Interim Report Q2 2023People Green Innovation Technology

Byggma ASA is domiciled in Norway. The head office is in Vennesla. Byggma ASA is listed on the Oslo Stock Exchange. The Group’s main area of business is the production and sale of building products to the Scandinavian and Northern European markets. In Norway, the products are sold through our own nationwide sales apparatus; abroad, sales work is handled partly by subsidiaries and partly by distributors. The product range is mainly produced by the group’s seven production units. These production units are located in Norway and Sweden. In addition to products produced within the Group, Byggma ASA also sells products for resale.

Byggma Group reports in accordance with International Financial Reporting Standards (IFRS). This quarterly report has been prepared in accordance with IFRS Standard for interim reporting (IAS 34). The report should be viewed in conjunction with the annual report for 2022 and with reference to the accounting policies specified therein. The quarterly report has not been audited.

For the full year, we calculate and book actual tax, while for the interim accounts we use nominal tax rates per company per country. Deferred tax/deferred tax assets are based on the tax rate in the relevant countries.

Provisions made in the accounts based on contingent events after the balance sheet date are insignificant.

CEO Geir Drangsland and related parties as at 30 June 2023 control 88,70 % of the share capital in Byggma ASA. The agreement that the Group CEO has entered into with Scanel AS is controlled by Geir Drangsland.

There are no significant subsequent events.

* The liability from sale leaseback relates to the sale of Birkeland Eiendom AS and Masonite Fastighet AB. They were sold during the autumn of 2022. The transaction is booked as a sale leaseback in accordance with IFRS 9 as it is likely that the companies will be purchased back through a put/call structure in the autumn of 2042. The related properties are continued in the consolidated financial statements.

Byggma ASAs subsidiaries Uldal AS and Masonite Beams AB rents the related properties in Birkeland Eiendom AS and Masonite Fastighet AB respectively for their production of windows and I-Beams. The rental agreements run for 20 years and Uldal AS and Masonite Beams AB have an option to prolong the agreements for 10 years at a time after that. The rent is classified as interest expense in the consolidated financial statements.

*EBITDA as defined in Norske Skog ASA Alternative Performance Measures

Byggma ASA was considered to have significant influence in Norske Skog ASA as of 9 March 2023. On 9 March 2023 the CEO of Byggma was elected chairman of the board in Norske Skog. The CEO of Byggma also controls Drangsland Kapital AS which owns 5.64% of Norske Skog. Before 9 March 2023 the investment in Norske Skog was classified as financial investment in Byggma’s consolidated financial statement. From 9 March 2023 the investment in Norske Skog ASA is treated as an associated company as per the equity method in accordance with IAS 28.

In Q2 2023 Byggma bought shares in Norske Skog ASA that entailed a gain on a bargain purchase of NOK 9.1 million. This gain is booked under the financial statement line item “Other losses/gains” in the consolidated income statement.

Byggma group owns 20 % of the company Lim og Platetransport AS which owns and operates trucks that transport glue and panels for Forestia AS.