Fiven Annual Report 2021

Fiven Annual Report 2021 Financial Review Presentation of accounts Fiven’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU. The parent company’s annual financial statements have been prepared in compliance with the Norwegian Accounting Act and accounting principles generally accepted in Norway. For further information, please refer to the financial statements and note disclosures. Operating Profit and profitability 2021 saw good commercial and financial performance as the market was recovering to pre-pandemic levels and there was high demand for Fiven quality products. The total consolidated revenues and other income for the 12-month period reached 127.5 mEUR, a Year-on Year improvement by 28 percent (2020: 99.7 mEUR). In terms of revenues by customer location, Europe revenues at 58.5 mEUR increased by 18 percent from previous year, North America reported at 18.7 mEUR were up by 11 percent, the 42.3 mEUR revenues from South America represented a YoY improvement of 70 percent, whilst Asian revenues were 7.9 mEUR, on par with 2020. As for products, the Standard products increased by 40 percent to 87.3 mEUR, and the Specialty products grew by 9 percent to 40.1 mEUR. The Operating Profit for the period ended at 16.1 mEUR (2020: 10.5 mEUR). The Net Finance expenses of 8.6 mEUR (2020: 11.9 mEUR). The improvement on the net financials includes a 3.6 mEUR improvement from realized and unrealized exchange losses in comparison to 2020. Net Income of the year was 2.9 mEUR (2020: -2.9 mEUR). Fiven uses Adjusted EBITDA to measure operating performance at the group and segment level. The consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of the period showed 21.2 mEUR (2020: 15.2 mEUR) whilst the Adjusted EBITDA including the positive impact from IFRS 16 and excluding non-recurring fees and monitoring costs showed 24.4 mEUR (2020: 20.1 mEUR). The improvement in Adjusted EBITDA is largely sales volume driven through the market recovery. The price adjustments aimed at mitigating major raw materials and power price increases observed. Both the NOK and the BRL were strengthened against major trading currencies in 2021 leaving a negative impact on Fiven profits. Savings from the restructuring program completed in Q3 2020 are contributing positively to the 2021 results. Cash Flow and Liquidity reserve Total cash and cash equivalents at year-end were 23.6 mEUR, up from 23.0 mEUR for year-end 2020. Restricted cash accounted for 0.1 mEUR of the total to cover for social taxes in Norway. Cash flow from operating activities was 15.2 mEUR (2020: 15.0 mEUR). In a growing business and with increased demand for working capital, Fiven has been able to improve throughput time and working capital efficiency. The cash flow from investing activities amounted to -5.3 mEUR (2020: -3.7 mEUR). In 2021 Fiven has continued to invest into new product development, emission control and other HSE measures in addition to necessary to maintenance investments of the running plants. The full year cash flow from financing activities was -9.3 mEUR (2020: -1.1 mEUR). In Q2 and Q3 2021 Fiven finalized the refinancing of the Group including the redemption of the original bond from 2019 of 56.5 mEUR, raising a new bond of 70 mEUR. The total cash impact from the refinancing operation was a net outflow of 5.2 mEUR. In addition, the increase in factoring lines utilization in 2021 was 2.7 mEUR whilst the increase in 2020 was 5.6 mEUR. Debt and financial position Fiven’s total liabilities at 31.12.2021 was 149.2 mEUR in comparison to 133.2 mEUR year-end 2020. The Group’s current liabilities as of 31.12.21 comprised 35 percent of total liabilities compared to 27 percent year-end 2020. The increase is due to a significant increase in Trade Payables following the growth of Fiven business as well as higher raw material and power inflation. As for the non-current debt, the Bond of 68.9 mEUR (net after amortized costs) and the shareholder loan of 22.7 mEUR (including capitalized interest), have maturity dates in June 2024. Total assets and equity Total assets at year-end amounted to 140.3 mEUR compared to 120.1 mEUR year-end 2020. Equity reported at year-end was -8.9 mEUR compared to -13.1 mEUR at end of 2020. The impact on equity from changes in foreign currency translation reserve was -9.7 mEUR (2020: -10.9 mEUR). The Equity ratio end of 2021 was hence –6.4 percent (2020: - 10.9 percent). Going Concern Pursuant to Section 3-3a of the Norwegian Accounting Act, the Board of Directors confirms that the financial statements have been prepared on the assumption of going concern. The corona virus adds some uncertainty to future financial performance. The consolidated equity as per 31.12.2021 is Board of Directors’ Report 19

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