Fiven Annual Report 2022 Fiven was already facing the aftermath of fluctuating raw material prices and energy costs due to the supply chain disruptions caused by the COVID-19 pandemic. In the face of this challenge, we remained focused on managing our costs while also considering how inflationary tendencies could be passed on to the market where possible. This required a strategic and agile approach to balancing the needs of the business and the market, with a constant focus on maintaining a competitive edge. To maintain a competitive edge, Fiven has also focused on its innovation projects and developed new solutions in collaboration with its customers. This has led to the introduction of new products such as SIKA® Densitec S-Cast and SIKA® Densitec X-Form, enabling the production of fully dense silicon carbide ceramic parts using previously untested forming methods like slip casting, extrusion and 3D printing. Another innovation is the development of Fiven's Boron Carbide powders for technical ceramics, which offer unprecedented purity from free carbon as graphite. Lastly, I am happy to announce that our SIKA e-SiC® high-purity silicon carbide is in the final stage of qualification at customers, and we are recognizing increased demand from global customers in the semiconductor market for power electronics. With regards to the structure of the organization, Fiven was able to successfully divest its activities in Venezuela in 2022, with political instability and various bureaucratic and administrative challenges as the primary reasons for the decision. The divestment proves to be beneficial for us in several ways. Firstly, it enables us to focus our resources and attention on areas of the business that are more conducive to growth and profitability. Secondly, divesting from Venezuela allows us to reduce our exposure to the risks associated with doing business in a politically unstable and uncertain environment. Finally, the move to divest also helps to streamline our operations, leading to greater efficiency and cost savings. The founding of FIVEN North America, Inc. in the US has had a positive impact on the company as well, as evidenced by increased sales in 2022 within North America. The establishment of this subsidiary has allowed Fiven to better serve its customers in the region. Fiven is proud to announce a record-breaking performance in terms of turnover and Adjusted EBITDA. With total revenues of 192.3 million Euros and an Adjusted EBITDA of 61.5 million Euros. However, we recognize that this achievement is only the beginning and sets a high standard for us to maintain. Despite a slowdown in certain markets, such as construction, we have seen a surge in demand from the defense, semiconductor and energy sectors. We are poised to capitalize on these opportunities and continue our growth trajectory. Sustainability is a top priority for us, and we are proud to have once again received the EcoVadis Silver Rating, which reflects our commitment to environmental responsibility. Despite the challenges posed by an inflationary economy and rising costs, we remain dedicated to investing in sustainability initiatives. Our goal is to achieve net-zero emissions by 2050 in our facilities, and we are determined to find creative and effective ways to meet this objective. On behalf of the entire team at our company, I am grateful for your ongoing support and investment. It is a privilege to have you as a part of our journey towards continued success. Your confidence in our abilities drives us to deliver exceptional performance. We look forward to our continued partnership and a bright future together. Falk Ast Chairman of the Board Fiven ASA The year 2022 will be remembered as a turning point in history. The conflict in Ukraine has caused immense suffering and has highlighted the vulnerability of Europe's supply chain, which relies heavily on raw materials from Russia. The immediate economic impacts included a sharp rise in energy and material costs. Navigating Challenges to Achieve Strong Financial Performance and Drive Sustainability 9
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