Slide 1: First quarter of 2024 results
First quarter of 2024 results CEO Christian Bekken, CFO Marie Danielsson 16 May 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: Strategically positioned for energy efficient and circular packaging solutions
Strategically positioned for energy efficient – and circular packaging solutions 3
Slide 4: Key figures for the first quarter of 2024
Key figures for the first quarter of 2024 Revenue Adj. EBITDA Adj. EBITDA margin EUR 244 million EUR 19 million 7.6% -18% -34% -1.9 pp Net sales Adj. EBITDA Adj. EBITDA EUR million EUR million Percentage (%) 10.9 % 9.5 % 9.9 % 9.0 % 7.6 % 296 290 267 253 244 32 28 25 24 19 Q123 Q223 Q323 Q423 Q124 Q
Slide 5: Solid performance in seasonally weak quarter, positioned for growth
Solid performance in seasonally weak quarter, positioned for growth • Market conditions remained challenging in seasonally weak quarter • Solid operational performance Adj. EBITDA EUR 19 million o Cost reductions enable sustained downstream margins, despite lower volumes -34% o Ramp-up of new produc
Slide 6: 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 First quarter of 2024 6
Slide 7: Fish box collection and recycling
2023: >50 million fish boxes ~30 kt EPS ~27 kt EPS collected ~90% of fish boxes First quarter of 2024 7 7
Slide 8: In pole position for proposed packaging regulations
In pole position for proposed packaging regulations New regulations create opportunities EPS fish boxes – Reusable fish Fibre-based recycled at scale boxes packaging Fish box packaging in use Proposed regulations ≥30% ≥40% recycled content reuse in system (PPWR)
Slide 9: Group financials
First quarter 2024 Group financials ONE commercial and residential building Frankfurt, Germany with BEWI’s XPS thermal insulation Photo credit: CA Immo/Klaus Helbig First quarter of 2024 9
Slide 10: Financial overview for the first quarter of 2024
Financial overview for the first quarter of 2024 Downstream segments sustain margins despite lower volumes Net sales Adj. EBITDA EUR million EUR million (21.3) (22.1) 10.0 (3.9) (16.0) (3.0) (1.5) Q1 2024 (2.2) 296.4 275.1 (2.2) 28.2 244.0 244.0 0.2 237.0 234.0 18.6 Q1 2023 RAW I&C P&C Circular Elim
Slide 11: Financials: consolidated income statement
Financials Consolidated income statement Amounts in EUR million Q1 2024 Q1 2023 2023 First quarter of 2024 Net Sales 244.0 296.4 1 105.3 • Net sales of EUR 244.0 million, down 18% Other operating income - - 1.5 Total operating income 244.0 296.4 1 106.8 • EBIT of EUR 2.6 million (9.8) o Raw material
Slide 12: Operational cash flow and CAPEX
Financials Operational cash flow impacted by seasonally weark quarter and build-up of working capital Cash flow from operations First quarter of 2024 EUR million • Operating cash flow of EUR -20.2 million (7.4) o Increase in working capital of EUR 23.4 million (8.3), 25.0 16.8 13.2 7.4 26.0 14.2 28.
Slide 13: 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 impacting leverage and ROCE Acquisition of EUR million Jackon, Aislenvas • Available cash and credit EUR ~78 million and Inoplast • Incl. EUR 36
Slide 14: Segment review
First quarter 2024 Segment review BEWI’s new packaging facility at Jøsnøya, Norway First quarter of 2024 14
Slide 15: RAW
RAW Improved efficiency and lower fixed cost partly compensate for lower volumes and GAP First quarter of 2024 • Net sales of EUR 72.2 million (93.5), down 23% o Volumes impacted by low activity in building and construction o Official EPS prices down by ~7% since Q1 2023 o Extra harsh winter and ear
Slide 16: Insulation & Construction
Insulation & Construction Maintained margin despite continued low activity in the building and construction industry First quarter of 2024 • Net sales of EUR 98.4 million (120.5), down 18% o Q1 seasonally weakest quarter, further impacted by extra harsh winter and early Easter o Regional variations
Slide 17: Packaging & Components
Packaging & Components Rather stable fish box and automotive volumes, while the HVAC and trading volumes are low First quarter of 2024 • Net sales of EUR 93.7 million (109.7), down 15% o Decrease mainly explained by lower volumes of industrial products and traded food packaging • Adj. EBITDA of EUR
Slide 18: Circular
Circular Increased collection and use of recycled material, results negatively impacted by lower sales prices First quarter of 2024 • Net sales of EUR 12.5 million (15.5), down 19% o Reduction explained by lower sales prices o Slight increase in sold volumes • Adj. EBITDA of EUR -1.8 million (0.5),
Slide 19: Strategy recap and outlook
First quarter 2024 Strategy recap and outlook A commercial building with PIR sandwich elements from BEWI First quarter of 2024 19
Slide 20: 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 in
Slide 21: Climate change requires more energy efficient buildings
The opportunity Climate change requires 40% 75% of energy of buildings build more energy efficient consumption in EU from buildings1 before 2000 are not energy efficient1 buildings For the EU to reach its climate reduction targets, renovation is required at large scale, and new buildings must be zer
Slide 22: Structural growth for insulation solutions
Structural growth for insulation solutions 1 Regulations -> increased avg. insulation in buildings 2 Recent soft markets -> increased housing shortage Historical development of required insulation value in the Netherlands RC insulation value 6.3 6.0 Increase in avg. thickness of insulation boards fr
Slide 23: Positioned to accelerate growth when market rebounds
Positioned to accelerate growth when market rebounds ✓ Strong market fundamentals ✓ “Tuned” production and cost structure ✓ Unutilized capacity ✓ Broad product offering ✓ Clear growth strategy Løren activity park, Oslobygg KF, Oslo, Norway 2 400 m2 GreenLine EPS incl. 100% recycled content ✓ Growing
Slide 24: Rebound in volumes yield significant earnings uplift
Rebound in volumes yield significant earnings uplift EBITDA uplift • 35% increase in volumes, could yield more than 70% uplift in EBITDA for I&C • Additional positive effects for RAW, P&C (HVAC) and Circular Insulation Raw P&C Circular Automotive Corporate BEWI ASA 24 First quarter of 2024
Slide 25: Recent investments to add EUR ~75 million sales
Recent investments to add EUR ~75 million sales Positioning for energy efficient solutions – and circular packaging products Division Key recent investments • New production line for raw materials, Netherlands RAW Other -> increased capacity of grey EPS and use of recycled feedstock Insulation & • I
Slide 26: Summary and outlook
Summary and outlook Well-positioned for growth • Continued challenging markets • Q1 seasonally weak, further impacted by extra cold winter and early Easter • Demonstrated strong ability to adapt • A priority to further strengthen balance sheet • Well positioned to capitalise on higher volumes when m
Slide 27: Bcow/
Bcow/ for a better everyday