Byggma ASA — Interim / Quarterly Report 2021

Sep 13, 2021

INTERIM REPORT Q2 2021

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

Introduction	3
Highlights	4
A word from the CEO	5
Key figures for the Group	7
Segment information	9
Sustainability ESG 13
Future prospects 17
Consolidated financial statements for first half of 2021 18
Notes to the consolidated financial statements 22
Declaration from the Board of Directors 25
Real estate overview 26
Contact details and subsidiaries 27

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, Scan Lamps AS and Aneta Belysning 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, Scan Lamps AS and Aneta Belysning 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 Q2 2021 improved from MNOK 490.6 in Q2 2020 to MNOK 606.6, corresponding to an increase of 23.6%. So far this year, sales revenue has increased from MNOK 1,022.8 to MNOK 1,166.4, corresponding to an increase of 14.0%. Profit before tax increased from MNOK 28.0 in Q2 2020 to MNOK 49.0 in Q2 2021. Profit before tax improved from MNOK 54.2 in H1 2020 to MNOK 102.6 in H1 2021.

Dividends paid in Q2 2021

Dividends of MNOK 558.6 were paid from Byggma ASA to shareholders in Q2 2021.

Progress at Uldal

Uldal increased its operating profit from MNOK 2.9 in Q2 2020 to MNOK 6.5 in Q2 2021. So far this year, operating profit improved from MNOK (3.9) as in H1 2020 to MNOK 5.3 as in H1 2021.

Progress at Masonite Beams

Masonite Beams increased its operating profit from MNOK 6.4 in Q2 2020 to MNOK 9.8 in Q2 2021. So far this year, operating profit has improved from MNOK 12.1 as in H1 2020 to MNOK 16.9 as in H1 2021.

Sustainabilty

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 dynamic sales growth in the coming years.

Pro Wall

In autumn 2020, Huntonit AS launched Huntonit Proff Vegg. The product has been well received and we expect dynamic growth in the coming years.

Results

The Byggma Group continued to advance in Q2 2021. So far this year, sales have increased from MNOK 1,022.8 in H1 2020 to MNOK 1,166.4 in H1 2021.

Profit before tax increased from MNOK 54.2 in H1 2020 to MNOK 102.6 in H1 2021. Dividends of MNOK 588.6 were paid from Byggma ASA to shareholders in Q2 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 hard hit by the pandemic and not take our progress for granted.

Needless to say, 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 bind 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 Q2.

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 MNOK 250, but will be dependent on public investment support in order to be realised.

Although the apparatus that could effect 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 realising the industrial opportunity that is offering, which would create new green jobs in Norway. To further clarify this, we have now established Forestia Carbon Sink, which will be responsible for cleansing demolition wood and transforming this into a complete, stand-alone industrial raw material.

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

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.

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

KEY FIGURES

	Q2 2021	Q2 2020	H1 2021	H1 2020	2020
Sales revenues	606.6	490.6	1166.4	1022.8	2052.4
EBITDA *)	74.6	55.1	145.5	121.7	269.6
Operating profit/loss	54.3	35.9	105.3	83.6	192.6
Net financial items	(5.3)	(7.9)	(2.7)	(29.4)	(32.9)
Profit before tax	49.0	28.0	102.6	54.2	159.7
Taxes	(10.9)	(6.4)	(22.4)	(12.1)	(34.8)
Profit after tax	38.1	21.6	80.2	42.1	124.9

The Group achieved a profit before tax in Q2 2021 of MNOK 49.0, compared to MNOK 28.0 for the same period in 2020. Profit before tax in the first half of 2021 was MNOK 102.6, compared to MNOK 54.2 in the first half of 2020. The operating profit for Q2 2021 was MNOK 54.3, compared to MNOK 35.9 for the same period in 2020. The operating profit for the first half of 2021 was MNOK 105.3, compared to MNOK 83.6 for the first half of 2020.

Trends in operating profit in Q2 2021 are higher in all segments compared to the same period in 2020, apart form the Lighting segment, which has seen slightly lower operating profit.

Byggma Group's sales revenues in Q2 2021 amounted to MNOK 606.6, which is MNOK 116.0 higher than for the same period in 2020. The trend in sales revenue in Q2 2021 is positive in all segments compared to the same period in 2020. In 2021 the Easter period was in Q1, while in 2020 it was in Q2. Thus, this has a separate consequence for the comparison of the quarters of the previous year. In the first half of 2021, sales revenues were MNOK 1,166.4, compared to MNOK 1,022.8 in the first half of 2020.

Net financial expenses in the first half of 2021 amounted to MNOK 2.7, which is an improvement of MNOK 26.7 on 2020. The main reason for the reduction in net financial expenses is the recognition of the change in the market value of the interest rate swap in the first half of 2021 of MNOK 7.1, compared with the recognition of expenses of MNOK 19.4 in the first half of 2020. Net interest expenses (incl. paid for interest rate swaps) amount to MNOK 9.2 in the first half of 2021, which is the same level as in 2020.

Of the interest expenses of MNOK 9.2, interest on lease commitments amounts to MNOK 2.0, which is MNOK 0.2 lower than in 2020.

The liquidity reserve *) as at 30.06.2021 amounted to MNOK 245.4 million, a decrease of MNOK 551.2 from 1.1.2020 and a decrease of MNOK 465.1 from 30.06.2020. Dividends altogether totalling MNOK 558.6 were paid in Q2 2021. The Board of Directors will maintain its focus on capital and cost-efficiency. Interest-bearing debt *) increased from MNOK 597.0 as at 1.1.2021 to MNOK 643.7 as at 30.06.2021. In 2021, long-term loan agreements of MNOK 27.2 were taken out, of which MNOK 6.2 are due to borrowing as a result of capitalised lease agreements.

Investments made in tangible fixed assets and intangible assets in the first half of 2021 totalled MNOK 41.0, which is MNOK 16.5 higher than in 2020. Of the investments made, capitalised lease agreements amounted to MNOK 6.2.

Total capital decreased from MNOK 2,131.9 as at 1.1.2021 to MNOK 1,720.0 as at 30.06.2021.

Book equity as at 30.06.2021 was MNOK 509.2 (29.6%), which is a decrease of MNOK 481.0 compared to 1.1.2021 (46.4%). The reasons for the change in equity are due to the annual result of MNOK 80.2, dividend payments of NOK 558.6 million and a negative translation difference of MNOK 2.6.

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

Sales revenues

PANELS

	Q2 2021	Q2 2020	H1 2021	H1 2020	2020
Sales revenues	419.2	356.4	830.9	752.7	1449.8
Operating profit/loss	44.7	30.1	90.8	82.7	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 Q2 2021, the Panels segment achieved higher sales revenues and operating income compared with the corresponding period in 2020. The segment is experiencing increased raw material costs and price

increases have been implemented with effect from 1 April 2021. Demand for products in the panels segment is very good.

The Board of Directors is very satisfied with the development in sales and results in Q2 2021. Management has a continuous focus on improvement projects, including trends in sales and costs.

WALL PANELS FROM HUNTONIT PLYWOOD FROM BYGGFORM

BEAMS

	Q2 2021	Q2 2020	H1 2021	H1 2020	2020
Sales revenues	102.9	64.4	184.9	131.6	293.4
Operating profit/loss	9.8	6.4	16.9	12.1	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 a result of these adjustments.

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

Sales revenues and operating profit for Q2 2021 are higher than for the corresponding period in 2020.

The Board of Directors is satisfied with the sales and results for the segment in Q2 2021. The Management and Board of Directors are firmly focused on boosting sales and enhancing levels of profitability.

MASONITE HEADQUARTERS IN SWEDEN I-BEAM USED IN READY-MADE ELEMENTS

WINDOWS

	Q2 2021	Q2 2020	H1 2021	H1 2020	2020
Sales revenues	66.4	56.6	107.5	102.9	214.0
Operating profit/loss	6.5	2.9	5.3	(3,9)	5.9

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

In Q2 2021, the Windows segment achieved higher sales revenues and operating profit compared with the corresponding period in 2020. The Windows segment is still facing intense competition and pricing pressure.

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

A total of MNOK 3 has been invested in a new sliding door factory at Uldal. Investing in production equipment for sliding doors means that the company can cost-effectively produce sliding doors itself, instead of buying them at high prices as goods for resale.

The Board of Directors is satisfied with the sales and operating profit in Q2 2021. Management will continue to focus on sales and cost trends.

TERRACED HOUSE WITH ULDAL WOOD-FRAMED WINDOWS THE TOWN HALL IN KRISTIANSAND

LIGHTING

	Q2 2021	Q2 2020	H1 2021	H1 2020	2020
Sales revenues	18.2	13.3	43.0	35.6	95.2
Operating profit/loss	(2.2)	(1.6)	(1.8)	(3.1)	5.1

THE LIGHTING SEGMENT consists of the companies Scan-Lamps AS, Scan Lamps VTA AS and Aneta Belysning AB.

In Q2 2021, Lighting achieved higher sales revenues, while operating profit was somewhat lower compared with the corresponding period in 2020.

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

LIGHTING FROM ANETA LIGHTING FROM ANETA

SUSTAINABILITY ESG (ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE)

Forests bind significant amounts of carbon and at Byggma the good management of this resource is all about creating worthy quality products that store carbon for many decades. In several of our operations, our 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. Work is currently underway in implementing activities within the area of sustainability in our subsidiaries. We have included some examples of this:

FORESTIA

In Byggma's sustainability report for 2020, we have described an exciting opportunity whereby we can use demolition wood as part of our panels or new woodbased products. This is a project that will demonstrate circular use of wood at national level and contribute to increased carbon storage in biogenic material.

The project has an investment framework of around MNOK 250 and is dependent on public investment to some extent, in order to be realised. The solutions have been examined and we are ready to make the investment. Even though we have received considerable political goodwill, the opportunities that lie within the means apparatus have so far not been released to lend support to this project.

The project provides the basis for new Norwegian industrial workplaces based on circular use of wood. The climate and social aspects of this are essential as part of the green transformation.

Our message is that the Norwegian apparatus that provides the wherewithal must be directed much more at also contributing investment support in the industry, the like of which we see employed used in our neighbouring countries.

We are highly motivated to realise this project, and to this end, we established Forestia Carbon Sink AS this summer in order to better highlight its potential. The name is inspired by the European Commission's focus on the importance of using wood/wood-based products as active carbon storages and thereby counteracting man-made climate change.

SUSTAINABILITY ESG (ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE)

Reduced use of raw materials

At the end of 2019/2020, we installed a new glue mixer at Forestia. This better distributes the glue when we mix it with tiles, providing better bonding and strength to the tiles. Based on this investment, the raw material consumption process in our panels undergoes continuous optimisation. As a result of this work, we are now seeing reduced glue and tile consumption of around 5% on average.

Throughout the summer, we completed several lesser and larger important maintenance and upgrade projects.

For several years, we have been actively working to reduce noise emissions to our neighbours. In 2020, we insulated a pipe for tile transport, which produced very good results. Furthermore this summer, we installed noise insulation around a filter system, which we expect to have a further positive effect.

Maintenance upgrade

In recent years, Forestia has chosen to invest in its maintenance. This not only boosts competency, it also facilitates recruitment of staff with the right skills.It will also appeal more to those seeking an apprenticeship.

We have equipped the maintenance workshop with machines so that we can machine and manufacture parts and components ourselves. In-house production has proven to extend service life, since we can strengthen and install more durable parts in places most prone to wear. At the same time, they are produced such that we can easily replace 'worn and torn' parts. Overall, this provides us with a maintenance department that is highly functional and operational, while also preventing and reducing unforeseen stoppages.

Photo: The new feedstock conveyor was produced at Forestia this summer, being installed during summer maintenance.

Photo: Screw for discharging cutter shavings produced in the maintenance department with a welding jig developed in-house.

HUNTONIT Eco-friendly packaging Huntonit

Huntonit has carried out transport tests and adapted production equipment, making it possible to use

SUSTAINABILITY ESG (ENVIRONMENTAL, SOCIAL AND CORPORATE GOVERNANCE)

cardboard packaging on the sides of the finished goods pallets. The new side panels will replace the current 11 mm wood fibrepanels, which will mean less weight per pallet and less waste on the construction site. The current solution involving plastic bandoleers around the pallet for marketing purposes will also be removed.

We will initially start off the conversion process with some of our 60x120 roofing products. The expected reduction in plastic consumption is initially 1.2 tonnes/ year and the expected reduction in weight for timber packaging is 130 tonnes/year.

More recycled dust in hardboard

For several years now, Huntonit has been working to increase the quality of incoming raw materials in line with the development of recipes adapted to the requirements made on the finished product. In recent years, we have been working to ensure a stable feed of recycled dust into our panels. Step 1 was to establish a silo facility to split the dust quality.

In the past year, we have worked on step 2, which has been to ensure a more stable feed of recycled dust into the panels. This has been achieved through improvements in existing silage discharge and close monitoring of the formula in production.

The result can be seen in the form of better control and a more even quality of core material, which has allowed us to increase the amount of recycled dust in our panels and thus reduce the amount of fuel briquettes burnt. We can also see the potential in increasing productivity in our process.

Treatment plant to safeguard against undesirable discharge into rivers

Huntonit has at times had problems with undesirable discharge into rivers. This applies particularly to surface water on asphalted areas with heavy traffic. A treatment plant has been installed to collect possible areas of discharge, which has improved the situation and given us better opportunity to clean the waste water before it enters the river. We are now in a phase of fine-tuning and optimising the plant.

SMARTPANEL Greenbizz

Smartpanel is part of a Greenbizz project which, supported by a PhD grant, will carry out a survey of the current environmental situation and then develop a green business model for the next three years with a view to increasing value creation, focusing on sustainability.

Conversion to district heating

It has been decided that incinerating grinding dust will be phased out and replaced by district heating. This is expected to be completed in summer 2022.

Use of MDF dust

Smartpanel is a partner in the project "EcoReFibre", an EU project aimed at finding better forms of usage of the waste from the wood industry – including MDF dust. EU funding is now being applied for in order to continue the project.

Bathroom panel

The production of bathroom panels and kitchen boards is now underway at Smartpanel. Kjernen (The core) is produced by Huntonit and is an environmentally friendly panel, produced using raw materials from Norwegian forests.

With these new products, we will gain increased use of consolidated shipments to our customers, potentially resulting in lower CO2 emissions on the roads.

MASONITE BEAMS Life Cycle Assessment (LCA) analysis

IVL (Swedish Environmental Research Institute) has been commissioned by us during the project; Developmental requirements unit for efficient construction conducted an LCA analysis with our products on a house model (6 storeys and a total of 22 apartments) compared to other building systems on the market.

The report concludes that the Masonite building system has the lowest environmental impact of all the systems they investigated in the study. In the study, they looked at seven different building systems, including ours poured concrete, concrete elements, CLT and construction timber. A press release has been issued and IVL has published an article and a link to the report on its website.

Masonite beams has produced their own sustainability report to further increase the focus on sustainability within the company.

The most important operational risks are linked to development in the Nordic building materials market in terms of volume and sales prices. In addition, the price development of input factors such as timber, energy and adhesives, are also important risk factors.

The financial risk mainly covers currency, interest rates and liquidity. The annual report for 2020 provides a full description of the risk ratio and risk management.

RISK RATIO RELATED PARTIES

Group CEO Geir Drangsland and closely related parties control 88.7% of the shares in Byggma ASA. The agreement that the Group CEO has entered into with Scanel AS is controlled by Geir Drangsland.

The Covid-19 pandemic has had only limited consequences for Byggma as at Q2 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 37% in Q2 compared with the same period in 2020 and up 23%. The largest growth is in detached houses, with a growth of over 39% in sales and 28% in commissioning, while small houses have seen a growth of 21% in commissioning and 42% in sales in the first half of 2021. This is positive for the company, as this is an important arena. The activity is expected to grow at a relatively low volume of around 23,000 new homes per year to around 25,000. The Renovation and Extension market is expected to maintain a high level, as per 2020.

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. April 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.

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 as a means 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 ahead in 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 work processes. New investments in equipment have also been adopted that will enable greater efficiency. In principle, Byggma will be directing its investments toward digitisation and automation of the production processes, including to 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.

A vision of the Byggma Group is to be an attractive employer. We will continue to focus on ensuring that all employees in the Group have the opportunity to realise their personal potential through their employment at Byggma.

CONSOLIDATED STATEMENT OF PROFIT AND LOSS – GROUP (NOK mill.)

		IFRS	IFRS	IFRS	IFRS	IFRS
	Note no.	Q2 2021	Q2 2020	H1 2021	H1 2020	2020
Sales revenues	11	606.6	490.6	1166.4	1022.8	2052.4
Other income		5.8	8.4	11.6	15.5	23.1
Goods and manufacturing costs		-316.2	-252.8	-603.6	-520.5	-954.9
Payroll expenses		-131.0	-112.1	-251.8	-225.9	-439.4
Depreciation and write-downs	2	-20.3	-19.2	-40.3	-38.1	-77.1
Freight and complaints costs		-44.9	-38.2	-88.7	-80.6	-162.8
Marketing costs		-18.8	-19.6	-35.0	-36.0	-92.7
Other losses/gains - net	6	2.0	4.6	0.7	2.1	0.7
Other operating costs		-29.1	-25.8	-54.1	-55.6	-156.7
Operating profit/loss	11	54.3	35.9	105.3	83.6	192.6
Net financial expenses	3	-5.3	-7.9	-2.7	-29.4	-32.8
Profit/loss before tax		49.0	28.0	102.6	54.2	159.7
Tax expenses	5	-10.9	-6.4	-22.4	-12.1	-34.8
Profit/loss		38.1	21.6	80.2	42.1	124.9
Total comprehensive income
Total profit/loss		38.1	21.6	80.2	42.1	124.9
Conversion differences		6.0	-0.2	-2.7	8.9	11.0
Total profit/loss for the year/period		44.1	21.4	77.5	50.9	135.9
Allocated to
Shareholders		44.1	21.4	77.5	50.9	135.9
Minority interests		0.0	0.0	0.0	0.0	0.0
		44.1	21.4	77.5	50.9	135.9
Earnings per share (NOK per share):
Earnings per share allocated to the company's shareholders		0.55	0.31	1.15	0.60	1.79
Diluted earnings per share allocated to the company's shareholders		0.55	0.31	1.15	0.60	1.79
EBITDA per share		1.07	0.79	2.08	1.74	3.86

CONSOLIDATED BALANCE SHEET – GROUP (NOK mill.)

	Note	IFRS	IFRS	IFRS
	no.	30.06.2021	30.06.2020	31.12.2020
ASSETS
Fixed assets
Tangible fixed assets	2	929.2	932.1	931.8
Intangible assets	2	23.4	26.8	25.0
Deferred tax asset	5	5.3	9.9	6.9
Long-term financial derivatives	6	0.0	0.0	0.0
Other long-term receivables		0.5	0.5	0.2
Total fixed assets		958.4	969.2	963.9
Current assets
Inventories		278.8	273.5	263.5
Customer and other short-term receivables		446.2	342.6	379.3
Short-term financial derivatives	6	0.0	0.0	0.0
Cash and cash equivalents		36.6	434.5	525.2
Total current assets		761.6	1050.6	1168.0
TOTAL ASSETS		1720.0	2019.8	2131.9
EQUITY
Equity allocated to the company's shareholders
Share capital and share premium	4	52,7	52,7	52,7
Other equity not recognised in the income statement		14.2	14.8	25.2
Retained earnings		442.3	844.9	912.3
Total equity		509.2	912.4	990.2
LIABILITIES
Long-term liabilities
Long-term loans	10	446.2	557.8	452.8
Long-term financial derivatives	6	4.6	16.5	9.7
Deferred tax	5	91.0	84.6	89.9
Total long-term liabilities		541.8	659.0	552.4
Current liabilities
Trade payables and other current liabilities		441.9	377.9	409.1
Tax payable	5	29.4	2.9	33.0
Short-term loans	10	197.5	64.2	144.2
Short-term financial derivatives	6	0.1	3.5	2.9
Total current liabilities		669.0	448.5	589.3
Total liabilities		1210.8	1107.4	1141.7
TOTAL EQUITY AND LIABILITIES		1720.0	2019.8	2131.9
Of which interest-bearing debt (long-term and short-term)		643.7	622.0	597.0

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY – GROUP (NOK mill.)

			Equity allocated to the company's shareholders
			Other
		Share	equity not
		capital	recognised
		and share	in the income	Retained
		premium	statement	earnings	TOTAL
Equity as at 31 December 2019		52.7	5.9	802.9	861.4
Conversion differences		0.0	8.9	0.0	8.9
Profit for the year		0.0	0.0	42.1	42.1
Equity 30 June 2020		52.7	14.8	845.0	912.4
Conversion differences		0.0	2.1	0.0	2.1
Profit for the year		0.0	0.0	82.8	82.8
Purchase of own shares	4	0.0	0.0	-0.1	-0.1
Dividend		0.0	0.0	-7.0	-7.0
Equity 31 December 2020		52.7	16.9	920.7	990.2
Conversion differences		0.0	-2.7	0.0	-2.7
Profit for the year		0.0	0.0	80.2	80.2
Dividend		0.0	0.0	-558.6	-558.6
Equity 30 June 2021		52.7	14.2	442.3	509.2

CONSOLIDATED PROFIT/LOSS BEFORE TAX PER QUARTER (NOK mill.)

	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		46.2	20.3	18.5	29.1
Profit/loss for Q4		59.4	17.7	31.9	28.4
TOTAL	102.6	159.7	62.0	55.9	84.4

CONSOLIDATED STATEMENT OF CASH FLOW – GROUP (NOK mill.)

	Note
	no.	30.06.2021	30.06.2020	31.12.2020
Cash flow from operations
Cash flow from operations		37.7	31.9	230.2
Interest paid		-10.6	-12.4	-24.1
Interest received		1.6	3.0	5.2
Taxes paid		-4.2	-3.0	-4.2
Net cash flow from operations		24.5	19.4	207.1
Cash flow from investment activities
Purchase of tangible fixed assets	2	-40.0	-22.9	-59.1
Sale of tangible fixed assets		0.1	0.6	0.0
Purchase of intangible assets	2	-0.9	-1.6	-2.1
Loans granted to related parties		39.0	1.9	-27.2
Net cash flow used for investment activities		-1.9	-22.0	-87.4
Cash flow from financing activities
Purchase of own shares	4	0.0	0.0	-0.1
Adjustment of overdraft facility		55.5	-4.4	-3.4
Uptake of loans		27.2	144.2	150.2
Repayment of loans		-32.6	-29.7	-62.0
Dividends paid to the company's shareholders		-558.6	0.0	-7.0
Net cash flow used for financing activities		508.5	110.2	77.7
Adjustment to cash, cash equivalents		-485.9	107.6	197.4
Cash, cash equivalents as at 1 January.		525.2	322.6	322.6
Foreign exchange gains/(loss) on cash and
cash equivalents		-2.8	4.3	5.2
Cash, cash equivalents		36.6	434.5	525.2
This consists of:
Bank deposits and similar		21.8	422.1	509.2
Tax deduction account		14.7	12.4	16.1
Cash, cash equivalents		36.6	434.5	525.2
Unused overdraft facility/drawing rights		223.6	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 mill.)

	H1 2021	H1 2020	2020
Investments	41.0	24.5	61.2
Depreciation and write-downs	40.3	38.1	77.1

NOTE 3 NET FINANCIAL EXPENSES (NOK million)

	IFRS Q2 2021	IFRS Q2 2020	IFRS H1 2021	IFRS H1 2020	IFRS 2020
Change in market value, interest rate swap	-0.4	-2.5	7.1	-19.4	-13.3
Paid interest rate swap	-1.1	-0.3	-2.3	-0.6	-2.9
Interest expenses leasing agreements	-1.0	-1.1	-2.0	-2.2	-4.3
Net interest income/interest expenses	-2.6	-3.7	-4.9	-6.4	-11.1
Other financial expenses	-0.3	-0.3	-0.5	-0.8	-1.2
Net financial expenses	-5.3	-7.9	-2.7	-29.4	-32.9

NOTE 4

SHARE CAPITAL (NOK mill.)

	Number of shares (in thousands)	Ordinary shares	Share premium	Own shares	Total
As of 31 December 2019	6983	18.3	34.5	-0.1	52.7
As of 30 June 2020	6983	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
As of 31 December 2020	6982	18.2	34.5	0.0	52.7
Write-downs, share capital	0	0.0	0.0	0.0	0.0
Stock split 1to 10	62,837	0.0	0.0	0.0	0.0
Purchase of own shares	0	0.0	0.0	0.0	0.0
As of 30 June 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

FINANCIAL DERIVATIVES (NOK mill.)

	30.06.2021	30.06.2020	31.12.2020
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
Commitments
Interest rate swaps - (long-term)	4.6	16.5	9.7
Interest rate swaps - (short-term)	0.1	1.4	2.2
Forward exchange contracts - (short-term)	0.0	2.1	0.8
Total financial derivatives - liabilities	4.7	20.0	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 26.08.2021 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

EVENTS AFTER THE BALANCE SHEET DATE

The COVID-19 pandemic is covered in the quarterly report.

NOTE 10

LOANS (MNOK)

	30.06.2021	30.06.2020	31.12.2020
Long-term loans
Bank loans	358.6	462.2	360.8
Lease commitments	87.6	95.5	92.0
Total long-term loans	446.2	557.8	452.8
Short-term loans
Overdraft facility	56.5	0.0	1.0
Bank loans	122.1	46.9	125.2
Lease commitments	19.0	17.3	18.1
Total short-term loans	197.5	64.2	144.2
Total loans	643.7	622.0	597.0

NOTE 11 SEGMENT INFORMATION (NOK mill.)

NET SALES REVENUES

	IFRS Q2 2021	IFRS Q2 2020	IFRS H1 2021	IFRS H1 2020	IFRS 2020
Panel sales to external customers	419.2	356.4	830.9	752.7	1449.9
Beam sales to external customers	102.9	64.4	184.9	131.6	293.4
Window sales to external customers	66.4	56.6	107.5	102.9	214.0
Lighting sales to external customers	18.2	13.3	43.0	35.6	95.2
NET SALES REVENUES - GROUP	606.6	490.6	1166.4	1022.8	2052.4

OPERATING PROFIT/LOSS

	IFRS Q2 2021	IFRS Q2 2020	IFRS H1 2021	IFRS H1 2020	IFRS 2020
Panels	44.7	30.1	90.8	82.7	163.4
Beams	9.8	6.4	16.9	12.1	25.5
Windows	6.5	2.9	5.3	-3.9	5.9
Lighting	-2.2	-1.6	-1.8	-3.1	5.1
Byggma joint/eliminations	-4.4	-1.9	-6.1	-4.3	-7.4
OPERATING PROFIT/LOSS FOR THE GROUP	54.3	35.9	105.3	83.6	192.6

NOTE 11 - CONTINUED

NET SALES REVENUES

	IFRS Q2 2021	IFRS Q2 2020	IFRS H1 2021	IFRS H1 2020	IFRS 2020
Norway	414.0	323.3	789.4	674.2	1366.9
United Kingdom	15.4	7.4	22.5	15.4	44.9
Sweden	95.7	95.1	194.4	202.5	400.3
Finland	4.8	4.4	10.6	10.7	23.3
Denmark	22.1	21.9	46.1	41.9	71.6
The Netherlands	22.2	20.3	45.1	40.0	71.4
Others	32.4	18.2	58.2	38.3	74.0
NET SALES REVENUES - GROUP	606.6	490.6	1166.4	1022.8	2052.4

DEFINITIONS

Key figures	Definition
EBITDA	Operating profit/loss + depreciation
Liquidity reserve	Bank deposits (ex. tax deductions) + unused overdraft facilties
Interest-bearing debt	Interest-bearing loans + leasing obligations + bank overdrafts

DECLARATION BY THE BOARD OF DIRECTORS AND GENERAL MANAGER:

To the best of our knowledge, we declare that the half-year accounts for the period 1 January to 30 June 2021 have been prepared in accordance with IAS 34 – Interim reporting and that the information presented in the financial statements provides a true and fair view of the assets, liabilities, financial position and overall results of the Group. We also declare, to the best of our knowledge, that the half-year report provides a true and fair view of important events in the accounting period and their influence on the half-year accounts, the most central risk and uncertainty factors facing the company in the next accounting period, as well as of significant transactions with related parties.

Vennesla, 26.08.2021 The Board of Directors of BYGGMA ASA

TERJE GUNNULFSEN CHAIRMAN OF THE BOARD

EDVART TRELDAL HØYÅSEN ERIK FJELDBERG DAGFINN ERIKSEN

KNUT HENNING LARSEN HEGE AARLI KLEM

LIV ANNE DRANGSLAND HOLST

GEIR DRANGSLAND

CHIEF EXECUTIVE OFFICER

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 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 AS BRASKEREIDFOSS

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

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

ANETA BELYSNING 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

SCAN LAMPS AS PO Box 4663 Grim 4673 Kristiansand

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

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