Gorenje Group Nordic A/S

Management commentary

Development in activities and financesThe financial statement shows a decrease in net sales compared to the previous year, and an unchanged result before tax. This is in line with theexpectations for the year.During 2022, the Company continued to develop the Gorenje, UPO, Elvita, Asko and Hisense brands in the Nordics and the Company continues to focuson strenghtening the market share in the Nordics.In 2022, we expanded our commitment in global football and handball sponsorships and The Hisense Group was a major sponsor of FIFA World Cup.In 2022, the premium brand ASKO continued its focus on the cooking and the kitchen markets and we continue to develop the ASKO experience center,which was established in 2021 in the heart of Copenhagen. Here it is possible to participate in cooking courses where ASKO products are used.The net profit for 2022 was 645K EUR was in line with budget and slightly higher than previous year, which showed a net profit of 594k EUR.The Budget for 2023 shows a growth in sales compared to 2022 and to continue with a positive net profit.Affects of the Russian invasion of UkraineThe Russian invasion of Ukraine has for now only had minor affect on the Company.However, most variable and fixed costs have increased, which put pressure on the Hisense Group's margins and profitability.The Company has also been negatively affected by the pressure on the global supply chains. However, the Company remains fully committed to ensurecustomers receive deliveries on time.