Northern Industries A/S

Management’s ReviewBackgroundNorthern Industries’ principal activity is to act as the parent company for a group of businessesassociated with the manufacture and installation of steel engineering, access covers and securityequipment.The journey can trace itself back to September 2019 where the U.K based subsidiary (NorthernIndustries UK 1 Ltd) was registered as part of the very first transaction to acquire a business unit inthe steel engineering sector (namely, JHT Fabrications Ltd). With the successful acquisition of JHTFabrications at hand, Northern Industries set about on executing its strategy of identifyingprofitable steel engineering businesses located in the United Kingdom and the buy-and-buildgrowth strategy with the aim of generating synergies across the business units.With the first acquisition at hand, Northern Industries then set about securing both its second andthird business units which were Steelway Fensecure Ltd and Steelway Access Covers Ltd (also calledBrickHouse) in December of 2020. The combination of these three businesses under the NorthernIndustries umbrella helped Northern Industries start to achieve some scale as a much largeroperator in the steel engineering sector than with the ownership of just JHT Fabrications alone.With Northern Industries’ increased scale and its growing ambition, a decision was made in 2021 tocontinue to execute on the buy-and-build strategy and it was decided that a Danish entity was tobe established as the new ultimate parent company. Therefore, in the second half of 2021 NorthernIndustries A/S was established as part of a share-swap whereby all shareholders of NorthernIndustries UK 1 Ltd then became shareholders in Northern industries A/S the new parent companyto the Northern Industries group.To continue the growth through acquisitions further capital was raised over the course of 2022 byNorthern Industries A/S from a broader base of investors. This made it possible to acquire CEL SheetMetal Ltd in March 2022. Similarly, to the effects of the previous acquisitions the addition of CELSheet Metal Ltd materially increased Northern Industries A/S revenue base.Illustration of Northern Industries A/S current group structure as of June 2023The financial year July 2022 – June 2023 was characterized by the fact that our management focuswas primarily on stabilization and refinement across the entire group and as such all of our activitieswere carried out with that specific focus in mind. Having ended the previous financial year with therecent acquisition of CEL Sheet Metal Ltd we set about achieving the goal of having a full year voidof any further acquisitions and rather, focused on absorbing the recent addition of CEL into thewider group as well as strengthening our existing business units, Steelway Group and JHTFabrications.

Business reviewMembers of the management team are pleased with the fact that the actual revenue for thisfinancial year fell perfectly within the forecasted range provided in the FY 21/22 annual report of 28– 32 million GBP.The Group’s revenue for 2022/23 amounted to 30.584 thousand GBP, and the operating profitended at 454 thousand GBP. Net financials showed an expense of 782 thousand GBP. Profit for theyear amounted to -52 thousand GBP.The Group’s total assets amounts to 14.161 thousand GBP. The equity ended at -52 thousand GBP.The parent company’s operating profit amounts to -177 thousand GBP and profit for the year endedat a loss of 141 thousand GBP. Total assets 2.912 thousand GBP. The equity ended at 751 thousandGBP.The parent owns treasury shares with a nominal value of 571 GBP (4.952,70), corresponding to0,44% of the share capital. The shares are valued at nil and are not included in the balance sheet.