Bewi Invest AS — Earnings Release 2024

May 16, 2024

First quarter of 2024 results

CEO Christian Bekken, CFO Marie Danielsson 16 May 2024

Cautionary note regarding forward-looking statements

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

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

Strategically positioned for energy efficient – and circular packaging solutions

Key figures for the first quarter of 2024

Revenue EUR 244 million -18%

Net sales EUR million

Adj. EBITDA EUR 19 million -34%

Adj. EBITDA margin 7.6% -1.9 pp

Adj. EBITDA Percentage (%)

First quarter of 2024 4

Solid performance in seasonally weak quarter, positioned for growth

• Market conditions remained challenging in seasonally weak quarter
• Solid operational performance
  • o Cost reductions enable sustained downstream margins, despite lower volumes
  • o Ramp-up of new production line in Etten-Leur
  • o Launch of products with lower CO2 footprint
• Signs of improvement in macroeconomic indicators
• Regulatory drivers remain strong

Adj. EBITDA

-34%

7.6%

-1.9 pp

EUR 19 million

Adj. EBITDA margin

Delivering on key priorities for long-term growth

1 2 3 4 5 Increasing collection and use of recycled material Capacity and cost optimalisation Capitalising on investments Strengthening financial position Evaluating strategic opportunities for growth

2023:

7

First quarter of 2024 7

>50 million fish boxes ~30 kt EPS

~27 kt EPS collected ~90% of fish boxes

In pole position for proposed packaging regulations

New regulations create opportunities

Fish box packaging in use

Fibre-based packaging

Proposed regulations (PPWR)

≥30% recycled content

First quarter 2024

Group financials

ONE commercial and residential building Frankfurt, Germany with BEWI's XPS thermal insulation

Photo credit: CA Immo/Klaus Helbig

First quarter of 2024 9

Financial overview for the first quarter of 2024

Downstream segments sustain margins despite lower volumes

Financials

Consolidated income statement

Amounts in EUR million	Q1 2024	Q1 2023	2023
Net Sales	244.0	296.4	1 105.3
Other operating income	-	-	1.5
Total operating income	244.0	296.4	1 106.8
Raw materials and consumables	-91.8	-121.5	-455.3
Goods for resale	-25.4	-24.8	-95.3
Other external costs	-56.7	-71.9	-249.9
Personnel cost	-51.6	-51.8	-205.2
Depreciation/ amortisation/ impairment	-17.0	-17.1	-68.4
- attributable to operations	-8.3	-8.9	-33.7
- attributable to IFRS 16	-5.3	-5.0	-21.1
- attributable to fair value adjustments in business combinations	-3.4	-3.2	-13.7
Share of income from associated comp.	-0.1	0.5	1.3
Capital gain/loss from sale of assets and other adjustments	1.2	0.0	-0.6
Operating income (EBIT)	2.6	9.8	33.5
Net financial items	-11.5	-10.4	-42.5
Income tax expense	0.6	-0.2	-6.6
Profit/ loss for the period	-8.3	-0.7	-15.6

• Net sales of EUR 244.0 million, down 18%
• EBIT of EUR 2.6 million (9.8)
  • o Raw materials incl. goods for resale ~50% of sales
  • o External costs down by 21%
    • Cost reductions and lower volumes
    • Fixed cost down 5% despite inflation
  • o Personnel costs slightly lower than Q1 last year
  • ~150 fewer FTE's but salary increase from inflation
• Net financial items of EUR -11.5 million (-10.4)
• Tax income of EUR 0.6 million (expense of 0.2)
• Net result of EUR -8.5 million (-0.7)

Financials

Operational cash flow impacted by seasonally weark quarter and build-up of working capital

• Operating cash flow of EUR -20.2 million (7.4)
  • o Increase in working capital of EUR 23.4 million (8.3), primarily related to increase in accounts receivables
  • o Managed to keep inventory level low and in line with Q4
    • o Lower volumes
    • o Higher prices
  • o Optimisation of working capital a prioritised task

• CAPEX of EUR 8.7 million (11.3)

• o CAPEX for 2024 estimated to EUR 20 million
• o Higher share of investments in 1H related to final pay of key growth projects

Financials

Strengthening financial position a prioritised task

ROCE

(1) EBITDA ratio: adjusted EBITDA rolling 12-months pro-forma acquired entities,

(2) ROCE: Rolling 12 months adjusted EBITA as a percentage of average capital employed during the same periode. Capital employed is defined as total equity plus net debt

• Large acquisitions, combined with downturn in markets impacting leverage and ROCE
• Available cash and credit EUR ~78 million
  • Incl. EUR 36 million unutilized credit facility
• Net debt excl. IFRS 16 of EUR 349 million
  • A priority to strengthen financial position
  • Reduced CAPEX for 2024
  • EUR ~20 million incoming from real estate divestments
  • EUR ~8 million compensation related to Synbra acquisition
  • Closely monitoring working capital

EUR million	31.03.24	31.12.23	31.03.23
Cash and Cash equivalents	42.5	63.6	36.5
Non-current liabilities excl. IFRS 16	376.6	381.6	377.8
Current liabilities excl. IFRS 16	15.0	13.1	27.6
Net debt excl. IFRS 16	349.1	331.1	368.9
Debt related to IFRS 16	225.0	216.6	194.3
Net debt in total	574.1	547.6	563.2

First quarter 2024

Segment review

BEWI's new packaging facility at Jøsnøya, Norway

Improved efficiency and lower fixed cost partly compensate for lower volumes and GAP

• Net sales of EUR 72.2 million (93.5), down 23%
  • o Volumes impacted by low activity in building and construction
  • o Official EPS prices down by ~7% since Q1 2023
  • o Extra harsh winter and early Easter further impact
• Adj. EBITDA of EUR 3.7 million (7.6), 5.1% margin
  • o Reduced GAP main explanation to lower EBITDA, coming from 1% higher styrene price vs 7% lower EPS price since Q1 last year
  • o New production line in ramp-up phase
  • o Increased efficiency and lower fixed cost compensate partly

Insulation & Construction

Maintained margin despite continued low activity in the building and construction industry

• Net sales of EUR 98.4 million (120.5), down 18%
  • o Q1 seasonally weakest quarter, further impacted by extra harsh winter and early Easter
  • o Regional variations
• Adj. EBITDA of EUR 6.5 million (8.0), 6.6% margin
  • o Successful price management and cost reductions resulted in a margin in line with Q1 2023, despite lower volumes
  • o Improved EBITDA contribution from the Nordics, and reduced contribution from Benelux

Packaging & Components

Rather stable fish box and automotive volumes, while the HVAC and trading volumes are low

• Net sales of EUR 93.7 million (109.7), down 15%
  • o Decrease mainly explained by lower volumes of industrial products and traded food packaging
• Adj. EBITDA of EUR 11.2 million (13.4), 11.9% margin
  • o Margin in line with Q1 last year
  • o Cost reductions and price management compensate for unfavorable development in product mix since Q4

Increased collection and use of recycled material, results negatively impacted by lower sales prices

• Net sales of EUR 12.5 million (15.5), down 19%
  • o Reduction explained by lower sales prices
  • o Slight increase in sold volumes
• Adj. EBITDA of EUR -1.8 million (0.5), margin -14.2%
  • o Reduced EBITDA due to lower prices

First quarter 2024

Strategy recap and outlook

19

Strong ambitions for further growth

.. need for improved energy efficiency makes insulation solutions key growth driver

Ambition to double revenue next 3-5 years with increased exposure to insulation

The opportunity

Climate change requires more energy efficient buildings

For the EU to reach its climate reduction targets, renovation is required at large scale, and new buildings must be zero emissions by 2030

40%

of energy consumption in EU from buildings¹ 75%

of buildings build before 2000 are not energy efficient¹

First quarter of 2024 21 1) Source: European Commission

Structural growth for insulation solutions

Recent soft markets -> increased housing shortage 2

Historical development of required insulation value in the Netherlands RC insulation value

1

2 400 m² GreenLine EPS incl. 100% recycled content 67% CO² reduction compared to conventional material

Positioned to accelerate growth when market rebounds

• ✓Strong market fundamentals
• ✓"Tuned" production and cost structure
• ✓Unutilized capacity
• ✓Broad product offering
• ✓Clear growth strategy
• ✓Growing M&A pipeline

Rebound in volumes yield significant earnings uplift

EBITDA uplift

Insulation	Raw	P&C	Circular	Automotive	Corporate	BEWI ASA

• 35% increase in volumes, could yield more than 70% uplift in EBITDA for I&C

• Additional positive effects for RAW, P&C (HVAC) and Circular

Recent investments to add EUR ~75 million sales

Positioning for energy efficient solutions – and circular packaging products

Division	Key recent investments
RAW	• New production line for raw materials, Netherlands -> increased capacity of grey EPS and use of recycled feedstock
Insulation & Construction	• Increased construction board capacity, Belgium
Packaging & Components	• Increased capacity for paper packaging, Denmark • Increased capacity for HVAC components, Sweden and Portugal
Circular	• Increased extrusion capacity, Sweden

1) Based on Management estimates

Summary and outlook

Well-positioned for growth

• Continued challenging markets
  • Q1 seasonally weak, further impacted by extra cold winter and early Easter
• Demonstrated strong ability to adapt
• A priority to further strengthen balance sheet

• Well positioned to capitalise on higher volumes when market rebounds

• Strong fundamentals and growth opportunities ahead