Slides
Page 1
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background Presentation Q3 2026 30. October 2026
Page 2
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment Review 5 Financials 4 Industry Segment Review 2 Introduction 6 Outlook 7 Appendix
Page 3
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA 3 Highlights In Q3 2026, Borgestad Group delivered a result before tax of MNOK 48.1, compared to MNOK 47.0 in Q3 2025.1 Höganäs Borgestad delivered a stronger Q3’26 result compared to the corresponding period in 2025, reporting revenues of MNOK 354.1 and an EBIT of MNOK 56.3, versus MNOK 333.3 and MNOK 49.6, respectively, in Q3’25. 2 Agora Bytom delivered a solid performance in Q3 2026, with EBITDA increasing to NOK 10.8 million from NOK 10.3 million in Q3 2025, despite a negative currency effect of 5.2% compared with the corresponding period. 3 ¹Adjusted EBITDA, EBIT and result before tax exclude accrued cost for lay -off compensations and write down of ERP system and goodwill, total adjustments at EBIT level of MNOK 26.8 for full year 2025. Borgestad ASA will distribute an extraordinary dividend of NOK 1.50 per share, payable on or about November 6, 2026. For Norwegian tax purposes, the distribution shall be in the form of repayment of paid-in equity. 4
Page 4
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA 4 Key Figures ¹Adjusted EBITDA, EBIT and result before tax exclude accrued cost for lay -off compensations and write down of ERP system and goodwill, total adjustments at EBIT level of MNOK 26.8 for full year 2025. 1136m Revenue 0.9% Rev. growth YoY 137.1m Adj. EBITDA 12.1% Adj. EBITDA margin Highlights 30.09.26 – LTM 2.5x NIBD/Adj. EBITDA 348.2m NIBD
Page 5
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA HIGHLIGHTS | CEO LETTER Borgestad CEO letter 5 Pål Feen Larsen, Borgestad ASA Foto: Marianne Maroni Block/Finansavisen Third quarter represents another strong quarter for Borgestad. Höganäs Borgestad continued to deliver solid operational performance, reflecting good underlying operations across the business. At the same time, Agora Bytom continued its positive development, further supporting the overall performance of the Group. September also marked an important milestone for Borgestad. After a long process, the Group finally received the decision from the Swedish Supreme Administrative Court regarding the sale-leaseback transaction for the production properties in Bjuv. The Court decided not to grant leave to appeal, thereby removing the final outstanding condition for completing the transaction. Following the decision, the final transaction agreement was signed in October, and the transaction was completed on October 14, 2026. With the Bjuv transaction completed, Höganäs Borgestad will now continue its work to determine the optimal long-term setup for the Group’s production. Several alternatives have previously been assessed, and the objective is to identify a solution that supports efficient operations, competitiveness and the Group’s long-term development. Importantly, the leaseback arrangement in Bjuv provides Höganäs Borgestad with the flexibility to continue production at the existing facilities for up to five years following completion of the transaction. This provides sufficient time to evaluate the alternatives carefully and implement the preferred long- term production solution in a controlled manner. The strong operational performance, combined with a solid financial position and the completion of the sale-leaseback transaction, has further strengthened the Group’s financial flexibility. In light of this development, I am particularly pleased that the Board of Directors has resolved to distribute an extraordinary dividend of NOK 1.50 per share. This represents an important milestone for Borgestad and allows us to return capital to our shareholders while maintaining a strong financial position and sufficient flexibility to support the continued development of the Group. Going forward, our priorities remain unchanged: operational excellence, financial discipline and the creation of sustainable long- term shareholder value. CEO’s perspective on the quarter
Page 6
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment Review 5 Financials 4 Industry Segment Review 2 Introduction 6 Outlook 7 Appendix
Page 7
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA INTRODUCTION | STRATEGY AND APPROACH Borgestad ASA is an industrial investment company focused on real estate and refractory, aiming to expand into niche segments in the future • Operate as a publicly listed investment company, currently focused on real estate and the refractory industry • Strengthen existing investments through operational improvements • Expand into niche segments with consolidation potential • Leverage the networks and expertise of management and the Board to unlock new opportunities The right team Effective use of capital KPI-driven management M&A Strategy Key tools 7
Page 8
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Real Estate Refractory Agora Bytom shopping center in Poland is the largest investment of the Group, accounting for over half of the balance sheet. Agora Bytom is centrally located in the Silesian region of Poland and holds a strong market position in its primary catchment area Gross area 52 000 m2 Parking spaces 820 Lettable area 34 200 m2 Höganäs Borgestad is a manufacturer and supplier of refractory quality products, installations and solutions that are essential for industrial high-temperature processes exceeding 1,200°C in various industries such as steel, cement, and aluminum Refractory production since 1825 Employees 350+ Our portfolio includes the shopping center Agora Bytom and the refractory company Höganäs Borgestad, both dominant in their respective markets INTRODUCTION | INVESTMENT PORTFOLIO Presence NOR, SWE, FIN Annual visitors 4.7 million 8 BOR share 100% BOR share 69.7%
Page 9
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment Review 5 Financials 4 Industry Segment Review 2 Introduction 6 Outlook 7 Appendix
Page 10
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Latest trends and developments • Rental income in NOK decreased by 0.7% in Q3 2026 year-on-year, reflecting a negative currency effect from the depreciation of the euro against the Norwegian krone. Measured in euro, growth remained positive, with rental income up 8.4% for Q3 year-on-year. • EBITDA margin increased in Q3’26 compared to the same period last year, supported by higher occupancy. On an LTM basis, the improvement is partly offset by approximately MNOK 0.4 of non- recurring costs incurred in H1’26. • Agora Bytom had mortgage debt as of September 30, 2026 of EUR 28.2 million. On 30 June 2024, Agora Bytom entered into an interest rate hedging arrangement covering 70 percent of the outstanding loan amount, effective until the loan matures. • Borgestad expects revenue and EBITDA to increase steadily in the years to come. EBITDA development MNOK Agora Bytom delivered stable revenue and higher EBITDA for Q3’26 compared to Q3’25, despite negative currency effect Revenue development MNOK 14% -1%4%2%7% Growth 54% 54%51%52%52% Margin REAL ESTATE | HIGHLIGHTS FROM AGORA BYTOM 10
Page 11
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA REAL ESTATE | DEVELOPMENT OF OCCUPANCY Current estimates indicate that occupancy will stabilize at a high level 11 Latest trends and developments • As of September 30, 2026, occupancy based on signed leases was 96.8%, a decrease of 0.6 percentage points from June 30, 2026, with leasable area of 34 200 sqm. • Occupancy rate is expected to stabilize going forward, with focus shifting towards renegotiating or replacing lower-rent leases. In addition, potential conversion of approximately 800 sqm of lower-rent space into office premises is being assessed. • In addition to the substantial reduction in vacancy since 2021, the total leasable area has increased from 33 100 sqm in September 2020 to 34 200 sqm in September 2026. The increase partly reflects the conversion of previously non-leasable areas, including the third- floor gallery. Quarterly vacancy development per level Vacancy (sqm/%)
Page 12
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA REAL ESTATE | TENANT BASE AT AGORA BYTOM Agora Bytom has a diverse tenant base and a healthy weighted average unexpired lease term, ensuring low contract duration risk Highly diversified tenant base Lettable area per tenant Highly diversified tenant base Lettable area per tenant Comments Fashion & Accessories 40,0 % Entertainment & Leisure 20,0 % Office & Warehouse 12,5 % Home, Lifestyle & Specialty Stores 11,2 % Food & beverage 7,7 % Services & Personal Care 7,3 % Telecom & Technology 1,3 % WAULT by income: 3.57 years WAULT by area: 3.65 years Due date for top ten tenants are spread, first due date in Q1 2028 Continuously negotiations with potential new tenants Contract duration sqm 60% T8 5% 8% T9 2% T1 T10 Others Total 5% T2 T3 4% T4 4% T5 4% 2% T6 3% 100% T7 3% 2% 12% 21% 4% 60% 2026 2027 2028 2029 2030→ 12 Several openings in the second half of 2026, contributing to a stable and high occupancy base for 2027. WAULT = Weighted average unexpired lease term
Page 13
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agora Bytom has demonstrated stable development over time, despite some fluctuations in the macroeconomic environment Retail sales (Agora Bytom's tenants' turnover 2023-2026) PLN 0 5 000 000 10 000 000 15 000 000 20 000 000 25 000 000 30 000 000 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 2023 2024 2025 2026 0 100 000 200 000 300 000 400 000 500 000 600 000 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 2023 2024 2025 2026 Footfall (Agora Bytom's monthly footfall 2023-2026) Comments • Tenant turnover increased by 1.5 percent in Q3’26 compared to Q3’25, while turnover for LTM increased by 1.2 percent. • Agora Bytom recorded 4.7 million visitors LTM September 2026, in line with 4.7 LTM September 2025. Macroeconomic environment • Poland’s reference interest rate was kept unchanged at 3.75 % as of September 2026. • GDP grew by 3.9% YoY in June 2026. • Registered unemployment stood at 5.8 % in September 2026, same level as in September 2025 • Inflation increased to 4.1% YoY in September 2026, from 2.5 % in June 2026. • Consumer confidence decreased to –10.8 points in September 2026, compared to -9.9 points in June 2026. REAL ESTATE | RETAIL SALES AND FOOTFALL AT AGORA BYTOM 13
Page 14
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment Review 5 Financials 4 Industry Segment Review 2 Introduction 6 Outlook 7 Appendix
Page 15
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Latest trends and developments • In Q3 2026, Höganäs Borgestad delivered revenues of MNOK 354.1 (333.3) and EBIT of MNOK 56.3 (49.6), reflecting stronger market activity and the positive impact of internal improvement initiatives. • Following an extended period of postponed customer projects and investments, market conditions are showing signs of improvement, although continued cost-consciousness is contributing to a highly price-sensitive environment. • Targeted initiatives to strengthen governance, project execution and cost control have been implemented, with further improvement potential remaining. • As part of ongoing operational streamlining, a loss- making subsidiary in Sweden will be discontinued during Q4 2026. • The order book stood at MNOK 106 at the end of Q3 2026, compared with MNOK 145 as of 30.09.2025. REFRACTORY | HIGHLIGHTS FROM HÖGANÄS BORGESTAD Höganäs Borgestad confirms a positive outlook for 2027 and beyond 1.4% +6.3%-2.1%1.3%-4.0% 7.5% 15.9%14.9%7.5%6.2% 1) Figures exclude accrued cost for lay-off compensation and impairment of ERP system and goodwill in 2025. Improving market and internal operational initiatives are driving record profitability, while further efficiency measures are expected to support continued earnings growth 15 EBIT development MNOK1 Revenue development MNOK1 Growth Margin
Page 16
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA The market remains highly seasonal, but record Q2 and Q3 results demonstrate the potential as utilization improves and operational initiatives gain traction Historical quarterly average revenue share (2021-2025) Revenue share (% of annual rev.) REFRACTORY | SEASONALITY OF THE NORDIC REFRACTORY MARKET 16 Quarterly development of revenue and EBIT¹ Revenue (MNOK) • The Nordic refractory market is seasonal, with lower activity in Q1 and Q4 and peak demand during the Q3 maintenance season • A flexible workforce model helps manage seasonal fluctuations, although a substantial fixed cost base creates operational leverage that impacts profitability during low-activity periods • After a weaker-than-normal Q1, activity accelerated significantly, resulting in a record Q2 followed by the strongest underlying quarter in the group’s history in Q3’26 • Given project lead times of 6-12 months, current growth initiatives are expected to support performance through 2027 and 2028, complemented by ongoing cost-reduction measures Comments EBIT-margin (%) 1) Figures exclude the gain from Arbitration Court case in 2023 and accrued cost for lay-off compensation and impairment of ERP system and goodwill in 2025
Page 17
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Strong performance through Q2 and Q3 has the group back on track toward its 10% EBIT target, supported by continued operational and commercial improvements LTM turnover and adj. EBIT development¹ -0,7 % -1,3 % -0,6 % 0,5 % -0,2 % 0,6 % 1,8 % 1,7 % 2,4 % 2,8 % 3,1 % 3,3 % 5,7 % 7,5 % 6,8 % 5,8 % 6,2 % 6,2 % 5,6 % 7,0 % 7,5 % -20 0 20 40 60 80 100 0 200 400 600 800 1 000 1 200 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2021 2022 2023 2024 2025 2026 Turnover LTM EBIT LTM Revenue (MSEK) EBIT (MSEK) REFRACTORY | REVENUE AND PROFITABILITY DEVELOPMENT OF HÖGANÄS BORGESTAD 17 • After a slow start to the year, activity levels strengthened across several industry segments, resulting in better performance through Q2 and Q3 • Following a more challenging 2025, the group is on track to deliver on the medium-term target of 10% EBIT • Increase utilization during the low season in Q4 and Q1 through targeted commercial initiatives across all three countries • Strengthen operational capabilities through targeted recruitment and internal competence development, both in administration and field operations • Improve profitability by reducing costs and exiting business segments where we lack a competitive advantage, including the discontinuation of one loss-making subsidiary in Sweden during Q4 2026 Focus going forward Comments 1) Figures exclude the gain from Arbitration Court case in 2023 and accrued cost for lay-off compensation, as well as a one-time write-off an ERP-system that is being replaced
Page 18
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Following a series of legal proceedings since the transaction was initially agreed, the Supreme Adm. Court declined leave to appeal, allowing to complete the transaction REFRACTORY | UPDATE ON SALE -LEASEBACK IN BJUV 18 Backdrop • Q4 2023: Höganäs Borgestad agreed to sell two properties used for the Group’s refractory production to Bjuv Municipality. The agreement included an option to lease the properties back for up to five years. A complaint questioning whether the purchase price was too high delayed the transaction and prompted a review by the administrative Court in Malmö. • March 2025: The Administrative Court revoked Bjuv Municipality’s approval of the transaction, finding that the documentation did not sufficiently support the valuation of the two properties. • March/April 2025: Bjuv Municipality appealed the ruling in March and submitted updated documentation in early April. • December 2025: The Court of Appeal found no grounds to stop the transaction. • January 2026: The complainant appealed the Court of Appeal’s ruling to the Supreme Administrative Court. • September 2026, the Supreme Administrative Court declined to grant leave to appeal. The agreement automatically became valid following the Supreme Administrative Court’s decision.
Page 19
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA The SPA was signed on October 7 and the transaction closed on October 14, with the remaining 40% of the purchase price to be paid over the next two years REFRACTORY | UPDATE ON SALE -LEASEBACK IN BJUV 19 Summary of the agreement • The transaction closed on October 14. • At a property valuation of SEK 145 million, the transaction resulted in a purchase price of approximately SEK 139 million after adjustment for stamp duty and an estimated accounting gain from the sale at SEK 112.6 million. The Group will recognise this gain in Q4’26. • Payment is in three cash instalments. The initial 60 % payment took place at completion of the transaction, followed by a further 20 % due 12 months after completion and the remaining 20 % due after 24 months. • In connection with completion of the transaction, Höganäs Borgestad reduced the Group’s outstanding interest-bearing debt by SEK 10 million. • The leaseback covers 52,484 square meters of production facilities in the first year, with the area decreasing to 35,234 square meters two years after completion. The first 24 months following completion of the transaction carry no rent. Annual rent thereafter will be SEK 200 per square meter. • The lease term is a maximum of five years. Höganäs Borgestad retains the unilateral right to terminate the lease at any time by giving six months’ notice.
Page 20
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment Review 5 Financials 4 Industry Segment Review 2 Introduction 6 Outlook 7 Appendix
Page 21
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA FINANCIALS | PROFIT AND LOSS Q3’26 activity exceeded last year, driving higher EBITDA, partly offset by financial items 21 Comments • Borgestad Group’s EBITDA increased to MNOK 72.1 in Q3’26 from MNOK 64.7 in Q3’25, primarily driven by improved profitability in Höganäs Borgestad Group. • Group EBIT increased to MNOK 60.7 in Q3’26, compared with EBIT of MNOK 54.0 in Q3’25. • YTD EBIT increased to MNOK 85.7, despite an impairment charge of MNOK 3.2 related to the tenant relocation at Agora Bytom and higher depreciation in Höganäs Borgestad Group. • Net financial expenses increased to MNOK 12.6 in Q3’26 from MNOK 7.0 in Q3’25, primarily driven by higher foreign exchange losses.
Page 22
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA FINANCIALS | PROFIT AND LOSS DEVELOPMENT PORTFOLIO COMPANIES Both portfolio companies continue to develop positively 22 Comments • Both Höganäs Borgestad Group and Agora Bytom continue to show positive underlying development. • Currency rate changes negatively impact reported figures in NOK, particularly for Agora Bytom. • Agora Bytom’s historical annual results are impacted by a write-down in 2023, affecting comparability on EBIT level.
Page 23
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA FINANCIALS | BALANCE Working capital decreased in Q3’26 vs. Q3’25 driven by lower receivables and inventories and higher trade payables 23 Balance 30.09 TNOK
Page 24
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Comments • The Group's year-to-date cash flow from operating activities was MNOK 11.3 (negative MNOK 63.4). • Cash flow from investing activities amounted to negative MNOK 20.2 (negative MNOK 28.4). • Cash flow from financing activities was negative MNOK 38.1 year to date (positive MNOK 4.6). FINANCIALS | CASH FLOW AND LIQUIDITY Strong and sustainable liquidity position at end of Q3. 24 Cash position development – quarter MNOK
Page 25
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA FINANCIALS | INTEREST -BEARING DEBT Interest-bearing debt decreased year-on-year, with net leverage stable at 2.5x LTM adj. EBITDA 25 Net interest-bearing debt breakdown MNOK Comments • Interest-bearing debt decreased by MNOK 42.9 year-on-year to MNOK 453.8, mainly due to currency effects and lower bank overdraft utilization • Agora Bytom has MEUR 28.2 bank loan maturing in December 2028, with 70% of the outstanding amount hedged at a 3.17% fixed rate plus a 2.80% margin • Höganäs Borgestad Group’s MNOK 145.8 debt primarily consists of mortgage debt (MNOK 43.3), lease liabilities (MNOK 68.6) and bank overdraft utilization (MNOK 33.9) • Available liquidity as of September 30, 2026, is MNOK 137.8 (MNOK 145.3) • NIBD was MNOK 348.2, corresponding to 2.5x LTM adj. EBITDA NIBD/adj. EBITDA LTM
Page 26
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment review 5 Financials 4 Industry Segment review 2 Introduction 6 Outlook 7 Appendix
Page 27
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA 27 Outlook and Priorities Higher occupancy is estimated to support modest growth in Agora Bytom’s revenue and EBITDA in the coming years. The focus is shifting to renegotiating or replacing leases with lower rents to increase the actual monthly rent per sqm. For 2027 and 2028, Höganäs Borgestad continues to prioritize operational improvements, capital efficiency and increased cash flow. Borgestad ASA will continue to evaluate strategic opportunities, including transformational M&A initiatives and potential liquidity events. Looking ahead, the Board expects the Group to deliver improved underlying results and stronger cash flow, with continued positive margin development in both the refractory and property segments over time. However, progress may vary quarter by quarter due to seasonality, cyclical swings, one-off items, and variations in project activity and potential global uncertainty.
Page 28
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA Agenda 1 Highlights and Key Figures 3 Real Estate Segment review 5 Financials 4 Industry Segment review 2 Introduction 6 Outlook 7 Appendix
Page 29
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA APPENDIX | ALTERNATIVE PERFORMANCE MEASURES AND DISCLAIMER Definitions and Alternative Performance Measures • Adjusted figures: Significant non-recurring items not directly related to operating activities are adjusted to improve comparability between reporting periods. • EBIT: Earnings before financial items and tax. • EBIT margin: EBIT divided by revenue. • EBITDA: EBIT plus depreciation, amortization and write-downs. • EBITDA margin: EBITDA divided by revenue. • LTM: Last twelve months. • Interest-bearing debt (IBD): Long-term and short-term loans, including financial leasing obligations. • Net interest-bearing debt (NIBD): Interest-bearing debt less cash. • NIBD / adjusted EBITDA LTM: Net interest-bearing debt divided by adjusted EBITDA for the last twelve months. • Working capital: Inventories plus trade receivables less trade payables. • Available liquidity: Cash plus the undrawn portion of the overdraft facility, less restricted deposits • Equity ratio: Total equity divided by total capital. • Occupancy rate: Occupancy based on signed leases relative to total leasable area. • WAULT: Weighted average unexpired lease term. • Tenant turnover: Revenue generated by tenants at Agora Bytom during the relevant period. • Footfall: Number of visitors to Agora Bytom during the relevant period. 29 In order to enhance investors' understanding of the Group's performance the Company presents in this Presentation certain alternative per formance measures ("APMs") as defined by the European Securities and Markets Authority its Guidelines on Alternative Performance Measures 2015/1057. The APMs used by the Group, and relevant reconciliations, are frequently used by securities analysts, investors and other interested parties, and they are meant to provide an enhanced insight into operations, financing and future prospects of the group. The definitions of these measures follows:
Page 30
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA APPENDIX | ALTERNATIVE PERFORMANCE MEASURES AND DISCLAIMER Borgestad's financial alternative performance measures 30 Reasons for including • EBITDA: Shows performance regardless of capital structure, tax situation and adjusted for income and expenses related transactions and events not considered by management to be part of operating activities. Management believes the measure enables an evaluation of operating performance. EBITDA is part of Borgestad’s financial covenants. • Adjusted figures: To be able to compare the EBITDA of different reporting periods, significant non-recurring items not directly related to operating activities, are included in Other income and expenses.
Page 31
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA APPENDIX | ALTERNATIVE PERFORMANCE MEASURES AND DISCLAIMER Borgestad's financial alternative performance measures 31 Reasons for including • Net interest-bearing debt: Provides an indicator of the net indebtedness and an indicator of the overall strength of the statement of financial position. Net interest-bearing debt is part of Borgestad’s financial covenants (leverage ratio) and is important in understanding the capital structure.
Page 32
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA APPENDIX | ALTERNATIVE PERFORMANCE MEASURES AND DISCLAIMER Borgestad's financial alternative performance measures 32 Reasons for including • Equity ratio: An important measure in describing the capital structure. • Working capital: Provides an indication of the capital tied up in the Group’s operations and is important for understanding operating cash flow and short-term capital efficiency. • Available liquidity: Provides an indication of the Group’s financial flexibility and ability to meet short-term obligations and fund ongoing operations.
Page 33
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background BORGESTAD ASA APPENDIX | ALTERNATIVE PERFORMANCE MEASURES AND DISCLAIMER Disclaimer Certain statements in this presentation are forward-looking and reflect the Company's current views on future events, financial performance, and operations. These statements can be identified by terms such as "anticipates," "believes," "expects," "intends," "may," "plans," "will," and similar expressions, including negatives or variations thereof. Forward-looking statements cover the Company’s financial position, backlog, pipeline, operating results, liquidity, strategic initiatives, market expansion, and overall business development. They are not guarantees of future performance, and actual outcomes may differ materially due to various risks, uncertainties, and assumptions. The Company cannot ensure that its expectations will materialize, as forward-looking statements are subject to known and unknown risks, changing circumstances, and external factors beyond its control. 33
Page 34
Dark blue Light blue – for white background Light blue – for dark background Agenda – shaded dark blue Charts – medium dark blue Light blue – box background