Slide 1: Second quarter of 2024 results
Second quarter of 2024 results CEO Christian Bekken, CFO Marie Danielsson 21 August 2024
Slide 2: Cautionary note regarding forward-looking statements
Cautionary note regarding forward-looking statements This presentation, prepared by BEWI ASA (the "Company"), may contain statements about future events and expectations that are forward-looking statements. Any statement in this presentation that is not a statement of historical fact including, with
Slide 3: Key figures for the second quarter of 2024
Key figures for the second quarter of 2024 Revenue Adj. EBITDA Adj. EBITDA margin EUR 277 million EUR 29 million 10.6% -4% -7% -0.3 pp Net sales Adj. EBITDA Adj. EBITDA EUR million EUR million Percentage (%) 10.9 % 10.6 % 9.9 % 9.0 % 7.6 % 290 267 277 253 244 32 29 24 25 19 Q223 Q323 Q423 Q124 Q224
Slide 4: Solid operational cash flow and a strengthened balance sheet in a continued cautious market
Second quarter 2024: Solid operational cash flow and a strengthened balance sheet in a continued cautious market • Building and construction markets remain cautious, impacting all segments o Early signs of recovery, large variations across regions • Solid operational performance o Pressure on margin
Slide 5: Operational highlights: Upstream segments
Second quarter 2024: Operational highlights Upstream segments RAW • ~70% exposure to building and construction markets • ~20% increase in Styrene price vs ~6% in EPS price since Q223 • Certified recycled EPS enables offering of “tax-free” materials Circular • Challenging to get hold of enough collec
Slide 6: Operational highlights: Downstream segments
Second quarter 2024: Operational highlights Downstream segments Insulation & Construction • Cautious markets, signs of recovery • Increased capacity for construction boards in Olen, Belgium • Increased use of recycled material Packaging & Components • Biology challenges for Norwegian fish industry •
Slide 7: Delivering on key priorities for long-term growth
Delivering on key priorities for long-term growth 1 Increasing collection and use of recycled material 2 Capacity and cost optimalisation 3 Capitalising on investments 4 Strengthening financial position 5 Evaluating strategic opportunities for growth Second quarter of 2024 7
Slide 8: Offering customers "tax-free" products
Offering customers “tax-free” products Investments in recycling capabilities - a huge competitive advantage • BEWI has invested more than EUR 50 million in recycling capabilities since 2018 • Plastic tax introduced in several European countries to incentivise increased use of recycled materials Volu
Slide 9: Strengthening cash flow and financial position through ongoing activities
Strengthening cash flow and financial position through ongoing activities • Operational o Cost reductions and margin improvement o Further reduce inventory o Low CAPEX for 2024 and 2025 • Strategic review o Free-up capital to accelerate growth in insulation Targeting EUR ~150 million in available li
Slide 10: Group financials
Second quarter of 2024 Group financials MARL – Supply market region in Lisbon where BEWI Circular collects fish boxes in large quantities. Second quarter of 2024 10
Slide 11: Financial overview for the second quarter of 2024
Financial overview for the second quarter of 2024 Clear signs of market recovery, stable volumes for the quarter Net sales Adj. EBITDA EUR million EUR million 5.1 (4.3) (5.2) (2.4) (5.7) 2.4 (1.6) (3.5) 0.5 0.2 Q2 2024 289.6 289.6 285.2 282.8 277.1 277.2 31.5 29.4 Q2 2023 RAW I&C P&C Circular Elimin
Slide 12: Financial highlights upstream segments
Second quarter 2024: Financial highlights upstream segments RAW Circular Net sales Net sales EUR million EUR million • Net sales of EUR 90.6 million • Net sales of EUR 14.1 million 32.6 39.1 o 6% increase from Q2 2023 o 15% decrease from Q2 2023 o Higher sales prices o Lower volumes 16.5 52.9 51.4 o
Slide 13: Financial highlights downstream segments
Second quarter 2024: Financial highlights downstream segments Insulation & Construction Packaging & Components Net sales Net sales EUR million EUR million • Net sales of EUR 120.5 million • Net sales of EUR 94.5 million o 3% decrease from Q2 2023 o 5% decrease from Q2 2023 124.8 120.5 o Lower volume
Slide 14: Financials: Consolidated income statement
Financials Consolidated income statement Amounts in EUR million Q2 2024 Q2 2023 1H 2024 1H 2023 2023 Second quarter of 2024 Net Sales 277.2 289.6 521.1 586.0 1 105.3 - • Net sales of EUR 277.2 million, down 4% Other operating income 7.6 7.6 - 1.5 Total operating income 284.8 289.6 528.8 586.0 1 106.
Slide 15: Financials: Solid operational cash flow
Financials Solid operational cash flow Cash flow from operations Second quarter of 2024 EUR million • Operating cash flow of EUR 23.0 million (26.0) o Decrease in working capital of EUR 6.0 million (+4.4), resulting from active measures 1.4 31.2 34.5 25.0 16.8 13.2 7.4 26.0 14.2 28.8 23.0 o Reduced
Slide 16: Financials: Strengthening financial position a prioritised task
Financials Strengthening financial position a prioritised task • Large acquisitions, combined with downturn in Leverage: Net debt/ EBITDA ratio(1) markets impacted leverage and ROCE Acquisition of EUR million Jackon, Aislenvas • Available cash and credit EUR ~104 million and Inoplast • Incl. EUR 37
Slide 17: Strategy recap and outlook
Second quarter of 2024 Strategy recap and outlook In 'Coop City' in Albertslund, Denmark, the main contractor HHM A/S is using recycled GreenLine EPS insulation from BEWI in the construction of 138 homes. The area as a whole and the homes are to be DGNB Gold-certified and provided with The Nordic Sw
Slide 18: Strong ambitions for further growth
Strong ambitions for further growth Need for improved energy efficiency makes insulation solutions key growth driver Other ~25 % Insulation Other ~40 % EUR EUR ~45 % V V 381m Other Insulation 1,105m ~60 % ~55 % Insulation ~75 % 2018 2023 3-5 years Ambition to double revenue next 3-5 years with incre
Slide 19: Clear signs of recovery for Dutch new housing market in 2025
Clear signs of recovery for Dutch new housing market in 2025 • Industry analyst expect ~3% decline in Dutch construction volume in Sales of newly constructed 2024, mainly due to a sharp decline in Q1 houses in the Netherlands • Clear signs of recovery at the beginning of the construction value chain
Slide 20: Positioned to accelerate growth when market rebounds
Positioned to accelerate growth when market rebounds ✓ Strong market fundamentals ✓ “Tuned” production and cost structure ✓ Unutilized capacity ✓ Advantage of certified and “tax-free” recycled EPS ✓ Strengthened financial position ✓ Clear growth strategy rGPPS ready to be shipped from Czechia for us
Slide 21: Summary and outlook
Summary and outlook Well-positioned for growth • Building & construction markets remain cautious, with early signs of recovery • Certified and “tax-free” recycled material receives increased interest • Demonstrated strong ability to adapt to markets • Solid operational cash flow and a strengthened b
Slide 22: Bcw/
Bcw/ for a better everyday