COMPANY

PRESENTATION

9 MARCH 2021

Peter Nilsson, CEO

Anders Marklund, CFO

A GROUP IN CHANGE– FROM A SAWMILL COMPANY TO AN ACTIVE OWNER

OF COMPANIES IN WOOD SECTOR

2

BERGS CURRENT CORPORATE PROFILE

3

in net cash 2020, Dec 31

32 MSEK

Strong financial position with

212 MSEK,

10% margin

EBITDA 2020 was

manufacturing sites in Sweden,

Latvia, Estonia and UK

8

Products are processed at

independent subsidiaries within

wood related industry

7

Bergs has a portfolio of

with an ambition to grow

sustainable and profitable

2,146 MSEK

Net sales 2020 was

employees contributing

to a sustainable society

Bergs has

850

THE STRATEGIC JOURNEY

Business plans for

implementation of strategy

4

Acquisition of Norvik’s operation

in the Baltic states and UK

2018

Divestment of the Swedish

sawmill operations New ambition and financial

targets for the group

Wood Protection, Joinery and Sawn

Wood become Bergs’ product areas

5

STRATEGIC AGENDA

5

Bergs owns and develops companies in

wood related industry and logistics

Operations in three product areas;

Wood Protection, Joinery and Sawn Wood

Growth through identified planned

investments, acquisitions and product

development

Decentralised business model with

independent subsidiaries with clear

responsibility for results

6

Demand for sustainable products

Product and system development

for construction in wood

Interest for home improvements and DIY

POSITIVE TRENDS IN WOOD INDUSTRY

7

WOOD PROTECTION

▪ Treated wood for different areas

- treated wood, painted wood

- fire-retardant wood

▪ Special assortment of treated

and untreated wood to DIY

1,020 MSEK net sales

6.3% EBITDA-margin44%

JOINERY

▪ Custom-made doors and

windows

▪ Garden products

▪ Modular/attefall houses

274 MSEK net sales

9.5% EBITDA-margin12%

Note: Based on 2020 net sales and results. Additional 8% (179 MSEK) from pellet production and port operation in UK.

BERGS PRODUCT AREAS

SAWN WOOD

▪ To industry for construction and

interior

▪ Supply to wood protection

841 MSEK net sales

13.9% EBITDA-margin36%

▪ One of the largest supplier and subcontractor of wood protection in

Europe with production in Sweden, Latvia and UK

▪ Product development and research in collaboration with customers,

partners and institutes

▪ Bergs contributes with know-how of technology and extensive

experience of product performance

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A PRIME MOVER IN WOOD PROTECTION

Cladding

88

15%

35%

25%

5%

5%

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Bitus in Nybro, SwedenBergs production in Nybro is one of the largest site in Europe for Wood Protection

BERGS JOINERY PRODUCT OFFERING

10101 Triathlon Group analysis

Interest of outdoor environments

Appearance of wood

GARDEN PRODUCTS

5-10%Estimated annual market growth

of garden products in Europe1

43%

DOORS AND WINDOWS

Estimated market share of wooden

custom-made windows in UK1

Increased number of refurbishments

Preserve exterior and interior look

15-20%

46%

MODULAR/ATTEFALL HOUSES

Reducing construction time

Need for complementary buildings

5-10%Estimated annual market growth of

complement buildings in Sweden1

11%

▪ Wide range of garden products such as fencing, stairs and swimming pool kits

▪ Certified doors and windows in UK, Sweden, Iceland and Baltic states

▪ High quality and ready-to-use modular houses

▪ Launching garden furniture by Radical Wood

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STRONG OFFERING WITH PROVEN PROFITABILITY

1111

25%

35%

5%5%

25%

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Byko-Lat in Valmiera, LatviaBergs largest manufacturing site covering both Wood Protection and Joinery product areas

▪ Stands for 10% of the total sawmill production in Latvia with proven

profitability over time

▪ Supplier of sawn wood products for industrial customers

▪ Production in Estonia primarily supplies Byko-Lat in Latvia

▪ Strong relation with raw material suppliers including state forests

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1313

Japan

15%

50%

SAWN WOOD

PRODUCTION WITH HIGH PRODUCTIVITY

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Vika Wood in Talsi, LatviaBergs production at Vika Wood represents 10% of total sawmill production in Latvia

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BERGS OTHER OPERATIONS

M25

Creeksea

port

London

76 MSEK net sales 3%

PORT OPERATION IN CREEKSEA, UK

▪ Logistic hub for wood products and steel with strategic

location near London and M25

▪ Provides unloading, storage, distribution as well as

wood protection (area of 182 000 m2)

▪ Operates 70-90 cargo vessels every year

PELLET AND HEAT LOG PRODUCTION

▪ Production and sales of pellets and heat logs for heating

of houses and animal bedding

▪ Yearly production of 125 000 ton pellets and heat logs

▪ Top of the line, fully automated production installed

2019 at Fågelfors with low production cost

6% 103 MSEK net sales 5%

FINANCIAL TARGETS

Annual growth of 10% over a business cycle,

organic and through acquisitions

9% over a business cycle

Normally 25-40% of the net profit of the year

DRAFTCONFIDENTIAL

Net debt lower than equity

16

Growth

EBITDA margin

Dividend

Financial net debt

CONTRIBUTION TO GROWTH

EXAMPLE OF INVESTMENTS

Identified investments of 500

MSEK are identified for organic

growth during 2021-2023

Bergs is actively looking for

acquisition opportunities

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▪ Increase capacity for:

- Wood protection at Byko-Lat and for UK operations

- Linax and coating at Bitus

- Doors and windows manufacturing at Byko-Lat

- Planers at Bitus and Byko-Lat

- Garden products by re-building factory at Byko-Lat

▪ Increase sales and profit margins by

accelerating Bergs digital journey

▪ Investments for productivity improvements

BERGS DIGITAL JOURNEY

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SIMPLIFIED

SALES

SUSTAINABLE

LOGISTICS

TARGETED

MARKETING

PRODUCTION

DEVELOPMENT

▪ Bergs has identified the opportunity with

digital technology

▪ Simplifying sales and logistics

▪ Woodworks by Bergs is pioneers in Bergs

digital technology

SUSTAINABILITY FOCUS AREAS

Contributing to a low-carbon society

Preserving resources

Caring for our employees Responsible

wood supply

Fossil-free world

Resource-efficient and

clean value chains

Safe and equitable

workplaces

Core values

and ethics

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0fossil emission

by 2030

>80% of procured wood is

certified by 2024

Example of Bergs sustainability targets

-50%of work-related

accidents by 2025*

*Against baseline 2020, with ambition to eliminate work-related accidents

SUSTAINABILITY WITHIN BERGS

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Long-term positive trend for

usage of wood products

Favourable position for growth in wood

protection and joinery product areas

Great knowledge of wood and the

willingness to build on product

development and digitization

Strong financial position

and good profitability

Planned investments of 500 MSEK

for organic growth 2021-2023

Contributing to environmental, social

and governance sustainability

WHY INVEST IN BERGS?

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1. Build capacity for organic growth and

complementary acquisitions

3. Strengthen product development

and aftermarket services

2. Accelerate the digital journey

A GROUP IN CHANGE– FROM A SAWMILL COMPANY TO AN ACTIVE OWNER OF COMPANIES IN WOOD SECTOR

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SOME OF OUR COWORKERS

Q&A

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THANK YOU!