Byggma ASA — Interim / Quarterly Report 2021

Nov 4, 2021

INTERIM REPORT Q3 2021

FROM A LOCAL FOREST, TROUGH INNOVATION, TO A HOME FOR EVERYONE TO ENJOY

Introduction	3
Highlights	4
A word from the CEO	5
Key figures for the Group	7
Segment information	9
Sustainability ESG 13
Future prospects 16
Consolidated financial statements 17
Notes to the consolidated financial statements 21
Real estate overview 25
Contact details and subsidiaries 26

Byggma ASA has its head office in Vennesla in Agder, Norway. The Byggma Group consists of the production and trading companies Forestia AS, Huntonit AS, Uldal AS, Masonite Beams AB, Smartpanel AS, Masonite Beams AS, AS Byggform, Aneta Lighting AS and Aneta Lighting AB. Byggma is listed on the Oslo Stock Exchange with ticker BMA.

Byggma ASA has its head office in Vennesla in Agder, Norway. The Byggma Group consists of the production and trading companies Forestia AS, Huntonit AS, Uldal AS, Masonite Beams AB, Smartpanel AS, Masonite Beams AS, AS Byggform, Aneta Lighting AS and Aneta Lighting AB.

Byggma is listed on the Oslo Stock Exchange with ticker BMA.

Byggma's vision is to be among the leading suppliers of building materials solutions in the Nordic region. Our vision will be achieved through the following goals:

• 1. The Group will achieve a turnover of at least MNOK 3,000
• 2. The profit margin will be at least 5%
• 3. The Group's activities must be based on sustainable products and efficient use of resources.
• 4. The Group will be innovative and build strong brands
• 5. We will enjoy high customer satisfaction
• 6. We will create profitable and safe workplaces by focusing on HSE, employee development and well-being.
• 7. Byggma will be an attractive investment

Innovation and technological development are an important part of the Group's growth strategy, and there is a strong willingness to invest in the necessary equipment and expertise in order to be a leading player in the Nordic building materials market in the future.

In principle, Byggma will be allocating its investments to digitisation and automation of production processes, as well as to the environment and sustainability.

The expected group turnover in 2021 is NOK 2,300 million and the Group has around 700 employees.

The Group will seek to realise its vision through its fundamental values, which can be described as Inclusive, Innovative and Responsible:

Inclusive

Show interest, respect and understanding towards colleagues, customers and suppliers. Open and direct communication that allows for influence and joint decisions that generate engagement. Help develop the people around you (we are no better than the weakest link).

Innovative

Curious and in search of future challenges. Always solution-oriented and on the lookout for opportunities and good ideas. Encourage the development and commercialisation of good ideas across the Group.

Responsible

Continuous focus on HSE, including continuous focus on training and skills development. Act with integrity and stand by all that we say and do. Show concern for the environment, health and sustainable development in the execution of our activities.

PLEASE SEE OUR GROUP PRESENTATION:

HIGHLIGHTS

Sales revenue and profit

Sales revenue in Q3 2021 increased from NOK 481.6 million in Q3 2021 to NOK 546.0 million, corresponding to an increase of 13.4%. Year to date, sales revenue has increased from NOK 1,504.4 million to NOK 1,712.4 million, corresponding to an increase of 13.8%. Profit before tax increased from NOK 46.2 million in Q3 2020 to NOK 53.4.0 million in Q3 2021. Profit before tax improved from NOK 100.4 million year to date 2020 to NOK 156.0 million year to date 2021.

Capacity increase and efficiency improvement in Huntonit

During Q3 2021 material upgrades and renovations was completed in Huntonit. The investment amount to ca. NOK 21 million as per 30 September 2021 and has returned a productivity increase of ca. 6%. In addition, a project to reduce waste heat from the same process has been performed, and this has shown that the energy usage can be reduced by 2 GWh per year.

Progress at Masonite Beams

Masonite Beams increased its operating profit from NOK 5.8 million in Q3 2020 to NOK 21.9 million in Q3 2021. Year to date, operating profit has improved from NOK 17.9 million in 2020 to NOK 38.9 million 2021.

Sustainability

The Group is constantly identifying new valuable sustainability projects that reduce emissions to both air and water, which simultaneously are economically profitable for Byggma.

Walls2Paint

Walls2Paint is one of Byggma's most ambitious new launches in recent years. The product has enjoyed substantial growth since its introduction a few years ago. There is still great potential for further growth. Expectations are that Walls2Paint will become Byggma's Number One product in the next few years.

Premium Ceiling

Forestia AS introduced the Premium Ceiling product in the winter of 2020. The product has been very well received and we expect strong sales growth in the coming years.

Huntonit Pro Wall

In autumn 2020, Huntonit AS launched Huntonit Pro Wall. The product has been well received and we expect strong growth in the coming years.

Forestia Carbon Sink

Byggma Group has established the subsidiary Forestia Carbon Sink AS. The purpose of this company is to establish a plant for reception and cleaning of wood waste. The wood waste will be recycled and transformed into industrial quality saw dust that can be used as raw material in new industrial products, e.g. woodchip panels from Forestia. This project is very environmentally friendly and will sequestrate carbon in Byggma's panels for decades instead of being released into the atmosphere through combustion. Carbon sequestration in Byggma's panel products corresponds to 5.6% of emissions from Norway's road traffic.

Results

The Byggma Group continued to advance in Q3 2021. Year to date, sales have increased from NOK 1,504.4 million in 2020 to NOK 1,712.4 million in 2021.

Profit before tax increased from NOK 100.4 million in the nine first months of 2020 to NOK 156.0 million in the same period for 2021.

Demand is accelerating for our wood-based building products. Naturally, this boosts growth for the company. I am grateful that we have not been negatively affected by the corona pandemic. We must be aware that many industries have been hit hard by the pandemic and not take our progress for granted.

This quarter I am especially happy for the development in Masonite Beams. In this segment we have experienced an increase in sales from NOK 76.1 million in Q3 2020 to NOK 108.5 million in Q3 2021. The operating profit increased from NOK 5.8 million in Q3 2020 to NOK 21.9 million in Q3 2021. This is a confirmation that Masonite Beams has strengthened its position in the market. It also confirms that more customers are seeing and approving Masonite Beams advantages regarding weight, strength, stability, and environment.

I am absolutely delighted with the results achieved. We are lucky to have many skilled, competent, and motivated people who are performing at levels that far exceed my expectations. My heartfelt thanks to you all! Your dedication to the job is greatly appreciated.

Brand building and positioning

Byggma is an original brand manufacturer. Several of our brands have been extensively adopted by the building materials industry over many years. This enhances predictability, recognition, and security, all of which are important drivers in customers preferring to purchase Byggma products.

Our overall position as one of the leading suppliers of building materials solutions has strengthened throughout the year. A situation that I find heartening to say the least, but also testifies to that our jobs are secure. The invigorative trend we are seeing also confirms that we are doing things right in all areas of the company.

Innovation

Every product has a life cycle. Byggma currently has many products that are well-established in the market. In order to ensure a stable product portfolio, we are constantly focused on product development and innovation. Product improvements and new launches have enabled us to achieve increased revenue and

profitability in recent years. An achievement we have also repeated this year. Innovation and product development are high priorities in our strategy and will continue to be so in the future.

Sustainability/ESG

Forests sequestrates significant amounts of carbon and through wise management of this resource, we are responsibly creating worthy products that store carbon for many decades. In several instances, the contributions we make to carbon storage in our operations significantly outweigh the effect from the operations' carbon footprint.

At Byggma, we have a tradition of focusing our work on productivity and continuous improvement. Sustainability is in many ways a further development of this work. In terms of sustainability and through the involvement of our committed team of employees and partners, we will exploit resources efficiently, while also securing jobs and the future of a company that is a source of value creation for society in general.

I would like to take this opportunity to mention a couple of vital ESG projects that we have worked with in Q3.

Forestia Carbon Sink

For several years, we have focused our work on mapping the potential for cleansing of leftover material stripped from felled timber and repurposing it as a raw material to produce wood-based products. The project has an investment framework of around NOK 250 million, but will be dependent on state aid in order to be realised. Although the state aid apparatus that could include this in Norway does not at this point in time have programmes to support this investment, we are of the opinion that several

politicians are now also realizing the industrial opportunity that this is offering, which would create new green jobs in Norway. I am happy to observe that the new government of Norway in its plan of action has mentioned the construction of a plant for reception and cleaning of wood waste. To further clarify this, we have now established Forestia Carbon Sink, which will be responsible for cleansing wood waste. The wood waste will be recycled and transformed this into a complete, stand-alone industrial raw material to be used in new products, e.g. woodchip panels from Forestia.

This initiative will be important in establishing timber as a circular resource and ensure extended natural carbon binding.

Capacity increase and energy efficiency improvement in Huntonit

During Q3 2021 material upgrades and renovations was completed in Huntonit. The investment amount to ca. NOK 21 million as per 30 September 2021 and has returned a productivity increase of ca. 6%. This will save energy and cost per Huntonit panel produced. In addition, a project to reduce waste heat from the same process has been performed, and this has shown that the energy usage can be reduced by 2 GWh per year.

Packaging

We are constantly working to improve sustainability of our products' packaging/wrapping. It involves both using lesser and more sustainable solutions while ensuring that the products are sufficiently protected. With Huntonit, we have now tested the replacement of plastic and panel packaging with cardboard packaging. This will reduce the weight significantly, thus saving the environment from emissions during transport, and also reducing the amount of waste on the construction site.

Masonite Beams Sustainability Report

Based on our Group strategy and overall goals concerning to sustainability, Masonite Beams have prepared its own sustainability report.

My thanks to each and every one of you at Byggma for your efforts so far in 2021. My wish is for everyone to thrive here and for each of you to realise your personal potential through your role in the Byggma Group.

Best regards,

Geir Drangsland, Group CEO

Masonite Beams Sustainability Report: https://www.masonitebeams.se/media/7358/masonite-beams-haallbarhetsrapport-2021_digital.pdf

GROUP KEY FIGURES

Million NOK	Q3 2021	Q3 2020	YTD 2021	YTD 2020	2020
Sales revenues	546,0	481,6	1 712,4	1 504,4	2 052,4
EBITDA *)	76,2	70,3	221,7	191,9	269,6
Operating profit	55,6	50,9	160,9	134,5	192,6
Net financials	(2,1)	(4,8)	(4,8)	(34,1)	(32,9)
Profit/loss before tax	53,4	46,2	156,0	100,4	159,7
Taxes	(11,6)	(10,1)	(34,0)	(22,2)	(34,8)
Profit/loss after tax	41,8	36,1	122,0	78,1	124,9

The Group achieved a profit before tax in Q3 2021 of NOK 53.4 million, compared to NOK 46.2 million for the same period in 2020. Profit before tax in the nine first months of 2021 was NOK 156.0 million, compared to NOK 100.4 million in the nine first months of 2020. The operating profit for Q3 2021 was NOK 55.6 million, compared to NOK 50.9 million for the same period in 2020. The operating profit for the nine first months of 2021 was NOK 160.9 million, compared to NOK 134.5 million for the nine first months of 2020.

The operating profit in Q3 2021 is higher for the Beams segment compared to the same period in 2020. The Panels segment and Windows segment have lower operating profit, while the Lighting segment is on the same level.

The Group's sales revenues in Q3 2021 amounted to NOK 546.0 million, which is NOK 64.4 million higher than for the same period in 2020. The trend in sales revenue in Q3 2021 is positive in all segments compared to the same period in 2020, except for the Windows segment that has some lower sales revenues. In the nine first months of 2021, sales revenues were NOK 1,712.4 million, compared to NOK 1,504.4 million in the nine first months of 2020.

Masonite Beams Sustainability Report: https://www.masonitebeams.se/media/7358/masonite-beams-haallbarhetsrapport-2021_digital.pdf

Net financial expenses in the nine first months of 2021 amounted to NOK 4.8 million, which is an improvement of NOK 29.3 million compared to the same period in 2020. The main reason for the reduction in net financial expenses is the gain on the market value of the interest rate swap in the nine first months of 2021 of NOK 10.5 million, compared with the loss of NOK 19.1 million in the nine first months of 2020. Net interest expenses (incl. payment for interest rate swaps) amounted to NOK 14.5 million in the nine first months of 2021, which is

NOK 0.6 million higher than for the same period in 2020. Of the interest expenses of NOK 14.5 million, interest on lease obligations amounted to NOK 3.0 million, which is NOK 0.2 million lower than for the same period in 2020.

The liquidity reserve *) as of 30 September 2021 amounted to NOK 246.7 million, a decrease of NOK 549.9 million from 1 January 2021 and a decrease of NOK 491.6 million from 30 September 2020. Paid dividend of NOK 558.6 million explains the lion's share of the decrease. The Board of Directors will maintain its focus on capital and cost-efficiency.

Interest-bearing debt *) increased from NOK 597.0 million as of 1 January 2021 to NOK 644.6 million as of 30 September 2021. In 2021, long-term debt increased by NOK 45.7 million, of which NOK 7.2 million are due to new lease agreements.

Investments made in tangible fixed assets and intangible assets year to date of 2021 totalled NOK 70.2 million, which is NOK 30.9 million higher than in the same period in 2020. Of the investments made, capitalised lease agreements amounted to NOK 7.2 million.

Total assets decreased from NOK 2,131.9 as of 1 January 2021 to MNOK 1,757.9 as of 30 September 2021.

Booked equity as of 30 September 2021 was NOK 548.8 million (31.2%), which is a decrease of NOK 441.4 million compared to 1 January 2021 (46.4%). The reasons for the change in equity are due to the year-to-date result of NOK 122.0 million, dividend payment of NOK 558.6 million and a negative conversion difference of NOK 4.6 million.

*) Definition of EBITDA, liquidity reserve and interest-bearing debt are added after the notes.

Sales revenues

Operating profit

PANELS

	Q3 2021	Q3 2020	YTD 2021	YTD 2020	2020
Sales revenues	358,5	324,2	1 189,4	1 076,8	1 449,8
Operating profit	30,1	37,7	120,9	120,4	163,4

THE PANELS SEGMENT consists of the companies Huntonit AS, Forestia AS, AS Byggform and Smartpanel AS with subsidiaries. The Masonite part of Forestia AS was demerged in 2020 to its own company, Masonite Beams AS. This company, together with the Masonite part of Huntonit AS, has been included in the Beams segment, and the figures for Panels and Beams have therefore been adjusted.

In Q3 2021, the Panels segment achieved higher sales revenues compared with the same period in 2020, while the operating profit achieved was lower. The segment is experiencing increased raw material- and energy costs and price increases have been implemented on our products with effect from 1 October 2021. Demand for products in the panels segment is very high.

The Board of Directors is very satisfied with the development in sales Q3 2021, but the operating profit is lower due to increased raw material- and energy costs. Management has a continuous focus on improvements, including trends in sales and costs.

FORESTIA WALLS2PAINT SMARTPANEL PERLE SKAGEN

BEAMS

	Q3 2021	Q3 2020	YTD 2021	YTD 2020	2020
Sales revenues	108,5	76,1	293,4	207,8	293,4
Operating profit	21,9	5,8	38,9	17,9	25,5

THE BEAMS SEGMENT consists of the companies Masonite Beams AB, Masonite Fastighet AB, and Grammaholmen Fastighets AB. In addition, the segment consists of Masonite Beams AS, which was demerged in 2020 from Forestia AS in the Panels segment, as well as the Masonite part of Huntonit AS. The figures for the Panels and Beams segments are adjusted a result of these reorganisations.

Beams have grown in all markets, and we are experiencing greater acceptance for I-Beams as a construction material.

Sales revenues and operating profit for Q3 2021 are higher than for the corresponding period in 2020.

The Board of Directors is very satisfied with the sales and results for the segment in Q3 2021. The Management and Board of Directors are firmly focused on boosting sales and enhancing levels of profitability.

MASONITE HEAD OFFICE IN SWEDEN LADEBYHAGEN IN TRONDHEIM

WINDOWS

	Q3 2021	Q3 2020	YTD 2021	YTD 2020	2020
Sales revenues	51,9	56,0	159,4	158,9	214,0
Operating profit	2,8	4,6	8,1	0,7	5,9

THE WINDOWS SEGMENT consists of the companies Uldal AS and Birkeland Eiendom AS.

In Q3 2021, the Windows segment achieved lower sales revenues and operating profit compared with the corresponding period in 2020. The Windows segment is still facing intense competition and pricing pressure in the market.

Investments previously made with regards to the factory are now having a major effect on ensuring shorter delivery times, and we are experiencing heavy demand for windows.

Investments in production equipment for sliding doors enables the company to produce sliding doors itself cost-efficiently, instead of buying them at high prices as goods for resale.

The Board of Directors is satisfied with the sales and operating profit in Q3 2021. Management will continue to focus on sales and cost trends.

DETACHED HOUSE WITH ULDAL SLIDING DOOR AND WOODEN WINDOWS SLIDING DOOR, FIXED FRAME AND TOP SWING WINDOWS IN KOPERVIK, ON KARMØY

LIGHTING

	Q3 2021	Q3 2020	YTD 2021	YTD 2020	2020
Sales revenues	27,1	25,3	70,1	60,9	95,2
Operating profit	2,6	2,6	0,9	(0,5)	5,1

THE LIGHTING SEGMENT consists of the companies Aneta Lighting AS, Scan Lamps VTA AS in Norway and Aneta Lighting AB in Sweden. In Q3 2021, Scan-Lamps AS has changed name to Aneta Lighting AS and Aneta Belysning AB has changed name to Aneta Lighting AB.

In Q3 2021 Lighting achieved higher sales revenues, while operating profit was on the same level compared with the corresponding period in 2020.

The Board of Directors is satisfied with the sales and operating profit in Q3 2021. Management is firmly focused on implementing measures to improve profitability

LIGHTING FROM ANETA LIGHTING FROM ANETA

SUSTAINABILITY - ESG

Forests bind significant amounts of carbon and at Byggma the good management of this resource is all about creating high quality products that store carbon for many decades. In several of our operations, the contributions to carbon storage significantly outweigh the carbon footprint from our operations.

At Byggma, we have a tradition of working on productivity and continuous improvement. Sustainability is in many ways a progression of this work. In terms of sustainability and through the involvement of a committed team of employees and partners, Byggma will continue to implement efficient use of resources, while also securing jobs and ensuring the future of a company that is committed to creating value for society.

The following are some of the projects developed in Q3 2021.

HUNTONIT

Q3 2021 Q3 2020 YTD 2021 YTD 2020 2020

Sales revenues 27,1 25,3 70,1 60,9 95,2 Operating profit 2,6 2,6 0,9 (0,5) 5,1

Productivity increases in the core material manufacturing process

In June 2020 one of the four cylinders on one of the pressing machines broke down. The board decided to purchase four new cylinders. Simultaneously, we decided to perform necessary adjustments on the pressing machines to achieve a productivity increase of 6% in the process unit that manufactures the core material used in the panels.

The whole pressing machine was lifted through the roof by a large mobile crane. The picture shows the upper piece of the pressing machine, which weighs over 20 tonnes.

During the summer and autumn of 2021, a solid effort has been put down related to the disassembly and preparation of the pressing machine to achieve the productivity increase. Over 200 tonnes of parts and equipment has been disassembled and renovated.

The pressing machine have been put into operation this autumn and we are now operating on a higher tact and increased capacity. In addition to these improvements, the energy used per produced amount is lower.

New cylinders are being lifted back in. Installers and technicians are installing gaskets on the pressing machines.

SUSTAINABILITY - ESG ¹⁴

Heat recycling in the multi floor pressing machines In relation to the maintenance and productivity increase, we executed a project on recycling of waste heat from the multi floor pressing machines. The picture shows one of the measures performed which involves insulation of the steam pipes which runs onto the heat boards in the pressing machine.

The effect of the insulation shows in the picture below that is taken with an infrared camera of non-insulated and insulated pipes. The surface temperature on insulated pipes are 48 degrees Celsius. On non-insulated pipes the surface temperature reaches 220 degrees Celsius.

Expected savings on this project alone is over 2 GWh per year on today's production plan.

MASONITE BEAMS

Masonite Beams Sustainability Report

Masonite Beams have prepared its own sustainability report which is based on the Group's strategy. The report is available on the company's web page, and is more thorough on the beam business and how we are working with reducing our footprint on the environment from this part of our business.

Masonite Beams is participating in an exciting project regarding the development of new and forwardlooking building systems. The project is called "The design of the future – the reuse of wood-based buildings in a circular economy". The idea of the project is that one shall, with a base in concept studies, develop and display examples of demountable and

reusable triangle constructions that can be part of a circular value chain. The project is planned to finish during the autumn 2023.

Masonite Beams' I-beam construction system uses up to 47% less raw materials compared to traditional wood-based constructions systems with solid beams.

FORESTIA

Treatment plant for recycling of waste wood In Forestia we are working on a project where we can clean waste wood from demolition and recycle it to saw dust of industrial quality and reuse it as raw material in new products, e.g. woodchip panels. As the project depends on economic aid from the state in order to be economically sustainable, we have for some time suggested for the politicians how the state aid rules ("Statsstøtteregelverket") can be applied to establish smart solutions for the climate in the way we see in our neighbouring countries. Therefore, we are happy to see that the new government in Norway has implemented this in its government plan ("Regjeringsplatform"). On page 20 in the government's new plan of action, «Hurdalsplatformen», it says:

"Facilitate the construction of a new plant for recycling of waste wood to enable the material to be reused in new industrial products to increase employment and value creation." (Translated from Norwegian).

This is a positive signal for Forestia's planned plant for reception and cleaning of wood waste, but it depends on the state aid apparatus ("Virkemiddelapparatet") to be entitled frame conditions/mandate in order for the project to be granted state aid. Consequently, we are curious and exited to see how this will be handled in the state budget for next year and whether the state aid apparatus will be granted capital to announce a relevant program.

In Forestia we have our own plan of action for activities related to sustainability in the company. In this quarter, there have been activities on many areas that we wish to mention:

• At the plant we are now testing whether we can reduce or remove the application of ammonia. The trials look promising, but we need to perform more tests in order to verify the results.
• An LCA study from 2020 is the foundation for our EPDs. Based on this there are implemented several improvements in our supply chain and production process.
• We are phasing out the use of perforator control of formaldehyde and are changing to gas analysis. This will free up space, and additionally, we can eliminate the use of toluene.
• Out of environment considerations we are working on phasing out PVC based foil which has been applied on some foiled products. Sales/Marketing are now working towards our customers to offer replacement products with PP foil.
• Sustainability is now included in our product development process. Consequently, this will be an important part in all our development projects.

The Covid-19 pandemic has had only limited consequences for Byggma as of Q3 2021. The inflow of orders is good, and production at the factories and deliveries to customers are generally going as planned. Group management and management of the individual subsidiaries are following the situation closely and have taken measures to limit any negative consequences, which the outbreak may have for employees and operations. If building materials outlets close and construction projects stop, this may have an impact on Byggma. Furthermore, restrictions any countries may make on retail trade could have an impact on access to input factors in production and sales revenues from these countries. The availability of input factors to production is intact, and significant elements of the input factors come from Norway and Sweden.

The forecast for the sale of new housing in the Norwegian market shows a positive development of 15% in the nine first months compared with the same period in 2020. Commission of newbuilds has increased 7% for the same period. The largest growth is in the detached houses market, with a growth of over 21% in sales and 27% in commissioning, while small houses have seen a growth of 9% in commissioning and 6% in sales in the nine first months of 2021 compared to the same period in 2020. This is positive for the company, as this is an important arena. Sales in August/September shows a decrease of 23% compared to the same period in 2020. Commissioning has increased 7% for the same period. The decrease in sales in August/September can lead to lower activity towards the end of Q2 2022. The activity is expected to grow from a relatively low volume of around 23,000 new homes per year to around 26,000. We are still experiencing high activity in the renovation and extension market. This market is expected to maintain a high activity, on level with 2020. There is uncertainty connected to the steep price increase on timber and building materials.

The market development has meant that the input factors for several of the segments are considerably more expensive. Byggma has implemented price increases with effect from 1 October 2021.

Group management is continuously monitoring the situation in order to be able to implement cost reductions resulting from lower activity levels.

In order to ensure further growth, investment in the sale of the Group's products outside Norway is an important part of Byggma's strategy. We are still experiencing a high growth in demand for Byggma' s products outside Norway.

Innovation and technological development are vital components of the Group's growth strategy, driven by a forceful determination to invest in essential equipment and expertise to maintain its position as a leading player in the Nordic building materials market in the future. The Byggma Group is firmly focused on achieving efficiency, dominance, and profitability.

Byggma is well positioned for implementing its enhancement processes for maintaining its position as a leading, efficient producer of building products. Several major investments have been made to streamline our processes. New investments in equipment have also been decided and this will enable greater efficiency. In principle, Byggma will be directing its investments toward digitisation and automation of the production processes, including the environment and sustainability.

It is an important part of Byggma's strategy to strengthen its position as a leading original brand manufacturer of environmentally friendly and sustainable products in the Nordic building materials market.

Byggma Group aims to be an attractive employer. We will continue to focus on ensuring that all employees in the Group have the opportunity to realise their human potential through their employment at Byggma.

Vennesla 4 November 2021

CONSOLIDATED STATEMENT OF PROFIT AND LOSS – GROUP (NOK million)

		IFRS	IFRS	IFRS	IFRS	IFRS
	Note no.	Q3 2021	Q3 2020	YTD 2021	YTD 2020	2020
Sales revenues	11	546,0	481,6	1 712,4	1504,4	2052,4
Other operating revenues		5,1	2,9	16,7	18,4	23,1
Cost of goods and manufacturing costs		-297,4	-249,9	-901,0	-770,4	-954,9
Payroll expenses		-95,8	-89,2	-347,6	-315,1	-439,4
Depreciation and write-downs	2	-20,6	-19,3	-60,9	-57,4	-77,1
Freight and complaints costs		-38,4	-37,3	-127,1	-118,0	-162,8
Marketing costs		-16,2	-14,4	-51,2	-50,5	-92,7
Other losses/gains	6	0,0	0,8	0,7	2,9	0,7
Other operating costs		-27,1	-24,2	-81,1	-79,8	-156,7
Operating profit/loss	11	55,6	50,9	160,9	134,5	192,6
Net financial expenses	3	-2,1	-4,8	-4,8	-34,1	-32,8
Profit/loss before tax		53,4	46,2	156,0	100,4	159,7
Tax expenses	5	-11,6	-10,1	-34,0	-22,2	-34,8
Profit/loss		41,8	36,1	122,0	78,1	124,9
Total comprehensive income
Profit/loss		41,8	36,1	122,0	78,1	124,9
Conversion differences		-2,2	1,3	-4,9	10,2	11,0
Total profit for the period/year		39,6	37,4	117,2	88,3	135,9
Allocated to
Shareholders		39,6	37,4	117,2	88,3	135,9
Minority interests		0,0	0,0	0,0	0,0	0,0
		39,6	37,4	117,2	88,3	135,9
Earnings per share (NOK per share):
Earnings per share allocated to the company's shareholders		0,60	0,52	1,75	1,12	1,79
Diluted earnings per share allocated to the company's shareholders		0,60	0,52	1,75	1,12	1,79
EBITDA per share		1,09	1,01	3,18	2,75	3,86

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (NOK million)

		IFRS	IFRS	IFRS
	Note no.	30 september 2021	30 september 2020	2020
ASSETS
Non-currents assets
Tangible fixed assets	2	937,9	929,4	931,8
Intangible assets	2	22,5	26,4	25,0
Deferred tax assets	5	4,4	9,6	6,9
Long-term financial derivatives	6	0,0	0,0	0,0
Other long-term receivables		0,5	0,5	0,2
Total non-current assets		965,3	965,9	963,9
Current assets
Inventories		322,0	262,1	263,5
Customer and other short-term receivables		436,3	358,9	379,3
Short-term financial derivatives	6	0,0	0,0	0,0
Cash and cash equivalents		34,3	460,1	525,2
Total current assets		792,6	1 081,1	1 168,0
Total assets		1 757,9	2 046,9	2 131,9
EQUITY
Shareholder's equity
Share capital and share premium	4	52,7	52,7	52,7
Other equity not recognised in P&L		12,0	16,1	16,9
Retained earnings		484,1	873,9	920,7
Total equity		548,8	942,6	990,2
LIABILITIES
Non-current liabilities
Long-term loans	10	445,1	497,0	452,8
Long-term financial derivatives	6	0,7	16,1	9,7
Deferred tax	5	90,5	84,3	89,9
Total non-current liabilities		536,3	597,4	552,4
Current liabilities
Trade payables and other current liabilities		443,3	393,5	409,1
Tax payable	5	29,4	0,0	33,0
Short-term loans	10	199,4	109,8	144,2
Short-term financial derivatives	6	0,6	3,5	2,9
Total current liabilities		672,9	506,9	589,3
Total liabilities		1 209,1	1 104,3	1 141,7
TOTAL EQUITY AND LIABILITIES		1 757,9	2 046,9	2 131,9
Of which interest-bearing debt (long-term and short-term)		644,6	606,9	597,0

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (NOK million)

		Equity allocated to the company's shareholders
	Note no.	Share capital and share premium	Other equity not recognised in P&L	Retained earnings	TOTAL
At 31 December 2019		52,7	5,9	802,9	861,4
Translation effects		0,0	10,2	0,0	10,2
Profit of the period		0,0	0,0	78,1	78,1
Purchase of own shares	4	0,0	0,0	-0,1	-0,1
Dividend		0,0	0,0	-7,0	-7,0
At 30 September 2020		52,7	16,1	873,8	942,6
Translation effects		0,0	0,8	0,0	0,8
Profit of the period		0,0	0,0	46,8	46,8
Purchase of own shares	4	0,0	0,0	0,0	0,0
Dividend		0,0	0,0	0,0	0,0
At 31 December 2020		52,7	16,9	920,7	990,2
Translation effects		0,0	-4,9	0,0	-4,9
Profit of the period		0,0	0,0	122,0	122,0
Purchase of own shares	4	0,0	0,0	0,0	0,0
Dividend		0,0	0,0	-558,6	-558,6
At 30 September 2021		52,7	12,0	484,1	548,8

CONSOLIDATED PROFIT/LOSS BEFORE TAX PER QUARTER (NOK million)

	IFRS 2021	IFRS 2020	IFRS 2019	IFRS 2018	IFRS 2017
Profit/loss for Q1	53,6	26,2	31,9	5,9	16,3
Profit/loss for Q2	49,0	28,0	-7,9	-0,3	10,5
Profit/loss for Q3	53,4	46,2	20,3	18,5	29,1
Profit/loss for Q4		59,4	17,7	31,9	28,4
SUM	156,0	159,7	62,0	55,9	84,4

CONSOLIDATED STATEMENT OF CASH FLOWS (NOK million)

	Note no.	IFRS YTD 2021	IFRS YTD 2020	IFRS 2020
Cash flow from operations
Cash flow from operations		69,1	99,8	230,2
Interest paid		-16,4	-18,3	-24,1
Interest received		2,1	3,9	5,2
Taxes paid		-4,8	-3,5	-4,2
Net cash flow from operations		50,0	81,9	207,1
Cash flow from investment activities
Purchase of tangible fixed assets	2	-69,0	-37,2	-59,1
Sale of tangible fixed assets		0,1	0,7	0,0
Purchase of intangible assets	2	-1,3	-2,2	-2,1
Loans granted to related parties		39,0	1,9	-27,2
Net cash flow used for investment activities		-31,2	-36,7	-87,4
Cash flow from financing activities
Purchase of own shares	4	0,0	-0,1	-0,1
Adjustment of overdraft facility		55,4	-4,4	-3,4
Uptake of loans		45,7	144,2	150,2
Repayment of loans		-49,6	-45,8	-62,0
Dividends paid to the company's shareholders		-558,6	-7,0	-7,0
Net cash flow used for financing activities		-507,1	87,0	77,7
Adjustment to cash, cash equivalents		-488,2	132,2	197,4
Cash and cash equivalents as per 1 January		525,2	322,6	322,6
Effect of exchange rate gains/(loss) on cash and cash equivalents		-2,7	5,3	5,2
Cash and cash equivalents at the end of the period		34,3	460,1	525,2
This consists of:
Bank deposits and similar		23,1	449,8	509,2
Tax deduction account		11,2	10,2	16,1
Cash and cash equivalents at the end of the period		34,3	460,1	525,2
Unused overdraft facility/drawing rights		223,7	288,4	287,5

NOTE 1

GENERAL INFORMATION

Byggma ASA is domiciled in Norway. The head office is in Vennesla. Byggma ASA is listed on the Oslo Stock Exchange. The Group's main area of business is the production and sale of building products to the Scandinavian and Northern European markets. In Norway, the products are sold through our own nationwide sales apparatus; abroad, sales work is handled partly by subsidiaries and partly by distributors. The product range is mainly produced by the group's seven production units. These production units are located in Norway and Sweden. In addition to products produced within the Group, Byggma ASA also sells products for resale.

Byggma Group reports in accordance with International Financial Reporting Standards (IFRS). This quarterly report has been prepared in accordance with IFRS Standard for interim reporting (IAS34). The report should be viewed in conjunction with the annual report for 2020 and with reference to the accounting policies specified therein. The quarterly figures have not been revised.

NOTE 2 TANGIBLE FIXED ASSETS AND INTANGIBLE ASSETS (NOK million)

	YTD 2021	YTD 2020	2020
Investments	70,2	39,3	61,2
Depreciations and write downs	60,9	57,4	77,1

NOTE 3

NET FINANCIAL ITEMS (NOK million)

	IFRS Q3 2021	IFRS Q3 2020	IFRS YTD 2021	IFRS YTD 2020	IFRS 2020
Change in market value, interest rate swap	3,4	0,3	10,5	-19,1	-13,3
Paid interest rate swap	-1,1	-1,0	-3,4	-1,6	-2,9
Interest expenses leasing agreements	-1,0	-1,1	-3,0	-3,2	-4,3
Net interest income/interest expenses	-3,2	-2,7	-8,1	-9,1	-11,1
Other financial expenses	-0,2	-0,3	-0,8	-1,0	-1,2
Net financial expenses	-2,1	-4,8	-4,8	-34,1	-32,9

NOTE 4

SHARE CAPITAL (NOK millIion)

	Number of shares (in thousands)	Ordinary shares	Share premium	Own shares	Sum
At 31 desember 2019	6 983	18,3	34,5	-0,1	52,7
At 30 september 2020	6 983	18,3	34,5	-0,1	52,7
Write-downs, share capital	0	-0,1	0,0	0,1	0,0
Purchase of own shares	-1	0,0	0,0	0,0	0,0
At 31 December 2020	6 982	18,2	34,5	0,0	52,7
Write-downs, share capital	0	0,0	0,0	0,0	0,0
Stock split 1:10	62 837	0,0	0,0	0,0	0,0
At 30 September 2021	69 819	18,2	34,5	0,0	52,7

NOTE 5

TAX DESCRIPTION

For the full year, we refer to the tax note and accounting principles in the annual accounts, while for the interim accounts we use nominal tax rates per company per country. Deferred tax/deferred tax assets are based on the tax rate in the relevant countries.

NOTE 6

DERIVATIVE FINANCIAL INSTRUMENTS (NOK million)

	30 September 2021	30 September 2020	31 December 2020
Assets
Interest rate swaps - (long-term)	0,0	0,0	0,0
Interest rate swaps - (short-term)	0,0	0,0	0,0
Forward exchange contracts - (short-term)	0,0	0,0	0,0
Total financial derivatives - assets	0,0	0,0	0,0
Liabilities
Interest rate swaps - (long-term)	0,7	16,1	9,7
Interest rate swaps - (short-term)	0,6	1,6	2,2
Forward exchange contracts - (short-term)	0,0	2,0	0,8
Total derivative financial instruments - liabilities	1,3	19,6	12,6

NOTE 7

CONTINGENCIES

Provisions made in the accounts based on contingent events after the balance sheet date are insignificant.

NOTE 8

RELATED PARTIES

CEO Geir Drangsland and related parties as at 04.11.2021 control 88.70% of the share capital in Byggma ASA. The agreement that the Group CEO has entered into with Scanel AS is controlled by Geir Drangsland.

NOTE 9

HENDELSER ETTER BALANSEDAGEN

There are no material subsequent events after the balance sheet date of this report.

NOTE 10

LOANS (NOK million)

	30 September 2021	30 September 2020	31 December 2020
Long-term loans
Bank loans	361,5	405,7	360,8
Lease liabilities	83,6	91,4	92,0
Total long-term loans	445,1	497,0	452,8
Short-term loans
Overdraft facility	56,3	0,0	1,0
Bank loans	123,9	92,5	125,2
Lease liabilities	19,1	17,3	18,1
Total short-term loans	199,4	109,8	144,2
Total loans	644,5	606,9	597,0

NOTE 11

SEGMENT INFORMATION (NOK million)

NET SALES REVENUES

	IFRS Q3 2021	IFRS Q3 2020	IFRS YTD 2021	IFRS YTD 2020	IFRS 2020
Panel sales to external customers	358,5	324,2	1 189,4	1 076,8	1 449,9
Beam sales to external customers	108,5	76,1	293,4	207,8	293,4
Window sales to external customers	51,9	56,0	159,4	158,9	214,0
Lighting sales to external customers	27,1	25,3	70,1	60,9	95,2
NET SALES REVENUES FOR THE GROUP	546,0	481,6	1 712,4	1 504,4	2 052,4

OPERATING PROFIT

	IFRS Q3 2021	IFRS Q3 2020	IFRS YTD 2021	IFRS YTD 2020	IFRS 2020
Panels	30,1	37,7	120,9	120,4	163,4
Beams	21,9	5,8	38,9	17,9	25,5
Windows	2,8	4,6	8,1	0,7	5,9
Lighting	2,6	2,6	0,9	-0,5	5,1
Byggma joint/eliminations	-1,8	0,2	-7,9	-4,1	-7,4
OPERATING PROFIT FOR THE GROUP	55,6	50,9	160,9	134,5	192,6

NOTE 11 - CONTINUES

NET SALES REVENUES BY COUNTRY

	IFRS Q3 2021	IFRS Q3 2020	IFRS YTD 2021	IFRS YTD 2020	IFRS 2020
Norway	359,7	313,3	1 123,9	987,5	1 366,9
United Kingdom	11,9	12,9	34,4	28,3	44,9
Sweden	106,0	103,4	329,3	309,5	408,0
Finland	4,4	4,1	11,3	11,1	15,6
Denmark	20,4	16,3	66,4	58,2	71,6
The Netherlands	19,0	14,6	64,0	54,6	71,4
Other	24,8	16,9	83,0	55,2	74,0
NET SALES REVENUES FOR THE GROUP	546,0	481,6	1 712,4	1 504,4	2 052,4

DEFINITIONS

Key firgures	Definition
EBITDA	Operating profit/loss + depreciation
Liquidity reserve	Bank deposits (ex. Tax deduction account) + unused overdraft facilties
Interest bearing debt	Interest bearing loans + leasing obligations + bank overdrafts

Byggma ASA currently owns approximately 149,000 m2 of building stock. A significant portion of Byggma's assets consists of buildings and factories. Ownership entails accountability. We place strict demands on ourselves when it comes to managing buildings - both in maintaining the values the buildings represent and to preserving in the best possible condition.

The Byggma Group will take good care of all of its properties and their premises at present and in the future.

HUNTONIT EIENDOM AS

PRODUCTION FACILITIES:	19,664 m2
STORAGE CAPACITY:	8,100 m2
OFFICES:	1,430 m2
SITE AREA OWNED:	78,112 m2
FLOOR AREA:	30,171 m2
YEAR OF CONSTRUCTION:	1948–1988
MUNICIPALITY: Vennesla, Norway

FORESTIA AS KVAM PRODUCTION FACILITIES: 7,205 m2 STORAGE CAPACITY: 1,714 m2 OFFICES: 207 m2 SITE AREA - OWNED: 32,728 m2 FLOOR AREA: 9,126 m2 YEAR OF CONSTRUCTION: 1967 MUNICIPALITY: Nord-Fron, Norway

FORESTIA EIENDOM AS

PRODUCTION FACILITIES:	21,079 m2
STORAGE CAPACITY:	18,655 m2
OFFICES:	3,961 m2
SITE AREA - OWNED:	321,460 m2
FLOOR AREA:	43,695 m2
YEAR OF CONSTRUCTION:	1969 - 1987
	and 1997

MUNICIPALITY: Våler, Norway

MASONITE FASTIGHET AB

PRODUCTION AND WAREHOUSE SITE 38,107 m2
OFFICES:	1,600 m2
SITE AREA - OWNED:	187,585 m2
FLOOR AREA:	39,707 m2
YEAR OF CONSTRUCTION:	1921–2017
MUNICIPALITY: Nordmaling, Sweden

BIRKELAND EIENDOM AS PRODUCTION FACILITIES: 4,930 m2 STORAGE CAPACITY: 2,662 m2 OFFICES: 460 m2 SITE AREA - OWNED: 15,100 m2 FLOOR AREA: 8,052 m2 YEAR OF CONSTRUCTION: 1967–1991 MUNICIPALITY: Birkenes, Norway

BYGGMA EIENDOM LYNGDAL AS

PRODUCTION AND WAREHOUSE SITE 16,397 m2
OFFICES:	1,666 m2
SITE AREA - OWNED:	37,377 m2
FLOOR AREA:	18,063 m2
YEAR OF CONSTRUCTION:	2007 and 2017
MUNICIPALITY: Lyngdal, Norway

CONTACT DETAILS

HUNTONIT AS

PO Box 21 4701 Vennesla Tel. +47 38 13 71 00 E-mail: huntonit.kundesenter@byggma.no Company registration no.: 914 801 958 www.huntonit.com

FORESTIA AS

Braskereidfoss 2435 Braskereidfoss Tel. +47 62 42 82 00 Email: forestia@byggma.no Company registration no.: 981 393 961 www.forestia.com

SMARTPANEL AS

Habornveien 50 Habornveien 50, 1630 Gamle Fredrikstad, Norway Tel. +47 69 92 19 20 Email: kundeservice.Smartpanel@byggma.no Company registration no.: 921 075 197 www.smartpanel.no

AS BYGGFORM Eternittveien 8 3470 Slemmestad Tel. +47 31 28 92 70 Email: post@byggform.no Company registration no.: 952 415 603 www.byggform.no

ULDAL AS PO Box 98 4795 Birkeland Tel. +47 38 13 71 00 Email: uldal.birkeland@byggma.no Company registration no.: 947 895 788 www.uldal.no

MASONITE BEAMS AS Håndverkergata 3 8610 Mo i Rana Tel. +47 62 42 82 00 Email: masonite.post@masonitebeams.no Company registration no.: 925 357 065 www.masonite-beams.com

MASONITE BEAMS AB Box 5 914 29 Rundvik – Sweden Tel. +46 (0)930 142 00 Email: masonite@byggmagroup.se Company registration no.: 556288-8060 www.masonite-beams.com

ANETA LIGHTING AB Lagergatan 3 Box 3064 350 33 VÄXJÖ – Sweden Tel. +46 (0)470 778400 Email info@aneta.se Company registration no.: 556291-0264 www.aneta.se

ANETA LIGHTING AS

Tel. +47 38 13 71 00 Email ordre.belysning@byggma.no Company registration no.: 953 832 488 www.aneta.no

27

Byggma ASA

Postboks 21, 4701 Vennesla Tel. +47 38 13 71 00 Email byggma@byggma.no Company registration no. 979 165 285

www.byggma.com