Slide 1: Results for the fourth quarter of 2021
Results for the fourth quarter of 2021 CEO Christian Bekken, CFO Marie Danielsson 24 February 2022
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: Highlights
Fourth quarter and full year 2021 results Highlights 1
Slide 4: Delivering strong and profitable growth in 2021
Delivering strong and profitable growth in 2021 Solid demand across regions and segments, combined with high M&A activity • Improved volumes and prices in all segments EUR million providing record-high earnings and strong cash flow o Continued challenging conditions for automotive 748 industry 463 3
Slide 5: Financial highlights
Financial highlights Record-high results driven by solid demand Fourth quarter 2021 Full year 2021 • Net sales up by 60%, to EUR 208.2 million • Sales growth of 62% to EUR 748.2 million o 43% organic growth from increased prices and higher volumes in downstream o 41% organic growth from increased vo
Slide 6: EU Taxonomy
EU Taxonomy Identified 49% green revenue 49% • Screening performed to understand economic activities qualifying as contributing substantially to climate change mitigation in line with EU Taxonomy • Eligible activities identified • Manufacturing of energy efficiency equipment for buildings (Insulatio
Slide 7: Acquisition of Jackon Holding
Acquisition of Jackon Holding The most transformative transaction so far in BEWI’s history Transaction summary Complementary footprint and portfolio Facilities • Acceptance of offer from 100% of shareholders in Jackon in BEWI - RAW October BEWI - Downstream • EPS (key material) • EPS • Offer reflect
Slide 8: Acquisition of Belgian insulation company Kemisol
Acquisition of Belgian insulation company Kemisol Strengthening position in market for insulation soutions in Benelux region • Agreement to acquire 100% of Belgian insulation Key figures Kemisol Group company Kemisol Group Amounts in EUR million 2021 2020 %-change • Family-owned company founded in 1
Slide 9: Pro-forma key figures for largest transactions in 2021
Pro-forma key figures for largest transactions in 2021 Combined Net sales 2021 Combined EBITDA 2021 EUR million EUR million 32 6 20 15 398 43 1 198 173 748 109 BEWI Jackon* Synergies IZOBLOK** Kemisol** Combined BEWI Jackon* Synergies IZOBLOK** Kemisol** Combined *Jackon: Norwegian GAAP figures. Con
Slide 10: Key acquisitions confirming strategy
Key acqusitions confirming strategy Main Company geographic Key offering Strategic rationale region Honeycomb/ Denmark/ Protective Broadening product offering BEWI Cellpack Scandinavia packaging Strengthening position within IZOBLOK Europe EPP components Automotive industry Packaging and Jackon Hold
Slide 11: Expanding geographic footprint into Baltics region
Expanding geographic footprint into Baltics region Platform for further growth and circular activities • Announced intention to acquire 100% of Baltic insulation company • Geographic expansion providing foundation for further growth • Platform for circular activities • Company operating facilities f
Slide 12: Financials
Fourth quarter of 2021 Financials 1
Slide 13: Financial overview
Financial overview EUR million ~40% ~34% ~23% RAW Packaging & Components Insulation 26.0 14.0 88.0 49.7 7.5 66.9 15.6 8.7 9.3 38.6 54.6 4.3 36.4 2.1 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4 2021 Gross sales Adj. EBITDA Gross sales Adj. EBITDA Gross s
Slide 14: RAW
RAW Strong results following continued solid demand Fourth quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 92.9 million, up 84% o Increase explained by sales prices 20% 80 26.0 o Slightly lower volumes due to scheduled maintenance 16.8 % 15% 60 • Adj. EBITDA increase to
Slide 15: Packaging & Components
Packaging & Components Organic growth mainly from strong volume increase in Norway Fourth quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 88.0 million, up 61% 20% o 35% organic growth, mainly explained by strong volume growth in Norway, as well as increased 80 volumes fr
Slide 16: Insulation
Insulation Strong demand resulting in improved volumes in all regions Fourth quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 49.7 million, up by 29% o Organic growth of 25% from volume increase in Benelux, and increased sales prices 50 25% 40 19.3 % 20% • Adj. EBITDA of
Slide 17: Circular
Circular Strong demand resulting in improved volumes in all regions Fourth quarter 2021 Net sales and Adj. EBITDA margin EUR million • Net sales of EUR 8.7 million, up by 289% 10 -1.0 % 0% o Increase explained by higher volumes and increased sales prices following significant increase in the virgin
Slide 18: Minority interests
Minority interests Positive contribution from shares in associated companies TOTAL • Shares in associated companies are consolidated into BEWI’s accounts with the value of the owned interest of net profit Production sites 16 Owned interest 34-49% • Consolidated as a net in one line within EBITDA, “S
Slide 19: Consolidated P&L
Financials Consolidated P&L Amounts in EUR million Q4 2021 Q4 2020 2021 2020 Fourth quarter of 2021 Net Sales 208.2 130.2 748.2 462.6 • Net sales up by 60% Total operating income 208.2 130.2 748.2 462.6 o 43% organic growth from higher prices, and increased volumes from downstream, mainly Insulation
Slide 20: Capital structure
Financials Capital structure Leverage: Net debt/ EBITDA ratio(1) • Net debt EUR 196 million/EUR 120 million EUR million • Unutilized credit facility of EUR 80 million • Significantly improved leverage and ROCE • New 5y sustainability bond framework of 2.2 2.6 2.8 3.0 2.9 2.9 2.4 2.7 1.5 2.5 1.8 2.6
Slide 21: Strong cash flow, maintenance CAPEX slightly below 2.5% of sales
Financials Strong Cash flow, maintenance CAPEX slighly below 2.5% of sales EUR million Fourth quarter 2021 • Operating cash flow of EUR 34.5 million (19.9) • CAPEX of EUR 12.2 million (15.1) • EUR 6.3 million related to investment programmes • EUR 5.9 million related to maintenance CAPEX Full Year •
Slide 22: Remaining in position to pay attractive dividends
Remaining in position to pay attractive dividends High and Maintaining dividend capacity while stable executing on organic growth opportunities cash flows and pursuing M&A opportunities Board of directors propose dividend Solid distribution of NOK 1.10 per share, High representing 50% of net profit
Slide 23: Summary and outlook
Fourth quarter of 2021 Summary and 1 outlook
Slide 24: Outlook
Outlook Experiencing stable or strong demand in key markets, and continued high GAP • Experience stable or strong demand in key markets • Challenging market conditions in some end-markets, mainly due to shortage of components and cost inflation • EPS prices expected to remain at high levels, implyin
Slide 25: Set to continue growth journey next five years
Set to continue growth journey next five years >2x ~20% <2.5x 30-50% Adj. EBITDA ROCE1 NIBD/Adj. EBITDA Dividend Through organic growth Increase towards 20% Leverage target Of underlying net profit and acquisitions by 2026 unchanged going forward Fourth quarter 2021 25
Slide 26: Next events
Next events Annual report 2021 27 April 2022 First quarter 2022 20 May 2022
Slide 27: Supporting slides
Supporting slides 1
Slide 28: Acquisition of Jackon Holding
Acquisition of Jackon Holding Two companies complementing each other well Strategic rationale Jackon is a vertically integrated insulation and packing provider • Improve customer share-of-wallet through an improved Jackon is one of Europe’s leading manufacturers of XPS and EPS Growth product portfol
Slide 29: Refinancing to fuel growth
Refinancing to fuel growth Established a Sustainability Linked Finance Framework • Refinancing to fuel growth and pursue attractive opportunities • Established a new framework of up to EUR 250 million o Issuance of EUR 160 million bond loan in September o Issued subsequent bonds of EUR 90 million in