Borgestad ASA — Earnings Release 2023

Nov 6, 2023

Borgestad ASA – Interim financial report for the third quarter 2023

Borgestad ASA – Interim financial report for the third quarter 2023

•The group's revenue increased by 31.7% in the third quarter of 2023 compared to the same period in 2022.

•EBITDA for the third quarter of 2023 improved by NOK 50.6 million compared to third quarter of 2022. This was mainly due to a partially owned subsidiary of Borgestad ASA, Macon AB, , receiving a favourable ruling on all aspects in the arbitration case in Vienna, as announced in the stock exchange notice on 7 July 2023. This resulted in a positive EBITDA impact of NOK 46.4 million in the third quarter.

•The group has implemented an impairment of Agora Bytom per 30 September 2023 with an effect of NOK 59.7 million due to increased yield in 2023.

•After the end of the quarter, on 27 October 2023, Borgestad announced a conditional sale-and-leaseback agreement with Bjuv municipality in Sweden for two properties located in Sweden. The transaction has an estimated net cash effect for the group of NOK 141.3 million.

•Due to maturing short term debt and the general level of debt in the group, a private placement of NOK 250 million private placement is expected to be launched. Conditional on a successful private placement and completion of the sale-and-leaseback transaction with Bjuv municipality, Borgestad will have significantly lower debt and be fully financed.

Borgestad ASA's report for the third quarter of 2023 is attached hereto.

The contact person is Pål Feen Larsen, CEO Borgestad ASA, +47 488 45 333

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This announcement refers to Borgestad ASA's EBITDA. EBITDA stands for earnings before interest, tax, depreciation and amortization," which means the result before interest, tax, depreciation, and amortization. For more information, please refer to the report for the third quarter of 2023.

This information is subject to disclosure requirements pursuant to the Securities Trading Act §5-12.

About Borgestad | www.borgestad.no

Borgestad ASA (OSE:BOR) is an investment company focused on real estate and industry. The key investments include Agora Bytom shopping center and the leading refractory manufacturer Höganäs Borgestad.

About Höganäs Borgestad | www.hoganasborgestad.com

Höganäs Borgestad develops, manufactures and delivers refractory products, installations and turnkey solutions that enhance the productivity and competitiveness of industrial customers. The aim is to contribute to the customers' profitability by providing high-value refractory solutions to their challenges. Today, the company is a leading supplier in the refractory market of the Nordic countries and has a global presence in a number of selected application areas.