Schur International Holding A/S

Ledelsesberetning

Key events in 2024/25 The year 2024/25 did not signal a change in the global economy’s low growth rate. Last year, our turnover decreased by 170 million. We only recovered 28 million, which corresponds to a 1.4% increase driven mostly by the Minpac acquisition in Australia. Packaging Our packaging division has experienced a decline in vol- ume, especially with regard to cardboard. Although food prices are declining, they remain very high compared to previous years. This, combined with political unrest, has dampened consumer conꢀdence and spending. Several of our customers are experiencing reduced demand from their end customers, as reꢁected in our volume and revenue. Automation Our automation division increased its revenue signiꢀcantly in 2024/25 and the trend is expected to continue in 2025/26,Sustainability focus as evidenced by a solid order intake. Despite operating in a stagnant market, particularly within the food sector, both we and our customers have an increased appetite for investment. To stay competitive, we are investing in automation solutions for our production and administrative processes. Automation is an important business area for us. We work with our customers to develop and implement unique, customized automation solutions. Investments We have replaced some of our printing and diecutting machines and other production equipment at our factories and invested in new, high-quality machinery. This new equipment will increase eꢂciency, reduce costs, and cre- ate opportunities for product innovation. When selecting equipment and suppliers, we prioritize equipment that re- duce production waste and energy consumption as these are key focus areas in our sustainability strategy. We have also purchased the neighboring plot in Gallin, Germany to give us the opportunity to expand in the future. Last year, we implemented the D365FO ERP system in the ꢀrst business unit - Schur Pack Denmark a/s. There have been challenges, and resources have been spent this year improving and adapting the system to operations. We are preparing to implement the system in the rest of the group, one company at a time. Continuous investment in the group’s production facilities is key to our ability to deliver the best service to our custo- mers eꢂciently and competitively. Our focus on digitaliza- tion is essential to our continued growth and development. The EU Omnibus Package simpliꢀes sustainability reporting requirements for companies. Regardless of the Omnibus Package, sustainability is an essential area for us to work with. Therefore, our approach to sustainability will continue to focus on areas where we can have the greatest impact and reduce our environmental and climate footprint. In the dialogue with our customers, we experience an increasing interest in sharing sustainability data and mak- ing progress toward ambitious sustainability targets. We welcome this trend throughout the value chain. We expect this focus to increase alongside higher demands for data and ambitious targets throughout our supply chain. As the ꢀrst-choice advisor and business partner to our customers, we are prepared for these changes in our working relation- ship.

Beskrivelse af virksomhedens væsentligste aktiviteter

Schur’s activities Schur is the world’s oldest packaging group run by the same family. Our goal has always been, to develop the packaging solutions of the future, together with our customers. We operate globally, and our main activities are carton packaging, ꢁexible packaging, packaging, and automation technology, and marking & labels. In all our activities, we aim to set the bar for packaging innovation and creativity, and we push ourselves to be ‘Leader Of The Pack’. We are an end-to-end supplier in packaging solutions with all our subsidiaries collaborating using their competencies across our production sites and technologies. The products of the folding carton com- panies are mainly sold in Northern Europe and the USA, whereas the ꢁexible packaging companies and machinery company sell their products worldwide. Founded in 1846 Operating since 1846, Schur has more than 179 years of experience. Tradition and innovation have been integral parts of our DNA, and the combination of the two has been crucial in our journey towards being ‘Leader of the pack’. 900 employees We are around 900 employees across our group of com- panies who are dedicated to service our customers and stakeholders in the best way possible.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

In our recent annual report, we forecasted revenue to be between DKK 1.9 and 2.1 billion and a proꢀt before tax between DKK 140 million and DKK 160 million. We met the revenue expectations. Revenue increased by DKK 28 million (1.4%). However, the revenue is at the low- er end of our expectations, and our packaging division’s lower volumes did not contribute to an increase. With a proꢀt before tax of DKK 81.5 million we dit not meet the proꢀt expectations. The proꢀt before tax was DKK 71.6 million lower than last year. The main reasons for the lower proꢀt before tax is the lower contribution margin caused by higher administration and compliance costs. Administration expenses are high driven by cost for D365FO and ꢀnally we have have some signiꢀcant loss on currencies. Given the challenges with operating in a stagnant market and challenges with new ERP system, we consider the result for 2024/25 as satisfactory. Our interest bearing debt decreased from DKK 117.3 million to DKK 72.9 million. Investments in tangible and intangible assets of DKK 148 million was paid by the free cash ꢁow without increasing the long-term debt. We reduced our working capital, and with a slight increase in revenue, our working capital ratio decreased from 21% to 19%. Leverage ratio (net interest-bearing debt/adjusted EBITDA) has decreased from 0.46 to 0.34 – reꢁecting a very low level of ꢀnancial gearing.

Beskrivelse af virksomhedens forventede udvikling

Outlook 2025/26 In recent years, packaging has been a topic of considerable interest. Many initiatives have been launched to change consumer behavior, such as sorting at the source, and new products are being introduced to increase recycling and reduce environmental impact. We are constantly developing new solutions to help reduce food waste and increase recycling. We aim to lead the industry by contributing to a circular economy. The long-term market outlook for the Western European carton market is positive, primarily due to the industry’s focus on recyclability. In the short term, however, we expect only a minor increase in demand due to the high probability of a slow economy. Schur is committed to setting the stage for the industry’s most modern production and logistics technology and has invested heavily in product development and state- of-the-art production technology in recent years. We plan to invest between DKK 140 million and DKK 160 million in new production equipment next year alone. We strive to be a total solutions provider for our customers, so we view our technology platform across our group companies as a vital part of our ongoing commitment to being Leader of the Pack. We depend on our customers’ sales and product develop- ment. We are pleased to contribute an innovative approach while creating new sustainable solutions in close collabo- ration with our customers. As the EU implements its packaging regulations in the coming years, the packaging industry will face new challenges and opportunities. We aim to create value from these opportunities and elevate our group of companies as an innovative total solution supplier of packaging and packaging machinery. In 2025/26, we expect a revenue between DKK 2.0 - 2.1 billion and a proꢀt before tax between DKK 130 million and DKK 150 million.