Jøtul Group Produces Third Quarter Increased Sales and improved Operational Results. Continued Restructuring Underway to Ensure Long-term Competitiveness.

Fredrikstad, November 5th 2018 - Jøtul Group(“Jøtul”), one of the world’s oldest producers of stoves, inserts and fireplaces, announced today that as restructuring initiatives have begun to show results, Jøtul will continue implementing further strategic steps to improve its long-term competitiveness and financial sustainability.

Due to higher sales in the USA and Norway, Jøtul’s accumulated net sales as of Q3 increased from NOKm 610 in 2017 to NOKm 617 in 2018. Productivity improvements throughout the organization and several cost reduction initiatives have led to margin improvements and reduced fixed costs, driving an EBITDA increase from NOKm 25 (4.0%) in 2017 to NOKm 45 (7.3%) in 2018.

Jøtul closed its factory in Tistedalen, Norway, in 2018 and discontinued operations at its warehouses in the UK and Spain. To further rationalize the structure of the Jøtul’s supply chain, the Board of Directors of Jøtul AS has decided to continue the restructuring program. As a part of this program Jøtul will develop a 20,000 m2 production facility in Poland. The production of Scan products that today takes place in Vissenbjerg, Denmark, will be moved to the new facility in Poland, together with the most labor-intensive processes at the Kråkerøy factory.

“We have been working very close with our new owner, OpenGate Capital to plan for a sustainable future for Jøtul. After years of financial losses, substantial changes were required to regain profitability. Employees in Norway and Denmark will unfortunately be affected as we move some aspects of production to Poland”, says Jøtul CEO Nils Agnar Brunborg.

Following a supply chain analysis, it has been decided that the foundry operation of Jøtul in Kråkerøy will be maintained. The Jøtul foundry is renowned for high quality casting and is highly competitive as a stand-alone production unit. Jøtul management and OpenGate Capital wish to develop the foundry further as an international supplier of high quality casting. All administrative, sales, marketing, R&D and warehouse functions and activities will remain at Kråkerøy, continuing a 102 year-old foundry tradition. The Group will continue to be headquartered in Fredrikstad.

Scan in Vissenbjerg will keep its R&D department and certain back-office functions to safeguard its strong product development capabilities and innovative environment.

Planned start-up at the new site in Poland is Q1 2020.