

Annual report

Highlights

Who we are

Strategic priorities and growth opportunities

Comments from the CEO

Our business

Integrated business model

RAW

Packaging & components

Insulation

Circular

Key partnerships

Sustainability report

Message from the Director of sustainability

BEWI’s approach to sustainability

BEWI’s impact on the environment and society

Circular economy

Climate change

Sustainable supply chains

Health and safety in production

Employee wellbeing

Corporate governance

Board of directors

Executive management

Corporate governance

Statement on remuneration

Board of directors’ report

Financial statements

The Group

Parent Company

124

Auditor’s report

135

Alternative Performance Measures

140

Appendix

143

Content

Our vision

Protecting people

and goods for a

better everyday

Our mission

To create value by oering sustainable solutions for

packaging, components, and insulation in innovative

and ecient ways.

Who we are

BEWI is a leading European provider of

packaging, components, and insulation

solutions. The company is diversied

across geographies and end-user

markets, oering a wide range of

products and solutions from dierent

materials. BEWI is not only committed

to sustainability throughout its value

chain, from production of raw materials

and end goods to recycling but has an

ambition to lead the change towards a

circular economy for its industry.

Since the outset in 1980 on the island Frøya o the

coast of central Norway, the company has been ded-

icated to creating value to its customers, the society,

and owners. BEWI has developed into a classic

“buy and build” company, completing a number of

mergers and acquisitions over the years.

The strategic priorities are to grow the company by

strengthening its market positions, expanding into

new geographical markets, broadening the product

oering, and increase the group’s capacity for collec-

tion and recycling.

Net sales

748 EURm

463 EURm in 2020

Adjusted EBITDA

109 EURm

65 EURm in 2020

Taxonomy eligible revenues

49%

Employees

2 097

1 438 in 2020

Male 72%

Female 18%

Facilities

Diversified across markets

 own facilities across

Europe, in addition to

 jointly owned facilities,

enabling broad coverage

and strong local presence.

Close proximity to customers is, among others, critical to

avoid high transportation costs, since a majority of the group’s

downstream products are made from EPS, which is 98 per cent

air. In addition, the diversication across geographies and end-

user markets, works as a stabiliser for the group, as countries

and industries are impacted by dierent challenges and market

developments at dierent times.

Facilities

2x Upstream facilities

33x Downstream facilities

6x Circular facilities

17x Jointly owned facilities

Markets

Strong market positions

Attractive markets to explore

or further expand into

More than  years of history and a proven track

record of successful M&A integration

Strategic

priorities

Innovation

BEWI shall innovate in search for more

sustainable materials, products, solutions,

and production processes, aiming at

improving resource eciency and increase

the use of recycled and non-fossil fuel

based raw materials. BEWI’s R&D work

leverages on the benets of the group’s

vertical integration.

A circular economy

BEWI aims at being the most sustainable

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 to demonstrate

protable growth through organic

initiatives and M&A opportunities focusing

on strengthening recycling operations,

broadening the product oering, enabling

geographic expansion, and further

strengthening of market positions.

Demonstrating

profitable growth

Since 2014, BEWI has completed close to

30 acquisitions, demonstrating protable

growth, while at the same time substantially

de-leveraging. For 2021, BEWI posted a revenue

increase of 62 per cent, and almost doubled

its EBITDA, both as a result of organic growth

following strong demand, as well as several

acquisitions completed in 2020 and 2021.

The M&A strategy has been integral in forming

the group, developing BEWI from a local

producer of sh boxes at Frøya, to being a leading

European provider of packaging, components,

and insulation solutions in Europe. Since 2014, the

group has had an integrated model, controlling

its raw material production, and has focused on

expanding to new markets, and at the same time

continuously strengthening and diversifying its

product oering.

Adj. EBITDA (EURm) 11 31 52 65 109

No. of M&A

transactions 3 5 3 6 8

Net debt / Adj. EBITDA

excl. IFRS 16 4.2x 3.5x 2.3x 1.6x 1.2x

Comments from the CEO

Demonstrating strong and profitable

growth, and a record-high number of

value-adding transactions

The year of 2021 was, like 2020, characterised by the covid-19 pandemic, as well

as increasing raw material prices. Still, we managed to deliver 62 per cent growth

on our top line, and almost doubling our EBITDA from 2020, mainly explained by

continued strong demand in our markets. This is all thanks to the consistent hard

work from our dedicated employees.

Going into 2022, we have experienced stable or strong demand in our key markets,

combined with some challenging conditions in our value chain, including lack

of components, delay in logistics and transport, as well as cost ination. Russia’s

invasion of Ukraine has increased the uncertainty in our markets, and further

strengthened geopolitical tensions.

Sustainability remains a

cornerstone of our business

Working to achieve a circular value chain and provid-

ing customers with sustainable solutions have long

been a key strategic priority for BEWI. From 2014, one

of our tenets have been “Less is more”, committing us

to continuously strive to create more for less, through

innovations, and smart and reusable products. In

2018 we launched our commitment to lead the way

towards a circular economy for our industry and

formally established our circular business.

Our current sustainability strategy was launched in

March 2021, based on years of investments and com-

mitments, and with this annual report, we publish

our rst sustainability report with reference to the

GRI standard. We have also started the work to map

and dene our eligible activities according to the EU

Taxonomy. We have come a long way, but as always,

we look ahead for areas for further improvement.

Throughout 2021, our circular business continued

to expand, with the acquisition of Volker Gruppe,

and the minority stake of Inoplast, in addition to the

investments in advanced recycling technology in

Canada and the new recycling hub in Stockholm. To

mention a few. On top of this, we established a new

nancing framework including a sustainability-linked

bond of 250 million euro and a credit facility. Under

the framework, we have 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. For 2021,

we almost reached 20000 tonnes.

Volume growth in all segments

and high M&A activity

Protable growth is another of our key strategic pri-

orities, including organic growth initiatives and M&A

activities. Of our total growth in 2021, approximately

two-thirds were organic, and one-third was driven by

acquisitions.

The organic growth was mainly explained by volume

growth and signicant price increases in all segments.

In addition, we completed two so-called greeneld

projects during the year. Firstly, our new sh box

facility at Senja, Norway, where we have a long-term

supply agreement with SalMar, commenced opera-

tions in the third quarter. Secondly, we completed our

investments in a new production line at our facility

in Norrköping, Sweden, increasing our production

capacity of XPS. Going forward, we look forward to

further progress on our planned new packaging hub

at Jøsnøya, Norway.

In 2021, we completed a total of eight acquisitions,

all in line with our strategy. To mention some:

• Honeycomb/ BEWI Cellpack: Danish paper pack-

aging company, broadening our portfolio within

protective packaging, oering our customers

complementary and sustainable alternatives

• IZOBLOK: Providing us with a leading position in

the market for EPP components to the automotive

industry in Europe, a position we intend to con-

tinue to strengthen

• Kemisol: Belgian insulation company, strengthen-

ing our market position in the important Benelux

region, while at the same time broadening our

product portfolio

Last, but not least, we received acceptance of our

oer to acquire all shares in the packaging and insula-

tion company Jackon Holding in October, introducing

the most transformative transaction in our history.

We strongly believe in the combination of our two

companies, complementing each other well and

being a good industrial match. The work to complete

the transaction is progressing, although still subject

to regulatory approvals.

Backed by a strong

organisation and a solid

nancial platform, we

expect our integrated

and diversied business

model to provide us with

robust results, enabling us

to continue to consolidate

the industry and pursue

attractive growth

opportunities.

1010

So far this year, we have announced our acquisition

of Trondhjems Eskefabrikk and our intention to

acquire a Baltic insulation company, and our pipeline

is lled with many more attractive M&A opportunities

going forward.

A strong foundation for further growth

Looking back at the full year of 2021, I am once again

proud to see the results delivered by our organisa-

tion, and I would like to express my gratitude to each

of our employees for their dedicated eorts.

Going into 2022, Russia’s invasion of Ukraine has

been devastating to witness. The humanitarian crisis

caused by the invasion has aected us all, and we

share a deep concern for the Ukrainian population.

Our thoughts are with all the people impacted by

the war.

We closely monitor the developments caused by

this situation, including implemented and planned

sanctions, as well as how the situation could aect

our operations. We constantly work to ensure prepar-

edness for various scenarios.

We have launched an ambition to roughly double

our revenues and more than double our EBITDA the

next ve years, as well as improving our return on

capital employed to approximately 20 per cent.

Backed by a strong organisation and a solid nancial

platform, we expect our integrated and diversied

business model to provide us with robust results,

enabling us to continue to consolidate the industry

and pursue attractive growth opportunities.

Set to continue growth journey next ve years

>2x

Adj. EBITDA

Through organic growth and

acquisitions by 2026

~20%

ROCE

Increase towards

20 per cent

<2.5x

NIBD/Adj. EBITDA

Leverage target unchanged

going forward

30-50%

Dividend

Of underlying

net prot

I would like to express

my gratitude to each

of our employees for

their dedicated eorts.

Christian Bekken, CEO BEWI ASA

1111

Integrated

business model

enable robust

earnings

RAW

Production of the raw materials

expanded polystyrene (EPS), expanded

polypropylene (EPP), extruded

polystyrene (XPS), and BioFoam,

made from organic materials

Packaging & Components

Manufacturing of standard and

customised solutions for many

industrial sectors, including food

packaging, automotive components,

and other technical components

Insulation

Manufacturing of an extensive

range of solutions for insulation and

infrastructure for the building and

construction industry

Circular

Collection and recycling of used

material, including initiatives to raise

knowledge and awareness about

recycling, and waste management.

BEWI has an integrated business model, meaning that the group is integrated throughout the value chain.

The group operates through four core business segments, including production of raw materials in the upstream

segment RAW, manufacturing of end products and solutions in the downstream segments Insulation and

Packaging & Components, and collection and recycling of used products in segment Circular.

The integrated model has for many years provided the group with stable earnings, despite volatile raw material

prices. In 2021, raw material prices increased signicantly during the spring, remaining at high levels throughout

the year, resulting in strong margins in the group’s segment RAW, while the downstream segments had

somewhat lower protability margins than for the previous year.

1212

Extensive industry knowledge

throughout the value chain

Operating throughout the value chain

provides BEWI with several benets,

in addition to the stable earnings as

mentioned above.

BEWI’s R&D work is integrated in all

parts of the value chain, and the

company benets from enhanced

innovation through knowledge sharing

across segments and regions. This

includes utilising industry experience

to enhance commodity products,

developing specialised products in

close collaboration with customers

and innovating new, integrated, and

circular solutions. The integrated

model is crucial, and a competitive

advantage to BEWI, in becoming a

circular company.

1313

RAW

BEWI’s RAW segment develops and produces white and grey expanded polystyrene, known

as EPS beads or Styrofoam, as well as an increasingly amount of various grades of recycled

EPS. In addition, the segment produces the material called Biofoam, a fully bio-based

particle foam. After expanding and extruding the beads, the material can be moulded or

otherwise processed into several dierent end products and areas of application.

BEWI produces raw material at two facilities: one in Porvoo in Finland, and one in Etten-

Leur in the Netherlands. The total capacity is approximately 200000 tonnes, of which

approximately 50 per cent of the raw material is sold externally, and the latter 50 per cent

is sold to BEWI’s downstream facilities, also including facilities owned through minority

interests.

Innovation is prioritised in the segment, and RAW has a proven ability to develop new

applications as well as designing new products. Further, the segment continuously works to

develop materials with a potential long-term disruptive eect, such as the non-ammable

building insulation material Xire®.

32%

of total revenues

46%

of total adj. EBITDA

Based on revenues from external customers

Based on total adj. EBITDA for operating segments

1414

Packaging & Components

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 EPS, expanded polypropylene (EPP),

fabricated foam, carboard, ber (paper), as well as other materials, enabling a broad and

complementary product oering. Examples include boxes and bags for transportation of

fresh sh and other food, protective packaging for pharmaceuticals and electronics, and

components for cars and heating systems.

BEWI is one of the world’s largest suppliers of sh boxes to the salmon farming industry in

Norway, the world’s largest exporter of fresh salmon, and to the industry for wild caught

sh in Portugal.

BEWI has 24 facilities in 7 countries producing P&C components. Also, the group has

minority interests in 2 facilities in the UK.

39%

of total revenues

35%

of total adj. EBITDA

Based on revenues from external customers

Based on total adj. EBITDA for operating segments

1515

Insulation

BEWI’s insulation segment develops and manufactures an extensive range of products and

solutions for the building and construction industry, including foundations, walls, roofs,

and ceilings.

The products, mainly composed of expanded polystyrene (EPS) and extruded polystyrene

(XPS), are in active service all over society and contribute to a greater energy eciency due

to its excellent insulation properties and light weight. Following the launch of GreenLine,

a product line including various grades of recycled content, the interest and demand for

more sustainable solutions has increased.

The Benelux is BEWI’s most important market for insulation solutions, representing

approximately 50 per cent of total sales. BEWI has 15 facilities in 7 countries producing

insulation products. In addition, BEWI has minority interests in 6 facilities in France, 6

facilities in Germany and 1 in the UK.

26%

of total revenues

18%

of total adj. EBITDA

Based on revenues from external customers

Based on total adj. EBITDA for operating segments

1616

Circular

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

of EPS, aiming at making BEWI a fully circular company. Circular oers dierent solutions for

waste management and collection of used material, as well as oering a range of recycled

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

several initiatives, increasing the group’s recycling capacity to approximately 20000

tonnes, and a collection run-rate at year end of approximately 23000 tonnes.

BEWI has announced an annual target of recycling 60000 tonnes of EPS. 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. The other two-thirds of the

volume are used in products with a lifetime of more than one year, i.e., bike helmets, car

components, insulation in buildings and similar.

of total revenues

of total adj. EBITDA

Based on revenues from external customers

Based on total adj. EBITDA for operating segments

1717

BEWI serves a wide range of end markets

Food

The sh farming industry

uses boxes made from

expanded polystyrene (EPS)

for transporting fresh sh

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.

In addition to the EPS

boxes, BEWI oers a wide

range of other packaging

products to the food

industry, including reusable

plastic boxes, cartons for

sh and shrimps, bags from

dierent materials, pallets

and so on.

Pharmaceutical

EPS is a highly functional

packaging material for

pharmaceuticals. It keeps

temperatures stable and is

shock-absorbent.

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 since

they are light and therefore

entail less weight in the nal

products.

Infrastructure

EPS plays an important

role as lling material for

road banks and insulation

for concrete foundations.

Its wide use is due partly

to the fact that it makes

roadbuilding more ecient,

thanks to its light weight

and the stability it provides.

Residential housing

Technical components

made of EPS and EPP are

integrated parts of products

for heating, ventilation, and

air conditioning (HVAC).

Thermal insulation

BEWI’s insulation products

are manufactured primarily

from EPS and XPS. The

products are mainly used

for foundations, walls and

ceilings.

~50 000 tanks

produced annually (by e.g.,

Nibe, Bosch and Enertech)

contain BEWI’s insulating

components.

~700 000 Volvo cars

were produced in 2019, a large

share of which contained

BEWI´s components.

More than 10 million

sh boxes are produced

annually, equal to

~1 billion meals

1818

Key partnerships

BEWI believes that progress towards a more sustainable future can be accelerated through partnerships.

These are BEWIs key partnerships:

The association for European

Manufactures of Expanded

Polystyrene (EUMEPS)

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 Power Parts, including packaging and shape-

moulded parts. The association is committed to

promoting the benets of EPS products and have

joined forces to reach the ambitious European

recycling targets by 2025.

European Plastic Pact

BEWI was one of the rst signatures of the European

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

vate coalition that forms a European network of

companies, states, and other organisations. The aim

of the pact is to set ambitious common objectives

and to encourage cooperation, innovation, and

harmonisation at the European level, to bring about

a truly circular European plastics economy. The Pact

works on all levels to reduce the release of plastics into

the environment: by improving the recyclability and

reusability of products by design, by shifting to a more

responsible use of plastics, by increasing collection,

sorting, and recycling, and by incorporating more

recycled materials into new products and packaging.

Operation Clean Sweep

As a partner in the international Clean Sweep initia-

tive, BEWI is part of promoting cleaner oceans. The

purpose of Clean Sweep is to combat the release

of plastic granulate from manufacturing into the

environment. This initiative is part of the global Marine

Litter Solutions initiative, which aims at improving the

world’s marine environments. As a partner in Clean

Sweep, BEWI is obligated to avoid spills of plastic

granulate. The agreement includes regular audits.

In practice, membership means that BEWI’s facilities

in Denmark and Sweden organize the collection of

plastic granulate in surface water, continually train

personnel, and investigate the presence of waste in

the facilities’ cisterns during the monthly safety checks.

The PolyStyreneLoop 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 foam waste and the

recovery of bromine. The planned demonstration

plant in Terneuzen, Netherlands, will work with the

CreaSolv® Technology. The CreaSolv® Technology

is a development of Fraunhofer Institute and

CreaCycle GmbH.

1919

Sustainability

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 material

environmental, social, and economic impacts and the management approach

of BEWI ASA (BEWI) for the calendar year 2021. The report aligns with the

company’s nancial reporting period and represents BEWI’s Communication

on Progress to demonstrate its commitment to the United Nations Global

Compact.

Companies where BEWI has a majority ownership stake are included

within the scope of the report. Companies acquired during the course

of 2021 are not included and will be included in 2022. This applies to

the following companies: Honeycomb Cellpack A/S, Oasis Global II

AS, North Pack ApS, Volker Gruppe, Desom Group, Kemisol Group

and IZOBLOK S.A.

Contact: Director of Sustainability Camilla Louise Bjerkli (PhD),

camilla.bjerkli@bewi.com

2020

Message from the Director of sustainability

Urgent need for a transition towards a circular economy

The latest report from the UN Climate Panel states that the next ve years will be

critical to limit climate change to 1.5 degrees. It requires immidiate action from

everyone, and the industry must implement a circular business model to reduce

emissions.

In March 2021, we launched BEWI’s sustainability

strategy. The launch was a milestone, enabling us to

measure our progress and take informed decisions.

Witnessing the tremendous positivity all our employ-

ees have showed to implement the strategy, is a

good reminder of the importance of our actions and

commitments.

We see that governments are placing the circular

economy at the heart of legislation. The European

Union’s circular economy action plan is an example

of the progressive policy agenda, and the plan will be

instrumental in delivering the EUs ambitious goals to

be climate neutral by 2050.

Increasing circularity

An important prerequisite for circularity is to make

sure that the products we produce are resource

ecient and recyclable and I am proud that 99 per

cent of the products we produce at BEWI are recycla-

ble. However, the majority of BEWIs GHG emissions

comes from the use of fossil fuel raw materials.

Increasing the share of recycled raw materials is the

most eective action to reduce our emissions. If we

reach our target of 50 per cent recycled content, we

have the potential to reduce our GHG emissions with

52 per cent. In 2021, 11 per cent of our downstream

raw material consumption was recycled and non-fos-

sil fuel based. To increase the share of recycled raw

materials, our main challenge is to get hold of the

streams of used material. We are on track and have

doubled our collection and recycling capacity com-

pared to 2020. We are currently collecting 33 per cent

of high turnover products supplied to the market

annually. That’s at least a good start.

Transition to non-fossil fuel energy

The transition to non-fossil fuel energy sources

remains a huge challenge since as much as 65 per

cent of our energy sources comes from natural gas.

However, we are proud to see that our production

facilities in Sweden have increased their share

of non-fossil fuel energy sources to 68 per cent,

showing it is possible. The past year has also made

it clear that our dependence on fossil fuels makes

us vulnerable to price shocks and climate risks. An

important next step is to explore technologies for

energy eciency and non-fossil fuel energy solutions

which will be crucial for us to reduce emissions,

climate risks and to have stable and predictable

energy costs.

Sustainability in our supply chain

93 per cent of BEWI’s emissions stems from our

supply chain, and an important work in 2021 has

been to incorporate sustainability in our supply chain

management. This will enhance the company’s ESG

performance, reduce risks, mitigate future disrup-

tions, and balance risk and resilience. Therefore, the

introduction of our newly launched supply chain

management system called BEWI partner is a mile-

stone for us and will support our work to document

and improve sustainability in our supply chain.

We have started our journey towards a circular and

inclusive society, continuously revising our plans and

increasing our ambitions. In this report we set out

what we have achieved in 2021 but also how we are

positioned to further strengthen our work going

forward.

Camilla Louise Bjerkli,

Director of sustainability

2121

BEWI’s approach to sustainability

BEWI’s sustainability vision is a circular economy and an inclusive society. The company’s strategic approach to

sustainability is based on three pillars that creates the foundation for the company’s work.

Becoming

circular

The circular economy oers a framework

to move towards a more sustainable

production and consumption. For BEWI,

this means to utilise resources as opti-

mally as possible, focusing on reducing

consumption, and to keep the value of

products and materials in the loop for as

long as possible. This, together with the

transition to renewable energy sources,

will ensure a more sustainable use of

resources.

Actively engage

in partnerships

A transition towards a circular economy

requires a systematic shift, and funda-

mentally rethinking the way we produce

and use products. There is a need to

build a coalition for action that is both

diverse and inclusive. BEWI are commit-

ted to engaging with their partners to

increase the capacity and capability to

build the necessary infrastructure and

alliances to accelerate the transition to a

more circular economy.

Contribute to an

inclusive society

As a company BEWI has an important

role to play in securing an inclusive

society, by being a responsible employer,

partner, and neighbour. BEWI can make

a dierence for people and communities

in the countries where they operate

by tackling anti-corruption, upholding

labour rights, and ensuring inclusive

decision-making and community

engagement.

Becoming

circular

Contribute

to an inclusive

society

Actively

engage in

partnerships

2222

Commitments

and progress

BEWI’s sustainability strategy

is the company’s roadmap

towards a circular economy and

an inclusive society. Working

towards specic targets, BEWI

is committed to delivering

more circular solutions,

reducing carbon emissions,

providing innovative collection,

and recycling solutions, and

contributing to an inclusive

society.

Strategic pillars Strategic goal Our Key Performance Indicatiors Baseline 2020 Status 2021 Target 2030

Becoming

circular

To be lean

% - recycled or non-fossil raw materials 4% 11% 50%

% - non-fossil energy sources 20% 24% 50%

% - non-fossil transportation 3% 6% 50%

% - production facilities ISO 14001 certied 47% 50% 100%

To keep

% - recycable products 95% 99% 100%

% - rawmaterial consumtion going to products for reuse 1% 1% 10%

To close

% - cut-o waste from production 2% 2% 0%

% - waste sorted out for material recycling 35% 37% 80%

% - collected materials

18% 33% 100%

Actively

engage in

partnership

Enhance policies and

industry standards for

circular solutions

% - membership in industry association 100% 100% 100%

Team up to create

joint value

% - suppliers meeting environmental requirements

- - 100%

To increase knowledge and

innovation to enable circular

and inclusive societies

No. - project supported 0 1 1

Contribute

to inclusive

societies

Be a responsible employer

% - employees with a development plan 40% 44% 100%

No. - accidents 40 26 0

Be a responsible partner

% - Suppliers meeting human and labour rights requirements

- - 100%

No. - concerns of corruption or misconduct rised 0 0 0

Be a responsible neighbour

% - production facilities with community engagement 45% 61% 100%

No. - deviations from environmental managment systems 6 19 0

Collected materials measured against BEWIs target to collect 60 000 tonnes equal to annual high turnover products.

BEWIs supplier system BEWI Partner was launched in december 2021 and the screening of suppliers will be signicantly increased during 2022.

2323

Management of

sustainability

The responsibility for the company’s sustainability

performance lies with the board of directors and

BEWI’s director of sustainability manages the group’s

sustainability work and reports to the CFO. This

report has been reviewed and approved by the

board of directors.

In 2021, BEWI launched its sustainability strategy

with commitments towards 2030. To ensure imple-

mentation, each business unit in BEWI has their own

sustainability strategy with goals and action plans

towards 2023. The managing directors for each unit

are responsible for implementing the strategy and

report to the director of sustainability and executive

management group monthly. In 2022, sustainability

criteria and KPIs will be included in the group’s remu-

neration schemes.

Coordinating sustainability

To ensure implementation and progress towards

the company’s commitments, BEWI established a

sustainability group in 2021. The group consists of

representatives from each business unit and holds

monthly meetings. The group works closely to

address relevant challenges and to share experiences.

Sub-groups are established to handle topic specic

challenges and opportunities for the company. In

2021, four working groups were established: health

and safety, energy eciency and renewable technol-

ogies, solid waste, and supply chain management.

Sustainable supply

chain management

Vertical cooperation on sustainability issues in the

value chain is pivotal to meet the group’s targets and

realise its potential. In 2021, a supply chain manage-

ment system called BEWI Partner was established,

allowing for screening and monitoring of suppliers’

sustainability eorts and impacts. The system shall

ensure that the group’s suppliers meet requirements

and expectations related to sustainable and ethical

business conduct.

Governing documents

BEWI’s policies and procedures informs how the

group, and its business partners should conduct busi-

ness. The board of directors’ monitors compliance

with governing documents. Managing directors for

each business unit ensure compliance with the gov-

erning documents, applicable laws, and regulations.

The board reviews the policies at least annually.

BEWI’s governing documents are available on the

company’s website and supplemented by other poli-

cies adopted by the board of directors. All employees

must read and sign the Code of Conduct as part of

their mandatory onboarding process.

Zero tolerance for

corruption and bribery

It is fundamental to BEWI to contribute to eective

and fair competition in the society. BEWI is committed

to always conduct business with a high standard of

business ethics. The company’s anti-corruption policy

describes its zero tolerance to bribery and corruption.

In 2021, zero incidents of corruption were reported.

Whistleblowing

In 2021, BEWI implemented a whistleblowing system,

enabling internal and external stakeholders to report

suspicions of misconduct, such as serious incidents

regarding accounting and auditing matters, bribery

or other matters concerning BEWI’s vital interests on

an anonymous basis. Zero concerns were received

through the system in 2021.

BEWI has a continuous priority on identifying any

adverse impact. To enhance the organisations

competency on ethical conduct, general managers

has been given training by the General counsel of

BEWI. In addition, the company launched an online

training on anti-corruption in 2021, which will be

repeated annually. All relevant employees, agents and

consultants in the group must complete this course

and BEWI is tracking the completion rate. In 2021, 216

(88 per cent) completed the course. To ensure continu-

ous attention on suspicions misconduct each business

unit is reporting on concerns raised monthly.

BEWIs governing documents

• Code of Conduct

• Sustainability strategy

• Procurement policy

• Human resource policy

• GDPR policy

• Anti-corruption policy

Identied employees that must complete the course are senior leaders, country management teams, site managers, employees within sales, procurement, and nance (245 employees).

2424

BEWI’s impact on the environment and society

BEWI’s activities inuence a diverse group of stakeholders

and engagement with key stakeholders is essential to address

critical issues and the management of risks and opportunities.

Stakeholder

engagement

Engagement with stakeholders to understand their needs and expectations,

is essential for determining BEWI’s sustainability priorities, identifying risks and

opportunities and better meet stakeholders’ expectations.

BEWI’s stakeholders

The sustainability group has identied BEWI’s key stakeholders. The following

stakeholder groups are key to help BEWI understand its environmental, social

and economic impacts.

Identifying BEWI’s

material topics

A materiality assessment helps BEWI identifying and

prioritising material sustainability issues. Based on

stakeholder dialogue, risk assessments, literature

reviews and relevant standards, BEWI has identied

material and strategic topics with reference to the

GRI Standards (2016). For a more detailed description,

see appendix 2.

For this report, the materiality assessment has been

adjusted to align with the updated GRI Materiality

Standard (GRI 3, 2021). The list of material topics

below includes actual and potential impacts BEWI

has on the environment, society, and the economy.

The signicance of the impacts is yet to be assessed,

and BEWI plans to carry out a full materiality assess-

ment according to GRI 3 in 2022.

BEWI’s material topics:

• Circular economy

• Climate change

• Supply chain managment

• Health and safety at production facilities

• Corruption

Authorities

Investors &

creditors

Suppliers

Employees

Customers &

consumers

Local

communities

NGOs

The industry

Media

Research

institutes

2525

Circular economy

The world’s resources are used almost twice

as fast as they are being reproduced. This

overconsumption of resources in a linear economy

impacts our ecosystems through biodiversity

loss, climate change, waste, resource scarcity and

pollution.

BEWI produces plastic-based products which are derived in part

from non-renewable resources. In a linear economy, these products

may contribute to resource scarcity, greenhouse gas emissions and if

improperly handled after use, negative impacts on the environment.

At the same time, BEWI’s products provide protection for goods,

energy ecient insulation of houses and reduction of food waste.

Adapting a circular economy is crucial if BEWI is to reduce its negative

environmental impacts and circular economy is therefore central to the

group’s business strategy.

A circular economy is an industrial system that is restorative or regenerative

by intention and design. It replaces the end-of-life concept with restoration,

shifts towards the use of renewable energy, eliminates the use of toxic

chemicals, which impair reuse and return to the biosphere, and aims for the

elimination of waste through the superior design of materials, products,

systems, and business models.

Ellen MacArthur Foundation, 2013

2626

Management of circular economy in BEWI

BEWI aims to become the rst company to provide

a closed loop value chain for EPS and have a target

to collect and recycle the equivalent of annual high

turnover product output.

To improve resource eciency and increase circu-

larity, BEWI’s sustainability strategy and approach to

resource management is based on key principles of

the circular economy. The company has clear targets

and KPIs related to these key principles and all busi-

ness units within BEWI report on these monthly.

To be lean Resource eciency, making more

out of less, using non-fossil fuel

energy sources

To keep Keeping the resource in the

economy for as long as possible

To close Ensuring that BEWI’s products are

collected for material recycling

Certied environmental

management system

To ensure that all production facilities are contribut-

ing to the circular business model, BEWI is working

to implement and certify its environmental manage-

ment systems according to the ISO 14001 standard

across all units by 2023. In 2021, 50 per cent of BEWI’s

production facilities were certied according to the

ISO 14001 standard.

Operation Clean Sweep

There is always a risk of spills of plastic pellets to the

environment and waterways in BEWI’s production

facilities that will eventually lead to the sea. To

prevent this, BEWI has signed and implemented

Operation Clean Sweep in all its production facilities

to prevent the release of plastic granulate from

manufacturing into the environment. BEWI’s work

includes the collection of plastic granulates in

surface water, cleaning routines, continually training

of employees, weekly internal controls, and regular

audits.

Solid waste group

BEWI aims to reduce solid waste generated by own

operations and to sort 80 per cent to material recy-

cling. In 2021, a solid waste group was established

with representatives from all business units. The

purpose of the group is to share best practice and

identify opportunities for waste reduction as well

as to increase the proportion of waste that goes to

material recycling. To secure progress, business units

report on solid waste generation and downstream

solutions monthly.

BEWI Circular

BEWI provide a full collection and recycling service

through its business unit BEWI Circular, who is

responsible for increasing the group’s collection and

recycling. BEWI Circular’s services range from simple

collections to full recycling and waste management

solutions. The unit is continuously working to

increase collection and recycling capacity through

investments and collaboration with customers and

partners.

BEWI has issued a sustainability-linked bond

In August 2021, BEWI launched a new sustainable nance framework, including a ve-year senior unse-

cured sustainability-linked bond tied to the collection of 45 000 tonnes of EPS to recycling by 2024 and 60

000 tonnes by 2026. BEWI has obtained a Second Party Opinion from Sustainalytics, including conrma-

tion of alignment with the Green Bond Principles published by ICMA 2021 and the Green Loan Principles

set out by APLMA, LMA and LSTA in 2021.

2727

 Results on

circular economy

To enhance circularity, BEWI works with

resource eciency throughout its value chain.

The aim is to build long-term resilience, create

business and economic opportunities and

provide solutions that benets the society and

the environment.

The gure illustrates BEWI’s resource streams

and shows the degree of circularity in the

company’s value chain.

Excluded external sold raw materials

2828

To be lean – consuming recycled

and non-fossil fuel raw materials

BEWI’s target is to have 50 per cent recycled and

non-fossil fuel raw materials in their products by 2030.

In 2021, BEWI RAW produced 192 058 tonnes of EPS,

where 3 290 tonnes (1.7 per cent) were recycled raw

materials. For BEWI’s downstream units, raw material

consumption was 87 838 tonnes where 11 per cent

was recycled and non-fossil fuel raw materials. This

is an increase of 7 per centage points compared to

2020 and a result of continuous work throughout the

company’s value chain.

To keep – ensuring recyclability

and reusability

To keep its products in the economy for as long

as possible is a central goal for BEWI. BEWI seeks

to produce products designed for reuse and only

produce products that are recyclable.

In 2021, 99 per cent of the products BEWI supplied

to the market were recyclable and the company is

working to phase out the remaining products that

are not suitable for material recycling. One example

is the developement of the Nordic Eco Bag, that has

replaced laminated solutions.

In the same year, 1 250 tonnes raw materials went

into products designed for reuse. This accounts for

1.4 per cent of the raw material consumption from

BEWIs production facilities. BEWI works actively to

increase this share and has a close dialogue with

customers to look at possible solutions for reuse of

their products.

To close – minimising waste

BEWI aims to have zero waste from its production by

2030. In 2021, BEWI had 10 155 tonnes (11.6 per cent)

of cut-o from production. 9.8 per cent of this was

recycled back into production and 1.7 per cent were

dened as waste and sent to energy recovery.

BEWI’s operation results in the production of various

solid wastes. In 2021, BEWI produced 9 343 tonnes of

solid wastes, where 13 per cent was sent to landll,

49 per cent to incineration with energy recovery

and 38 per cent to material recycling. BEWI works to

reduce waste by eliminating unnecessary packaging,

to ensure that everything the company is consuming

is 100 per cent recyclable and can be sorted out

for recycling and to increase source separation at

production facilities. For more detailed information

about waste composition see appendix 4.

In 2021, BEWI collected 19 730 tonnes of waste of

which 11 875 tonnes of this was reprosessed for

material recycling. This is a doubling compared to the

volumes collected and recycled in 2020. Acquisitions

and organic growth the last year have been

important to ensure presence in new geographical

locations as well as to secure volumes in the market.

Priorities going

forward

BEWI’s main challenge is related to collection

of materials for recycling. There are large

waste streams that are not sorted and

thus go to incineration or to landll. If the

company is to increase the share of recycled

raw material, it must increase the volume of

waste collected for recycling. Going forward,

acquisitions of new companies will be

necessary to secure volumes, in addition to

continuously working with customers and

partners to ensure increased sorting and

recycling.

Chemical recycling is needed to

ensure a circular plastic economy

BEWI has entered partnerships with several

actors in the market and one example is

Polystyvert Inc., an innovative company

focusing on circular economy for styrene

through a dissolution recycling process.

The company is based in Montreal in

Canada, where it has a demo-site at which

proof of concept studies for the technol-

ogy has been successfully completed.

2929

Developing circular packaging

solutions together with customers

BEWI aims to increase the proportion of products for reuse and is very

proud to be able to oer Danfoss a more sustainable packaging solution.

By replacing cardboard with Expanded

Polypropylene (EPP) for packaging components,

Danfoss has reduced its cardboard consumption by

29 tonnes annually at one production unit. The EPP

boards are specially moulded to t the components

they are to protect at the same time as they have a

life expectancy of 10 years. This means that they can

be reused countless times and thus we have together

managed to put in place a packaging solution that

reduces resource consumption and facilitates for

increased reuse. We are incredibly proud of this and

will continue to work with customers to put in place

similar solutions.

3030

Climate change

BEWI’s operations are contributing to emissions of

greenhouse gases, and the climate change poses

both physical and transitional risks to the company.

Stakeholders are requiring more granular information

about emissions and how the company handles

climate risks. BEWI aims for full transparency in their

work with climate change.

The Sixth Assessment Report from the UN Intergovernmental Panel on

Climate Change (IPCC) is the most up-to-date understanding of the climate

system and climate change. It concludes that increased greenhouse gas

(GHG) concentrations are unequivocally caused by human activities, and

it has detrimental consequences to ecosystems. In 2021, BEWI signicantly

increased its eorts to address its climate impacts, gaining more insight

about its climate risks and the company’s carbon footprint.

3131

Managing emissions and climate related risks

BEWI will reduce its emissions and climate related

risks by adapting a circular economy, following a tran-

sition to more non-fossil fuel energy sources – both

of which are key elements in the company’s strategy

towards 2030. The company target is for 50 per cent

of the energy sources used to be non-fossil fuel, 50

per cent of all transportation to be renewable and 50

per cent of all raw material consumption to be either

recycled or non-fossil fuel by 2030.

GHG accounting in place

Using data to measure and track Greenhouse Gas

(GHG) emissions will enable BEWI to set goals,

review measures and benchmark performance.

BEWI is reporting its GHG emissions in accordance

with the GHG protocol and is working continuously

to improve the quality and expand the categories

included in scope 3. A detailed description of

the methodology and accounting can be read in

appendix 5, 6 and 7.

BEWI follows the TCFD recommendations

In November 2021, BEWI carried out an assessment of

its management of climate-related risks, applying the

Task Force on Climate-related Financial Disclosures

(TCFD) framework. BEWI is exposed to physical risks,

particularly to ooding in continental Europe through

the location of the production facilities and the com-

pany’s suppliers. The main transitional risks identied

are more stringent regulations on emissions and

energy eciency. BEWI produces plastic products,

which is a petroleum by-product. As the petroleum

industry is faced with signicant regulations, this may

result in more volatility in the market and increased

prices on a key component of BEWI’s products.

Energy group

A large share of BEWI’s energy consumption is fossil

fuel based (76 per cent) and the company aims

for 50 per cent non-fossil fuel energy sources by

2030. This is a challenge for all production facilities

in BEWI as the development in the global energy

market is uncertain and available infrastructure

varies in dierent geographical locations. To increase

the company’s knowledge, an energy group has

been established to map, explore, and pilot various

technologies and solutions for energy eciency and

non-fossil fuel energy sources.

3232

 Results on greenhouse gas emissions

BEWI’s total greenhouse gas (GHG) emissions were 660 769 tonnes CO

e in 2021,

where scope 1 and 2 accounted for 7 per cent and scope 3 for 93 per cent.

Scope 1 GHG emissions

BEWI’s GHG emissions from scope 1 includes the

consumption of natural gas used to create steam

to shape the company’s products. Scope 1 GHG

emissions increased by 13 per cent from 2020 to

2021, where the main driver was the increase of gas

consumption in all business units due to increased

production volumes and the start-up of a new

factory in Senja in Norway. Fossil fuel-based heat

and energy generation stand for 91 per cent of the

total scope 1 emissions and the remaining 9 per cent

originated from other fuel consumption including

the use of cars and vessels.

Scope 2 GHG emissions

The main source of scope 2 GHG emissions is steam

purchased for some of BEWI’s facilities in Sweden and

Finland and electricity consumption. Scope 2 GHG

emission increased by 13 per cent from 2020 to 2021.

The main driver being increased energy consumption

due to increased production, ramp-up of production

at a new facility in Norrkoping and increased produc-

tion at extrusion sites in Portugal and Denmark. The

share of non-fossil fuel energy consumed increased

from 20 per cent to 24 per cent in 2021, due to

increased consumption of wood chips at sites in

Sweden. BEWI is reporting on market based scope

2 emissions, since all electricity purchased to cover

BEWIs energy consumption in Denmark, Finland and

the Netherlands is certied green electricity through

guarantees of origin (GoO).

Scope 3 GHG emissions

BEWI’s largest environmental footprint lies in its

supply chain, and accounts for 93 per cent of the

company’s total GHG emissions.

Purchased goods and services constitutes 95 per cent

of the GHG emissions in scope 3. The largest share of

emissions comes from the purchase of raw materials

where styrene stands for 77 per cent of the emissions.

10 per cent of the emissions comes from purchased

plastic packaging mainly from the company’s trading

3333

unit BEWI Food. The remaining from other purchased

raw materials and products. BEWI’s estimates that

GHG emissions can be reduced by 52 per cent by

replacing virgin fossil fuel raw materials with recycled

raw materials and there is therefore a signicant

opportunity to reduce scope 3 emissions.

Emissions from downstream and upstream transpor-

tation is the second and third largest source for scope

3, accounting for 1.4 and 2.7 per cent of the GHG

emissions. 6 per cent of the transportation is from

non-fossil fuels which is an increase from 3 per cent

in 2020. BEWI works continuously to reduce trans-

portation by creating cleaner and leaner logistics, by

optimizing routes, to ll vehicles more eciently and

to transition to more fossil free alternatives.

GHG emission intensity

BEWI’s scope 1, 2 and 3 GHG emission intensity based

on turnover was reduced by 36 per cent from 2020

to 2021.

A detailed description can be read in appendix 7.

Priorities going

forward

In 2021, BEWI focused on gathering data and

enhance competency about emissions and

climate risks. The company’s management

team realises that it needs a more ambitious

and targeted plan to reduce emissions and

adapt to climate related risks. BEWI aims to

develop a low-carbon transition plan, as well

as updating governing documents based

on the group’s GHG accounting and TCFD

assessment.

BEWI further sets out to increase the quality

and scope of greenhouse gas data collected.

Increased collaboration with suppliers and

especially raw material, packaging and trans-

portation suppliers will be essential to this

end. The aim is to provide a better overview

of emissions and to make more informed

decision when it comes to reducing the

company’s greenhouse gas emission.

3434

Reaching  per cent renewable energy

sources for facilities in Sweden

BEWI has decreased its carbon emissions signicantly thanks to

new energy sources at several production sites in Sweden.

Neighbourhood cooperation

BEWI’s production facility in Urshult is powered by

wood chips supplied by a neighbouring sawmill.

The wood chips are a residual product of the sawmill

and provides the facility with a locally produced

and renewable energy source. The short transport

reduces the climate footprint further, and the burning

of the chips result in excess heat that is sold to the

district heating system. The burning of the chips is

carefully monitored to prevent harmful gases.

Run by steam

The renewable energy used at BEWI’s facilities in

Norrköping and Vårgårda comes from wood chip

burning. Dierent local companies burn the wood

chips, and the process creates steam that the sites

use as an energy source. Transports are short due to

local production, and no energy is wasted as only the

required amount is delivered to the facilities.

3535

Sustainable supply chains

BEWI’s impacts reach beyond its own operations, and the company’s largest

emissions lie in its supply chain. Robust supply chains are critical and BEWI is aware

that working conditions and unethical business risks exist in some of the countries

it sources from.

BEWI sources products and services from over 2500

suppliers in Europe and Asia. Suppliers play a signif-

icant role in reaching the company’s sustainability

goals. BEWI has a signicant annual purchasing volume

of around EUR 550 million

and sees this as an oppor-

tunity to drive change and to increase sustainability

standards in its value chain.

Supply chain management

BEWI believes that a trustful relationship with suppli-

ers is key to mitigating negative impacts and seizing

new opportunities. The company supports the

principles recorded in the UN declaration on Human

Rights and ensuring eective and fair competition in

the society is fundamental to the company. Through

the procurement strategy and guidelines, suppliers

are selected based on alignment with the company’s

vision and values as stated in the Code of Conduct,

anti-corruption policy and sustainability strategy.

BEWI has a central procurement function responsible

for coordinating and supporting local business units.

Procurement is managed in the business units, and

each managing director is responsible for the imple-

mentation of the policies adopted by BEWI in their

organisation.

Approximately 25 per cent is inter-company sales

3636

BEWI Partner – supply chain

management system

All suppliers are to be screened and assessed in BEWI

Partner, a newly launched supply chain management

system aligned with the company’s procurement

guidelines. This ensures that suppliers meet BEWI’s

expectations and requirements for health and safety,

environmental performance, corporate governance,

and human rights. Further, it enables BEWI to docu-

ment suppliers’ performance, the engagement with

suppliers as well as the company’s activities to follow-

up on supplier’s performance. To ensure progress,

each business unit reports monthly the number of

suppliers screened and the number of suppliers

that are not meeting the company’s minimum

requirements.

Risk assessments

Risk assessments of suppliers are done on an annual

basis by the business units and are part of the quality

management approach and ISO 9001 certication.

In 2021, 30 suppliers were identied as high risk.

The company seeks to mitigate these risks by using

Word-Check,

through transparent and fair tender

processes, pre-production audits and to engage with

suppliers on a regular basis.

 Results for sustainable supply chain

BEWI’s goal is that 100 per cent of their suppliers

comply with the company’s sustainability standards

when it comes to ethics, labour, and human rights

and environment requirements.

Supplier screening

Implementing BEWI Partner had a high priority in

2021. The system was launched in December, and in

the short time the platform was used, 50 of BEWI’s

suppliers were screened and the screening will be

signicantly increased across the value chain in 2022.

In 2021, 0 suppliers were identied as having an

actual or potential negative impact.

Cooperating with suppliers to improve

circularity and reduce GHG emissions

BEWI’s largest environmental footprint lies in its supply

chain and 98 per cent of the company’s scope 3

emissions stems from the purchased raw materials,

plastic packaging, and transportation. During 2021,

BEWI have collaborated more closely with suppliers to

better understand their GHG emissions and ambitions.

Topics that have been discussed with raw material

and transportation suppliers are related to bio-based

and recycled materials as well as the ability to provide

supplier-specic GHG gures on raw materials deliv-

ered to BEWI.

Furthermore, BEWI Food has had a strong focus

on mapping and collecting GHG data from their

suppliers and to nding more sustainabile packaging

solutions. One example is the replacement of PET

and aluminium cups with bre-based wood solutions.

Minimum social and

environmental safeguards

In 2021, BEWI conducted an initial assessment of

minimum social and environmental safeguards. The

assessment identied that the company needs a

due diligence procedure for human rights, beyond

what is included in the company’s Code of Conduct.

There is also a need to include responsible supplier

behaviour in the company`s Code of Conduct, as well

as to establish a management approach that ensures

alignment of implementation and documentation

within the group.

Priorities going

forward

The launch of BEWI Partner was a signicant

milestone in 2021. It paves the way for a

systematic management of sustainability

issues in the supply chain. Going forward BEWI

will onboard the remaining suppliers in the

system, and systematically include new suppli-

ers. This will allow the company to monitoring

performance and managing risks in its supply

chain, including assessing the needs for audits.

To ensure compliance with the Norwegian

transparency law, BEWI will analyse existing

policies, systems, and routines to ensure that

the company meets both legal requirements

and the actual methodology for due dili-

gence assessments as dened by the OECD

and the UN`s guiding principles for business

and human rights.

Emphasis will also be given to increase

collaboration with suppliers to improve the

collection of GHG emission data from prod-

ucts and services purchased by BEWI as well

as increasing the demand for more circular

and sustainable products and services.

A database of heightened risk individuals and organizations, used to help to identify and manage nancial, regulatory, and reputational risk.

3737

BEWI Partner – working together with

suppliers to improve sustainability

BEWI’s suppliers play a signicant role in reaching the company’s sustainability goals.

BEWI Partner is a platform where suppliers ll out

a questionnaire and document their policies, com-

mitments and management approach regarding;

business conduct, human and labour rights, health

and safety, environment, and climate, quality, and

food safety (for relevant suppliers).

BEWI review the results and conrm the answers with

the documentation provided by the suppliers. If the

supplier does not live up to the company’s standards,

BEWI will suggest improvements. In the case that the

supplier doesn’t provide a plan, BEWI would need to

nd optional suppliers.

BEWI takes pride in its sustainability goals, where the

supply chain plays a signicant role. BEWI Partner will

therefore be prominent in the company’s long-term

commitment to collaborate with its suppliers. BEWI

wants to achieve a reduction in carbon emissions,

and BEWI Partner will help the company to achieve

that goal.

The platform was implemented in December 2021,

and will play a crucial role in the evaluation of suppli-

ers in the years to come.

3838

Health and safety in production

Ensuring safe working condition is

paramount in everything the company

do. BEWI has a zero vision when it

comes to health and safety, with focus

on continuous improvements and

high standards.

BEWI has 41 production facilities in ten countries.

Employees at the production sites are exposed to

physical work-related risks of injuries and accidents.

The main work-related hazards are related to the

company’s chemical manufacturing EPS facilities in

Porvoo, Finland, and Etten-Leur, the Netherlands, due

to handling of chemicals and dangerous substances.

Ensuring safe working condition to mitigate any risks

of injuries in the company’s operations is therefore

central to the company’s management.

Management of health and safety

BEWI’s target is for no people to be hurt or injured

at its production facilities. BEWI’s Code of Conduct

states that the company will never compromise on

health and safety. The company works actively to

ensure preventive actions are taken and safe working

conditions are maintained in accordance with local

laws and regulations. Emphasis is given to providing

a working environment and culture where health

and safety is integrated in the business and where

employees actively engage in the work to achieve a

healthy and safe working environment.

The overall responsibility for health and safety lies

with the board of directors, and they are informed

about risks and incidents quarterly. The incident

reports include number and nature of accidents,

analysis of the root cause, and measures imple-

mented to prevent it from happening again.

The director of human resources manages health and

safety issues daily and is responsible for implement-

ing secure practises at all production facilities. Each

business unit has a designated manager for health

and safety which reports back to the director.

In 2021, a health and safety group were established

with country managers to share best-practice and

streamline the management of health and safety

issues. A survey was sent out to map existing prac-

tices regarding management, as well as awareness

of risks and company policies. The results from this

survey will inform continued work on health and

safety in BEWI going forward.

ISO certied health and safety

management system

BEWI is working to implement and certify health and

safety management systems according to ISO 9001

standard across all units by 2023. In 2021, 69 per cent

of BEWI’s facilities were certied according to ISO

9001 standard.

Specialised training and qualications

In highly regulated working areas, such as the

chemical manufacturing facilities, workers are oered

specialised training programmes and processes for

training certication. At regular production sites,

introduction training programmes including health

and safety training activities are conducted on a

regular basis in line with local legislations or site-spe-

cic standards.

3939

 Results for

health and safety

In 2021, BEWI had 26 accidents compared to 41 in

2020 with a loss of 270 working days compared to

359 in 2020. The most common accidents through-

out the year were cuts, stitches or falling. Three

accidents were caused by human failure in operation

of machine with rotating parts.

All accidents, regardless of the severity, were followed

up with an analysis of root cause and implementation

of preventative measures. Out of the 26 accidents

in 2021 the main action taken has been to create

further awareness by updating instructions, posting

of photos and pictures as a mean to avoid future

accidents.

2020 2021

Total no. of accidents 41 26

Frequency rate

0.01% 0.01%

Severity rate 0.11% 0.06%

No. of working days lost 359 270

Frequency is an abreviation for LostTime Injury Frequency (LTIF): Number

LTI / (Net working days * average FTE) Severity = (Number of absent

days) / (Net working days * average FTE)

Priorities going

forward

A group-wide health and safety policy will

be implemented during 2022 to clarify

BEWI standards and expectations across the

group. To further enhance its health and

safety management system, BEWI is consid-

ering implementing the ISO 45001 standard

for safer work environments.

4040

Safety needs daily focus and training

The Porvoo facility in Finland is an example of what the company

has accomplished to get the accidents down to zero.

Constant monitoring

Porvoo complies with EU legislation and the SEVESO

III directive. The latter aims at preventing major

accidents involving dangerous substances. Finnish

national legislation on handling and storage of

dangerous chemicals is also followed, which raises

the safety level further. In addition to these laws,

goals have been set regarding the environment,

occupational health, safety, and quality. All sta are

encouraged to develop these functions and perfor-

mance is constantly monitored.

Everything is reported

Employees report the slightest deviation from safety

standards, even on repeated minor safety notices to

collect data. The safety notices are rated on severity

which determines further actions. The Porvoo

employees follow general safety notices, near misses,

process disturbances, damages, personnel accidents,

and environmental issues. In 2021, 400 small safety

notices were collected, and investigations were

launched for the ones with a higher safety rating.

Closing in on zero

During 2021, there were no rst-aid cases nor lost

work time incidents among employees or contractors

working at the facility. The Total Recordable Incident

Rate (TRIR) of 200000 working hours dropped below

1. This year, the toolbox talks on safety will be inten-

sied and making safety walks is obligatory to all line

managers in BEWI.

4141

Employee wellbeing

BEWI’s employees are the company’s most valuable

resources and a key enabler for continuous growth and

development. Creating a learning environment which

recognizes the contribution of colleagues and providing

development opportunities is a priority to BEWI.

BEWI’s employees have varied backgrounds representing

more than 50 nationalities that enriches the company’s

culture and contribute to its success. In December

2021, BEWI had 1 806 full-time equivalents (FTEs) in 11

countries out of which 72 per cent men and 28 per cent

women.

4242

Human resource management in BEWI

To sustain a competitive advantage and maintain

healthy company culture, it is crucial to attract and

retain people with the right values, competencies,

and skills. The company`s human resource policy

sets out BEWI’s commitments to ensure workers

wellbeing and development, and it applies to all

entities in the group and is owned by the CEO. The

policy stipulates employees’ rights to form or join a

trade union, and the company’s respect for the rights

of its employees and their trade unions to negotiate

collective agreements.

Managing directors in all countries are accountable to

ensure that the group policy is implemented, and that

local laws and regulations are followed. Any breaches

are reported through the whistle-blowing system

according to the whistleblowing guidelines (Read

more here). There were no reported incidents in 2021.

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, prospective employees,

business partners and other stakeholders. BEWI has

developed a contingency plan detailing its work for

equality and against discrimination and harassment.

Everyone working for BEWI, in particularly those

in a management position, has a responsibility

in their daily work to ensure compliance to these

commitments. In 2021, no cases regarding equal

opportunities or harassment were reported.

Employee satisfaction and development

In 2021, BEWI piloted an employee engagement

survey called BE Heard in Sweden, which will be

expanded to the rest of the group throughout

2022. The survey will be an important tool to

monitor employee’s well-being and engagement

going forward. The survey will be performed every

year to secure agreed activities. The results from

Sweden show an organization in which employees

are empowered and able to take decisions in their

work with good collaboration within teams, highly

engaged leaders with good understanding of overall

goals. Improvement areas going forward will be to

further clarify overall goals throughout the organiza-

tion and strengthening our internal communication.

Most learnings and competence development

happen through “on-the-job training”. BEWI’s goal

is to ensure that 100 per cent of the company’s

employees has a development plan and annual

reviews are performed with all employees, in which

performance and competence development are to

be discussed and planned. In 2021, all employees had

an annual review and 44 per cent of BEWIs employ-

ees had a development plan in place.

BEWI leadership program

BEWI Business School was launched in 2020 as a tool

to facilitate people and leadership development

internally, ensuring that employees are growing

with the pace of the business. The rst programme

launched, Growth 2020, is focusing on preparing

employees to take the next step in their career

together with BEWI. The programme includes 20

employees who are coming from most of the coun-

tries in which BEWI operates. Due to covid-19 and the

travel restrictions, the programme was re-designed

to start as a digital training and will be launched as

classroom training in the second quarter of 2022. The

Senior Leadership program that has been planned for

has been postponed and is expected to be launched

in the third quarter of 2022.

nationalities

2 097

employees

44%

have a development plan

72%

male

28%

female

4343

Board of directors

Gunnar Syvertsen Kristina Schauman Stig Waernes Anne-Lise Aukner Rik Dobbelaere

Position

Chair of the Board Director/Partner Calea AB Director/Partner BEWI Invest AS Director Director

Born 1954 1965 1968 1956 1954

Nationality Norwegian Swedish Norwegian Norwegian Belgian

Elected 2014 (Chair of BEWI ASA since 2018) 2016 2020 2020 2021

Education M.Sc. Engineering M.Sc. Business Administration, Stockholm

School of Economics.

Degree in auditing and accounting from

NTNU business school.

Law degree from the University of Oslo. M.Sc. Engineering and MBA from Catholic

University in Leuven, Belgium.

Professional

background

CEO Heidelberg Cement Northern Europe

AB, Managing Director Heidelberg Cement

Norway AS, Managing Director Norcem AS,

executive positions in Heidelberg Cement

AG in Africa and the US.

CFO OMX AB, Carnegie Investment Bank

and Apoteket AB. Senior positions at

Investor AB, ABB and Stora Enso.

Regional managing partner and deputy

chairman of BDO AS, chairman and

managing partner of Inter Revisjon/Praxity

(int). Extensive experience from auditing,

advisory and various directorships.

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

Chairman BEWI Invest AS, and various

directorships and management positions

within the BEWI group

Board member of BillerudKorsnäs AB,

AFRY AB, Coor Service Management

Holding AB, DanAds International AB,

Vionlabs AB, REEDA Capital Management

AB, Ellos Group Holding AB, and Nordic

Entertainment Group AB.

Board member of Bekken Invest AS,

BEWI Invest AS, KMC Properties ASA,

Måsøval Eiendom AS, Nardo Bil gruppen

AS, and chairman of the board of Frøya

Investment AS, and Matpartner AS.

Chairman of the board in Fontenehuset

Ullensaker and board member of Aukner

Holding AS.

Board member of Jablite Group Ltd and its

subsidiaries.

Shares per 31.12.21 317559

193452 - - 98 497

Gunnar is the chairman of BEWI Invest AS, an investment company controlled by the Bekken family, owning 97 642 450 shares on 31 December 2021, including shares held by EBE Eiendom and shares held on a forward contract.

4444

Executive management

Christian Bekken Marie Danielsson Jonas Siljeskär

Position

Chief Executive Ocer (CEO) Chief Financial Ocer Chief Operating Ocer

Born 1982 1975 1972

Nationality Norwegian Swedish Swedish

Employed 2002 2015 2010

Education Upper secondary general, nancial, and adminis-

trative programmes.

M.SC. Business Administration, Stockholm

University.

Engineer, Dalarna University.

Professional

background

Various positions with production and sales at

BEWI, CEO Smart Bolig.

Auditor KPMG, Vice President Financial Control

and Taxes, Haldex AB.

Managing Director BEWiSynbra RAW; Chief

Operating Ocer Gustafs Inredningar,

Shares per 31.12.21 5 952

185 452 124 126

Options per 31.12.21 250 000 250 000 250 000

Christian Bekken is a member of the Bekken family. In addition to the 5 952 shares held privately, BEWI Invest AS, an investment company controlled by the Bekken family, held 97 642 450 shares on 31 December 2021, including shares held by

EBE Eiendom and shares held on a forward contract.

4545

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

nancial 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 denes risk as something that could negatively impact its eectiveness.

Though risk is a natural part of business operations, it can be managed, and it is

the responsibility of group management to ensure that risks are identied and

managed. BEWI’s overall objective of risk management is to ensure a systematic

method for identifying risks and for ensuring their management 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

The demand for BEWI’s products

and solutions is linked to the market

conditions for the building and con-

struction industry, as well as market

conditions in general.

The risk of a recession in one or more of BEWI’s end markets is balanced

by the group’s healthy distribution of customers in various end markets

(e.g., construction, food, medical and automotive) and geographical

regions.

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 protable 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.

4646

Customers and competition

BEWI’s operations are conducted in

competitive industries.

By using product development, improved production methods and

accessibility as well as oering competitive prices, BEWI can get cus-

tomers to choose its products over its competitors.

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 ow are in focus.

BEWI conducts development work that will create and add value

through the development of new materials, applications, and design,

targeting a continuously relevant and sustainable product portfolio.

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

BEWI strives to be the most cost-eective collaborating partner for its

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

cesses to be as cost-eective 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 is a

risk factor.

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 aect BEWI’s competitors so that desirable margins (GAP) can be

maintained.

To fend o price volatility, BEWI works with several suppliers, contract

models, purchasing strategies and individually tailored customer agree-

ments throughout the value chain.

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.

The group also collaborates closely with other suppliers on purchasing

goods or to let out production if needed.

For strategic products and customers, special risk manuals and routines

for managing production eorts have been developed.

In addition to this, the group has insurance covering potential addi-

tional costs and losses in production.

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 specic projects –

that causes negative repercussions for customers, nes, or damage to

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

ensures continuity in processes, as well as quality checks, a lean pro-

duction philosophy and the necessary insurance policies.

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

tions, that identies causes and preventive measures.

Development, R&D

Requirements from customers and

legislators for increased functionality

and more environmentally friendly

solutions, lead to new requirements

for BEWI’s products.

The market has a continued need for new intelligent materials, prod-

ucts, and solutions at competitive prices. As a producer, meeting new

legal requirements concerning the environment is also important.

To meet customers’ expectations and future legal requirements, BEWI

works to have a relevant and innovative product portfolio.

BEWI is a member of both local and European industry organizations

for advice concerning materials and legal requirements.

4747

Information and IT systems

BEWI relies on IT systems for its

operations. Disruptions or faults in

critical systems might have a direct

impact on production and other

important business processes. Errors

in nancial systems risk aecting the

group’s reporting of results.

BEWI’s management model for IT is structured based on governance,

standardized IT processes and security. Continuous work is performed

to move away from traditional and customized on-premises solutions

to modern standardized and unied solutions to reduce risk.

Acquisitions and integration

Integration of newly acquired busi-

nesses 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 aected.

BEWI is well equipped for successful integration through the experi-

ence with acquisitions and works on integrating newly acquired units

through dedicated project groups separated from daily operations.

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

continously observes the rules and regulations in each of its markets.

BEWI works to adapt its products and operations to future changes,

and monitors legal risks that arise in cooperation with external advisers

if deemed necessary.

4848

Sustainability-related risks

Environment

There is a risk that BEWI’s operations

can have an environmental impact

on the air, the soil, or the 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.

Climate

BEWI is exposed to physical climate

risks, particularly to ooding in

continental Europe through the

location of the production facilities

and the group’s suppliers. The main

transitional risks identied are more

stringent regulations on emissions

and energy eciency. BEWI produces

plastic products, which is a petro-

leum by-product. As the petroleum

industry is faced with signicant

regulations, this may result in more

volatility in the market and increased

prices on a key component of BEWI’s

products.

To mitigate climate risks, BEWI is collecting data for their GHG emissions

and works to integrate the Task Force on Climate-related Financial

Disclosures (TCFD) framework. Both GHG accounting and the TCFD

framework will inform governing documents and procedures going

forward.

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

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

systematically to prevent health ailments, 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 nd green substitutes and to consider whether

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

prole. Moreover, BEWI oers training with active participation of

employees to establish good routines to prevent employees against

incidents at work with possible hazards. 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 qualied 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 market the group as an attractive

employer. BEWI has a group sta function for human resources (HR),

including an HR Director responsible for group culture, values and pro-

cesses to secure management development and succession planning.

4949

Human rights

There is always a risk of discrimination

against human rights and that labor

legislation is not complied with. In

BEWI’s case, the risk of human rights

violations is greatest in the supplier

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 always 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 eective and fair competition in the society. BEWIs

anti-corruption policy describes its zero tolerance to bribery and cor-

ruption and BEWIs whistleblowing system enables internal and external

stakeholders to report suspicions of misconduct. To enhance the

organisations competency on ethical conduct, general managers have

been given training on anti-corruption and the group`s gift and event

policy. The training will be conducted annually.

5050

Corporate governance in BEWI ASA

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

governance strengthens the condence 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 gov-

ernance principles for the company, latest revised on

3 June 2021. In addition, the board has implemented

two comprehensive policy documents related to

corporate governance: (1) Policy on handling of

inside information and other disclosure obligations,

revised on 9 December 2021, and (2) Information

policy, revised on 3 June 2021. The Information policy

describes the company’s spokespeople, including

regulating the interaction between the shareholders,

the board, and the Chief Executive Ocer (the CEO).

The policy is 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 governance 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 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 specic recom-

mendations.

BEWI provides an annual statement of its adherence

to corporate governance.

Deviations from the Code: None

5151

Governance structure

Norway

Legal

Benelux

Procurement

Denmark

M&A

RAW

Sweden

Sustainability

Portugal

Human resources

Finland

IR and

Communications

Chief executive ocer

(CEO)

Board of directorsAudit committee

Remuneration

committee

General meeting

Nomination

committee

Chief nancial ocer

(CFO)

Chief operating ocer

(COO)

Circular

Business units

Group functions

Group management

Executive management

Shareholders

5252

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 cus-

tomer 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

nance.”

The board has dened clear objectives and strategic

priorities for the company, including both long-term

nancial 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 dened ambitions for the group

leading towards 2030.

The board of BEWI 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 eorts. Further, the group has

established a separate policy on anti-corruption, and

whistleblowing guidelines.

Vision, Mission, and core values

In 2020, BEWI adopted a new Vision for its business:

“Protecting people and goods for a better everyday.”

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

by oering sustainable packaging, components and

insulation solutions in innovative and ecient 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

• Focus on 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 prole, thereby

ensuring that there is an appropriate balance

between equity and other sources of nancing. The

board will continuously assess the company’s capital

requirements related to the company’s strategy and

risk prole.

On 30 September 2021, BEWI hosted a Capital

Markets Update, and launched its updated nancial

targets and ambitions as follows:

• Double revenues and more than double

adjusted EBITDA

• Leverage of NIBD/ EBITDA below 2.5x

(LTM excl. IFRS 16)

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

of net prot

• 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

prot after tax as dividends. When deciding on the

annual dividend, the board will consider the compa-

ny’s nancial position, investment plans as well as the

needed nancial exibility for strategic growth.

In 2021, BEWI distributed dividends of NOK 0.42 per

share based on the annual accounts for 2020.

For the nancial year of 2021, the board proposes to

the annual general meeting to distribute dividends of

NOK 1.10 per share.

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 2021, the board of BEWI had three

authorisations:

1. Authorisation to increase the share capital by up

to NOK 31095602 to strengthen the equity of the

company, nance future growth, acquisitions, and

other purposes.

2. Authorisation to increase the share capital by up to

NOK 4318310 in connection with the company’s

option program and share program

3. Authorisation to acquire own shares up to a

nominal value of 15547801 (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 acqui-

sitions.

5353

All authorisations are valid until the annual general

meeting in 2022, however expiring on 30 June 2022

at the latest.

Deviations from the Code: None.

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 comply with the procedures set out in the

Norwegian Public Limited Liability Companies Act.

Trading own shares

Any transactions the company carries out in its

own shares will be carried out through the stock

exchange, and in any case at prevailing stock

exchange prices. If there is limited liquidity in the

company’s shares, BEWI will consider other ways to

ensure equal treatment of its shareholders.

The board shall arrange for a valuation to be

obtained from an independent third party unless

the transaction, agreement or arrangement in

question is considered immaterial. Board members

and members of the executive management team

shall immediately notify the board if they have any

material direct or indirect interest in any transaction

entered by the company.

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,

including through electronic communication, in a

period prior to the general meeting. The right to par-

ticipate and vote at the general meeting may only be

exercised when the acquisition is entered in the VPS

the fth 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 information about resolutions and that

supporting information is suciently 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

individual matter possible.

The annual general meeting (AGM) is held each year

no later than six months after expiry of the preceding

nancial 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, the AGM is scheduled to be held on 2 June

2022.

Deviations from the Code: None

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

5454

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 any signicant business partners,

that at least two of the directors should be independ-

ent of the company’s principal shareholder.

The extraordinary general meeting of BEWI ASA on

21 August 2020, which was held prior to the compa-

ny’s listing at the Oslo Børs, elected Liv Malvik as chair

for the nomination committee, and Gunnar Syvertsen

and Roar Husby as members. The same meeting

approved instructions for the nomination committee.

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 is

a member of the nomination committee to secure

independence and impartiality of the board. At the

same 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.

Deviations from the Code: None

8. Board of directors: composition

and independence

Composition of the board

According to article 5 of the BEWI’s articles of

associations, 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 is 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 ve members, both

sexes should be represented by at least two members.

As of 31 December 2021, the Board of BEWI ASA

consists of ve 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 and

background is included in a separate section of this

annual report and is also available from the compa-

ny’s website www.bewi.com.

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 associates and all

the board members are independent of the com-

pany’s senior executives. Two of the members are

independent of the company’s major shareholders.

Deviations from the Code: None

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

3 June 2021.

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 eective

and correct manner.

The members of the board receive information

about the company’s operational and nancial

development monthly. The company’s strategies

5555

shall regularly 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 conict 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 nancial 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 prociency and at least one member

must be independent of the company’s business.

The audit committee is appointed by the board and

is independent of the executive management of the

company.

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 nancial reporting

and any other issues that the board may assign to the

committee.

The board revised and approved instructions to the

audit committee on 3 June 2021. As of 31 December

2021, the audit committee in BEWI consists of Kristina

Schauman (chair) and Stig Wærnes.

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 3 June 2021. 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 rela-

tion to the board’s approval of the annual report,

including the nancial statements and board of direc-

tor’s report, where the risks are further described.

Dierent 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 nancial reporting is achieved

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

supervision by the company’s audit committee.

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 nancial reporting.

The board has approved routines for internal control

and risk management.

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.

5656

The board’s remuneration was approved on the

company’s annual general meeting on 3 June

2021, 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 the audit committee and in the remunera-

tion committee is compensated in addition to the

remuneration received for board membership.

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

benets 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

report are included in the company’s annual report.

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

benets payable to the CEO. The salary and benets

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 nancial 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.

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 nancial

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 nancial media, ana-

lysts, and investors and not comment on any nancial

development.

Restricted trading periods

Persons dened 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 nancial 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 rst half year. BEWI

publishes a nancial 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

5757

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 sucient infor-

mation and time to assess the oer.

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 aect 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 conrmation 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 specically

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 nancial advisor to

the company provided that such use of the auditor

does not have the ability to aect or question the

auditors’ independence and objectiveness as auditor

for the company. The audit committee shall approve

any agreements in respect of such counselling

assignments.

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 remu-

neration associated with other specic assignments.

The board shall arrange for the auditor to attend all

general meetings.

The auditor for BEWI ASA is PWC.

Deviations from the Code: None

5858

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

benets, 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. The total compensation level

targets at attracting and retaining executives, and to

maintain a compensation level which for each indi-

vidual 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. Executives have 6 months period of

notice.

2.5 Other types of remuneration

Executives may receive benets 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 nancial- and operational

targets. The variable pay programme is based on

dened and measurable criteria, including nancial

targets and targets linked to strategic priorities.

5959

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 prot 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 nancial 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.

Instructions for the remuneration committee was

adopted at the board meeting on 3 June 2021 and

the committee was established during the second

half of 2021. In total, the variable pay programme

resulted in 74 per cent of the maximum for the CEO

and executive management.

On 19 November 2021, the rst 20 per cent of the

options granted became available for the participants

with an exercise window set for 24 February until

2 March 2022.

The notes to the nancial statements for the nancial

year of 2021, includes an overview of the remunera-

tion to the executive management.

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 specic 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.

6060

Board of directors’ report 

BEWI continues to demonstrate solid growth, recording revenues of EUR 748 million

for the full year of 2021, representing 62 per cent growth over 2020, and posting an

adjusted EBITDA of 109 million euro, up from 65 million euro for 2020. The positive

development is mainly explained by continued strong demand in the company’s

markets.

2021 was, like 2020, marked by the covid-19 pandemic, as well as signicant price

increases for raw materials, cost ination and shortage of various components. Still,

BEWI managed to deliver record-high results, following well run operations and

close customer relations. In addition, the organisation completed a record-high

number of transactions in line with the group strategy.

Through the acquisition of Honeycomb, BEWI broadened its portfolio within

protective packaging, oering its customers complementary and sustainable

alternatives. The IZOBLOK-acquisition provides the group with a leading position

in the market for EPP components to the automotive industry. By acquiring the

Belgian insulation company Kemisol, the group expands its geographic presence,

while the announced transformative acquisition of Jackon, yet to be formally closed,

signicantly strengthens the group’s market positions. The circular business was

also signicantly expanded in 2021, with the acquisition of Volker Gruppe, and the

minority stake of Inoplast, in addition to the investments in advanced recycling

technology in Canada and the new recycling hub in Stockholm. To mention a

few. On top of this, BEWI renanced in 2021, establishing a new nance framework

including sustainability-linked bonds of EUR 250 million.

Going into 2022, BEWI has experienced a continued stable or strong demand

in its key markets. EPS prices have remained at high levels, also implying a high

GAP. Backed by a strong nancial platform, the group’s integrated and diversied

business model provides BEWI with robust results, including a strong cash ow,

enabling the group to continue to consolidate the industry and pursue attractive

growth opportunities.

6161

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 2021, the

group had a total of 41 production facilities in ten

countries (excluding minority interests): 6 in Norway,

6 in Sweden, 4 in Finland, 8 in Denmark, 7 in the

Netherlands, 2 in Belgium, 3 in Portugal, 3 in Poland,

1 in Germany and 1 in the United Kingdom. In addi-

tion, the group has 6 warehouses in Norway, several

sales- and administrative oces in the mentioned

countries, as well as minority interests in another

17 facilities in Germany (6), France (6), the United

Kingdom, (3) Czechia (1), and Poland (1).

BEWI’s business is organised in four business seg-

ments: Segment RAW, segment Insulation, segment

Packaging & Components (P&C), and segment

Circular.

Segment RAW develops and produces the raw

material white and grey expanded polystyrene,

known as EPS beads or Styrofoam, as well as Biofoam,

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

sold both internally and externally for production of

end products.

Segment Insulation develops and manufactures

an extensive range of insulation products for the

construction industry. The products are primarily

composed of EPS and XPS. BEWI is one of the larger

European manufacturers of EPS-based insulation

solutions.

Segment P&C develops, manufactures, and distrib-

utes standard and customised packaging solutions

and technical components for customers in many

industrial sectors. Examples include EPS boxes for

transportation of fresh sh and other food, protective

packaging for pharmaceuticals and electronics, re-us-

able plastic boxes and components for the car and

HVAC industry. The material is composed primarily of

EPS, EPP, paper/ bre and fabricated foam.

Segment Circular is responsible for the group’s collec-

tion and recycling of EPS.

A further description of each business segments is

presented under the section “Segment information”.

Vision, mission, and values

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

better everyday.

This means taking responsibility and adapting the

group’s business to tomorrow’s expectations. 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 and lead the change towards a circular

economy.

BEWI’s mission is: To create value by oering sustaina-

ble packaging, components, and insulation solutions

in innovative and ecient 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 Co

-ecient

provider of packaging, components, and insulation

solutions and being the rst company in its indus-

try to close the loop

• Protable growth through organic initiatives and

M&A opportunities targeting increased recycling

capacity, geographic expansion, strengthening of

market positions and broadening of the company’s

product oering, in particular within complemen-

tary materials

Markets and customers

BEWI serves a wide range of end markets by oering

safe, ecient, and sustainable solutions. 45 to 50 per

cent of the group’s net sales are from building and

construction, including sales of raw materials to this

industry. Further, food packaging accounts for 25 to

30 per cent, the automotive industry 5 to 10 per cent

and other packaging and components 20 to 25 per

cent.

As mentioned above, the group has production

facilities in twelve countries. However, the group

has sales income from more than 20 countries. The

group’s diversied and integrated business model has

proven robust. Both, during 2020 and 2021 when the

6262

level of impact from the covid-19 pandemic varied

across regions and end-markets, but also when raw

material prices are volatile. The raw material prices

were signicantly higher in 2021 than in 2020, leading

to higher sales prices and consequently net sales for

all segments. The high raw material prices positively

impacted the protability for the upstream segment

RAW, while putting pressure on margins in the

group’s two downstream segments.

As a result of the group’s diversied end-market

exposure, general economic growth across the

group’s relevant geographic markets is a key growth

indicator for the group. While the group is exposed

to most of Europe, most of its business is conducted

in Western- and Northern European countries. The

demand for cellular foam continues to grow due

to its unique properties and versatility making it

relevant for a wide range of applications. This trend

is driven by its attractive value proposition of being

lightweight, durable, versatile, cost ecient and

recyclable.

Important events in 2021

Signicant increase in raw material prices

From mid-February 2021, the price of the raw material

for EPS, Styrene, recorded the steepest increase

ever seen. Following a force majeure incident at the

largest styrene plant in Europe, prices increased by

around 50 per cent in one week. In combination with

other events, this led to extreme price development

for Styrene in Europe. Further, this led to most of the

EPS raw material producers minimizing their styrene

purchase, both due to the limited availability and the

extreme prices, which again led to a shortage of EPS

as raw material. Combined with increased demand

for EPS-based products, this resulted in signicant

increase in the price of the EPS raw material (beads)

and consequently the GAP, i.e., the gross prot for EPS

beads.

For BEWI, the group’s integrated business model,

combined with a robust procurement strategy, has

proven as a competitive advantage throughout the

year. The upstream segment, RAW, has beneted

from the high GAP, while the downstream segments

have had somewhat lower margins.

Private placement and sustainability

linked renancing

On 6 May 2021, BEWI completed a private placement

raising gross proceeds of NOK 200 million by issuance

of 7067138 new shares at NOK 28.30 per share. The

net proceeds were primarily used to nance the

acquisition of IZOBLOK, as well as maintaining a solid

nancial position.

Combined with the private placement, existing

shares for an aggregated amount of NOK 50 million

were sold by the company’s second largest share-

holder Verdane Capital.

In August 2021, BEWI completed a renancing of its

two existing bond loans and credit facility, enabling

the company to pursue further growth opportunities.

The company established a Sustainable Finance

Framework, covering the entire renancing, including

both green and sustainability-Linked features.

BEWI’s wholly owned subsidiary, BEWiSynbra Group

AB, received approval from the holders of its two

bond loans with maturity in 2022 and 2023 to

renance before the maturity dates. The company

issued a new senior unsecured oating rate sustaina-

bility-linked bonds in an amount of EUR 160000000

under a framework of EUR 250 million due in

September 2026. The interest rate of the new bonds

is EURIBOR 3m + 3.15 per cent.

Further, in November, BEWI carried out a EUR 90

million tap issue under the existing bond framework.

The net proceeds from the tap issue will be used for

general corporate purposes, including nancing of

the acquisition of the shares in Jackon Holding AS

subject to completion.

The bonds are listed on the Sustainability bond list at

Nasdaq Stockholm.

Circular investments

In 2020, BEWI invested in a greeneld recycling

project in Portugal, including a new extrusion

production line. The production at the new facility

commenced in the fourth quarter of 2020, and

the produced volumes ramped up during the rst

quarter of 2021. Circular Portugal was fully commer-

cialized during the second quarter of 2021.

In March, the group announced its acquisition of a

34 per cent interest of the Czech recycling company

Inoplast. Inoplast specialises in recycling of plastics,

mainly expanded polystyrene (EPS), but also other

types of plastics. Through the acquisition, BEWI

added another 5000 to 6000 tonnes to its recycling

capacity. Inoplast has modern and versatile machin-

ery, allowing for recycling of various plastic waste.

BEWI also has an option to acquire the remaining 66

per cent of the Inoplast shares.

In June, BEWI announced its investment in

Polystyvert Inc., for development and commer-

cialisation of dissolution technology for recycling

of expanded polystyrene (EPS). Polystyvert, has a

demo-site at which proof of concept studies for the

technology has been successfully completed, and is

planning to set up a full-scale project, both located

in Montreal, Canada. The dissolution technology

allows for more contaminated feedstock to be used

in the recycling process, compared to the more

traditional mechanical recycling used by BEWI today.

6363

The technology could therefore be complementary

to the current, resulting in increased volumes of

recycled materials.

In October, BEWI acquired 51 per cent of the

UK based company Volker Gruppe, a trader of

compacted and recycled material. The company

compacts material, and leases compactors to cus-

tomers. Volker Gruppe is one of the largest suppliers

of EPS waste to BEWI Circular, with an annual collec-

tion of approximately 6000 tonnes of EPS, in addition

to several other types of waste streams.

Organic growth initiatives and

investment programmes

In BEWI, growth remains a high priority. The group

continuously has several ongoing organic growth

initiatives, as well as a strong pipeline of M&A oppor-

tunities.

During 2021, the group had the following investment

programmes:

Packaging & Components Norway

In 2021, BEWI established a new sh 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,

however at limited volumes due to delay in start-up

of production at the customer’s new processing

facility InnovaNor.

In March 2021, BEWI announced that the company

is planning to build a new packaging facility on the

Jøsnøya island, Hitra, on the west coast of central

Norway. The new facility will be BEWI’s most modern

and ecient facility for production of sh boxes. In

addition, the new facility will be equipped to serve

the increasing volumes of reusable boxes and reusa-

ble pallets and be a warehouse and logistics hub for

the other types of packaging products. The company

has signed a letter of intent with KMC Properties ASA,

who owns the land where the facility will be built

and is responsible for the development project.

The packaging facility at Hitra will serve current

customers and contracts, as well as position BEWI for

future deliveries to the sh farming industry.

In addition to the two new sh box facilities, BEWI

invested in new technology at its facility in Stjørdal

to produce moulded components under a supply

agreement with a new customer in the energy sector.

Production commenced towards the end of the

second quarter 2021.

Insulation Sweden

In 2020, BEWI announced its acquisition of an

insulation facility in Norrköping Sweden, as well as

investments in technology and machinery at the

facility, including modern extrusion technology

improving production capacity and eciency.

The investments were completed in 2020 and 2021,

although somewhat delayed, causing extra costs in

2021.

New extruder in Etten-Leur

Investments into a new twin screw extrusion line

at the RAW production site in Etten-Leur started in

the fourth quarter of 2021. The new extrusion line

increases the production capacity of recycled grades

and grey products, and production is expected to

start in 2023.

ICT

BEWI has started implementation of a new modern

ERP system. Blueprints were developed during 2021

and the system will be implemented gradually

throughout the group’s segments and operating

units. The rst roll-out of the system will be done

during the second quarter of 2022 for segment RAW,

while the second roll-out will be decided by the

subsidiaries of the company, based on clearly identi-

ed benets.

Acquisitions

During 2021, the BEWI group completed several

acquisitions, all in line with the group’s strategic

priorities as referred to above, targeting growth and

strengthening of the group’s circular activities.

Acquisition of Danish paper packaging

company Honeycomb Cellpack

On 13 April 2021, BEWI acquired 51 per cent of the

Danish paper packaging company Honeycomb

Cellpack A/S (“Honeycomb”), now named BEWI

Cellpack. Honeycomb provides protective packag-

ing solutions, including design, development and

manufacturing of sustainable packaging which is

recyclable and biodegradable. Through the acqui-

sition, BEWI broadened its product oering, in line

with its strategy to provide its customers with com-

plementary solutions.

Acquisition of Polish automotive

components company IZOBLOK

On 28 April 2021, BEWI entered into an agreement to

acquire 54.66 per cent of the shares, corresponding

to 66.00 per cent of the listed Polish company

IZOBLOK. The total consideration was approximately

EUR 16.5 million, of which approximately EUR 13.5

million was paid in cash and the remaining settled

through issuance of 1132792 new shares in BEWI

ASA directed towards the majority seller in the trans-

action a subscription price of NOK 27.50 per share.

The transaction was closed early July 2021.

Further, on 2 November, BEWI launched a tender

oer for the acquisition of the remaining 45.34 per

cent of the outstanding shares in IZOBLOK for a price

per share of PLN 50.41. The tender oer expired on

28 January 2022, upon which 121870 shares were

6464

acquired. Following the transaction, BEWI (indirectly)

owns 64.28 per cent of the shares, corresponding to

73.21 per cent of the voting rights in IZOBLOK.

IZOBLOK is a leading European provider of Expanded

Polypropylene (EPP) components to the automotive

industry, with a market share of approximately 20

per cent. The company has a growing portfolio of

blue-chip clients, such as Volkswagen Group, Jaguar

Land Rover, BMW, Hyundai, and Ford. The acquisition

conrms BEWI’s strategy to strengthen its market

position in the automotive industry, a market that has

shown considerable growth pre-Covid.

IZOBLOK has four facilities at strategic locations with

developed infrastructure ensuring eective access

to customers across Europe, of which three are in

Poland and one in Germany.

For the full year of 2021, IZOBLOK recorded revenues

of EUR 36.1 million and an adjusted EBITDA of nega-

tive EUR 1.1 million. The revenues and EBITDA were

negatively impacted in both 2020 and 2021 by the

covid-19 pandemic and the shortage of electronic

components.

Oer to acquire all shares in Jackon Holding

In October 2021, BEWI received acceptance from all

shareholders on its oer for the acquisition of the

Norwegian family-owned packaging and insulation

company Jackon Holding. Jackon and BEWI are the

two largest integrated providers of EPS in Europe,

and the two companies complement each other very

well.

The Akselsen family, holding 50 per cent of the

shares through their investment company HAAS

AS, accepted to receive consideration in the form of

shares, subject to a 12-months lock-up. The share-

holders holding the remaining 50 per cent accepted

to receive cash.

The oer reected an enterprise value on a cash and

debt free basis and with an agreed level of working

capital of Jackon of NOK 3350 million. BEWI expects

synergies from the transaction of at least EUR 12 to 15

million.

For the full year 2021, Jackon had revenues of EUR

398.0 million, compared to EUR 293.9 million for the

full year of 2020, and recorded an EBITDA of EUR 43.5

million, up from EUR 32.9 million for 2020 (unaudited

NGAAP, converted from NOK to EUR using 0.98).

Jackon had approximately 925 employees on

31 December 2021 and 22 facilities in Norway,

Sweden, Finland, Denmark, Germany, and Belgium.

Completion of the transaction, subject to customary

closing conditions, including regulatory approvals, is

expected during the rst half of 2022.

Acquisition of the Belgian insulation company Kemisol

On 29 October, BEWI announced the acquisition of

100 per cent of the shares of the Belgian insulation

company Kemisol Group, for a total consideration of

approximately EUR 30 million, excluding net cash.

The consideration was paid in cash in connection

with the closing of the transaction in November.

Kemisol primarily operates in the Benelux region and

is one of the largest producers of EPS in Belgium,

oering a wide range of products. The company

recorded revenues of EUR 33.9 million for the full year

of 2021, up from EUR 24.7 for 2020, representing an

increase of 37 cent. EBITDA came in at EUR 6.1 million

for 2021, up from EUR 4.5 million for 2020.

Divestment of plastics company Biobe

On 20 December 2021, BEWI announced that it had

divested the plastics company Biobe AS to BE Form

Holding AS, a company wholly owned by BEWI Invest

AS, the majority owner of BEWI. Biobe was divested

on similar terms as it was acquired in 2020. For more

information see note 9 to the accounts.

Other acquisitions

In addition to the above-mentioned transactions,

BEWI completed several smaller acquisitions in 2021.

This included all shares in Oasis Global II AS, Norway,

and North Pack ApS, Denmark in July, both trading

packaging products for the aquaculture industry.

The acquisitions were a continuation of the BDH

acquisition in 2020. Further, the group acquired all

shares in Desom Group in October, consisting of

Desom AS, Norway, and Embanor AS, Norway. The

two companies are also trading packaging products

for sh, meat, and dairy products, and are a comple-

ment to the BDH business acquired in 2020.

Financial review

All amounts in brackets are comparative gures for 2020

unless otherwise specically stated.

The following nancial review is based on the con-

solidated nancial 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 ow, the balance sheet and the accom-

panying notes provide satisfactory information about

the operations, nancial results and position of the

group and the parent company on 31 December 2021.

Consolidated statement of income

Net sales increased to EUR 748.2 million for 2021

(462.6), corresponding to an increase of 61.8 per cent.

The increase was 19.2 per cent driven by acquisitions,

and 41.0 per cent was organic growth. All segments

6565

recorded higher volumes in 2021 than 2020. In

addition, signicant price increases have been

implemented to compensate for the increased raw

material prices.

Adjusted EBITDA increased by 67.8 per cent to EUR

109.0 million for 2021 (65.0). 12.3 per cent of the

increase related to acquisitions, while most of the

organic increase related to the improved styrene gross

margin (GAP), driven by a strong underlying demand.

The strong GAP positively impacted segment RAW,

while putting pressure on the two downstream seg-

ments, Insulation and Packaging & Components.

Operating income (EBIT) came in at EUR 67.8 million

for 2021 (39.5).

Net nancial items ended at a negative EUR 18.8

million for the year (-7.2). The year was negatively

impacted by costs related to the renancing in

September of EUR 5.6 million. Fair value adjustments

of shares had a negative impact of EUR 0.6 million,

whereas last year noted a EUR 3.9 million positive

impact from such revaluations.

Taxes amounted to a negative EUR 14.6 million for

the year (2.3). The eective tax rate was negatively

impacted by costs incurred in connection with the

renancing.

Net prot for 2021 was EUR 34.4 million (30.0).

Financial position and liquidity

Consolidated nancial position

Total assets amounted to EUR 785.7 million on

31 December 2021, up from EUR 543.1 million at year-

end 2020. The increase is mainly related to acquired

companies and the additional EUR 90 million bond

issue in November.

Total equity amounted to EUR 262.2 million on

31 December 2021, corresponding to an equity rate

of 33.4 per cent, compared to EUR 195.1 million at

year-end 2020.

Net debt amounted to EUR 196.4 million on

31 December 2021 (120.3 excluding IFRS 16), com-

pared to EUR 170.2 million at the end of December

2020 (91.7 excluding IFRS 16).

Cash and cash equivalents were EUR 142.3 million on

31 December 2021, compared to EUR 51.4 million at

year-end 2020.

Consolidated cash ow

Cash ow from operating activities amounted to EUR

67.4 million for 2021 (33.2), including an increase in

working capital of EUR 6.8 million (increase of 3.4).

Cash ow from change in working capital came in

slightly negative for the year, explained by higher

prices, impacting both inventory and accounts

receivable. A similar eect in accounts payable did

not fully oset that.

For the full-year, cash ow from investing activities

amounted to a negative EUR 85.9 million (2.7). Capital

expenditures were higher than last year, driven by

expansion related investments, as further elaborated

below. Cash outow from business acquisitions was

also higher, largely attributable to the acquisitions of

IZOBLOK and Kemisol in the second half of the year.

Last year noted a substantial positive cash inow

from several sale and leaseback transactions. In 2021,

cash ow from divestments was mainly attributable

to the sale of Biobe in the fourth quarter.

Cash ow from nancing activities amounted to

a positive EUR 107.3 million for the full year 2021

(-40.7), mainly explained by the bond renancing in

September and the following tap in November. In

total, bond loans of a total of EUR 250 million was

issued, whereas EUR 140.0 million was redeemed,

giving rise to a positive eect of EUR 105.4 million,

net of transaction costs amounting to EUR 4.2 million

related to the early bond redemptions.

Transactions with shareholders resulted in a net

positive cash inow, with EUR 18.9 million added

through a new share issue, partly oset by the EUR

6.4 million dividend paid. Cash outow from renanc-

ing of acquired companies was modest during the

year, while 2020 noted a substantially higher outow

from such transactions.

In total, the cash ow for 2021 amounted to EUR 89.2

million, compared to a negative cash ow for 2020 of

EUR 4.8 million.

Capital expenditures

For the full year of 2021, CAPEX amounted to EUR

34.7 million (26.6), of which EUR 17.0 million related to

greeneld projects, customer specic investments,

a new extrusion line in Etten-Leur and investments

into the new ERP system. For further information

about the company’s investment programmes, see

section above about organic growth initiatives and

investment programmes.

At the company’s Capital Markets Update in

September 2021, BEWI announced a target of annual

investments equal to 2.5 per cent of net sales exclud-

ing greeneld, customer specic initiatives and ICT

investments. Excluding above mentioned initiatives,

investments for 2021 ended in line with this target.

6666

Segment information

Segment RAW

Segment RAW develops and produces white and

grey expanded polystyrene, known as EPS beads

or Styrofoam, as well as Biofoam, a fully bio-based

particle foam. The raw material is sold both internally

and externally for production of end products. After

expanding and extruding the beads, the material

can be moulded or otherwise processed into several

dierent end products and areas of application. BEWI

produces raw material at two facilities, one in Finland

(Porvoo) and one in the Netherlands (Etten-Leur).

The group has an annual capacity of approximately

200000 tonnes EPS.

Key gures

Amounts in million EUR

(except percentage) 2021 2020

Net sales 347.9 191.2

Of which internal 104.6 56.5

Of which external 243.3 134.7

Net operating expenses -293.9 -181.8

Adjusted EBITDA 54.1 9.4

Adjusted EBITDA % 15.5% 4.9%

Items aecting comparability 0.1 0.5

EBITDA 54.2 9.9

Depreciations -4.2 -3.7

For the full year 2021, net sales came in at EUR 347.9

million (191.2) for segment RAW, up by 82.0 per cent

from last year, mainly explained by increased sales

prices, but also from higher volumes.

Adjusted EBITDA ended at EUR 54.1 million in

2021 (9.4). The improvement derives from a strong

underlying market demand, and consequently a

strengthened GAP (i.e., styrene gross prot), in addi-

tion to higher volumes.

Segment Insulation

Segment Insulation develops and manufactures

an extensive range of insulation products for the

construction industry. The products are primarily

composed of EPS and XPS. BEWI is one of the larger

European manufacturers of EPS-based insulation

products, and the Benelux is the main market repre-

senting around 50 per cent of total sales within the

business area. BEWI has 15 facilities in 7 countries

producing insulation products. In addition, BEWI has

minority interests in 6 facilities in France, 6 facilities in

Germany and 1 in the UK.

Most of the insulation products are used for foun-

dations and a smaller part for walls and ceilings.

Measures for greater energy eciency are important

drivers of demand in the European construction

market. Eective insulation for walls, ceilings and

oors are the most cost-ecient way of achieving

greater energy eciency and reducing greenhouse

gas emissions.

Insulation markets are mostly local. The degree of

product specialization varies greatly among dierent

countries and markets. Around 70 per cent of the

insulation material is used for new construction and

the remainder for renovations.

Key gures

Amounts in million EUR

(except percentage) 2021 2020

Net sales 195.4 146.6

Of which internal 2.8 2.4

Of which external 192.7 144.1

Net operating expenses -173.9 -120.1

Adjusted EBITDA 21.6 26.5

Adjusted EBITDA % 11.0% 18.1%

Items aecting comparability 0.9 5.9

EBITDA 22.5 32.4

Depreciations -7.9 -7.4

Net sales amounted to EUR 195.4 million for the full

year of 2021 (146.6), an increase of 33.3 per cent. Of

this, 20.3 per cent was organic growth driven by

higher volumes in all regions, except Sweden, and

increased sales prices related to the higher cost of

raw material.

Adjusted EBITDA amounted to EUR 21.6 million (26.5).

The lower EBITDA margin is mainly explained by the

historically high raw material prices putting pressure

on margins. The margins were mostly aected in

the Scandinavian region, where markets are more

commoditised. Challenges related to the new pro-

duction line in Norrköping, Sweden, impacted the

result negatively throughout the year.

From 1 December 2021, the nancial results for the

insulation company Kemisol were consolidated into

BEWI’s accounts. For details on the contribution

from Kemisol, see notes to the accounts on Business

Combinations.

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 EPS, expanded polypropylene

(EPP), fabricated foam, carboard, ber (paper), as well

as other materials, enabling a broad product oering.

Examples include boxes and bags for transportation

of fresh sh and other food, protective packaging for

pharmaceuticals and electronics, and components

for cars and heating systems. BEWI is one of the

world’s largest suppliers of sh boxes to the salmon

farming industry in Norway, the world’s largest

exporter of fresh salmon, and to the industry for wild

caught sh in Portugal.

BEWI has 24 facilities in 7 countries producing P&C

components. Also, the Group has minority interests

in 2 facilities in the UK.

6767

Key gures

Amounts in million EUR

(except percentage) 2021 2020

Net sales 295.6 179.9

Of which internal 6.9 2.3

Of which external 288.7 177.6

Net operating expenses -255.3 -145.8

Adjusted EBITDA 40.3 34.1

Adjusted EBITDA % 13.6% 19.0%

Items aecting comparability -0.4 2.1

EBITDA 39.9 36.2

Depreciations -16.6 -12.3

For segment Packaging & Components, net sales

amounted to EUR 295.6 million for 2021 (179.9), an

increase of 64.3 per cent. Excluding acquisitions,

sales increased by 26.5 per cent explained by higher

volumes and increased sales prices in all regions.

Adjusted EBITDA amounted to EUR 40.3 million

for the year (34.1), up by 18.0 per cent. Excluding

acquisitions and currency eects, adjusted EBITDA

decreased by 0.7 per cent explained by pressure on

margins from the high raw material prices, in addi-

tion to increased energy prices, product mix (more

trading operation) and the negative contribution

from the automotive business, including IZOBLOK,

which was consolidated into BEWI’s accounts from

1 July 2021. For details on the contribution from

IZOBLOK, see notes to the accounts on Business

Combinations.

Circular

Segment Circular is responsible for the group’s collec-

tion 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 the end

of 2021, the group had access to a recycling capacity

of approximately 20000 tonnes, including owned

facilities, minority interests and partnerships, and

a collection run-rate at year end of approximately

23000 tonnes.

BEWI has announced an annual target of recycling

60000 tonnes of EPS. The number refers to approxi-

mately one-third of BEWI’s annual production, which

is the volume BEWI puts into the end markets with

a lifetime less than one year. The other two-thirds of

the volume are used in products with a lifetime of

more than one year, i.e., bike helmets, car compo-

nents, insulation in buildings and similar.

For further information on investments in circular

activities, see section above called circular invest-

ments.

Key gures

Amounts in million EUR

(except percentage) 2021 2020

Net sales 24.0 6.3

Of which internal 0.6 0.2

Of which external 23.4 6.1

Net operating expenses -23.4 -7.6

Adjusted EBITDA 0.6 -1.2

Adjusted EBITDA % 2.5% -19.5%

Items aecting comparability -0.3 -0.1

EBITDA 0.3 -1.3

Depreciations -1.0 -0.4

BEWI started reporting for segment Circular from the

third quarter of 2021. For the full year 2021, net sales

for the segment came in at EUR 24.0 million (6.3), up

by 279.7 per cent from 2020. Excluding acquisitions

net sales increased by 230.1 per cent, explained by

higher volumes and increased sales prices following

signicant increase in the virgin raw material prices

throughout the year.

Adjusted EBITDA ended at EUR 0.6 million for the year

(-1.2), whereas the improvement primarily relates to

higher volumes and increased prices as mentioned

above. Limited feedstock, i.e., the input/ raw material

for segment Circular, has been challenging and for

the feedstock increased towards the end of the year,

putting pressure on margins.

Corporate

Revenues and costs related to group functions that

do not belong to any specic business segment are

booked as unallocated. This includes costs related to

the group’s business development and other group

functions.

For the full year of 2021, the contribution from corpo-

rate costs was negative EUR 7.6 million (-3.9).

Research and development (R&D)

BEWI has three strategic priorities, of which inno-

vation - in search for more sustainable materials,

products, solutions, and production processes – is

one priority. The group’s program for research and

development (R&D) is conducted in Porvoo, Finland

and Etten-Leur, the Netherlands, where the group

has its upstream facilities, i.e., the production of

raw materials. Product development occurs in part

based on proprietary technology and in part through

purchased licenses and external agreements.

Going concern

The annual nancial statements for 2021 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 nancial position, as well as forecasts for the

years ahead, the conditions required for continuation

as a going concern are hereby conrmed to exist.

6868

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

nancial position is good.

Parent company results and

allocation of net prot

The nancial 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 prot before taxes of

NOK 40.9 million (a prot of NOK 3.3 million). The

parent company had payable taxes of NOK 7.6 million

(NOK 0.0 million) and thus recorded a net prot of

NOK 33.3 million (net prot of NOK 3.3 million).

The board proposes a dividend of NOK 1.10 per share,

corresponding to the following allocation of the net

prot of NOK 33.3 million for the parent company,

based on 156610804 shares outstanding:

Amounts in million NOK

Transferred to other equity -139.0

Dividend 172.3

Total allocated 33.3

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 nancial 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 Nordic

currencies. The price of the nal product to end cus-

tomers in the Nordic countries is largely connected

to the price of styrene, thus entailing a reduction of

currency risk.

In 2018, the European Commission initiated an inves-

tigation into possible anti-competitive behaviour

in relation to styrene monomer purchasing. As part

of the investigation, the European Commission has

sent Synbra Technology B.V. (a company acquired by

BEWiSynbra in 2018 as part of the acquisition of the

Synbra Group) a request for information in relation

to 2013 and 2014. No formal charges or allegations

have been brought against BEWiSynbra or any of its

subsidiaries.

A detailed description of the nancial risks and

uncertainty factors can be found in the notes to the

nancial 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 benet 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

2021 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 sustainability report

is included in this annual report, which has been

prepared with reference 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 2021. The report aligns

with the company’s nancial 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, rst and

foremost, by producing a variety of sustainable

products and solutions that support the customers’

sustainability strategies.

BEWI’s license to operate rests on condence from

its key stakeholders. All employees are therefore

required to comply with the group’s code of conduct

to ensure maintenance of high ethical standards in

6969

its business concept and relations with customers,

suppliers, and employees.

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 2021, the

BEWI group had 2097 employees, up from 1438 on

31 December 2020. The increase is mainly related to

acquired companies. The group had an average work

force of 1662 full time equivalents (FTEs) in 2021,

compared to an average of 1378 in 2020. The head-

quarter is at the island Frøya, Norway, with a total of

41 production facilities in Norway, Sweden, Finland,

Denmark, the Netherlands, Portugal, Belgium, Poland,

Germany, and the UK.

Long-term incentive programme

and employee share oering

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. Further, 30 per cent will vest

two years after the day of grant and the remaining

50 per cent vest three years after the day of grant

(vesting is dependent on the option holder still being

employed in the company). The exercise price for all

options granted is NOK 24.06 per share, which was

based on the market price plus 10 per cent when

granted. Options that are not exercised within 5 years

from the date of grant will lapse and become void.

On 31 December 2021, a total of 2762000 options

were outstanding, corresponding to 1.8 per cent

of the total number of outstanding shares. 562500

options had vested at year-end 2021.

The board of directors

Prior to the listing of BEWI’s shares on the Euronext

Growth, a new board of directors was elected on the

group’s extraordinary general meeting on 21 August

2020. The board was elected for the period up to

the annual general meeting in 2022, and as such,

none of the directors were up for election at the

annual general meeting in 2021. However, board

member Per Nordlander requested to resign from

his board position, and on such basis the nomination

committee of BEWI proposed Rik Dobbelaere as new

member of the board. Dobbelaere has been board

member of the subsidiary BEWiSynbra Group AB

from 2020 and comes from the position as CEO of

BEWiSynbra Group, and previously Synbra Holding

(prior to BEWI’s acquisition of the company in 2018).

From the annual general meeting in 2021, BEWI’s

board of directors consist of Gunnar Syvertsen as the

chairperson and Stig Wærnes, Kristina Schauman,

Rik Dobbelaere, and Anne-Lise Aukner as directors.

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 2021, the group had 4.8 per cent absence due

to illness, compared to 5.2 per cent in 2020. This is

mainly explained as a covid-19 eect since employ-

ees with symptoms stayed home to follow local

regulations or recommendations. The group reported

26 accidents in 2021, compared to 41 in 2020, with a

loss of 270 working days compared to 359 in 2020.

The most common accidents throughout the year

were cuts, stitches of falling. Three accidents were

caused by human failure in operation of machine

with rotating parts.

For further information about management of health

and safety, employee satisfaction and leadership

development, see the sustainability report.

Equal opportunities

The board of directors of BEWI ASA consists of ve

members, of which two are women. The group has

an executive committee, consisting of the CEO, the

COO, and the CFO, of which the CFO is 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 sustain-

ability report.

7070

Share and shareholder matters

BEWI ASA’s shares were admitted to trading at the

Euronext Growth trading facility in August 2020

and transferred to a full listing at Oslo Børs on

18 December 2020.

On 31 December 2021, the total number of shares

outstanding in BEWI ASA was 156610804, each with

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

During 2021, the share traded between NOK 22.70

and NOK 76.00 per share, with a closing price of

NOK 75.00 on 30 December 2020.

BEWI has one share class, and all shares have equal

rights in the company. The shares are registered in

the Norwegian Central Securities Depository (VPS).

The company’s registrar is DNB Markets. The shares

carry the securities number ISIN NO 001 0890965.

On 3 March 2022, the 20 largest shareholders of

BEWI ASA held 92.94 per cent, of which the largest

shareholders are BEWI Invest AS, owned 69.90 per

cent by the Bekken family, holding a total of 62.35 per

cent, Kverva Industrier, owned by the Witzøe family,

holding 9.76 per cent.

General meetings

BEWI held its annual general meeting on 3 June 2021.

All resolutions proposed by the board of directors

were approved, including the recommendations

made by the nomination committee. Rik Dobbelaere

was elected as new board member, replacing Per

Nordlander.

The general meeting approved the board’s proposal

to distribute dividends of NOK 0.42 per share. The

share traded ex-dividends from and including 4 June

2021.

BEWI’s annual general meeting for 2022 is planned to

be held on 2 June 2021.

Dividends

BEWI targets annual dividends of 30 to 50 per cent of

the group’s net prot. When deciding on the annual

dividend, the board of directors will consider the

group’s nancial position, investment plans as well as

the needed nancial exibility to provide for sustain-

able growth.

In 2021, BEWI ASA distributed a dividend of NOK 0.42

per share for the nancial year of 2020. The proposal

equalled approximately 50 per cent of the group’s

net prot for 2020, adjusted for capital gains on

divestments of real estates and revaluation of shares

(non-cash).

On 24 February 2022, the board of directors of BEWI

proposed to pay a dividend of NOK 1.10 per share for

the nancial year of 2021. The proposal is in line with

the company’s dividend policy and will be dealt with

at BEWI’s annual general meeting on 2 June 2022.

Events after the close of the period

Extraordinary general

meeting February 2022

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 consider-

ation 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 eect 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.

Completion of tender oer for

all shares in IZOBLOK

With reference to the above information about the

tender oer launched on 2 November 2021 for all

outstanding shares of IZOBLOK, the tender oer

expired on 28 January 2022, upon which 121870

shares were acquired. Following the transaction,

BEWI (indirectly) owns 64.28 per cent of the shares,

corresponding to 73.21 per cent of the voting rights

in IZOBLOK.

Intention to acquire Baltic

insulation company

On 18 February 2022, BEWI announced that the

company had entered a letter of intent to acquire

100 per cent of a Baltic insulation company. Total

consideration was expected to be in line with BEWI’s

historical M&As, i.e., with an EV/ EBITDA multiple

in the range of 5 to 7, whereas 50 per cent will be

settled in cash and 50 per cent through issuance of

consideration shares in BEWI.

The Baltic company operates facilities for manu-

facturing of insulation solutions and has recorded

protable growth recent years, with net sales in

the range of EUR 25 to 30 million and solid EBITDA

margins in the range of 10 to 15 per cent.

The rationale for the acquisition is to expand BEWI’s

geographic footprint into the Baltics, an interesting

region for sales growth, and for establishing a plat-

form for circular activities.

The acquisition is conditional upon a signed sale and

purchase agreement, as well as customary condi-

tions, and closing is expected in the second quarter

of 2022.

7171

Acquisition of Scandinavian

paper packaging company

On 28 February 2022, BEWI announced that the

company had entered a letter of intent to acquire 100

per cent of a leading Scandinavian paper packaging

company. Furthermore, the company announced

on 12 April 2022 that it has signed an agreement to

acquire the Norwegian paper packaging company

Trondhjems Eskefabrikk, a manufacturer of bre-

based packaging products, such as carton boxes to

the food industry.

For 2021, Trondhjems Eskefabrikk had revenues of

approximately EUR 13.5 million, up from EUR 11.7

million in 2020. The total consideration will be settled

in cash upon closing and is in line with BEWIs histori-

cal M&As, with an EV/EBITDA multiple in the range of

5 to 7.

The acquisition is conditional upon customary condi-

tions, and closing is expected in the second quarter

of 2022.

Progress/ closing of Jackon transaction

Reference is made to information above about BEWI’s

oer to acquire all shares in Jackon Holding, includ-

ing information about the authorisation from the

extraordinary general meeting held 16 February 2022

to issue consideration shares to HAAS AS, the owner

of 50 per cent of Jackon. On 21 February 2022, BEWI

announced that a prospectus had been prepared

for the purpose of listing of the consideration

shares, and that the prospectus had been approved

by the Financial Supervisory Authority of Norway

(Finanstilsynet).

The consideration shares will be issued to HAAS AS

(pursuant to a board authorisation) in connection

with closing of the transaction, which is still subject

to fullment of outstanding closing conditions,

including clearance from relevant competition

authorities.

Outlook

All BEWI’s segments recorded increased volumes and

higher sales prices in 2021 compared to 2020. The

company is experiencing stable or strong demand

in its key markets, despite challenging market con-

ditions in some end-markets, partly caused by the

Russian invasion of Ukraine, including shortage and/

or delay in deliveries of components, as well as cost

ination on operational costs, such as energy, trans-

port, and raw materials.

The Board considers BEWI to have a solid platform for

further protable growth driven by stable demand,

a solid operational performance, combined with a

strong pipeline of M&A opportunities.

Trondheim, Norway, 26 April 2022

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the Board

Anne-Lise Aukner

Director

Rik Dubbalaere

Director

Stig Wærnes

Director

Kristina Schauman

Director

Christian Bekken

CEO

7272

Statement by the board of directors and CEO

We conrm, to the best of our knowledge, that

• The group nancial statements for the period

from 1 January to 31 December 2021 have been

prepared in accordance with IFRS, as adopted by

the EU

• The nancial statements of BEWI ASA for the

period from 1 January to 31 December 2021 have

been prepared in accordance with Norwegian

Accounting Act and accounting standards and

practices generally accepted in Norway

• The nancial statements give a true and fair view

of the group and the company’s consolidated

assets, liabilities, nancial position, and results of

operations

• The Report of Board of Directors provides a true

and fair view of the development and perfor-

mance of the business and the position of the

Group and the Company, together with a descrip-

tion of the key risks and uncertainty factors that

the Group and the Company is facing

Trondheim, Norway, 26 April 2022

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the Board

Anne-Lise Aukner

Director

Rik Dubbalaere

Director

Stig Wærnes

Director

Kristina Schauman

Director

Christian Bekken

CEO

7373

Financial

statements



7474

Contents

The Group

Consolidated comprehensive income statement

Consolidated statement of nancial position

Consolidated statement of changes in equity

Consolidated cash ow statement

Accounting principles and notes to the accounts

Note 01 General information

Note 02 Summary of key accounting principles

Note 03 Financial risk management

Note 04 Critical accounting estimates and assessments

Note 05 Net sales distribution and segment information

Note 06 Employee remuneration etc.

Note 07 Remunerations to auditors

Note 08 Leasing

Note 09 Financial income and expense

Note 10 Exchange dierences – net

Note 11 Income tax

Note 12 Intangible assets

101

Note 13 Tangible assets

103

Note 14 Business acquisitions

104

Note 15 Sale of business

106

Note 16 Shares in associates

107

Note 17 Financial instruments per category

109

Note 18 Account receivables

110

Note 19 Inventory

111

Note 20 Prepaid expenses and accrued income

111

Note 21 Cash and cash equivalents

111

Note 22 Share capital

111

Note 23 Share-based incentive programme

113

Note 24 Earnings per share

114

Note 25 Borrowings

114

Note 26 Pensions and similar obligations to employees

117

Note 27 Other provisions

120

Note 28 Accrued expenses and deferred income

120

Note 29 Contingent liabilities

120

Note 30 Pledged assets

121

Note 31 Related parties

121

Note 32 Adjustments for non-cash items, etc.

123

Note 33 Subsequent events

123

Parent company

Income statement of the parent company

124

Statement of nancial position of the parent company

125

Statement of nancial position of the parent company

126

Cash ow statement for the parent company

127

Accounting principles and notes to the accounts

128

Note 01 General information

128

Note 02 Summary of key accounting principles for the parent company

128

Note 03 Net sales

129

Note 04 Employee remuneration etc.

129

Note 05 Financial income and expense

130

Note 06 Income tax on the prot for the year

131

Note 07 Shares in subsidiaries and associates

131

Note 08 Cash and bank balances

133

Note 09 Share capital

133

Note 10 Equity

133

Note 11 Receivables and liabilities

134

Note 12 Related parties

134

Note 13 Remuneration to auditors

134

Auditor’s report

135

Alternative Performance Measures

140

7575

Consolidated comprehensive income statement

million EUR (except numbers for EPS) Note 2021 2020

Operating income

Net sales 5 748.2 462.6

Total operating income 748.2 462.6

Operating expenses

Raw materials and consumables 19 -304.9 -181.1

Goods for resale 19 -92.2 -35.3

Other external costs 7, 8, 10 -135.9 -99.4

Personnel costs 6 -116.2 -88.1

Depreciation/amortisation and impairment tangible

and intangible assets 12, 13 -37.8 -30.4

Share of income from associated companies 5.7 4.9

Capital gain/loss from sale of asset 1.0 6.3

Total operating expenses -680.4 -423.1

Operating income (EBIT) 67.8 39.5

Financial income 0.4 4.2

Financial expense -19.2 -11.4

Financial income and expense - net 9 -18.8 -7.2

Income before taxes 49.0 32.3

Income tax 11 -14.6 -2.3

Net income for the year 34.4 30.0

million EUR (except numbers for EPS) Note 2021 2020

Other comprehensive income:

Items that may later be reclassied to prot and loss

Exchange rate dierences 4.1 -4.0

Items that will not be reclassied to prot and loss

Remeasurements of net pension obligations 4.0 0.0

Income tax pertinent to remeasurements of net pension obligations -0.8 0.0

Other comprehensive income after tax 7.3 -4.0

Total comprehensive income for the period 41.7 26.0

Net income for the year attributable to:

Parent company shareholders 35.7 30.1

Non-controlling interests -1.3 -0.1

Total comprehensive income attributable to:

Parent company shareholders 42.9 26.1

Non-controlling interests -1.2 -0.1

Earnings per share: 24

Average number of shares: 153 336 017 141 130 072

Diluted average number of shares: 154 116 368 141 130 072

Earnings per share (EPS), basic (EUR) 0.23 0.21

Earnings per share (EPS), diluted (EUR) 0.23 0.21

Earnings per share (EPS), basic (NOK)

2.37 2.27

Earnings per share (EPS), diluted (NOK)

2.36 2.27

EPS in NOK is calculated using average rates for the period

7676

Consolidated statement of nancial position

million EUR Note 31 Dec 2021 31 Dec 2020

ASSETS

Non-current assets

Intangible assets

Goodwill 113.0 83.8

Other intangible assets 80.3 79.4

Total intangible assets 12 193.3 163.2

Tangible assets

Land and buildings 91.3 70.0

Plant and machinery 101.3 80.8

Equipment, tools, xtures and ttings 12.4 10.2

Construction in progress and advance payments for property,

plant and equipment 10.1 9.3

Total tangible assets 13 215.1 170.3

Financial assets

Shares in associates 16 13.7 8.0

Net pension assets 6.7 3.2

Non-current receivables associates 4.2 4.1

Other non-current receivables 0.1 0.0

Other shares and participations 9.8 9.9

Total nancial assets 34.5 25.2

Deferred tax assets 11 3.0 5.3

Total non-current assets 17 445.9 364.0

million EUR Note 31 Dec 2021 31 Dec 2020

Current assets

Inventory

Raw material and consumables 30.3 22.2

Work-in-progress 3.4 1.6

Finished goods and goods for resale 47.3 33.6

Total inventory 19 81.0 57.4

Current receivables

Accounts receivables 18 98.8 58.3

Current tax asset 0.6 2.9

Other current receivables 11.9 6.3

Prepaid expenses and accrued income 20 5.0 2.8

Other nancial assets 0.2 -

Cash and cash equivalents 21 142.3 51.4

Total current receivables 17 258.8 121.7

Total current assets 339.8 179.1

TOTAL ASSETS 785.7 543.1

7777

Consolidated statement of nancial position

million EUR Note 31 Dec 2021 31 Dec 2020

EQUITY AND LIABILITIES

Equity

Share capital 22 14.8 14.0

Additional paid-in capital 166.9 151.9

Reserves -9.6 -16.8

Accumulated prot (including net prot for the year) 80.3 45.6

Equity attributable to parent company shareholders 252.4 194.7

Non-controlling interests 9.8 0.4

Total Equity 262.2 195.1

LIABILITIES

Non-current liabilities

Pensions and similar obligations to employees 26 1.4 2.5

Other provisions 27 0.9 0.7

Deferred tax liability 11 26.8 20.9

Non-current bond loan 25 246.1 137.9

Other non-current interest-bearing liabilities 25 75.9 70.2

Other nancial non-current liabilities 17 4.3 -

Total non-current liabilities 17 355.4 232.2

million EUR Note 31 Dec 2021 31 Dec 2020

Current liabilities

Other current interest-bearing liabilities 25 16.7 13.5

Other nancial liabilities 0.2 0.9

Accounts payables 89.7 54.9

Current tax liabilities 8.0 6.6

Other current liabilities 13.2 13.4

Accrued expenses and deferred income 28 40.2 26.5

Total current liabilities 17 168.0 115.8

Total liabilities 523.4 348.0

TOTAL EQUITY AND LIABILITIES 785.7 543.1

Trondheim, Norway, 26 April 2022

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the Board

Anne-Lise Aukner

Director

Rik Dubbalaere

Director

Stig Wærnes

Director

Kristina Schauman

Director

Christian Bekken

CEO

7878

Consolidated statement of changes in equity

million EUR Share capital

Additional

paid-in capital Reserves

Accumulated

prot or loss (incl net

prot for the year) Total

Non-controlling

interest

Total

equity

Opening balance as of 1 January 2021 14.0 151.9 -16.8 45.6 194.7 0.4 195.1

Net prot 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

Sharebased 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

Opening balance as of 1 January 2020 0.1 134.4 0.7 15.5 150.7 -0.6 150.1

Net prot for the year - - - 30.1 30.1 -0.1 30.0

Other comprehensive income - - -4.0 - -4.0 - -4.0

Total comprehensive income - - -4.0 30.1 26.1 -0.1 26

Transactions with owners, recognised directly in equity

Capital reorganisation 13.5 - -13.5 - - - 0.0

New shares issued for cash 0.4 8.3 - - 8.7 - 8.7

New shares issued as consideration in business combination - 9.5 - - 9.5 - 9.5

Transaction cost - -0.3 - - -0.3 - -0.3

Acquisition of non-controlling interest - - - -0.1 -0.1 1.1 1.0

Sharebased payments IFRS 2 - - - 0.1 0.1 - 0.1

Total transactions with shareholders, recognised directly in equity 13.9 17.5 -13.5 0.0 17.9 1.1 19.0

Closing balance as of 31 December 2020 14.0 151.9 -16.8 45.6 194.7 0.4 195.1

7979

Consolidated cash ow statement

million EUR Note 2021 2020

Operating cash ow

Operating income (EBIT) 67.8 39.5

Adjustments for non-cash items, etc. 32 32.6 19.1

Interest paid and nancing costs -17.8 -10.4

Interest received 0.4 0.2

Income tax paid -8.7 -11.9

Operating cash ow before changes to working capital 74.2 36.6

Cash ow from working capital changes

Increase/decrease in inventories -14.3 0.2

Increase/decrease in operating receivables -28.2 -5.4

Increase/decrease in inventories in operating debt 35.8 1.7

Total change to working capital -6.8 -3.4

Cash ow from operating activities 67.4 33.2

Cash ow from investment activities

Purchase of property, plant and equipment and intangible assets 12, 13 -34.7 -26.6

Acquisitions of business 14 -54.0 -10.8

Acquisitions of associated companies 16 -1.1 -0.3

Loans granted to associated companies 16 - -3.2

Other nancial investments -0.5 0.1

Disposals of property, plant and equipment 0.5 43.3

Divestment of business 4.3 -

Repayment of loans to associated companies 16 - 0.3

Cash ow from investment activities -85.5 2.7

million EUR Note 2021 2020

Cash ow from nancing activities

Borrowings, net of transaction costs 25 248.2 0.4

New share issue, net of transaction costs 22 18.9 8.4

Repayment of borrowings 25 -153.4 -49.5

Dividend -6.4 -

Cash ow from nancing activities 107.3 -40.7

Cash ow for the period 89.1 -4.8

Opening cash and cash equivalents 51.4 56.3

Exchange dierence in cash 1.8 0.0

Closing cash and cash equivalents 21 142.3 51.4

8080

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 custom-de-

signed packaging solutions and insulation material. The

parent company conducts its business through subsidi-

aries in Sweden, Finland, Denmark, Norway, Iceland the

Netherlands, Belgium, Portugal Spain, Poland, Germany,

UK and through associated companies in Germany, France,

Czech Republic and the UK.

The parent company is a public limited company regis-

tered in Norway, with head oce located in Trondheim,

Norway, and address Postboks 3009, 7441 Trondheim. BEWI

ASA’s registration number is 925 437 948.

The board of directors approved these consolidated

accountson on the 26 April for publishing on the 27 April

2022.

Legal restructuring

BEWI ASA was incorporated on 29 July 2020. On 21 August

2020 all of the shares in BEWiSynbra AB were contributed

to BEWI ASA against an issuance of shares in BEWI ASA to

the shareholders of BEWiSynbra AB (a share exchange),

thereby establishing the same shareholder structure in

BEWI ASA as in BEWiSynbra immediately before the reor-

ganisation. Following the legal restructuring, BEWI ASA has

become the new parent company of the group.

The reorganisation represents a capital reorganisation and

not a business combination. The carrying values of assets

and liabilities in BEWiSynbra were recognised in the group

(with BEWI ASA as the new parent company) with the

same carrying values as in BEWiSynbra in line with prede-

cessor accounting (i.e., to continuity) and with no fair value

adjustments. Furthermore, as the reorganisation is con-

sidered to be a capital reorganisation from an accounting

perspective, BEWiSynbra’s historical consolidated nancial

statements represent the group’s historical nancial

information going forward, and as such these nancial

statements reect the group’s historical activities.

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 nancial years,

unless otherwise specied.

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

unless otherwise specied. 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 manage-ment to make certain assessments

when applying the group’s accounting principles. The

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

ments is required, or in which assumptions and estimates

are signicant 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 meas-urement 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 nancial 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 identied four segments to be reported; RAW,

Insulation, Packaging & Components and Circular.

8181

Subsidiaries

The subsidiaries are all companies over which the group

exercises the controlling inuence. The group controls a

company when exposed to or entitled to variable return

from its holdings in the company and carries the ability to

inuence the return through its control of the company.

Subsidiaries are included in the consolidated accounts

from the date on which the controlling inuence is trans-

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

which the controlling inuence 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. Identiable 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 identiable 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 identiable acquired net assets. Should the

consideration be lower than the fair value of the acquired

company’s net assets, the dierence 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 signicant but not controlling inuence, 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 prots and other

comprehensive income from its associated companies

after the acquisition date. The group’s share of the prot

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 dened 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. Ex-change 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

nancial incomes and expenses.

Translation of foreign group companies

Prots and nancial 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 dierences 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 identiable

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 ex-pected 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.

8282

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 identiable 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 xed useful life and are for subsequent periods

reported at the acquisition cost less accumulat-ed amor-

tisation and impairment. The useful life of trademarks

acquired through business combinations is evaluated

and determined in each acquisition. Net cash ows

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 indenite 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 benets 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 o 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 nish/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, xtures and ttings 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-nancial assets

Intangible assets with an indenite 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 identiable cash ows (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 rst-in-rst-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-nished or nished 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 dierent balance

sheet items and are described below.

2.8.1 Classication

The group classies its nancial assets and liabilities in the

following categories: Financial assets at fair value through

prot and loss, nancial assets measured at amortised cost,

nancial liabilities measured at fair value through prot and

loss and nancial liabilities measured at amortised cost.

The classication is chosen in accordance with the purpose

of obtaining the nancial asset or liability.

Financial assets at fair value through prot and loss

Financial assets at fair value through prot 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

prot and loss. Positive fair value changes in derivatives are

reported as nancial assets.

Financial assets measured at amortised cost

Financial assets measured at amortised cost are nancial

instruments where the business model is to collect cash

ows. The contractual cash ows are solely payments of

principal and interest and are valued at amortised cost in

accordance with the eective interest meth-od. Accounts

receivables are included in this category.

Financial liabilities at fair value through prot and loss

Financial liabilities at fair value through prot 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

nancial instruments, such as the bond loans, liabilities to

credit institutions, liabilities regarding nancial leasing and

account payables.

8383

2.8.2 Reporting and valuation

Financial assets are initially recognised at fair value plus

transaction costs for all nancial assets not at fair value

through prot and loss. Financial assets at fair value

through prot 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 nancial assets

are recognised on the settlement date. Financial assets are

removed from the balance sheet when the right to obtain

cash ows from the instrument has expired and the group

has transferred all essential risk and benets 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 nancial liabilities are, after the

acquisition date, reported at the amortised cost calculated

using the eective interest method.

2.8.3 Osetting nancial instruments

Financial assets and liabilities are oset and reported with

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

legal right to oset 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 nancial instrument

At each balance sheet date, nancial assets measured

at amortised cost are assessed for impairment based

on Expected Credit Losses (ECL). ECLs are the dierence

between all contractual cash ows that are due in

accordance with the contract and all the cash ows that

the group expects to receive, discounted at the original

eective interest rate. Allowances for trade receivables are

always equal to lifetime ECL.

2.9 Account receivables

Account receivables are nancial instruments that include

amounts payable by customers for operationally sold

goods and services. They are classied 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 eective 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 ow statement, cash and bank balances.

2.11 Share capital

Ordinary shares are classied 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 nancial 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 eective 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 dierence 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 eective 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 outow of resources is required to clear

the commitment and the amount is reliably calculated.

Provided that similar commitments exist, the probability

of an outow 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 outow 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 fullling

the obligation. A discount rate before tax is utilised

hereby, reecting 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 dierences 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 scal surplus will be available, against

which the decits may be exploited.

Deferred tax assets and liabilities are oset in the event of

a legal right to oset 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 benet plans,

including dened benet plans, of which the majority of

the pension schemes are dened contribution plans. A

dened contribution plan is a pension plan according to

which the group pays a xed fee to a separate legal entity.

The group carries no legal or constructive obligations

to pay additional fees should the entity lack sucient

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

dened benet plan is a pension plan without dened

contribution. Dened benet 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 dened

benet 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

8484

benets in the Netherlands for long-term service (Jubilee

fund), calculated in the same manner as a dened

benet plan. The liability reported on the balance sheet

in conjunction with the dened benet pension plan is

the present value of the dened benet commitment

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

fair value. The dened benet pension commitment is

calculated annually by independent actuaries using the

projected unit credit method. The present value of the

dened benet liability is determined through discounting

future estimated cash ows using the interest rate for

investment grade corpo-rate bonds or housing bonds

issued in the same currency as the benets, with terms

comparable to the pension commitment in question. The

net interest is calculated by applying discounted interest

charges to dened benet 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 nancial 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 prot 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 rst of these points of time: a) when the

group no longer has the option to withdraw the com-

pensation oer 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 oer encouraging voluntary

withdrawal, in the event that such an oer has been made.

Benets 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 reect

the actual number of vested options and shares.

2.16 Revenue recognition

The group follows a ve-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 reects the

consideration to which the entity expects to be entitled in

exchange for those goods or services.

The ve-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

satised 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-ed performance

obligations. A performance obligation can be satised over

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

if the customer simultaneously receives and consumes all

of the benets 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 specic 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 signicant 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 denition 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 dened by the

shipment terms.

2.17 Interest revenue

Interest revenue is reported using the eective 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 nancial expense in income statement, apportioned

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

amount reecting a xed interest rate on the underlying

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

which reects 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

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

reported with straight-line expense over the lease term.

8585

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 xed

payments. Lease liabilities that fall due within 12 months

are classied 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 prot 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 nancial reports

for the period in which the dividends have been approved

by the parent company’s shareholders.

2.21 Cash ow statement

Cash ow statement is prepared using the indirect

method. The reported cash ow 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

dierent risks: market risks (currency risk, interest rate risk

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

comprehensive nancial risk management is focused on

the unpredictability of the nancial markets and strives to

minimise any adverse eect on the consolidated prots.

The use of derivative nancial 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 nance department and the treasury

function within that department. The nance department

identies, evaluates and hedges nancial risks in close

cooperation with the group’s operative units.

Currency risk

The group operates in the Nordic countries, in the Euro

area, in Poland and in the UK and is mainly exposed to cur-

rency risk arising from currency exposure to the Swedish

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

Krona (NOK). The group is also to a minor extent exposed

to the Polish Zloty (PLN) and to British Pound (GBP).

Currency risks arise from both transaction exposure and

translation exposure. Transaction exposure should, when

possible, be centralised to Sweden and managed by the

group’s central treasury function.

Transaction exposure

Transaction exposure arises when revenues and costs are

incurred in dierent currencies and exposes the group to

changes in net cash ow due to uctuations in exchange

rates. This is applicable to both operational cash ows and

to nancial commitments that will end in a cash outow.

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 remeasured on the balance sheet date or

when settled. The biggest transaction exposure to operational

cash ows 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 GBP and

EUR from sales in the UK to the continent and the sales of raw

material from the continent to the United Kingdom. In the

Polish operation, revenue and much of the costs are mainly

denominated in EUR, thereby largely achieving a natural

hedge. The biggest fair value exposure on the balance sheet

is related to intra-group loans, mainly EUR denominated,

from Sweden to its subsidiaries. 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.

8686

Transaction exposure to operational cash ows 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

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

EUR transaction exposure, as of 31 December, is presented

in the table below.

million EUR 0-6 months 3-4 yr. 4-5 yr.

As of 31 Dec 2021

Derivative asset 0.2 - -

Derivative liability -0.2 -0.2 -0.3

Total -0.0 -0.2 -0.3

As of 31 Dec 2020

Derivative liability -0.9 - -

Total -0.9 - -

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 nancial

statements. The reported net sales and prot 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 nancial ratios.

A sensitivity analysis shows that if EUR would have uctu-

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

the impact on net prot would have been +/- EUR 0.7

million in 2021 (EUR 0.3 million). This assumes that all other

variables are held constant and ignores any compensating

eects 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 ow or fair value

of nancial assets and liabilities. Cash ow risk arises from

changes in variable interest rates, whereas fair value risk

arises from changes in xed interest rates. It is the policy of

the group to limit the interest rate risk to cash ow risk by

restricting the allowed average interest duration for both

borrowing and nancial investments. The group’s borrow-

ing is primarily exposed to changes in Euribor through the

bond loan, 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 uctuate up or

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

the impact on net prot would have been +/- EUR 0.8

million in 2021 (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. Lastly, the corporate bonds are listed on Nasdaq

Stockholm, and the group is therefore exposed to uctu-

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 nan-

cial transaction may not full 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 oered. 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 nancial 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 nancial institutions with a credit rating of

“A” or higher rating from independent credit rating agen-

cies are accepted. In terms of other short-term investments

of surplus liquidity, the lowest rating required is K-1.

The maximum credit risk exposure corresponds to the

nancial 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 nancing on acceptable terms at any given

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

monitoring of cash ow and securing long-term nancing

of the group.

Cash ow forecasts are prepared by the group’s operating

companies and are closely monitored by the treasury

department. The group should always have a sucient

liquidity reserve to meet the short-term operating needs,

dened as a certain number of months of xed and

semi-xed costs. In order to balance seasonal eects in

operating cash ow, mainly related to change in working

capital, the group has secured an overdraft facility. In

connection with the renancing in 2021, the total overdraft

facility was extended to EUR 80 million from SEK 375

million (equivalent of EUR 37.4 million as of 31 December

2020) and is now provided by two banks. The facility runs

for two years until 2023 and includes the option to extend

the facility further in time.

For the long-term nancing of the group, BEWI has issued

a EUR 250 million ve 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

8787

2025 of 50 per cent of the bonds outstanding at that

date. This bond loan was issued in connection with the

renancing in 2021, when the EUR 75 million bond loan

and the EUR 65 million bond loan, due in 2022 and 2023

respectively, were redeemed. A detailed description of the

terms for the bond loans is given in note 25 Borrowings.

In addition to the centrally negotiated borrowing, there

are also a few liabilities to credit institutions and overdraft

facilities in companies acquired, that have not been subject

renancing post acquisition.

The amounts in the table below are the agreed, undiscounted cash ows.

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

As of 31 Dec 2020

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

Bond loans - 75.0 65.0 -

Liabilities to credit institutions 0.8 0.7 0.1 0.2

Overdraft 0.4 - - -

Accounts payables 54.9 - - -

Liabilities leases 14.9 13.0 30.8 48.4

Total 71.0 88.7 95.9 48.6

The undiscounted cash ow for liabilities leases correspond to the future lease payments reected 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 nancial instruments measured at fair value though prot and loss, or, which is the

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

other nancial assets and liabilities is considered to constitute a good approximation of fair value, since they carry oating

interest rates or are of a current nature.

As of 31 Dec 2021

Carrying

amountmillion EUR Level 1 Level 2 Level 3 Total

Financial assets measured at fair value through prot 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 prot and loss

Derivative liability - 0.7 - 0.7 0.7

Other nancial non-current liabilities - 3.8 3.8 3.8

Total - 0.7 3.8 4.5 4.5

8888

As of 31 Dec 2020

Carrying

amountmillion EUR Level 1 Level 2 Level 3 Total

Financial assets measured at fair value through prot and loss

Participation in other companies 9.6 - 0.3 9.9 9.9

Total 9.6 - 0.3 9.9 9.9

Financial liabilities measured at amortised cost

Bond loans 141.2 - - 141.2 137.9

Total 141.2 - - 141.2 137.9

Financial liabilities measured at fair value through prot and loss

Derivative liability - 0.9 - 0.9 0.9

Total - 0.9 - 0.9 0.9

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 nancial

non-current liabilities

As of 31 Dec 2020 0.3 -

Acquisitions 0.5 3.8

Fair value adjustment through prot and loss -0.2 -

As of 31 Dec 2021 0.6 3.8

Other nancial 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.

Level 3 – Changes during the period, million EUR

Participation in other

companies

As of 31 Dec 2019 0.2

Exchange rate dierences 0.1

Acquisitions 1.3

Divestments -1.3

As of 31 Dec 2020 0.3

In 2020, EUR 0.1 million in capital gain was recognised from the sale of participations in other companies, acquired during the year.

8989

3.3 Capital management

The group’s capital is dened 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 protable growth through a combi-

nation of M&A activities and organic growth, with the aim to continue generating return to shareholders and benets 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

dened as interest-bearing liabilities less cash and cash equivalents. Net debt is calculated both with and without the eect

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 eect of IFRS 16. For the sake of calculating capital employed, net debt includes the

eect 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 aecting 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 2021 31 Dec 2020

Total interest-bearing liabilities (A) 338.7 221.6

Cash and cash equivalents (B) 142.3 51.4

Net debt including IFRS 16 (A-B) 196.4 170.2

Eect of IFRS 16 leasing liabilities (C) 76.1 78.5

Net debt excluding IFRS 16 (A-B-C) 120.3 91.7

Total equity (D) 262.2 195.1

Capital employed (A-B+D) 382.5 365.3

Average capital employed (E) 409.6 322.0

Adjusted EBITA (F) 78.8 40.8

Return on capital employed (F/E) 19.2% 12.6%

The increase in net debt from 2020 to 2021 is mainly attributable to the business acquisitions during the year. The increase in

capital employed from 2020 to 2021 was further impacted by the increase in equity, to a large extent attributable to the prot

for the year and the new shares issues. Return on capital employed increased from 2020 to 2021, explained by higher prots in

operations, with a positive contribution from both organic growth and acquisitions.

9090

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 denition, rarely be

equivalent to the actual result. The estimates and assump-

tions contain a signicant risk for material adjustments

to carrying amounts of assets and liabilities during the

following nancial years are outlined below.

(a) Inventory obsolescence

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

ance with the rst-in-rst-out method. The acquisition

costs for the company’s semi-nished or nished 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 nished, 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 81.0

million as of 31 December 2021 (57.4).

(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 benets include

the discount rate. Each change to these assumptions will

aect 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 benets,

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 nancial 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. As from Q3 2021 Circular is

reported as a separate segment. It was until then included

in Unallocated. The comparative numbers have been

updated accordingly. Sales between segments take place

on market terms.

million EUR 2021 2020

RAW

Segment revenue 347.9 191.2

Intra-group revenue -104.6 -56.5

Revenue from external customers 243.3 134.7

Insulation

Segment revenue 195.4 146.6

Intra-group revenue -2.8 -2.4

Revenue from external customers 192.7 144.1

Packaging & Components

Segment revenue 295.6 179.9

Intra-group revenue -6.9 -2.3

Revenue from external customers 288.7 177.6

Circular

Segment revenue 24.0 6.3

Intra-group revenue -0.6 -0.2

Revenue from external customers 23.4 6.1

9191

million EUR 2021 2020

Unallocated

Segment revenue 0.1 0.0

Intra-group revenue 0.0 0.0

Revenue from external customers 0.1 0.0

Total

Total segment revenue 863.1 524.1

Total intra-group revenue -114.9 -61.5

Total revenue from external customers 748.2 462.6

Adjusted EBITDA

RAW 54.1 9.4

Insulation 21.6 26.5

Packaging & Components 40.3 34.1

Circular 0.6 -1.2

Unallocated -7.6 -3.9

Total adjusted EBITDA 109.0 65.0

EBITDA

RAW 54.2 9.9

Insulation 22.5 32.4

Packaging & Components 39.9 36.2

Circular 0.3 -1.3

Unallocated -11.4 -7.3

Total EBITDA 105.5 70.0

million EUR 2021 2020

EBITA

RAW 50.0 6.2

Insulation 14.6 25.0

Packaging & Components 23.3 23.9

Circular -0.7 -1.7

Unallocated -11.8 -7.7

Total EBITA 75.4 45.8

EBIT

RAW 49.6 5.8

Insulation 12.6 23.1

Packaging & Components 18.8 20.4

Circular -0.7 -1.7

Unallocated -12.6 -8.2

Total EBIT 67.8 39.5

Net nancial items -18.8 -7.2

Income before tax 49.0 32.3

Normalised earnings before interest, tax, depreciation and amortisations (i.e. items aecting 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 aect comparability. For more information see

section “Alternative performance measures not dened by IFRS”.

9292

Specication of impact from specic amounts on the segmentation 2021 2020

Share of income from associated companies

Adjusted EBITDA, EBITDA, EBITA and EBIT for Insulation 4.7 1.5

Adjusted EBITDA, EBITDA, EBITA and EBIT for Packaging & Components 0.0 -0.2

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

Capital gain/loss from sale of assets

EBITDA, EBITA and EBIT for Insulation 0.9 3.4

EBITDA, EBITA and EBIT for Packaging & Components 0.0 2.3

EBITDA, EBITA and EBIT for RAW 0.1 0.6

EBITDA, EBITA and EBIT for Circular -0.1 -

EBITDA, EBITA and EBIT for Unallocated 0.0 -

Impairment tangible xed assets

EBITA and EBIT for Insulation - -1.2

EBITA and EBIT for Packaging & Components -0.8 -

EBITA and EBIT for RAW -0.2 -

EBITA and EBIT for Circular 0.0 -

Net sales per country

External Segment revenue by country (selling company’s sales) 2021 2020

RAW

Total Finland 125.8 67.6

Total Netherlands 117.5 67.0

Total RAW 243.3 134.7

Packaging & Components and Insulation

Total Finland 21.3 15.9

Total Sweden 57.1 52.3

Total Denmark 70.3 53.6

Total Norway 164.9 75.7

Total Netherlands & Belgium 129.8 106.0

Total Portugal & Spain 21.8 18.2

Total Germany 6.6 -

Total Polen 9.6 -

Total P&C and Insulation 481.4 321.7

Circular

Total Belgium 2.6 2.0

Total Sweden 6.3 0.9

Total Denmark 2.2 0.7

Total Norway 0.1 0.2

Total Netherlands 3.4 2.1

Total Portugal 6.6 0.1

Total United Kingdom 2.2 -

Total Circular 23.4 6.1

Total Group 748.2 462.6

9393

Net sales per country (Customers’ geography) 2021 2020

Total Finland 34.0 27.4

Total Sweden 62.2 49.4

Total Denmark 61.9 47.3

Total Norway 154.1 81.0

Total Portugal & Spain 45.0 26.0

Total Iceland 22.0 7.4

Total Baltics 14.3 8.4

Total UK 20.2 10.8

Total Germany 58.0 35.9

Total Poland 39.0 16.8

Total Russia 29.2 13.2

Total Netherlands 117.3 94.2

Total Belgium 13.6 8.9

Total France 28.4 11.9

Total Other 49.2 24.0

Total Group 748.2 462.6

Note 06 Employee remuneration etc.

million EUR 2021 2020

Salary and other remuneration -82.5 -65.0

Social security expenses -12.5 -7.9

Pension costs – dened contribution plans -8.0 -6.3

Pension costs – dened benet plans -0.1 -0.1

Total remunerations to employees -103.1 -79.2

The costs in the table above reects costs for own employees.

Salary and other remunerations and pension costs for directors of the board, CEO’s and other senior executives

2021 2020

Salary and other remunerations -1.9 -2.7

Bonus -0.5 -0.6

Pension costs -0.4 -0.3

The Group in total -2.8 -3.6

9494

Average number of employees with geographical breakdown by country

2021 2020

Average number

of employees Whereof men

Average number

of employees Whereof men

Sweden 199 137 209 145

Finland 154 126 147 122

Denmark 287 187 240 160

Norway 237 180 153 117

Island 14 11 5 5

Netherlands 329 297 426 390

Belgium 16 15 8 7

Portugal 208 124 177 95

Spain 5 4 5 4

Poland 136 87 - -

Germany 73 49 - -

UK 4 2 - -

The Group in total 1662 1219 1371 1045

Remuneration to senior executives

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

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

BEWI ASA 1 Jan 2021–31 Dec 2021 1 Sep 2020–31 Dec 2020

million EUR

Basic salary

incl. benets/

board fees

Variable

remuneration

Retirement

compensation

Basic salary

incl. benets/

board fees

Variable

remuneration

Retirement

compensation

Board of Directors

5 members of the board, whereof 2 women

Gunnar Syvertsen (chairman) 0.07 - - 0.02 - -

Stig Waernes 0.02 - - - - -

Christina Schauman 0.05 - - 0.01 - -

Ann-Lise Aukner 0.04 - - 0.01 - -

Rik Dobbeleare 0.02 - - - - -

Total 0.19 - - 0.05 - -

CEO

Christian Bekken (From 1 Sep 2020–) 0.24 0.09 0.00 0.06 0.02 -

Other Senior Executives

Jonas Siljeskär 0.28 0.14 0.08 0.09 0.07 0.02

Marie Danielsson 0.27 0.10 0.08 0.10 0.20 0.02

Total 0.79 0.33 0.16 0.26 0.29 0.04

Consultancy services board members

Gunnar Syvertsen 0.10 - - 0.02 - -

9595

Remuneration to senior executives

The table below presents the remuneration to senior executives and the board of directors prior to the legal restructuring in

August 2020, when BEWI ASA became the new parent company of the group. The table therefore presents the composition of

senior executives and board of directors when BEWiSynbra Group AB was the parent company. The senior executives comprise

of the board of directors, the CEO of BEWiSynbra Group and managers in the executive management directly reporting to the

CEO and remunerations for those applies to:

BEWISynbra Group, 8 months for 2020 1 Jan 2020–31 Aug 2020

million EUR

Basic salary incl.

benets/ board

fees

Variable

remuneration

Retirement

compensation

Board of Directors

6 members of the board, whereof 1 woman

Gunnar Syvertsen (chairman) 0.03 - -

Christian Bekken 0.01 - -

Göran Vikström 0.01 - -

Kristina Schauman 0.02 - -

Per Nordlander 0.01 - -

Rik Dobbelare 0.00 - -

Total 0.09 - -

CEO

Jonas Siljeskär 0.18 0.03 0.06

Other senior executives 0.30 0.03 0.10

Total 0.48 0.06 0.16

Consultancy services board members

Gunnar Syvertsen 0.05 - -

Rik Dobbelare 0.03 - -

Göran Vikström - - -

Consultancy services board members

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 protability of the Company. The features of the programme are further described in note 23.

The CEO of BEWi ASA and other senior executives were granted 250000 share options each.

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 benets during the period of notice, however the salary is deductible to other income.

9696

Note 07 Remunerations to auditors

million EUR 2021 2020

PwC

– The audit assignment -0.7 -0.6

– Audit activities other than the audit assignment -0.1 -0.2

– Tax advice - -

– Other services -0.1 -0.1

Total -0.9 -0.9

Other accounting rms than PwC

– The audit assignment -0.1 -0.1

Total -1.0 -1.0

For 2021 audit activities other than the audit assignment and other services mainly includes costs related to the Jackon transac-

tion. For 2020 other services are IPO related costs.

Note 08 Leasing

Lease-terms and purchase options

The group leases buildings (e.g. production facilities, warehouses, oces), 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. Oce 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 dicult, extension options for contracts

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

tions are present. Extension options for warehouses and oces are not reected.

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

reected 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 2021 2020

Depreciations and amortisations -11.3 -8.2

Interest expense -4.9 -3.0

Total -16.2 -11.1

9797

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

million EUR 2021 2020

Lease expense short-term leases -0.4 -0.3

Lease expense low-value assets -0.5 -0.4

Lease expense variable leases -0.3 -0.2

Total -1.2 -0.9

Cash ow from leases

million EUR 2021 2020

Recognised in operating cash ow

Operating income -1.2 -0.9

Interest paid -4.9 -3.0

Cash ow from nancing activities

Repayment of borrowings -11.3 -7.6

Total -17.4 -11.4

Note 09 Financial income and expense

million EUR 2021 2020

Interest revenue 0.3 0.2

Fair value adjustments shares and participations - 3.9

Other nancial income 0.1 0.1

Total nancial income 0.4 4.2

Interest expenses -12.7 -10.3

Fair value changes derivatives -0.2 -1.7

Fair value adjustments shares and participations -0.6 -

Other nancing costs -5.7 -0.1

Exchange rate losses 0.0 0.7

Total nancial expense -19.2 -11.4

Total nancial income and expense - net -18.8 -7.2

EUR -1.0 million (2020: EUR -1.2 million) of the interest expenses were attributable to amortisation of nancing costs and EUR -5.6

million of other nancing costs in 2021 was attributable to bond repurchase premium, early consent fee and expensed nanc-

ing costs in connection with the renancing in 2021.

Net nancial income and expense per category of nancial instrument

million EUR 2021 2020

Financial assets and liabilities measured at fair value through prot and loss -0.8 2.2

Financial assets and liabilities measured at amortised cost -18.0 -9.4

-18.8 -7.2

9898

Note 10 Exchange differences – net

Exchange dierences have been reported in the income statement as follows:

million EUR 2021 2020

Other operating expenses -0.1 -0.2

Total nancial income and expense (note 9) - 0.7

Exchange dierences - net -0.1 0.5

Note 11 Income tax

Tax income and expense in income statement

million EUR 2021 2020

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

Current tax income(+)/expense(-) this year -12.5 -8.5

Adjustment recognised in current year in relation to current tax of prior years - 0.4

Deferred tax income(+)/expense(-) -2.1 5.8

Total tax income(+)/expense(-) -14.6 -2.3

The income tax attributable to the income before taxes diers from the theoretical amount that would have arisen from the

applica-tion of the tax rate in Sweden for the income of the group companies, as follows:

million EUR 2021 2020

Prot/loss before tax from continuing operations 49.0 32.3

Tax income(+)/expense(-) calculated at the local tax rate -12.5 -8.7

Eect of revenue that is exempt from taxation 2.4 8.4

Eect of non-deductible expenses -1.0 -0.2

Eect of tax losses and tax osets not recognised as deferred tax assets -3.6 -1.6

Eect of previously unrecognised deferred tax attributable to tax losses carry forward, tax

credits and temporary dierences 0.1 -

Eect of write-downs and reversals of deferred tax balances -0.1 0.6

Eect on deferred tax balances due to change in tax rate 0.0 -1.4

Adjustment recognised in current year in relation to current tax of prior years - 0.4

Other 0.1 0.2

Total tax income(+)/expense(-) in prot or loss -14.6 -2.3

9999

Recognised in other comprehensive income

million EUR 2021 2020

Deferred tax

Tax on remeasurement of dened benet obligation -0.8 0.0

Total -0.8 0.0

Deferred tax assets and liabilities 2021

million EUR

Opening

balance

Through

acquired

business

Through

divested

business

Reclassi-

caton

Reported in

prot/loss

Reported

in other

compre-

hensive

income

Exchange

dier-

ences

Closing

balance

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 and liabilities 2020

million EUR

Opening

balance

Through

acquired

business

Reported in

prot/loss

Reported in

other com-

prehensive

income

Exchange

dierences

Closing

balance

Deferred tax in balance sheet is attributable to:

Tax losses carry forward 2.4 0.4 -0.2 - -0.1 2.5

Intangible assets -16.3 -2.5 0.0 - 0.4 -18.4

Tangible assets -4.1 -1.1 6.0 - 0.1 0.9

Inventories -0.2 0.0 0.0 - 0.0 -0.2

Untaxed reserves -0.1 -0.3 0.1 - 0.0 -0.3

Pension assets and liabilities -0.2 0.0 0.0 0.0 0.0 -0.2

Provisions 0.1 0.0 - - 0.0 0.1

Other 0.1 -0.1 0.0 - 0.0 0.0

Total net deferred tax assets and liabilities -18.3 -3.6 5.8 0.0 0.4 -15.6

Deferred tax assets are reported for tax losses carry forward or temporary dierences to the extent that they are likely to be

utilised against future taxable prots. All of the EUR 0.3 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 12.0 million (EUR 7.7 million) were not recognised as

deferred tax assets. EUR 11.6 million of those losses have no due date and the remaining EUR 0.4 million fall due between 2022

and 2029. The tax losses carry forward by the end of 2021 are attributable to Sweden, Finland, Germany and Norway. In addition,

tax credits attributable to deferred interest rate deductions corresponding to a tax value of EUR 2.2 million (EUR 0.8 million),

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

100100

Note 12 Intangible assets

million EUR Goodwill Trademark

Customer

relations Technology

Patents,

licences & IT Total

As of 1 January 2020

Acquisition costs 72.1 20.2 56.4 7.8 11.9 168.4

Accumulated amortisations/write-downs -0.9 0.0 -9.2 -2.2 -10.8 -23.1

Carrying amount 71.2 20.2 47.2 5.6 1.1 145.3

Financial year 2020

Carrying amount brought forward 71.2 20.2 47.2 5.6 1.1 145.3

Exchange dierences -1.2 -0.3 -1.5 0.0 0.0 -3.0

Acquisitions - - - - 1.7 1.7

Through acquired business 13.9 1.4 9.2 1.2 0.0 25.7

Reclassications 0.0 - - 0.0 - 0.0

Writedown - - - - 0.0 0.0

Amortisations - - -4.8 -1.0 -0.5 -6.4

Carrying amount carried forward 83.8 21.3 50.1 5.8 2.2 163.2

As of 31 December 2020

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

million EUR Goodwill Trademark

Customer

relations Technology

Patents,

licences & IT Total

Financial year 2021

Carrying amount brought forward 83.8 21.3 50.1 5.8 2.2 163.2

Exchange dierences 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

Reclassications 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

Of the amortisations above, EUR 0.2 million in 2021 (0.0) were attributable to leases. The carrying amount of capitalised leases as

of 31 December 2021 was EUR 0.2 million (0.0).

In March 2021 IFRS IC update included an agenda decision on conguration 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 have to be expensed when

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

sion in 2021. BEWI is therefore undertaking an analysis of the contract with the software supplier and the nature of the dierent

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

should be expensed. This analysis is expected to be completed in the frist half of 2022. By the end of the year, costs amounting

to EUR 2.6 million incurred in this ERP implementation have been capitalised as an intangible asset.

101101

Considerations of impairment need for goodwill and trademark

Goodwill and trademarks have an indenite 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 2021 31 Dec 2020

RAW 10.8 10.9

Insulation Sweden 2.9 2.9

Insulation Finland 0.7 0.7

Insulation Norway 3.6 2.9

Insulation Netherlands 20.9 20.9

Insulation Belgium 12.0 -

Packaging & Components Sweden 2.8 2.9

Packaging & Components Denmark 9.8 2.9

Packaging & Components Netherlands 1.7 1.7

Packaging & Components Norway 33.0 30.7

Packaging & Components Portugal & Spain 5.4 5.4

Packaging & Components Poland 4.2 -

Circular Business 5.0 1.8

Total 113.0 83.8

Trademarks

million EUR 31 Dec 2021 31 Dec 2020

RAW 0.6 0.6

Insulation Netherlands 5.9 5.9

Insulation Norway 0.7 0.4

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 -

Total 24.3 21.3

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 ow before tax based on nancial 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 specic circumstances, such as a turnaround case. The estimates are based on the

executive management’s experience and historical data. The discount rate after tax amounts to 6.6 per cent (8.0 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 xed assets was identied in 2021.

A change in the discount rate of 1 per cent or reduced cash ow of 10 per cent would not change the outcome of the test.

Tangible xed assets of EUR 1.0 million were written down in 2021 (EUR 1.2 million), based on an individual assessment for those

assets. The write-down in 2020 was mainly attributable to the closure of an Insulation facility in Sweden and the transfer of

operations to the facility in Norrköping, Sweden.

102102

Note 13 Tangible assets

million EUR

Buildnings and

land

Plant and

other technical

machinery

Equipment,

tools, xtures

and ttings

Construction

in progress

and advance

payments for

property, plant

and equipment Total

As of 1 January 2020

Acquisition costs 101.0 238.8 28.1 3.2 371.1

Accumulated depreciations/write-downs -38.0 -167.3 -17.6 0.0 -222.9

Carrying amount 63.0 71.5 10.5 3.2 148.2

Financial year 2020

Carrying amount brought forward 63.0 71.5 10.5 3.2 148.2

Exchange dierences 0.6 -0.6 -0.1 - -0.1

Acquisitions 1.2 15.8 1.2 7.3 25.4

Capitalised leases 21.4 0.0 1.3 0.0 22.6

Through acquired business 19.6 7.5 0.6 0.0 27.7

Writedown -0.7 -0.4 - -0.1 -1.2

Reclassications 0.1 0.2 0.2 -0.9 -0.4

Disposals -28.7 -0.1 -0.4 -0.1 -29.3

Depreciations -6.4 -13.1 -3.2 0.0 -22.7

Carrying amount carried forward 70.0 80.8 10.2 9.3 170.3

As of 31 December 2020

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 80.8 10.2 9.3 170.3

million EUR

Buildnings and

land

Plant and

other technical

machinery

Equipment,

tools, xtures

and ttings

Construction

in progress

and advance

payments for

property, plant

and equipment Total

Financial year 2021

Carrying amount brought forward 70.0 80.8 10.2 9.3 170.3

Exchange dierences 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

Reclassications 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

Amounts above attributable to leases:

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

Depreciations 2020 -4.7 -2.8 -1.5 -9.0

Of which is attributable to IFRS 16 -4.7 -0.5 -1.4 -6.6

Carrying amount 31 December 2020 55.8 6.7 3.3 65.8

Of which is attributable to IFRS 16 55.4 0.7 3.2 59.3

103103

Note 14 Business acquisitions

Cash ow from acquisition of business

million EUR 2021 2020

Cash consideration -73.3 -13.5

Cash in acquired business 19.3 2.7

Total cash out/-inow -54.0 -10.8

Business acquisitions during the year

IZOBLOK S.A.

On 28 April 2021, BEWI entered into an agreement to acquire a majority stake of the listed Polish company IZOBLOK

S.A. (IZOBLOK) and on 7 July 2021, the acquisition was completed. IZOBLOK is a leading European provider of Expanded

Polypropylene (EPP) components to the automotive industry, with a market share of approximately 20 per cent. The acquisition

conrms BEWI’s strategy to strengthen its market position in the automotive industry, a market that has shown considerable

growth pre-Covid. IZOBLOK has four facilities, located at strategic locations in southern Poland and Germany, with developed

infrastructure ensuring eective access to customers across Europe. IZOBLOK is consolidated as from 1 July.

On 7 July 2021 BEWI 2021 acquired 54.21 per cent of the shares, corresponding to 65.66 per cent of the voting rights, of

IZOBLOK. The acquisition was structured as an acquisition of a holding company into which the sellers contributed the IZOBLOK

shares prior to completion of the transaction. The holding company contains a combination of non-listed shares (series

A-shares) with voting preferences and shares listed on Warsaw Stock Exchange (listed on GPW Main Market). The consideration

comprised a combination of cash and 1132792 new shares issued in BEWI ASA at a subscription price of NOK 27.50 per share.

A subsequent mandatory oer for up to two-thirds of the voting rights in IZOBLOK was completed on the 2 September 2021

and as of 31 December 2021 BEWI now owned 54.66 per cent of the shares, corresponding to 66 per cent of the voting rights

of IZOBLOK. The consideration was paid in cash. On 2 November 2021, BEWI launched a tender oer for the acquisition of all

outstanding shares in IZOBLOK. The total number of shares subject to the tender oer was 574481 shares, corresponding to the

remaining 45.34 per cent of the total outstanding shares, and 34.00 per cent of the voting rights. The price oered per share was

PLN 50.41, amounting to a total consideration of approximately EUR 6.4 million. Had BEWI succeedsed in acquiring 100 per cent of

the outstanding shares, the intention was to delist the shares in IZOBLOK from trading on the Warsaw Stock Exchange (WSE). By the

time of completion of the oer on 31 January 2022, BEWI had received acceptance from 121 870 shares for a total consideration of EUR

1.4 million. After the this transaction, BEWI owns 64.28 per cent of the shares, corresponding to 73.21 per cent of the voting rights. The

company remains listed on the WSE.

The adjusted acquisition analysis presented below gave rise to a goodwill of EUR 4.6 million, which is related to synergies such

as future market growth opportunities and future cost savings. The main fair value adjustments were related to trademark,

inventory and property, plant and equipment. Goodwill is not tax deductible. Until 31 December 2021, IZOBLOK had contributed

EUR 16.1 million to the group’s net sales, EUR -1.3 million to adjusted EBITDA and EUR -2.8 million to EBIT, excluding transaction

costs. If the acquisition of IZOBLOK had taken place on the 1 January, IZOBLOK would have contributed EUR 36.1 million to the

group’s net sales, EUR -1.1 million to adjusted EBITDA and EUR -4.4 to EBIT. Transaction costs amounted to EUR 1.3 million.

million EUR

New share issue 3.1

Cash consideration 13.5

Total 16.6

Recognised amount of identiable assets and acquired liabilities assumed

Trademarks 2.7

Technology 0.9

Other intangible assets 0.6

Property, plant and equipment 20.6

Other xed assets 3.7

Inventory 6.3

Current receivables 8.4

Cash and cash equivalents 1.0

Non-current liabilities -8.6

Deferred tax liability -2.8

Current liabilities -10.1

Total identiable net assets 22.7

Liabilities to non-controlling interests -10.7

Goodwill 4.6

Cash and cash equivalents in acquired business 1.0

Total cash outow from acquisition of business -12.5

The acquisition analysis is preliminary

104104

Kemisol NV

On 29 October 2021, BEWI announced the acquisition of 100 per cent of the shares of the Belgian insulation company Kemisol

group (Kemisol) and on 24 November 2021 the transaction was closed. Kemisol primarily operates in the Benelux region and

is one of the largest producers of EPS in Belgium, oering a wide range of products. In addition to production of EPS based

insulation products, Kemisol distributes other insulation products such as IKO Enertherm, Ursa Foam, Styrisol and Knauf glass

wool. Kemisol is consolidated as from 1 December.

At the time of the release of this report, the acquisition analysis for Kemisol is preliminary and gave rise to a goodwill of EUR 12.1

million. A complete acquisition analysis is expected to be presented in the rst half of 2022, leading to fair value adjustments of

intangible assets and inventories and a corresponding change in goodwill. Goodwill is not tax deductible. Until 31 December

2021, Kemisol had contributed EUR 2.1 million to the group’s net sales, EUR 0.2 million to adjusted EBITDA and EUR 0.1 million

to EBIT, excluding transaction costs. If the acquisition of Kemisol had taken place on the 1 January, Kemisol would have contrib-

uted EUR 33.9 million to the group’s net sales, EUR 6.1 million to adjusted EBITDA and EUR 5.2 million to EBIT. Transaction costs

amounted to EUR 0.3 million.

million EUR

Cash consideration 45.0

Total 45.0

Recognised amount of identiable assets and acquired liabilities assumed

Tangible xed assets 12.0

Inventory 3.4

Current receivables 5.9

Cash and cash equivalents 16.6

Non-current liabilities 0.0

Deferred tax liability -2.1

Current liabilities -2.8

Total identiable net assets 32.9

Goodwill 12.1

Cash and cash equivalents in acquired business 16.6

Total cash outow from acquisition of business -28.4

The acquisition analysis is preliminary

Oasis Global II AS, North Pack ApS, BEWi Cellpack A/S (former Honeycomb Cellpack A/S),

Volker Gruppe Ltd and Desom Group AS

On 1 July 2021, BEWI acquired all shares in Oasis Global II AS, Norway, and North Pack ApS, Denmark. The two companies are

trading packaging products for use at sea and the acquisitions are a continuation of the BDH acquisition in 2020. The considera-

tion was paid in cash. The companies are consolidated as from 1 July.

On 13 April 2021, BEWI announced that the company had acquired 51 per cent of the Danish paper packaging company

Honeycomb Cellpack A/S (Honeycomb). Honeycomb provides protective packaging solutions, including design, development

and manufacturing of sustainable packaging which is both recyclable and biodegradable. The consideration was paid in cash.

The company is consolidated as from 1 April. Under the agreement, the seller has a put option to divest the remaining shares

to BEWI in accordance with a predetermined pricing mechanism and within a given time frame. According to the same agree-

ment, BEWi also has a call option to acquire the remaining shares within a certain time frame, calculated according to the same

pricing mechanism. The option has been valued based on a forecast performance for Honeycomb over a three-year period. As

of 31 December 2021, the option was valued at EUR 3.8 million and is reported under Other nancial non-current liabilities in the

balance sheet.

On 6 October 2021, BEWI announced its acquisition of 51 per cent of the UK based company Volker Gruppe, a trader of com-

pacted and recycled material. The company operates two facilities in the UK and Scotland, where they compact material, and

leases compactors to customers. Volker Gruppe is one of the largest suppliers of EPS waste to BEWI Circular, with an annual

collection of approximately 6000 tonnes of EPS, in addition to several other types of waste streams. Volker Gruppe trades and

processes around 25000 tonnes of plastics and paper per year globally. BEWI has a future option to acquire the remaining 49

per cent of the shares in Volker Gruppe. The company is consolidated as from 1 October.

On 1 October 2021, BEWI also acquired all shares in Desom group which consists of Desom AS, Norway, and Embanor AS,

Norway. The two companies are trading packaging products for sh, meat and dairy products, and are a complement to the

BDH business acquired in 2020. The companies are consolidated as from 1 October.

The total of Oasis Global II AS, North Pack ApS, BEWi Cellpack A/S, Volker Gruppe Ltd and Desom group AS acquisition analyses

gave rise to a goodwill of EUR 11.9 million, attributable to estimated synergies. Goodwill is not tax deductible.

Until 31 December, these ve acquisitions had contributed EUR 10.6 million to the group’s net sales, EUR 1.6 million to adjusted

EBITDA and EUR 1.4 million to EBIT, excluding transaction costs. If the acquisition of these companies had taken place on

1 January, they would have contributed EUR 29.5 million to the group’s net sales, EUR 3.2 million to adjusted EBITDA and EUR 2.6

to EBIT. Transaction costs amounted to EUR 0.4 million.

105105

million EUR

Value put/call option 49% 3.8

Cash consideration 10.6

Total 14.4

Recognised amount of identiable assets and acquired liabilities assumed

Property, plant and equipment 2.8

Other xed assets 0.0

Inventory 1.3

Current receivables 5.2

Cash and cash equivalents 1.7

Non-current liabilities -3.3

Deferred tax liability -0.4

Current liabilities -4.5

Total identiable net assets 2.9

Liabilities to non-controlling interest -0.5

Goodwill 11.9

Cash and cash equivalents in acquired business 1.7

Total cash outow from acquisition of business -8.9

The acquisition analysis is preliminary

Final settlement BEWi Drift Holding AS (BDH) and acquisition of non-controlling interests

In 2021, the nal purchase price for the BDH group, acquired in 2020, was settled through a cash payment of EUR 2.8 million,

which was EUR 0.4 million more than estimated on 31 December 2020. BEWI has during the year also acquired non-controlling

interests in two subsidiaries for a cash consideration of EUR 1.4 million.

Note 15 Sale of business

Sale of business during the year

On 20 December 2021, BEWI divested Biobe AS to BE Form Holding AS, a company wholly owned by BEWI Invest AS, the major-

ity owner of BEWI, 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 carries a four per cent interest and shall be settled on 1 June 2022 at the latest. Until the

date of divestment, Biobe contributed EUR 4.9 million the group’s net sales, EUR 1.1 milllion to adjusted EBITDA and EUR 1.3 to

EBIT in 2021.

million EUR

Promissory note 2.0

Cash consideration 4.2

Total 6.2

Recognised amount of identiable assets and liabilities

Goodwill 1.1

Customer relations 0.5

Technology 0.7

Other intangible assets 0.5

Property, plant and equipment 0.8

Other xed assets 0.1

Inventory 1.7

Current receivables 1.3

Cash and cash equivalents -0.1

Non-current liabilities -0.2

Deferred tax liability -0.1

Current liabilities -1.2

Total identiable net assets 5.1

Cash and cash equivalents in sold business -0.1

Total cash inow from sale of business 4.3

106106

Note 16 Shares in associates

Name

Carrying

amount

31 Dec 2020

Acquisitions

during the

year Dividend

Share of

income

Exchange

dierence

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 - - - 0.3

BEWI EPS ehf. - 0.8 - - - 0.8

Total 8.0 1.1 -1.0 5.7 0.1 13.7

Name

Carrying

amount

31 Dec 2019

Acquisitions

during the

year Dividend

Share of

income

Exchange

dierence

Carrying

amount

31 Dec 2020

HIRSCH Porozell GmbH 1.3 - -0.5 1.6 - 2.4

HIRSCH France SAS 0.2 1.7 - 3.5 - 5.4

Jablite Group Ltd - 0.3 - -0.2 - 0.1

Total 1.5 2.0 -0.5 4.9 - 8.0

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. In 2020 share of income from HIRSCH France SAS included a simular positive amount of EUR 3.5

million, corresponding to BEWI´s share of reversal of negative goodwill.

Non-current receivables associates 31 Dec 2021 31 Dec 2020

As of 1 January 4.1 2.5

Loans granted - 3.1

Exchange rate dierence 0.1 0.2

Converted to equity - -1.7

As of 31 December 4.2 4.1

BEWI holds a receivable from Hirsch France SAS of EUR 2.3 million, carrying an interest of 6 month Euribor, with a zero interest

rate oor, plus a margin of 5.0 per cent. BEWI also holds a receivable from Jablite Group Ltd of GBP 1.5 million, carrying an

interest of 4 per cent over the base rate of the bank of England.

Summarised nancial information for associates

2021 Net sales EBITDA

Operating prot

(EBIT) Net prot

HIRSCH Porozell GmbH 116.9 18.0 14.6 9.9

HIRSCH France SAS 77.5 5.4 2.8 2.0

Jablite Group Ltd

28.4 1.7 1.5 1.1

Inoplast S.R.O 4.0 0.2 0.1 0.1

BEWI EPS ehf. - - - -

31 Dec 2021

Non-current

assets Current assets

Non-current

liabilities Current liabilities Net debt

HIRSCH Porozell GmbH 31.3 35.2 13.4 29.6 10.8

HIRSCH France SAS 36.9 29.2 29.1 16.3 17.5

Jablite Group Ltd 2.1 2.3 1.3 2.4 1.0

Inoplast S.R.O 1.0 0.6 0.1 0.4 0.3

BEWI EPS ehf. - - - - -

EBITDA, EBIT and net prot for Jablite Group Ltd in the table above do not include EUR 1.8 million in reversal of negative goodwill, which impacted the results of

the company positively in 2021. BEWI’s share of that, EUR 0.9 million, is however included in the share of income from associates reported for 2021. The balance

sheets items in the table above are also adjusted to reect 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.

107107

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.

Jablite Group Ltd (49 per cent ownership)

In June 2020, BEWI invested 49 per cent in a newly established company, Jablite Group Ltd, which is operating three production

sites in the UK.

Inoplast S.R.O (34 per cent ownership)

In June 2021, BEWI invested 34 per cent of the Czech recycling company Inoplast S.R.O. Inoplast specialises in recycling of

plastics, mainly expanded polystyrene (EPS), but also other type of plastics.

BEWI EPS ehf. (49 per cent ownership)

BEWI invested 49 per cent of the company BEWI EPS ehf located on Iceland. The company has not yet commenced operations.

108108

Note 17 Financial instruments per category

31 December 2021

million EUR

Financial assets

measured at fair value

through prot 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 asset 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 prot 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 nancial non-current liabilities

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 nancial 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.

31 December 2020

million EUR

Financial assets

measured at fair value

through prot and loss

Financial assets

measured at

amortised cost Total

Balance sheet assets

Other long-term receivables - 4.1 4.1

Participations in other companies 9.9 - 9.9

Accounts receivables - 58.3 58.3

Cash and cash equivalents - 51.4 51.4

Total 9.9 113.8 123.7

31 December 2020

million EUR

Financial liabilities

measured at fair value

through prot and loss

Financial liabilities

measured at

amortised cost Total

Balance sheet liabilities

Non-current bond loan - 137.9 137.9

Non-current liabilities to credit institutions - 1.0 1.0

Non-current liabilities leases - 69.2 69.2

Current liabilities to credit institutions - 0.8 0.8

Overdraft facillity - 0.4 0.4

Current liabilities leases - 12.3 12.3

Current derivative liability 0.9 - 0.9

Account payables - 54.9 54.9

Total 0.9 276.5 277.4

109109

Note 18 Account receivables

million EUR 31 Dec 2021 31 Dec 2020

Accounts receivables 99.8 59.0

Deducted: provisions for impairment for doubtful receivables -1.0 -0.7

Accounts receivables - net 98.8 58.3

The ageing analysis of all account receivables is clear from below:

million EUR 31 Dec 2021 31 Dec 2020

Not yet matured 86.3 52.3

1–30 days 10.4 4.4

31–60 1.7 1.2

> 61 days 1.5 1.1

Deducted: provisions for impairment for doubtful receivables -1.0 -0.7

Accounts receivables - net 98.8 58.3

31 Dec 2021 31 Dec 2020

Matured account receivables not part of the provisions for impairment for doubtful receivables 12.6 5.9

Carrying amounts, per currency, for account receivables and other receivables are the following:

31 Dec 2021 31 Dec 2020

SEK 8.1 6.7

EUR 56.5 28.4

GBP 0.8 0.5

NOK 16.9 11.6

DKK 14.9 9.6

ISK 1.3 1.1

Other 0.4 0.4

98.8 58.3

The group is applying the simplied 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 charac-

teristics. BEWiSynbra’s principles for writing o 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, identied

payment behavior, company specic information such as changes in company management or lost contracts and macro-eco-

nomic 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.

110110

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 397.1 million (EUR 216.4 million).

EUR 1.2 million (EUR 0.1 million) was expensed as write-downs of inventory in 2021. The group reversed EUR 0.5 million (EUR 0.1

million) in 2021 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 20 Prepaid expenses and accrued income

million EUR 31 Dec 2021 31 Dec 2020

Prepaid energy tax expenses 0.4 0.5

Accrued bonus and discounts 0.5 0.1

Other items 4.0 2.1

Total 5.0 2.7

Note 21 Cash and cash equivalents

million EUR 31 Dec 2021 31 Dec 2020

Bank balances 142.3 51.4

Note 22 Share capital

The number of shares as of 31 December 2021 amounted to 156610804, each with a par value of NOK 1. Each share entitles to

one vote. All shares issued by the parent company are fully paid.

BEWiSynbra Group AB

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 (SEK)

Par value

(SEK)

As of 31 Dec 2019 138937980 1347209 0.009696

New share issue 17 Aug 2020 5005691 48538 143943671 1395747 0.009696

As of 21 Aug 2020 143943671 1395747 0.009696

BEWI ASA

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)

Incorporation of

BEWI ASA New share issue 29 Jul 2020 1000000 1000000 1000000 1000000 1.00

Share capital

decrease 21 Aug 2020 -1000000 -1000000 - - 1.00

New share issue 21 Aug 2020 143943671 143943671 143943671 143943671 1.00

1.00

New share issue 25 Nov 2020 3571429 3571429 147515100 147515100 1.00

New share issue 9 Dec 2020 476191 476191 147991291 147991291 1.00

New share issue 9 Dec 2020 419583 419583 148410874 148410874 1.00

As of 31 Dec 2020 148410874 148410874 1.00

New share issue 6 May 2021 7067138 7067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

111111

On 17 August 2020, an extraordinary general meeting of BEWiSynbra Group AB decided on a directed new share issue of SEK 97

million, the equivalent of EUR 9.5 million, by the issuance of 5005691 new shares, as part of the consideration to acquire BEWi

Drift Holding AS.

In connection with the preparation for the admission to trading on Euronext Growth Oslo, all of the shares in BEWiSynbra Group

AB were on 21 August 2020 contributed to the company against an issuance of a total of 143943671 shares in the company to

the shareholders of BEWiSynbra, simultaneously with a write down of the existing share capital of the company (referred to as

the reorganisation), which thereby established the same shareholder structure in the company as in BEWiSynbra immediately

prior to the reorganisation. The rationale for the reorganisation was to establish the company as the new top holding company

of BEWiSynbra ahead of the admission to trading on Euronext Growth Oslo.

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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, nance 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602, equivalent to 20 per cent of the share capital at the time the authorisation was granted. The authorisation is

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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.

On the 3 June 2021, 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547801, 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 2021, no shares had been bought back.

Largest shareholders

Name Shares Per cent

Frøya Invest AS

88333152 56.40

Kverva Industrier AS 15292424 9.76

DnB NOR Bank ASA Meglerkonto Innland 6695400 4.28

Nordea Bank Abp 5426613 3.47

JP Morgan Bank Luxembourg SA 5187676 3.31

Skandinaviska Enskilda Banken AB 4287115 2.74

EBE Eiendom AS 2529637 1.62

Union Bancaire UBP SA 2008910 1.28

Tredje AP-Fonden 1724879 1.10

Nordnet Bank AB 1677616 1.07

Other 23447382 14.97

Total 156610804 100.00

Frøya Invest AS, KMC Family AS and BEWi Holding AS are all owned by members of the Bekken family.

112112

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

2020 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 represent 1.8 per cent of the number of shares outstanding as of

31 December 2021. 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 protability 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

participants 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 ve days preceding the grant date on 19 November 2020.

The gain per option may however not exceed the strike price at the time of exercise, multiplied by three, minus the 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 ve 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 full 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, multi-

plied 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.

Interest-bearing liabilities

MSEK 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 -

The total value of the options granted is EUR 1.4 million. EUR 0.7 million (0.1) of that was recognised as personnel costs during the

year. In addition, EUR 1.8 million (0) in personnel costs related to social security charges were recognised during the year.

The change in the number of options outstanding during the year is presented in the table below:

2021 2020

Outstanding as of 1 January 2625000 -

Granted during the year 305000 2625000

Adjusted 7500 -

Terminated -175000 -

Outstanding as of 31 December 2762500 2625000

Vested but no exercised 562500 -

113113

Note 24 Earnings per share

million EUR 2021 2020

Prot for the period attributable to parent company shareholders (million EUR) 35.7 30.1

Average number of shares 153336017 141130072

Eect on options to employees 780351 -

Diluted average number of shares 154116368 141130072

Earnings per share (EPS), basic (EUR) 0.23 0.21

Earnings per share (EPS), diluted (EUR) 0.23 0.21

Earnings per share (EPS), basic (NOK) 2.37 2.27

Earnings per share (EPS), diluted (NOK) 2.36 2.27

EPS in NOK is calculated using the average rate in the period

The number shares outstanding have increased from 1484101874 to 156610804 in 2021 in two new share issues, one in the

second quarter and one in the third quarter. Earnings per share is calculated by dividing prot attributable to parent company

shareholders by the weighted number of ordinary shares during the period. The weighted number of ordinary shares up until

21 August 2020 corresponds to the number of shares in BEWiSynbra Group AB, as further described in note 1.

Note 25 Borrowings

Interest-bearing liabilities

million EUR 31 Dec 2021 31 Dec 2020

Non-current

Bond loan 246.1 137.9

Liabilities to credit institutions 9.8 1.0

Liabilities leases 66.1 69.2

Total long-term borrowings 322.0 208.1

Current

Bond loan - -

Liabilities to credit institutions 3.0 0.8

Liabilities leases 13.0 12.3

Overdraft 0.8 0.4

Total current borrowings 16.7 13.5

Total borrowings 338.7 221.6

Specication of net debt

Net debt by the end of the reporting period, million EUR 31 Dec 2021 31 Dec 2020

Interest-bearing liabilities 338.7 22166

Cash and cash equivalents -142.3 -51.4

Net debt in including IFRS 16 196.4 170.2

Adding back IFRS 16 leasing liabilities -76.1 -78.5

Net debt excluding IFRS 16 120.3 91.7

Change in net debt, million EUR 31 Dec 2021 31 Dec 2020

Change in interest-bearing liabilities 117.2 30.9

Change in cash and cash equivalents

Impact from cash ow for the period -89.1 4.8

Impact from exchange dierences -1.8 0.1

Change in net debt including IFRS 16 26.3 35.8

Adding back change in IFRS 16 leasing liabilities 2.4 -45.6

Change in net debt excluding IFRS 16 28.7 -9.8

114114

Change in interest-bearing liabilities 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 ow aecting changes

Borrowings 250.0 2.4 - - 0.3 252.7

Financing/transaction costs -4.6 - - - - -4.6

Repayment of loans -140.0 -1.5 - - -0.4 -141.9

Repayment of leasing liabilities - - -11.4 - - -11.4

Total cash ow in nancing activities 105.4 0.9 -11.4 - -0.1 94.8

Changes not aecting cash ow

Through acquisitions - 10.3 3.0 - 0.5 13.8

Through divestments - - -0.6 - - -0.6

Capitalised leasing - - 5.4 - - 5.4

Amortisation nancing costs 2.8 - - - - 2.8

Exchange dierences - -0.2 1.1 - - 0.9

Total changes not aecting cash ow 2.8 10.1 8.9 - 0.5 22.3

Total 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

Change in interest-bearing liabilities Bond loan

Liabilities

to credit

institutions

Liabilities

leasing

Factoring

debt Overdraft Total

Interest-bearing liabilities as of

31 December 2019 152.1 1.8 36.1 0.8 - 190.7

Cash ow aecting changes

Borrowings - - - - 0.4 0.4

Repayment of loans -14.8 -26.2 - -0.8 - -41.8

Repayment of leasing liabilities - - -7.6 - - -7.6

Total cash ow in nancing activities -14.8 -26.2 -7.6 -0.8 0.4 -49.1

Changes not aecting cash ow

Through acquisitions - 26.6 15.4 - - 42.0

Capitalised leasing - - 37.0 - - 37.0

Amortisation nancing costs 1.2 - - - - 1.2

Exchange dierences -0.6 -0.3 0.6 - - -0.3

Total changes not aecting cash ow 0.6 26.3 53.0 - - 80.0

Total change -14.2 - 45.4 -0.8 0.4 30.9

Interest-bearing liabilities as of

31 December 2020 137.9 1.8 81.5 - 0.4 221.6

115115

Bond loans

Frame Amount outstanding Date of issuance

Maturity/redemtion

date

EUR 250 million EUR 250 million 3 September 2021 3 September 2026

EUR 100 million EUR 75 million 19 April 2018 6 September 2021

EUR 115 Million EUR 65 million 22 November 2019 6 September 2021

In 2021, the group was renanced. On 6 September 2021, the EUR 75 million bond loan and the EUR 65 million bond loan, with

maturity dates on 19 April 2022 and 22 November 2023 respectively, were redeemed. A new bond loan of EUR 160 million,

under a frame of EUR 250 million, was issued on 3 September. EUR 4.2 million was paid in early redemption and early consent

fees and expensed in the income statement. EUR 1.4 million in capitalised nancing costs attributable to the bonds redeemed

was also expensed. On 15 November 2021, another EUR 90 million was issued under the EUR 250 million frame, thereby utilising

the complete frame available. 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 nancing costs, BEWI received EUR 245.4 million in cash from the bond

issued during the year. The bonds are recognised under the eective 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 2021 2020 2021 2020

EUR 250 million Euribor 3 m + 3.15% 2.58–2.60% - 3.09% -

EUR 75 million Euribor 3 m + 4.75% 4.20–4.24% 4.24–4.50% 5.11% 5.32%

EUR 65 million Euribor 3 m + 3.40% 2.85–3.89% 2.89–3.18% 3.54% 3.70%

Liabilities to credit institutions and factoring debt

Interest-bearing liabilities in acquired subsidiaries are normally settled and renanced internally after the acquisition. However, in

a few specic casses liabilities to credit institutions in acquired companies, including overdraft facilities, have not been subject

renancing post acquisition. Such liabilities to credit institutions have carried an interest in the range of 1.0–6.0 per cent during

2021 (1.5–6.0 per cent). As of 31 December 2021, a majority of the liabilities to credit institutions, as well as the ovedraft recog-

nised as of that date, were attributable to the acquisition of IZOBLOK.

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 nancial 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 4.0–7.6

per cent for contracts maturing within 1–3 years to 5.2–12.9 per cent 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 3.25–7.0 per cent, corresponding to the implicit rates of the contracts.

Overdraft facility

In connection with the renancing in 2021, the overdraft facility was increased to EUR 80 million (from SEK 375 million or the

equivalent of EUR 37.4 million as of 31 December 2020) and is now granted by two banks. As of 31 December 2021, nothing of

that overdraft facility was utilised. As part of the overdraft facility arrangement, one of the two banks provides a multi-currency

cash pool to the group. Interest is charged for net overdraft in any currency within the cash pool, with the interest rate adjusted

for the leverage of the group, based on predened thresholds. Leverage is calculated as net debt divided by adjusted EBITDA

(as dened in the revolving credit facility agreement). In 2021, the interest rate amounted to 0.75–1.25 per cent on overdraft,

whereas a lower percantage of that was applied on unused credit facility.

million EUR 31 Dec 2021 31 Dec 2020

Overdraft facility (equivalent amount in million EUR) 80 37.4

Overdraft utilised - -

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 dened as net debt to

EBITDA and Interest Coverage Ratio as EBITDA to net nance charges, where both EBITDA and net nance charges are adjusted.

EBITDA is adjusted for non-recurring items, as dened 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 nancial indebtedness. The group has not been in breach of any covenants in 2021 or 2020. The revolving credit facility is a

super senior credit facility and the bond loan is subordinated the revolving credit facility.

In connection with the renancing in 2021, securities are no longer granted for the revolving credit facility and the bond loan.

Liabilities to credit institutions and overdraft facilities not renanced post acquisition in 2021 are however subject to sucurities

granted in the form of business and property mortgages as well as securities in other assets. The value at the balance sheet day

of the securities provided, is presented in note 30 Pledged assets.

116116

Currency exposure

Carrying amounts per currency (in millions) for the group’s interest-bearing liabilities are as follows:

31 Dec 2021 31 Dec 2020

million EUR Incl. IFRS 16 Excl. IFRS 16 Incl. IFRS 16 Excl. IFRS 16

SEK 8.7 0.2 9.7 0.7

EUR 287.8 259.7 168.4 139.2

NOK 24.4 2.1 26.6 2.5

DKK 17.2 - 16.2 0.1

GBP - - - -

ISK 0.6 0.6 0.7 0.7

338.7 262.6 221.6 143.1

Maturity

The tables below presents the maturity of the discounted cash ows of the group’s interest-bearing liabilities.

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 denition 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 30.2

As of 31 December 2020 < 1 yr. 1–2 yr. 2–5 yr. > 5 yr.

Bond loans - 74.1 63.8 -

Liabilities to credit institutions 0.8 0.7 0.1 0.2

Liabilities leases according to denition in IAS 17 1.3 1.0 0.6 0.1

Additional liabilities leases due to IFRS 16 11.1 9.7 22.9 34.8

Overdraft 0.4 - - -

Total 13.6 85.5 87.4 35.1

Note 26 Pensions and similar obligations to employees

The group provides dened benet pension plans in Finland, Norway and in the UK. The dened benet pension plans in the

UK, which are closed for new participants, and for which no recurring contributions are made,originate from the acquisition of

Synbra and relate 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 plans in Norway originate from an acquisition in 2020 and relate to a limited

number of people that are no longer working for the group and the plans are closed for new participants.

The dened benet 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 dened benet pension plans, the group also

provides other long-term benets in the Netherlands through a so called Jubilee plan, which entitles the participants salary

benets 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 benets.

117117

The amounts reported on the balance sheet have been calculated as follows:

Dened benet pension plans Other long-term benets

million EUR 31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020

Present value of funded obligations -49.6 -50.7 - -

Fair value of plan assets 56.0 52.5 - -

6.4 1.8 - -

Present value of unfunded obligations - 0.0 -1.1 -1.1

Net asset(+)/liability(-) as of 31 December - 1.8 -1.1 -1.1

Net pension asset

United Kingdom 6.7 3.2 - -

6.7 3.2 - -

Pension obligations and other long-term benets

Netherlands - - -1.1 -1.1

Finland -0.3 -0.4 - -

Norway - 0.0 - -

United Kingdom - -1 - -

-0.3 -1.4 -1.1 -1.1

The amounts reported on the balance sheet and changes in the dened benet pension plans during the year are as follows:

Dened benet pension plans Other long-term benets

2021 2020 2021 2020

Costs of service during the current year -0.1 -0.1 - -

Past service cost - 0.0 - -

Net Interest income/expense -0.7 0.0 - -

Total reported in the income statement -0.7 -0.1 - -

Return on plan assets excluding amounts included

in interest expenses/income 2.2 2.7 - -

Actuarial gains/losses from changes in demo-

graphic assumptions 0.2 1.3 - -

Actuarial gains/losses from changes in nancial

assumptions 1.4 -4.4 - -

Experience based gains/losses 0.2 0.4 - -

Total reported in other comprehensive income 4.0 0.0 - -

Dened benet pension plans Other long-term benets

Change in present value of the obligation 31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020

As of 1 January -50.7 -51.8 -1.1 -1.1

Through acquired business - -0.9 - -

Current service cost -0.1 -0.1 - 0.0

Past service cost - 0.0 - -

Interest cost -0.7 -0.9 - 0.0

Actuarial gains/losses 1.8 -2.7 - -

Benets paid 1.9 2.9 - 0.0

Settlements 1.7 0.1 - -

Exchange rate dierences -3.5 2.7 - -

As of 31 December -49.6 -50.7 -1.1 -1.1

118118

Dened benet pension plans Other long-term benets

Change in fair value of plan assets 31 Dec 2021 31 Dec 2020 31 Dec 2021 31 Dec 2020

As of 1 January 52.5 53.3 - -

Through acquired business - 0.9 - -

Interest income 0.7 0.9 - -

Return on plan assets excluding amounts included

in interest expenses/income 2.2 2.7 - -

Contributions by the employer 0.3 0.5 - -

Benets paid -0.2 -2.9 - -

Settlements -3.3 -0.1 - -

Exchange rate dierences 3.9 -2.8 - -

As of 31 December 56.0 52.5 - -

The most critical assumptions for the dened benet pensions were: 31 Dec 2021 31 Dec 2020

United Kingdom

Discount rate 1.85–1.90% 2.00%

Salary increase n/a n/a

Ination (based on CPI and RPI assumption) 3.10–3.60% 2.25–3.30%

Pension increase (based on CPI and RPI assumptions) 2.25–3.45% 1.85–3.15%

Finland

Discount rate 1.00% 0.90%

Salary increase 2.60% 2.00%

Ination 2.10% 1.30%

Cost of living adjustments for pensions in payment - 0.00%

Norway

Discount rate 1.90% 1.70%

Salary increase 2.75% 2.25%

G-regulering 2.50% 2.20%

The range in assumed ination in the United Kingdom reects dierent assumptions used for CPI versus RPI. The range in

assumed pension increase in the UK reects dierent limits linked to years in which the pension was accrued and dierent

ination metrics applied for those limits.

The most critical assumptions for other long-term benets were: 31 Dec 2021 31 Dec 2020

Discount rate 0.60% 0.30%

Salary increase 2.20% 2.20%

The sensitivity in the net dened benet 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% 3.2 -3.4

Salary increase 0.50% - -

Pension increase 0.25% -2.0 2.5

For the nancial year of 2021, the dened pension plan fees are expected to amount to EUR 0.3 million.

Plan asset allocation 31 Dec 2021 31 Dec 2020

Bonds 9.5 8.8

Equities 18.0 10.1

Hedge funds and alternatives 26.3 28.1

Insurance contracts 1.1 3.0

Real estate 0.1 -

Cash 1.0 2.5

56.0 52.5

Analysis of expected undiscounted payments of dened benets 31 Dec 2021 31 Dec 2020

Within 1 year 2.0 2.0

1–2 years 2.2 2.1

3–5 years 6.9 6.6

5 years or more 49.9 50.2

119119

Note 27 Other provisions

million EUR

Restoration of

environment

Restructuring

measures

Health

benets Sta benets Guarantee Total

As of 1 January 2020 0.1 0.1 0.1 0.0 0.3 0.6

Reported in the income statement:

– additional provisions 0.0 0.7 - - 0.1 0.8

– reversal of unutilised amount - -0.1 - - -0.1 -0.1

Exchange dierences - 0.0 - - - 0.0

Utilised durig the year - -0.3 0.0 0.0 -0.3 -0.6

As of 31 December 2020 0.1 0.4 0.1 0.0 0.1 0.7

million EUR

Restoration of

environment

Restructuring

measures

Health

benets Sta benets 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

– reversal of unutilised amount - - - - - -

Exchange dierences - 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

Utilised durig the year 31 Dec 2021 31 Dec 2020

Long-term provision 0.1 0.1

Short-term provision 0.8 0.5

Total provision 0.9 0.7

Note 28 Accrued expenses and deferred income

million EUR 31 Dec 2021 31 Dec 2020

Accrued wage debt 4.6 1.9

Accrued social security fees 3.8 1.3

Accrued holiday pay including social security fees 11.6 10.3

Accrued customer bonuses 8.7 6.3

Accrued interest 0.7 0.8

Other items 10.9 5.9

Total 40.2 26.5

Note 29 Contingent liabilities

million EUR 31 Dec 2020 31 Dec 2020

Guarantees to suppliers 18.6 11.0

Total 18.6 11.0

120120

Note 30 Pledged assets

million EUR 31 Dec 2021 31 Dec 2020

Business mortgages 2.4 229.7

Pledged shares in subsidiaries - 259.9

Property mortgages 35.0 -

Other pledged assets 26.7 -

Total 64.0 489.6

In 2020 security for the revolving credit facility and the bond loans granted, further described in Note 25 Borrowings, was

provided in the form of business mortgages, pledged shares in subsidiaries and material intra-group loans to subsidiaries. The

business mortgages in the table above correspond to the nominal values of those mortgages. The value of shares in subsidiaries

pledged correspond to the net assets of subsidiaries and sub-groups, as reported in the consolidated accounts, representing a

worst-case scenario. Intra-group loans pledged are eliminated in the consolidation and consequently not included in the table.

In 2021, the group was renanced and all securities regarding the revolving credit facility and the bond loans was released.

Interest-bearing liabilities in acquired subsidiaries are normally settled and renanced internally after the acquisition. However, in

a few specic cases liabilities to credit institutions in acquired companies, including overdraft facilities, have not been renanced

post acquisition. The pleadged assets as of 31 December 2021 are securities for such liabilities.

Note 31 Related parties

Christian Bekken, CEO of BEWi ASA, is together with other members of the Bekken family a major shareholder of the company

through Frøya Invest AS, KMC Family AS and BEWi Holding AS. The Bekken family is also involved in other business activities,

such as property management, and is in that capacity owner of a number of production facilities in which BEWi ASA runs

operations.

Other related parties are the two 34 per cent owned associated companies; Hirsch France SAS and Hirsch Porozell GmbH, the

49 per cent owned associated company Jabalite Group Ltd and the 34 per cent owned associated company Inoplast s.r.o.

Transactions with those companies are presented in the tables below.

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 2021 is presented in

the table below.

Board of Directors

Person Title Shares Options

Shares held by

related parties

Gunnar Syvertsen Chairman 310878 - -

Christina Schauman Director 193452 - -

Stig Waernes Director - - -

Anne-Lise Aukner Director - - -

Rik Dobbeleare Director 98 497 - -

Executive Management

Person Title Shares Options

Shares held by

related parties

Christian Bekken

Chief Executive Ocer 5952 250 000 -

Marie Danielsson Chief Financial Ocer 180452 250 000 -

Jonas Siljeskär Chief Operating Ocer 124126 250 000 -

Christian Bekken owns 5952 shares directly and is part of the Bekken family that holds 97642450 shares (including 6779661 shares under a forward contract)

(directly or indirectly) through the family’s indirect ownership in BEWI Invest AS.

121121

Transactions impacting the income statement

million EUR 2021 2020

Sale of goods to:

HIRSCH France SAS 18.8 5.1

HIRSCH Porozell GmbH 45.3 32.1

Jablite Group Ltd 7.9 4.6

Inoplast s.r.o. 2.9 -

Bekken owned companies 0.1 -

Total 74.9 41.8

Purchase of goods from:

Inoplast s.r.o. 3.4 -

Bekken owned companies 3.1 0.7

Total 6.5 0.7

Interest Income from:

Hirsch France SAS 0.1 0.1

Jablite Group Ltd 0.1 -

Total 0.2 0.1

Rental expenses to:

Bekken owned companies 8.8 3.4

Total 8.8 3.4

In the second quarter of 2021, the nal purchase price for the BDH group, acquired in 2020 from a company owned by members

of the Bekken family, was settled through a cash payment of EUR 2.7 million, which was EUR 0.4 million more than estimated on

31 December 2020. 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 carries a four per cent interest and shall be settled on 1 June 2022 at the latest.

The transactions were conducted on normal market terms.

Transactions impacting the balance sheet

million EUR 31 Dec 2021 31 Dec 2020

Non-current receivable

Bekken owned companies 0.1 0.1

HIRSCH France SAS 2.3 2.3

Jablite Group Ltd 1.8 1.7

Total 4.2 4.1

Current receivables

Bekken owned companies 4.1 1.5

HIRSCH Porozell GmbH 0.1 0.6

Inoplast s.r.o. 0.6 -

Total 4.8 2.1

Current liabilities

Bekken owned companies - 3.8

Inoplast s.r.o. 0.6 -

Total 0.6 3.8

Interest terms for the lending to associated companies are presented in note 16 Shares in associates.

122122

Note 32 Adjustments for non-cash items, etc.

million EUR 31 Dec 2021 31 Dec 2020

Depreciations, amortisations and write-downs 37.8 30.4

Change in provisions for pension liabilities -0.5 -0.3

Change in other provisions 0.2 0.1

Share of income from associates net of dividend received -4.5 -4.8

Eect of share-based incentive programme 0.7 -

Capital gain from sale of assets and business -1.1 -6.3

Total 32.6 19.1

Note 33 Subsequent events

Extraordinary general meeting February 2022

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 eect of com-

pletion of the Jackon transaction.

The general meeting also approved the nomination committee’s proposal for changes in the composition of the nomination

committee.

Completion of tender oer for all shares in IZOBLOK

With reference to the above information about the tender oer launched on 2 November 2021 for all outstanding shares of

IZOBLOK, the tender oer expired on 28 January 2022, upon which 121 870 shares were acquired. Following the transaction,

BEWI (indirectly) owns 64.28 per cent of the shares, corresponding to 73.21 per cent of the voting rights in IZOBLOK.

Intention to acquire Baltic insulation company

On 18 February 2022, BEWI announced that the company had entered a letter of intent to acquire 100 per cent of a Baltic insula-

tion company. Total consideration was expected to be in line with BEWI’s historical M&As, i.e., with an EV/ EBITDA multiple in the

range of 5 to 7, whereas 50 per cent will be settled in cash and 50 per cent through issuance of consideration shares in BEWI.

The Baltic company operates facilities for manufacturing of insulation solutions and has recorded protable growth recent

years, with net sales in the range of EUR 25 to 30 million and solid EBITDA margins in the range of 10 to 15 per cent.

The rationale for the acquisition is to expand BEWI’s geographic footprint into the Baltics, an interesting region for sales growth,

and for establishing a platform for circular activities.

The acquisition is conditional upon a signed sale and purchase agreement, as well as customary conditions, and closing is

expected in the second quarter of 2022.

Acquisition of Scandinavian paper packaging company

On 28 February 2022, BEWI announced that the company had entered a letter of intent to acquire 100 per cent of a leading

Scandinavian paper packaging company. Furthermore, the company announced on 12 April 2022 that it has signed an agree-

ment to acquire the Norwegian paper packaging company Trondhjems Eskefabrikk, a manufacturer of bre-based packaging

products, such as carton boxes to the food industry.

For 2021, Trondhjems Eskefabrikk had revenues of approximately EUR 13.5 million, up from EUR 11.7 million in 2020. The total

consideration will be settled in cash upon closing and is in line with BEWIs historical M&As, with an EV/EBITDA multiple in the

range of 5 to 7.

The acquisition is conditional upon customary conditions, and closing is expected in the second quarter of 2022.

Progress/ closing of Jackon transaction

Reference is made to information above about BEWI’s oer to acquire all shares in Jackon Holding, including information about

the authorisation from the extraordinary general meeting held 16 February 2022 to issue consideration shares to HAAS AS, the

owner of 50 per cent of Jackon. On 21 February 2022, BEWI announced that a prospectus had been prepared for the purpose

of listing of the consideration shares, and that the prospectus had been approved by the Financial Supervisory Authority of

Norway (Finanstilsynet).

The consideration shares will be issued to HAAS AS (pursuant to a board authorisation) in connection with closing of the

transaction, which is still subject to fullment of outstanding closing conditions, including clearance from relevant competition

authorities.

123123

Income statement of the parent company

million NOK Note 2021 2020

Operating income

Net sales 3 4.0 0.5

Other operating income 0.7 -

Total operating income 4.7 0.5

Operating expenses

Other external costs 13 -39.5 -20.5

Personnel costs 4 -17.1 -11.2

Deprecation of tangible assets - 0.0

Total operating expenses -56.6 -31.7

Operating prot -51.9 -31.2

Financial income 5 115.5 35.0

Financial expense 5 -22.7 -0.5

Financial income and expense - net 92.8 34.5

Prot before taxes 40.8 3.3

Income tax 6 -7.6 0.0

Net prot for the year 33.3 3.3

124124

Statement of nancial position of the parent company

million NOK Note 31 Dec 2021 31 Dec 2020

ASSETS

Non-current assets

Tangible assets

Equipment, tools, xtures and ttings 0.0 0.4

Total tangible assets 0.0 0.4

Financial assets

Shares in subsidiaries 7 3091.2 2910.6

Other nancial assets 0.0 0.1

Receivables from group companies 11 1573.3 -

Total nancial assets 4664.6 2910.7

Total non-current assets 4664.6 2911.1

Current assets

Current receivables

Receivables from group companies 11 160.4 35.5

Prepaid expenses and accrued income 22.5 -

Total current receivables 182.8 35.5

Cash and cash equivalents 8 877.7 75.9

Total current assets 1060.5 111.4

TOTAL ASSETS 5725.1 3022.5

125125

Statement of nancial position of the parent company

million NOK Note 31 Dec 2021 31 Dec 2020

EQUITY AND LIABILITIES

Equity

Restricted equity

Share capital (156610 804 shares) 9,10 156.6 148.4

Total restricted equity 156.6 148.4

Non-restricted equity

Additional paid-in capital 10 2969.5 2815.7

Prot or loss brought forward 10 0.0 -

Net prot or loss for the year 10 33.3 3.3

Total non-restricted equity 3002.7 2819.0

Total equity 3159.3 2967.4

Non-current liabilities

Deferred tax liability 7.5 -

Non-current bond loan 2454.5 -

Total non-current liabilities 2462.0 -

Current liabilities

Liabilities to group companies 11 71.8 38.1

Account payables 10.3 11.2

Other short-term liabilities 2.5 2.7

Accrued expenses and deferred income 19.2 3.1

Total current liabilities 103.8 55.1

TOTAL EQUITY AND LIABILITIES 5725.1 3022.5

Trondheim, Norway, 26 April 2022

The board of directors and CEO

BEWI ASA

Gunnar Syvertsen

Chair of the Board

Anne-Lise Aukner

Director

Rik Dubbalaere

Director

Stig Wærnes

Director

Kristina Schauman

Director

Christian Bekken

CEO

126126

Cash ow statement for the parent company

million NOK Note 2021 2020

Operating cash ow

Income before nancial items -51.9 -31.3

Adjustments for non-cash items, etc 0.4 -

Interest paid and nancing costs -16.2 -0.5

Interest received 19.3 -

Dividend received 35.0 -

Operating cash ow before changes to working capital -13.4 -31.7

Cash ow from working capital changes

Increase/decrease in current receivables -1624.5 -0.6

Increase/decrease in operating debt 43.7 20.1

Total change to working capital -1580.8 19.5

Operating cash ow -1594.2 -12.2

Cash ow from investment activities

Purchase of property plant and equipment - -0.4

Acquisitions of subsidiary -184.5 -

Cash ow from investment activities -184.5 -0.4

million NOK Note 2021 2020

Cash ow from nancing activities

Borrowings, net of transaction costs 2453.0 -

New share issue, net of transaction costs 192.8 89.5

Share capital decrease - -1.0

Dividend -65.3 -

Cash ow from nancing activities 2580.4 88.5

Cash ow for the period 801.8 75.9

Opening cash and cash equivalents 75.9 -

Exchange dierence in cash - -

Closing cash and cash equivalents 877.7 75.9

127127

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 oce located in Trondheim, Norway, and address Postboks 3009, 7441 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 nancial years, unless otherwise specied.

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 diering 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 signicant to the annual

report, are stated in note 4 to the consolidated accounts.

The parent company is through its activities exposed to

several dierent nancial risks: market risk (currency risk

and interest rate risk), credit risk and liquidity risk. The

parent company’s comprehensive nancial risk manage-

ment is focused on the unpredictability of the nancial

markets and strives to minimise any adverse eect on

the consolidated prots. For more information regarding

nancial risks, see note 3 to the consolidated accounts.

The parent company applies accounting principles

diering from those of the group for the areas are stated

below:

Layout

The income statement and statement of nancial 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, dierences arise relating to designations,

in comparison with the consolidated accounts, mainly

concerning the nancial 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 Prot 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.

128128

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 2021 2020

Salary and other remuneration -11.9 -3.0

Social security expenses -4.5 -0.4

Pension costs - dened contribution plans -0.2 -0.0

Total remuneration to employees -16.7 -3.4

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 2021 2020

Salary and other remuneration -2.4 -0.7

Bonus -0.6 -0.2

Pension costs 0.0 0.0

Total remuneration -3.0 -0.9

129129

Average number of employees

2020

Average number

of employees Whereof men

Norway 4 2

2021

Average number

of employees Whereof men

Norway 6 3

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 protability 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 benets during the period of notice, however the salary is deductable to other income.

Note 05 Financial income and expense

million NOK 2021 2020

Interest income, group companies 25.8 0.0

Exchange gains - 0.0

Group contribution 89.7 35.0

Total nancial inome 115.5 35.0

Interest expense -21.0 0.0

Interest expense, group companies -0.5 -0.1

Exchange loss -1.2 0.0

Other nancial expense - -0.4

Total interest expense -22.7 -0.5

Total nancial income and expense - net 92.8 34.5

130130

Note 06 Income tax on the profit for the year

The income tax attributable to the income before taxes diers 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 2021 2020

Income before taxes 40.8 3.3

Income tax calculated using the Norwegian tax rate (22%) -9.0 -0.7

Tax eects attributable to:

Non-deductible costs -0.2 0.0

Deductible expenses not recognised in income statement 1.6 0.7

Total tax reported -7.6 0.0

Unutilised tax loss carry forwards for which no deferred tax assets has been reported amount to NOK 1.6 million (0.0).

Note 07 Shares in subsidiaries and associates

Subsidiaries

million NOK 31 Dec 2021 31 Dec 2020

As of 1 January 2 910.6 0.0

Acquisition of subsidiaries 180.6 2 910.6

As of 31 December 3 091.2 2 910.6

BEWI ASA was incorporated on 29 July 2020. On 21 August 2020 all of the shares in BEWiSynbra AB were contributed to BEWI

ASA against an issuance of a total of 143943671 shares in BEWI ASA to the shareholders of BEWiSynbra AB (a share exchange),

simultaneously with a write-down of the existing share capital of BEWI ASA. This thereby established the same shareholder

structure in BEWI ASA as in BEWiSynbra immediately before the reorganisation. Following the legal restructuring, BEWI ASA has

become the new parent company of the group.

The rationale for the reorganisation was to establish BEWI ASA as the new top holding company of BEWiSynbra ahead of the

admission to trading on Euronext Growth (previously named Merkur Market) on 28 August 2020. On 18 December 2020, BEWI

ASA was transferred to Oslo Børs. The non-cash contribution was booked at fair value in BEWi ASA according to Norwegian

Generally Accepted Accounting principles.

Name Reg. no.

Reg. oce/

country No of shares

Proportion of

shares directly

held by the

parent (%)

Carrying

amount

31 Dec 2021

Carrying

amount

31 Dec 2020

Directly owned

BEWI Synbra Group AB 556972 -1128 Solna, Sweden 100 100% 2 910.6 2 910.6

BEWI Poland Spotka zoo 0000722895 Poland 100 100% 180.6 -

131131

Subsidary Reg. no. Reg. oce / 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

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

BEWI Cellpack A/S 25 85 91 54 Denmark 51

BEWI Circular Denmark A/S 41 40 69 84 Denmark 100

BEWI Denmark A/S 31867304 Denmark 100

BEWi Cabee Oy 2083942-9 Finland 100

BEWi Insulation Oy 0606536-6 Finland 100

BEWi M-plast Oy 0506033-6 Finland 100

BEWi RAW Oy 10974747-6 Finland 100

Izoblok GmbH HRB 508966 Germany 54.66

BEWI Iceland ehf. 620818-0890 Iceland 85

Besto Verpakkingsindustrie BV 5034571 Netherlands 100

BEWI RAW BV 20033648 Netherlands 100

De Wijs-van Loon B.V 15051893 Netherlands 75

Ertecee BV 6010160 Netherlands 100

Genevad Netherlands BV 70824312 Netherlands 100

IsoBouw Systems BV 17046081 Netherlands 100

Moramplastics BV 9036097 Netherlands 100

Poredo B:V 71961577 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 18115693 Netherlands 100

Subsidary Reg. no. Reg. oce / country

Proportion of

shares held by

the parent (%)

Synprodo Produktie BV 10012456 Netherlands 100

BEWI Building & Industry AS 912 038 084 Norway 100

BEWI Circular AS 922 724 369 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 Loop AS 995 813 068 Norway 100

BEWI Norplasta AS 989 953 133 Norway 100

BEWI Norway AS 995 172 895 Norway 100

BEWI Recycle AS 922 724 385 Norway 100

Desom AS 922 176 078 Norway 100

Embanor AS 988 928 178 Norway 100

BEWI Global AS 925 838 039 Norway 100

Izoblok S.A 00000388347 Poland 54.66

Plastimar SA 508413770 Portugal 100

BEWI Circular Portugal, LDA 515767832 Portugal 66

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

BEWi Insulation AB 556541-7788 Sweden 100

BEWi Packaging AB 556961-3309 Sweden 100

Genevad Holding AB 556707-1948 Sweden 100

BEWI Norplasta AB 556649-7821 Sweden 100

Synbra Holding UK Ltd 9502640 United Kingdom 100

Volker Gruppe Ltd NI627429 United Kingdom 51

132132

Associates

Name Reg. no.

Reg. oce

/ country

Proportion of

shares held by

the parent (%)

Indirectly owned

HIRSCH Porozell GmbH FN 117255i Germany 34

HIRSCH France SAS 92044 France 34

Jablite Group Ltd 124 6 41113 United Kingdom 49

Inoplast S.R.O 27877574 Czech Republic 34

BEWI EPS ehf 580121-1600 Iceland 49

Other shares and participations

Name Reg. no.

Reg. oce

/ country

Proportion of

shares held by

the parent (%)

Indirectly owned

Polystyvert Inc. N/A Canada 3.71

Polystyrene Loop Cooperatief U.A. 68399812 Netherlands 13.8

Note 08 Cash and bank balances

million NOK 31 Dec 2021 31 Dec 2020

Restricted cash 0.6 0.6

Other cash and bank balances 877.1 75.3

Total 877.7 75.9

Note 09 Share capital

For information regarding the share capital, see note 22 to the consolidated accounts.

Note 10 Equity

Restricted equity Non-restricted equity

million NOK Share capital

Additional

paid-in capital

Prot or loss

brought

forward Total

Balance carried forward as of 31 December 2019 - - - -

New share issue 148.4 2815.7 - 2964.1

Net prot or loss for the year 3.3 3.3

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 prot or loss 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

133133

Note 11 Receivables and liabilities

million NOK 31 Dec 2021 31 Dec 2020

Balance sheet assets

Financial assets measured at amortised cost

Non-current receivables from group companies 1573.3 -

Current receivables from group companies 160.4 35.5

Total 1733.7 35.5

Balance sheet liabilities

Financial liabilities measured at amortised cost

Bond loan 2454.5 -

Non-current liabilities to group companies - -

Current liabilities to group companies 71.8 38.1

Total 2526.3 38.1

The company has no liabilities with maturity over ve years.

Bond loans

Frame Amount outstanding Date of issuance Maturity/redemtion date

EUR 250 million EUR 250 million 3 September 2021 3 September 2026

In 2021, the group was renanced. A new bond loan of EUR 160 million, under a frame of EUR 250 million, was issued on

3 September by BEWI ASA. On 15 November 2021, another EUR 90 million was issued under the EUR 250 million frame, thereby

utilising the complete frame available. The EUR 250 million bond, which is unsecured and linked to a sustainability framework,

matures on 3 September 2026, with a possibility for BEWI ASA to unilaterally decide on an early redemption after 3 March 2025

of 50 per cent of the bonds outstanding at that date. Net of nancing costs, BEWI received EUR 245.4 million in cash from the

bond issued during the year. The bonds are recognised under the eective 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.

Bond loan Interest terms Nominal interest 2021 Average interest 2021

EUR 250 million Euribor 3 m + 3.15% 2.58-2.60% 3.09%

Note 12 Related parties

Christian Bekken, CEO of BEWI ASA, is together with other members of the Bekken family a major shareholder of the company

through Frøya Invest AS, EBE Eiendom AS, BEWI Invest AS and Bekken Invest AS. More information on related party transactions

are reported in note 31 to the consolidated accounts. Information on remuneration of management and the board of directors

is found in note 6 top the consolidated accounts.

Note 13 Remuneration to auditors

million NOK 2021 2020

The audit assignment -1.0 -0.6

Audit activites other than the audit assignment -0.6 -1.2

Tax advice - -0.4

Other services -0.8 -1.5

Total remuneration to employees -1.8 -3.7

Other services and audit activites other than the audit assignment in 2021 mainly includes costs in relation to the Jackon trans-

action and in 2020 IPO related costs.

134134

To the General Meeting of BEWI ASA

Independent Auditor’s report

Report on the Audit of

the Financial Statements

Opinion

We have audited the nancial statements of BEWI

ASA, which comprise:

• The nancial statements of the parent company

BEWI ASA (the Company), which comprise the

statement of nancial position as at 31 December

2021, the income statement and cash ow

statement for the year then ended, and notes to

the nancial statements, including a summary of

signicant accounting policies, and

• The consolidated nancial statements of BEWI

ASA and its subsidiaries (the Group), which

comprise the statement of nancial position as at

31 December 2021, the comprehensive income

statement, statement of changes in equity and

cash ow statement for the year then ended,

and notes to the nancial statements, including a

summary of signicant accounting policies.

In our opinion:

• the nancial statements comply with applicable

statutory requirements,

• the nancial statements give a true and fair view

of the nancial position of the Company as at

31 December 2021, and its nancial performance

and its cash ows for the year then ended in

accordance with the Norwegian Accounting Act

and accounting standards and practices generally

accepted in Norway, and

• the nancial statements give a true and fair

view of the nancial position of the Group as at

31 December 2021, and its nancial performance

and its cash ows 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 laws and regulations and the

International Ethics Standards Board for Accountants’

International Code of Ethics for Professional

Accountants (including International Independence

Standards) (IESBA Code), and we have fullled our

other ethical responsibilities in accordance with these

requirements. We believe that the audit evidence we

have obtained is sucient 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 two

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 signicance in

our audit of the nancial statements of the current

period. These matters were addressed in the context

of our audit of the nancial statements as a whole,

and in forming our opinion thereon, and we do

not provide a separate opinion on these matters.

Impairment testing of intangible assets with an

indenite useful life involves similar complexity and

risks as the previous year and have been considered a

key audit matter also for 2021. As the Group acquired

six companies this year, we also considered the

resulting Accounting for business combinations as a

key matter for this years audit.

135135

Key Audit Matter How our audit addressed the Key Audit Matter

Impairment testing of intangible assets with an indenite useful life

Goodwill and trademark are signicant assets in the Group’s balance sheet. The carrying amount of goodwill and

trademark amount to respectively EUR 113.0 million and EUR 24.3 million as of December 31, 2021. No impairments

have been recognized in 2021.

The value of goodwill and trademark depends on future income. We focused on this area due to the signicance of

the amount and because the valuation involves management judgement related to assumptions such as projected

future income and costs and discount rate used.

The Group’s principles and methods for accounting and valuation of goodwill and trademark are described in the

annual report under Note 2.4 and note 12.

We obtained an understanding of management’s process related to valuation of goodwill and trademark and tested

whether relevant internal control activities had been implemented.

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 nding material deviations.

We examined how management identied cash-generating units and compared this to how BEWI follows up goodwill

and trademark internally. Further we evaluated the reasonableness of the assumptions and made and management’s

analysis related to changes in signicant parameters, which could lead to a need for impairment.

We challenged management’s use of assumptions related to projected future income 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 the applied growth assumptions were reasonable. Additionally, we assessed man-

agement’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. found that the used discount rate was reasonable.

We also considered whether the information provided in note 2.4 and 12 to the annual report met the IFRS requirements.

136136

Key Audit Matter How our audit addressed the Key Audit Matter

Accounting of business acquisitions

The Group’s principles and methods for accounting and valuation of goodwill and trademark are described in the

annual report under notes 2.2, 2.4 and note 14.

During the past year, BEWI has made six business acquisitions, of which the acquisition of the Belgian company

Kemisol NV and the listed Polish company IZOBLOK S.A. were the most signicant ones.

For each business acquisition, management prepared a purchase price allocation (PPA) analysis in which the dier-

ence between the net assets in the acquired company and the purchase price was allocated to identied assets

from the acquired company. Trademarks, property plant and equipment were among the identied assets. The

residual was allocated to goodwill.

To determine the value of the identied intangible assets, management used judgement and performed

We obtained and reviewed the PPAs and obtained an understanding of how management identied 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 judgement, we examined the acquisition analyses with emphasis on methods and

assumptions used for identifying and valuing intangible assets such as trademark. We traced the information in the

PPAs to the acquired entities’ nancial statements. We tested the mathematical accuracy of the calculations and

challenged management’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 read the relevant notes 2.2, 2.4 and note 14 and found the information and explanations provided sucient.

137137

Other Information

The Board of Directors and the Managing Director

(management) are responsible for the information in

the Board of Directors’ report. The other information

comprises information in the annual report, but does

not include the nancial statements and our auditor’s

report thereon. Our opinion on the nancial state-

ments does not cover the information in the Board of

Directors’ report.

• In connection with our audit of the nancial

statements, our responsibility is to read the Board

of Directors’ report. The purpose is to consider if

there is material inconsistency between the Board

of Directors’ report and the nancial statements or

our knowledge obtained in the audit, or whether

the Board of Directors’ report otherwise appears to

be materially misstated. We are required to report

if there is a material misstatement in the Board of

Directors’ report. 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 nancial statements and

• contains the information required by applicable

legal requirements.

Our opinion on the Board of Director`s report

applies correspondingly to the report on Corporate

Governance and Corporate Social Responsibility.

Responsibilities of Management for

the Financial Statements

Management is responsible for the preparation of

nancial 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 nancial state-

ments 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 nancial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the nancial 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 nancial 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 nancial 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 nancial 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 inuence the

economic decisions of users taken on the basis of

these nancial 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 nancial statements, whether due

to fraud or error. We design and perform audit

procedures responsive to those risks, and obtain

audit evidence that is sucient 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

procedures that are appropriate in the circum-

stances, but not for the purpose of expressing an

opinion on the eectiveness of the Company’s or

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 signicant doubt on the

Company 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 nancial 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

the Company and the Group to cease to continue

as a going concern.

• evaluate the overall presentation, structure and

content of the nancial statements, including the

disclosures, and whether the nancial statements

represent the underlying transactions and events

in a manner that achieves a true and fair view.

138138

• obtain sucient appropriate audit evidence

regarding the nancial information of the enti-

ties or business activities within the Group to

express an opinion on the consolidated nancial

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 signicant audit ndings,

including any signicant deciencies 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 signicance in the audit of the nancial

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 benets of such communication.

Report on Other Legal and Regulatory

Requirements

Report on compliance with Regulation on

European Single Electronic Format (ESEF)

Opinion

We have performed an assurance engagement

to obtain reasonable assurance that the nancial

statements with le name BEWI-31-12-2021-en.zip

have been prepared in accordance with Section

5-5 of the Norwegian Securities Trading Act

(Verdipapirhandelloven) and the accompanying

Regulation on European Single Electronic Format

(ESEF).

In our opinion, the nancial statements have been

prepared, in all material respects, in accordance with

the requirements of ESEF.

Management’s Responsibilities

Management is responsible for preparing, tagging

and publishing the nancial statements in the single

electronic reporting format required in ESEF. This

responsibility comprises an adequate process and

the internal control procedures which management

determines is necessary for the preparation, tagging

and publication of the nancial statements.

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, 26 April 2022

PricewaterhouseCoopers AS

Kjetil Smørdal

State Authorised Public Accountant

(This document is signed electronically)

139139

Reconciliation alternative performance measures

Alternative performance measures not dened by IFRS

million EUR 2021 2020

Operating income (EBIT) 67.8 39.5

Amortisations 7.6 6.2

EBITA 75.4 45.8

Items aecting comparability 3.4 -5.0

Adjusted EBITA 78.8 40.8

EBITA 75.4 45.8

Depreciations 30.1 24.2

EBITDA 105.5 70.0

Items aecting comparability 3.4 -5.0

Adjusted EBITDA 109.0 65.0

Adjusted EBITA Rolling 12 months 78.8 40.8

Average capital employed 409.6 322.0

Return on average capital employed (ROCE) 19.2% 12.6%

Items aecting comparability

million EUR 2021 2020

IPO related costs 0.0 -2.1

Severance and integration costs -0.1 -0.5

Restructuring costs -0.2 -0.4

Transaction costs -4.4 -1.2

Additional purchase price - 0.0

Capital gains from sale of xed assets 0.2 6.3

Capital loss from sale of xed assets -0.2 -

Capital gain from sale of subsidiary 1.0 -

IT restructuring - -0.4

Closure of production facility -0.6 -

Recognition of negative goodwill in associate 0.9 3.5

Other - -0.2

Total -3.4 5.0

140140

Revenue bridge: Change in net sales from corresponding periods in 2020

million EUR RAW % Insulation % P&C % Circular % Unallocated %

Intra-group

revenue Total net sales %

2020 191.2 146.6 179.9 6.3 0.0 -61.5 462.6

Acquisitions - - 17.8 12.2% 67.9 37.7% 3.1 49.6% - - -0.1 88.8 19.2%

Divestments - - -0.5 -0.4% - - - - - - - -0.5 -0.1%

Currency - - 1.8 1.2% 6.1 3.4% 0.2 3.6% 0.0 N/A -0.2 7.9 1.7%

Organic growth 156.7 82.0% 29.8 20.3% 41.7 23.2% 14.3 226.5% 0.1 N/A -53.1 189.5 41.0%

Total increase/ decrease 156.7 82.0% 48.9 33.3% 115.6 64.3% 17.7 279.7% 0.1 N/A -53.3 285.7 61.8%

2021 347.9 195.4 295.6 24.0 0.1 -114.9 748.2

EBITDA bridge: Change in adjusted EBITDA from corresponding periods in 2020

million EUR RAW % Insulation % P&C % Circular % Unallocated %

Total adjusted

EBITDA %

2020 9.4 26.5 34.1 -1.2 -3.9 65.0

Acquisitions - - 2.4 9.2% 5.5 16.0% 0.1 10.5% 0.0 -1.2% 8.0 12.3%

Divestments - - -0.1 -0.3% - - - - - - -0.1 -0.1%

Currency - - -0.2 -0.7% 0.9 2.7% 0.0 -1.9% -0.3 -8.7% 0.4 0.7%

Organic growth 44.7 474.8% -7.1 -26.8% -0.2 -0.7% 1.7 139.6% -3.3 -85.7% 35.7 55.0%

Total increase/ decrease 44.7 474.8% -4.9 -18.5% 6.1 18.0% 1.8 148.2% -3.7 -95.6% 44.0 67.8%

2021 54.1 21.6 40.3 0.6 -7.6 109.0

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Denitions of alternative performance measures not dened by IFRS

Organic growth Organic growth is dened 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 prot before investments in

xed 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 protability 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 protability over time independent of

corporate tax rates and nancing structures but including depreciations of xed assets used in

production to generate the prots 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 protability 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 protability over time independent of corporate tax rates

and nancing structures. Depreciations are included, however, which is a measure of resource

consumption necessary for generating the result.

Items aecting

comparability

Items aecting 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 aecting 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 aect comparability.

Adjusted (adj.) EBITDA

margin

EBITDA before items aecting comparability as a percentage of net sales. The adjusted EBITDA

margin is a key performance indicator that the group considers relevant for understanding the

protability of the business and for making comparisons with other companies.

Adjusted (adj.) EBITA Normalised earnings before interest, tax and amortisations (i.e., items aecting comparability and

deviations are added back). EBITA is a key performance indicator that the group considers relevant,

as it facilitates comparisons of protability over time independent of corporate tax rates and

nancing structures but including depreciations of xed assets used in production to generate the

prots of the group.

Adjusted (adj.) EBITA

margin

EBITA before items aecting comparability as a percentage of sales. The EBITA margin is a key

performance indicator that the group considers relevant for understanding the protability 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 prots 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 dened 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 benets, 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 nancing

needs.

142142

Appendix

143143

Appendix 1 GRI index

Statement of use BEWI ASA has reported the information cited in this GRI content index for the period 01.2021-31.12.2021 with reference to the GRI Standards.

GRI 1 used GRI 1: Foundation 2021

GRI standard Disclosure Page

GRI 2: General Disclosures 2021 2-1 Organizational details p. 5, 46, 51, 62, 70

2-2 Entities included in the organization’s sustainability reporting p. 20, 81

2-3 Reporting period, frequency and contact point p. 20

2-4 Restatements of information There has been no restatement of information in the reporting period.

2-5 External assurance p. 58, 135-142

2-6 Activities, value chain and other business relationships p. 4, 12-18, 53

2-7 Employees p. 4, 42-43, 150

2-8 Workers who are not employees p. 151

2-9 Governance structure and composition p. 24, 44-45, 51-55

2-10 Nomination and selection of the highest governance body p. 52, 54-55

2-11 Chair of the highest governance body p. 44

2-12 Role of the highest governance body in overseeing the management of impacts p. 24

2-13 Delegation of responsibility for managing impacts p. 24

2-14 Role of the highest governance body in sustainability reporting p. 24

2-15 Conicts of interest p. 56

2-16 Communication of critical concerns p. 24, 43, 50, 53

2-19 Remuneration policies p. 24, 56-60, 95-96, 129

2-20 Process to determine remuneration p. 52, 55-57

2-21 Annual total compensation ratio p. 151

144144

GRI standard Disclosure Page

GRI 2: General Disclosures 2021 2-22 Statement on sustainable development strategy p. 9 -11

2-23 Policy commitments p. 24, 43

2-24 Embedding policy commitments p. 24, 43

2-26 Mechanisms for seeking advice and raising concerns p. 24, 43, 50

2-27 Compliance with laws and regulations p. 24

2-28 Membership associations p. 19

2-29 Approach to stakeholder engagement p. 25, 148-149

2-30 Collective bargaining agreements p. 151

GRI 3: Material Topics 2021 3-1 Process to determine material topics p. 25, 148-149

3-2 List of material topics p. 25

Corruption

GRI 3: Material Topics 2021 3-3 Management of material topics p. 24, 36-37

GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption p. 36-37

205-2 Communication and training about anti-corruption policies and procedures p. 24, 50

205-3 Conrmed incidents of corruption and actions taken p. 24

145145

GRI standard Disclosure Page

Circular economy

GRI 3: Material Topics 2021 3-3 Management of material topics p. 21, 26-30

GRI 301: Materials 2016 301-1 Materials used by weight or volume p. 28-29

301-2 Recycled input materials used p. 28-29

301-3 Reclaimed products and their packaging materials p. 28-29

GRI 306: Waste 2020 306-1 Waste generation and signicant waste-related impacts p. 29

306-2 Management of signicant waste-related impacts p. 29-30

306-3 Waste generated p. 29, 152

306-4 Waste diverted from disposal p. 29, 152

306-5 Waste directed to disposal p. 29, 152

Climate change

GRI 3: Material Topics 2021 3-3 Management of material topics p. 31-36

GRI 305: Emissions 2016 305-1 Direct (Scope 1) GHG emissions p. 32-33 153-154

305-2 Energy indirect (Scope 2) GHG emissions p. 32-33, 153-154

305-3 Other indirect (Scope 3) GHG emissions p. 32-34, 153-154

305-4 GHG emissions intensity p. 33-34, 154

Additional - Climate risk TCFD p. 32, 49

146146

GRI standard Disclosure Page

Supply chain management

GRI 3: Material Topics 2021 3-3 Management of material topics p. 23-24, 36-38

GRI 308: Supplier Environmental Assessment 2016 308-1 New suppliers that were screened using environmental criteria p. 37

308-2 Negative environmental impacts in the supply chain and actions taken p. 37

GRI 414: Supplier Social Assessment 2016 414-1 New suppliers that were screened using social criteria p. 37

414-2 Negative social impacts in the supply chain and actions taken p. 37

Health and safety

GRI 3: Material Topics 2021 3-3 Management of material topics p. 39 - 41

GRI 403: Occupational Health and Safety 2018 403-1 Occupational health and safety management system p. 39

403-2 Hazard identication, risk assessment, and incident investigation p. 39, 49

403-3 Occupational health services p. 39

403-4 Worker participation, consultation, and communication on occupational health and safety p. 39

403-5 Worker training on occupational health and safety p. 39

403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships p. 39, 41

403-8 Workers covered by an occupational health and safety management system p. 39

403-9 Work-related injuries p. 40

147147

Appendix 2 Stakeholder engagement and materiality assessment

A materiality assessment helps BEWI to identify and prioritise sustainability issues that present the greatest risk and

opportunities for BEWI. The materiality assessment has been prepared with reference to the Global Reporting Initiative

(GRI) Standards (2016) and have been adjusted to align with the updated GRI Materiality Standard (GRI3, 2021).

Identify material topics

To identify material topics BEWI have reviewed relevant documents and interviews and discussions has been

held with key stakeholders. Interviews and discussions were held with: Investors, suppliers, customers, employees,

non-governmental organisations, research institutes and industry associations. The table below gives an overview

of BEWIs engagement with the various stakeholders.

Stakeholder groups The value BEWI create Dialogue/methodology

Authorities Facilitate the development and implementation

of fair and enforced industry regulations

Literature review of policy documents

Investors and creditors Grow revenue and increase protability Questionnaire and dialogue in meetings

Reduce risk of investment

Improve return on investment

Increased share of green investment

Suppliers Promote sustainable solutions and secure

minimum social safeguards

BEWI partner

Review of sustainability strategy and

reports

Meetings - dialogue

Stakeholder groups The value BEWI create Dialogue/methodology

Employees Enable a sense of purpose Assignment BEWI Business School

Support employees to grow Questionnaire to employees

Safe working environment Workshop in sustainability and

management group

Customers and consumers Provide sustainable products and solutions Review of ESG questionnaires

Meetings - dialogue

Review of sustainability strategy

and reports

Local communities

Enable local economic prosperity Information meetings

Oer local employment

Do no harm

NGOs Promote dialogue and continuous improvement Literature reviews

Meetings - dialogue

Media Open and transparent communication to

raise awareness and increase knowledge

about the company, its industry and the value

created for society

Press releases

Interviews/ presentations

Universities and research

institutes

Contribute to improved knowledge and

innovation

Meetings - dialogue

Industry association and

Public Private coalitions

Share Best practice Participation in meetings

Facilitate development and implementation

of industry standards

Document reviews

148148

Identied topics important to BEWI and our stakeholders

BEWI have identied a selection of environmental, social, and governance topics that is considered important for BEWI and their stakeholders. The following topics were identied by stakeholders and assessed as part of the materiality assessment:

Environment

Greenhouse gas emissions Monitoring and reducing GHG emissions from operations

Climate change Strategy to assess and manage climate risks e.g., a changing physical climate and the

transition to a low-carbon economy

Solid waste management Ensure eective procedures for solid waste management. Seek to reduce waste

generation and increase the share of solid waste going to material recycling

Resource eciency Increase resource eciency through design, reuse, and recycling

Reducing chemicals/

substitutes

Reduce the use of hazardous materials and chemicals in production and ensure

management in line with national regulations

Energy eciency Work to improve energy eciency in all operation

0 emissions to air, water,

and soil

Ensure eective procedures and management to minimize the risk of accidental

emissions to air, water, and soil

Social

Ensure employee health

and safety

Ensuring a safe and secure workplace

Training and development Enable employees to grow and develop

Local jobs and value creation Take responsibility in local communities

High labour standards Ensure employees’ rights to organize, form and join labour unions and bargain collectively

Diversity and inclusivity Providing equal treatment and opportunities for all employees

Human rights Ensure alignment with the OCED Guidelines for Multinational Enterprises, UN Guiding

Principles on Business and human rights, and ILOs declaration on Fundamental Rights

and principles at Work

Governance

Corruption Programmes in place to develop and adapt adequate internal controls, ethics,

and compliance programs e.g., risk assessments, training, and monitoring

Business ethics Ethical business practice and ethics management

Data privacy and security Maintain privacy and security of data held

Corporate governance

framework

Best practice compliance controls

Responsible sourcing and

supply chain

Ensuring that procurement of goods and services meet social and environmental criteria’s

From the list of relevant topics, 5 topics were identied as material to BEWI.

• Circular economy

• Climate change

• Supply chain managment

• Health and safety at production facilities

• Corruption

149149

Appendix 3 Employees BEWI Group (GRI -)

Disclosure title Disclosure description Measure Comment Total

Employees Total number of employees (heads) Absolute number Total employees FTE 1 806

Whereof Male 1 296

Whereof Female 510

Employees Total number of permanent employees (heads) Absolute number Total employees 1 659

Whereof Male 1 180

Whereof Female 479

Employees Total number of temporary employees (heads) Absolute number Total employees 141

Whereof Male 100

Whereof Female 42

Employees Total number of non-guaranteed hours employees (heads) Absolute number Total employees 165

Whereof Male 125

Whereof Female 40

Employees Total number of full-time employees (heads) Absolute number Total employees 1 585

Whereof Male 1 152

Whereof Female 433

Employees Total number of part-time employees (heads) Absolute number Total employees 74

Whereof Male 28

Whereof Female 46

150150

Disclosure title Disclosure description Measure Comment Total

Workers who are not

employees

Total number of workers who are not employees and whose work is controlled by the organisation (heads). Absolute number Total contractors and agancy workers, i.e. not on our own payroll. 224

Annual total

compensation ratio

Report the ratio of the annual total compensation for the organization’s highest-paid individual to the median

annual total compensation for all employees.

Percentage (%) Highest compensation divided by median compensation.

789%

Collective bargaining

agreements

Report the percentage of total employees covered by collective bargaining agreements. Percentage (%) Total employee percentage covered by collective bargain agreements: 70%

Collective bargaining

agreements

For employees not covered by collective bargaining agreements, report whether the organization determines

their working conditions and terms of employment based on collective bargaining agreements that cover its other

employees or based on collective bargaining agreements from other organizations.

Percentage (%) Based on collective bargain agreements of other employees: 83%

Based on collective bargain agreements of other organizations: 17%

All employees include both full-time and part-time employees.

151151

Appendix 4 Waste generated in tonnes

Indicator Target % 2021

Hazardous waste 1 116

Diverted from disposal

80% 85 98

Directed to disposal

20% 15 18

Non-hazardous waste 99 9 227

Diverted from disposal

80% 37 3 440

Directed to disposal

20% 63 5 787

Total waste 100 9 343

Diverted from disposal

80% 38 3 538

Directed to disposal

20% 62 5 805

Reuse, recycling, composting and recovery

Energy recovery, inclineration and landll

Accounting policies

The Global Reporting Initiative (GRI) standard 306 disclosures 306-3, 306-4 and 306-5 have been used as guideance

in developing the indicators.

Waste is reported on the basis of invoices recived from waste recipients.

152152

Appendix 5 Greenhouse gas emissions - scope  and 

Indicator Unit 2020 2021

% of

emissions

% Change

from last year

Direct GHG emissions (scope 1)

Total scope 1 GHG emissions Thousand tCO

e 27 31 4.7 13.3

Indirect GHG emissions (Scope 2)

Location based Thousand tCO

e 39 46 6.9 17.3

Market-based Thousand tCO

e 15 17 2.6 13.0

Total market-based scope 1 and 2 Thousand tCO

e 42 48 7.3 13.2

Total location-based scope 1 and 2 Thousand tCO

e 66 76 11.6 15.6

Accounting policies and methodology

The reporting is based on the Greenhouse Gas Protocol. Data is collected internally and reported through Asplan

Viak AS GHG reporting system Klimakost.

Scope 1: Direct GHG emissions

Direct emissions are consumption of natural gas to produce steam and fuel from BEWI’s vessels. Calculations are

based on consumption with location specic production mix as a physical emission factor. Direct emissions from

purchased services are reported in scope 3.

Scope 2: Indirect GHG emission from purchased electricity and heat not generated by BEWI

Purchased electricity are GHG emission from the generation of power, heat and steam purchased and consumed

by BEWI. To calculate indirect emissions, a physical perspective (location-based) and a market-based perspective

is used. For location-based emissions, calculations are based on electricity volumes purchased and multiplied with

emission factors based on actual emissions related to electricity production within a geographical area, for the pre-

vious year. For electricity purchased from non-fossil electricity sources such as biooil and wood chips, LCA intensities

are used. To calculate market-based emissions the calculation of the emission factor is based on purchased electric-

ity sources from guarantees of origin where emissions factors are taken into account. For market-based emission it is

assumed that the regular power is delivered as residual power where the green part has been taken out.

153153

Appendix 6 Greenhouse gas emissions - scope 

Indicator Unit 2020 2021

% of

emissions

% Change

from last year

Indirect GHG emissions (scope 3) Thousand tCO

e 596 613 92.7 2.8

C1: Purchased goods and services Thousand tCO

e 596 583 88.2 -2.2

C4: Upstream transportation and distribution Thousand tCO

e - 17 2.5 -

C5: Waste generated in operations Thousand tCO

e - 5 0.7 -

C6: Business travel Thousand tCO

e 0.04 0.10 0.0 162.2

C9: Downstream transportation Thousand tCO

e - 9 1.3 -

Scope 3: Indirect GHG emissions from the purchase of goods and services

In 2021, BEWI have extended the scope of reporting in scope 3. In 2021, reporting in scope 3 includes GHG emis-

sions from: C1: Purchased goods and services, C4: Upstream transportation and distribution, C5: Waste generated in

operations, C6: Business travel and C9: Downstream transportation and distribution. Most of the reported scope 3

emissions are purchased raw materials and are calculated using life cycle-based emissions factors. Emissions from

waste generation are calculated using life cycle-based emissions factors for the respective waste treatment and are

country specic. Business travel is calculated based on number of domestic, European, and intercontinental ights

where an average intensity has been used. For upstream and downstream transportation, emissions are calculated

using an environmentally extended input-output method, attributing GHG emission to spend data. Since BEWI

has an integrated value chain where BEWI RAW produces raw materials that are sold internally to the company’s

downstream production facilities, emissions related to the purchase and production of EPS have been chosen to be

added to BEWI RAW to avoid double reporting.

Appendix 7 Greenhouse gas (GHG) intensity

Indicator Unit 2020 2021

% Change

from last year

Full time equivalent (scope 1 and 2) Thousand tCO

e 0.31 0.10 -66.7

Full time equivalent (scope 1, 2 and 3) Thousand tCO

e 0.47 0.40 -14.6

Turnover (scope 1, and 2) Thousand tCO

e 0.92 0.64 -30.0

Turnover (scope 3) Thousand tCO

e 1.29 0.82 -36.4

Turnover (scope 1, 2 and 3) Thousand tCO

e 1.38 0.88 -36.0

Full time equivalent Quantity 1 371 1 662

Turnover (MEUR) MEUR 463 748

GHG intensity - scope 1, 2 and 3

GHG intensity (scope 1, 2, and 3) is calculated as total scope 1, scope 2 (market-based), and scope 3 emissions

divided by total revenue and Full Time Equivalent (FTE).

154154

Appendix 8 Taxonomy eligible activities

Segment Total net sales Taxonomy eligible activities Eligible % eligible

RAW 243 3.5 Manufacture of energy eciency equipment for buildings 142 58

Insulation 193 3.5 Manufacture of energy eciency equipment for buildings 161 83

Packaging and Component 289 3.5 Manufacture of energy eciency equipment for buildings 38 13

Circular 23 5.5 Collection and transport of non-hazardous waste in source segregated fractions 23 100

Total net sales MEUR 748 364 49

Towards taxonomy alignment

The Taxonomy Regulation sets out a three-step approach towards taxonomy alignment of economic activities:

1. Substantially contribute to one or more of the six environmental objectives.

2. Do no signicant harm to the other ve environmental objectives.

3. Comply with the minimum safeguards covering social and governance standards.

The mapping is based on the two environmental objectives where the screening criteria have been

available: Climate Change Mitigation and Climate Change Adaption. Taxonomy- eligible activities identied are:

3.5 Manufacture of energy eciency equipment for buildings and 5.5 collection and transport of non-hazardous

waste in source segregated fractions.

To ensure that the activities are aligned with Do no signicant harm and Minimum Safeguard criterias, BEWI have

conducted an assessment and identied actions that will be implemented in 2022 to document that the company

are aligned with the requirements set.

155155

artbox.no

BEWI ASA

www.bewi.com

156156