Fiven Annual Report 2022 Board of Directors’ Report About Fiven Fiven is a global leader in silicon carbide (SiC), a material used in a variety of industrial applications. SiC is recognized for superior hardness, high thermal conductivity and chemical inertness, making it the preferred material for demanding applications: abrasive, metallurgy, filtration, technical ceramics and other uses. Fiven product brand “SIKA” is recognized as a premium brand with high quality and supply consistency. Fiven ASA is headquartered in Oslo, Norway, and is the parent company in the Fiven Group. The Group was established in 2019 in connection with the acquisition of the silicon carbide business from Compagnie de Saint-Gobain S.A, and the operational history can be traced back more than 100 years. Fiven has manufacturing entities in Arendal and Lillesand (Norway), Hody (Belgium) and Barbacena (Brazil). Fiven GmbH located in Cologne (Germany) is a management office. In February 2021 Fiven North America Inc. was established as a wholly owned subsidiary with a sales representation office operating in Pittsburgh (USA). There is also a sales representation office operating in Shanghai (China). The Market In 2022, mainly during the first half, the global economy exhibited a more substantial recovery than anticipated. However, this recovery was accompanied by unstable raw materials, energy prices and disruptions in production chains. Fiven successfully navigated the fast-changing market conditions and achieved solid organic growth of 51 percent in total revenues YoY. To mitigate the rising costs' impact, Fiven implemented a strict price discipline. The silicon carbide market is diverse, with varying trends across regions and end-use industries. In Europe, the specialty market segment experienced growth driven by increased demand from the semiconductor and armor market. As a result, Fiven's revenues from the specialty market in Europe rose by 30.5 percent YoY. Additionally, the recovery in the construction and automotive industries positively impacted the demand for metallurgy, refractory, and abrasive products, resulting in a 35.2 percent YoY increase in revenues. In North America, Fiven substantially grew the sales of specialty products, driven by ongoing co-development projects. In Latin America, Fiven sustained its growth, despite a high-comparison basis, due to solid demand across all sectors in Brazil. The global competitive landscape varies from one region to another. Fiven maintains a strong market position in Europe and Latin America. The competition in North and Latin America, and Europe, is influenced by local players and global Asian producers. Fiven’s Strategy Fiven's strategy focuses on achieving profitable growth through two main pillars: 1. Accelerating growth in specialty products by targeting highgrowth applications, emphasizing innovation, and fostering collaboration with key customers through co-development. 2. Selectively serving core markets, enhancing cost competitiveness and providing exceptional service offerings. Organic growth will be sustained through ongoing research and development efforts, including developing new products and applications, and expanding geographical reach mainly in North America. In the coming years, Fiven will continue to prioritize addressing rising expectations from stakeholders and working to maintain positive relationships with the communities in which it operates. 18 Board of Directors’ Report
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