Interim Report Q4 2023People Green Innovation Technology

THE PANELS SEGMENT consists of the companies Huntonit AS, Forestia AS and Smartpanel AS. Financials for AS Byggform are included in the Panels segment financials for 2022.

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. The financials for the Masonite department in Vennesla are included in the Beams segment financials.

The financial accounts for 2022 and 2023 have been restated following a change in accounting of power contracts. Please see stock exchange announcement dated 5 February 2023 for more information. Please see note 2 for more information about write-down of assets.

In Q4 2023, the Panels segment achieved higher sales revenues, but lower adjusted 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 (BoD) is satisfied with the development in sales and profitability in Q4 2023. The BoD understands that the vast downturn in the market results in lower sales and profit for the Panels segment compared to last year. Management has a continuous focus on improvements, including trends in sales and costs. During the current market conditions, it is of utmost importance that the sales organisation manages the professional market and that the products are presented in the best fashion possible at the building materials outlets.

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. The financials for the Masonite department in Vennesla are included in the Beams segment financials.

Sales revenues and operating profit are lower in Q4 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.

The Board of Directors (BoD) is satisfied with the sales and operating profit in Q4 2023. The BoD understands that the vast downturn in the market results in lower sales and profit for the Beams segment compared to last year. Management will continue to focus on sales and cost trends.

THE WINDOWS SEGMENT consists of the company Uldal AS.

In 4. kvartal 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 (BoD) is satisfied with the sales and operating profit in Q4 2023. The BoD understands that the vast downturn in the market has resulted in lower sales and profit for the Windows segment compared to last year. 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 Q4 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. It is expected to see a larger effect from this going forward.

The Board of Directors is satisfied with the sales revenues and operating profit in Q4 2023. Management will continue to focus on sales and cost trends.

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.

Please see the Real Estate overview later in this report.