Bewi Invest AS

Earnings Release • Nov 9, 2022

BEWI - Results for the third quarter of 2022

BEWI - Results for the third quarter of 2022

BEWI, a leading provider of packaging, components, and insulation solutions,

today reported its results for the third quarter of 2022. The company recorded

net sales of 267.5 million euro for the third quarter of 2022, up by 39 per cent

compared to the 193.0 million euro for the same quarter last year. 15 per cent

of the growth was organic, mainly explained by higher sales prices. Adjusted

EBITDA came in at 35.4 million, up from EUR 34.2 million recorded for the Third

quarter of 2021.

"We are very pleased to deliver another quarter with growth and solid results,

considering the increasingly challenging market conditions. Through the recent

acquisitions, we expand geographically and further strengthen our positions in

strategically important markets and segments," says Christian Bekken, CEO of

BEWI ASA.

For the first nine months of 2022, BEWI had revenues of 774.7 million euro,

compared to 540.0 million for the same period last year, representing 44 per

cent growth, of which 23 per cent was organic.

All segments, except Circular, contribute to the organic growth, mainly due to

strong price management. Styrene raw material prices continued to increase into

the third quarter and dropped towards the end of the quarter. The gross margin

for segment RAW remained solid, but expectations of decreasing raw material

prices in combination with increased uncertainty related to the current macro

climate impacted the segment's volumes negatively.

During the third quarter, BEWI closed its acquisition of the Lithuanian

insulation company BalPol, and on 19 October, the company closed its acquisition

of Jackon transaction.

"We are glad to finally be able to complete the Jackon transaction, welcoming

more than 900 new employees to our company. Now, we can focus fully on the

integration, including extracting the significant synergies we have identified.

We believe this will enable us to maintain a strong EBITDA level going forward,

although we expect to see softer volumes to selected industries given the

current market conditions," Bekken continues.

BEWI's key markets include food packaging, insulation, HVAC (heating,

ventilation, air-condition), and the automotive industry. Although the company

sees signs of slowdown, there are variations across the end markets. Food

packaging is expected to remain stable and the demand for HVAC solutions is

strong. The building and construction industry is forecasted to decline next

year, impacting some of the company's portfolio short term. However, the company

expect a stable long-term demand for its insulation solutions, supported by

strong underlying fundamentals, including the need to improve energy efficiency

in buildings and related regulations. Further, growth in automotive demand is

improving slightly as supply chain issues seem to be easing.

"We believe BEWI is financially and operationally robust, and well positioned in

the current challenging markets. Uncertainty has increased for the short- to

medium term outlook, and we have therefore initiated preventive measures for

improved cost control, combined with planned activities for cost reduction

following integration of Jackon," Bekken concludes.

Please find attached the full report for the third quarter of 2022, the

presentation of the results and the financials spreadsheet.

CEO Christian Bekken and CFO Marie Danielsson will present the results from

08:30 through a live webcast. The link to the webcast is available from BEWI's

homepage www.bewi.com. It will be possible to post questions through the

webcast, and a recording of the webcast will be made available from BEWI's

website.

For further information, please contact:

Charlotte Knudsen, Director of IR and Communications BEWi ASA, tel: +47 9756

1959

Marie Danielsson, CFO BEWI ASA, tel: +46 70 661 0047

About BEWI ASA

BEWI is an international provider of packaging, components, and insulation

solutions. The company's commitment to sustainability is integrated throughout

the value chain, from production of raw materials and end goods, to recycling of

used products. With a vision to protect people and goods for a better every day,

BEWI is leading the change towards a circular economy.

BEWI ASA is listed at the Oslo Børs under ticker BEWI.

The information is such that BEWI ASA is required to disclose in accordance with

the EU Market Abuse Regulation. The information was submitted for publication,

through the agency of the contact person set out above, at 07:00 CET on 9

November 2022