Slide 1: Company presentation
[Byggma at a glance] Company presentation 7 June 2021 1
Slide 2: Disclaimer
Disclaimer ABOUT THIS PRESENTATION By reading this company presentation or attending any meeting or oral presentation held in relation thereto (collectively the “Presentation”), you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been prod
Slide 3: Byggma is a leading Nordic supplier of building product solutions
Byggma is a leading Nordic supplier of building product solutions Introduction ◼ Leading supplier of building product solutions in the Nordics, with a special focus on various boards, beams, windows & doors, and lighting products Vennesla, Norway ~700 Headquarter Employees ◼ Byggma owns 8 companies/
Slide 4: #1 market position for boards and beams in the Nordics and growing internationally
#1 market position for boards and beams in the Nordics and growing internationally Byggma segment Boards I-beams Windows and doors Lighting Companies / brands Product illustrations Clear #1 position within particle boards, Nordic market 1 decorative interior 1 Clear #1 position Growing market Growin
Slide 5: Highly attractive offering towards all the major building material chains in the Nordics
Highly attractive offering towards all the major building material chains in the Nordics Highest production Superior product In-house developed capacity in the quality versus innovative products Nordics1 competition and solutions Good control of the No need for large Large flexibility in distributio
Slide 6: Byggma has a rich history characterized by successful acquisitions and product innovations
Byggma has a rich history characterized by successful acquisitions and product innovations Company milestones Revenue (NOKm) Introduction of decorative Introduction of Premium tails design and click Ceiling and Huntonit 2,500 solution on bathroom Proffvegg boards from Fibo-Trespo 12% CAGR since 1998
Slide 7: Byggma is set to continue demonstrated growth through identified growth avenues
Byggma is set to continue demonstrated growth through identified growth avenues Growth initiatives (NOKm) The leading Nordic building M&A solution provider Expand product portfolio, diversify into new segments and Product innovation 3,000 strengthen private labels New product launches and value-adde
Slide 8: Large growth potential for further consolidation within building material products
Large growth potential for further consolidation within building material products Several attractive M&A targets has been identified Breakdown of identified M&A targets (# targets) Byggma M&A strategy and track record Adjacent products include wood By product offering ◼ fibreboards, particle and MD
Slide 9: Investment highlights
Investment highlights ◼ The leading Nordic provider of particle board, decorative interior panels, fibreboards, MDF interior walls & Market leading position ceiling panels, and I-Beams ◼ Growing position in Europe and within adjacent product areas ◼ >90% of revenues in the Nordics Strong underlying
Slide 10: Company
BYGGMA group Company
Slide 11: Leading Nordic presence, with growing international customer base
Leading Nordic presence, with growing international customer base Production facilitites and offices Revenue by country (NOKm) Production and distribution facilities Distribution and offices 2,200 2,052 145 1,783 23 1 Birkeland 45 6 72 2 Braskereidfoss 1,620 1,655 141 3 Fredrikstad 97 119 45 16 5 62
Slide 12: The largest share of Byggma's product offering relates to various boards
The largest share of Byggma‘s product offering relates to various boards Companies / brands Description Revenue (NOKm) 18% ◼ Forestia manufactures particle board and decorative interior panels for the building market and the furniture industry ◼ Huntonit is Norway‘s leading manufacturer of pre-paint
Slide 13: Increasing focus on higher refined products and solutions
Increasing focus on higher refined products and solutions Increasing level of product refinement and customization Building solutions ◼ High quality beams for construction Products for builders‘ merchants and building material chains Processed boards ◼ Boards and Wood products at higher grades of re
Slide 14: Large potential from recent product innovations
Large potential from recent product innovations Walls2Paint Premium Ceiling Proff Vegg Smartpanel Fuktbestandig 2014 2020 2020 2021 ◼ A ready to paint plain ceiling panel ◼ Click-based wall boards Moisture resistant wood fibre boards with a unique 4-sided locking profile ◼ Description ◼ Wood-based,
Slide 15: Targeted approach towards environmentally friendly production and initiatives
Targeted approach towards environmentally friendly production and initiatives 1 Raw material sourcing Byggma utilize sustainable wood raw materials from certificated sources 2 Production line 5 Product recycling Byggma has invested in modern and energy efficient production Byggma’s wood-based produc
Slide 16: Byggma still has ample available production capacity and high growth potential
Byggma still has ample available production capacity and high growth potential from value-added products Company / brand Key financials (2020) Nominal production capacity Available capacity Growth potential Other potential Large potential from Production capacity can transitioning to higher share of
Slide 17: Byggma operates 8 high-end manufacturing and distribution facilities
Byggma operates 8 high-end manufacturing and distribution facilities Huntonit AS Aneta Belysning Location: Vennesla, Agder Location: Växjö, Sweden Total area: 78,112m2 Total area: 31,728m2 Production area: 19,664m2 Warehouse facility: 6,500m2 Year of construction: 1948-1988 Year of construction: 197
Slide 18: 5 facilities are owned and planned to be established under a separate company
5 facilities are owned and planned to be established under a separate company Byggma ASA Byggma intends to create a clearer distinction between the real estate business and the Byggma Eiendom AS industrial business in the group by establishing Byggma Eiendom AS. Set to be resolved in an extraordinar
Slide 19: Experienced management team and organization
Experienced management team and organization Organization by company Geir Drangsland Jens Unhammer CEO CFO 7 40 17 ◼ CEO in Byggma since 2009 and chairman from 2000-2009 CFO in Byggma since 2003 after joining as Finance Manager in ◼ 43 ◼ Currently CEO of Investor AS, main shareholder in Byggma 2000
Slide 20: Market
BYGGMA group Market
Slide 21: Byggma produces and distributes products to two main market segments
Byggma produces and distributes products to two main market segments Large and growing adressable RRE and newbuild market Newbuild construction market, Norway Renovation, remodeling and extenstions (RRE) market, Norway NOKbn NOKbn Residential Commercial Residential Commercial 194 176 179 169 173 167
Slide 22: Norwegians are leading home improvement spenders
Norwegians are leading home improvement spenders… Norwegians have a strong tradition of owning their homes Share of population owning their own homes3) (%) ◼ More than 80% of Norwegians own their own home Norway 84% ◼ As a consequence, no other country spends as much money per capita on home Iceland
Slide 23: …reflected in an increase in the building materials industry
…reflected in an increase in the building materials industry Sales are seasonal, but has been growing consistently for two decades The Norwegian building materials industry is a NOK 50bn market Tools, paint and other building materials (Indexed) 12 month MA Market size (NOKbn) 600 53 500 51 400 337
Slide 24: Financials
BYGGMA group Financials
Slide 25: Strong topline and profitability improvements last few years
Strong topline and profitability improvements last few years Revenue (NOKm) Consolidated EBITDA and EBIT (NOKm) Adj. 7.2% 3.9% 8.1% 4.9% 13.1% 9.4% margin 2,200 2,052 1,783 270 1,619 1,655 1,515 1,433 193 144 119 1 88 65 15 143 73 2018 2019 2020 2015 2016 2017 2018 2019 2020 2021F EBITDA EBIT Normal
Slide 26: Numerous factors positively affecting the 2018 to 2020 revenue growth
Numerous factors postively affecting the 2018 to 2020 revenue growth Revenue bridge, 2018-2020 (NOKm) 2018-2019 revenue growth ◼ Largely driven by full-year effect of the Smart Panel acquisition 26 in 2018 and partly the Byggform acquisition in 2019. 34 NOK 117m in total effect from these acquisitio
Slide 27: Segment financials
Segment financials NOKm Boards Beams Windows Lighting 1,450 1,265 280 293 1,230 214 190 197 95 Revenue 125 75 77 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 Smartpanel normalization 6 163 5 30 26 83 83 EBIT 15 15 (8) 68 (8) (8) (19) 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2
Slide 28: Positive trend continued in Q1 2021
Positive trend continued in Q1 2021 Quarterly revenue (NOKm) Quarterly EBITDA and EBIT EBITDA EBIT 560 548 78 532 70 71 482 491 478 67 466 417 415 58 55 51 51 51 48 43 35 35 36 26 16 13 (4) Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 28
Slide 29: Breakdown of cost of goods sold
Breakdown of cost of goods sold Breakdown of COGS Sensitivity to raw material prices Company Raw material impact Price Net effect to Byggma Forestia has seen a Forestia has increased Net positive normal increase on the prices which more than effect on cost of raw materials offset the cost increases
Slide 30: Robust cash conversion ratio
Robust cash conversion ratio Operating cash flow and cash conversion (NOKm) ◼ Byggma has a history of strong cash flow Cash conversion (%) generation over the last years which is set to 77% continue going forward ◼ This has allowed the company to invest significantly in product innovation in additio
Slide 31: Solid balance sheet
Solid balance sheet NOKm YE 2020 Q1 2021 ◼ Fixed assets mainly comprise real estate Balance sheet items facilities and machinery Fixed assets 964 946 ◼ Majority of the current assets relates to Current assets 1,168 1,175 inventory and accounts receivable in addition to the cash balance of NOK 483m T
Slide 32: Byggma actively working to improve investor relations
Byggma actively working to improve investor relations 1 2 3 4 Byggma to publish quarterly Byggma to hold quarterly Byggma plans to engage an IR Byggma aims to secure additional presentations from Q2 2021 presentations from Q2 2021 representative shortly independent board member 32
Slide 33: Key takeaways
BYGGMA group Key takeaways
Slide 34: Key takeaways
Key takeaways Market leading position Robust underlying market Strong brands and product offering 1 Long history of profitable growth Attractive growth trajectory 34
Slide 35: Appendix
BYGGMA group Appendix
Slide 36: Continuous focus on innovation with several attractive product launches in 2020
Continuous focus on innovation with several attractive product launches in 2020 Huntonit Proff Vegg Forestia Premium Ceiling Click-based wall boards without the need for filler and primer. The boards are A ready to paint plain ceiling panel paintable immediately after installation with a unique 4-si
Slide 37: Byggma's manufacturing and product offering contribute to a more environmentally friendly society
Byggma‘s manufacturing and product offering contribute to a more environmentally friendly society 5.6% 47% The CO2 abatement from Masonite’s I-beam systems use Byggmas board products 47% less raw material compared corresponds to 5.6% of the to massive tree constructions Norway’s total road traffic e
Slide 38: Byggma takes an active role towards sustainability and responsible production
Byggma takes an active role towards sustainability and responsible production Byggma’s main goal is to develop and deliver sustainable solutions based on renewable raw materials and unique competense. Sustainability is, and has always been, a core element in Byggma’s business model and a natural par
Slide 39: Board of directors
Board of directors Terje Gunnulfsen Knut Henning Larsen Hege Aarli Klem Liv Anne Drangsland Holst Chairman Board member Board member Board member ◼ Chairman since 2009 and ◼ Board member since 2020 ◼ Board member since 2016 board member since 2001 ◼ Board member since 2019 ◼ Currently Head of Market
Slide 40: Consolidated income statement
Consolidated income statement NOKm 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 Sales revenue 1,515 1,619 1,655 1,783 2,052 532 560 Other revenue 16 18 22 23 23 7 6 Total revenue 1,531 1,637 1,678 1,807 2,075 539 565 COGS (681) (743) (780) (844) (955) (263) (287) Personnel expenses (374) (387) (405) (42
Slide 41: Consolidated balance sheet
Consolidated balance sheet Assets (NOKm) Q1 2021 Equity and liabilities (NOKm) Q1 2021 Fixed assets 917 Share capital 53 Non-tangible assets 24 Other equity 8 Deferred tax assets 5 Retained earnings 963 Long-term financial derivatives - Total equity 1,024 Other long-term receivables 1 Long-term liab
Slide 42: Consolidated cash flow statement
Consolidated cash flow statement NOKm 2016 2017 2018 2019 2020 Q1 2020 Q1 2021 Operating activities Cash flow from operations 118 205 94 102 230 (56) (8) Interest expense (15) (17) (19) (22) (24) (6) (5) Interest income 6 6 7 7 5 2 1 Taxes paid (19) (13) (28) (9) (4) (4) (3) Cash flow from operating
Slide 43: Net interest-bearing debt per Q1 2021
Net interest-bearing debt per Q1 2021 Net interest-bearing debt (NOKm) 18 119 88 494 575 439 350 27 54 Bank loan Leasing Long-term Bank loan Leasing Total interest- Cash & cash Interest-bearing Net interest- liabilities debt liabilities bearing debt equivalents receivables bearing debt 43
Slide 44: Shareholder overview per 1 June 2021
Shareholder overview per 1 June 2021 Shareholder # shares % ownership Investor AS 1) 47,533,790 68.07% Sørlands-Vekst AS 1) 10,000,000 14.32% Investor 6 AS 1) 4,000,000 5.73% TEG Invest AS 686,320 0.98% Beeline AS 531,760 0.76% Leif Magne Thu 502,210 0.72% Narmont AS 485,640 0.70% Gunnar Bernhard Br
Slide 45: Group structure
Group structure Byggma ASA 100% Masonite Aneta Byggma AS Byggform Forestia AS Smartpanel AS Huntonit AS Uldal AS Scan Lamps AS Beams AS Belysning AB Eiendom AS1 100% 100% RBI Interiör Masonite Scan Lamps Byggma Eiendom Birkeland Huntonit AB AB Beams AB VTA AS Lyngdal AS Eiendom AS Smart Board Rolf D
Slide 46: Subsidiaries of Byggma ASA
Subsidiaries of Byggma ASA Company Acquisition date Headquarter Book value in Byggma1 (NOKm) Aneta Belysning AB 01.01.2005 Växjö, Sweden 27,453 AS Byggform 12.09.2019 Asker 22,744 Birkeland Eiendom AS 03.06.2004 Birkeland 8,354 Byggma Eiendom AS 31.03.2003 Lyngdal 15,250 Forestia AS 01.03.2006 Brask
Slide 47: Byggma at a glance
[Byggma at a glance] www.byggma.no 47