Slide 1: Third quarter of 2024 results
Third quarter of 2024 results CEO Christian Bekken, CFO Marie Danielsson 6 November 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: Improved earnings for downstream
Third quarter 2024: Improved earnings for downstream Signs of recovery in several markets • Positive indicators across markets o Low inflation and reduced interest rates o Signs of improvements, variations across regions • Challenging conditions o Weak upstream results, initiated cost-reductions for
Slide 4: Key figures for the third quarter of 2024
Key figures for the third quarter of 2024 Revenue Adj. EBITDA Adj. EBITDA margin EUR 252 million EUR 23 million 9.2% -5% -4% 0.2 pp Net sales Adj. EBITDA Adj. EBITDA EUR million EUR million Percentage (%) 9.9 % 10.6 % 9.0 % 9.2 % 7.6 % 267 277 253 244 252 29 24 25 23 19 Q323 Q423 Q124 Q224 Q324 Q323
Slide 5: Operational highlights: upstream segments
Third quarter 2024: Operational highlights Upstream segments RAW • Cost reductions, savings of EUR 6 million from 2025 • Ramp-up of volumes from new line • Certified white and grey EPS with recycled material Circular • Best collection quarter this year, ~9 000 tonnes • Increased recycling capacity b
Slide 6: Operational highlights: downstream segments
Third quarter 2024: Operational highlights Downstream segments Insulation & Construction • Recovering markets • Capacity increase of construction boards in Olen, Belgium • Launch of bio-based construction boards Packaging & Components • Increased volumes of EPS fish boxes • HVAC market slowly improv
Slide 7: Merging traded packaging business with STOK
Merging traded packaging business with STOK Expanding customer offering and streamlining core packaging business • Merging traded packaging business with STOK Emballage • Complementary offering and geographies • Strong synergy and growth potential • Strengthened focus on core packaging business • Co
Slide 8: Positioning to accelerate growth
Positioning to accelerate growth Operational, strategic and financial measures in place • Operational measures o Cost reductions and margin management o Working capital optimisation o Low CAPEX for 2024 and 2025 • Strategic partners o Re-allocate capital to accelerate growth in insulation • Financin
Slide 9: 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 Third quarter of 2024 9
Slide 10: Group financials
Third quarter of 2024 Group financials 10
Slide 11: Financial overview for the third quarter of 2024
Financial overview for the third quarter of 2024 Improved earnings in downstream segments Net sales Adj. EBITDA EUR million EUR million (2.6) (5.5) (0.8) (1.3) (4.3) (1.5) 1.3 (0.8) 0.1 (0.2) 266.6 264.0 257.7 256.4 252.1 252.1 24.0 23.1 Q3 2023 RAW I&C P&C Circular Eliminations Q3 2024 Q3 2023 RAW
Slide 12: Financial highlights upstream segments
Third quarter of 2024: Financial highlights upstream segments RAW Circular Net sales Net sales EUR million EUR million • Net sales of EUR 79.2 million • Net sales of EUR 12.3 million 31.3 39.1 o 3% decrease from Q323 o 9% decrease from Q323 26.7 30.2 34.7 o Higher sales prices 2.8 2.9 1.1 2.6 4.3 o
Slide 13: Financial highlights downstream segments
Third quarter of 2024: Financial highlights downstream segments Insulation & Construction Packaging & Components Net sales Net sales EUR million EUR million • Net sales of EUR 107.6 million • Net sales of EUR 92.8 million o 5% decrease from Q323 o In line with Q323 113.1 120.5 107.6 o Higher prices
Slide 14: Financials: consolidated income statement
Financials Consolidated income statement Amounts in EUR million Q3 2024 Q3 2023 9M 2024 9M 2023 2023 Third quarter of 2024 Net Sales 252.1 266.6 773.3 852.6 1 105.3 • Net sales of EUR 252.1 million, down 5% Other operating income - - 7.6 - 1.5 Total operating income 252.1 266.6 780.9 852.6 1 106.8 •
Slide 15: Improved financial flexibility from new receivables financing agreement
Financials Improved financial flexibility from new receivables financing agreement Financed accounts receivables for Cash flow from operations EUR ~40 million Cash flow EUR million • Operating cash flow of EUR 49.1 million (14.2) • Working capital down by EUR 38.3 million 31.2 34.5 25.0 16.8 13.2 7.
Slide 16: Strengthening of financial position a prioritised task
Financials Strengthening of financial position a prioritised task • Available cash and credit EUR ~95 million Leverage: Net debt/ EBITDA ratio(1) • EUR 16 million unutilized available credit facility Acquisition of Jackon, Aislenvas EUR million and Inoplast • Receivables purchase agreement (RPA) • F
Slide 17: Strategy recap and outlook
Third quarter of 2024 Strategy recap and outlook The new circular hub in Norrköping, Sweden, increases EPS recycling capacity by 40% Third quarter of 2024 17
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: Positioning to accelerate growth when market rebounds
Positioning to accelerate growth when market rebounds ✓ Strong market fundamentals ✓ Adjusting cost and capacity ✓ Room for production ramp-up on existing base ✓ Competitive advantage of certified recycled EPS ✓ Strengthening financial position ✓ Clear growth strategy ✓ Growing M&A pipeline Construc
Slide 20: Summary and outlook
Summary and outlook Well-positioned for growth • Slow, but recovering markets • Improved contribution from downstream • Cost reductions initiated in RAW • Strengthened focus on core packaging business • Strong fundamentals and growth opportunities • Positioned to capitalise on higher volumes when ma
Slide 21: Bcw/
Bcw/ for a better everyday