Fiven Annual Report 2021

Fiven Annual Report 2021 negative by -8.9 mEUR (2020: -13.1 mEUR), caused by a noncash impact from the cumulative foreign currency translation reserve of -9.7 mEUR (2020: -10.9 mEUR). The Fiven ASA equity was 0.1 mEUR at 31.12.2021 compared with - 0.4 mEUR as of year-end 2020. During 2021, Fiven refinanced its operations through a new bond of 70 mEUR expiring in June 2024. Together with a shareholder loan of 22.7 mEUR expiring after the bond, Fiven has now secured long term financing for the coming years. The going concern assumptions have been assessed. The good liquidity situation during the quarters and the long-term financing of operations recently secured through the new bond completed leads management to conclude that there is sufficient financial flexibility to manage the near-term financial obligations. Segment Review Fiven Norway Fiven’s Norway product portfolio is to a large extent dominated by specialty products, encompassing a wide range of market segments and customer needs. Co-development projects in North America, Europe, and Asia, as well the recovery in the abrasive markets contributed to a growth of 19 percent YoY. Total revenue and other income for 2021 ended at 59.2 mEUR (2020: 48.5 mEUR), and Fiven Norge made for 44 percent of the Fiven Group total revenues. The adjusted EBITDA was 10.1 mEUR compared to 11.1 mEUR in 2020. The higher sales volume and sales price adjustments could not entirely offset the negatives from the raw material increases as well as the impact from the stronger NOK. The manning in Fiven Norway at the end of 2021 was 200 full time equivalents (FTEs), an increase of 22 from year end 2020 reflecting the higher level of activity. Fiven Brazil Fiven Brazil saw a solid and upbeat demand in Latin America since Q2 2021, driven by the recovery of all sectors of activities in Brazil, price adjustments aiming to offset the severe raw material cost increase and the market share expansions in Latin America. The full year performance mirrors the quarterly performance with strong commercial performance. Fiven Brazil has increased output in times of increasing demand from external as well as internal customers. Total revenues and other income improved by 50 percent in 2021 whilst the adjusted EBITDA reported at 11.6 mEUR was 4.1 mEUR higher than last year. The improvement is volume driven by a significant recovery of the market and market share gains. It has been necessary to adjust prices to mitigate the strong increase in raw material prices. As water reservoirs are at their lowest level for more than 90 years, consumers (private and enterprises) must pay extra charges for the production of thermo electrical power since hydro electrical power is becoming scarce. The number of full-time equivalents (FTEs) at year end 2021 was 231, an increase by 11 from year end 2020 in response to higher demand. Fiven Belgium Fiven Belgium saw a slight decline of 6 percent in external revenues compared to 2020, due to the limitation and the short availability of raw materials and longer lead times. The adjusted EBITDA reported was 0.8 mEUR compared to 0.4 mEUR for the same period in 2020. Due to lack of SiC material, the company has been running on lower than full processing capacity and part of the work force has been on temporary leave. There was a management decision to reopen production in Fiven's Venezuelan plants in Q3 2021, and with that the situation in Belgium will be improving. Parent Company Review Fiven ASA is the parent company of the Group. The revenues of the period reached 5.1 mEUR (2020: 4.2 mEUR) and the Operating Loss amounted to -0.1 mEUR (2020: -1.0 mEUR). The Net Income was 0.5 mEUR (2020: net loss -2.7 mEUR). The Board of Directors proposes to transfer the Net Income of 0.5 mEUR to retained earnings. R&D Activities The research and development activities are key to Fiven’s growth strategy. To speed up the new product development, the Fiven Innovation System that was developed and implemented in 2020 has been further optimized in 2021 and is used on a regular basis to follow up on the innovation process. The system is based on a hybrid methodology with key elements from Stage-Gate and Agile techniques with the clear goal of reducing the time it takes to develop new products and bring them to market. With a monthly Innovation Review, the status and plans for all key development projects are presented by the R&D Project Managers, together with the support of the Sales & Marketing team, to the management of Fiven. Innovation Reviews and steering committee meetings are used to select and prioritize development projects for the Fiven group. In 2021 the development of new products together with key customers were prioritized focusing on fast growing markets. 2021 was also the year that our next generation Acheson furnace and gas cleaning technology was implemented after a pilot-period of several years. 20 Board of Directors’ Report

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