Bewi Asa · OSL:BEWI
Bewi Asa — Q4 2023 Earnings Presentation
24 slides from Bewi Asa's earnings presentation, Feb 15, 2024
Slide 1: Q4 and full year 2023 results
Q4 and full year 2023 results CEO Christian Bekken, CFO Marie Danielsson 15 February 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: While the European building & construction markets collapsed in 2023…
While the European building & construction markets collapsed in 2023… …we saved ~63 million tonnes CO2.. over the lifetime of insulation sold from BEWI in 2023 BEWI has installed solar panels at two facilities in Portugal with a total capacity of more than 1 400 kWp, being able to generate 1 922 MWh
Slide 4: ..and with a vision to protect people and goods for a better everyday
..and with a vision to protect people and goods for a better everyday ..we recycled more used EPS than ANY other insulation company in Europe.. Collecting used EPS at collection station in Nacka, Sweden Fourth quarter of 2023 4
Slide 5: 2023 key figures
2023 key figures 2023: Sales growth from acquisitions Proven ability to adapt, resulting in earnings improvement Revenue Net sales EUR million • Annual sales growth in downstream EUR 1.1 billion segments driven by acquisitions +5% • Successfully reduced cost and capacity to Adj. EBITDA markets, whil
Slide 6: Highlights
Highlights Delivering on key priorities for long-term growth Securing a robust platform for sustainable profitable growth 1 Increasing collection and use of recycled material 2 Capacity and cost optimalisation 3 Integrating acquired companies 4 Capitalising on investments 5 Strengthening financial p
Slide 7: Uniquely positioned to reduce environmental impact
Uniquely positioned to reduce environmental impact ✓ Increase use of recycled material through mass balance approach ✓ Enabled by integrated business and investments in circular capabilities ✓ Provide BEWI with unique competitive advantage Customer BEWI Packaging & Components Fish processor Used fis
Slide 8: Group financials
Fourth quarter and full year 2023 Group financials An innovative insulation solution for pitched roofs, enabling lower CO2 emissions
Slide 9: Financial overview Q4 and full year 2023
Financial overview Q4 and full year 2023 Significant EBITDA improvement for insulation segment Net sales Adj. EBITDA EUR million EUR million (42.9) (5.5) (0.3) 25.4 2.9 (1.8) Q4 2023 275.7 258.2 252.7 24.4 25.1 Q4 2022 Organic Acquisitions Divestments Currency Q4 2023 Q4 2022 Organic Acquisitions Di
Slide 10: Financials
Financials Consolidated P&L Amounts in EUR million Q4 2023 Q4 2022 2023 2022 Fourth quarter of 2023 Net Sales 252.7 275.7 1 105.3 1 050.4 • Net sales of EUR 252.7 million, down 8% Other operating income 1.5 - 1.5 - • EBIT of EUR 5.8 million (-10.7) Total operating income 254.3 275.7 1 106.8 1 050.4
Slide 11: Strong cash flow from operations
Financials Strong cash flow from operations Cash flow from operations Fourth quarter of 2023 EUR million 34.5 • Operating cash flow of EUR 28.8 million (13.2) o Working capital reduction of EUR 27.3 million (3.9) o Higher interest rates and taxes 0.3 1.4 31.2 25.0 16.8 13.2 7.4 26.0 14.2 28.8 -14.2
Slide 12: Executing on key priorities to strengthen financial position
Financials Executing on key priorities to strengthen financial position Leverage: Net debt/ EBITDA ratio(1) • Large acquisitions, combined with downturn in Acquisition of Jackon, Aislenvas markets impacting leverage and ROCE EUR million and Inoplast • Available cash and credit EUR ~94 million • Incl
Slide 13: Segment review
Fourth quarter and full year 2023 Segment review BEWI produces ~25 million fish boxes per year, securing safe transportation of ~2 billion meals
Slide 14: RAW
RAW Increased earnings from acquisition of Jackon, improved efficiency and lower fixed cost Fourth quarter of 2023 • Net sales of EUR 77.4 million, down 12% Net sales Internal sales EUR million o Jackon contributed with EUR 6.4 million External sales o Official EPS raw material prices down by ~12% s
Slide 15: Insulation & Construction
Insulation & Construction Organic growth in EBITDA despite significantly lower activity in the building and construction industry impacting volumes Fourth quarter of 2023 • Net sales of EUR 99.9 million, down 6% Net sales o Q4 seasonally slow EUR million o 22% growth from acquisitions (1.1) (28.9) 2
Slide 16: Packaging & Components
Packaging & Components Increased contribution from automotive business, lower volumes of fish boxes Fourth quarter of 2023 Net sales • Net sales of EUR 94.0 million, down 10% EUR million o 3% growth from acquired companies o Negative organic growth from lower volumes of industrial (8.8) 2.8 (4.4) pr
Slide 17: Circular
Circular Significant increase in use of recycled material. Results impacted by lower prices and volumes Fourth quarter of 2023 • Net sales of EUR 12.1 million, down 20% Net sales Internal sales EUR million o 9% growth from acquisitions External sales o Negative organic growth due to lower volumes an
Slide 18: Strategy recap and outlook
Fourth quarter and full year 2023 Strategy recap and outlook A new 11 000 sqm warehouse for the grocery wholesaler ASKO, built in 2023 outside Trondheim including PIR sandwich wall elements from BEWI 18
Slide 19: 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 20: Strong market fundamentals: climate change
Strong market fundamentals 1 Climate change requires more efficient use of natural resources EU Green Deal - drives decarbonization of energy consumption in EU comes from 40% buildings of existing buildings are not considered 75% energy efficient • Buildings will require energy renovation on a large
Slide 21: Strong market fundamentals: housing shortage
Strong market fundamentals 2 Housing shortage Soft activity in the building and construction industry increase shortage in selected regions Housing shortage (million units)1) Netherlands 0.3 Germany 0.4 UK 1.2 Poland 2.2 1) Kepler Cheveraux Fourth quarter of 2023 21
Slide 22: Ready, set, go!
Ready, set, go! BEWI is uniquely positioned to accelerate growth when the market rebounds ✓ Strong market fundamentals ✓ “Tuned” production footprint and cost structure ✓ Unutilized capacity ✓ Broad product offering ✓ Strengthened balance sheet and cash position ✓ Clear growth strategy and growing M
Slide 23: Outlook
Outlook Well-positioned for growth • Historically challenging markets in 2023 • Demonstrated a strong ability to adapt to shifting conditions • Solid platform for further growth • Confident in strong fundamentals and growth opportunities ahead Fourth quarter of 2023 23
Slide 24: Bcow/
Bcow/ for a better everyday