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INTERIM REPORT Q1 2023

Introduction	3
Highlights	4
A word from the CEO	6
Group key figures	8
Segment information 10
Sustainability ESG 15
Outlook 17
Consolidated financial statements 18
Notes to the consolidated financial statements 22
Real estate overview 26
Contact details and subsidiaries 27

INTRODUCTION ³

Byggma ASA consists of the production and trading companies Forestia AS, Huntonit AS, Uldal AS, Masonite Beams AB, Smartpanel AS, Masonite Beams AS, Aneta Lighting AS and Aneta Lighting AB. In addition, the real estate companies Byggma Eiendom AS, Forestia Eiendom AS, Huntonit Eiendom AS and Byggma Eiendom Lyngdal AS, which own industrial property, are included. Byggma is listed on Oslo Børs with the 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.

Expected turnover in 2023 is NOK 2.600 million and the Group has around 720 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 solutionoriented 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 Q1 2023 decreased from NOK 700.3 million in Q1 2022 to NOK 636.7 million, corresponding to a decrease of 9.1%. Operating profit increased from NOK 81.6 million in Q1 2022 to NOK 92.4 million in Q1 2023.

Norske Skog ASA

As at 31 March 2023 Byggma ASA and its related party Drangsland Kapital AS owns ca. 23.6% of the share capital in Norske Skog ASA. In Q1 2023 the CEO of Byggma, Geir Drangsland, was elected as chairman of the board in Norske Skog There are several synergy effects between Norske Skog and Byggma regarding process equipment, raw materials, logistics, product development and environment.

Solid profitability growth in the Panels segment

The Panels segment increased its operating profit from from NOK 45.3 million in Q1 2022 to NOK 66.7 million in Q1 2023.

New distribution hub in Forestia

Forestia has invested NOK 40.0 million in a 4,000 m² distribution hub in Braskereidfoss. Parallelly, the merger

4,000 SQM LOGISTICS HUB AT BRASKEREIDFOSS

between AS Byggform and Forestia AS has been completed and Byggforms inventory had been transferred to the hub. We believe it will be value enhancing for Forestia and its customers that both Byggform and Forestia products can be ordered simultaneously. Consequently, chipboard, OSBand plywood boards can be delivered together.

Product innovation

Our product launches Forestia Premium Ceiling, Smartpanel Wetwall, Forestia Ergospon and Huntonit Pro Wall are still experiencing increasing sales in the market. These decorative interior products have high unit prices, and the increasing sale of these products are consequently increasing the profitability for the group.

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.

Smartpanel Wetwall

Smartpanel has in 2022 entered into cooperation agreements with several building materials chains for Smartpanel Wetwall. Exhibitions in stores will be built and the sale is expected to increase going forward. Byggma

HIGHLIGHTS

has received approval to use Huntonit panels as core in Smartpanel Wetwall. This very environmentally friendly, moist resistant and strong Huntonit core gives Smartpanel cost leadership, price leadership and will be more environmentally friendly compared to other suppliers of wet room wall panels. Byggma's ambition is to achieve a 30% market share in the years to come.

Business transfer

With effect from 31 December 2022 the department for I-Beams at Huntonit in Vennesla is transferred from Huntonit AS to Masonite Beams AS. With this I-Beams from Masonite Beams AS Vennesla branch and Grubhei branch will belong to the same legal entity and appear more clearly toward the customers in Norway.

Forestia Carbon Sink

Forestia has for a period been in dialogue with Innovasjon Norge to receive grants to support the building of a plant for reception and cleaning of wood waste to be reused in new woodchip boards. On 8 April 2023, Forestia was informed by the Minister of Finance, Trygve Slagsvold Vedum, and Minister of Trade and Industry, Jan Christian Vestre, that the Board of Directors of Innovasjon Norge had resolved to grant Forestia NOK 80 million for this project. This project will be value enhancing for Forestia.

It will also make the woodchip boards from Forestia even more circular because the wood waste will be material recycled into new boards and sequestrate CO2 instead of energy recovered and release CO2 into the atmosphere through combustion. This will be a better usage of the wood waste in accordance with the multi-step cascading principle for biomass. It will also reduce sourcing risk as it makes Forestia less dependent on raw materials from the sawmills. Forestia is working with vendors to secure good, stable and long term supply agreements for the project.

Automation of the Huntonit Pro Wall production line

In Q1 2023 an automated feeding station, profile saw and automated packing station has been installed in the production line for Huntonit Pro Wall. The new line has significantly higher speed, provides higher quality on click lock and profile and the automation gives the possibility for a much higher production volume with less manpower.

HUNTONIT PRODUCTION

Results

The Byggma Group experienced decline in revenues in Q1 2023. In Q1, revenues amounted to NOK 636.7 million, representing a decrease of NOK 63.6 million from Q1 2022. Yet, the operating profit increased from NOK 81.6 million in Q1 2022 to NOK 92.4 million in the same period for 2023.

Both in Norway and our export markets we see weakened economic conditions for the building materials market. Inflation and increased interest rates have reduced the activity level in Q1 2023. Among other things, sale and commissioning of new housing unites decreased significantly in Q1 2023 compared to the same period last year. The newbuild is too low compared to the need, leading to pent up demand of new housing units to be built in the future. We are implementing two important measures to mitigate the financial effects of this market development. The first measure is increased marketing regarding our innovative products Huntonit Pro Wall, Forestia Premium Ceiling, Forestia Ergospon, Smartpanel Wetwall and Smart Veneer. This will generate increased revenue streams to replace the decrease on conventional revenue following the lower demand for our base products. The second measure is to reduce cost to compensate for lower gross profits due to lower sales.

This quarter I am especially happy for the development in the segments Panels. Panels experienced vast growth profitability which can be ascribed to very stable operations of our factories and excellent quality in the procurement processes.

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 Q1 2023.

Packaging

The factories are constantly working to improve sustainability of our products' packaging/wrapping in order to reduce weight transported and waste on construction sites. In Q1 Forestia has optimised the packaging facility

A WORD FROM THE CEO

so that more of the products can be packed in recyclable containerboard instead of particle board. This will lead to materially lower transportation weight and subsequently reduce waste on construction sites. The project is expected to be finalised in Q1 2023.

Logistics

The new warehouse and logistic hub at Forestia was completed in Q4 2022. This made it possible to move the inventory from Byggform to Forestia at Braskereidfoss. Byggform is formally merged into Forestia with effect from 1 January 2023 and the new centre will make Forestia a logistic hub for wood based boards that will make a difference regarding transportation optimisation. The project is welcomed by our customers and will give environmental and financial advantages for our customers and Byggma.

Efficient use of resources

Masonite Beams AB has invested in a machine to enable jointing of cut off wood together to new products. This will increase the usage of purchased wood raw materials and reduce waste. This is a good example of UN's sustainability goal 12 which is a priority for Byggma.

My thanks to each and every one of you at Byggma for your efforts this far in 2023. 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

CONFERENCE ROOMS AT MASONITE IN SWEDEN FORESTIA PRODUCTION

GROUP KEY FIGURES

Million NOK	YTD 2023	YTD 2022	2022
Sales revenues	636,7	700,3	2 508,2
EBITDA *)	114,5	101,9	406,6
Operating profit	92,4	81,6	324,6
Share of profit from associate	(15,6)	-	-
Net financials	(21,4)	5,2	(25,4)
Profit/loss before tax	55,4	86,9	229,1
Taxes	(15,5)	(18,9)	(48,9)
Profit/loss after tax	39,9	68,0	250,2

The Group's sales revenues in Q1 2023 amounted to NOK 636.7 million, which is NOK 63.6 million lower than for the same period in 2022. The trend in sales revenue in Q1 2023 is positive in the Windows and Lighting segment, but lower for other segments compared to the same period in 2022.

The Group achieved an EBITDA in Q1 2023 of NOK 114.5 million, compared to NOK 101.9 million in Q1 2022.

The operating profit for Q1 2023 was NOK 92.4 million, compared to NOK 81.6 million in Q1 2022. The operating profit in Q1 2023 is higher for the Panels segment, but lower for the other segments compared to the same period in 2022.

From 9 March 2023 the investment in Norske Skog ASA is classified as an investment in associate and is accounted for using the equity method in accordance with IAS 28. See note 12 for more information. Share of profit from associate was NOK -15.6 in Q1 2023.

The Group achieved a profit before tax in Q1 2023 of NOK 55.4 million, compared to NOK 86.9 million for the same period in 2022.

In Q1, net financials amounted to an expense of NOK 21.4 million in 2023, which is NOK 31.5 million weaker compared to the same period in 2022. The main reason for the increase in net financial expenses is increased interest rates and debt, and that there was a finance income on increased value of interest rate swaps in 2022. Year to date, net interest expenses (incl. payment for interest rate swaps) amounted to NOK 18.6 million in 2023, which is NOK 13.9 million higher than in the same period in 2022. Interest on lease obligations amounted to NOK 0.8 million, which is NOK 0.1 million lower than for the same period in 2022.

The liquidity reserve*) as at 31 March 2023 amounted to NOK 206.9 million, a reduction of NOK 112.4 million from 31 March 2022 and a reduction of NOK 101.7 from 31 December 2022. The Board of Directors will maintain its focus on capital and cost-efficiency.

Interest-bearing debt*) increased from NOK 1,462.5 million as of 1 January 2023 to NOK 1,555.8 million as at 31 March 2023. Year to date 2023, long-term borrowings of NOK 8.3 million was carried out, of which all are due to new lease agreements.

Investments in tangible fixed assets and intangible assets year to date 2023 totalled NOK 21.8 million, which is NOK 5.2 million higher than in 2022. Of the investments made, capitalised lease agreements amounted to NOK 8.3 million.

The financial accounts for 2022 have been restated following a change in financial statement principle for Byggma Eiendom Lyngdal to investment property in accordance with IAS 40. See note 32 in Byggma ASA's annual report for 2022 for more information.

Total assets increased from NOK 2,945.7 million as of 1 January 2023 to NOK 3,041.0 million as of 31 March 2023.

Booked equity as of 31 March 2023 was NOK 881.1 million (29.0%), which is an increase of NOK 48.4 million compared to 1 January 2023 (28.3%). The reasons for the change in equity are due to the profit of the year of NOK 39.9 million, a currency translation difference of NOK -2.0 million, loss on financial investment booked in OCI of NOK 11.0 million and share of other comprehensive income from associate of NOK 21.7 million.

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

SALES REVENUES

OPERATING PROFIT

PANELS

	Q1 2023	Q1 2022	2022
Sales revenues	438,4	491,2	1 662,2
Operating profit	66,7	45,3	161,1

THE PANELS SEGMENT consists of the companies Huntonit AS, Forestia AS and Smartpanel AS.

In 2023 AS Byggform has been merged into Forestia AS. The Masonite part of Huntonit in Vennesla is with effect from 31 December 2022 transferred from Huntonit AS to Masonite Beams AS through a business transfer.

In Q1 2023, the Panels segment achieved lower sales revenues, but higher operating profit compared with the same period in 2022. The segment is experiencing increased raw material- and energy costs and price increases have been implemented on our products in order to maintain a reasonable margin. There is continuous

work to optimise operations and to maintain good discipline in the procurement process. Demand for products in the panels segment varies between the various product groups, but are in total lower compared to the same period last year.

The Board of Directors is satisfied with the development in sales and profitability in Q1 2023. Management has a continuous focus on improvements, including trends in sales and costs.

HUNTONIT PRO WALL FORESTIA WALLS4YOU

SEGMENT INFORMATION

BEAMS

	Q1 2023	Q1 2022	2022
Sales revenues	97,9	110,5	456,9
Operating profit	14,3	22,0	70,4

THE BEAMS SEGMENT consist of the company Masonite Beams AB and Masonite Beams AS.

Beams have increased their market share in most markets, and we are experiencing greater acceptance for I-Beams as a construction material.

Sales revenues and operating profit are lower Q1 2023 than for the corresponding period in 2022.

The Board of Directors is very satisfied with the sales and results for the segment in Q1 2023. The Management and Board of Directors are firmly focused on boosting sales and enhancing levels of profitability.

MASONITE MAIN OFFICE IN SWEDEN MASONITE I-BJELKE

SEGMENT INFORMATION

WINDOWS

	Q1 2023	Q1 2022	2022
Sales revenues	71,6	70,8	291,0
Operating profit	3,5	6,6	18,9

THE WINDOW SEGMENT consists of the company Uldal AS.

In Q1 2023, the Windows segment achieved higher sales revenues and lower operating profit compared with the corresponding period in 2022. 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. This has lead to Uldal increasing their market share significantly.

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

The Board of Directors is very satisfied with the sales and operating profit in Q1 2023. Management will continue to focus on sales and cost trends.

CABIN WITH ULDAL SLIDING DOOR AND WOODEN WINDOWS THE FAIRYTALE CASTLE WITH ULDAL WINDOWS

SEGMENT INFORMATION

LIGHTING

	Q1 2023	Q1 2022	2022
Sales revenues	28,8	27,7	98,1
Operating profit	0,3	0,6	(6,3)

THE LIGHTING SEGMENT consists of the companies Aneta Lighting AS, Scan Lamps VTA AS in Norway and Aneta Lighting AB in Sweden.

In Q1 2023 Lighting achieved higher sales revenues and operating profit compared with the corresponding period in 2022.

The Lighting is segment is starting to see some effect from the increased efforts to penetrate the electric installations market.

The Board of Directors is not satisfied with the sales and operating profit in Q1 2023. Management is firmly focused on implementing measures to improve profitability.

LIGHTING FROM ANETA LIGHTING FROM ANETA

REAL ESTATE

	Q1 2023	Q1 2022	2022
Rental revenues	12,6	15,1	55,6
Change in fair value	-	-	(20,0)
Operating profit	10,7	11,7	23,5

THE REAL ESTATE SEGMENT consists of the companies Byggma Eiendom AS, Huntonit Eiendom AS, Forestia Eiendom AS, Byggma Eiendom Lyngdal AS and Grammarholmen Fastighets AB.

The segment's rental revenues are based on lease contracts with the Group's industrial companies with the exception of Byggma Eiendom Lyngdal AS which has a lease contract with an external party.

Please see the Real Estate overview on page 26.

HUNTONIT, VENNESLA BYGGMA REAL ESTATE LYNGDAL AS

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 Q1 2023.