Aco Nordic Group A/S (Koncern)

Development in activities and financesThe Company's income statement for 2022 shows a profit of EUR 6,408 thousand as against EUR 5,132
thousand in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at EUR 31,590
thousand as against EUR 29,404 thousand at 31 December 2021.

Operating risks
The group is affected by fluctuations in the purchase price of raw materials, especially polyvinyl chloride,
zinc and stainless steel.

Because of recent years’ significant fluctuations in raw material prices, it has become difficult to secure
favourable agreements over a longer period of time.


Exchange rate exposure
The group is affected by fluctuations in exchange rates in relations to trading and net investments in
foreign currencies. The risk is managed by way of selective hedging.

Interest rate risk
The Group’s interest-bearing short-term debt is hedged to avoid any uncertainties regarding future
interest rate liabilities. The risk is hedged by way of interest rate swaps.
In general, the Group’s interest-bearing short-term debt carries a floating interest rate, which means that
the interest rate remains unlocked for 12 months. In return, this means that the Group’s interest
expenses will decrease when the interest rate declines.

Credit risks
The Group has large, individual customers in several countries. Any changes in the business relationship
with the customers will have an impact on the Group’s earnings. Credit insurance has been taken in
relation to all of these customers.