosystems Page E4. IRO-1 Description of processes to identify and assess material biodiversity and ecosystem-related impacts, risks, dependencies and opportunities p. 56 ESRS E5 Resouce use and circular economy Page E5. IRO -1 Description of the processes to identify and assess material resouce use and circular economy-related impacts, risks and opportunities p. 79 E5-1 Policies related to resouce use and circular economy p. 40-41, 79 E5-2 Action and resources related to resouce use and circular economy p. 79-80 E5-3 Targets related to resouce use and circular economy p. 80 E5-4 Resouce inflows p. 81 E5-5 Resouce outflows p. 82-83 Social disclosures ESRS S1 Own workforce Page S1. SBM-2 Interests and views of stakeholders p. 57 S1. SBM-3 Material impacts, risks and opportunities and their interaction with strategy and buiness model p. 55, 93, 95 S1-1 Policies related to own workforce p. 40-41, 93, 95 S1-2 Processes for engaging with own workers and workers representatives about impacts p. 93-95 S1-3 Process to remediate negative impacts and channels for own workers to raise concerns p. 95 S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material IROs related to own workforce, and effectiveness of those actions p. 93-95 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities p. 93-95 S1-6 Characteristics of the undertakings employees p. 96 S1-9 Diversity metrics p. 97 S1-13 Traning and skills development metrics p. 93-94 S1-14 Health and safety metrics p. 97 S1-16 Remuneration metrics (pay gap and total remuneration) p. 97, 178-190 S1-17 Incidents, complaints and severe human rights impacts p. 98 5151Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 ESRS S2 Workers in the value chain Page S2. SBM-2 Interests and views of stakeholders p. 57 S2. SBM-3 Material impacts, risk and opportunities and their interaction with strategy and business model p. 55, 99 S2-1 Policies related to value chain workers p. 40-41, 99 S2-2 Processes for engaging with value chain workers about impacts p. 100-101 S2-3 Processes to remediate negative impacts and channels for value chain workers to raise concerns p. 101 S2-4 Taking action on material impacts on value chain workers, and approaches to managing IROs related to value chain workers, and effectiveness of those actions p. 102 S2-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities p. 102-103 Governance disclosures ESRS G1 Business conduct Page G1. GOV - 1 The role of administrative, supervisory and management bodies p. 106 G1. IRO -1 Description of the processes to identify and assess material impacts, risks and opportunities p. 106 G1-1 Policies in place to manage its material IROs related to business conduct and corporate culture p. 107 Værste residence and commercial district Fredrikstad, Norway XPS perimeter and roof insulation 5252Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Double materiality assessment BEWI has identified impacts on the environment, society and governance as well as the sustainability related risks and opportunities that BEWI is exposed to. The outcome is aggregated per ESRS matter, showing that E1, E2, E5, S1, S2 and G1 are BEWI’s most material sustainability matters. For the EU to reach its climate reduction targets, there is a need to improve energy-efficiency of buildings. BEWI’s offering of insulation and other energy-efficient solutions can contribute to this and is identified as a financial opportunity (E1). Delivering these solutions involves consumption of raw materials and energy sources that contributes to greenhouse gas emissions (GHG). This is identified as a risk due to anticipated increase in carbon taxes (E1). The risk is adressed through the group’s circular strategy (E5) which focuses on enhancing resource efficiency and circularity to reduce emissions, present- ing both a positive impact and an opportunity. As a producer of raw materials, BEWI’s operations carry an inherent potential of impacting the environment related to substance of concern and microplastic pollution (E2). BEWI’s activities also affect people which is reflected in the impacts the group has within its own workforce (S1) and workers in the supply chain (S2). Maintaining a positive corporate culture is important for BEWI to fulfil its vision to protecting people and goods for a better everyday (G1). A description of BEWI’s impacts, risks, and opportuni- ties (IROs) is available on pages 54-55. Description of methodology, process for stakeholder engagement, and the identification and assessment of material IROs are included on pages 56-57. Topic-specific processes to identify material IROs are described in the respective chapters: E1: Climate change (62-65), E2: Pollution (75-76), E5: Resource use and circular economy (79-80), S1: Own workforce (93-95), S2: Workers in the value chain (99-102) and G1: Business conduct (106-107 and 40-41). The IROs related to the non-material topics E3 and E4, are described on pages 56, 62-65 and 75-76. Risk and opportunity Impact Low High Low High E1: Climate change S2: Workers in the value chain E2: Pollution E5: Resource use and circular economy S1: Own workforce G1: Business conduct E4: Biodiversity and ecosystems S3: Affected communities S4: Consumers and end-users E3: Water and marine resources 5353Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Value chain overview A total of 16 impacts, risk and opportunities (IROs) have been assessed as material, including 3 positive impacts and 13 negative impacts. Of these, 3 having double materiality. The table shows material impacts, risks and opportunities identified across BEWI’s value chain. ESRS reference Sustainability matter Description of material topics Materiality Location in value chain Time horizon Impact Risk Opportunity Upstream/ supply chain Own operations Downstream/ customers Short- term Medium- term Long- term E1: Climate change Climate mitigation GHG emissions from key raw materials: BEWI’s operations rely on fossil-based raw materials that contribute to greenhouse gas emissions. The group has an inherent transition risk in the medium to long term, particularly if carbon taxes increase and the company is unable to pass these costs on to customers.       Energy consumption Energy consumption: BEWI’s activities use energy to produce steam to mold products. A large share of the consumed energy is fossil-based and generates GHG emissions that have an actual, negative impact on the environment.     Enabling energy reduction: BEWI has a significant positive impact and a financial opportunity on climate change mitigation through its production of energy efficient solutions enabling the building sector to decarbonise and align with the 1.5-degree target of Paris agreement.       E2: Pollution Substance of concern Use of substance of concern: As a chemical manufacturing operation BEWI RAW is using raw materials that contain volatile organic compounds (VOC) and are listed as substances of concern. These substances can potentially contribute to the formation of ground-level ozone if released to the atmosphere and have a negative impact on air quality if not managed correctly.     Microplastics Spills of microplastics: As a plastic manufacturer, there is an inherent risk of potential pollution of plastic pellets to the environment from BEWI’s production facilities and in downstream value chain if products are not handled properly.      Pollution to air and water Pollution to air and water: Raw materials produced by the RAW division contain volatile organic compounds (VOC). These substances can contribute to ground level ozone if released to the atmosphere and water and have a negative impact if not managed correctly.     E5: Resource use and circular economy Resource inflows, including resource use Use of fossil-based raw materials: BEWI is using styrene and other plastic raw materials that are fossil-based and have a actual negative impact on extraction of a non-renewable resources.     5454Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 ESRS reference Sustainability matter Description of material topics Materiality Location in value chain Time horizon Impact Risk Opportunity Upstream/ supply chain Own operations Downstream/ customers Short- term Medium- term Long- term E5: Resource use and circular economy Waste Waste generation in own production: BEWI’s operations generate solid waste. Depending on the waste types and final treatment facilities, this waste could impact the environment through various channels, such as landfill use, emissions from incin- eration, or contamination from improper disposal.     Collection of waste for reuse and recycling: BEWI collects waste materials for reuse and recycling, making a positive impact on the industry’s transition to a circular economy. This also presents a financial opportunity, positioning BEWI as a leader in providing circular and low-carbon solutions to the market.        S1: Own workers Working conditions own workers Health and safety of own workers: BEWI’s operations involve manufacturing and have an inherent health and safety risks of incidents on employees that could occur during operation of heavy equipment and exposure to chemicals.     Equal treatment and opportunities for all Career progression through training and development: BEWI offers training and development programs that have a positive impact on employee career progression, fostering both personal and organisational growth.     Diversity, equality and inclusion: If Diversity, Equity, and Inclusion (DEI) initiatives are poorly implemented, they can lead to workplace tension, decreased morale, and perceived unfairness. A lack of DEI can result in missed talent opportunities, reduced innovation, reputational damage, and potential legal risks related to discrimination or bias.     Workplace harassment: Workplace harassment can lead to increased turnover, legal liabilities, and reputational damage. It can also, negatively impact productivity, mental health, and overall workplace culture.     S2: Workers in the value chain Working conditions in the value chain Working conditions in the value chain: The scale of operations involves risks related to working conditions throughout the value chain, which could potentially lead to adverse impacts on workers in the value chain.      G1: Business conduct Corporate culture Corporate culture: A strong corporate culture and ethical conduct are vital as it impacts BEWIs reputation, operational integrity, stakeholder relationships, and strate- gic goals. In today’s regulatory environment, where scrutiny of environmental impact, labor practices, and supply chain transparency is increasing, a robust culture and ethical standards help mitigate risks such as fines, litigation, and regulatory challenges.     Protection of whistle-blowers Protection of whistle-blowers: BEWI has a direct impact on the whistleblower through its treatment of whistleblowers. Raising concerns about business conduct could pose a significant burden on the whistleblower.     5555Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Methodology and process The double materiality assessment (DMA) has been conducted in accordance with ESRS and the EFRAG IG 1: Materiality assessment implementation guidance as amended following the Corporate Sustainability Reporting Directive. BEWI’s DMA is based on the following processes: • Identification of impacts, risks, and opportunities • Assessment and scoring • Calibration • Validation and management review Identification of impacts, risks, and opportunities To identify impacts, BEWI has assessed its activities, business relationships, stakeholders’ views, and the context in which these take place. Internal experts have been actively involved in the process to provide valuable insights and ensure that day-to-day operations are appropriately considered. A long-list of impacts has been developed and structured to align with sustainability matters defined in ESRS 1 to ensure completeness 1 . The long-list of risks and opportunities is based on the result from the impact assessment and supplemented with existing risk assessment such as enterprise risk, climate risks (TCFD), nature risks (TNFD) and salient human rights assessments. The long-list of IRO and its descriptions has been reviewed and assured with the involvement of internal experts, the executive management, and the management team of BEWI’s four business segments with the purpose to assess, validate and ensure completeness of the topics identified. Assessment and scoring Impact materiality: Scale, scope, and irremediable character have been used in the scoring of the severity of actual impacts. For potential impacts, an additional parameter of likelihood was included. The severity is determined on the basis on scale (how grave the impact is), scope (how widespread the impact is, and irremediable character (the extent to which the impact can be remediated). The threshold for human rights was lowered based on ESRS 1 (45) requirements. Financial materiality: when scoring risks and oppor- tunities, the potential magnitude of financial effect (EBITDA, CAPEX, OPEX) constituted 50 per cent of the score, while the remaining half was based on the likelihood of occurrence. Scoring parameters: • Magnitude of financial effects: minor, low, moderate, or high • Likelihood of occurrence: rare, low, possible, likely, almost certain, and actual • Time horizons: short-, mid-, or long-term. Given the complexity of scenarios, quantitative assessments in monetary terms were supplemented with qualitative evaluations. The materiality threshold was set at high, meaning that risks and opportunities scored as high, are considered material. Calibration A workshop with the executive management and business segments was conducted to do the final assessment and scoring focusing on IRO’s scored as borderline. Throughout this process, the initial evaluations of magnitude and likelihood properties of each IRO were evaluated and documented. Validation and management review Using the inputs gathered during the assessment, a materiality matrix was developed in alignment with the ESRS requirements. A consolidated overview of material IROs was presented and discussed with the executive management before being submitted to the audit committee and the board for review and approval. Material matters are reviewed annually by the execu- tive management and board to guide BEWI’s strategy. These matters are supported by specific targets and key performance indicators to track progress. Sustainability due diligence and risk management are embedded in daily operations through established policies, procedures, and business plans. Progress is monitored monthly within the business segments and reported quarterly to the executive manage- ment and the board. The topical chapters provide descriptions of the due diligence processes for each material topic. Sustainability topics assessed as not material The illustration on page 54 provides an overview of sustainability topics that were scored as non-mate- rial. Topics near the materiality thresholds, such as biodiversity and ecosystems (E4), are monitored and reviewed annually to ensure ongoing relevance and alignment with BEWI’s sustainability strategy. To identify actual and potential impacts on water and marine resources (E3) and biodiversity and ecosystems (E4) within own operations and value chain, BEWI has adopted the TNFD framework and its recommended LEAP approach, providing a struc- tured method to assess the group’s dependencies and impacts on nature. 1 Annex 2 of the delegated act, including sustainability factors defined in Article 2, point (24), of Regulation (EU) 2019/2088 (i.e., SFDR). 5656Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Interest and views of stakeholders BEWI engages with its key stakeholders, both at the corporate and business segment levels to understand their concerns and expectations. These insights inform BEWI’s double materiality assessment and engagement plan to ensure alignment with stake- holder interests and perspectives. The Chief Sustainability Officer is responsible for consolidating this information and ensuring that stakeholder views and interests are reflected in the double materiality assessment. These insights are then communicated to the executive management team and the board to guide strategic decision-making. The table gives an overview of how BEWI engages with key stakeholders, the purpose for those engage- ments and their response. Stakeholders How BEWI engage Purpose of engagement BEWI’s response Owners and capital markets • Quarterly and annual reports • Investor calls and questionnaires • Capital markets day • ESG ratings • Understanding expectations to sustainability • Attracting responsible investors • Enhancing transparency • Responses to investor queries • Informs DMA and strategic priorities • Adapted communication on sustainability Employees • General meetings • Surveys and workplace assessments • Personal development dialogues • Understand employees perceptions and experiences • Creating an inclusive workplace • Facilitate training and development • Creating an safe workplace • Annual policy update • Informs DMA and action plans • Communication from management Customers • Customers support and guidance • Periodic meetings and reviews • Business partner due diligence • Understanding customersneeds and expectations • Ensuring product quality • Support customers to reach their targets • Product improvements • Informs DMA and action plans • Adaption of market strategies Suppliers • Supplier Due Diligence • Workshops and industry collaborations • Supplier meetings • On-site assessments • Compliance with supplier code of conduct • Increase knowledge on IRO in supply chain • Protecting human and labor rights • Ensuring a stable and ethical supply chain • Decarbonising supply chain • Informs DMA and strategic priorities • Informed selection of suppliers • Supplier improvements plans • Streamline supplier expectations • Decarbonisation projects Authorities • Engagement through industry associations • Participation in analysis and studies • Participation in conferences • Ensuring regulatory compliance • Sharing industry best practice • Informs DMA and action plans • Aligning business model and strategy Civil society • Open dialogue and partnerships • Engagement in seminars and activities • Contribution to research projects • Understanding expectations • Enhancing transparency • Sharing knowledge and best practice • Informs DMA and action plans • Aligning business model and strategy The industry • Membership in associations • Workshops and knowledge training • Joint initiatives and programs • Enabling the industry to engage policy makers • Developing industry standards • Working towards climate mitigation and circular economy • Alignment on reporting standards • Alignment on strategic directions • Partnership on strategic priorities 5757Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Statement of sustainability due diligence The following table provides a mapping of how BEWI applies the core elements of due diligence processes and where they are presented in the sustainability statement. Core elements of due diligence Section in the annual report Page a) Embedding due diligence in governance, strategy and business model ESRS 2 GOV-1 p. 31–33 ESRS 2 GOV-2 p. 32 ESRS 2 GOV-3 p. 188 ESRS 2 SBM-3 E1 p. 62 S1 p. 93, 95 S2 p. 99 b) Engaging with affected stakeholders in all steps of the due diligence ESRS 2 SBM-2 p. 57 ESRS S1-2 p. 93-95 ESRS S1-3 p. 95 ESRS S2-2 p. 100-101 ESRS S2-3 p. 101 ESRS 2 MDR-P E1-2 p. 62 E2-1 p. 75 E5-1 p. 79 S1-1 p. 93, 95 S2-1 p. 99 G1-1 p. 107 c) Identifying and assessing adverse impacts ESRS 2 IRO-1 p. 53-56 E1 p. 62, 64 E2 p. 75 E3 p. 56 E4 p. 56 E5 p.79 G1 p. 106 ESRS 2 SBM-3 E1 p. 62 S1 p. 93, 95 S2 p. 99 Core elements of due diligence Section in the annual report Page d) Taking actions to adress those adverse impacts ESRS E-1 p. 62 ESRS 2 MDR-A E1-3 p. 63 E2-2 p. 77-76 E5-2 p. 79-80 S1-4 p. 93-95 S2-4 p. 102 G1-4 e) Tracking the effectiveness of these efforts and communicating ESRS 2 MDR-T E1-4 p. 66 E2-3 p. 76 E5-3 p. 80 S1-5 p. 93-95 S2-5 p. 102 ESRS 2 MDR-M E1-4 p. 66 E2-3 p. 78 E5-3 p. 81-83 S1-9 p. 97 S1-14 p. 97 S1-16 p. 97 S1-17 p. 97 S2-5 p. 103 5858Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 ESRS data points from other EU legislation The table gives an overview of all the datapoints that derive from other EU legislation as listed in ESRS 2 appendix B, including where the data points can be found in the report and which datapoints are assessed as material or not. Disclosure requirement Data- point SFDR referance Pillar 3 ref. Benchmark regulation referance EU Climate Law reference Page GOV-1 21 (d) Board's gender diversity   p. 33 21 (e) Percentage of board members who are independent  p. 33 ESRS 2 GOV-4 30 Statement on due diligence  p. 58 ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel activities    Not relevant 40 (d) ii Involvement in activities related to chemical production   Not relevant 40 (d) iii Involvement in activities related to controversial weapons   Not relevant 40 (d) iv Involvement in activities related to cultivation and production of tabacco  Not relevant ESRS E1-1 14 Transition plan to reach climate neutrality by 2050  Not stated 16 (g) Undertakings excluded from Paris-aligned Benchmarks   Not relevant ESRS E1-4 34 GHG emission reduction targets    p. 62, 66 ESRS E1-5 38 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors)  p. 67 37 Energy consumption and mix  p. 67 40-43 Energy intensity associated with activities in high climate impact sectors  p. 69 ESRS E1-6 44 Gross Scope 1, 2, 3 and total GHG emissions    p. 70-72 53-55 Gross GHG emissions intensity    p. 74 ESRS E1-7 56 GHG removals and carbon credits  Not relevant Disclosure requirement Data- point SFDR referance Pillar 3 ref. Benchmark regulation referance EU Climate Law reference Page ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks  p. 64 66 (a); 66 (c) Disaggregation of monetary amounts by acute and chronic physical risk; Location of significant assets at material physical risk  Not stated 67 (c) Breakdown of the carrying value of its real estate assets by energy-efficiency classes  Not stated 69 Degree of exposure of the portfolio to climate-related opportunities  Not stated ESRS E2-4 28 Amount of each pollutant listed in Annex II of the E-PRTR Regulation emitted to air, water and soil  Not relevant ESRS E3-1 9 Water and marine resources  Not material 13 Dedicated policy  Not material 14 Sustainable oceans and seas  Not material ESRS E3-4 28 (c) Total water recycled and reused  Not material 29 Total water consumption in m 3 per net revenue on own operations  Not material ESRS E4, SMB-3 (ESRS 2) 16 (a) i List of material sites in its own operations (i) specifiying the activities negatively affecting biodiversity sensitive areas.  Not material 16 (b) Whether it has identified material negative impacts with regards to land degradation, desertification or sil sealing  Not material 16 (c) Whether it has operations that affect threatened species  Not material 5959Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Disclosure requirement Data- point SFDR referance Pillar 3 ref. Benchmark regulation referance EU Climate Law reference Page ESRS E4-2 24 (b) Sustainable land/ agriculture practices or policies  Not material 24 (c) Sustainable oceans/seas practices or policies  Not material 24 (d) Policies to address deforestation  Not material ESRS E5 37 (d) Non-recycled waste  p. 82 39 Hazardous waste and radioactive waste  p. 82 ESRS S1, SMB-3 (ESRS 2) 14 (f ) Risk of incidents or forced labour  Not material 14 (g) Risk of incidents or child labour  Not material ESRS S1 -1 20 Human rights policy commitments  p. 95 21 Due Diligence policies on issues adressed by the fundamental Internatinal Labour Organisation Conventions 1 to 8   p. 95 22 Processes and measures for preventing trafficking in human beings  Not material 23 Workplace accident prevention policy or management system  p. 93 ESRS S1 -3 32 (c) Grevance/complaints handling mechanisms  p. 95, 107 ESRS S1 -14 88 (b); (c) Number of fatalities and number and rate of work-related accidents    p. 97 88 (e) Number of days lost to injuries, accidents, fatalities or illness  p. 97 ESRS S1 - 16 97 (a) Unadjusted gender pay gap    p. 97 97 (b) Excessive CEO pay ratio  p. 181-182 ESRS S1 - 17 103 (a) Incidents of discrimination  p. 98 104 (a) Non-respect of UNGPs on Business and Human Rights and OECD    p. 95, 98 ESRS S2, SBM-3 (ESRS 2) 11 (b) Significant risk of child labour or forced labour in the value chain  Not material Disclosure requirement Data- point SFDR referance Pillar 3 ref. Benchmark regulation referance EU Climate Law reference Page ESRS S2 - 1 17 Human rights policy commitments  p. 99 18 Policies related to value chain workers  p. 99 19 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines    p. 99 19 Due diligence policies on issues adressed by the fundamental international Labor Organisation Conventions 1 to 8   p. 100-101 ESRS S2 - 4 36 Human rights issues and incidents connected to its upstream and downstream value  p. 102-103 ESRS S3 - 1 16 Human rights policy commitments  Not material 17 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines    Not material ESRS S3 - 4 36 Human rights issues and incidents connected to its upstream and downstream value  Not material ESRS S4 - 1 16 Policies related to consumers and end-users  Not material 17 Non-respect of UNGPs on Busniess and Human Rights and OECD guidelines    Not material ESRS S4 - 4 35 Human rights issues and incidents connected to its upstream and downstream value  Not material ESRS G1 - 1 §10 (b) United Nations Convention against Corruption p. 106-107 §10 (d) Protection of whistle-blowers  p. 106-107 ESRS G1 - 4 §24 (a) Fines for violation of anti-corruption and anti-bribery laws    Not material §24 (b) Standards of anti-corruption and anti- bribery  Not material 6060Sustainability statements | General informationSustainability statements | General information 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Environment E1 Climate change 62 E2 Pollution 75 E5 Resource use and circular economy 79 EU taxonomy for sustainable activities 84 6161Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 E1 Climate change Material impacts, risks, and opportunities BEWI contributes to climate change mitigation by pro- viding energy-efficient solutions, enabling the building sector to decarbonise. As these solutions contribute to EU’s targets for reducing greenhouse gas emissions, this business area is assessed as a financial opportunity. At the same time, BEWI’s activities rely on energy and raw material inputs that generate greenhouse gas emissions and contribute to climate change. The group’s most material impact arises from the procure- ment of the key raw material, styrene monomer, and the use of natural gas for steam production, which together account for 58 per cent of annual emissions. Increasingly stringent carbon regulations present a risk to the industry by potentially driving up the costs of key raw materials. Both of these material impacts are mitigable, through the use of recycled feedstock, and price increases to customers. Transition plan BEWI does not have a transition plan aligned with the ESRS E1. However, in 2023, the group committed to the Science Based Targets initiative (SBTi) to align with the 1.5-degree scenario outlined in the Paris Agreement. In 2024, the company developed a climate reduction plan with targeted initiatives for each business units to ensure alignment and effective implementation. The group is currently budgeting for the associated cost and anticipates finalising the plan, including decarbonisation levers and financial disclosures, by 2025 for validation and approval by the SBTi. In 2024, BEWI has allocated capital and operational expenditure to address material IROs, with a strong focus on enhancing circular capacity and energy efficiency. The group is working to integrate financial costs associated with climate-related initiatives, a process that will continue into 2025. BEWI’s commitment and science-based targets are approved by the board and integrated in the remu- neration of the executive management and followed up quarterly to ensure progress towards targets. Details on the remuneration scheme are included in the Remuneration report. Policies related to climate change BEWI’s environmental policy details the group’s commitment to climate change. The policy covers own operations and address the management of greenhouse gas emissions and assessment of physical and transition risks. BEWI’s Code of Conduct for suppliers addresses the group’s commitment to climate change in the supply chain and covers commitment to due diligence procedures regarding climate change mitigation and adaptation. The Chief Sustainability Officer oversees climate change mitigation and adaptation efforts and collaborates with business segments to ensure due diligence procedures are established. Local business managers are responsible for implementing policies within their organisations, as leaders of their respec- tive legal entities. The policies are reviewed annually by the Chief Sustainability Officer to ensure alignment with the double materiality assessment and are approved by the executive management or the board. Emission reduction pathway for scope 3 Per cent 0 1 2 3 4 2030 Science-based target 20242023 Baseline Intensity ratio: kg CO2/kg raw materials 2.87 2.64 1.38 -52% Emissions reduction pathway for scope 1 and 2 Per cent 0 50000 100000 150000 200000 2030 Science-based target 202420232021 Baseline Emissions CO2e 182 604 151 337 134 718 105 910 -42% 6262Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Actions and resources related to climate change BEWI identifies and measures impacts on climate change by calculating its greenhouse gas emissions from own operations and its value chain in accord- ance with the Greenhouse Gas Protocol. Decarbonisation in own operation BEWI’s scope 1 and 2 greenhouse gas emissions accounted for 14 per cent of total emissions in 2024. The consumption of energy for steam production accounted for 8 per cent, while scope 2 accounted for 6 per cent. The group has several initiatives to reduce emissions from own operation, of which improved energy-efficiency and transition to renewa- ble energy sources are the two prioritised areas: Energy efficiency Improved energy efficiency is a strategic priority to reduce both costs and greenhouse gas emissions. In 2024, BEWI continued its energy mapping effort, benchmarking performance to identify opportu- nities for energy reduction. Several initiatives were implemented to enhance energy efficiency. BEWI is making targeted investments across its operations to drive these improvements, expecting a reduction in operational costs. Transition to renewable energy sources As per the end of 2024, 84 per cent of the group’s energy consumption came from fossile energy sources. Transitioning to renewable energy sources is a priority to reduce greenhouse gas emissions. BEWI is actively exploring and pursuing opportunities to transition to renewable energy sources across its operation focusing on areas where such sources are available and feasible. Decarbonisation in value chain Scope 3 accounted for 86 per cent of the group’s greenhouse gas emissions in 2024, of which pur- chased goods and services contributed by 63 per cent. Achieving the necessary emission reductions requires collaboration across the value chain, and BEWI has identified and implemented several initia- tives to address this: Engagement with suppliers BEWI actively engages with suppliers who are part of the most carbon intensive segments of the group’s value chain. This collaboration includes the adoption of science-based targets, transparent climate report- ing and collection of supplier specific Environmental Products Declarations (EPDs). These EPDs improve data quality, enable accurate measurement of environmental impacts, and support targeted improvements and progress toward the group’s climate reduction targets. Investments in circular capacity Emissions from procured raw materials account for 63 per cent of BEWI’s Scope 3 emissions. To address this, BEWI has made significant investments in its circular capacity to increase share of recycled raw materials. In 2024, a new circular facility was established in Norrköping, Sweden, increasing the group’s recycling capacity by 40 per cent. A new extrusion line at BEWI’s facility in Etten- Leur, Netherlands, has been ramped up, enabling increased use of recycled materials. As a result, the use of recycled content in downstream production has increased by 77 per cent. The processing of sold products and end-of-life treatment of sold products represent 27 per cent of BEWI’s Scope 3 emissions. To address this, BEWI is leveraging on its circular business segment by col- laborating closely with customers and municipalities to improve sorting and collection, achieving a 23 per cent increase of collected materials in 2024. These partnerships, ensuring that more products are rein- tegrated into the circular economy, reduce emissions by diverting waste from landfills and incineration and foster more circular across the value chain. Engaging in cross-sector collaborations To address waste materials that are unsuitable for mechanical recycling, BEWI collaborates with organisations like Styrenics Circular Solutions and Polystyvert. These partnerships focus on chemical recycling technologies, enabling the transformation of lower-quality waste into valuable raw materials. BEWI’s total GHG emissions Tonnes CO2eq. 0 300000 600000 900000 1200000 1500000 20242023 Scope 1 Scope 2 – Location-based Scope 3 Category 1 – Purchased gods and services 1 341 083 1 162 392 Scope 3 Category 10 – Processing of sold products Scope 3 Category 12 – End-of-life treatment of sold products Scope 3 – Other categories 6363Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Climate related risks and opportunities BEWI has adapted the Task Force on Climate-related Financial Disclosures (TCFD) framework to structure and guide the work with climate-related risks and opportunities. Assessments of climate-related risks and opportunities inform the annual double materi- ality assessment, which informs strategy and business planning to mitigate identified risks. BEWI’s approach consists of two main components: • Physical climate risk assessment to evaluate how cli- mate-related hazards may impact BEWI’s operations • Addressing and managing transition risks and opportunities, including new regulations, techno- logical innovation, changing market dynamics and shifting consumer preferences associated with the shift to a low-carbon economy Physical climate risks To understand and mitigate physical climate risks, a mapping has been conducted in accordance with the TCFD classification of climate-related hazards and the EU Taxonomy’s Climate Delegated Act. The assessment has involved: • assessment of past impacts • assessment of weather patterns and their impact on production facilities • assessment of local climate models The assessment indicates limited exposure to physical climate hazards, identifying storm surges, river flood- ing and cold waves as the highest risks to certain production facilities. BEWI has implemented several mitigating actions and is further assessing potential consequences and measures for production facilities exposed to these climate hazards. BEWI assesses these risks to fall below the materiality threshold. However, the company acknowledges the need for further investigation, especially within its supply chain, and will continue to develop its approach to accurately capture climate risk exposure. Transition risks and opportunities Transition risks and opportunities are assessed based on TCFD and a climate scenario analysis. The analysis used the latest climate projection data, drawing on IEA Stated Policies Scenario (STEPS), the Central Banks and Supervisors Network for Greening the Financial System (NGFS) scenario, and the IPCC SSP5-8.5 sce- nario. The scope of the analysis encompassed BEWI’s own operations and value chain, and modelled three scenarios: • Orderly transition, 1.5-degree with net zero 2050 • Disorderly transition, 2-degree delayed transition 2030 • Worst case scenario, 3-4-degree hot house world in 2080 6464Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 BEWI is strategically positioned to benefit from the global transition toward the 1.5°C climate target, as demand for energy-efficient solutions and circular, low-carbon products continues to grow. This shift presents significant opportunities for BEWI, particu- larly in sectors such as insulation and packaging. The pace of adoption depends heavily on regulatory enforcement and customer willingness to pay for sustainable alternatives. The transition towards a circular economy requires more stringent regulations to support waste collec- tion and recycling infrastructure. Thus, lack of such regulations may hinder BEWI’s ability to achieve its circular commitments. Conversely, stricter regulations and carbon taxes on raw materials could increase the cost of virgin materials. While this pose a risk, BEWI can mitigate this risk through price adjustments and investments in circular capabilities, leveraging its expertise in circular solutions to offset the impact. Maintaining a competitive edge in low-carbon solu- tions requires continuous improvements in energy efficiency and access to renewable energy sources. While some regions offer ample, competitively priced renewable energy, others face limited availability, which could challenge BEWI’s ability to meet its renewable energy commitments. Securing a stable, cost-effective supply of green energy is essential for BEWI to align its emissions reduction efforts with the 1.5°C target. BEWI proactively assesses transition risks and oppor- tunities, ensuring that climate-related factors are embedded in its business planning and strategic decision-making. This enables BEWI to mitigate risks, embrace opportunities, and enhance long-term resilience in a rapidly evolving landscape. Climate-related hazards Cronic Risk Acute Risk Temperature-related Changing temperature (air, freshwater, marine water)  Heat wave  Heat stress  Cold wave/frost  Temperature variability  Wildfire  Permafrost thawing  Wind-related Changing wind patterns  Cyclone, hurricane, typhoon  Storm (including blizzards, dust and sandstorms)  Tornado  Water-related Changing precipitation patterns and types (rain, hail, snow/ice)  Drought  Precipitation or hydrological variability  Heavy precipitation (rain, hail, snow/ice)  Ocean acidification  Flood (coastal, fluvial, pluvial, ground water)  Saline intrusion  Sea level rise  Water stress  Solid mass-related Coastal erosion  Avalanche  Soil degradation  Landslide  Soil erosion  Subsidence  Solifluction  Low Medium  Hazard not relevant to include due to geographical location of assets 6565Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Notes to E1 Climate change Note 1 Greenhouse gas (GHG) emissions reduction targets Reporting principles The emission reduction targets and metrics includes BEWI’s consolidated scope 1, 2 and 3 GHG emissions, encompassing the same companies as those included in the financial statements. BEWI has committed to Science-Based Target initiative (SBTi) to align its GHG emissions reduction goals with the 1.5-degree target set in the Paris agreement. Scope 1 and 2: BEWI is committed to an absolute reduction of 42 per cent by 2030 in scope 1 and 2 (market-based) emissions compared to the 2021 baseline. Scope 1 and 2 account for 12 per cent of total GHG emissions, with scope 1 contributing with 8 per cent and scope 2 with 4 per cent. Scope 3: BEWI is committed to a 52 per cent reduction in scope 3 emissions, measured using a physical intensity metric (total emissions divided by total raw material consumption) with the baseline year set as 2023. BEWI has yet to finalise its decarbonisation levers. The key measures will be established, verified and sent to verification to SBTi during 2025. All scope 1 and scope 2 data are based on primary data. For scope 1, the energy carriers procured for heat production and on-site transportation are reported on in kWh, m 3 , kg, or liter and coupled with CO 2 factors specific for the energy carrier. For scope 2, electricity and externally procured heat are coupled with location-specific CO 2 factors. As such, there are low uncertainty and small error margins for both scope 1 and scope 2. The sources and calculations of scope 3 data is specified by category in note 4. Continued and discontinued operation: The total Scope 1-3 emissions are allocated between continued and discontinued operations. The ownership share of Scope 1 and 2 emissions from discontinued operations is accounted for under Scope 3.15 (Investments) within continued operations, in addition to being included in the Scope 1 and 2 emissions for discontinued operations. In note 4, table 4.4, the specifications for Scope 1, Scope 2, and Scope 3 emissions related to the discontinued operation RAW can be found. GHG emission from internal sales of raw materials from BEWI RAW to other BEWI companies are set to zero at the group level to prevent double counting. With BEWI RAW classified as a discontinued operation, total GHG emissions for continuing operations have been adjusted to include emissions from internally procured raw materials (Category 1). Additionally, Scope 1 and 2 emissions from discontinued operations are now reported under Scope 3, category 14. Emissions from discontinued operations have also been adjusted to account for the processing of sold products for volumes previously sold internally (category 10). Table 1.1 GHG emisson reduction targets Emissions, tonnes CO 2 e Target CO 2 reduction % Intensity ratio, kg CO 2 / kg raw materials Target intensity reduction % 2023 2024 ∆% vs 2023 2030 2023 2024 ∆% vs 2023 2030 Scope 1 97 283 89 444  -8% 42% 0.26 0.25  -4% Scope 2 location-based 76 439 74 790  -2% 42% 0.21 0.21  0% Scope 2 market-based 54 054 45 274  -16% 42% 0.15 0.13  -13% Scope 3 1 167 360 998 159  -14% 2.87 2.64  -8% 52% Total scope 1-3 location-based 1 341 082 1 162 393  -13% 3.34 3.10  -7% Total scope 1-3 market-based 1 318 697 1 132 877  -14% 3.28 3.02  -8% Continued operations Total scope 1-3 market-based 690 308 610 130  -12% 3.79 3.47  -9% Discontinued operations Total scope 1-3 market-based 996 266 902 599  -9% 4.45 4.48  1% BEWI is making progress toward its 2030 science-based targets for greenhouse gas emissions, achieving a total reduction of 14 per cent compared to 2023. For Scope 1 and 2 emissions, the company has achieved a 24 per cent reduction. These reductions are primarily driven by investments in renewable energy, the use of green electricity certificates, enhanced energy efficiency, and lower production volumes. In Scope 3, emissions have been reduced by 14 per cent, largely due to the increased use of recycled raw materials. 6666Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 2 Energy consumption and mix Reporting principles Total energy consumption in BEWI’s consolidated activities is reported by energy source and reported in kWh or converted into kWh. The energy consumption data encompasses energy used for steam production, electricity requirements for buildings, and the energy usage of BEWI-owned vehicles. BEWI’s renewable energy production is exclusively derived from solar panels, while its renewable energy consumption originates from green electricity, steam produced from biomass, and direct biofuel con- sumption. The quality of energy consumption data is high, based on information obtained directly from suppliers. Consequently, the uncertainty and error margins are minimal. BEWI has disclosed calculation errors in the input to the 2023 sustainability statements. These corrections result in an increased share of renewable energy compared to fossil energy sources for previous years. Consequently, the 2023 amounts in category 5 are reduced, while category 9 has increased compared to the 2023 annual report. This adjustment results in the share of renew- able sources in total energy consumption for 2023 increasing from 9 per cent to 12 per cent. Table 2.1 Energy consumption and mix Energy consumption and mix 2023 2024 ∆% vs 2023 1 Fuel consumption from coal and coal products (MWh) 0 0 2 Fuel consumption from crude oil and petroleum products (MWh) 3 318 1 409  -58% 3 Fuel consumption from natural gas (MWh) 502 339 463 446  -8% 4 Fuel consumption from other fossil sources (MWh) 0 0 5 Consumption of purchased or acquired electricity, heat, steam, and cooling from fossil sources (MWh) 146 089 127 242  -13% 6 Total fossil energy consumption (MWh) 651 746 592 097  -9% Share of fossil sources in total energy consumption (%) 88% 84%  -4% 7 Consumption from nuclear sources (MWh) 0 0 Share of consumption from nuclear sources in total energy consumption (%) 0% 0% 8 Fuel consumption from renewable sources, including biomass (also com- prising industrial and municipal waste of biologic origin, biogas, renewable hydrogen, etc.) (MWh) 43 227 41 261  -5% 9 Consumption of purchased or acquired electricity, heat, steam, and cooling from renewable sources (MWh) 46 441 68 801  48% 10 The consumption of self-generated non-fuel renewable energy (MWh) 1 874 2 139  14% 11 Total renewable energy consumption (MWh) 91 542 112 201  23% Share of renewable sources in total energy consumption (%) 12% 16%  29% Total energy consumption (MWh) 743 288 704 298  -5% Continued operations Total energy consumption (MWh) 638 083 611 154  -4% Discontinued operations Total energy consumption (MWh) 105 205 93 145  -11% BEWI’s energy consumption mix shows a positive development, with a reduction in fossile energy consumption and an increase in renewable energy consumption. The share of renewable energy consumption has increased from 12 per cent in 2023 to 16 per cent in 2024. The total energy consumption has decreased with 5 per cent, influenced by both increased energy efficiency and reduced production volumes. 6767Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Table 2.2 Disaggregated renewable energy consumption Renewable energy consumption (MWh) 2023 2024 ∆% vs 2023 Bio oil 19 746 6 276  -68% District heating 3 447 3 577  4% Green electricity certificates 42 994 65 224  52% Solar panels 1 874 2 139  14% Woodchips 23 480 34 985  49% Total renewable energy consumption (MWh) 91 541 112 201  23% Continued operations Total energy consumption (MWh) 82 204 88 625  8% Discontinued operations Total energy consumption (MWh) 9 336 23 576  153% BEWI increased its share of renewable energy consumption by 29 per cent compared to 2023. This growth was primarily driven by a higher adoption of green electricity certificates and a transition from bio-oil to wood-chips. 6868Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 3 Energy intensity Reporting principles BEWI’s energy consumption intensity target for 2030 is a 12 per cent increase in energy efficiency, using 2021 as the base year. BEWI’s activities mainly apply to the high climate impact sector C Manufacturing, F Construction and N Administrative and support service activities as defined in Commission Delegated Regulation (EU) 2022/1288. Consequently, all energy con- sumption and net revenue are accounted for in the energy consumption and energy intensity values. The total net revenue is consistent with the consolidated net revenue presented in the financial statement. Energy intensity on net revenue is calculated based on total energy consumption in BEWI’s consolidated activities, divided by total revenue as reported in the consolidated financial statement. As this value is subject to fluctuations based on market prices, BEWI measures its energy intensity per kg of raw material, calculated based on total energy consumption in consolidated activities, divided by total raw material consumption. The metrics are derived entirely from primary data sources, ensuring low uncertainty and minimal error margins. Table 3.1 Energy intensity per net revenue Renewable energy consumption (MWh) 2023 2024 ∆% vs 2023 Target 2030 energy efficiency % Target 2030 energy efficiency Total energy consumption from activities in high climate impact sectors per net revenue from activities in high climate impact sectors (MWh/EUR) 0.00067 0.00069  3% Net revenue from activities in high climate impact sectors used to calculate energy intensity (MEUR) 1 105 1 015  -8% Net revenue (other) (MEUR) 0 0 Total net revenue (MEUR) 1 105 1 015  -8% Company specific KPI Energy intensity ratio, MJ / kg raw materials 7.20 7.16  -1% 12% 6.45 Continued operations Energy intensity ratio, MJ / kg raw materials 13.39 13.10  -2% 12% 11.8 Discontinued operations Energy intensity ratio, MJ / kg raw materials 1.87 1.80  -4% 12% 1.65 The combination of 5 per cent reduction in energy consumption and an 8 per cent decline in net revenues has resulted in an increase in BEWI’s energy intensity relative to net revenue compared to last year. When measuring energy intensity per kilogram of raw materials, the impact of reduced production volumes is taken into account. While lower production volumes typically lead to higher energy intensity, BEWI has maintained a stable level. This reflects ongoing efforts to improve energy efficiency across operations and progress toward the 12 per cent reduction target by 2030. 6969Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 4 Gross scopes 1, 2, 3 and total GHG emissions Reporting principles BEWI reports its GHG emissions in accordance with the GHG Protocol, encompass- ing the same companies as those included in the financial statement (companies where BEWI has direct operational control exceeding 50 per cent ownership). BEWI established its climate accounts in 2020. Although acquired companies have reported data back to base year 2020, the development in reporting structure and improvement of data quality over time brings uncertainty to the historical amounts. BEWI has therefore chosen not to publish data older than 2023 in this year’s sustainability statements, due to the uncertainty of measurement regarding the older data. Consequently, 2023 data is within the scope of third party limited assurance. BEWI has disclosed calculation errors in the input to the 2023 sustainability statements. Corrections to energy contract calculations have affected scope 2 market-based GHG emissions, resulting in a reduction compared to the 2023 annual report. In addition, an update of CO 2 -factors for GPPS and rGPPS resulted in a decrease in emissions for all previous years. The new factors will more correctly reflect the emissions from the production of the raw materials. For transportation an interpretation error was identified, where procured out- bound transportation was mistakenly reported under category 3.9 instead of 3.4. This has been corrected for 2023 and 2024. For categories 3.2, 3.4, 3.7, 3.9, 3.10, and 3.12, the calculations and results are partially based on estimates due to the absence of primary data. Consequently, these categories exhibit a higher level of uncertainty. In contrast, the other scope 3 categories are derived from primary data. Additionally, a general degree of uncertainty is associated with the CO 2 factors applied, as supplier-specific CO 2 metrics were only available and utilised for categories 3.1, 3.4, and 3.9. Table 4.1 Gross scope 1, 2, and 3 emissions Retrospective Milestones and target years Base year 2023 2024 ∆% vs 2023 2025 2030 (2050) Annual % target / Base year Scope 1 GHG emissions Gross scope 1 GHG emissions (tCO 2 eq) 97 283 89 444  -8% Percentage of scope 1 GHG emissions from regulated emission trading schemes (%) 0% 0% Scope 2 GHG emissions Gross location-based scope 2 GHG emissions (tCO 2 eq) 76 439 74 790  -2% Gross market-based scope 2 GHG emissions (tCO 2 eq) 54 054 45 274  -16% Percentage of contractual instruments, scope 2 GHG emissions 26% 39%  50% Scope 3 GHG emissions Total gross indirect (scope 3) GHG emissions (tCO 2 eq) 1 167 360 998 159  -14% 1 Purchased goods and services 764 877 631 892  -17% 2 Capital goods 993 993  0% 3 Fuel and energy-related activities (not included in scope 1 or scope 2) 29 396 26 781  -9% 4 Upstream transportation and distribution 49 926 54 931  10% 5 Waste generated in operations 543 492  -9% 6 Business travelling 1 306 1 368  5% 7 Employee commuting 4 657 4 931  6% 8 Upstream leased assets 0 0 9 Downstream transportation 576 597  4% 10 Processing of sold products 209 741 185 796  -11% 11 Use of sold products 0 0 12 End-of-life treatment of sold products 102 197 87 251  -15% 13 Downstream leased assets 0 0 14 Franchises 0 0 15 Investments 3 723 3 723  0% Total GHG emissions Total GHG emissions (location-based) (tCO 2 eq) 1 341 083 1 162 392  -13% Total GHG emissions (market-based) (tCO 2 eq) 1 318 697 1 132 877  -14% 7070Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 BEWI has achieved a reduction of its scope 1 emission with 8 per cent. The reduction is primarly driven by a transition to renewable energy sources, energy efficiency and a reduction in production volumes. For Scope 2 emissions, the location-based figures show a slight reduction, driven by lower energy consumption. In contrast, the market-based figures demonstrate a significant reduction, primarly due to a 50 per cent increase in green energy contracts, and reduced energy use. Scope 3 emissions have decreased by 14 per cent. In Category 1, emissions have been significantly reduced due to a 77 per cent increase in the use of recycled raw materials, as detailed in Note 8. Category 3 reductions are primarily driven by a higher share of renewable fuel and energy. In Category 10, the decline is mainly attributed to an increased proportion of recycled content in sold raw materials an a reduction in externally sold volumes. Upstream and downstream transportation emissions have increased from 2023 to 2024 by 14 per cent. This is primarily due to underreporting in 2023 and improved data accuracy in 2024. Category 1: Purchased goods and services This category includes goods and services purchased by BEWI and is divided into three key subcategories: “Raw material input”, “Purchased packaging” and “Water consumption”. Raw material input exceeding 1 per cent of the total raw material inflow is included. The CO 2 e emission factors are based on life cycle assessments from Asplan Viak, supplier specific EPDs, Ecoinvent (version 3.6), and DEFRA. Category 2: Capital goods Capital goods include machinery such as shape and block moulding machines and pre-expanders. As supplier-spesific emission data is unavailable, BEWI calculates emissions using the mission intensity of steel and an estimated emission factor for man- ufacturing a single machine. Total emissions are then scaled based on the number of machines of each type and distributed over their estimated average lifetime to determine annual emissions. The lifetime is calculated based on the average age of all machinery in BEWI, which is 23 years. Category 3: Fuel- and energy related activities All energy flows and energy fuel flows used for reporting on scope 1 and scope 2 are coupled with relevant scope 3 emission factors to calculate the emissions. Country-specific factors are used for calculating transmission and distribution (T&D) and gen- eration emissions for the electricity in each country (source IEA or DEFRA). Average factors are used for other fuels (Ecoinvent or DEFRA). Category 4: Procured upstream transportation In 2023, a combined reporting approach that integrates both physical transport data and direct emissions were adopted. Data collected from 56 logistics suppliers established new key metrics: (1) kg CO 2 e per Euro spent, (2) kg CO 2 e per tkm for road, rail, and sea transport, and (3) direct kg CO 2 e. Category 5: Waste generated in operations Waste is reported as normal waste (11 categories) and hazardous waste (7 categories), including waste treatment (incineration, landfill, reuse, or recycling). Average GHG emission factors for the treatment of the different waste types are used (DEFRA). Category 6: Business travel Business travel is based on travel done by plane. Where available, the direct emissions for all travels are reported using the greenhouse gas data retrieved from the travel agencies. Otherwise, the emissions are calculated based on the number of flights taken for three categories: domestic, europe, or continental. Category 7: Employee commuting Emissions are calculated without employee-specific data to comply with GDPR, using average distances coupled with employee numbers and emission factors per transportation type (car, bike, foot, and public transport). Category 8: Upstream leased assets BEWI leases many of its production facilities. Emissions from the operations of these sites are included in scope 1 and scope 2. Category 9: Procured downstream transportation Downstream transportation emissions from outbound transportation that BEWI is not financially responsible for, include only a small fraction of total outbound transport (2 per cent). Calculations are done using the same methodology as in Category 3.4. Category 10: Processing of sold products BEWI’s business segments RAW and Circular produce raw materials that are sold to manufacturers for processing. Calculations are based on the total kg of raw materials sold externally, multiplied with BEWI’s average CO 2 e per kg of raw materials in produc- tion for insulation and packaging production. Category 11: Use of sold products None of the products sold by BEWI have use-phase emissions. The emissions from this category are zero. Category 12: End of life treatment of sold product (EOL) EOL has been calculated based on share of final treatment in the different countries where BEWI operates. The percentages for the different waste treatment methods per country are combined with sales data to determine the quantity of products going to different waste treatment types and coupled with a CO 2 e intensity for the different waste treatment methods. Category 13: Downstream leased assets BEWI does not have any downstream leased assets. The emissions for this category are zero. 7171Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Category 14: Franchises BEWI does not have any franchises. The emissions for this category are zero. Category 15: Investments BEWI has a 34 per cent ownership in Hirsch France SSAS and Hirsch Porozell GmbH. The emissions associated with these invest- ments are calculated using the ownership percentage and the total scope 1 and scope 2 emissions. The total emissions are multiplied by the ownership percentage, yielding the total emissions allocated to BEWI for scope 3.15. Table 4.2 Bundled and unbundled GoO electricity contracts 2024 Percentage of contractual instruments, scope 2 GHG emissions - bundled 38% Percentage of contractual instruments, scope 2 GHG emissions - unbundled 62% The percentage of contractual instruments for Scope 2 emissions indicates a greater reliance on unbundled instruments, such as unbundled renewable energy certificates (RECs) or guarantees of origin (GOs), compared to bundled instruments, which include both energy and environmental attributes in a single purchase agreement. Table 4.3 Share of scope 3 categories calculated using primary data 2024 1 Purchased goods and services 97% 2 Capital goods 0% 3 Fuel and energy-related activities (not included in scope 1 or scope 2) 100% 4 Upstream transportation and distribution 48% 5 Waste generated in operations 100% 6 Business travelling 91% 7 Employee commuting 0% 9 Downstream transportation 0% 10 Processing of sold products 0% 12 End-of-life treatment of sold products 0% 15 Investments 100% Total GHG scope 3 calculated using primary data 59% BEWI prioritises the use of primary data to ensure the highest quality and accuracy in its emissions calculations. For categories where the company is not directly involved, such as end-of-life treatment of sold products, downstream transportation, and processing of sold products. BEWI works to obtain the most reliable estimates to assess the associated emissions. Despite these challenges, BEWI remains committed to continuously improving data collection and estimation methods to enhance the accuracy and transparency of its emissions reporting. 7272Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Table 4.4 Total GHG emissions by business segment 2023 2024 ∆% vs 2023 Insulation & Construction Scope 1 18 871 18 716  -1% Scope 2 location-based 27 423 25 940  -5% Scope 2 market-based 21 039 21 039  0% Scope 3 258 240 192 603  -25% Total GHG emissions (scope 1, 2, and 3) Location-based 304 534 237 259  -22% Total GHG emissions (scope 1, 2, and 3) Market-based 298 150 232 358  -22% Packaging & Components Scope 1 68 475 62 803  -8% Scope 2 location-based 28 507 26 846  -6% Scope 2 market-based 18 351 13 995  -24% Scope 3 126 682 100 852  -20% Total GHG emissions (scope 1, 2, and 3) Location-based 223 664 190 501  -15% Total GHG emissions (scope 1, 2, and 3) Market-based 213 508 177 649  -17% Circular Scope 1 7 7  0% Scope 2 location-based 2 884 3 539  23% Scope 2 market-based 2 884 3 539  23% Scope 3 13 401 14 826  11% Total GHG emissions (scope 1, 2, and 3) Location-based 16 292 18 371  13% Total GHG emissions (scope 1, 2, and 3) Market-based 16 292 18 371  13% 2023 2024 ∆% vs 2023 RAW (discontinued operation) Scope 1 9 931 7 919  -20% Scope 2 location-based 17 625 18 464  5% Scope 2 market-based 11 780 6 700  -43% Scope 3 769 037 689 879  -10% Total GHG emissions (scope 1, 2, and 3) Location-based 796 594 716 261  -10% Total GHG emissions (scope 1, 2, and 3) Market-based 790 748 704 498  -11% Total GHG emissions (scope 1, 2, and 3) Location-based 1 341 083 1 162 392  -13% Total GHG emissions (scope 1, 2, and 3) Market-based 1 318 697 1 132 877  -14% To avoid double reporting related to internal sales of raw materials from BEWI RAW to downstream, CO₂e emissions are accounted for at BEWI RAW. Consequently, Scope 3 emissions for downstream operations exclude CO₂e from raw materials purchased internally. BEWI Circular has increased their greenhouse gas emissions for both Scope 2 and 3, primarily due to the higher volumes of collected materials and increased production of recycled raw materials. For BEWI RAW, the rise in Scope 2 emissions is primarily linked to the investment of the extruder line for the production of recycled raw materials. In contrast, all other business seg- ments have reduced their emissions, driven by improvements in energy efficiency, a transition to renewable energy sources, and a greater use of recycled raw materials. 7373Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 5 Greenhouse gas (GHG) intensity Reporting principles The intensity metric is derived from BEWI’s consolidated climate account and total revenue. The economic intensity indicates the total greenhouse gas emissions per euro of revenue for BEWI. Given that BEWI’s primary activities are in high climate impact sectors C, F, and N, the total net revenue aligns with the consolidated net revenue reported in the financial statement. Since GHG intensity based on net revenue fluctuates with market prices, BEWI measures its GHG intensity per kg of raw material. This is calculated by dividing total greenhouse gas emissions from consolidated activities by total kg raw material. The overall uncertainty associated with these metrics is consistent with the levels of uncertainty described for scopes 1–3 in notes 1 and 4. Table 5.1 GHG intensity based on net revenue GHG intensity per net revenue 2023 2024 ∆% vs 2023 Total GHG emissions (location-based) per net revenue (tCO 2 eq/EUR) 0.00121 0.00115  -6% Total GHG emissions (market-based) per net revenue (tCO 2 eq/EUR) 0.00119 0.00112  -6% Net revenue from activities in high climate impact sectors used to calculate energy intensity (MEUR) 1 105 1 015  -8% Net revenue (other) (MEUR) 0 0 Total net revenue (MEUR) 1 105 1 015  -8% Company specific KPI GHG intensity kg CO 2 /kg 3.25 3.00  -8% Total greenhouse gas emissions in Scope 1, 2 and 3, have decreased compared to last year, as indicated in Note 4. The reduction in net revenues, primary driven by lower production volumes, has directly impacted GHG intensity based on net revenue. GHG intentity per kg raw material provides a more accurate and stable measure, showing 8 per cent improvement. 7474Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 E2 Pollution Material impacts, risks, and opportunities As a raw material producer and converter, BEWI’s activities carry inherent risks of pollution, primarily from emissions to air and water, and potential spills or leaks of plastic pellets. If not properly managed, these emissions could potentially negatively impact the local environment. BEWI’s three production facilities for raw materials (chemical facilities) use raw materials that contains volatile organic compounds (VOCs). VOCs are clas- sified as substances of concern and can, if released, impact air quality. Additionally, as a plastics manu- facturer, the group faces the risk of potential plastic pellet pollution from its production facilities and in the downstream value chain if products are not handled responsibly. Policies related to pollution BEWI’s environmental policy requires all production facilities to identify, control, and monitor potential sources of pollution in compliance with ISO 14001 and Operation Clean Sweep. The policy emphasises pollution control and incident prevention and does not include action plans or resources for phasing out or substituting substances of concern. Additionally, BEWI’s Supplier Code of Conduct outlines require- ment for pollution management across the value chain emphasising a commitment to environmental due diligence. Governance and management of the policies are described in the sections about Climate change and Governance. Processes to identify and assess material impacts, risks and opportunities To identify material pollution, BEWI has assessed raw material usage and pollutants across its value chain using the LEAP approach. The analysis focused on five key areas: • Assessment of existing environmental impact assessment (EIA), emission permits and certifica- tions • Screening pollutants to air, soil, and water based on ESRS E2, Appendix B • Identifying substances of concern following PlastChem’s report, “State of the Science on Plastic Chemicals: Identifying and Addressing Chemicals and Polymers of Concern” • Screening for substances of very high concern under the REACH regulation • Collecting data on actions, resources and manage- ment systems to mitigate pollution and address the use of substances of concern Action and resources related to pollution Pollution mitigation and compliance with envi- ronmental regulations are a priority for BEWI. All production facilities have environmental manage- ment systems in place to ensure effective monitoring and mitigation of environmental impacts. Substance of concern BEWI has identified four substances of concern, detailed in note 7. The group’s three (chemical) raw material facilities use styrene and pentane to produce expanded polystyrene (EPS), while formic acid and isocyanate is used by one production facility that produce polyisocyanurate (PIR) insulation boards. Emission to water and air Styrene and pentane are used in the production of EPS. Both contains VOCs that can contribute to air and water pollution during production. To prevent emissions, BEWI has thermal treatment of off-gases that removes styrene and pentane emitted during the production. All production facilities have waste- water treatment systems to remove VOCs before the 7575Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 water discharges, ensuring compliance with environ- mental regulations. Emissions are assessed through direct measurements and standardised calculations, guided by permit and reporting requirements 1 . At a minimum, production facilities adhere to environmental permits, which specify monitoring locations, frequency, methodol- ogy and legal reporting requirements. Formic acid and isocyanates do not have direct emissions to air, water, or soil during normal opera- tions. However, since these substances are hazardous, safety and handling measures are required to prevent accidental spills or leaks that could pose risks to the environment and human health. BEWI has allocated the necessary resources and investments to support these initiatives. No addi- tional capital expenditure (CAPEX) or operational expenditure (OPEX) were identified for addressing material impacts in 2024. Potential pollution of microplastics In 2020, BEWI signed the Operation Clean Sweep (OCS) pledge, committing to incorporate mitigation measures to prevent plastic pellet loss. The group has implemented the following management approach: • Commit to making zero pellet loss a priority • Conduct assessment to identify risk areas • Analyse spill causes and implement preventive measures • Regular follow-up to measure effectiveness • Provide training to increase awareness In 2024, the certification scheme for Operation Clean Sweep became available. BEWI has invested in preven- tive measures to align with the Operation Clean Sweep (OCS) criteria. To further strengthen these efforts, the company has allocated dedicated resources to certify its production facilities according to OCS standards. To measure microplastic leakage, BEWI is working to adapt to the bow-tie approach. This methodology enables quantification and tracking of microplastic emissions while supporting the implementation of targeted preventive measures. BEWI has identified microplastic pollution in its downstream value chain as material, particularly during the end-of-life treatment of sold products. To address this, BEWI collaborates with customers to improve sorting and collection to ensure proper management of BEWI’s products. BEWI has allocated the necessary resources and investments to support these activities. However, additional investments are required for certain pro- duction facilities, along with increased operational costs to integrate Operation Clean Sweep into the certification processes for all production facilities. Targets related to pollution BEWI has not established a specific target for the consumption of substances of concern. The group works to reduce the use by increasing the share of recycled content in its operations, as outlined in the section about Resource use and circular economy. Targets for emission to air and water are guided by environmental permits and reporting requirements 2 . As knowledge of pollutant impacts evolves, emission limits are regularly updated to reflect the latest best available techniques (BAT) and regulatory standards. Production facilities report monthly on deviations, including any incidents resulting in emissions to the external environment. BEWI has set a target for all production facilities to achieve certification under the Operation Clean Sweep program by the end of 2026. This voluntary initiative underscores the group’s dedication to reducing plastic pellet loss and mitigating environ- mental impacts. 1, 2 Directive 2010/75/EU (Industrial Emissions Directive) and the Commission Implementing Decision (EU) 2022/2427 of 6 December 2022 7676Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Notes to E2 Pollution Note 6 Pollution to air and water Reporting principles The data includes emissions from BEWI’s consolidated activities, where the majority of emissions are from BEWI’s three raw material production facilities. BEWI RAW identifies its emissions to air and water using a mix of direct measurements and calculations. Emission factors provide a standardised method for calculating emissions. Calculation methods are part of permit or reporting requirements. 2010/75/EU, IE-directive or more in detail: Commission Implementing Decision (EU) 2022/2427 of 6 December 2022 establishing the best available techniques (BAT) conclusions, under Directive 2010/75/EU of the European Parliament and of the Council on industrial emissions, for common waste gas management and treatment systems in the chemical sector. To evaluate the effectiveness of the installed burning units in preventing emissions of styrene and pentane, the data includes the emissions avoided through their use. The efficiency percentage acts as a key indicator of the units’ performance in mitigating pollution. For both styrene and pentane, the efficiency of the burning units is calculated by dividing the total prevented emissions by the sum of the prevented and actual emissions. As a result, the reported efficiency figures are comparable for both materials. Pentane is a blowing agent in EPS, and downstream production facilities therefore have some emissions of pentane in their production. Downstream pentane emissions are calculated solely from externally produced EPS, as emissions from internally procured raw materials is already accounted for under RAW’s emissions. One production facility use formic acid and isocyanate and has minor emissions to soil. The emission is regulated in accordance with Lithuania’s National Ambient Air Pollution Legislation, overseen by the Lithuanian Department of Environmental Protection and are based on five- yearly measurements (last measurement in July 2023). For all material sites, the data is derived from primary sources, resulting in low levels of uncertainty. For microplastic management production facilities report on the implementation status of the six commitments of OCS, and result of third-party audits, including identified non-conformatives and corrective actions implemented. Deviations from environmental management systems (ISO 14001 and Operation Clean Sweep) are defined as incidents that lead to unintended emissions or spills into the external environment, categorised as severe or major in terms of their impact. Such incidents are systematically reported, tracked, and evaluated monthly to facilitate corrective actions. Table 6.1 Pollution of air and water by division Total RAW Other 1 Pollution to air at material sites (tonnes) Pentane 352.4 351.4 0.9 Styrene 6.7 6.7 0.0 Total 359.1 358.1 0.9 Pollution to water at material sites (tonnes) Styrene 0.0 0.0 0.0 Formic acid 0.0 0.0 0.0 Isocyanate 0.0 0.0 0.0 Total 0.0 0.0 0.0 Prevented pollution at material sites (tonnes) Pentane 392.5 392.5 0.0 Styrene 1 349.0 1 349.0 0.0 Total 1 741.5 1 741.5 0.0 Efficiency of burning units at material sites (%) Pentane 38% 38% 0% Styrene 38% 38% 0% Total 76% 76% 0% 1 Divisions Insulation & Construction, Packaging & Components and Circular 7777Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Emissions are being measured and reported for the first time, making year-over-year comparisons unavailable. Burner installa- tions and emissions measurements comply with the latest local regulations and emission limits to prevent environmental harm. These limits and measurements are reviewed and updated annually to ensure continued compliance. Table 6.2 Implementation and certification for Opereation Clean Sweep Company specific 2023 2024 ∆% vs 2023 Target 2026 Production facilities implemented Operation Clean Sweep 39% 100%  156% 100% Production facilities certified Operation Clean Sweep 0% 5%  5% 100% During 2024, all of BEWI’s production facilities has committed to and implemented Operation Clean Sweep (OCS). Additionally, four of these facilities have been certified by a third-party for their adherence to OCS standards. Table 6.3 Deviations from environmental management systems Company specific 2023 2024 ∆% vs 2023 Target 2030 Deviations from environmental management systems 32 27  -16% 0 The majority of deviations (60 per cent) were related to storage and loading that reulted in minor pellets spills that required cleaning. These incidents were adressed to minimise enviornmental impact. All deviations have been throughly investigated and followed-up with appropriate corrective actions to prevent recurrence. Note 7 Substances of concern Reporting principles The definition for substances of concern adheres to the criteria set forth in PlastChem’s report “State of the Science on Plastic Chemicals”. The usage of the identified substances is reported based on the usage in BEWI’s production. The total use in prod- ucts is based on substances of concern used in pure form as a raw material. The total integrated in procured materials is based on the substances of concern integrated in externally procured materials. The total amount of substances of concern integrated in sold products is based on the sum of the total use and total in pro- cured materials minus the total amount that leaves production facilities as emissions. All data reported under E2-5 is sourced from primary data, resulting in a low level of uncertainty. Table 7.1 Substances of concern in in- and outflowing material streams (all amounts in tonnes) Pollutant Total use in products Total integrated in procured materials Total amount that leave production facilities as emissions Total integrated in sold products Hazard classes (H-phrases) Pentane 11 587 482 2 091 14 160 H225, H304, H336, H411 Styrene 152 073 50 454 7 202 534 H226, H332, H315, H319, H361d, H372, H304, H412 Formic acid 12 0 0 12 H226, H290, H302, H314, H318, H331 Isocyanate 750 0 0 750 H225, H310+H311, H315, H317, H318, H330, H334, H335, H361d Amount of pollutant used is being reported for the first time, making year-over- year comarisons unavailable. Pollutant manage- ment systems comply with the latest local regulations and emission limits to prevent environmental harm and are reviewd and updated annually to ensure continued compliance. 7878Sustainability statements | EnvironmentSustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 E5 Resource use and circular economy Material impacts, risks, and opportunities BEWI’s material impacts relate on its reliance on non-renewable resources and the environmental impacts from waste generation. To adress these impacts the group actively collects, reuses and recy- cles its key raw material EPS. The group’s integrated business model enhances it capacity to scale circular practices, aligning with its priorities to improve resource efficiency, and minimise waste-related environmental impacts. The group has identified circularity as a financial opportunity, where it can leverage on its capabilities to deliver recyclable and recycled products in markets where consumer and regulatory demands are increasing. Policies related to resource use and circular economy BEWI’s environmental policy addresses resource use and circular economy across the operations, focusing on adhering to the waste hierarchy. The policy targets four key areas that are material for BEWI: • Designing recyclable and reusable products • Enhancing resource efficiency by increasing use of renewable and recycled materials • Facilitating the recycling of waste and end-of-life products, contributing to a closed-loop system • Safe handling of hazardous waste to protect human health and the environment BEWI’s Supplier Code of Conduct addresses the group’s requirements to resource use and circular economy in its upstream value chain, emphasising resource efficient and sustainable production and consumption. Governance and management of the policies are described in the sections about Climate change and Governance. Processes to identify and assess material impacts, risks and opportunities BEWI identifies and monitors resource use by calculating and reporting on resource inflows and outflows in its operations, including energy use, raw materials and waste generation. Resource inflows are reported and monitored monthly while resource outflows related to waste generation is reported annually. The reporting covers most of the material inputs used in production and outflows. An overview of resource inflows and outflows can be found in note 8. Actions and resources related to resource use and circular economy The group defines the transition to a circular economy as a strategic pillar and a key enabler to secure growth from its downstream business. Actions related to resource inflows Ensuring recyclability: BEWI always targets new products and solutions to be fully recyclable. The group has contributed to the creation of the RecyClass certification for EPS products documenting recyclability. Furthermore, many of the group’s pro- duction facilities have REDcert certification, providing third-party certification of the use of recycled content. Resource efficiency and use of recycled content: BEWI works to improve resource efficiency across its operations. Resource efficiency is enhanced by optimising product density, which reduces raw material usage without compromising product performance and quality, and increasing the use of recycled material in products manufactured. The use of recycled material is an important KPI for the group’s business segments and is included as a KPI in their remuneration schemes, with monthly reporting to the group. Actions related to resource outflows Waste management in own operation: Waste man- agement is an integral part of BEWI’s environmental management. The group aims to reduce waste generation through reuse and recycling, targeting to eliminate waste sent to landfills and recycle 80 per cent of waste generated by its operations. To achieve these targets, a waste management program has been implemented to reduce waste, improve sorting, and enhance recycling capabilities. The program aims to optimise resource efficiency, minimise environmental impact, and drive the transition to a circular economy. 7979Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Collection and recycling: BEWI collects and recycles post-consumer waste, primarily EPS, to reduce reli- ance on non-renewable resources. To achieve this, BEWI collaborates with stakeholders across its value chain, including suppliers, customers, and industry associations, to improve sorting and collection systems. In addition, the group invests in recycling capabilities to efficiently process the collected mate- rials. In 2024, BEWI expanded its capabilities with a new circular facility in Norrköping in Sweden, increasing its recycling capacity by approximately 10 000 tonnes equivalent to 40 per cent. Furthermore, the group ramped-up its production at the new production line (extrusion) for raw materials in Etten-Leur in the Netherlands, where recycled EPS is used to produce new raw materials. Targets related to resource use and circular economy BEWI has established targets and KPIs for waste collection, recycling, share of recycled content in its products and waste sorted for recycling. The targets are voluntary but closely tied to the group’s carbon reduction plan, addressing greenhouse gas emissions associated with key raw materials and the end-of-life treatment of sold products. Share of recycled and renewable materials Per cent 203020242023 13% 15% 30% Collected waste for reuse and recycling Tonnes 203020242023 26 950 33 135 60 000 Share of final treatment of waste Per cent 0 10 20 30 40 50 60 70 80 Waste to landfilling Waste to incineration Waste to recycling 47% 2023 2024 48%48% 48% 20% 80% 5% 4% 0% 2030 8080Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Notes to E5 Resource use and circular economy Note 8 Resource inflows Reporting principles Resource inflows include raw materials constituting more than 1 per cent of total consumption across BEWI’s consolidated activities. These materials are reported monthly by production facilities and categorised into three main groups: renewable, non-renewable, and recycled raw materials. Recycled raw materials are post-consumer products that have already completed a product lifecycle and been reintroduced into the production process. Internal resource flows are reported separately and excluded from the calculation. Collected waste is a company specific KPI and represent the total amount of waste collected for reuse and production of recycled raw materials. Water consumption is based on actual volume of water drawn and utilised by each production facility. All data is derived from primary sources, ensuring low uncertainty. Table 8.1 Resource inflows Amounts in tonnes (unless otherwise stated) 2023 2024 ∆% vs 2023 Total weight of raw materials and products 406 166 377 731  -7% Renewable raw materials 38 018 28 517  -25% Non-renewable raw materials 368 147 349 214  -5% Share renewable raw materials 9% 8%  -11% Recycled raw materials 14 321 25 418  77% Non-recycled raw materials 391 845 352 313  -10% Share recycled raw materials 4% 7%  97% Water consumption (1 000 liters) 1 221 137 1 052 479  -14% Company specific resource inflows: Collected waste for reuse/production of recycled raw materials 26 950 33 135  23% Raw material usage has decreased primarily due to reduced production. However, there has been a positive trend across all resource inflows, with the use of recycled raw materials increasing by 77 per cent compared to 2023. Additionally, the propor- tion of collected materials has grown by 23 per cent reflecting BEWI’s continued efforts to enhance sustainability by integrating more recycled content into its production processes and improving material recovery rates. These improvements highlight the company’s commitment to circularity and reducing its reliance on virgin raw materials. As a discontinued operation, RAW accounted for 49 per cent of total resource inflows, 27 per cent of recycled material usage, and 22 per cent of overall water consumption. This underscores its substantial impact on the company’s material sourcing, reflecting both its reliance on raw material and recycled inputs. 8181Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 9 Resource outflows Reporting principles Resource outflows encompass waste generated during production processes as well as the production and sales volumes from BEWI’s consolidated activities. Waste data is collected from reports provided by waste handling companies, which detail the volumes of both normal and hazardous waste. This data is categorised into 18 distinct waste fractions, along with their respective treatment methods. Data is from primary sources with low levels of uncertainty. Sales volumes is reported by business segments (production categories) and categorised by raw material types. Data is from primary sources with low level of uncertainty. Durability is based on average estimates for each product category. For raw materials, the durability depends on the specific product type but generally aligns with the durability of the main product groups. BEWI’s products are fully recyclable, though actual recyclability is influenced by how the products are used and managed in the market, including factors like collection and recycling infrastructure. Recycled content is calculated based on the actual amount of recycled raw materials used in produc- tion, measured in kilograms or tonnes. Table 9.1 Resource outflows Amounts in tonnes (unless otherwise stated) 2023 2024 ∆% vs 2023 Total waste generated 13 095 11 703  -11% Hazardous waste diverted from disposal 200 92  -54% Hazardous waste diverted from disposal due to preparation for reuse 0 0 Hazardous waste diverted from disposal due to recycling 200 92  -54% Hazardous waste diverted from disposal due to other recovery operations 0 0 Non-hazardous waste diverted from disposal 5 788 5 106  -12% Non-hazardous waste diverted from disposal due to preparation for reuse 50 232  364% Non-hazardous waste diverted from disposal due to recycling 5 738 4 873  -15% Non-hazardous waste diverted from disposal due to other recovery operations 0 0 Hazardous waste directed to disposal 780 969  24% Hazardous waste directed to disposal by incineration 83 105  27% Hazardous waste directed to disposal by landfilling 697 864  24% Hazardous waste directed to disposal by other disposal operations 0 0 Non-hazardous waste directed to disposal 6 326 5 536  -12% Non-hazardous waste directed to disposal by incineration 5 764 5 059  -12% Non-hazardous waste directed to disposal by landfilling 562 478  -15% Non-hazardous waste directed to disposal by other disposal operations 0 0 Non-recycled waste 7 107 6 506  -8% Percentage of non-recycled waste 54% 56%  2% Total amount of hazardous waste 980 1 061  8% Total amount of radioactive waste 0 0 8282Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 The total amount of generated waste has decreased by 11 per cent. Non-hazardous waste has been reduced by 12 per cent, with a significant increase in share of waste being directed to reuse and a decrease in the proportion sent to landfill. The total amount of hazardous waste has increased by 8 per cent, resulting in a higher proportion of hazardous waste being directed to incineration and landfilling. This increase is primarily attributed to ongoing cleanups activities at several factories. As a discontinued operation, RAW accounted for 27 per cent of total waste generation and 85 per cent of hazardous waste produced. It’s phase-out will impact overall waste production, particularly the volume of hazadous waste and share of waste being sent to landfill. Table 9.2 Outflow by product and division Tonnes Insulation & Construction Biofoam 1 EPS 57 981 Reused EPS 7 PIR+PUR 1 881 XPS 26 444 Total 86 314 Packaging & Components Biofoam 9 Cardboard 7 345 EPP 6 807 EPS 30 243 Reused EPS 109 Polyeten 1 768 Total 46 281 Tonnes Circular rGPPS 9 160 Compacted EPS 201 Cardboard 41 103 Other 53 702 Total 104 166 RAW (discontinued operation) Biofoam 17 Beads white 169 477 Beads grey 8 187 Beads recycled 3 767 Reused EPS 571 RGPPs 1 391 Other 205 Total 183 615 Resource outflows by business segment show that RAW has the highest outflow volumes, with 50 per cent of these materials sold internally to the packaging and insulation business segments. In the downstream business segment, insulation has the highest outflow of products, followed by packaging, which includes both plastic and fiber-based packaging solutions. Additionally, outflows from the Circular segment are primarily sold internally to both the RAW and downstream segments. Table 9.3 Durability, recyclability and recycled content Product group Business segment Durability/life time Recyclability Recycled content Raw materials RAW, Circular Dependent on final product 100% % Insulation and construction Insulation & Construction 30-50 years 95-100% 12% Packaging Packaging & Components <1 year 95-100% 12% Automotive and technical components Packaging & Components 15-30 years 100% 4% The majority of BEWI’s products are designed for durability, that ensures sustained functionality and performance. Additionally, they are designed for recyclability, supporting circular economy principles. Currently, the recycled content varies between 4 per cent and 12 per cent reflecting the company’s ongoing commitment to increasing recycling initiatives. 8383Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 EU taxonomy for sustainable activities Basis for reporting BEWI’s EU taxonomy report has been prepared in accordance with the Taxonomy Regulation EU (2020/852) and the supplementing delegated acts: Climate Delegated Act (2021/2800) and Disclosure Delegated Act (2021/4987). Regulation (EU) 2020/852, article 3, sets out criteria which an economic activity must meet to qualify as environmentally sustain- able (taxonomy-aligned): • Substantially contribute to one or more of the six environmental objectives • Comply with the technical screening criteria (TSC) for the environmental objectives • Do no significant harm (DNSH) to the other five objectives • Comply with minimum safeguards cov- ering social and governance standards Substantial contribution BEWI has identified six activities in the Climate Delegated Act that fulfil the technical screening criteria and have a substantial contribution. Sustainability themes Eligible activities BEWI's activities Technical screening criterias Climate change mitigation & adaptation 3.5: Manufacture of energy efficient equipment for buildings Production of insulation products 3.5.3: External wall systems with u-value lower or equal to 0.5 W/m 2 K 3.5.4: Roofing systems with u-value lower or equal to 0.3 W/m 2 K 3.5.5: Insulating products with a lamba value lower or equal to 0.06 W/m 2 K Production of components to HVAC solutions 3.5.6: Heat pumps compliant with the technical screening criteria set out in Section 4.16 of this Annex 3.17: Manufacture of plastics in primary form Products produced with 100 per cent recycled content 3.17.1: The plastic in primary form is fully manufactured by mechanical recycling of plastic waste 3.18: Manufacture of automotive and mobility components Production of automotive components for zero emission vehicles or driver-powered vehicles 3.18.2: Vehicles designated as categories M 2 and M 3 (164) where the direct (tailpipe) CO 2 emissions of the vehicles are zero 5.5: Collection and transport of non-hazardous waste in source segregated fractions Activities related to collection and transport of waste for reuse and recycling 5.5: All separately collected and transported non-hazardous waste that is segregated at source is intended for preparation for reuse or recycling operations 5.9: Material recovery from non-hazardous waste Production of recycled GPPS and EPS 5.9: The activity converts at least 50%, in terms of weight, of the processed separately collected non-hazardous waste into secondary raw materials that are suitable for the substi- tution of virgin materials in production processes Transition to circular economy 1.1: Manufacture of plastic packaging goods Plastic packaging made from recycled or biobased raw materials and producs design for reuse 1.1.1: Use of circular feedstock: until 2028, at least 35% of the packaging product by weight consists of recycled post-consumer material for non-contact sensitive packaging and at least 10% for contact sensitive packaging 1.1.2: Design for reuse: the packaging product has been designed to be reusable within a reuse system and fulfils the requirements for the use of circular feedstock, as set in point 1.a with 35% and 10% targets for recycled feedstock applying as of 2028. The system for reuse is established in a way that ensures the possibility of reuse in a closed-loop or open-loop system 8484Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Taxonomy-aligned turnover (revenue) Financial year 2024 Economic activities 2024 Substantial contribution criteria (%) DNSH criteria (Y/N) (Y/N) (%) (E) (T) Code Absolute turnover (EUR million) Proportion of turnover (%) Climate change mitigation Climate change adaptation Water and marine resources Pollution Circular economy Biodiversity and ecosystems Climate change mitigation Climate change adaptation Water and marine resources Pollution Circular economy Biodiversity and ecosystems Minimum social safeguard Taxonomy aligned proportion of turnover 2023 Category enabling activity Category transitional activity A. Taxonomy-eligible activities A.1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of energy efficiency equipment for buildings CCM 3.5 343 44% Y N N N N N Y Y Y Y Y Y Y 0% E Manufacture of plastics in primary form CCM 3.17 4 1% Y N N N N N Y Y Y Y Y Y Y 0% T Manufacture of automotive and mobility components CCM 3.18 6 1% Y N N N N N Y Y Y Y Y Y Y 0% E Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 25 3% Y N N N N N Y Y Y Y Y Y Y 0% Material recovery from non-hazardous waste CCM 5.9 11 1% Y N N N N N Y Y Y Y Y Y Y 0% Manufacture of plastic packaging goods CE 1.1 10 1% N N N N Y N Y Y Y Y Y Y Y 0% Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) 399 52% 50% 0% 0% 0% 1% 0% Y Y Y Y Y Y Y 0% Of which enabling 349 45% 45% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E Of which transitional 4 1% 1% Y Y Y Y Y Y Y 0% T A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of energy efficiency equipment for buildings CCM 3.5 0% EL N/EL N/EL N/EL N/EL N/EL 45% Manufacture of plastics in primary form CCM 3.17 0% EL N/EL N/EL N/EL N/EL N/EL 0% Manufacture of automotive and mobility components CCM 3.18 0% EL N/EL N/EL N/EL N/EL N/EL 0% Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 0% EL N/EL N/EL N/EL N/EL N/EL 4% Material recovery from non-hazardous waste CCM 5.9 0% EL N/EL N/EL N/EL N/EL N/EL 1% Manufacture of plastic packaging goods CE 1.1 0% N/EL N/EL N/EL N/EL EL N/EL 0% Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 0 0% 0% 0% 0% 0% 0% 0% 49% Turnover of Taxonomy-eligible activities (A.1+A.2) 399 52% 50% 0% 0% 0% 1% 0% B. Taxonomy-non-eligible activities Turnover of Taxonomy-non-eligible activities 374 48% Total (A+B) continued operations 773 100% Company specific: Turnover discontinued - aligned 108 44% Turnover discontinued - eligible 0 0% Turnover discontinued - non-eligible 135 56% Abbrevations: Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective. N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective Total turnover discontinued 242 100% Total turnover - aligned 507 50% Total turnover - eligible 0 0% Total turnover - non-eligible 509 50% Total turnover 1 015 100% 8585Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Taxonomy-aligned CAPEX Financial year 2024 Economic activities 2024 Substantial contribution criteria (%) DNSH criteria (Y/N) (Y/N) (%) (E) (T) Code Absolute CAPEX (kEUR) Proportion of CAPEX (%) Climate change mitigation Climate change adaptation Water and marine resources Pollution Circular economy Biodiversity and ecosystems Climate change mitigation Climate change adaptation Water and marine resources Pollution Circular economy Biodiversity and ecosystems Minimum social safeguard Taxonomy aligned or eligble proportion of CAPEX 2023 Category enabling activity Category transitional activity A. Taxonomy-eligible activities A.1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of energy efficiency equipment for buildings CCM 3.5 25 31% Y N N N N N Y Y Y Y Y Y Y 0% E Manufacture of plastics in primary form CCM 3.17 0 0% Y N N N N N Y Y Y Y Y Y Y 0% T Manufacture of automotive and mobility components CCM 3.18 0 0% Y N N N N N Y Y Y Y Y Y Y 0% E Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 1 1% Y N N N N N Y Y Y Y Y Y Y 0% Material recovery from non-hazardous waste CCM 5.9 3 4% Y N N N N N Y Y Y Y Y Y Y 0% Manufacture of plastic packaging goods CE 1.1 0 0% N N N N Y N Y Y Y Y Y Y Y 0% CAPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) 29 37% 37% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% Of which enabling 25 32% 32% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E Of which transitional 0 0% 0% Y Y Y Y Y Y Y 0% T A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of energy efficiency equipment for buildings CCM 3.5 0% EL N/EL N/EL N/EL N/EL N/EL 40% Manufacture of plastics in primary form CCM 3.17 0% EL N/EL N/EL N/EL N/EL N/EL 0% Manufacture of automotive and mobility components CCM 3.18 0% EL N/EL N/EL N/EL N/EL N/EL 0% Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 0% EL N/EL N/EL N/EL N/EL N/EL 2% Material recovery from non-hazardous waste CCM 5.9 0% EL N/EL N/EL N/EL N/EL N/EL 9% Manufacture of plastic packaging goods CE 1.1 0% N/EL N/EL N/EL N/EL EL N/EL 0% CAPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 0 0% 0% 0% 0% 0% 0% 0% 50% CAPEX of Taxonomy-eligible activities (A.1+A.2) 29 37% 37% 0% 0% 0% 0% 0% B. Taxonomy-non-eligible activities CAPEX of Taxonomy-non-eligible activities 50 63% Total (A+B) continued operations 79 100% Company specific: CAPEX discontinued - aligned 1 25% CAPEX discontinued - eligible 0 0% CAPEX discontinued - non-eligible 3 75% Abbrevations: Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective. N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective Total CAPEX discontinued 4 100% Total CAPEX - aligned 30 36% Total CAPEX - eligible 0 0% Total CAPEX - non-eligible 53 64% Total CAPEX 83 100% 8686Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Taxonomy-aligned OPEX Financial year 2024 Economic activities 2024 Substantial contribution criteria (%) DNSH criteria (Y/N) (Y/N) (%) (E) (T) Code Absolute OPEX (kEUR) Proportion of OPEX (%) Climate change mitigation Climate change adaptation Water and marine resources Pollution Circular economy Biodiversity and ecosystems Climate change mitigation Climate change adaptation Water and marine resources Pollution Circular economy Biodiversity and ecosystems Minimum social safeguard Taxonomy aligned or eligble proportion of OPEX 2023 Category enabling activity Category transitional activity A. Taxonomy-eligible activities A.1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of energy efficiency equipment for buildings CCM 3.5 13 68% Y N N N N N Y Y Y Y Y Y Y 0% E Manufacture of plastics in primary form CCM 3.17 0 1% Y N N N N N Y Y Y Y Y Y Y 0% T Manufacture of automotive and mobility components CCM 3.18 1 5% Y N N N N N Y Y Y Y Y Y Y 0% E Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 0 1% Y N N N N N Y Y Y Y Y Y Y 0% Material recovery from non-hazardous waste CCM 5.9 1 5% Y N N N N N Y Y Y Y Y Y Y 0% Manufacture of plastic packaging goods CE 1.1 1 3% N N N N Y N Y Y Y Y Y Y Y 0% OPEX of environmentally sustainable activities (Taxonomy-aligned) (A.1) 16 84% 80% 0% 0% 0% 3% 0% Y Y Y Y Y Y Y 0% Of which enabling 14 73% 73% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E Of which transitional 0 1% 1% Y Y Y Y Y Y Y 0% T A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of energy efficiency equipment for buildings CCM 3.5 0% EL N/EL N/EL N/EL N/EL N/EL 17% Manufacture of plastics in primary form CCM 3.17 0% EL N/EL N/EL N/EL N/EL N/EL 0% Manufacture of automotive and mobility components CCM 3.18 0% EL N/EL N/EL N/EL N/EL N/EL 0% Collection and transport of non-hazardous waste in source segregated fractions CCM 5.5 0% EL N/EL N/EL N/EL N/EL N/EL 1% Material recovery from non-hazardous waste CCM 5.9 0% EL N/EL N/EL N/EL N/EL N/EL 1% Manufacture of plastic packaging goods CE 1.1 0% N/EL N/EL N/EL N/EL EL N/EL 0% OPEX of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 0 0% 0% 0% 0% 0% 0% 0% 20% OPEX of Taxonomy-eligible activities (A.1+A.2) 16 84% 80% 0% 0% 0% 3% 0% B. Taxonomy-non-eligible activities OPEX of Taxonomy-non-eligible activities 3 16% Total (A+B) continued operations 19 100% Company specific: OPEX discontinued - aligned 3 52% OPEX discontinued - eligible 0 0% OPEX discontinued - non-eligible 3 48% Abbrevations: Y – Yes, Taxonomy-eligible and Taxonomy-aligned activity with the relevant environmental objective N – No, Taxonomy-eligible but not Taxonomy-aligned activity with the relevant environmental objective N/EL – Not eligible, Taxonomy-non-eligible activity for the relevant environmental objective EL – Taxonomy-eligible activity for the relevant objective N/EL – Taxonomy-non-eligible activity for the relevant objective Total OPEX discontinued 6 100% Total OPEX - aligned 19 76% Total OPEX - eligible 0 0% Total OPEX - non-eligible 6 24% Total OPEX 25 100% 8787Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Nuclear energy related activities 1 The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. NO 2 The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. NO 3 The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. NO Fossil gas related activities 4 The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. NO 5 The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. NO 6 The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. NO 8888Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Taxonomy-aligned activities Financial data in this report is based on International Financing Reporting Standards (IFRS) and refers to BEWI’s consolidated financial statements. The information is prepared on a group consolidated level and are presented in euro. All values are rounded to the nearest million. Taxonomy-aligned revenue (turnover) Taxonomy-aligned turnover activities correspond to net sales, as defined in note 2 to the consolidated financial statements. A turnover KPI in per cent is calculated by putting the taxonomy-aligned turnover in relation to the consolidated net sales for the group. To avoid double counting, internal revenues from eligible activities are excluded, and external revenues are allocated to one activity only. In 2024, BEWI achieved a taxonomy-aligned turnover of 52 per cent, excluding discontinued operations. When includ- ing discontinued operations, the share was 50 per cent, compared to 49 per cent eligible in 2023. The total aligned revenue, including discontinued operations, amounted to EUR 507 million, representing a decrease of EUR 38 million compared to 2023. This decline in revenue was primarily due to lower production volumes, driven by reduced activity in the building and construction industry. BEWI’s taxonomy-aligned revenues are predominantly associated with category 3.5, which pertains to the man- ufacture of energy-efficient equipment for buildings. This includes sales of insulation solutions and external sales of raw materials to insulation and construction companies. Additionally, sales from the Circular business contribute to taxonomy-aligned revenues, falling under category 5.5, which covers the collection and transport of non-hazardous waste. To categorise revenues to taxonomy-aligned reve- nues, BEWI identifies revenues directly linked to each activity through revenues for relevant products and services. Taxonomy-aligned CAPEX Taxonomy-aligned CAPEX comprises investments in intangible and tangible fixed assets, and the capitalisation of lease contracts as right-of-use assets. The investments must be directly related to the sales and/ or production of the taxonomy-aligned activities identified, either already existing or planned. A CAPEX KPI in per cent is calculated by putting the taxonomy-aligned CAPEX in relation to total acquisitions of intangible and tangible fixed assets for the group, plus the amount of right-of-use assets capitalised in the group during the reporting period, as presented in note 12 and 13 to the consolidated financial statements. For 2024, BEWI’s aligned CAPEX was 37 per cent of total CAPEX, amounted to EUR 29 million, excluding discontin- ued operations. When including discontinued operations, the share was 36 per cent and the amount EUR 30 million, down from EUR 67 million in 2023. This substantial decrease is largely attributed to capitalised leases in operations performing aligned activities, specifically real estate sale and leaseback transactions, which contributed EUR 34.6 million to aligned CAPEX in 2023. The impact from sale and leaseback transactions is reflected in the CAPEX numerator since they are included in the denomi- nator for the CAPEX KPI, which encompasses both ordinary CAPEX and capitalised leases. Excluding the impact from leases, aligned CAPEX in 2024 was EUR 10 million, including discontinued operations, down from EUR 32 million in 2023. The CAPEX in 2024 was primarily driven by investments in the Insulation & Construction segment. The decline was mainly due to reduced activity in the building and construction industry. Taxonomy-aligned OPEX Taxonomy-aligned OPEX activities correspond to costs related to research and development, renovation of build- ings, short-term leases, and repair and maintenance. These costs must be directly related to the sales and/or production of the taxonomy-aligned activities identified, either already existing or planned to be operational within 18 months. If the costs cannot be reliably measured or adequately identified as attributable to the taxonomy-aligned activities, they are excluded from the calculation. An OPEX KPI in per cent is calculated by putting the taxonomy-aligned OPEX in relation to total consolidated costs for research and develop- ment, renovation of buildings, short-term leases, and repair and maintenance, but only to the extent that such OPEX can be reliably and adequately measured. Calculating the OPEX KPI entails a number of estimations and assessments, especially with respect to the denominator. It has only been possible to reliably measure aligned and eligible OPEX for certain repair and maintenance work performed by external parties in operations conducting eligible activities. It has not been feasible to accurately calculate the costs for own employees performing repair and maintenance work specifically related to eligible activities. Consequently, only a limited portion of eligible OPEX has been identified. However, the denominator also accounts for a small portion of the total OPEX for the group. Excluding discontinued operations, a total of EUR 17 million was identified as aligned OPEX, corresponding to 84 per cent of the total costs for the group within this cat- egory. Including discontinued operations, the amount of aligned OPEX was EUR 19 million, corresponding to 76 per cent of the total costs for the group within this category. Taxonomy Operation Clean Sweep Taxonomy Operation Clean Sweep Taxonomy Operation Clean Sweep 52% Taxonomy-aligned revenue 37% Taxonomy-aligned CAPEX 84% Taxonomy-aligned OPEX 8989Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Compliance with criteria for Do No Significant Harm (DNSH) BEWI has assessed and documented compliance with the Do No Significant Harm (DNSH) criteria in accordance with the Climate Delegated Act. Activities are only reported as taxonomy-aligned when BEWI can demonstrate full compliance with all applicable DNSH criteria. Environmental objective Reference Generic and spesific requirements Disclosure in topical chapters Alignment Climate change mitigation - - Climate change adaptation Appendix A Activities have been assessed for generic criteria’s in Appendix A. Assets resilience towards different chronic and extreme climate hazards is assessed in line with criteria (a). For production facilities where physical climate risks have been identified, adaptation plans are being developed in line with criteria (b) and (c). All production facilities with eligible activities are assessed as aligned. E1: Climate change  Sustainable use and protection of water and marine resources Appendix B Taxonomy eligible activities have been assessed for significant impacts on water bodies, focusing on water quality and water stress, in accordance with the generic criteria out- lined in Appendix B. Where applicable, BEWI has implemented appropriate management systems, such as ISO 14001, to mitigate potential negative impacts. All production facilities with eligible activities are assessed as aligned.  The transition to a circular economy - Significant efforts are dedicated to enhancing resource efficiency though initiative such as design for recycling, improving energy efficiency, increasing durability and promoting reuse and recycling. Through its circular business segment, BEWI collects waste for reuse and recycling, enabling the use of mechanically recycled raw materials and substantially reducing waste generation. Consequently, all eligible activities have been assessed as aligned with the specific requirements outlined for activity 3.5 and 3.18 under the climate mitigation framework. E5: Resource use and circular economy  Pollution prevention and control Appendix C Eligible activities have been assessed with criteria outlined in Appendix C. None of the sub- stances listed in the criteria are used in BEWI’s production. Emissions are within or lower than the mission levels associated with the best available techniques (BAT-AEL) ranges set out in best available techniques (BAT) conclusions under Directive 2010/75/EU including a) BREF to produce Polymers b) BAT conclusions for common wastewater and waste gas treatment systems in the chemical sector. Products manufactured from plastic materials in primary form (activities 3.5, 3.17 and 3.18) are within or lower than the emissions levels with BAT-AEL. The specific requirements for activities 5.5 and 5.9 under the topic climate mitigation, as well as 1.1, 2.3 and 2.7 under the circular economy framework, are fulfilled through the imple- mentation of Operation Clean Sweep management system and ISO 14001. Additionally, BEWI’s chemical production facilities are legally required to conduct Environmental Impact Assessments, ensuring that potential pollution impacts are prevented, mitigated, and addressed. All production facilities with eligible activities are assessed as aligned. E2: Pollution  The protection and restoration of biodiversity and ecoystems Appendix D Eligible activities have been evaluated for the proximity of production facilities to biodi- versity-sensitive areas in accordance with Directive 2011/92/EU. Additionally, the first two stages of the LEAP approach, as outlined in the TNFD framework, were applied to assess these activities. The evaluation concluded that none of the eligible activities have a mate- rial impact on biodiversity or ecosystems. As a result, all eligible activities are considered aligned with the criteria specified in Appendix D. E2: Pollution  9090Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Minimimum social safeguard Reference Generic requirements Disclosure in topical chapters Alignment Human Rights (including labour and consumer rights) Article 18 BEWI has implemented due diligence systems aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. All eligible activities have been assessed as aligned with the requirements outlined in Article 18. S1: Own workforce S2: Workers in value chain  Bribery, bribe solicitation and extortion Article 18 BEWI has developed and implemented internal controls, ethics policies, and compliance programs to prevent and detect bribery, in alignment with the OECD Guidelines. The internal ethics policies include guidelines, practical examples and approval schemes, and annual trainings are conducted to ensure awareness and compliance amongst employ- ees. Neither BEWI nor its senior management has been convicted of bribery. All eligible activities have been assessed as aligned. G1: Business conduct  Taxation Article 18 BEWI complies with tax laws and regulations in all countries where it operates. Tax governance and compliance are integral to daily operations, with tax risk management serving as a core element to ensure thorough identification and evaluation of potential risks. This includes the use of local tax consultants to comply with local tax legislation and to identify potential tax risks that could have both a local and a group-wide impact, but also the co-operation with tax advisors from global consultancy firms at group level to, inter alia, ensure adherence to OECD’s transfer pricing guidelines and OECD’s Pillar II regulations as implemented in the EU’s GloBE Directive. All eligible activities have been assessed as aligned.  Fair competition Article 18 BEWI has established systems to promote employee awareness and provide training for senior management on competition-related issues. In addition, BEWI has implemented mandatory guidelines and annual trainings to ensure awareness and compliant market conduct amongst employees. The company has had no breaches of anti-competition laws and it's eligible activities are assessed as aligned.  Compliance with criteria for Minimum Safeguard An assessment of the Minimum Safeguard criteria in Article 18 has been carried out to ensure compli- ance with the requirements specified in this article. Activities are considered taxonomy-aligned only when BEWI can demonstrate full compliance with all applicable minimum safeguard criteria. 9191Sustainability statements | EnvironmentSustainability statements | Environment 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Social S1 Own workforce 93 S2 Workers in the value chain 99 Alignment with the Norwegian Transparency Act 104 9292Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 S1 Own workforce Health and safety Material impacts, risks, and opportunities BEWI’s employees are the group’s most valuable resource and are thus important for the group’s growth and development. As a manufacturer of raw materials and products, BEWI’s operations involve inherent health and safety risks associated with the use of heavy equipment. Recognising these risks, BEWI is committed to ensuring a safe and secure work environment for all workers, including permanent employees, temporary staff, agency workers, and contractors which the company directly or indirectly controls with more than 50 per cent of the shares. Policies related to health and safety BEWI’s Code of Conduct and health and safety policy outlines BEWI’s commitment and minimum requirements for ensuring a safe and healthy work environment. These policies apply to all employees, including part-time, non-permanent, and temporary staff. Local managers are responsible for implementing and overseeing the policies within their respective areas. The Chief Human Resource Officer oversees the overall compliance and effectiveness of the policy, which is reviewed and approved annually by the executive management to ensure alignment with best practices in health and safety. Processes for managing health and safety BEWI’s health and safety management system is built on due diligence and supported by ISO 9001, ISO 14001 and ISO 45001 certifications. The system focuses on systematic risk reduction, and personnel training. All injuries and incidents are investigated to identify root causes, and lessons learned are shared across production facilities to prevent recurrence. In highly regulated environments, such as chemical production facilities, workers receive training pro- grammes tailored to their roles. Additionally, regular introduction training sessions are conducted in compliance with local legislation and site-specific standards. As of 31 December 2024, BEWI operated three chemical production facilities. A health and safety committee, chaired by the Chief Human Resource Officer and comprising representatives from operational functions, con- venes quarterly. Additionally, quarterly meetings are held with health and safety representatives from local business units. The committee monitors and addresses workplace accidents and lost time due to such incidents, ensuring continuous improvement in safety practices. In 2024, BEWI conducted quarterly health and safety campaigns aimed at raising awareness of potential risks. These campaigns also provided local teams with tools and guidance to foster a strong, proactive culture of health and safety across all levels of the company. BEWI measures the development of acci- dents and sick leave due to accidents as frequency rate and severity rate respectively. . Targets related to health and safety BEWI’s long-term goal is to achieve zero workplace accidents. To reach this target, the group has set interim objectives focused on the continuous reduc- tion of accident frequency and severity rates by 2030, as detailed in note 12 Employee training and development Material impacts, risks, and opportunities Employee training and development are essential for BEWI to ensure that employees have the skills and knowledge to meet business needs and adapt to future challenges. This enables the company to achieve its strategic priorities and maintain long-term success. Policies related to employee training and development BEWI’s Code of Conduct and human resource policy underscores the company’s commitment to employee training and development and cover the same scope and governance as described under health and safety. Actions related to employee training and development All employees are required to participate in an annual Performance and Development Dialogue (PDD), during which an individual development plan is created to ensure they possess the necessary skills and competencies to align with BEWI’s business 9393Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 needs. The outcomes of these discussions are consolidated and provide input to the annual talent review process, which includes succession planning for key positions and nominations for leadership and development programs. BEWI Business School plays a key role in developing people and leadership within the group. Currently, the Business School encompasses two programmes: a growth programme and a senior leadership pro- gramme. The growth programme is a nine-month talent development initiative combining classroom and digital training. It aims to prepare employees for the next step in their careers, by building networks, and deepening understandings of BEWI’s business, and applies BEWI’s leadership framework (“leading busi- ness, leading people, leading myself”). The senior leadership programme is also based on the leadership framework and is designed for leaders who manage other leaders. It consists of three key modules aimed at enhancing leadership skills and organisational effectiveness. In February 2024, BEWI launched a digital recruitment platform to expand its candidate reach and ensure that all positions are accessible to internal candidates, sup- porting career development within the organisation. BEWI conducts an annual employee survey called BE heard The survey assesses employee motivation, engagement, and the effectiveness of leadership within the company. The results are used to guide the group’s priorities and actions, with specific targets set for continuous improvement. Targets related to training and development Learning and development, with a focus on lead- ership, is a priority for BEWI. By aligning individual development plans with both employee aspirations and business objectives, BEWI aims to foster a high-performance culture that enhances career satisfaction and supports long-term business success. The annual employee engagement survey, includes an index for learning and development, in which the group has set a voluntary target to have an index of at least 80 in 2030. 1 the International Bill of Human Rights and the International Labour Organization (ILO) Declaration of Fundamental Principles and Rights at Work 9494Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Diversity and equal opportunities Material impacts, risks and opportunities In addition to securing a safe working environment, BEWI has a responsibility to ensure an inclusive working environment. By embedding diversity, equal- ity, and inclusion into its core culture, the group aims to build a dynamic and resilient organisation, which is essential for attracting and retaining top talent, enhancing team performance, and aligning with the values of its stakeholders. Policies related to diversity, equality and inclusion BEWI’s Code of Conduct and human resource policy outline the group’s commitment to upholding human rights, diversity and inclusion. The policies are aligned with international human and labour rights standards 1, and includes protection against harass- ment and discrimination, freedom of association, the prevention of human trafficking, forced labour, child labour, and the provision of minimum wages, among other essential areas. All employees, particularly those in management positions are responsible for uphold- ing these principles in their daily work. Actions related to diversity, equality and inclusion BEWI’s operations are guided by the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. The group is dedicated to fostering a diverse, equitable, and inclusive workplace where every employee feels valued and empowered to contribute to the organi- sation’s success. Through BEWI’s annual BE heard survey, the company assesses employee perspectives on topics related to Diversity, Equity, and Inclusion (DEI). The goal is to proactively address DEI issues, drive organisational initiatives, and support continuous improvement. Being a diverse workplace and providing equal opportunities for all employees is considered important in attracting and retaining diverse talents. BEWI includes awareness dates in the yearly calen- dar to educate and promote visibility, such as the International Women’s Day, pride month, and mental health awareness week. In 2024, the group started up the “walk and talk” program, which encourages activity, collaboration and inclusion for all employees. In addition, BEWI conducts an annual salient human rights assessment to identify areas for improvement in its human rights practices, including diversity, equality, and inclusion efforts. Based on the findings, BEWI develops targeted action plans to address any identified gaps, ensuring continuous progress and alignment with industry best practices in human rights and workplace equality. Processes to remediate negative impacts and channels to rise concerns BEWI employees are encouraged to raise any con- cerns or issues they may have through their direct line of management or local HR teams. BEWI also provides a whistle-blower channel, securing an anonymous channel designed to give employees the confidence to report concerns without fear of retaliation, ensuring that all issues are taken seriously and handled with the utmost discretion. More information about the processes linked to the group’s whistle-blowing system is included in the G1 Business conduct section. Targets related to diversity, equality and inclusion BEWI targets a gender mix for managers of 30 per cent women and 70 per cent men. As per the end of 2024, the group’s executive management team comprised of two women and four men, while the board comprised of three women and three men. 9595Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Notes to S1 Own workforce Note 10 Characteristics of employees Reporting principles Data is sourced from each BEWI’s payroll systems and integrated into BEWI’s sustainability reporting system on a monthly basis. Headcount is defined as the total number of employees working in the BEWI organisation regardless of whether they are full- time or part-time. Full-time equivalent (FTE) is defined as the actual contractual hours available according to the organisation’s standard working hours. Overtime is not included when reporting FTE. Headcount and FTE data is based on reporting period December. Additional information about average employee numbers and remuneration is disclosed in the remuneration report. There are no substantial uncertainties associated with the reported data. Table 10.1 Total FTE and headcount characteristics Male Female Total Headcount permanent 2 294 696 2 990 Headcount temporary 177 72 249 Headcount hired 209 71 280 Total headcount 2680 839 3 519 Total FTE 2 562.2 748.5 3 310.7 Continued operations Total headcount 2417.6 778 3 196 Total FTE 2 311.0 696.2 3 007.3 Discontinued operations Total headcount 262.4 61 323 Total FTE 251.2 52.3 303.4 The table presents BEWI’s total full-time equivalent (FTE) and headcount characteristics, broken down by gender and employment type. BEWI have a predominantly male workforce with 76 per cent male employees and 24 per cent female employees. 85 per cent are permenent emplyees while 15 per cent are temporary and hired employees. Table 10.2 Headcount by country Country Total employees Netherlands 621 Germany 567 Norway 403 Other 1 928 Total 3 519 The table shows countries representing at least 10 per cent of the company’s total number of employees. Table 10.3 Number of employees who have left the company during the year Country Total Number of employees who left the company during the year 548 Percentage of employee turnover 16% BEWI’s employee turnover rate for the year stands at 16 per cent, with 548 employees leaving the company. 9696Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 11 Employee diversity Reporting principles Executive management is defined as members of BEWI’s Executive Committee (ExCom). Gender pay gap is calculated as ((average gross male monthly pay - average gross female monthly pay)/average gross male monthly pay) x 100). Annual total remuneration ratio is calculated as the ratio of the highes paid individual including bonuses to the median annula total remuneration for all employees, excluding the highest-paid individual. The basis for reporting is monthly salaries for all employees employed at year-end. Employees with hourly salaries has been recalculated to monthly salaries based on country specific monthly working hours. Approximately 5 percent of the total employees have been distributed across age groups based on the overall distribution, as it has not been possible to obtain the necessary data. Table 11.1 Executive management gender Male Female Executive management, headcount 4 2 Executive management, % 67% 33% Table 11.2 Employees by age Total number Headcount under 30 years old 513 Headcount between 30 and 50 years old 1 652 Headcount over 50 years old 1 354 Total 3 519 The split between male and female members of the executive management are 33 per cent female and 67 per cent male. As of the end of 2024, BEWI’s workforce comprised 24 per cent women and 76 per cent men. Among management positions, 19 per cent were held by women and 81 per cent by men. The gender pay gap in BEWI is 85 per cent, while the annual total remuneration ratio is 7.92. Note 12 Health and safety Reporting principles Data is sourced from BEWI’s health and safety management systems (HSM) and integrated into BEWI’s sustainability reporting system. Frequency is calculated as ((Number of accidents * 200.000) / (number of working hours)). Severity is calculated as ((Number of lost days due to accidents *200.000)/(Number of working hours)). There are no substantial uncertainties associated with the reported data. Table 12.1 Health and safety 2024 Target 2030 Percentage of people in own workforce who are covered by HSM system based on legal requirements and (or) recognised standards or guidelines 87% Number of fatalities in own workforce as result of work-related injuries and work-related ill health 0 Number of fatalities as result of work-related injuries and work-related ill health of other workers working on BEWI's sites 0 Number of recordable work-related accidents for own workforce 74 Rate of recordable work-related accidents for own workforce 2.25 1 Number of cases of recordable work-related ill health of employees 2 Severity rate 24.24 <13 Number of days lost to work-related injuries and fatalities from work-related accidents, work- related ill health and fatalities from ill health related to employees 796 BEWI has a work-related accidents rate of 2.25 and a severity rate of 24.24, which both are above the 2030 targets. 9797Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Note 13 Incident, complaints and severe human rights impacts Reporting principles Data is obtained from BEWI’s sustainability system and the whistleblower channel, while risk assessment is conducted through the HR due diligence process. There are no substantial uncertainties associated with the reported data. Table 13.1 Incident, complaints and severe human rights impacts Incidents 2024 Number of incidents of discrimination 1 Number of complaints filed through channels for people in own workforce to raise concerns 1 Number of complaints filed to National Contact Points for OECD Multinational Enterprises 0 Amount of fines, penalties, and compensation for damages as result of incidents of discrimination, including harassment and complaints filed 0 Number of severe human rights issues and incidents connected to own workforce 0 Number of severe human rights issues and incidents connected to own workforce that are cases of non-respect of UN Guiding Principles and OECD Guidelines for Multinational Enterprises 0 Amount of fines, penalties, and compensation for severe human rights issues and incidents connected to own workforce 0 In 2024, BEWI recorded one discrimination incident and one workforce complaint, neither of which resulted in fines or penalties. Both cases were addressed in accordance with the company’s internal policies and procedures to ensure fair and appropriate resolution. Additionally, no severe human rights violations were reported during the year. 9898Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 S2 Workers in the value chain Material impacts, risks, and opportunities BEWI collaborates with more than 10 000 suppliers across 37 countries. While the group maintains strong oversight of its immediate suppliers, visibility into tier 2 and tier 3 suppliers remains limited. This lack of transparency, combined with the scale of opera- tions, inherently increases the risk of human rights breaches, ranging from minor to severe violations. The majority of BEWI’s suppliers are based in Europe, with 98 per cent of total spending tied to long-term relationships. Raw materials and logistics suppliers represent a substantial proportion of the group’s procurement spend (64 per cent), making these sectors a strategic priority. Through its human rights due diligence processes, BEWI has identified salient human rights risks within its value chain: Working conditions: The risk of poor working condi- tions is high in the logistics sector, where demands for flexibility can lead to wage pressures and degraded working conditions. Issues such as inad- equate rest periods, insufficient overtime pay, and limited access to proper facilities are prevalent con- cerns. The group closely monitors its top providers. Limited visibility into lower-tier’s presents potential violations on human rights. Health and safety: Beyond tier 1 suppliers, health and safety concerns are a potential risk, particularly in the chemical and waste sectors. These industries often involve hazardous materials and exposure to toxic substances which heighten the likelihood of accidents, injuries and long-term health issues for workers. These salient human rights issues are critical for BEWI given its operations and reliance on raw materials and logistics. Ensuring stringent health and safety standards and working conditions across its supply chain are essential to safeguarding workers and aligning with ethical standards. BEWI’s scope extends beyond direct suppliers to include lower-tier’s, as well as on-site workers not directly employed by BEWI but potentially affected by its operations. Workers engaged in joint ventures are included in the reporting of the majority-owned companies. Policies related to workers in the value chain BEWI’s Supplier Code of Conduct outlines the minimum requirements for its suppliers and is rein- forced through contractual commitments. The code is aligned with international standards 1 and includes: • Commitment to human rights and decent working conditions: Ensuring respect for fundamental rights and providing safe, fair and equitable working conditions • Human rights due diligence: requiring suppliers to conduct due diligence within their operations, supply chains and subcontractors’ relationships • Business ethics: addressing anti-corruption, data protection, fair competition, conflicts of interest, import/export controls and economic sanctions • Grievance mechanisms: mandating the establish- ment of accessible channels for workers, rights holders and stakeholders to rise concerns. Failure to comply with the code may result in con- tract termination. BEWI always seeks to collaborate with its suppliers to improve their performance through dialogue and knowledge sharing. 1 UN Guiding Principles on Business and Human Rights, the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, the International Bill of Human Rights, and the core conventions of the International Labor Organisation (ILO). 9999Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 The code is reviewed annually by the group’s Procurement Director to ensure alignment with relevant regulations. The Procurement Director also oversees efforts, monitors progress and ensures the implementation of due diligence procedures. Managing directors are responsible for enforcing these policies and procedures within their respective organisations. BEWI organises human rights trainings to enhance awareness and ensure compliance with its policies. Further details on governance and management of these policies are described in the Governance section. Processes for engaging with value chain workers about impacts BEWI works to mitigate potential negative impacts, enhance supply chain resilience, and contribute to good working conditions in its value chain. To achieve this, the group has established a due dili- gence process 1 to engage with business partners and suppliers to identify potential human rights violations in the value chain. Salient human rights assessments An assessment is conducted annually to identify and prioritise salient human rights issues, involving: • Data collection: leveraging internal audits, sup- plier self-assessments, industry reports and NGO insights. • Evaluation: an internal expert assesses each identified issue for severity (scale, scope, and irremediable nature of potential impacts) and likelihood (the probability of occurrence). • Prioritisation: issues are ranked based on their assessed severity and likelihood, ensuring focus on the most pressing concerns. • Action planning: Tailored action plans are devel- oped for each salient issue, with measures to mitigate risks and address root causes. Key perfor- mance Indicators (KPIs) are established to monitor and track progress. • Continuous improvement: regular reviews ensure the effectiveness of implemented actions and allow for adjustment in response to new risks or changing conditions. By embedding these assessments into its operational processes, BEWI strengthens its ability to proactively manage human rights risks and enhance accountabil- ity across its value chain. Due diligence of customers and business partners BEWI assesses new business partners before signing contracts. To ensure compliance with regulations regarding sanctions and restrictions, the group regularly screens its list of customers and business partners. This process includes: • Screening against sanction lists: Systematic review of potential and existing partners against interna- tional sanctions databases. • Risk categorisation: Categorising partners based on risk profile, considering geographic location, industry, and past compliance history. • Ongoing monitoring: Periodic re-assessments of existing business partners to identify emerging risks and ensure alignment with ethical and legal standards. For any identified risks, BEWI develops tailored engagement plans to address concerns, which may include targeted audits, increased reporting requirements, or, if necessary, termina- tion of the business relationship. Due diligence of suppliers BEWI evaluates suppliers to ensure alignment with its Supplier Code of Conduct. The framework is designed to identify, assess and mitigate potential human rights risks within its supply chain while promoting account- ability and continuous improvement among suppliers. The process includes: • Annual desktop assessment: Review of direct sup- pliers, assessing severity and likelihood of human rights impacts based on spend, sector, country, and the group’s salient human rights issues. • Supplier screening: Suppliers identified as medium or high-risk in the desktop assessment are regis- tered in BEWI Partner, the group’s digital supplier assessment platform. These suppliers complete a self-assessment questionnaire covering, supply chain management, human and labour rights, health and safety, business ethics, and environmen- tal practices. Based on the responses, a risk analysis determines necessary actions to ensure compliance with BEWI’s Supplier Code of Conduct and whether tier 2 suppliers require additional screening. 1 Aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. 100100Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 • Engagement and follow-up: If further actions are needed, BEWI collaborates with suppliers to develop engagement plans with timelines for improvements. Follow-up questionnaires are issued within a year to monitor progress and address any remaining concerns. Audits High-risk suppliers may also be subject to internal or external audits to verify compliance and resolve critical concerns. This structured approach enables BEWI to effectively manage supplier-related risks and uphold its commit- ment to responsible sourcing. Processes to remediate negative impacts and channels to raising concerns BEWI addresses concerns and grievances within its value chain through a framework grounded in trans- parency, trust and effective remediations. The group ensures that its responses are proportionate and tailored to the specific grievance raised. Whistleblowing channel To facilitate the reporting of concerns, BEWI provides a whistleblowing channel accessible at the group’s website and supplier platform. The channel is monitored by an independent third party to ensure impartiality and confidentiality in handling reports. Remediation framework BEWI uses a structured remediation framework designed to promptly investigate and resolve griev- ances. When adverse impact is identified, the group collaborates with stakeholders to provide or facilitate appropriate remedies, ensuring responses are pro- portionate to the specific grievances. Figure showing BEWI’s due diligence approach to workers in the value chain. 1 SAQ = Self-assessment questionnaire 2 SCoC = Supplier Code of Conduct 3 HRDD = Human rights due diligence Initial risk- based supplier desktop assessment of all suppliers: • Spend • Direct/indirect procurement • Sector/industry • Location • Experience Approved supplier for BEWI Approved w/o remark New screening 3 years Approved w/remark Alert w/ action plan New screening 1 year NOT Approved supplier for BEWI Low Risk Low spend - Indirect procurement - Low risk based on sector, industry and location - Sustainability performance rating Medium Risk Direct procurement - Critical supplies or services - Downstream - Risk based on sector, industry and location -Non-EU Tier 2 - High Risk Identified and prioritized according to HRDD 3 - Downstream - Upstream - Risk based on sector, industry and location - SAQ 1 in BEWI Partner Supplier sign BEWIS SCoC 2 Corrective Measures - Action Plan - Supplier meeting/visits - Audit Risk Analysis in BEWI Partner Risk Analysis in BEWI Partner SAQ 1 in BEWI Partner Supplier sign BEWIS SCoC 2 101101Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Acting on material impacts and approaches to managing risks and opportunities BEWI monitors progress on material impacts through monthly and annual reports, including tracking the number of suppliers assessed and audited. Business segments are responsible for overseeing its action plans to ensure robust processes are in place to address impacts and to evaluate the effectiveness of implemented actions. Key actions and results in 2024: Facilities for drivers: A thorough mapping of all BEWI’s facilities was conducted to assess the availability of on-site facilities for drivers both during and after business hours. While significant progress was made, the process remains incomplete, requiring further work to ensure a comprehensive evaluation of all locations. Additional efforts will focus on addressing any gaps and securing adequate facilities to support drivers’ needs across all sites. Supplier risk assessment: In 2024, 55 per cent of suppliers identified as medium- and high-risk were assessed, accounting for 76 per cent of total spend. All assessed suppliers met the necessary require- ments, and none were disqualified due to high risk. Increased supplier engagement and audits: In 2024, the number of supplier visits increased, culminating in 10 audits focusing on working conditions, environ- mental practices, and living conditions. Key findings related to health and safety, as well as transparency, led to the development of targeted action plans aimed at improving workplace safety and preventing incidents. An initial screening at one site highlighted the need for further assessment in 2025 to ensure transparency and compliance across tier 2 suppliers. Compliance with international guidelines: In 2024, there were no reported incidents of non-compliance with UN, ILO, or OECD guidelines in BEWI’s upstream or downstream value chain. Furthermore, no supplier terminations or significant human rights issues required remediation. Cost implications: No capital expenditure (CAPEX) or operational expenditure (OPEX) were identified for addressing material impacts during 2024. BEWI remains committed to ongoing assessments, regular follow-ups, and collaborative reporting to manage and mitigate risks effectively. The group’s continuous improvement efforts aim to strengthen its value chain while adhering to international human rights and sustainability standards. Targets and metrics related to workers in the value chain BEWI is committed to upholding its ethical standards and ensuring transparency throughout its supply chain. To achieve this, the group has established Key Performance Indicators (KPIs) with voluntary targets that are regularly monitored to track progress and ensure compliance with its due diligence procedures. BEWI has not directly involved workers in the value chain when setting targets, primarily due to a lack of established processes for engaging with workers at various levels of the supply chain. The compa- ny’s focus has instead been on ensuring that due diligence procedures are followed and effectively implemented throughout its operations. The targets include: • 100% screened in BEWI Partner BEWI aims to have all medium and high-risk suppli- ers registered and assessed through BEWI Partner, the group’s digital supplier assessment platform, to ensure visibility and evaluation of supplier practices, enabling proactive identification and mitigation of risks and opportunities. • 100% high-risk suppliers audited Suppliers identified as high-risk are subject to detailed audits to assess compliance with BEWI’s standards and international guidelines. The audits focus on areas such as working conditions, health and safety, and environmental practices. Findings from the audits drive action plans to address defi- ciencies and promote continuous improvement. 102102Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Notes to S2 Workers in the value chain Note 14 Workers in the value chain Reporting principles Number of suppliers and supplier spend are based on a summary of each business unit’s (BU) supplier list for 2024, covering the period January to September. Total number of suppliers is determined by supplier identity. A single supplier to BEWI may constitute multiple suppliers if BEWI has purchased from multiple BU’s from the same supplier. Group suppliers (agreement at Group level for multiple BU’s) are consolidated to provide the best possible view of total spend in the different supplier spend categories. The initial screening of the supplier list is based on a desktop analysis by BEWI’s business segments. Given the potential for subjective conclusions, there may be some uncertainty associated with this data. However, no substantial uncertainties have been identified, and the data is deemed to be at an acceptable level. Data from supplier assessment is derived from supplier assessment platform, BEWI Partner. The number of suppliers screened includes both approved suppliers (with minimal or no remarks) and non-approved suppliers. Per cent of suppliers screened in BEWI Partner includes medium and high-risk suppliers identified in the initial screening. Per cent of suppliers audited is based on suppliers identified as high-risk. Table 14.1 Total spend on suppliers by category Company specific Spend categories Share of suppliers Share of spend > 10 000 000 EUR 0.06% 34% 1 000 000 - 10 000 000 EUR 1% 30% 100 000 - 1 000 000 EUR 7% 24% < 100 000 92% 12% Total number of suppliers 100% 100% BEWI collaborates with approximately 10 000 suppliers, but procurement spending is highly concentrated among a smaller group. Just 8 per cent of these suppliers account for 88 per cent of the total procurement spend, highlighting their strategic importance. In contrast, the remaining 92 per cent of suppliers collectively contribute only 12 per cent of the spend, reflecting a long tail of smaller or more specialized suppliers. Table 14.2 Supplier due diligence Company specific Identification of risk % of suppliers % screened -number % screened -spend Target 2030 Audited High Risk Suppliers Target 2030 Low-risk suppliers 90% 0% 0 Medium-risk suppliers 10% 54% 76% 100% High-risk suppliers 0.4% 81% 79% 100% 28% 100% 10 per cent of BEWI’s suppliers have been identified as medium and high-risk suppliers, making them subject to thorough supplier assessments. In 2024, 76 per cent of medium-risk suppliers and 79 per cent of high-risk suppliers underwent these assessments. Additionally, 28 per cent of high-risk suppliers have been audited as part of this process. 103103Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Alignment with the Norwegian Transparency Act The Act shall promote enterprises’ respect for fundamental human rights and decent working conditions in connection with the production of goods and services and ensure the general public access to information regarding how enter- prises address adverse impacts on fundamental human rights and decent working conditions. According to the Act BEWI shall carry out due diligence in accordance with the OECD Guidelines for Multinational Enterprises. Description of disclosures Page a) General description of BEWI’s organisation, operating area, guidelines and routines for handling actual and potential negative consequences for basic human rights and decent working conditions. p. 9-18, 93-95, 99-101 b) Information regarding actual adverse impacts and significant risks of adverse impacts that BEWI has identified through its due diligence. p. 93, 95, 99 c) Information regarding measures that BEWI has implemented or plans to implement to cease actual adverse impacts or mitigate significant risks of adverse impacts, and the results or expected results of these measures. p. 93-98, 102-103 104104Sustainability statements | SocialSustainability statements | Social 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Governance G1 Business conduct 106 105105Sustainability statements | GovernanceSustainability statements | Governance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 G1 Business conduct Material impacts, risks and opportunities A strong corporate culture and ethical conduct are crucial to BEWI’s reputation, operations, and stakeholder relationships. With growing regulatory scrutiny on environmental impact, labor, and supply chains, ethical practices help mitigate risks like fines and litigation. Whistleblower protections are essential for transpar- ency and integrity. Reporting misconduct can be challenging, and BEWI’s treatment of whistleblowers directly impacts trust and accountability. Role of administrative, management and supervisory bodies The board has the overall responsibility for ensuring a high standard of business conduct. The board has adopted a Code of Conduct, an anti-corruption policy, a sanction policy and a privacy policy to establish its expectations on how business shall be conducted within BEWI. The executive management of BEWI has, furthermore, adopted a gift and event policy and a competition law compliance policy outlining in more detail how to ensure compliance with the policies adopted by the board. On the basis of trainings and general applicable working experience the administrative -, manage- ment-, and supervisory bodies of BEWI are well experienced and knowledgeable in the area of business conduct matters. BEWI’s Chief Legal Officer is responsible for the overall implementation of relevant policies on group level and to ensure awareness of the content of the policies by the board and the managing directors of the group. Each managing director of BEWI is responsible for the implementation of the polices adopted in BEWI in his or her organisation through appropriate systems, processes and procedures and to inform all pertinent persons within his/her organisation of the contents of such policies. Each managing director is requested to confirm in writing to BEWI’s Chief Legal Officer that he or she has: • received and is aware of that the relevant policies exist • read and understood the contents of the relevant policies • informed all relevant persons within its organisation of the contents of the relevant policies and have received a confirmation from each such person that such person is aware of that the relevant policies exists and acknowledge that it has read and under- stood the contents of the relevant policies Each managing director is also requested to confirm in writing to BEWI’s Chief Legal Officer that appro- priate processes have been implemented in its organisation for compliance with the relevant policies. How BEWI establishes, develops and promotes its corporate culture Unethical business conduct is not only contrary to BEWI’s fundamental values but could also have serious consequences in the form of significant fines, sanction fees, extensive damages claim, exclusion from public procurement, trade prohibitions, as well as harming BEWI’s reputation, competitiveness and business relations. To identify material impacts, risks and opportunities in relation to business conduct matters, BEWI use the annual double materiality assessment to identify material matters. Risk assessments in relation to BEWI’s objectives which include identification of risks, evaluation of probability and impact, as well as appropriate response to mitigate unwanted risks, are performed on all levels within BEWI’s organisation and is further described on in the Governance section. BEWI’s “bottom-up” approach means that all divi- sions and group functions are responsible for their respective risks and identified actions. Risks should be timely and transparently disclosed as part of operational work, projects and reporting to ensure that risks connected to business opportunities are adequately managed. Monitoring and support procedures help ensure that identified risks are prioritised and managed within the given mandates or escalated. 106106Sustainability statements | GovernanceSustainability statements | Governance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Policies related to business conduct and corporate culture BEWI’s Code of Conduct, anti-corruption policy, sanc- tion policy and privacy policy are available on BEWI’s website. All policies are available on BEWI’s intranet. BEWI’s Code of Conduct is provided in English and translated to the local languages of the jurisdic- tions where the general knowledge of the English language is only considered moderate. All other business conduct policies are currently provided in the English language. The intention is to translate at least the anti-corruption policy to the local languages of the jurisdictions where the general knowledge of the English language is considered only moderate. To enhance the organisation’s competency on cor- ruption and ethical business conduct, all employees deemed relevant, such as for example the executive management, the local management teams, general managers, sales and marketing employees and group functions must undergo mandatory online trainings on the topics of BEWI’s Code of Conduct, anti-corruption, competition law and GDPR as part of their onboarding process. All such employees are, furthermore, asked to re-do the trainings annually or bi-annually. The trainings contain information on the contents of the policies, as well as explain the meaning of and describes the range of the relevant restrictions and the terms set out in the policies. The trainings, furthermore, include practical examples whereby the participants are requested to answer how to act to be in compliance with the relevant policy, on the basis of provided alternatives. BEWI’s whistleblowing system BEWI’s whistleblowing channel is an essential tool for fostering a culture of transparency and accountability within the company. BEWI’s whistleblowing channel facilitates the report- ing of serious improprieties concerning potential compliance issues related to laws, regulations, and BEWI’s own policies. The whistleblowing guidelines are provided in the language of each jurisdiction where BEWI has a permanent establishment. The whistleblowing service is available to both internal and external stakeholders, through internal channels and the group’s website (as applicable). The effective- ness of this system is enhanced by its independence, as it is managed by an independent third party and notifications may be done anonymously and are kept confidential. Any reports made are initially reviewed by BEWI’s Chief Legal Officer and Chief Human Resources Officer and reported on to the chairman of the group’s audit committee. No training with respect to the whistleblowing system has been provided to BEWI’s employees or the individuals receiving the reports. In addition to the whistleblowing system, BEWI strives to ensure an organisational culture where employees dare to speak up and inform about any improprieties concerning potential compliance issues. BEWI encourages and expects leadership commitment in such regard. Reports made outside of the whistleblowing system shall be handled by management individuals not effected by or involved in such report, to ensure an objective investigation. Apart from the whistleblowing system, there are currently no documented grievance mechanism implemented by BEWI. A reminder of the whistleblowing system as well as the main contents and expectations deriving from BEWI’s business conduct related policies are provided to all employees with a group email address on a bi-annual basis. How BEWI evaluates its business conduct To ensure continuous attention to suspicious miscon- duct, the organisation is reporting on concerns raised to the group organisation monthly. The chairman of the audit committee is furthermore informed of any whistleblowing matters reported in the whistleblow- ing channel. The group is, furthermore, reporting on any number of incidents of corruption in its annual report. 107107Sustainability statements | GovernanceSustainability statements | Governance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Notes to G1 Business conduct Note 15 Business conduct Reporting principles All managers are required to complete annual training. These training sessions are delivered through BEWI’s Learning Management System (LMS). The data is extracted from the LMS, ensuring high quality and reliability. Table 15.1 Business conduct training Company specific Training coverage Managers 1 Total 545 Total receiving training 521 Delivery method and duration Computer-based training 30 minutes How often training is required Annually Topics covered Definition of corruption X Policy X Procedures on suspicion/detection X 1 Managers include executive management, division and business unit management, as well as other employees with managerial responsibilities and at-risk functions. 108108Sustainability statements | GovernanceSustainability statements | Governance 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Signatures from the board of directors and CEO The board of directors and the CEO of BEWI ASA have today considered and approved the annual report for BEWI ASA (“company”) and the BEWI group (“group”) for the period 1 January to 31 December 2024 and as of 31 December 2024. Trondheim, Norway, 26 March 2025 The board of directors and CEO of BEWI ASA Gunnar Syvertsen Chair of the Board Anne-Lise Aukner Director Rik Dobbelaere Director Andreas M. Akselsen Director Kristina Schauman Director Pernille Skarstein Director Christian Bekken CEO 109109Sustainability statements | Signatures from the board and CEOSustainability statements | Signatures from the board and CEO 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Index of the board of directors’ report The below index shows an overview of chapters/ sections of the annual report that constitutes BEWI’s board of directors’ report Regulation Content Chapter/ section reference Page reference Norwegian accounting act Section 2-2 (1) Information regarding the nature and location of the business, including information on any branch offices. Our business Our presence p. 9 p. 12 Section 2-2 (2), (3) and (4) Review of the development and results of the company’s operations and position together with a description of the key risks and uncertainty factors facing the company, hereunder also information on research and development activities. To the extent that it is necessary to understand the development, results or position of the person liable for accounting, the analysis must contain both financial and non-financial key performance indicators relevant to the business in question, including information on environmental conditions and conditions that apply to employees. Performance Our business Sustainability statements Risks and risk management p. 23 p. 9 p. 46 p. 42 Section 2-2 (5) A description that provides a basis for assessing the company’s further outlook, including whether the results for the year agree with previously stated target results and expected developments and give reason for any discrepancy. Performance p. 23 Section 2-2 (6) Information regarding any financial risk that is significant to the evaluation of the company’s assets, liabilities, financial position and results. Risks and risk management p. 42 Section 2-2 (7) Disclosure of key intangible resources, how the company's business model fundamentally depends on such resources, and how these resources serve as a source of value creation for the organisation. Our business Our strategy p. 9 p. 19 Section 2-2 (8), cfr. section 4-5 Information regarding the going concern assumption. Performance p. 23 Section 2-2 (9) Proposal for the allocation of profit or settlement of loss. Financial income statement BEWI ASA p. 114 Section 2-2 (10) Information about the work environment, along with an overview of implemented measures relevant to the working environment and including information on injuries, accidents and sick leave rates. Sustainability statements/ Social p. 92 110110Sustainability statements | Index of the board of directors’ reportSustainability statements | Index of the board of directors’ report 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Section 2-2 (11) Information on matters relating to the business, hereunder its factor inputs and products, which may result in a not insignificant impact on the external environment. The information should include any negative environmental impacts the business could have, and measures implemented or planned implemented to prevent or reduce any impacts. Our business Risks and risk management Sustainability statements p. 9 p. 42 p. 46 Section 2-2 (12) Information on whether insurances covering the board members’ and CEO’s potential liabilities towards the company and third parties are maintained, including information on the relevant insurance coverage. Appendix: Statement on corporate governance p. 200 Section 2-2 (13), 1. Shareholders information: A description of any provisions in the articles of association that restrict the right to trade in the shares of the company. Not applicable Section 2-2 (13), 2. Shareholders information: A description of who exercises the rights connected to shares in any employee share schemes where authority is not exercised directly by the employees covered by the scheme. Not applicable Section 2-2 (13), 3. Shareholders information: Any agreements between shareholders which are known to the company and which restrict the possibilities of trading in or exercising voting rights connected to the shares. Not applicable Section 2-2 (13), 4. Shareholders information: Any significant agreements to which the company is a party, the terms of which take effect, alter or terminate as a result of a takeover bid, and a description of those terms. Not applicable Section 2-4/ CSRD Sustainability reporting according to European Sustainability Reporting Standards (ESRS). Governance Sustainability statements p. 29 p. 46 Section 2-9 Report on corporate governance. Appendix: Statement on corporate governance p. 200 Norwegian companies act Section 6-16 a Statement on remuneration Governance p. 29 Section 6-16 b Remuneration report Remuneration report p. 186 111111Sustainability statements | Index of the board of directors’ reportSustainability statements | Index of the board of directors’ report 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 To the General Meeting of BEWI ASA Independent Sustainability Auditor’s Limited Assurance Report Limited Assurance Conclusion We have conducted a limited assurance engagement on the consolidated sustainability statement of BEWI ASA (the «Company») included in Sustainability statements of the Board of Directors’ report (the «Sustainability Statement»), as at 31 December 2024 and for the year then ended. Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Norwegian Accounting Act section 2-3, including: • compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the Company to identify the information reported in the Sustainability Statement (the «Process») is in accordance with the description set out in Double materiality assessment; and • compliance of the disclosures in EU taxonomy for sus- tainable activities of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the «Taxonomy Regulation»). Basis for Conclusion We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information («ISAE 3000 (Revised)»), issued by the International Auditing and Assurance Standards Board. We believe that the evidence we have obtained is suffi- cient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Sustainability Auditor’s Responsibilities section of our report. Our Independence and Quality Management We have complied with the independence and other ethical requirements as required by relevant laws and regulations in Norway and the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code), which is founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. The firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Other Matter The comparative information included in the Sustainability Statement was not subject to an assurance engagement. Our conclusion is not modified in respect of this matter. Responsibilities for the Sustainability Statement The Board of Directors and the Managing Director (Management) are responsible for designing and imple- menting a process to identify the information reported in the Sustainability Statement in accordance with the ESRS and for disclosing this Process in Double materiality assess- ment of the Sustainability Statement. This responsibility includes: • understanding the context in which the Group’s activities and business relationships take place and developing an understanding of its affected stake- holders; • the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group’s financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term; • the assessment of the materiality of the identified impacts, risks and opportunities related to sustaina- bility matters by selecting and applying appropriate thresholds; and • making assumptions that are reasonable in the circum- stances. Management is further responsible for the preparation of the Sustainability Statement, in accordance with the Norwegian Accounting Act section 2-3, including: • compliance with the ESRS; • preparing the disclosures in EU taxonomy for sus- tainable activities of the Sustainability Statement, in compliance with the Taxonomy Regulation; • designing, implementing and maintaining such internal control that Management determines is nec- essary to enable the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and • the selection and application of appropriate sustaina- bility reporting methods and making assumptions and estimates that are reasonable in the circumstances. 112112Sustainability statements | Sustainability auditor’s limited assurance reportSustainability statements | Sustainability auditor’s limited assurance report 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Inherent limitations in preparing the Sustainability Statement In reporting forward-looking information in accordance with ESRS, Management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected. Sustainability Auditor’s Responsibilities Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material mis- statement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are con- sidered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole. As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judge- ment and maintain professional scepticism throughout the engagement. Our responsibilities in respect of the Sustainability Statement, in relation to the Process, include: • Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process; • Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and • Designing and performing procedures to evaluate whether the Process is consistent with the Company’s description of its Process set out in Double materiality assessment. Our other responsibilities in respect of the Sustainability Statement include: • Identifying where material misstatements are likely to arise, whether due to fraud or error; and • Designing and performing procedures responsive to where material misstatements are likely to arise in the Sustainability Statement. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresenta- tions, or the override of internal control. Summary of the Work Performed A limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement. The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasona- ble assurance engagement been performed. The nature, timing and extent of procedures selected depend on professional judgement, including the identi- fication of disclosures where material misstatements are likely to arise in the Sustainability Statement, whether due to fraud or error. In conducting our limited assurance engagement, with respect to the Process, we: • Obtained an understanding of the Process by: – performing inquiries to understand the sources of the information used by management (e.g., stake- holder engagement, business plans and strategy documents); and – reviewing the Company’s internal documentation of its Process; and • Evaluated whether the evidence obtained from our procedures with respect to the Process implemented by the Company was consistent with the description of the Process set out in Double materiality assessment. In conducting our limited assurance engagement, with respect to the Sustainability Statement, we: • Obtained an understanding of the Group’s report- ing processes relevant to the preparation of its Sustainability Statement by: – Obtaining an understanding of the Group’s control environment, processes and information system relevant to the preparation of the Sustainability Statement, but not for the purpose of providing a conclusion on the effectiveness of the Group’s internal control; and – Obtaining an understanding of the Group’s risk assessment process; • Evaluated whether the information identified by the Process is included in the Sustainability Statement; • Evaluated whether the structure and the presentation of the Sustainability Statement is in accordance with the ESRS; • Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement; • Performed substantive assurance procedures on selected information in the Sustainability Statement; • Where applicable, compared disclosures in the Sustainability Statement with the corresponding dis- closures in the financial statements and other sections of the Board of Directors’ report; • Evaluated the methods, assumptions and data for developing estimates and forward-looking informa- tion; • Obtained an understanding of the Company’s process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement; • Evaluated whether information about the iden- tified taxonomy-eligible and taxonomy-aligned economic activities is included in the Sustainability Statement; and • Performed inquiries of relevant personnel and sub- stantive procedures on selected taxonomy disclosures included in the Sustainability Statement. Trondheim, 26 March 2025 PricewaterhouseCoopers AS Kjetil Smørdal State Authorised Public Accountant – Sustainability Auditor (This document is signed electronically) 113113Sustainability statements | Sustainability auditor’s limited assurance reportSustainability statements | Sustainability auditor’s limited assurance report 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 Financial statements The group 115 Parent company 164 Statement by the board and CEO 177 Auditor’s report 178 Alternative Performance Measures 182 114114Financial statements Financial statements 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI annual report 2024BEWI annual report 2024 The Group Consolidated statement of profit or loss 116 Consolidated statement of comprehensive income 117 Consolidated statement of financial position 118 Consolidated statement of changes in equity 120 Consolidated cash flow statement 121 Accounting principles and notes to the accounts 122 Note 01 General information 122 Note 02 Summary of key accounting principles 122 Note 03 Financial risk management 125 Note 04 Critical accounting estimates and significant judgements 131 Note 05 Net sales distribution and segment information 132 Note 06 Employee remuneration etc. 134 Note 07 Remunerations to auditors 136 Note 08 Leasing 136 Note 09 Financial income and expense 137 Note 10 Exchange differences – net 138 Note 11 Income tax 138 Note 12 Intangible assets 140 Note 13 Tangible assets 143 Note 14 Assets and liabilities of disposal group classified as held for sale 144 Note 15 Business acquisitions 146 Note 16 Shares in associates 146 Note 17 Financial instruments per category 148 Note 18 Accounts receivable 149 Note 19 Inventory 150 Note 20 Prepaid expenses and accrued income 150 Note 21 Share capital 150 Note 22 Cash flow hedge reserve 151 Note 23 Share-based incentive programme 152 Note 24 Earnings per share 154 Note 25 Borrowings 154 Note 26 Pensions and similar obligations to employees 157 Note 27 Other provisions 160 Note 28 Accrued expenses and deferred income 160 Note 29 Contingent liabilities 160 Note 30 Pledged assets 161 Note 31 Related parties 161 Note 32 Adjustments for non-cash items, etc. 163 Note 33 Subsequent events 163 115115Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Consolidated statement of profit or loss million EUR Note 2024 2023 Revenues Net sales 5 773.2 821.2 Other operating income 2.0 1.5 Total revenue 775.2 822.8 Operating expenses Raw materials and consumables 19 -300.5 -335.4 Goods for resale 19 -47.6 -38.9 Other external costs 7, 8, 10 -179.0 -199.9 Personnel costs 6 -178.6 -177.8 Depreciation/amortisation and impairment tangible and intangible assets 12, 13 -63.4 -61.4 Share of income from associated companies -2.4 1.3 Capital gain/loss from sale of asset, adjustment purchase price acquired companies and sale of business 4.7 -0.6 Total operating expenses -766.7 -812.6 Operating income (EBIT) 8.5 10.2 Financial income 3.8 5.3 Financial expense -49.1 -46.0 Financial income and expense - net 9, 10 -45.3 -40.8 Income before taxes -36.8 -30.6 Income tax 11 1.5 -0.4 Profit/loss for the period from continuing operations -35.3 -31.0 Profit/loss from discontinued operations (attributable to equity holders of the company) 14 8.3 15.4 Profit/loss for the period -27.0 -15.6 million EUR Note 2024 2023 Profit/loss for the year attributable to: Parent company shareholders -29.6 -18.0 Non-controlling interest 2.6 2.4 -27.0 -15.6 Profit/loss for the year attributable to shareholders arises from: Continuing operations -37.6 -33.1 Discontinued operations 8.0 15.1 -29.6 -18.0 Earnings per share 24 Average number of shares: 191 722 290 191 672 042 Diluted average number of shares: 191 722 290 191 672 042 Earnings per share (EPS), basic (EUR) -0.15 -0.09 Earnings per share (EPS), diluted (EUR) -0.15 -0.09 Earnings per share (EPS), basic (NOK) 1 -1.80 -1.08 Earnings per share (EPS), diluted (NOK) 1 -1.80 -1.08 1 EPS in NOK is calculated using average rates for the period 116116Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Consolidated statement of comprehensive income million EUR (except numbers for EPS) Note 2024 2023 Other comprehensive income: Items that may be reclassified to profit or loss Exchange rate differences, continuing operations 21.3 28.5 Exchange rate differences, discontinued operations 2.0 1.7 Cash flow hedges 22 -3.2 -0.1 Items that will not be reclassified to profit or loss Exchange rate difference, parent company -21.1 -27.9 Remeasurements of net pension obligations -1.3 -1.2 Income tax pertinent to remeasurements of net pension obligations 0.3 0.3 Other comprehensive income after tax -2.0 1.3 Total comprehensive income for the period -29.0 -14.3 million EUR (except numbers for EPS) Note 2024 2023 Total comprehensive income attributable to: Parent company shareholders -31.8 -17.2 Non-controlling interest 2.8 2.9 -29.0 -14.3 Total comprehensive income attributable to shareholders arises from: Continuing operations -42.0 -34.2 Discontinued operations 10.2 17.0 -31.8 -17.2 117117Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Consolidated statement of financial position million EUR Note 31 Dec 2024 31 Dec 2023 ASSETS Non-current assets Intangible assets Goodwill 205.4 244.5 Other intangible assets 125.5 142.8 Total intangible assets 12 330.9 387.3 Tangible assets Land and buildings 220.6 244.6 Plant and machinery 170.1 182.9 Equipment, tools, fixtures and fittings 22.1 22.0 Construction in progress and advance payments 6.5 35.9 Total tangible assets 13 419.4 485.3 Financial assets Shares in associates 16 9.0 11.4 Net pension assets 1.9 2.8 Receivables associates 0.0 0.0 Other receivables 0.1 0.0 Other shares and participations 0.0 0.5 Total financial assets 11.0 14.8 Deferred tax assets 11 15.0 9.8 Total non-current assets 17 776.3 897.2 million EUR Note 31 Dec 2024 31 Dec 2023 Current assets Inventory Raw material and consumables 29.8 46.0 Work-in-progress 6.7 4.8 Finished goods and goods for resale 43.1 81.9 Total inventory 19 79.6 132.6 Other current receivables Accounts receivable 18 63.2 129.3 Current tax assets 2.0 1.2 Other current receivables 15.0 11.8 Prepaid expenses and accrued income 20 21.4 14.2 Other financial assets 3 1.6 3.6 Cash and cash equivalents 36.8 63.6 Total other current receivables excluding asset classified as held for sale 17 139.9 223.6 Assets classified as held for sale 14 186.1 - Total current assets 405.7 356.2 TOTAL ASSETS 1 182.0 1 253.4 118118Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Consolidated statement of financial position million EUR Note 31 Dec 2024 31 Dec 2023 EQUITY AND LIABILITIES Equity Share capital 21 18.3 18.3 Additional paid-in capital 323.0 323.0 Reserves -16.7 -14.5 Accumulated profit (including net profit/loss for the year) 46.3 76.5 Equity attributable to parent company shareholders 370.8 403.2 Non-controlling interests 13.8 12.5 Total Equity 384.6 415.7 Liabilities Non-current liabilities Pensions and similar obligations to employees 26 1.6 2.3 Provisions 27 - 2.5 Deferred tax liability 11 47.2 53.3 Bond loan 25 249.4 247.9 Other interest-bearing liabilities 25 291.9 326.3 Other financial interest-bearing liabilities 25 0.2 0.4 Total non-current liabilities 17 590.2 632.9 million EUR Note 31 Dec 2024 31 Dec 2023 Current liabilities Other interest-bearing liabilities 25 33.4 36.6 Other financial liabilities 3 3.6 3.2 Accounts payable 47.8 81.6 Current tax liabilities 0.6 8.4 Other current liabilities 17.1 14.6 Accrued expenses and deferred income 28 52.5 60.4 Total current liabilities excluding liabilities relating to assets classified as held for sale 17 155.1 204.8 Liabilities directly associated with assets classified as held for sale 14 52.1 - Total liabilities 797.4 837.7 TOTAL EQUITY AND LIABILITIES 1 182.0 1 253.4 Trondheim, Norway, 26 March 2025 The board of directors and CEO of BEWI ASA Gunnar Syvertsen Chair of the Board Anne-Lise Aukner Director Rik Dobbelaere Director Andreas M. Akselsen Director Kristina Schauman Director Pernille Skarstein Director Christian Bekken CEO 119119Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Consolidated statement of changes in equity Retained earnings Additional (incl profit for the Non-controlling Total million EUR Share capital paid-in capital Reserves year) Total interest equity Opening balance as of 1 January 2024 18.3 323.0 -14.5 76.5 403.2 12.5 415.7 Net profit for the year - - - -29.6 -29.6 2.6 -27.0 Other comprehensive income - - -2.2 -2.2 0.2 -2.0 Total comprehensive income - - -2.2 -29.6 -31.8 2.8 -29.0 Transactions with owners, recognised directly in equity Dividend - - - - - -0.9 -0.9 Acquisition of non-controlling interest - - - - - -1.7 -1.7 Sale of non-controlling interest - - - - - 0.4 0.4 Change in non-controlling interest - - - -0.6 -0.6 0.6 0.0 Share-based incentive programme - - - 0.0 0.0 - 0.0 Total transactions with shareholders, recognised directly in equity - - - -0.6 -0.6 -1.6 -2.2 Closing balance as of 31 December 2024 18.3 323.0 -16.7 46.3 370.8 13.8 384.6 Opening balance as of 1 January 2023 18.2 322.3 -15.3 94.7 419.8 10.0 429.8 Net profit for the year - - - -18.0 -18.0 2.4 -15.6 Other comprehensive income 0.1 - 0.7 - 0.8 0.5 1.3 Total comprehensive income 0.1 - 0.7 -18.0 -17.2 2.9 -14.3 Transactions with owners, recognised directly in equity New share issue 0.0 0.7 - - 0.8 - 0.8 Dividend - - - - - -1.3 -1.3 Acquisition of non-controlling interest - - - -0.4 -0.4 -0.1 -0.4 Acquisition of business with non-controlling interest - - - - - 0.9 0.9 Share-based incentive programme - - - 0.2 0.2 - 0.2 Total transactions with shareholders, recognised directly in equity 0.0 0.7 - -0.2 0.6 -0.4 0.2 Closing balance as of 31 December 2023 18.3 323.0 -14.5 76.5 403.2 12.5 415.7 120120Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Consolidated cash flow statement million EUR Note 2024 2023 Operating cash flow Operating income (EBIT) 20.0 33.5 Of which from continuing operations 8.5 10.2 Of which from discontinued operations 11.5 23.3 Adjustments for non-cash items, etc. 32 66.5 71.6 Interest paid and financing costs -46.5 -43.1 Interest received 4.4 20.3 Income tax paid -11.5 -23.8 Operating cash flow before changes in working capital 32.8 58.5 Cash flow from working capital changes Increase/decrease in inventories 12.5 28.9 Increase/decrease in operating receivables 43.7 24.9 Increase/decrease in operating liabilities -3.8 -35.8 Cash flow from change in working capital 52.4 18.0 Cash flow from operating activities 85.2 76.5 Cash flow from investment activities Purchase of property, plant and equipment and intangible assets 12, 13 -32.5 -51.7 Acquisitions of business 15 -2.6 -0.2 Other financial investments 0.0 13.6 Disposals of property, plant and equipment 40.4 34.2 Divestment of associated companies 0.2 1.0 Cash flow from investment activities 5.5 -3.1 million EUR Note 2024 2023 Cash flow from financing activities Proceeds from borrowings 25 - 64.9 Repayment of borrowings and lease liabilities 25 -80.6 -121.1 New share issue, net of transaction costs 21 - 0.8 Dividend to non controlling interest -0.9 -1.3 Cash flow from financing activities -81.5 -56.7 Cash flow for the period 9.2 16.7 Opening cash and cash equivalents 63.6 47.5 Exchange difference in cash -0.1 -0.6 Closing cash and cash equivalents 72.7 63.6 Of which included in assets classified as held for sale 35.9 - 121121Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The group Accounting principles and notes to the accounts Note 01 General information BEWI ASA (the parent company) and its subsidiaries (together, the group) produce, market and sell packaging, components and insulation solutions. The parent company conducts its business through subsidiaries in Sweden, Finland, Denmark, Norway, Iceland, the Netherlands, Belgium, Portugal, Spain, Poland, Germany, UK, France, Lithuania, Czech Republic, Switzerland, Austria, US, Canada and through associated companies in Germany, France and Poland. The parent company is a public limited company regis- tered in Norway, with head office located in Trondheim, Norway, and address Dyre Halses gate 1A, 7042 Trondheim. BEWI ASA’s registration number is 925 437 948. The board of directors approved these consolidated accounts on 26 March for publishing on 27 March 2025. Note 02 Summary of key accounting principles The key accounting policies applied in these consolidated accounts are stated below. The policies have consistently been applied for all periods unless otherwise specified. All amounts are reported in million Euro, (million EUR), unless otherwise specified. The information in brackets concerns previous years. 2.1 Basis for preparation The consolidated accounts for the BEWI ASA group (“BEWI ASA”) have been prepared in accordance with IFRS® Accounting Standards and interpretations from the IFRS Interpretations Committee (IFRS IC), as adopted by the EU. Preparing reports compliant to IFRS requires certain critical estimates to be made, and management need to make judgements when applying the group’s accounting policies. Complex areas, areas where judgements materi- ally affects the accounting outcome and assumptions and estimates that are significant to the consolidated accounts, are stated in note 4. No new IFRS standards or amendments to standards have been added in 2024 that have required changes in the accounting or measurement policies. 2.2 Segment reporting Operating segments are identified in a manner consistent with the internal reporting provided to the chief operating decision-maker, which is the executive management. The group has identified four segments to be reported: RAW, Insulation & Construction, Packaging & Components and Circular. 2.3 Associated companies Holdings in associated companies are reported using the equity method. 2.4 Translation of foreign currencies Functional currency and presentation currency The units of the group use their local currencies as functional currency as they have been defined as the currencies used in the primary economic environment in which the respective units mainly are active. In the consolidated accounts, Euro (EUR) is utilised as the group’s presentation currency. 122122Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The parent company’s functional currency is NOK. The majority of BEWI’s operations are conducted in countries where EUR is the functional currency. Transactions and balance sheet items In general, exchange rate gains and losses arising from payments of transactions in foreign currency and from translations of monetary assets and liabilities in foreign currency are reported in operating income. However, exchange rate gains and losses arising from borrowings and cash and cash equivalents are reported as financial incomes and expenses. 2.5 Intangible assets Goodwill Goodwill is monitored per cash generating unit. Goodwill is tested for impairment annually or more frequently should certain events or changes to conditions indicate a possible impairment need. The carrying value of goodwill is compared to the recoverable amount, which is the higher of fair value less costs of disposal and value in use. Any impairment is immediately reported as an expense and is not reversed. Patents/ Licences/ IT Patents, licences & IT carry a useful life and are reported at the acquisition cost less accumulated amortisation and impairment. Customer relations, trademarks and technology Customer relations, trademarks and technology assets have all been acquired through business combinations and measured at fair value on the acquisition date. Customer relations and technology have a fixed useful life and are for subsequent periods reported at the acquisition cost less accumulated amortisation and impairment. The useful life of trademarks acquired through business combinations is evaluated and determined in each acquisition. Net cash flows generated by trademarks are not expected to cease in the foreseeable future unless they are product names. Many of the trademarks in the groups balance sheet are therefore currently assessed as having an indefinite useful life. Trademarks and goodwill are tested annually for impairment as described above. Trademarks are for subsequent periods reported at the acquisition cost less any write-down from impairment. Useful lives for the group’s intangible assets: Patents/Licences 5 yr. Customer relations 8–16 yr. Technology 6.5–10 yr. Product names 20 yr. 2.6 Tangible assets Depreciation is recognised on a straight-line basis over the useful life to the calculated residual value. Such deprecia- tions are carried out according to the following: Buildings 10–65 yr. Frameworks, foundations 64–84 yr. Frame supplements, interior walls 50 yr. Heating, sanitary, electricity, front, roof 40 yr. Interior surface finish/rental preparation 10 yr. Ventilation 20 yr. Elevator/transportation 25 yr. Control system and surveillance 15 yr. Other property components 50 yr. Ground installations (facilities) 20 yr. Plant and machinery 5–18 yr. Equipment, tools, fixtures and fittings 3–10 yr. 2.7 Inventory The inventory is reported at the lower of the cost and net realisable value. Cost is determined using the first-in- first-out method. Cost also includes expenses relating to the acquisition, as well as for bringing the goods to their current location and condition. Cost for the company’s semi-finished or finished products is the sum of the direct production costs and the production overhead (based on normal production capacity). 2.8 Financial instruments Financial instruments are included in several balance sheet items. 2.8.1 Classification The group classifies its financial assets and liabilities in the following categories: Financial assets at fair value through profit or loss Financial assets at fair value through profit and loss are shares and participation rights in subsidiaries, associates and joint ventures. Derivatives are recognised at fair value through profit or loss. Positive fair values of derivatives are reported as financial assets. Financial assets measured at amortised cost Financial assets measured at amortised cost are financial instruments where the business model is to collect interest and principal on the instrument. These are measured at amortised cost in accordance with the effective interest method. Accounts receivables are included in this cate- gory, however due to the short maturity they are measured at nominal amounts less estimated credit losses. Financial liabilities at fair value through profit and loss Financial liabilities at fair value through profit and loss are normally limited to derivatives and earnouts from business acquisitions. Financial liabilities measured at amortised cost Financial liabilities measured at amortised cost include bond loans, liabilities to credit institutions, liabilities regard- ing financial leasing and account payables. The classification is made in accordance with the purpose of obtaining the financial asset or liability upon recognition. 2.8.2 Recognition and initial measurement Financial assets are initially recognised at fair value plus transaction costs for all financial assets not at fair value through profit or loss. Financial assets at fair value through profit or loss are initially recognised at fair value and trans- action costs are expensed. Financial assets are recognised when the group becomes a party to the contractual provisions of the instrument. Regular purchases and sales of financial assets are recognised on the settlement date. Financial assets are removed from the balance sheet when the right to obtain cash flows from the instrument has expired and the group has transferred all essential risk and benefits in conjunction with the ownership. Financial liabili- ties are recognised when the group becomes bound to the contractual obligations of the instrument. Financial liabilities are removed from the balance sheet when the obligation under the agreement is completed or otherwise extin- guished. Loans and receivables and other financial liabilities are, after the acquisition date, reported at the amortised cost calculated using the effective interest method. 2.8.3 Impairments of financial instrument At each balance sheet date, financial assets measured at amortised cost are assessed for impairment based on Expected Credit Losses (ECL). ECLs are the difference 123123Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 between all contractual cash flows that are due in accordance with the contract and all the cash flows that the group expects to receive, discounted at the original effective interest rate. Allowances for trade receivables are always equal to lifetime ECL. 2.9 Current and deferred tax The period’s tax expenses include current and deferred tax. The current tax expense is calculated on the basis of the tax regulations in force on the balance sheet day in the countries in which the parent company and its subsidiaries are active and generate taxable revenue. Deferred tax is reported, in accordance with the balance sheet method, for all temporary differences between the tax value of assets and liabilities and the carrying amount of the consolidated accounts. Deferred tax is calculated with the application of the tax rates in force on the balance sheet day and the rates expected to be in force when the tax asset is realised, or the tax liability is cleared. Deferred tax assets on carry forwards are reported to the extent likely that future fiscal surplus will be available, against which the deficits may be exploited. 2.10 Employee remuneration Pension commitments The group has several post-employment benefit plans, including defined benefit plans, of which the majority of the pension schemes are defined contribution plans. A defined contribution plan is a pension plan according to which the group pays a fixed fee to a separate legal entity. The group carries no legal or constructive obligations to pay additional fees should the entity lack sufficient resources to remunerate all employees what they are due as a result of their service, in the current or prior periods. The fee is reported as a personnel cost when matured. A defined benefit plan is a pension plan without defined contribution. Defined benefit plans normally set out an amount for the employee to receive upon retirement, normally based on one or several factors such as age, period of service and salary. The group provides defined benefit plans for a limited number of people, in Finland, in the UK, and in Norway. These plans are further described in note 26. In addition, the group provides other long- term benefits in the Netherlands for long-term service (Jubilee fund), calculated in the same manner as a defined benefit plan. The liability reported on the balance sheet in conjunction with the defined benefit pension plan is the present value of the defined benefit commitment at the end of the reporting period less the plan assets’ fair value. The defined benefit pension commitment is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit liability is determined through discounting future estimated cash flows using the interest rate for investment grade corporate bonds or housing bonds issued in the same currency as the benefits, with terms comparable to the pension commitment in question. The net interest is calculated by applying discounted interest charges to defined benefit plans and for the fair value of the plan assets. The current service cost is included in the personnel costs and the net interest among financial items. Revaluation gains and losses as a result of adjustments in accordance with experience and changes to actuarial estimates are reported in other comprehensive income for the period during which they arise. They are part of the profit carried forward in the changes to consolidated equity and the balance sheet. Costs for service in prior periods are reported in the income statement. Share-based incentive programme BEWI ASA has a share-based incentive programme, enti- tling the participants to subscribe for shares in BEWI ASA during a three-year period. The fair value of the share options issued is determined at the grant date in accordance with the Black & Scholes valuation model, taking into consideration the terms and conditions that are related to the share price. The value is recognised in the income statement as a personnel cost allocated over the vesting period with a corresponding increase in equity. The recognised cost corresponds to the fair value of the estimated number of share options that are expected to vest. This cost is adjusted in subsequent periods to reflect the actual number of vested options and shares. 2.11 Revenue recognition and net sales BEWI sells products for insulation to the construction industry as well as packaging solutions to the manufactur- ing industry and food producers. Virtually all of these sales transactions meet the definition of a point in time revenue recognition. The sales are reported as revenue when the product is delivered to a customer. Delivery is deemed to have taken place when the products have arrived at the location defined by the shipment terms. Net sales in the Income Statement consist of sale of goods and services in the ordinary course of business, traded goods sold, and deduction of customer discounts and bonuses. 2.12 Leases The group has decided to apply the practical expedients for short-term leases and low-value assets. This means that contracts with shorter maturities than 12 months and leases of low value (value of assets when it is new of less than EUR 5 000) are not included in the calculation of right-of-use assets or leasing liabilities but continue to be reported with straight-line expense over the lease term. Examples of low value assets are computers, printers and copiers. 2.13 Government grants Government grants are recognised in profit or loss on a systematic basis over the periods in which the related expenses, which the grants are intended to compensate for, are recognised. Government grants are recognised as a reduction of such related expenses. Government grants received for investments are recognised in the balance sheet as a reduction of the booked value of the asset. 2.14 Cash flow statement Cash flow statement is prepared using the indirect method. The reported cash flow solely contains transac- tions giving rise to payments 124 124 Financial statements | The Group Financial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 03 Financial risk management 3.1 Financial risk factors The group is through its activities exposed to several different risks: market risks (currency risk, interest rate risk and price risk), credit risk and liquidity risk. The group’s comprehensive financial risk management is focused on the unpredictability of the financial markets and strives to minimise any adverse effect on the consolidated profits. The use of derivative financial instru- ments has so far mainly been limited to mitigation of currency exposure on intra-group borrowing and lending and the cash flow risk from variable interest on the long-term borrowing. The risk management is controlled by the central finance depart- ment and the treasury function within that department. The finance department identifies, evaluates and hedges financial risks in close cooperation with the group’s operative units. Currency risk The group operates in the Nordic countries, in continental Europe, in the UK and in North America and is mainly exposed to cur- rency risk arising from currency exposure to the Swedish Krona (SEK), the Danish Krone (DKK) and the Norwegian Krone (NOK). Currency risks arise from both transaction exposure and translation exposure. Transaction exposure should, when possible, be centralised and managed by the group’s central treasury function. Transaction exposure Transaction exposure arises when revenues and costs are incurred in different currencies and exposes the group to changes in net cash flow due to fluctuations in exchange rates. This is applicable to both operational cash flows and to financial commit- ments that will end in a cash outflow. Transaction exposure also arises on fair value changes on existing balance sheet items in foreign currency, such as trade receivables and liabilities and borrowing and lending, when these items are revalued on the balance sheet date or when settled. The largest transaction exposure to operational cash flows is attributable to raw material purchases in Sweden and Norway, which are done in EUR. As DKK is pegged to the EUR, Denmark is not subject to that same exposure. In addition, there is also a minor exposure between other currency pairs where sales or purchases are concluded in foreign currencies. The largest fair value exposure on the balance sheet is related to intra-group loans, mainly EUR denominated, from Sweden to its subsidiaries. However, the main sources of funding for the group, the bond loan and the overdraft facility, are denominated in EUR to match the intragroup loans to subsidiaries predominately located in the Euro area. The currencies in which the group’s interest-bearing liabilities are denominated are presented in note 25. The following measures are taken by BEWI to reduce the transaction exposure: • For raw material purchases from the Euro area into the Nordics, price and currency clauses are in general incorporated into customer agreements. • Intra-group trade receivables and liabilities should be settled within a limited time-frame. • The group’s external borrowing should be matched to the currency of intra-group lending to subsidiaries. • Bank balances in foreign currency should be exchanged to local currency as soon as possible. Transaction exposure to operational cash flows have only to a limited extent been hedged by using derivatives. However, to the extent that there is a major net exposure in any currency from borrowing and lending, that balance sheet exposure should be hedged by using forward contracts or swaps. Net balance sheet exposure has been managed by a combination of short-term derivatives and long-term derivatives, depending on the nature of the exposure. Hedge accounting has not been applied for these hedges. The net fair value of derivate contracts used for hedging transaction exposure, as of 31 December, and for which hedge accounting has not been applied is presented in the table below. The derivative assets are reported as Other financial assets in the balance sheet and the derivative liabilities as Other financial liabilities. million EUR 0-6 months 7-12 months 2-3 yr. 3-4 yr. 4-5 yr. As of 31 Dec 2024 Derivative asset – fair value through income statement 0.0 - 1.6 - - Derivative liability – fair value through income statement -0.3 - - - - Total -0.3 - 1.6 - - As of 31 Dec 2023 Derivative asset – fair value through income statement 2.1 0.3 1.1 0.1 - Derivative liability – fair value through income statement - - -3.2 - - Total 2.1 0.3 -2.1 0.1 - The impact from transaction exposure on consolidated profit or loss is presented in note 10. Translation exposure Translation exposure arises when the income statements and balance sheets of foreign operations are translated to EUR, the presentation currency of the group’s financial statements. The reported net sales and profit of the group, as well as the net assets of the group, are consequently exposed to changes in exchange rates between EUR and the currencies of the group’s foreign operations. The translation exposure is not hedged, but the group strives to have a balance in major currencies between net debt, equity and EBITDA to reduce volatility in the balance sheet and key financial ratios. 125125Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 A sensitivity analysis shows that if EUR would have fluctuated by 5 per cent against all other currencies in the group, the impact on adjusted EBITDA from continuing operations would have been +/- EUR 1.2 million in 2024 (EUR 1.6 million). This assumes that all other variables are held constant and ignores any compensating effects from transaction exposure, for example the impact from raw material purchases. Interest rate risk Interest rate risk is the risk that changes in market interest rates will have a negative impact on cash flow or fair value of financial assets and liabilities. Cash flow risk arises from changes in variable interest rates, whereas fair value risk arises from changes in fixed interest rates. It is the policy of the group to limit the interest rate risk to cash flow risk by restricting the allowed average interest duration for both borrowing and financial investments. However, it is possible to deviate from that principle when deemed adequate, for example due to large unfavourable moves in market interest rates. The group’s borrowing is primarily exposed to changes in Euribor through the bond loan, and short term interest rates in SEK and NOK, as further outlined in Note 25 Borrowings. Due to the substantial increase in the Euribor during the last couple of years, the group entered into two interest rate swaps in 2024, to hedge the cash flow risk from the bond loan interest payments, by swapping 70% of the variable interest to fixed interest until the bond loan maturity date on 3 September 2026. This details of this hedge are further outlined under the section Hedge accounting below. The group’s lending, limited to loans to associated companies, is exposed to changes in Euribor, as described in Note 16 Shares in associates. In the event that the interest rate would fluctuate up or down by 50 basis points, all other variables held constant, the impact on net profit would have been +/- EUR 1.4 million in 2024 (EUR 1.7 million). Price risk The group is exposed to price risks in relation to shareholdings other than shares held in group companies or associated companies. Such other shareholdings are measured at fair value, but the modest value of these holdings in the consolidated statements of financial position, makes the risk limited. The corporate bonds are listed on Nasdaq Stockholm, and the group is therefore exposed to fluctuations of the market value if the repurchase clause in the bond agreement would be utilised. Credit risk Credit risk refers to the risk that a counterparty in a financial transaction may not fulfil its obligations. It is a risk applicable to trade receivables, lending and to cash and cash equivalents. Credit risks are managed by the central treasury function, except for credit risks related to accounts receivables, which are managed locally by the subsidiaries or business units. Each subsidiary or business unit shall monitor and analyse the credit risks for each new customer before standard terms for payment and delivery are offered. If customers are credit rated by independent credit rating agencies, these credit ratings are utilised. In the event that no independent credit rating exists, the group company undertakes a risk assessment of the customer’s creditworthiness, in which the customer’s financial position is considered, as well as previous experience and other factors. Individual risk limits are determined on the basis of internal or external credit ratings. In case no relevant credit risk can be assessed and no credit limit established, only prepayments are accepted. The application of credit limits is monitored regu- larly. The credit-term is normally 30 days, but both shorter and longer terms are applied, depending on the customer and local practices. A breakdown of maturity for accounts receivables, as well as description of the principles for estimating credit losses, are presented in note 18 Accounts receivables. To minimise the credit risk for cash and cash equivalents, only banks and financial institutions with strong credit rating from independent credit rating agencies are accepted. The maximum credit risk exposure corresponds to the financial assets pre- sented in note 17 Financial instruments per category. Liquidity risk Liquidity risk is the risk that the group does not have access to adequate financing on acceptable terms at any given point in time. This requires a combination of short-term monitoring of cash flow and securing short and long-term financing of the group. Cash flow forecasts are prepared by the group’s operating companies and are closely monitored by the treasury department. The group should always have a sufficient liquidity reserve to meet the short-term operating needs. In order to balance sea- sonal effects in operating cash flow, and managing other short term funding needs mainly related to change in working capital, the group has secured an revolving credit facility (RCF). The facility was decreased from a total of EUR 150 million in 2023 to EUR 123.5 million by the end of 2024. The facility was reduced further to EUR 111.5 million in the beginning of 2025. The facility is provided by two banks and runs until 2026. Part of the total RCF frame has been utilized for an overdraft facility provided by one of the banks. In September 2024, the group also entered into a receivables purchase agreement (RPA) with one of the banks granting the RCF. The RPA has more attractive margins than the RCF and provides a more flexible financing structure for the group’s working capital. The RPA is an uncommitted facility with a frame of EUR 75 million. The available credit limit under the RCF is reduced partly by the amount utilised under the RPA. On 31 December 2024, EUR 54.7 million was utlised under the RPA. For the long-term financing of the group, BEWI has issued a EUR 250 million five year sustainability linked bond that matures on 3 September 2026, with a possibility for BEWI to unilaterally decide on an early redemption after 3 March 2025 of 50 per cent of the bonds outstanding at that date. A detailed description of the terms for the bond loans is given in note 25 Borrowings. In addition to the centrally negotiated borrowings, there are also a few liabilities to credit institutions and overdraft facilities in companies acquired, that have not been subject refinancing post acquisition. 126126Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The amounts in the table below are the agreed, undiscounted cash flows, including both principal and interest. As of 31 Dec 2024 million EUR <1 yr. 1–2 yr. 2–5 yr. >5 yr. Bond loans - 251.9 - - Liabilities to credit institutions 8.4 70.4 1.6 0.5 Overdraft 1.4 - - - Accounts payables 77.0 - - - Other non-current liabilities 0.2 - - - Liabilities leases 40.6 37.3 100.1 214.0 Total 127.6 359.6 101.7 214.5 As of 31 Dec 2023 million EUR <1 yr. 1–2 yr. 2–5 yr. >5 yr. Bond loans - - 250.0 - Liabilities to credit institutions 15.4 125.3 3.4 - Overdraft 4.4 - - - Accounts payables 81.6 - - - Other non-current liabilities - 0.4 Liabilities leases 33.4 31.4 82.4 181.1 Total 134.8 157.1 335.8 181.1 The undiscounted cash flow for liabilities leases correspond to the future lease payments reflected in the calculation of the discounted lease liability in accordance with IFRS 16. Hedge accounting The group has entered into interest swaps, by swapping variable interest on the bond loan to fixed. The swaps have similar critical terms as the hedged item, such as reference rate, reset dates, payment dates, maturities and notional amount. The group does not hedge 100% of its bond loan, and so the hedged item is identified as a proportion of the outstanding bond loan up to the notional amount of the swaps. Since all critical items matched during the year, there is an economic relationship. Hedge accounting has been applied to these cash flow hedges. In late 2023, the group also entered into minor FX forward contracts to hedge against the currency transaction exposure arising from specific operational cash flows during a limited amount of time in the first quarter of 2024 and for which hedge accounting was applied. Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments, to ensure that an economic relationship exists between the hedged item and the hedging instrument. Hedge ineffectiveness for interest rate swaps is tested by comparing, for example, the maturity, currency and interest terms of the swap against those of the hedged loan. Hedge effectiveness for the FX forwards was tested by comparing critical terms of the FX forwards, such as timing, currency and transaction amount, against the forecast operational cash outflows. No hedge ineffec- tiveness was identified for interest rate swaps or FX forwards in 2024 and 2023. The derivative liabilities arising from cash flow hedges for which hedge accounting has been applied are recognised as Other financial liabilities and specified in the table below. As of 31 dec 2024 million EUR 0-6 months 7-12 mån 2-3 years Derivative liability – fair value through OCI Interest rate swaps - - 3.3 FX forwards - - - Total - - 3.3 As of 31 dec 2023 million EUR 0-6 months 7-12 mån 2-3 years Derivative liability – fair value through OCI Interest rate swaps - - - FX forwards 0.1 - - Total 0.1 - - 127127Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 A reconciliation of the group’s hedging reserve is presented in the tables below. million EUR Interest rate swaps FX forwards Total As of 31 dec 2023 - -0.1 -0.1 Change in fair value through OCI -3.3 - -3.3 Transferred to the cost of inventory - 0.1 0.1 As of 31 dec 2024 -3.3 - -3.3 million EUR Interest rate swaps FX forwards Total As of 31 dec 2022 - - - Change in fair value through OCI - -0.1 -0.1 As of 31 dec 2023 - -0.1 -0.1 3.2 Fair value The table below presents the fair value of financial instruments measured at fair value though profit and loss, or, which is the case with the bond loans, fair value of financial instruments measured at amortised cost. The carrying amount of the group’s other financial assets and liabilities is considered to constitute a good approximation of fair value, since they carry floating interest rates or are of a current nature. As of 31 Dec 2024 Carrying amount million EUR Level 1 Level 2 Level 3 Total Financial assets measured at fair value through profit and loss Participation in other companies - - 0.5 0.5 0.5 Derivative asset - 1.6 - 1.6 1.6 Total - 1.6 0.5 2.1 2.1 Financial liabilities measured at amortised cost Bond loan 248.1 - - 248.1 249.4 Total 248.1 - - 248.1 249.4 Financial liabilities measured at fair value through other comprehensive income Derivative liabilities - 3.3 - 3.3 3.3 Total - 3.3 - 3.3 3.3 Financial liabilities measured at fair value through profit and loss Derivative liability - 0.3 - 0.3 0.3 Other financial non-current liabilities - - 0.2 0.2 0.2 Total - 0.3 0.2 0.5 0.5 128128Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 As of 31 Dec 2023 Carrying amount million EUR Level 1 Level 2 Level 3 Total Financial assets measured at fair value through profit and loss Participation in other companies - - 0.5 0.5 0.5 Derivative asset - 3.6 - 3.6 3.6 Total - 3.6 0.5 4.1 4.1 Financial liabilities measured at amortised cost Bond loan 235.0 - - 235.0 247.9 Total 235.0 - - 235.0 247.9 Financial liabilities measured at fair value through other comprehensive income Derivative liabilities - 0.1 - 0.1 0.1 Total - 0.1 - 0.1 0.1 Financial liabilities measured at fair value through profit and loss Derivative liability - 3.2 - 3.2 3.2 Other financial non-current liabilities - - 0.4 0.4 0.4 Total - 3.2 0.4 3.6 3.6 Level 1 – Listed prices (unadjusted) on an active market for identical assets and liabilities. Level 2 – Other observable data for the asset or liability that is listed prices included at level 1, either directly (as price) or indirectly (derived from price). Level 3 – Data for the asset or liability that is not based observable market data. Level 3 – Changes during the period, million EUR Participation in other companies Other financial non-current liabilities As of 31 Dec 2023 0.5 0.4 Settlement - -0.2 As of 31 Dec 2024 0.5 0.2 Level 3 – Changes during the period, million EUR Participation in other companies Other financial non-current liabilities As of 31 Dec 2022 0.5 0.7 Settlement - -0.3 Fair value adjustment through profit and loss 0.0 - As of 31 Dec 2023 0.5 0.4 129129Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 3.3 Capital management The group’s capital is defined as capital employed, which comprises total equity and net debt. The objective for the capital structure is to guarantee the group’s capacity to continue its operations and to support a profitable growth through a combi- nation of M&A activities and organic growth, with the aim to continue generating return to shareholders and benefits to other stakeholders. This should be achieved through an optimal capital structure that reduces the cost of capital. In order to maintain or adjust the capital structure, the group may: alter the dividend to shareholders, reimburse capital to shareholders, issue new shares, raise new loans or dispose of assets. The capital is assessed on the basis of the return on capital employed. Net debt is defined as interest-bearing liabilities less cash and cash equivalents. Net debt is calculated both with and without the effect from IFRS 16 Leases, as the covenants stated in the revolving credit facility agreement and the bond loan agreement are based on a net debt calculation excluding the effect of IFRS 16. For the sake of calculating capital employed, net debt includes the effect of IFRS 16. For more information on the components of interest-bearing liabilities, please refer to note 25. Return on capital employed is calculated as rolling 12 months adjusted EBITA (earnings before interest, tax and amortisations after adding back items affecting comparability) as a percentage of average capital employed during the same period, where the average is calculated with each quarter during the measurement period as a measuring point. million EUR 31 Dec 2024 31 Dec 2023 Total interest-bearing liabilities (A) 583.7 611.2 Cash and cash equivalents (B) 72.7 63.6 Net debt including IFRS 16 (A-B) 511.0 547.6 Effect of IFRS 16 leasing liabilities (C) 247.0 216.6 Net debt excluding IFRS 16 (A-B-C) 264.0 331.1 Total equity (D) 384.6 415.7 Capital employed (A-B+D) 895.6 963.3 Average capital employed (E) 946.1 983.7 Adjusted EBITA (F) 33.4 53.5 Return on capital employed (F/E) 3.5% 5.4% Net debt including IFRS 16 leasing liabilities is slightly lower in 2024 than in 2023. Higher leasing liabilities in 2024, mainly from the sale and leaseback transactions, are offset by higher cash by the end of the year. Excluding IFRS 16 leasing liabilities, net debt is lower by the end of 2024, explained by the improved cash position. Average capital employed is lower in 2024, explained by the lower net debt, but also lower equity following the net loss reported for the year. Return on capital employed decreased from 5.4 per cent in 2023 to 3.5 per cent in 2024, explained by a lower EBITA following the market downturn. 130130Financial statements | The GroupFinancial statements | The Group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 04 Critical accounting estimates and significant judgements Estimates and assessments are continuously evaluated and are prepared on the basis of historical experience and other factors, including expectations regarding future events deemed reasonable under existing condition. 4.1 Critical accounting estimates The group makes estimates and assumptions about the future. Accounting estimates will, by definition, rarely be equivalent to the actual result. The estimates and assumptions contain a significant risk for material adjustments to carrying amounts of assets and liabilities during the following financial years are outlined below. a) Consideration of impairment need of goodwill and trademarks The group examines annually whether any impairment need for goodwill or trademarks is at hand, in accordance with the accounting principle set out in note 2. Recoverable amounts have been determined on the basis of calculations of values in use. These calculations include certain estimates to be carried out (see note 12 Intangible assets). b) Leases In determining the lease term, an estimation of each contract, including whether to include an extension option or not, is made. Contracts for production facilities, which is the major part of the leasing in the group, normally runs for 10-17 years. The determi- nation of lease terms and how to treat extension options affect both the leasing liability and the right-of-use asset. A description of lease-terms is found in Note 8 Leasing. Determination of the rates at which the lease liabilities are discounted affects the lease liability and interest expense. It deter- mines the discounting of lease liabilities and right-of-use assets recognised in the consolidated statement of financial position, as well as the split between interest expense and depreciation recognised in the consolidated statement of profit or loss over the lease term. How the group estimates its incremental borrowing rate, to measure lease liabilities at the present value of lease payments, is described in Note 25 Borrowings. 4.2 Significant judgements a) Judgements when assessing derecognition Assessing whether accounts receivable sold under receivables purchase agreements qualify for derecognition from the balance sheet includes critical judgements as to whether substantially all risks and rewards of ownership have been transferred. This includes judgement of the extent to which credit risk, credit insurance, currency risk and late payment risk attributable to the receivables have been transferred to the purchasing party. b) Judgements when assessing sale and leaseback transactions Assessing whether a sale and leaseback transaction meets the requirements to be recognised as a sale of an asset at a point in time, includes judgement of whether the relevant performance obligations are satisfied. The relevant performance obligations are satisfied when control of the asset is obtained by the buyer. 131131Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 05 Net sales distribution and segment information Operating segments are reported in a manner that corresponds with the internal reporting submitted to the chief operating decision maker. The executive management 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 man- agement and used for the purposes of allocating resources and assessing performance. The executive management assesses the operations based on four operating segments: RAW, Insulation & Construction, Packaging & Components and Circular. Sales between segments take place on market terms. million EUR Insulation & Construction Packaging & Components Circular Unallocated Elimination continuing operations Total – continuing operations Discontinued operations Elimination discontinued operations Total operations 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023 Internal net sales 2.4 2.4 1.5 2.6 12.2 11.7 0.0 0.0 -16.0 -16.7 0.0 0.0 137.1 129.6 -137.1 -129.6 0.0 0.0 External net sales 426.0 456.0 306.9 319.0 40.3 45.9 0.0 0.3 773.2 821.2 242.2 284.1 1015.4 1105.3 Net sales 428.4 458.4 308.3 321.6 52.5 57.7 0.0 0.3 -16.0 -16.7 773.2 821.2 379.2 413.7 -137.1 -129.6 1015.4 1105.3 Adj. EBITDA 36.5 40.6 43.4 45.3 -4.9 -3.2 -3.9 -4.7 71.2 78.1 20.0 30.7 91.2 108.8 EBITDA 35.8 35.7 47.3 44.0 -5.3 -3.4 -5.9 -4.8 71.9 71.5 19.2 30.4 91.1 101.9 EBITA 13.8 11.7 23.1 22.1 -9.5 -6.1 -6.8 -5.4 20.5 22.4 12.7 24.2 33.3 46.6 EBIT 7.8 5.7 19.2 18.1 -10.4 -7.0 -8.0 -6.6 8.5 10.2 11.5 23.3 20.0 33.5 Net financial items -45.3 -40.8 -48.1 -42.5 Income before tax -36.8 -30.6 -28.1 -9.0 132132Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Specification of impact from specific amounts on the segmentation 2024 2023 Share of income from associated companies Adjusted EBITDA, EBITDA, EBITA and EBIT for Insulation & Construction -1.7 0.7 Adjusted EBITDA, EBITDA, EBITA and EBIT for Packaging & Components - 0.0 Adjusted EBITDA, EBITDA, EBITA and EBIT for Circular 0.2 0.6 Capital gain/loss from sale of assets EBITDA, EBITA and EBIT for Insulation & Construction -0.7 -1.4 EBITDA, EBITA and EBIT for Packaging & Components -4.0 0.1 EBITDA, EBITA and EBIT for Circular 0.0 0.0 EBITDA, EBITA and EBIT for Unallocated 0.9 - Restructuring costs EBITDA, EBITA and EBIT for Insulation & Construction -0.6 -3.4 EBITDA, EBITA and EBIT for Packaging & Components -0.3 -1.0 EBITDA, EBITA and EBIT for Cirkular 0.0 -0.2 Impairment tangible assets EBITA and EBIT for Insulation & Construction -1.1 -1.8 EBITA and EBIT for Packaging & Components -0.5 -0.6 EBITA and EBIT for Circular -0.1 - Impairment other intangible assets except goodwill EBIT for Insulation & Construction - - EBIT for Packaging & Components - - Net sales per country (Customers’ geography) 2024 2023 Norway 140.8 140.2 Germany 84.9 88.8 Netherlands 112.4 123.7 UK 86.5 77.4 Sweden 72.0 86.4 Denmark 69.2 75.0 Portugal & Spain 48.0 47.0 Poland 10.7 12.6 France 24.7 26.0 Belgium 29.5 34.0 Finland 35.9 34.6 Iceland 0.6 0.4 Baltics 18.4 21.5 Czech Republic 9.4 9.6 Romania 3.4 3.5 Slovakia 4.0 5.6 Italy 2.2 2.9 Austria 1.2 1.3 Faroe Islands 0.3 0.2 Switzerland 3.3 3.9 Other 15.8 26.5 Total continuing operations 773.3 821.2 Discontinued operation 242.1 284.1 Total operations 1 015.4 1 105.3 133133Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 06 Employee remuneration etc. million EUR 2024 2023 Salary and other remuneration 1 -130.3 -129.8 Social security expenses 2 -23.5 -21.9 Pension costs – defined contribution plans -6.9 -6.5 Pension costs – defined benefit plans 0.0 0.0 Total remuneration to employees -160.7 -158.3 The costs in the table above reflect costs for own employees. 1 whereof 0.0 (-0.2) is a cost for sharebased payments. 2 whereof 0.0 (0.7) is reversal of previously recognized social security expenses. Average number of full time employees (FTE) with geographical breakdown by country 2024 2023 Average FTE total Whereof men Average FTE total Whereof men Sweden 269 196 302 221 Finland 116 91 128 102 Denmark 229 156 259 168 Norway 352 267 379 314 the Netherlands 380 323 395 352 Belgium 91 7 90 84 Portugal 201 115 196 93 Spain 78 75 68 65 Poland 279 189 237 155 Germany 426 338 430 340 UK 203 156 181 127 France 11 9 11 10 Lithuania 88 66 104 82 Czech Republic 23 19 20 17 Canada 7 3 9 2 Switzerland 1 1 1 1 Austria 4 4 1 1 US 3 3 - - Total 2 761 2 018 2 811 2 134 134 134 Financial statements | The group Financial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Remuneration to senior executives The senior executives comprise of the board of directors, CEO of BEWI ASA and managers in the executive management 1 directly reporting to the CEO and remunerations for those applies to: BEWI ASA 1 Jan 2024–31 Dec 2024 1 Jan 2023–31 Dec 2023 million EUR Basic salary incl. benefits/ board fees Variable remuneration Retirement compensation Basic salary incl. benefits/ board fees Variable remuneration Retirement compensation Board of Directors 6 members of the board, whereof 3 women Gunnar Syvertsen (chairman) 0.06 - - 0.05 - - Kristina Schauman 0.03 - - 0.03 - - Anne-Lise Aukner 0.03 - - 0.03 - - Rik Dobbelaere 0.03 - - 0.03 - - Andreas Mjølner Akselsen 0.03 - - 0.03 - - Pernille Skarstein 0.03 - - 0.02 - - Total 0.21 - - 0.19 - - CEO Christian Bekken 0.27 0.04 0.01 0.27 0.01 0.01 Other Senior Executives 1 1.25 0.18 0.29 1.12 0.06 0.23 Total 1.53 0.23 0.29 1.38 0.07 0.24 Consultancy services board members Gunnar Syvertsen 0.07 - - 0.09 - - Rik Dobbelaere 0.12 - - 0.12 - - Andreas Mjølner Akselsen - - - 0.15 - - 1 The executive management has been decreased with one employee as from 1 November 2024. The costs are reflected in the numbers above from this date. Share-based incentive programme In November 2020, the parent company BEWI ASA implemented a share-based incentive programme, entitling the participants to subscribe for shares in BEWI ASA during a three-year period. In August 2024 an additional share-based incentive programme was launched. The purpose of both programmes is to further align the interests of the company and its shareholders by provid- ing incentives in the form of awards to employees to motivate them to contribute materially to the success and profitability of the company. The features of the programmes are further described in note 23. Severance pay Subject to the CEO’s employment agreement, there is a mutual notice period of 6 months in the agreement. If the agreement is terminated by the company, the employee is in addition to the notice period entitled to 12 months severance pay. The sever- ance pay is deductible against income or compensation from other employment. 135135Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 07 Remunerations to auditors million EUR 2024 2023 PwC – The audit assignment -0.8 -1.0 – Audit activities other than the audit assignment -0.1 0.0 – Tax advice - - – Other services -0.1 - Total -1.0 -1.0 Other accounting firms than PwC – The audit assignment -0.2 -0.5 – Audit activities other than the audit assignment - -0.0 – Tax advice -0.1 -0.2 – Other services 0.0 0.0 Total -0.4 -0.7 For 2024 audit activities other than the audit assignment from PwC mainly includes costs related to the ESG reporting. Note 08 Leasing Lease-terms and extension options The group leases buildings (e.g. production facilities, warehouses, offices), machinery (e.g. gas facilities, compressors, moulding machines) and equipment (e.g. cars, trucks, fork-lifts). Contracts for production facilities normally run for 10-17 years, but there are exceptions with both shorter and longer lease terms. Separate warehouses are normally leased for 1–2 years, with a few exceptions. In case a warehouse rent is paid based on usage, for example pallet space used, it is treated as variable and not subject to capitalisation in accordance with IFRS 16. Office space is normally leased for three years. Based on the assumption that a business cycle lasts for eight years and that predictions beyond that period are difficult, extension options for contracts for production facilities expiring after that time-frame are not considered when assessing the lease-term, unless specific condi- tions are present. Extension options for warehouses and offices are not reflected. The lease term for other assets vary, but normally range between 3–5 years. Purchase options are considered in the capitalised amount if deemed reasonably certain that such an option will be exercised, but this is not common. Extensions options are reflected when it is deemed reasonable that they will be exercised. Discount rate, liability and carrying amount Discount rates applied and total leasing liability are described in note 24 Borrowings. Maturity dates for the undiscounted values are presented in note 3 Financial risk management. Carrying amounts and depreciations of the assets capitalised are presented in note 12 Intangible assets and note 13 Tangible assets. Lease expenses for lease contracts capitalised in accordance with IFRS 16 million EUR 2024 2023 Depreciations and amortisations -24.0 -19.0 Interest expense -16.2 -10.7 Total -40.1 -29.6 136136Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Lease expenses for lease contracts not capitalised in accordance with IFRS 16 million EUR 2024 2023 Lease expense short-term leases -1.2 -1.0 Lease expense low-value assets -0.1 -0.4 Lease expense variable leases -1.0 -0.7 Total -2.3 -2.1 Cash flow from leases million EUR 2024 2023 Recognised in operating cash flow Operating income -2.3 -2.1 Interest paid -16.2 -10.7 Cash flow from financing activities Repayment of borrowings -21.1 -17.0 Total -39.6 -29.8 In 2024, three real estate properties were divested to the Swedish listed company Logistea AB in sale and leaseback transactions. The transactions gave rise to a capital gain of EUR 4.5 million. The lease terms run for 17 years, with options to extend the lease terms for another five years. Note 09 Financial income and expense million EUR 2024 2023 Interest revenue 3.7 5.3 Other financial income 0.1 0.0 Total financial income 3.8 5.4 Interest expenses -47.0 -42.3 Fair value adjustments shares and participations - -3.2 Revaluation bond -1.2 - Fair value change derivatives 1.1 -7.4 Exchange rate losses -2.1 6.7 Total financial expense -49.1 -46.0 Total financial income and expense - net -45.3 -40.8 EUR -1.9 million (2023: EUR -1.1 million) of the interest expenses were attributable to amortisation of financing cost. Fair value adjustments shares and participations are attributable to the shares in KMC Properties ASA, which were divested during the 2023. The shares were remeasured at fair value until the date of divestment and there was consequently no gain or loss from the divestment. Net financial income and expense per category of financial instrument million EUR 2024 2023 Financial assets and liabilities measured at fair value through profit and loss 1.1 -10.6 Financial assets and liabilities measured at amortised cost -46.4 -30.2 -45.3 -40.8 137137Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 10 Exchange differences – net Exchange differences have been reported in the income statement as follows: million EUR 2024 2023 Other operating expenses -0.3 -0.3 Fair value change derivatives 0.0 0.1 Total exchange difference in other operating expenses -0.3 -0.2 Exchange rate losses -2.1 6.7 Fair value change derivatives 1.1 -7.4 Total financial income and expense (note 9) -1.0 -0.6 Exchange differences - net -1.3 -0.8 Note 11 Income tax Tax income and expense in income statement million EUR 2024 2023 Tax income(+)/expense(-) comprises; Current tax income(+)/expense(-) this year -5.3 -18.1 Adjustment recognised in current year in relation to current tax of prior years 3.2 -0.4 Deferred tax income(+)/expense(-) 3.2 11.9 Total tax income(+)/expense(-) 1.1 -6.6 Income tax is attributable to: Profit from continuing operations 1.5 -0.4 Profit from discontinuing operations -0.4 -6.2 Total tax income(+)/expense(-) 1.1 -6.6 OECD Pillar Two model rules The group is within the scope of the OECD Pillar Two model rules, an international tax reform which aims to ensure that large multinational groups pay a minimum tax on income arising in each jurisdiction in which they operate. Thus, BEWI becomes liable to pay top-up taxes on profits in each jurisdiction where the effective tax rate calculated according to the GloBE rules is below the minimum tax rate of 15%. Pillar Two legislation has been enacted in Norway and applies as from financial year 2024. Transition rules called “safe harbour” applies for the FY2024-2026. The group are within safe harbour in all tax jurisdictions and therefore no additional tax has been imposed. 138138Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The income tax attributable to the income before taxes differs from the theoretical amount that would have arisen from the application of the local tax rates on income before tax in the group companies, as follows: million EUR 2024 2023 Profit/loss before tax from continuing operations -36.8 -30.6 Profit/loss before tax from discontinued operatons 8.7 21.6 Profit/loss before tax from total operations -28.1 -9.0 Tax income(+)/expense(-) calculated at norwegian corporate income tax rate 6.2 2.0 Difference between corporate tax rate in Norway and other countries -0.2 -0.6 Effect of revenue that is exempt from taxation 0.2 0.5 Effect of non-deductible expenses -2.1 -3.5 Effect of tax losses and tax offsets not recognised as deferred tax assets -7.2 -2.1 Effect of previously unrecognised deferred tax attributable to tax losses carry forward, tax credits and temporary differences 0.3 0.2 Effect of utilisation of tax losses carry forward 0.0 0.3 Effect of write-downs and reversals of deferred tax assets 0.1 -1.9 Effect on deferred tax balances due to change in tax rate 0.0 -0.2 Effect of witholding tax 0.0 -0.6 Adjustment recognised in current year in relation to current tax of prior years 3.2 -0.4 Other 0.6 -0.3 Total tax income(+)/expense(-) in profit or loss 1.1 -6.6 Recognised in other comprehensive income million EUR 2024 2023 Deferred tax Tax on remeasurement of defined benefit obligation 0.3 0.3 Total 0.3 0.3 Deferred tax assets and liabilities 2024 million EUR Opening balance Through acquired business Through divested business Reclassi- ficaton Reported in profit/ loss Reported in other compre- hensive income Exchange differences Closing balance Deferred tax in balance sheet is attributable to: Tax losses carry forward 3.8 - - 2.2 2.6 - -0.2 8.4 Intangible assets -32.7 - - - 0.8 - 0.2 -31.7 Tangible assets -11.7 - - - 1.7 - -0.1 -10.1 Inventories -0.7 - - - 0.1 - 0.0 -0.6 Untaxed reserves -1.2 - - - -0.1 - 0.0 -1.3 Pension assets and liabilities 0.0 - - - -0.3 0.3 0.0 0.0 Provisions 0.0 - - - 0.0 - 0.0 0.0 Other -1.2 - - - -1.6 - 0.1 -2.7 Total net deferred tax assets and liabilities -43.6 - - 2.2 3.2 0.3 0.0 -37.9 of which from continuing operations -32.3 of which from discontinued operations -5.6 EUR 4.9 million of tax credits not recognised as defered tax assets are defered interest deductions in Norway and Sweden. In the final 2023 tax return for BEWI ASA, unutilised tax losses carried forward increased by NOK 2.2 million, which is the basis for a reclassification of EUR 2.2 million. 139139Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Deferred tax assets and liabilities 2023 million EUR Opening balance Through acquired business Through divested business Reclassi- ficaton Reported in profit/ loss Reported in other compre- hensive income Exchange differences Closing balance Deferred tax in balance sheet is attributable to: Tax losses carry forward 1.4 - - 1.3 1.1 - 0.0 3.8 Intangible assets -31.1 - - -3.2 1.3 - 0.4 -32.7 Tangible assets -22.5 - - -0.1 10.6 - 0.2 -11.7 Inventories -0.1 - - -0.3 -0.3 - 0.0 -0.7 Untaxed reserves -0.7 - - -0.4 -0.1 - - -1.2 Pension assets and liabilities -0.5 - - 0.0 0.2 0.3 0.0 0.0 Provisions 0.0 - - 0.0 0.0 - - 0.0 Other -0.3 - - 0.0 -0.9 - - -1.2 Total net deferred tax assets and liabilities -53.8 - - -2.6 11.9 0.3 0.6 -43.5 The reclassification of EUR 2.6 million in the table above is attributable to a finalised acquisition analysis during the year, related to acquisitions in 2022, in which a preliminary goodwill allocation was reduced and tangible and intangible assets increased, leading to higher deferred tax liabilities. Deferred tax assets are reported for tax losses carry forward or temporary differences to the extent that they are likely to be utlised against future taxable profits amounts to EUR 8.4 million. EUR 8.1 million of these have no due date and 0.3 are due in 2027. Tax losses carry forward corresponding to a tax value of EUR 14.9 million (EUR 13.8 million) were not recognised as deferred tax assets, none of which have a due date. The tax losses carry forward by the end of 2024 were attributable to Sweden, Germany, Norway, Spain and Poland. In addition, tax credits attributable to deferred interest deductions corresponding to a tax value of EUR 7.6 million (EUR 2.8 million) falling due between 2027 and 2030, were not recognised as deferred tax assets. Note 12 Intangible assets million EUR Goodwill Trademark Customer relations Technology Patents, licences & IT Total As of 1 January 2023 Acquisition costs 263.8 48.2 95.2 14.9 19.2 441.2 Accumulated amortisations/write-downs -1.0 -0.1 -26.8 -6.1 -9.2 -43.2 Carrying amount 262.8 48.1 68.4 8.7 10.0 398.0 Financial year 2023 Carrying amount brought forward 262.8 48.1 68.4 8.7 10.0 398.0 Exchange differences -3.8 -0.2 -0.8 -0.1 0.0 -5.4 Acquisitions - 0.0 - 0.1 8.2 8.3 Through acquired business - - - - - - Divestment of business - - - - - - Reclassifications 1 -14.5 0.1 13.3 - -0.1 -1.1 Writedown - - - - - - Disposals - - - 0.0 - 0.0 Amortisations continuing operations - -0.8 -8.3 -1.5 -1.5 -11.3 Amortisations discontinued operations - - -0.6 -0.3 -0.0 -0.9 Carrying amount carried forward 244.5 47.3 72.0 7.0 16.6 387.3 As of 31 December 2023 Acquisition costs 245.5 48.2 107.7 14.9 27.3 443.5 Accumulated amortisations/write-downs -1.0 -0.9 -35.7 -7.9 -10.7 -56.2 Carrying amount 244.5 47.3 72.0 7.0 16.6 387.3 140140Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 million EUR Goodwill Trademark Customer relations Technology Patents, licences & IT Total Financial year 2024 Carrying amount brought forward 244.5 47.3 72.0 7.0 16.6 387.3 Exchange differences -1.8 -0.4 -1.0 -0.1 0.0 -3.2 Acquisitions - - - 0.1 3.6 3.6 Through acquired business - - - - - - Divestment of business - - - - - - Reclassifications - - - - 0.0 0.0 Assets held for sale from discontinued operations -37.3 -1.3 -3.1 -0.1 -1.7 -43.6 Amortisations discontinued operations - - -0.6 -0.2 -0.5 -1.3 Writedown - - - - - - Disposals - - - 0.0 0.0 0.0 Amortisations continuing operations - -0.6 -7.9 -1.4 -2.0 -12.0 Carrying amount carried forward 205.4 44.9 59.4 5.2 15.9 330.9 As of 31 December 2024 Acquisition costs 206.4 46.5 103.6 14.8 29.1 400.4 Accumulated amortisations/write-downs -1.0 -1.5 -44.1 -9.6 -13.2 -69.5 Carrying amount 205.4 44.9 59.4 5.2 15.9 330.9 Considerations of impairment need for goodwill and trademark Goodwill and trademarks have an indefinite useful life and are for each each cash generating unit monitored by the executive management. In 2024, previously separately identified cash generating units were combined so that the cash generating units now correspond to the externally reported segments, with the exception of the Automotive business which is included in segment Packaging & Components but for impairment testing purposes considered a separate cash generating unit. The reason for the combination is twofold. The business units within each segment have become more integrated with geographic optimization of the production footprint and increased focus on cross-border sales, leading to a larger degree of non-separable cash flows within the segments. The new cash generating units are also aligned with how the group is structured operationally and how management is organised and consequently also how the executive management monitors the performance of the group Goodwill and trademarks divided by cash generative unit, including a bridge to the cash generating units presented last year, are summarised as follows: Goodwill million EUR 31 Dec 2024 31 Dec 2023 RAW 29.9 30.0 Automotive 6.2 6.2 Insulation & Construction 102.1 102.1 Insulation & Construction Nordics 22.3 Insulation & Construction Netherlands & Belgium 25.4 Insulation & Construction Germany 24.5 Insulation & Construction Lithuania 9.0 Insulation & Construction UK 10.3 Insulation & Construction Spain 10.6 Packaging & Components 79.8 82.3 Packaging & Components Sweden 3.5 Packaging & Components Denmark 11.9 Packaging & Components Netherlands 1.7 Packaging & Components Norway 56.0 Packaging & Components UK 1.2 Packaging & Components Portugal & Spain 5.4 Packaging & Components Finland 2.7 Circular 24.8 23.9 Whereof classified as assets held for sale -37.3 - Total 205.4 244.5 141141Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Trademarks million EUR 31 Dec 2024 31 Dec 2023 RAW 0.6 0.6 Automotive 2.8 2.8 Insulation & Construction 26.4 27.1 Insulation & Construction Nordics 8.3 Insulation & Construction Netherlands & Belgium 7.6 Insulation & Construction Germany 4.3 Insulation & Construction Lithuania 2.6 Insulation & Construction UK 2.4 Insulation & Construction Spain 1.9 Packaging & Components 13.7 14.0 Packaging & Components Denmark 5.0 Packaging & Components Netherlands 2.3 Packaging & Components Norway 5.6 Packaging & Components Portugal & Spain 1.1 Circular 2.7 2.7 Whereof classified as assets held for sale -1.3 - Total 44.9 47.3 The executive management has assessed that revenue growth, operating margin, discount rate and long-term growth are the most critical assumptions in the impairment assessment for all cash generating units. The recoverable amount has been assessed based on estimates of the value in use. The estimates are based on future projected cash flow before tax for the coming three years, as outlined in the annual three-year strategic plans approved by the executive management of the group. The estimates are based on the executive management’s experience, historical data and assessment of market growth and market recovery from last years’ recession. The recovery is mostly projected to be seen in the cash generating units for Insulation & Construction and RAW, which have suffered the most from the downturn in the building and construction industry in recent years. The projections also reflect investments in increased production capacity during the last few years, as well as an increasing demand in the coming years for recycled EPS from Circular. Operating margins are in the long run expected to be in line with historic averages and CAPEX to average 2.5 per cent of net sales. The discount rate after tax amounts to 8.0 per cent (8.2 per cent) for all cash generating units. The long-term sustainable growth rate has been estimated at 2 per cent (2 per cent) for all cash generating units and has been assessed in accordance with industry forecasts. A weakening of any of the critical assumptions included in the strategic plans or a weakening of the revenue growth, operating margin, discount rate or long- term growth beyond the plan period, or an increase in the discount rate that, individually, is reasonably probable, shows that a margin still exists between the recoverable amount and the carrying amount. An increase in the discount rate of 1 percentage points or reduced cash flow of 10 per cent would, for example, not change the outcome of the tests. Management therefore determined that there was no need for impairment of goodwill and other intangible assets. Risks related to climate change has not impacted the tests negatively. Tangible fixed assets of EUR 1.7 million were written down in 2024 (EUR 2.4 million), based on an individual assessment for those assets. 142142Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 13 Tangible assets million EUR Buildings and land Plant and other technical machinery Equipment, tools, fixtures and fittings Construction in progress and advance payments for property, plant and equipment Total As of 1 January 2023 Acquisition costs 283.0 398.5 60.5 24.0 766.0 Accumulated depreciations/write-downs -44.4 -220.5 -32.3 -0.0 -297.3 Carrying amount 238.6 178.0 28.2 23.9 468.8 Financial year 2023 Carrying amount brought forward 238.6 178.0 28.2 23.9 468.8 Exchange differences -2.4 -3.7 -0.1 -0.1 -6.3 Acquisitions 3.1 23.2 0.2 16.6 43.1 Capitalised leases 70.8 8.4 3.5 - 82.7 Writedown -1.9 -0.5 - - -2.4 Reclassifications 1 6.3 5.2 -3.4 -4.5 3.7 Disposals -49.9 -0.8 -0.7 - -51.4 Depreciations continuing operations -18.4 -23.1 -5.3 -0.1 -46.9 Depreciations discontinued operations -1.6 -4.0 -0.5 - -6.1 Carrying amount carried forward 244.6 182.8 22.0 35.9 485.3 As of 31 December 2023 Acquisition costs 311.0 430.8 60.1 36.0 837.9 Accumulated depreciations/write-downs -66.3 -248.1 -38.1 -0.1 -352.6 Carrying amount 244.6 182.8 22.0 35.9 485.3 Amounts above attributable to leases: Depreciations 2023 -15.4 -1.9 -2.9 - -20.1 Carrying amount 31 December 2023 190.0 16.8 7.3 - 214.1 1 The reclassification of EUR 3.7 million in the table above and the EUR -1.1 million reclassification in the note for intangible assets amounts to a net of EUR 2.6 million. That is due to finalised acquisition analyses during the year, related to acquisitions in 2022, in which a preliminary goodwill allocation was reduced and tangible and intangible assets increased also leading to higher deferred tax liabilities. million EUR Buildings and land Plant and other technical machinery Equipment, tools, fixtures and fittings Construction in progress and advance payments for property, plant and equipment Total Financial year 2024 Carrying amount brought forward 244.6 182.8 22.0 35.9 485.3 Exchange differences -3.7 -2.9 -0.3 0.0 -6.9 Acquisitions 3.3 14.6 4.3 7.0 29.2 Capitalised leases 42.7 4.9 3.8 - 51.4 Through acquired business - 0.7 - - 0.7 Divestment of business - - - - - Writedown -1.7 - - - -1.7 Reclassifications 7.4 27.3 0.5 -34.3 0.8 Assets held for sale from discontinued operations -26.8 -26.6 -1.9 -0.8 -56.2 Depreciations discontinued operations -2.1 -4.0 -0.5 - -6.5 Disposals -24.9 -0.8 -0.3 -1.1 -27.2 Depreciations continuing operations -18.2 -26.1 -5.4 - -49.7 Carrying amount carried forward 220.6 170.1 22.1 6.5 419.4 As of 31 December 2024 Acquisition costs 308.9 448.0 66.2 6.6 829.8 Accumulated depreciations/write-downs -88.3 -278.1 -43.9 -0.1 -410.4 Carrying amount 220.6 170.1 22.1 6.5 419.4 Amounts above attributable to leases: Depreciations 2024 -19.1 -3.3 -3.6 -26.0 Carrying amount 31 December 2024 207.3 19.1 7.5 233.9 143143Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 14 Assets and liabilities of disposal group classified as held for sale In December 2024, BEWI agreed on the main terms, and on 5 February 2025 entered into an agreement with, The Rock Capital Group (TRCG), an international investment firm and the owner of Unipol Holland BV, to combine their respective RAW material businesses to create a leading EPS producer in Europe. BEWI will contribute its RAW segment and TRCG its raw facility in Unipol Holland BV into a new RAW group. As part of the transaction, BEWI will receive a cash consideration of up to EUR 75 million, of which EUR 42.5 million is paid following the closing and the remainder is subject to an earn-out agreement. After the transac- tion, BEWI will own 49 per cent in the new RAW group. Closing is expected to take place during the the spring of 2025. The new RAW group, will be recognised in accordance with the equity method. In the consolidated statement of financial position, BEWI’s holding in the RAW group will be reported on one line. Initially, the book value will correspond to the fair value of BEWI’s share-holding, but over time book value will change with, among other things, share of income and dividends from the RAW group. On 24 October 2024, BEWI entered into agreement to merge its traded food packaging business with STOK Emballage (STOK). The traded food packaging business, that consist of BEWI Food AS and BEWI Iceland ehf, has been reported under the P&C segment and had net sales of approximately EUR 70 million in 2024. The agreed consideration will be settled in EUR 20 million cash, and an ownership position in the combined company. Closing is expected to take place during the second quarter of 2025. The RAW business and the traded food packing business are both operations that can be clearly distinguished operationally and for financial reporting purposes. RAW is a separate segment and the traded food packaging business has generated sepa- rate cash flows in geographically separable areas that constitute a substantial portion of the Packaging & Component segment. As a consequence, both RAW and the traded food packaging business are considered discontinued operations, meaning that both revenues/expenses and assets/liabiliets are separated from the rest of the operations in the statement of income and in the statement of financial postion. As the proceeds from the transactions exceed the book value of net assets to be divested, no impairment is recognised as a result of the classification. Financial performance and cash flow information The financial performance and cash flow information presented are for the year ended 31 December 2024 and year ended 31 December 2023. 2024 2023 Before elim. Elim Disc. op. Before elim. Elim Disc. op. Net sales 379.2 -137.1 242.2 413.7 -129.6 284.1 Other operating income 7.6 - 7.6 0.0 - 0.0 Total revenue 386.8 -137.1 249.7 413.7 -129.6 284.1 Raw materials and consumables -240.7 136.5 -104.2 -248.9 129.0 -119.9 Goods for resale -52.9 0.5 -52.3 -57.0 0.6 -56.4 Other external costs -44.8 - -44.8 -50.0 - -50.0 Personnel cost -28.8 - -28.8 -27.4 - -27.4 Depreciation/amortisation and impairment of tangible and intangible assets -7.8 - -7.8 -7.0 - -7.0 Capital gain/loss from sale of assets, adjustment purchase price acquired companies and sale of business -0.4 - -0.4 0.0 - 0.0 Total operating expenses -375.3 -137.1 -238.4 -390.4 -129.6 -260.8 Operating income (EBIT) 11.4 - 11.4 23.4 - 23.3 Financial income 0.5 - 0.5 0.5 - 0.5 Financial expenses -3.3 - -3.3 -2.2 - -2.2 Financial income and expense - net -2.8 - -2.8 -1.7 - -1,7 Profit/loss before tax from discontiued operation 8.7 - 8.7 21.6 - 21.6 Income tax -0.4 - -0.4 -6.2 - -6.2 Profit/loss from discontinued operation 8.3 0.0 8.3 15.4 0.0 15.4 144144Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2024 2023 Exchange differences on translation of discontinued operation 2.0 1.7 Other comprehensive income from discontinued operation 2.0 1.7 Net cashflow from operating activites 23.6 17.0 Net cashflow from investing activites -2.6 -10.2 Net cashflow from financing activities -1.9 -1.1 Net increase/decrease in cash from discontinued operation 19.1 5.7 Assets and liabilities classified as held for sale The following assets and liabilities were reclassified as held for sale in relation to the discontinued operations in RAW and the traded food packaging business as at 31 December 2024: Assets classified as held for sale 31. Dec 2024 31. Dec 2023 Before elim. Elim. Held for sale Goodwill 37.3 - 37.3 - Other intangible assets 6.3 - 6.3 - Land and buildings 26.8 - 26.8 - Plant and machinery 26.6 - 26.6 - Equipment, tools fixtures and fittings 1.9 - 1.9 - Construction in progress 0.8 - 0.8 - Other financial non-current assets 8.6 -8.1 0.5 - Deferred tax assets 0.3 - 0.3 - Inventory 39.2 - 39.2 - Accounts receivables 13.4 -6.0 7.4 - Current tax assets 0.2 - 0.2 - Other current receivables 0.9 - 0.9 - Prepaid expenses and accrued income 2.0 - 2.0 - Cash and cash equivalents 35.9 - 35.9 - Total assets of disposal group held for sale 200.2 -14.1 186.1 - Liabilities directly associated with assets classified as held for sale 31. Dec 2024 31. Dec 2023 Before elim. Elim. Held for sale Pensions and similar obligations to employees 0.3 - 0.3 - Other provisions 0.2 - 0.2 - Deferred tax liability 5.9 - 5.9 - Other interest-bearing liabilities, non-current 41.4 -34.4 7.0 - Other interest-bearing liabilities, current 1.8 - 1.8 - Accounts payables 29.5 -0.3 29.2 - Current tax liabilities 0.1 - 0.1 - Other current liabilities 1.9 - 1.9 - Accrued expenses and deferred income 5.7 - 5.7 - Total liabilities of disposal group held for sale 86.8 -34.7 52.1 - 145145Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 15 Business acquisitions Cash flow from acquisition of business million EUR 2024 2023 Cash consideration -2.6 -0.2 Cash in acquired business - - Total cash out/-inflow -2.6 -0.2 Business acquisitions during the year BEWI Automotive Germany GmbH As announced in July 2024, BEWI signed an agreement to acquire assets related to the production of EPP-based components from the insolvent group Philippine & Co GmbH Technische Kunststoffe KG (Philippine TK). The acquisition was completed in the fourth quarter and increases BEWI’s capacity within the production of EPP components for the automotive business. The agreement includes acquisition of equipment from two facilities, inventory, customer stock, and personnel, in addition to IPR and certificates. This includes the operations on the Schkopau site (near Leipzig). The company is consolidated as a subsidiary as from 1 October 2024. Izoblok S.A. BEWI acquired 8.86% of the shares, 6.64% of the votes, in Izoblok S.A in June 2024. This increases BEWI’s ownership in Izoblok S.A. to 73.14% of the shares, 79.85% of the votes. The combined price for these acquisitions are 2.6 mEUR. Business acquisitions 2023 In February 2023, BEWI acquired the remaining 25% of the shares in Poredo Holding BV for a cash consideration. The company, located in the Netherlands, is working with converted recycled EPS within the Circular segment. In March 2023, a minor cash adjustment, in favour of BEWI, was made to the purchase price of Aislamientos y Envases S.L. “(Aislenvas”), acquired in December 2022. The net effect of these two transactions resulted in a net cash outflow of EUR 0.2 million. Note 16 Shares in associates Name Carrying amount 31 Dec 2023 Sold Dividend Share of income Exchange difference Carrying amount 31 Dec 2024 HIRSCH Porozell GmbH 4.5 - - -1.0 0.1 3.6 HIRSCH France SAS 5.6 - -0.6 - 5.0 Energijägarna & Dorocell AB 0.9 -0.7 - -0.1 - 0.0 Remondis Technology Spólka z o.o 0.4 - -0.3 0.2 - 0.3 Total 11.4 -0.7 -0.3 -1.5 0.1 9.0 Name Carrying amount 31 Dec 2022 Sold Dividend Share of income Exchange difference Carrying amount 31 Dec 2023 HIRSCH Porozell GmbH 5.8 - -2.0 0.7 - 4.5 HIRSCH France SAS 5.5 - 0.1 - 5.6 BEWI EPS ehf. 0.8 -0.8 - 0.0 - 0.0 Energijägarna & Dorocell AB 1.0 - - -0.1 - 0.9 Remondis Technology Spólka z o.o - - -0.2 0.6 - 0.4 Total 13.2 -0.8 -2.2 1.3 - 11.4 146146Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Summarised financial information for associates 2024 Net sales EBITDA Operating profit (EBIT) Net profit HIRSCH Porozell GmbH 89.5 0.9 -4.0 -2.9 HIRSCH France SAS 62.7 2.9 -1.4 -1.8 Energijägarna & Dorocell AB 3.4 -0.4 -0.4 -0.3 Remondis Technology Spólka z o.o 4.2 0.9 0.8 0.6 31 Dec 2024 Non-current assets Current assets Non-current liabilities Current liabilities Net debt HIRSCH Porozell GmbH 35.7 17.8 14.7 9.3 7.0 HIRSCH France SAS 32.3 19.2 18.7 16.7 8.9 Energijägarna & Dorocell AB - - - - - Remondis Technology Spólka z o.o 0.5 0.9 0.1 0.4 -0.2 The balance sheets items in the table above are adjusted to reflect adjustments made by BEWI when the associates are included in the consolidated accounts by applying the equity method. The balance sheets in the statutory accounts for these companies will therefore deviate to the table above for some of the items. HIRSCH Porozell GmbH (34 per cent ownership) In connection with the acquisition of Synbra in 2018, 66 per cent of Synbra’s shares in the German company Isobouw GmbH was divested to Hirsch Servo Group. At the same time, BEWI obtained 34 per cent in the newly incorporated company Hirsch Porozell GmbH, which acquired Saint Gobain’s insulation operations at four sites in Germany. The other 66 per cent is held by Hirsch Servo Group. In 2019, Isobouw GmbH was merged into Hirsch Porozell GmbH and the combined company now operates six insulation production sites in Germany. Hirsch France SAS (34 per cent ownership) On 31 December 2019, BEWI, together with Hirsch Servo Group, closed a deal in which six insulation production sites in France and 49.9 per cent of the shares in the French company Issosol SAS were acquired from Placopatre SA, a subsidiary of Saint Gobain. The acquisitions were done through a newly incorporated French company, Hirsch France SAS, 34 per cent owned by BEWI and 66 per cent owned by Hirsch Servo Group. Energijägarna & Dorocell AB (49.8 per cent ownership) Energijägarna & Dorocell AB was sold in December 2024. Remondis Technology Spólka z o.o (34 per cent ownership) BEWI owns 34% in the Polish recycling company Remondis Technology Sp. z.o.o since the acquisition of BEWi Drift Holding AS in 2020. The company is, among other things, collecting and reusing EPS for recycling in extruders and selling the end products to BEWI’s RAW business. 147147Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 17 Financial instruments per category 31 December 2024 million EUR Financial assets measured at fair value through profit and loss Financial assets measured at amortised cost Total Balance sheet assets Other long-term receivables - 0.1 0.1 Participations in other companies 0.0 - 0.0 Accounts receivables - 63.2 63.2 Accounts receivables - asset held for sale - 7.4 7.4 Current derivative assets 1.6 - 1.6 Cash and cash equivalents - 36.8 36.8 Cash and cash equivalents - asset held for sale - 35.9 35.9 Total 1.6 143.4 145.0 31 December 2024 million EUR Financial liabilities measured at fair value through profit and loss Financial liabilities measured at amortised cost Total Balance sheet liabilities Non-current bond loan - 249.4 249.4 Non-current liabilities to credit institutions - 70.3 70.3 Non-current liabilities leases - 221.5 221.5 Current liabilities to credit institutions - 4.0 4.0 Overdraft facillity - 1.4 1.4 Current liabilities leases - 28.0 28.0 Current derivative liability 3.6 - 3.6 Account payables - 47.8 47.8 Accounts payables - asset held for sale - 29.2 29.2 Total 3.6 651.7 655.3 31 December 2023 million EUR Financial assets measured at fair value through profit and loss Financial assets measured at amortised cost Total Balance sheet assets Other long-term receivables - 0.0 0.0 Participations in other companies 0.5 - 0.5 Accounts receivables - 129.3 129.3 Current derivative assets 3.6 - 3.6 Cash and cash equivalents - 63.6 63.6 Total 4.1 192.9 197.0 31 December 2023 million EUR Financial liabilities measured at fair value through profit and loss Financial liabilities measured at amortised cost Total Balance sheet liabilities Non-current bond loan - 247.9 247.9 Non-current liabilities to credit institutions - 125.0 125.0 Non-current liabilities leases - 201.3 201.3 Current liabilities to credit institutions - 7.4 7.4 Overdraft facillity - 4.4 4.4 Current liabilities leases - 24.8 24.8 Current derivative liability 3.2 - 3.2 Account payables - 81.6 81.6 Total 3.2 692.4 695.6 148148Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 18 Accounts receivable million EUR 31 Dec 2024 31 Dec 2023 Accounts receivables 64.2 130.7 Deducted: loss allowance -1.0 -1.4 Accounts receivables - net 63.2 129.3 The ageing analysis of all account receivables is clear from below: million EUR 31 Dec 2024 31 Dec 2023 Not yet matured 42.4 102.1 1–30 days 15.7 20.7 31–60 2.8 3.4 > 61 days 3.2 4.5 Deducted: loss allowance -1.0 -1.4 Accounts receivables - net 63.2 129.3 31 Dec 2024 31 Dec 2023 Matured account receivables not part of the provisions for loss allowance 20.8 27.2 The group is applying the simplified approach for estimating credit losses. Estimated life-time cash shortfalls is the basis for calculating credit losses for accounts receivables. For this purpose, accounts receivables are grouped based on certain char- acteristics. The principles for writing off accounts receivables are based on prerequisites such as insolvency, failed legal and other collection processes, credit risk assessments based on credit information provided by credit agencies, identified payment behavior, company specific information such as changes in company management or lost contracts and macro-economic outlook for industries and countries. Credit losses on accounts receivables are reported in operating income (EBIT). Reversals of prior credit losses are also reported in operating income. Carrying amounts, per currency, for account receivables and other receivables are the following: million EUR 31 Dec 2024 31 Dec 2023 SEK 2.9 13.7 EUR 31.5 59.2 GBP 14.0 11.1 NOK 7.4 26.3 DKK 6.2 17.3 ISK 0.0 1.0 USD 0.9 0.4 CAD 0.1 0.1 PLN 0.1 0.1 Other 0.1 0.0 63.2 129.3 In September 2024, BEWI entered into a receivables purchase agreement (RPA) with one of the banks granting the revolving credit facility, as further outlined in note 25 Borrowings. The RPA is an uncommitted facility with a frame of EUR 75.0 million, giving BEWI the right to sell accounts receivable meeting certain criteria related to, among other things, credit insurance, credit limits, credit terms and currency. At the time of the sale, BEWI receives 90 per cent of the nominal value of the accounts receiva- ble upfront and the remaining portion when the customer has paid the receivable to the bank. Benefits from credit insurances have also been transferred to the bank accordingly. Substantially all risks and rewards of ownership of the receivables are transferred to the bank and the portion of the receivables sold therefore qualify for derecognition from the balance sheet. The remaining 10 per cent of the nominal amount of the receivable sold is recognised as an other current receivable on the balance sheet and amounted to EUR 6.1 million as of 31 December 2024. By the end of 2024, a majority of the accounts receivable in Norway, Sweden, Denmark, Finland and the Netherlands were sold, impacting all segments except Circular. As of 31 December 2024, EUR 60.8 million of accounts receivable outstanding were sold, reducing the accounts receivable recognised on the face of the balance sheet with that same amount. 149149Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 19 Inventory The expenditure for inventory carried as an expense forms part of the items raw materials and consumables and goods for resale in the income statement and amounts to EUR 347.8 million (EUR 374.3 million). EUR 0.1 million (EUR 0.4 million) was expensed as write-downs of inventory in 2024. The group reversed EUR 0.0 million (EUR 0.2 million) in 2024 of earlier write-downs of the inventory. The expense and reversed amount is reported in the item raw materials and consumables in the income statement. Note 20 Prepaid expenses and accrued income million EUR 31 Dec 2024 31 Dec 2023 Prepaid energy tax expenses 0.5 0.6 Accrued bonus and discounts 1.8 1.1 Other items 19.2 12.5 Total 21.4 14.2 Note 21 Share capital The number of shares as of December 31, 2024 amounted to 191 722 290, each with a par value of NOK 1. Each share entitles to one vote. All shares issued by the parent company are fully paid. Fully paid ordinary share Type of change Date of decision Changes in number of shares Change in share capital Total number of shares Total share capital (NOK) Par value (NOK) As of 31 Dec 2022 191 347 992 191 347 992 New share issue 24 Feb 2023 374 298 374 298 191 722 290 191 722 290 1.00 As of 31 Dec 2023 191 722 290 191 722 290 - - - - - - As of 31 Dec 2024 191 722 290 191 722 290 Following the exercise of share options by option holders under the company’s share option programme, the board of directors resolved to increase the company’s share capital by NOK 374 298, by the issuance of 374 298 new shares on the 18 February 2023 at a subscription price of NOK 22.96 per share, by use of the authorisation granted by the general meeting on 16 November 2020. 150150Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Largest shareholders Name Shares Per cent BEWI Invest AS 1 97 958 328 51.09 HAAS AS 32 670 000 17.04 Kverva Industrier AS 16 946 573 8.84 M2 Asset Management AB 6 441 088 3.36 J.P. Morgan SE 4 974 234 2.59 UBS AG 4 320 772 2.25 Interactive Brokers LLC 2 284 127 1.19 Union Bancaire Privee, UBP SA 2 165 467 1.13 Skandinaviska Enskilda Banken AB 1 305 828 0.68 Strawberry Capital AS 1 112 243 0.58 Other 21 543 630 11.24 Total 191 722 290 100.00 1 BEWI Invest AS are owned by members of the Bekken family. Note 22 Cash flow hedge reserve million EUR Currency forwards Interest rate swaps Total Hedge reserve Opening balance 1 January 2023 - - - Change in fair value of hedging instrument recogised in OCI (+) -0.1 - -0.1 Recalssified from OCI to profit or loss (-) - - - Deferred tax (-) - - - Closing balance 31 December 2023 -0.1 - -0.1 Opening balance 1 January 2024 -0.1 - -0.1 Change in fair value of hedging instrument recogised in OCI (+) 0.1 -3.3 -3.2 Recalssified from OCI to profit or loss (-) - - - Deferred tax (-) - - - Closing balance 31 December 2024 - -3.3 -3.3 Reference to Note 3 Financial risk management, chapter Interest rate risk. 151151Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 23 Share-based incentive programme In November 2020, the board of directors exercised the authorisation given by the Extraordinary General Meeting on 16 November and launched a share-based incentive programme (LTI 2020) to a maximum of 25 key employees in the company, involving a maximum of 2 875 000 share options, and entitling the participants in the programme to subscribe for the same number of shares in the company during a three-year period. The number of share options outstanding as of 31 December 2024 represents 1.0 per cent of the number of shares outstanding as of that date. In August 2024, the board of directors exercised the authorisation given by the Annual General Meeting on 4 June 2025 and decided to launch an additional share-based incentive programme (LTI 2024-LTI 2026) to a number of key employees in the company. The program will run for 3 years, with annual allocation to participants. Each annual allocation will follow the same grant and vesting structure. Decisions on participants and allocation will be made separately each year and the allocation for 2024 (LTI 2024) consists of 26 participants and 1 233 333 options. The number of share options outstanding as of 31 December 2024 represents 0.6 per cent of the number of shares outstanding as of that date. The purpose of these programmes is to further align the interests of the company and its shareholders by providing incentives in the form of awards to employees to motivate them to contribute materially to the success and profitability of the company. The programmes also enable the company to attract and retain such employees. Settlement of the options may, at the discre- tion of the board of directors, be done by issuing new shares or by using, if available, shares bought back by the company. LTI 2020: At grant date on 19 November 2020, 2 625 000 share options were granted to 22 key employees. The share options entitle the participants to subscribe for shares at a pre-set strike price, which is adjusted for dividends paid. Strike price at grant date was NOK 24.48, equal to 110 per cent of the average share price during five days preceding the grant date on 19 November 2020. As of 31 December 2024, strike price was NOK 22.96 (22.96). The gain per option may however not exceed the strike price at the time of exercise, multiplied by three minus strike price at grant date. The number of exercisable options will be reduced proportionally so that the maximum gain does not exceed the maximum gain per option multiplied by the numbers of options granted. This gain is calculated based on the average share price five days prior to the period of exercise. LTI 2024: At grant date 15 November 2024, 1 233 333 were granted to 26 key employees. The share options entitle the par- ticipants to subscribe for shares at a pre-set strike price, which is adjusted for dividends paid. Strike price at grant date was NOK 25.57, equal to 110 per cent of the average share price during five days preceding the grant date on 15 November 2024. As of 31 December 2024, strike price was NOK 25.57. The gain per option may however not exceed NOK 50 at the time of exercise. The number of exercisable options will be reduced proportionally so that the maximum gain does not exceed the maximum gain per option multiplied by the numbers of options granted. This gain is calculated based on the average share price five days prior to the period of exercise. In the event the company is not capable of delivering shares (for reasons being lack of approval in the general meeting or lack of board authorisation to issue shares or lack of own shares in the Company) following an exercise of options, the company shall fulfil its obligations under the programme towards participants other than Swedish residents by way of making a cash payment equal to the excess, if any, of the share price over the strike price, multiplied by the number of exercisable options. Both programmes vest in three tranches during a three-year period, as presented in the table below. The options are exercisa- ble during a window period after the release of the quarterly reports for the fourth and second quarters. Options that are not exercised within 5 years from the date of grant will lapse and become void. Percentage of option programme vesting LTI 2020 LTI 2024 Vesting date Expiry date Vesting date Expiry date 20% 19 November 2021 19 November 2025 15 November 2025 15 November 2029 30% 19 November 2022 19 November 2025 15 November 2026 15 November 2029 50% 19 November 2023 19 November 2025 15 November 2027 15 November 2029 The fair value of each option at grant date for LTI 2020 was calculated at NOK 4.59 per option and for LTI 2024 NOK 7.39 per option. The Black-Scholes model was used for calculation of fair value and the following assumptions were used: LTI 2020 LTI 2024 Number of options 2 625 000 1 233 333 Number of potential shares 2 625 000 1 233 333 Contractual life 5 years 5 years Strike price 24.48 25.57 Share price 22.10 25.80 Expected lifetime 3.30 years 3.30 years Volatility 34.32% 33.04% Interest rate 0.32% 3.72% Dividend 0.00 0.00 152152Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The total value of the options granted in 2020 was EUR 1.1 million and the total value for the options granted in 2024 was EUR 0.8 million. EUR 0.0 million (0.2) of that was recognised as personnel costs during the year. In addition, EUR 0.0 million was recognised as personnel costs related to social security charges. (2023 EUR 0.7 million in income due to reversal of accrual). The change in the number of options outstanding during the year is presented in the table below: LTI 2020 LTI 2024 2024 2023 2024 2023 Outstanding as of 1 January 1 999 202 2 373 500 - - Granted during the year - - 1 233 329 - Adjusted - - - - Exercised - -374 298 - Terminated -31 250 - - - Outstanding as of 31 December 1 967 952 1 999 202 1 233 329 - Vested but no exercised 1 967 952 1 999 202 1 233 329 - No options were exercised during 2024. During the exercise window in March 2023, 374 298 shares were issued at a subscription price of 22.96. The average share price at the time of exercise in 2023 was NOK 43.27. 153153Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 24 Earnings per share million EUR 2024 2023 Profit for the period attributable to parent company shareholders (million EUR) -29.6 -18.0 Average number of shares 191 722 290 191 672 042 Effect on options to employees - - Diluted average number of shares 191 722 290 191 672 042 Basic & diluted earnings per share - EUR From continuing operations -0.20 -0.15 From discontinuing operations 0.04 0.06 Total basic earnings per share - EUR -0.15 -0.09 Basic & diluted earnings per share - NOK From continuing operations -2.30 -2.00 From discontinuing operations 0.51 0.92 Total basic earnings per share - NOK -1.80 -1.08 EPS in NOK is calculated using the average rate in the period. Reconciliation of earnings used in calculating earning per share, million EUR 2024 2023 Basic and diluted earnings per share - EUR Profit from continuing operations -35.3 -31.0 -Less profit from continuing operations attributable to non-controlling interest -2.6 -2.5 Profit from continuing operations attributable to ordinary equity holders -38.0 -33.4 Profit from discontinued operation 8.3 15.4 Profit used in calculation basic and diluted earnings per share -29.6 -18.0 The number of shares outstanding (191 722 290) are unchanged compared to 31 December 2023. Earning per share is calcu- lated by dividing profit attributable to parent company shareholders by the weighted number of ordinary shares during the period. Note 25 Borrowings Interest-bearing liabilities million EUR 31 Dec 2024 31 Dec 2023 Non-current Bond loan 249.4 247.9 Liabilities to credit institutions 70.3 125.0 Liabilities leases 221.6 201.3 Liabilites leases that are classified as held for sale 7.0 - Other non-current liabilities 0.2 0.4 Total long-term borrowings 548.5 574.6 Current Liabilities to credit institutions 4.0 7.4 Liabilities leases 28.0 24.8 Liabilites leases that are classified as held for sale 1.8 - Overdraft 1.4 4.4 Total current borrowings 35.2 36.6 Total borrowings 583.7 611.2 Specification of net debt Net debt by the end of the reporting period, million EUR 31 Dec 2024 31 Dec 2023 Interest-bearing liabilities 583.7 611.2 Cash and cash equivalents 36.8 63.6 Cash and cash equivalents that are classified as held for sale 35.9 - Net debt in including IFRS 16 511.0 547.6 Subtracting liabilites capitalised in accordance with IFRS 16 Non-current liabilites leases -219.8 -193.0 Current liabilites leases -27.2 -23.5 Total -247.0 -216.5 Net debt excluding IFRS 16 264.0 331.1 154154Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Change in net debt, million EUR 31 Dec 2024 31 Dec 2023 Change in interest-bearing liabilities -27.5 13.0 Change in cash and cash equivalents Impact from cash flow for the period -9.2 -16.7 Impact from exchange differences 0.1 0.6 Change in net debt including IFRS 16 -36.6 -3.1 Adding back change in IFRS 16 leasing liabilities -30.5 -48.1 Change in net debt excluding IFRS 16 -67.1 -51.2 Change in interest-bearing liabilities Bond loan Liabilities to credit institutions Liabilities leasing Other financial non-current liabilities Overdraft Total Interest-bearing liabilities as of 31 December 2023 247.9 132.4 226.1 0.4 4.4 611.2 Cash flow affecting changes Borrowings - - - - - - Repayment of loans -1.6 -54.7 - -0.2 -3.0 -59.5 Repayment of leasing liabilities - - -21.1 - - -21.1 Total cash flow in financing activities -1.6 -54.7 -21.1 -0.2 -3.0 -80.6 Changes not affecting cash flow Capitalised leasing - - 58.3 - - 58.3 Revaluation of bond 1.2 - - - - 1.2 Amortisation financing costs 1.9 - - - - 1.9 Exchange differences - -3.4 -4.9 - - -8.3 Total changes not affecting cash flow 3.1 -3.4 53.4 0.0 0.0 53.1 Total change 1.5 -58.1 32.3 -0.2 -3.0 -27.5 Interest-bearing liabilities as of 31 December 2024 249.4 74.3 258.4 0.2 1.4 583.7 Cash outflow from capitalised financing costs incurred in 2024, related to the bond loan, have been classified as cash outflow from repayment of loans in the cash flow statement and in the table above. Change in interest-bearing liabilities Bond loan Liabilities to credit institutions Liabilities leasing Other financial non-current liabilities Overdraft Total Interest-bearing liabilities as of 31 December 2022 246.9 157.3 170.5 0.7 22.8 598.2 Cash flow affecting changes Borrowings - 64.9 - - - 64.9 Repayment of loans -0.1 -86.3 - -0.2 -17.6 -104.2 Repayment of leasing liabilities - - -16.9 - - -16.9 Total cash flow in financing activities -0.1 -21.4 -16.9 -0.2 -17.6 -56.2 Changes not affecting cash flow Capitalised leasing - - 76.7 - - 76.7 Amortisation financing costs 1.1 - - - - 1.1 Exchange differences - -3.5 -4.2 -0.1 -0.8 -8.6 Total changes not affecting cash flow 1.1 -3.5 72.5 -0.1 -0.8 69.2 Total change 1.0 -24.9 55.6 -0.3 -18.4 13.0 Interest-bearing liabilities as of 31 December 2023 247.9 132.4 226.1 0.4 4.4 611.2 Cash outflow from capitalised financing costs incurred in 2023 and 2024, related to the bond loan, have been classified as cash outflow from repayment of loans in the cash flow statement and in the table above. 155155Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Bond loans Frame Amount outstanding Date of issuance Maturity/redemtion date EUR 250 million EUR 251.2 million 3 September 2021 3 September 2026 The EUR 250 million bond, which is unsecured and linked to a sustainability framework, matures on 3 September 2026, with a possibility for BEWI to unilaterally decide on an early redemption after 3 March 2025 of 50 per cent of the bonds outstanding at that date. The bond terms stipulate a sustainability performance target in which BEWI has committed to collect 45 000 tonnes of EPS for recycling annually by 2024. If not reaching that target, an additional 0.75 per cent of the nominal value of the bond will be redeemed on maturity. By 31 December 2024, the group had not reached the target. Consequently, a EUR 1.2 million revaluation of the bond loan was made in the fourth quarter of 2024, and the same amount was reported as a financial expense. 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 recognized during the quarter are presented in the table below. Nominal interest Average interest Bond loan Interest terms 2024 2023 2024 2023 EUR 250 million Euribor 3 m + 3.15% 6.08-7.11% 6.95-7.11% 9.26% 7.45% Liabilities to credit institutions, overdraft and factoring debt The group has a Revolving Credit Facility (RCF), granted by two banks. During 2023, the facility amounted to a total of EUR 150 million. In 2024, BEWI agreed with the two banks to reduce the credit limit and as at 31 December 2024 the credit limit had been reduced to EUR 123.5 million. In the beginning of 2025, the credit limit was further reduced to EUR 111.5 million. As part of this facility, one of the participating banks is providing an overdraft facility. As at 31 December 2024, the RCF was utilised by EUR equivalent 67.7 million (EUR 119.2 million). Interest on utilised amount ranged between 5.5% - 7.0% during the year. As at 31 December 2024, nothing of the overdraft was utlised (EUR 0.0 million). Interest on utilised overdraft during the year ranged betewen 3.6% - 8.1%. In September 2024, BEWI entered into a receivables purchase agreement (RPA) with one of the two banks granting the RCF. The RPA has more attractive margins than the RCF and provides a more flexible financing structure for the group’s working capital. The RPA is an uncommitted facility with a frame of EUR 75 million. The available credit under the RCF, is reduced by the amount utilised under the RPA. On 31 December 2024, EUR 54.7 million was utilised under the RPA facility. The utilised portion of the RPA is subject to an interest charge, which is recognised as a financial expense in the statement of income. Interest on the utilised portion of the RPA during the year ranged from 4.1% - 6.3%. Interest-bearing liabilities in acquired subsidiaries are normally settled and refinanced internally after the acquisition. However, in a specific cases liabilities to credit institutions in acquired companies, including overdraft facilities, have not been subject refi- nancing post acquisition. Such liabilities to credit institutions have carried an interest in the range of 2.0% - 9.0% during 2024. Liabilities leases For leases capitalised in accordance with IFRS 16, the interest rates used for discounting the future lease payments have been based on the Group’s bond trading and Euro benchmark spreads, adjusted for the fact that the lease liabilities are repaid over the lease-term in contrast to the bonds that are repaid in full at maturity. Each company or relevant business unit has been given a credit rating, derived from certain financial KPI’s, based on Moody’s methodology. These ratings have been applied to the spreads to arrive at the discount rates. Depending on the lease-term, the rating and when the lease commenced, the discount rates vary from 2.3-16.8% for contracts maturing within 1-3 years to 4.4-12.9% for contracts maturing after 10 years. million EUR 31 Dec 2024 31 Dec 2023 Overdraft facility (equivalent amount in million EUR) 123.5 150.0 Overdraft utilised 67.7 119.2 Covenants and security provided The revolving credit facility agreement and the terms and conditions for the bond loans state certain covenants that the group has to comply with, referred to as Leverage Ratio and Interest Coverage Ratio. Leverage Ratio is defined as net debt to EBITDA and Interest Coverage Ratio as EBITDA to net finance charges, where both EBITDA and net finance charges are adjusted. EBITDA is adjusted for non-recurring items, as defined in the loan agreements. The impact of IFRS 16 on net debt and EBITDA is excluded in the covenant calculation. Compliance with the covenants is calculated each quarter-end with the respect to the revolving credit facility agreement, whereas compliance in the bond loan agreement is triggered by certain events, such as new financial indebtedness or dividend payments from the parent company. The group has been in compliance with the loan agreements in both 2024 and 2023. Management believes that the group will be in compliance with the loan agreements during the next 12 months. Should the group not meet the covenants and be in compliance with the loan agreement for the revolving credit facility, any utilisation of that facility would be classified as current in the balance sheet. As of 31 December 2024, the utilisation amounted to EUR 67.7 million and was classified as a non-current liability to credit institutions. Events triggering compliance with the bond covenants are normally within control of the group. The revolving credit facility is a super senior credit facility and the bond loan is subordinated the revolving credit facility. Some liabilities to credit institutions and overdraft facilities not refinanced post acquisition of subsidiaries are subject to securi- ties granted in the form of mortgages and pledges. The value at the balance sheet day of the securities provided, is presented in note 30 Pledged assets. 156156Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Currency exposure Carrying amounts per currency (in millions) for the group’s interest-bearing liabilities are as follows: 31 Dec 2024 31 Dec 2023 million EUR Incl. IFRS 16 Excl. IFRS 16 Incl. IFRS 16 Excl. IFRS 16 SEK 107.6 67.8 160.1 119.1 EUR 349.2 255.9 325.0 261.9 NOK 80.0 9.1 80.0 7.9 DKK 28.1 - 26.8 - GBP 17.3 2.8 17.6 4.2 Other 1.5 1.1 1.7 1.5 583.7 336.7 611.2 394.6 Maturity The tables below presents the maturity of the discounted cash flows of the group’s interest-bearing liabilities. As of 31 December 2024 < 1 yr. 1–2 yr. 2–5 yr. > 5 yr. Bond loans - 249.4 - - Liabilities to credit institutions 4.0 68.5 1.3 0.5 Liabilities leases 29.9 29.0 67.0 132.5 Other financial non-current liabilities 0.2 - - - Overdraft 1.4 - - - Total 35.5 346.9 68.3 133.0 As of 31 December 2023 < 1 yr. 1–2 yr. 2–5 yr. > 5 yr. Bond loans - - 247.9 - Liabilities to credit institutions 7.4 122.0 3.0 - Liabilities leases 24.8 24.0 58.6 118.7 Other financial non-current liabilities - 0.4 - - Overdraft 4.4 - - - Total 36.6 146.4 309.5 118.7 Note 26 Pensions and similar obligations to employees The group provides defined benefit pension plans in the UK. The defined benefit pension plans in the UK, which are closed for new participants, originate from the acquisition of Synbra and are related to Synbra’s previous operations in the UK. Due to contractual obligations, the group had to pay a lump sum to the UK funds in 2018, following the change of ownership of Synbra. As a result, the fair value of plan assets in one of the funds exceed the present value of the pension obligation and a net pension asset is recognised on the balance sheet. The net pension asset is not subject to asset ceiling limitations. The defined benefit pension obligations, calculated in accordance with the Projected Unit Credit Method, are, among other things, based on estimated salary increases, apart from the UK funds, which are closed for new participants and where the existing participants are no longer employed by the group. In addition to the defined benefit pension plans, the group also provides other long-term benefits in the Netherlands through a so called Jubilee plan, which entitles the participants salary benefits for long-term service. The Jubilee plan is calculated in accordance with the Projected Unit Credit Method and is presented below as Other long-term benefits. 157157Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The amounts reported on the balance sheet have been calculated as follows: Defined benefit pension plans Other long-term benefits million EUR 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Present value of funded obligations -29.9 -32.5 - - Fair value of plan assets 31.1 34.1 - - 1.2 1.5 - - Present value of unfunded obligations - - -0.9 -1.0 Net asset(+)/liability(-) as of 31 December 1.2 1.5 -0.9 -1.0 Net pension asset United Kingdom 1.9 2.8 - - 1.9 2.8 - - Pension obligations and other long-term benefits Netherlands - - -0.9 -1.0 Finland - -0.2 - - United Kingdom -0.7 -1.0 - - -0.7 -1.2 -0.9 -1.0 The amounts reported on the balance sheet and changes in the defined benefit pension plans during the year are as follows: Defined benefit pension plans Other long-term benefits 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Costs of service during the current year 0.0 0.0 -0.1 -0.1 Past service cost - 0.0 - - Net Interest income/expense 0.1 -1.5 0.0 0.0 Total reported in the income statement 0.1 -1.6 -0.1 -0.1 Return on plan assets excluding amounts included in interest expenses/income -3.3 -0.6 - - Actuarial gains/losses from changes in demographic assumptions 0.0 0.4 - - Actuarial gains/losses from changes in financial assumptions 1.8 -0.6 - - Experience based gains/losses 0.3 -0.4 - - Total reported in other comprehensive income -1.3 -1.2 - - Defined benefit pension plans Other long-term benefits Change in present value of the obligation 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 As of 1 January -32.5 -31.7 -1.0 -0.9 Liabilitiy from discontinued operation 1.2 0.1 Current service cost 0.0 0.0 -0.1 -0.1 Past service cost - - - - Interest cost -1.5 -1.5 0.0 0.0 Actuarial gains/losses 2.1 -0.6 - - Benefits paid 2.2 2.0 0.1 0.1 Settlements - - 0.0 -0.1 Exchange rate differences -1.4 -0.6 - - As of 31 December -29.9 -32.5 -0.9 -1.0 158158Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Defined benefit pension plans Other long-term benefits Change in fair value of plan assets 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 As of 1 January 34.1 34.0 - - Assets held for sale, discontinued operations -1.0 Interest income 1.6 1.7 - - Return on plan assets excluding amounts included in interest expenses/income -3.3 -0.6 - - Contributions by the employer 0.5 0.3 - - Benefits paid -2.2 -2.0 - - Settlements - - - - Exchange rate differences 1.5 0.7 - - As of 31 December 31.1 34.1 - - The most critical assumptions for the defined benefit pensions were: 31 Dec 2024 31 Dec 2023 United Kingdom Discount rate 5.35-5.50% 4.50-4.80% Salary increase n/a n/a Inflation (based on CPI and RPI assumption) 2.95-3.50% 2.80-3.30% Pension increase (based on CPI and RPI assumptions) 2.00-3.30% 1.90-3.20% Finland Discount rate 3.25% Salary increase 2.75% Inflation 2.25% The range in assumed inflation in the United Kingdom reflects different assumptions used for CPI versus RPI. The range in assumed pension increase in the UK reflects different limits linked to years in which the pension was accrued and different inflation metrics applied for those limits. The most critical assumptions for other long-term benefits were: 31 Dec 2024 31 Dec 2023 Discount rate 3.15% 3.25% Salary increase 2.19% 2.30% The sensitivity in the net defined benefit pension asset/liability for changes in essential assumptions are presented below (minus equals decrease in net asset/increase in net liability). Change in fair value of plan assets, million EUR Change Increase in assumption Decrease in assumption Discount rate 0.50% 1.1 -1.2 Salary increase 0.50% 0.0 0.0 Pension increase 0.25% -0.4 0.4 For the financial year of 2025, the defined pension plan fees are expected to amount to EUR 0.3 million. Plan asset allocation 31 Dec 2024 31 Dec 2023 Bonds 12.4 12.0 Equities 4.5 5.0 Hedge funds and alternatives 13.6 15.5 Insurance contracts - 1.0 Real estate 0.0 0.0 Cash 0.6 0.5 31.1 34.1 Analysis of expected undiscounted payments of defined benefits 31 Dec 2024 31 Dec 2023 Within 1 year 3.3 2.9 1–2 years 2.3 2.2 3–5 years 6.9 6.9 5 years or more 42.5 43.3 159159Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 27 Other provisions million EUR Restoration of environment Restructuring measures Staff benefits Guarantee Total As of 1 January 2023 0.1 0.0 0.0 0.3 0.4 Reported in the income statement: – additional provisions 0.0 4.8 - 0.1 4.9 Exchange differences - 0.1 - -0.0 0.0 Utilised durig the year - -2.6 - -0.2 -2.7 As of 31 December 2023 0.1 2.3 0.0 0.1 2.5 million EUR Restoration of environment Restructuring measures Staff benefits Guarantee Total As of 1 January 2024 0.1 2.3 0.0 0.1 2.5 Reported in the income statement: – additional provisions - - - - - Reclassification -0.1 - -0.0 0.0 -0.1 Exchange differences - 0.0 - -0.0 0.0 Utilised durig the year - -2.3 - -0.1 -2.4 As of 31 December 2024 - - - - - million EUR 31 Dec 2024 31 Dec 2023 Long-term provision - 0.2 Short-term provision - 2.3 Total provision - 2.5 Note 28 Accrued expenses and deferred income million EUR 31 Dec 2024 31 Dec 2023 Accrued wage debt 5.0 6.4 Accrued social security fees 2.9 3.4 Accrued holiday pay including social security fees 12.6 14.2 Accrued customer bonuses 13.2 15.9 Accrued interest 1.7 1.9 Other items 17.2 18.7 Total 52.5 60.4 Note 29 Contingent liabilities million EUR 31 Dec 2024 31 Dec 2023 Guarantees to suppliers - - Total - - A number of parent company guarantees have been issued towards suppliers of subsidiaries. These parent company guarantees have prior years been reported under contingent liabilities. The obligations of the group to these suppliers can however never exceed the liabilities already recognised in the consolidated balance sheet. As a consequence, parent company guarantees to suppliers are no longer reported as contingent liabilities. 160160Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 30 Pledged assets The carrying amount of assets pledged as security for current and non-current borrowings are: million EUR 31 Dec 2024 31 Dec 2023 Non-current Property mortgages Freehold land and buildings 1.2 12.9 Current Floating charge Cash an cash equivalents 0.0 0.1 Inventory 6.9 Receivables 2.8 4.2 Financial assets at fair value through profit or loss - 4.9 Plant and equipment 3.7 3.1 Business morgage 1.7 4.6 Total 16.3 29.8 The group have a bond loan and and a revolving credit facilty that are unsecured. The group also have liabilities such as local liabilities to credit institutions, overdraft facilities and liabilites in form of lease contracts in some of its companies to an amount of 17.6 MEUR. The pledged asset above are securitys for these loans. Note 31 Related parties 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. Information on remuneration of management and the Board of Directors is found in note 6. The number of shares in the company held by management and the board of directors as of 31 December 2024 is presented in the table below. Board of Directors Person Title Shares Options Shares held by related parties Gunnar Syvertsen Chair 180 506 - - Kristina Schauman Director 193 452 - - Ann-Lise Aukner Director - - - Rik Dobbelaere Director 98 497 - - Andreas M. Akselsen 1 Director 9 000 - 32 670 000 Pernille Skarstein 2 Director - - 16 946 573 1 Andreas is the owner of 45 per cent of HAAS AS, the second largest shareholder of BEWI ASA, holding 32 670 000 shares per 31.12.2024. 2 The shares are owned by Kverva Industries AS, a company owned by Kverva AS, which is a related party to Pernille. Kverva held 16 946 573 BEWI shares at 31 December 2024. In addition, Kverva AS is a party to total return swap agreement with a third party under which Kverva AS has a financial expo- sure to 9 092 220 shares. 161161Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Executive Management Person Title Shares Options Shares held by related parties Christian Bekken 1 Chief Executive Officer 84 986 283 333 97 968 128 Marie Danielsson Chief Financial Officer 185 452 333 333 Jonas Siljeskär Chief Operating Officer Upstream 124 126 283 333 Petra Brantmark Chief Legal Officer 17 450 174 785 5 458 Karl Erik Olesen Chief Operating Officer Downstream 83 252 183 333 Stein Inge Liasjø Chief Strategy Officer 1 000 133 333 1 Christian is part of the Bekken family, the majority owner of BEWI Invest AS, the majority owner of BEWI ASA, holding 97 958 328 shares on 31.12.2024. In addition, Christian’s wife Lisa Lockert Bekken owns 9 800 shares. Transactions impacting the income statement million EUR 2024 2023 Sale of goods to: HIRSCH Porozell GmbH 0.0 0.1 Energijägarna och Dorocell AB 0.8 1.1 Bekken owned companies 0.2 0.0 Total 1.0 1.2 Other income from: Bekken owned companies 0.0 0.3 Total 0.0 0.3 Rental expenses to: Bekken owned companies 23.3 18.4 Total 23.3 18.4 Other external costs to: Bekken owned companies 0.1 0.2 Total 0.1 0.2 The transactions were conducted on normal market terms. Transactions impacting the balance sheet million EUR 31 Dec 2024 31 Dec 2023 Current receivables Bekken owned companies 0.0 0.1 HIRSCH Porozell GmbH 0.1 0.1 Total 0.1 0.2 Current liabilities Bekken owned companies - 0.0 Total - 0.0 In 2024, three real estate properties were divested to the Swedish listed company Logistea AB in sale and leaseback transactions. The transactions gave rise to a capital gain of EUR 4.5 million. The lease terms run for 17 years, with options to extend the lease terms for another five years. The properties, valued at EUR 37.1 million, were located in Belgium, Poland and Germany. 162162Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 32 Adjustments for non-cash items, etc. million EUR 31 Dec 2024 31 Dec 2023 Depreciations, amortisations and write-downs 71.1 68.4 Change in pension liabilities -0.8 -0.3 Change in other provisions -1.9 2.1 Share of income from associates net of dividend received 1.5 0.2 Effect of share-based incentive programme - 0.2 Capital gain/loss from sale of assets and business -3.4 1.3 Capital gain from revaluation and sale of shares in associates - -0.3 Other - - Total 66.5 71.6 Note 33 Subsequent events Agreement to merge BEWI RAW with Unipol On 5 February 2025, BEWI announced an agreement to merge its raw materials business, BEWI RAW, with Unipol, to create a leading EPS (expanded polystyrene) producer in Europe. BEWI will maintain a 49 per cent ownership of the combined entity, that will comprise four raw material facilities, and an annual production capacity of 375 000 tonnes of EPS. This includes 30 000 tonnes of grey EPS and a considerable capacity to produce recycled EPS. The entity will have annual revenues of approximately EUR 400 million and is expected to have significant dividend capacity. The combined business will continue to be the preferred supplier of EPS to BEWI’s downstream business through long-term agreements. As part of the transaction, BEWI will receive a cash consideration of up to EUR 75 million, of which EUR 42.5 million is paid following closing and the remainder is subject to an earn-out agreement. Closing of the transaction is subject to closing conditions and is expected to take place in the second quarter of 2025. After completion of the transaction, BEWI’s core offering will be insulation and other energy-efficient solutions for buildings and a broad selection of recyclable and recycled packaging products. 163163Financial statements | The groupFinancial statements | The group 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Parent company Income statement of the parent company 165 Statement of financial position of the parent company 166 Statement of financial position of the parent company 167 Cash flow statement for the parent company 168 Accounting principles and notes to the accounts 169 Note 01 General information 169 Note 02 Summary of key accounting principles for the parent company 169 Note 03 Net sales 170 Note 04 Employee remuneration etc. 170 Note 05 Interest income, interest expense and similar items 171 Note 06 Income tax on the profit for the year 172 Note 07 Shares in subsidiaries and associates 172 Note 08 Cash and bank balances 174 Note 09 Share capital 174 Note 10 Equity 175 Note 11 Receivables and liabilities 175 Note 12 Related parties 176 Note 13 Remuneration to auditors 176 Note 14 Contingent liabilities 176 164164Financial statements | Parent companyFinancial statements | Parent company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Income statement of the parent company million NOK Note 2024 2023 Operating income Net sales 3 5.1 5.0 Total operating income 5.1 5.0 Operating expenses Other external costs 13 -54.4 -62.3 Personnel costs 4 -17.2 -14.0 Other operating costs -1.0 -0.8 Total operating expenses -72.7 -77.1 Operating profit -67.6 -72.1 Financial income 729.3 572.3 Financial expense -387.8 -335.3 Financial income and expense - net 5 341.5 236.9 Profit before taxes 273.9 164.8 Income tax 6 -2.6 31.0 Net profit for the year 271.3 195.8 165165Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Statement of financial position of the parent company million NOK Note 31 Dec 2024 31 Dec 2023 ASSETS Non-current assets Financial assets Shares in subsidiaries 7 5 301.2 6 165.4 Receivables from group companies 11 2 358.7 1 773.2 Total financial assets 7 659.8 7 938.6 Deferred tax assets 6 52.8 30.4 Total non-current assets 7 712.7 7 968.9 Current assets Current receivables Receivables from group companies 11 366.4 740.6 Accounts receivables 0.4 0.4 Prepaid expenses and accrued income 11.4 7.9 Total current receivables 378.4 748.9 Cash and cash equivalents 8 2.9 2.1 Total current assets 381.3 751.0 TOTAL ASSETS 8 094.0 8 719.9 166166Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Statement of financial position of the parent company million NOK Note 31 Dec 2024 31 Dec 2023 EQUITY AND LIABILITIES Equity Restricted equity Share capital (191 722 290 shares) 9, 10 191.7 191.7 Total restricted equity 191.7 191.7 Non-restricted equity Additional paid-in capital 10 4 434.4 4 434.4 Profit or loss brought forward 10 172.0 -23.8 Net profit or loss for the year 10 271.3 195.8 Total non-restricted equity 4 877.8 4 606.4 Total equity 5 069.5 4 798.1 Non-current liabilities Non-current bond loan 11 2 949.6 2 787.0 Liabilities to group companies 11 - 800.0 Total non-current liabilities 2 949.6 3 587.0 Current liabilities Liabilities to group companies 11 50.9 300.7 Account payables 4.2 9.7 Other short-term liabilities 0.7 2.0 Accrued expenses and deferred income 19.1 22.4 Total current liabilities 74.9 334.8 TOTAL EQUITY AND LIABILITIES 8 094.0 8 719.9 Trondheim, Norway, 26 March 2025 The board of directors and CEO of BEWI ASA Gunnar Syvertsen Chair of the Board Anne-Lise Aukner Director Rik Dobbelaere Director Andreas M. Akselsen Director Kristina Schauman Director Pernille Skarstein Director Christian Bekken CEO 167167Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Cash flow statement for the parent company million NOK Note 2024 2023 Operating cash flow Income before financial items -67.6 -72.1 Adjustments for non-cash items, etc - - Interest paid and financing costs -247.7 -194.7 Interest received 173.5 125.5 Dividend received 543.5 - Operating cash flow before changes to working capital 401.7 -141.3 Cash flow from working capital changes Increase/decrease in current receivables -64.1 27.3 Increase/decrease in operating debt 180.9 -7.2 Total change to working capital 116.8 20.1 Operating cash flow 518.5 -121.3 Cash flow from investment activities Acquisitions of subsidiary - -2.8 Other financial investments -498.0 -3.2 Cash flow from investment activities -498.0 -6.0 million NOK Note 2024 2023 Cash flow from financing activities Borrowings, net of transaction costs 11 -19.7 115.3 New share issue, net of transaction costs - 8.6 Group contribution - - Dividend 10 - - Cash flow from financing activities 19.7 123.9 Cash flow for the period 0.8 -3.4 Opening cash and cash equivalents 2.1 5.5 Closing cash and cash equivalents 2.9 2.1 168168Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Parent company Accounting principles and notes to the accounts Note 01 General information The parent company is a public limited company registered in Norway, with head office located in Trondheim, Norway, and address Dyre Halses gate 1A, 7042 Trondheim. Note 02 Summary of key accounting principles for the parent company The key accounting principles used in this annual report are stated below. The principles have consistently been used for all reported financial years, unless otherwise specified. The annual report for the parent company is prepared in accordance with the Norwegian Accounting Act and generally accepted accounting principles in Norway. The accounts are stated below, for which the parent company applies accounting principles differing from those of the group, as described in note 2 to the consolidated accounts. The annual report has been prepared in accordance with the cost value principle. The preparation of reports requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the parent company’s accounting principles. The areas involving a higher degree of judgement or complexity or areas for which assumptions and estimates are significant to the annual report, are stated in note 4 to the consolidated accounts. The parent company is through its activities exposed to several different financial risks: market risk (currency risk and interest rate risk), credit risk and liquidity risk. The parent company’s comprehensive financial risk manage- ment is focused on the unpredictability of the financial markets and strives to minimise any adverse effect on the consolidated profits. For more information regarding financial risks, see note 3 to the consolidated accounts. The parent company applies accounting principles differ- ing from those of the group for the areas are stated below: Layout The income statement and statement of financial position is compliant with the layout stipulated in the Norwegian Accounting Act. The statement of changes to equity observes the layout of the consolidated accounts, but must contain the columns stated in the Norwegian Accounting Act. Furthermore, differences arise relating to designations, in comparison with the consolidated accounts, mainly concerning the financial income/expense and equity. Shares in subsidiaries Shares in subsidiaries are reported at acquisition cost less any impairment. The acquisition cost includes any cost related to the acquisition and any additional purchase price. A calculation of the recoverable amount is undertaken, in the event of an indicator of impairment of the shares in a subsidiary. Should the recoverable amount be below the carrying amount, impairment is made. Impairments are reported in Profit from participations in group companies. Financial instruments Financial instruments are reported at acquisition cost. Financial assets acquired for short-term holding will in subsequent periods be reported at the lower of acquisition cost or market value. 169169Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 03 Net sales The parent company’s revenue derive solely from one business area and is mainly related to intra-group administrative services. Note 04 Employee remuneration etc. million NOK 2024 2023 Salary and other remuneration -13.8 -12.2 Social security expenses -2.3 -1.0 Pension costs - defined contribution plans -1.0 -0.5 Total remuneration to employees -17.2 -13.7 The company is obliged to have an occupational pension scheme in accordance with the Act on Mandatory Occupational Pensions. The company pension schemes satisfy the requirement of this Act. Salary and other remunerations and pension costs for CEO´s and other senior executives million NOK 2024 2023 Salary and other remuneration -6.2 -4.6 Bonus -0.8 -1.4 Pension costs -0.3 -0.2 Total remuneration -7.3 -6.2 170170Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Average number of employees 2023 Average number of employees Whereof men Norway 8 5 2024 Average number of employees Whereof men Norway 7 5 BEWI has two share-based incentive programmes. During 2024 a new long-term incentive program was implemented, entitling the participants to subscribe for shares in BEWI ASA during a new three-year period. The purpose of the programme is to further align the interests of the company and its shareholders by providing incentives in the form of awards to employees to motivate them to contribute materially to the success and profitability of the company. The features of the programme are further described in note 23 to the group. The CEO of BEWI ASA was during 2024 granted 83 333 new share options. Severence pay Subject to the CEO’s employment agreement, there is a mutual notice period of 6 months in the agreement. Subject to the CEO’s employment agreement, there is a mutual notice period of 6 months in the agreement. If the agreement is terminated by the company, the employee is in addition to the notice period entitled to 12 months severance pay. The severance pay is deductible against income or compensation from other employment. Note 05 Interest income, interest expense and similar items million NOK 2024 2023 Interest income, group companies 173.5 125.5 Dividend 543.5 - Group contribution 12.3 446.8 Total interest income and similar profit or loss items 729.3 572.3 Interest expense -246.2 -196.0 Interest expense, group companies -43.0 -73.3 Exchange loss -49.4 -62.8 Other financial expenses -49.2 -3.2 Total interest expense with similar profit or loss items -387.8 -335.3 Total financial income and expense - net 341.5 236.9 171171Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 06 Income tax on the profit for the year The income tax attributable to the income before taxes differs from the theoretical amount that would have arisen from the application of the tax rate in Norway for the income of the parent company as follows: million NOK 2024 2023 Income before taxes 273.9 164.8 Income tax calculated using the Norwegian tax rate (22%) -60.3 -36.3 Tax effects attributable to: Revenue exempt from taxation 119.6 70.7 Non-deductible costs -12.4 -3.5 Deductible expenses not recognised in income statement -49.4 - Total tax reported -2.6 31.0 Unutilised interest carried forward, for which no deferred tax assets have been recognised, amounts to NOK 224.8 million. In the 2023, NOK 130.6 million of unutilised interest carried forward was included in the basis for recognised deferred tax assets. This amounts to an effect of NOK 28.7 million, which is presented in the table below under item “Other”. In the final 2023 tax return, unutilised tax losses carried forward increased by NOK 113.7 million, which is the basis for a reclassification of NOK 25.0 million. This is presented in the table below under item “Tax losses carry forward”. Deferred tax assets and liabilities 2024 million NOK Opening balance Reclassification Reported in profit/ loss Reported in equity/OCI Exchange difference Closing balance Tax losses carry forward 7.3 25.0 25.2 - - 57.5 Long-term liabilities -5.6 - 0.9 - - -4.7 Other 28.7 - -28.7 - - - Total net deferred tax assets and liabilities 30.4 - -2.6 - - 52.8 Note 07 Shares in subsidiaries and associates Subsidiaries million NOK 31 Dec 2024 31 Dec 2023 As of January 1 6 165.4 6 162.6 Writedown of shares in subsidiaries -49.2 - Adjustment acquisition value subsidiaries - 2.8 Dividend from subsidiaries -815.0 - As of December 31 5 301.2 6 165.4 Name Reg. no. Reg. office/ country Ownership votes and capital (%) Carrying amount 31 Dec 2024 Carrying amount 31 Dec 2023 Directly owned BEWI Synbra Group AB 556972 -1128 Solna, Sweden 100 2 487.5 2 487.5 BEWI Poland Spotka zoo 0000722895 Poland 100 182.3 182.3 BEWI Circular Holding AS 928 989 682 Norway 100 234.7 283.9 Jackon Holding AS 989 087 177 Norway 100 2 127.9 2 942.9 UAB BEWI Lithuania 160 421 364 Lithuania 100 268.8 268.8 Sum directly owned 5 301.2 6 165.4 172172Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Subsidary Reg. no. Reg. office / country Ownership votes (%) Ownership capital (%) Indirectly owned BEWI Austia GmbH 616054 Austria 100 100 BEWI Circular Belgium bvba BE 0465.783.904 Belgium 100 100 BEWI Circular Holding Belgium BE 00641.986.778 Belgium 100 100 BEWI Circular Trading Belgium bvba BE 0875.717.582 Belgium 100 100 Jackon Insulation N.V H.T.R.058089 Belgium 100 100 Kemisol NV BE 0464.536.859 Belgium 100 100 N.V. Internationaal Vervoer Brants Vallet BE 0400.670.970 Belgium 100 100 N.V. Kem-Products NV BE 0448.483.062 Belgium 100 100 Berga Recycling Inc. 7789815 Canada 100 100 BEWI Circular Czechia s.r.o 27877574 Czech Republic 100 100 BEWI Circular Denmark A/S 41 40 69 84 Denmark 100 100 BEWI Denmark A/S 31 86 7304 Denmark 100 100 BEWI Insulation DK A/S 20 04 79 41 Denmark 100 100 BEWi Cabee Oy 2083942-9 Finland 100 100 BEWi RAW Oy 10974747-6 Finland 100 100 BEWI Finland Oy 23525547 Finland 100 100 Jackon Insulation France S.a.r.l 501839-N France 100 100 Bewi Automotive Germany GmbH HRB 187767 Germany 100 100 Bewi Automotive Trading GmbH HRB 185768 Germany 100 100 Izoblok GmbH HRB 508966 Germany 79.85 73.14 Bewi RAW Jackon GmbH DE191394004 Germany 100 100 Jackon Insulation GmbH DE126959786 Germany 100 100 BEWI Iceland ehf. 620818-0890 Iceland 79 79 Besto Verpakkingsindustrie BV 5034571 Netherlands 100 100 BEWI RAW BV 20033648 Netherlands 100 100 Ertecee BV 6010160 Netherlands 100 100 Genevad Netherlands BV 70824312 Netherlands 100 100 IsoBouw Systems BV 17046081 Netherlands 100 100 Moramplastics BV 9036097 Netherlands 100 100 Subsidary Reg. no. Reg. office / country Ownership votes (%) Ownership capital (%) Poredo BV 71961577 Netherlands 100 100 Poredo Holding BV 18051893 Netherlands 100 100 Poredo Logistics BV 88096645 Netherlands 100 100 Stramit BV 17023362 Netherlands 100 100 Synbra BV 20080670 Netherlands 100 100 Synbra Holding BV 20095683 Netherlands 100 100 Synbra International BV 20095676 Netherlands 100 100 Synprodo BV 18115693 Netherlands 100 100 Synprodo Produktie BV 10012456 Netherlands 100 100 BEWI Circular AS 922724369 Norway 100 100 BEWI Packaging Norway AS 928 878 090 Norway 100 100 BEWI Food AS 979 574 193 Norway 100 100 BEWI Insulation Norge AS 913 019 334 Norway 100 100 BEWI Norplasta AS 989 953 133 Norway 100 100 BEWI Norway AS 995 172 895 Norway 100 100 Jackon Holding AS 989 087 177 Norway 100 100 Jackon Skurup Eiendom AS 993 370 096 Norway 100 100 Izoblok S.A 00000388347 Poland 79.85 73.14 BEWI Circular Portugal, LDA 515767832 Portugal 66 66 Plastimar SA 508413770 Portugal 100 100 Aislamientos y Envases S.L B03173820 Spain 80 80 BEWI I&P Spain Holding S.L.U B72746423 Spain 100 100 Plasexpandido SL B36900157 Spain 100 100 BEWi Automotive AB 559102-5332 Sweden 100 100 BEWI Automotive Holding AB 556669-9434 Sweden 100 100 BEWi Circular Sweden AB 556628-9178 Sweden 100 100 BEWI i Öst AB 556541-7788 Sweden 100 100 BEWI Insulation Sverige AB 556383-5742 Sweden 100 100 BEWi Packaging AB 556961-3309 Sweden 100 100 Genevad Holding AB 556707-1948 Sweden 100 100 173173Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Subsidary Reg. no. Reg. office / country Ownership votes (%) Ownership capital (%) Norplasta AB 556649-7821 Sweden 100 100 Jackon Insulation Switzerland AG CH 400.3.034.347-2 Switzerland 100 100 BEWI Insulation & Construction (UK) Ltd 12644570 United Kingdom 100 100 Jackon Holding UK Ltd 1033313 United Kingdom 100 100 Jackon UK Ltd 8235666 United Kingdom 100 100 Synbra Holding UK Ltd 9502640 United Kingdom 100 100 Volker Gruppe Ltd NI627429 United Kingdom 51 51 BEWI Packaging & Components (UK) Ltd 12644682 United Kingdom 100 100 Jablite Group Ltd 1246 41113 United Kingdom 100 100 Berga Circular Holding US Inc 6770534 USA 100 100 Berga Recycling USA Inc Delaware USA 100 100 Associates Name Reg. no. Reg. office / country Proportion of shares held by the parent (%) Indirectly owned HIRSCH France SAS 92044 France 34 HIRSCH Porozell GmbH FN 117255i Germany 34 Remondis Technology SP Zoo 0.34 Poland 34 Other shares and participations Name Reg. no. Reg. office / country Proportion of shares held by the parent (%) Indirectly owned Polystyvert Inc. N/A Canada 3.71 Note 08 Cash and bank balances million NOK 31 Dec 2024 31 Dec 2023 Restricted cash 2.1 0.6 Other cash and bank balances 0.6 1.5 Total 2.9 2.1 Note 09 Share capital For information regarding the share capital, see note 21 to the consolidated accounts. 174174Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 10 Equity Restricted equity Non-restricted equity million NOK Share capital Additional paid-in capital Accumulated profit (incl net profit/loss for the year) Total Balance carried forward as of 31 December 2022 191.3 4 426.4 -23.8 4 593.7 New share issues 0.4 8.2 - 8.6 Net profit for the year - - 195.8 195.8 Balance carried forward as of 31 December 2023 191.7 4 434.4 172.0 4 798.1 Net profit for the year - - 271.3 195.8 Balance carried forward as of 31 December 2024 191.7 4 434.4 443.3 5 069.5 Note 11 Receivables and liabilities million NOK 31 Dec 2024 31 Dec 2023 Balance sheet assets Financial assets measured at amortised cost Non-current receivables from group companies 2 358.7 1 773.2 Current receivables from group companies 366.4 740.6 Total 2 725.1 2 513.8 Balance sheet liabilities Financial liabilities measured at amortised cost Bond loan 2 949.6 2 787.0 Non-current liabilities to group companies - 800.0 Current liabilities to group companies 50.9 300.7 Total 3 000.5 3 887.7 The company has no liabilities with maturity over five years. Bond loans Frame Amount outstanding Date of issuance Maturity/redemtion date EUR 250 million EUR 251.9 million 3 September 2021 3 September 2026 The bond is unsecured and linked to a sustainability framework with maturity 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 terms for the bond outstanding during the year is presented in the table below. The bond terms stipulate a sustainability performance target in which BEWI has committed to collect 45 000 tonnes of EPS for recycling annually by 2024. If not reaching that target, an additional 0.75 per cent of the nominal value of the bond will be redeemed on maturity. By 31 December 2024, the group had not reached the target. Consequently, a EUR 1.9 million revaluation of the bond loan was made in the fourth quarter of 2024, and the same amount was reported as a financial expense. Bond loan Interest terms Nominal interest 2024 Average interest 2024 EUR 250 million Euribor 3 m + 3.15% 6.08-7.11% 11.08% 175175Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Note 12 Related parties Christian Bekken, CEO of BEWI ASA, is together with other members of the Bekken family a majority shareholder of the company through BEWI Invest AS and Bekken Invest AS. More information on related party transactions is reported in note 31 to the consolidated accounts. Information on remuneration of management and the board of directors is found in note 6 of the consolidated accounts. Note 13 Remuneration to auditors million NOK 2024 2023 The audit assignment -1.6 -1.4 Audit activites other than the audit assignment -0.6 -0.6 Tax advice - - Other services 0.8 - Total remuneration to auditors -3.0 -1.9 For 2024 audit activities other than the audit assignment from PwC and other services mainly includes costs related to the ESG transaction. Note 14 Contingent liabilities million NOK 31 Dec 2024 31 Dec 2023 Guarantees to suppliers 664.3 652.6 664.3 652.6 BEWI ASA has on behalf of its subsidiaries granted suppliers to pay outstanding trade liabilities in case the subsidiary fails to pay. The amount stated above is the maximum amount according to the guarantee. 176176Financial statements | Parent CompanyFinancial statements | Parent Company 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Statement by the board of directors and CEO The board of directors and the CEO have today considered and approved the annual report for BEWI ASA (“the company”) and the BEWI group (“the group”) for the period 1 January to 31 December 2024 and as of 31 December 2024. The consolidated financial statements have been prepared in accordance with IFRS as adopted by EU, European Single Electronic Format (ESEF) regulations as well as additional information requirements as per the Norwegian Accounting Act. The financial statements for the company have been prepared in accordance with the Norwegian Accounting Act and generally accepted accounting practice in Norway. We confirm, to the best of our knowledge, that • The 2024 financial statements for the company and the group have been prepared in accordance with applicable accounting standards • The 2024 consolidated financial statements have been prepared in accord- ance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to section 5-5 of the Norwegian Securities Trading Act • The information in the financial statements gives a true and fair view of the company’s and the group’s assets, liabilities, financial position and result as of 31 December 2024 • The annual report for 2024 meets the information requirements of the Norwegian accounting act with regard to the report of the board of directors, statement on corporate governance, and report on sustainability pursuant to the Norwegian Accounting Act section 2-6 and the EU Taxonomy article 8 • The annual report for the company and the group; – gives a true and fair view of the company’s and the group’s development, performance and financial position, and – includes a description of the principal risks and uncertainty factors facing the company and the group Trondheim, Norway, 26 March 2025 The board of directors and CEO of BEWI ASA Gunnar Syvertsen Chair of the Board Anne-Lise Aukner Director Rik Dobbelaere Director Andreas M. Akselsen Director Kristina Schauman Director Pernille Skarstein Director Christian Bekken CEO 177177Financial statements | Statement by the board and CEOFinancial statements | Statement by the board and CEO 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 To the General Meeting of BEWI ASA Independent Auditor’s report Report on the Audit of the Financial Statements Opinion We have audited the financial statements of BEWI ASA, which comprise: • the financial statements of the parent company BEWI ASA (the Company), which comprise the statement of financial position as at 31 December 2024, the income statement and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies, and • the consolidated financial statements of BEWI ASA and its subsidiaries (the Group), which comprise the state- ment of financial position as at 31 December 2024, the statement of profit or loss, statement of comprehen- sive income, statement of changes in equity and cash flow statement for the year then ended, and notes to the financial statements, including material accounting policy information. In our opinion: • the financial statements comply with applicable statutory requirements, • the financial statements give a true and fair view of the financial position of the Company as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and • the consolidated financial statements give a true and fair view of the financial position of the Group as at 31 December 2024, and its financial performance and its cash flows for the year then ended in accordance with IFRS Accounting Standards as adopted by the EU. Our opinion is consistent with our additional report to the Audit Committee. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company and the Group as required by relevant laws and regulations in Norway and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these require- ments. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided. We have been the auditor of BEWI ASA for 5 years from the election by the general meeting of the shareholders on 29 July 2020 for the accounting year 2020. Key Audit Matters Key audit matters are those matters that, in our profes- sional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The Group’s business activities have remained largely unchanged during 2024. Impairment testing of goodwill and intangible assets with an indefinite useful life derived from prior years’ acquisitions, still carries an inherent risk of error, and continued to be an area of focus for the 2024 audit. 178178Financial statements | Auditor’s reportFinancial statements | Auditor’s report 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Key Audit Matters How our audit addressed the Key Audit Matter Impairment testing of goodwill and intangible assets with an indefinite useful life Goodwill and trademarks are significant assets in the Group’s statement of financial position. The carrying amount of goodwill and trademarks amount to EUR 205.4 million and EUR 44.9 million respectively on 31 December 2024. No impairments were recognised in 2024. Impairment testing requires determination of recoverable amounts of goodwill and trademarks, which is dependent on, among other, estimated future income. We focused on this area due to the significance of the amounts involved and because the impairment test requires application of management judgement related to assumptions such as projected future revenues, costs and discount rate used. The Group’s principles and methods for valuation of goodwill and trademarks are described in notes 2.5, 4.1 and note 12 to the consolidated financial statements. We obtained an understanding of management’s process related to assessment of valuation of goodwill and trademarks. We reviewed management’s documentation for impairment testing, and considered whether the valuation model applied by man- agement contained the elements and methodology required by IFRS. We found the model to be reasonable. We also assessed the logical structure and tested the mathematical accuracy of the model finding no material deviations. We examined how management identified cash generating units (CGUs) and compared this to how goodwill and trademarks are monitored internally. In 2024, management consolidated CGUs due to a more integrated business structure and a greater extent of non-separable cash flows within its segments. We assessed and found the consolidation of CGUs to be reasonable. We evaluated the reasonableness of the assumptions applied by management, as well as management’s analysis of the sensitivity of changes to significant assumptions that could result in a need for impairment. We found that the assumptions were reasonably aligned with historic results and board approved strategic plans. In assessing the reasonableness of the strategic plans, we evaluated their underlying assumptions. Further, we assessed management’s forecasting accuracy by comparing prior year budgets and forecasts to actual results where the CGU’s were comparable with historic results. We noted no material deviations. We performed sensitivity analyses on key assumptions in the impairment assessment and found the impairment assessment to be sensitive to changes in WACC, and EBITDA ratios. Further, in assessing whether management used appropriate forward-looking EBITDA ratios in their valuation models, we examined the forecasted EBITDA ratios towards historical achieved EBITDA ratios for each CGU, and towards strategic plans. We found that man- agement’s forecasts of EBITDA ratios were reasonably in line with historical data and strategic plans. The discount rate used was compared to empirical data and expectations about the future returns, relevant risk premium and gearing ratio. We found the applied discount rate to be within a range of reasonable outcomes. We also considered whether the information provided in notes 2.5, 4.1 and 12 met the IFRS requirements. 179179Financial statements | Auditor’s reportFinancial statements | Auditor’s report 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Other Information The Board of Directors and the Managing Director (man- agement) are responsible for the information in the Board of Directors’ report and the other information accom- panying the financial statements. The other information comprises information in the annual report, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the information in the Board of Directors’ report nor the other information accompanying the financial statements. In connection with our audit of the financial statements, our responsibility is to read the Board of Directors’ report and the other information accompanying the financial statements. The purpose is to consider if there is material inconsistency between the Board of Directors’ report and the other information accompanying the financial statements and the financial statements or our knowledge obtained in the audit, or whether the Board of Directors’ report and the other information accompanying the financial statements otherwise appears to be materially misstated. We are required to report if there is a material misstatement in the Board of Directors’ report or the other information accompanying the financial statements. We have nothing to report in this regard. Based on our knowledge obtained in the audit, it is our opinion that the Board of Directors’ report • is consistent with the financial statements and • contains the information required by applicable statutory requirements. Our opinion on the Board of Directors’ report applies corre- spondingly to the statement on Corporate Governance. Our opinion on whether the Board of Directors’ report contains the information required by applicable statutory requirements, does not cover the Sustainability Statement, on which a separate assurance report is issued. Responsibilities of Management for the Financial Statements Management is responsible for the preparation of financial statements of the Company that give a true and fair view in accordance with the Norwegian Accounting Act and accounting standards and practices generally accepted in Norway, and for the preparation of the consolidated financial statements of the Group that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU. Management is responsible for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Company’s and the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern. The financial statements of the Company use the going concern basis of accounting insofar as it is not likely that the enterprise will cease operations. The consolidated financial statements of the Group use the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepti- cism throughout the audit. We also: • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error. We design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s and the Group’s internal control. • evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or condi- tions that may cast significant doubt on the Company’s and the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and the Group to cease to continue as a going concern. • evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves a true and fair view. • obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are respon- sible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. 180180Financial statements | Auditor’s reportFinancial statements | Auditor’s report 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 We communicate with the Board of Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the Board of Directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements Report on Compliance with Requirement on European Single Electronic Format (ESEF) Opinion As part of the audit of the financial statements of BEWI ASA, we have performed an assurance engagement to obtain reasonable assurance about whether the financial statements included in the annual report, with the file name BEWI-2024-12-31-0-en.zip, have been prepared, in all material respects, in compliance with the requirements of the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) and regulation pursuant to Section 5-5 of the Norwegian Securities Trading Act, which includes requirements related to the preparation of the annual report in XHTML format, and iXBRL tagging of the consolidated financial statements. In our opinion, the financial statements, included in the annual report, have been prepared, in all material respects, in compliance with the ESEF regulation. Management’s Responsibilities Management is responsible for the preparation of the annual report in compliance with the ESEF regulation. This responsibility comprises an adequate process and such internal control as management determines is necessary. Auditor’s Responsibilities For a description of the auditor’s responsibilities when performing an assurance engagement of the ESEF report- ing, see: https://revisorforeningen.no/revisjonsberetninger Trondheim, 26 March 2025 PricewaterhouseCoopers AS Kjetil Smørdal State Authorised Public Accountant (This document is signed electronically) 181181Financial statements | Auditor’s reportFinancial statements | Auditor’s report 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Reconciliation alternative performance measures Alternative performance measures not defined by IFRS million EUR (except percentage) 2024 2023 Operating income (EBIT) 8.5 10.2 Amortisations 12.0 12.2 EBITA 20.5 22.4 Items affecting comparability -0.7 6.6 Adjusted EBITA 19.8 29.0 EBITA 20.5 22.4 Depreciations 51.4 49.2 EBITDA 71.9 71.5 Items affecting comparability -0.7 6.6 Adjusted EBITDA - continuing operations 71.2 78.1 Adjusted EBITA Rolling 12 months - continuing operations 19.8 29.0 Adjusted EBITA Rolling 12 months - discontinued operations 13.6 24.5 Adjusted EBITA Rolling 12 months - total operations 33.4 53.5 Average capital employed 946.1 983.7 Return on average capital employed (ROCE)% 3.5% 5.4% Items affecting comparability million EUR 2024 2023 Severance, integration and restructuring costs -0.9 -4.6 Transaction costs -2.1 -1.4 Capital gains/losses 3.8 -0.6 Other -0.1 - Total 0.7 -6.6 182182Financial statements | Alternative Performance MeasuresFinancial statements | Alternative Performance Measures 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Adjusted EPS million EUR (except average number of shares) 2024 2023 Profit/loss used i calculation basic earnings per share -18.0 -18.0 Reversing adjustment items before tax Items affecting comparability - continuing operations -0.7 6.6 Items affecting comparability - discontiued operatons 0.8 0.4 Depreciations/amortisations attributable to fair value adjustments in business combinations - continuing operations 10.6 12.8 Depreciations/amortisations attributable to fair value adjustments in business combinations - discontinued operations 1.3 0.9 Items affection comparablity in financial items 1.2 3.1 13.2 23.7 Reversing tax impact on adjustment items Items affecting comparability 1.4 -1.4 Depreciations/amortisations attributable to fair value adjustments in business combinations - continuing operations -2.4 -2.8 Depreciations/amortisations attributable to fair value adjustments in business combinations - discontinued operations -0.3 -0.3 Items affection comparabilty in financial items - - -1.3 -4.5 Total impact on profit/loss for the period 11.9 19.3 Attributable to non-controlling interests 1.6 -0.1 Adjusted profit attributable to the parent company shareholders -16.1 1.1 Average number of shares 191 722 290 191 672 042 Adjusted earnings per share, basic -0.08 0.01 183183Financial statements | Alternative Performance MeasuresFinancial statements | Alternative Performance Measures 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Revenue bridge: Change in net sales from corresponding periods in 2024 million EUR I&C % P&C % Circular % Unallocated % Intra-group revenue Total net sales – continuing operations % Discontinued operations % Intra group revenue – discontinued operation Net sales – total operations % 2023 458.4 321.6 57.7 0.3 -16.7 821.2 413.7 -129.6 1 105.3 Acquisitions - - -0.9 0.3% - - - - - 0.9 0.1% - - - 0.9 0.1% Divestments - - - - - - - - - - - - - - - - Currency 0.9 0.2% 0.3 0.1% -0.2 -0.4% - - 0.4 1.4 0.2% -0.8 -0.2% - 0.6 0.1% Organic growth -30.9 -6.7% -14.5 -4.5% -4.9 -8.6% -0.3 -97.1% 0.3 -50.3 -6.1% -33.6 -8.1% -7.5 -91.4 -8.3% Total increase/ decrease -29.9 -6.5% -13.3 -4.1% -5.2 -9.0% -0.3 -97.1% 0.6 -48.0 -5.8% -34.4 -8.3% -7.5 -89.9 -8.1% 2024 428.4 308.3 52.5 0.0 -16.0 773.2 379.2 -137.1 1 015.4 EBITDA bridge: Change in adjusted EBITDA from corresponding periods in 2024 million EUR I&C % P&C % Circular % Unallocated % Adjusted EBITDA – continuing operations % Discontinued operations % Adjusted EBITDA – total operations % 2023 40.6 45.3 -3.2 -4.7 78.1 30.7 108.8 Acquisitions - - 0.1 0.1% - - - - 0.1 0.1% - - 0.1 0.1% Divestments - - - - - - - - - - - - - - Currency 0.1 0.1% -0.2 -0.5% 0.0 -0.0% 0.1 2.0% -0.1 -0.1% -0.1 -0.2% -0.1 -0.1% Organic growth -4.2 -10.3% -1.7 -3.8% -1.7 -53.5% 0.7 14.2% -7.0 -8.8% -10.6 -44.1% -17.6 -16.1% Total increase/ decrease -4.1 -10.2% -1.9 -4.2% -1.7 -53.6% 0.8 16.2% -7.0 -8.9% -10.7 -44.4% -17.6 -16.2% 2024 36.5 43.4 -4.9 -3.9 71.2 20.0 91.2 184184Financial statements | Alternative Performance MeasuresFinancial statements | Alternative Performance Measures 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 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. 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. 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 comparisons with other companies. 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. 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. 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 consumption necessary for generating the result. Items affecting comparability Items affecting comparability include transaction costs related to acquisition of companies, includ- ing 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.) 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. 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. 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. 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. ROCE Return on average capital employed. ROCE is a key performance indicator that the group consid- ers 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 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. 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. 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 relevant for the group as it presents the EPS generated by the actual operations of the group. 185185Financial statements | Alternative Performance MeasuresFinancial statements | Alternative Performance Measures 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Remuneration report 186186Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 1. Overview This remuneration report is prepared by the board of directors (“the board”) of BEWI ASA (the “company”) in accordance with Section 6-16b of the Norwegian Public Limited Liabilities Companies Act as applicable per 1 January 2021 (“NPLCA”) and the administrative regulation regarding policy and report for the remuneration of the executive management. The report contains information regarding remuneration of executive management and the board of directors for the financial year of 2024. The report is based on the company’s remuneration policy, which was approved by the general meeting on 3 June 2021, as outlined in the Statement on remuneration of executive management. 187187Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 2. Remuneration of the board of directors 2.1 Board composition In 2024, the board consisted of Gunnar Syvertsen (chair), Kristina Schauman, Anne-Lise Aukner, Rik Dobbelaere, Pernille Skarstein and Andreas M. Akselsen. Gunnar Syvertsen, Kristina Schauman, and Anne-Lise Aukner were re-elected for a period of two years at the company’s general meeting on 4 June 2024. Andreas M. Akselsen and Rik Dobbelaere were re-elected for a period of two years at the general meeting on 1 June 2023, and Pernille Skarstein was elected as a new director of the board for a period of two years at the general meeting on 1 June 2023. 2.2 Remuneration The board’s remuneration is determined by the general meeting after receiving a proposal from the nomination committee. The remuneration is comprised of fixed payment for board directorship and work in sub-committees. Directors of the board are also reimbursed for travelling expenses. The company is responsible for payment of social security taxes, as well as cost for directors’ and officer’s liability insurance. Table 1: Actual fees paid to the board of directors in 2024 and 2023 BEWI ASA 1 Jan 2024 - 31 Dec 2024 1 Jan 2023 - 31 Dec 2023 million EUR Basic salary incl. benefits/ board fees Variable remuner- ation Retirement compen- sation Basic salary incl. benefits/ board fees Variable remuner- ation Retirement compen- sation Board of Directors 5 members of the board, whereof 2 women Gunnar Syvertsen (chairman) 0.06 0.05 Kristina Schauman 0.03 0.03 Anne-Lise Aukner 0.03 0.03 Rik Dobbelaere 0.03 0.03 Andreas Mjølner Akselsen 0.03 0.03 Pernille Skarstein 0.03 0.02 Total 0.21 0.19 Consultancy services board members Gunnar Syvertsen 0.07 0.09 Rik Dobbelaere 0.12 0.12 Andreas Mjølner Akselsen 0.15 188188Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 3. Remuneration to the executive management 3.1 Executive management BEWI considers members of its executive management to be covered by the term Directors (Norwegian “ledende personer”) under the NPLCA section 6-16a. The company’s executive management was changed as of 1 November 2024, from which two new members were included, and three members left the executive management team. The following positions / persons were therefore considered Directors in the financial year 2024: • Chief Executive Officer Christian Bekken • Chief Operating Officer upstream Jonas Siljeskär • Chief Financial Officer Marie Danielsson • Chief Legal Officer Petra Brantmark • Chief Human Resources Officer Roger Olofsson (from 1 October 2022 to 31 October 2024) • Chief Sustainability Officer Camilla Bjerkli (from 1 September 2023 to 31 October 2024) • Chief Communications Officer Charlotte Knudsen (from 1 October 2022 to 31 October 2024) • Chief Operating Officer downstream Karl Erik Olesen (from 1 November 2024) • Chief Strategy Officer Stein Inge Liasjø (from 1 November 2024) 3.2 Remuneration composition and framework The remuneration principles and compensation elements are described in the remuneration policy for executive management. The elements include a (i) fixed base salary, (ii) pension, (iii) non-financial benefits (“fringe benefits”), (iv) variable pay and (v) a long-term incentive programme (referred to as share option plan) Directors do not receive remuneration for directorships in group companies. Table 2 below contains an overview of the total remuneration which the Directors have received from the company in 2024 and 2023. Table 2: Remuneration paid to executive management in 2024 and 2023 BEWI ASA 1 Jan 2024 - 31 Dec 2024 million EUR Basic salary Short term variable pay Long term variable pay Other benefits Retirement compensation Total com- pensation Proportion of fixed remuneration CEO Christian Bekken 0.27 0.04 0.01 0.32 88% Other Senior Executives Jonas Siljeskär 0.31 0.05 0.01 0.08 0.45 89% Marie Danielsson 0.31 0.05 0.05 0.41 88% Charlotte Knudsen 1 0.12 0.01 0.01 0.14 93% Petra Brantmark 0.18 0.04 0.01 0.05 0.28 86% Roger Olofsson 1 0.13 0.02 0.08 0.23 91% Camilla Bjerkli 1 0.12 0.01 0.01 0.14 93% Stein Inge Liasjø 2 0.03 0.03 100% Karl-Erik Olesen 2 0.04 0.04 100% Total 1.51 0.22 0.02 0.29 2.04 89% 1 Charlotte Knudsen, Roger Olofsson and Camilla Bjerkli were part of the executive management until 31 October 2024. 2 Stein Inge Liasjø and Karl-Erik Olesen became members of the executive management from 1 November 2024. 189189Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 BEWI ASA 1 Jan 2023 - 31 Dec 2023 million EUR Basic salary Short term variable pay Long term variable pay Other benefits Retirement compensation Total com- pensation Proportion of fixed remuneration CEO Christian Bekken 0.27 0.01 0.01 0.29 97% Other Senior Executives Jonas Siljeskär 0.30 0.01 0.01 0.06 0.38 97% Marie Danielsson 0.31 0.02 0.01 0.05 0.39 95% Charlotte Knudsen 0.14 0.01 0.01 0.16 94% Petra Brantmark 0.16 0.01 0.01 0.05 0.23 96% Roger Olofsson 0.16 0.01 0.01 0.03 0.21 94% Camilla Bjerkli 1 0.04 Total 1.38 0.07 0.04 0.21 1.70 96% 1 Camilla Bjerkli became part of the executive management from 1 September 2023. 4. Share-option plan BEWI has two share option programmes, adopted in November 2020 and November 2024 based on the approval by the general meeting to authorise the board to issue new shares to employees under a long-term incentive programme. The aggregate number of options under the plan shall never exceed three (3) per cent of the outstanding shares of the company, including options already outstanding. The strike price was set as the market price at the time of the grant of the options plus 10 per cent, to ensure that only value creation from allocation onwards is rewarded. The options vest with 20 per cent after one year, 30 per cent after two years, and 50 per cent three years after granted, provided the participant is still employed. The options lapses and becomes void after a period of 5 years. If the employee resigns from his or her position with the company, all unvested options will lapse and becomes void. The maximum profit gain from awarded options under the plan, is capped according to an agreement between the employee and the company. Depending on the company’s financial position or financial targets, the board reserves the right to extend the expiry dates by an additional 2 years. 190190Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Table 3: Long term incentive programme (share-option plan) The main conditions of share option plans Information regarding the reported financial year Opening balance During the year Closing balance 1 Specification of plan 1 2 Performance period 3 Award date 4 Vesting date 2 5 End of holding period 2 6 Exercise period 2 7 Strike price of the share 3 8 Share options hold at the beginning of the year 9 Share options awarded 10 Share options vested 11 Share options subject to perfor- mance condition 12 Share options awarded and unvested 13 Share options subject to holding period Christian Bekken 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 75 000 - - - - 75 000 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 125 000 - - - 125 000 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 16 667 - - 16 667 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 25 000 - - 25 000 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 41 667 - - 41 667 200 000 83 333 - - 83 333 200 000 Jonas Siljeskär 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 75 000 - - - - 75 000 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 125 000 - - - - 125 000 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 16 667 - - 16 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 25 000 - - 25 000 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 41 667 - - 41 667 - 200 000 83 333 - - 83 333 200 000 191191Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The main conditions of share option plans Information regarding the reported financial year Opening balance During the year Closing balance 1 Specification of plan 1 2 Performance period 3 Award date 4 Vesting date 2 5 End of holding period 2 6 Exercise period 2 7 Strike price of the share 3 8 Share options hold at the beginning of the year 9 Share options awarded 10 Share options vested 11 Share options subject to perfor- mance condition 12 Share options awarded and unvested 13 Share options subject to holding period Marie Danielsson 1 19.11.2020- 19.11.2021 19.11.2020 19.11.2021 19.11.2025 19.11.2021- 19.11.2025 22.96 50 000 - - - - 50 .000 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 75 000 - - - - 75 000 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 125 000 - - - - 125 000 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 16 667 - - 16 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 25 000 - - 25 000 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 41 667 - - 41 667 - 250 000 83 333 - - 83 333 250 000 Roger Olofsson 1 19.11.2020- 19.11.2021 19.11.2020 19.11.2021 19.11.2025 19.11.2021- 19.11.2025 22.96 25 000 - - - - 25 .000 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 37 500 - - - - 37 500 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 62 500 - - - - 62 500 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 11 667 - - 11 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 17 500 - - 17 500 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 29 167 - - 29 167 - 125 000 58 333 - - 58 333 125 000 192192Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The main conditions of share option plans Information regarding the reported financial year Opening balance During the year Closing balance 1 Specification of plan 1 2 Performance period 3 Award date 4 Vesting date 2 5 End of holding period 2 6 Exercise period 2 7 Strike price of the share 3 8 Share options hold at the beginning of the year 9 Share options awarded 10 Share options vested 11 Share options subject to perfor- mance condition 12 Share options awarded and unvested 13 Share options subject to holding period Petra Brantmark 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 28 952 - - - - 28 952 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 62 500 - - - - 62 500 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 16 667 - - 16 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 25 000 - - 25 000 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 41 667 - - 41 667 - 91 452 83 333 - - 83 333 91 452 Charlotte Knudsen 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 28 500 - - - - 28 500 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 62 500 - - - - 62 500 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 11 667 - - 11 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 17 500 - - 17 500 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 29 167 - - 29 167 - 91 000 58 333 - - 58 333 91 000 193193Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The main conditions of share option plans Information regarding the reported financial year Opening balance During the year Closing balance 1 Specification of plan 1 2 Performance period 3 Award date 4 Vesting date 2 5 End of holding period 2 6 Exercise period 2 7 Strike price of the share 3 8 Share options hold at the beginning of the year 9 Share options awarded 10 Share options vested 11 Share options subject to perfor- mance condition 12 Share options awarded and unvested 13 Share options subject to holding period Camilla Bjerkli 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 31 250 - - - - 31 250 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 11 667 - - 11 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 17 500 - - 17 500 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 29 167 - - 29 167 - 31 250 58 333 - - 58 333 31 250 Karl-Erik Olesen 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 37 500 37 500 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 62 500 62 500 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 16 667 - - 16 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 25 000 - - 25 000 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 41 667 - - 41 667 - 100 000 83 333 - - 83 333 100 000 194194Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 The main conditions of share option plans Information regarding the reported financial year Opening balance During the year Closing balance 1 Specification of plan 1 2 Performance period 3 Award date 4 Vesting date 2 5 End of holding period 2 6 Exercise period 2 7 Strike price of the share 3 8 Share options hold at the beginning of the year 9 Share options awarded 10 Share options vested 11 Share options subject to perfor- mance condition 12 Share options awarded and unvested 13 Share options subject to holding period Stein Inge Liasjø 1 19.11.2020- 19.11.2022 19.11.2020 19.11.2022 19.11.2025 19.11.2022- 19.11.2025 22.96 18 750 18 750 1 19.11.2020- 19.11.2023 19.11.2020 19.11.2023 19.11.2025 19.11.2023- 19.11.2025 22.96 31 250 31 250 2 15.11.2024- 15.11.2025 15.11.2024 15.11.2025 15.11.2029 15.11.2025- 15.11.2029 25.57 - 16 667 - - 16 667 - 2 15.11.2024- 15.11.2026 15.11.2024 15.11.2026 15.11.2029 15.11.2026- 15.11.2029 25.57 - 25 000 - - 25 000 - 2 15.11.2024- 15.11.2027 15.11.2024 15.11.2027 15.11.2029 15.11.2027- 15.11.2029 25.57 - 41 667 - - 41 667 - 50 000 83 333 - - 83 333 50 000 1 138 702 675 000 - - 675 000 1 063 702 1 Plan 1 refers to the plan adopted by the board on 19 November 2020. Plan 2 refers to the plan adopted by the board on 20 August 2024. 2 Plan 1: 20 per cent on 19 November 2021, 30 per cent on 19 November 2022 and 50 per cent on 19 November 2023. Plan 2: 20 per cent on 15 November 2025, 30 per cent on 15 November 2026 and 50 per cent on 15 November 2027. The options are only exercisable during certain windows as decided by the board, normally after the publication of the results for the full year and/ or the half year. 3 Strike price at the time of award for the plan adopted on 19 November 2020 was 24.48 NOK. The strike price is adjusted for, inter alia, dividends paid. By 31 December 2024 the strike price was 22.96 (22.96 NOK at 31 December 2023). 195195Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 5. Compliance with remuneration policy The executives are compensated based on individual criteria, including each executive’s role, experience, and competence. All executives are evaluated yearly as part of the company’s Performance and Development Dialogue (PDD). The total compen- sation level targets at attracting and retaining executives, and to maintain a compensation level which for each individual is competitive compared to market conditions for the relevant position and individual. Internal board assignments and similar internal positions are not remunerated separately. External assignments shall be approved by the CEO or by the board. 5.1 Variable pay The variable incentive pay programme for the executive management team is built on five criteria with the objective to encourage achievement of financial- and operational targets. The variable pay programme is based on defined and measurable criteria, including financial targets, targets linked to strategic priorities and targets linked to health and safety. For 2024, the variable incentive pay program was capped at 50 per cent of the annual base salary for the Chief Executive Officer, Chief Operating Officer upstream, and Chief Financial Officer. For other managers, the incentive pay program is capped at 40 per cent. The Chief Operating Officer downstream and Chief Strategy Officer became part of the executive management from 1 November 2024. Criteria: 1. Adjusted EBITDA: 40 per cent of maximum was based on the group’s adjusted EBITDA target, calculated with a linear scale from 95 per cent to 105 per cent of budgeted target. 2. Collection of 45 000 tonnes of used EPS for recycling: 20 per cent of maximum 3. Fixed cost: 10 per cent of maximum is related to development of fixed cost for the group with a maximum pay out if an improvement of 3 per cent of budgeted targets has been achieved, calculated with a linear scale from 100 per cent to 97 per cent of budgeted fixed cost targets. 4. Health & safety: 10 per cent of maximum is related to health and safety targets with focus on number of accidents and absence due to accidents. 5. Personal objectives: 20 per cent of maximum is related to the personal objectives, of which one needs to be related to working capital and represent 50 per cent of the Personal objectives. For the Chief Executive Officer, the objectives are set and evaluated by the chairman of the board, while the personal objectives for the other managers are set and evaluated by the CEO. Table 4: Remuneration to directors according to the variable pay programme Name Function EBITDA Collection and usaged of RE-Material Fixed cost Health & Safety Personal objectives Total Maximum Christian Bekken Chief Executive Officer 0.00% 0.00% 5.00% 5.00% 3.10% 13.10% 50.00% Jonas Siljeskär Chief Operating Officer upstream 0.00% 0.00% 5.00% 5.00% 3.15% 13.15% 50.00% Marie Danielsson Chief Financial Officer 0.00% 0.00% 5.00% 5.00% 3.25% 13.25% 50.00% Roger Olofsson Chief Human Resources Officer 0.00% 0.00% 4.00% 4.00% 3.00% 11.00% 40.00% Petra Brantmark Chief Legal Officer 0.00% 0.00% 4.00% 4.00% 3.75% 11.75% 40.00% Charlotte Knudsen Chief Communications Officer 0.00% 0.00% 4.00% 4.00% 2.25% 10.25% 40.00% Camilla Bjerkli Chief Sustainability Officer 0.00% 0.00% 4.00% 4.00% 3.00% 11.00% 40.00% Stein Inge Liasjø Chief Strategy Officer 0.00% 0.00% 4.00% 4.00% 3.60% 11.60% 40.00% Karl-Erik Olesen Chief Operating Officer downstream 0.00% 4.00% 4.00% 2.00% 6.50% 16.50% 40.00% 196196Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 6. Derogation from remuneration policy 6.1 Variable pay programme As stated in the remuneration policy, the directors are entitled to receive a cash bonus as outlined in the variable incentive pay programme with established criteria that reflect key drivers related to BEWI’s strategic priorities, as well as achieving financial and sustainability targets. All bonuses under the variable incentive pay programme were accrued for in the 2024 financial statements and are in line with the remuneration policy. 7. Comparative information on the changes of remuneration and group performance Table 5 below contains information on the annual change of remuneration for each director, as well as the comparable information regarding salary increases based on applicable collective agreement in Norway, Kjemisk Teknisk overenskomst (avtale nr.106) Table 5: Information on annual change of remuneration and average salary increase Name Function 2024 2023 2022 2021 2020 2020 Christian Bekken Chief Executive Officer 10% -19% 9% 38% -4% 25% Jonas Siljeskär Chief Operating Officer upstream 12% -14% 0% 8% 48% 24% Marie Danielsson Chief Finacial Officer 8% -13% 7% -14% 112% -30% Roger Olofsson 1 Chief Human Resources Officer Petra Brantmark 1 Chief Legal Officer 19% Charlotte Knudsen 1 Chief Communiations Officer Camilla Bjerkli 1 Chief Sustainability Officer Stein Inge Liasjø 1 Chief Strategy Officer Karl-Erik Olesen 1 Chief Operating Officer downstream Company performance Net sales Annual percentage change -8% 5% 41% 62% 8% 13% Adj. EBITDA Annual percentage change -16% -19% 27% 68% 25% 68% Adj.EBITDA margin (%) 9% 9.80% 12.7% 14.6% 14.0% 12.1% Salary increase according to collective agreement Kjemisk Teknisk overenskomst (avtale nr. 106). 4.92% 4.43% 4.24% 2.11% 1.72% 2.05% Due to large changes in the BEWI organisation as a consequence of mergers and divestures, comparable salary data of own employees has not been reported. 1 Chief Human Resources Officer, Chief Communications Officer and Chief Sustainability Officer left the executive management from 1 November 2024. Chief Operating Officer downstream and Chief Strategy Officer were included in the executive management from 1 November 2024. No comparable data for full year 2024 versus 2023 Company performance includes discontinued operations. 197197Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 8. Statement by the board of directors The board of directors has today considered and adopted the remuneration report for executive management of BEWI ASA for the financial year 2024. The report has been prepared in accordance with section 6-16b of the Norwegian Public Limited Liability Companies Act, and will be presented for an advisory vote at the annual general meeting in 2025. Trondheim, Norway, 26 March 2025 The board of directors of BEWI ASA Gunnar Syvertsen Chair of the board Anne-Lise Aukner Director Rik Dobbelaere Director Andreas M. Akselsen Director Kristina Schauman Director Pernille Skarstein Director 198198Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 To the General Meeting of BEWI ASA Independent auditor’s assurance report on report on salary and other remuneration to directors Opinion We have performed an assurance engagement to obtain reasonable assurance that BEWI ASA report on salary and other remu- neration to directors (the remuneration report) for the financial year ended 31 December 2024 has been prepared in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation. In our opinion, the remuneration report has been prepared, in all material respects, in accordance with section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation. Board of directors’ responsibilities The board of directors is responsible for the preparation of the remuneration report and that it contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and for such internal control as the board of directors determines is necessary for the preparation of a remuneration report that is free from material misstatements, whether due to fraud or error. Our Independence and Quality Management We are independent of the company as required by laws and regulations and the International Ethics Standards Board for Accountants’ Code of International Ethics for Professional Accountants (including International Independence Standards) (IESBA Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements. We apply the International Standard on Quality Management (ISQM) 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements, and accordingly, maintain a comprehensive system of quality control including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Auditor’s responsibilities Our responsibility is to express an opinion on whether the remuneration report contains the information required in section 6-16 b of the Norwegian Public Limited Liability Companies Act and the accompanying regulation and that the information in the remuneration report is free from material misstatements. We conducted our work in accordance with the International Standard for Assurance Engagements (ISAE) 3000 – “Assurance engagements other than audits or reviews of historical financial information”. We obtained an understanding of the remuneration policy approved by the general meeting. Our procedures included obtaining an understanding of the internal control relevant to the preparation of the remuneration report in order to design procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. Further we performed procedures to ensure completeness and accuracy of the information provided in the remuneration report, including whether it contains the information required by the law and accompanying regulation. We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Trondheim, 26 March 2025 PricewaterhouseCoopers Kjetil Smørdal State Authorised Public Accountant (electronically signed) 199199Remuneration Remuneration 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Appendix 200200Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Appendix 1 The board of directors’ statement on corporate governance for 2024 in relation to the norwegian code of practice for corporate governance This section provides a detailed overview of how BEWI ASA (“BEWI” or the “company”) follows the Norwegian code of practice for corporate govern- ance (“the Code”) dated 14 October 2021 issued by the Norwegian Corporate Governance Board (NCGB). Information in accordance with the Norwegian Accounting Act, Section 2-9 is also included. This report should be reviewed together with the Governance section. The Code covers 15 topics, and this statement covers each of these topics and describes BEWI’s adherence to the Code. 1. Implementation and reporting on corporate governance Compliance and regulations The board of directors (the board) of BEWI has the overall responsibility for ensuring that the company has a high standard of corporate governance. The board has adopted corporate governance principles, and other policies related to corporate governance, which are assessed and adopted yearly. An over- view of the governing policies is included in the Governance section. BEWI ASA is a Norwegian public limited liability company listed on the Euronext Oslo Børs and is subject to section 2-9 of the Norwegian Accounting Act (available at www.lovdata.no) and the Issuers Rules of Oslo Børs, covered by the Oslo Rulebook II chapter 4.4 (available at www.oslobors.no). Adherence to the Code is based on a comply or explain principle, meaning that any deviation from the Code shall be explained. This includes to explain what alternative solution the company has selected. BEWI has, to the board’s best assessment, one deviation from the Code, related to chapter 6 about general meetings: The Code states that the board should ensure that the chair of the company’s nomination committee attends the general meeting. In BEWI, all matters covered by the general meeting in 2024 were deter- mined to be approved prior to the meeting by way of registered voting instructions, and the company therefore considered it unnecessary for the chair of the nomination committee to attend. 2. Business activity BEWI is a provider of packaging, components, and insulation solutions. An overview of the business is included in the section Our business. The operations comply with the business objective set forth in the company’s articles of association section 3, available on BEWI’s website, www.bewi.com The board has defined clear objectives and strategic priorities for the company, including long-term financial and sustainability targets, to ensure value creation for the shareholders and other stakeholders. The objectives are evaluated annually. Sustainability is integrated in the company strategy, informed by the annual double materiality assess- ment performed in 2024 in alignment with the Corporate Sustainability Reporting Directive (CSRD). The board has adopted a Code of Conduct, setting out key principles for the ethical conduct of the business. The principles are used to integrate consid- erations to human rights, employee rights and social matters, the external environment and anti-corrup- tion efforts, and is supported by separate policies on anti-corruption, compliance with competition law, sanctions, privacy, and whistleblowing guidelines. 3. Equity and dividends Capital structure The board considers BEWI’s capital structure to be appropriate to the company’s objectives, strategy, and risk profile, with an appropriate balance between equity and other sources of financing. The capital structure is considered on an ongoing basis. Dividends BEWI has a dividend policy where the long-term policy is to pay out between 30 and 50 per cent of the company’s underlying net profit after tax, as dividends. When deciding on the annual dividend, the board considers the company’s financial position, investment plans as well as the needed financial flexibility for strategic growth. The board do not propose any dividend distribution based on the financial year of 2024, and did not propose dividend distribution in 2024 based on the financial year of 2023. 201201Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Board authorisations Authorisations to the board to increase the share capital and buy own shares are given for periods until the next annual general meeting (AGM) of the company. As of 31 December 2024, the board of BEWI had three authorisations: 1. Authorisation to increase the share capital by up to NOK 38 344 458 to strengthen the equity of the company, finance future growth, acquisitions, increase the liquidity and spread of ownership in respect of the company’s shares or for other pur- poses as the board decides. 2. Authorisation to increase the share capital by up to NOK 5 751 668 in connection with the company’s incentive programmes. 3. Authorisation to acquire own shares up to a nominal value of 19 172 229 (equal to 10 per cent of the company’s share capital at the time of the authorisation). The shares shall either be cancelled or be used for the company’s incentive programme, investments or as settlement in acquisitions. All authorisations are valid until the annual general meeting in 2025, however expiring on 30 June 2025 at the latest. 4. Equal treatment of shareholders and transactions with close associates In the event of capital increases based on author- isations issued by the general meeting, where the existing shareholders’ rights will be waived, the reason for this will be provided in a public announce- ment in connection with the capital increase. Any transactions, agreements or arrangements between the company and its shareholders, members of the board, members of the executive management team or close associates of any such parties will be conducted in compliance with the procedures set out in the Norwegian Public Limited Liability Companies Act. The board shall arrange for a valuation to be obtained from an independent third party unless the transaction, agreement or arrange- ment in question is considered immaterial. Board members and members of the executive manage- ment team shall immediately notify the board if they have any material direct or indirect interest in any transaction entered by the company. Trading own shares Any transaction which the company carries out in its own shares will be carried out through the stock exchange, and at prevailing stock exchange prices. If there is limited liquidity in the company’s shares, BEWI will consider other ways to ensure equal treat- ment of its shareholders. 5. Shares and negotiability BEWI has only one class of shares and all shares have equal rights. Each share has a face value of NOK 1.00 and carries one vote. The company emphasise equal treatment of its share- holders and the shares are freely transferable. 6. General meetings BEWI’s highest decision-making body is the general meeting of shareholders. All shareholders have the right to participate in the general meetings. Article 7 of the company’s articles of associations sets out the main principles of the general meeting. The notices calling the general meetings are made available to shareholders no later than 21 days prior to the meetings. The notices include information about resolutions and supporting information is sufficiently detailed to allow shareholders to form a view on all matters to be considered at the meeting. The board is represented at the AGM. General meet- ings are opened by the chair of the board, or the person appointed by the board. The board proposes a person to chair the meeting. In 2024, BEWI held its AGM on 4 June. The AGM for 2025 is scheduled to be held on 21 May 2025. 7. Nomination committee Article 8 of the company’s articles of association stipulates that the company shall have a nomination committee, consisting of two to four members, where the majority of the members shall be independent of the board and management. The members, including the chairperson, are elected by the general meeting for a term of two years unless decided by the general meeting. Information about the work of the nomination com- mittee is included in the Governance section. In 2024, the nomination committee of BEWI con- sisted of Liv Malvik (chair) and Roar Husby until the company’s annual general meeting on 4 June 2024. At the meeting, the following new members of the committee was elected for a period up to the annual general meeting in 2026: André Michaelsen, chair, Rune Juliussen, member, Marianne Bekken, member and Svein Jensen, member. Instructions for the nomination committee was adopted by the extraordinary general meeting of the company in August 2020, with latest updates adopted at the annual general meeting of 2024. 202202Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 8. Board of directors: composition and independence According to article 5 of BEWI’s articles of associa- tions, the board shall consist of a minimum of three and a maximum of eight board members elected by the general meeting for a period of two years, unless otherwise decided by the general meeting. The general meeting elects the chair of the board. In 2024, the board of BEWI consisted of six members, whereof three female and three male members, which is in line with the requirements of the Public Limited Companies Act. Information about the composition, independence, and competencies of the board is included in the Governance section of this report and is also available from the company’s website www.bewi.com. 9. The work of the board of directors The board shall ensure that the company has proper management with clear internal distribution of responsibilities and duties. A clear division of work has been established between the board and the executive management team. The CEO is responsible for the executive management of the company. Instructions to the board and the CEO are reviewed and approved at least annually. The board has the overall responsibility for the management of the group and the supervision of its day-to-day man- agement and business activities. The board prepares an annual plan for its work with special emphasis on goals, strategy, and implementation. Information about the work of the board is included in the Governance section. Sub-committees of the board Audit committee Pursuant to the Norwegian Public Limited Liability Companies Act and the listing rules of the Oslo Stock Exchange, BEWI shall have an audit committee, consisting of at least two members, of which at least one member must have accounting or auditing proficiency and at least one member must be independent of the company’s business. The audit committee is appointed by the board. Information about the responsibilities, work, meet- ings, and composition of BEWI’s audit committee is included in the Governance section. In 2024, BEWI’s audit committee consisted of Kristina Schauman (chair) and Gunnar Syvertsen. Remuneration committee BEWI shall have a remuneration committee appointed by the board. The remuneration commit- tee shall evaluate and propose the compensation of BEWI’s CEO, and review and advise the CEO on the compensation of other members of the executive management team. Information about the responsibilities, work, meetings, and composition of BEWI’s remuneration committee is included in the Governance section. In 2024, the remuneration committee consisted of Anne-Lise Aukner (chair) and Gunnar Syvertsen. 10. Risk management and internal control The board is responsible for ensuring that BEWI has sound internal control and systems for risk manage- ment that are appropriate in relation to the extent and nature of the company’s activities. The internal control and the systems shall also encompass the company’s corporate values and ethical guidelines. BEWI’s systems assess risks and opportunities across all material activities, within own operations and throughout the value chain. Risk assessment within material topics are integrated into the companys annual Double Materiality Assessment (DMA). This assessment informs the Enterprise Risk Management (ERM), ensuring that sustainability considerations are aligned with the overall risk management. The DMA is included in the Sustainability statements, while the ERM is available in the Governance section. The board annually reviews and approves the DMA and ERM, which guide the company’s strategic initia- tives. Additionally, policies, procedures and strategic priorities are reviewed annually, upholding rigorous due diligence, mitigate risks, and leverage identified opportunities. Internal control of financial and sustainability reporting is achieved through day-to-day follow-up by management and supervision by the company’s audit committee on a quarterly and annual basis in relation to the company’s reporting. The objective of the risk management and internal control is to manage exposure to risks, to ensure successful conduct of the company’s business and to support the quality of its financial and sustainability reporting. The board has approved routines for internal control and risk management. 11. Board remuneration The general meeting determines the board’s remu- neration based on proposals from the nomination committee. The remuneration to the board members shall not be performance-related nor include share option elements. The board’s remuneration for the period from the general meeting in 2024 to the general meeting in 2025, including extra compensation for work in sub 203203Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 committees, was approved by the company’s annual general meeting on 4 June 2024. The board shall be informed if individual board members perform tasks for the company other than exercising their role as board members. As of 31 December 2024, two of the board members had agreements to perform advisory work for the company in addition to their assignment as board members, of which one of the agreements expires at the annual general meeting in 2025. A full overview of the compensation to the board is included in the Remuneration report. 12. Remuneration of executive management The company’s senior executive remuneration policy is based primarily on the principle that executive pay should be competitive and motivating, to attract and retain key personnel with the necessary competence. Pursuant to Section 6-16a of the Norwegian Public Limited Companies Act (NPLCA), the board prepares guidelines for determination of salaries and other benefits payable to senior executives. The guidelines are, in line with the said statutory provision, as well as Section 5-6 (3) of the same Act approved by the general meeting. If the guidelines are materially altered, the guidelines will be laid before and approved by the general meeting. The guidelines will be approved by the general meeting at least every four years. The guidelines are included in the Governance section of this report. In addition to the guidelines, the board prepares a remuneration report pursuant to Section 6-16b of NPLCA. The report is considered by the company’s general meeting and shall be subject to an advisory vote by the general meeting in accordance with NPLCA Section 5-6 (4). The report is included in the section called Remuneration report of the annual report. 13. Information and communication Investor relations Communication with shareholders, investors and analysts is a high priority for BEWI. The objective is to ensure that the financial markets and sharehold- ers receive correct and timely information, thus providing a sound foundation for a valuation of the company. All market players shall have access to the same information, and all information is published in English. All notices sent to the stock exchange are made available on the company’s website and at www.newsweb.no. BEWI’s ambition is to comply with the latest version of the Oslo Børs Code of Practice for IR (“the IR Code”), including recommendations on the reporting of information to investors on the company’s websites. The board of BEWI has adopted a policy on handling of inside information and other disclosure obligations, as well as an information policy. Included in the pol- icies are, among others, guidelines on trading in the share by key employees, including clearance prior to trading, and division of roles and responsibilities. The CEO, CFO and Chief of Communications and Investor Relations (CCO) are responsible for communicating with shareholders between general meetings. Financial information The company holds investor presentations in asso- ciation with the publication of its quarterly results. The presentations are open to all and provide an overview of the group’s operational and financial performance in the previous quarter, as well as an overview of the general market outlook. The pres- entations are also made available on the company’s website. Quiet period BEWI maintains a silent period of 30 days prior to the day of the company’s publication of interim reports. During this period, representatives of the company will minimise its contact with financial media, ana- lysts, and investors and not comment on any financial development. Restricted trading periods Persons defined as primary insiders of BEWI, as well as related parties of the primary insiders, are not allowed to acquire or sell shares in the company or related financial instruments during the period of 30 days prior to the company’s publication of the report for the fourth quarter, including preliminary full year results, and the report for the first half year. BEWI publishes a financial calendar on its website and at the Oslo Børs’s website, setting out the expected dates of publication for its reports. 14. Take-over situations In a take-over process, should it occur, the board and the executive management team each have an individual responsibility to ensure that the company’s shareholders are treated equally and that there are no unnecessary interruptions to the company’s business activities. The board has a particular responsibility in ensuring that the shareholders have sufficient infor- mation and time to assess the offer. In the event of a take-over process, the board shall ensure that: • the board will not seek to hinder or obstruct any takeover bid for the company’s operations or shares unless there are particular reasons for doing so; 204204Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 • the board shall not undertake any actions intended to give shareholders or others an unreasonable advantage at the expense of other shareholders or the company; • the board shall not institute measures with the intention of protecting the personal interests of its members at the expense of the interests of the shareholders; and • the board shall be aware of the particular duty it has for ensuring that the values and interests of the shareholders are protected. In the event of a take-over bid, the board will, in addition to complying with relevant legislation and regulations, seek to comply with the recommen- dations in the Code. This could include obtaining a valuation and fairness opinion from an independent expert. On this basis, the board shall draw up a statement containing a well-grounded evaluation of the bid and make a recommendation as to whether or not the shareholders should accept the bid. The evaluation shall specify how, for example, a take-over would affect long-term value creation of BEWI. 15. Auditor The auditor is appointed by the annual general meeting and is independent of BEWI. Each year the board receives a written confirmation from the auditor that the requirements with respect to inde- pendence and objectivity have been met. The auditor draws up an annual plan each year for the execution of their auditing activities, including financial and sustainability audits. The plan is shared with the board and the audit committee. The board specifically considers if the auditor to a satisfactory degree also carries out a control function. The auditor meets with the audit committee quarterly and has at least an annual review of the company’s internal control activities. The auditor meets with the board without the CEO or any other member of the executive management present at least once a year. Whenever necessary, the board shall meet with the auditor to review the auditor’s view on the company’s accounting princi- ples, risk areas, internal control routines, etc. The auditor may only be used as a financial advisor to the company provided that such use of the auditor does not have the ability to affect or question the auditors’ independence and objectiveness as auditor for the company. The audit committee shall approve any agreements in respect of such counselling assignments in accordance with BEWI’s internal policies. At the annual general meeting, the board shall present a review of the auditor’s compensation as paid for auditory work required by law and remuner- ation associated with other specific assignments. The auditor for BEWI ASA is PWC. 205205Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 Appendix 2 Abbreviations Abbreviation Meaning CRP Climate Reduction Plan CSDDD Corporate Sustainability Due Diligence Directive CSRD Corporate Sustainability Reporting Directive DEFRA Department for Environment, Food & Rural Affairs DMA Double Materiality Assessment DNSH Do No Significant Harm EOL-treatment End-Of-Life Treatment EPD Environmental Product Declaration EPP Expanded PolyPropylene EPS Expanded PolyStyrene ESG Environment, Social and Governance ESRS European Sustainability Reporting Standard FTE Full Time Equivalent GHG GreenHouse Gas GPPS General Purpose PolyStyrene Abbreviation Meaning IRO Impact, Risk and Opportunities LCA Life-Cycle Assessment LEAP Locate Evaluate Assess Prepare OCS Operation Clean Sweep PE PolyEthylene PP PolyPropylene PS PolyStyrene SBTi Science-Based Targets Initiative SC Substantial Contribution TCFD Taskforce on Climate-Related Financial Disclosures TNFD Taskforce on Nature-Related Financial Dislosures TSC Technical Screening Criteria TTW Tank-To-Wheel WTW Well-To-Wheel XPS Extruded PolyStyrene 206206Appendix Appendix 2021 Artbox Report Templauk same All rightr v reserved © Artbox AS 2021 2021 Artbox Report Template All rights reserved © Artbox AS 2021 artbox.no BEWI ASA Dyre Halses gate 1A 7042 Trondheim, Norway BEWI.com Chief Communications and Investor Relations Officer Charlotte Knudsen Tel: +47 975 61 959 Chief Sustainability Officer Camilla Louise Bjerkli Tel: +47 984 487 56 Publication 27 March 2025 207207

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