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Annual report

BEWI annual report BEWI annual report 

Contents

Highlights

Who we are

More than 40 years of history

The year in review

Strategic priorities

Strategic highlights

Innovation

Profitable growth

Comments from the CEO

Our business

Integrated business model

Megatrends that drive us

End markets

Our presence

RAW

Insulation & Construction

Packaging & Components

Circular

Key partnerships

ESG performance report

Material ESG topics

Environmental impacts and opportunities

Social impacts and opportunities

Governance

Corporate governance

Risks and risk management

Board of directors

Executive management

Corporate governance

Statement on remuneration

Board of directors’ report

Financial statements

The Group

Parent Company

148

Auditor’s report

160

Alternative Performance Measures

165

Appendix

168

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Who we are

A leading provider of packaging,

components, and insulation

solutions

BEWI is integrated throughout its value chain, from production of raw

materials and end goods to recycling – with an ambition to lead the

change towards a circular economy for its industry. Offering a wide range

of products and solutions from different materials, BEWI aspires to always

offer its customers the most sustainable products and solutions.

Net sales

1 050 EURm

748 EURm in 2021

Adjusted EBITDA

134 EURm

109 EURm in 2021

EPS collection capacity

~38 000

Facilities

Employees

~3 300

~2 100 end of 2021

Including entities acquired in 2022, excluding Aislenvas and Inoplast

Taxonomy eligible

49%

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Our vision

Protecting people

and goods for a better

everyday

Our mission

To create value by offering

sustainable solutions for packaging,

components, and insulation in

innovative and efficient ways.

Strategic priorities

Our three strategic priorities define

our everyday work to fulfil our

mission and strive for our vision.

1. Innovation

2. A circular economy

3. Profitable growth

Sustainability

Sustainability is at the core of

everything we do, our approach

is based on three pillars:

1. Becoming circular

2. Actively engage in partnerships

3. Contribute to an inclusive society

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More than  years of history and a proven track

record of successful M&A integration

2014

1980

1973

Merger with StyroChem

into BEWI Group

BEWI founded by

the Bekken family

focusing on packaging

IP Brabant (Synbra origin)

starts EPS polymerisation

Jackon founded by the

Akselsen and Solgaard

families, focusing on

EPS insulation solutions

1956

Acquisition

SCA packaging

2011–2015

Vertical integration

2016–2018

European expansion

2018

European expansion focused on integrating recycling capacity

2017

Acquisition of Finnish

XPS producer and Swedish

packaging operations

2018

Acquisition of Dutch Synbra,

creating a leading European

integrated EPS producer

Name changed to BEWiSynbra

2019

Launch of recycling

initiative Use-ReUse

2020

Listing on Oslo Børs

Acquisition of recycling

assets and establishment

of Circular Denmark

Acquisition of BEWi Drift

Holding (BDH) reinforcing

position within food packaging

Acquisition of Dutch

recycling company

Launch of the world's

rst 100% recycled EPS

Launch of recycling

initiative Use-ReUse

Entering the UK

market by acquisition

of minority stake in

Jablite Group

Establishment of recycling

company in Portugal

2021

Acquisitions of Honeycomb,

IZOBLOK, Volker Gruppe,

Kemisol and several smaller

trading companies

2022

Acquisitions of Trondhjems

Eskefabrikk, Jablite, Berga

Recycling, BalPol, Jackon,

Aislenvas and Inoplast

Entering French market

by acquisition of minority

stake in 6 facilities

Acquisition of Norwegian

sh box business and Swedish

automotive business

100%

Drift Holding

Launch of Circular,

for recycling and collection

of EPS

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Acquisition of Norwegian paper packaging

company Trondhjems Eskefabrikk

100% owner of UK-based insulation

and packaging company Jablite

Acquisition the recycling platform

company Berga Recycling

Acquisition of Lithuanian insulation

company BalPol

Transformative acquisition of Norwegian

packaging and insulation company Jackon

100% owner

of Inoplast

Acquisition

of Aislenvas

Real estate

divestments

Investment in 2 500 photovoltaic

solar panels in Portugal

Development of new packaging

facility at Jøsnøya, Norway

Investment in a new

recycling hub in Stockholm

Ramp-up of volumes at new fish

box facility at Senja, Norway

The year in review

First quarter Second quarter Third quarter Fourth quarter

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Strategic

priorities

Innovation

BEWI shall innovate in search for more

sustainable materials, products, solutions,

and production processes, aiming at

improving resource efficiency through the

entire value chain and increase the use of

recycled and non-fossil raw materials.

A circular economy

BEWI aims at being the most resource

efficient provider of packaging, components,

and insulation solutions. By managing the

entire value chain, BEWI is committed to

lead the industry’s change towards a circular

economy by closing the loop.

Profitable growth

BEWI shall continue its profitable growth

through organic initiatives and M&A

opportunities focusing on strengthening

its recycling capacity and broadening its

product offering.

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Strategic highlights

Innovation Circular economy Profitable growth

Key achievements



• Expanded portfolio of EPS raw material grades from recy-

cled materials and increased production capacity

• Start of autoclave process for expanded polypropylene (EPP)

raw material production

• Further development of new energy efficient molding

technology for EPS and EPP for packaging and components

• Further development of the ground-breaking product EPS

XIRE®, a close to non-burnable material

• 73% increase in EPS collected for recycling

• Investment in new recycling hub in Stockholm

• Acquisition of Berga Recycling and Inoplast

• RecyClass certification of recyclability and REDcert

certification of locations

• Completed acquisition of seven companies adding close

to EUR 600 million in sales and more than EUR 40 million in

EBITDA

• Ramp-up of volumes at new fish box facility at Senja and

progressed development of new packaging facility at

Jøsnøya/ Hitra

• Investment in several organic growth initiatives

Key priorities

going forward

• Further development of recycled grades and products

• Improve molding energy efficiency in EPS and EPP molding

• Create new sustainable insulation solutions and products

• Further development of extrusion foamed and auto-

clave EPP

• Increase collection of materials for recycling

• Increase use of recycled content in BEWI

• Continued focus on improved resource efficiency

throughout the value chain, including supply chain

• Certification of ISO 14001 and Operation Clean Sweep

for all production facilities

• Continue consolidation within selected industries

• Integrate acquired companies and extract synergies

• Adjust capacity to current market conditions

• Commence production at new packaging facility at Jøsnøya,

Norway, and at new production line for construction boards

in Olen, Belgium

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Innovating to improve resource

efficiency and recyclability

Innovation is one of BEWI’s three strategic priorities. The group is constantly

searching for more sustainable solutions by focusing on the company’s key

principles of the circular economy; improve resource efficiency, ensure recyclability

and reuse, and increase circularity.

Each of BEWI’s business segments has its own R&D

department, overseen by a group function, focusing

on continuous improvements.

R&D in BEWI benefits from the diversified knowl-

edge across segments. Innovation is integrated in

the entire value chain, including searching for, and

increasing the use of complementary and renewable

raw materials and production processes, enhancing

commodity products, developing customised solu-

tions, innovating new products designed for use/

reuse and recycling, as well as improving recycling

processes.

Through the integration with Jackon in October 2022,

further R&D resources, and capabilities, especially in

the field of extruded polystyrene (XPS) and energy

saving solutions for the insulation and construction

sector, were added to the group.

During 2022, RAW further developed new recy-

cled grades and started an autoclave process for

expanded polypropylene (EPP) raw material produc-

tion. New molding technology for polyethylene (PE)

and EPP has been developed in close collaboration

with customers in the Packaging & Components

segment. For segment Insulation & Construction,

the first 100 per cent recycled product series for

foundation solutions, an enrichment of the GreenLine

series, have been launched. Fire resistant insulating

products of EPS, and flooring and roofing systems in

the Netherlands have also been developed further.

Ville Nurminen,

Chief Technology Officer

BEWI ASA

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Consistently delivering

profitable growth

BEWI has demonstrated a strong and profitable

growth. The company has had an average annual

sales growth of 29 per cent since 2018, coming

from both organic growth and the completion of

more than 30 acquisitions since 2014.

In 2022, BEWI completed seven acquisitions,

adding close to EUR 600 million in sales. From

annual reported sales of EUR 748 million in 2021,

the company more than doubled this when

closing off 2022 with annual pro forma sales

of more than EUR 1 500 million, including full

effect of the acquired companies. In addition,

the company’s new fish box facility at Senja

contributed positively to the growth.

20222021202020192018

Net sales 381 430 463 748 1 050

ROCE (%)

11.3%

19.2% 12.6% 10.5% 15.3%

Adj. EBITDA (EURm) 31 52 65 109 134

No. of M&A

transactions 5 3 6 8 7

Net debt /Adj. EBITDA

excl. IFRS 16 3.5x 2.3x 1.6x 1.2x 2.7x

463

29% CAGR

Net sales pro forma

ROCE = Return on average capital employed

Without IFRS 16 effects

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Comments from the CEO

Delivering continued growth and

solid results in challenging markets

In 2022, BEWI continued to deliver solid results and strong growth from organic and

strategic initiatives. We focused steadily on our three strategic priorities: innovation,

circular economy, and profitable growth – all with a vision to protect people and

goods for a better everyday. Our ambition to lead our industry towards a circular

economy is about our dedication to sustainability throughout our value chain, from

innovation to production, and closing the loop through the collection and reuse of

materials.

Volatile raw materials and cost inflation characterised our key markets during 2022

and, consequently, uncertainty relating to further market developments. We will

also remember 2022 as the year when Russia invaded Ukraine and the brutal and

meaningless humanitarian consequences.

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Sustainability is at the core

of everything we do

Sustainability resides at the core of what we do, this

report provides an extensive account of our progress

across our material ESG topics.

Working to achieve a circular value chain and provide

our customers with sustainable solutions have long

been a top priority. Since 2014, one of our tenets has

been “Less is more”, committing us to continuously

strive for resource efficiency. We create more for

less through innovations and smart and reusable

products.

While we are pleased with the progress in 2022, we

also admit that there are yet challenges ahead. In

the past years, we have put a lot of resources into

improved reporting systems for the sustainability

work, enabling an even more targeted approach for

our efforts as we advance. For example, we are very

pleased with the efforts to increase the collection of

waste for recycling, resulting in an improvement of

73 per cent since 2021. On the other hand, we are not

pleased with the volumes of recycled material used by

our downstream units. Therefore, measures have been

implemented, and we foresee a considerable improve-

ment throughout 2023.

Growth for all segments

For 2022, BEWI reported net sales of 1 050 million

euro, an increase of 40 per cent from 2021, of which

17 per cent was organic growth. We posted an

adjusted EBITDA of 134 million euro, representing 23

per cent growth, of which approximately half was

organic. All our four operating segments reported

considerable growth in sales over the previous year.

However, as we completed a high number of acquisi-

tions in 2022, the reported financials only tell one part

of the story. From annual reported sales of 748 million

euro in 2021, we closed 2022 with annual pro forma

sales of more than 1 500 million euro, including full

effect of seven acquired companies. Needless to say,

we are currently focusing on seamless integration of

these entities.

Profitable growth is a key strategic priority in BEWI.

We continuously invest in organic growth initiatives,

either in close collaboration with our customers or

because we see specific market opportunities.

Examples include:

• A new extruder at the raw material facility in

Etten-Leur, the Netherlands, to increase the uptake

of recycled raw materials

• A new fish box facility at Senja, Norway, under a

long-term supply agreement with our customer

Salmar

• Development of a new packaging facility at

Jøsnøya, Norway, under a long-term supply agree-

ment with our customer Mowi

• Investment in a new fish box facility at Iceland

through a joint venture

• Investment in a new production line for construc-

tion boards in Olen, Belgium

• Investment in a new production line for foundation

systems in Skövde, Sweden

In addition to the organic initiatives, we believe in

consolidation within selected industries. The seven

acquisitions completed contributed to strengthening

business segments. We expanded into the UK, the

Baltics, Germany, and Spain. We broadened our

product offering, and significantly strengthened our

market positions. And we further developed our

recycling platform. All in line with our communicated

M&A priorities.

In October last year, we could finally complete the

acquisition of Jackon, a transaction we consider

transformative. We strongly believe in the benefits

from the combination of Jackon and BEWI, including

Working to achieve a

circular value chain and

providing our customers

with sustainable solutions

have long been our top

priority. Since 2014, one of

our tenets has been “Less

is more”, committing us

to continuously strive for

resource efficiency.

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knowledge-sharing and introduction of strong

brands in new markets, in addition to the significant

synergies we have communicated.

Well positioned for further growth

Our integrated and diversified business model

exposes us to many end markets and geographies.

With mixed market developments and volatile

raw material prices, profitability will naturally shift

between segments and regions, enabling stable

earnings on group level.

Following recent acquisitions, approximately 60 per

cent of BEWI’s business is exposed to the building

and construction industry. This industry has shown

reduced activity since last summer, especially in

the Nordics, impacting volumes for segment RAW

and Insulation. However, our acquisitions prove our

confidence in the long-term potential for insulation

solutions, supported by strong underlying funda-

mentals, including the need to improve energy

efficiency in buildings and related regulations.

The demand for food packaging, accounting for

approximately 20 per cent of our business, remains

stable, and we notice strong demand for HVAC

solutions. For sales to the automotive industry, we

experience clear signs of improvement.

Our key priorities going forward are, as previously

communicated, to integrate acquired companies and

extract synergies, as well as adjusting capacity and

cost levels to the current market conditions. We also

remain committed to our strategic priorities.

BEWI’s business model, including the diversified

exposure, makes us well positioned in the current

markets. Backed by a strong organisation and a solid

financial platform, we expect robust results, enabling

us to continue to pursue attractive growth

opportunities.

Finally, I am once again proud to see the results

delivered by the organisation through 2022, and I

would like to express my gratitude to each of our

employees for their dedicated efforts. I would also

take the opportunity to thank all partners, customers,

and shareholders for their trust and support during

2022.

Christian Bekken, CEO

Set to continue growth journey next five years

>2x

Adj. EBITDA

Through organic growth

and acquisitions 2021-2026

~20%

ROCE

Increase towards

20 per cent

<2.5x

NIBD/Adj. EBITDA

Leverage target unchanged

going forward

30-50%

Dividend

Of underlying

net profit

BEWI’s business model,

including the diversified

exposure, makes us

well positioned in the

current markets.

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Our business

Integrated and

diversified business

model enables

robust earnings

BEWI has an integrated business model,

meaning that the group manages the

entire value chain, from production of raw

materials and end products to collection

and recycling of used products.

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RAW

Production of raw materials, including white

and grey expanded polystyrene (EPS), general

purpose polystyrene (GPPS), and BioFoam, made

from organic materials.

Insulation & Construction (I&C)

Manufacturing of an extensive range of solutions

for insulation and infrastructure, as well as systems

for the building and construction industry.

The integrated model has for many years provided the group

with stable earnings, as volatility in raw material prices affects the

group’s upstream and downstream business units the opposite

way. Increasing raw material prices benefit segment RAW, while

putting pressure on margins in the downstream units, and

consequently the opposite impacts from decreasing raw material

prices. In addition to being diversified across segments, the group

is diversified across regions and end markets.

Packaging & Components (P&C)

Manufacturing of standard and customised solu-

tions for many industrial sectors, including boxes

for transportation of fish and other foods, protec-

tive packaging for fine goods, as well as technical

and automotive components.

Circular

Collection and recycling of used material, includ-

ing initiatives to raise knowledge and awareness

about recycling, and waste management.

Diversied across segments

RAW

26%

Insulation

32%

P&C

36%

Circular

Operating segments

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BEWI RAW

Production of EPS located in Finland,

Germany, and the Netherlands

Raw material bought externally

100% sourced from Europe

End consumerBEWI CIRCULAR

Collection of solid waste

for recycling

BEWI CIRCULAR

Mechanical recycling

Use

Reuse

BEWI DOWNSTREAM

BEWI has

67 production facilities

External raw material customers 95% located in Europe

ENDMARKET EXPOSURE END OF 2022

Building and construction ~60%

Food packaging ~20%

Other incl. HVAC ~15%

Automotive ~5%

Solid waste management

Styrene and polystyrene

80% of raw material

used are sourced

from Europe

Renewable feedstock

100% sourced

from Thailand

(BONSUCRO certied)

Extensive industry knowledge in

the search of increased resource

efficiency throughout the value chain

Operating throughout the value chain provides

BEWI with several benefits, in addition to the

stable earnings.

The company’s R&D work is integrated

in all parts of the value chain. However,

innovation often starts in the upstream

segment RAW, based on knowledge sharing

across segments, originating from close

and long-withstanding customer relations

in the downstream units. This includes

utilising industry experience to developing

specialised products and innovating new,

resource efficient and circular solutions.

The integrated model is also crucial, and

a competitive advantage to BEWI, in

becoming a circular company.

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Megatrends that drive us

1.5°C

Politics and regulations

accelerate sustainability

MEGATREND

Climate change Eating habits Globalization

– localisation

Shortage of

labour

Digitalization Urbanization Electric vehicles

ASPECT

• Energy supply

• Transportation

• Seafood

• Waste awareness

• Supply chain control

• Reduce

transportation

• Automatization

• Production process

• Solution provider

• ERP platform

• Infrastructure

• E-commerce

• Shortage of

residentials and

logistic facilities

• Reduce weight

• Increase insulation

BEWI

EXPOSURE

• HVAC

• Insulation

• Circular/Raw

• Food packaging

• Seafood packaging

• Logistics

• Production footprint

• Prefabrication to

construction sites

• Automatization

• Packaging for

e-commerce

• Prefabrication

• Paper packaging

• New buildings and

renovation

• EPP content in EV’s

• Li-ion packaging

solutions

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BEWI serves a wide range

of end markets

Materials used by BEWI in its downstream production have uniqe properties,

such as being light and moisture resistant, and have thermal and shock absorbing

properties, making them suitable for a range of different applications across end

markets.

Building and construction

Insulation of buildings is a cost-efficient way of

improving energy efficiency, and thus reduce

greenhouse gas emissions. BEWI’s insulation solutions

are mainly manufactured from EPS, XPS or PIR. In

addition, the group offers a range of traded, com-

plementary products. The product portfolio covers

insulating boards and building systems for founda-

tions, walls, and roofs.

Food

The fish farming industry uses boxes made from

expanded polystyrene (EPS) for transporting fresh

fish in unbroken refrigeration chains. The boxes are

light, watertight, and hygienic. EPS boxes are also

used by the dairy and meat industries for packing

and transportation. Because of the excellent thermal

insulation and shock-absorbing properties, EPS boxes

reduce food waste. BEWI also offers a wide range

of other packaging products to the food industry,

including reusable plastic boxes, cartons, bags from

different materials, film, tray, bowls, pallets, packing

machines and so on.

Diversied across end markets

Food

packaging

~20%

Automotive

~5%

Building &

construction

~60%

Other

incl. HVAC ~15%

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Pharmaceutical

EPS and expanded polypropylene (EPP) are highly

functional packaging materials for pharmaceuticals.

They keep temperatures stable and are shock-

absorbent.

E-commerce

E-commerce puts high demands on safe and sustain-

able flows. By controlling the production chain, BEWI

provides a wide and diversified range of packing

solutions customized for individual needs.

Renovation

BEWI’s solutions for renovation are manufactured

mainly from EPS and XPS. The products are used both

outside and inside buildings, at walls, facades, roofs,

floors/ foundations, bathrooms, and basements.

Residential housing

Technical components made of EPS and EPP are

integrated parts of products for heating, ventilation,

and air conditioning (HVAC).

Infrastructure

EPS and XPS play an important role as filling material

for road banks and thermal insulation for concrete

foundations, tunnels, and railroads. Its wide use is due

partly to the stability it provides, and the fact that it

makes building more efficient, thanks to its insulating

properties.

Automotive

Vehicles carry a large amount of integrated technical

components, many consisting of EPS and EPP.

Components of these materials are capturing market

share from other types of material because of their

thermal insulating and noise reducing properties,

in addition of being light and therefore entail less

weight in the final products.

~50 000 tanks

produced annually contain

BEWI’s insulating components

~3 million vehicles

produced in 2022 include

automotive EPP components from

BEWI, for excellent protection and

safer journeys

BEWI produced 25 million

fish boxes in 2022, securing

safe transportation of

~2 billion meals

and reduced food waste

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Diversified across regions

Broad European foothold with

strong local presence

BEWI has 67 production facilities across Europe, in

addition to 13 jointly owned facilities. The company

is exposed to a range of industries and geographies,

enabling a broad coverage and a strong local presence.

Proximity to customers results in less transport and a

reduced carbon footprint.

Facilities

3x Upstream facilities

57x Downstream facilities

7x Circular facilities

13x Jointly owned facilities

Norway 18%

Finland 5%

Portugal & Spain 7%

Poland 5%

UK 5%

France 3%

Iceland 2%

Belgium 4%

Baltics 3%

Other 9%

Netherlands 15%

Denmark 7%

Sweden 7%

Germany 10%

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RAW

Investing to increase use of recycled material

The RAW segment develops and produces white and grey expanded polystyrene

(EPS), including various grades of recycled EPS (general purpose polystyrene (GPPS)),

as well as Biofoam, a fully bio-based particle foam. After expanding and extruding

the EPS material, also known as EPS beads or styrofoam, the material can be

moulded or otherwise processed into several different end products and areas of

application.

BEWI produces raw material at three facilities located in Porvoo in Finland, EttenLeur

in the Netherlands, and, following the integration of Jackon, Wismar in Germany.

The total EPS capacity is approximately 280 000 tonnes, of which approximately

50 per cent of the raw material is sold externally, and 50 per cent is sold to BEWI’s

downstream facilities, also including facilities owned through minority interests.

26%

of net sales

41%

of total adj. EBITDA

Based on net sales from external customers

Based on total adj. EBITDA for operating segments

3 facilities in 3 countries

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Key achievements 

• Well managed raw material shortages

• Successful implementation of new ERP

system

• Development project for new extruder in

Etten-Leur, the Netherlands, to increase

capacity of recycled EPS raw material

Key priorities going forward

• Maintain ~50/50 balance between external

and internal sales

• Successful start-up of new extruder in Etten-

Leur to facilitate uptake of recycled material

• Commercialise RedCert mass balance grades

• Integration of raw material production

business of BEWI and Jackon

Innovation has a high priority in the segment, and

RAW has a proven ability to develop new applications

as well as designing new products.

In 2022, BEWI invested in a new extrusion line at

its RAW production facility in Etten-Leur in the

Netherlands. Production is expected to start in

the second half of 2023, which will increase BEWI’s

production capacity of recycled material and grey

EPS by approximately 25 000 tonnes. The investment

demonstrates the company’s dedication to close the

loop and reach its ambitious targets for recycling.

The extruder will facilitate the uptake of recycled

polystyrene (PS) provided by Circular and enable a

higher uptake of recycled material in BEWI’s down-

stream units, while at the same time contribute to

reduce the company’s greenhouse gas emissions

by replacing virgin fossil based raw materials with

recycled raw materials.

2022202120202019

206.7

191.2

347.9

418.0

Net sales

Million EUR

2022202120202019

5.0

9.4

54.1

57.0

Adj. EBITDA

Million EUR

Alan Moss, EVP and Head of RAW

Alan Moss has been with BEWI since 2007,

holding positions as business unit controller and

finance manager for the RAW segment, and

was appointed managing director for the RAW

segment in 2019. Prior to joining BEWI, Moss

held various finance positions at, among others,

the Dutch companies SGS and Vanbreda Risk &

Benefits.

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32%

of net sales

22%

of total adj. EBITDA

Insulation & Construction (I&C)

Insulating to reduce energy consumption

The Insulation & Construction (I&C) segment develops and manufactures

an extensive range of insulating solutions and systems for the building and

construction industry, as well as infrastructure projects, including foundations,

walls, roofs, and ceilings. The solutions are mainly composed of expanded

polystyrene (EPS), extruded polystyrene (XPS), and polyisocyanurate (PIR).

BEWI’s solutions have excellent insulation properties and is therefore contributing

to improve energy efficiency of buildings in Europe, meaning reducing energy

consumption and greenhouse gas emissions. This is also why many of the

insulation solutions are taxonomy eligible.

Based on net sales from external customers

Based on total adj. EBITDA for operating segments

39 facilities in 12 countries

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Key achievements 

• Geographic expansion, broadened offering,

and strengthened market positions through

acquisitions of Jackon, BalPol, Jablite, and

Aislenvas

• Introduction of new and innovative solu-

tions, such as prefabricated elements

• Increased sales of products with recycled

content

Key priorities going forward

• Integrate acquired companies, and secure

best practice and cross border initiatives

• Adjust capacity to market conditions with

continued focus on cost control and quality

in all deliveries

• Increase sales of solutions/systems, prefabri-

cated elements, and use of recycled material

• Successful start-up of new production lines

in Olen and Skövde

Some examples of product categories are thermal

insulation boards, building systems, sandwich panels

for walls, roof- and facade solutions, construction

boards for wet rooms, and solutions such as radon

barriers and underlayment. The products are

known by the brand names Jackodur, Jackofoam,

Thermomur, UniPIR, SlimFix, Jackoboard and Tuplex,

and many more. Following the launch of the product

series GreenLine, including various grades of recycled

content, the interest and demand for more sustaina-

ble solutions has increased.

In 2022, BEWI acquired Jablite, BalPol, Jackon, and

Aislenvas, all within the I&C segment, expanding into

the UK, the Baltics and Spain, as well as broadening

its product offering, and significantly strengthen-

ing its market positions in selected geographies.

Following the acquisitions, approximately 60 per cent

of the company’s total business is exposed to the

building and construction industry, including exter-

nal sales from RAW.

BEWI is investing in one new production line for

construction boards in Olen, Belgium, and one for

foundation systems in Skövde, Sweden. The new

lines are expected to commence operations in

second half of 2023.

2022202120202019

139.3

146.6

195.4

333.9

Net sales

Million EUR

2022202120202019

22.3

26.5

21.6

31.1

Adj. EBITDA

Million EUR

Karl Erik Olesen, EVP and Head

of Insulation & Construction

Karl Erik Olesen became part of BEWI in 2014 and

has been managing director for BEWI Denmark

since 2017. Olesen was appointed EVP and Head

of Insulation & Construction in 2022. Prior to BEWI,

Olesen worked for SCA Packaging and DS Smith,

which BEWI acquired in 2014, since 1998.

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36%

of net sales

35%

of total adj. EBITDA

Packaging & Components (P&C)

Protecting food and fine goods to reduce waste

Packaging & Components (P&C) develops and manufactures standard and customised

packaging solutions, as well as technical and automotive components for customers

in many industrial sectors. The solutions are composed of a variety of materials,

including expanded polystyrene (EPS), expanded polypropylene (EPP), fabricated

foam, cardboard, as well as other materials, enabling a broad and complementary

product offering.

Examples include boxes and bags for transportation of fresh fish and other food,

protective packaging for pharmaceuticals and electronics, and components for

heating, ventilation, and air-condition systems (HVAC) and other technical installations.

Based on net sales from external customers

Based on total adj. EBITDA for operating segments

35 facilities in 9 countries

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Key achievements 

• Broadened offering through acquisition of

Trondhjems Eskefabrikk (paper packaging),

and the Styropack packaging business in UK

• Integration of seven packaging facilities

acquired with Jackon

• Ramped up volumes at new fish box facility

at Senja and secured long-term customer

agreement for new packaging facility at

Jøsnøya

Key priorities going forward

• Broaden offering within complementary

materials

• Secure strong position in high growth

markets, such as HVAC and electrical vehicles

• Increase content of recycled material in

applications

• Successful start-up of new packaging facility

at Jøsnøya, Norway

BEWI is one of the world’s largest suppliers of fish

boxes, supplying the salmon farming industry in

Norway, the world’s largest exporter of fresh salmon,

and the industry for wild caught fish in Portugal.

In 2022, BEWI acquired the Norwegian paper pack-

aging company Trondhjems Eskefabrikk, broadening

its offering within complementary non-fossil pack-

aging solutions. Further, through the acquisitions of

UK-based Jablite and Jackon, BEWI expanded into

new regions and strengthened its market positions.

In late 2021, BEWI completed the development of

a new fish box facility at Senja, Norway, under long

term supply agreement with its customer SalMar.

Volumes at the facility ramped up throughout 2022,

positively contributing to the group’s results. In

addition, the group holds a minority interest in a new

fish box facility completed at Iceland in 2022 and

is investing in a new packaging facility at Jøsnøya,

Norway, under long-term supply agreement with its

customer Mowi. The latter is expected to start opera-

tions in second half of 2023.

100

150

200

250

300

350

400

2022202120202019

157.6

179.9

295.6

391.9

Net sales

Million EUR

2022202120202019

28.9

34.1

40.3

48.3

Adj. EBITDA

Million EUR

Stein Inge Liasjø, EVP and Head of

Packaging & Components

Stein Inge Liasjø joined BEWI in 2021 as managing

director for the Norwegian operations and was

appointed EVP and Head of Packaging & Components

in 2022. Liasjø has previously held leading positions

within management, finance, and business

development at European industrial companies, such as

Aker Solutions and Enova. Liasjø has held several board

positions, including Aker Engineering & Technology

(Shanghai) Co. Ltd., Ren Røros, IT-Nor and Biek.

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Circular

Giving new life to used materials

Circular is responsible for increasing the group’s collection and recycling of

EPS, aiming at making BEWI a fully circular company. Circular offers different

solutions for waste management and collection of used material, as well as

offering a range of recycled materials.

Since the establishment of the business unit in 2018, Circular has launched several

initiatives, increasing the group’s collection and recycling capacity. In 2022, BEWI

collected close to 33 000 tonnes of EPS for recycling, and had a collection run-rate

at year end of approximately 38 000 tonnes.

of net sales

of total adj. EBITDA

Based on net sales from external customers

Based on total adj. EBITDA for operating segments

7 facilities in 4 countries

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Key achievements 

• Increased collection of EPS for recycling

by 73%

• Significantly strengthened circular platform

and capacity through acquisitions of Berga

Recycling and Inoplast

• Development project to increase reprocess-

ing capacity

Key priorities going forward

• Continue consolidation within the frag-

mented market for recycling

• Increase volumes of collected material

through control of waste streams

• Develop product certifications

BEWI has announced an annual target of collecting

60 000 tonnes of EPS for recycling by the end of 2026.

The number refers to approximately the volume BEWI

puts into the end markets with a lifetime less than

one year. The remaining volume is used in products

with a lifetime of more than one year, i.e., thermal

insulation in buildings and infrastructure projects,

bike helmets, car components and similar.

The acquisition of the circular platform - and trading

company Berga Recycling in June 2022 significantly

strengthened the platform for BEWI Circular by

granting greater access to waste streams. The compa-

ny’s collection and reprocessing capacity was further

strengthened through the acquisition of the Czech

company Inoplast in December 2022.

2022202120202019

2.5

6.3

24.0

63.1

Net sales

Million EUR

2022202120202019

-0.9

-1.2

0.6

2.5

Adj. EBITDA

Million EUR

Henrik Ekvall, EVP and Head of Circular

Henrik Ekvall joined BEWI in 2020 as managing

director of Circular. Prior to this, he has held leading

positions at international companies in the oil and

gas industry, such as Statoil and Nynas, mainly within

finance and business controlling.

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Key partnerships

The transition towards a circular economy requires a systematic shift, fundamentally rethinking the way products are produced and used. Working in partnerships is therefore

of crucial importance to build necessary infrastructures and alliances to accelerate the transition to a circular economy and an inclusive society.

These are BEWI’s key partnerships:

The association for European

manufactures of Expanded Polystyrene

The association for European Manufacturers of

Expanded Polystyrene (EUMEPS) is the voice of the

Expanded Polystyrene (EPS) industry. Representing

23 national associations in Europe, EUMEPS’ activities

focus on two main market segments: Construction

and Packaging. The association is committed to

sustainability and have joined forces to reach the

ambitious European recycling targets by 2025.

European Plastic Pact

BEWI was one of the first signatories of the European

Plastic Pact. The European Plastic Pact is a public-pri-

vate coalition that forms a European network of

governments and frontrunners from across the whole

value chain. The aim of the pact is to set ambitious

objectives and to encourage cooperation, innovation,

and harmonisation at the European level to bring

about a truly circular European plastics economy.

The Pact works together towards four goals aimed at

improving recyclability and reusability, responsible use,

recycling capacity and the use of recycled content.

Operation Clean Sweep

To demonstrate the company’s commitment to a

clean environment BEWI is a partner in the interna-

tional Operation Clean Sweep (OCS) initiative and have

signed the Pledge to prevent Plastic Resin Loss from

the company’s production facilities. The commitment

imposes all production facilities to identify high

pollution risk areas and to mitigate risks through good

housekeeping and pellets containment practices to

work towards achieving zero pellet loss. As a partner in

OCS, BEWI is obligated to implement and comply with

the OCS standard and to conduct annual site audits.

The Polystyrene Loop Cooperative

The PolyStyreneLoop Cooperative is set up to

demonstrate the feasibility of a large-scale demo

plant as a closed-loop solution for the recycling of

polystyrene (PS), insulation from waste and the recov-

ery of bromine. The planned demonstration plant in

Terneuzen, Netherlands, will work with the CreaSolv®

Technology. The technology is a development of

Fraunhofer Institute and CreaCycle GmbH.

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ESG performance

report 

A circular economy and

an inclusive society

ABOUT THIS REPORT This report has been prepared with reference to the

Global Reporting Initiative (GRI) Standards (2021). The report covers the

company’s most significant impacts on economy, environment, and people,

including impacts on human rights and how BEWI ASA manage these

impacts for the calendar year 2022. The report aligns with the company’s

financial reporting period. Companies where BEWI has a majority share-

holding are included within the scope of the report. Companies acquired

during 2022 (except from Berga Recycling Inc) are not included but

will be included in the report for 2023. This applies to the following

companies: Trondhjems Eskefabrikk AS, Jablite Group Ltd, UAB Baltijos

Polistirenas (BalPol), Jackon Holding AS, Aislamientos y Envases, S.L.

(Aislenvas), and Inoplast s.r.o.

This report is BEWI’s Communication of Progress (COP) to demon-

strate its commitment to the United Nations Global Compact, the

Norwegian Transparency Act, and the EU Taxonomy.

WE SUPPORT

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ENVIRONMENT

• 73% increase in EPS collected

for recycling

• 15% reduction in waste

generation

• 78% reduction in waste sent

to landfill

• 31% increase in waste used

for recycling

• 21% reduction in scope 2

GHG emissions

SOCIAL

• 61% of employees have a

development plan

• 65% of procurement spent

assessed for ESG criteria

• 82 community engagement

projects

GOVERNANCE

• 100% completion of anti-

corruption training

Key achievements in 

43 000 tonnes CO

saved

through the collection of EPS for recycling – equivalent to average annual emissions

for 7 000 persons

Compared to 2021.

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Material ESG topics

BEWI’s double materiality assessment resulted in eight material topics with an external and internal impact.

ENVIRONMENT

Climate change mitigation

The majority of BEWI’s raw materials are based on petrochemicals, which contribute significantly to the

company’s GHG emissions. To mitigate climate change, the company works actively with all parts of its

value chain, including its suppliers, to achieve improved resource efficiency and, in particular, reduction of

emissions.

Climate change adaptation

The impacts and consequences of climate change present risks and opportunities to BEWI. To manage

these risks and opportunities, BEWI is in the process of integrating the management of climate risks into

the company’s daily operation in line with the Task Force on Climate-related Financial Disclosures (TCFD)

recommendations.

Resource efficiency and circularity

BEWI produces plastic-based products. In a linear economy, these products contribute to greenhouse gas

(GHG) emissions and if improperly managed after use, negative impacts on the environment. Embracing

the model of a circular economy enables the company to reduce transition risks by increasing resource

efficiency, reducing GHG emissions, and providing the market with more sustainable solutions.

Biodiversity and ecosystems

BEWI’s production facilities can impact local ecosystems through the pollution of microplastic if materials

are not managed properly. BEWI is committed to preventing such negative impacts through the company’s

commitment to Operation Clean Sweep and to promoting biodiversity that ensures resilient ecosystems

that deliver vital ecosystem services.

SOCIAL

Working conditions

BEWI’s employees are the company’s most valuable resource. Ensuring safe working conditions for the

employees and creating a culture where employees can grow and reach their full potential is a priority for

the company.

Human rights

BEWI is exposed to human rights issues, by operating across different geographical regions and by having

a global supply chain. Assessing the company’s own operations and supply chain has a high priority.

Local communities

BEWI is operating across different regions and is present in many local communities. The company is

committed to mitigate negative impacts especially concerning the migration of microplastics, to have a

good dialogue with neighbours, and to actively engage in the communities where it operates.

GOVERNANCE

Ethical business conduct

BEWI has a global supply chain and unethical business risks are present in all countries and sectors where

the company operates. To prevent corruption and other unethical practices, BEWI is committed to meet

the highest ethical standards when conducting its business and to work actively with its value chain in

such regard.

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Identification of material topics

BEWI’s operations influence a diverse group of stakeholders. Engagement with key

stakeholders is essential to address critical issues and the management of risks and

opportunities.

Identifying key ESG topics

To ensure that BEWI identifies the most important

ESG topics, the company undertakes a double

materiality assessment annually in accordance with

GRI standards (2021). The assessment identifies the

company’s most significant impacts on the economy,

environment, and people, including impacts on

human rights.

The 2022 assessment was also conducted in accord-

ance with the proposed European Sustainability

Reporting Standard (ESRS). Potential material topics

were identified by using the sector standards, a

desktop review of relevant competitors, academic

literature, media reports, reporting standards, regu-

lations and engagement with key stakeholders and

experts.

BEWI identified eight prioritised stakeholder groups:

suppliers, customers, non-governmental organisa-

tions, employees, authorities, local communities,

the industry, shareholders, and other investors. The

stakeholders were asked to consider BEWI’s impact

on climate, the environment, society, and the

economy (external impact). Additionally, they were

asked to consider how changes to market conditions

caused by ESG issues could impact BEWI’s enterprise

value (internal impact). To ensure that stakeholders’

views were included in the analysis, the findings from

the interviews were presented and calibrated in a

workshop with BEWI’s Director of Sustainability, Chief

Human Resources Officer, and Chief Legal Officer. The

significance (likelihood and severity) of each impact

was rated by experts and stakeholders in conjunction

with executive management to inform financial value

creation.

Authorities

Shareholders

& creditors

Suppliers

Employees

Customers

Local

communities

NGOs

The industry

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The assessment resulted in three additional topics

being considered material: (1) local communities, (2)

climate change adaptation and (3) biodiversity and

ecosystems. Further, already identified material topics

were re-phrased to be more specific with regards to

the value drivers for BEWI and its stakeholders.

• Environment: Climate change was replaced by

climate change mitigation and climate change

adaptation to emphasise the importance of the

work to reduce the company’s greenhouse gas

emissions and to mitigate the company’s risks

related to climate change adaptation. Circular

economy was rephrased to resource efficiency and

circularity and extended to include the topic of

energy scarcity. Biodiversity and ecosystems was

added as a new material topic.

• Social: Health and safety was rephrased to

working conditions and entails talent attrac-

tion and retention, diversity in workplace and

employee work-life balance. Supply chain man-

agement was rephrased to human rights. This

update reflects in a better way the ongoing work

regarding human rights both internally in BEWI

and in the company’s supply chain and business

relationships. Local communities were added as a

new material topic, due to the potential negative

impact that microplastic pollution from the com-

pany’s production facilities might have on local

communities.

• Governance: Governance originally included

corruption and was rephrased to ethical business

conduct, which also includes anti-competitive

practices and unethical business conduct in the

supply chain.

Going forward, BEWI will strengthen the double

materiality assessment giving more emphasis on

financial materiality to align the assessment with

the proposed European Sustainability Reporting

Standard.

The full report of the materiality assessment for 2022

can be found on BEWI’s corporate website.

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Management of material topics

BEWI’s approach to ESG is based on a continuous assessment of material topics to

BEWI and its stakeholders. Identified material topics are addressed throughout the

organization, to mitigate risks and explore opportunities.

Governance

The board of directors has the highest responsibility

to oversee the integrity of the work with ESG, while

the management sets the strategic direction and

monitors progress towards the targets. Within the

management team, the director of sustainability

together with the Chief human resources officer

(CHRO) and the Chief legal officer (CLO), are responsi-

ble for the company’s ESG work, whereas the director

of sustainability is responsible for the daily coordi-

nation and follow up across the group. Local units

have sustainability- and human resource managers

responsible for compliance with group sustainability

strategy and policies.

Governing documents

BEWI’s policies and procedures inform how the

group, and its business partners shall conduct busi-

ness. BEWI is in the process of developing a policy

and a management approach for material topics that

will govern the way BEWI manages each topic. The

board of directors has the overall responsibility for

compliance and governing documents, while man-

agement has the day-to-day responsibility for the

company’s conduct and monitoring of progress.

Sustainability strategy

BEWI is committed to lead the industry’s way towards

a circular economy and an inclusive society. The com-

pany’s sustainability strategy outlines its commitment

towards 2030 and is integrated in the organization

with clear targets and action plans. The targets are

reported and monitored on a monthly and annual

basis. See progress report in appendix.

Integrating and monitoring of material topics

The board of directors approves the annual materi-

ality assessment. The result from the assessment is

consequently developed and anchored in the opera-

tional management team (OMT) to ensure a common

understanding of key challenges and opportunities,

BEWIs governing documents

• Code of Conduct

• Sustainability strategy

• Human resource policy

• GDPR policy

• Anti-corruption policy

• Competition law policy

Mapping material

topics

Evaluate and

revise

Report Integrate in Operational

Management Team

Approved by

Board of Directors

Prioritise

material topics

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targets and key performance indicators, agreement

on specific actions with clearly assigned respon-

sibilities and ensuring appropriate training and

communication throughout the organization. The

company reports on a monthly and an annual basis

to ensure progress and compliance with the targets

and strategic direction.

Sharing knowledge and experience

To increase awareness of, and to ensure compliance

with, policies and the management approach,

courses are held throughout the organisation.

Managers within sustainability and human resources

conduct monthly meetings to share experience, and

to discuss common opportunities and challenges.

Ensuring compliance

BEWI works to ensure compliance with any prevail-

ing legislation and applies recognised norms and

standards relevant for the scope of work, regardless

of geographic location. Compliance is monitored

through external audits, as well as the company’s

monthly and annual reporting. BEWI’s governing poli-

cies are annually reviewed by the board of directors

and updated to reflect the company’s approach and

industry’s best practices.

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A circular economy offers a framework to move towards

more sustainable production and consumption. For BEWI

this means focusing on resource efficiency throughout its

value chain, utilising resources as efficiently as possible,

reducing consumption, and keeping the value of products

and materials in the loop for as long as possible. In addition,

it includes the company’s dedication to the transition to

renewable energy sources.

Material environmental topics:

Climate mitigation

Climate adaptation

Resource efficiency and circularity

Biodiversity and ecosystems

Environmental impacts

and opportunities

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ENVIRONMENT

Climate change

mitigation

BEWI’s operations contribute to greenhouse gas

(GHG) emissions, mainly through the consumption

of styrene, a fossil based raw material.

BEWI works to reduce its emissions by adopting a circular economy

model and by increasing its use of renewable energy sources, both of

which are key elements in the company’s strategy to mitigate climate

risks and make the value chain more resilient.

Key risks

• More stringent regulations on energy

efficiency and GHG emissions

Key opportunities

• Circular business model

• Energy efficiency requirements in the

building & construction industry

• Electrification of the car fleet

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Our efforts

In 2022, BEWI continued to increase its efforts to

address its climate impacts, gaining more insights on

the company’s GHG emissions.

Increased knowledge of GHG emissions

BEWI reports its GHG emissions in accordance with

the GHG protocol including emissions in scope 1, 2,

and 3. The last two years the company has worked

to collect data on the relevant categories in scope

3. By completing the overview of the company’s

GHG emissions for all scopes, the company is ready

to develop a climate reduction strategy in line with

the science based targets initiative (SBTi). BEWI is

currently in the first stages of implementing the SBTi

corporate standard, including developing a climate

reduction plan (scope 1, 2 and 3) of GHG emissions

towards 2030 and 2050.

Decarbonizing the value chain

The largest share (61 per cent) of BEWI’s GHG emis-

sions originates from the company’s consumption

of styrene. The company`s work to increase the

share of recycled and renewable raw materials is

the most effective action to reduce the company’s

GHG emissions. To further reduce the company`s

GHG emissions, BEWI has strengthened its collab-

oration with strategic suppliers to map and discuss

opportunities to increase circularity and reduce GHG

emissions.

Energy efficiency and transition

to renewable energy sources

The transition to renewable energy sources remains

a challenge. In 2022, BEWI company established

an energy committee, working to improve energy

efficiency and increased use of renewable energy

sources. During 2022, several pilot projects were

conducted, aiming at enabling the company to make

informed decisions with regards to investments in

energy efficiency and transition to renewable energy

sources.

Our progress

BEWI`s total GHG emissions were 710 111 tonnes,

whereas scope 1 and 2 accounted for 9.5 per cent

and scope 3 for 90.5 per cent.

Scope 1 GHG emissions

BEWI’s scope 1 GHG emissions are mainly caused by

consumption of natural gas used to produce steam

for moulding of the company’s products. In 2022, the

emissions increased by 12 per cent despite a decrease

in the consumption of natural gas by 6 per cent.

The increase is explained by a change to more GHG

intensive energy sources. This is a result of a chal-

lenging energy market with shortage of energy and

high prices. To ensure operations and cost control,

several of the produc tion facilities have changed

their energy source from LPG to LNG, and some have

been forced to switch from LPG to diesel, which can

explain the increase in GHG emissions.

Scope 2 GHG emissions

BEWI’s scope 2 GHG emissions are caused mainly

by the company’s electricity consumption (87 per

cent) and purchased steam (13 per cent). In 2022, the

emissions decreased by 21 per cent, explained by a

decrease in the use of electricity (2 per cent) and steam

consumption (9 per cent), and an increase in the share

of renewable energy sources from 19 to 21 per cent.

Scope 3 GHG emissions

The largest share of BEWI’s GHG emissions lies in

scope 3 and amounted to 91 per cent of the compa-

ny’s emissions in 2022, in line with the share in 2021.

Purchased goods and services were 94.8 per cent of

scope 3 emissions whereas 61 per cent came from

the consumption of styrene.

The emissions increased by 2 per cent compared

to 2021, due to inclusion of several new categories

which constituted for 7 per cent of the emissions

within this category. Disregarding these, the

company had a reduction of GHG emissions of 2.7

per cent compared to 2021.

Emissions from waste generated in operations

decreased by 93 per cent compared to 2021. This

is mainly explained by increased data quality on

final treatment of solid waste, as well as an overall

decrease in waste production of 15 per cent.

Emissions from business travels increased by 178 per

cent owing to a “return to normal” after the Covid-19

pandemic and increased travel to integrate newly

acquired companies (see progress report for more

detailed information).

BEWI’s top 5 sources of GHG emissions

Purchased styrene

Direct emissions

(Scope 1)

Plastic packaging

Transportation

Externally

purchased EPS

61.0%

6.2%

4.5%

3.2%

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Key targets 

• 50% recycled or renewable raw materials

• 50% renewable energy sources

• 50% renewable transportation

Key priorities going

forward

• Integrate a climate mitigation policy and

management approach

• Develop a climate reduction plan (scope 1,

2 and 3) in line with Science Based Target

Initiative (SBTi)

• Collaborate with raw material and trans-

portation suppliers to decarbonize the

value chain

• Increase the share of recycled raw materials

• Increase the share of renewable energy

sources

Indirect energy-related GHG emissions (market-based)

– scope 2

Tonnes CO

5000

10000

15000

20000

25000

30000

35000

202220212020

27 398

30 007

23 652

Scope 2 Scope 2 M&A

86.7%

13.3%

Electricity (market-based)

Purchased steam

Direct GHG emissions

– scope 1

Tonnes CO

10000

20000

30000

40000

50000

202220212020

37 712

39 452

43 995

Scope 1 Scope 1 M&A

97.6%

2.4%

Natural gas, oil and diesel

Internal transport

Other indirect GHG emisssions

– scope 3

Tonnes CO

100000

200000

300000

400000

500000

600000

700000

800000

202220212020

606 081

636 600

642 463

Scope 3 Scope 3 M&A

Category 1 - Purchased goods and services

Category 4 & 9 - Up- and Downstream transport

Category 5 - Waste generated in operations

Category 6 - Business travel

Category 7 - Employee commuting

94.8%

5.0%

0.1%

4040

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BEWI Portugal installs solar panels

– providing cleaner energy to  families

In 2022, BEWI’s operation in Portugal installed solar panels at two of

their locations, in Peniche and Santo Tirso, in partnership with Greenvolt

Communities. The solar panels have a total capacity of more than 1 400 kWp,

being able to generate 1 922 MWh annually, and potentially reducing the GHG

emissions by 500 tonnes per year

The project is an important milestone for the company’s transition to

renewable energy sources and has enabled the two production facilities

in Portugal to increase their share of renewable energy from electricity

consumption to 35 per cent. All the energy that is produced but not used will

be transferred through Greenvolt Communities and shared with up to 800

families and small businesses within 4 km of their facilities.

“Knowing for several years the importance

of reducing the environmental impact of

our activities, the transition to renewable

energy has become a priority. Through the

partnership with Greenvolt Communities,

we are taking a leading position in the

decarbonization process, which is essential

both for the company and for our industry.”

Carlos Santos, Managing Director

BEWI Portugal

Compared to consumption of energy from the national grid.

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ENVIRONMENT

Climate change

adaptation

Climate change has an impact on BEWI’s operations

and represents financial risks and opportunities.

The company is exposed to both physical and

transitional risks and opportunities.

BEWI will mitigate its climate related risks by integrating the

recommendations from the Task force on Climate-related Financial

Disclosures (TCFD) and by adapting its business to a circular economy

based on renewable energy sources, both of which are key elements in

the company’s strategy to make value chains more resilient.

Key risks

• Flooding and extreme weather

• More stringent regulations on

GHG emissions

• Limited access to waste materials

for recycling

• Change of market preferences for

plastic packaging

Key opportunities

• Circular business model

• Energy efficiency requirements in

construction sector

• Electrification of the car fleet

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Our efforts and progress

In 2022, BEWI strengthened its efforts to address

impacts on climate change adaptation, gaining more

insights about its physical and transitional climate

risks and opportunities.

Governance and management

of climate risks

BEWI started the work to integrate climate change

adaptation in 2021, with an external assessment

of the company’s governance and management

based on the recommendations from TCFD. The

work continued in 2022, focusing on integrating the

management of climate risks and opportunities into

the overall risk and management systems as well as

the company’s strategy processes. To ensure integra-

tion of climate risks and opportunities in acquisition

processes, a due diligence checklist has been devel-

oped, to ensure that climate relevant information is

considered.

Mapping of physical and transition risks

A mapping of physical and transitional risks was

conducted by the management in 2021 and a

physical risk assessment

of all production facilities

and warehouses was conducted in 2022. The

company are in the process of arranging workshops,

aiming at identifying potential impact on facilities and

operations, and agreeing on mitigation measures.

Climate risk scenario analysis

To increase the understanding of potential financial

risks and opportunities a climate risk scenario analysis

has been conducted. The aim was to better under-

stand how climate change under various transition

scenarios, could impact the company both in the

short and long term. This study modelled three key

scenarios each reflecting different emission and

temperature paths, to assess the economic impacts

of climate change and the low-emission transition

from 2020 to 2070. A financial disclosure of material

risks identified will be finalised in 2023.

Integration of TCFD in daily operation

In 2023, BEWI will continue the work to finalise the

disclosures in line with the TCFD recommendations

with an emphasis to increase knowledge about

climate related risks and opportunities and to ensure

that these are integrated in both governance, strat-

egy and management approach and are part of the

company`s daily operation.

Key targets 

• Integrate and comply with TCFD

recommendations

Key priorities going

forward

• Integrate a climate change adaptation

policy and management approach

• Finalise integration of climate risks in

the company’s overall risk management

system

• Implement measures to reduce physical

climate risks at exposed production

facilities

• Assess financial exposure and determine

risks and opportunities material to the

business model and strategy

• Finalise disclosures in line with TCFD

recommendations

The physical risk assessment was also part of the work towards EU taxonomy alignment, where the company have evaluated the resilience of taxonomy-

eligible assets in changing and extreme weather.

4343

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ENVIRONMENT

Resource efficiency

and circularity

In a linear economy, BEWI’s products contribute to

greenhouse gas (GHG) emissions and, if improperly

handled after use, negative impacts on the

environment.

Adopting a circular business model is crucial for BEWI to improve

resource efficiency, and to reduce GHG emissions and potential

negative environmental impacts.

Key risks

• Access to high quality waste materials

Key opportunities

• Circular business model

• Creating value in re-usable service-based

products

4444

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Our efforts

The company’s sustainability strategy sets out BEWI`s

commitment to resource effficiency. In 2022, BEWI

continued its work to increase resource efficiency

throughout the value chain by focusing on the

company’s key principles of a circular economy.

To be lean - increasing resource efficiency

In 2022, the company conducted further testing

to use recycled raw materials in its downstream

production facilities. The group has imposed strict

requirements to all its downstream facilities to dra-

matically increase the use of recycled content, and

expects this to result in a significant improvement in

the share of recycled raw materials for 2023.

To keep – ensuring recyclability and reuse

An important prerequisite for circularity is to make

sure that products are resource efficient and

recyclable. A milestone in 2022 was the RecyClass

certification of recyclability

and the REDcert certifi-

cation of several of the company’s locations enabling

the company to provide customers with a third-party

audited certificate on recycled content.

To close – making sure resources

are put back into the cycle

BEWI has announced a target of an annual collec-

tion of 60 000 tonnes of EPS. The number refers to

approximately the volume BEWI puts into the end

markets with a lifetime of less than one year. The

target is anchored in the company’s sustainabili-

ty-linked finance framework. Under the framework,

BEWI has committed to collecting 45 000 tonnes of

used EPS for recycling by the end of 2024, and 60 000

tonnes by the end of 2026.

To increase the company`s capacity to utilize the

collected raw materials, BEWI is working to install a

new EPS extruder which will increase the capacity by

approximately 25 000 tonnes per year. The extruder

will utilize recycled polystyrene provided by the

Circular division and enable BEWI`s downstream

production facilities to increase their share of recy-

cled materials.

Our progress

To enhance circularity, BEWI works with resource efficiency throughout its value chain. The aim is to build long-term

resilience, create business and economic opportunities, and provide solutions that benefit the society and the

environment.

EPS fish boxes and EPS packaging for appliances.

Per cent

Progress – becoming circular

Baseline 2020 Status 2021 Status 2022 Target 2030

0 20 40 60 80 100

Cut-o waste from production

Waste sorted out for material recycling

Collected materials

Recycable produducts

Rawmaterial consumtion going to products for reuse

Renewable and recycled raw materials

To close To keep To be

lean

4545

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To be lean – increasing resource efficiency

BEWI is targeting to use 50 per cent recycled and

renewable raw materials in their production by 2030.

In 2022, the share of recycled and renewable raw

materials where 12 per cent. This is an increase of 1

per cent compared to 2021 and a result of continuous

work throughout the company’s value chain.

To keep – ensuring recyclability and reuse

BEWI is committed to produce recyclable and

reusable products. In 2022, 99 per cent of products

supplied to the market were recyclable. 2 per cent of

the company’s raw materials consumption was used

for products in re-use schemes, an increase of 357

per cent compared to 2021.

To close – making sure resources

are put back into the cycle

BEWI is targeting zero waste from its production. In

2022, the company had 9 132 tonnes of production

cut-offs of which 8 044 tonnes, representing 88 per

cent, were recycled back into production.

BEWI’s total waste production amounted to 16 990

tonnes in 2022, a reduction by 13 per cent from

2021. 68 per cent of this were sorted for recycling, an

increase of 31 per cent compared to 2021.

In 2022, BEWI collected a total of 117 857 tonnes

of waste. Of this, 32 629 tonnes were EPS waste,

representing an increase of 73 per cent compared

to the EPS material collected in 2021. This is a sig-

nificant increase from 2021 and is mainly explained

by acquisitions and investments in organic growth

initiatives the last year, especially the acquisition of

the trading platform Berga Recycling in June 2022,

which strongly increased the amount of collected

and traded materials.

Key targets 

• 50% recycled or renewable raw materials

• 100% recyclable products

• 0% cut-off waste from production

• 80% waste sorted out for material

recycling

• 60 000 EPS collected annually for recycling

Key priorities going

forward

• Continued focus on resource efficiency

• Continued focus on recyclability and

reusability when designing new products

• Increase use of recycled raw materials in

own production

• Increase collection capacity

• Increase recycling capacity

Waste handling

Waste (tonnes)

5000

10000

15000

20000

25000

20222021

19 382

16 990

Waste sorted for recycling Waste sorted for reuse

Waste sorted for incineration Waste sorted for landll

31%

62%

30%

68%

Materials collected for recycling

Tonnes

0.000000

18571.428571

37142.857143

55714.285714

74285.714286

92857.142857

111428.571429

202220212020

86 125

118 750

118 338

Collected materials total

Collected materials total M&A

4646

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ENVIRONMENT

Biodiversity and

ecosystems

Through the production of plastic raw materials

and products, there is always a risk of plastic pellets

getting into the surrounding environment.

BEWI is continuously monitoring impacts on biodiversity and

ecosystems and works to increase knowledge and awareness among

its employees.

Key risks

• Migration of micro plastics

4747

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Our efforts and progress

In 2022, BEWI focused on increasing its knowledge

and efforts to mitigate potential negative impacts on

biodiversity and ecosystems. The implementation

and certification of environmental management

systems has had – and is having a high priority to

keep any negative impacts to an absolute minimum.

Certified management systems

In 2022, the company’s top priority was to strengthen

environmental standards and frameworks, support-

ing its facilities to ensure no negative impacts on

biodiversity and ecosystems. BEWI has also signed

the Operation Clean Sweep to reduce the loss of

pellets, flakes, and powder from the company’s

processing facility into the environment. The com-

mitment imposes all production facilities to identify

high pollution risk areas and to mitigate risks by

installing filters, netted fences, rules for transportation

and storage, daily cleaning routines and training of

employees. All deviations, regardless of severity, are

followed up with an analysis of root cause and imple-

mentation of preventive measures. All production

facilities are well underway with the implementation

og both ISO 14001 and OCS which will be completed

in 2023.

Mapping of protected areas

To increase awareness of the importance of

protecting ecosystems and biodiversity and to

ensure alignment with the EU’s taxonomy on Do

No Significant Harm (DNSH), BEWI has conducted a

mapping of protected areas. The mapping showed

that 10 (21 per cent) production facilities are located

within 1 kilometre from a protected area and are

considered potentially very high-risk areas.

Taskforce on Nature-related

Financial Disclosures

BEWI has followed the work with the development

of Taskforce on Nature- related Financial Disclosures

(TNFD). The company is in the first stage to integrate

the framework that will guide the work related to

biodiversity and ecosystems going forward.

Key targets 

• 100% production facilities certified

with ISO 14001

• 100% compliance with Operation

Clean Sweep

• Zero deviations from environmental

management systems

Key priorities going

forward

• Integrate biodiversity and ecosystem in

environment policy and managment

approach

• Certification of ISO 14001 and Operation

Clean Sweep for all production facilities

in 2023

• Integration of Taskforce Nature-related

Financial Disclosure

20%

of BEWI’s production facilities

have implemented Operation

Clean Sweep

60%

of BEWI’s production facilities

have ISO 14001 certification

deviations from environmental

management system

4848

BEWI annual report 

BEWI has an important role to play in securing an inclusive

society, by being a responsible employer, partner, and

neighbour. BEWI can make a difference for people and

communities in the countries where it operates by tackling

anti-corruption, upholding human- and labour rights,

and ensuring inclusive decision-making and community

engagement.

Material social topics:

Working conditions

–

Health and safety

–

Employees wellbeing

Human rights

Local communities

Social impacts and

opportunities

4949

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SOCIAL

Health and safety

Ensuring safe working condition is paramount in

everything the company does. BEWI has a target of

zero accidents when it comes to health and safety.

At the end of 2022, BEWI had 67 production facilities in 13 European

countries, including companies acquired during 2022 (not included in

this ESG report). Employees and workers at the facilities are exposed

to physical work-related risks of injuries and accidents. The main work-

related hazards are related to the company’s chemical production

facilities, due to handling of chemicals and dangerous substances.

Key risks

• Loss of awareness of risks in daily work

impacting the safety culture

• Handling of hazardous material in chemical

manufacturing plants

Key opportunities

• Training, awareness, and shared learnings

5050

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Our efforts

The company works actively to ensure that pre-

ventive measures are implemented, and that safe

working conditions are maintained in accordance

with internal policies, local laws, and regulations. All

production facilities must be ISO 9001 certified. BEWI

seeks to provide a working environment and culture

where health and safety is integrated in the business.

To increase knowledge of health and safety across

the organization, a survey was sent out in 2021 to

map practices regarding management, as well as

awareness, of risks and company policies. As a follow

up, a new survey was sent out in the end of 2022

and the results will provide valuable information of

gaps to fill based on the health and safety policy

and the continued work on health and safety.

Implementation within the local business units will

be secured and followed-up within the segments

and on group level.

Specialised training and qualifications

In highly regulated work places, such as the chemical

production facilities mentioned above, workers are

offered specialised training programmes and pro-

cesses for training certification. At regular production

facilities, introduction training programmes are

conducted on a regular basis in line with local legisla-

tions or site-specific standards.

Our progress

In 2022, BEWI reported a total of 54 accidents com-

pared to 26 accidents in 2021, with an increase of

severity rate from 0.06 per cent to 0.10 per cent. Of

these accidents, 25 had less than 5 days of sick leave

and 7 accidents resulted in more than 21 days of sick

leave. The main types of accidents are fall or cuts. All

accidents, regardless of the severity, were followed

up with an analysis of root cause and implementation

of preventative measures.

2020 2021 2022 Target

Total no. of accidents 41 26 54 0

Frequency rate 0.01% 0.01% 0.01%

Severity rate 0.11% 0.06% 0.10%

No. of working days lost 359 311 536

A communication and awareness campaign on

health and safety is under implementaton in 2023

across all business units, increasing focus on key risks

and strengthening the culture of safety.

Key targets 

• 100% ISO 9001 certified

• Zero accidents

Key priorities going

forward

• New health and safety policy and

management approach at group level

• Training and awareness of new policy

and management approach

accidents

62%

ISO 9001 certified

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SOCIAL

Employees wellbeing

The employees are BEWI’ most valuable resources

and key enablers for continuous growth and

development. Creating a learning environment

which recognises the contribution of colleagues

and providing development opportunities are

priorities for BEWI.

Key risks

• Talent shortage in key markets

• Employee turnover

Key opportunities

• Attracting a diverse workforce

• Internal career opportunities

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Our efforts and progress

The company`s human resource policy sets out

BEWI’s commitments to ensure workers wellbeing

and development. The policy stipulates employees’

rights to form or join a trade union, and the compa-

ny’s respect for the rights of its employees and their

trade unions to negotiate collective agreements.

Employee engagement and development

To ensure competitive advantages and maintain

a sale driven culture, it is crucial to attract people

with the right values, competencies, and skills. BEWI

believes in developing and bringing out the best

in its employees. Most learnings and competence

development happen through “on-the-job-training”,

with internal recruitments providing opportunities

for personal growth. BEWI targets that all employees

should have a development plan and annual reviews.

In 2022, BEWI conducted an employee engagement

survey, BE-Heard, as a follow up of the pilot survey

conducted in Sweden in 2021. The survey will be an

annual process and an important follow-up mech-

anism for continued improvements for employee

motivation and engagement. The results from the

2022 survey were along the same lines as the pilot

survey, showing highly engaged leaders with a good

understanding of the overall strategy which is a pre-

requisite to further involve employees. Rapid decision

making in combination with the willingness to learn

from mistakes are also shown as strengths from the

results and is coming from the entrepreneurial spirt

of the company. Improvement areas are to further

clarify overall goals and align them with team and

individual goals which are expected to lead to an

increased employee engagement index.

Diversity and equal opportunities

BEWI provides equal opportunities irrespective

of race, ethnical background, religion, nationality,

gender, marital status, age, or sexual orientation.

This applies to all employees, potential employees,

business partners, and other stakeholders. Everyone

working for BEWI, in particularly those in a manage-

ment position, has a responsibility in their daily work

to ensure compliance to these commitments.

At the end of 2022, BEWI’s gender mix was 71

per cent men and 29 per cent women (excluding

acquired companies). The executive management

team consists of 50 per cent men and 50 per cent

women, while the board of directors has three men

and two women. In the results from the BE-Heard

survey, women show higher engagement and

opportunities for development is considered the

same for men and women.

In 2023, targets will be established with regards

to gender mix based on organizational levels, and

appropriate activities will be defined to secure pro-

gress.

Being a diverse workplace and providing equal

opportunities for all employees is considered impor-

tant in attracting top talents.

BEWI Business school –

Leadership programmes

BEWI Business School was launched in 2020 to facili-

tate people- and leadership development internally.

In 2022, BEWI conducted the first two programmes as

“classroom trainings”:

1. The Growth programme: A talent development

programme including 18 participants, focusing on

preparing employees to take the next step in BEWI,

building network and learning about the business

2. The Business & Leadership Programme: A leader-

ship programme including 20 participants, mainly

from the business unit management teams, focus-

ing on various leadership tools and techniques

Key targets 

• 100% employees with a development

plan

• Gender mix of managers and non-manag-

ers reflecting overall company diversity

Key priorities going

forward

• Further development of leadership

programmes to support engagement

throughout the organisation

• Ensure a “healthy” gender mix in key

positions

61%

of employees have a

development plan

Zero

cases reported regarding equal

opportunities or harassment

5353

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SOCIAL

Human rights

BEWI has a global supply chain and is therefore

exposed to challenges related to human rights,

especially in regions and industries where regulations

are weak, and the implementation of local legislation

is defective.

BEWI has approximately 7 500 suppliers, of which the majority is based in

Europe and a few in Asia. Today, 10 per cent of the suppliers account for

90 per cent of the purchasing volume. The company will work to reduce

the number of suppliers to increase control of human rights violations

related to their operations.

Key risks

• Bad reputation

• Disruption in supply chain

• Lack of transparency in tier 2 and 3

• Labor and working conditions

Key opportunities

• Reduce supplier portfolio

• Transparency in supply chain

• Capacity building and training

• Strengthen due diligence

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BEWI annual report BEWI annual report 

Our efforts

In 2022, BEWI increased the awareness of its suppliers

environmental, social, governance and human rights

performance. The company`s goal is to respect and

promote all international recognized human rights in

own operations and in the value chain.

Improving the management of human rights

To ensure compliance with the Norwegian

Transparency Act, BEWI has evaluated existing poli-

cies and its management approach to ensure that the

company meets legal requirements and the method-

ology for due diligence assessment, defined by the

OECD and the UN’s guiding principles for businesses

and human rights. Based on the assessment, BEWI is

in the process of integrating a human rights policy,

an management approach, and a Code of Conduct

for suppliers. Further, the company works to formalise

the way findings are reported and to develop an

internal audit system.

Identifying salient human rights issues

A salient human rights mapping was conducted

in 2022, with the aim to identify and prioritise the

management of human right issues. Based on the

result from the mapping BEWI is in the process of

developing an action plan for each salient issue

that will guide how the company will manage and

monitor each issue going forward.

Due diligence of suppliers

and business partners

The launch of BEWI Partner was a significant mile-

stone in 2021 and paved way for a systematic due

diligence of the company’s suppliers (according to

corporate governance, human rights, health and

safety, environment, and quality). To ensure that

the assessment covers more detailed information,

especially related to human rights, the assessment

has been expanded to include ILO Minimum Age

Convention no 138, ILO Forced Labor Convention no.

29, and the ILO Abolition of Forced Labor Convention

and will be launched in the BEWI Partner 2.0 in the

second quarter of 2023. Moreover, a risk assessment

module was added to the platform, to strengthen

the assessment to identify potential risks and to

include procedures for how to respond and mitigate

identified risks. Moreover, a Visual Observation Form

has been developed for assessment during supplier

factory visits (covering health and safety, environ-

ment, and labor conditions) which will be included in

the overall due diligence work.

Increasing knowledge within

the organisation

BEWI is committed to build knowledge of human

rights and works to ensure that 100 per cent of

relevant employees are trained in human rights.

This includes establishing a company toolbox with

courses, manuals, presentations, and best practices to

be easily accessible for all employees.

BEWI is committed to respect and comply with: International Bill of Rights, The UN Guiding Principles on Business and Human Rights, The UN Global Compact

10 principles, The ILO Conventions, The OECD Guidelines for Multinational Enterprises

Collaborate

for development

and remedy

Policy and

management

approach

Track

implementation

and results

Respond

to mitigate

risk

Communicate

progress

Assess and identify

signicant risk

Due diligence management approach for suppliers

5555

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Our progress

In 2022, the total number of suppliers assessed for

ESG criteria’s including human rights impacts was

220, which accounts for 65

per cent of the compa-

ny’s procurement volume.

BEWI has 12 suppliers in Asia which have been identi-

fied as potentially high risk due to their geographical

location. During 2022, 6 suppliers were visited

with onsite audits and approved. 4 were approved

through the company`s assessment platform BEWI

Partner. For 2023, BEWI will assess the remaining 2

suppliers for potential negative social and environ-

mental impact.

Of the 220 suppliers assessed in BEWI Partner, 2.7

per cent were identified as having potential negative

social impacts and 13 per cent were identified as

having potential negative environmental impacts,

lacking to document policies and procedures.

Among the identified suppliers, no improvements

were agreed upon, and no relationships were termi-

nated.

During 2022, BEWI had 191 new suppliers. Of these,

12 (6 per cent) of the largest suppliers were assessed

in BEWI Partner using ESG criteria.

BEWI acknowledges that the management approach

for supplier assessment has not been well enough

implemented both in terms of contracting new sup-

pliers and to mitigate potential risks identified. Going

forward, BEWI will focus on ensuring compliance with

the company’s policies and management approach

to ensure that all deviations from the policy and man-

agement approach will be reported and followed up.

Key salient human rights issues

• Working conditions: logistics, tier 2-3

suppliers

• Hazardous materials: own operation and

supply chain

• Health and safety: own operation and

supply chain

• Forced labour: logistics supply chain

• Discrimination: own operation

• Corruption and unethical behaviour:

own operations and supply chain

2.7%

suppliers identified having

potential negative social impact

13%

suppliers identified

having potential negative

environmental impact

65%

procurement spend

assessed for ESG criteria’s

Key targets 

• 100% of suppliers mapped and risk

assessed

• 100% of relevant employees trained in

human rights

Key priorities going

forward

• Integrate human right policy and

management approach

• Develop an action plan for each salient

human right issue

• Increase knowledge and understanding

according to the International Bill of Rights

• Secure higher enrolment in BEWI Partner

BEWI’s procurement spend from suppliers with a purchase volume inferior to EUR 50 000

5656

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SOCIAL

Local communities

BEWI can make a difference for people and

communities in the locations the company

operates by engaging in communities and making

a positive impact.

Key risks

• Bad reputation

Key opportunities

• Social inclusion

• Local job creation

5757

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Our efforts

BEWI has an important role to play by being a

good neighbour and is dependent on maintaining

good relationships with local communities. BEWI

is committed to providing valuable employment

opportunities and by supporting local communities,

making a positive impact.

Our progress

In 2022, 74 per cent of BEWI’s production facilities

were involved in different local initiatives and

community engagements. In total, BEWI carried out

82 community engagement projects ranging from

employment, education, sports, and environmental

clean-up initiatives.

Employment

BEWI shall be a good employer and contribute to

employment, integration, and diversity. The company

has employment projects focusing on providing

opportunities for people who are trying to re-enter

the workforce after long-term absence, little work

history or disabilities.

Education

BEWI is committed to actively engage in partnerships

to increase the capability for a transition towards a

circular economy. Engaging with local schools and

universities is an important part of this, by inviting

schools and students to visit production facilities,

offering internships and to share knowledge.

Local sports

BEWI sponsors local sports teams, as they are impor-

tant arenas for inclusion, diversity, and development

of children and young people.

Environmental clean-up

In 2022, people from BEWI’s production facilities

participated in the World Clean-up Day and invited

employees, family members, and neighbours to clean

their local communities and strengthening relations.

Key targets 

• 100% community engagement

Key priorities going

forward

• Develop a local community stakeholder

engagement plan

• Improve the company’s local engagement

reporting routines and review the report-

ing indicators

Recycling of working clothes

at BEWI RAW Etten-Leur

In 2022, the employees at BEWI’s raw mate-

rial facility in Etten-Leur got new working

clothes. Instead of throwing away the used

clothes, they were reused through a col-

laboration with Põur, a design and product

development brand that RE-harvests raw

materials to create new circular products,

such as cooling bags.

For the working clothes which were more

polluted or too worn out BEWI engaged

with another company, GAIA, who sort,

dismantle, and make new raw materials

and products. Through these activities,

the company contributed to increasing

resource efficiency and circularity.

• 90 m

water saved

• 677 hours of social employment

• 659 kg saved raw material

• 145 kg reduction in CO

emissions

The cooperation with GAIA is an ongoing

process where workers at BEWI’s facility in

Etten-Leur will deliver broken or polluted

clothing and shoes to avoid this ending up

at landfills or to incineration.

74%

of BEWI’s production facilities were

involved in different local initiatives

community engagement projects

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In the town of Shashemene in Ethiopia, littering of the environment with plastic

and paper waste is a huge and growing problem. In May 2021, BEWI initiated a

project together with Norwegian Church Aid, aiming at reducing the littering, but

also to create sustainable jobs and increase the knowledge of the population.

Through the Value for Waste project, BEWI has

aimed to:

• Reduce littering

• Increase awareness and knowledge of

waste as a resource

• Create jobs

• Collect waste for recycling

• Create sustainable income opportunities

The project has facilitated business develop-

ment with a focus on increasing knowledge

about waste management, marketing, finan-

cial management and establishing market

linkage to secure a circular value chain.

Key achievements

• A cleaner Shashemene

• 30 women employed

• 95 tonnes of waste collected for recycling

• EUR 20 000 income generation

“The project is very much in line with

BEWI’s strategy to contribute to the circular

economy. It is inspiring to see the results

that the pilot project has led to, both for

the environment and for women who,

through work and cooperation, create a

better future for themselves.”

Camilla Louise Bjerkli

Director of Sustainability in BEWI

Read more about Value for Waste

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High standards for responsible

business practices are foundational

for services and solutions provided

by BEWI to its customers and for the

value the company creates for other

stakeholders.

Material governance topic:

Ethical business conduct

Governance

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GOVERNANCE

Ethical business

conduct

With operations across geographies, the risk

of unethical business conduct is present.

However, BEWI is mainly operating in countries

in the Northern and Western part of Europe,

with generally healthy business practices.

Key risks

• Corruption

• Competition law breaches

Key opportunities

• Transparency and accountability

• Training and awareness

Our efforts

BEWI strives to meet the highest ethical standards

across its business, contributing to an effective and

fair competition. The company has adopted a Code

of Conduct, an anti-corruption policy, a gifts and

event policy, a privacy policy and a competition law

compliance policy, setting out its expectations on

how its employees are to be conducting business.

The policies guide the company’s work and commit-

ment to zero tolerance to bribery and corruption.

Corruption and anti-competitive behaviour

In 2022, BEWI carried out a saliency mapping of

human rights whereas corruption and unethical

behaviour in own operations and supply chain

came up as a saliency issue. Although zero incidents

of corruption are reported the past year, there is

always a risk for corruption and unethical behaviour.

To increase knowledge and insight, BEWI is in the

process of developing an action plan that will guide

how the company will manage and monitor the issue

going forward. Corruption and ethical behavior are

also included in the company’s due diligence process

to make sure that the company’s suppliers comply

with the company’s policies and requirements. ,

Increasing awareness and competency

To enhance the organisation’s awareness on cor-

ruption and ethical business conduct, all relevant

employees must complete mandatory online training

courses on, among others, anti-corruption, com-

petition law and GDPR as part of their onboarding

process. In addition, all such employees are asked to

re-do the trainings regularly. To ensure continuous

attention on suspicions misconduct, BEWI has imple-

mented monthly reporting of concerns raised.

Whistleblowing

BEWI’s whistleblowing channel facilitates the report-

ing of serious improprieties concerning potential

compliance issues related to laws, regulations, and

own policies. The channel is available to all stakehold-

ers through internal channels and via the company’s

website. The function is operated by an independent

third party, notifications may be done anonymously,

and all reports are handled with confidentiality.

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Our progress

Corruption and business ethics

BEWI received two whistleblower reports in 2022.

One was deemed to possibly constitute a whis-

tle-blowing matter, but due to scarce information

and no further information from the whistle-blower

after a number of requests, BEWI took the measures

appropriate on the basis of the information available.

The other case related to human resources and was

followed up by personell in the human resource

department.

Anti-competitive Behaviour

BEWI ASA completed its acquisition of the Synbra

Group in May 2018. As communicated in BEWI’s

annual reports and prospectuses, the European

Commission thereafter included Synbra in an

investigation related to a potential involvement in

anti-competitive practices of styrene monomer

purchasing during 2013 and 2014. In November 2022,

Synbra concluded a settlement agreement with the

Commission entailing a payment of EUR 17.2 million.

Key targets

• Zero corruption

• 100% of relevant employees

trained in anti-corruption policy

Key priorities going

forward

• Include corruption in the risk

management system, mapping of

business ethics risks

• Monitoring of business ethics rules

(internal compliance controls)

• Training and encourage reporting

of concerns internally or through

whistleblowing channels

• Securing and strengthening due

diligence processes in acquisitions

and supply chain

• Adopt a sanction policy

100%

of relevant employees

trained in anti-corruption

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Corporate

governance

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Risks and risk management

BEWI ASA is a Norwegian public limited company listed on the Euronext Oslo Børs

(Oslo Stock Exchange). The company is subject to the Norwegian Accounting Act,

whereas section 3-3 sets out the required content of the company’s annual financial

statements, including a description of the company’s major risks and uncertainty

factors. The governance of BEWI is based on the company’s articles of association,

applicable laws, and regulations as well as internal steering documents.

BEWI defines risk as something that could negatively impact its effectiveness and

ability to serve customers. Although risks are a natural part of business operations,

they can be managed and controlled, and it is the responsibility of group

management to ensure that risks are identified and that corrective actions are taken

to avoid or mitigate risks that cannot be accepted. BEWI’s overall objective for risk

management is to ensure a systematic method for identifying risks and ensuring

corrective responses at an early stage. Moreover, the objective is to make risk

management a natural part of daily operations by creating a culture of awareness

among all employees, and knowledge of how to manage risks to achieve the

company’s business objectives. The risks described are relevant for the BEWI group

(BEWI or the group), comprising BEWI ASA (the parent company) and all subsidiaries

and associated companies.

Operational risks

Market and forecasts

BEWI is exposed to general market

risk in its operating markets. However,

the company has an integrated and

diversified business model, meaning

that it is exposed to various market

dynamics (upstream vs downstream

business), and to customers in

different industries and geopraphic

regions. The risk of a recession in

one or more of BEWI’s end markets is

thus balanced by the group’s healthy

distribution of customers.

Demand for BEWI’s products and solutions has the largest exposure

to the building and construction industry, of which approximately 60

per cent of the group’s sales are directed. Further, the group is exposed

to the market conditions for food packaging, in particular seafood,

technical components, especially heating, ventilation and air condition

(HVAC) components, and components to the automotive industry.

BEWI has a detailed forecasting process, enabling the group to con-

tinuously adapt and adjust its capacity to the demand in each of its

markets, securing profitable and competitive operations.

This is done by monitoring market trends and cultivating close rela-

tionships with customers to increase knowledge of their forecasts and

expectations. BEWI also obtains information on changes in the market

through relevant memberships in European industry organizations.

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Customers and competition

BEWI’s operations are conducted in

competitive industries.

By using product development, improved production methods and

accessibility as well as offering competitive prices, BEWI can get cus-

tomers to choose its products over its competitors. BEWI’s integrated

business model is expected to bring further synergies within R&D,

product expertise and customer relations in each segment.

BEWI’s customer relations are characterised by a long-term perspective

in which shared development work for customized design, adaptation

to customers’ production processes and a functional storage and

logistics flow are in focus.

BEWI conducts work that will create and add value through the

development of new materials, applications, and design, targeting a

continuously relevant and sustainable product portfolio which is a

business advantage.

Focusing on all cost aspects in the production and distribution chain,

BEWI strives to be the most cost-effective collaborating partner for its

customers. BEWI invests in, and continuously reviews its internal pro-

cesses to be as cost-effective as possible at all stages.

Geographical proximity to customers yields better accessibility and

lower distribution costs.

Raw material prices

and purchasing

Styrene is a crucial raw material to

BEWI. Volatility in styrene prices and

supply disturbances are risk factors.

Supply and demand govern prices on the world market. Raw material

is traded on the global market, and price changes will in most cases

also affect BEWI’s competitors so that desirable margins (GAP) can be

maintained.

To fend off price volatility, BEWI works with several suppliers, contract

models, purchasing strategies and individually tailored customer agree-

ments throughout the value chain.

To mitigate the risk of supply disturbances a multi supplier strategy is

crucial, but also the possibility to utilize the groups three raw material

facilities.

Production capacity

Breakdowns or losses in production

entail a risk of being unable to deliver.

BEWI balances the risk of not being able to continue delivery in the

event of breakdowns in production through redundancy and the

possibility of increased capacity in its facilities. Recent acquisitions has

further increased the group’s capacity and redundancy in production

in order to ensure continuous supply to internal and external cus-

tomers.

The group also collaborates closely with other suppliers on purchasing

goods or to let out production capacity if needed.

For strategic products and customers, special risk manuals and routines

for managing production efforts have been developed.

In addition, BEWI has insurance in place that will help the company

recover and minimize business interruption.

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Production quality

Delivering faulty quality can cause

negative repercussions for customers

or damage BEWI’s reputation.

The risk of delivering faulty quality over time – or to specific projects –

that causes negative repercussions for customers, fines, or damage to

BEWI’s reputation is managed through working with ISO 9001 & 14001,

which helps ensure continuity in processes, quality checks and a lean

production philosophy.

There is also an integrated monitoring system, in the event of devia-

tions, that identifies causes and preventive measures.

Research & Development (R&D)

BEWI’s customers are constantly in

search for new and improved prod-

ucts, including more environmentally

friendly solutions. Further, new

legislation and requirements from

authorities drives the development of

more resource efficient solutions.

To meet customers’ expectations and future legal requirements, BEWI

works to have a relevant and innovative product portfolio. The portfo-

lio is diversified and not dependant on a single product group.

BEWI closely monitors the development with regards to new standards,

patents and legislation both on national and European level. Efficient

product and process development will help BEWI react proactively to

possible changes in regulations.

BEWI is a member of both local and European industry organizations

for advice concerning materials and legal requirements.

Information and IT systems

BEWI relies on IT systems for its oper-

ations. Disruptions or faults in critical

systems might have a direct impact

on production and other important

business processes. Errors in financial

systems could affect the group’s

reporting of financial results.

BEWI’s management model for IT relies on standardized IT processes,

security and governance. Continuous work is performed to move away

from traditional and customized on-premises solutions to modern

standardized and unified solutions to reduce risk.

Acquisitions and integration

Integration of newly acquired

businesses entails a stress on existing

operations.

Rapid growth through business acquisitions can entail a risk that

the integration processes become more costly or take longer than

estimated, and that expected synergies either wholly or in part do

not occur. Rapid growth can also be a stress on existing operations,

in which relationships with customers, suppliers and key persons are

negatively affected.

BEWI has a strong track record for successful acquisitions and integra-

tion of companies. The company has acquired and integrated more

than 30 companies since 2014, and has established a well functioning

integration model with clear division of responsibilities and use of

dedicated project groups. The process includes external legal and

financial due dilligence processes and where needed there will also be

a business and technical due dilligence process.

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Legal risks

Legislation

Legal risks comprise a number of

risks in various areas, e.g. changes to

regulations, violations of law in the

operations, compliance risk and errors

in any agreements signed by BEWI.

BEWI takes preventive measures through its governance structures and

continuously observes rules and regulations in each of its markets.

BEWI works to prepare its products and operations to future changes

by monitoring legal risks that may arise, often in cooperation with

external advisers when deemed necessary.

Sustainability-related risks

Environment

There is a risk that BEWI’s operations

can have a negative environmental

impact on the air, soil, or water.

To ensure the compliance of various laws and regulations from gov-

ernment authorities as well as the group itself, all production facilities

conduct a risk assessment to identify the risk of unforeseen, undesirable

events or accidents that can have a consequence for the external

environment. All production facilities systematically work to reduce

these risks, including implementation of several processes to identify,

monitor, measure, analyze and register environmental risks to the

environment. The results of these activities are the basis for the work to

address and evaluate possible mitigation measures to improve routines

and reduce the group’s environmental impact. Read more about the

company’s environmental risks in the chapter about biodiversity and

ecosystems in the ESG section.

Climate

Climate change represents both

financial risks and opportunities to

BEWI. Read more about the com-

pany’s climate related risks in the

chapter about climate mitigation and

climate adaptation in the ESG section.

To mitigate impacts of climate change, it is important for the company

to understand the risks (physically and transitional) and opportunities

presented by rising temperatures, climate-related policies, and emerg-

ing technologies. Climate related risks and opportunities are directly

linked to BEWI’s strategy and are addressed as an integrated part of the

company’s daily business. The risks are reported as recommended by

the Task force on Climate-related Financial Disclosures (TCFD).

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Health and safety

There is a risk for accidents and

injuries in BEWI’s operation.

As an employer BEWI conducts risk assessments of the conditions that

may involve a risk of the health to employees, and implement measures

to remove or reduce risk factors as far as possible. BEWI has a zero toler-

ance vision when it comes to health and safety. BEWI works preventively

and systematically to prevent health sickness, injuries and near misses,

and are continuously working to follow-up performance through regular

measurements and evaluations. All deviations, incidents and near-misses

are reported and are the basis for continuous improvements. Risk assess-

ments are used to identify hazards requiring a special attention.

BEWI actively works to find green substitutes and to consider whether

processes and resources can be changed to improve the group’s HSE

profile. Moreover, BEWI offers training with active participation of

employees to establish good routines to prevent employee incidents

at work. Employees are familiar with the requirements and have been

introduced to BEWI’s HSE policies and shall comply with internal safety

rules and instructions.

Employees

Attracting skilled personnel and

retaining key individuals is of crucial

importance to BEWI’s success.

BEWI manages the risk of being unable to recruit qualified labour by

striving for a good work environment and internal competence devel-

opment, as well as taking responsibility for training new employees. In

addition, the group works actively to promote the group as an attrac-

tive employer. BEWI has a group staff function for human resources

(HR), including an HR Director responsible for group culture, values

and processes to secure management development and succession

planning.

Human rights

There is a risk of discrimination of

human rights and that labor legis-

lation is not fully complied with. In

BEWI’s case, the risk of human rights

violations is greatest in the supply

chain.

BEWI conduct human rights due diligence through the supplier

management system called BEWI partner. The management system

is guided by international standards including OECD Due Diligence

Guidance for Responsible Business Conduct and the UN Guiding

Principles on Human Rights and industry practice. BEWI regularly

assess ESG risks within its supply chain and seek to mitigate these risks

through the supplier development programme, transparent and fair

tender processes, robust contracting, and pre-production audits.

In addition, risk assessment is done annually to identify and follow-up

high risk suppliers.

Unethical behavior

There is a risk that employees are

involved in unethical behavior such

as bribes, corruption, or fraud.

BEWI’s Code of Conduct sets out the essential requirements for ethical

business conduct within the group and it is fundamental to BEWI

to contribute to effective and fair competition in the society. BEWI’s

anti-corruption policy describes a zero tolerance to bribery and corrup-

tion and BEWI’s whistleblowing system enables internal and external

stakeholders to report suspicions of misconduct.

A gift and event policy and a competition law compliance policy have

been adopted to provide all employees of BEWI with further informa-

tion on how to act in order to be in compliance with BEWI’s values and

policies as well as laws and regulations. To enhance the organisations

awareness of ethical conduct, general managers, sales and marketing

employees, group functons and selected employee groups are trained

on anti-corruption and the group’s gift and event policy.

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Board of directors

Gunnar Syvertsen Kristina Schauman Andreas M. Akselsen

Position

Chair of the board Director Director

Born 1954 1965 1977

Nationality Norwegian Swedish Norwegian

Elected 2014 2016 2022

Education M.Sc. Engineering M.Sc. Business Administration, Stockholm School of Economics. M. Sc. Business Administration from BI Norwegian School of Management, and

a Bachelor of Sc. in mechanical engineering.

Professional

background

CEO Heidelberg Cement Northern Europe AB, Managing Director Heidelberg

Cement Norway AS, Managing Director Norcem AS, and other executive

positions in Heidelberg Cement AG in Africa and the US.

CFO of OMX AB, Carnegie Investment Bank and Apoteket AB. Senior posi-

tions at Investor AB, ABB, and Stora Enso.

Experience from various positions in Jackon Holding from 2004, including M&A,

strategy and business development, restructuring and financing. From 2018,

Akselsen worked as a consultant for Jackon, in addition to other assignments

within real estate, early phase investment and restructuring projects.

Other selected

directorships

Chair of the board of BEWI Invest AS, (majority shareholder of BEWI) and

various other directorships in BEWI Invest portfolio companies.

Board member of Viaplay Group AB, AFRY AB, Coor Service Management

Holding AB and Ellos Group Holding AB, Member of NASDAQ Stockholm’s

Disciplinary Committee.

Board member of HAAS (second largest shareholder of BEWI), Pridok AS, Bricks

Beverages AS, Flexiform AS and Godthåb Holding AS.

Independence Independent of material business contacts. Not considered independent of

the management or large shareholders, due to a consultancy agreement with

the company and directorship with the majority shareholder BEWI Invest.

Independent of executive management, material business contacts and

large shareholders.

Independent of material business contacts. Not considered independent of the

management or large shareholders, due to a consultancy agreement with the

company and being the owner of the second largest shareholder HAAS.

Shares per 31.12.22 161681

193452 32 070 000

Gunnar is the chairman of BEWI Invest AS, an investment company controlled by the Bekken family, owning 97 958 328 on 31 December 2022

Shares are held through the investment company HAAS AS, owned by the Akselsen family

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Anne-Lise Aukner Rik Dobbelaere

Position

Director Director

Born 1956 1954

Nationality Norwegian Belgian

Elected 2020 2021

Education Law degree from the University of Oslo. M.Sc. Engineering and MBA from Catholic University in Leuven, Belgium.

Professional

background

Managing director and CEO of Nexans Norway and CEO of Nexans Sweden.

Long experience in management of technology and knowledge-based

companies and management of industrial companies.

CEO of BEWI ASA from 2018 to 2020, and CEO of Synbra Holding B.V. prior to

the merger with BEWI. Senior positions in global industry companies, including

Bombardier, and Raychem Corporation.

Other selected

directorships

Chair of the board in Fontenehuset Ullensaker and Fontenehuset Mortensrud,

and board member of Aukner Holding AS.

Board member of selected subsidiaries of the BEWI group.

Independence Independent of executive management, material business contacts and large

shareholders.

Independent of material business contacts and large shareholders.

Not considered independent of the management, due to a consultancy

agreement with the company.

Shares per 31.12.22 - 98 497

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Executive management

Christian Bekken Marie Danielsson Jonas Siljeskär Petra Brantmark Roger Olofsson Charlotte Knudsen

Position

Chief Executive Officer (CEO) Chief Financial Officer (CFO) Chief Operations Officer (COO) Chief Legal Officer (CLO) Chief Human Resources Officer

(CHRO)

Chief Communications and

IR Officer (CCO)

Born 1982 1975 1972 1981 1964 1973

Nationality Norwegian Swedish Swedish Swedish Swedish Norwegian

Employed 2022 2015 2010 2020 2019 2020

Education Upper secondary general, financial,

and administrative programmes.

M.Sc. Economics, Stockholm

University, Sweden

Degree in Engineering, Dalarna

University, Sweden

Master of Laws, Uppsala University

Sweden

B.Sc. human resource development

and labor relations, Umeå University,

Sweden.

M.Sc. Economics and Business admin-

istration (“Siviløkonom”), Norwegian

School of Economics (NHH), Norway

Professional

background and

relevant directorships

Various positions with production

and sales at BEWI, CEO Smart Bolig.

Majority shareholder and director of

the board at BEWI Invest, majority

shareholder of BEWI ASA.

Auditor KPMG, Vice President Financial

Control and Taxes, Haldex AB.

Director of the board at BEWI Invest,

majority shareholder of BEWI ASA.

Managing Director of BEWI RAW and

Chief Operating Officer of Gustafs

Inredninga.

Senior Legal Counsel at Swedfund

International AB and as Associate at

Linklaters Law Firm.

SVP Human Resources at Scandic

Hotels, senior HR roles at ABB, GE

Healthcare and Loomis.

Senior advisor at First House and

Crux Advisors, Director of IR and

Communications at IDEX Biometrics

ASA and EMGS ASA

Shares per 31.12.22 25 952

185 452 124 126 8 902

5 952 33 681

Options per 31.12.22 200 000 250 000 200 000 100 000 125 000 100 000

Christian Bekken is a member of the Bekken family, who controls BEWI Invest, the majority shareholder of BEWI ASA, owning 97 958 328 on 31 December 2022

Related parties of Petra Brantmark held a total of 5 458 shares on 31 December 2022

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Corporate governance in BEWI ASA

BEWI aims to maintain a high standard of corporate governance. Good corporate

governance strengthens the confidence in the company and contributes to long-

term value creation by regulating the division of roles and responsibilities between

shareholders, the board of directors and executive management.

Corporate governance at BEWI shall be based on the

following main principles:

• All shareholders shall be treated equally

• BEWI shall maintain open, honest, relevant, and

reliable communication with its stakeholders

about the company’s activities

• BEWI’s board of directors shall be autonomous and

independent of the company’s management

• BEWI shall have a clear division of roles and respon-

sibilities between shareholders, the board and

management

1. Implementation and reporting

on corporate governance

Compliance and regulations

The board of directors (the board) of BEWI ASA (the

company) has the overall responsibility for ensuring

that the company has a high standard of corporate

governance. The board has adopted corporate

governance principles for the company, latest

adopted on 2 June 2022. In addition, the board has

adopted several other policy documents related to

corporate governance, including, but not limited to

a policy on handling of inside information and other

disclosure obligations, and an information policy.

The company’s corporate governance principles are

based on the Norwegian Code of Practice (the Code)

for Corporate Governance issued by the Norwegian

Corporate Governance Board (NCGB). The objective

of the Code is that companies listed on regulated

markets in Norway will practice corporate govern-

ance that regulates the division of roles between

shareholders, the board and executive management

more comprehensively than is required by legislation.

The board and executive management perform an

annual assessment of its principles for corporate

governance.

BEWI ASA is a Norwegian public limited liability

company listed on the Oslo Børs (Oslo Stock

Exchange). The company is subject to section 3-3b of

the Norwegian Accounting Act, which requires the

company to disclose certain corporate governance

related information annually. In addition, the Issuers

Rules of Oslo Børs, covered by the Oslo Rulebook

II chapter 4.5 requires listed companies to publish

an annual statement of its principles and practices

with respect to corporate governance, covering

every section of the Code. Oslo Børs also sets out

an overview of information required to be included

in the statement. The Norwegian Accounting Act is

available at www.lovdata.no (in Norwegian), while

the Issuers Rules is available at www.oslobors.no.

BEWI always seeks to comply with the latest version

of the Code. The current Code was adopted on

14 October 2021 and is available at www.nues.no/

english. Application of the Code is based on the

‘comply or explain’ principle, which means that

the company must provide an explanation if it has

chosen an alternative approach to specific recom-

mendations.

BEWI provides an annual statement of its adherence

to corporate governance.

Deviations from the Code: None

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Governance structure

Chief executive officer

(CEO)

Board of directorsAudit committee

Remuneration

committee

General meeting

Nomination

committee

Chief financial officer

(CFO)

RAW

Chief legal officer

(CLO)

Circular

Chief operating officer

(COO)

Insulation & Construction

Chief communications

officer and IR (CCO)

Chief human resources

officer (CHRO)

Packaging & Components

Executive management

Segments

Shareholders

Group functions

IT LegalSustainability Finance R&DProcurement CommunicationsHuman resources M&A Risk management

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2. Business activity

BEWI is a provider of packaging, components, and

insulation solutions.

The operations of BEWI shall comply with the busi-

ness objective set forth in the company’s articles of

association.

The company’s business objective is set out in its

Articles of Association section 3 as:

“The company’s objective is to directly or indirectly

conduct production, marketing and sales of customer

tailor made packaging solutions and insulation

materials and to conduct other business compatible

therewith and to conduct services within the company

group mainly within administration and finance.”

The board has defined clear objectives and strategic

priorities for the company, including both long-term

financial targets and sustainability targets, to ensure

value creation for the shareholders and other stake-

holders. The objectives are evaluated annually. In

March 2021, BEWI launched a sustainability strategy,

including clearly defined ambitions for the group

leading towards 2030.

The board has adopted a Code of Conduct for

the company, a key governing document setting

out important principles for the company’s ethical

conduct of its business. The principles are used to

integrate considerations to human rights, employee

rights and social matters, the external environment

and anti-corruption efforts. Further, the group has

established separate policies on anti-corruption,

compliance with competition law, privacy, and

whistleblowing guidelines.

Vision, mission, and core values

BEWI’s vision is “Protecting people and goods for a

better everyday.”

The group’s mission is “To create value for customers

by offering sustainable packaging, components and

insulation solutions in innovative and efficient ways,

and lead the change towards a circular economy.”

In addition to the Code of Conduct setting out key

principles for ethical business conduct, BEWI’s core

values are guiding stones:

• Responsible

• Proud

• Stable

• Care for quality

Deviations from the Code: None

3. Equity and dividends

Capital structure

The board is committed to maintain a satisfactory

capital structure for the company according to the

company’s goals, strategy and risk profile, thereby

ensuring that there is an appropriate balance between

equity and other sources of financing. The board will

continuously assess the company’s capital require-

ments related to the company’s strategy and risk profile.

BEWI’s financial targets were launched in September

2021:

• The double adjusted EBITDA by 2026

• Leverage of NIBD/ Adjusted EBITDA below 2.5x

(LTM excl. IFRS 16)

• Dividend pay-out policy of 30-50 per cent of net

profit

• Increase Return on Capital Employed (ROCE)

towards 20 per cent by 2026

Dividends

The board of BEWI has established a dividend policy

where the long-term policy is to pay out between

30 and 50 per cent of the company’s underlying net

profit after tax as dividends. When deciding on the

annual dividend, the board will consider the compa-

ny’s financial position, investment plans as well as the

needed financial flexibility for strategic growth.

For the financial year of 2021, BEWI distributed

dividends of NOK 1.10 per share. The dividends were

distributed in November 2022, following completion

of the Jackon acquisition.

For the financial year of 2022, the board has proposed

to the general meeting to pay dividends of NOK 0.60

per share. The dividends are proposed to be dis-

tributed following sale of the company’s real estate

portfolio.

Board authorisations

Authorisations to the board to increase the share

capital or to buy own shares will normally not be

given for periods longer than until the next annual

general meeting (AGM) of the company.

As of 31 December 2022, the board of BEWI had three

authorisations:

1. Authorisation to increase the share capital by up

to NOK 31 407 960 to strengthen the equity of

the company, finance future growth, acquisitions,

increase the liquidity and spread of ownership in

respect of the company’s shares or for other pur-

poses as the board decides.

2. Authorisation to increase the share capital by up to

NOK 4 711 194 in connection with the company’s

incentive programmes.

3. Authorisation to acquire own shares up to a

nominal value of 15 703 980 (equal to 10 per cent

of the company’s share capital at the time of the

authorisation). The shares shall either be cancelled,

included in the company’s incentive programme,

be used for investment or as settlement in

acquisitions.

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Authorisations no. 1 and 3 are valid until the annual

general meeting in 2023, planned to be held on

1 June 2023, however expiring on 30 June 2023 at

the latest. Authorisation no. 2 is valid until the annual

general meeting in 2024, however expiring on

30 June 2024 at the latest.

Deviations from the Code: The Code states that man-

dates granted to the board to increase the share capital

should be limited in time to no later than the date of the

next annual general meeting, and thus the mandate to

increase the share capital in connection with the compa-

ny’s incentive programme is a deviation from the Code,

explained by the duration of the company’s incentive

programme, however limited by legal restrictions.

4. Equal treatment of shareholders and

transactions with close associates

In the event of capital increases based on author-

isations issued by the general meeting, where the

existing shareholders’ rights will be waived, the

reason for this will be provided in a public announce-

ment in connection with the capital increase.

Any transactions, agreements or arrangements

between the company and its shareholders,

members of the board, members of the executive

management team or close associates of any such

parties will be conducted in compliance with the

procedures set out in the Norwegian Public Limited

Liability Companies Act. The board shall arrange for a

valuation to be obtained from an independent third

party unless the transaction, agreement or arrange-

ment in question is considered immaterial. Board

members and members of the executive manage-

ment team shall immediately notify the board if they

have any material direct or indirect interest in any

transaction entered by the company.

Trading own shares

Any transaction which the company carries out in

its own shares will be carried out through the stock

exchange, and at prevailing stock exchange prices.

If there is limited liquidity in the company’s shares,

BEWI will consider other ways to ensure equal treat-

ment of its shareholders.

Deviations from the Code: None

5. Shares and negotiability

BEWI has only one class of shares and all shares have

equal rights. Each share has a face value of NOK 1.00

and carries one vote.

The company emphasise equal treatment of its

shareholders and the shares are freely transferable.

6. General meetings

BEWI’s highest decision-making body is the general

meeting of shareholders. All shareholders have the right

to participate in the general meetings of the company.

Article 7 of the company’s articles of associations sets

out the main principles of the company’s general

meeting, including where the meetings should be held

and matters to be dealt with. The article also sets out

that documents relating to matters to be dealt with,

including documents which by law shall be included in

or attached to the notice of the general meeting, do not

need to be sent to the shareholders if such documents

have been made available on the company’s website. A

shareholder may nevertheless request that documents

relating to matters to be dealt with at the general

meeting, is sent to him or her.

Shareholders who wish to participate in a general

meeting, shall notify the company of this within a

deadline which is set out in the notice of the general

meeting, and which cannot expire earlier than three

days prior to the meeting.

The shareholders may cast their votes in writing, includ-

ing through electronic communication, in a period prior

to the general meeting. The right to participate and

vote at the general meeting may only be exercised if the

acquisition is entered in the VPS on or before the fifth

business day before the general meeting.

The full notice for general meetings shall be sent to the

shareholders no later than 21 days prior to the meeting.

The board will ensure that the notice includes informa-

tion about resolutions and that supporting information

is sufficiently detailed to allow shareholders to form a

view on all matters to be considered at the meeting.

Notices shall provide information on procedures that

shareholders shall observe to participate in and vote

at the general meeting. The notice should also set out:

(i) the procedure for representation at the meeting

through a proxy, including a form to appoint a proxy,

and (ii) the right for shareholders to propose resolutions

in respect of matters to be dealt with by the general

meeting. The form for the appointment of a proxy

should also be designed to make voting on each indi-

vidual matter possible.

The annual general meeting (AGM) is held each year

no later than six months after expiry of the preceding

financial year. The board and the company’s auditor shall

be present at the AGM. General meetings are opened

by the chair of the board, or the person appointed by

the board. The board proposes a person to chair the

meeting.

In 2022, an extraordinary general meeting was held

on 16 February 2022 and the AGM was held on 2 June

2022. In 2023, the AGM is scheduled to be held on

1 June 2023.

Deviations from the Code: None

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7. Nomination committee

Article 8 of the company’s articles of association

stipulates that the company shall have a nomination

committee, consisting of two to four members,

where the majority of the members shall be

independent of the board and management. The

members of the nomination committee, including

the chairperson, will be elected by the general

meeting for a term of two years unless the general

meeting decides otherwise in connection with the

election.

The nomination committee gives recommenda-

tions to the general meeting for the election of

shareholder elected members to the board and the

chairperson of the board, as well as to members of

the nomination committee. The nomination commit-

tee also presents to the general meeting proposals

for remuneration to the board and to the nomination

committee.

When proposing candidates for election to the

board, the committee should consider that the board

should be composed in such a way as to maintain

the interests of the shareholders and the company’s

need for competence and diversity, and that the

board should function well as a collegiate body. Also,

the committee should consider that the directors of

the board should be independent of the executive

management and significant business partners, and

that at least two of the directors should be independ-

ent of the company’s principal shareholder.

On 16 February 2022, BEWI held an extraordinary

general meeting which resolved the committee’s

composition to be amended so that the chair of the

board of directors, Gunnar Syvertsen, no longer was

a member of the nomination committee to secure

independence and impartiality of the board. At the

meeting, Liv Malvik was re-elected as chair and Roar

Husby was re-elected as member of the committee

for the period until the annual general meeting of

2024. Instructions for the nomination committee was

adopted by the extraordinary general meeting of the

company held on 21 August 2020.

Deviations from the Code: None

8. Board of directors:

composition and independence

Composition of the board

According to article 5 of BEWI’s articles of asso-

ciations, the board of directors shall consist of a

minimum of three and a maximum of eight board

members elected by the general meeting for a

period of two years, unless otherwise decided by the

general meeting in connection with the election. The

general meeting elects the chair of the board.

The Public Limited Companies Act states that when

the board has between four and five members,

both sexes should be represented by at least two

members. As of 31 December 2022, the board of

BEWI ASA consisted of five members, whereof two

are female.

In appointing members to the board, it is emphasised

that the board shall have the requisite competency to

independently evaluate the cases presented by the

executive management team as well as the compa-

ny’s operations. It is also considered important that

the board can function well as a body of colleagues.

Board members shall be elected for periods not

exceeding two years at a time, with the possibility of

re-election. Board members shall be encouraged to

own shares in the company.

An overview of the board members competence,

background and which of the board members are

considered independent, is included in a separate

section of this annual report and is also available from

the company’s website www.bewi.com. Four out of

five board members own shares in the company.

Independence of the board

BEWI’s board should be composed such that it is

able to act in the interests of all shareholders and act

independently of any special interests. All the board

members of BEWI are deemed to be independent of

the company’s material business partners, and three

of the members are independent of the company’s

major shareholders. Two of the board members are

independent of the company’s senior executives.

Deviations from the Code: The Code states that the

majority of the board members should be independent

of the executive personnel. In BEWI, two out of five board

members are considered independent, while three of the

members are not considered independent due to their

advisory agreements with the company. This includes

the chair of the board, and board members Andreas M.

Akselsen and Rik Dobbelaere. The company has chosen

to enter such agreements to secure the integration of

the company’s two most transformative acquisitions,

namely Jackon (2022) and Synbra Holding (2018).

9. The work of the board of directors

The board shall ensure that the company has proper

management with clear internal distribution of

responsibilities and duties. A clear division of work

has been established between the board and the

executive management team. The CEO is responsible

for the executive management of the company.

Instructions to the board of directors and the CEO

were last revised and approved by the board on

2 June 2022.

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The board has the overall responsibility for the

management of the group and the supervision of

its day-to-day management and business activities.

The board shall prepare an annual plan for its work

with special emphasis on goals, strategy, and imple-

mentation. The board’s primary responsibility shall

be (i) participating in the development and approval

of the company’s strategy, (ii) performing necessary

monitoring functions and (iii) acting as an advisory

body for the executive management team. The

chairperson of the board is responsible for ensuring

that the board’s work is performed in an effective

and correct manner.

The members of the board receive information

about the company’s operational and financial

development monthly. The company’s strategies

shall regularly, and at least once a year, be subject to

review and evaluation by the board.

The regulations governing the board’s working

practices include guidelines for how individual

directors and the CEO should conduct themselves

with respect to matters in which they may have a

personal interest. Among them is the stipulation that

each director must make a conscious assessment of

his/her own impartiality and inform the board of any

possible conflict of interest. Further, the regulations

include guidelines for how the board of directors and

executive management shall deal with approval of

agreements, which are considered material, between

the company and its shareholders and other close

associates, including that the board shall arrange

for an independent third-party valuation. This will,

however, not apply for transactions that are subject

to the approval of the general meeting pursuant to

the Norwegian Companies Act. Independent valua-

tions shall also be procured for transactions between

companies within the group if any of the companies

involved have minority shareholders. Agreements

with related parties will be included in the notes to

the financial statements in the annual reports.

The board meets as often as necessary to perform its

duties. The board shall prepare an annual evaluation

of its work.

Sub-committees of the board

Audit committee

Pursuant to the Norwegian Public Limited Liability

Companies Act and the listing rules of the Oslo Stock

Exchange, the company shall have an audit commit-

tee. The audit committee shall consist of at least two

members. At least one member must have account-

ing or auditing proficiency and at least one member

must be independent of the company’s business. The

audit committee is appointed by the board.

The committee’s main task is to assist the board

with addressing and preparing issues concerning,

amongst other, procurement of audit services, mon-

itoring the work of the auditors and the company’s

internal control systems, monitoring the risk man-

agement of the company and the financial and

sustainability reporting and any other issues that the

board may assign to the committee.

The board revised and approved instructions to the

audit committee on 2 June 2022. As of 31 December

2022, the audit committee in BEWI consisted of

only Kristina Schauman, as the other member of the

committee, Stig Wærnes, was replaced by Andreas

M. Akselsen as board member upon completion of

the acquisition of Jackon (October 2022). At a board

meeting on 13 April 2022, Gunnar Syvertsen was

appointed as member of the audit committee.

Remuneration committee

The company shall have a remuneration committee

appointed by the board. The remuneration commit-

tee shall evaluate and propose the compensation

of BEWI’s CEO and other members of the executive

management team and provide general compensa-

tion related advice to the board.

The board of directors of BEWI appointed a remu-

neration committee and adopted instructions to

the committee on 2 June 2022. The remuneration

committee consists of Anne-Lise Aukner as chair and

Gunnar Syvertsen as member.

Deviations from the Code: None

10. Risk management and internal control

The board of directors is responsible for ensuring that

BEWI has sound internal control and systems for risk

management that are appropriate in relation to the

extent and nature of the company’s activities. The

internal control and the systems shall also encompass

the company’s corporate values and ethical guidelines.

The board shall annually review the company’s most

important areas of risk exposure and the internal

control arrangement in place for such areas. The

review shall pay attention to any material shortcom-

ings or weaknesses in the company’s internal control

and how risks are being managed.

The annual review is normally carried out in relation

to the board’s approval of the annual report, includ-

ing the financial statements and board of director’s

report, where the risks are further described.

Different methods are used for evaluating risks

and for ensuring that the relevant risks to which

BEWI is exposed are managed in accordance with

established policies and guidelines. Risks and risk

management are described in a separate section of

BEWI’s annual report.

Internal control of financial reporting is achieved

through day-to-day follow-up by management, and

supervision by the company’s audit committee.

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The objective of the risk management and internal

control is to manage exposure to risks, to ensure

successful conduct of the company’s business and to

support the quality of its financial reporting.

The board has approved routines for internal control

and risk management.

In 2022, BEWI employed a risk manager dedicated to

improving the company’s system for risk manage-

ment.

Deviations from the Code: None

11. Board remuneration

The general meeting shall determine the board’s

remuneration. The remuneration to the board

members shall not be performance-related nor

include share option elements.

The board’s remuneration was approved on the

company’s annual general meeting on 2 June

2022, following a proposal from the nomination

committee. The committee emphasized that the

remuneration shall be reasonable and based on the

board’s responsibilities and need for competence,

but also be sober.

The board shall be informed if individual board

members perform tasks for the company other than

exercising their role as board members.

Work in sub committees, such as the audit

committee and the remuneration committee, is com-

pensated in addition to the remuneration received

for board membership.

As of 31 December 2022, three of the board

members had agreements to perform advisory work

for the company in addition to their assignment as

board members.

Deviations from the Code: None

12. Remuneration of

executive management

Pursuant to Section 6-16a of the Norwegian Public

Limited Companies Act (NPLCA), the board prepares

guidelines for determination of salaries and other

benefits payable to senior executives. The guidelines

will, in line with the said statutory provision, as well

as Section 5-6 (3) of the same Act be approved by

the general meeting. If the guidelines are materially

altered, the guidelines will be laid before, and

approved by the general meeting. The guidelines will

be approved by the general meeting at least every

four years. In addition to the guidelines, the board

prepares a remuneration report pursuant to Section

6-16b of NPLCA. Such report will be considered by

the company’s general meeting and shall be subject

to an advisory vote by the general meeting in accord-

ance with NPLCA Section 5-6 (4). The guidelines and

remuneration report are published as a separate

document on the same day as the company’s annual

report is published, and is available at the company’s

website.

The company’s senior executive remuneration policy

is based primarily on the principle that executive pay

should be competitive and motivating, to attract and

retain key personnel with the necessary competence.

The statement refers to the fact that the board

of directors shall determine the salary and other

benefits payable to the CEO. The salary and benefits

payable to other senior executives are determined by

the CEO in accordance with the guidelines. The CEO

will normally propose the remuneration to senior

executives in consultation with members of the

remuneration committee.

Deviations from the Code: None

13. Information and communication

Investor relations

Communication with shareholders, investors and

analysts is a high priority for BEWI. The objective is

to ensure that the financial markets and sharehold-

ers receive correct and timely information, thus

providing a sound foundation for a valuation of the

company. All market players shall have access to the

same information, and all information is published

in English. All notices sent to the stock exchange are

made available on the company’s website and at

www.newsweb.no.

BEWI’s ambition is to comply with the latest version

of the Oslo Børs Code of Practice for IR (“the IR

Code”), including recommendations on the report-

ing of information to investors on the company’s

websites. The board of BEWI has adopted a policy on

handling of inside information and other disclosure

obligations, as well as an information policy. Included

in the policies are, among others, guidelines on

trading in the share by key employees, including

clearance prior to trading and restricted trading

periods, and division of roles and responsibilities. The

CEO, CFO and Director of IR and Communications are

responsible for communications with shareholders in

the period between general meetings.

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Financial information

The company holds investor presentations in asso-

ciation with the publication of its quarterly results.

These presentations are open to all and provide an

overview of the group’s operational and financial

performance in the previous quarter, as well as an

overview of the general market outlook. These

presentations are also made available on the compa-

ny’s website.

Quiet period

BEWI maintains a silent period of 30 days prior to the

day of the company’s publication of interim reports.

During this period, representatives of the company

will minimize its contact with financial media, ana-

lysts, and investors and not comment on any financial

development.

Restricted trading periods

Persons defined as primary insiders of BEWI, as well

as related parties of the primary insiders, are not

allowed to acquire or sell shares in the company or

related financial instruments during the period of 30

days prior to the company’s publication of the report

for the fourth quarter, including preliminary full year

results, and the report for the first half year. BEWI

publishes a financial calendar on Oslo Børs’s website,

setting out the expected dates of publication for its

reports. The dates are also available at the company’s

website. During other periods trading is allowed

provided that it is made in accordance with laws

and regulations as well as other provisions in BEWI’s

policies.

Deviations from the Code: None

14. Take-over situations

In a take-over process, should it occur, the board

and the executive management team each have an

individual responsibility to ensure that the company’s

shareholders are treated equally and that there are no

unnecessary interruptions to the company’s business

activities. The board has a particular responsibility in

ensuring that the shareholders have sufficient infor-

mation and time to assess the offer.

In the event of a take-over process, the board shall

ensure that:

• the board will not seek to hinder or obstruct

any takeover bid for the company’s operations

or shares unless there are particular reasons for

doing so;

• the board shall not undertake any actions intended

to give shareholders or others an unreasonable

advantage at the expense of other shareholders or

the company;

• the board shall not institute measures with the

intention of protecting the personal interests of

its members at the expense of the interests of the

shareholders; and

• the board shall be aware of the particular duty it

has for ensuring that the values and interests of the

shareholders are protected.

In the event of a take-over bid, the board will, in

addition to complying with relevant legislation and

regulations, seek to comply with the recommen-

dations in the Code. This could include obtaining a

valuation and fairness opinion from an independent

expert. On this basis, the board shall draw up a

statement containing a well-grounded evaluation of

the bid and make a recommendation as to whether

or not the shareholders should accept the bid. The

evaluation shall specify how, for example, a take-over

would affect long-term value creation of BEWI.

Deviations from the Code: None

15. Auditor

The auditor is appointed by the annual general

meeting and is independent of BEWI ASA. Each year

the board shall receive written confirmation from the

auditor that the requirements with respect to inde-

pendence and objectivity have been met.

Each year, the auditor shall draw up a plan for the

execution of their auditing activities, and the plan

shall be made known to the board of directors and

the audit committee. The board should specifically

consider if the auditor to a satisfactory degree also

carries out a control function and the auditor shall

meet with the audit committee annually to review

and evaluate the company’s internal control activities.

The auditor shall meet with the board without the

CEO or any other member of the senior management

present at least once a year. Whenever necessary,

the board shall meet with the auditor to review the

auditor’s view on the company’s accounting princi-

ples, risk areas, internal control routines, etc.

The auditor may only be used as a financial advisor to

the company provided that such use of the auditor

does not have the ability to affect or question the

auditors’ independence and objectiveness as auditor

for the company. The audit committee shall approve

any agreements in respect of such counselling assign-

ments in accordance with BEWI’s internal policies.

At the annual general meeting the board shall

present a review of the auditor’s compensation as

paid for auditory work required by law and remunera-

tion associated with other specific assignments.

The auditor for BEWI ASA is PWC.

Deviations from the Code: None

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Statement on remuneration of executive management

1. Overview

This statement on executive remuneration is pre-

pared by the board of directors (“the board”) of BEWI

ASA (the “company”) in accordance with Section

6-16a of the Norwegian Public Limited Liabilities

Companies Act as applicable per 1 January 2021

(“NPLCA”) and the administrative regulation regarding

policy and report for the remuneration of the execu-

tive management.

The board of the company does not have members

elected by and among the employees of the

company or of the group.

The total remuneration for the CEO and the other

executives consists of annual base salary, variable pay,

options awarded under a share option plan and other

benefits, including pension.

2. Remuneration policy for the

executive management

2.1 General remarks

The remuneration is an important instrument for

harmonizing the company’s interests with the

interests of the executive management. The general

meeting shall therefore approve the guidelines, and

the guidelines shall be made available at the compa-

ny’s website.

The purpose of the company’s remuneration policy

for the executive management is to contribute to

the company’s business strategy, long-term interests,

and sustainability of the company. Further, BEWI’s

remuneration policy shall encourage a strong and

sustainable performance-based culture, growth,

shareholder value over time and responsible business

practices aligned with the company’s values. The

total remuneration level shall be in line with the

relevant market level for peers within the industry,

but not market leading.

2.2 Annual base salary

The executives are compensated based on individual

criteria, including each executive’s role, experience,

and competence. All executives are evaluated

yearly as part of the company’s Performance and

Development Dialogue (PDD). The total compen-

sation level targets at attracting and retaining

executives, and to maintain a compensation level

which for each individual is competitive compared

to market conditions for the relevant position and

individual.

BEWI applies standard employment contracts and

standard terms and conditions regarding notice

period and severance pay, which shall be deductible

to other income.

Internal board assignments and similar internal

positions are not remunerated separately. External

assignments shall be approved by the CEO or by the

board.

2.3 Pension scheme

Executives are members of the standard pension

and insurance schemes on the same terms and

conditions as non-executives in the county of

employment. Executives are not entitled to early

retirement.

2.4 Pay after termination of employment

The CEO and the COO is entitled to 12- and

6-months’ severance pay respectively. Other exec-

utives are not entitled to pay after termination of

employment.

2.5 Other types of remuneration

Executives may receive benefits in line with relevant

market practice, such as free phone, PC, broadband,

newspapers, and parking.

2.6 Variable pay

BEWI has a variable incentive pay programme includ-

ing the executive management team, as well as other

key executives. The objective of the programme is to

encourage achievement of financial- and operational

targets. The variable pay programme is based on

defined and measurable criteria, including financial

targets and targets linked to strategic priorities.

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The variable pay programme potential is maximized

to 50 per cent of the annual base salary.

2.7 Share option plan for

executive employees

On 19 November 2020, the board of BEWI adopted a

share option plan comprising the executive manage-

ment and other key employees of the company. The

programme was resolved based on the approval by

the extraordinary general meeting on 16 November

2020 to authorise the board to issue new shares to

employees under a long-term incentive programme.

The aggregate number of options under the plan

shall never exceed two (2) per cent of the outstand-

ing shares of the company, including options already

outstanding.

The purpose of the share option plan is to further

align the interests of the company and its share-

holders. The awards of options shall give an interest

in the company parallel to that of the shareholders,

enhancing the interests of the executives to the com-

pany’s continued long-term success and progress

and motivate for individual contributions. The share

option shall enable the company to attract and retain

the executive employees and other key employees.

The strike price is set as the market price at the time

of the grant of the options plus 10 per cent, to ensure

that only value creation from allocation onwards is

rewarded. The options vests with 20 per cent per after

one year, 30 per cent after two years, and with 50 per

cent three years after granted, provided the participant

is still employed. The option lapses and becomes void

after a period of 5 years. If the employee resigns from

his or her position with the company, all unvested

options will lapse and becomes void. The maximum

profit gain from awarded options under the plan, is

capped according to an agreement between the

employee and the company.

3. Annual remuneration report

BEWI will for each financial year produce and make

public a remuneration report in accordance with

NPLCA Section 6-16b. Such report shall be considered

by the company’s general meeting and shall be

subject to an advisory vote by the general meeting in

accordance with NPLCA Section 5-6 (4). If the share-

holders vote against the remuneration report, the

company will explain, in the following remuneration

report, how the vote of the shareholders was taken

into account.

The remuneration report for 2022 is published on

the same date as BEWI’s annual report for 2022 and

is available from the company’s website, www.bewi.

com. The report includes details about the variable

pay programme and the company’s long-term

incentive programme (share option plan). The notes

to the financial statements for the financial year of

2022, includes an overview of the remuneration to

the executive management.

BEWI has a remuneration committee, which was

elected on 3 June 2021 for a period of two years.

Instructions for the committee was adopted at the

board meeting on 2 June 2022.

4. Temporary derogation from the

applicable remuneration policy

The board can only derogate from any element

of the remuneration policy in exceptional circum-

stances, and only in situations where the derogation

from the remuneration policy is necessary to serve

the long-term interests and sustainability of the

company, cfr. NPLCA section 16-6a (4).

Any derogation shall be explained and motivated

by the company’s and the shareholders’ interests in

retaining the executives under extraordinary circum-

stances.

Any derogation shall be considered by the boards as

required in the specific situation and for the individ-

ual employee.

The remuneration report shall include information

on remuneration awarded under such exceptional

circumstances.

5. Amendments

Material variations in the remuneration policy shall be

subject to approval by the BEWI’s general meeting,

and the policy shall be considered and approved by

the general meeting at least every fourth year.

6. Publication of the remuneration policy

The remuneration policy will be made public on

BEWI’s website, www.bewi.com.

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Board of directors’ report 

In 2022, BEWI continued to deliver solid results combined with strong growth from

both organic and strategic initiatives. Net sales amounted to EUR 1050 million for

the full year, an increase of 40 per cent from 2021, of which 17 per cent was organic

growth following successful price management and organic growth initiatives. The

company posted an adjusted EBITDA of EUR 134 million, representing 23 per cent

growth over the previous year, of which approximately half was organic.

During the year, BEWI kept a steady focus on its three stated strategic priorities:

innovation, circular economy, and profitable growth. The company strengthened

its innovation capabilities, with a top priority to accelerate the group’s progress to

becoming circular. BEWI’s ambition to lead the industry’s way towards a circular

economy is about the company’s dedication to sustainability throughout its

value chain. A description of activities, progress and key priorities going forward is

included in the ESG part of this report.

Just like the last couple of years, BEWI completed a high number of acquisitions

in 2022 and invested in further development of its existing operations, resulting

in strong growth. From an annual reported sales of EUR 748 million in 2021, the

company closed off 2022 with annual pro forma sales of more than EUR 1 500

million, including full effect of seven acquired companies. Through the acquisitions,

the company has expanded into the UK, the Baltics and Spain, broadened its

offering, significantly strengthened its market positions, and further developed

its recycling platform. In addition, several organic growth initiatives contributed

positively to the growth, including the company’s new fish box facility at Senja.

Through its integrated and diversified business model, BEWI is exposed to

many end markets and geographies. The company experienced mixed market

developments in 2022, with volatile raw material prices, resulting in margins shifting

from upstream to downstream segments. Further, demand from the building and

construction industry dampened in the second half of the year, while demand for

packaging remained stable, and demand for automotive components improved.

Going forward, BEWI’s key priorities are to integrate acquired companies and

extract synergies, adjust capacity to the current market conditions and implement

measures to improve profitability in the Nordic insulation business.

BEWI’s business model, including the diversified exposure to end markets,

combined with a strong organisation, makes the company well positioned in the

current challenging markets.

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Overview of the business

The board of directors’ report for the BEWI group

(“BEWI” or “the group”) comprises BEWI ASA (“the

parent company”) and all subsidiaries and associated

companies. The parent company, BEWI ASA, is a

Norwegian public limited liability company.

Business and locations

BEWI is an international provider of packaging, com-

ponents, and insulation solutions. The group has an

integrated and circular business model from produc-

tion of raw materials and end goods, collecting used

materials for recycling, and re-using the recycled

materials to new raw material and new products.

The group is headquartered at Hamarvik at the island

Frøya, Norway. As per 31 December 2022, the group

had a total of 67 production facilities in 13 countries

(excluding minority interests): 12 in Norway, 10 in

Sweden, 6 in Finland, 10 in Denmark, 1 in Czech

Republic, 2 in Lithuania, 3 in Poland, 3 in Germany,

3 in Belgium, 7 in the Netherlands, 3 in Spain, 3 in

Portugal, and 4 in the UK. In addition, the group

has minority interests in 6 facilities in Germany, 5 in

France, 1 at Iceland, and 1 in Poland.

BEWI’s business is organised in four segments:

RAW, Insulation & Construction (I&C), Packaging &

Components (P&C) and Circular.

RAW develops and produces the raw materials

white and grey expanded polystyrene (EPS), general

purpose polystyrene (GPPS), as well as Biofoam, a

fully bio-based particle foam. The raw material is sold

both internally and externally for production of end

products.

Insulation & Construction (I&C) develops and manu-

factures an extensive range of insulation products for

the building and construction industry. The products

are primarily composed of EPS, and extruded polysty-

rene (XPS). In addition, the segment offers insulation

boards from polyisocyanurate (PIR) and mineral wool

(MW) sandwich panels.

Packaging & Components (P&C) develops and

manufactures standard and customised packaging

solutions, as well as technical and automotive com-

ponents for customers in many industrial sectors,

such as food packaging, protective packaging for

pharmaceuticals and electronics, re-usable plastic

boxes and components for the automotive and

heating ventilation and air conditioning industry.

The material is composed primarily of EPS, expanded

polypropylene (EPP), paper/ fibre and fabricated

foam. The company also sells traded products, mainly

related to food packaging.

Circular is responsible for the group’s collection and

recycling of EPS.

A further description of each business segments is

presented in the section above, about the company’s

business model, and below, including financial high-

lights for each reporting segment.

Vision, mission, and values

BEWI’s vision is: Protecting people and goods for a

better everyday.

BEWI offers solutions that insulate buildings and

homes, packaging that protects food and medicines,

and components such as bike helmets and child

seats for cars that protect people. But the group also

takes responsibility by leading the industry’s way to

a circular economy, constantly working to improve

resource efficiency by using less materials and

energy, optimise transport, reduce waste, and reuse

and recycle more.

By managing the entire value chain, from production

of raw materials and end products, to recycling used

products back to new raw materials, BEWI can close

the loop.

BEWI’s mission is: To create value by offering sustaina-

ble packaging, components, and insulation solutions

in innovative and efficient ways.

The group has strong core values, deeply rooted in

the organisation, securing customer focus, and acting

as important guidelines in the daily work:

• Responsible

• Proud

• Stable

• Care for quality

Strategic priorities

BEWI has three strategic priorities:

• Innovation in search for more sustainable materi-

als, products, solutions, and production processes.

• Circular economy, aiming at being a the most

resource efficient provider of packaging, compo-

nents, and insulation solutions and being the first

company in its industry to close the loop.

• Profitable growth through organic initiatives and

M&A opportunities targeting increased recycling

capacity, geographic expansion, strengthening of

market positions and broadening of the company’s

offering, in particular with solution from comple-

mentary materials.

Markets and customers

As mentioned above, BEWI has production facilities

in 13 countries. However, the group has sales from

more than 20 countries and an integrated business

model, with exposure to a range of different end

markets. The business model has proven robust to

volatile raw material prices, and to various challenges

facing different industries.

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Increased raw material prices positively impacted the

profitability for the upstream segment RAW for the

first 8 to 9 months of 2022, while putting pressure

on margins for the two downstream segments.

Then, when raw material prices decreased for the

last months of the year, margins shifted between the

segments.

Following the acquisitions completed in 2022, BEWI’s

exposure to the building and construction industry

increased. Going into 2023, approximately 60 per

cent of the group’s sales are from this industry,

including sales from the RAW and Insulation &

Construction segments. Food packaging accounts for

approximately 20 per cent, the automotive industry

approximately 5 per cent and other packaging and

components approximately 15 per cent.

Demand from the building and construction industry

decreased during the second half of 2022 and into

2023. BEWI expects volumes from this industry to

end up at approximately 10 per cent lower for 2023

than for 2022 but remains confident in the long-term

outlook for its solutions to this industry, supported by

strong underlying fundamentals, including the need

to improve energy efficiency in buildings and related

regulations. Demand for food packaging, as well as

technical and automotive components has remained

stable, with positive contribution from organic initia-

tives and M&As.

Important developments in 2022

Organic growth initiatives

Growth initiatives remain a high priority for BEWI. The

company invests in organic growth and has a strong

pipeline of M&A opportunities.

Below is a description of some key investment pro-

grammes in the BEWI group:

Packaging & Components Norway

In 2021, BEWI established a new fish box facility

at Senja, Norway, where the company has a long-

term supply agreement with its customer SalMar.

Production commenced in the third quarter of 2021,

with ramp-up of volumes throughout 2022. The new

facility contributed positively to the group’s results for

the second half of 2022 and a further positive volume

development is expected in 2023.

In March 2021, BEWI announced its plans to set up a

new packaging facility on the Jøsnøya island, Hitra,

Norway. The real estate group KMC Properties ASA

is responsible for the development project, which

commenced in May 2022.

BEWI has been rewarded a long-term supply agree-

ment with the listed seafood company Mowi, the

world’s largest producer of Atlantic salmon. Under

the contract, BEWI will supply fish boxes directly to

Mowi’s processing lines from the new Jøsnøya facility,

with expected start in the second quarter of 2023.

Packaging & Components Sweden

In the first quarter of 2022, investments related to a

Heating Ventilation Air Condition (HVAC) system for

the customer Bosch was initiated at BEWI’s facility

in Skara, Sweden. Commercialisation started in the

fourth quarter of 2022, with expectations of increased

volumes of specific EPP components going forward.

New extruder in Etten-Leur

In the fourth quarter of 2021, investments into a new

twin screw extrusion line at the RAW production site in

Etten-Leur started. The new extrusion line will increase

production capacity of recycled grades and grey

products, and production is expected to start in 2023.

Insulation Benelux

In 2022, Jackon initiated an investment in a new pro-

duction line for production of construction boards

in Belgium. The production serves the European

market, as well as the UK. The new production line

will close to double current capacity. Production is

expected to start in the second half of 2023.

ICT

BEWI has initiated a transformation of its IT environ-

ment, to build a scalable platform supporting the

company’s continuous growth. This includes, among

several initiatives, investments in new infrastructure

and ERP systems, as well as improved processes and

strengthening of competence and capacities within

certain areas such as IT security.

Acquisitions

In 2022, BEWI completed a total of seven acquisitions,

all in line with the group’s strategic priorities as

referred to above, adding close to EUR 600 million in

annual net sales and EUR 40 million in EBITDA.

BEWI’s M&A opportunities are mainly within the

following categories:

• Strengthening of market positions

• Broadening product offering

• Geographic expansion

• Recycling consolidation

In addition, the company increased its ownership

from 51 to 100 per cent of the Danish paper

packaging company Cellpack (previously named

Honeycomb Cellpack) and divested real estate for

approximately NOK 900 million. Below is a descrip-

tion of the transactions completed in 2022 in the

order of appearance.

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Period Company Region Annual sales Key offering Strategic rationale

Q2 2022 Trondhjems Eskefabrikk Norway EURm ~15.5 Paper packaging Broadening offering with complimentary materials

Jablite Group UK EURm ~58.6 Packaging and insulation Geographic expansion to UK

Berga Recycling Global EURm ~34.5 Circular trading platform Expanding circular platform

Q3 2022 BalPol Baltics EURm ~34.7 Insulation Geographic expansion to the Baltics and broadening offering with

complimentary materials

Q4 2022 Jackon Holding Europe EURm ~423.0 Raw materials, packaging and insulation Strengthening market positions

Aislenvas Spain EURm ~18.3 Insulation Geographic expansion to Spain

Inoplast Czech EURm ~6.6 Circular Strengthening circular offering and volumes

Acquisition of Scandinavian paper

packaging company

On 28 February 2022, BEWI announced its intention

to acquire 100 per cent of a Scandinavian paper

packaging company. Further, on 12 April 2022, the

company announced the signing of an agreement

to acquire the Norwegian paper packaging company

Trondhjems Eskefabrikk AS. The acquisition was com-

pleted in April and the company was consolidated

into BEWI’s accounts from 1 May 2022.

Trondhjems Eskefabrikk is manufacturing fibre-based

packaging products, such as carton boxes to the

food industry, which are 100 per cent recyclable, and

a significant share of the raw material used is recycled

fibres.

The acquisition provided BEWI with an extended

offering of recyclable and recycled products, in line

with the company’s strategy to provide its customers

with complementary solutions. Also, the acquisition

supports the company’s sustainability target to

increase the use of non-fossil raw materials.

Acquisition to become 100% owner of Jablite Group

On 16 May 2022, BEWI acquired the remaining 51 per

cent of the leading UK based insulation and pack-

aging company Jablite Group. BEWI first announced

its acquisition of 49 per cent of Jablite in June 2020.

Since then, Jablite has completed a restructuring

programme, resulting in significant profitability

improvement. Jablite was consolidated into BEWI’s

accounts from 1 June 2022.

Through the acquisition, BEWI expanded into the UK,

gaining a good market position and three production

facilities which complemented the UK based opera-

tions of Jackon well.

Acquisition of the recycling platform

company Berga Recycling

On 10 June 2022, BEWI acquired Berga Recycling Inc.,

a world leader in the purchase and sale of materials

for recycling. Berga was consolidated into BEWI’s

accounts from 1 June 2022.

In 2022, Berga collected approximately 65 000 tonnes

of materials for recycling through a network of

hundreds of customers globally. The trading is com-

pleted through an online trading platform, which is

linked to Berga’s comprehensive network of logistic

partners. The trading platform provides BEWI with

access to a tool for further consolidation and growth

of its circular business, as the platform is scalable, and

easily applicable to other recycling companies.

Acquisition of the Lithuanian

insulation company BalPol

On 1 July 2022, with reference to the stock exchange

notice of 18 February 2022, BEWI announced that it

had signed an agreement to acquire the Lithuanian

insulation company UAB Baltijos Polistirenas (“BalPol”).

BalPol is the market leader in Lithuania for insulation

solutions from expanded polystyrene (EPS) and

polyisocyanurate (PIR) and is also a provider of EPS

packaging solutions. The transaction was closed in

August 2022 and BalPol was consolidated into BEWI’s

accounts from 1 September 2022.

BalPol, who changed its name to BEWI Lithuania as

of 1 March 2023, operates two downstream facilities,

whereas one produces PIR and mineral wool (MW)

sandwich panels and PIR insulation boards and the

other produces insulation solutions from EPS for

construction and packaging products from EPS and

expanded polyethylene (EPE).

Through the acquisition, BEWI expanded its geo-

graphic footprint into the Baltics, enabling sales

growth, as well as establishing a platform for circular

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activities. At the same time, the company was broad-

ening its insulation offering.

Completion of acquisition of Jackon Holding

On 19 October, BEWI completed its acquisition of

Jackon Holding, including issuance of 32 070 000

new shares directed to the Akselsen family and their

investment company HAAS AS, as consideration for

their 50 per cent holding of the shares of Jackon. The

shares were subject to a 12-months lock-up from

issuance. The shareholders that held the remaining

50 per cent received approximately NOK 1.3 billion in

cash upon closing.

Jackon was consolidated into BEWI’s accounts from

1 November 2022. At the time of closing, Jackon had

approximately 970 employees and owned 20 facilities

in Norway, Sweden, Finland, Denmark, Germany, and

Belgium.

The approval of the transaction from the competition

authority in Finland was conditional upon BEWI

divesting two insulation facilities, located in Tarvasjoki

and Ruukki. In Norway, the approval was conditional

upon divestments of Jackon’s packaging facility in

Alta and the share (63 per cent) of the packaging

facility called Kasseriet in Gratangen. All divestments

were completed in October 2022.

In its report for the fourth quarter of 2022, BEWI

maintained its previously communicated expecta-

tions of synergies of more than EUR 15 million.

Acquisition of Spanish insulation company Aislenvas

On 28 November 2022, BEWI entered an agreement

to acquire 80 per cent of the Spanish insulation

company Aislenvas. The acquisition was completed in

December 2022, and the company was consolidated

into BEWI’s accounts from 31 December 2023.

Aislenvas operates three facilities, all in the same

industrial area, manufacturing a variety of EPS-

based solutions. The company’s key products

are insulation solutions, including EPS boards for

underfloor heating and EPS panels for External

Thermal Insulation Composite Systems (ETICS) used

to improve the energy efficiency for building renova-

tions.

Acquisition to become 100% owner

of recycling company Inoplast

In December 2022, BEWI acquired an additional 66

per cent of the Czech recycling company Inoplast,

becoming owner of 100 per cent of the company.

BEWI first announced its acquisition of 34 per cent of

Inoplast in March 2021. Inoplast was consolidated into

BEWI’s accounts from 31 December 2022.

Inoplast specialises in recycling of plastics, mainly

expanded polystyrene (EPS), but also other types of

plastics.

Other important events

Closing of first tranche in divestment

of industrial real estate portfolio

On 30 June 2022, BEWI announced that it had

entered an agreement with KMC Properties ASA for

the sale of up to 24 properties and one land plot,

with a gross asset value of up to approximately

NOK 2.0 billion.

In November 2022, the first tranche of the transaction

was completed, including 11 properties and one land

plot in Norway and Sweden valued at approximately

NOK 900 million. Net of taxes, BEWI received approx-

imately NOK 850 million in cash for the properties. In

connection with the transaction, long term triple net

rental agreements were entered for the properties.

Further, KMC Properties has an exclusive right to

acquire the remaining part of the portfolio valued

at up to NOK 1.1 billion, including, but not limited to

properties in Belgium, Finland, and Denmark, within

twelve months from the agreement was entered on

30 June 2022.

Synbra concluding settlement agreement

with the EU Commission

On 29 November 2022, BEWI announced that its

subsidiary, Synbra, had concluded a settlement

agreement with the European Commission entailing

a payment of EUR 17.2 million. The settlement

was related to Synbra’s potential involvement in

anticompetitive practices of styrene monomer

purchasing during 2013 and 2014, i.e., five years prior

to BEWI’s acquisition of Synbra.

As part of the acquisition of Synbra, BEWI received

customary warranties from the sellers of Synbra. BEWI

intends to pursue the insurance for coverage, and

subsequently potentially the sellers.

Implications of Russia’s invasion of Ukraine

BEWI’s exposure to Russia has been relatively modest,

mainly including sales of EPS beads from segment

RAW and sales of food packaging products to the

Russian fishing industry. Net sales for the group to

Russia amounted to EUR 29.2 million for the full year

2021 and to EUR 14.0 million for the full year 2022.

During the first quarter of 2022, BEWI stopped all

sales of EPS beads to Russia. Sales to the Russian

fishing vessels, mainly from the Norwegian opera-

tions, was stopped in the third quarter, following the

Norwegian authorities’ position.

For the full-year of 2022, the financial impact from

sanctions and reduced business volume with Russia

was limited to EUR 0.1 million in provisions for doubt-

ful accounts and EUR 0.2 million in write-down of

inventory ear-marked for Russian customers.

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Financial review

All amounts in brackets are comparative figures for 2021

unless otherwise specifically stated.

The following financial review is based on the con-

solidated financial statements of BEWI ASA and its

subsidiaries. The statements have been prepared in

accordance with International Financial Reporting

Standards (IFRS).

In the view of the board, the income statement,

the statements of comprehensive income, changes

in equity and cash flow, the balance sheet and the

accompanying notes provide satisfactory information

about the operations, financial results and position of

the group and the parent company on 31 December

2022.

Consolidated statement of income

Net sales increased to EUR 1 050.4 million for the

full year 2022 (748.2), corresponding to an increase

of 40.4 per cent, of which 24.4 per cent was driven

by the net of acquisitions and divestments and 16.5

per cent was organic growth, mainly following price

increases.

Adjusted EBITDA ended at EUR 133.6 for the full year

(109.0), an increase of 22.6 per cent, of which 11.5

per cent was net of acquisitions and divestments,

and 10.7 per cent was organic growth. All segments

except Circular contributed positively to the organic

growth. The adjusted EBITDA margin for the year

ended at 12.7 per cent (14.6).

Operating income (EBIT) came in at EUR 68.0 million

for the period (67.8). In 2022, EBIT was positively

impacted by the EUR 9.6 and EUR 1.1 million gain

from revaluation of shares in Jablite and Inoplast

respectively, following BEWI’s acquisition of the

remaining shares in these companies and the subse-

quent consolidations. EBIT was negatively impacted

by the EUR 17.2 million settlement agreement with

the European Commission, as explained above.

Net financial items amounted to a negative EUR 25.5

million for the year (-18.8). The increased financial

expenses are explained by higher interest rates

and increased interest-bearing debt from acquired

companies throughout the year. The year was

also negatively impacted by a EUR 3.7 million fair

value adjustment of shares in the listed real estate

company KMC Properties ASA (-0.5) and a EUR 2.9

million revaluation of an option to acquire a minority

shareholding (-0.0).

Taxes amounted to a negative EUR 7.2 million for the

year (-14.6). The main factors impacting the effective

tax rate are the positive tax effect related to the sale

and leaseback transactions with KMC Properties

and the settlement agreement with the European

Commission.

Net profit for 2022 was EUR 35.4 million (34.4).

Financial position and liquidity

Consolidated financial position

Total assets amounted to EUR 1 300.7 million on

31 December 2022, compared to EUR 785.7 million at

year-end 2021. The increase mainly relates to acquired

companies.

Total equity amounted to EUR 429.8 million at the

end of 2022 representing an equity ratio of 33.0 per

cent, up from EUR 262.2 million and an equity ratio of

33.4 per cent at the end of 2021.

Net debt amounted to EUR 550.7 million on

31 December 2022 (382.3 excluding IFRS 16), com-

pared to EUR 196.4 million at year-end 2021 (120.3

excluding IFRS 16).

Cash and cash equivalents were EUR 47.5 million on

31 December 2022, compared to EUR 142.3 million at

year-end 2021.

Consolidated cash flow

Cash flow from operating activities amounted to

EUR 40.9 million for the full year of 2022 (67.4), includ-

ing an increase in working capital of EUR 46.9 million

(6.8). The increase in working capital was mainly

related to increased inventory levels in segment

RAW and Circular and lower accounts payable which

mainly was related to timing of styrene payments.

Cash flow used for investing activities amounted to

a negative EUR 179.7 million (-85.9). Capital expendi-

tures were higher than for 2021, driven by specific

projects and newly acquired companies. Cash

outflow from business acquisitions noted a signifi-

cant increase due to the many acquisitions during the

year, of which the Jackon acquisition accounted for

the biggest portion. The full year numbers were also

largely impacted by the sale and lease back transac-

tions completed in November, following the closing

of the Jackon transaction in October.

Cash flow from financing activities amounted to

a positive EUR 46.9 million (positive 107.3) and was

dominated by the utilisation of the revolving credit

facilities in connection with the Jackon acquisition,

partly offset by reduced leasing liabilities and

dividends paid. The positive cash flow in 2021 was

mainly explained by the bond refinancing and a new

share issue.

In total, the cash flow for 2022 amounted to a nega-

tive EUR 91.9 million (positive 89.2).

Capital expenditures (CAPEX)

For the full year of 2022, CAPEX amounted to EUR

43.7 million (34.7), of which EUR 16.0 million related to

greenfield and other customer specific projects, and

EUR 4.2 million related to CAPEX in Jackon, which was

consolidated into BEWI’s accounts from 1 November

2022.

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In total, Jackon recorded approximately EUR 17

million in CAPEX in 2022. The majority was related

to investments in new production lines, to support

organic growth, including construction board pro-

duction, fully robotic production line for foundation

elements, and production for underlayment for

flooring products.

BEWI has announced an annual target for invest-

ments (CAPEX) of 2.5 per cent of net sales excluding

greenfield projects, customer specific initiatives and

ICT investments. For the full year of 2022, such invest-

ments accounted for 2.6 per cent.

For further information about the company’s invest-

ment programmes, see section above about organic

growth initiatives and investment programmes.

Segment information

Segment RAW

Segment RAW develops and produces white and

grey expanded polystyrene (EPS), general purpose

polystyrene (GPPS), as well as Biofoam, a fully

bio-based particle foam. The raw material is sold

internally and externally for production of end

products. BEWI produces raw material at 3 facilities

in Finland (Porvoo), the Netherlands (Etten-Leur) and

Germany (Wismar). The group has an annual capacity

of approximately 280 000 tonnes EPS.

Key figures

Amounts in million EUR

(except percentage) 2022 2021

Net sales 418.0 347.9

Of which internal 142.0 104.6

Of which external 276.0 243.3

Net operating expenses -361.0 -293.9

Adjusted EBITDA 57.0 54.1

Adjusted EBITDA % 13.6% 15.5%

Items affecting comparability -17.0 0.1

EBITDA 40.0 54.2

Depreciations -4.3 -4.2

From 1 November 2022, the financials for Jackon

Holding were consolidated into BEWI’s accounts.

Net sales for segment RAW for the full year of 2022

were EUR 418.0 million (347.9), up by 20.1 per cent

from 2021, mainly explained by increased sales prices.

The consolidation of Jackon contributed EUR 12.5

million to the sales.

Adjusted EBITDA ended at EUR 57.0 million for the

full year (54.1). The improvement primarily relates to a

strengthened GAP. The consolidation of Jackon contrib-

uted EUR 1.2 million to the adjusted EBITDA for 2022.

Segment Insulation & Construction (I&C)

Segment I&C develops and manufactures an extensive

range of solutions for insulation and other applications

for the building and construction industry. The prod-

ucts are primarily composed of expanded polystyrene

(EPS) and extruded polystyrene (XPS). The Nordic

markets account for approximately 40 per cent of the

sales, whereas other European countries account for

the remainder. As per 31 December 2022, and follow-

ing recent acquisitions, BEWI operated 28 facilities in 11

countries producing insulation solutions. In addition,

BEWI has minority interests in 5 facilities in France and

6 facilities in Germany.

Measures for greater energy efficiency are important

drivers of demand in the European construction

market. Effective insulation for walls, ceilings and

floors are the most cost-efficient way of achieving

greater energy efficiency and reducing greenhouse

gas emissions.

Insulation markets are mostly local. The degree of

product specialization varies greatly among different

countries and markets. Around 70 per cent of the

insulation material is used for new construction and

the remainder for renovations.

Key figures

Amounts in million EUR

(except percentage) 2022 2021

Net sales 333.9 195.4

Of which internal 4.0 2.8

Of which external 329.9 192.7

Net operating expenses -302.8 -173.9

Adjusted EBITDA 31.1 21.6

Adjusted EBITDA % 9.3% 11.0%

Items affecting comparability 2.5 0.9

EBITDA 33.6 22.5

Depreciations -11.3 -7.9

Kemisol was consolidated from 1 December 2021,

Jablite from 1 June 2022, BalPol from 1 September

2022, and Jackon from 1 November 2022.

Net sales amounted to EUR 333.9 million for the full

year of 2022 (195.4), an increase of 70.8 per cent. Of

this, 25.2 per cent was organic growth mainly driven

by increased sales prices related to the higher cost of

raw materials. Acquisitions and divestments contrib-

uted net 46.2 per cent for the full year.

Adjusted EBITDA increased with EUR 9.5 million and

amounted to EUR 31.1 million (21.6). This represents

an increase of 44.3 per cent, of which 29.5 per cent,

i.e., EUR 6.4 million, was organic growth.

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Segment Packaging & Components (P&C)

Segment P&C develops and manufactures standard

and customised packaging solutions and technical

components for customers in many industrial sectors.

The solutions are composed of a variety of materials,

including expanded polystyrene (EPS), expanded

polypropylene (EPP), fabricated foam, carboard, fibre

(paper), as well as other materials, enabling a broad

product offering. Examples include boxes and bags

for transportation of fresh fish and other food, protec-

tive packaging for pharmaceuticals and electronics,

and components for cars and heating systems. In

addition, the company sells traded products, mainly

related to food packaging. As per 31 December 2022,

BEWI operated 35 facilities in 9 countries producing

P&C components.

Key figures

Amounts in million EUR

(except percentage) 2022 2021

Net sales 391.9 295.6

Of which internal 10.0 6.9

Of which external 381.9 288.7

Net operating expenses -343.6 -255.3

Adjusted EBITDA 48.3 40.3

Adjusted EBITDA % 12.3% 13.6%

Items affecting comparability 4.9 -0.4

EBITDA 53.3 39.9

Depreciations -19.7 -16.6

Trondhjems Eskefabrikk was consolidated from 1 May

2022, Styropack (packaging part of Jablite) from

1 June 2022, and Jackon from 1 November 2022.

Net sales amounted to EUR 391.9 million (295.6), an

increase of 32.6 per cent. Excluding acquisitions, sales

increased by 11.5 per cent explained by increased

sales prices in all regions, as well as increased

volumes at the Senja facility.

Adjusted EBITDA amounted to EUR 48.3 million

(40.3), up by 20.0 per cent. Excluding acquisitions,

adjusted EBITDA increased by 7.9 per cent.

Circular

Segment Circular is responsible for BEWI’s collection

and recycling of EPS. Since the establishment of the

business unit in 2018, the segment has launched

several initiatives, in addition to acquisitions, to

increase the group’s recycling capacity. At year-end

2022, the group had access to a recycling capacity of

approximately 29 000 tonnes and a collection run-

rate of approximately 38 000 tonnes.

BEWI has announced an annual target of recycling

60 000 tonnes of EPS by the end of 2026. The number

refers to approximately one-third of BEWI’s annual

production, which is the volume BEWI puts into the

end markets with a lifetime less than one year. As

per 31 December 2022, BEWI operated 7 recycling

facilities in 6 countries.

Key figures

Amounts in million EUR

(except percentage) 2022 2021

Net sales 63.1 24.0

Of which internal 0.7 0.6

Of which external 62.4 23.4

Net operating expenses -60.6 -23.4

Adjusted EBITDA 2.5 0.6

Adjusted EBITDA % 3.9% 2.5%

Items affecting comparability 0.1 -0.3

EBITDA 2.6 0.3

Depreciations -1.7 -1.0

Volker Gruppe was consolidated from 1 October 2021

and Berga Recycling from 1 June 2022.

Net sales for segment Circular for the full year 2022

came in at EUR 63.1 million (24.0), up by 162.7 per

cent from 2021, of which 46.9 per cent was organic

growth coming from higher volumes and increased

sales prices.

Adjusted EBITDA ended at EUR 2.5 million for year

(0.6). The improvement relates to the acquisition of

Berga Recycling.

In 2022, BEWI collected a total of 29 440 tonnes of

EPS for recycling, including seven months of recy-

cling volumes from Berga Recycling, representing an

increase of 49.2 per cent since 2021.

Corporate

Revenues and costs related to group functions that

do not belong to any specific business segment are

booked as unallocated costs. For the full year of 2022,

the contribution from corporate costs was negative

EUR 5.6 million (-7.6).

Research and development (R&D)

BEWI has three strategic priorities, of which inno-

vation is one of the priorities. BEWI is constantly

searching for more sustainable materials, products,

solutions, and production processes, aiming at

improving resource efficiency and increasing the use

of recycled materials. The group conducts R&D activ-

ities at selected upstream and downstream facilities,

and the activities are coordinated and overseen by

group and R&D functions in the segments.

For the full year 2022, CAPEX related to R&D

amounted to EUR 0.4 million.

Going concern

The annual financial statements for 2022 have been

prepared on the assumption that BEWI is a going

concern pursuant to section 3-3a of the Norwegian

Accounting Act. With reference to the group’s results

and financial position, as well as forecasts for the

years ahead, the conditions required for continuation

as a going concern are hereby confirmed to exist.

In the opinion of the board of directors, the group’s

financial position is good.

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Parent company results and

allocation of net profit

The financial statements for the parent company

are prepared in accordance with the Norwegian

Accounting Act and generally accepted accounting

principles in Norway.

The parent company had a loss before taxes of

NOK 30.7 million (a profit of NOK 40.9 million). The

parent company had payable taxes of NOK 6.9 million

(NOK 7.6 million) and thus recorded a net loss of

NOK 23.8 million (net profit of NOK 33.3 million).

The board proposes a dividend of NOK 0.60 per

share, corresponding to the following allocation of

the net profit of NOK 115.0 million for the parent

company, based on 191 722 290 shares outstanding:

Amounts in million NOK

Transferred to other equity -138.8

Dividend 115.0

Total allocated -23.8

Following an evaluation, the board has concluded

that the group will have an equity and liquidity after

paying the proposed dividend, which is acceptable in

relation to the risks and scope of its activities.

Risks and risk management

BEWI is exposed to several risk factors, categorized

into operational risks, including market risk and risk

related to production, legal risks, sustainability related

risks and financial risks. One of the most important

risk factors, is the group’s exposure to the change in

the price of the raw material styrene monomers.

The raw material is traded on the world market

and purchased with a combination of spot and

contract prices. The purchase price is partly linked

to the level of supply and demand, and partly to the

price of oil. The price of styrene is set in dollars and

euro, and naturally entails a risk exposure against

the Scandinavian currencies. The price of the final

product to end customers in the Scandinavian coun-

tries is largely connected to the price of styrene, thus

entailing a reduction of currency risk.

A detailed description of the financial risks and

uncertainty factors can be found in the notes to the

financial statements. An overview of the company’s

most important operational risks, legal risks and

sustainability related risks can be found in a separate

section of this report.

Corporate governance

Good corporate governance provides the founda-

tion for long-term value creation, to the benefit of

shareholders, employees, and other stakeholders.

The board of directors of BEWI has established a set

of governance principles to ensure a clear division of

roles between the board of directors, the executive

management, and the shareholders. The principles

are based on the Norwegian Code of Practice for

Corporate Governance.

BEWI is subject to annual corporate governance

reporting requirements under section 3-3b of the

Norwegian Accounting Act and the Norwegian Code

of Practice for Corporate Governance, cf. section

4.4 of the Oslo Rule Book II, rules for issuers listed at

the Oslo Børs. The Accounting Act may be found (in

Norwegian) at www.lovdata.no. The Norwegian Code

of Practice for Corporate Governance, which was

last revised on 14 October 2021, may be found at

www.nues.no.

The annual statement on corporate governance for

2022 has been approved by the board and can be

found in a separate section of this annual report.

Corporate social responsibility

BEWI is subject to corporate responsibility

reporting requirements under section 3-3c of the

Norwegian Accounting Act. A separate report on

ESG (Environmental, Social, Governance) is included

in this annual report. The report has been prepared

in referance to the Global Reporting Initiative

(GRI) Standards (2021). The report covers material

environmental, social, and economic impacts and

the management approach of BEWI ASA (BEWI) for

the calendar year 2022. The report aligns with the

company’s financial reporting period and represents

BEWI’s Communication on Progress to demonstrate

its commitment to the United Nations Global

Compact.

BEWI aims to create value for customers, sharehold-

ers, employees, and the society at large, first and

foremost, by producing a variety of sustainable

products and solutions supporting its customers’

sustainability strategies.

BEWI’s license to operate rests on confidence from

its key stakeholders. All employees are therefore

required to comply with the group’s code of conduct

to ensure high ethical standards in its business

conduct and relations with customers, suppliers, and

employees.

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BEWI is characterised by continuous growth and

development. The group launched a sustainability

strategy in March 2021 and reports on its progress to

selected KPI’s on an annual basis.

Employees and organisation

BEWI’s most important asset is the knowledge and

skills of its employees. As of 31 December 2022, BEWI

had 3 293 employees, up from 2 097 on 31 December

2021. The increase mainly reflects acquisitions during

the year.

The group had an average work force of 2 372 full

time equivalents (FTEs) in 2022, compared to an

average of 1 662 in 2021.

Long-term incentive programme

and employee share offering

In November 2020, BEWI launched a long-term

incentive programme for selected key employees.

The programme is a share options programme.

Pursuant to the vesting schedule, 20 per cent of the

options vested one year after the day of grant, i.e., in

November 2021, and another 30 per cent vested two

years after the day of grant, in November 2022. The

remaining 50 per cent will vest in November 2023.

Vesting is dependent on the option holder still being

employed in the company. The strike price at grant

date for all options granted was NOK 24.48 per share,

which was based on the market price plus 10 per

cent when granted. At year-end 2022, the strike price

amounted to NOK 22.94 per share.

Options that have not been exercised within 5 years

from the date of grant will lapse and become void.

On 31 December 2022, a total of 2 372 500 options

were outstanding, corresponding to 1.2 per cent

of the total number of outstanding shares. 972 250

options were vested but not exercised at year-end

2022.

The board of directors

From the annual general meeting in 2021, BEWI’s

board of directors consisted of Gunnar Syvertsen as

the chairperson and Stig Wærnes, Kristina Schauman,

Rik Dobbelaere, and Anne-Lise Aukner as directors.

On 16 February 2022, BEWI held an extraordinary

general meeting whereas Andreas M. Akselsen,

representing HAAS AS, the company’s second

largest shareholder, was elected new board member,

replacing Stig Wærnes, subject to – and with effect of

completion of the Jackon transaction. Thus, Andreas

M. Akselsen became a director of the board as of

19 October 2022, when the acquisition of Jackon

was formally completed. Further information on the

directors of the board, as well as the use of board

committees are included in the section about corpo-

rate governance in this report.

BEWI’s Articles of Association provide that the board

shall consist of between three and eight members.

BEWI has an insurance covering the responsibilities

of the board of directors, the CEO and other senior

management.

Health, safety and working environment

Working environment, sickness

absence, incidents, and injuries

The working environment in the BEWI group is

perceived as good. In March 2021, BEWI launched

a sustainability strategy, setting out the group’s

promise by 2030. The commitments were divided

in three main categories: (1) Becoming circular, (2)

Actively engage in partnerships and (3) Contribute

to an inclusive society, of which the latter includes

being a responsible employer. This includes the

company’s commitments to making gender

equality a reality and providing equal opportunities

irrespective of ethnical background, religion, age, or

sexual orientation. It also includes that 100 per cent

of the employees of BEWI will have a development

plan which will enable them to grow, have a voice,

engage, and reach their full potential. The group will

never compromise with health and safety and will

work actively to ensure preventive actions with zero

accidents.

In 2022, the group had 5.3 per cent absence due to

illness, compared to 4.8 per cent in 2021. The group

reported 54 accidents in 2022, compared to 26 in

2021. Out of these accidents, 25 had less than 5 days

of sickness and 7 accidents resulted in more than 21

days of sick leave. The cost common type of acci-

dents is fall- or cut accidents. All accidents, regardless

of the severity, were followed up with an analysis

of root cause and implementation of preventative

measures.

For further information about management of health

and safety, employee satisfaction and leadership

development, see the ESG performance report of this

report.

Equal opportunities

The board of directors of BEWI ASA consists of five

members, of which two are women. The group

has an executive management team consisting of

six executives, of which three are men and three

are female. The group is committed to promoting

equality and equal treatment at all stages of the

organisation and other relationships. For further

information about equal opportunities in the group,

see section in the sustainability report.

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Share and shareholder matters

BEWI ASA’s shares have been listed at the Euronext

Oslo Børs since December 2020.

On 31 December 2022, the total number of shares

outstanding in BEWI ASA was 191 347 992, each with

a par value of NOK 1. Each share entitles to one vote.

During 2022, the share traded between NOK 78.80

and NOK 43.00 per share, with a closing price of

NOK 45.90 on 30 December 2022.

BEWI has one share class, and all shares have equal

rights. The shares are registered in the Norwegian

Central Securities Depository (VPS). The company’s

registrar is DNB Markets. The shares carry the securi-

ties number ISIN NO 001 0890965.

On 31 December 2022, the 20 largest shareholders

of BEWI ASA held 93.49 per cent, of which the

largest shareholders are BEWI Invest AS, where the

Bekken family is a majority shareholder, holding 51.19

per cent, HAAS AS, owned by the Akselsen family,

holding 16.76 per cent, Kverva Industrier, owned by

the Witzøe family, holding 7.99 per cent.

General meetings

On 16 February 2022, BEWI held an extraordinary

general meeting. At the meeting, the board was

authorised to issue a total of 32 070 000 consideration

shares to HAAS AS, the owner of 50 per cent of

Jackon Holding AS, subject to completion of the

transaction.

In addition, Andreas M. Akselsen was elected new

board member, replacing Stig Wærnes, subject

to – and with effect of completion of the Jackon

transaction.

The general meeting also approved the nomination

committee’s proposal for changes in the composition

of the nomination committee.

BEWI held its annual general meeting on 2 June 2022.

All resolutions proposed by the board of directors

were approved, including the proposal to distribute

dividends of NOK 1.10 per share. The dividends were

distributed after completion of the Jackon transac-

tion.

BEWI’s annual general meeting for 2023 is planned to

be held on 1 June 2023.

Dividends

BEWI targets annual dividends of 30 to 50 per cent of

the group’s net profit. When deciding on the annual

dividend, the board of directors will consider the

group’s financial position, investment plans as well as

the needed financial flexibility to provide for sustain-

able growth.

In 2022, BEWI ASA distributed dividends of NOK 1.10

per share based on the results for the financial

year of 2021. The dividends were distributed on

18 November 2022, following completion of the

Jackon transaction in October. A total of EUR 20.8

million was distributed.

On 15 February 2023, the board of directors of BEWI

proposed to pay a dividend of NOK 0.60 per share for

the financial year of 2022. The proposal is in line with

the company’s dividend policy and will be dealt with

at BEWI’s annual general meeting on 1 June 2023.

Events after the close of the period

Measures to adjust capacity and

reduce costs in Nordic Insulation

Following the combination with Jackon, and in

response to the current market conditions, BEWI

has initiated measures to optimize its production

footprint and reduce capacity to current demand.

This includes reduced shifts at several facilities, and

temporary closure of one facility. In addition, the

company has taken measures to reduce the cost base

of its Nordic Insulation business. In total, the company

expects annual savings of approximately EUR 5

million.

Exercise of options and

increase of share capital

On 18 February 2023, BEWI announced that, follow-

ing exercise of options by option holders under the

company’s share option programme, the board had

resolved to increase the Company’s share capital by

NOK 374 298, by the issuance of 374 298 new shares

at a subscription price of NOK 22.96 per share by use

of the authorisation granted by the general meeting

on 2 June 2022.

Agreement to divest real estate

for NOK 348 million

On 31 March 2023, BEWI announced, with reference

to the real estate transaction announced on 30 June

2022, that the company had entered an agreement

with KMC Properties ASA for the divestment of four

properties, of which three properties in Finland

and one in Denmark valued at NOK 348.3 million.

The purchase price will be settled in the form of an

amount equal to approx. NOK 200.0 million in cash

and NOK 148.3 million in 20 235 931 new shares in

KMC Properties at a subscription price of NOK 7.33

per share. KMC Properties has an exclusive right to

acquire the remaining part of the portfolio until

30 June 2023.

Through the acquisition of the 20 235 931 new shares

in KMC Properties, BEWI will increase in shareholding

to a total of 28 807 359 shares corresponding to 8.4

per cent of the issued share capital of KMC Properties.

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Outlook

During 2022, BEWI experienced a mixed market

development between segments and regions, and

this has continued into 2023. Due to the current

macro environment, markets are characterised by

high uncertainty. However, BEWI has proven its ability

to manoeuvre well in volatile markets, and the com-

pany’s integrated and diversified business model has

proven to be a competitive advantage in challenging

markets.

In the second half of 2022, the building and construc-

tion industry showed reduced activity, especially in

the Nordics. Following the acquisitions completed in

2022, approximately 60 per cent of BEWI’s business

is exposed to this industry. The company expects

approximately 10 per cent lower demand from

building and construction for 2023 than for 2022.

Still, the long-term demand for insulation solutions is

supported by strong market fundamentals, including

the need to improve energy-efficiency in buildings

and related regulations. The demand for food pack-

aging is expected to remain stable, with positive

contribution from organic initiatives and M&As, and

demand for both technical and automotive compo-

nents is solid.

Going forward, BEWI will continue focusing on

integrating acquired companies, including extracting

synergies, and adjust production capacity and cost

level to the current market conditions.

Based on the company’s financial position, invest-

ment plans and growth ambitions, the board of

directors of BEWI will propose to the general meeting

to pay dividends of NOK 0.60 per share, in line with

the company’s dividend policy of 30 to 50 per cent of

net profit. The dividends are proposed to be distrib-

uted following a sale of the company’s real estate

portfolio.

The board of directors remain confident in BEWI’s

robust business model, strong organisation, and the

outlook for continued profitable and sustainable

growth of the company.

Trondheim, Norway, 24 April 2023

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the board

Anne-Lise Aukner

Director

Rik Dobbelaere

Director

Andreas M. Akselsen

Director

Kristina Schauman

Director

Christian Bekken

CEO

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Statement by the board of directors and CEO

We confirm, to the best of our knowledge, that

• The group financial statements for the period

from 1 January to 31 December 2022 have been

prepared in accordance with IFRS, as adopted by

the EU

• The financial statements of BEWI ASA for the

period from 1 January to 31 December 2022 have

been prepared in accordance with Norwegian

Accounting Act and accounting standards and

practices generally accepted in Norway

• The financial statements give a true and fair view

of the group and the company’s consolidated

assets, liabilities, financial position, and results of

operations

• The board of directors’ report provides a true and

fair view of the development and performance of

the business and the position of the group and the

company, together with a description of the key

risks and uncertainty factors that the group and

the company is facing.

Trondheim, Norway, 24 April 2023

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the board

Anne-Lise Aukner

Director

Rik Dobbelaere

Director

Andreas M. Akselsen

Director

Kristina Schauman

Director

Christian Bekken

CEO

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Financial

statements



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Contents

The Group

Consolidated comprehensive income statement

Consolidated statement of financial position

Consolidated statement of changes in equity

100

Consolidated cash flow statement

101

Accounting principles and notes to the accounts

102

Note 01 General information

102

Note 02 Summary of key accounting principles

102

Note 03 Financial risk management

107

Note 04 Critical accounting estimates and assessments

112

Note 05 Net sales distribution and segment information

112

Note 06 Employee remuneration etc.

115

Note 07 Remunerations to auditors

117

Note 08 Leasing

117

Note 09 Financial income and expense

118

Note 10 Exchange differences – net

119

Note 11 Income tax

119

Note 12 Intangible assets

121

Note 13 Tangible assets

123

Note 14 Business acquisitions

124

Note 15 Sale of business

129

Note 16 Shares in associates

130

Note 17 Financial instruments per category

132

Note 18 Account receivables

133

Note 19 Inventory

134

Note 20 Prepaid expenses and accrued income

134

Note 21 Cash and cash equivalents

134

Note 22 Share capital

134

Note 23 Share-based incentive programme

136

Note 24 Earnings per share

137

Note 25 Borrowings

137

Note 26 Pensions and similar obligations to employees

140

Note 27 Other provisions

143

Note 28 Accrued expenses and deferred income

143

Note 29 Contingent liabilities

143

Note 30 Pledged assets

144

Note 31 Related parties

144

Note 32 Adjustments for non-cash items, etc.

146

Note 33 Subsequent events

147

Parent company

Income statement of the parent company

148

Statement of financial position of the parent company

149

Statement of financial position of the parent company

150

Cash flow statement for the parent company

151

Accounting principles and notes to the accounts

152

Note 01 General information

152

Note 02 Summary of key accounting principles for the parent company

152

Note 03 Net sales

153

Note 04 Employee remuneration etc.

153

Note 05 Interest income and interest expense and similar items

154

Note 06 Income tax on the profit for the year

155

Note 07 Shares in subsidiaries and associates

155

Note 08 Cash and bank balances

157

Note 09 Share capital

157

Note 10 Equity

158

Note 11 Receivables and liabilities

158

Note 12 Related parties

159

Note 13 Remuneration to auditors

159

Auditor’s report

160

Alternative Performance Measures

165

9696

Consolidated comprehensive income statement

million EUR (except numbers for EPS)	Note	2022	2021
Operating income
Net sales	5	1 050.4	748.2
Total operating income		1 050.4	748.2
Operating expenses
Raw materials and consumables	19	-432.4	-304.9
Goods for resale	19	-136.1	-92.2
Other external costs	7, 8, 10	-229.9	-135.9
Personnel costs	6	-149.3	-116.2
Depreciation/amortisation and impairment tangible and intangible assets	12, 13	-47.2	-37.8
Share of income from associated companies		2.8	5.7
Capital gain/loss from sale of asset		9.7	1.0
Total operating expenses		-982.5	-680.4
Operating income (EBIT)		68.0	67.8
Financial income		2.0	0.4
Financial expense		-27.4	-19.2
Financial income and expense - net	9	-25.5	-18.8
Income before taxes		42.5	49.0
Income tax	11	-7.2	-14.6
Net income for the year		35.4	34.4

million EUR (except numbers for EPS)	Note	2022	2021
Other comprehensive income:
Items that may later be reclassified to profit and loss
Exchange rate differences		-2.2	4.1
Items that will not be reclassified to profit and loss
Remeasurements of net pension obligations		-4.2	4.0
Income tax pertinent to remeasurements of net pension obligations		0.8	-0.8
Other comprehensive income after tax		-5.6	7.3
Total comprehensive income for the period		29.7	41.7
Net income for the year attributable to:
Parent company shareholders		34.4	35.7
Non-controlling interest		0.9	-1.3
Total comprehensive income attributable to:
Parent company shareholders		28.7	42.9
Non-controlling interest		1.0	-1.2
Earnings per share	24
Average number of shares:		164 109 723	153 336 017
Diluted average number of shares:		165 490 895	154 116 368
Earnings per share (EPS), basic (EUR)		0.21	0.23
Earnings per share (EPS), diluted (EUR)		0.21	0.23
Earnings per share (EPS), basic (NOK)		2.12	2.37
Earnings per share (EPS), diluted (NOK)		2.10	2.36

EPS in NOK is calculated using average rates for the period

9797

Consolidated statement of financial position

million EUR	Note	31 Dec 2022	31 Dec 2021
ASSETS
Non-current assets
Intangible assets
Goodwill		262.8	113.0
Other intangible assets		135.2	80.3
Total intangible assets	12	398.0	193.3
Tangible assets
Land and buildings		238.6	91.3
Plant and machinery		178.0	101.3
Equipment, tools, fixtures and fittings		28.2	12.4
Construction in progress and advance payments for property, plant and equipment		23.9	10.1
Total tangible assets	13	468.7	215.1
Financial assets
Shares in associates	16	13.2	13.7
Net pension assets		2.6	6.7
Non-current receivables associates		0.1	4.2
Other non-current receivables		0.1	0.1
Other shares and participations		6.1	9.8
Total financial assets		22.1	34.5
Deferred tax assets	11	4.4	3.0
Total non-current assets	17	893.2	445.9

million EUR	Note	31 Dec 2022	31 Dec 2021
Current assets
Inventory
Raw material and consumables		53.9	30.3
Work-in-progress		5.4	3.4
Finished goods and goods for resale		108.3	47.3
Total inventory	19	167.6	81.0
Current receivables
Account receivables	18	156.7	98.8
Current tax asset		0.7	0.6
Other current receivables		14.2	11.9
Prepaid expenses and accrued income	20	12.5	5.0
Other financial assets		8.3	0.2
Cash and cash equivalents	21	47.5	142.3
Total current receivables	17	239.9	258.8
Total current assets		407.5	339.8
TOTAL ASSETS		1 300.7	785.7

9898

Consolidated statement of financial position

million EUR	Note	31 Dec 2022	31 Dec 2021
EQUITY AND LIABILITIES
Equity
Share capital	22	18.2	14.8
Additional paid-in capital		322.3	166.9
Reserves		-15.3	-9.6
Accumulated profit or loss (including net profit for the year)		94.7	80.3
Equity attributable to parent company shareholders		419.8	252.4
Non-controlling interests		10.0	9.8
Total Equity		429.8	262.2
LIABILITIES
Non-current liabilities
Pensions and similar obligations to employees	26	1.3	1.4
Other provisions	27	0.4	0.9
Deferred tax liability	11	58.3	26.8
Non-current bond loan	25	246.9	246.1
Other non-current interest-bearing liabilities	25	238.2	75.9
Other financial non-current liabilities	17	0.7	4.3
Total non-current liabilities	17	545.7	355.4

million EUR	Note	31 Dec 2022	31 Dec 2021
Current liabilities
Other current interest-bearing liabilities	25	112.4	16.7
Other financial liabilities		0.4	0.2
Account payables		83.5	89.7
Current tax liabilities		16.4	8.0
Other current liabilities		15.1	13.2
Accrued expenses and deferred income	28	97.3	40.2
Total current liabilities	17	325.2	168.0
Total liabilities		870.9	523.4
TOTAL EQUITY AND LIABILITIES		1 300.7	785.7

Trondheim, Norway, 24 April 2023

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the Board

Anne-Lise Aukner

Director

Rik Dobbelaere

Director

Andreas Akselsen

Director

Kristina Schauman

Director

Christian Bekken

CEO

9999

Consolidated statement of changes in equity

		Additional		Retained earnings		Non-controlling	Total
million EUR	Share capital	paid-in capital	Reserves	(incl profit for the year)	Total	interest	equity
Opening balance as of 1 January 2022	14.8	166.9	-9.6	80.3	252.4	9.8	262.2
Net profit for the year	-	-	-	34.4	34.4	0.9	35.4
Other comprehensive income	-	-	-5.7	-	-5.7	0.1	-5.6
Total comprehensive income	-	-	-5.7	34.4	28.7	1.0	29.7
Transactions with owners, recognised directly in equity
New share issue	3.4	155.5	-	-	158.8	-	158.8
Transaction cost	-	-0.1	-	-	-0.1	-	-0.1
Dividend	-	-	-	-20.8	-20.8	-	-20.8
Acquisition non-controlling interest	-	-	-	0.2	0.2	-0.8	-0.6
Share-based payments IFRS 2	-	-	-	0.6	0.6	-	0.6
Total transactions with shareholders, recognised directly in equity	3.4	155.4	-	-20.1	138.6	-0.8	137.9
Closing balance as of 31 December 2022	18.2	322.3	-15.3	94.7	419.8	10.0	429.8
Opening balance as of 1 January 2021	14.0	151.9	-16.8	45.6	194.7	0.4	195.1
Net profit for the year	-	-	-	35.7	35.7	-1.3	34.4
Other comprehensive income	-	-	7.2	-	7.2	0.1	7.3
Total comprehensive income	-	-	7.2	35.7	42.9	-1.2	41.7
Transactions with owners, recognised directly in equity
New share issue	0.8	21.8	-	-	22.7	-	22.7
Transaction cost	-	-0.7	-	-	-0.7	-	-0.7
Dividend	-	-6.1	-	-0.3	-6.4	-	-6.4
Acquisition of non-controlling interest	-	-	-	-1.4	-1.4	10.5	9.2
Share-based payments IFRS 2	-	-	-	0.7	0.7	-	0.7
Total transactions with shareholders, recognised directly in equity	0.8	15.0	-	-1.0	14.8	10.5	25.4
Closing balance as of 31 December 2021	14.8	166.9	-9.6	80.3	252.4	9.8	262.2

100100

Consolidated cash flow statement

million EUR	Note	2022	2021
Operating cash flow
Operating income (EBIT)		68.0	67.8
Adjustments for non-cash items, etc.	32	50.5	32.6
Interest paid and financing costs		-19.3	-17.8
Interest received		2.8	0.4
Income tax paid		-14.2	-8.7
Operating cash flow before changes to working capital		87.8	74.2
Cash flow from working capital changes
Increase/decrease in inventories		-20.4	-14.3
Increase/decrease in operating receivables		28.6	-28.2
Increase/decrease in inventories in operating debt		-55.2	35.8
Total change to working capital		-46.9	-6.8
Cash flow from operating activities		40.9	67.4
Cash flow from investment activities
Purchase of property, plant and equipment and intangible assets	12, 13	-43.7	-34.7
Acquisitions of business	14	-230.9	-54.0
Acquisitions of associated companies	16	0.0	-1.1
Other financial investments		2.2	-0.5
Disposals of property, plant and equipment	13	85.0	0.5
Divestment of business	15	7.8	4.3
Cash flow from investment activities		-179.7	-85.5

million EUR	Note	2022	2021
Cash flow from financing activities
Borrowings, net of transaction costs	25	85.0	248.2
New share issue, net of transaction costs	22	1.0	18.9
Repayment of borrowings	25	-18.3	-153.4
Dividend		-20.8	-6.4
Cash flow from financing activities		46.9	107.3
Cash flow for the period		-91.9	89.1
Opening cash and cash equivalents		142.3	51.4
Exchange difference in cash		-2.9	1.8
Closing cash and cash equivalents	21	47.5	142.3

101101

The group

Accounting principles and notes to the accounts

Note 01 General information

BEWI ASA (the parent company) and its subsidiaries

(together, the group) produce, market and sell packaging,

components and insulation solutions. The parent company

conducts its business through subsidiaries in Sweden,

Finland, Denmark, Norway, Iceland the Netherlands,

Belgium, Portugal Spain, Poland, Germany, UK and through

associated companies in Germany, France, Czech Republic,

Lithuania, Canada and the UK.

The parent company is a public limited company regis-

tered in Norway, with head office located in Trondheim,

Norway, and address Dyre Halses gate 1A, 7042 Trondheim.

BEWI ASA’s registration number is 925 437 948.

The board of directors approved these consolidated

accounts on 24 April for publishing on 25 April 2023.

Note 02 Summary of key accounting principles

The key accounting principles applied in these consol-

idated accounts are stated below. The principles have

consistently been applied for all reported financial years,

unless otherwise specified.

All amounts are reported in million Euro, (million EUR),

unless otherwise specified. The information in brackets

concerns previous years.

2.1 Reasons for the method of

preparation of the reports

The consolidated accounts for the BEWI ASA group

(“BEWI ASA”) have been prepared in accordance with the

Norwegian Annual Accounts Act (norsk regnskapslov), and

International Financial Reporting Standards (IFRS) as well

as interpretations from the IFRS Interpretations Committee

(IFRS IC), in the form they have been adopted by the EU.

The accounts have been prepared using the cost value

principle.

Preparing reports compliant to IFRS requires certain

estimates for accounting purposes to be made. It requires

the executive management to make certain assessments

when applying the group’s accounting principles. The

complex areas, areas in which a high degree of assess-

ments are required, or in which assumptions and estimates

are significant to the consolidated accounts, are stated in

note 4.

No new IFRS standards or amendments to standards have

been added in 2021 that have required changes in the

accounting or measurement principles.

CONSOLIDATED ACCOUNTS

Basic accounting principles

2.2 Segment reporting

Operating segments are reported in a manner consistent

with the internal reporting provided to the chief operating

decision-maker. The Executive Committee is the chief

operating decision-maker, responsible for assessing

the financial position of the group and strategic deci-

sion-making. The executive management has assessed the

operating segments based on the information considered

by the board of directors which is the basis of the alloca-

tion of resources and assessment of performances. The

group has identified four segments to be reported; RAW,

Insulation, Packaging & Components and Circular.

102102

Subsidiaries

The subsidiaries are all companies over which the group

exercises the controlling influence. The group controls a

company when exposed to or entitled to variable return

from its holdings in the company and carries the ability to

influence the return through its control of the company.

Subsidiaries are included in the consolidated accounts

from the date on which the controlling influence is trans-

ferred to the group. They are excluded from the date on

which the controlling influence ceases to be.

The acquisition method is applied for accounting for the

group’s business combinations. The purchase considera-

tion for the acquisition of a subsidiary is made up of the

fair value of assets transferred, the group’s liabilities to

prior equity holders of the acquired company, and the

new shares issued by the group. The consideration also

includes the fair value of all liabilities pertinent to a con-

tingent considera-tion agreement. Identifiable acquired

assets and assumed liabilities in a business combination

are initially valued at fair value on the acquisition date. For

each acquisition, i.e. on an acquisition-to-acquisition basis,

the Group determines whether non-controlling interests

in the acquired company is reported at fair value or at the

proportional share of the reported value of the acquired

company’s identifiable net assets.

Expenses pertinent to an acquisition are carried as an

expense as they arise.

Each contingent consideration to be transferred by the

group is reported at fair value on the acquisition date.

Subsequent variations of the fair value of a contingent

consideration are reported in accordance with IFRS 9 in the

income statement.

Goodwill is initially valued to the amount with which the

total consideration and any fair value for the non-con-

trolling interests on the acquisition date exceeds the fair

value of the identifiable acquired net assets. Should the

consideration be lower than the fair value of the acquired

company’s net assets, the difference is reported in the

income statement.

Intra-group transactions, balance sheet items, revenue and

expenses from intra-group transactions are eliminated.

The accounting principles for the subsidiaries have, when

applicable, been altered to guarantee a consistent applica-

tion of the group’s principles.

Associated companies

Associated companies are companies over which the

group has a significant but not controlling influence, which

generally is relevant for holdings ranging from 20 per cent

to 50 per cent of the votes. Holdings in associated compa-

nies are reported using the equity method.

The equity method entails initially reporting the holdings

in associated companies at the acquisition cost on the

consolidated balance sheet. The carrying amount is

increased or decreased thereafter, in order to take into

account the group’s share of the net profits and other

comprehensive income from its associated companies

after the acquisition date. The group’s share of the profit

forms part of the consolidated net income and the group’s

share of the comprehensive income forms part of the

group’s comprehensive income. Dividends from associated

companies are reported as a reduction to the investment’s

carrying amount.

Should the group’s share of the loss of an associated

company be equal to or exceed the holdings in that

associated company (including all long-term liabilities

who are de facto part of the group’s net investment in the

associated company), the group does not report any more

losses, provided that the group has not incurred obligations

or made payments on behalf of the associated company.

Unrealised gains on transaction between the group and

its associated companies are eliminated to the extent of

the group’s holdings in associated companies. Unrealised

losses are eliminated, provided that the transaction is not

an indication of impairment of the asset being transferred.

The accounting principles for associated companies

have been adjusted when required in order to guarantee

accordance with the group’s accounting principles.

2.3 Translation of currencies

Functional currency and presentation currency

The units of the group use their local currencies as

functional currency as they have been defined as the

currencies used in the primary economic environment

in which the respective units mainly are active. In the

consolidated accounts, Euro (EUR) is utilised, as the group’s

presentation currency.

Transactions and balance sheet items

Transactions in foreign currency are translated to the

functional currency using the exchange rates on the date

of the transaction. Exchange rate gains and losses arising

from payments of such transactions and from translations

of monetary assets and liabilities in foreign currency at the

rate on the balance sheet day, are reported in the operat-

ing income section of the income statement. Exchange

rate gains and losses arising from borrowings and cash and

cash equivalents are reported in the income statement as

financial incomes and expenses.

Translation of foreign group companies

Profits and financial positions for all group companies not

using the presentation currency as functional currency are

translated to the group’s presentation currency. Assets and

liabilities for each balance sheet are translated from the

foreign unit’s functional currency to the group’s presenta-

tion currency, Euro, at the exchange rate on the balance

sheet day. Revenue and expenses for each income state-

ment is translated to Euro at the average rate at the time

of each transaction. Translation differences arising from

currency translation of foreign operations are reported in

other comprehensive income.

2.4 Intangible assets

Goodwill

Goodwill arises when subsidiaries are acquired and repre-

sent the amount with which the purchase consideration

exceeds BEWiSynbra’s share of the fair value of identifiable

assets, liabilities and contingent liabilities of the acquired

company.

In order to recognise impairment need, goodwill acquired in

business combinations is allocated to cash generating units

who are expected to be favoured by the synergies from the

acquisition. Each unit or group of units to which goodwill

has been allocated represents the lowest level in which the

goodwill is monitored in the internal governance.

Goodwill is monitored per cash generating unit. Goodwill

is tested for impairment annually or more frequently

should certain events or changes to conditions indicate a

possible impairment need. The carrying value of goodwill

is compared to the recoverable amount, which is the

higher of fair value less costs of disposal and value in use.

Any impairment is immediately reported as an expense

and is not reversed.

103103

Patents/ Licences/ IT

Patents, licences & IT acquired separately are reported

at the acquisition cost. Patents, licences & IT acquired

through a business combination are reported at fair value

on the acquisition date. IT mainly includes costs for the

development of identifiable and unique software products

controlled by the company. Patents, licences & IT carry

a useful life and are reported at the acquisition cost less

accumulated amortisation and impairment.

Customer relations, trademark and technology

These intangible assets have all been acquired through

business combinations and are reported at fair value on

the acquisition date. Customer relations and technology

have a fixed useful life and are for subsequent periods

reported at the acquisition cost less accumulated amor-

tisation and impairment. The useful life of trademarks

acquired through business combinations is evaluated

and determined in each acquisition. Net cash flows

generated by trademarks are not expected to cease in the

foreseeable future. The trademarks in the groups balance

sheet is therefore deemed to carry an indefinite useful life.

Trademarks and goodwill are tested annually for impair-

ment as described above. Trademarks are for subsequent

periods reported at the acquisition cost less any write-

down from impairment.

Useful lives for the group’s intangible assets:

Patents/Licences 5 yr.

Customer relations 8–15 yr.

Technology 6.5–10 yr.

2.5 Tangible assets

Tangible assets are reported at the acquisition cost

less accumulated depreciation and write-down from

impairment. Expenses directly attributable to the acquisi-

tion may be included in the acquisition cost. Incremental

costs are either added to the asset’s carrying amount or

reported as a separate asset, as appropriate. Assets are only

added in the event that their future economic benefits will

be of use to the group and that the acquisition cost can be

reliably measured. The carrying amount of a replaced com-

ponent is taken off the balance sheet. Other maintenance

and reparations are reported as expenses in the income

statement during the period in which they arise. Land is

not depreciated. Depreciation of other assets is recognised

on a straight-line basis over the useful life to the calculated

residual value. Such depreciations are carried out accord-

ing to the following:

Buildings 10–65 yr.

Frameworks, foundations 64–84 yr.

Frame supplements, interior walls 50 yr.

Heating, sanitary, electricity, front, roof 40 yr.

Interior surface finish/rental preparation 10 yr.

Ventilation 20 yr.

Elevator/transportation 25 yr.

Control system and surveillance 15 yr.

Other property components 50 yr.

Ground installations (facilities) 20 yr.

Plant and machinery 5–18 yr.

Equipment, tools, fixtures and fittings 3–10 yr.

The assets’ residual value and useful life are assessed at

the end of each reporting period and are adjusted when

required. An asset’s carrying amount is immediately

impaired to the recoverable amount when the carrying

amount exceeds its recoverable amount.

Gains and losses arising from a disposal of a tangible asset

are determined through comparing the sale proceeds to

the carrying amount.

2.6 Impairment of non-financial assets

Intangible assets with an indefinite useful life are not

amortised but are assessed annually to determine the

impairment need. Depreciat-ed and amortised assets

are assessed with respect to the impairment if events or

changed conditions indicate that the carrying amount

is not recoverable. Impairments are undertaken for the

amount with which the asset’s carrying amount exceeds

its recoverable amount. The recoverable amount is equal

to the higher of the asset’s fair value less selling expenses

and its value in use. Assets are grouped at the lowest level

of separate identifiable cash flows (cash generating units),

when assessing the impairment need. Assets previously

impaired, other than goodwill, are assessed for reversal for

each balance sheet day.

2.7 Inventory

The inventory is reported at the lower of the acquisition

cost and the realisable value. The acquisition cost is

determined through the first-in-first-out method. The

acquisition cost also includes expenses relating to the

acquisition, as well as for bringing the goods to their

current location and condition. The acquisition cost for the

company’s semi-finished or finished products is the sum of

the direct production costs and the production overhead

(based on normal production capacity).

2.8 Financial instruments

Financial instruments recur in several different balance

sheet items and are described below.

2.8.1 Classification

The group classifies its financial assets and liabilities in the

following categories: Financial assets at fair value through

profit and loss, financial assets measured at amortised cost,

financial liabilities measured at fair value through profit and

loss and financial liabilities measured at amortised cost.

The classification is chosen in accordance with the purpose

of obtaining the financial asset or liability.

Financial assets at fair value through profit and loss

Financial assets at fair value through profit and loss are

shares and participations other than shares in subsidiaries,

associates and joint ventures. The shares in KMC Properties

ASA, listed on Oslo stock exchange are included in this

category. Derivatives are recognised at fair value through

profit and loss. Positive fair value changes in derivatives are

reported as financial assets.

Financial assets measured at amortised cost

Financial assets measured at amortised cost are financial

instruments where the business model is to collect cash

flows. The contractual cash flows are solely payments of

principal and interest and are valued at amortised cost in

accordance with the effective interest meth-od. Accounts

receivables are included in this category.

Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit and loss are

normally limited to derivatives and earnouts from business

acquisitions.

Financial liabilities measured at amortised cost

Financial liabilities measured at amortised cost are all other

financial instruments, such as the bond loans, liabilities to

credit institutions, liabilities regarding financial leasing and

account payables.

104104

2.8.2 Reporting and valuation

Financial assets are initially recognised at fair value plus

transaction costs for all financial assets not at fair value

through profit and loss. Financial assets at fair value

through profit and loss are initially recognised at fair

value and transaction costs are expensed in the income

statement. Financial assets are recognised when the group

becomes a party to the contractual provisions of the

instrument. Regular purchases and sales of financial assets

are recognised on the settlement date. Financial assets are

removed from the balance sheet when the right to obtain

cash flows from the instrument has expired and the group

has transferred all essential risk and benefits in conjunction

with the ownership. Financial liabilities are recognised

when the group becomes bound to the contractual obli-

gations of the instrument. Financial liabilities are removed

from the balance sheet when the obligation under the

agreement is completed or otherwise extin-guished. Loans

and receivables and other financial liabilities are, after the

acquisition date, reported at the amortised cost calculated

using the effective interest method.

2.8.3 Offsetting financial instruments

Financial assets and liabilities are offset and reported with

a net amount on the balance sheet, only when there is a

legal right to offset the carrying amounts and an intention

to settle them with a net amount or to simultaneously

realise the asset and settle the debt.

2.8.4 Impairments of financial instrument

At each balance sheet date, financial assets measured

at amortised cost are assessed for impairment based on

Expected Credit Losses (ECL). ECLs are the difference

between all contractual cash flows that are due in

accordance with the contract and all the cash flows that

the group expects to receive, discounted at the original

effective interest rate. Allowances for trade receivables are

always equal to lifetime ECL.

2.9 Account receivables

Account receivables are financial instruments that include

amounts payable by customers for operationally sold

goods and services. They are classified as current assets

when payment is expected within a year. Should payment

be expected beyond that period, they are reported

as non-current assets. Account receivables are initially

reported at fair value, subsequently at amortised cost

calculated using the effective interest method less any

provisions for impairment.

2.10 Cash and cash equivalents

Cash and cash equivalents include, on the balance sheet as

well as in the cash flow statement, cash and bank balances.

2.11 Share capital

Ordinary shares are classified as equity. Transaction costs

directly attributable to the new issue of ordinary shares are

reported in equity net after tax as a deduction from the

proceeds from the issue.

2.12 Account payables

Account payables are financial instruments in conjunction

with obligations to pay for goods and services for opera-

tions acquired from the suppliers. Account payables are

reported as current liabilities when they mature within

a year. Should they mature beyond that period, they are

reported as long-term liabilities. Account payables are

initially reported at fair value and subsequently at amor-

tised cost using the effective interest method.

2.12 Borrowings

Liabilities to credit institutions and liabilities to associated

companies are initially reported at fair value, net after

transaction costs. Borrowings are subsequently reported

at amortised cost. Any difference between the obtained

amount (net after transaction cost) and the repayment

amount is reported in the income statement distributed

over the loan period, using the effective interest method.

Bank overdraft facilities are reported as liabilities to credit

institutions in the current liabilities section of the balance

sheet.

2.13 Provisions

Provisions are reported when the group is legally or

constructively obligated following prior events, wherever

probable that an outflow of resources is required to clear

the commitment and the amount is reliably calculated.

Provided that similar commitments exist, the probability

of an outflow of resources at the clearing to be required

is assessed for the entire group of similar commitments. A

provision is reported even in the event of low probability

of an outflow regarding a particular item in the group of

commitments. The provisions are reported at the present

value of the amount expected to be required for fulfilling

the obligation. A discount rate before tax is utilised

hereby, reflecting the current market assessment of the

time-dependent value of money and risks connected to

the provision. The increase of provision pertinent to the

passing of time is reported as an interest expense.

2.14 Current and deferred tax

The period’s tax expenses include current and deferred

tax. The current tax expense is calculated on the basis of

the tax regulations in force on the balance sheet day in the

countries in which the parent company and its subsidiaries

are active and generate taxable revenue. Deferred tax is

reported, in accordance with the balance sheet method,

for all temporary differences between the written-down

value of assets and liabilities and the carrying amount of

the consolidated accounts. Deferred tax is calculated with

the application of the tax rates in force on the balance

sheet day and the rates expected to be in force when the

tax asset is realised or the tax liability is cleared. De-ferred

tax assets on carry forwards are reported to the extent

likely that future fiscal surplus will be available, against

which the deficits may be exploited.

Deferred tax assets and liabilities are offset in the event of

a legal right to offset for the tax referrals in question, the

tax deferrals are attributable to taxes debited by one tax

authority, apply to one or several tax subjects and there is

an intention to clear the balances through net payments.

2.15 Employee remuneration

Pension commitments

The group has several post-employment benefit plans,

including defined benefit plans, of which the majority of

the pension schemes are defined contribution plans. A

defined contribution plan is a pension plan according to

which the group pays a fixed fee to a separate legal entity.

The group carries no legal or constructive obligations

to pay additional fees should the entity lack sufficient

resources to remunerate all employees what they are due

as a result of their service, in the current or prior periods.

The fee is reported as a personnel cost when matured. A

defined benefit plan is a pension plan without defined

contribution. Defined benefit plans normally set out an

amount for the employee to receive upon retirement,

nor-mally based on one or several factors such as age,

period of service and salary. The group provides defined

benefit plans for a limited number of people, in Finland, in

the UK, and in Norway. These plans are further described in

note 26. In addition, the group provides other long-term

105105

benefits in the Netherlands for long-term service (Jubilee

fund), calculated in the same manner as a defined

benefit plan. The liability reported on the balance sheet

in conjunction with the defined benefit pension plan is

the present value of the defined benefit commitment

at the end of the reporting period less the plan assets’

fair value. The defined benefit pension commitment is

calculated annually by independent actuaries using the

projected unit credit method. The present value of the

defined benefit liability is determined through discounting

future estimated cash flows using the interest rate for

investment grade corpo-rate bonds or housing bonds

issued in the same currency as the benefits, with terms

comparable to the pension commitment in question. The

net interest is calculated by applying discounted interest

charges to defined benefit plans and for the fair value of

the plan assets. The current service cost is included in the

personnel costs and the net interest among financial items.

Revaluation gains and losses as a result of adjustments

in accordance with experience and changes to actuarial

estimates are reported in other comprehensive income

for the period during which they arise. They are part of

the profit carried forward in the changes to consolidated

equity and the balance sheet. Costs for service in prior

periods are reported in the income statement.

Compensation at termination of employment

Compensation at termination of employment is due

when an employee’s employment is terminated by the

group before the normal time of retirement or when an

employee accepts voluntary withdrawal in exchange for

such compensation. The group reports compensations at

termination at the first of these points of time: a) when the

group no longer has the option to withdraw the com-

pensation offer and; and b) when the company reports

expenses for a restructuring within the scope of IAS 37 and

implies payments of severance. Compensa-tions at termi-

nation are calculated based on the number of employees

expected to accept the offer encouraging voluntary

withdrawal, in the event that such an offer has been made.

Benefits maturing more than 12 months after the end of

the reporting period are discounted at present value.

Share based payments

In 2020, the parent company BEWI ASA implemented

a share-based incentive programme, entitling the par-

ticipants to subscribe for shares in BEWI ASA during a

three-year period.

The fair value of the share options issued is determined

at the grant date in accordance with the Black & Scholes

valuation model, tak-ing into consideration the terms and

conditions that are related to the share price.

The value is recognised in the income statement as a

personnel cost allocated over the vesting period with a

corresponding increase in equity.

The recognised cost corresponds to the fair value of the

estimated number of share options that are expected to

vest. This cost is ad-justed in subsequent periods to reflect

the actual number of vested options and shares.

2.16 Revenue recognition

The group follows a five-step model for recognising

income that is based on when control of a good or service

is passed to the customer. The core principle is that an

entity is to recognise revenue to depict the transfer of

promised goods or services in an amount that reflects the

consideration to which the entity expects to be entitled in

exchange for those goods or services.

The five-step model comprises the following steps: Step 1:

Identify the contract with the customer, Step 2: Identify the

performance obligations in the contract, Step 3: Determine

the transaction price, Step 4: Allocate the transaction price

and Step 5: Recognise revenue – over time or point in time.

As to Step 5, revenue is recognised when a company has

satisfied a performance obligation, which is when control

of the underlying goods or services has been passed to the

customer. The amount recognised as revenue corresponds

to the amount allocated to the satis-fied performance

obligations. A performance obligation can be satisfied over

time or at a point in time. Revenue is recognised over time

if the customer simultaneously receives and consumes all

of the benefits provided by the company as the company

performs; the company’s performance creates or enhances

an asset that the customer controls; or the company’s

performance does not create an asset with an alternative

use to the company and the company has an enforceable

right to payment for performance completed to date. If

a perfor-mance obligation does not meet one of these

criteria to be recognised over time, revenue is recognised

at one specific point in time. This takes place when control

of a good or service is passed to the customer. Factors

that may indicate the point in time at which control passes

include: the company has transferred physical possession

of the asset; the company has a present right to payment

for the asset; the customer has accepted the good or

service; the customer has the significant risks and rewards

related to the ownership of the asset; and the customer

has legal title to the asset.

BEWI sells products for insulation for the construction

industry as well as packaging solutions for the manufactur-

ing industry and food producers. Virtually all of these sales

transactions meet the definition of a point in time revenue

recognition. The sales are reported as revenue when a

group company has delivered the product to a customer.

Delivery is deemed to have taken place when the products

have arrived at the indicated location, as defined by the

shipment terms.

2.17 Interest revenue

Interest revenue is reported using the effective interest

method.

2.18 Leases

According to IFRS 16 a lessee recognises a right-of-use

asset representing its right to use the underlying asset and

a lease liability rep-resenting its obligation to make lease

payments.

Each lease payment is apportioned to interest and amor-

tisation of the lease liability. The interest is recognised as

a financial expense in income statement, apportioned

over the lease term so that each period is charged with an

amount reflecting a fixed interest rate on the underlying

lease liability. The right-of-use asset is measured at cost,

which reflects the value of the lease liability, plus any

initial direct expenditure, plus obligations for disassembly,

removal or recovery at the end of the lease. In general, the

right-of-use asset is depreciated on a straight-line basis

over the term of the lease or, given an option to extend,

the period during the lessee expects to use the asset.

The group has decided to apply the practical expedients

for short-term leases and low-value assets. This means

that contracts with shorter maturities than 12 months

and leases of low value (value of assets when it is new of

less than EUR 5000) are not included in the calculation of less than EUR 5 000) are not included in the calculation of

right-of-use assets or leasing liabilities but continue to be

reported with straight-line expense over the lease term.

106106

Examples of low value assets are computers, printers and

copiers.

Lease liabilities are initially measured at the present value

of future lease payments. Lease payments are discounted

by the lease’s implicit interest rate, if the implicit interest

rate can be easily determined, but the typical method is for

the group to use the incremental borrowing rate. Future

lease payments calculated at present value consist of fixed

payments. Lease liabilities that fall due within 12 months

are classified as current liabilities and liabilities that fall due

after 12 months as non-current liabilities. Upon determin-

ing the term for a lease, extension options are taken into

account if it is likely that they will be exercised.

2.19 Government grants

Government grants are recognised when there is a reason-

able assurance that the grants will be received and that

the Company will comply with the conditions attached to

them. Government grants are recognised in profit or loss

on a systematic basis over the periods in which the related

expenses, which the grants are intended to compensate

for, are recognised. Government grants are recognised as

a reduction of such related expenses. Government grants

received for investments are recognised in the balance

sheet as a reduction of the booked value of the asset.

2.20 Dividends

Dividends to the parent company’s shareholders are

reported as liabilities in the consolidated financial reports

for the period in which the dividends have been approved

by the parent company’s shareholders.

2.21 Cash flow statement

Cash flow statement is prepared using the indirect

method. The reported cash flow solely contains transac-

tions giving rise to payments.

Note 03 Financial risk management

3.1 Financial risk factors

The group is through its activities exposed to several

different risks: market risks (currency risk, interest rate risk

and price risk), credit risk and liquidity risk. The group’s

comprehensive financial risk management is focused on

the unpredictability of the financial markets and strives to

minimise any adverse effect on the consolidated profits.

The use of derivative financial instruments has so far been

limited to mitigation of currency exposure on intra-group

borrowing and lending. The risk management is controlled

by the central finance department and the treasury

function within that department. The finance department

identifies, evaluates and hedges financial risks in close

cooperation with the group’s operative units.

Currency risk

The group operates in the Nordic countries, in continental

Europe, in the UK and in North America and is mainly

exposed to currency risk arising from currency exposure to

the Swedish Krona (SEK), the Danish Krona (DKK) and the

Norwegian Krona (NOK). Currency risks arise from both

transaction exposure and translation exposure. Transaction

exposure should, when possible, be centralised and

managed by the group’s central treasury function.

Transaction exposure

Transaction exposure arises when revenues and costs are

incurred in different currencies and exposes the group to

changes in net cash flow due to fluctuations in exchange rates.

This is applicable to both operational cash flows and to finan-

cial commitments that will end in a cash outflow. Transaction

exposure also arises on fair value changes on existing balance

sheet items in foreign currency, such as trade receivables

and liabilities and borrowing and lending, when these items

are revalued on the balance sheet date or when settled. The

largest transaction exposure to operational cash flows is

attributable to raw material purchases in Sweden and Norway,

which are done in EUR. As DKK is pegged to the EUR, Denmark

is not subject to that same exposure. In addition, there is also a

minor exposure between other currency pairs where sales or

purchases are concluded in foreign currencies. The largest fair

value exposure on the balance sheet is related to intra-group

loans, mainly EUR denominated, from Sweden to its subsidi-

aries. However, the main sources of funding for the group, the

bond loan and the overdraft facility, are denominated in EUR

to match the intragroup loans to subsidiaries predominately

located in the Euro area.

The following measures are taken by BEWI to reduce the

transaction exposure:

• For raw material purchases from the Euro area into

the Nordics, price and currency clauses are in general

incorporated into customer agreements.

• Intra-group trade receivables and liabilities should be

settled within a limited time-frame.

• The group’s external borrowing should be matched to

the currency of intra-group lending to subsidiaries.

• Bank balances in foreign currency should be

exchanged to local currency as soon as possible .

Transaction exposure to operational cash flows are only

to a limited extent hedged by using derivatives. However,

to the extent that there is a major net exposure in any

currency from borrowing and lending, that balance sheet

107107

exposure should be hedged by using forward contracts

or swaps. Net balance sheet exposure has been managed

by a combination short-term derivatives and long-term

derivatives, depending on the nature of the exposure.

The net fair value of derivate contracts used for hedging

transaction exposure, as of 31 December, is presented in

the table below. All short-term derivatives in the table

below mature within 6 months.

million EUR

0-6

months

7-12

months 3-4 yr. 4-5 yr.

As of 31 Dec 2022

Derivative asset 0.6 0.0 7.7 -

Derivative liability -0.4 - - -

Total 0.2 0.0 7.7 -

As of 31 Dec 2021

Derivative asset 0.2 - - -

Derivative liability -0.2 - -0.2 -0.3

Total -0.0 - -0.2 -0.3

Translation exposure

Translation exposure arises when the income statements

and balance sheets of foreign operations are translated

to EUR, the presentation currency of the group’s financial

statements. The reported net sales and profit of the group,

as well as the net assets of the group, are consequently

exposed to changes in exchange rates between EUR

and the currencies of the group’s foreign operations. The

translation exposure is not hedged, but the group strives

to have a balance in major currencies between net debt,

equity and EBITDA to reduce volatility in the balance sheet

and key financial ratios.

A sensitivity analysis shows that if EUR would have fluctu-

ated by 5 per cent against all other currencies in the group,

the impact on adjusted EBITDA would have been +/- EUR

1.3 million in 2022 (EUR 1.1 million). This assumes that all

other variables are held constant and ignores any compen-

sating effects from transaction exposure, for example the

impact from raw material purchases.

Interest rate risk

Interest rate risk is the risk that changes in market interest

rates will have a negative impact on cash flow or fair value

of financial assets and liabilities. Cash flow risk arises from

changes in variable interest rates, whereas fair value risk

arises from changes in fixed interest rates. It is the policy

of the group to limit the interest rate risk to cash flow risk

by restricting the allowed average interest duration for

both borrowing and financial investments. The group’s

borrowing is primarily exposed to changes in Euribor

through the bond loan, and short term interest rates in SEk

and NOK, as further outlined in Note 25 Borrowings. The

group’s lending, limited to loans to associated companies,

is exposed to changes in Euribor, as described in Note 16

Investments in associated companies.

In the event that the interest rate would fluctuate up or

down by 50 basis points, all other variables held constant,

the impact on net profit would have been +/- EUR 1.2

million in 2022 (EUR 0.8 million).

Price risk

The group is exposed to price risks in relation to share-

holdings other than shares held in group companies

or associated companies. Such other shareholdings are

valued at fair value. The exposure is mainly related to

shares in KMC Properties ASA, a company listed on Oslo

Børs. These shares were part of the consideration received

in the sale and leaseback transaction in the Netherlands

in 2020. The corporate bonds are listed on Nasdaq

Stockholm, and the group is therefore exposed to fluctu-

ations of the market value if the repurchase clause in the

bond agreement would be utilised.

Credit risk

Credit risk refers to the risk that a counterparty in a finan-

cial transaction may not fulfil its obligations. It is a risk

applicable to trade receivables, lending and to cash and

cash equivalents. Credit risks are managed by the central

treasury function, except for credit risks related to accounts

receivables, which are managed locally by the subsidiaries

or business units.

Each subsidiary or business unit shall monitor and analyse

the credit risks for each new customer before standard

terms for payment and delivery are offered. If customers

are credit rated by independent credit rating agencies,

these credit ratings are utilised. In the event that no

independent credit rating exists, the group company

undertakes a risk assessment of the customer’s credit-

worthiness, in which the customer’s financial position

is considered, as well as previous experience and other

factors. Individual risk limits are determined on the basis

of internal or external credit ratings. The application of

credit limits is monitored regularly. The credit-term is

normally 30 days, but both shorter and longer terms are

applied, depending on the customer and local practices.

A breakdown of maturity for accounts receivables, as well

as description of the principles for estimating credit losses,

are presented in note 18 Accounts receivables.

To minimise the credit risk for cash and cash equivalents,

only banks and financial institutions with strong credit

rating from independent credit rating agencies are

accepted. The maximum credit risk exposure corresponds

to the financial assets presented in note 17 Financial

instruments per category.

Liquidity risk

Liquidity risk is the risk that the group does not have access

to adequate financing on acceptable terms at any given

point in time. This requires a combination of short-term

monitoring of cash flow and securing short and long-term

financing of the group.

Cash flow forecasts are prepared by the group’s operating

companies and are closely monitored by the treasury

department. The group should always have a sufficient

liquidity reserve to meet the short-term operating needs.

In order to balance seasonal effects in operating cash

flow, and managing other short term funding needs

mainly related to change in working capital, the group

has secured an revolving credit facility (RCF). The facility

was originally EUR 80 million and in 2022 an accordion

option for an increase of 20 million was exercised and the

RCF was increased with additional 50 million to a total of

EUR 150 million. The facility is now provided by two banks

and runs until 2024 and includes the option to extend the

facility further in time. Part of the total RCF frame has been

utilized for an overdraft facility provided by one of the

banks

For the long-term financing of the group, BEWI has out-

standing issued a EUR 250 million five year sustainability

linked bond that matures on 3 September 2026, with

a possibility for BEWI to unilaterally decide on an early

redemption after 3 March 2025 of 50 per cent of the bonds

108108

outstanding at that date. A detailed description of the

terms for the bond loans is given in note 24 Borrowings.

In addition to the centrally negotiated borrowings, there

are also a few liabilities to credit institutions and overdraft

facilities in companies acquired, that have not been

subject refinancing post acquisition. The major part is

derived from the acquisition of Jackon Holding AS which

has utilized facilities in the amount of EUR 90.8 million as

per 31 December 2022.

The amounts in the table below are the agreed, undis-

counted cash flows.

As of 31 Dec 2022

million EUR <1 yr. 1–2 yr. 2–5 yr. >5 yr.

Bond loans - - 250.0 -

Liabilities to credit institutions 69.5 82.3 4.9 0.6

Overdraft 22.7 - - -

Accounts payables 83.5 - - -

Liabilities leases 25.0 24.0 62.2 124.4

Total 200.8 106.2 317.1 125.0

As of 31 Dec 2021

million EUR <1 yr. 1–2 yr. 2–5 yr. >5 yr.

Bond loans - - 250.0 -

Liabilities to credit institutions 3.0 2.7 7.1 -

Overdraft 0.8 - - -

Accounts payables 89.7 - - -

Liabilities leases 14.8 13.3 33.5 40.9

Total 108.3 16.0 290.6 40.9

The undiscounted cash flow for liabilities leases correspond to the future lease payments reflected in the calculation of the

discounted lease liability in accordance with IFRS 16.

3.2 Fair value

The table below presents the fair value of financial instruments measured at fair value though profit and loss, or, which is the

case with the bond loans, fair value of financial instruments measured at amortised cost. The carrying amount of the group’s

other financial assets and liabilities is considered to constitute a good approximation of fair value, since they carry floating

interest rates or are of a current nature.

As of 31 Dec 2022

Carrying

amountmillion EUR Level 1 Level 2 Level 3 Total

Financial assets measured at fair value through profit and loss

Participation in other companies 5.5 - 0.5 6.0 6.0

Derivative asset - 8.3 - 8.3 8.3

Total 5.5 8.3 0.5 14.3 14.3

Financial liabilities measured at amortised cost

Bond loan 240.6 - - 240.6 246.9

Total 240.6 - - 240.6 246.9

Financial liabilities measured at fair value through profit and loss

Derivative liability 0.4 - - 0.4 0.4

Other financial non-current liabilities - - 0.7 0.7 0.7

Total 0.4 - 0.7 1.1 1.1

109109

As of 31 Dec 2021

Carrying

amountmillion EUR Level 1 Level 2 Level 3 Total

Financial assets measured at fair value through profit and loss

Participation in other companies 9.2 - 0.6 9.8 9.8

Derivative asset - 0.2 - 0.2 0.2

Total 9.2 0.2 0.6 10.0 10.0

Financial liabilities measured at amortised cost

Bond loan 252.5 - - 252.5 246.1

Total 252.5 - - 252.5 246.1

Financial liabilities measured at fair value through profit and loss

Derivative liability - 0.7 - 0.7 0.7

Other financial non-current liabilities - 3.8 3.8 3.8

Total - 0.7 3.8 4.5 4.5

Level 1 – Listed prices (unadjusted) on an active market for identical assets and liabilities.

Level 2 – Other observable data for the asset or liability that is listed prices included at level 1, either directly (as price) or

indirectly (derived from price).

Level 3 – Data for the asset or liability that is not based observable market data.

Level 3 – Changes during the period, million EUR

Participation in other

companies

Other financial

non-current liabilities

As of 31 Dec 2021 0.6 3.8

Acquisitions - 0.7

Use of option to acquire BEWI Cellpack A/S - -6.7

Fair value adjustment through profit and loss -0.1 2.9

As of 31 Dec 2022 0.5 0.7

Level 3 – Changes during the period, million EUR

Participation in other

companies

Other financial

non-current liabilities

As of 31 Dec 2020 0.3 -

Acquisitions 0.5 3.8

Fair value adjustment through profit and loss -0.2 -

As of 31 Dec 2021 0.6 3.8

Other financial non-current liabilities of EUR 3.8 million corresponds to the estimated value of the option to acquire non-

controlling interest in BEWI Cellpack A/S (former Honeycomb Cellpack A/S), as further outlined in note 14.

110110

3.3 Capital management

The group’s capital is defined as capital employed, which comprises total equity and net debt. The objective for the capital

structure is to guarantee the group’s capacity to continue its operations and to support a profitable growth through a combi-

nation of M&A activities and organic growth, with the aim to continue generating return to shareholders and benefits to other

stakeholders. This should be achieved through an optimal capital structure that reduces the cost of capital. In order to maintain

or adjust the capital structure, the group may: alter the dividend to shareholders, reimburse capital to shareholders, issue new

shares, raise new loans or dispose of assets. The capital is assessed on the basis of the return on capital employed. Net debt is

defined as interest-bearing liabilities less cash and cash equivalents. Net debt is calculated both with and without the effect

from IFRS 16 Leases, as the covenants stated in the revolving credit facility agreement and the bond loan agreement are based

on a net debt calculation excluding the effect of IFRS 16. For the sake of calculating capital employed, net debt includes the

effect of IFRS 16. For more information on the components of interest-bearing liabilities, please refer to note 25. Return on

capital employed is calculated as rolling 12 months adjusted EBITA (earnings before interest, tax and amortisations after adding

back items affecting comparability) as a percentage of average capital employed during the same period, where the average is

calculated with each quarter during the measurement period as a measuring point.

million EUR 31 Dec 2022 31 Dec 2021

Total interest-bearing liabilities (A) 598.2 338.7

Cash and cash equivalents (B) 47.5 142.3

Net debt including IFRS 16 (A-B) 550.7 196.4

Effect of IFRS 16 leasing liabilities (C) 168.4 76.1

Net debt excluding IFRS 16 (A-B-C) 382.3 120.3

Total equity (D) 429.8 262.2

Capital employed (A-B+D) 980.5 382.5

Average capital employed (E) 629.1 409.6

Adjusted EBITA (F) 96.1 78.8

Return on capital employed (F/E) 15.3% 19.2%

The increase in net debt from 2021 to 2022 is mainly attributable to the business acquisitions during the year. The increase in

capital employed from 2021 to 2022 was further impacted by the increase in equity, to a large extent attributable to the profit

for the year and the new shares issues. Return on capital employed decreased from 2021 to 2022, mainly explained by the fact

that business acquisitions have only contributed to the consolidated EBITA after the acquisition date, whereas the full effect on

capital employed from the acquisitions is recognised immediately.

111111

Note 04 Critical accounting estimates and assessments

Estimates and assessments are continuously evaluated

and are prepared on the basis of historical experience and

other factors, including expectations regarding future

events deemed reasonable under existing condition.

4.1 Critical accounting estimates

and assessments

The group makes estimates and assumptions about the

future. Accounting estimates will, by definition, rarely be

equivalent to the actual result. The estimates and assump-

tions contain a significant risk for material adjustments

to carrying amounts of assets and liabilities during the

following financial years are outlined below.

(a) Inventory obsolescence

The inventory is valued at the acquisition cost, in accord-

ance with the first-in-first-out method. The acquisition

costs for the company’s semi-finished or finished products

are generally calculated as the sum of raw material carried

forward, other direct production costs and a reasonable

production overhead (based on normal production capac-

ity). When assessing whether obsolescence of the goods

should be calculated during the manufacturing process or

when the goods is finished, the executive management

has concluded that no obsolescence is in question for the

company’s products, seeing as they are standard products

with a high turnover rate, products only manufactured

following a customer order and that any defect goods may

be restored to raw material and thereby be reused. The

carrying amount for the inventory amounts to EUR 167.6

million as of 31 December 2022 (81.0).

(b) Consideration of impairment

need of goodwill and trademarks

The group examines annually whether any impairment

need for goodwill or trademarks is at hand, in accord-

ance with the accounting principle set out in note 2.

Recoverable amounts have been determined on the basis

of calculations of values in use. These calculations include

certain estimates to be carried out (see note 12 Intangible

assets).

The present value of the pension commitment is pertinent

to several factors determined on an actuarial basis using a

number of assumptions. The assumptions utilised to deter-

mine the net cost (revenue) for pension benefits include

the discount rate. Each change to these assumptions will

affect the pension commitments’ carrying amounts. The

group stipulates the appropriate discount rate at the end

of each year. This will be the rate utilised for determining

the present value of assessed future payments expected

to be required in order to clear the pension commitment.

When determining the appropriate discount rate, the

group considers the rates of the investment grade corpo-

rate bonds issued in the same currency as the benefits,

with terms comparable to the pension commitment in

question. Other critical assumptions with regard to the

pension commitment are in part based on existing market

conditions. Additional information is given in note 26.

Note 05 Net sales distribution and segment information

Operating segments are reported in a manner that

corresponds with the internal reporting submitted to the

chief operating decision maker. The Executive Committee

constitutes the chief operating decision maker for the BEWI

group and takes strategic decisions in addition to evaluat-

ing the group´s financial position and earnings.

Group management has determined the operating

segments based on the information that is reviewed by

the Executive Committee and used for the purposes of

allocating resources and assessing performance. The

Executive Committee assesses the operations based on

four operating segments: RAW, Insulation, Packaging &

Components and Circular. Sales between segments take

place on market terms.

million EUR 2022 2021

RAW

Segment revenue 418.0 347.9

Intra-group revenue -142.0 -104.6

Revenue from external customers 276.0 243.3

Insulation

Segment revenue 333.9 195.4

Intra-group revenue -4.0 -2.8

Revenue from external customers 329.9 192.7

Packaging & Components

Segment revenue 391.9 295.6

Intra-group revenue -10.0 -6.9

Revenue from external customers 381.9 288.7

Circular

Segment revenue 63.1 24.0

Intra-group revenue -0.7 -0.6

Revenue from external customers 62.4 23.4

112112

million EUR 2022 2021

Unallocated

Segment revenue 0.3 0.1

Intra-group revenue 0.0 0.0

Revenue from external customers 0.3 0.1

Total

Total segment revenue 1 207.3 863.1

Total intra-group revenue -156.8 -114.9

Total revenue from external customers 1 050.4 748.2

Adjusted EBITDA

RAW 57.0 54.1

Insulation 31.1 21.6

Packaging & Components 48.3 40.3

Circular 2.5 0.6

Unallocated -5.4 -7.6

Total adjusted EBITDA 133.6 109.0

EBITDA

RAW 40.0 54.2

Insulation 33.6 22.5

Packaging & Components 53.3 39.9

Circular 2.6 0.3

Unallocated -14.2 -11.4

Total EBITDA 115.2 105.5

million EUR 2022 2021

EBITA

RAW 35.7 50.0

Insulation 22.3 14.6

Packaging & Components 33.6 23.3

Circular 0.9 -0.7

Unallocated -14.8 -11.8

Total EBITA 77.7 75.4

EBIT

RAW 35.3 49.6

Insulation 19.4 12.6

Packaging & Components 28.8 18.8

Circular 0.3 -0.7

Unallocated -15.8 -12.6

Total EBIT 68.0 67.8

Net financial items -25.5 -18.8

Income before tax 42.5 49.0

Normalised earnings before interest, tax, depreciation and amortisations (i.e. items affecting comparability and deviations are added back). Adjusted EBITDA is a

key performance indicator that the group considers relevant for understanding earnings adjusted for items that affect comparability. For more information see

section “Alternative performance measures not defined by IFRS”.

113113

Specification of impact from specific amounts on the segmentation 2022 2021

Share of income from associated companies

Adjusted EBITDA, EBITDA, EBITA and EBIT for Insulation 2.6 4.7

Adjusted EBITDA, EBITDA, EBITA and EBIT for Packaging & Components 0.1 0.0

Adjusted EBITDA, EBITDA, EBITA and EBIT for Circular 0.1 0.0

Capital gain/loss from sale of assets

EBITDA, EBITA and EBIT for Insulation 3.1 0.9

EBITDA, EBITA and EBIT for Packaging & Components 5.2 0.0

EBITDA, EBITA and EBIT for RAW 0.1 0.1

EBITDA, EBITA and EBIT for Circular 1.2 -0.1

EBITDA, EBITA and EBIT for Unallocated - 0.0

Impairment tangible assets

EBITA and EBIT for Insulation -0.3 -

EBITA and EBIT for Packaging & Components - -0.8

EBITA and EBIT for RAW -0.6 -0.2

EBITA and EBIT for Circular 0.0 0.0

Impairment other intangible assets except goodwill

EBIT for Insulation 0.0 -

EBIT for Packaging & Components -0.1 -

Net sales per country

External segment revenue by country (selling company’s sales) 2022 2021

RAW

Total Finland 51.2 125.8

Total Netherlands 219.2 117.5

Total Germany 5.5 -

Total RAW 276.0 243.3

Packaging & Components and Insulation

Total Finland 30.0 21.3

Total Sweden 65.3 57.1

Total Denmark 83.5 70.3

Total Norway 213.3 164.9

Total Netherlands & Belgium 185.2 129.8

Total Germany, Switzerland & France 39.9 6.6

Total United Kingdom 37.0 -

Total Portugal & Spain 25.4 21.8

Total Polen 23.6 9.6

Total Lithuania 8.7 -

Total P&C and Insulation 711.8 481.4

Circular

Total Belgium 2.8 2.6

Total Sweden 8.1 6.3

Total Denmark 2.2 2.2

Total Norway 0.0 0.1

Total Netherlands 5.2 3.4

Total Portugal 10.0 6.6

Total United Kingdom 20.4 2.2

Total USA & Canada 13.6 -

Total Circular 62.4 23.4

Total Unallocated 0.3 0.1

Total Group 1 050.4 748.2

114114

Net sales per country (Customers’ geography) 2022 2021

Total Finland 54.2 34.0

Total Sweden 73.8 62.2

Total Denmark 73.2 61.9

Total Norway 193.0 154.1

Total Portugal & Spain 73.6 45.0

Total Iceland 25.2 22.0

Total Baltics 33.1 14.3

Total UK 57.6 20.2

Total Germany 101.0 58.0

Total Poland 44.8 39.0

Total Russia 14.0 29.2

Total Netherlands 154.3 117.3

Total Belgium 38.6 13.6

Total France 36.1 28.4

Total Other 77.9 49.2

Total Group 1 050.4 748.2

Note 06 Employee remuneration etc.

million EUR 2022 2021

Salary and other remuneration -108.4 -82.5

Social security expenses -14.9 -12.5

Pension costs – defined contribution plans -8.3 -8.0

Pension costs – defined benefit plans -0.1 -0.1

Total remunerations to employees -131.7 -103.1

The costs in the table above reflects costs for own employees.

Average number of employees with geographical breakdown by country

2022 2021

Average number

of employees Whereof men

Average number

of employees Whereof men

Sweden 232 163 199 137

Finland 166 135 154 126

Denmark 258 169 287 187

Norway 285 207 237 180

Island 14 11 14 11

Netherlands 486 425 329 297

Belgium 88 81 16 15

Portugal 203 119 208 124

Spain 5 4 5 4

Poland 264 172 136 87

Germany 227 165 73 49

UK 99 70 4 2

France 2 2 - -

Lithuania 37 30 - -

Canada 6 1 - -

The Group in total 2 372 1 754 1 662 1 219

115115

Remuneration to senior executives

The senior executives comprise of the board of directors, CEO of BEWI ASA and managers in the executive

management

directly reporting to the CEO and remunerations for those applies to:

BEWI ASA 1 Jan 2022–31 Dec 2022 1 Jan 2021–31 Dec 2021

million EUR

Basic salary

incl. benefits/

board fees

Variable

remuneration

Retirement

compensation

Basic salary

incl. benefits/

board fees

Variable

remuneration

Retirement

compensation

Board of Directors

5 members of the board, whereof 2 women

Gunnar Syvertsen (chairman) 0.06 - - 0.07 - -

Stig Waernes

0.03 - - 0.02 - -

Christina Schauman 0.04 - - 0.05 - -

Ann-Lise Aukner 0.03 - - 0.04 - -

Rik Dobbeleare 0.03 - - 0.02 - -

Andreas Mjølner Akselsen 0.00 - - - - -

Total 0.18 - - 0.19 - -

CEO

Christian Bekken 0.27 0.09 0.01 0.24 0.09 0.00

Other Senior Executives

0.74 0.26 0.19 0.55 0.24 0.16

Total 1.01 0.35 0.20 0.79 0.33 0.16

Consultancy services board members

Gunnar Syvertsen 0.10 - - 0.10 - -

Andreas Mjølner Akselsen 0.00 - - - - -

Rik Dobbeleare 0.06 - - - - -

The Executive management has been extended with three new employees as from 1 October 2022. They are included in the numbers above from this date.

Stig Wærnes left the board upon completion of the Jackon transaction 19 October 2022, and was replaced by Andreas M. Akselsen.

EUR 0.2 million of the remuneration to other executives in 2022 was recharged to KMC Properties ASA, a company related to the Bekken family, for services

rendered on behalf of that company.

Share-based incentive programme

In November 2020, the parent company BEWI ASA implemented a share-based incentive programme, entitling the participants

to subscribe for shares in BEWI ASA during a three-year period. The purpose of the programme is to further align the interests of

the company and its shareholders by providing incentives in the form of awards to employees to motivate them to contribute

materially to the success and profitability of the company. The features of the programme are further described in note 23.

The CEO of BEWi ASA and other senior executives, at the time of grant date, were granted 25000ed 250 000 share options each. The

three persons added to the excecutive management in 2022 were granted 125 000 share options each at grant date in 2020.

Severance pay

Subject to the CEO’s employment agreement, there is a notice period of 12 months if the agreement is terminated by the

company and a notice period of 6 months if the agreement is terminated by the employee. The employee is entitled to receive

unchanged salary and other fringe benefits during the period of notice, however the salary is deductible to other income.

116116

Note 07 Remunerations to auditors

million EUR 2022 2021

PwC

– The audit assignment -0.6 -0.7

– Audit activities other than the audit assignment 0.0 -0.1

– Tax advice - 0.0

– Other services -0.7 -0.1

Total -1.4 -0.9

Other accounting firms than PwC

– The audit assignment -0.2 -0.1

– Audit activities other than the audit assignment -0.2 -

– Tax advice 0.0 -

– Other services -0.2 -

Total -0.7 -0.1

For 2021 and 2022 audit activities other than the audit assignment from PwC and other services mainly includes costs related to

the Jackon transaction.

Note 08 Leasing

Lease-terms and purchase options

The group leases buildings (e.g. production facilities, warehouses, offices), machinery (e.g. gas facilities, compressors, moulding

machines) and equipment (e.g. cars, trucks, fork-lifts). Contracts for production facilities normally run for 10-12 years, but there

are exceptions with both shorter and longer lease terms. Separate warehouses are normally leased for 1–2 years, with a few

exceptions. In case a warehouse rent is paid based on usage, for example pallet space used, it is treated as variable and not

subject to capitalisation in accordance with IFRS 16. Office space is normally leased for three years. Based on the assumption

that a business cycle lasts for eight years and that predictions beyond that period are difficult, extension options for contracts

for production facilities expiring after that time-frame are not considered when assessing the lease-term, unless specific condi-

tions are present. Extension options for warehouses and offices are not reflected.

The lease term for other assets vary, but normally range between 3–5 years. Purchase options are considered in the capitalised

amount if deemed reasonably certain that such an option will be exercised, but this is not common. Extensions options are

reflected when it is deemed reasonable that they will be exercised.

Discount rate, liability and carrying amount

Discount rates applied and total leasing liability are described in note 25 Borrowings. Maturity dates for the undiscounted values

are presented in note 3 Financial risk management. Carrying amounts and depreciations of the assets capitalised are presented

in note 12 Intangible assets and note 13 Tangible assets.

Lease expenses for lease contracts capitalised in accordance with IFRS 16

million EUR 2022 2021

Depreciations and amortisations -13.1 -11.3

Interest expense -6.1 -4.9

Total -19.2 -16.2

117117

Lease expenses for lease contracts not capitalised in accordance with IFRS 16

million EUR 2022 2021

Lease expense short-term leases -0.3 -0.4

Lease expense low-value assets -0.4 -0.5

Lease expense variable leases -0.9 -0.3

Total -1.5 -1.2

Cash flow from leases

million EUR 2022 2021

Recognised in operating cash flow

Operating income -1.5 -1.2

Interest paid -6.1 -4.9

Cash flow from financing activities

Repayment of borrowings -11.7 -11.3

Total -19.3 -17.4

Note 09 Financial income and expense

million EUR 2022 2021

Interest revenue 1.8 0.3

Other financial income 0.2 0.1

Total financial income 2.0 0.4

Interest expenses -20.7 -12.7

Fair value adjustments shares and participations -6.7 -0.6

Other financing costs 0.2 -5.7

Fair value change derivatives 8.3 -0.2

Exchange rate losses -8.5 0.0

Total financial expense -27.4 -19.2

Total financial income and expense - net -25.5 -18.8

EUR -1.2 million (2021: EUR -1.0 million) of the interest expenses were attributable to amortisation of financing cost.

In 2021 -5.6 million of financing costs was attributable to bond repurchase premium, early consent fee and expensed financing

costs in connection with the refinancing in 2021.

Net financial income and expense per category of financial instrument

million EUR 2022 2021

Financial assets and liabilities measured at fair value through profit and loss 1.7 -0.8

Financial assets and liabilities measured at amortised cost -27.2 -18.0

-25.5 -18.8

118118

Note 10 Exchange differences – net

Exchange differences have been reported in the income statement as follows:

million EUR 2022 2021

Other operating expenses -0.8 -0.1

Fair value change derivatives 0.5 -

Total exchange difference in other operating expenses -0.3 -0.1

Exchange rate losses -8.5 0.0

Fair value change derivatives 8.3 -0.2

Total financial income and expense (note 9) -0.2 -0.2

Exchange differences - net -0.5 -0.3

Note 11 Income tax

Tax income and expense in income statement

million EUR 2022 2021

Tax income(+)/expense(-) comprises;

Current tax income(+)/expense(-) this year -25.4 -12.5

Adjustment recognised in current year in relation to current tax of prior years -1.0 -

Deferred tax income(+)/expense(-) 19.2 -2.1

Total tax income(+)/expense(-) -7.2 -14.6

The income tax attributable to the income before taxes differs from the theoretical amount that would have arisen from the

application of the local tax rates on income before tax in the group companies, as follows:

million EUR 2022 2021

Profit/loss before tax from continuing operations 42.5 49.0

Tax income(+)/expense(-) calculated at the local tax rate -10.0 -12.5

Effect of revenue that is exempt from taxation 12.8 2.4

Effect of non-deductible expenses -5.9 -1.0

Effect of tax losses and tax offsets not recognised as deferred tax assets -3.1 -3.6

Effect of previously unrecognised deferred tax attributable to tax losses carry forward, tax

credits and temporary differences 0.0 0.1

Effect of write-downs and reversals of deferred tax balances 0.0 -0.1

Effect on deferred tax balances due to change in tax rate 0.0 0.0

Adjustment recognised in current year in relation to current tax of prior years -1.0 -

Other 0.0 0.1

Total tax income(+)/expense(-) in profit or loss -7.2 -14.6

119119

Recognised in other comprehensive income

million EUR 2022 2021

Deferred tax

Tax on remeasurement of defined benefit obligation 0.8 -0.8

Total 0.8 -0.8

Deferred tax assets and liabilities 2022

million EUR

Opening

balance

Through

acquired

business

Through

divested

business

Reclassi-

ficaton

Reported in

profit/loss

Reported

in other

compre-

hensive

income

Exchange

differ-

ences

Closing

balance

Deferred tax in balance sheet is attributable to:

Tax losses carry forward 0.3 0.9 - - 0.2 - 0.0 1.4

Intangible assets -19.1 -11.5 - -2.5 1.1 - 0.9 -31.1

Tangible assets -2.4 -37.9 0.3 - 16.9 - 0.6 -22.5

Inventories -0.4 0.0 - - 0.3 - - -0.1

Untaxed reserves -0.1 -0.7 - - 0.1 - - -0.7

Pension assets and liabilities -1.3 - - - 0.0 0.8 0.0 -0.5

Provisions 0.0 - - - 0.0 - - 0.0

Other -0.8 - - - 0.5 - - -0.3

Total net deferred tax assets and liabilities -23.8 -49.2 0.3 -2.5 19.1 0.8 1.5 -53.8

The reclassification of EUR 2.5 million in the table above is attributable to a finalised acquisition analysis during the year, related to

an acquisition in 2021, in which a preliminary goodwill allocation was reduced and intangible assets increased, leading to higher

deferred tax liabilities.

Deferred tax assets and liabilities 2021

million EUR

Opening

balance

Through

acquired

business

Through

divested

business

Reclassi-

ficaton

Reported in

profit/loss

Reported

in other

compre-

hensive

income

Exchange

differ-

ences

Closin g

balanc e

Deferred tax in balance sheet is attributable to:

Tax losses carry forward 2.5 - - - -2.2 - 0.0 0. 3

Intangible assets -18.4 -0.9 0.2 -0.7 1.1 - -0.4 -19. 1

Tangible assets 0.9 -4.4 -0.2 0.9 -0.1 - 0.5 -2. 4

Inventories -0.2 - - - -0.2 - 0.0 -0. 4

Untaxed reserves -0.3 0.1 - - 0.2 - -0.1 -0. 1

Pension assets and liabilities -0.2 - - - -0.2 -0.8 -0.1 -1. 3

Provisions 0.1 - - - 0.0 - -0.1 0. 0

Other 0.0 -0.1 - -0.2 -0.7 - 0.1 -0. 8

Total net deferred tax assets and liabilities -15.6 -5.3 0.0 0.0 -2.1 -0.8 -0.1 -23. 8

Deferred tax assets are reported for tax losses carry forward or temporary differences to the extent that they are likely to be utlised

against future taxable profits. All of the EUR 1.4 million of deferred tax assets attributable to tax losses carry forward have no due

date. Tax losses carry forward corresponding to a tax value of EUR 14.6 million (EUR 12.0 million) were not recognised as deferred

tax assets. EUR 13.8 million of those losses have no due date and the remaining EUR 0.8 million fall due between 2024 and 2032.

The tax losses carry forward by the end of 2022 were attributable to Sweden, Finland, Germany, Norway and Poland. In addition,

tax credits attributable to deferred interest deductions corresponding to a tax value of EUR 2.5 million (EUR 2.2 million) falling due

between 2025 and 2027, were not recognised as deferred tax assets.

120120

Note 12 Intangible assets

million EUR Goodwill Trademark

Customer

relations Technology

Patents,

licences & IT Total

As of 1 January 2021

Acquisition costs 85.1 21.3 64.1 9.0 13.6 193.1

Accumulated amortisations/write-downs -1.2 0.0 -14.0 -3.2 -11.4 -29.8

Carrying amount 83.8 21.3 50.1 5.8 2.2 163.2

Financial year 2021

Carrying amount brought forward 83.8 21.3 50.1 5.8 2.2 163.2

Exchange differences 1.6 0.3 1.7 0.1 -0.1 3.6

Acquisitions 0.0 - - - 4.6 4.6

Through acquired business 28.7 2.6 - 0.8 1.1 33.1

Divestment of business -1.1 - -0.5 -0.7 -0.5 -2.9

Reclassifications 0.0 - - 0.0 - 0.0

Disposals 0.0 - - - -0.8 -0.8

Amortisations - - -5.7 -1.0 -0.9 -7.6

Carrying amount carried forward 113.0 24.3 45.5 4.8 5.7 193.3

As of 31 December 2021

Acquisition costs 114.1 24.4 65.3 9.5 13.5 226.7

Accumulated amortisations/write-downs -1.0 -0.1 -19.8 -4.7 -7.9 -33.5

Carrying amount 113.0 24.3 45.5 4.8 5.7 193.3

million EUR Goodwill Trademark

Customer

relations Technology

Patents,

licences & IT Total

Financial year 2022

Carrying amount brought forward 113.0 24.3 45.5 4.8 5.7 193.3

Exchange differences -3.0 -0.4 -1.8 0.0 0.0 -5.2

Acquisitions - - - - 4.6 4.6

Through acquired business 161.4 22.5 23.4 4.9 1.1 213.3

Divestment of business -1.0 - - - - -1.0

Reclassifications -7.6 1.7 8.3 0.4 - 2.8

Writedown - - - 0.0 -0.1 -0.1

Disposals - - - - - 0.0

Amortisations - 0.0 -7.0 -1.4 -1.2 -9.6

Carrying amount carried forward 262.8 48.1 68.4 8.7 10.0 398.0

As of 31 December 2022

Acquisition costs 263.8 48.2 95.2 14.9 19.2 441.2

Accumulated amortisations/write-downs -1.0 -0.1 -26.8 -6.1 -9.2 -43.2

Carrying amount 262.8 48.1 68.4 8.7 10.0 398.0

Of the amortisations above, EUR 0.1 million in 2022 (0.2) was attributable to leases. The carrying amount of capitalised leases as

of December 31, 2022 was EUR 0.0 million (0.2).

In March 2021 IFRS IC update included an agenda decision on configuration and customisation costs in a cloud computing

arrangement, impacting costs associated with a Software as a Service (SaaS) cloud arrangement. Key areas to consider are

whether these costs can be capitalised as an intangible asset or as a prepayment or whether they must be expensed when

incurred. BEWI has started the implementation of a cloud-based ERP system and is consequently impacted by this IFRS IC deci-

sion and BEWI has therefore undertaken an analysis of the contract with the software supplier and the nature of the different

components of the implementation costs, to fully understand the accounting treatment of these costs and whether something

should be expensed. Initially, all costs incurred had been capitalised and intangible assets. The analysis was completed in

2022, leading to EUR 2.0 million being expensed, EUR 1.6 million being reclassified from intangible assets to prepaid expense

121121

and EUR 2.7 million remaining as intangible assets. The amount recognised in intangible assets is mainly related to costs for

ancillary systems and support systems, such as manufacturing executing systems, which despite their integration with the new

cloud-based ERP system are separate from the SaaS arrangement and contract. The prepaid expenses are mainly attributable

to customisations of the ERP system to BEWI specific requirements. By the end of 2022, costs amounting to EUR 6.9 million

incurred in this ERP implementation have been capitalised as an intangible asset.

Considerations of impairment need for goodwill and trademark

Goodwill and trademarks have an indefinite useful life and are monitored each cash generating unit by the executive manage-

ment. Goodwill and trademarks divided by cash generative unit are summarised as follows:

Goodwill

million EUR 31 Dec 2022 31 Dec 2021

RAW 10.4 10.8

Insulation Nordics 4.6 6.5

Insulation Finland - 0.7

Insulation Netherlands 20.9 20.9

Insulation Belgium 4.4 -

Insualtion Lithuania 9.0 -

Insualtion UK 11.2 -

Packaging & Components Sweden 2.6 2.8

Packaging & Components Denmark 9.8 9.8

Packaging & Components Netherlands 1.7 1.7

Packaging & Components Norway 47.5 33.0

Packaging & Components Portugal & Spain 5.4 5.4

Packaging & Components Poland 4.1 4.2

Circular 24.4 5.0

Goodwill not divided on segment, pending PPA 106.8 12.0

Total 262.8 113.0

Trademarks

million EUR 31 Dec 2022 31 Dec 2021

RAW 0.6 0.6

Insulation Netherlands 5.9 5.9

Insulation Nordics 0.4 0.7

Insulation UK 2.4 -

Insualtion Lithuania 2.6 -

Insulation Belgium 1.7 -

Packaging & Components Denmark 5.1 5.1

Packaging & Components Netherlands 2.3 2.3

Packaging & Components Norway 6.0 6.0

Packaging & Components Portugal & Spain 1.1 1.1

Packaging & Components Poland 2.6 2.6

Circular 2.8 -

Trademark not divided on segment, pending PPA (attributable to Jackson acquisition) 14.7 -

Total 48.1 24.3

The assumptions used for calculating the value in use are the same for goodwill and trademarks. The executive management

has assessed that revenue growth, operating margin, discount rate and long-term growth are the most critical assumptions in

the impairment assessment. The recoverable amount has been assessed based on estimates of the value in use. The estimates

are based on future estimated cash flow before tax based on financial budgets and business plans for the next year, approved

by the senior executives, and extrapolated for an additional four-year period, assuming a prudent increase in both revenue and

costs of 2.0 per cent or more in case there are specific circumstances, such as a turnaround case or a recovery from a macro

economic slowdown. This has been the case for the automotive business and for Insulation in the Nordics. The estimates are

based on the executive management’s experience and historical data. The discount rate after tax amounts to 8.6 per cent (6.6

per cent). The long-term sustainable growth rate has been estimated at 2 per cent (2 per cent) for all cash generating units and

has been assessed in accordance with industry forecasts. No impairment of goodwill or intangible fixed assets was identified

in 2022. A change in the discount rate of 1 per cent or reduced cash flow of 10 per cent would not change the outcome of the

test. Tangible fixed assets of EUR 0.8 million were written down in 2022 (EUR 1.0 million), based on an individual assessment for

those assets.

122122

Note 13 Tangible assets

million EUR

Buildnings and

land

Plant and

other technical

machinery

Equipment,

tools, fixtures

and fittings

Construction

in progress

and advance

payments for

property, plant

and equipment Total

As of 1 January 2021

Acquisition costs 89.3 255.0 30.6 9.4 384.3

Accumulated depreciations/write-downs -19.3 -174.3 -20.4 -0.1 -214.0

Carrying amount 70.0 80.0 10.2 9.3 170.3

Financial year 2021

Carrying amount brought forward 70.0 80.8 10.2 9.3 170.3

Exchange differences 1.0 0.9 0.1 -0.1 1.9

Acquisitions 0.4 17.9 1.4 11.5 31.2

Capitalised leases 2.4 0.1 3.1 - 5.7

Through acquired business 26.9 7.8 1.5 1.7 37.8

Divestment of business -0.5 -0.3 - - -0.8

Writedown 0.0 -0.9 -0.0 - -1.0

Reclassifications 0.2 11.4 0.4 -12.0 0.0

Disposals 0.0 -0.3 -0.3 -0.2 -0.8

Depreciations -9.2 -16.1 -3.9 - -29.2

Carrying amount carried forward 91.3 101.3 12.4 10.1 215.1

As of 31 December 2021

Acquisition costs 123.5 300.8 40.3 10.1 474.8

Accumulated depreciations/write-downs -32.3 -199.5 -27.9 -0.0 -259.7

Carrying amount 91.3 101.3 12.4 10.1 215.1

million EUR

Buildnings and

land

Plant and

other technical

machinery

Equipment,

tools, fixtures

and fittings

Construction

in progress

and advance

payments for

property, plant

and equipment Total

Financial year 2022

Carrying amount brought forward 91.3 101.3 12.4 10.1 215.1

Exchange differences -5.4 -2.8 -0.2 -0.1 -8.5

Acquisitions 1.5 18.1 4.3 13.8 37.8

Capitalised leases 73.5 0.4 2.2 - 76.1

Through acquired business 175.1 76.9 20.0 14.4 286.4

Divestment of business -1.5 -0.5 -2.7 -3.6 -8.3

Writedown 0.0 -0.8 0.0 - -0.8

Reclassifications 1.4 6.3 -1.2 -7.0 -0.4

Disposals -85.3 -0.8 -2.0 -3.8 -91.9

Depreciations -12.1 -20.1 -4.4 - -36.7

Carrying amount carried forward 238.6 178.0 28.2 23.9 468.8

As of 31 December 2022

Acquisition costs 283.0 398.5 60.5 24.0 766.0

Accumulated depreciations/write-downs -44.4 -220.5 -32.3 -0.0 -297.3

Carrying amount 238.6 178.0 28.2 23.9 468.8

Amounts above attributable to leases:

Depreciations 2022 -9.6 -1.5 -2.0 -13.1

Of which is attributable to IFRS 16 -9.6 -0.3 -1.9 -11.8

Carrying amount 31 December 2022 140.1 5.6 7.0 152.7

Of which is attributable to IFRS 16 140.1 2.7 6.3 149.1

Depreciations 2021 -7.6 -1.9 -1.8 -11.3

Of which is attributable to IFRS 16 -7.6 -0.4 -1.8 -9.7

Carrying amount 31 December 2021 53.1 4.7 4.3 62.0

Of which is attributable to IFRS 16 52.7 0.3 4.3 57.4

123123

Note 14 Business acquisitions

Cash flow from acquisition of business

million EUR 2022 2021

Cash consideration -228.0 -73.3

Cash in acquired business -2.9 19.3

Total cash out/-inflow -230.9 -54.0

Business acquisitions during the year

Jablite Group Ltd

On 18 May 2022, BEWI announced the signing of an agreement to acquire an additional 51 per cent of the leading UK based

insulation and packaging company Jablite Group (“Jablite”), with an annual turnover of approximately GBP 40 million, thereby

becoming 100 per cent owner of the company. BEWI has held 49 per cent in Jablite since June 2020 and the company has until

the last acquisition been reported as an associated company in accordance with the equity method. The group is consolidated

as a subsidiary as from 1 June 2022. Jablite has approximately 50 years of experience from innovating and developing EPS

solutions for insulation and packaging. The group includes the manufacturer and supplier of solutions for insulation and civil

engineering named Jablite and the producer of packaging products named Styropack.

The adjusted acquisition analysis presented below gave rise to goodwill of EUR 11.7 million, which I related to synergies such

as future market growth opportunities and future cost savings. The main value adjustments were related to trademarks and

customer relations. Goodwill is not tax deductible. Until 31 December 2022, Jablite had contributed EUR 35.4 million to the

group’s net sales, EUR 1.3 million to adjusted EBITDA and EUR 0.3 million to EBIT, excluding transaction costs and capital gains

from revaluation of shares in associate. Of this, EUR 0.4 million in adjusted EBITDA and EUR 0.3 million in EBIT are attributable to

Jablite’s result when being an associated company. If the acquisition of the remaining 51 per cent of Jablite had taken place on

1 January, Jablite would have contributed EUR 58.6 million to the group’s net sales, EUR 3.2 million to adjusted EBITDA and EUR

1.1 million to EBIT. Transaction costs amounted to EUR 0.3 million.

Amounts in million EUR Total

Cash consideration during the period 11.7

Capital gain from revaluation of shares in associate

9.7

Book value of shares in associate 1.6

Total 23.0

Recognised amount of identifiable assets and acquired liabilities assumed

Trademark 2.5

Customer relations 8.0

Other intangible assets 0.0

Property, plant and equipment 17.4

Other fixed assets 0.1

Inventory 4.3

Current receivables 11.4

Cash and cash equivalents 0.3

Non-current liabilities -15.1

Deferred tax liability -3.0

Current liabilities -14.5

Total identifiable net assets 11.4

Goodwill 11.7

Cash and cash equivalents in acquired business 0.3

Total cash outflow from acquisition of business during the period -11.5

The acquisition analysis is preliminary

BEWI owned 49 per cent of Jablite Group Ltd before the acquisition of the additional 51 per cent of the group. This is consequently a transaction of a business

combination achieved in stages. In a business combination achieved in stages, IFRS 3 states that the acquirer shall remeasure its previously held equity interest

in the acquiree at its acquisition-date fair value and recognise the resulting gain in the statement of income

124124

Trondhjems Eskefabrikk AS, Berga Recycling Inc, Aislamientos y Envases, S.L. (“Aislenvas”)

and Inoplast s.r.o. (“Inoplast)

On 12 April 2022, BEWI announced the signing of an agreement to acquire the Norwegian paper packaging company

Trondhjems Eskefabrikk AS. The company is consolidated as from 1 May. Trondhjems Eskefabrikk is manufacturing fibre-based

packaging products, such as carton boxes to the food industry, which are 100 per cent recyclable, and a significant share of

the raw material used is recycled fibres. The acquisition provides BEWI with an extended offering of recyclable and recycled

products, in line with the company’s strategy to provide its customers with complementary solutions. Also, the acquisition

supports the company’s sustainability target to increase the use of non-fossil raw materials. For 2021, Trondhjems Eskefabrikk

had revenues of approximately EUR 13.5 million, up from EUR 11.7 million for 2020.

On 10 June 2022, BEWI announced the signing of Berga Recycling Inc., a world leader in the purchase and sale of materials for

recycling. Berga’s vision is to become the world’s largest agency for materials for recycling. In 2021, the company purchased and

sold an annual volume of approximately 82 000 tonnes of materials for recycling through a network of hundreds of customers

globally. The trading is completed through an online trading platform, which is linked to Berga’s comprehensive network of

logistic partners. Through the system, customers can track the delivery of the material, enabling improved planning throughout

the value chain and securing a seamless process from the completion of the transaction to the delivery of the material. For 2021,

Berga had sales revenues of approximately EUR 31 million, with an EBITDA margin of approximately 10 per cent. The company

has shown a sustained profitable growth of more than 20 per cent the last three years. The company is consolidated as from

1 June.

On 28 November 2022, BEWI announced that the company has entered an agreement to acquire 80 per cent of the leading

Spanish insulation company Aislenvas, on 7 December 2022 the transaction was finalised. Aislenvas operates three facilities, all

in the same industrial area, manufacturing a variety of EPS-based solutions. The company’s key products are insulation solutions,

including EPS boards for underfloor heating and EPS panels for External Thermal Insulation Composite Systems (ETICS) used

to improve the energy efficiency for building renovations. In addition, Aislenvas provides a range of other EPS-based products,

such as packaging and industrial applications.In 2021, Aislenvas had revenues of approximately EUR 16.0 million, with an EBITDA

of EUR 3.5 million. From 2018 to 2021, Aislenvas recorded significant and profitable growth, mainly driven by increased demand

for underfloor heating products, increased sales for key customers and high retention rate for other customer. The company is

consolidated as from 31 December.

On 6 December 2022, BEWI announced the acquisition of an additional 66 per cent of the Czech recycling company Inoplast,

becoming owner of 100 per cent of the company. BEWI first announced its acquisition of 34 per cent of Inoplast in March 2021.

Inoplast specialises in recycling of plastics, mainly expanded polystyrene (EPS), but also other types of plastics. The company

has a recycling facility located approximately 35 km from Prague in the city of Slaný, with modern and versatile machinery,

allowing for recycling of various plastic waste. In addition to recycling EPS, the company recycles polypropylene (PP), HDPE

(high density polyethylene) film, PET, and various other plastics from production waste. The company is consolidated as from

31 December.

The combined acquisition analyses for these acquisitions is presented below and gave rise to a goodwill of EUR 48.6 million,

which relates to synergies such as future market growth opportunities and future cost savings. The main fair value adjustments

were related to trademark, customer relations and technology. Goodwill is not tax deductible. Until 31 December 2022, the

companies had contributed EUR 22.8 million to the group’s net sales, EUR 3.5 million to adjusted EBITDA and EUR 2.1 million to

EBIT, excluding transaction costs. If the acquisition of the companies had taken place on 1 January, they would have contributed

EUR 42.2 million to the group’s net sales, EUR 5.6 million to adjusted EBITDA and EUR 4.5 million to EBIT. Transaction related costs

amounted to EUR 2.3 million.

125125

Amounts in million EUR Total

Cash consideration during the period 64.0

Promissory note 2.4

Capital gain from revaluation of shares in associate

1.1

Book value of shares in associate 0.4

Total 67.9

Recognised amount of identifiable assets and acquired liabilities assumed

Trademark 2.9

Customer relations 6.0

Technology 3.1

Other intangible assets 0.1

Property, plant and equipment 11.7

Other fixed assets 0.9

Inventory 3.8

Current receivables 12.2

Cash and cash equivalents 4.1

Non-current liabilities -9.1

Deferred tax liability -3.4

Current liabilities -12.1

Total identifiable net assets 20.2

Liabilities to non-controlling interests 0.9

Goodwill 48.6

Cash and cash equivalents in acquired business 4.1

Total cash outflow from acquisition of business during the period -59.9

The acquisition analyses are preliminary

BEWI owned 34 per cent of Inoplast before the acquisition of the additional 66 per cent of the group. This is consequently a transaction of a business combi-

nation achieved in stages. In a business combination achieved in stages, IFRS 3 states that the acquirer shall remeasure its previously held equity interest in the

acquiree at its acquisition-date fair value and recognise the resulting gain in the statement of income

126126

UAB Baltijos Polistirenas (“BalPol”)

On 18 February 2022 BEWI announced entering a letter of intent to acquire 100 per cent of a Baltic insulation company. On

1 July 2022 BEWI announced that an agreement to acquire the company was signed and on 31 August 2022 the transaction was

finalised.

BalPol is the market leader in Lithuania for insulation solutions from expanded polystyrene (EPS) and PIR, and for EPS packaging

solutions. BalPol, which was established in 2002, has approximately 150 employees and currently operates two downstream

facilities, whereas one facility produces PIR and MW sandwich panels and PIR insulation boards, while the other produces

insulation solutions from EPS for construction and packaging products from EPS and EPE.

BalPol demonstrated solid growth and improved profitability in 2021, recording revenues of approximately EUR 31.0 million and

an EBITDA of approximately EUR 4.3 million. The increase is mainly explained by favourable market conditions, a broadened

product range and increases sales prices.

The total consideration for the shares in BalPol amounts to approximately EUR 29.2 million, of which 50 per cent has been paid

in cash and 50 per cent has been settled by the issuance of 2 238 188 consideration shares in BEWI at a share price of NOK 64.64

per share. The price per share is calculated based on a three (3) months weighted average price from 23 August 2022. The share

capital increase was resolved by the board of directors by use of the authorisation granted by the annual general meeting on

2 June 2022. The company is consolidated as from 1 September.

The adjusted acquisition analysis presented below gave rise to goodwill of EUR 9.0 million, which relates to synergies such as

future market growth opportunities and future cost savings. The main value adjustments were related to buildings & land,

trademark, and customer relations. Goodwill is not tax deductible. Until 31 December 2022, BalPol had contributed EUR 8.7

million to the group’s net sales, EUR 0.5 million to adjusted EBITDA and EUR 0.1 million to EBIT, excluding transaction costs. If the

acquisition of BalPol had taken place on 1 January, BalPol would have contributed EUR 34.7 million to the group’s net sales,

EUR 3.3 million to adjusted EBITDA and EUR 2.2 million to EBIT. Transaction costs amounted to EUR 0.1 million.

Amounts in million EUR Total

Cash consideration 14.4

Paid in shares 12.9

Total 27.4

Recognised amount of identifiable assets and acquired liabilities assumed

Trademark 2.6

Technology 0.0

Customer relations 10.1

Other intangible assets 0.0

Property, plant and equipment 8.6

Other fixed assets 0.7

Inventory 6.5

Current receivables 4.1

Cash and cash equivalents 0.1

Non-current liabilities -2.0

Deferred tax liability -3.0

Current liabilities -9.3

Total identifiable net assets 18.4

Goodwill 9.0

Cash and cash equivalents in acquired business 0.1

Total cash outflow from acquisition of business -14.3

The acquisition analysis is preliminary

127127

Jackon Holding AS

In October 2021, BEWI received acceptance from all shareholders on its offer for the acquisition of the Norwegian family-owned

packaging and insulation company Jackon Holding.

On 12 October 2022, the company announced that it had received final approvals from all relevant competition authorities to

proceed with closing of the acquisition. The approval in Finland was conditional upon BEWI divesting two insulation facilities,

located in Tarvasjoki and Ruukki. The divestments were completed on 24 October 2022.

In Norway, the approval was conditional upon divestments of Jackon’s packaging facility in Alta and the share (63 per cent) of

the packaging facility called Kasseriet in Gratangen. The divestments were completed on 26 October 2022. In total, revenues for

the four facilities divested represent less than two per cent of the combined company’s annual turnover.

On 19 October, BEWI announced that the acquisition of Jackon was completed. On this date, BEWI issued 32 070 000 new shares

directed to the Akselsen family and their investment company HAAS AS, as consideration for their 50 per cent holding of the

shares of Jackon. The shares are subject to a 12-months lock-up from issuance. The shareholders holding the remaining 50 per

cent accepted received approximately NOK 1.3 billion in cash upon closing.

Jackon was consolidated from 1 November 2022.

At the time of the release of this report, the acquisition analysis for Jackon is preliminary and gave rise to goodwill of EUR 94.2

million. A complete acquisition analysis is expected to be presented in 2023, leading to fair value adjustments of intangible

assets and a corresponding change in goodwill. Goodwill is not tax deductible. Until 31 December 2022, Jackon had con-

tributed EUR 54.0 million to the group’s net sales, EUR 1.5 million to adjusted EBITDA and EUR -0.4 million to EBIT, excluding

transaction costs. If the acquisition of Jackon had taken place on 1 January, Jackon would have contributed EUR 423.0 million to

the group’s net sales, EUR 24.2 million to adjusted EBITDA and EUR 11.3 million to EBIT. Transaction costs amounted to EUR 7.9

million.

Amounts in million EUR Total

Cash consideration 128.9

Paid in shares 148.8

Total 277.6

Recognised amount of identifiable assets and acquired liabilities assumed

Trademark 15.1

Technology 1.9

Other intangible assets 1.0

Property, plant and equipment 247.0

Other fixed assets 2.0

Inventory 57.2

Current receivables 76.8

Cash and cash equivalents -7.4

Non-current liabilities -92.3

Deferred tax liability -39.9

Current liabilities -77.2

Total identifiable net assets 184.1

Liabilities to non-controlling interests -0.7

Goodwill 94.2

Cash and cash equivalents in acquired business -7.4

Total cash outflow from acquisition of business -136.3

The acquisition analysis is preliminary

128128

IZOBLOK

On 2 November 2021, BEWI launched a tender offer for the acquisition of all outstanding shares in IZOBLOK. The offer was com-

pleted on 31 January 2022. Under the tender offer, BEWI received acceptances for a total of 121 870 shares at a price per share of

PLN 50.41, amounting to a total consideration of approximately EUR 1.3 million Settlement of the transaction was completed on

7 February 2022. After this transaction, BEWI owns (indirectly) 64.28 per cent of the shares, corresponding to 73.21 per cent of

the voting rights in IZOBLOK.

Other

In 2022, BEWI has also acquired non-controlling interests and settled final purchase price related to acquisitions carried out in

2021, leading to a total cash payment of EUR 7.5 million. This has not resulted in any changes to the fair value of acquired assets

and liabilities in business combinations.

Note 15 Sale of business

The acquisition of Jackon was conditional upon divestment of two insulation facilities in Finland and two packaging facilities

in Norway. In Finland, BEWI entered an agreement for the sale of the two insulation facilities located in Tarvasjoki and Ruukki. In

Norway, the agreement was entered into with the companies Kasseriet Alta AS and Kasseriet Holding AS for the sale of Jackon’s

facility in Alta and its shares in Kasseriet AS in Gratangen (63 per cent) respectively. Until the date of divestment, the companies

contributed EUR 13.1 million to the group’s net sales, EUR 1.0 million to adjusted EBITDA and EUR 0.8 million to EBIT in 2022.

million EUR Total

Cash consideration 8.1

Total 8.1

Recognised amount of identifiable assets and liabilities

Goodwill 1.0

Property, plant and equipment 8.3

Other fixed assets 0.1

Inventory 2.1

Current receivables 4.6

Cash and cash equivalents 0.3

Non-current liabilities -0.0

Deferred tax liability -0.3

Current liabilities -6.5

Total identifiable net assets 9.5

Cash and cash equivalents in sold business 0.3

Total cash inflow from sale of business 7.8

129129

Note 16 Shares in associates

Name

Carrying

amount

31 Dec 2021

Through

acquired

business

Acquired as

a subsidiary Dividend

Share of

income

Exchange

difference

Carrying

amount

31 Dec 2022

HIRSCH Porozell GmbH 4.8 - - -2.0 3.2 -0.1 5.8

HIRSCH France SAS 6.5 - - -0.9 -0.1 5.5

Jablite Group Ltd 1.4 - -1.7 - 0.3 - -

Inoplast S.R.O 0.3 - -0.4 - 0.1 - -

BEWI EPS ehf. 0.8 - - - - - 0.8

Energijägarna AB (E&D) - 1.0 - - - - 1.0

Total 13.8 1.1 -2.1 -2.0 2.8 -0.2 13.2

Name

Carrying

amount

31 Dec 2020

Acquisitions

during the

year

Acquired as

a subsidiary Dividend

Share of

income

Exchange

difference

Carrying

amount

31 Dec 2021

HIRSCH Porozell GmbH 2.4 - - -1.0 3.4 - 4.8

HIRSCH France SAS 5.4 - - - 0.9 0.1 6.5

Jablite Group Ltd 0.1 - - - 1.4 - 1.4

Inoplast S.R.O - 0.3 - - 0.0 - 0.3

BEWI EPS ehf. - 0.8 - - - - 0.8

Total 8.0 1.1 - -1.0 5.7 0.1 13.8

Share of income from Jablite Group Ltd in 2021 includes a positive amount of EUR 0.9 million, corresponding to BEWI’s share of

reversal of negative goodwill.

Non-current receivables associates 31 Dec 2022 31 Dec 2021

As of 1 January 4.2 4.1

Loans repaid -2.3 -

Acquired as a subsidiary -1.9

Exchange rate difference - 0.1

As of 31 December - 4.2

Summarised financial information for associates

2022 Net sales EBITDA

Operating profit

(EBIT) Net profit

HIRSCH Porozell GmbH 144.9 17.8 14.4 9.3

HIRSCH France SAS 86.9 3.2 -3.0 -2.5

Jablite Group Ltd

22.5 1.5 1.3 0.8

Inoplast S.R.O 7.4 0.4 0.2 0.2

BEWI EPS ehf. - - - -

31 Dec 2022

Non-current

assets Current assets

Non-current

liabilities Current liabilities Net debt

HIRSCH Porozell GmbH 45.7 44.5 12.6 29.3 8.1

HIRSCH France SAS 35.8 26.3 25.9 18.1 13.6

Jablite Group Ltd 3.6 16.0 3.0 13.1 6.0

Inoplast S.R.O 2.6 1.1 - 2.4 1.2

BEWI EPS ehf. - - - - -

Net sales, EBITDA, EBIT and Net profit for Jablite Group Ltd referes to period January to May when Jablite was an associated company. The balance sheets items

in the table above are adjusted to reflect adjustments made by BEWI when the associates are included in the consolidated accounts by applying the equity

method. The balance sheets in the statutory accounts for these companies will therefore deviate to the table above for some of the items.

130130

HIRSCH Porozell GmbH (34 per cent ownership)

In connection with the acquisition of Synbra in 2018, 66 per cent of Synbra’s shares in the German company Isobouw GmbH

was divested to Hirsch Servo Group. At the same time, BEWI obtained 34 per cent in the newly incorporated company Hirsch

Porozell GmbH, which acquired Saint Gobain’s insulation operations at four sites in Germany. The other 66 per cent is held by

Hirsch Servo Group. In 2019, Isobouw GmbH was merged into Hirsch Porozell GmbH and the combined company now operates

six insulation production sites in Germany.

Hirsch France SAS (34 per cent ownership)

On 31 December 2019, BEWI, together with Hirsch Servo Group, closed a deal in which six insulation production sites in France

and 49.9 per cent of the shares in the French company Issosol SAS were acquired from Placopatre SA, a subsidiary of Saint

Gobain. The acquisitions are done through a newly incorporated French company, Hirsch France SAS, 34 per cent owned by

BEWI and 66 per cent owned by Hirsch Servo Group.

BEWI EPS ehf. (49 per cent ownership)

BEWI owns 49% in the company BEWI EPS ehf. located on Iceland. The company has not yet commenced operations.

Energijägarna AB (49.8 per cent ownership)

In connection with the acquisition of Jackon, Energijägarna AB became part of BEWI Group as an associated company.

Erergijägarna AB is owned by Jackon AB.

Remondis Technology Sp. z.o.o.

BEWI owns 34% in the Polish recycling company Remondis Technology Sp. z.o.o since the acquisition of BEWi Drift Holding AS

in 2020. The company is, among other things, collecting and reusing EPS for recycling in extruders and selling the end products

to BEWI’s RAW business.

131131

Note 17 Financial instruments per category

31 December 2022

million EUR

Financial assets

measured at fair value

through profit and loss

Financial assets

measured at

amortised cost Total

Balance sheet assets

Other long-term receivables - 0.1 0.1

Participations in other companies 6.1 - 6.1

Accounts receivables - 156.7 156.7

Current derivative assets 8.3 - 8.3

Cash and cash equivalents - 47.5 47.5

Total 14.4 204.3 218.7

31 December 2022

million EUR

Financial liabilities

measured at fair value

through profit and loss

Financial liabilities

measured at

amortised cost Total

Balance sheet liabilities

Non-current bond loan - 246.9 246.9

Non-current liabilities to credit institutions - 87.8 87.8

Non-current liabilities leases - 150.4 150.4

Current liabilities to credit institutions - 69.5 69.5

Overdraft facillity - 22.7 22.7

Current liabilities leases - 20.1 20.1

Current derivative liability 0.4 - 0.4

Account payables - 83.5 83.5

Total 0.4 681.0 681.4

31 December 2021

million EUR

Financial assets

measured at fair value

through profit and loss

Financial assets

measured at

amortised cost Total

Balance sheet assets

Other long-term receivables - 4.2 4.2

Participations in other companies 9.8 - 9.8

Accounts receivables - 98.8 98.8

Current derivative assets 0.2 - 0.2

Cash and cash equivalents - 142.3 142.3

Total 10.0 245.4 255.5

31 December 2021

million EUR

Financial liabilities

measured at fair value

through profit and loss

Financial liabilities

measured at

amortised cost Total

Balance sheet liabilities

Non-current bond loan - 246.1 246.1

Non-current liabilities to credit institutions - 9.8 9.8

Non-current liabilities leases - 66.1 66.1

Other financial non-current liabilites

4.3 - 4.3

Current liabilities to credit institutions - 3.0 3.0

Overdraft facillity - 0.8 0.8

Current liabilities leases - 13.0 13.0

Current derivative liability 0.2 - 0.2

Account payables - 89.7 89.7

Total 4.5 428.4 432.9

Other financial non-current liabilities include the option to acquire non-controlling interests, valued at EUR 3.8 million, and EUR 0.5 million in liabilities for

non-current derivatives

132132

Note 18 Account receivables

million EUR 31 Dec 2022 31 Dec 2021

Accounts receivables 158.0 99.8

Deducted: provisions for impairment for doubtful receivables -1.4 -1.0

Accounts receivables - net 156.7 98.8

The ageing analysis of all account receivables is clear from below:

million EUR 31 Dec 2022 31 Dec 2021

Not yet matured 124.9 86.3

1–30 days 24.6 10.4

31–60 3.8 1.7

> 61 days 4.8 1.5

Deducted: provisions for impairment for doubtful receivables -1.4 -1.0

Accounts receivables - net 156.7 98.8

31 Dec 2022 31 Dec 2021

Matured account receivables not part of the provisions for impairment for doubtful receivables 31.8 12.6

Carrying amounts, per currency, for account receivables and other receivables are the following:

million EUR 31 Dec 2022 31 Dec 2021

SEK 15.8 8.1

EUR 73.8 56.5

GBP 11.6 0.8

NOK 32.7 16.9

DKK 18.3 14.9

ISK 1.3 1.3

USD 2.4 -

CAD 0.6 -

PLN 0.1 -

Other 0.1 0.4

156.7 98.8

The group is applying the simplified approach for estimating credit losses. Estimated life-time cash shortfalls is the basis for

calculating credit losses for accounts receivables. For this purpose, accounts receivables are grouped based on certain char-

acteristics. The principles for writing off accounts receivables are based on prerequisites such as insolvency, failed legal and

other collection processes, credit risk assessments based on credit information provided by credit agencies, identified payment

behavior, company specific information such as changes in company management or lost contracts and macro-economic

outlook for industries and countries. Credit losses on accounts receivables are reported in operating income. Reversals of prior

credit losses are also reported in operating income.

133133

Note 19 Inventory

The expenditure for inventory carried as an expense forms part of the items raw materials and consumables and goods for

resale in the income statement and amounts to EUR 568.4 million (EUR 397.1 million).

EUR 1.1 million (EUR 1.2 million) was expensed as write-downs of inventory in 2022. The group reversed EUR 0.6 million (EUR 0.5

million) in 2022 of earlier write-downs of the inventory. The expense and reversed amount is reported in the item raw materials

and consumables in the income statement.

Note 22 Share capital

The number of shares as of December 31, 2022 amounted to 191 347 992, each with a par value of NOK 1. Each share entitles to

one vote. All shares issued by the parent company are fully paid.

Fully paid

ordinary share Type of change

Date of

decision

Changes in

number of

Change in

share capital

Total number

of shares

Total share

capital (NOK)

Par

value

(NOK)

As of 31 Dec 2020 148 410 874 148 410 874 1.00

New share issue 6 May 2021 7 067 138 7 607 138 155 478 012 155 478 012 1.00

New share issue 7 Jul 2021 1 132 792 1 132 792 156 610 804 156 610 804 1.00

As of 31 Dec 2021 156 610 804 156 610 804 1.00

New share issue 9 Mar 2022 429 000 429 000 157 039 804 157 039 804 1.00

New share issue 9 Sep 2022 2 238 188 2 238 188 159 277 992 159 277 992 1.00

New share issue 19 Oct 2022 32 070 000 32 070 000 191 347 992 191 347 992 1.00

As of 31 Dec 2022 191 347 992 191 347 992 1.00

Following the authorisation from the extraordinary general meeting on 16 November 2020, the board of directors on 6 May

2021 resolved to issue 70671ue 7 067 138 new shares for subscription price of NOK 28.30 in a private placement that raised NOK 200

million, equal to EUR 19.6 million. Net of transaction costs, equity increased by EUR 18.9 million.

On the 3 June 2021, the annual general meeting of the company authorised the board of directors to increase the share capital

of the company to inter alia strengthen the equity of the company, finance future growth and acquisitions and to increase the

liquidity and spread of ownership in respect of the shares and for other purposes as the board of directors decides, by up to

NOK 31095 601 095 602, equivalent to 20% of the share capital at the time the authorisation was granted. The authorisation was valid

until the annual general meeting in 2022, however expiring at the latest on 30 June 2022. Following the authorisation, the Board

of Directors on 7 July 2021 resolved to issue 11sue 1 132 792 new shares for a subscription price of NOK 27.50 per share in a private

placement, as part of the consideration for the shares in IZOBLOK, and directed towards the majority seller of that company. The

new share issue increased equity by NOK 31.2 million, equal to EUR 3.1 million.

Note 20 Prepaid expenses and accrued income

million EUR 31 Dec 2022 31 Dec 2021

Prepaid energy tax expenses 0.6 0.4

Accrued bonus and discounts 1.1 0.5

Other items 10.9 4.0

Total 12.5 5.0

Note 21 Cash and cash equivalents

million EUR 31 Dec 2022 31 Dec 2021

Bank balances 47.5 142.3

134134

On 2 March, following the exercise of share options by option holders under the company’s share option programme, the

board of directors resolved to increase the company’s share capital by NOK 429 000, by the issuance of 429 000 new shares at a

subscription price of NOK 24.06 per share.

On the 16 of February 2022, an extra general meeting of the company authorised the board of directors to increase the share

capital by up to 32 070 000 shares. The authorization could only be used in connection with the company’s acquisition of shares

in Jackon Holding AS. Following the authorisation, the board resolved to issue 32 070 000 for the subscription price of

NOK 45.9925 on the 19 October 2022.

On the 2 June 2022, the annual general meeting of the company authorised the board of directors to acquire shares in the

company on one or more occasions. The total nominal value of shares acquired pursuant to this authorisation may not exceed

NOK 15703980, equal to t5 703 980, equal to ten per cent of the company’s share capital at the time the authorisation was given. The purchase

price per share shall not be less than NOK 1 and not more than NOK 500. The purchase of own shares shall otherwise be com-

pleted by the board of directors at its discretion. The authorisation is valid until the next annual general meeting, but not later

than 30 June 2022. By 31 December 2022, no shares had been bought back.

On the 2 June 2022, the annual general meeting of the company also authorised the board of directors to increase the share

capital by 31 407 960 NOK. Within this aggregated amount, the authorisation may be used on more than one occasion to

strengthen the equity of the company, finance future growth of the company’s business, acquire companies with settlement in

company’s shares, increase the liquidity and spread the ownership in respect of the company’s shares or for other purposes as

the board decides. The authorisation is valid until the annual general meeting in 2023, and will in any cases expire 30 June 2023.

Following the authorisation, the board of directors resolved to issue 2 238 188 new shares for the subscription price of 64.64

NOK per share in connection with the acqusition of UAB Baltijos Polistirenas.

Largest shareholders

Name Shares Per cent

BEWI Invest AS

97 958 328 51.19

HAAS AS

32 070 000 16.76

Kverva Industrier AS 15 292 424 7.99

J.P. Morgan SE 5 068 463 2.65

Skandinaviska Enskilda Banken AB 3 794 246 1.98

Nordea Bank Abp 3 585 405 1.87

M AM Asset Management AB 2 943 258 1.54

AB SEB BANKAS 2 238 188 1.17

Union Bancaire Privee, UBP SA 2 165 467 1.13

Tredje AP-fonden 1 874 189 0.98

Other 24 358 024 12.73

Total 191 347 992 100.00

BEWI Invest AS is majority owned by members of the Bekken family.

 HAA2 HAAS AS is owned by members of the Akselsen family, including director of the board Andreas M. Akselsen.

135135

Note 23 Share-based incentive programme

In November 2020, the board of directors exercised the authorisation given by the Extraordinary General Meeting on 16 November

and launched a share-based incentive programme to a maximum of 25 key employees in the company, involving a maximum

of 2 875 000 share options, and entitling the participants in the programme to subscribe for the same number of shares in the

company during a three-year period. The number of share options outstanding as of 31 December 2022 represents 1.2 per cent of

the number of shares outstanding as of that date. The purpose of the programme is to further align the interests of the company

and its shareholders by providing incentives in the form of awards to employees to motivate them to contribute materially to the

success and profitability of the company. This programme will also enable the company to attract and retain such employees.

Settlement of the options may, at the discretion of the board of directors, be done by issuing new shares or by using, if available,

shares bought back by the company.

At grant date on 19 November 2020, 2 625 000 share options were granted to 22 key employees. The share options entitle the partici-

pants to subscribe for shares at a pre-set strike price, which is adjusted for dividends paid. Strike price at grant date was NOK 24.48,

equal to 110 per cent of the average share price during five days preceding the grant date on 19 November 2020. As of 31 December

2022 strike price was NOK 22.96 (24.06). The gain per option may however not exceed the strike price at the time of exercise,

multiplied by three minus strike price at grant date. The number of exercisable options will be reduced proportionally so that the

maximum gain does not exceed the maximum gain per option multiplied by the numbers of options granted. This gain is calculated

based on the average share price five days prior to the period of exercise.

In the event the company is not capable of delivering shares (for reasons being lack of approval in the general meeting or lack of

board authorisation to issue shares or lack of own shares in the Company) following an exercise of options, the company shall fulfil its

obligations under the programme towards participants other than Swedish residents by way of making a cash payment equal to the

excess, if any, of the share price over the strike price, multiplied by the number of exercisable options.

The options will vest in three tranches during a three-year period, as presented in the table below. The options are exercisable during

a window period after the release of the quarterly reports for the fourth and second quarters. Options that are not exercised within 5

years from the date of grant will lapse and become void.

Percentage of option programme vesting Vesting date Expiry date

20% 19 November 2021 19 November 2025

30% 19 November 2022 19 November 2025

50% 19 November 2023 19 November 2025

The fair value of each option at grant date was calculated at NOK 4.59 per option. The Black-Scholes model was used for

calculation of fair value and the following assumptions were used:

Number of options 2 625 000

Number of potential shares 2 625 000

Contractual life 5 years

Strike price 24.48

Share price 22.10

Expected lifetime 3.30 years

Volatility 34.32%

Interest rate 0.321%

Dividend 0.00

The total value of the options granted in 2020 was EUR 1.1 million. EUR 0.6 million (0.7) of that was recognised as personnel costs

during the year. In addition, EUR 0.6 million in income due to reversal of accrual (1.8 expense in 2021) was recognised during the

year in personnel costs related to social security charges.

The change in the number of options outstanding during the year is presented in the table below:

2022 2021

Outstanding as of 1 January 2 762 500 26250002 625 000

Granted during the year 40 000 305000305 000

Adjusted - 75007 500

Exercised -429 000

Terminated - -175000-175 000

Outstanding as of 31 December 2 373 500 27625002 762 500

Vested but no exercised 972 250 562500562 500

During the exercise window in March 2022, 429 000 shares were issued at a subscription price of 24.06. The average share price

at the time of exercise was NOK 61.26.

136136

Note 24 Earnings per share

million EUR 2022 2021

Profit for the period attributable to parent company shareholders (million EUR) 34.4 35.7

Average number of shares 164 109 723 153336017153 336 017

Effect on options to employees 1 381 172 780351780 351

Diluted average number of shares 165 490 895 154116368154 116 368

Earnings per share (EPS), basic (EUR) 0.21 0.23

Earnings per share (EPS), diluted (EUR) 0.21 0.23

Earnings per share (EPS), basic (NOK) 2.12 2.37

Earnings per share (EPS), diluted (NOK) 2.10 2.36

EPS in NOK is calculated using the average rate in the period.

The number shares outstanding have increased from 15666 610 804 to 1913491 347 992 compared to 31 December 2021 in three new

share issues, one in March 2022, one in September 2022 and one in December 2022. Earnings per share is calculated by dividing

profit attributable to parent company shareholders by the weighted number of ordinary shares during the period.

In 2022, BEWI ASA distributed dividends of NOK 1 . 1 0 per share based on the results for the financial year of 2021. The dividends

were distributed on 18 November 2022, following completion of the Jackon transaction in October. On 15 February 2023, the

board of directors of BEWI proposed to pay a dividend of NOK 0.6 0 per share for the financial year of 2022.

Note 25 Borrowings

Interest-bearing liabilities

million EUR 31 Dec 2022 31 Dec 2021

Non-current

Bond loan 246.9 246.1

Liabilities to credit institutions 87.8 9.8

Liabilities leases 150.4 66.1

Other non-current liabilities 0.7 -

Total long-term borrowings 485.8 322.0

Current

Liabilities to credit institutions 69.5 3.0

Liabilities leases 20.1 13.0

Overdraft 22.8 0.8

Total current borrowings 112.4 16.7

Total borrowings 598.2 338.7

Specification of net debt

Net debt by the end of the reporting period, million EUR 31 Dec 2022 31 Dec 2021

Interest-bearing liabilities 598.2 338.7

Cash and cash equivalents 47.5 -142.3

Net debt in including IFRS 16 550.7 196.4

Adding back IFRS 16 leasing liabilities -168.4 -76.1

Net debt excluding IFRS 16 382.3 120.3

Change in net debt, million EUR 31 Dec 2022 31 Dec 2021

Change in interest-bearing liabilities 259.4 117.2

Change in cash and cash equivalents

Impact from cash flow for the period 91.9 -89.1

Impact from exchange differences 2.9 -1.8

Change in net debt including IFRS 16 354.3 26.3

Adding back change in IFRS 16 leasing liabilities -92.3 2.4

Change in net debt excluding IFRS 16 262.0 28.7

137137

Change in interest-bearing liabilitiesties Bond loan

Liabilities

to credit

institutions

Liabilities

leasing

Factoring

debt Overdraft Total

Interest-bearing liabilities as of

31 December 2021 246.1 12.8 79.1 - 0.8 338.7

Cash flow affecting changes - - - - - -

Borrowings - 62.3 - - 22.7 85.0

Repayment of loans -0.3 -3.8 - - -1.4 -5.5

Repayment of leasing liabilities - - -12.8 - - -12.8

Total cash flow in financing activities -0.3 58.5 -12.8 - 21.3 66.7

Changes not affecting cash flow - - - - - -

Through acquisitions - 91.1 34.1 0.7 1.1 127.0

Through divestments - - -0.1 - - -0.1

Capitalised leasing - - 76.1 - - 76.1

Amortisation financing costs 1.1 - - - - 1.1

Exchange differences - -5.1 -6.0 - -0.4 -11.5

Total changes not affecting cash flow 1.1 86.0 104.1 0.7 0.7 192.6

Total changeotal change 0.8 144.5 91.3 0.7 22.0 259.4

Interest-bearing liabilities as of

31 December 2022 246.9 157.3 170.5 0.7 22.8 598.2

Change in interest-bearing liabilitiesties Bond loan

Liabilities

to credit

institutions

Liabilities

leasing

Factoring

debt Overdraft Total

Interest-bearing liabilities as of

31 December 2020 137.9 1.8 81.5 - 0.4 221.6

Cash flow affecting changes

Borrowings 245.4 2.4 - - 0.3 248.1

Repayment of loans -140.0 -1.5 - - -0.4 -141.9

Repayment of leasing liabilities - - -11.4 - - -11.4

Total cash flow in financing activities 105.4 0.9 -11.4 - -0.1 94.8

Changes not affecting cash flow

Through acquisitions - 10.3 3.0 - 0.5 13.8

Through divestments - - -0.6 - - -0.6

Capitalised leasing - - 5.4 - - 5.4

Amortisation financing costs 2.8 - - - - 2.8

Exchange differences 0.0 -0.2 1.1 - - 0.9

Total changes not affecting cash flow 2.8 10.1 8.9 - 0.5 22.3

Total changeotal change 108.2 11.0 -2.5 - 0.4 117.1

Interest-bearing liabilities as of

31 December 2021 246.1 12.8 79.1 - 0.8 338.7

138138

Bond loans

Frame Amount outstanding Date of issuance

Maturity/redemtion

date

EUR 250 million EUR 250 million 3 September 2021 3 September 2026

The EUR 250 million bond, which is unsecured and linked to a sustainability framework, matures on 3 September 2026, with a

possibility for BEWI to unilaterally decide on an early redemption after 3 March 2025 of 50 per cent of the bonds outstanding at

that date. Net of financing costs, BEWI received EUR 245.4 million in cash from the bond issued during the year. The bonds are

recognised under the effective interest method at amortised cost after deductions for transaction costs. Interest terms, as well

as nominal interest rates and average interest rates recognised during the quarter are presented in the table below.

Nominal interest Average interest

Bond loan Interest terms 2022 2021 2022 2021

EUR 65 million Euribor 3 m + 3.15% 2.86-5.12% 2.58-2.60% 3.66% 3.09%

Liabilities to credit institutions and factoring debt

The group has a Revolving Credit Facility.The facility was increased during 2022 to a total of EUR 150 million (from 80 million) and

is granted by two banks. As part of this facility on of the participating banks is providing an overfraft facility. As of 31 December

2022 the RCF was utilised by EUR equivivalent 59.8 million and interest range between 2.7% - 3.8% during the year and the

overdraft was utilised with 6.3 million EUR equivivalent with an interest range of 0.7% - 3.1%. Interest-bearing liabilities in

acquired subsidiaries are normally settled and refinanced internally after the acquisition. However, in a specific cases liabilities

to credit institutions in acquired companies, including overdraft facilities, have not been subject refinancing post acquisition.

Such liabilities to credit institutions have carried an interest in the range of 0.9% - 5.1% during 2022. As of 31 December 2022, a

majority of the liabilities from aquired companies to credit institutions, as well as the ovedraft recognised as of that date, were

attributable to the acquisition of Jackon Holding AS

Liabilities leases

For leases capitalised in accordance with IFRS 16, the interest rates used for discounting the future lease payments have been

based on the Group’s bond trading and Euro benchmark spreads, adjusted for the fact that the lease liabilities are repaid over

the lease-term in contrast to the bonds that are repaid in full at maturity. Each company or relevant business unit has been

given a credit rating, derived from certain financial KPI’s, based on Moody’s methodology. These ratings have been applied to

the spreads to arrive at the discount rates. Depending on the lease-term and the rating, the discount rates vary from 1.2-8.2% for

contracts maturing within 1-3 years to 6.2-13.2% for contracts maturing after 10 years. For lease contracts already capitalised in

accordance with IAS 17 prior to the transition to IFRS 16, the discount rates have remained unchanged and range from 1.90-

7.14%, corresponding to the implicit rates of the contracts.

million EUR 31 Dec 2022 31 Dec 2021

Overdraft facility (equivalent amount in million EUR) 150 80

Overdraft utilised 59.8 -

Covenants and security provided

The revolving credit facility agreement and the terms and conditions for the bond loans state certain covenants that the

Group has to comply with, referred to as Leverage Ratio and Interest Coverage Ratio. Leverage Ratio is defined as net debt to

EBITDA and Interest Coverage Ratio as EBITDA to net finance charges, where both EBITDA and net finance charges are adjusted.

EBITDA is adjusted for non-recurring items, as defined in the loan agreements. The impact of IFRS 16 on net debt and EBITDA

is excluded in the covenant calculation. Compliance with the covenants is calculated on a regular basis with the respect to the

revolving credit facility agreement, whereas compliance in the bond loan agreements is triggered by certain events, such as

new financial indebtedness. The Group has not been in breach of any covenants in 2022 or 2021. The revolving credit facility is a

super senior credit facility and the bond loan is subordinated the revolving credit facility.

Liabilities to credit institutions and overdraft facilities not refinanced post acquisition, and arisen as a result of acquisitions in

2022, and some former aquisistions are subject to securities granted in the form of mortgages and pledges. The value at the

balance sheet day of the securities provided, is presented in note 29 Pledged assets.

Currency exposure

Carrying amounts per currency (in millions) for the Group’s interest-bearing liabilities are as follows:

31 Dec 2022 31 Dec 2021

million EUR Incl. IFRS 16 Excl. IFRS 16 Incl. IFRS 16 Excl. IFRS 16

SEK 78.7 40.7 8.7 0.2

EUR 307.0 275.7 287.8 259.7

NOK 174.0 107.5 24.4 2.1

DKK 20.2 1.2 17.2 -

GBP 17.4 3.8 - -

Other 0.9 0.9 0.6 0.6

598.2 429.8 338.7 262.6

139139

Maturity

The tables below presents the maturity of the discounted cash flows of the group’s interest-bearing liabilities.

As of 31 December 2022 < 1 yr. 1–2 yr. 2–5 yr. > 5 yr.

Bond loans - - 246.9 -

Liabilities to credit institutions 69.5 82.3 4.9 0.6

Liabilities leases according to definition in IAS 17 0.9 0.8 0.4 0.1

Additional liabilities leases due to IFRS 16 19.3 18.0 46.1 84.9

Other non current liabilities - - 0.7 -

Overdraft 22.8 - - -

Total 112.5 101.1 299.0 85.6

As of 31 December 2021 < 1 yr. 1–2 yr. 2–5 yr. > 5 yr.

Bond loans - - 246.1 -

Liabilities to credit institutions 3.0 2.7 7.1 0.2

Liabilities leases according to definition in IAS 17 1.3 0.8 0.8 0.1

Additional liabilities leases due to IFRS 16 11.1 9.6 25.2 30.2

Overdraft 0.8 - - -

Total 16.2 13.1 279.2 30.3

Note 26 Pensions and similar obligations to employees

The group provides defined benefit pension plans in Finland, Norway and in the UK. The defined benefit pension plans in the

UK, which are closed for new participants, originate from the acquisition of Synbra and are related to Synbra’s

previous operations in the UK. Due to contractual obligations, the group had to pay a lump sum to the UK funds in 2018,

following the change of ownership of Synbra. As a result, the fair value of plan assets in one of the funds exceed the present

value of the pension obligation and a net pension asset is recognised on the balance sheet. The net pension asset is not subject

to asset ceiling limitations.

The defined benefit pension obligations, calculated in accordance with the Projected Unit Credit Method, are, among other

things, based on estimated salary increases, apart from the UK funds, which are closed for new participants and where the

existing participants are no longer employed by the group. In addition to the defined benefit pension plans, the group also

provides other long-term benefits in the Netherlands through a so called Jubilee plan, which entitles the participants salary

benefits for long-term service. The Jubilee plan is calculated in accordance with the Projected Unit Credit Method and is

presented below as Other long-term benefits.

140140

The amounts reported on the balance sheet have been calculated as follows:

Defined benefit pension plans Other long-term benefits

million EUR 31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021

Present value of funded obligations -32.4 -49.6 - -

Fair value of plan assets 34.8 56.0 - -

2.3 6.4 - -

Present value of unfunded obligations - 0.0 -0.9 -1.1

Net asset(+)/liability(-) as of 31 December 2.3 6.4 -0.9 -1.1

Net pension asset

United Kingdom 2.6 6.7 - -

2.6 6.7 - -

Pension obligations and other long-term benefits

Netherlands - - -0.9 -1.1

Finland -0.2 -0.3 - -

Norway 0.0 0.0 - -

United Kingdom - - - -

-0.2 -0.3 -0.9 -1.1

The amounts reported on the balance sheet and changes in the defined benefit pension plans during the year are as follows:

Defined benefit pension plans Other long-term benefits

2022 2021 2022 2021

Costs of service during the current year -0.1 -0.1 -0.1 0.0

Past service cost - - - -

Net Interest income/expense 0.1 0.0 0.0 0.0

Total reported in the income statement 0.1 -0.1 -0.1 0.0

Return on plan assets excluding amounts included

in interest expenses/income -18.0 2.2 - -

Actuarial gains/losses from changes in

demographic assumptions -0.2 0.2 - -

Actuarial gains/losses from changes in financial

assumptions 14.8 1.4 - -

Experience based gains/losses -0.8 0.2 - -

Total reported in other comprehensive income -4.2 4.0 - -

Defined benefit pension plans Other long-term benefits

Change in present value of the obligation 31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021

As of 1 January -49.6 -50.7 -1.1 -1.1

Current service cost -0.1 -0.1 -0.1 0.0

Interest cost -0.9 -0.7 0.0 0.0

Actuarial gains/losses 13.8 1.8 - -

Benefits paid 2.3 1.9 0.0 0.0

Settlements 0.0 1.7 0.2 -

Exchange rate differences 2.0 -3.5 - -

As of 31 December -32.4 -49.6 -0.9 -1.1

141141

Defined benefit pension plans Other long-term benefits

Change in fair value of plan assets 31 Dec 2022 31 Dec 2021 31 Dec 2022 31 Dec 2021

As of 1 January 56.0 52.5 - -

Interest income 1.0 0.7 - -

Return on plan assets excluding amounts included

in interest expenses/income -18.0 2.2 - -

Contributions by the employer 0.3 0.3 - -

Benefits paid -2.3 -0.2 - -

Settlements 0.0 -3.3 - -

Exchange rate differences -2.2 3.9 - -

As of 31 December 34.8 56.0 - -

The most critical assumptions for the defined benefit pensions were: 31 Dec 2022 31 Dec 2021

United Kingdom

Discount rate 4.70-5.00% 1.85–1.90%

Salary increase n/a n/a

Inflation (based on CPI and RPI assumption) 2.90-3.40% 3.10–3.60%

Pension increase (based on CPI and RPI assumptions) 1.80-3.20% 2.25–3.45%

Finland

Discount rate 3.75% 1.00%

Salary increase 3.10% 2.60%

Inflation 2.60% 2.10%

Cost of living adjustments for pensions in payment - -

Norway

Discount rate 3.20% 1.90%

Salary increase 3.75% 2.75%

G-regulering 3.50% 2.50%

The range in assumed inflation in the United Kingdom reflects different assumptions used for CPI versus RPI. The range in

assumed pension increase in the UK reflects different limits linked to years in which the pension was accrued and different

inflation metrics applied for those limits.

The most critical assumptions for other long-term benefits were: 31 Dec 2022 31 Dec 2021

Discount rate 3.40% 0.60%

Salary increase 2.70% 2.20%

The sensitivity in the net defined benefit pension asset/liability for changes in essential assumptions are presented below

(minus equals decrease in net asset/increase in net liability).

Change in fair value of plan assets, million EUR Change

Increase in

assumption

Decrease in

assumption

Discount rate 0.50% 1.7 -1.8

Salary increase 0.50% 0.0 0.0

Pension increase 0.25% -1.1 1.0

For the financial year of 2023, the defined pension plan fees are expected to amount to EUR 0.3 million.

Plan asset allocation 31 Dec 2022 31 Dec 2021

Bonds 12.3 9.5

Equities 5.7 18.0

Hedge funds and alternatives 15.2 26.3

Insurance contracts 0.9 1.1

Real estate 0.1 0.1

Cash 0.6 1.0

34.8 56.0

Analysis of expected undiscounted payments of defined benefits 31 Dec 2022 31 Dec 2021

Within 1 year 2.1 2.0

1–2 years 2.0 2.2

3–5 years 6.8 6.9

5 years or more 43.7 49.9

142142

Note 27 Other provisions

million EUR

Restoration of

environment

Restructuring

measures

Health

benefits Staff benefits Guarantee Total

As of 1 January 2021 0.1 0.4 0.1 0.0 0.1 0.7

Reported in the income statement:

– additional provisions - 0.9 - - 0.1 1.0

Exchange differences - 0.0 - - - 0.0

Utilised durig the year - -0.7 -0.0 -0.1 -0.1 -0.9

As of 31 December 2021 0.1 0.6 0.0 0.0 0.1 0.9

million EUR

Restoration of

environment

Restructuring

measures

Health

benefits Staff benefits Guarantee Total

As of 1 January 2022 0.1 0.6 0.0 0.0 0.1 0.9

Reported in the income statement:

– additional provisions 0.0 0.5 - - 0.2 0.7

Exchange differences - 0.0 - - 0.0 0.0

Utilised durig the year - -1.1 -0.0 - -0.1 -1.2

As of 31 December 2022 0.1 0.0 - 0.0 0.3 0.4

million EUR 31 Dec 2022 31 Dec 2021

Long-term provision 0.1 0.1

Short-term provision 0.2 0.8

Total provision 0.4 0.9

Note 28 Accrued expenses and deferred income

million EUR 31 Dec 2022 31 Dec 2021

Accrued wage debt 8.6 4.6

Accrued social security fees 4.6 3.8

Accrued holiday pay including social security fees 13.9 11.6

Accrued customer bonuses 20.0 8.7

Accrued interest 1.7 0.7

Other items 48.4 10.9

Total 97.3 40.2

Note 29 Contingent liabilities

million EUR 31 Dec 2022 31 Dec 2021

Guarantees to suppliers 21.7 18.6

Total 27.7 18.6

143143

Note 30 Pledged assets

million EUR 31 Dec 2022 31 Dec 2021

Business mortgages 2.9 2.4

Property mortgages 37.8 35.0

Other pledged assets 51.3 26.7

Total 92.0 64.0

Interest-bearing liabilities in acquired subsidiaries are normally settled and refinanced internally after the acquisition. However, in

specific cases liabilities to credit institutions in acquired companies, including overdraft facilities, have not been refinanced post

acquisition. The pleadged assets in 2021 and 2022 are attributable to those liabilities.

Note 31 Related parties

Christian Bekken, CEO of BEWI ASA, is together with other members of the Bekken family a majority shareholder of the company

through Bekken Invest AS and BEWI Invest AS. Other related parties are the two 34 per cent owned associated companies

Hirsch France SAS and Hirsch Porozell GmbH. Transactions with those companies are presented in the tables below.

Inoplast S.R.O. was owned to 34 per cent for the full year 2022 and is included in the table below with regards to positions from

the income statement. From 31 December 2022, Inoplast S.R.O. was consolidated as a subsidiary. Jablite Group Ltd was owned

to 49 per cent until 30 May 2022 and is up until this date included in the table below. From 1 June 2022 Jablite Group Ltd is

consolidated as a subsidiary.

Information on remuneration of management and the board of directors is found in note 6.

The number of shares in the company held by management and the board of directors as of 31 December 2022 is presented in

the table below.

Board of Directors

Person Title Shares Options

Shares held by

related parties

Gunnar Syvertsen

Chairman 5 952 - 155 729

Christina Schauman Director 5 952 - 187 500

Stig Waernes

Director - - -

Anne-Lise Aukner Director - - -

Rik Dobbeleare Director 98 497 - -

Andreas M. Akselsen

Director - - 32 070 000

Gunnar Syvertsen is chairman of the board of BEWI Invest AS, majority owned by the Bekken family and the owner of 97 958 328 shares per 31.12.2022.

BEWI Invest is listed as a related party to Christian Bekken, but is also related to Mr Syvertsen.

Stig Wærnes left the board upon completion of the Jackon transaction 19 October 2022, and was replaced by Andreas M. Akselsen.

 Shares h3 Shares held by HAAS AS, the investment company owned by the Akselsen family.

144144

Executive Management

Person Title Shares Options

Shares held by

related parties

Christian Bekken

Chief Executive Officer 2595225 952 200 000 97 958 328

Marie Danielsson Chief Financial Officer 185 452 250 000 -

Jonas Siljeskär Chief Operating Officer 124126124 126 200 000 -

Petra Brantmark

General Counsel 8 902 91 452 5 458

Charlotte Knudsen

Director of IR and Communications 33 681 91 452

Roger Olofsson

CHRO 5 952 125 000

Christian Bekken owns 25952 shan owns 25 952 shares directly and is part of the Bekken family that holds 979583ds 97 958 328 shares (directly or indirectly) through the family’s indirect

ownership in BEWI Invest AS.

Petra Brantmark, Roger Olofsson and Charlotte Knudsen became part of the Executive management team at 1

of October 2022.

Transactions impacting the income statement

million EUR 2022 2021

Sale of goods to:

HIRSCH France SAS 25.6 18.8

HIRSCH Porozell GmbH 46.2 45.3

Jablite Group Ltd 3.6 7.9

Inoplast s.r.o. 4.3 2.9

Bekken owned companies 0.4 0.1

Total 80.1 74.9

Other income from:

Inoplast s.r.o. 0.6 -

Bekken owned companies 0.3 -

Total 0.9 -

Purchase of goods from:

Inoplast s.r.o. 4.5 3.4

Bekken owned companies 4.2 3.1

Total 8.7 6.5

Interest Income from:

Hirsch France SAS 0.1 0.1

Jablite Group Ltd 0.0 0.1

Total 0.1 0.2

Rental expenses to:

Bekken owned companies 11.4 8.8

Total 11.4 8.8

Other external costs to:

Bekken owned companies 0.1 0.1

Total 0.1 0.1

145145

On 23 December 2021, the wholly owned subsidiary Biobe AS was sold to a company owned by members of Bekken family for

a consideration of EUR 6.2 million, of which EUR 4.2 million was settled in cash and EUR 2.0 million in a short-term loan to the

buyer. The loan was settled on 1 June 2022.

The transactions were conducted on normal market terms.

Transactions impacting the balance sheet

million EUR 31 Dec 2022 31 Dec 2021

Non-current receivable

Bekken owned companies 0.1 0.1

HIRSCH France SAS - 2.3

Jablite Group Ltd - 1.8

Total 0.1 4.2

Current receivables

Bekken owned companies 1.8 4.1

HIRSCH Porozell GmbH 0.1 0.1

Inoplast s.r.o. - 0.6

Total 1.9 4.8

Current liabilities

Bekken owned companies 0.3 -

Inoplast s.r.o. - 0.6

Total 0.3 0.6

Interest terms for the lending to associated companies are presented in note 16 Shares in associates.

Note 32 Adjustments for non-cash items, etc.

million EUR 31 Dec 2022 31 Dec 2021

Depreciations, amortisations and write-downs 47.2 37.8

Change in provisions for pension liabilities -0.5 -0.5

Change in other provisions -0.5 0.2

Share of income from associates net of dividend received -1.1 -4.5

Effect of share-based incentive programme 0.6 0.7

Capital gain from sale of assets and business -1.2 -1.1

Capital gain from revaluation of shares in associates -10.7 -

Settlement agreement - European Comission 17.2 -

Other -0.5 -

Total 50.5 32.6

146146

Note 33 Subsequent events

Measures to adjust capacity and reduce costs in Nordic Insulation

Following the combination with Jackon, and in response to the current market conditions, BEWI has initiated measures to

optimize its production footprint and reduce capacity to current demand. This includes reduced shifts at several facilities, and

temporary closure of one facility. In addition, the company has taken measures to reduce the cost base of its Nordic Insulation

division.

In total, the company expects annual savings of approximately EUR 5 million.

Exercise of options and increase of share capital

On 18 February 2023, BEWI announced that, following exercise of options by option holders under the company’s share option

programme, the board had resolved to increase the Company’s share capital by NOK 374 298, by the issuance of 374 298 new

shares at a subscription price of NOK 22.96 per share by use of the authorisation granted by the general meeting on 2 June 2022.

Agreement to divest real estate for NOK 348 million

On 31 March 2023, BEWI announced, with reference to the real estate transaction announced on 30 June 2022, that the company

had entered an agreement with KMC Properties ASA for the divestment of four properties, of which three properties in Finland

and one in Denmark valued at NOK 348.3 million. The purchase price will be settled in the form of an amount equal to approx.

NOK 200.0 million in cash and NOK 148.3 million in 20 235 931 new shares in KMC Properties at a subscription price of NOK 7.33

per share. KMC Properties has an exclusive right to acquire the remaining part of the portfolio until 30 June 2023. Through the

acquisition of the 20 235 931 new shares in KMC Properties, BEWI will increase in shareholding to a total of 28 807 359 shares

corresponding to 8.4 per cent of the issued share capital of KMC Properties.

147147

Income statement of the parent company

million NOK Note 2022 2021

Operating income

Net sales 3 5.0 4.0

Other operating income 0.0 0.7

Total operating income 5.0 4.7

Operating expenses

Other external costs 13 -47.9 -39.5

Personnel costs 4 -14.9 -17.1

Other operating costs -0.1 -

Total operating expenses -62.9 -56.6

Operating profit -57.8 -51.9

Financial income 181.2 115.5

Financial expense -154.1 -22.7

Financial income and expense - net 5 27.1 92.8

Profit before taxes -30.7 40.8

Income tax 6 6.9 -7.6

Net profit for the year -23.8 33.3

148148

Statement of financial position of the parent company

million NOK Note 31 Dec 2022 31 Dec 2021

ASSETS

Non-current assets

Financial assets

Shares in subsidiaries 7 6 162.6 3091.2

Other financial assets 0.0 0.0

Receivables from group companies 11 1 658.6 1573.3

Total financial assets 7 821.1 4664.6

Total non-current assets 7 821.1 4664.6

Current assets

Current receivables

Receivables from group companies 11 558.1 160.4

Accounts receivables 0.2 -

Prepaid expenses and accrued income 2.2 22.5

Total current receivables 560.4 182.8

Cash and cash equivalents 8 5.5 877.7

Total current assets 565.9 1060.5

TOTAL ASSETS 8 387.0 5725.1

149149

Statement of financial position of the parent company

million NOK Note 31 Dec 2022 31 Dec 2021

EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital (191 347 992 shares) 9,10 191.3 156.6

Total restricted equity 191.3 156.6

Non-restricted equity

Additional paid-in capital 10 4 426.2 2969.5

Profit or loss brought forward 10 0.0 0.0

Net profit or loss for the year 10 -23.8 33.3

Total non-restricted equity 4 402.4 3002.7

Total equity 4 593.7 3159.3

Non-current liabilities

Deferred tax liability 0.6 7.5

Non-current bond loan 2 595.7 2454.5

Liabilities to Group company 11 852.6 -

Total non-current liabilities 3 448.9 2462.0

Current liabilities

Liabilities to group companies 11 320.3 71.8

Account payables 3.7 10.3

Other short-term liabilities 1.0 2.5

Accrued expenses and deferred income 19.3 19.2

Total current liabilities 344.4 103.8

TOTAL EQUITY AND LIABILITIES 8 387.0 5725.1

Trondheim, Norway, 24 April 2023

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the Board

Anne-Lise Aukner

Director

Rik Dobbelaere

Director

Andreas Akselsen

Director

Kristina Schauman

Director

Christian Bekken

CEO

150150

Cash flow statement for the parent company

million NOK Note 2022 2021

Operating cash flow

Income before financial items -57.8 -51.9

Adjustments for non-cash items, etc 0.0 0.4

Interest paid and financing costs -88.4 -16.2

Interest received 0.0 19.3

Dividend received 71.2 35.0

Operating cash flow before changes to working capital -75.0 -13.4

Cash flow from working capital changes

Increase/decrease in current receivables 65.9 -1624.5

Increase/decrease in operating debt 230.9 43.7

Total change to working capital 296.8 -1580.8

Operating cash flow 221.7 -1594.2

Cash flow from investment activities

Acquisitions of subsidiary -1 835.3 -184.5

Cash flow from investment activities -1 835.3 -184.5

million NOK Note 2022 2021

Cash flow from financing activities

Borrowings, net of transaction costs 11 852.6 2453.0

New share issue, net of transaction costs 9.5 192.8

Group contribution 89.7 -

Dividend 10 -210.5 -65.3

Cash flow from financing activities 741.3 2580.4

Cash flow for the period -872.2 801.8

Opening cash and cash equivalents 877.7 75.9

Closing cash and cash equivalents 5.5 877.7

151151

Parent company

Accounting principles and notes to the accounts

Note 01 General information

The parent company is a public limited company registered in Norway, with head office located in Trondheim, Norway, and address Dyre Halses gate 1A, 7042 Trondheim.

Note 02 Summary of key accounting principles for the parent company

The key accounting principles used in this annual report are

stated below. The principles have consistently been used for

all reported financial years, unless otherwise specified.

The annual report for the parent company is prepared

in accordance with the Norwegian Accounting Act and

generally accepted accounting principles in Norway. The

accounts are stated below, for which the parent company

applies accounting principles differing from those of the

group, as described in note 2 to the consolidated accounts.

The annual report has been prepared in accordance with

the cost value principle.

The preparation of reports requires the use of certain critical

accounting estimates. It also requires management to

exercise its judgement in the process of applying the parent

company’s accounting principles. The areas involving a

higher degree of judgement or complexity or areas for which

assumptions and estimates are significant to the annual

report, are stated in note 4 to the consolidated accounts.

The parent company is through its activities exposed to

several different financial risks: market risk (currency risk

and interest rate risk), credit risk and liquidity risk. The

parent company’s comprehensive financial risk manage-

ment is focused on the unpredictability of the financial

markets and strives to minimise any adverse effect on

the consolidated profits. For more information regarding

financial risks, see note 3 to the consolidated accounts.

The parent company applies accounting principles

differing from those of the group for the areas are stated

below:

Layout

The income statement and statement of financial position

is compliant with the layout stipulated in the Norwegian

Accounting Act. The statement of changes to equity

observes the layout of the consolidated accounts, but must

contain the columns stated in the Norwegian Accounting

Act. Furthermore, differences arise relating to designations,

in comparison with the consolidated accounts, mainly

concerning the financial income/expense and equity.

Shares in subsidiaries

Shares in subsidiaries are reported at acquisition cost less

any impairment. The acquisition cost includes any cost

related to the acquisition and any additional purchase

price.

A calculation of the recoverable amount is undertaken, in

the event of an indicator of impairment of the shares in a

subsidiary. Should the recoverable amount be below the

carrying amount, impairment is made. Impairments are

reported in Profit from participations in group companies.

Financial instruments

Financial instruments are reported at acquisition cost.

Financial assets acquired for short-term holding will in

subsequent periods be reported at the lower of acquisition

cost or market value.

152152

Note 03 Net sales

The parent company’s revenue derive solely from one business area and is mainly related to intra-group administrative services.

Note 04 Employee remuneration etc.

million NOK 2022 2021

Salary and other remuneration -12.8 -11.9

Social security expenses -1.2 -4.5

Pension costs - defined contribution plans -0.5 -0.2

Total remuneration to employees -14.5 -16.7

The company is obliged to have an occupational pension scheme in accordance with the Act on Mandatory Occupational

Pensions. The company pension schemes satisfy the requirement of this Act.

Salary and other remunerations and pension costs for directors of the board, CEO´s and other senior executives

million NOK 2022 2021

Salary and other remuneration -4.6 -2.4

Bonus -0.9 -0.6

Pension costs -0.1 0.0

Total remuneration -5.6 -3.0

153153

Average number of employees

2021

Average number

of employees Whereof men

Norway 6 3

2022

Average number

of employees Whereof men

Norway 8 4

In November 2020, BEWI ASA implemented a share-based incentive programme, entitling the participants to subscribe for

shares in BEWI ASA during a three-year period. The purpose of the programme is to further align the interests of the company

and its shareholders by providing incentives in the form of awards to employees to motivate them to contribute materially to

the success and profitability of the Company. The features of the programme are further described in note 23 to the group.

The CEO of BEWI ASA was granted 250000 share options.

Severence pay

Subject to the CEO’s employment agreement, there is a notice period of 12 months if the agreement is terminated by the

company and a notice period of 6 months if the agreement is terminated by the employee. The employee is entitled to receive

unchanged salary and other fringe benefits during the period of notice, however the salary is deductable to other income.

Note 05 Interest income and interest expense and similar items

million NOK 2022 2021

Interest income, group companies 64.7 25.8

Exchange gains 0.0 -

Group contribution 116.4 89.7

Total interest income and similar profit or loss items 181.2 115.5

Interest expense -92.2 -21.0

Interest expense, group companies -11.8 -0.5

Exchange loss -50.1 -1.2

Other financial expenses - -

Total interest expense with similar profit or loss items -154.1 -22.7

Total financial income and expense - net 27.1 92.8

154154

Note 06 Income tax on the profit for the year

The income tax attributable to the income before taxes differs from the theoretical amount that would have arisen from the

application of the tax rate in Norway for the income of the parent company as follows:

million NOK 2022 2021

Income before taxes -30.7 40.8

Income tax calculated using the Norwegian tax rate (22%) 6.8 -9.0

Tax effects attributable to:

Non-deductible costs 0.0 -0.2

Deductible expenses not recognised in income statement 0.2 1.6

Total tax reported 6.9 -7.6

Unutilised tax loss carry forwards for which no deferred tax assets has been reported amount to MNOK 6.3 (1.6).

Note 07 Shares in subsidiaries and associates

Subsidiaries

million NOK 31 Dec 2022 31 Dec 2021

As of 1 January 3 091.2 2 910.6

Acquisition of subsidiaries 3 494.5 180.6

Dividend from subsidaries -423.1 -

As of 31 December 6 162.6 3 091.2

BEWI ASA bought three new directly owned subsidiaries in 2022. For more information about the acqusitions find information

in group Note 14 - Business acquisitions.

Name Reg. no.

Reg. office/

country

Proportion of

shares held by the

parent (%)

Carrying amount

31 Dec 2022

Carrying amount

31 Dec 2021

Directly owned

BEWI Synbra Group AB 556972 -1128 Solna, Sweden 100 2 487.5 2 910.6

BEWI Poland Spotka zoo 0000722895 Poland 100 181.7 180.6

BEWI Circular Holding AS 928 989 682 Norway 100 283.9 -

Jackon Holding AS 989 087 177 Norway 100 2 940.7 -

UAB Baltijos Polistirenas 160 421 364 Lithuania 100 268.8 -

Sum directly owned 6 162.6 3 091.2

155155

Subsidary Reg. no. Reg. office / country

Proportion of

shares held by

the parent (%)

Indirectly owned

BEWI Circular Belgium bvba BE 0465.783.904 Belgium 100

BEWI Circular Holding Belgium BE 00641.986.778 Belgium 100

BEWI Circular Trading Belgium bvba BE 0875.717.582 Belgium 100

Jackon Insulation N.V H.T.R.058089 Belgium 100

Kemisol NV BE 0464.536.859 Belgium 100

N.V. Internationaal Vervoer Brants Vallet BE 0400.670.970 Belgium 100

N.V. Kem-Products NV BE 0448.483.062 Belgium 100

Berga Recycling Inc. 7789815 Canada 100

Inoplast S.R.O 27877574 Czech Republic 100

BEWI Cellpack A/S 25 85 91 54 Denmark 100

BEWI Circular Denmark A/S 41 40 69 84 Denmark 100

BEWI Denmark A/S 31 86 7304 Denmark 100

Jackon DK A/S 20 04 79 41 Denmark 100

BEWi Cabee Oy 2083942-9 Finland 100

BEWi M-plast Oy 0506033-6 Finland 100

BEWi RAW Oy 10974747-6 Finland 100

Jackon Finland Oy 23525547 Finland 100

Jackon Insulation France S.a.r.l 501839-N France 100

Izoblok GmbH HRB 508966 Germany 64.28

Jackon Application GmbH DE318140659 Germany 100

Jackon GmbH DE19139400 4 Germany 100

Jackon Insulation GmbH DE126959786 Germany 100

BEWI Iceland ehf. 620818-0890 Iceland 85

Besto Verpakkingsindustrie BV 5034571 Netherlands 100

BEWI RAW BV 20033648 Netherlands 100

Ertecee BV 6010160 Netherlands 100

Genevad Netherlands BV 70824312 Netherlands 100

IsoBouw Systems BV 17046081 Netherlands 100

Moramplastics BV 9036097 Netherlands 100

Subsidary Reg. no. Reg. office / country

Proportion of

shares held by

the parent (%)

Poredo BV 71961577 Netherlands 75

Poredo Holding BV 18051893 Netherlands 75

Poredo Logistics BV 88096645 Netherlands 75

Stramit BV 17023362 Netherlands 100

Synbra BV 20080670 Netherlands 100

Synbra Holding BV 20095683 Netherlands 100

Synbra International BV 20095676 Netherlands 100

Synbra Propor BV 67056849 Netherlands 90

Synprodo BV 18115 693 Netherlands 100

Synprodo Produktie BV 10012456 Netherlands 100

BEWI Building & Industry AS 912 038 084 Norway 100

BEWI Circular AS 922 724 385 Norway 100

BEWI EPS Norway AS 928 878 090 Norway 100

BEWI Foil AS 977 051 371 Norway 100

BEWI Foods AS 979 574 193 Norway 100

BEWi Insulation Norway AS 986795 693 Norway 100

BEWI Norplasta AS 989 953 133 Norway 100

BEWI Norway AS 995 172 895 Norway 100

Jackon AS 913 019 334 Norway 100

Jackon Holding AS 989 087 177 Norway 100

Trondhjems Eskefabrikk AS 960 551 710 Norway 100

Izoblok S.A 00000388347 Poland 64.28

BEWI Circular Portugal, LDA 515767832 Portugal 66

Plastimar SA 508413770 Portugal 100

Aislamientos y Envases S.L B03173820 Spain 80

BEWI I&P Spain Holding S.L.U B72746423 Spain 100

Plasexpandido SL B36900157 Spain 100

BEWi Automotive AB 559102-5332 Sweden 100

BEWi Circular Sweden AB 556628-9178 Sweden 100

BEWi Dorotea AB 556669-9434 Sweden 100

156156

Subsidary Reg. no. Reg. office / country

Proportion of

shares held by

the parent (%)

BEWi Insulation AB 556541-7788 Sweden 100

BEWi Packaging AB 556961-3309 Sweden 100

Genevad Holding AB 556707-1948 Sweden 100

Jackon AB 556383-5742 Sweden 100

Norplasta AB 556649-7821 Sweden 100

Jackon Insulation Switzerland AG CH 400.3.034.347-2 Switzerland 100

Jablite Ltd 12644570 United Kingdom 100

Jackon Holding UK Ltd 1033313 United Kingdom 100

Jackon UK Ltd 8235666 United Kingdom 100

Synbra Holding UK Ltd 9502640 United Kingdom 100

Volker Gruppe Ltd NI627429 United Kingdom 51

Jablite Group Ltd 124641113 United Kingdom 100

Styropack Ltd 12644682 United Kingdom 100

Berga Circular Holding US Inc 6770534 USA 100

Berga Properties LLC Delaware USA 100

Berga Recycling USA Inc Delaware USA 100

Gates Holding USA Inc Delaware USA 100

Associates

Name Reg. no. Reg. office / country

Proportion of

shares held by

the parent (%)

Indirectly owned

BEWI EPS ehf 580121-1600 Iceland 49

E&D AB 556935-9291 Sweden 49.8

HIRSCH France SAS 92044 France 34

HIRSCH Porozell GmbH FN 117 2 55i Germany 34

Remondis Technology SP Zoo 0.34 Poland 34

Other shares and participations

Name Reg. no. Reg. office / country

Proportion of

shares held by

the parent (%)

Indirectly owned

Polystyrene Loop Cooperatief U.A. 68399812 Netherlands 13.8

Polystyvert Inc. N/A Canada 3.71

Note 08 Cash and bank balances

million NOK 31 Dec 2022 31 Dec 2021

Restricted cash 0.7 0.6

Other cash and bank balances 4.8 877.1

Total 5.5 877.7

Note 09 Share capital

For information regarding the share capital, see note 22 to the consolidated accounts.

157157

Note 10 Equity

Restricted equity Non-restricted equity

million NOK Share capital

Additional

paid-in capital

Accumulated

profit (incl net

profit/loss for

the year) Total

Balance carried forward as of 31 December 2020 148.4 2 815.7 3.3 2 967.4

New share issue 8.2 215.7 - 223.9

Dividend - -62.0 -3.3 -65.3

Net profit for the year - - 33.3 33.3

Balance carried forward as of 31 December 2021 156.6 2 969.5 33.3 3 159.3

New share issue 34.7 1 633.9 - 1 668.7

Dividend - -177.2 -33.3 -210.5

Net loss for the year - - -23.8 -23.8

Balance carried forward as of 31 December 2022 191.3 4 402.4 -23.8 4 593.7

Note 11 Receivables and liabilities

million NOK 31 Dec 2022 31 Dec 2021

Balance sheet assets

Financial assets measured at amortised cost

Non-current receivables from group companies 1 658.6 1573.3

Current receivables from group companies 558.1 160.4

Total 2 216.6 1733.7

Balance sheet liabilities

Financial liabilities measured at amortised cost

Bond loan 2 595.7 2454.5

Non-current liabilities to group companies 852.6 -

Current liabilities to group companies 320.3 71.8

Total 3 768.6 2526.3

The company has no liabilities with maturity over five years.

Bond loans

Frame Amount outstanding Date of issuance Maturity/redemtion date

EUR 250 million EUR 250 million 3 September 2021 3 September 2026

As of December 2022, BEWI ASA has one bond loan outstanding. The bond is unsecured and linked to a sustainablilty framwork,

matures on 3 September 2026, with the possibility for BEWI ASA to unilaterally decide on early redemption after 3 March 2025 of

50 per cent of the bond outstandning at that date. The main term for the bond outstanding during the year is presented in the

table below.

Bond loan Interest terms Nominal interest 2022 Average interest 2022

EUR 250 million Euribor 3 m + 3.15% 2.58-5.12% 3.66%

158158

Note 12 Related parties

Christian Bekken, CEO of BEWI ASA, is together with other members of the Bekken family a majority shareholder of the company

through BEWI Invest AS and Bekken Invest AS. More information on related party transactions is reported in note 31 to the

consolidated accounts. Information on remuneration of management and the board of directors is found in note 6 in the

consolidated accounts.

Note 13 Remuneration to auditors

million NOK 2022 2021

The audit assignment -1.3 -1.0

Audit activites other than the audit assignment -0.3 -0.6

Tax advice - -

Other services -7.2 -0.8

Total remuneration to auditors -8.7 -2.4

For 2021 and 2022 audit activities other than the audit assignment from PwC and other services mainly includes costs related to

the Jackon transaction.

159159

To the General Meeting of BEWI ASA

Independent Auditor’s report

Report on the Audit of

the Financial Statements

Opinion

We have audited the financial statements of BEWI

ASA, which comprise:

• the financial statements of the parent company

BEWI ASA (the Company), which comprise the

statement of financial position as at 31 December

2022, the income statement and cash flow

statement for the year then ended, and notes to

the financial statements, including a summary of

significant accounting policies, and

• the consolidated financial statements of BEWI

ASA and its subsidiaries (the Group), which

comprise the statement of financial position as at

31 December 2022, the comprehensive income

statement, statement of changes in equity and

cash flow statement for the year then ended,

and notes to the financial statements, including a

summary of significant accounting policies.

In our opinion:

• the financial statements comply with applicable

statutory requirements,

• the financial statements give a true and fair view

of the financial position of the Company as at

31 December 2022, and its financial performance

and its cash flows for the year then ended in

accordance with Norwegian Accounting Act and

accounting standards and practices generally

accepted in Norway, and

• the consolidated financial statements give a

true and fair view of the financial position of the

Group as at 31 December 2022, and its financial

performance and its cash flows for the year then

ended in accordance with International Financial

Reporting Standards as adopted by the EU.

Our opinion is consistent with our additional report

to the Audit Committee.

Basis for Opinion

We conducted our audit in accordance with

International Standards on Auditing (ISAs). Our

responsibilities under those standards are further

described in the Auditor’s Responsibilities for the

Audit of the Financial Statements section of our

report. We are independent of the Company and the

Group as required by relevant laws and regulations

in Norway and the International Ethics Standards

Board for Accountants’ International Code of Ethics

for Professional Accountants (including International

Independence Standards) (IESBA Code), and we have

fulfilled our other ethical responsibilities in accord-

ance with these requirements. We believe that the

audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

To the best of our knowledge and belief, no pro-

hibited non-audit services referred to in the Audit

Regulation (537/2014) Article 5.1 have been provided.

We have been the auditor of the Company for 3 years

from the election by the general meeting of the

shareholders on 29 July 2020 for the accounting year

2020.

Key Audit Matters

Key audit matters are those matters that, in our

professional judgment, were of most significance in

our audit of the financial statements of the current

period. These matters were addressed in the context

of our audit of the financial statements as a whole,

and in forming our opinion thereon, and we do not

provide a separate opinion on these matters.

The Group continues to acquire companies and

has acquired seven companies during 2022.

Consequently, Accounting for business combinations

is just as important for this year’s audit, as it was in

the previous year’s audit. The acquisitions regularly

lead to recognition of assets such as trademarks and

goodwill. Impairment testing of goodwill and intan-

gible assets with an indefinite useful life therefore

continue to represent an important area for our audit.

160160

Key Audit Matters How our audit addressed the Key Audit Matter

Impairment testing of goodwill and intangible assets with an indefinite useful life

Goodwill and trademark are significant assets in the Group’s balance sheet. The carrying amount of goodwill and

trademark amount to EUR 262.8 million and EUR 48.1 million respectively on December 31, 2022. No impairments

was recognised in 2022.

Impairment testing requires determination of recoverable amounts of goodwill and trademarks, which is depend-

ent on, among other, estimated future income. We focused on this area due to the significance of the amounts

involved and because the impairment test requires application of management judgement related to assumptions

such as projected future revenues and costs and discount rate used.

The Group’s principles and methods for valuation of goodwill and trademark are described in notes 2.4, 4.1 and

note 12 to the consolidated financial statements.

We obtained an understanding of management’s process related to valuation of goodwill and trademark.

We reviewed management’s documentation for impairment testing and considered whether the valuation model applied

by management contained the elements and methodology required by IFRS. We found the model to be reasonable and

in accordance with the requirements. We also assessed the logical structure and tested mathematical accuracy of the

model without finding material deviations.

We examined how management identified cash-generating units and compared this to how BEWI follows up goodwill

and trademark internally. Further we evaluated the reasonableness of the assumptions applied and management’s analysis

related to changes in significant parameters, which could lead to a need for impairment.

We challenged management’s use of assumptions related to projected future revenue and costs by comparing these

against historic results and approved budgets. We found that the assumptions were aligned with historic results and

approved budgets. We also found that the applied growth assumptions were reasonable. Additionally, we assessed

management’s forecasting abilities by comparing prior year budgets and forecasts to actual results, and found no material

deviations.

The discount rate used was compared to empirical data and expectations about the future return, relevant risk premium

and gearing ratio. We found that the used discount rate was reasonable.

We also considered whether the information provided in notes 2.4, 4.1 and 12 to the consolidated financial statements met

the IFRS requirements according to IAS1.

161161

Key Audit Matters How our audit addressed the Key Audit Matter

Accounting for business acquisitions

The Group’s principles and methods for accounting for business acquisitions are described in notes 2.2, 2.4, and

note 14 to the consolidated financial statements.

During the past year, BEWI has made seven business acquisitions, of which the acquisition of the Norwegian fami-

ly-owned company Jackon Holding, the Baltic company UAB Baltijos Polistirenas (“Balpol”) and the remaining 51%

acquisition of Jablite Group Ltd, becoming 100% owner of the company, were the most significant ones.

For each business acquisition, management prepared a purchase price allocation (PPA) analysis in which the dif-

ference between the net assets in the acquired company and the purchase price was allocated to identified assets

from the acquired company. Trademarks and property, plant and equipment were among the identified assets. The

residual was allocated to goodwill.

To determine the fair value of the identified intangible assets, management used judgement and performed

calculations based on expectations about the acquired companies’ future development. The distribution of values

in the PPA may have a significant impact on the financial statements.

We obtained and reviewed the PPAs and obtained an understanding of how management identified assets to which

the purchase price was allocated, including management’s calculation of the related goodwill.

We obtained and examined the acquisition agreements, evaluated the terms of the agreements, and had extensive

discussions with management. We tested the agreed cash considerations against bank receipts.

To challenge management’s judgment, we examined the acquisition analyses with emphasis on methods and assump-

tions used for identifying and valuing intangible assets such as trademark. We traced the information in the PPAs to the

acquired entities’ financial statements. We tested the mathematical accuracy of the calculations and challenged man-

agement’s allocations based on our expectations from the underlying business drivers in the acquired entities. Based

on our audit procedures we found the methods and assumptions to be reasonable.

We also considered if the relevant notes 2.2, 2.4 and note 14 gave proper relevant information and found the informa-

tion and explanations provided to be sufficient.

162162

Other Information

The Board of Directors and the Managing Director

(management) are responsible for the information

in the Board of Directors’ report and the other

information accompanying the financial statements.

The other information comprises information in the

annual report, but does not include the financial

statements and our auditor’s report thereon. Our

opinion on the financial statements does not cover

the information in the Board of Directors’ report nor

the other information accompanying the financial

statements.

In connection with our audit of the financial state-

ments, our responsibility is to read the Board of

Directors’ report and the other information accom-

panying the financial statements. The purpose is to

consider if there is material inconsistency between

the Board of Directors’ report and the other informa-

tion accompanying the financial statements and the

financial statements or our knowledge obtained in

the audit, or whether the Board of Directors’ report

and the other information accompanying the finan-

cial statements otherwise appear to be materially

misstated. We are required to report if there is a mate-

rial misstatement in the Board of Directors’ report or

the other information accompanying the financial

statements. We have nothing to report in this regard.

Based on our knowledge obtained in the audit, it is

our opinion that the Board of Directors’ report

• is consistent with the financial statements and

• contains the information required by applicable

statutory requirements.

Our opinion on the Board of Director’s report applies

correspondingly to the statements on Corporate

Governance and Corporate Social Responsibility.

Responsibilities of Management for

the Financial Statements

Management is responsible for the preparation of

financial statements that give a true and fair view

in accordance with the Norwegian Accounting Act

and accounting standards and practices generally

accepted in Norway, and for the preparation and true

and fair view of the consolidated financial statements

of the Group in accordance with International Financial

Reporting Standards as adopted by the EU, and for

such internal control as management determines

is necessary to enable the preparation of financial

statements that are free from material misstatement,

whether due to fraud or error.

In preparing the financial statements, management

is responsible for assessing the Company’s and the

Group’s ability to continue as a going concern, disclos-

ing, as applicable, matters related to going concern.

The financial statements of the Company use the

going concern basis of accounting insofar as it is not

likely that the enterprise will cease operations. The

consolidated financial statements of the Group use the

going concern basis of accounting unless manage-

ment either intends to liquidate the Group or to cease

operations, or has no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit

of the Financial Statements

Our objectives are to obtain reasonable assurance

about whether the financial statements as a whole

are free from material misstatement, whether due

to fraud or error, and to issue an auditor’s report

that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that

an audit conducted in accordance with ISAs will

always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are

considered material if, individually or in aggregate,

they could reasonably be expected to influence the

economic decisions of users taken on the basis of

these financial statements.

As part of an audit in accordance with ISAs, we exer-

cise professional judgment and maintain professional

scepticism throughout the audit. We also:

• identify and assess the risks of material misstate-

ment of the financial statements, whether due

to fraud or error. We design and perform audit

procedures responsive to those risks, and obtain

audit evidence that is sufficient and appropriate

to provide a basis for our opinion. The risk of not

detecting a material misstatement resulting from

fraud is higher than for one resulting from error,

as fraud may involve collusion, forgery, intentional

omissions, misrepresentations, or the override of

internal control.

• obtain an understanding of internal control

relevant to the audit in order to design audit pro-

cedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion

on the effectiveness of the Company’s and the

Group’s internal control.

• evaluate the appropriateness of accounting pol-

icies used and the reasonableness of accounting

estimates and related disclosures made by man-

agement.

• conclude on the appropriateness of management’s

use of the going concern basis of accounting and,

based on the audit evidence obtained, whether

a material uncertainty exists related to events or

conditions that may cast significant doubt on the

Company’s and the Group’s ability to continue as

a going concern. If we conclude that a material

uncertainty exists, we are required to draw

attention in our auditor’s report to the related

disclosures in the financial statements or, if such

disclosures are inadequate, to modify our opinion.

Our conclusions are based on the audit evidence

obtained up to the date of our auditor’s report.

However, future events or conditions may cause

163163

the Company and the Group to cease to continue

as a going concern.

• evaluate the overall presentation, structure and

content of the financial statements, including the

disclosures, and whether the financial statements

represent the underlying transactions and events

in a manner that achieves a true and fair view.

• obtain sufficient appropriate audit evidence

regarding the financial information of the enti-

ties or business activities within the Group to

express an opinion on the consolidated financial

statements. We are responsible for the direction,

supervision and performance of the group audit.

We remain solely responsible for our audit opinion.

We communicate with the Board of Directors regard-

ing, among other matters, the planned scope and

timing of the audit and significant audit findings,

including any significant deficiencies in internal

control that we identify during our audit.

We also provide the Audit Committee with a state-

ment that we have complied with relevant ethical

requirements regarding independence, and to

communicate with them all relationships and other

matters that may reasonably be thought to bear on

our independence, and where applicable, related

safeguards.

From the matters communicated with the Board

of Directors, we determine those matters that were

of most significance in the audit of the financial

statements of the current period and are therefore

the key audit matters. We describe these matters

in our auditor’s report unless law or regulation

precludes public disclosure about the matter or

when, in extremely rare circumstances, we determine

that a matter should not be communicated in our

report because the adverse consequences of doing

so would reasonably be expected to outweigh the

public interest benefits of such communication.

Report on Other Legal and Regulatory

Requirements

Report on Compliance with Requirement on

European Single Electronic Format (ESEF)

Opinion

As part of the audit of the financial statements of

BEWI ASA, we have performed an assurance engage-

ment to obtain reasonable assurance about whether

the financial statements included in the annual

report, with the file name BEWI-2022-12-31-en.zip,

have been prepared, in all material respects, in com-

pliance with the requirements of the Commission

Delegated Regulation (EU) 2019/815 on the European

Single Electronic Format (ESEF Regulation) and

regulation pursuant to Section 5-5 of the Norwegian

Securities Trading Act, which includes requirements

related to the preparation of the annual report in

XHTML format, and iXBRL tagging of the consoli-

dated financial statements.

In our opinion, the financial statements, included in

the annual report, have been prepared, in all material

respects, in compliance with the ESEF regulation.

Management’s Responsibilities

Management is responsible for the preparation of the

annual report in compliance with the ESEF regulation.

This responsibility comprises an adequate process

and such internal control as management determines

is necessary.

Auditor’s Responsibilities

For a description of the auditor’s responsibilities

when performing an assurance engagement of the

ESEF reporting, see: https://revisorforeningen.no/

revisjonsberetninger

Trondheim, 24 April 2023

PricewaterhouseCoopers AS

Kjetil Smørdal

State Authorised Public Accountant

(This document is signed electronically)

164164

Reconciliation alternative performance measures

Alternative performance measures not defined by IFRS

million EUR 2022 2021

Operating income (EBIT) 68.0 67.8

Amortisations 9.7 7.6

EBITA 77.7 75.4

Items affecting comparability 18.3 3.4

Adjusted EBITA 96.1 78.8

EBITA 77.7 75.4

Depreciations 37.5 30.1

EBITDA 115.2 105.5

Items affecting comparability 18.3 3.4

Adjusted EBITDA 133.6 109.0

Adjusted EBITA Rolling 12 months 96.1 78.8

Average capital employed 629.1 409.6

Return on average capital employed (ROCE) 15.3% 19.2%

Items affecting comparability

million EUR 2022 2021

Severance, integration and restructuring costs -1.6 -0.9

Transaction costs -9.2 -4.4

Capital gains/losses from sale of fixed assets 2.3 0.0

Capital gain/losses from sale of subsidiary -3.3 1.0

Capital gain from sale of associated company 10.7 -

Recognition of negative goodwill in associate - 0.9

Settlement agreement – European Commission -17.2 -

Total -18.3 -3.4

165165

Revenue bridge: Change in net sales from corresponding periods in 2021

million EUR RAW % Insulation % P&C % Circular % Unallocated %

Intra-group

revenue Total net sales %

2021 347.9 195.4 295.6 24.0 0.1 -114.9 748.2

Acquisitions 12.5 3.6% 108.3 55.4% 62.2 21.0% 28.3 118.0% - - -10.6 200.7 26.8%

Of which Jackon 12.5 3.6% 38.6 19.7% 10.0 3.4% 0.0 0.0% 0.0 0.0% -7.1 53.9 7.2%

Other 0.0 0.0% 69.8 35.7% 52.1 17.6% 28.3 118.0% 0.0 0.0% -3.5 146.7 19.6%

Divestments - - -18.1 -9.2% - - - - - - - -18.1 -2.4%

Currency - - -1.0 -0.5% -0.2 -0.1% -0.5 -2.1% 0.0 -10.3% -1.7 -3.5 -0.5%

Organic growth 57.6 16.6% 49.2 25.2% 34.4 11.6% 11.3 46.9% 0.2 208.2% -29.6 123.1 16.5%

Total increase/ decrease 70.1 20.1% 138.5 70.8% 96.3 32.6% 39.1 162.7% 0.2 197.9% -41.9 302.2 40.4%

2022 418.0 333.9 391.9 63.1 0.3 -156.8 1 050.4

EBITDA bridge: Change in adjusted EBITDA from corresponding periods in 2021

million EUR RAW % Insulation % P&C % Circular % Unallocated %

Total adjusted

EBITDA %

2021 54.1 21.6 40.3 0.6 -7.6 109.0

Acquisitions 1.2 2.2% 4.4 20.3% 4.9 12.1% 3.6 610.9% -0.1 1.8% 13.9 12.8%

Of which Jackon 1.2 2.2% -0.9 -4.1% 1.4 3.4% 0.0 0.0% -0.1 1.8% 1.5 1.4%

Other 0.0 0.0% 5.3 24.4% 3.5 8.7% 3.6 610.9% 0.0 0.0% 12.4 11.4%

Divestments - - -1.4 -6.5% - - - - - - -1.4 -1.3%

Currency - - 0.2 0.9% 0.1 0.3% 0.1 11.1% 0.0 0.0% 0.4 0.4%

Organic growth 1.8 3.3% 6.4 29.5% 3.1 7.6% -1.8 -304.5% 2.3 -30.1% 11.7 10.7%

Total increase/ decrease 3.0 5.5% 9.5 44.3% 8.1 20.0% 1.9 317.4% 2.1 -28.3% 24.6 22.6%

2022 57.0 31.1 48.3 2.5 -5.4 133.6

166166

Definitions of alternative performance measures not defined by IFRS

Organic growth Organic growth is defined as growth in net sales for the reporting period compared to the same

period last year, excluding the impact of currency and acquisitions. It is a key ratio as it shows the

underlying sales growth.

EBITDA Earnings before interest, tax, depreciation, and amortisation. EBITDA is a key performance indicator

that the group considers relevant for understanding the generation of profit before investments in

fixed assets.

EBITDA margin EBITDA as a percentage of net sales. The EBITDA margin is a key performance indicator that the

group considers relevant for understanding the profitability of the business and for making

comparisons with other companies.

EBITA Earnings before interest, tax, and amortisations. EBITA is a key performance indicator that the

group considers relevant, as it facilitates comparisons of profitability over time independent of

corporate tax rates and financing structures but including depreciations of fixed assets used in

production to generate the profits of the group.

EBITA margin EBITA as a percentage of sales. The EBITA margin is a key performance indicator that the group

considers relevant for understanding the profitability of the business and for making comparisons

with other companies.

EBIT Earnings before interest and tax. EBIT is a key performance indicator that the group considers

relevant, as it facilitates comparisons of profitability over time independent of corporate tax rates

and financing structures. Depreciations are included, however, which is a measure of resource

consumption necessary for generating the result.

Items affecting

comparability

Items affecting comparability include costs related to the planned IPO, transaction costs related

to acquired entities, including the release of negative goodwill from acquisitions, severance costs

and other normalisations such as divestment of real estate, closing of facilities, unscheduled raw

material production stops and other.

Adjusted (adj.)

EBITDA

Normalised earnings before interest, tax, depreciation, and amortisation (i.e., items affecting com-

parability and deviations are added back). Adjusted EBITDA is a key performance indicator that the

group considers relevant for understanding earnings adjusted for items that affect comparability.

Adjusted (adj.)

EBITDA margin

EBITDA before items affecting comparability as a percentage of net sales. The adjusted EBITDA

margin is a key performance indicator that the group considers relevant for understanding the

profitability of the business and for making comparisons with other companies.

Adjusted (adj.)

EBITA

Normalised earnings before interest, tax and amortisations (i.e., items affecting comparability and

deviations are added back). EBITA is a key performance indicator that the group considers relevant,

as it facilitates comparisons of profitability over time independent of corporate tax rates and

financing structures but including depreciations of fixed assets used in production to generate the

profits of the group.

Adjusted (adj.)

EBITA margin

EBITA before items affecting comparability as a percentage of sales. The EBITA margin is a key

performance indicator that the group considers relevant for understanding the profitability of the

business and for making comparisons with other companies.

ROCE Return on average capital employed. ROCE is a key performance indicator that the group considers

relevant for measuring how well the group is generating profits from its capital in use. ROCE is

calculated as rolling 12 months adjusted EBITA as a percentage of average capital employed during

the same period. Capital employed is defined as total equity plus net debt, and the average is

calculated with each quarter during the measurement period as a measuring point.

Net debt Interest-bearing liabilities excluding obligations relating to employee benefits, minus cash and

cash equivalents. Net debt is a key performance indicator that is relevant both for the group’s

calculation of covenants based on this indicator and because it indicates the group’s financing

needs.

167167

Appendix

168168

Appendix 1 GRI index

Statement of use BEWI ASA has reported the information cited in this GRI content index in referamce to the GRI Standards for the period 01.01.2022 to 31.12.2022.

GRI 1 used GRI 1: Foundation 2021

GRI standard Disclosure Page

GRI 2: General Disclosures 2021 2-1 Organizational details 17, 72, 83, 102

2-2 Entities included in the organization’s sustainability reporting

30, 102

2-3 Reporting period, frequency and contact point

30, 102, 192

2-4 Restatements of information

191

2-5 External assurance

79, 160

2-6 Activities, value chain and other business relationships

14-29, 74, 83

2-7 Employees

3, 91, 185-186

2-8 Workers who are not employees

186

2-9 Governance structure and composition

35-36, 73

2-10 Nomination and selection of the highest governance body

73, 76-78

2-11 Chair of the highest governance body

69, 76-77

2-12 Role of the highest governance body in overseeing the management of impacts

35-36

2-13 Delegation of responsibility for managing impacts

35-36

2-14 Role of the highest governance body in sustainability reporting

35-36

2-15 Conflicts of interest

75-77

2-16 Communication of critical concerns

35-36, 61-62

2-17 Collective knowledge of the highest governance body -

2-18 Evaluation of the performance of the highest governance body

76-77

2-19 Remuneration policies

78, 80-81

169169

GRI standard Disclosure Page

GRI 2: General Disclosures 2021 2-20 Process to determine remuneration 76-80

2-21 Annual total compensation ratio

186

2-22 Statement on sustainable development strategy

7- 8, 11-13, 17

2-23 Policy commitments

35-36, 55, 61

2-24 Embedding policy commitments

35-36

2-25 Processes to remediate negative impacts

35-36, 55-56, 61-62

2-26 Mechanisms for seeking advice and raising concerns

35-36, 55, 61, 68

2-27 Compliance with laws and regulations

35-36, 72,74

2-28 Membership associations

2-29 Approach to stakeholder engagement

33-34

2-30 Collective bargaining agreements

187

Material topics

GRI 3: Material Topics 2021 3-1 Process to determine material topics 32-34

3-2 List of material topics

Anti-corruption

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption

55-56, 68

205-2 Communication and training about anti-corruption policies and procedures

61- 62, 188

205-3 Confirmed incidents of corruption and actions taken

61- 62, 188

170170

GRI standard Disclosure Page

Anti-competitive behavior

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 206: Anti-competitive Behavior 2016 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

61-62

Materials

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 301: Materials 2016 301-1 Materials used by weight or volume

44-46, 183-184

301-2 Recycled input materials used

44-46, 183

301-3 Reclaimed products and their packaging materials

44-46, 184

Energy

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 302: Energy 2016 302-1 Energy consumption within the organization

39-40, 182

302-2 Energy consumption outside of the organization

39-40, 182

302-3 Energy intensity

183

302-4 Reduction of energy consumption

182-183

302-5 Reductions in energy requirements of products and services -

171171

GRI standard Disclosure Page

Biodiversity

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 304: Biodiversity 2016 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside

protected areas

47-48

304-2 Significant impacts of activities, products and services on biodiversity

47-48

304-3 Habitats protected or restored -

304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations -

Emissions

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions

38-39, 182-183

305-2 Energy indirect (Scope 2) GHG emissions

38-39, 182-183

305-3 Other indirect (Scope 3) GHG emissions

38-39, 182-183

305-4 GHG emissions intensity

183

305-5 Reduction of GHG emissions

39, 182-183

305-6 Emissions of ozone-depleting substances (ODS) -

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions -

Waste

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 306: Waste 2020 306-1 Waste generation and significant waste-related impacts

45-46, 183

306-2 Management of significant waste-related impacts

306-3 Waste generated

46, 183

306-4 Waste diverted from disposal

46, 183

306-5 Waste directed to disposal

46, 183

172172

GRI standard Disclosure Page

Supplier environmental assessment

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 308: Supplier Environmental Assessment 2016 308-1 New suppliers that were screened using environmental criteria

54-56, 187

308-2 Negative environmental impacts in the supply chain and actions taken

54-56, 187

Employment

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 401: Employment 2016 401-1 New employee hires and employee turnover

185

401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees -

401-3 Parental leave

183

Occupational health and safety

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 403: Occupational Health and Safety 2018 403-1 Occupational health and safety management system

50-51

403-2 Hazard identification, risk assessment, and incident investigation

50-51

403-3 Occupational health services

50-51

403-4 Worker participation, consultation, and communication on occupational health and safety

50-51

403-5 Worker training on occupational health and safety

50-51

403-6 Promotion of worker health

50-51

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

50-51

403-8 Workers covered by an occupational health and safety management system

50-51

403-9 Work-related injuries

50-51, 185

403-10 Work-related ill health

50-52

173173

GRI standard Disclosure Page

24-25

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 404: Training and Education 2016 404-1 Average hours of training per year per employee

52-53

404-2 Programs for upgrading employee skills and transition assistance programs

52-53

404-3 Percentage of employees receiving regular performance and career development reviews

52-53

Diversity and equal opportunity

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees

52-53, 91, 185

405-2 Ratio of basic salary and remuneration of women to men

80-81

Freedom of association and collective bargaining

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 407: Freedom of Association and Collective

Bargaining 2016

407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

54-56

Child labor

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 408: Child Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor

54-56

174174

GRI standard Disclosure Page

Forced or compulsory labor

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 409: Forced or Compulsory Labor 2016 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

54-56

Local communities

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 413: Local communities 2016 413-1 The reporting organization shall report how it manages local communities using disclosure 3-3 in GRI 3: Material Topics 2021

57-59

413-2 Operations with significant actual and potential negative impacts on local communities

48, 184

Supplier social assessment

GRI 3: Material Topics 2021 3-3 Management of material topics 35-36

GRI 414: Supplier Social Assessment 2016 414-1 New suppliers that were screened using social criteria

54-56, 187

414-2 Negative social impacts in the supply chain and actions taken

54-56, 187

175175

Appendix 2 Transparency act index

The Act shall promote enterprises’ respect for fundamental human rights and decent working conditions in

connection with the production of goods and the provision of services and ensure the general public access to

information regarding how enterprises address adverse impacts on fundamental human rights and decent

working conditions.

Disclosure description Page

a) General description of the company's organization, operating area, guidelines and routines for handling

actual and potential negative consequences for basic human rights and decent working conditions.

p. 14-28, 32-36,

54-56, 68, 83-84

b) Information about actual negative consequences and significant risk of negative consequences that the

business has uncovered through its due diligence assessments

p. 54-56

c) Information about measures that the business has implemented or plans to implement to stop actual

negative consequences or limit significant risk of negative consequences, and the result or expected

results of these measures.

p. 54-56

Public account of due diligence assessment according to the Norwegian Transparency Act will be found on BEWI`s

webpage.

176176

Appendix 3 TCFD summary and index

Theme Recommended disclosures BEWI summary Page

Governance

a) Describe the board’s oversight of climate-related risks and opportunities. The board of directors is the hightest authority to oversee the integrity of the work with climate risks and opportunities. The board of

directors is responsible for ensuring that BEWI has internal control and systems for risk management that are appropriate in relation

to the extent and nature of the company’s activities. The board shall annually review the company’s most important areas of risk

exposure and the internal control of risks identified.

p. 35-36,

77-78

b) Describe management’s role in assessing and managing climate related risks and

opportunities.

The executive management team is responsible for ensuring the integration of managing climate-related risks and opportunities

in the organisation. Their responsibilities include taking a proactive role in understanding climate related risks and opportunities,

reviewing and monitoring the assessment of the work done from the operational management team (CFO, CTO. CSO, CPO, CRO, RA).

p. 35-36

Strategy

a) Describe the climate-related risks and opportunities the organization has identified over

the short, medium, and long term.

BEWI will finalise the assessment of risks and opportunities over the short, medium and long term in 2023.

p. 38, 42,

44, 47

b) Describe the impact of climate-related risks and opportunities on the organization’s

businesses, strategy, and financial planning.

The final assessment of risks and opportunities together with the financial disclosure of the scenario assessment will inform the

strategy and financial planning going forward.

p. 42-43

c) Describe the resilience of the organization’s strategy, taking into consideration different

climate-related scenarios, including a 2°C or lower scenario.

In 2022, BEWI conducted a scenario assessment in line with the TCFD recommendations. The company will finalise the work with

financial disclosures for the risks and opportunities identified in 2023, that will inform the organisations strategy and financial planning

going forward.

p. 42-43

Risk

management

a) Describe the organization’s processes for identifying and assessing climate related risks. BEWI is in the process of integrating climate risk into the company’s risk management system. The work will be finalized in 2023.

p. 35-36,

42-43,

77-78, 90

b) Describe the organization’s processes for managing climate related risks.

c) Describe how processes for identifying, assessing, and managing climate related risks are

integrated into the organization’s overall risk management.

The outcome of identified climate-related risks and opportunities will be a risk matrix showing all key risks defining potential impacts.

The matrix will be presented to the executive management team by the Chief Risk Officer (CRO) and to the board of directors annualy

where new risks, detoriation or existing risks are presented.

p. 77-78

Metrics and

targets

a) Disclose the metrics used by the organization to assess climate related risks and

opportunities in line with its strategy and risk management process.

Metrics used by BEWI to assess climate related risk and opportunities are GHG emissions for scope 1, scope 2 and scope 3 and GHG

intensity (revenue and raw material consumption). The company is in the process to implement metrics regarding financial impact

(amount and per centage) of identified transition and physical risks and climate related opportunities, amount and share of CAPEX

deployed towards climate related risks and opportunities.

p. 38-40

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,

and the related risks.

BEWI reports its Greenhouse gas emissions in accordance with the Greenhouse Gas (GHG) protocol including scope 1, scope 2 and

relevant scope 3 greenhouse gas emissions.

p. 38-40

c) Describe the targets used by the organization to manage climaterelated risks and

opportunities and performance against targets.

BEWI is in the process of developing a climate reduction plan in line with the SBTi standard including scope 1, scope 2 and scope 3.

p. 40, 43,

46, 48

177177

Appendix 4 Taxonomy revenue

Economic activities Codes

Absolute

turnover

Proportion of

turnover

A. Taxonomy-eligible activities

Manufacture of energy efficiency equipment for buildings (RAW) 3.5. 177 275 19%

Manufacture of energy efficiency equipment for buildings 3.5. 230 397 25%

Collection and transport of non-hazardous waste in source segregated fractions 5.5. 31 883 3%

Material recovery from non-hazardous waste 5.9. 16 833 2%

Turnover of Taxonomy-eligible activities 456 388 49%

B. Non-eligible activities

Turnover of non-eligible activities 472 907 51%

Total (A+B) 929 295 100%

178178

Appendix 5 Taxonomy CAPEX

Economic activities Codes

Absolute

CAPEX

Proportion of

CAPEX

A. Taxonomy-eligible activities

Manufacture of energy efficiency equipment for buildings (RAW) 3.5. 4 574 12%

Manufacture of energy efficiency equipment for buildings 3.5. 4 658 12%

Collection and transport of non-hazardous waste in source segregated fractions 5.5. 2 000 5%

Material recovery from non-hazardous waste 5.9. 75 0%

CAPEX of Taxonomy-eligible activities 11 307 29%

B. Non-eligible activities

CAPEX of non-eligible activities 28 032 71%

Total (A+B) 39 339 100%

179179

Appendix 6 Taxonomy accounting policies

BEWI’s taxonomy-eligible share of revenue in 2022

was 49%, which is similar to what was reported in

2021. BEWI’s taxonomy eligible share of CAPEX was

29% and is related to the company’s investment

towards the production of energy efficiency equip-

ment for buildings (20%) and BEWI circular (5.3%).

Accounting policies

BEWI has applied the climate change mitigation

technical screening criteria when assessing its

economic activities. Taxonomy- eligible activities

identified were:

• 3.5 Manufacture of energy efficiency equipment

for buildings.

• 5.5 Collection and transport of non-hazardous

waste in source segregated fractions.

• 5.9 Material recovery from non-hazardous waste.

BEWI’s process for determining taxonomy-eligible

activities has followed a three-step approach:

• Assessing whether identified activities are covered

by the economic activity descriptions included in

the EU Taxonomy Climate Delegated Act.

• Ensuring that identified activities comply with

technical screening criteria for the identified

activity.

• Allocating revenue, and CAPEX according to the

company’s overall assessment.

The taxonomy-eligible activities have been calcu-

lated as:

• Taxonomy-eligible revenue activities = eligible

revenue/total revenue

• Taxonomy-eligible Capex = eligible Capex/total

Capex

180180

Appendix 7 Sustainability strategy progress

Strategic pillars Strategic goal Our Key Performance Indicatiors Baseline 2020 Status 2021 Status 2022 Target 2030

Becoming

circular

To be lean

% - renewable raw materials 4% 11% 12% 50%

% - renewable energy sources 17% 19% 21% 50%

% - renewable transportation 3% 6% 6% 50%

% - production facilities ISO 14001 certified 47% 50% 60% 100%

To keep

% - recycable products 95% 99% 99% 100%

% - rawmaterial consumption going to products for reuse 1% 1% 2% 10%

To close

% - cut-off waste from production 2% 2% 2% 0%

% - waste sorted out for material recycling 35% 61% 68% 80%

% - collected materials 18% 33% 54% 100%

Actively

engage in

partnership

Enhance policies and industry standards for circular solutions

% - membership in industry association 100% 100% 100% 100%

Team up to create joint value

% - suppliers meeting environmental requirements* - - 65% 100%

Increase knowledge and innovation to enable circularity and an inclusive society

No. - project supported 0 1 1 1

Contribute

to inclusive

societies

Be a responsible employer

% - employees with a development plan 40% 44% 61% 100%

No. - accidents 40 26 54 0

Be a responsible partner

% - suppliers meeting human and labour rights requirements

- - 65% 100%

No. - concerns of corruption or misconduct rised 0 0 2 0

Be a responsible neighbour

% - production facilities with community engagement 45% 61% 74% 100%

No. - deviation to environmental management systems 6 19 31 0

Per centage of procurement spend from suppliers above 50 000 EUR

181181

Appendix 8 ESG progress

Environmental progress

Unit 2020 2020 M&A 2020 total 2021 2021 M&A 2021 total 2022 Change 2021-2022

Energy consumption

Renewable (direct) fuel consumption 1,000 kWh 1 056 0 1 056 1 248 0 1 248 1 366 +9%



Non-renewable (direct) fuel consumption 1,000 kWh 264 108 112 815 376 924 292 109 107 562 399 671 379 741 -5% 

Electricity consumption 1,000 kWh 82 305 15 385 97 689 96 069 15 478 111 546 109 091 -2% 

Heating consumption 1,000 kWh 18 279 0 18 279 18 635 0 18 635 18 890 +1% 

Steam consumption 1,000 kWh 31 042 0 31 042 33 360 0 33 360 30 334 -9% 

Renewable energy consumption (direct+indirect) 1,000 kWh 86 126 5 262 91 388 105 431 4 252 109 683 111 490 +2% 

Share of renewable energy consumption (direct+indirect) % 22% 4% 17% 24% 3% 19% 21% +6% 

Total energy consumption 1,000 kWh 396 790 128 200 524 990 441 891 123 039 564 931 539 422 -5% 

Total energy consumption TJ 1 428 462 1 890 1 591 443 2 034 1 942 -5% 

Greenhouse Gas Emissions

Scope 1 Tonnes CO

eq. 27 238 10 474 37 712 30 848 8 603 39 452 43 995 +12% 

Scope 2 - Location-based Tonnes CO

eq. 42 251 8 859 51 109 49 026 9 445 58 470 45 774 -22% 

Scope 2 - Market-based Tonnes CO

eq. 18 540 8 859 27 398 20 563 9 445 30 007 23 652 -21% 

Scope 3 - total Tonnes CO

eq. 596 603 9 452 606 055 620 681 15 920 636 600 642 463 +1% 

Category 1 - Purchased goods and services Tonnes CO

eq. 595 802 9 466 605 268 589 615 9 008 598 623 608 799 +2% 

Category 2 - Capital Goods Tonnes CO

eq. - - - - - - - -

Category 3 - Fuel- and energy-related activities Tonnes CO

eq. 0 0 0 0 0 0 0 0

Category 4 and 9 - Upstream- and Downstream transportation and distribution Tonnes CO

eq. - - - 25 466 6 567 32 033 32 041 +0% –

Category 5 - Waste generated in operations Tonnes CO

eq. - - - 4 631 325 4 955 341 -93% 

Category 6 - Business travel Tonnes CO

eq. 37 12 49 97 20 117 324 +178% 

Category 7 - Employee commuting Tonnes CO

eq. - - 763 - - 872 959 +10% 

Category 8 - Upstream leased assets Tonnes CO

eq. 0 0 0 0 0 0 0 0

Category 10 - Processing of sold products Tonnes CO

eq. - - - - - - - -

Category 11 - Use of sold products Tonnes CO

eq. 0 0 0 0 0 0 0 0

182182

Unit 2020 2020 M&A 2020 total 2021 2021 M&A 2021 total 2022 Change 2021-2022

Category 12 - End-of-life treatment of sold products Tonnes CO

eq. - - - - - - - -

Category 13 - Downstream leased assets Tonnes CO

eq. 0 0 0 0 0 0 0 0

Category 14 - Franchises Tonnes CO

eq. 0 0 0 0 0 0 0 0

Category 15 - Investments Tonnes CO

eq. 0 0 0 0 0 0 0 0

Total GHG emissions (scope 1, 2, and 3) Location-based Tonnes CO

eq. 667 958 28 811 696 768 702 756 33 968 736 723 732 233 -1% 

Total GHG emissions (scope 1, 2, and 3) Market-based Tonnes CO

eq. 644 246 28 811 673 057 674 293 33 968 708 260 710 111 +0% 

Climate accounting KPIs

Energy intensity ratio MJ/kg raw material 4.59 109.13 6.01 4.75 111.81 6.03 6.96 +16%



GHG emissions intensity ratio kg CO

/kg raw material 2.08 6.82 2.16 2.04 8.84 2.13 2.60 +23% 

Materials

Renewable materials Tonnes material 39 784 316 40 100 30 809 331 31 140 34 484 +11%



Non-renewable materials Tonnes material 313 982 4 248 318 230 332 442 3 992 336 434 274 229 -18% 

Share renewable materials % 11% 7% 11% 8% 8% 7% 11% +55% 

Recycled materials Tonnes material 32 452 12 32 464 5 588 26 5 613 3 851 -31% 

Non-recycled materials Tonnes material 274 978 4 214 279 193 317 521 3 933 321 454 269 337 -16% 

Share recycled materials % 11% 0% 10% 2% 1% 2% 4% +109% 

Water consumption 1,000 Liter 765 350 77 556 842 907 672 266 101 026 773 293 890 502 +15% 

Waste

Waste sorted for recycling Tonnes waste - - - 12 065 - 12 065 11 556 -4%



Waste sorted for reuse Tonnes waste - - - 0 - 0 102

Waste sorted for incineration Tonnes waste - - - 6 051 - 6 051 5 054 -16%



Waste sorted for landfill Tonnes waste - - - 1 266 - 1 266 279 -78% 

Production cut-off waste recycled Tonnes waste - - - 8 625 4 8 629 8 044 -7% 

Production cut-off waste sent for incineration Tonnes waste - - - 1 530 199 1 729 1 088 -37% 

Share internal recycling production cut-offs % - - - 85% 2% 83% 88% +6% 

Total waste generated Tonnes waste - - - 19 382 527 19 909 16 990 -15% 

183183

Unit 2020 2020 M&A 2020 total 2021 2021 M&A 2021 total 2022 Change 2021-2022

Collected materials

Expanded PolyPropylene (EPP) Tonnes material - - - 5 111 116 247 +113%



Expanded PolyStyrene (EPS) Tonnes material - - - 18 868 18 904 37 772 32 629 -14% 

PolyPropylene (PP) Tonnes material - - - 0 1 935 1 935 4 518 +133% 

PolyEthylene (PE) Tonnes material - - - 106 0 106 12 995 +12206% 

Plastics (other) Tonnes material - - - 1 054 14 755 15 808 16 914 +7% 

Cardboard/paper Tonnes material - - - 2 692 52 032 54 725 51 032 -7% 

Total collected materials Tonnes material 10 975 75 150 86 125 19 729 96 026 115 755 117 857 +2% 

Biodiversity and Ecosystems

Environmental deviations Number of environmental deviations 6 - 6 19 - 19 31 +63%



ISO 14001 Certification Number of sites ISO 140001 certified 19 19 19 2 21 27 +158% 

Operation Clean Sweep (OCS) - implemented Number of sites with fully implemented OCS 0 0 0 0 0 0 7

Operation Clean Sweep (OCS) - in progress Number of sites started implementation of OCS 0 0 0 9 9 21 +133%



Production facilities with very high local climate risk <1 km from protected nature area - - - - - - 10

Production facilities with high local climate risk >1 km & <2.5 km from protected nature area - - - - - - 6

Production facilities with medium local climate risk > 2.5km & <5 km from protected nature area - - - - - - 12

Production facilities with low local climate risk > 5km from protected nature area - - - - - - 20

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Social progress

Unit 2020 2021 2022

Health and Safety

Total no of accidents Number 41 26 54

Frequency rate Number 0.0001 0.0001 0.0001

Severity rate Number 0.0011 0.0006 0.001

No of working days lost Number 359 311 536

Employees - - -

Headcount women Number - 510 542

Headcount men Number - 1296 1526

FTE women Number 346 433 461.4

FTE men Number 1086 1152 1445.1

Diversity of governance bodies and employees (headcount)

Female under 30 years Number - - 84

Female 30 to 50 years Number - - 264

Female over 50 years Number - - 195

Male under 30 years Number - - 236

Male 30 to 50 years Number - - 680

Male over 50 years Number - - 605

New employee hires in the reporting period (headcount)

Female under 30 years Number - - 40

Female 30 to 50 years Number - - 35

Female over 50 years Number - - 14

Male under 30 years Number - - 127

Male 30 to 50 years Number - - 112

Male over 50 years Number - - 64

185185

Unit 2020 2021 2022

Employees that left their employment in the reporting period (headcount)

Female under 30 years Number - - 25

Female 30 to 50 years Number - - 46

Female over 50 years Number - - 17

Male under 30 years Number - - 98

Male 30 to 50 years Number - - 112

Male over 50 years Number - - 80

Parental leave (headcount)

Total number of employees that took parental leave Number - - -

Female Number - - 40

Male Number - - 39

Total number of employees that returned to work in the reporting period after parental leave ended Number - - -

Female Number - - 20

Male Number - - 35

Total number of employees that returned to work after parental leave ended that were still employed 12 months after their return to work Number - - -

Female Number - - 8

Male Number - - 45

Total number of employees due to return to work after taking parental leave Number - - -

Female Number - - 12

Male Number - - 23

Total number of employees returning from parental leave in the prior reporting period(s) Number - - -

Female Number - - 4

Male Number - - 26

Workers who are not employees

Total number of workers who are not employees and whose work is controlled by the organisation (heads.) Number - 224 243

Annual total compensation ratio

The ratio of the annual total compensation of the organisation`s higest-paid individual to the median annual total compensation of

all employees. Highest compensation divided by median compensation.

Percentage (%) - 789% -

186186

Unit 2020 2021 2022

Collective bargaining agreements

The percentage of total employees covered by collective bargaining agreements. Percentage (%) - 83% -

For employees not covered by collective bargaining agreements, report whether the organisation determines their working

comditions and terms of emplyment based on collective bargaining agreements that cover its other employees or based on

collective bargining agreements for other organisations.

Percentage (%) - 17% -

Human rights

Number of suppliers Number of suppliers - 2500 7500

Number of new suppliers Number of suppliers - - 191

New suppliers that were screened using social criteria Number of suppliers - - 12

New suppliers that were screened using social criteria Percentage - - 6.28%

Supplier social assessment

Suppliers assessed for social impacts Number of suppliers - 0 220

Suppliers assessed for social impacts Percentage - 0% 2.93%

Suppliers with negative social impacts Number of suppliers - 0 6

Suppliers with negative social impacts Percentage - 0% 2.73%

Suppliers with negative social impacts with improvements implemented Number of suppliers - 0 0

Suppliers relationships terminated as a result of assessment Number of suppliers - 0 0

Supplier environment assessment

Suppliers assessed for environmental impacts Number of suppliers - 0 220

Suppliers assessed for environmental impacts Percentage - 0% 2.93%

Suppliers with negative environmental impacts Number of suppliers - 0 29

Suppliers with negative environmental impacts Percentage - 0% 13.18%

Suppliers with negative environmental impacts with improvements implemented Number of suppliers - 0 0

Suppliers relationships terminated as a result of assessment Number of suppliers - 0 0

Suppliers assessed for social and environmental impacts

Percentage of procurement spend

from suppliers above 50 000€

- - 65%

187187

Unit 2020 2021 2022

Local communities

Total number of sites Number of sites - 38 43

Sites with local initiatives and community engagements Number of sites - 19 32

Sites with local initiatives and community engagements Percentage - 50% 74.42%

Environmental deviations Number of environmental deviations 6 19 31

Governance progress

Unit 2020 2021 2022

Corruption and business ethics

Operation assessed for risk related to corruption Number - - -

Risk related to corruption identified Number 0 0 0

Communication and training of anticorruption policies and procedures to governance body members Number - - -

Communication and training of anticorruption policies and procedures to relevant employees Number - 216 255

Communication of anticorruption policies and procedures to buisness partners Number - - -

Anti-competitive behaviour

Number of legal actions pending or completed Number 0 0 2

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Appendix 9 ESG accounting policies

Accounting comments

Greenhouse Gas Emissions

Scope 1 Direct GHG emissions from BEWI’s production facilities, offices, and

warehouses including fuels used for energy production and fuels used

for BEWI-owned vehicles. Emissions are calculated using fuel-specific

-emission metrics that convert the reported unit (kWh) into kg CO

equivalents. When reporting was done using other metrics than kWh,

conversions factors from kg, liter, or m

, into kWh were also used.

Scope 2 Location-based Energy-related indirect GHG emissions (e.g., electricity, district heating)

for BEWI’s production facilities, offices, and warehouses based on

location-specific GHG emission factors. Emissions for electricity-use

from the national grid were calculated using country-specific CO

emission factors converting the kWh used into kg CO

-equivalents.

Scope 2 Market-based Energy-related indirect GHG emissions (e.g., electricity, district heating)

for BEWI’s production facilities, offices, and warehouses based on

market-based GHG emission factors. Emissions for electricity from

green contracts were based on operational energy production

emissions, i.e., zero-emission for wind energy and hydropower.

Scope 3 (total) Sum of other indirect GHG emission categories within scope 3 linked

to BEWIs activities.

Category 1 - Purchased goods and services Indirect GHG emissions related to purchased goods and services

used for trading and the production or packaging of BEWI’s products.

Emissions were calculated using CO

-emission metrics based on the

type of goods or services that were purchased and converted reported

kg of goods/services into kg CO

-equivalents.

Category 2 - Capital Goods Indirect GHG emissions from the production of capital goods that

BEWI acquired during 2022. For 2022, BEWI has not yet included the

emissions related to this category in its climate account.

Accounting comments

Category 3 - Fuel- and energy-related activities Indirect emissions related to the production of fuels and energy

purchased and consumed not included in scope 1 & 2. BEWI had no

emissions in this reporting category during 2022.

Category 4 & 9 - Upstream- and Downstream

transportation and distribution

Indirect GHG emissions related to purchased transportation for

upstream and downstream. Calculation is based on expenditure on

transportation in euros coupled with a unit CO

per unit spent on

transportation (based on train, boat, truck (fossil and non-fossil)).

Category 5 - Waste generated in operations Indirect GHG emissions related to the handling of waste that was

generated in BEWI’s operations. Emissions were calculated using

location-specific metrics per waste handling method that converted

kg of waste into kg CO

-equivalents. Reported numbers were based on

data received from the waste-handling companies.

Category 6 - Business travel Indirect GHG emissions related to all business travel by plane. Emissions

were based on full GHG emission reports from travel agencies when

available and were otherwise based on average emission factors per

flight type (national, European, intercontinental).

Category 7 - Employee commuting Indirect GHG emissions related to all employee commuting for all of

BEWI’s employees. To ensure that private employee information was

not used, the emissions from employee commuting were calculated

using average commuting distances coupled with employee numbers

and emission factors per transport type (car, bus, train, walking,

cycling). The average commuting distances were based on country-

specific statistical sources found in online literature research.

Category 8 - Upstream leased assets Indirect emissions from the operations from leased assets that are

not already included scope 1 and/or scope 2. BEWI had no additional

emissions in this reporting category during 2022.

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Accounting comments

Category 10 - Processing of sold products Indirect GHG emissions related to the further processing of products

sold by BEWI. For the raw materials that BEWI produced and used

internally, this was accounted for in the internal climate accounting

for the downstream production facilities in BEWI. Emissions for further

processing by external parties were not yet included in BEWI’s climate

account for 2022.

Category 11 - Use of sold products Indirect emissions coming from the use of sold goods and services.

BEWI had no emissions in this reporting category during 2022.

Category 12 - End-of-life treatment of sold products Indirect GHG emissions from the disposal and final treatment of

products produced by BEWI in 2022. For 2022, BEWI has not yet

included this category in its climate account.

Category 13 - Downstream leased assets Indirect emissions from the operation of assets owned and leased by

BEWI that are not included in scope 1 and 2. BEWI had no emissions in

this reporting category during 2022.

Category 14 - Franchises Indirect emissions from the operation of franchises not included

in scope 1 and 2. BEWI had no emissions in this reporting category

during 2022.

Category 15 - Investments Indirect scope 3 emissions associated with BEWI’s investments. BEWI

had no emissions in this reporting category during 2022.

Total GHG emissions (scope 1, 2, and 3) Location-

based

Sum of the total scope 1, scope 2 location-based, and scope 3

emissions.

Total GHG emissions (scope 1, 2, and 3) market-

based

Sum of the total scope 1, scope 2 market-based, and scope 3

emissions.

Category 11 - Use of sold products Indirect emissions coming from the use of sold goods and services.

BEWI had no emissions in this reporting category during 2022.

Category 12 - End-of-life treatment of sold products Indirect GHG emissions from the disposal and final treatment of

products produced by BEWI in 2022. For 2022, BEWI has not yet

included this category in its climate account.

Category 13 - Downstream leased assets Indirect emissions from the operation of assets owned and leased by

BEWI that are not included in scope 1 and 2. BEWI had no emissions in

this reporting category during 2022.

Accounting comments

Category 14 - Franchises Indirect emissions from the operation of franchises not included

in scope 1 and 2. BEWI had no emissions in this reporting category

during 2022.

Category 15 - Investments Indirect scope 3 emissions associated with BEWIs investments.

BEWI had no emissions in this reporting category during 2022.

Total GHG emissions (scope 1, 2, and 3)

Location-based

Sum of the total scope 1, scope 2 location-based, and scope 3

emissions.

Total GHG emissions (scope 1, 2, and 3)

market-based

Sum of the total scope 1, scope 2 market-based, and scope 3

emissions.

Climate accounting KPIs

Energy intensity ratio Energy use per unit of raw material used in the production of BEWI’s

products excluding purchased packaging. Calculations were done

using the total energy consumption within BEWI.

GHG emissions intensity ratio GHG emissions per unit of raw material used in the production of

BEWI’s products excluding purchased packaging. Calculations were

done using emissions from all three scopes.

190190

Appendix 10 Restatements of information

Topic Reason for restatements The effect of the recalculation

Waste fraction reycled Calculations for the fraction of recycled waste as part of the total

waste production were changed in 2022 to include the production

waste/cut-offs being recycled. To allow for the right comparison

of numbers, the same calculation method was used to recalculate

the numbers for 2020 and 2021.

For 2021, the effect of the recalculation resulted in an increase

to 61% from 37% in the overall progress towards 80% waste

sorted out for recycling.

Scope 2 market-based The calculation of the market-based emissions for scope 2 for

2022 were done using the emission factors provided in the green

contracts for the relevant sites. For 2020, and 2021, an average

emissions factor based on the type of green electricity was used.

To allow for good comparibility, the numbers for 2020 and 2021

were recalculated using the same method used for the 2022

numbers.

The recalculations resulted in an approximate decrease of 1-2%

for the market-based emissions.

Scope 2 For the scope 2 emissions for 2021, an error was discovered in the

calculations where the indirect energy source categories other

than electricity where not included in the final emissions number.

This was corrected for in the 2022 report.

The recalculations resulted in an approximate increase of 20%

for market-based emissions and approximately 7% for loca-

tion-based emissions.

Scope 3 purchased goods and services - Chipboard For the scope 3 emissions for 2021, an error was discovered where

chipboard was not included in the calculation of the scope 3 -

purchased goods and services emissions. This was corrected in the

2022 report.

The added emissions from chipboard resulted in an increase of

1% for the scope 3 - purchased goods and services emissions

for 2021.

Scope 3 purchased goods and services The 2022 climate account has higher data quality on scope

3 - purchased goods and services where more types of materials

were included than in previous years. This resulted in higher scope

3 emissions mainly from the inclusion of PS, ATH adhesives, and

cardboard.

In total, the larger scope for the scope 3 - purchased goods and

services, resulted in a 26 kton (4% of total emissions) increase in

emissions for 2022 that are explained only by the increased data

quality.

Category 2 - Capital Goods Indirect GHG emissions from the production of capital goods that

BEWI acquired during 2022. For 2022, BEWI has not yet included

the emissions related to this category in its climate account.

191191

artbox.no

BEWI ASA

Dyre Halses gate 1A

7042 Trondheim, Norway

BEWI.com

Chief Communications Officer

and Investor Relations

Charlotte Knudsen

Tel: +47 975 61 959

Director of Sustainability

Camilla Louise Bjerkli

Tel: +47 984 487 56

Publication

April 2023

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