Nutrimin A/S

Financial instruments The Company's goals and policies for management of financial risks Specific risks Risk management is a major focus area for Nutrimin A/S. These risks are primarily related to volatile market prices as well as financial risks within currency and rent. Effective risk management ensures that Nutrimin A/S assesses and manages the risks it assumes. Commodity and price risks are minimised by entering into purchase contracts that minimise open positions on commodities as far as possible. The largest part of both revenue and purchases are, by far, settled in DKK or euros. The Nutrimin exchange rate policy is defined by not having significant open currency positions from purchase and sale of goods in currencies other than DKK and euros. To the extent that the Group's currency risk cannot be hedged by adjusting payments and disbursements in the same currency, the currency risk is hedged via forward exchange contracts and options. To ensure quality management at Nutrimin A/S, certification is carried out according to the standards GMP + and VLOG. The quality management system describes all steps in the process from approval of suppliers and procurement of raw materials to production and delivery of the finished goods to the customer. Nutrimin A/S is vulnerable to the market conditions of primarily agriculture. In order to eliminate this risk, credit insurance is taken out for creditors to the greatest possible extent. Raw materials After the previous financial year, Nutrimin A/S expects that the current impacts on the commodity market lead by the supply and energy crisis are of short-term standing. Nutrimin A/S continously monitors the development in raw material and freight costs. Nutrimin A/S only uses stable and well-known GMP + FAMI-QS-approved manufacturers to ensure customers high-quality products.

The Company's income statement for 2022 shows a profit of DKK 8,821 thousand as against DKK 20,268 thousand in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at DKK 72,141 thousand as against DKK 63,320 thousand at 31 December 2021. The expected profit before tax for 2022 of approx. DKK 17,000 thosuand as set forth in the Management's review of the annual report for 2021 was not realised. Considering the market challenges, results for the year are considered satisfactory. Nutrimin A/S continued its operations in a difficult market with supply challenges during 2022. This was partly due to strong hedges of raw materials in a difficult market and partly growth in revenue as well as earnings as a result of increased sales on the Danish and foreign markets.