Interim Report Q2 2023People Green Innovation Technology

THE PANELS SEGMENT consists of the companies Huntonit AS, Forestia AS and Smartpanel AS.

In 2023 AS Byggform has been merged into Forestia AS. The Masonite part of Huntonit in Vennesla was with effect from 31 December 2022 transferred from Huntonit AS to Masonite Beams AS through a business transfer.

In Q2 2023, the Panels segment achieved lower sales revenues and operating profit compared with the same period in 2022. There is continuous work to optimize operations and to maintain good discipline in the procurement process. Demand for products in the panels segment varies between the various product groups but is in total lower compared to the same period last year.

The Board of Directors is satisfied with the development in sales and profitability in Q2 2023. Management has a continuous focus on improvements, including trends in sales and costs.

THE BEAMS SEGMENT consists of the company Masonite Beams AB and Masonite Beams AS.

Beams have increased their market share in most markets, and we are experiencing greater acceptance for I-Beams as a construction material.

With effect from 31 December 2022 the department for I-Beams at Huntonit in Vennesla is transferred from Huntonit AS to Masonite Beams AS. With this I-Beams from Masonite Beams AS Vennesla branch and Grubhei branch will belong to the same legal entity and appear more clearly toward the customers in Norway.

Sales revenues and operating profit are lower Q2 2023 than for the corresponding period in 2022. There is a focus on efficient operations to adapt to this period with lower activity in the market for new housing units. Even though sales revenues and operating profit are lower in this period compared to last year, the operating margin is higher for the Beams segment compared to the same period last year-

The Board of Directors is very satisfied with the sales and operating profit in Q2 2023. Management will continue to focus on sales and cost trends.

THE WINDOWS SEGMENT consists of the company Uldal AS.

In Q2 2023, the Windows segment achieved lower sales revenues and lower operating profit compared with the corresponding period in 2022. The Windows segment is still facing intense competition and pricing pressure in the market.

Investments previously made regarding the factory are now having a major effect on ensuring shorter delivery times. This has led to Uldal increasing their market share significantly.

Investments in production equipment for sliding doors enables the company to produce sliding doors in-house cost-efficiently, instead of buying them at high prices as goods for resale.

The demand for aluminum windows is increasing and Uldal meets this by increasing its production capacity for this group of windows. This is among other things achieved by the investment in a clips machine. The project will also free manpower and facilitate a more efficient production.

The Board of Directors is satisfied with the sales, but not operating profit in Q2 2023. Management will continue to focus on sales and cost trends.

THE LIGHTING SEGMENT consists of the companies Aneta Lighting AS, Scan Lamps VTA AS in Norway and Aneta Lighting AB in Sweden.

In Q2 2023, the Lighting segment achieved higher sales revenues and operating profit compared with the corresponding period in 2022.

The Lighting is segment is starting to see some effect from the increased efforts to penetrate the electric installations market.

The Board of Directors is satisfied with the sales revenues, but not operating profit in Q2 2023. Management is firmly focused on implementing measures to improve profitability.

THE REAL ESTATE SEGMENT consists of the companies Byggma Eiendom AS, Huntonit Eiendom AS, Forestia Eiendom AS, Byggma Eiendom Lyngdal AS and Grammarholmen Fastighets AB.

The segment’s rental revenues are based on lease contracts with the Group’s industrial companies except for Byggma Eiendom Lyngdal AS which has a lease contract with an external party.

The financial accounts for 2022 have been restated following a change in financial statement principle for Byggma Eiendom Lyngdal to investment property in accordance with IAS 40. See note 32 in Byggma ASA’s annual report for 2022 for more information.

Please see the Real Estate overview on page 38.